Below is a comprehensive discussion about the entitlement to 13th Month Pay for employees who go Absent Without Leave (AWOL) under Philippine law. This article looks at the legal framework, the rationale behind 13th Month Pay, and how AWOL status impacts a worker’s right to receive or forfeit this statutory benefit.

1. Legal Basis for 13th Month Pay

1.1 Presidential Decree (P.D.) No. 851

The obligation of private-sector employers to provide 13th Month Pay is set forth primarily under Presidential Decree No. 851. Signed into law in 1975, P.D. 851 requires all employers to give their rank-and-file employees a 13th Month Pay not later than December 24 of every year.

1.2 Department of Labor and Employment (DOLE) Implementing Rules

The Department of Labor and Employment (DOLE) issued the Revised Guidelines on the Implementation of the 13th Month Pay Law, clarifying who is entitled to receive 13th Month Pay and prescribing computation methods and deadlines.

Key points from the guidelines include:

Coverage: All rank-and-file employees are entitled to a 13th Month Pay, regardless of their designation or employment status, provided that they have worked for at least one month during the calendar year.
Computation: The minimum 13th Month Pay is equivalent to one-twelfth (1/12) of the basic salary earned by an employee within the calendar year.
Deadline: Payment must be made on or before December 24. Some employers choose to give half of the 13th Month Pay on or before May or June and the other half in December, but the law requires the full amount be settled no later than December 24.

2. Impact of AWOL on 13th Month Pay

2.1 Understanding AWOL (Absent Without Leave)

An employee is generally deemed AWOL if they fail to report for work without providing a valid or authorized reason and without filing a leave application approved by the employer. If an employee remains AWOL for a prolonged period, many employers treat it as a ground for disciplinary action, which can lead to termination.

2.2 Pro-Rated 13th Month Pay

Even if an employee goes AWOL mid-year (and is effectively separated from the company), they remain entitled to receive a proportionate 13th Month Pay for the period they actually worked within that calendar year, unless there is a justifiable legal cause to withhold it (e.g., negative findings of fraud could complicate matters, but that typically involves separate legal or disciplinary processes).

Example:

An employee works from January 1 to June 30 and then goes AWOL starting July 1.
The employer opts to terminate the employee’s services due to AWOL.
That employee is still legally entitled to 13th Month Pay for the six months (January to June) of actual service during the calendar year, computed as follows:

[ \text{13th Month Pay} = \frac{\text{Total Basic Salary Earned from Jan to Jun}}{12} ]

Hence, going AWOL does not entirely forfeit one’s right to 13th Month Pay. It only stops any accrual of 13th Month Pay for the months (or days) not actually worked.

2.3 Separation from Employment vs. Forfeiture

Under DOLE’s guidelines, even a resigned or terminated employee is entitled to a pro-rated 13th Month Pay covering their working period. The same concept applies to an employee who effectively separates from service by going AWOL. The standard practice and the letter of the law reflect that separation, for whatever reason, does not automatically disqualify an employee from 13th Month Pay earned up to the last day they rendered work.

3. Common Employer Practices and Considerations

Unclear AWOL Status:
Occasionally, an employee may leave without notice but claim they had to attend to an emergency or that they informed the employer of their absence. In such borderline cases, employers generally require a notice or a Return-to-Work order. If the employer does not officially terminate the employee, the AWOL status may complicate or delay the release of final pay, which includes the pro-rated 13th Month Pay.
Release of Final Pay:
When an employer decides to terminate an employee on the ground of AWOL, the employee’s final pay (which typically includes any unpaid wages, unused leave conversions, and pro-rated 13th Month Pay) is processed. The timing of its release depends on company policy and standard final pay processes, but should be done within a reasonable period.
Documentation and Clearance:
If a company has a clearance procedure requiring the returning of company property (e.g., IDs, laptops, uniforms), it might hold the release of final pay until clearance is completed. Even so, the employer cannot legally withhold the 13th Month Pay indefinitely without a lawful cause. Typically, the 13th Month Pay should still be released after offsetting any legitimate accountabilities the employee might have, if those accountabilities are documented and due process is followed.

4. Relevant DOLE Advisories and Jurisprudence

4.1 DOLE Handbook on Workers’ Statutory Monetary Benefits

The DOLE regularly issues or updates its “Handbook on Workers’ Statutory Monetary Benefits,” which includes guidance on 13th Month Pay. It consistently reiterates that, in cases of separation, the employee is entitled to a proportionate 13th Month Pay for the time worked.

4.2 Supreme Court Decisions

Over the years, the Supreme Court of the Philippines has also pronounced that the 13th Month Pay is a statutory right and should not be withheld without just cause. While AWOL is considered a violation of company policy and can be a cause for dismissal, it does not retroactively erase benefits already accrued.

5. FAQs on 13th Month Pay and AWOL

Q: If I go AWOL in November or December, can my employer refuse to pay my 13th Month Pay in full?
A: They can only refuse payment for the period not worked. You remain entitled to the portion of your 13th Month Pay based on the basic salary you earned from January until the last day you actually worked.
Q: Does AWOL prevent me from receiving the 13th Month Pay on the usual schedule?
A: It can delay the process if the employer needs to finalize your separation status. However, after separation is formalized, you should receive your final pay, which includes any pro-rated 13th Month Pay, unless there are legitimate deductions or liabilities supported by documentation and due process.
Q: What if my employment contract or company policy says I forfeit my 13th Month Pay if I go AWOL?
A: Any company policy or contract clause that deprives you of your statutory 13th Month Pay entitlement for actual work rendered is invalid. Statutory monetary benefits cannot be waived or forfeited by contract if they are mandated by law.
Q: When is the deadline for giving separated employees their pro-rated 13th Month Pay?
A: There is no separate statutory deadline specifically for separated employees. However, DOLE expects employers to pay all final wages and benefits within a reasonable time, typically aligned with the next pay cycle or as soon as clearance procedures are completed.

6. Best Practices for Employers and Employees

Employers:
- Establish clear policies on AWOL and ensure that employees are informed in writing.
- Process final pay expeditiously once AWOL status is confirmed, computing pro-rated 13th Month Pay accurately.
- Maintain thorough records of attendance and payroll to facilitate prompt computation of benefits.
Employees:
- Communicate any absences, if possible, and provide a valid reason or formal leave application.
- Upon separation—whether voluntary or due to AWOL—follow up with Human Resources on final pay computation, which should include your pro-rated 13th Month Pay.
- If an employer refuses to provide the 13th Month Pay, seek guidance from the DOLE or an independent legal practitioner.

7. Conclusion

In the Philippines, 13th Month Pay is a statutory benefit that rank-and-file employees earn proportionally throughout the year. An employee who goes AWOL does not lose the right to the portion of 13th Month Pay already accrued based on actual work. Employers cannot simply forfeit accrued benefits—any policy stipulating automatic forfeiture for AWOL is inconsistent with labor laws and will not withstand legal scrutiny.

That said, employees must be aware that AWOL can lead to disciplinary proceedings, which may ultimately result in termination of employment. Even so, such termination only affects wages and benefits accruing after the cessation of work, not those already earned. As with any labor-related issue, both employers and employees benefit from clear communication and a solid understanding of Philippine labor law.