In the Philippines, the rights of domestic workers—or Kasambahays—are primarily governed by Republic Act No. 10361, otherwise known as the "Domestic Workers Act" or "Batas Kasambahay." Among the mandatory benefits provided by this law, the 13th-month pay stands as a non-negotiable labor standard. When a domestic worker resigns, the calculation and disbursement of this benefit follow specific legal guidelines to ensure fair compensation for services rendered.
1. Legal Basis for 13th Month Pay
Under the Batas Kasambahay and its Implementing Rules and Regulations (IRR), all domestic workers who have worked for at least one (1) month are entitled to a 13th-month pay.
While Presidential Decree No. 851 (the original 13th Month Pay Law) initially excluded domestic helpers, the enactment of RA 10361 explicitly extended this right to them. It is a mandatory benefit, regardless of the nature of the resignation (voluntary or for cause).
2. Defining "Prorated" 13th Month Pay
When a domestic worker resigns before the end of the calendar year, they are entitled to a prorated amount. This means the benefit is proportionate to the actual time they were employed during that specific year.
The Calculation Formula
The total 13th-month pay is generally defined as 1/12 of the total basic salary earned by an employee within a calendar year.
Note: "Basic salary" includes the monthly wage but excludes allowances and monetary benefits not considered part of the basic pay (e.g., gift checks or bonuses).
3. Eligibility and Resignation Scenarios
The right to prorated 13th-month pay is "vested," meaning it is earned as the work is performed.
- Voluntary Resignation: Even if the Kasambahay leaves of their own volition to find a new job or return home, the employer must pay the prorated share of the 13th-month pay earned from January 1st (or the start date) up to the last day of service.
- Minimum Service Period: To qualify, the worker must have rendered at least one month of service. If they resign after only 20 days, the employer is not legally obligated to provide 13th-month pay.
- Termination for Cause: Even if a worker is dismissed for a valid reason (e.g., misconduct), they are still entitled to the prorated 13th-month pay they earned prior to the dismissal.
4. Payment Timeline and Final Pay
The prorated 13th-month pay is typically released as part of the Final Pay or "Backpay."
According to DOLE Labor Advisory No. 06, Series of 2020, final pay should be released within thirty (30) days from the date of separation or termination of employment, unless a more favorable company policy or individual contract exists.
Components of the Final Pay for Resigned Workers:
- Unpaid basic salary for days worked.
- Prorated 13th-month pay.
- Unused Service Incentive Leave (SIL) converted to cash (if applicable—note that Kasambahays are entitled to 5 days of paid annual leave after one year of service).
- Any other benefits stipulated in the employment contract.
5. Employer Obligations and Penalties
Employers are prohibited by law from withholding the 13th-month pay as a form of "punishment" for resignation, even if the worker failed to provide the required 30-day notice.
- Notice Period: While a worker is supposed to provide a 30-day notice under Art. VII, Sec. 32 of RA 10361, failure to do so may allow the employer to hold the worker liable for damages, but it does not give the employer the right to forfeit the worker’s 13th-month pay.
- Compliance: Non-payment of this benefit is a violation of labor standards. Domestic workers may file a formal complaint at the nearest Department of Labor and Employment (DOLE) field office or through the Single Entry Approach (SEnA) for mediation.
6. Illustrative Example
If a Kasambahay earns ₱6,000 per month and resigns effective June 30:
- Total Basic Salary Earned: ₱6,000 × 6 months = ₱36,000
- Prorated 13th Month Pay: ₱36,000 ÷ 12 = ₱3,000
The employer must include this ₱3,000 in the worker's final settlement.