Labor groups oppose extension of layoff period, exemption of 13th month pay

LABOR groups have expressed opposition to the Department of Labor and Employment’s (DOLE's) proposal to extend the temporary layoff period of employees and exempt certain businesses from paying 13th month pay to workers.

NACUSIP National President and National Tripartite Industrial Peace Council (NTIPC) member Roland de la Cruz together with representatives from national labor centers and labor federations manifested objections in an emergency online meeting of the NITP on October 13, 2020, presided by Labor and Employment Secretary Silvestre Bello III and attended by Trade and Industry Secretary Ramon Lopez and national tripartite leaders.

"The fear and apprehension of the workers in the extension of the temporary layoff period is that workers may lose their right to demand and receive separation benefits if the employer will continue to operate at a loss and incur severe financial losses and business reversals. Under existing jurisprudence, an employer who suffered severe financial loss and business reversal is exempted from paying separation pay to its employees," Dela Cruz, who is a Negrense, said.

In the said meeting, DOLE presented a draft department order wherein employers may be allowed to extend the temporary layoff period of its employees from the original maximum of six months, as provided for under Article 301 of the Labor Code, to another six months provided such is voluntarily entered into by the employee in the presence of the union or the DOLE personnel in unorganized establishments.

Anther agenda in the same meeting is a draft department order wherein micro, small and medium enterprises found distressed may be exempted from the payment of 13th month pay for year 2020.

“Coming from the labor federations founded by the very same person, the late labor leader Atty. Zoilo V. de la Cruz, Jr. who proposed and requested then President Ferdinand Marcos to sign into law PD (Presidential Decree) 851 or the 13th Month Pay law, we manifest our total and absolute objection to the proposed department order. The Filipino workers have suffered much. We cannot let them suffer further by depriving them of this much-anticipated benefit--the 13th month pay,” de la Cruz said.

The proposed DOLE issuances encountered strong opposition from workers representatives coming from national labor organizations such as UNI Global Union-Philippine Liaison Council, NAGKAISA Labor Coalition, National Trade Union Center, Bukluran ng Manggagawang Pilipino, National Confederation of Labor, Kilusan Mayo Uno and the Trade Union Congress of the Philippines, he added.

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