Employers allowed to defer payment of holiday pay on Labor Day

Published April 30, 2020, 12:00 AM

by manilabulletin_admin

By Leslie Aquino

The Department of Labor and Employment (DOLE) has allowed employers in the private sector to defer payment of holiday pay on May 1, Labor Day.

In Labor Advisory No. 15-2020, the labor department cited the existence of a national emergency arising from the Coronavirus Disease 2019 (COVID-19) pandemic as the reason for this.

“In view of the existence of a national emergency arising from the COVID-19 situation, employers are allowed to defer payment of holiday pay on May 1, 2020 until such time that the present emergency situation has been abated and the normal operations of the establishment is in place,” said DOLE.

“Establishments that have totally closed or ceased operation during the enhanced community quarantine period are exempted from the payment of the holiday pay under this advisory,” it added.

The DOLE also reminded employers that the following rules for pay on regular holidays shall apply on May 1, 2020:

-If the employee did not work, he/she shall be paid 100 percent of his/her wage for that day, subject to certain requirements under the implementing rules and regulations of the Labor Code, as amended, or that he or she was present or on leave with pay on April 30. the workday prior to May 1, 2020.

-For work done during the regular holiday, the employee shall be paid 200 percent of his/her wage for that day for the first eight hours.

-For work done in excess of eight hours (overtime work), he/she shall be paid an additional 30 percent of his/her hourly rate on said day.

-For work done during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her basic wage of 200 percent.

-For work done in excess of eight hours (overtime work) during a regular holiday that also falls on his/her rest day, he/she shall be paid an additional 30 percent of his/her hourly rate on said day.

 
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