‘Storm of lawsuits’ faces employers if 13th month pay not released

Amid rising prices of basic commodities, the country’s largest trade union yesterday reminded employers nationwide to give their workers the mandatory 13th month pay and other bonuses.

Trade Union Congress of the Philippines (TUCP) said employers can expect “a storm of lawsuits” from workers’ groups if they will not release the mandatory bonuses.

“It’s just over a week before Christmas and employers must give the 13th month pay and other bonuses,” TUCP spokesman Alex Aguilar said.

The Department of Labor and Employment (DOLE) also warned employers that failure to pay their workers the mandatory benefits would be a violation of the law.

Brenda Villafuerte, DOLE-Bureau of Working Condition (BWC) chief, said employers are required to give their workers 13th month pay before Christmas eve.

Other labor officials noted that workers are given two types of bonuses during the Christmas holidays, mandatory and non-mandatory benefits.

Mandatory bonuses are those provided under the collective bargaining agreements (CBAs) or those given as a regular or traditional company practice or policy.

Non-mandatory bonuses are not regularly given or those which become due depending on the earnings of the company.

If the mandatory benefits are not given this year, labor officials said, it will be tantamount to diminution of benefits on the part of the employee, which is illegal under the law.

Villafuerte said DOLE will intensify efforts to conduct inspections of companies to ensure that employers would be complying with standard labor regulations, including the 13th month pay.

Although DOLE has suspended the inspections during the holidays, the inspection ban does not cover the investigation of labor standards complaints, technical safety and other urgent complaints.