Understanding Holiday Pay Policy During Temporary Shutdown
Dear Charlotte,
It is important to consider the labor laws regarding holiday pay during temporary shutdowns in establishments. Here is a breakdown of the relevant sections from the Omnibus Rules Implementing the Labor Code:
Section 7: Temporary Shutdown and Cessation of Work
- In cases of temporary shutdown for activities like yearly inventory, regular holidays falling within the period should be compensated.
- Regular holidays during business reverses authorized by the Secretary of Labor and Employment may not be paid by the employer.
Section 10: Successive Regular Holidays
- If there are two successive regular holidays, like Holy Thursday and Good Friday, an employee may not be paid for both if absent on the day before the first holiday.
- However, if the employee works on the first holiday, they are entitled to holiday pay on the second holiday.
Based on these rules, your employer should provide holiday pay to employees affected by the temporary shutdown during the yearly inventory, especially when it coincides with regular holidays. Failure to do so may constitute a violation of the Labor Code on Holiday Pay.
