Work shutdown falling on a holiday

Dear PAO,

I work in a garment factory as a sales assistant. Our yearly inventory for two days was scheduled on Maundy Thursday and Good Friday, which are both regular holidays. I asked our management if we would still receive our holiday pay despite the shutdown, during which we were not required to work. However, the management replied that only the workers involved in the inventory would be paid their holiday pay and premium. Did the management violate the labor laws on such a policy?

Charlotte

Dear Charlotte,

Please be informed of Sections 7 and 10, Rule IV, Book Three of the Omnibus Rules Implementing the Labor Code, which state:

“SECTION 7. Temporary or periodic shutdown and temporary cessation of work. – (a) 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 this Rule.

(b) The regular holiday during the cessation of operation of an enterprise due to business reverses as authorized by the Secretary of Labor and Employment may not be paid by the employer.

“SECTION 10. Successive Regular Holidays. – Where there are two (2) successive regular holidays, like Holy Thursday and Good Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.”

As provided in the Omnibus Rules Implementing the Labor Code, in cases of temporary or periodic shutdown and temporary cessation of work of an establishment, such as when a yearly inventory is taken or when the repair or cleaning of machinery and equipment is undertaken, the regular holidays falling within the period shall still be compensated in accordance with the provisions of the Labor Code, particularly the rule on Holidays with Pay.

In your given situation, the temporary shutdown by your company to facilitate a yearly inventory was scheduled to fall on successive regular holidays. Hence, the employer may not refuse to pay the corresponding holiday pay to those affected by the shutdown who will not be able to come to work; otherwise, your employer will violate the provisions of the Labor Code on Holiday Pay. However, an employee may not be paid for both holidays if he or she is absent from work on the day immediately preceding the first holiday unless he or she works on the first holiday, in which case he or she is entitled to holiday pay on the second holiday.

We hope that we were able to answer your queries. This advice is based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated on.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to [email protected]