● Holidays awards or decisions shall be final,

inappealable, and executory,"

○ Definition - the pertinent provision of the Collective
i. Retail Establishments, Rule Impl. RA 6727, Bargaining Agreement between petitioner
par. F and respondent corporation; and Article
F. "Retail Establishment" is one principally engaged in the sale of goods 2044 of the Civil Code which provides that
to end-users for personal or household use; "any stipulation that the arbitrators’ award
or decision shall be final, is valid, without
ii. Service Establishment, Rule Impl. RA prejudice to Articles 2038, 2039, and 2040."
6727, par. g - Respondent corporation further contends
G. "Service Establishment" is one principally engaged in the sale of service that the special civil action of certiorari
to individuals for their own or household use and is generally recognized does not lie because respondent arbitrator is
as such; not an "officer exercising judicial functions"
within the contemplation of Rule 65,
○ Coverage/Exclusions, Art. 94 (a); Rule IV, Sec. 1 Section 1, of the Rules of Court; that the
ART. 94. Right to holiday pay.— instant petition raises an error of judgment
(a) Every worker shall be paid his regular daily wage during regular on the part of respondent arbitrator and not
holidays, except in retail and service establishments regularly employing an error of jurisdiction
less than ten (10) workers; o Mantrade Development Corp. does not have any
legal obligation to grant its monthly salaried
Rule IV, Sec. 1 employees holiday pay, unless it is argued that
This rule shall apply to all employees except: the pertinent section of the Rules and Regulations
(a) Those of the government and any of the political subdivision, including implementing Sec. 94 of the Labor Code is not in
government-owned and controlled corporation; conformity with the law, and thus, without force
(b) Those of retail and service establishments regularly employing less and effect
than ten (10) workers; o mandamus does not lie to compel the performance
(c) Domestic helpers and persons in the personal service of another; of an act which law does not clearly enjoin as a
(d) Managerial employees as defined in Book Three of the Code; duty
(e) Field personnel and other employees whose time and performance is
unsupervised by the employer including those who are engaged on task or PROCEDURAL ISSUE:
contract basis, purely commission basis, or those who are paid a fixed 1. WON decision of the Voluntary Arbitrator is no longer
amount for performing work irrespective of the time consumed in the appealable
performance thereof. 2. WON petition for mandamus is the correct recourse
SUBSTANTIVE ISSUE:
1. WON the monthly salaried workers are excluded from those
CASE: Mantrade/FMMC Division Employees and Workers Union v. entitled to receive holiday pay (won IRR is valid)
Bacungan, 144 SCRA 510 (1986) HOLDING:

FACTS: 1. NO. It can still be reviewed by the court.

Petitioner Mantrade Union files a petition for certiorari and mandamus - A voluntary arbitrator by the nature of her
against the respondent Voluntary Arbitrator Bacungan and Mantrade functions acts in a quasi-judicial capacity.
Development Corporation. There is no reason why her decisions
involving interpretation of law should be
1. Bacungan ruled that, Mantrade Devt Corp. is not under legal beyond this Court’s review. Administrative
obligation to pay holiday pay (as provided for in Article 94 of officials are presumed to act in accordance
the Labor Code in the third official Department of Labor edition) with law and yet we do not hesitate to pass
to its monthly paid employees who are uniformly paid by the upon their work where a question of law is
month, irrespective of the number of working days therein, with involved or where a showing of abuse of
a salary of not less than the statutory or established minimum discretion in their official acts is properly
wage. raised in petitions for certiorari." (130
a. ART. 94. Right to holiday pay.— SCRA 392, 399, 400-401)
(a) Every worker shall be paid his regular daily wage Substantive issue:
during regular holidays, except in retail and service No. Monthly salaried workers are entitled to holiday pay.
establishments regularly employing less than ten (10) - The questioned Sec. 2, Rule IV, Book III of the Integrated Rules
workers; and the Secretary’s Policy Instruction No. 9 add another
(NOTE: under this article, hindi exempted si Mantrade excluded group, namely ‘employees who are uniformly paid by
from giving holiday pay) the month.’ While the additional exclusion is only in the form of
2. Mantrade Union: questions the validity of the Sec. 2, Rule IV, a presumption that all monthly paid employees have already
Book III of the Rules and Regulations Implementing the Labor been paid holiday pay, it constitutes a taking away or a
Code as amended on which Bacungan based his decision. deprivation which must be in the law if it is to be valid. An
a. SEC. 2. Status of employees paid by the month.— administrative interpretation which diminishes the benefits of
Employees who are uniformly paid by the month, labor more than what the statute delimits or withholds is
irrespective of the number of working days therein, obviously ultra vires." (138 SCRA 273, 282. See also CBTC
with a salary of not less than the statutory or Employees Union v. , Clave, January 7, 1986, 141 SCRA 9.)
established minimum wage shall be presumed to be IRR is null and void.
paid for all days in the month whether worked or not.
(NOTE: under this IRR, exempted na si Mantrade) Is mandamus the right remedy? YES.
3. Respondents raised procedural and substantive objections. They - Respondent corporation contends that mandamus does not lie to
contend that: compel the performance of an act which the law does not clearly
o The decision of the voluntary arbitrator is final, as enjoin as a duty. True it is also that mandamus is not proper to
provided by law enforce a contractual obligation, the remedy being an action for
- Article 263 of the Labor Code, which specific performance
provides in part that "voluntary arbitration
 - In the case at bar, however, in view of the above cited 3. The Supreme Court noted that based on the definition of field personnel
subsequent decisions of this Court clearly defining the under Article 82, we agree with the CA that Macasio does not fall under
legal duty to grant holiday pay to monthly salaried the definition of "field personnel." So is entitled to Holiday, 13th month
employees, mandamus is an appropriate equitable and SIL pay.
remedy
- Ruling: WHEREFORE, in light of these considerations, we hereby
PARTIALLY GRANT the petition insofar as the payment of 13th month
pay to respondent is concerned. In all other aspects, we AFFIRM the
CASE: David v. Macasio, 729 SCRA 67 (2014) decision dated November 22, 2010 and the resolution dated January 31,
RELEVANT FACTS 2011 of the Court of Appeals in CA-G.R. SP No. 116003.
· Macasio had worked for Ariel L. David in his Yiels Hog Dealer
business since January 6, 1995 as a butcher. ○ Regular Holidays/Special Holidays, EO No. 292, as
amended by RA No. 9492, RA No. 9849
· On January 2009 Macasio then filed a case against David before the EO No. 292
Labor Arbiter for non-payment of overtime pay, holiday pay and 13th
month pay. Section 26. Regular Holidays and Nationwide Special Days.

· Macasio alleges that David exercised control and supervision over 1. Unless otherwise modified by law, order or proclamation, the following
his work by citing that David: regular holidays and special days shall be observed in this country:
a. Set the work day, reporting time and hogs to be chopped
b. Controlled the manner which he performed the work (A) Regular Holidays
c. Paid his salary daily and approves his leaves ❏ New Year's Day - January 1
d. David owned the hogs delivered for chopping, as well as the work ❏ Maundy Thursday - Movable date
tools and implements; as well as renting the place of work and having 25 ❏ Good Friday - Movable date
employees. ❏ Araw ng Kagitingan (Bataan and Corregidor Day) - April 9
· David’s defenses: ❏ Labor Day - May 1
a. He only started his hog business in 2005 and only 10 employees ❏ Independence Day - June 12
b. Macasio was only hired on a “pakyaw” basis ❏ National Heroes Day - Last Sunday of August
· Macasio’s arguments: ❏ Bonifacio Day - November 30
a. Presented a Certificate of Employment ❏ Christmas Day - December 25
b. Claims payroll and time record could prove his daily employment ❏ Rizal Day - December 30
· On April 30, 2009 the LA dismissed Macasio’s claim for a lack of
evidence citing: (B) Nationwide Special Days
a. Macasio received the fixed amount of ₱700.00 for every work done, ❏ All Saints Day - November 1
regardless of the number of hours that he spent in completing the task and ❏ Last Day of the Year - December 31
of the volume or number of hogs that he had to chop per engagement;
(2) The terms "legal or regular holiday" and "special holiday", as used in
b. Macasio usually worked for only four hours, beginning from 10:00 laws, orders, rules and regulations or other issuances shall be referred to
p.m. up to 2:00 a.m. of the following day; and as "regular holiday" and "special day", respectively Amended by RA No.
9492
c. ₱700.00 fixed wage far exceeds the then prevailing daily minimum
wage of ₱382.00. The LA added that the nature of David’s business as hog SEC. 26. Regular Holidays and Nationwide Special Days. —
dealer supports this "pakyaw" or task basis arrangement.
· On May 26, 2010 the NLRC affirmed the LA”s ruling. (1) Unless otherwise modified by law, order or proclamation, the
following regular holidays and special days shall be observed in the
· On November 22, 2010 the CA partially granted Macasio’s ruling country:
and reversed the NLRC’s decision. The CA explained that as a task basis
employee, Macasio is excluded from the coverage of holiday, SIL and 13th a) Regular Holidays
month pay only if he is likewise a "field personnel." In Macasio’s case, the ❏ New Year’s Day - January 1
elements that characterize a "field personnel" are evidently lacking as he ❏ Maundy Thursday - Movable Date
had been working as a butcher at David’s "Yiels Hog Dealer" business in ❏ Good Friday - Movable Date
Sta. Mesa, Manila under David’s supervision and control, and for a fixed ❏ Eidul Fitr - Movable Date
working schedule. ❏ Araw ng Kagitingan (Bataan and Corregidor Day) - Monday
nearest April 9
Issues ❏ Labor Day - Monday nearest May 1
W/N Macasio is entitled to holiday, SIL and 13th month pay ❏ Independence Day - Monday nearest June 12
YES. - 1. The Supreme Court held that despite being employed on a ❏ National Heroes Day - Last Monday of August
pakyaw basis, this did not stop the existence of an employee-employer ❏ Bonifacio Day - Monday nearest November 30
relationship. Using the four-fold test, David willingly chose and selected ❏ Christmas Day -December 25
Macasio. David paid for Macasio’s wages. David set the work hours. ❏ Rizal Day - Monday nearest December 30
Finally, David controlled the manner of how Macasio did his work.
b) Nationwide Special Holidays
2. The Supreme Court held that under Section 1, Rule V of the IRR of the ❏ Ninoy Aquino Day - Monday nearest August 21
Labor Code and the Court’s ruling in Serrano v. Severino Santos Transit ❏ All Saints Day - November 1
that exemption from the payment of holiday pay applies only to “pakyaw” ❏ Last Day of the Year - December 31
workers who are field personnel. The reiterated that the payment of an
employee on task or pakyaw basis alone is insufficient to exclude one from c) In the event the holiday falls on a Wednesday, the holiday will be
the coverage of SIL and holiday pay. They are exempted from the coverage observed on the Monday of that week. If the holiday falls on a Sunday, the
of Title I (including the holiday and SIL pay) only if they qualify as "field holiday will be observed on the Monday that follows: Provided, That for
personnel." It also took note of the different of field personnel from movable holidays, the President shall issue a proclamation, at least six
workers paid on a project basis as defined in Art. 94 and 82 of the Labor months prior to the holiday concerned, the specific date that shall be
Code. declared as a non-working day:
 TAPEA’s contentions:
Provided, however, That Eidul Adha shall be celebrated as a regional ● their claim for holiday pay in arrears is based on the non-
holiday in the Autonomous Region in Muslim Mindanao inclusion of the same in their monthly pay as proved by the ff:
○ First, Trans-Asia's Employees' Manual requires as a
pre-condition for the payment of holiday pay that the
employee should have worked or was on authorized
RA 9849 leave with pay on the day immediately preceding the
legal holiday.
SEC. 26. Regular Holidays and Nationwide Special Days. – ■ TAPEA argues that "if the intention of
Trans-Asia was not to pay holiday pay in
(1) Unless otherwise modified by law, order, or proclamation, the addition to the employee's monthly pay,
following regular holidays and special days shall be observed in the then there would be no need to impose or
country: “ specify the pre-condition for the payment."
○ Second, their appointment papers do not contain any
(a) Regular Holidays stipulation on the inclusion of holiday pay in their
❏ New Year’s Day - January 1 monthly salary
❏ Maundy Thursday – Movable Date ■ TAPEA argues that the absence of such
❏ Good Friday – Movable Date stipulation is an indication that the
❏ Eidul Fitr – Movable Date mandated holiday pay is not incorporated in
❏ Eidul Adha – Movable Date the monthly salary
❏ Araw ng Kagitingan (Bataan and Corregidor Day) – Monday ○ Third, the CBA provision for the payment of an
nearest April 9 amount equivalent to 200% of the regular daily wage
❏ Labor Day – Monday nearest May 1 plus 60% premium pay to employees
❏ Independence Day – Monday nearest June 12 ■ TAPEA claimed that this very generous
❏ National Heroes Day – Last Monday of August provision was the remedy availed of by
❏ Bonifacio Day – Monday nearest November 30 Trans-Asia to allow its employees to recoup
❏ Christmas Day – December 25 the holiday pay in arrears and, as such, is a
❏ Rizal Day – Monday nearest December 30 tacit admission of the non-payment of the
same during the period prior to the current
“(b) Nationwide Special Holidays CBA.
❏ Ninoy Aquino Day – Monday nearest August 21 ○ Lastly, the current CBA provision that obligates
❏ All Saints Day – November 1 Trans-Asia to give holiday pay. Petitioners asserted
❏ Last Day of the Year – December 31 that this provision is an acknowledgment by Trans-
Asia of its failure to pay the same in the past since, if
“(c) In the event the holiday falls on a Wednesday, the holiday will be it was already giving holiday pay prior to the CBA,
observed on the Monday of the week. If the holiday falls on a Sunday, the there was no need to stipulate on the said obligation in
holiday will be observed on the Monday that follows: “Provided,That for the current CBA.
movable holidays, the President shall issue a specific date shall be declared ● for the claim for the payment of holiday pay for the duration of
as a non-working day.” the CBA, the accusation of unfair labor practice and the claim
for damages and attorney's fees, TAPEA asserted that Trans-
Asia is guilty of bad faith in negotiating and executing the
○ Holiday Pay, Art. 94 (b) current CBA since, after it recognized the right of the employees
The employer may require an employee to work on any holiday but such to receive holiday pay, Trans-Asia allegedly refused to honor the
employee shall be paid a compensation equivalent to twice his regular rate. CBA provision on the same.
i. Faculty in Private School, Rule IV, Sec. 8
(a) Trans-Asia refutes in seriatim:
● Re: the pre-condition for the payment of holiday pay stated in
the Employees' Manual and the absence of a stipulation on
holiday pay in the employees' appointment papers
ii. Divisor as Factor ○ Trans-Asia asserted that the above circumstances are
CASE: Trans-Asia Phil. Employees Association v. NLRC, 320 SCRA 347 not indicative of its non-payment of holiday pay since
(1999) it has always honored the labor law provisions on
holiday pay by incorporating the same in the payment
Trans-Asia Philippines Employees Association (TAPEA) is the duly- of the monthly salaries of its employees.
recognized collective bargaining agent of the monthly-paid rank-and-file ○ In support, Trans-Asia pointed out that it has long
employees of Trans-Asia (Phils.). They entered into a CBA with their been the standing practice of the company to use the
employer, which was to be effective from 1 April 1988 up to 31 March divisor of "286" days in computing for its employees'
1991. CBA provided for, among others, the ff: payment of holiday pay overtime pay and daily rate deductions for absences
with a stipulation that if an employee is permitted to work on a legal with the ff formula: *notes
holiday, the said employee will receive a salary equivalent to 200% of the ○ Moreover, the "286" days divisor already takes into
regular daily wage plus a 60% premium pay. account the 10 regular holidays in a year since it only
subtracts from the 365 calendar days the unworked
Despite the conclusion of the CBA, however, an issue was still left and unpaid 52 Sundays and 26 Saturdays (employees
unresolved. Issue was with regard to the claim of TAPEA for payment of are required to work half-day during Saturdays).
holiday pay covering the period from January of 1985 up to December of ■ if the ten (10) regular holidays were not
1987. The parties underwent preventive mediation meetings but were not included in the computation of their
able to arrive at an amicable settlement. Hence, TAPEA President filed a employees' monthly salary, the divisor
complaint before the LA for the payment of their holiday pay in arrears. which they would have used would only be
Later, they amended their complaint to include the payment of holiday pay 277 days which is arrived at by subtracting
for the duration of the recently concluded CBA (from 1988 to 1991), unfair 52 Sundays, 26 Saturdays and the 10 legal
labor practice, damages and attorney's fees. holidays from 365 calendar days.
○ Trans-Asia explained that the "286" days divisor is
based on Republic Act No. 6640, wherein the divisor
 of 262 days (composed of the 252 working days and the petitioners to holiday pay with a concomitant provision for the granting
the 10 legal holidays) is used in computing for the of an "allegedly" very generous holiday pay rate, would appear to be
monthly rate of workers who do not work and are not merely inferences and suppositions which, in the apropos words of the
considered paid on Saturdays and Sundays or rest labor arbiter, "paled in the face of the prevailing company practices and
days. According to Trans-Asia, if the additional 26 circumstances abovestated."
working Saturdays in a year is factored-in to the W/N the agreement of Trans-Asia in the CBA to give a generous 260%
divisor provided by Republic Act No. 6640, the holiday pay rate to employees who work on a holiday is conclusive proof
resulting divisor would be "286" days. that the monthly pay of petitioners does not include holiday pay

● Re: CBA provision on the allegedly generous holiday pay rate TAPEA cite as basis the case of Chartered Bank Employees Association
of 260% vs. Ople: Any remaining doubts which may arise from the conflicting or
○ Trans-Asia explained that this holiday pay rate was different divisors used in the computation of overtime pay and employees'
included in the CBA in order to comply with Section absences are resolved by the manner in which work actually rendered on
4, Rule IV, Book III of the Omnibus Rules holidays is paid. Thus, whenever monthly paid employees work on a
Implementing the Labor Code.**notes holiday, they are given an additional 100% base pay on top of a premium
● Re: the contention that Trans-Asia's acquiescence to the pay of 50%. If the employees' monthly pay already includes their salaries
inclusion of a holiday pay provision in the CBA is an admission for holidays, they should be paid only premium pay but not both base pay
of non-payment of the same in the past and premium pay.
○ Trans-Asia reiterated that it is simply a recognition of
the mandate of the Labor Code that employees are NO.
entitled to holiday pay. It clarified that the company's
firm belief in the payment of holiday pay to employees We are not convinced. The cited case cannot be relied upon by petitioners
led it to agree to the inclusion of the holiday pay since the facts obtaining in the Chartered Bank case are very different from
provision in the CBA. those in the present case. In the Chartered Bank case, the bank used
● Re: accusation of unfair labor practice because of Trans-Asia's different divisors in computing for its employees benefits and deductions.
act of allegedly bargaining in bad faith and refusal to give For computing overtime compensation, the bank used 251 days as its
holiday pay in accordance with the CBA divisor. On the other hand, for computing deductions due to absences, the
○ Trans-Asia explained that what petitioners would like bank used 365 days as divisor. Due to this confusing situation, the Court
the company to do is to give double holiday pay since, declared that there existed a doubt as to whether holiday pay is already
as previously stated, the company has already incorporated in the employees' monthly salary. Since doubts should be
included the same in its employees monthly salary resolved in favor of labor, the Court in the Chartered Bank case ruled in
and, yet, petitioners want it to pay a second set of favor of the employees and further stated that its conclusion is fortified by
holiday pay. the manner in which the employees are remunerated for work rendered on
holidays. In the present case, however, there is no confusion with regard
LA: dismissed complaint of TAPEA. The complainants' arguments and to the divisor used by Trans-Asia in computing for petitioners' benefits and
juxtapositions in claiming that they were denied payment of their holiday deductions. Trans-Asia consistently used a "286" days divisor for all its
pay paled in the face of the prevailing company practices and computations.
circumstances abovestated.
NLRC: affirmed LA Nevertheless, petitioners' cause is not entirely lost. The Court notes that
there is a need to adjust the divisor used by Trans-Asia to 287 days, instead
ISSUE AND RATIO DECIDENDI of only 286 days, in order to properly account for the entirety of regular
holidays and special days in a year as prescribed by Executive Order No.
Issue 203 in relation to Section 6 of the Rules Implementing Republic Act 6727.
Ratio
W/N the NLRC "blatantly and unashamedly disregarded" the numerous
evidence in support of TAPEA’s claim and relied merely on the sole W/N lower court was unfair when it ruled for Trans-Asia despite TAPEA
evidence presented by Trans-Asia, the "286" days divisor, in dismissing giving "overwhelming proof" of their claim against Trans-Asia, the least
their appeal, and, in so doing, is guilty of grave abuse of discretion. that the NLRC could have done was to declare that there existed an
NO, NLRC did not commit a mistake. ambiguity with regard to Trans-Asia's payment of holiday pay.
Correctly used 286 divisor.
NO. As previously stated, the decision of the labor arbiter and the
Trans-Asia's inclusion of holiday pay in petitioners' monthly salary is resolutions of the NLRC were based on substantial evidence and, as such,
clearly established by its consistent use of the divisor of "286" days in the no ambiguity or doubt exists which could be resolved in petitioners' favor.
computation of its employees' benefits and deductions.

The use by Trans-Asia of the "286" days divisor was never disputed by
petitioners. A simple application of mathematics would reveal that the 10 RULING
legal holidays in a year are already accounted for with the use of the said
divisor. As explained by Trans-Asia, if one is to deduct the unworked 52 WHEREFORE, premises considered, the Resolutions of the NLRC, dated
Sundays and 26 Saturdays (derived by dividing 52 Saturdays in half since 23 November 1993 and 13 September 1994, are hereby AFFIRMED with
petitioners are required to work half-day on Saturdays) from the 365 the MODIFICATION that Trans-Asia is hereby ordered to adjust its
calendar days in a year, the resulting divisor would be 286 days (should divisor to 287 days and pay the resulting holiday pay in arrears brought
actually be 287 days). Since the 10 legal holidays were never included in about by this adjustment starting from 30 June 1987, the date of effectivity
subtracting the unworked and unpaid days in a calendar year, the only of E.O. No. 203.
logical conclusion would be that the payment for holiday pay is already
incorporated into the said divisor. SEPARATE OPINIONS

When viewed against this very convincing piece of evidence, the NOTES
arguments put forward by petitioners to support their claim of non- *
payment of holiday pay, i.e., the pre-condition stated in the Employees' 52 x 44
Manual for entitlement to holiday pay, the absence of a stipulation in the ———— = 286 days
employees' appointment papers for the inclusion of holiday pay in their 8
monthly salary, the stipulation in the CBA recognizing the entitlement of
Where: 52 = number of weeks in a year SOLE: "commanded Wellington to pay its employees the "six
44 = number of work hours per week additional working days resulting from regular holidays falling on
8 = number of work hours per day Sundays in 1988, 1989 and 1990.”
● the divisor being used by the respondent (Wellington) does not
**Sec. 4. Compensation for holiday work. — Any employee who is reliably reflect the actual working days in a year
permitted or suffered to work on any regular holiday, not exceeding eight
(8) hours, shall be paid at least two hundred percent (200%) of his regular ISSUE: Whether or not a monthly-paid employee is entitled to an
daily wage. If the holiday falls on the scheduled rest day of the employee, additional pay aside from his usual holiday pay, whenever a regular
he shall be entitled to an additional premium pay of at least 30% of his holiday falls on a Sunday.
regular holiday rate of 200% based on his regular wage rate.
RULING:

NO
iii. Sunday, Art. 93 (a), 2nd Sentence; Rule III,
Sec. 2 ● Requirements for monthly-paid employees:
SECTION 9. Relation to agreements. — Nothing herein shall prevent the ○ the monthly minimum wage shall not be less than the
employer and his employees or their representatives in entering into any statutory minimum wage multiplied by 365 days
agreement with terms more favorable to the employees than those divided by 12 .
provided herein, or be used to diminish any benefit granted to the ○ Shall serve as compensation for all days in the month
employees under existing laws, agreements, and voluntary employer whether worked or not and irrespective of the number
practices. of working days therein.
● The monthly compensation is evidently intended precisely to
a. Coverage Art. 82, 91; Rule III, Sec. 1 avoid computations and adjustments resulting from the
b. Determination; compulsory Work; Compensation, Arts. 91, 92 contingencies just mentioned which are routinely made in the
c. Premium Pay, Art 93 (a)(b)(c) case of workers paid on daily basis.
● In the case at bar, Wellington complied with the minimum norm
laid down by law
d. CBA on higher Premiuim Pay Art 93 (d) ○ salary of not less than the statutory or established
Article 93. Compensation for rest day, Sunday or holiday work. minimum wage and not less than the statutory
Where an employee is made or permitted to work on his scheduled rest minimum wage multiplied by 365 days divided by 12
day, he shall be paid an additional compensation of at least thirty percent ● The monthly salary fixed actually covers payment for 314 days
(30%) of his regular wage. An employee shall be entitled to such additional of the year, including regular and special holidays, as well as
compensation for work performed on Sunday only when it is his days when no work is done by reason of fortuitous cause, or
established rest day. causes not attributable to the employees.
When the nature of the work of the employee is such that he has no regular ● There is no provision of law requiring any employer to make
workdays and no regular rest days can be scheduled, he shall be paid an adjustments in the monthly salary to take account of legal
additional compensation of at least thirty percent (30%) of his regular holidays falling on Sundays in a given year, or otherwise to
wage for work performed on Sundays and holidays. reckon a year at more than 365 days.
Work performed on any special holiday shall be paid an additional ○ The respondents' theory would make each of the years
compensation of at least thirty percent (30%) of the regular wage of the in question (1988, 1989, 1990), a year of 368 days.
employee. Where such holiday work falls on the employee’s scheduled ● Respondents have attempted to legislate, or interpret legal
rest day, he shall be entitled to an additional compensation of at least fifty provisions in such a manner as to create obligations where none
per cent (50%) of his regular wage. are intended. They have acted without authority, or at the very
Where the collective bargaining agreement or other applicable least, with grave abuse of their discretion
employment contract stipulates the payment of a higher premium pay
than that prescribed under this Article, the employer shall pay such
higher rate. i.
Muslim Holiday, Art. 169-172, PD 1083;
RA 9492; RA 9849
CASE: Wellington Investment Inc. v. Trajano, 245 SCRA 561 (1995) PD 1083: Code of Muslim Personal Laws of the Philippines
FACTS:
● A routine inspection was conducted by a Labor Enforcement MUSLIM HOLIDAYS
Officer on August 6, 1991 of the Wellington Flour Mills. Article 169. Official Muslim holidays. The following are hereby
● The officer drew up a report finding "(n)on-payment of regular recognized as legal Muslim holidays:
holidays falling on a Sunday for monthly-paid employees. (a) 'Amun Jadid (New Year), which falls on the first day of the first
● The monthly salary was fixed by Wellington to provide for lunar month of Muharram;
compensation for every working day of the year including the (b) Maulid-un-Nabi (Birthday of the Prophet Muhammad), which
holidays specified by law — and excluding only Sundays. falls on the twelfth day of the third lunar month of Rabi-ul-
Wellington used what it calls the "314 factor;" that is to say, it Awwal;
simply deducted 51 Sundays from the 365 days normally (c) Lailatul Isra Wal Mi'raj (Nocturnal Journey and Ascension of
comprising a year and used the difference, 314, as basis for the Prophet Muhammad), which falls on the twenty-seventh day
determining the monthly salary of the seventh lunar month of Rajab;
(d) 'Id-ul-Fitr (Hari Raya Pausa), which falls on the first day of the
Wellington: the monthly salary of the company's monthly-salaried tenth lunar month of Shawwal, commemorating the end of the
employees already includes holiday pay for all regular holidays . . . (and fasting season; and
hence) there is no legal basis for the finding of alleged non-payment of (e) 'Id-ul-Adha (Hari Raja Haji), which falls on the tenth day of the
regular holidays falling on a Sunday.” twelfth lunar month of Dhu 1-Hijja.

Regional Director: directed Wellington to pay its employees Article 170. Provinces and cities where officially observed.
compensation corresponding to four (4) extra working days (1) Muslim holidays shall be officially observed in the Provinces of
● when a regular holiday falls on a Sunday, an extra or additional Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North
working day is created and the employer has the obligation to Cotabato, Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del
pay the employees Norte and Zamboanga del Sur, and in the Cities of Cotabato,
 Iligan, Marawi, Pagadian, and Zamboanga and in such other (1) Unless otherwise modified by law, order, or proclamation, the
Muslim provinces and cities as may hereafter be created. following regular holidays and special days shall be observed in the
(2) Upon proclamation by the President of the Philippines, Muslim country:
holidays may also be officially observed in other provinces and
cities. "(a) Regular Holidays

Article 171. Dates of observance. The dates of Muslim holidays shall be New Year's Day - January 1
determined by the Office of the President of the Philippines in accordance Maundy Thursday - Movable Date
with the Muslim Lunar Calendar (Hijra). Good Friday - Movable Date
Eidul Fitr - Movable Date
Article 172. Observance of Muslim employees. Eidul Adha - Movable Date
(1) All Muslim government officials and employees in places other Araw ng Kagitingan (Bataan and Corregidor Day) - Monday nearest April
than those enumerated under Article 170 shall also be excused 9
from reporting to office in order that they may be able to observe Labor Day - Monday nearest May 1
Muslim holidays. Independence Day - Monday nearest June 12
(2) The President of the Philippines may, by proclamation, require National Heroes Day - Last Monday of August
private offices, agencies or establishments to excuse their Bonifacio Day - Monday nearest November 30
Muslim employees from reporting for work during a Muslim Christmas Day - December 25
holiday without reduction in their usual compensation. Rizal Day - Monday nearest December 30

Republic Act No. 9492 July 25, 2007 "(b) Nationwide Special Holidays
Ninoy Aquino Day - Monday nearest August 21
AN ACT RATIONALIZING THE CELEBRATION OF NATIONAL All Saints Day - November 1
HOLIDAYS AMENDING FOR THE PURPOSE SECTION 26, Last Day of the Year - December 31
CHAPTER 7, BOOK I OF EXECUTIVE ORDER NO. 292, AS "(c) In the event the holiday falls on a Wednesday, the holiday will be
AMENDED, OTHERWISE KNOWN AS THE ADMINISTRATIVE observed on the Monday of the week. If the holiday falls on a Sunday, the
CODE OF 1987 holiday will be observed on the Monday that follows:

SECTION 1. Section 26, Chapter 7, Book I of Executive Order No. 292, "Provided,That for movable holidays, the President shall issue a specific
as amended, otherwise known as the Administrative Code of 1987, is date shall be declared as a nonworking day.”
hereby amended to read as follows:
CASE: San Miguel Corp. v. Court of Appeals, 375 SCRA 311 (2002)
“Sec. 26, Regular Holidays and Nationwide Special Days. – (1) Unless • Oct. 17, 1992 – DOLE Iligan District Office, conducted a routine
otherwise modified by law, and or proclamation, the following regular inspection in the premises of San Miguel Corporation (SMC) in
holidays and special days shall be observed in the country: Sta. Filomena, Iligan City. It was discovered that there was
underpayment by SMC of regular Muslim holiday pay to its
a) Regular Holidays employees.
New year’s Day • DOLE sent a copy of the inspection result to SMC and it was
received by and explained to its personnel officer Elena dela
- (same lang sa kanina!!!!) Puerta.
• SMC contested the findings and so DOLE conducted summary
c) In the event the holiday falls on a Wednesday, the holiday will be hearings on different dates.
observed on the Monday of the week. If the holiday falls on a Sunday, the • Still, SMC failed to submit proof that it was paying regular
holiday will be observed on the Monday that follows: Muslim holiday pay to its employees.
Provided, That for movable holidays, the President shall issue a • Hence, the Regional Director Alan Macaraya issued a
proclamation, at least six months prior to the holiday concerned, the compliance order directing SMC to consider Muslim holidays
specific date that shall be declared as a nonworking day: as regular holidays and to pay both its Muslim and non-
Provided, however, The Eidul Adha shall be celebrated as a regional Muslim employees holiday pay within 30 days from receipt
holiday in the Autonomous Region in Muslim Mindanao." of the order.
• SMC appealed to the DOLE main office in Manila Dismissed
for lack of merit.
Republic Act No. 9849 • SMC appealed to the SC via Rule 65, which it referred to the
CA. CA modified the compliance order issued by the Regional
AN ACT DECLARING THE TENTH DAY OF ZHUL HIJJA, THE Director with regards the payment of Muslim holiday pay from
TWELFTH MONTH OF THE ISLAMIC CALENDAR, A 200% to 150% of the employee’s basic salary.
NATIONAL HOLIDAY FOR THE OBSERVANCE OF • SMC filed MR but it was denied by the CA.
EIDULADHA, FURTHER AMENDING FOR THE PURPOSE • Hence, this petition via Rule 65.
SECTION 26, CHAPTER 7, BOOK I OF EXECUTIVE ORDER NO.
292, OTHERWISE KNOWN AS THE ADMINISTRATIVE CODE
OF 1987, AS AMENDED. ISSUE AND RATIO DECIDENDI

Section 1. The tenth day of Zhul Hijja, the twelfth month of the Islamic W/N the petition under Rule 65 is proper?
Calendar, is hereby declared as a national holiday for the observance of NO.
Eidul Adha. Edul Adha is a tenth day in the month of Hajj or Islamic 1. SC held that the proper remedy for SMC is to file a petition for
Pilgrimage to Mecca wherein Muslims pay homage to Abraham's supreme review under Rule 45.
act of sacrifice and signifies mankind's obedience to God. 2. Well-settled is the rule that certiorari cannot be availed of as a
substitute for a lost appeal. For failure of petitioner to file a
Section 2. Section 26, Chapter 7, Book I of Executive Order No. 292, timely appeal, the questioned decision of the Court of Appeals
otherwise known as "The Administrative Code of 1987", as amended, is had already become final and executory.
hereby amended to read as follows:
W/N SMC’s non-Muslim employees are also entitled to Muslim holiday
"SEC. 26. Regular Holidays and Nationwide Special Days. - pay?
YES.
 1. Muslim holidays are provided under Articles 169 and 170, Title to the holiday pay if he worked on the day immediately preceding the non-
I, Book V, of Presidential Decree No. 1083, otherwise known as working day or rest [Link]
the Code of Muslim Personal Laws. (see Notes)
2. SC stated that these provisions must be read in conjunction with
Art. 94 of the Labor Code which provides:
• Art. 94. Right to holiday pay. –
(a) Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service
establishments regularly employing less than ten (10)
workers;
(b) The employer may require an employee to work on
any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; x x
x.
3. SMC argues that according to Art. 3 (3) of PD 1083 (see Notes),
the provisions of the Code shall be applicable only to Muslims.
However, the Court held that there should be no distinction
between Muslims and non-Muslims as regards payment of
benefits for Muslim holidays.
• Assuming arguendo that SMC’s position is correct, then
Muslims throughout the Philippines are also not entitled to
holiday pays on Christian holidays declared by law as
regular holidays.
• Wages and other emoluments granted by law to the
working man are determined on the basis of the criteria laid
down by laws not on the basis of the worker’s faith or
religion.
• The said Art. 3(3) also provides that nothing herein shall be
construed to operate to the prejudice of a non-Muslim.
4. Moreover, in the the 1999 Handbook on Workers Statutory
Benefits, approved by then DOLE Secretary Bienvenido E.
Laguesma, it was said that both Muslim and Christians
working within the Muslim areas may not report for work
on the days designated by law as Muslim holidays.
W/N the Regional Director has the jurisdiction and authority to issue the
compliance order?
YES.
1. By virtue of Art. 128 of the Labor Code, the RD acted as the
duly authorized representative of the SOLE and it was within his
power to issue the compliance order to SMC.
W/N SMC was accorded due process?
YES.
1. SMC was furnished a copy of the inspection order and it was
received by and explained to its Personnel Officer.
2. Further, a series of summary hearings were conducted by
DOLE.
3. Thus, SMC could not claim that it was not given an opportunity
to defend itself.

RULING

WHEREFORE, in view of the foregoing, the petition is DISMISSED.

○ Absences, Rule lV, Secs. 6 (a), 10

SECTION 6. Absences. — (a) All covered employees shall be entitled to the
benefit provided herein when they are on leave of absence with pay.
Employees who are on leave of absence without pay on the day immediately
preceding a regular holiday may not be paid the required holiday pay if he has
not worked on such regular holiday.

SECTION 10. Successive regular holidays. — Where there are two (2)
successive regular holidays, like Holy Thursday and Good Friday, an
employee may not be paid for both holidays if he absents himself from work
on the day immediately preceding the first holiday, unless he works on the first
holiday, in which case he is entitled to his holiday pay on the second holiday.

○ Non-Working/Schedule of Rest Day, Rule IV, Sec. 6 (c)

(c) Where the day immediately preceding the holiday is a non-working day in
the establishment or the scheduled rest day of the employee, he shall not be
deemed to be on leave of absence on that day, in which case he shall be entitled