COVID-19 Client Advisory Key Issues in Labor & Employment as of 07 April 2020

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HOLIDAY PAY RULES

1. Are employers required to pay holiday pay for the upcoming holidays covered by the ECQ period?

Yes, employers are required to pay their employees holiday pay during regular holidays even if the employee did not work. For special holidays, the employer is not required to pay the employee if he did not work, unless there is a favorable company policy, practice or collective bargaining agreement granting payment on a special day. (DOLE Labor Advisory No. 13, series of 2020, on the Payment of Wages for the Regular Holidays on April 9 and 10, 2020 and Special holiday on April 11, 2020) As an exception, if the employers/establishments totally closed or ceased operations during the ECQ period, they are exempted from payment of holiday pay. This means that establishments partially operating or adopting a work from home arrangement are required to pay holiday pay. (DOLE Labor Advisory No. 13-A, series of 2020, on the Deferment of Payment of Holiday Pay for the April 2020 Holidays)

2. How much should employers pay their employees for the Regular Holidays on April 9 and April 10, 2020?

The usual pay rules under the Labor Code and its implementing rules and regulations shall be applied. For April 9, since it is a double regular holiday (Araw ng Kagitingan and Holy Thursday), the computation of wage for that day is as follows:

SCENARIO WAGE

Employee did not work but was present or on leave with pay on the workday prior to the start of the ECQ on 17 March 2020

(Basic Wage + COLA) x 200%

Employee worked For the first eight hours: (Basic Wage + COLA) x 300% For work done in excess of eight hours: Hourly rate of the basic wage x 300% x 130% x no. of hours worked

Employee worked and April 9 is his/her rest day

For the first eight hours: [(Basic Wage + COLA) x 300%] + [30% (Basic Wage + COLA) x 300%)]

For work done in excess of eight hours: Hourly rate of the basic wage x 300% x 130% x 130% x no. of hours worked

COVID-19 Client Advisory Key Issues in Labor & Employment as of 07 April 2020

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For April 10 (Good Friday), the computation of wage is as follows:

SCENARIO WAGE Employee did not work but was present or on leave with pay on the workday prior to the start of the ECQ on 17 March 2020

(Basic Wage + COLA) x 100%

Employee worked For the first eight hours: (Basic Wage + COLA) x 200%

For work done in excess of eight hours: Hourly rate of the basic wage x 200% x 130% x no. of hours worked

Employee worked and April 10 is his/her rest day

For the first eight hours: [(Basic Wage + COLA) x 200%] + [30% (Basic Wage + COLA) x 200%)]

For work done in excess of eight hours: Hourly rate of the basic wage x 200% x 130% x 130% x no. of hours worked

3. How much should employers pay their employees for work performed during the Special Non-Working Holiday (April 11, 2020)?

The usual pay rules also on special non-working holiday under the Labor Code and its implementing rules shall be applied, to wit:

SCENARIO WAGE

Employee did not work None Employee worked For the first eight hours: [(Basic Wage x

130%) + COLA]

For work done in excess of eight hours: Hourly rate of the basic wage x 130% x 130% x no. of hours worked

Employee worked and April 11 is his/her rest day

For the first eight hours: [(Basic Wage x 150%) + COLA]

For work done in excess of eight hours: Hourly rate of the basic wage x 150% x 130% x no. of hours worked

COVID-19 Client Advisory Key Issues in Labor & Employment as of 07 April 2020

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4. What if the employers are unable to pay the holiday pay because of the COVID-19 situation?

Employers are allowed to defer payment of holiday pay on April 9, 10 and 11, 2020, as may be applicable, until such time that the present emergency situation has been abated and the normal operations of the establishment is in place. (DOLE Labor Advisory No. 13-A, series of 2020, on the Deferment of Payment of Holiday Pay for the April 2020 Holidays)

OTHER UPDATES

1. Is the ECQ period included for purposes of determining the six (6)-months probationary period?

No. The one-month ECQ period is not included in determining the six-month probationary period of a probationary employee.

2. What can affected establishments applying for COVID-

19 Adjustment Measures Program (CAMP) submit as alternatives to the payroll requirement?

In case of non-availability of payroll, the affected establishment may submit any of the following: (a) Worker’s pay slip/verifiable handwritten pay slip; (b) Proof of payment of wages via logbook or ledger; (c) Employment contract; (d) Cash voucher or petty cash voucher; (e) Authority to debit account sent by employer to bank for the wage

of employees; (f) SSS, PhilHealth and Pag-IBIG Alphalist or list of remittances; (g) BIR Form 2316; or (h) List of employees with 13th month pay.

Disclaimer and Limitations — This advisory is intended to provide general guidance to

clients of PJS Law only, based on laws and issuances as of the date stated above. Please confirm with our lawyers for possible updates or contact pjs@pjslaw.com if you have clarifications or other concerns.