HOLIDAY PAY FOR PART-TIME WORKER?

This article was originally published on June 1, 2022 and has been updated to reflect recent legal developments.

The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

AT A GLANCE:

Technological progress, improved methods of production and division of labor are among the reasons which led to new developments in the distribution of working hours in a day, in a week or in a year. The new trends in the pattern of working time have been reflected in the scheduling and staggering of working time. In the Philippines, the most common type of these schemes is part-time work. (DOLE Explanatory Bulletin on Part-Time Employment)

The flexible arrangements for the present day situation raise questions on the applicability of Labor Code provisions particularly on conditions of employment and security of tenure. This is so since hours of work are among the main parameters for entitlement to statutory benefits and any innovation on working time arrangement needs close assessment of the relativity and adaptability of the laws, rules and regulation.

In the DOLE Explanatory Bulletin on Part-Time Employment, part-time work is defined by the International Labor Organization as “a single, regular or voluntary form of employment with hours of work substantially shorter than those considered as normal in the establishment.” This definition excludes certain forms of employment which, although referred to as part-time work, are in particular, irregular, temporary or intermittent employment, or cases where hours of work have been temporarily reduced for economic, technical or structural reasons.

Part-time work may take different forms depending on the agreed hours of work in a day, the days of work in a week or other reference periods.

Article 83 of the Labor Code, as amended, provides that the normal hours of work of any employee shall not exceed eight (8) hours a day. The Explanatory Bulletin further provides that, the benefits accorded by the Labor Code and related issuances are generally based on the normal working hours of eight in a day. Applying the principle of fairness and equity, therefore, for any reduction of hours of work substantially less than the normal, the employer may proportionately decrease the daily wage and wage-related benefits granted by law. This is in accordance with the principle of “a fair day’s wage for a fair day’s labor.” In other words, the employer is not obliged to pay an employee working for less than eight hours a day, the wages due for eight hours work, unless there exists a company policy or individual or collective agreement stipulating a normal day’s work to consist of less than eight hours.

The holiday pay of a part-time worker, however, should be determined on a case-to-case basis, whichever is highest in any given case, as follows: regular wage per day; basic wage on the working day preceding the regular holiday if the employee is present or on leave with pay on the last working day immediately prior to the regular working holiday, the average of his basic wages for the last seven working days for employees who are paid by results; or the basic wage on the particular holiday, if worked.

On special days, the principle of “no work, no pay” may be applied. If the said days are worked, however, the mandated premium pay of at least 30% is due the part-time worker, as in the case of rest day work.

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding legal services, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/ 09175772207/ 09778050020.

0 Shares