Concern:

What can be done if a company in the Philippines is not paying employees for regular holidays and benefits?

∇ Legal Contemplator

Let’s start small and build up gradually. First, the foundation: in the Philippines, labor laws are governed by the Labor Code of the Philippines, and violations like non-payment of holiday pay and benefits are serious issues. I need to ensure I understand what is required by law and what steps employees can take to address this. But do I fully grasp the scope of the problem yet? Let me think this through step by step.

Observing the Problem

Holiday Pay Basics
Under Article 94 of the Labor Code, employers are required to pay holiday pay to employees even if they do not work on regular holidays. This is typically equivalent to their daily wage. If they work on a holiday, the law mandates additional compensation—usually 200% of the regular daily wage.
Benefits
Benefits typically refer to statutory requirements like SSS, PhilHealth, Pag-IBIG contributions, overtime pay, night shift differentials, and others. Could the employer also be neglecting these? I can’t assume that yet, but it’s a possibility.
The Concern’s Ambiguity
The phrasing "not paying for regular holidays and benefits" could mean different things. Does the employer outright refuse to comply with legal obligations, or are they delaying payments? Is this a systemic issue in the company? These uncertainties make it harder to focus.

I think I need to split this into clearer questions.

First question: What does the law mandate for regular holiday pay?
Second question: What benefits are legally required?
Third question: If violations occur, what remedies exist?

Revisiting First Principles

Let’s focus on the first question: What does the law mandate for regular holiday pay?

Under Article 94, employees are entitled to holiday pay unless they fall under the exceptions (e.g., managerial employees, government employees, domestic helpers, or workers paid on a purely commission basis). Non-payment of this is a clear violation. But there’s something nagging me—could the company argue they qualify under an exception? Let me list these exceptions to ensure completeness.

Are the employees considered managerial staff? Probably not, as they seem to have raised this concern, indicating they likely don’t hold supervisory roles.
Are they paid on a commission basis or piece-rate work? This could complicate matters because commission-based workers are excluded from holiday pay provisions.
Could the company argue financial distress as a defense? The pandemic or economic downturns might complicate enforcement, although financial hardship is not an excuse to violate labor laws.

But now I’m thinking, have I fully understood what "benefits" they’re referring to? The term seems broad. Let’s pause and explore the second question:

Defining “Benefits”

“Benefits” might mean:

Mandatory contributions to SSS, PhilHealth, and Pag-IBIG.
Overtime pay or night shift differentials for work performed outside normal hours.
13th-month pay, required by Presidential Decree No. 851.
Leave entitlements like vacation or sick leave.

Could the issue be isolated to only one of these, or is it a combination? My gut says to consider the worst-case scenario: the employer is neglecting all obligations. But is that realistic? Employers often comply with at least some laws. I can’t be sure without more information. Let’s shift gears and tackle the third question:

Remedies for Non-Payment

This feels more actionable. What can employees do if their company isn’t paying holiday pay and benefits? I need to brainstorm possible steps:

Internal Resolution
Employees can first raise concerns directly with HR or management. Is this step useful? Maybe, but only if the employer acts in good faith. There’s a real chance this route fails if the employer is intentionally non-compliant.
Filing a Complaint with DOLE (Department of Labor and Employment)
This feels more concrete. The DOLE has jurisdiction over labor disputes and can investigate non-payment claims. Could the process be lengthy? Likely, but it’s still the most straightforward legal avenue.
Legal Remedies
Employees can escalate the issue through formal labor cases if DOLE mediation fails. This might involve filing a case with the National Labor Relations Commission (NLRC). Is this practical for employees with limited resources? Probably not ideal, but it’s necessary in severe cases.

Doubts and Backtracking

Am I missing something? What if the employees fear retaliation? This is a valid concern. Philippine labor laws prohibit retaliation against workers who assert their rights, but enforcement is imperfect. Should I explore other options, like anonymous reporting?

Or maybe I need to dig deeper into whether DOLE has mechanisms for expedited resolution. Could alternative dispute resolution (ADR) be faster? Unclear. I need to check this.

Final Thoughts and Unanswered Questions

I feel like I’ve built a clearer picture, but some uncertainties remain. For instance:

Are there unique industry-specific rules that apply here?
What evidence will employees need to prove their claims?
How likely is DOLE to intervene effectively?

Despite these doubts, I’m starting to see a natural resolution.

Final Answer:

Employees who are not receiving regular holiday pay and benefits in the Philippines can take the following steps:

Internal Resolution: Attempt to discuss the issue with HR or management first. Document all communications as evidence.
File a Complaint with DOLE: Report the violation to the Department of Labor and Employment. Employees can do this individually or collectively.
Legal Action: If mediation fails, escalate the matter to the National Labor Relations Commission (NLRC).
Anonymous Reporting: If retaliation is a concern, anonymous complaints through DOLE hotlines or online systems may be possible.

These steps, while systematic, may require persistence and patience. Employees are encouraged to document all relevant evidence, including payslips, employment contracts, and records of communications with the employer, to strengthen their case.