Are employers liable for non-payment of 13th month pay?

Photo from Unsplash | Kelly Sikkema

 

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Also, the matters contained in the following were written in accordance with the law, rules, and jurisprudence prevailing at the time of writing and posting, and do not include any future developments on the subject matter under discussion.

 

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AT A GLANCE

• Every employer shall make a report of their compliance with the 13th Month Pay through the DOLE Establishment Report Systems at reports.dole.gov.ph not later than January 15 of the following year. (13th Month Pay, 2022 Handbook of Workers’ Statutory Monetary Benefits)
• Non-payment of 13th month pay provided under P.D. No. 851 and its implementing rules and regulations shall be treated as money claims cases. (Section 9, Rules and Regulations Implementing P.D. No. 851)

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All employers are required to pay their rank-and-file employees thirteenth-month pay, regardless of the nature of their employment and irrespective of the methods by which their wages are paid, provided they worked for at least one (1) month during a calendar year. The thirteenth-month pay should be given to the employees not later than December 24 of every year. (13th Month Pay, 2022 Handbook of Workers’ Statutory Monetary Benefits)

Every covered employer shall make a report of his compliance with Presidential Decree No. 851 (P.D. No. 851) or the 13th Month Pay Law to the nearest regional labor office not later than January 15 of each year. This will ensure the employer’s compliance with the mandate to give employees their 13th month pay.

 

The law says:

“Employers shall make a report of their compliance through the DOLE Establishment Report System at reports.dole.gov.ph not later than January 15 of the following year.” (Report of Compliance, 13th Month Pay, 2022 Handbook of Workers’ Statutory Monetary Benefits)

 

Non-payment of 13th month pay shall be treated as money claims cases. Under the Rules and Regulations Implementing P.D. No. 851, an employer who do not comply with the payment of 13th month pay may be subjected to a money claims case cognizable under the National Labor Relations Commission.

 

The law says:

“Section 9. Adjudication of claims. – Non-payment of the thirteenth-month pay provided by the Decree and these rules shall be treated as money claims cases and shall be processed in accordance with the Rules Implementing the Labor Code of the Philippines and the Rules of the National Labor Relations Commission.” (Section 9, Rules and Regulations Implementing P.D. No. 851)

 

The law further says:

Section 10. Prohibition against reduction or elimination of benefits Nothing herein shall be construed to authorize any employer to eliminate, or diminish in any way, supplements, or other employee benefits or favorable practice being enjoyed by the employee at the time of promulgation of this issuance. (Section 10, Rules and Regulations Implementing P.D. No. 851)

 

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