Disciplinary Action for Holiday Absence in the Philippines

A comprehensive legal‑practice guide for employers, HR professionals, and workers

1. Introduction

The Philippines mandates a generous list of regular holidays and special (non‑working) days every calendar year. While these dates are intended to let employees rest or celebrate national events, business exigencies sometimes require work, and operational continuity always demands predictable staffing on the workdays before and after them.

When an employee is absent—either on the holiday itself (if he or she is scheduled to work) or on the workday immediately preceding or following a holiday—the issue is not merely monetary. It also touches compliance with Articles 94, 297–299, and 300 of the Labor Code, the employer’s prerogative to discipline, and constitutional and statutory due‑process guarantees. This article surveys all the key legal rules, jurisprudence, and best‑practice considerations on disciplining employees for “holiday absence” (often treated as absence without leave [AWOL] or habitual absenteeism) in the Philippine setting.

2. What Counts as a “Holiday Absence”?

Scenario	Typical HR label	Holiday‑pay impact	Possible disciplinary tag
Absent on the un‑worked regular holiday itself (employee was scheduled to work)	AWOL	No holiday premium; treated as leave without pay	AWOL / insubordination
Absent on a regular workday immediately before a regular holiday	“Day‑before” absence	Employer may withhold the 100 % holiday pay for the un‑worked holiday under Art. 94 and its IRR	AWOL / habitual absenteeism
Absent on a regular workday immediately after a holiday	“Sandwiched” absence (“Friday‑Monday” pattern)	No holiday‑pay forfeiture, but still affects attendance records	Ground for progressive discipline
Absent during an emergency/critical operations schedule that fell on a holiday	AWOL / insubordination	Loss of 200 % premium (if scheduled to work)	Possible serious misconduct

Key takeaway: Holiday absence is not a separate offense in the Labor Code, but employers treat it as a sub‑species of absenteeism, insubordination, or gross neglect, depending on the facts.

3. Statutory Foundations

Article 94, Labor Code – Sets the rule that a covered employee is entitled to 100 % of the daily wage even if the regular holiday is un‑worked, provided the employee is present (or on leave with pay) on the workday immediately preceding the holiday.
Implementing Rules & Regulations (Book III, Rule IV) – Authorizes the forfeiture of holiday pay when the “day‑before” condition is violated.
Articles 297 (former Art. 282) & 299 (former 284) – Enumerate just causes for dismissal, including serious misconduct, willful disobedience, and gross and habitual neglect of duties. Absenteeism becomes dismissible when it rises to willful disobedience or gross neglect.
Article 300 (formerly 285) – Covers abandonment, a separate just cause requiring (a) failure to report for work for an unreasonable period and (b) clear intent to sever the employer–employee relationship.
Department of Labor and Employment (DOLE) Guidelines – The latest DOLE Handbook on Statutory Monetary Benefits (2024 edition) restates the holiday‑pay prerequisites, premium rates (200 % for work on a regular holiday; 260 % if it also falls on a rest day), and the “absence on the day immediately preceding” rule.
Flexible Work Arrangements/Telework – DO 202‑21 and the Telecommuting Act (RA 11165) do not excuse an employee from securing prior approval for leave or alternate work arrangements on holidays unless company policy says so.

4. Interaction of Holiday‑Pay Rules and Company Disciplinary Codes

While the Labor Code speaks only of forfeiture of holiday pay, the employer’s management prerogative allows it to classify unauthorized holiday absence as a violation of its Code of Conduct (CoC)—typically:

Minor offense: first offense = verbal/written warning; second offense = suspension.
Serious offense (for mission‑critical operations, or when the absence causes production shutdown or safety risks): may be elevated to serious misconduct or willful disobedience.

To withstand scrutiny, the CoC must:

Be reasonable and made known to employees (ARTCORP v. NLRC, G.R. 174141, 2010).
Impose graduated penalties proportional to the infraction (Wenphil Corp. v. NLRC, G.R. 80587, 1989).
Recognize justifiable excuses (illness, force majeure, bereavement) if properly documented.

5. Due‑Process Requirements (Twin‑Notice Rule)

Regardless of whether the penalty is suspension or dismissal, procedural due process—codified in the 2017 DOLE Rules on Termination—requires:

First notice (Notice to Explain, NTE):
Specific charge: “You were absent without approved leave on 24 December 2024, the workday immediately preceding the regular holiday of 25 December 2024, in violation of Section 5.1 of the CoC.”
Minimum reply period: 5 calendar days.
Administrative conference/hearing: Mandatory only if requested in writing or if factual issues exist.
Second notice (Notice of Decision): States the findings and penalty.

Failure to observe either notice renders the dismissal or suspension procedurally infirm, exposing the employer to nominal damages (Jaka Food Processing v. Pacot, G.R. 151378, 2005) or outright reinstatement.

6. Substantive Standards: When Does Holiday Absence Become Dismissible?

Legal ground	What must be proven	Key jurisprudence	Practical threshold
Willful disobedience / insubordination	① A lawful and reasonable order (reporting on a critical‑operations holiday); ② Employee’s intentional refusal despite knowledge	Phil. Long Distance Tel. Co. v. NLRC, G.R. 110068 (1998)	Usually single, blatant refusal
Gross and habitual neglect (habitual absenteeism)	① Repeated unauthorized absences; ② Gross neglect that impairs operations	St. Luke’s Medical Center v. Notario, G.R. 195037 (2013)	At least 3–5 violations within 6–12 months under most CoCs
Abandonment	① Unjustified absence for a prolonged period; ② Overt act showing intent to sever employment (e.g., taking another job)	Royal Crown Plastic v. NLRC, G.R. 126297 (1999)	Generally 30 calendar days of continuous AWOL + refusal to respond to NTE

7. Holiday‑Pay Computations and Forfeitures

Un‑worked regular holiday
Entitlement: 100 % of daily wage.
Forfeited if absent the workday immediately preceding, unless the absence is with pay or excused.
Worked regular holiday
Entitlement: 200 % of daily wage for first 8 hours; +30 % of hourly rate for OT.
Worked holiday falling on rest day
Entitlement: 260 % of daily wage; +30 % OT.
Special (non‑working) day
Un‑worked: “No work, no pay.”
Worked: 130 % of daily wage; +30 % if also a rest day.
Double holiday (e.g., Araw ng Kagitingan falling on Maundy Thursday, 9 April 2026)
Entitlement: 300 % if worked; 200 % if un‑worked.

Tip for HR: Ensure your payroll software automatically flags employees who fail the “day‑before” rule so the holiday‑pay adjustment dovetails with any attendance‑related disciplinary process.

8. Illustrative Case Digests

Case	Facts	Ruling	Lesson
Toyota Alabang, Inc. v. Santos, G.R. 200487 (2015)	Employee absent three consecutive workdays surrounding 1 May (Labor Day) without leave. Company imposed 15‑day suspension.	Upheld. Habitual holiday absenteeism threatened business continuity; penalty was proportionate.	Progressive discipline is valid when CoC clearly classifies the offense and penalties.
Genuino Agro‑Industrial Dev’t Corp. v. Rivera, G.R. 166834 (2013)	Worker absent on the day before Eid’l Fitr (regular holiday) due to sudden illness; presented medical certificate. Dismissed for AWOL.	Reinstated with back wages. Absence justified; no willful disobedience.	Employers must honor legitimate proof of illness or face illegal‑dismissal liability.
PJI Employees & Workers Union v. PJI, G.R. 190592 (2014)	Pressmen refused directive to work on declared special non‑working day (New Year’s Eve newspaper deadline).	Strike declared illegal; workers could be dismissed for insubordination because employer proved urgent necessity and notice.	Critical‑operations schedules on holidays demand compliance if the order is lawful and reasonable.

9. Best‑Practice Checklist for Employers

Codify a clear holiday‑attendance policy: differentiate between critical and non‑critical positions; state required lead time for leave requests.
Align payroll and HRIS: automatic holiday‑pay triggers linked to attendance logs.
Use progressive discipline: warning → short suspension → long suspension → dismissal; keep case‑to‑case flexibility.
Document everything: duty rosters, proof of employee acknowledgment, copies of NTEs, and minutes of hearings.
Provide channels for emergency notices: hotlines or HR email to curb no‑show incidents and avoid disputes about “willful” absence.

10. Practical Tips for Employees

Know the calendar of regular holidays and special days issued yearly in a Presidential Proclamation.
File leave early—the Labor Code grants no automatic vacation leave on holidays.
Keep proof of exigencies (medical certificates, police reports) when absence is unavoidable.
Respond in writing to every NTE; silence is often construed as waiver.

11. Conclusion

Unauthorized holiday absence can expose an employee to discipline ranging from wage forfeitures to dismissal, but only if the employer meets both substantive (just cause) and procedural (twin‑notice) standards. For employers, the focus should be on clear policies, fair application, and meticulous documentation. For workers, awareness of entitlements and duties—and prompt, honest communication—remain the best defense.

This article reflects Philippine labor law and DOLE issuances up to April 21 2025. It is for informational purposes only and is not a substitute for individualized legal advice.