Holiday Pay for Workers Paid by Results
Where a covered employee is paid by results or output such as payment on piece-work, his holiday pay should not be less than his average daily earnings for the last seven (7) actual working days preceding the regular holiday. In no case, however, should the holiday pay be less than the applicable statutory minimum wage rate.
Classification of Workers Paid by Results
The principal test to determine entitlement to holiday pay is whether the employees’ time and performance of the work are “supervised” or “unsupervised” by their employer. If supervised, the employee is entitled to holiday pay. If unsupervised, he is not.
The distinctions between supervised and unsupervised workers paid by results are as follows:
[1] Those whose time and performance are supervised by the employer. Here, there is an element of control and supervision over the manner as to how the work is to be performed. A piece-rate worker belongs to this category especially if he performs his work in the company premises; and
[2] Those whose time and performance are unsupervised. Here, the employer’s control is over the result of the work. Workers on pakyao and takay basis belong to this group. Both classes of workers are paid per unit accomplished. Piece-rate payment is generally practiced in garment factories where work is done in the company premises, while payment on pakyao and takay basis is commonly observed in the agricultural industry, such as in sugar plantations where the work is performed in bulk or in volumes, hence, difficult to quantify.