In a country frequently visited by typhoons and plagued by occasional grid instability, the suspension of work due to force majeure (fortuitous events) is a common occurrence. For many employers and employees, the primary point of contention arises after the storm: Can an employer require employees to "make up" or offset the hours lost during a power outage or natural disaster?
The answer lies in the intersection of the Labor Code of the Philippines, Department of Labor and Employment (DOLE) advisories, and the fundamental principle of "Fair Day’s Wage for a Fair Day’s Labor."
1. The General Rule: "No Work, No Pay"
Under Philippine labor law, the governing principle during natural disasters or power interruptions is generally "No work, no pay."
- Employee's Side: If the employee cannot report to work or if work is suspended due to a natural disaster (typhoon, flood, earthquake) or a prolonged power outage, the employer is generally not obligated to pay the salary for that day, unless a favorable company policy or Collective Bargaining Agreement (CBA) exists.
- Employer's Side: Conversely, the employer cannot be penalized for not paying for hours where no service was rendered due to events beyond their control.
2. The Concept of "Offsetting" Under the Labor Code
The Labor Code of the Philippines is strict regarding the offsetting of hours, particularly in relation to overtime.
Article 88 of the Labor Code states:
"Undertime work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required by this Chapter."
While Article 88 specifically addresses offsetting undertime with overtime, it sets a legal precedent: Work hours are generally viewed on a per-day basis. #### Is Offsetting Hours Legal? If an employer asks an employee to work on a Saturday (a rest day) to "offset" a Tuesday that was lost to a typhoon, this is legally complex:
- Consent: It usually requires the voluntary agreement of the employee.
- Premium Pay: If the "make-up" day falls on a rest day or a holiday, the employer is still legally obligated to pay the corresponding premium rates (e.g., +30% for rest days). The employer cannot treat the rest day as a regular workday just because a previous regular day was missed.
3. DOLE Labor Advisory No. 17, Series of 2022
Following recent major typhoons, DOLE issued specific guidelines regarding the suspension of work. The advisory clarifies the following:
- Suspension of Work: Employers have the discretion to suspend work to ensure the safety of their employees.
- Non-Diminution of Benefits: Employees who fail or refuse to work by reason of imminent danger resulting from a disaster shall not be subject to any administrative sanction.
- Payment of Wages: * If work is suspended, the "no work, no pay" principle applies unless there is a favorable company policy.
- Employers are encouraged (though not strictly mandated) to allow employees to use their accrued leave credits (Vacation or Sick Leaves) so they can still receive pay for the missed days.
4. Power Interruptions: "Waiting Time" vs. "Force Majeure"
The legality of offsetting hours during power outages depends on whether the time is considered "compensable waiting time."
- Compensable (Paid): If employees are required to stay at the workplace while waiting for the power to return, that time is considered hours worked. Under Section 4, Rule I, Book III of the Implementing Rules of the Labor Code, waiting time is compensable if "the employee is required to remain at his post or the time is spent for the benefit of the employer."
- Non-Compensable (Unpaid): If the employer sends everyone home because the outage is expected to last all day, the "no work, no pay" rule applies.
The Offset Conflict: If the outage lasted 4 hours and the employer paid the employees for those 4 hours (because they stayed at the office), the employer cannot later demand 4 hours of free work on a weekend to "offset" that time. That would constitute a violation of overtime and rest day pay laws.
5. Management Prerogative and Compressed Work Weeks
Employers often cite Management Prerogative to justify offsetting. While employers have the right to regulate all aspects of employment, this is limited by special laws.
One legal workaround is the Compressed Work Week (CWW). If a company has a DOLE-registered CWW scheme, they may adjust schedules. However, shifting schedules suddenly to account for a natural disaster without prior agreement or proper notice period is often viewed as an overreach of management prerogative.
6. Summary of Key Legal Standings
| Scenario | Legal Treatment |
|---|---|
| Work suspended by Employer | No work, no pay (unless leaves are used). |
| Employee stays at office during outage | Fully compensable; cannot be "offset" later for free. |
| Working on a Sunday to "make up" for a Typhoon | Permissible only if paid as a Rest Day (+30%) or if the employee consents to a swap without losing premium pay rights. |
| Forcing use of VL/SL | Encouraged by DOLE, but generally requires mutual agreement or existing policy. |
Conclusion
In the Philippine context, while employers and employees are encouraged to find a "middle ground" through social dialogue, the law leans towards protecting the integrity of the workday. Offsetting hours lost to natural disasters or power interruptions is not a unilateral right of the employer. Any "make-up" work that infringes upon an employee's rest day or exceeds 8 hours a day must be compensated with the appropriate legal premiums, regardless of the hours lost previously due to force majeure.