Memorial Day is a holiday of the United States, however it has an effect beyond the US. The event has a substantial impact on the Philippines’ large BPO and remote working sectors.
There are many thousands of Filipino workers that help American companies engage in customer service, technical support, virtual assistance, and even freelance working. Because Memorial Day’s ties to the American work calendar, days off, pay dates and the volumes of work can vary among staffing companies across the Philippine outsourcing (PO) sector.
The period of the year known as the Holidays can either be a calmer time at work or the time that a certain worker or freelancer is offered a break from working altogether, as per employment arrangement.
Is Memorial Day a holiday for Filipino Workers?
A major issue each year is whether there is any extra compensation or benefit for Filipino workers during US holidays. The short answer is it will rely completely on the nature of employment security.
BPO Employees Under Philippine Companies
Registered BPO companies in the Philippines’ staff members are governed by the laws and regulations of the country, as prescribed by the Department of Labor and Employment.
In the Philippines, the premiums for holidays only apply to official Philippine holidays in accordance with its labor laws.
Virtual Assistants and Freelancers
If Filipino Virtual Assistants and freelancers are directly contracted with an American client, then compensation will be based on their own contract.
Some U.S. companies shut down for Memorial Day weekend. If there is no work scheduled during the holiday while freelancers are paid on hourly basis, then his/her working day would not be counted.
However, freelancers who have a fixed retainer (week or month) rate can still get paid if clients close for the holidays.
BPO Operations During Memorial Day
Many times the ins and outs of an outsourcing firm’s atmosphere become quite noticeable during the month of May.
During this period, a sudden decrease in the number of customers in the customer support queue may occur. More Americans travel or attend an event with their family members for their holidays, leading to a decrease in contact with support centers.
Managers often have to run smaller crews, and give more holiday. A light Memorial Day week often provides lighter employee workload and that is why it is a very popular work for employee volunteers.
Depts that respond to email, deal with technical escalations or do moderation work typically anticipate an influx of emails when the U.S. users come back on line after the long weekend.
Banking Delays and Remittance Concerns for Freelancers
U.S. banks and Fed processing networks go on the holiday.Bank and Fed bank processing networks shut for holiday. Many international wire transfers and payroll payments that are related to the accounts of US financial institutions are temporarily blocked.
Payments may not be received in Philippine banking or e-wallet apps until Tuesday or Wednesday, as a result, customers are expected to pay the same day for any such payments made on Friday, May 22.
Firms and freelance nationals are advised to arrange with customers to arrange tidy payment arrangements before the end-of-year weekend so as to avoid delays.
Why is Memorial Day Operationally Important for the BPO Industry?
The outsourcing industry in the Philippines is still very intertwined with the American economy. Despite the lack of official recognition of Memorial Day as a local event, the US economic slowdown during the extended weekend clearly has an impact on various Philippine call centres and remote work industries.
The holiday is meant to accentuate the inter-dependent nature of the systems used for remote work across the globe. In the United States, when a federal holiday comes about, it can instantly impact the staffing situation, payroll schedules, and trend in productivity thousands of miles away in the Philippines.
These patterns can help ease the confusion among Filipino workers about pay, pay schedules, and pay expectations.
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FAQs
Are Filipinos in BPO get double pay during the U.S. Memorial Day?
No, employees employed by companies who are registered in the Philippines will normally continue their work, and pay should be issued on regular working days, which include the Memorial Day as well.
Is the Memorial Day holiday in the Philippines?
No. This is because in the Philippines, Memorial Day is not recognised as a federal holiday.
Why doesn’t the bank transfer work during Memorial Day?
Federal banks and systems of Federal banks suspend activity during the federal holiday. Revenue on remittance payments to the Philippines can be delayed.
