Wednesday, March 27, 2013

Labor dep’t reiterates rules on holiday pay

THE DEPARTMENT of Labor and Employment yesterday reminded private sector employers on pay rules to be observed for employees who will work on Maundy Thursday, Good Friday, and Black Saturday.

“President Benigno S. C. Aquino III had earlier issued Proclamation No. 459, Series of 2012, on 16 August 2012 affirming Maundy Thursday and Good Friday on 28 and 29 March, respectively, as regular holidays, and Black Saturday on 30 March... as a special non-working day throughout the country,” Labor and Employment Secretary Rosalinda D. Baldoz said in a statement. “I reiterate to our private sector employers to observe the pay rules and other core labor and occupational safety and health standards during these holidays in the interest of workers’ welfare and protection.”

She cited Labor Advisory No. 06, Series of 2012, that provided guidelines for pay on regular holidays, special non-working days and special holidays for 2013 as guide for private sector employers.

For the regular holidays on March 28 (Maundy Thursday) and 29 (Good Friday):

• If the employee does not work, he should be paid 100% of his salary for that day;

• If the employee works, he should be paid 200% of his regular salary for the first eight hours;

• If the employee works beyond eight hours, he should be paid an additional 30% of his hourly rate on that day;

• If the employee works during a regular holiday that also falls on his rest day, he should be paid an additional 30% of his daily rate on that day (which is x 200%).

• If the employee works beyond eight hours during a regular holiday that also falls on his rest day, he should be paid an additional 30% of his hourly rate on that day.

For the special non-working day on March 30 (Black Saturday):

• If the employee does not work, the “no work, no pay” principle will apply, unless there is a company policy, practice, or collective bargaining agreement granting payment on a special day;

• If the employee works, he should be paid an additional 30% of his daily rate on the first eight hours of work;

• If the employee works beyond eight hours, he should be paid an additional 30% of his hourly rate on that day;

• If the employee works during a special day that also falls on his rest day, he should be paid an additional 50% of his daily rate on the first eight hours of work;

• If the employee works beyond eight hours during a special day that also falls on his rest day, he should be paid an additional 30% of his hourly rate on that day.


source:  Businessworld

Special leave benefit for women employees

THE NUMBER of women in the Philippine work force has considerably risen through the years. In recognition of the vital role that women employees play in the country’s labor landscape, several laws have been passed to protect their rights, and address their unique needs.

One of the most recent benefits granted to women employees is the Special Leave Benefit (SLB) found in Section 18 of RA 9710, more popularly known as the Magna Carta of Women, which was signed into law on Aug. 14, 2009. SLB is granted to women employees in recognition of the fact that those who underwent surgery due to gynecological disorders require a longer period of recovery.

Gynecological disorders refer to those that would require surgical procedure, such as, but not limited to, dilation and curettage and those involving female reproductive organs. It shall also include hysterectomy, ovariectomy, and mastectomy.

In order to carry out the provision of the Magna Carta of Women on SLB, the DOLE issued D.O. No. 112-11 on March 11, 2011, which provides for the guidelines governing its implementation in the private sector. Subsequently, on May 22, 2012, the DOLE issued D.O. No. 112-A, which amended the previous guidelines.

D.O. No. 112-11, as amended by D.O. No. 112-A, defined SLB as a female employee’s entitlement of two months with full pay from her employer based on her gross monthly compensation following surgery caused by gynecological disorders, provided that she has rendered continuous aggregate employment service of at least six months for the last 12 months.

Based on the foregoing definition, it is evident that the payment of the SLB is the sole obligation of the employer, without any contribution from its employees. Thus, although it may be seen as advantageous to women employees; on the other side of the coin, it may also be considered by employers as a burden.

While it may seem from the definition that every instance of special leave is equivalent to two months with full pay, D.O. No. 112-A clarified that the two months special leave is the maximum period of leave with pay that a woman employee may avail under RA 9710.

D.O. No. 112-A elucidated that a woman employee can avail of SLB for every instance of surgery due to gynecological disorders provided that the total maximum period is two months per year.

The period of leave with pay which will be allowed to a woman employee shall depend on the required period of recuperation as certified by a competent physician.

During the period of leave, the woman employee shall not report for work but she will still receive her salary covering said period and it is upon the discretion of the employer whether to allow the employee availing of the SLB to receive her salary, before or during the surgery.

The basis of the computation of SLB is the woman employee’s gross monthly compensation, which refers to the monthly basic pay plus mandatory allowances fixed by the regional wage boards. The mandatory allowances refer to the cost of living allowance (COLA) found in wage orders issued by respective Regional Tripartite Wages and Productivity Boards (RTWPB) and does not include allowances granted by the employer by virtue of company policy or practice.

A common issue in the implementation of SLB is whether or not it can be simultaneously availed by a woman employee together with the sickness benefit under the SSS. Based on the guidelines, SLB is different from SSS sickness benefit. It must be emphasized that SLB is granted by the employer to a woman employee who has undergone surgery due to gynecological disorder. On the other hand, the sickness benefit is administered and given by the SSS in accordance with the SSS law and in compliance with the requirements provided therein.

It must also be noted that under the SSS law, the member-employees give contributions to be entitled to the benefits therein, including sickness benefit; whereas SLB is the sole obligation of the employer, sans any contribution from the employees.

SLB cannot be taken from existing statutory leaves, such as the five-day service incentive leave, 10-day leave for victims of VAWC and seven-day parental leave for solo parents, as it is given over, and on top of, other leave entitlements under existing laws. If SLB has already been exhausted, company leave and other mandated leave benefits may be availed of by the woman employee.

However, while SLB is in addition to other existing statutory leave entitlements, D.O. No. 112-A expressly provides that when the woman employee had undergone surgery due to gynecological disorder during her maternity leave, she is entitled only to the difference between SLB and maternity leave benefits.

Another concern in the implementation of SLB is the existence of “hospitalization benefits” granted by employers to their employees. Some companies have “hospitalization benefits” in place under a company policy or practice, which are granted to their employees upon confinement, surgery or hospitalization. This poses a concern whether or not said companies still have to grant women employees SLB over and above the “hospitalization benefits” that they already give. Under the guidelines, if there are existing or similar benefits providing similar or equal benefits to what is mandated by law, then the same shall already be considered as compliance, unless the company policy, practice or CBA provides otherwise.

Nonetheless, in determining whether the existing benefits can be deemed as compliance, it is necessary to bear in mind that SLB has a unique and distinctive character of being applicable only to women employees who underwent surgeries involving gynecological disorders. Hence, benefits granted to all employees of the company, who went through any type of surgery, may not be considered as compliance if the guidelines will be applied to the letter.

While there are issues, which still have to be addressed in its implementation, the grant of SLB is, indeed, another milestone for women employees. And its true essence will be realized upon the employer’s faithful compliance with the law and implementing guidelines.

(Natasha C. Daza is an associate of Angara Abello Concepcion Regala & Cruz Law Offices [ACCRALAW], Cebu Branch. She can be contacted at accralawcebu@accralaw.com)


source: Businessworld