Daily-paid and monthly-paid employees

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  • Daily-paid and monthly paid employees are both unpaid during un-worked days, including rest days and special non-working days.

Daily-paid employees

Daily-paid employees are those paid on days when they actually rendered work or service and on regular holidays where no work was done.

Monthly-paid employees

Monthly-paid employees are those who are paid for days worked and any regular holiday for the month.

Legislative history

To understand the confusion on why during special non-working days daily paid-employees were not paid but monthly-paid employees were paid, it requires understanding the history of the law and its regulations.

Previously, Section 2, Rule IV of Book III of the Omnibus Rules Implementing the Labor Code, issued by DOLE, allowed for the difference in treatment for monthly-paid employees who were paid even for un-worked days. However, this stipulation was declared void for going beyond what is provided by law. (Insular Bank of Asia and America Employees’ Union v. Inciong, Insular Bank of Asia and America, G.R. No. L-52415, 23 October 1984)

Moreover, in a case involving monthly-paid complainants seeking to be paid for un-worked days, including rest days and special non-working days, the Supreme Court denied the claim as the cited basis was void, i.e. Section 2, Rule IV of Book III, of the Omnibus Rules Implementing the Labor Code. “Even assuming that Section 2, Rule IV of Book III is valid, (the complainants’) claim will still fail. The basic rule in this jurisdiction is ‘no work, no pay.’ The right to be paid for un-worked days is generally limited to the (regular) legal holidays in a year. (The complainants’) claim is based on a mistaken notion that Section 2, Rule IV of Book III gave rise to a right to be paid for un-worked days beyond the (regular) legal holidays. In effect, (the complainants) demand that (the Company) should pay them on Sundays, the un-worked half of Saturdays and other days that they do not work at all. (The complainants’) line of reasoning is not only a violation of the ‘no work, no pay’ principle, it also gives rise to an insidious classification, a violation of the equal protection clause. Sustaining (the complainants’) argument will make monthly-paid employees a privileged class who are paid even if they do not work.” (Odango v. NLRC, Antique Electric Cooperative, Inc., G.R. No. 147420, 19 June 2004)

Summary

Both daily-paid employees and monthly-paid employees are not paid on un-worked days, including special non-working days.

Employment contract, company policies, CBA

The above discussion may be superseded by any stipulation favorable to the employee via an employment contract, company policies, collective bargaining agreement, or analogous thereto.

References

  • Jurisprudence or Supreme Court Decisions