Ash Fall Situation Due to Volcanic Eruption; Labor Advisory 01, Series of 2020 on Rules of Pay for Work SuspensionAtty Elvin
Ash fall occurred recently on account of the impending eruption of Taal Volcano which PHIVOLCS placed at alert level 4 as of January 13, 2020. See the PDF file of Labor Advisory 01, Series of 2020 here (original file not mine).
The Department of Labor and Employment (DOLE) on January 13, 2020 issued Labor Advisory 01, Series of 2020 on the suspension of work by reason of natural or man-made calamity.
Although the DOLE issuance does not specifically mention the Taal volcanic activity, the timing of its release seems to address the position of DOLE in this situation.
The rule states the following pay rules for this type of calamity/ies:
- If unworked – No pay, unless there is a favorable company policy, practice, or collective bargaining agreement (CBA) granting payment of wages on said day. 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 worked – No additional pay shall be given to the employees but only their salary on said day.
The rule is that an employee is entitled only to his basic rate for work performed during said days. No premium is required since work performed on said days is considered work on ordinary working days.
For instance, Muhavang Chulogue Funeral Company in NCR required its employees to come to work on January 13, 2020, which is a Monday.
Thus X who is a minimum wage earner shall be paid as follows:
Work from 10:00 a.m. 7:00 p.m.
Daily Wage = Basic Daily Wage x 100%
= PhP537.00 x 100%
OT Work from 7:01 p.m. 9:01 p.m. or for two (2) hours
OT Pay = Daily rate / 8 hours x 125% x number of hours of OT work
OT Pay = PhP537.00 / 8 hours x 125% x 2 hours
= P67.125 x 125% x 2 hours
=PhP83.90625 x 2 hours
Total Pay for the Day with 2 Hours OT
Total Pay = Basic Pay + OT Pay
= PhP537 + PhP167.81