Labor Advisory on Holiday Pay amid COVID-19's Enhanced Community Quarantine

Most people are confused on the applicable holiday pay rate for the upcoming holidays, especially considering that the entire Luzon is presently under Enhanced Community Quarantine (ECQ), pursuant to Proclamation No. 929 issued by President Rodrigo Roa Duterte on 16 March 2020.

To shed light to this matter, on 30 March 2020, the Department of Labor and Employment (DOLE) issued Labor Advisory No. 13, Series of 2020 on the "Payment of Wages for the Regular Holidays on April 9 and 10, 2020 and Special Day on April 11, 2020."

Under the said advisory, an employee who does not work on April 9 (Araw ng Kagitingan and Holy Thursday) shall be entitled to 200% of his/her wage for that day, provided that he or she was present or under a paid leave on the workday prior to the start of the ECQ on 17 March 2020. If the employee, however, worked on April 9, he/she shall be paid a total of 300% of his/her wage for that day for the first eight (8) hours. For work rendered in excess of the first eight (8) hours, an employee shall be entitled to an additional pay for overtime work at the rate of 30% of his/her hourly rate.

On April 10 (Good Friday), an employee who does not render any work shall be paid 100% of his/her wage for that day, subject again to the requirement that he or she was present or under a paid leave on the workday prior to the start of the ECQ on 17 March 2020. If the employee worked on that day, he/she shall be paid a total of 200% of his/her wage for that day for the first eight (8) hours. For work rendered in excess of the first eight (8) hours, an employee shall be entitled to an additional pay for overtime work at the rate of 30% of his/her hourly rate.

On April 11 (Special Non-Working Day), if the employee did not work, the "no work, no pay" principle shall apply, unless there is a more favorable company policy, practice, or collective bargaining agreement (CBA). If an employee worked on that day, he/she shall be paid an additional 30% of his/her basic wage on the first eight (8) hours. For work rendered in excess of the first eight (8) hours, an employee shall be entitled to an additional pay for overtime work at the rate of 30% of his/her hourly rate.

For more details on the specific guidelines for holiday pay rates on these dates, you may download Labor Advisory No. 13, Series of 2020 here.

On 01 April 2020, however, the DOLE issued another advisory, making a clarification that the provisions of Labor Advisory No. 13, Series of 2020 are subject to the guidelines enumerated under Labor Advisory No. 13-A, Series of 2020, which provides that on account of the existence of a national emergency due to the COVID-19 pandemic, employers are allowed to defer payment of holiday pays on April 9, 10, and 11, 2020, as may be applicable or until such time that the present economic situation has been abated and normal operations of the establishments are back in place.

Moreover, establishments that have been totally closed or was constrained to close operation during the ECQ period are exempted from payment of the holiday pay under Labor Advisory No. 13, Series of 2020.

To read Labor Advisory No. 13-A, Series of 2020 in full, you may download the same here.

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