JRC v.

NLRC
FACTS: Jose Rizal College, a non-stock, non-profit institution has three groups of
employees:
(a) Personnel on a monthly basis, who receive uniform salaries throughout the
year, irrespective of the actual number of working days in a month without
deduction for holidays;
(b) Personnel on daily basis who receive pay on days they actually work and they
receive unworked holiday pay;
(c) Collegiate faculty who are paid on the basis of student contract hour.
These personnel and faculty were not paid holiday pay so the National Alliance of
Teachers and Office Workers (NATOW) filed a complaint against JRC for non-payment
of holiday pay.
LA Decision:
(a) Personnel paid uniform salaries are presumed to have received their holiday
pay;
(b) Personnel paid on daily wages are entitled to be paid the 10 unworked
regular holidays according to the Labor Code
(c) Collegiate faculty are not entitled to unworked regular holiday pay since
these regular holidays have been excluded in the programming of regular
contract hours
NLRC: Modified; personnel paid hourly entitled to holiday pay
Petitioner imposed an appeal, claiming
(a) That it is not covered by Book V of the LC on Labor Relations as it is a nonprofit institution
(b) Its hourly-paid faculty members are paid on contract basis because they are
required to work for a particular number of hours
(c) If a regular week day is declared a holiday, the school calendar is extended to
compensate for that day, and the advent of regular holidays should not affect
their pay given the calendar is extended to compensate for special holidays
and the programmed number of lecture hours is not diminished
SolGens two cents:
(a) Art. 94 of the LC provides that holiday pay applies to all employees except
those in retail and service establishments;
(b) To deprive the faculty of holiday pay goes against PD 442, the Blue Sunday
Law, and the constitutional mandate to grant greater rights to labor
NLRC Decision (June 2,1982): The purpose of holiday pay is to avoid diminution of
benefits on account of work interruptions. Although the worker is forced to take a
rest, he earns what he should earn. It is no excuse the school calendar is extended
because such only happens in case of special holidays.
ISSUE: W/n collegiate faculty who according to their contracts are paid per lecture
hour are entitled to unworked holiday pay (NO, but they are entitled to unworked
holiday pay on special holidays)
Art. 94. Right to holiday pay (a) Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service establishments regularly

employing less than ten (10) workers;

(b) The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate; ... "
and in the Implementing Rules and Regulations, Rule IV, Book III, which reads:
SEC. 8. Holiday pay of certain employees. (a) Private school teachers, including
faculty members of colleges and universities, may not be paid for the regular
holidays during semestral vacations. They shall, however, be paid for the regular
holidays during Christmas vacations.
1. Court said Sec. 8 of the IRR is not justified by the provisions of the law which
is silent as to faculty members paid by the hour who because of their
teaching contracts are obliged to work and consent to be paid for work
actually done. For regular holidays, the teachers should not expect payment
for unworked regular holidays, as this was on their minds upon entering into
the contract.
2. The law and the IRR are silent as to special public holidays. The declared
purpose of holiday pay is to avoid diminution of benefits on account of work
interruptions. When a special public holiday is declared, a teacher does not
earn what he or she should, despite the extended school calendar.
Further, JRC was not deprived of due process
1. All seven cardinal rights of due process were observed;
2. JRC was amply heard in the proceedings before the LA as it was able to
submit a position paper and was able to file an MR