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Hardship Allowance

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1 Hardship Allowance on Wed Apr 06, 2011 12:46 pm


Arresto Menor
Attorney, we are relocating some of our employees to Clark, Pampanga. The Management has decided to give them extra compensation of 2K per month because they will be uprooted from Manila and removed from their families. Management plans to classify this as hardship pay.My questions are:

1) Is there such pay as hardship pay?
2) If yes, is the employer mandated to justify to DOLE or BIR giving hardship pay?
3) Do being uprooted from one's hometown and being away from one's family constitute hardship?

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2 Re: Hardship Allowance on Fri Apr 08, 2011 11:04 pm


it is not required under the labor code so legally, there is no such thing as hardship pay.

what the company has to show is that there is a bonafide reason to relocate the company. it does not have to provide for additional allowance to the employees, but of course you don't want everyone resigning.

the common practice is to give a one time relocation allowance, but any practice can be allowed. note, that if it becomes regular allowance, it cannot be removed later on.

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3 Re: Hardship Allowance on Wed Apr 27, 2011 12:14 am


Arresto Menor
Hi Atty LLL,

How if management dont like to give allowance? and 2nd thing is they want us to sign a new contract because its a new company that they open in Subic. Is there a biolation for these?

No one wants to be away in our family and we expense more than we are base here in makati. How if the employee dont want to be assign in subic because there is no transfortation or housing allowance. What will be a suction?

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4 Re: Hardship Allowance Today at 4:22 am

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