Download - Statutory Monetary Benefits
STATUTORY MONETARY BENEFITSMINIMUM WAGE, HOLIDAY PAY, PREMIUM PAY, OVERTIME PAY, MATERNITY/PATERNITY/PARENTAL LEAVES, 13TH MONTH PAY, ETC.
©2015, Atty. Jericho B. del Puerto. All rights reserved. For permissions to use this material, send a request to this e-mail address: [email protected]
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Statutory monetary benefits are mandatory.
- ATTY. JERICHO B. DEL PUERTO
Business Lawyer & Legal ConsultantJDP Consulting Ltd. Co.
Business Law ProfessorSan Beda Graduate School of Business
Book Author, Legal Aspects of BusinessCentral Books Publishing
For more info:
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Disclaimer
All statements, opinions, or information provided herein are for information purposes only. They should not be taken as professional/legal advice
and/or opinion on any matter for any purpose.
All opinions expressed by the speaker are solely his own.
They do not represent that of the organizations and associations which he may have any connection, association, or affiliation.
What are statutory monetary benefits?
Statutory monetary benefits are those which the employee is entitled to receive from the employer and the government as required by law.
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Statutory monetary benefits may either be from…
THE EMPLOYER Minimum wage
Holiday pay
Premium pay
Overtime pay
Night shift pay
Service charge
Service incentive leave
Maternity/Paternity/Parental leave
VAWC leave
Special leave for women
13th month
Separation pay
Retirement pay
THE GOVERNMENT ECC benefits
Philhealth benefits
SSS benefits
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Are all establishments required to pay these statutory monetary
benefits?Non-agricultural establishments are required to pay them.
Retail and service establishments employing a certain number of employees are not required to pay them.
See next slide for the compliance guide.
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Compliance Guide:Statutory Monetary
BenefitsRetail & Service w/ up to 9
employeesNon-Agriculture
Minimum wage √ √
Holiday pay N/A √
Premium pay √ √
Overtime pay √ √
Night shift pay √ (except up to 5 employees) √
Service charge √ √
Service incentive leave N/A √
Maternity/Paternity/ Parental leave √ √
VAWC leave √ √
Special leave for women √ √
13th month pay √ √
Separation pay √ √
Retirement pay N/A √
Managers are not entitled.
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May a covered employer refuse to pay these?
No, the statutory monetary benefits are mandatory.
Failure to pay these statutory monetary benefits opens the employer to consequences, ranging from labor, administrative, to criminal liabilities.C
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Consequences for failing to pay the statutory monetary benefits:
LABOR CASE Labor complaint for
statutory monetary benefits
For minimum wage, the employer may be required to pay double the unpaid sum.
10% attorney’s fees on the monetary award
ADMIN CASE DOLE may initiate an
administrative case against an employer for non-compliance with labor laws
Administrative penalties and fines may be imposed against the employer for non-compliance.
CRIMINAL CASE Certain statutory
monetary benefits carry criminal liabilities for their non-compliance.
For minimum wage, the employer may be imprisoned despite payment of unpaid sum or indemnity.
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How do you avoid such liabilities?
Management should observe best legal practices to avoid such consequences and liabilities.
Best legal practices are best practices with legal compliance. For employment, they are sourced from labor laws, rules & regulations,
jurisprudence, and best practices.
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What are the best legal practices for statutory monetary benefits?
Regularly update on and follow labor laws for legal compliance, especially on minimum wage and new benefits
Follow social media sites of DOLE and the Government which regularly provides for statutory monetary computations, particularly on holiday pay, special holiday pay, overtime pay, etc.
Ensure that the requirements are followed whenever a benefit is availed – e.g. Solo Parental ID, SSS notice, Barangay Complaint, etc.
Harmonize employment contracts, company policies and practices, and Collective Bargaining Agreement, with statutory monetary benefits
Keep proofs of payment to serve as evidence in case of a labor complaint
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May an employer substitute statutory monetary benefits
with company benefits?
No, statutory monetary benefits being mandatory have to be paid to the employees who are entitled thereto as a matter of law.
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May an employer lessen or add to these statutory
monetary benefits?Following the rule on non-diminution, the employer may add and improve
on these statutory monetary benefits but it may not lessen them.
Improving these benefits inure to the benefit of the employees.
Conversely, lessening these benefits are prejudicial to the employees.
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Statutory Monetary BenefitsLET’S DISCUSS EACH ONE.
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Minimum Wage
The minimum wage rates are those prescribed by the Regional Tripartite Wages and Productivity Board for each and every region.
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STATUTORY MONETARY BENEFITS(MANAGERS NOT ENTITLED.)
HOLIDAY PAY 100% daily rate:
Unworked
200% daily rate: Worked / Unworked Double Holiday
300% daily rate: Double Holiday
COLA excluded
Entitled - LOA w/ pay immediately preceding working day, except if work made on 1st day of 2 successive holidays
PREMIUM PAY + 30% daily rate
1 day off / week
Religious grounds, employer still allowed to require work at least twice a month
COLA excluded
OVERTIME PAY + 25% hourly rate
Overtime work generally prohibited, unless covered by compulsory overtime work.
COLA excluded
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STATUTORY MONETARY BENEFITS(MANAGERS NOT ENTITLED.)
NIGHT SHIFT PAY 10% daily rate / hour
10:00 pm to 6:00 am following day work
COLA excluded
SERVICE CHARGE 85% covered non-
managerial employees, 15% covered employers
Paid twice a month
If abolished, 12 month average of each employee integrated in salary.
Pooled tips covered.
SERVICE INCENTIVE LEAVE
5-day leave w/ pay
Conditions: 1 year of service (continuous / broken)
Convertible
Cumulative if allowed by the employer
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STATUTORY MONETARY BENEFITS
MATERNITY LEAVE
100% daily salary rate for 60 days (normal) or 78 days (caesarean)
Conditions: SSS member w/ 3 mo. contributions, reasonable notice to employer and SSS, full payment advanced by employer w/n 30 days from filing, first four deliveries (or miscarriages)
PATERNITY LEAVE 7 calendar days
leave w/ full pay
Conditions: married male employee and cohabiting with legitimate wife, first four deliveries, reasonable notice to employer
Non-convertible
SOLO PARENTAL LEAVE
7 working days leave w/ full pay
For solo parents or individual w/ responsibility of parenthood
Conditions: 1 year service (continuous or broken), reasonable notice to employer, Solo Parent Identification Card
Non-convertible, Non-Cumulative
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STATUTORY MONETARY BENEFITS
VAWC LEAVE 10-day leave w/ full pay,
extendible via protection orders
VAWC: Violence against women and their children
Conditions: Certification of Pending Action/Case (either from Barangay Officers, Prosecutor, or Clerk of Court)
Non-convertible, Non-cumulative
SPECIAL LEAVE FOR WOMEN
2 mos. leave w/ full pay: gross monthly
Surgery for gynecological disorders (involving female reproductive organs)
Conditions: 6 mos. service, application w/ employer w/n reasonable time, underwent above surgery certified by competent physician
Non-convertible, Non-cumulative
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STATUTORY MONETARY BENEFITS
13TH MONTH PAY Only for Rank & File
Employees who worked at least 1 mo.
Proportional – Minimum of 1/12 of total basic salary earned by employee in 1 calendar year
Basic salary: all remunerations, excluding allowances and monetary benefits not integral
SEPARATION PAY Authorized Causes +
In lieu of reinstatement
For Nos. 1 to 3 authorized causes: 1 mo. pay or 1 mo. pay / year of service
For Nos. 4 to 6 authorized causes: 1 mo. pay or ½ pay / year of service
In both, whichever is higher
RETIREMENT PAY Retirement pay = Labor Code or
Higher (Daily Rate x 22.5 days x Years of Service); 6 months = 1 year
Retirement age: employment contract, CBA, or company policy; If none, optional at 60 yrs. old , mandatory at 65 yrs. old or 50 yrs. old for underground mining employees, and minimum 5 years of service
Included: Workers paid by results and part-time workers
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Statutory monetary benefits are owing to the employees.
- ATTY. JERICHO B. DEL PUERTO
For more information, contact:
JDP CONSULTING LTD. CO.Call: (+632) 479-5405, Fax: (+632) 479-5401Mobile: (+63) 917-622-0124E-mail: [email protected]: www.jdpconsulting.ph
You may also want to visit:
www.legalaspects.phBusiness Laws & Best Legal Practices
©2015, Atty. Jericho B. del Puerto. All rights reserved. For permissions to use this material, send a request to this e-mail address: [email protected]
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