The Department of Labor and Employment (DOLE) is now considering the possible deferment of the 13th-month pay of employees by some businesses and companies.
The labor department explained that a company may delay the release of the 13th-month pay if it is proven to be distressed or has not yet been able to recover from the impact of the COVID-19 pandemic.
It pointed out that the postponement of pay would be better than the non-payment of the mandatory pay benefits to employees.
“Pag-usapan na lang nila. Medyo mahirap ngayon ang panahon. ‘Di kami kumikita. Baka naman pwedeng i-defer (They have to talk about it. The situation is difficult these days. We are not earning. Maybe it can be deferred). That might be a more acceptable formula to address the issue of payment of [the] 13th-month pay,” DOLE Sec. Silvestre Bello III suggested.
Distresses micro, small, and medium enterprises (MSMEs) can also be exempted from giving the said payment in accordance with the third section of Presidential Decree No. 851.
DOLE said it is thoroughly evaluating the qualifications of establishments to be considered distressed.
“We have to come up with an advisory to determine what is the meaning of a distressed company or distressed business establishment para ma-exempt sila sa payment (to exempt them from payment),” Bello explained.
Meanwhile, the DOLE is also eyeing the possible three-month extension on the requirements of companies to rehire employees whose contracts have been temporarily terminated for six months due to the pandemic.
Latest data show that 1.9 million workers were temporarily displaced or are waiting for employment after the suspension caused by the pandemic. – Report from Louisa Erispe
