Holiday pay for WFH employees
- Work from home employees are employees.
- The Labor Code requires payment of holiday pay to covered employees.
- If WFH employees are covered by holiday pay, they are entitled to the benefit.
Is a WFH employee entitled to holiday pay?
Yes, a work from home (WFH) employee is entitled to holiday pay.
1) Work from home employees are employees.
The status of employees did not change with the adoption of work from home (WFH) or any other telecommuting arrangement.
There is only a change of working environment. Instead of reporting and doing work at the office, the employer allowed employees to work elsewhere. This is usually at the home of the employees or any other place accessible to the employees, such as a shared office or workspace.
2) The Labor Code requires payment of holiday pay to covered employees.
Covered employees are entitled to holiday pay as provided for in the Labor Code.
Since there is no change in the status of WFH employees but only a change of working environment, they remain entitled to holiday pay so long as they are covered by the benefit.
3) If WFH employees are covered by holiday pay, they are entitled to the benefit.
Covered employees are those who are not exempt from holiday pay.
Otherwise stated, all employees are entitled to holiday pay except:
1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or controlled corporations with original charters or created under special laws;
2. Those of retail and service establishments regularly employing not more than five (5) workers;
3. Kasambahay and persons in the personal service of another;
4. Managerial employees, if they meet all of the following conditions:
4.1. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;
4.2. They customarily and regularly direct the work of two or more employees therein; and
4.3. They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees are given particular weight.
5. Officers or members of a managerial staff, if they perform the following duties and responsibilities:
5.1. Primarily perform work directly related to management policies of their employer;
5.2. Customarily and regularly exercise discretion and independent judgment
5.3. (a) Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and
5.4. Do not devote more than twenty percent (20%) of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described in paragraphs 5.1, 5.2, and 5.3 above;
6. Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.
Employees who are not excluded are referred to as “covered employees”.
For more info: Holiday Pay.
- Presidential Decree No. 442, a.k.a. Labor Code
- DOLE Omnibus Rules Implementing the Labor Code
- DOLE-BWC Handbook on Workers’ Statutory Monetary Benefits
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