PHILIPPINE
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This web
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features the full text ofSUPPLEMENTARY
RULES IMPLEMENTING THE 13TH-MONTH PAY LAWPresidential
Decree No. 851
PRESIDENTIAL
DECREE
NO. 851 SUPPLEMENTARY
RULES AND REGULATIONSIMPLEMENTING
P.D. NO. 851
To insure uniformity
in the interpretation, application and enforcement of the provisions of
Presidential
Decree No. 851 and its implementing
regulations, the following clarifications are hereby made for the
information
and guidance of all concerned:chanroblesvirtuallawlibrary
1. Contractors
and Subcontractors, including Security and Watchman Agencies, are
exempt
for the year 1975 subject to the following conditions:chanroblesvirtuallawlibrary
(a) that the
contracts of such enterprises were entered into before December 16,
1975;
(b) that such
enterprises have complied with all labor standards laws during the year;
(c) that the
contract cannot really accomodate 13-month pay or its equivalent; and
(d) that the
contract does not provide for cost escalation clause.
This exemption
is without prejudice on the part of the workers to negotiate with their
employers or to seek payment thereof by filing appropriate complaints
with
the Regional Offices of the Department of Labor.
2. Private
school teachers, including faculty members of colleges and
universities,
are entitled to 1/12 of their annual basic pay regardless of the number
of months they teach or are paid within a year.
3. New
establishments
operating for less than one year are not covered except subsidiaries or
branches of foreign and domestic corporations.
4. Overtime
pay, earnings and other remunerations which are not part of the basic
salary
shall not be included in the computation of the 13th-month pay.
5. In view
of the lack of sufficient time for the dissemination of the provisions
of P.D.
No. 851 and its Rules
and the unavailability of adequate cash flow due to the long holiday
season,
compliance and reporting of compliance with this Decree are hereby
extended
up to March 31, 1976 except in private schools where compliance for
1975
may be made not later than 30 June 1976.
6. Nothing
herein shall sanction the withdrawal or diminution of any compensation,
benefits or any supplements being enjoyed by the employees on the
effective
date of this issuance.
Manila,
January 16, 1976 Back
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