This article talks about the effect of absences on the entitlement of an employee to holiday pay.
Holiday pay has been defined as payment of the regular daily wage for any unworked regular holiday. It is a legislated benefit enacted as part of the constitutional imperative that the State shall afford protection to labor (Asian Transmission Corporation vs. Court of Appeals, G.R. No. 144664, 15 March 2004). It is not just meant to prevent diminution of the monthly income of the workers on account of work interruptions, but is also intended to enable the worker to participate in national celebrations held during days with great historical and cultural significance. While the worker is forced to take a rest, he/she still earns what he/she should earn, that is, his/her holiday pay.(Nippon Paint Philippines Inc. vs. Nippon Paint Philippines Employees Association, G.R. No. 229396, 30 June 2011).
Article 94 of the Labor Code states that every worker shall be paid his regular daily wage during regular holidays if unworked. If the employee works on a regular holiday, he shall be paid 200% of his daily wage. However, an absence before the regular holiday will prevent an employee from receiving his holiday pay. Book III, Rule IV of the Omnibus Rules Implementing the Labor Code provides:
“SECTION 6. Absences. — (a) All covered employees shall be entitled to the benefit provided herein when they are on leave of absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he has not worked on such regular holiday.
(b) Employees shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee’s compensation or social security payment, whichever is higher, if they are not reporting for work while on such benefits.
(c) Where the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the non-working day or rest day.”
Thus, if an employee is absent on the day immediately preceding a regular holiday, he is NOT entitled to holiday pay. However, even if he was absent on the day before the holiday but he actually works on the regular holiday, he shall be entitled to his holiday pay of 200% of his daily wage.
Moreover, if the day before the regular holiday is a non-working day or rest day, an employee who was absent BEFORE the non-working day/rest day before the regular holiday is likewise NOT entitled to holiday pay.
In case of successive regular holidays, Section 10 of Book III, Rule IV of the Omnibus Rules Implementing the Labor Code is instructive:
“SECTION 10. Successive regular holidays. — Where there are two (2) successive regular holidays, like Holy Thursday and Good Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday, unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.”
Consequently, it is strongly advised to be present at work on the day before the regular holiday. Should one wish to have an extended rest, the best way to proceed is to utilize the existing vacation leave or service incentive leave credits so as not to be considered as absent without pay on the day preceding the regular holiday.
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If you want to learn more about holiday pay or need help in labor matters, we can help you. Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com .
