The Department of Labor and Employment (DOLE) has allowed the extension of the rehiring policy for temporarily displaced workers for another six months.

In Department Order No. 215-2020, DoLE said "in case of declaration of war, pandemic, and similar national emergencies, the employer and the employees, through the union, if any, or with the assistance of the DOLE, shall meet in good faith for the purpose of extending the suspension of employment for a period not exceeding six months."

The labor department, however, stressed that the extension of suspension of employment shall not affect the "right of the employees to separation pay," adding that the first six months of suspension of employment shall be included in the computation of the employees' separation pay.

According to DoLE, the employer shall report to the former, through its regional offices, the extension of suspension of employment 10 days prior to its effectivity, subject to inspections.

DoLE added that employees "shall not lose employment if they find alternative employment during the extended suspension of employment, except in cases of written, unequivocal, and voluntary resignation."

Should retrenchment be necessary, before or after the expiration of the extension, the labor department said, the affected workers shall be entitled to separation pay as prescribed by the Labor Code, company policies, or collective bargaining agreement, whichever is higher.

It added that retrenched employees shall have priority in the rehiring, if they indicate their desire to resume their work not later than a month from the resumption of operations. 

"This nothwithstanding, by mutual agreement of the employer and employees, through the union, if any, or with the assistance of the DoLE, employees may be recalled to work or retrenched subject to the requirement of notice and separation pay, anytime before the expiration of the extension or suspension of employment," said DoLE.

Earlier this month, Labor Secretary Silvestre Bello III said employers want the period to rehire employees who were temporarily terminated due to the COVID-19 pandemic extended for another six months.

He said employers are appealing for a six-month extension as the business climate is still not good.

Under the Labor Code, the employer-employee relationship may be suspended in case of suspension of operation of the business or undertaking of the employer for a period not exceeding six months.

If not rehired after six months, the employee placed on floating status must be provided with their separation pay. 

The COVID-19 pandemic saw the imposition of various levels of community quarantine which halted the operations of nearly all business establishments.