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ARTICLE 286.

LABOR CODE OF THE PHILIPPINES


WHEN EMPLOYMENT NOT DEEMED TERMINATED. THE
BONAFIED SUSPENSION OF THE OPERATION OF A
BUSINESS OR UNDERTAKING FOR A PERIOD NOT
EXCEEDING SIX(6) MONTHS OR THE FULFILLMENT BY
THE EMPLOYEE OF A MILITARY CIVIC DUT Y SHALL NOT
TERMINATE EMPLOYMENT.
RODEL Z. BALAGAT
LABOR CODE OF THE PHILIPPINES
REPORT

SUBMITTED TO:
SIR.JOMEL ANGANGAN
BORACAY CLOSURE
The closure of the Philippine resort island of Boracay, one of the nation's major tourist destinations, was set for six
months starting April 26, 2018 as part of the government's efforts at the island's environmental rehabilitation.
Location: Boracay, Malay, Aklan , Philippines
Type: Closure / Rehabilitation
Date: April 26 – October 26, 2018
Duration: 6 months
WORKERS SUSPENSION
In the case of temporarily layoffs, employers are still required to submit the ETR to the DoLE . Under Article 286
of the Labor Code, suspension of the employment relationship as a result of a bonafide suspension of a
business or undertaking is permissible provided that the suspension is for a period not exceeding six months.
After six months, the employee should either be recalled to work or, if this is not feasible, permanently
separated and paid the appropriate separation pay.

Moreover, notice of temporary suspension should also be filed with the social welfare agencies to suspend the
employer’s obligation of remitting the mandatory contributions without risk of penalties. Once operations
resume, however, and employees report back for work, the employers are required to continue their
remittances.

To ease the situation of affected workers, (i.e. those whose employment was suspended due to temporary closure of
their employer’s business, those who were terminated by reason of permanent cessation of business of their
employer, and retained workers who do not receive regular wages due to the temporary closure of Boracay
Island), DoLE issued Department Order 191 series of 2018 (DO 191) by way of relief. Under DO 191,
affected workers may avail of any or all of the following program assistance:

a. Financial Assistance: Financial support equivalent to 50% of the prevailing minimum wage of Region VI, for a
maximum of six months. For retained workers who do not receive regular wages ,the financial support is
equivalent to 25% of the prevailing minimum wage of Region VI, which shall be non-conditional, to be
provided in lump sum covering three months;

b. Employment Facilitation: Access to available job opportunities suitable to their qualifications through job
matching, referral, and placement services, either local or overseas employment, employment coaching and
labor market information;

c. Training: Appropriate training to enhance their skills and competitiveness, as well as employability, as
administered by the TESDA, DTI, DoST , DoT and other government agencies.
To monitor and ensure that the program objectives are met, the concerned DoLE Regional Office is required to
report regular progress to the Bureau of Local Employment for subsequent submission to the Secretary of
Labor.

Affected employees may also avail of emergency loans from SSS under its Emergency Loan Assistance Program
and multi-purpose loans from the Pag -IBIG Fund.

Indubitably, on top of the economic impact, the Boracay closure also has regulatory filing consequences. To avoid
compliance issues and incurring penalties, business establishments must be mindful of government
reportorial requirements. On the part of employees, it behooves them to be aware of existing programs such
as DO 191 to avail and optimize the assistance currently provided by law.
WORKERS FINANCIAL ASSISTANCE
Kenny Francisco from Hotel Sophia Boracay explains how even retained workers suffer from
the temporary closure of the island: “In Boracay, visitors translate to service charges. More
visitors mean more service charge for the staff. Normally, we get service charge four times
each month. These days, we only receive our basic salary.”
The Department of Labor and Employment encourages all workers affected by the temporary
closure of Boracay Island to apply for the BEEP AMP. It’s offices nationwide are ready and
equipped to provide assistance to all displaced workers.