Letter to an Attorney

Dear Attorney,

Good day. I hope this message finds you well. I would like to seek your professional advice regarding a concern about employment practices. Specifically, I would like to understand if there are penalties or charges associated with being absent from work under Philippine labor laws.

Could you kindly elaborate on whether such charges are legally permissible, the circumstances under which they may apply, and any potential remedies available to employees? I want to ensure that any actions taken by an employer are compliant with Philippine labor regulations.

Thank you very much for your guidance on this matter.

Sincerely,
A Concerned Employee

Comprehensive Legal Analysis of Absences from Work in the Philippines

Under Philippine labor laws, the treatment of employee absences and whether penalties or charges may apply involves several considerations, including provisions of the Labor Code of the Philippines, jurisprudence, company policies, and any agreements between employers and employees. This article delves into the legal framework governing employee absences, focusing on lawful practices, employees' rights, and employers' prerogatives.

1. Absences and Employer Prerogatives

Employers in the Philippines have the right to regulate work hours and attendance, as part of their management prerogative. This includes setting attendance policies, imposing penalties for unauthorized absences, and ensuring the efficient operation of the business. However, such prerogatives must comply with labor laws and respect employees' rights.

a. Authorized vs. Unauthorized Absences

Authorized Absences: These occur when an employee is excused from reporting to work due to valid reasons, such as sick leave, vacation leave, or other permitted absences under company policy or labor laws. Employers cannot impose penalties for absences covered by proper authorization or legal entitlements.
Unauthorized Absences: These occur when an employee fails to report to work without prior approval or a valid reason. Employers may take disciplinary action for such absences, subject to due process requirements.

b. Employer Policies and Contracts

Many employers include attendance-related provisions in their company policies or employment contracts. These may specify the conditions under which absences are considered unauthorized, the documentation required to justify absences (e.g., medical certificates), and the corresponding penalties.

2. Legal Framework for Absence-Related Charges

a. Deductions from Wages

Article 113 of the Labor Code prohibits employers from making unauthorized deductions from an employee’s wages, except in specific instances:

Deductions for insurance, union dues, or savings plans authorized by the employee.
Deductions authorized by law, such as taxes or SSS contributions.

While wage deductions for absences may be permissible when an employee does not render work (i.e., no work, no pay principle), any fines, penalties, or additional charges imposed for absences must comply with labor law requirements.

b. Prohibited Acts

Article 116 of the Labor Code prohibits employers from requiring employees to pay deposits or making deductions as a form of penalty, except under lawful circumstances. Penalizing absences through monetary charges may be challenged as an illegal deduction if it is not authorized by law or contractually agreed upon.

3. Lawful Sanctions for Absences

Employers may take disciplinary measures for absences, including:

Wage Deduction: Based on the no-work, no-pay principle, an employee is not entitled to compensation for days they do not work, unless the absence falls under paid leave benefits.
Disciplinary Action: Employers may impose penalties such as verbal or written warnings, suspension, or termination for habitual absenteeism, provided these sanctions comply with company policy and due process.
Forfeiture of Benefits: Employees who are absent without authorization may lose attendance-based incentives or bonuses, if these are contingent on perfect attendance or similar criteria.

a. Unauthorized Penalties

Employers cannot impose monetary penalties or charges beyond lawful wage deductions unless explicitly stated in company policies or contracts. Imposing such penalties without legal or contractual basis may be grounds for a labor complaint.

4. Absences Covered by Legal Entitlements

a. Paid Leaves

Employees are entitled to certain forms of paid leave under the Labor Code and other laws, including:

Service Incentive Leave (SIL): Under Article 95 of the Labor Code, employees who have rendered at least one year of service are entitled to five days of paid leave annually.
Maternity and Paternity Leave: Covered under the Expanded Maternity Leave Law (RA 11210) and Paternity Leave Act (RA 8187).
Special Leaves: Such as solo parent leave under RA 8972 or leaves for victims of violence under RA 9262.

b. Justified Absences

Absences due to illness, emergencies, or other valid reasons may be excused if the employee provides proper documentation, such as medical certificates. Employers are discouraged from penalizing employees for such justified absences.

c. Force Majeure and Public Holidays

Absences due to force majeure (e.g., natural disasters) or mandatory holidays cannot be penalized unless the employee is required to work and refuses without valid cause.

5. Jurisprudence on Absence-Related Disputes

Philippine courts have consistently ruled that:

Penalties for Absences Must Be Reasonable: In PAL v. NLRC (G.R. No. 123294), the Supreme Court emphasized the need for disciplinary measures to align with company policies and labor laws.
Due Process Must Be Observed: In King of Kings Transport v. Mamac (G.R. No. 166208), the Court held that employees must be given notice and an opportunity to explain before sanctions are imposed for unauthorized absences.

6. Filing Complaints for Unlawful Charges

a. Department of Labor and Employment (DOLE)

Employees who believe they were penalized unlawfully for absences may file a complaint with DOLE for illegal deductions or unfair labor practices.

b. Labor Arbitration

If disputes escalate, employees may bring their case before the National Labor Relations Commission (NLRC). Monetary penalties for absences without legal or contractual basis may be subject to reimbursement.

7. Employer Best Practices

To avoid legal disputes, employers should:

Clearly Define Policies: Ensure attendance and absence-related policies are documented in employee handbooks.
Follow Due Process: Implement penalties only after providing notice and conducting a fair investigation.
Consider Humanitarian Factors: Be flexible in cases of genuine emergencies or unforeseen circumstances.

8. Employee Best Practices

Employees can protect themselves by:

Understanding Company Policies: Familiarize themselves with attendance-related rules and benefits.
Documenting Absences: Retain records, such as medical certificates, to justify absences.
Seeking Legal Advice: Consult a labor lawyer if penalties for absences seem excessive or unwarranted.

Conclusion

While employers may impose penalties for unauthorized absences, such actions must comply with labor laws and respect employees' rights. Monetary charges beyond lawful wage deductions are generally prohibited unless expressly provided for in company policies or employment agreements. Both employers and employees must exercise fairness, transparency, and compliance with due process to maintain a harmonious working relationship.

Employees who face disputes over absence-related penalties are encouraged to seek legal recourse through DOLE or the NLRC to protect their rights.

This analysis serves as a comprehensive guide on absences in the Philippine workplace.