Boss dating employee law
With the removal of the salary ceiling, all rank and file employees become entitled to a 13th month pay regardless of the amount of their monthly basic salary (unless their employers are exempted from the application of PD 851).Managerial employees are excluded from the coverage of the law.For employee’s receiving salary below the minimum wage, the separation pay shall be computed based on the minimum wage in effect at the time of separation from service.In addition, the employee affected is also entitled to payment of salary differential equivalent to the difference between the employees actual salary and applicable minimum wage.However, these salary-related benefits should be included as part of the basic salary in the computation of the 13th month pay if by individual or collective agreement, company practice or policy, the same are treated as part of the basic salary of the employees.The required 13th month pay shall be paid not later than December 24 of each year.
They are expressly excluded from the coverage of PD 851.
As such, it may be excluded from the computation of 13th month pay.
Only the fixed or guaranteed wage is required to be included in the computation (see Boie Takeka case, 1993.) On the other hand, commission that takes the form of a direct remuneration for services rendered should be included in the computation of the basic salary.
A fraction of at least 6 months shall be considered as one whole year. An employee terminated based on installation of labor-saving devices or redundancy is entitled to at least one-month salary or to at least one-month salary for every year of service, whichever is higher.
However, only the employee’s last continuous years of service should be considered in the computation (See Carandang vs. (See Article 283, Labor Code) For termination based on retrenchment to prevent losses and closure of business, the employee affected is entitled to at least one month salary or 1/2 month salary for every year of service, whichever is higher.
However, employees paid on partly commission basis, i.e., those guaranteed with a fixed wage aside from the commission, are entitled to 13th month pay.