Query: What are the rights and legal remedies available for employees in the Philippines who have been illegally terminated, particularly those who have not received mandatory benefits such as the 13th-month pay and holiday pay?
In the Philippines, employees are protected under the Labor Code, which outlines specific rights and remedies in cases of illegal termination. If an employee feels they have been wrongfully terminated, they can file a complaint for illegal dismissal with the National Labor Relations Commission (NLRC). The burden of proof to demonstrate the legality of the dismissal falls on the employer.
Employees who have been terminated illegally are entitled to certain remedies including reinstatement without loss of seniority rights and other privileges, or separation pay if reinstatement is no longer possible. Separation pay is calculated based on the length of service, typically at least one month's salary for every year of service.
In addition to claims for illegal dismissal, employees can also pursue claims for non-payment of statutory benefits such as the 13th-month pay, holiday pay, and other incentives. Under Philippine law, all rank-and-file employees are entitled to receive their 13th-month pay regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they have worked for at least one month during the calendar year.
The 13th-month pay should be paid no later than December 24 of each year. Additionally, employees who work on regular holidays are entitled to at least 200% (double pay) of their daily rate. This includes situations where the day falls on the employee’s scheduled rest day.
If these payments are not made, employees may file a money claim with the Department of Labor and Employment (DOLE). The process involves submitting a complaint to the nearest DOLE office, where it will be subject to a mediation-conciliation process to attempt to resolve the issue. If mediation fails, the case may be forwarded to the NLRC for formal adjudication.
Employees are encouraged to maintain copies of all relevant employment documents, pay slips, and any correspondence with their employer. These documents can serve as evidence in their claims against the employer.
Legal counsel can also be sought to navigate the complexities of labor law in the Philippines, ensuring that the rights of the employee are fully represented and that the best possible outcome is achieved. Employees should act promptly as there are time limits for filing claims, typically within three years from the date the cause of action accrued.