How is payroll calculated if work is suspended due to a typhoon?
Given the current typhoons that have plagued our country, one question that comes to mind is how one’s salary is affected if work is called-off or suspended due to a Presidential Proclamation because of these typhoons (or other calamities).
In these cases, a ‘no work, no pay’ policy will apply for daily-wage employees. If an employee does work even when work is officially suspended, the normal rule is that 130% of the employee’s basic pay will be issued to the employee for the # of hours worked.
But to be sure, it is best to still clarify this rule each time with DOLE as there have been times wherein the employer was only obliged to pay the regular wage to the employees (100% instead of 130%). One example was when work was suspended on November 7 and 8, 2013 due to the Yolanda typhoon. In this instance, DOLE released a memo stating that employees who worked during these dates will be given only their regular salary.
The memo however did state the following:
“The employers shall ensure the safety of their employees by providing free transportation, food, personal protective equipment and first-aid medicines, as may be necessary.
To alleviate the plight of employees in times of crisis, the employers may provide such extra incentives or benefits to employees who reported for work.”
You can view the labor advisory here: Labor Advisory No_ 10-13-1
If work was suspended in the middle of the day, the employer is only obliged to pay for the hours that were worked by the daily-wage employees. But it is possible for companies to have a policy wherein pay is not deducted for cases wherein work is suspended due to typhoon or strong storm signals. If the employees are already enjoying this benefit from the company, it cannot be withdrawn.
Can a company call for make-up work due to these suspensions?
Normally, employees are not requested to make up for the remaining unworked hours due to the suspension because such is due to emergency situations and not the fault of the employees. But if the company does request for make-up work and the employee is unable to comply, the employee may use his/her leave credits.