Administrative Order 2 (Implementing PD 851 or 13th Month Law; full text)

ADMINISTRATIVE ORDER No. 2

Series of 1976

In the interest of public service and efficiency, more particularly to facilitate the disposition of cases involving petitions for exemption, complaints, enforcement and implementation of P.D. No. 851 and its implementing rules and regulations, the following guidelines shall be followed:

I. Petition for exemption

1. The Regional Office concerned shall transmit immediately the petition for exemption to the Chairman, Wage Commission with comments and recommendations, if any.

The petition shall contain a sworn statement on the inability to implement the Decree and the reasons, therefore, and shall be accompanied by the following documents and statements:

(a) A certified true copy of the income tax returns for the last two (2) years;

(b) A certified copy of the financial reports for the last two (2) years filed with the Government entities, such as the Securities and Exchange Commission, Department of Trade, Department of Industries and Board of Investments;

(c) A detailed sworn statement of the actual monthly losses not covered by the report required under paragraph (b) above and such other proofs or documents as may be required by the Chairman, Wage Commission to establish such exemption.

2. The Chairman, Wage Commission and the duly designated staff, shall evaluate all petitions for exemption and make appropriate recommendations within 20 working days from receipt of the petition to the Secretary of Labor.

3. Whenever a petition for exemption has been filed, and complaint for non-compliance shall be held in abeyance pending the disposition or resolution of the petition for exemption.

II. Complaint, enforcement and/or implementation

1. All complaints for non-payment of the 13th-month pay shall be filed with the Field Services Division of the Regional Office concerned. The Regional Director shall direct the said Division to conduct an inspection and investigation in connection with the complaint filed.

2. The Field Service Division of the Regional Office concerned shall see to it that all covered employees comply with P.D. No. 851.

The Regional Director shall submit a monthly progress report of compliance with the Decree.

The reports of the Regional Offices shall be submitted to the LSS and BLS, and shall contain the following:

(a) The total number of establishments;
(b) total number of workers benefited; and
(c) total amount of benefits paid.

3. The Regional Office shall compile, analyze and evaluate compliance reports and update the listing of establishments on the basis of the reports submitted.

Any prior order, circular, instruction or memorandum or parts thereof, inconsistent herewith are hereby revoked.

This Order shall take effect immediately.

Manila, 9 January 1976.

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