Name: Barry Raza Week no. : III.D.1 Topic: Topic: Coverage; exclusions o !oli"ay pay#$remium pay Ti%le: Insular Bank v. Inciong& '.R. No. ()*+,1*& -c%oer +/& 10, Doc%rine: it Doc%rine: it is clear that monthly paid employees are not excluded from the benefits of holiday pay. xxx “ However, the implementing rules on holiday pay promulgated by the then Secretary of Labor excludes monthly paid employees from the said benefits by inserting, under Rule I, !oo" Ill of the implementing rules, Section #, which provides that$ %employees who are uniformly paid by the month, irrespective of the number of wor"ing days therein, with a salary of not less than the statutory or established minimum wage shall be presumed to be paid for all days in the month whether wor"ed or not. % xxx In view of the foregoing, Section #, Rule I, !oo" !oo" III of the Rules to implement the Labor &ode and 'olicy instruction (o. ) issued by the then Secretary of Labor must be declared null and void. *ccordingly, *ccordingly, public respondent +eputy inister of Labor *mado -. Inciong had no basis at all to deny the members of petitioner union their regular holiday pay as directed by the Labor &ode.
2ac%s: n 2ac%s: n *ugust #/, 0)1/, Labor *rbiter Ricarte 2. Soriano rendered a decision in the above3entitled case, granting granting petitione petitioner4s r4s complaint complaint for payment payment of holiday holiday pay. pay. 'ertinent 'ertinent portions portions of the decision decision read$ têñ.£îhqw⣠xxx xxx xxx 2he records disclosed that employees of respondent ban" were not paid their wages on unwor"ed regular holidays as mandated by the &ode, particularly *rticle #56, to wit$ têñ. £îhqw⣠*rt. #56. Right Right to holiday pay. pay. 7a8 9very wor"er shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than 05 wor"ers. 7b8 2he term %holiday% as used in this chapter, shall include$ (ew :ear4s +ay, aundy 2hursday, -ood ;riday, the ninth of *pril the first of ay, the twelfth of
wor"ing days in a year 7which normally has =>/ calendar days8, excluding the /# Sundays and the 05 regular holidays. 2he use of #/0 as a factor 7=>/ calendar days less /# Saturdays, /# Sundays, and 05 regular holidays8 gives rise li"ewise to the same presumption that the unwor"ed Saturdays, Sundays and regular holidays are unpaid. 2his being the case, it is not amiss to state with certainty that the instant claim for wages on regular unwor"ed holidays is found to be tenable and meritorious. ?H9R9;R9, @udgment is hereby rendered$ 7a8 xxx xxxx xxx 7b8 rdering respondent to pay wages to all its employees for all regular h7olidays since (ovember 0, 0)1A 7pp. )13)), rec., underscoring supplied8. Respondent ban" did not appeal from the said decision. Instead, it complied with the order of *rbiter Ricarte 2. Soriano by paying their holiday pay up to and including
. n +ecember 0>, 0)1/, 'residential +ecree (o. 6/5 was promulgated amending, among others, the provisions of the Labor &ode on the right to holiday pay to read as follows$ *rt. )A. Right to holiday pay. B 7a8 9very wor"er shall be paid his regular daily wages during regular holidays, except in retail and service establishments regularly employing less than ten 7058 wor"ers. *ccordingly, L*29R on by authority of *rticle / of the same &ode, the +epartment of Labor 7now inistry of Labor8 promulgated the rules and regulations for the implementation of holidays with pay. Sec. #.Status of employees paid by the month. B 9mployees who are uniformly paid by the month, irrespective of the number of wor"ing days therein, with a salary of not less than the statutory or established minimum wage shall be presumed to be paid for all days in the month whether wor"ed or not. SubseCuently, 'olicy Instruction (o. ) was issued by the then Secretary of Labor 7now inister8 interpreting the above3Cuoted rule, S2*2I(- 2H*2$ “2he ten 7058 paid legal holidays law, to start with, is intended to benefit principally daily employees. In the case of monthly, only those whose monthly salary did not yet include payment for the ten 7058 paid legal holidays are entitled to the benefit.D 2HIS policy has been fully clarified to eliminate controversies on the entitlement of monthly paid employees, 2he new determining rule is this$ If the monthly paid employee is receiving not less than '#A5, the maximum monthly minimum wage, and his monthly pay is uniform from
I3345: whether or not Section #, Rule I, !oo" III of the implementing rules and 'olicy Instruction (o. ) issued by the then Secretary of Labor are null and void since in the guise of clarifying the Labor &ode4s provisions on holiday pay, they in effect amended them by enlarging the scope of their exclusion R4(IN': 653. ?9 agree with the petitioner4s contention that Section #, Rule I, !oo" III of the implementing rules and 'olicy Instruction (o. ) issued by the then Secretary of Labor are null and void since in the guise of clarifying the Labor &ode4s provisions on holiday pay, they in effect amended them by enlarging the scope of their exclusion. *rticle )A of the Labor &ode, as amended by '.+. 6/5, provides$ *rt. )A. Right to holiday pay. B 7a8 9very wor"er shall be paid his regular daily wage during regular holidays, except in retail and service establishments regularly employing less than ten 7058 wor"ers. ... 2he coverage and scope of exclusion of the Labor &ode4s holiday pay provisions is spelled out under *rticle 6# thereof which reads$ têñ.£îhqw⣠*rt. 6#. &overage. B 2he provision of this 2itle shall apply to employees in all establishments and underta"ings, whether for profit or not, but not to goernment employees! managerial employees! field personnel members of the family of the employer who are dependent on him for support domestic helpers! persons in the personal serice of another! and workers who are paid by results as determined by the "ecretary of #abor in appropriate regulations. 2rom %7e aove)ci%e" provisions& i% is clear %7a% mon%7ly pai" employees are no% exclu"e" rom %7e enei%s o 7oli"ay pay. However, the implementing rules on holiday pay promulgated by the then Secretary of Labor excludes monthly paid employees from the said benefits by inserting, under Rule I, !oo" Ill of the implementing rules, Section #, which provides that$ %employees who are uniformly paid by the month, irrespective of the number of wor"ing days therein, with a salary of not less than the statutory or established minimum wage shall be presumed to be paid for all days in the month whether wor"ed or not. % 'ublic respondent insists that %728he rules implementing '. +. 6/5 and 'olicy Instruction (o. ) were issued to clarify the policy in the implementation of the ten 7058 paid legal holidays. *s interpreted, 4unwor"ed4 legal holidays are deemed paid insofar as monthly paid employees are concerned if 7a8 they are receiving not less than the statutory minimum wage, 7b8 their monthly pay is uniform from
