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Emplovmcnt Law Solutio11s

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IS HAZARD PAY MANDATORY TO

EMPLOYEES?

Under the Labor Code covering the private sector, the prescribed working conditions
compensable are the following: 1) hours of work; 2) weekly rest day; 3) holiday pay; and 4)
service incentive leave; and 5) service charges. Further, there are statutory monetary
benefits that employees may availed of such as maternity leave, paternity leave, parental
leave for solo parents, leave for victims of violence against women and their children,
special leave for women, thirteenth-month pay, benefits under the employee's
compensation program, Phil Health benefits, SSS benefits, and PAG-lBlG benefits.

However, there are employees who are already entitled to hazard pay such as public health
workers, public social workers, science and technology personnel by virtue of Republic Act
No. 7305 or the Magna Carta for Public Health Workers with rates depending on the salary
grades of the aforementioned employees. Another would be the military and uniformed
personnel by virtue of Executive Order No. 31-A as modified by Executive Order NO. 201 in
2016 with a rate of Eight Hundred Forty Pesos (Php840.000) as of January l, 2019.

In light of the COVI0-19 situation, the President declared on March 16, 2020 the entire
Luzon under Enhance Community Quarantine. Consequently, a bill was passed creating the
now Republic Act No. 11469 or the Bayanihan to Heal as One Act. Under Section 4 of the
said Act, the President is authorized to exercise powers that are necessary and proper to
carry out the declared national policy. Included under item (d) of Section 4 all public health
workers, by way of protection, will be provided with a "COVI0-19 special risk allowance" in
addition to the hazard pay granted underthe RA. No. 7305. Lastly, under item {f) of Section
4, a compensation of One Hundred Thousand Pesos (Phpl00,000.00) to public and private
health workers who may be infected severe COVID-19 while in line of duty and a
compensation of One Million Pesos (Phpl,000,000.00) shall be given to public and private
health workers who may die while fighting the COVID-19 pandemic. A retroactive effect of
RA No. 11469 sha.11 apply from February 1, 2020.

Hazard pay is not mandatory in the private sector except when if it is embedded in the
Employment Contract or included in the Collective Bargaining Agreement If not, they may
opt to provide such benefit through the exercise of its management prerogative.