All ▸ Bar 2024 ▸ LABOR LAW AND SOCIAL LEGISLATIONS ▸ IV. LABOR STANDARDS ▸ B. Wages ▸ 1. Components and Exclusions ▸ f. Holiday Pay - Labor Code, Art. 94, Omnibus Rules Implementing the Labor Code, Book III, Rule IV, secs. 1-7

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Components and Exclusions: Holiday Pay

Alex works as a regular employee in a manufacturing company. He is entitled to receive holiday pay as mandated by the Labor Code, Article 94 and the Omnibus Rules Implementing the Labor Code, Book III, Rule IV, Sections 1-7.

Scenario:

During the holiday season, the company announces that it will be implementing a special policy regarding the computation of holiday pay. The policy states that employees who have rendered at least three months of continuous service are entitled to double their regular daily wage for the holidays. However, employees who have not completed three months of continuous service will not be entitled to holiday pay.

Based on the given scenario and the relevant provisions of the Labor Code and its implementing rules, discuss the following:

Is the company's special policy regarding the computation of holiday pay in compliance with the pertinent laws? Explain your answer.
Are there any exclusions or exceptions to the entitlement of holiday pay? If yes, provide examples and briefly discuss the basis for such exclusions or exceptions.

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