Dear Attorney,
I work for a company that has implemented certain policies that seem to withhold holiday pay from employees, and there are instances where workers are placed on forced leave without proper notice. I would like to understand if these practices are legally acceptable. Can a company refuse to give holiday pay, and is forced leave allowed under labor laws?
Thank you,
A Concerned Employee
Insights
Under Philippine labor laws, holiday pay and forced leave are governed by the Labor Code and specific regulations from the Department of Labor and Employment (DOLE). These laws ensure workers are compensated fairly for holidays and protect against unfair leave practices.
Holiday Pay Rules
Under Article 94 of the Labor Code of the Philippines, employers are mandated to pay their employees for regular holidays, even if no work is performed. This is known as holiday pay. The rule applies to all employees except:
- Employees of the government and government-owned or controlled corporations;
- Employees engaged on task, contract, or purely commission basis;
- Field personnel and other employees whose time and performance are unsupervised by the employer.
For regular holidays, an employee who works is entitled to 200% of their daily wage (double pay). If they don’t work, they still get 100% of their wage for that day. Companies that don’t provide holiday pay may face penalties or claims filed by affected employees through the DOLE.
Forced Leave
Forced leave, or compelling an employee to go on leave without pay, is only allowed under specific circumstances. In accordance with Philippine labor laws and jurisprudence, forced leave without compensation is generally prohibited unless the employer has a valid reason, such as lack of business activity, a justifiable restructuring, or other lawful grounds. If forced leave occurs frequently or without reason, it may be considered a violation of labor rights.
To enforce forced leave, employers typically need to file notice with the DOLE and ensure that the rights of employees are safeguarded. Employees may challenge unlawful leave practices by seeking redress through DOLE or filing a labor case.
In conclusion, companies are generally required to provide holiday pay, and forced leave can only be implemented under specific legal conditions. If an employer does not comply with these rules, employees may consult with DOLE or seek legal assistance to protect their rights.