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Is the computation of 13th month pay contingent on one’s employment status?

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The following post does not create a lawyer-client relationship between Alburo Alburo and Associates Law Offices (or any of its lawyers) and the reader. It is still best for you to engage the services of a lawyer or you may directly contact and consult Alburo Alburo and Associates Law Offices to address your specific legal concerns, if there is any.

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.


AT A GLANCE:

13th month pay shall also be given to rank-and-file employees who are paid on a piece-rate basis, fixed or guaranteed wage plus commission, those with multiple employers, those who resigned, were terminated from employment, or were on maternity leave and received salary differential. (Coverage, DOLE Labor Advisory No. 25, Series of 2023)


All employers are required to pay their rank-and-file employees 13th 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. (Coverage, Thirteenth Month Pay, 2023 Handbook on Workers’ Statutory Monetary Benefits)

The Department of Labor and Employment (DOLE) issued Labor Advisory No. 25, Series of 2023 (L.A. No. 25-2023) regarding the guidelines on the payment of thirteenth month pay.

L.A. No. 25-2023 states that:

“The 13th month pay shall be paid to rank-and-file employees in the private sector regardless of their position, designation, or employment status and irrespective of the method by which their wages are paid, provided that they have worked for at least one (1) month during the calendar year.

It shall also be given to rank-and-file employees who are paid on a piece-rate basis, fixed or guaranteed wage plus commission, those with multiple employers, those who resigned, were terminated from employment, or when on maternity leave and received salary differential.” (Coverage, L.A. No. 25-2023) 

The employment status of a person is defined and prescribed by law and not by what the parties say it should be. (Allan Regala v. Manila Hotel Corporation, G.R. No. 204684, October 5, 2020)

Jurisprudence says:

“The employment status of a person is defined and prescribed by law and not by what the parties say it should be. In this regard, Article 295 of the Labor Code provides for two types of regular employees, namely: (a) those who are engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer (first category); and (b) those who have rendered at least one year of service, whether continuous or broken, with respect to the activity in which they are employed (second category).” (Allan Regala v. Manila Hotel Corporation, G.R. No. 204684, October 5, 2020)

 

Read also: Time of Payment of 13th Month Pay

 

Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding taxation and taxpayer’s remedies, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

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