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Labor Law

06 Nov

Sample Computation of 13th Month Pay for Year 2020

Sample computation of the 13th month pay mandatory benefit is shown here to guide both the employer and employee especially that the date of payment under the law is getting closer. Under P.D. 851, all employers are required to pay all their employees receiving a basic salary a 13th-month pay not later than December 24 of every year. Memorandum No. 28 modified Section 1 of P.D. 851 to the extent that all employees are hereby required to pay all their [...]

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31 Oct

Bona Fide Suspension of Operations of Six Months Can Now be Extended

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Bona fide suspension of operations provided under the Labor Code allows companies to temporarily close on account of lack of raw materials, orders, etc. Article 301 [Formerly Article 286] of the Labor Code contemplates a situation when employment is not deemed terminated. The bona-fide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment [...]

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26 Oct

Reinstatement Pending Appeal with Sample Demand for Reinstatement Salaries and Benefits

Reinstatement, if ordered in a labor case by the Labor Arbiter, is immediately executory even pending appeal. The employer has the obligation to reinstate and pay the wages of the dismissed employee during the period of appeal until reversal by the higher court. (Wenphil Corporation vs. Abing, G.R. No. 207983, April 7, 2014) Under Article 229 of the Labor Code, “the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall [...]

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19 Oct

Thirteenth (13th) Month Pay Labor Advisory Guidelines for Year 2020

Thirteenth (13th) month pay guidelines have been issued by the Department of Labor and Employment (DOLE) in a Labor Advisory issued on October 16, 2020. The authority of the DOLE to issue the guidelines is pursuant to Article 5 of the Labor Code of the Philippines, as renumbered and in accordance with Presidential Decree No. 851 requiring employers in the private sector to pay their rank and-file employees a 13th Month Pay. Coverage Rank-and-file employees in the private sector shall be entitled [...]

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16 Oct

Wage Deduction and Withholding

Wage is defined as the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or ascertained on a time, task, piece, or commission basis, or other method of calculating the same, which is payable by an employer to an employee under a written or unwritten contract of employment for work done or to be done, or for services rendered or to be rendered and includes the fair and reasonable value, as determined by [...]

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14 Oct

Holiday Pay as a Legal Obligation and Deferment Due to COVID-19 Situation

Holiday pay is mandated to be paid as soon as the right has accrued to the employees. There are two kinds of holidays under the Philippine labor laws. One, regular holiday and two, special day. Currently, there are twelve regular holidays and at least three special days. There are other special days that the Malacañang proclaim from time to time and depending on the occasion. There are special days also which are declared, covering only a particular local government. The special [...]

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10 Oct

Unemployment Assistance under the Bayanihan Act 2 (BARO)

Unemployment assistance is provided under R.A. 11494, otherwise known as the “Bayanihan to Recover As One Act” or “BARO.” The amount of five thousand pesos (PhP5,000.00) to eight thousand pesos (PhP8,000.00) unemployment or involuntary separation assistance for displaced workers or employees due to COVID-19 including probationary, project, seasonal, contractual and casual employees in private health institutions, culture and arts, creative industries, including, but not limited to, film and audiovisual workers, broadcast, construction, public transportation, trade and industries, cooperatives, an other [...]

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30 Sep

Special Risk Allowance for Private and Public Health Workers Under Bayanihan Act 2

Special risk allowance was included in the appropriation for all public and private health workers directly catering to or in contact with COVID-19 patients for every month that they are serving during the state of national emergency as declared by the President under R.A. 11494 or the “Bayanihan to Recover as One Act.” Provision of a “COVID-19 special risk allowance” by the national government for all public and private health workers directly catering to or in contact with COVID-19 patients [...]

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