2024 Labor Law, Q4

The Philippines celebrates “Ninoy Aquino Day” every August 21 of the year as a special non-working holiday. Tyson Plastic Company (TPC) scheduled its machine shutdown on August 21, 2024 and informed the workers that the factory will be closed for maintenance. Later, the President of the Philippines issued Proclamation No. 665 moving the observance of “Ninoy Aquino Day” from August 21, 2024, Wednesday, to August 23, 2024, Friday, to promote domestic tourism in the country. The TPC announced that the machine shutdown will push through as scheduled and required the workers to report on August 23, 2024. Winslet is paid PHP 700.00 daily salary as a machine operator. Winslet reported for work on August 23, 2024 and claimed holiday premium pay. The TPC denied the claim and argued that Winslet already enjoyed the holiday on August 21, 2024 when the factory was closed. How much is Winslet entitled to for working on August 23, 2024? Explain.

Quick check

Under Article 93(c) of the Labor Code, what is the rate of pay for an employee who renders work on a special non-working holiday?

When a presidential proclamation moves the observance of a special holiday to a different date, which day attracts holiday premium pay?

Why was Tyson Plastic Company obligated to pay Winslet holiday premium pay for working on August 23, 2024?

What is the legal effect of a factory closing for routine machine maintenance on an ordinary working day?

How much total daily pay is a machine operator earning PHP 700.00 daily entitled to for working on a special non-working holiday?

Learn more about these topics

1. Special Holiday Pay
Under Article 93 of the Labor Code, work performed on a special non-working holiday entitles an employee to an additional compensation of thirty percent of their regular wage, amounting to a total of one hundred thirty percent for the day. If the employee does not work on a special non-working day, the general rule of 'no work, no pay' applies, unless there is a favorable company policy or collective bargaining agreement providing otherwise. Employers are legally obligated to compute and pay this thirty percent premium pay whenever an employee renders work on a designated special holiday.

2. Holiday Economics Proclamation
The executive branch possesses the legal authority under holiday economics legislation to adjust or move the observed date of national holidays by presidential proclamation to foster domestic tourism. When a presidential proclamation officially transfers the observance of a special non-working holiday from its traditional calendar date to another day, the newly declared date becomes the official statutory holiday for labor standards purposes. Consequently, statutory holiday premium pay requirements attach strictly to the newly designated proclamation date, while the original calendar date reverts to an ordinary working day unless independently declared a holiday.

3. Maintenance Shutdown Defense
An employer's unilateral decision to close its plant or factory for machine maintenance on an ordinary working day constitutes a voluntary business shutdown rather than a statutory holiday. The fact that workers were prevented from working on an ordinary day due to scheduled maintenance does not substitute for or satisfy the employer's statutory duty to pay premium pay on a newly declared special holiday. An employer cannot offset a voluntary company maintenance shutdown against a worker's entitlement to holiday premium pay for work actually rendered on the officially proclaimed special non-working day.

About these questions and answers
The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026