Work Suspension During Calamities

Work suspension due to natural disturbances, like typhoon Carina, is common in the Philippines. Should companies pay their employees?

 

 
 
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 LGUs (Local Government Unit) 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.
 
 

Key Points:

• 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. In cases when an employee reported for work, but management decided to send them home, employees who completed at least 6 hours will be paid in full and those under 6 hours will be paid 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 over and above what is prescribed by the law and best practices since the work stoppage is not the employees’ doing.
   
  e.g.  The administrative effect of man-days lost (tardiness and absence) is waived; Absent employees are still paid, and those who reported for work are given risk allowance

Should companies extend assistance to employees who are affected by a calamity?

 
Company assistance in times of disaster is based on the company’s rewards and benefits policy, or contingency plan or plain charity. There is no law that requires a company to do so.
 
 

Should the employer send home its employees in the middle of a typhoon because the Government suspends work?

 
Government announcements often create expectations among employees that their management will follow suit. However, when management declares a holiday, it can impact costs and productivity. Here are some best practices to consider in such situations:

1. Safety First:
   • Employees who can safely overcome road challenges should still report to the office.
   • Those facing safety risks can take emergency leave, vacation leave, or leave without pay.
2. Flexible Work Arrangements:
   • If work from home is feasible and effective, management can allow it on a case-by-case basis.
3. Recognition and Support:
   • For employees who come to work:
     • Extend risk allowances or provide a free lunch.
     • Consider merit-based rewards for their upcoming performance review.
4. Early Dismissal:
   • If management decides to send employees home earlier:
     • Consider rewarding EEs by paying them for the full day.
     • Prioritize employee safety.

What is your company’s practice? Feel free to share in the comments section.