Category Archives: Announcements

No Work No Pay for Private Sector Employees During APEC Economic Leaders’ Meeting

Pay rules for APEC holidays in NCR

The Department of Labor and Employment reminds private business employers to observe proper pay rules from November 18 to 19, 2015, which have been declared as special non-working days in the National Capital Region due to Asia-Pacific Economic Cooperation[1] meetings.

Pay-Rules---FS

The following pay rules shall apply for private sector workers in NCR from 18 to 19 November 2015:

  • If the employee did not work, the “no-work, no-pay” principle shall apply, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment on a special day;
  • If the employee worked, he or she shall be paid an additional 30 percent of his or her daily rate on the first eight hours of work [(daily rate x 130 percent) + COLA];
  • If the employee worked in excess of 8 hours (overtime work), he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 130 percent x 130 percent x number of hours worked);
  • If the employee worked during a special day that also falls on his or her rest day, he or she shall be paid an additional 50 percent of his or her daily rate on the first 8 hours of work [(daily rate x 150 percent) + COLA];
  • If the employee worked in excess of 8 hours (overtime work) during a special day that also falls on his or her rest day, he or she shall be paid an additional 30 percent of his or her hourly rate on said day (hourly rate of the basic daily wage x 150 percent x 130 percent x number of hours worked).

Labor and Employment Secretary Rosalinda Dimapilis-Baldoz, upon issuing Labor Advisory No. 14, series of 2015, urged all private school employers to comply with the following pay rules which covers all teaching and non-teaching personnel private schools:

If the employee did not work:

  • He/she will not be paid, unless there is a favourable company policy, practice, or collective bargaining agreement (CBA) grantingpayment of wages on 17-20 November; and
  • When the employee has accrued leave credits, he/she may be allowed to utilize such leave so that he/she will have compensation on said days.

If the employee worked:

  • No additional pay is given to the employee, but only their salary on said day.

“In view of the Proclamation, I enjoin all private sector employers in Metro Manila to observe the proper pay rules for the benefit of their workers,” said Baldoz.

—From the Department of Labor and Employment

 


What’s the difference between a Regular Holiday and a Special Non-Working Day?

Exceptions

This rule shall apply to all employees except:

  • Those of the government and any of the political subdivision, including government-owned and controlled corporation;
  • Those of retail and service establishments regularly employing less than ten (10) workers;
  • Domestic helpers and persons in the personal service of another;
  • Managerial employees as defined in Book Three of the Omnibus Rules to Implement the Labor Code of the Philippines;
  • Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.

Source: Book 3, Rule IV, Section 1, Omnibus Rules to Implement the Labor Code of the Philippines

Holiday pay of certain employees

  • Private school teachers, including faculty members of colleges and universities, may not be paid for the regular holidays during semestral vacations. They shall, however, be paid for the regular holidays during Christmas vacation;
  • Where a covered employee is paid by results or output, such as payment on piece work, his holiday pay shall not be less than his average daily earnings for the last seven (7) actual working days preceding the regular holiday; Provided, however, that in no case shall the holiday pay be less than the applicable statutory minimum wage rate;
  • Seasonal workers may not be paid the required holiday pay during off-season when they are not at work;
  • Workers who have no regular working days shall be entitled to the benefits provided in this Rule.

Source: Book 3, Rule IV, Section 8, Omnibus Rules to Implement the Labor Code of the Philippines