Work Suspension and Business Continuity During Calamities in the Philippines

In the Philippines, natural calamities are frequent, making work suspension or business continuity essential decisions for every company.

In the Philippines, typhoons, floods, and other calamities regularly disrupt business operations. While public offices automatically follow government-declared suspensions, private companies must make their own judgment calls — balancing employee safety and business continuity in line with DOLE labor advisories, Occupational Safety and Health (OSH) Law, and Local Government Unit (LGU) announcements.

When faced with typhoons, torrential monsoon rains, volcanic eruptions, or earthquakes, it’s crucial for employers to prioritize employee safety. While government agencies can declare work suspensions for public employees, DOLE (Department of Labor and Employment) cannot do the same for the private sector.

Private companies follow their own rules based on OSH (Occupational Safety and Health) Law and in consideration with LGU proclamations. Work is assumed normal in the absence of a formal announcement. Employees who are absent for safety reasons are managed according to company policies.

Some companies have business continuity plans, like work from home, to prevent work stoppages during calamities. Beyond remote work, continuity planning includes clear protocols for communication, payroll cut-offs, and post-calamity recovery.

When HR and management teams integrate business continuity into their safety policies, decisions during typhoons or floods become faster and more consistent.

Key Points On Work Suspension:

• No Work, No Pay: Unless a more favorable policy exists, employees are not paid if they do not work. This is consistent with LA 01 s.2020 and LA 17 s.2022. Employees who completed at least 6 hours after being sent home are paid in full; those under 6 hours receive pay for actual work hours.
• Leave Credits: Employees can use service incentive leave (SIL) or vacation/emergency leave (EL/VL) credits to cover lost hours.
• Company Generosity: Some companies help beyond what the law prescribes since the stoppage is not the employees’ fault — e.g., waiving administrative impact of absences, paying employees despite suspension, or granting risk allowances.

Should companies extend assistance to employees affected by a calamity?

Assistance during disasters depends on the company’s rewards and benefits policy, contingency plan, or pure charity. There is no law that requires a company to do so, but compassionate policies reinforce loyalty and morale.

Should private companies suspend work when government offices announce a work suspension??

Government announcements often create expectations among employees that their management will follow suit. However, when management declares a suspension, it affects both cost and productivity. Here are some best practices:

1. Safety First: Employees who can travel safely should report to work, while those at risk may take emergency or vacation leave, or leave without pay.
2. Flexible Work Arrangements: If feasible, implement work-from-home or hybrid setups on a case-by-case basis.
3. Recognition and Support: For employees who report to work, consider offering risk allowances, free meals, or merit credits during performance reviews.
4. Early Dismissal: If management decides to send employees home early, prioritize safety and consider compensating them for a full day’s pay.

The Need for a Business Continuity Plan

In the Philippines, calamities are not a question of if but when. A solid Business Continuity Plan (BCP) ensures that essential operations, communications, and employee welfare continue despite interruptions. The goal is not just survival but sustained service and trust.

👉 Read more: Lessons from the Cebu Earthquake: The Case for a Business Continuity Plan

Frequently Asked Questions