Understanding Holiday Pay in Temporary Shutdown Situations
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
Legal Insights on Holiday Pay
Sections 7 and 10, Rule IV, Book Three of the Omnibus Rules Implementing the Labor Code provide guidance on holiday pay in temporary shutdown situations:
- Temporary or periodic shutdown and temporary cessation of work: In cases of temporary shutdown for activities like yearly inventory, the regular holidays falling within the period should be compensated.
- Successive Regular Holidays: If there are two successive regular holidays, employees may not be paid for both if absent on the day before the first holiday unless they work on the first holiday.
Based on the Labor Code provisions, regular holidays during temporary shutdowns must be compensated. In your case, where the shutdown coincides with successive regular holidays, employees affected by the shutdown should receive their holiday pay. Failure to do so would violate the Labor Code regulations on Holiday Pay.
We hope this clarifies your concerns. Please note that our advice is based on the information provided. Different details may lead to different conclusions.
