Holiday Pay

1. Concept

Holiday pay – refers to an additional pay provided to a covered employee during regular holidays. If no work is done on a holiday, the employee receives his holiday pay – i.e. 100% holiday pay. If there is work done, he receives his holiday pay plus his day’s wage – i.e. 100% holiday pay + 100% daily salary. If there is work done on a double holiday, he receives two (2) holiday pays due to the double holiday, plus his day’s wage – i.e. 200% holiday pay + 100% daily salary. (P.D. 442, Labor Code, Article 94; Omnibus Rules Implementing the Labor Code or “Omnibus Rules”, Section 3, Rule IV, Book Three; 2024 DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits or “DOLE-BWC Handbook”, pp. 14-17)

Holiday pay is a legislated benefit enacted as part of the Constitutional imperative that the State shall afford protection to labor. Its purpose is not merely “to prevent diminution of the monthly income of the workers on account of work interruptions. In other words, although the worker is forced to take a rest, he earns what he should earn, that is, his holiday pay.” It is also intended to enable the worker to participate in the national celebrations held during the days identified as with great historical and cultural significance. (Asian Transmission Corporation v. CA, G.R. No. 144664, March 15, 2004, Per Carpio-Morales, J.)

Thus, holiday pay is a legally mandated benefit required to be paid by the employer to the employee on regular holidays, whether or not the said employee worked. The amount of holiday pay will depend on whether the employee performed work or not as explained below.

a. Legal basis

The following is the legal bases:

Legal BasisProvisions
1) P.D. 442, Labor CodeArticle 94
2) Omnibus RulesSection 3, Rule IV, Book Three

b. Daily- or monthly-paid, irrelevant

Whether employees are daily- or monthly-paid is not relevant.

Both daily-paid and monthly-paid are entitled to holiday pay.

Otherwise stated, the rules on holiday pay apply to both daily-paid and monthly-paid employees. There should be no distinction between the two.

Art. 94 of the Labor Code, as amended, affords a worker the enjoyment of [13] paid regular holidays. The provision is mandatory, regardless of whether an employee is paid on a monthly or daily basis. Unlike a bonus, which is a management prerogative, holiday pay is a statutory benefit demandable under the law. (Asian Transmission Corporation v. CA [2004], supra.)

Related: Daily-paid v. Monthly-paid

c. Employee status, irrelevant

The employee’s status is not relevant.

Simply, so long as they are employees, they are entitled to holiday. Thus, it does not matter whether they are regular, probationary, casual, project, seasonal, or fixed-term.

2. Regular holidays

There are currently thirteen (13) regular holidays in the Philippines.

NB: Regular holidays should not be confused with special non-working days, which are covered by premium pay.

a. 13 Regular Holidays

These are the thirteen (13) regular holidays:

Regular HolidayDate
New Year’s DayJanuary 1
Maundy Thursday(Movable date)
Good Friday(Movable date)
Araw ng KagitinganApril 9
Labor DayMay 1
Independence DayJune 12
National Heroes’ DayLast Monday of August
Eid’l Fitr(Movable date)
Eid’l Adha(Movable date)
Bonifacio DayNovember 30
Christmas DayDecember 25
Rizal DayDecember 30
General election(Movable date)

(Labor Code, Article 94[c]; Omnibus Rules, Section 3, Rule IV, Book III; DOLE-BWC Handbook, pp. 14-17)

Independence Day (June 12), Araw ng Kagitingan (April 9), National Heroes Day (last Sunday of August), Bonifacio Day (November 30) and Rizal Day (December 30) were declared national holidays to afford Filipinos with a recurring opportunity to commemorate the heroism of the Filipino people, promote national identity, and deepen the spirit of patriotism. Labor Day (May 1) is a day traditionally reserved to celebrate the contributions of the working class to the development of the nation, while the religious holidays designated in Executive Order No. 203 allow the worker to celebrate his faith with his family. (Asian Transmission Corporation v. CA [2004], supra.)

b. General elections

The day designated by law for holding a general election is a legal holiday. (Labor Code, Article 94[b])

Thus, all other elections are excluded. Meaning, non-general elections will not result in entitlement to holiday pay.

Non-general elections include:

1) Local elections;

2) Barangay elections;

3) Sangguniang Katabaan (SK) elections;

4) Special Elections; and

5) Referendum.

c. Double holiday

A double holiday happens when there are two holidays in one day.

For example, since Maundy Thursday is movable, there are occasions when it falls on Araw ng Kagitingan resulting in two holidays on the same day or a double holiday.

The fact that two holidays fall on the same date should not operate to reduce the holiday pay benefits a worker is entitled to receive. (Asian Transmission Corporation v. CA [2004], supra.)

Asian Transmission Corporation v. CA,G.R. No. 144664, March 15, 2004, Per Carpio-Morales, J.:

⦁ The Department of Labor and Employment (DOLE), through Undersecretary Cresenciano B. Trajano, issued an Explanatory Bulletin dated March 11, 1993 wherein it clarified, inter alia, that employees are entitled to 200% of their basic wage on April 9, 1993, whether unworked, which[,] apart from being Good Friday [and, therefore, a legal holiday], is also Araw ng Kagitingan [which is also a legal holiday]. The bulletin reads:

On the correct payment of holiday compensation on April 9, 1993 which apart from being Good Friday is also Araw ng Kagitingan, i.e., two regular holidays falling on the same day, this Department is of the view that the covered employees are entitled to at least two hundred percent (200%) of their basic wage even if said holiday is unworked. The first 100% represents the payment of holiday pay on April 9, 1993 as Good Friday and the second 100% is the payment of holiday pay for the same date as Araw ng Kagitingan.

⦁ Said bulletin was reproduced on January 23, 1998, when April 9, 1998 was both Maundy Thursday and Araw ng Kagitingan x x x x

⦁ Despite the explanatory bulletin, [the employer] opted to pay its daily paid employees only 100% of their basic pay on April 9, 1998. Respondent Bisig ng Asian Transmission Labor Union (BATLU) protested.

⦁[SC Resolution: The employees are entitled to double holiday pay or 200%.]

⦁[A]rt. 94 of the Labor Code, as amended, affords a worker the enjoyment of ten [currently at 13] paid regular holidays. The provision is mandatory, regardless of whether an employee is paid on a monthly or daily basis. Unlike a bonus, which is a management prerogative, holiday pay is a statutory benefit demandable under the law. Since a worker is entitled to the enjoyment of ten paid regular holidays, the fact that two holidays fall on the same date should not operate to reduce to nine the ten holiday [currently at 13] pay benefits a worker is entitled to receive.

⦁ It is elementary, under the rules of statutory construction, that when the language of the law is clear and unequivocal, the law must be taken to mean exactly what it says. In the case at bar, there is nothing in the law which provides or indicates that the entitlement to ten days of holiday pay shall be reduced to nine when two holidays fall on the same day.

d. Distinguished from special non-working days

Regular holidays are different from special non-working days.

While regular holidays will result in holiday pay, special non-working days result in payment of premium pay if work is done, instead of holiday pay.

Regular HolidaysSpecial Non-Working Days
Holiday PayPremium Pay

Related: Premium Pay.

3. Covered and excluded employees

The benefit applies to all employees (called the “covered employees”), except these “exempt employees”:

1) Government employees;

2) Those of retail and service establishments regularly employing not more than five (5) workers;

3) Kasambahay and persons in the personal service of another;

4) Managerial employees;

5) Officers or members of a managerial staff;

6) Field personnel and other employees whose time and performance is unsupervised by the employer. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

a. Government employees

The following are not entitled to holiday pay:

⦁ Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

Thus, government employees do not have holiday pay.

Related: Government employees

b. Certain retail and service employees

The following are not entitled to holiday pay:

⦁ Those of retail and service establishments regularly employing not more than five (5) workers. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

1) Retail and service establishments

Establishment – refers to ‘a place of business’ ‘with furnishings and staff’. (Merriam-Webster Online Dictionary)

Retail – refer to ‘the sale of commodities or goods in small quantities to ultimate consumers.’ (Merriam-Webster Online Dictionary)

Service – refer to ‘a facility supplying some public demand.’ (Merriam-Webster Online Dictionary)

c. Kasambahay and persons in the personal service of another

The following are not entitled to holiday pay:

Kasambahay and persons in the personal service of another. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

1) Kasambahay

Domestic worker or Kasambahay – refers to ‘any person engaged in domestic work within an employment relationship such as, but not limited to, the following: general househelp, nursemaid or “yaya”, cook, gardener, or laundry person, but shall exclude any person who performs domestic work only occasionally or sporadically and not on an occupational basis.’ (R.A. 10361, Domestic Workers Act or Batas Kasambahay. Section 4 [d])

Related: Kasambahay or Domestic Worker, Guide: Batas Kasambahay or Domestic Workers Act

2) Persons in the personal service of another

Persons in the personal service of another – refers to individuals who regularly provide service to another individual, a family, or a household, without being a kasambahay or a domestic worker.

Related: Persons in the Personal Service of Another

d. Managerial employees

The following are not entitled to holiday pay:

⦁ Managerial employees, if they meet all of the following conditions:

1) Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;

2) They customarily and regularly direct the work of two or more employees therein; and

3) They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

Thus, to be excluded from holiday pay, the manager should meet all three (3) conditions in the immediately preceding paragraph.

Related: Managerial employees

Grand Asian Shipping Lines, Inc. v. Galvez, G.R. No. 178184, 29 January 2014, Per Del Castillo, J.:

⦁ Galvez and Gruta, as managerial employees, are not entitled to their claims for holiday pay, service incentive leave pay and premium pay for holiday and restday. Article 82 of the Labor Code specifically excludes managerial employees from the coverage of the law regarding conditions of employment which include hours of work, weekly rest periods, holidays, service incentive leaves and service charges.

1) Managers in name only

Under Labor Law, and to be exempt from holiday pay, managerial employees need to meet the three (3) conditions mentioned earlier.

Thus, the designation or title given to an employee is not determinative of whether or not the employee is indeed a manager – under Labor Law and for purposes of holiday pay.

Otherwise stated, giving an employee the title of a manager does not necessarily make them managers under Labor Law. To be managers who are exempt from holiday pay, the employees have to meet the three (3) conditions mentioned earlier.

For example, social media managers who only manages social media – and does not satisfy the three (3) conditions – is not a manager under Labor Law and thus they are entitled to holiday pay. They are only “managers” in name only.

Similarly, talent managers who go around assisting/helping talents/celebrities with various routines – and does not satisfy the three (3) conditions – will be entitled to holiday pay as the title “manager” in their role is descriptive of what they do, i.e., manage the routines of their talents/celebrities.

NB: Many employers have been held liable for holiday pay after a finding that the employee with the title of a “manager” was, in truth and in fact, not a manager under Labor Law as the conditions have not been met.

e. Managerial staff

The following are not entitled to holiday pay:

⦁ Officers or members of a managerial staff, if they perform the following duties and responsibilities:

1) Primarily perform work directly related to management policies of their employer;

2) Customarily and regularly exercise discretion and independent judgment

3) (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or

3) (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and,

4) Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs [1, 2, and 3] above. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

Related: Managerial staff

1) Managerial staff in name only

Under Labor Law, and to be exempt from holiday pay, managerial staff employees need to meet the four (4) conditions mentioned earlier.

Thus, the designation or title given to an employee is not determinative of whether or not the employee is indeed a manager staff – under Labor Law and for purposes of holiday pay.

Otherwise stated, giving an employee the title of a manager staff does not necessarily make them managerial staff under Labor Law. To be managerial staff who are exempt from holiday pay, the employees have to meet the four (4) conditions mentioned earlier.

NB: Many employers have been held liable for holiday pay after a finding that the employee with the title of a “managerial staff” was, in truth and in fact, not a managerial staff under Labor Law as the conditions have not been met.

f. Field personnel, etc.

The following are not entitled to holiday pay:

⦁ Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

1) Field personnel

Field personnel – refers to ‘non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.’ (Paragraph 3, Article 82, P.D.442, Labor Code; See also Section 1[e], Rule II, Book III, Omnibus Rules Implementing the Labor Code)

Related: Field personnel

2) ‘Those who are engaged on task or contract basis’

‘The phrase “those who are engaged on task or contract basis” should be related with “field personnel” applying the rule on ejusdem generis that general and unlimited terms are restrained and limited by the particular terms that they follow.’ (Cebu Institute of Technology v. Ople, G.R. No. L- 58870, December 18, 1987, Per Cortes, J.)

‘The payment of an employee on task or pakyaw basis alone is insufficient to exclude one from the coverage of SIL [service incentive leave] and holiday pay. They are exempted from the coverage of Title I (including the holiday and SIL pay) only if they qualify as “field personnel.” The IRR therefore validly qualifies and limits the general exclusion of “workers paid by results” found in Article 82 from the coverage of holiday and SIL pay.’ (David v. Macasio, G.R. No. 1954466, July 02, 2014, Per Brion, J.)

‘In short, in determining whether workers engaged on “pakyaw” or “task basis” is entitled to holiday and SIL pay, the presence (or absence) of employer supervision as regards the worker’s time and performance is the key: if the worker is simply engaged on pakyaw or task basis, then the general rule is that he is entitled to a holiday pay and SIL pay unless exempted from the exceptions specifically provided under Article 94 (holiday pay) and Article 95 (SIL pay) of the Labor Code. However, if the worker engaged on pakyaw or task basis also falls within the meaning of “field personnel” under the law, then he is not entitled to these monetary benefits.’ (David v. Macasio [2014], supra.)

‘Workers engaged on pakyaw or “task basis” are entitled to holiday and service incentive leave pay (SIL) provided they are not field personnel.’ (A. Nate Casket Maker v. Arango, G.R. No. 192282, October 05, 2016, Per Peralta, J.)

Related: Workers Paid by Results: Piece-rate, Pakyao, Takay, Task Basis

4. Special Groups of Employees

Holiday pay rules are different for certain special groups of employees as illustrated below.

1) Piece-rate workers

They are entitled to holiday pay which shall not be less than his/her average daily earnings for the last seven (7) actual days of work immediately preceding the regular holiday. The holiday pay should not be less than the applicable statutory minimum wage rate. (Section 2, Rule I, Book III, Omnibus Rules; DOLE-BWC Handbook, pp. 14-15)

Related: Workers Paid by Results: Piece-rate, Pakyao, Takay, Task Basis

2) Task or Pakyaw employees, but not field personnel

If task or pakyaw employees are not field personnel, then the task or pakyaw employees are entitled to holiday pay.

David / Yiels Hog Dealers v. Macasio, G.R. No. 1954466, 02 July 2014

⦁ [The employee worked as a butcher for the employer, a butchering establishment. The employee filed a labor case praying for, among others, to be paid holiday pay. In response, the employer claimed that the employee is not entitled thereto since he is paid on a task basis or pakyaw.]

⦁ [SC Resolution: The employee is entitled to holiday pay since he is not a field personnel even if he is paid on a task or pakyaw basis.]

⦁ A distinguishing characteristic of “pakyaw” or task basis engagement, as opposed to straight-hour wage payment, is the non-consideration of the time spent in working. In a task-basis work, the emphasis is on the task itself, in the sense that payment is reckoned in terms of completion of the work, not in terms of the number of time spent in the completion of work. Once the work or task is completed, the worker receives a fixed amount as wage, without regard to the standard measurements of time generally used in pay computation.

⦁ In [the employee’s] case, the established facts show that he would usually start his work at 10:00 p.m. Thereafter, regardless of the total hours that he spent at the workplace or of the total number of the hogs assigned to him for chopping, [the employee] would receive the fixed amount of ₱700.00 once he had completed his task. Clearly, these circumstances show a “pakyaw” or task basis engagement that all three tribunals uniformly found.

⦁ … the general rule is that holiday and SIL pay provisions cover all employees. To be excluded from their coverage, an employee must be one of those that these provisions expressly exempt, strictly in accordance with the exemption. Under the IRR, exemption from the coverage of holiday and SIL pay refer to “field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis[.]” Note that unlike Article 82 of the Labor Code, the IRR on holiday and SIL pay do not exclude employees “engaged on task basis” as a separate and distinct category from employees classified as “field personnel.” Rather, these employees are altogether merged into one classification of exempted employees.

⦁ Because of this difference, it may be argued that the Labor Code may be interpreted to mean that those who are engaged on task basis, per se, are excluded from the SIL and holiday payment since this is what the Labor Code provisions, in contrast with the IRR, strongly suggest. The arguable interpretation of this rule may be conceded to be within the discretion granted to the LA and NLRC as the quasi-judicial bodies with expertise on labor matters.

⦁ However, as early as 1987 in the case of Cebu Institute of Technology v. Ople the phrase “those who are engaged on task or contract basis” in the rule has already been interpreted to mean as follows:

[the phrase] should however, be related with “field personnel” applying the rule on ejusdem generis that general and unlimited terms are restrained and limited by the particular terms that they follow xxx Clearly, petitioner’s teaching personnel cannot be deemed field personnel which refers “to non-agricultural employees who regularly perform their duties away from the principal place of business or branch office of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty. [Par. 3, Article 82, Labor Code of the Philippines]. Petitioner’s claim that private respondents are not entitled to the service incentive leave benefit cannot therefore be sustained.

⦁ In short, the payment of an employee on task or pakyaw basis alone is insufficient to exclude one from the coverage of SIL [service incentive leave] and holiday pay. They are exempted from the coverage of Title I (including the holiday and SIL pay) only if they qualify as “field personnel.” The IRR therefore validly qualifies and limits the general exclusion of “workers paid by results” found in Article 82 from the coverage of holiday and SIL pay. This is the only reasonable interpretation since the determination of excluded workers who are paid by results from the coverage of Title I is “determined by the Secretary of Labor in appropriate regulations.”

⦁ The Cebu Institute Technology ruling was reiterated in 2005 in Auto Bus Transport Systems, Inc., v. Bautista:

A careful perusal of said provisions of law will result in the conclusion that the grant of service incentive leave has been delimited by the Implementing Rules and Regulations of the Labor Code to apply only to those employees not explicitly excluded by Section 1 of Rule V. According to the Implementing Rules, Service Incentive Leave shall not apply to employees classified as “field personnel.” The phrase “other employees whose performance is unsupervised by the employer” must not be understood as a separate classification of employees to which service incentive leave shall not be granted. Rather, it serves as an amplification of the interpretation of the definition of field personnel under the Labor Code as those “whose actual hours of work in the field cannot be determined with reasonable certainty.”

The same is true with respect to the phrase “those who are engaged on task or contract basis, purely commission basis.” Said phrase should be related with “field personnel,” applying the rule on ejusdem generis that general and unlimited terms are restrained and limited by the particular terms that they follow.

⦁ The Autobus ruling was in turn the basis of Serrano v. Santos Transit which the CA cited in support of granting [the employee’s] petition.

⦁ In Serrano, the Court, applying the rule on ejusdem generis declared that “employees engaged on task or contract basis xxx are not automatically exempted from the grant of service incentive leave, unless, they fall under the classification of field personnel.” The Court explained that the phrase “including those who are engaged on task or contract basis, purely commission basis” found in Section 1(d), Rule V of Book III of the IRR should not be understood as a separate classification of employees to which SIL shall not be granted. Rather, as with its preceding phrase – “other employees whose performance is unsupervised by the employer” – the phrase “including those who are engaged on task or contract basis” serves to amplify the interpretation of the Labor Code definition of “field personnel” as those “whose actual hours of work in the field cannot be determined with reasonable certainty.”

⦁ In contrast and in clear departure from settled case law, the LA and the NLRC still interpreted the Labor Code provisions and the IRR as exempting an employee from the coverage of Title I of the Labor Code based simply and solely on the mode of payment of an employee. The NLRC’s utter disregard of this consistent jurisprudential ruling is a clear act of grave abuse of discretion. In other words, by dismissing [the employee’s] complaint without considering whether [the employee] was a “field personnel” or not, the NLRC proceeded based on a significantly incomplete consideration of the case. This action clearly smacks of grave abuse of discretion.

Entitlement to holiday pay

⦁ Evidently, the Serrano ruling speaks only of SIL pay. However, if the LA and the NLRC had only taken counsel from Serrano and earlier cases, they would have correctly reached a similar conclusion regarding the payment of holiday pay since the rule exempting “field personnel” from the grant of holiday pay is identically worded with the rule exempting “field personnel” from the grant of SIL pay. To be clear, the phrase “employees engaged on task or contract basis” found in the IRR on both SIL pay and holiday pay should be read together with the exemption of “field personnel.”

⦁ In short, in determining whether workers engaged on “pakyaw” or “task basis” is entitled to holiday and SIL pay, the presence (or absence) of employer supervision as regards the worker’s time and performance is the key: if the worker is simply engaged on pakyaw or task basis, then the general rule is that he is entitled to a holiday pay and SIL pay unless exempted from the exceptions specifically provided under Article 94 (holiday pay) and Article 95 (SIL pay) of the Labor Code. However, if the worker engaged on pakyaw or task basis also falls within the meaning of “field personnel” under the law, then he is not entitled to these monetary benefits.

⦁ [The employee] does not fall under the classification of “field personnel.”

⦁ Based on the definition of field personnel under Article 82, we agree with the CA that [the employee] does not fall under the definition of “field personnel.” The CA’s finding in this regard is supported by the established facts of this case: first, [the employee] regularly performed his duties at [the employer’] principal place of business; second, his actual hours of work could be determined with reasonable certainty; and, third, [the employer] supervised his time and performance of duties. Since [the employer] cannot be considered a “field personnel,” then he is not exempted from the grant of holiday, SIL pay even as he was engaged on “pakyaw” or task basis.

⦁ Not being a “field personnel,” we find the CA to be legally correct when it reversed the NLRC’s ruling dismissing [the employee’s] complaint for holiday and SIL pay for having been rendered with grave abuse of discretion.

Related: Workers Paid by Results: Piece-rate, Pakyao, Takay, Task Basis

3) Seasonal workers

They are not entitled to holiday pay for regular holidays during off-season. (Ibid.)

Related: Seasonal employment contract

4) Workers without regular workdays

They are entitled to holiday pay. Workers without regular holidays include stevedores. (Ibid.)

5. The Benefit

a. Computation

See: Computation of Holiday Pay

6. Rules on absences

NOTICE: Due to the confusion on the rules on absences, this section is a restatement of the rules for easier understanding. Thus, the focus is on whether employees are paid (instead of absence) on the workday immediately preceding a regular holiday. (See DOLE Handbook; Rule IV, Book III, Omnibus Rules Implementing the Labor Code)

If employees are paid, this means:

1) That they were present or worked on that day; or

2) That they were absent but used a leave credit.

NB: If employees are not paid, this means that they were absent on that day.

Workday immediately preceding a regular holiday – refers to a regular or scheduled workday that immediately precedes a given regular holiday. For example, June 11 (assuming there is work on that day) is the workday immediately preceding the regular holiday of June 12 – Independence Day.

However, if the day immediately preceding the regular holiday is a rest day – whether for the entire establishment or for certain employees only, then that is not to be considered or counted. The workday immediately preceding the regular holiday would be the day before the said rest day. In our earlier example, if June 11 happens to be a rest day, then the workday immediately preceding the regular holiday would be June 10. The same rules apply: if a regular holiday falls on a Monday and the establishment observes no work on weekends, the workday immediately preceding the regular holiday would be the Friday (before the regular holiday on Monday).

To continue, if on the said Friday it so happens that it is the scheduled rest day of certain employees for some reason, then the workday immediately preceding the regular holiday would be the Thursday (before the regular holiday on Monday).

a. Single regular holiday

The following are the rules on single regular holidays – e.g. Labor Day, Independence Day, etc.

1) Paid on workday before regular holiday

If employees are paid the workday immediately preceding a regular holiday, then they are entitled to holiday pay on the regular holiday – even if they do not render work on that day.

2) Not paid on workday before regular holiday

If employees are not paid the workday immediately preceding a regular holiday, then they are not entitled to holiday pay on the regular holiday.

However, in the above situation, if they render work on the regular holiday, then they will be entitled to double pay constituting: daily wage + holiday pay.

b. Successive regular holidays

Successive regular holidays – refer to regular holidays which are scheduled one after the other in a series – e.g. Maundy Thursday and Good Friday.

1) Paid on workday immediately preceding successive regular holidays

If employees are paid the workday immediately preceding successive regular holidays, then they are entitled to holiday pay on the regular holidays – even if they do not render work on those days.

Example: During holy week, if employees are paid on Wednesday (assuming this is the workday immediately preceding the regular holidays), then they are entitled to holiday pay on Holy Thursday and Good Friday – even if they do not render work.

2) Not paid on workday immediately preceding successive regular holidays

If employees are not paid the workday immediately preceding successive regular holidays, then they are not entitled to holiday pay on the regular holidays.

Example: During holy week, if employees are not paid on Wednesday (assuming this is the workday immediately preceding the regular holidays), then they are not entitled to holiday pay on Holy Thursday and Good Friday.

Exceptions:

1) If they render work on the first regular holiday – i.e. Holy Thursday, then they are entitled to double pay (daily wage + holiday pay), plus they are entitled to holiday pay for Good Friday – even if they do not render work on that day.

2) If they render work on the successive regular holidays – i.e. Holy Thursday and Good Friday, then they are entitled to double pay (daily wage + holiday pay) for each day.

In the above two exceptions, it follows the general rule that: employees are entitled to double pay (daily wage + holiday pay) if they work on a regular holiday, plus the rule on absences.

7. Work crossing a regular holiday

For any work starting on a regular workday (e.g. April 30 at 11:00 pm; 1-hour) and crossing on a regular holiday (May 1 – Labor Day, from 12:01 am on a holiday; 7 hours), full holiday pay is due regardless of how many hours of work is rendered on that day.

To be clear, holiday pay is due by the mere occurrence of the regular holiday. Meaning, so long as there is a regular holiday, the 100% holiday pay is due. There are no conditions attached as to whether how many hours of work is necessary should the employee be required to work on that day.

Further, it is incorrect for some employers to think that no holiday pay is due in this situation because work started a day before the regular holiday. Remember, holiday pay is mandatory for covered employees. (Asian Transmission Corporation v. CA [2004], supra.). As such, there has to be an express provision of law that would deny any employee from the entitlement of holiday pay (e.g. being exempted). For example, there is the rule on absences. However, there is no such rule for work crossing-over a holiday. That being the case, holiday pay is due.

8. Work suspension or temporary/periodic shutdown

‘In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within the period shall be compensated in accordance with the Rules Implementing the Labor Code, as amended.’ (DOLE-BWC Handbook, p. 17)

What is referred to herein is the temporary work suspension (TWS), wherein an employer may temporarily suspend work on the establishment for a legitimate business reason and the work suspension should not exceed six (6) months.

9. Burden of proof: on employer

In claims for payment of salary differential, service incentive leave, holiday pay and 13th month pay, the burden rests on the employer to prove payment. (Minsola v. New City Builders, Inc., G.R. No. 207613, January 31, 2018, Per Reyes, Jr., J.)

This stems from the fact that all pertinent personnel files, payrolls, records, remittances and other similar documents – which will show that the differentials, service incentive leave and other claims of workers have been paid – are not in the possession of the worker but are in the custody and control of the employer. (Minsola v. New City Builders, Inc. [2018], supra.)

Minsola v. New City Builders, Inc. G.R. No. 207613, January 13, 2018, Per Reyes, Jr., J.:

⦁ [The complainant-employee] is entitled to a holiday pay of Php 5,340.00 for two unworked legal holidays in December 2008, 11 unworked legal holidays in 2009 and one legal holiday in January 2010, as New City failed to present the payrolls that would show that Minsola’s salary was inclusive of holiday pay.

As shown in the above case, it is fatal on the part of the employer if it fails to show proof of payment of the holiday pay as the burden of proof rests on the employer. The employee simply needs to allege that he/she is no paid. Once the same is made, it becomes the responsibility of the employer to prove the contrary. Otherwise, the employer may be required to holiday pay to the employee (even if, in fact, holiday pay was already paid due to this technicality).

11. Favorable employee stipulations

The above discussion may be superseded by any stipulation favorable to the employee via an employment contract, company policies, collective bargaining agreement, or analogous thereto.

12. When in doubt, interpretation favors labor

Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. (R.A. 386, Civil Code)
ART. 4. Construction in Favor of Labor. – All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. (P.D. 442, Labor Code)

Article 4 of the Labor Code provides that all doubts in the implementation and interpretation of its provisions, including its implementing rules and regulations, shall be resolved in favor of labor. For the working man’s welfare should be the primordial and paramount consideration. (Asian Transmission Corporation v. CA [2004], supra.)

Related

Holiday pay

Computation of holiday pay

FAQ: Holiday pay

Cases on: Holiday pay

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