Monday, April 09, 2012

Wellington Investment & Manufacturing Corporation vs. Trajano [G.R. No. 114698 July 3, 1995]

Facts: By virtue of the routine inspection conducted by a Labor Enforcement Officer, Wellington Flour Mills owned by the petitioner-company was found non-payment of regular holidays falling on a Sunday for monthly-paid employees. Wellington argued that the monthly-paid employees already includes holiday pay for all regular holidays and there is no legal basis for the finding of alleged non-payment of regular holidays falling on a Sunday. It further contends that it pays its monthly paid employees a fixed monthly compensation using the “314 factor” which undeniably covers and already includes payment for all the working days in a month as well as all the 10 un-worked regular holidays within a year. The Regional Director ordered the petitioner to pay the employees additional compensation corresponding to 4 extra working days. However, the petitioner argued that the company, using the “314 factor” already gave complete payment of all compensation due to its workers. Petitioner appealed and was acted on by the respondent Undersecretary. But still, Regional Director’s decision was affirmed. Hence, this petition. 

Issue: Whether or not a monthly-paid employees, receiving a fixed monthly compensation, is entitled to an additional pay aside from his usual holiday pay whenever a regular holiday falls on a Sunday. 

Held: Regional Director’s decision, affirmed by the Undersecretary, is nullified and set aside. Every worker should be paid his regular daily wage during regular holidays; except in retail and service establishments regularly employing less than 10 workers, even if the worker does not work on these regular holidays. The Wellington had been paying its employees a salary of not less than the statutory minimum wage and that the monthly salary, thus, paid was not less than the statutory minimum wage multiplied by 365 days divided by 12. Apparently the monthly salary was fixed by Wellington to provide for compensation for every working day of the year including holidays specified by law and excluding only Sundays. Wellington leaves no day unaccounted for, it is paying for all the days of a year with the exception only of 51 Sundays. 

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1 comments: on "Wellington Investment & Manufacturing Corporation vs. Trajano [G.R. No. 114698 July 3, 1995]"

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