Are AWOL Employees Still Entitled to 13th Month Pay and Back Wages Philippines

If you went AWOL from your job in the Philippines, or you are dealing with an employee who stopped reporting for work without notice, one of the biggest concerns is usually money — specifically the 13th month pay and whether any back wages are still due. Philippine labor law protects certain earned benefits even when employment ends because of absence without official leave (AWOL). At the same time, back wages are a remedy tied strictly to illegal dismissal, which does not automatically apply to every AWOL situation.

This article explains exactly what the law says, how benefits are computed, what employers must do, and the practical steps you can take to claim what is rightfully yours.

What AWOL and Abandonment of Work Actually Mean

AWOL simply means an employee is absent from work without approved leave or valid reason. It is not, by itself, a ground for automatic termination.

Under Philippine jurisprudence, abandonment of work — which can justify termination for just cause — requires two elements to exist at the same time:

  • The employee failed to report for work or was absent without a valid or justifiable reason.
  • There is a clear intention to sever the employer-employee relationship, shown by overt acts (for example, completely ignoring company notices, failing to respond to calls or messages, or taking another job without any communication).

Mere prolonged absence, even for weeks, is not enough. The employer carries the burden of proving both elements. Many cases fail at the Labor Arbiter or NLRC level because the employer only showed absence and skipped the required process.

Are AWOL Employees Still Entitled to 13th Month Pay?

Yes. Employees who go AWOL and are later separated from service remain entitled to a pro-rated 13th month pay for the period they actually worked during the calendar year.

The legal basis is Presidential Decree No. 851 (1975), as implemented by the Department of Labor and Employment (DOLE) through its Bureau of Working Conditions guidelines and Labor Advisory No. 21-20 (and related issuances). The law covers all rank-and-file employees in the private sector who have rendered at least one month (or 30 calendar days) of service in a calendar year, regardless of employment status — regular, probationary, contractual, or project-based.

Importantly, DOLE rules and consistent Supreme Court jurisprudence confirm that resignation, retirement, or termination for any cause (including just causes such as abandonment or gross neglect) does not forfeit the proportionate 13th month pay already earned. The benefit is based on actual service rendered, not on perfect attendance or how the employment relationship ended.

How 13th Month Pay Is Computed

The 13th month pay is equivalent to one-twelfth (1/12) of the total basic salary earned by the employee within the calendar year.

  • Only basic salary is included. This covers regular wages for services rendered. It generally excludes allowances (unless integrated into basic pay by company practice or agreement), overtime pay, holiday pay, night differential, and the cash equivalent of unused leaves.
  • If you worked only part of the year, you receive the pro-rated amount corresponding to your actual earnings up to your last day of work or the effective date of termination.
  • Example: An employee with a ₱18,000 monthly basic salary who worked fully from January to June (₱108,000 total basic earned) and then went AWOL would be entitled to ₱108,000 ÷ 12 = ₱9,000 as proportionate 13th month pay.

Absences without pay during the period you were present simply reduce the total basic salary earned — they do not disqualify you from the benefit for the days you did work.

What About Back Wages?

Generally, no. Back wages are awarded as a consequence of illegal dismissal under Article 279 of the Labor Code. They compensate the employee for lost earnings from the time compensation was withheld until actual reinstatement (or until the finality of the decision if reinstatement is no longer feasible).

When an employer validly terminates employment for just cause — such as properly proven abandonment of work — and follows due process, there is no illegal dismissal. Consequently, there are no back wages, no reinstatement, and no separation pay (separation pay applies to authorized causes like redundancy or closure, not just causes).

However, back wages (plus possible reinstatement or separation pay in lieu) become available if:

  • The employer fails to prove the two elements of abandonment.
  • The employer skips or botches the required due process.
  • The absence had a valid reason (serious illness with medical proof, family emergency, or non-payment of wages by the employer) and the employee can show they did not intend to abandon the job.

In borderline cases, the National Labor Relations Commission (NLRC) or courts often look at whether the employee made any effort to communicate or return, and whether the employer made reasonable attempts to reach the employee.

How Employers Must Handle AWOL Cases (Due Process Requirements)

Even when an employee is clearly AWOL, the employer cannot simply declare the employee terminated or treat the position as abandoned. Philippine law requires strict observance of procedural due process — commonly called the twin-notice rule:

  1. First Notice (Notice to Explain): The employer must issue a written notice stating the specific acts or omissions constituting the charge (AWOL or abandonment), the facts supporting it, and the possible consequences. The employee is given a reasonable period — usually at least five (5) days — to submit a written explanation and supporting evidence.
  2. Hearing or Conference: If the employee requests it or the circumstances warrant, an opportunity to be heard must be provided.
  3. Second Notice (Notice of Termination): Only after considering the employee’s explanation (or lack thereof) may the employer issue a written decision terminating employment. This notice must clearly state the reasons, the evidence considered, and the effective date.

Failure to follow this process can turn a potentially valid just-cause termination into an illegal dismissal, exposing the employer to liability for back wages, nominal damages, and possibly attorney’s fees.

Employers are also advised to send notices to the employee’s last known address, email, or phone number and to document all attempts.

Final Pay (Last Pay) After AWOL or Termination

Even in cases of valid termination for just cause, you are entitled to final pay. This includes:

  • Unpaid wages for actual days worked up to the last day or effective termination date.
  • Pro-rated 13th month pay.
  • Pro-rated conversion of unused Service Incentive Leave (SIL) credits, if convertible under company policy or law.
  • Other accrued benefits under the employment contract, CBA, or company practice.

Timeline: Under DOLE Labor Advisory No. 06, Series of 2020, the final pay must be released within thirty (30) calendar days from the date of separation or termination, unless a more favorable company policy or CBA provides for earlier release. Clearance procedures are allowed but cannot be used to delay payment beyond this period.

Employers may make lawful deductions (withholding tax, SSS/Pag-IBIG/PhilHealth contributions or loans with proper authorization, and proven company losses or debts after due process). Arbitrary “penalties” or blanket deductions for AWOL are not allowed and can themselves become the subject of a labor complaint.

You are also entitled to a Certificate of Employment (COE) within three (3) days from your written request. It should state the period of employment and the nature of work performed; it cannot contain negative remarks that are not factual.

Common Pitfalls and Real-Life Scenarios

Many disputes arise because one or both parties skip basic steps:

  • An employee goes AWOL due to unpaid wages or alleged harassment, then the employer treats it as abandonment without investigating — this often leads to a finding of illegal dismissal or at least procedural violations.
  • An employer withholds the entire final pay or deducts a full month’s salary as “liquidated damages” for AWOL — this is usually illegal. Deductions must have a clear legal or contractual basis and follow due process.
  • An employee with a valid medical or family reason fails to submit proof or respond to the NTE — the employer may still prevail if proper notices were sent.
  • Prolonged silence from both sides: The longer the employee stays completely unreachable and the employer fails to issue notices, the muddier the case becomes.

Foreign employees working in the Philippines enjoy the same labor protections regarding wages and benefits. However, they must also comply with immigration and work permit rules; violations on either side can complicate claims.

How to Claim Your Unpaid 13th Month Pay or Final Pay

If your employer refuses or delays payment of earned benefits:

  1. Send a written demand letter (via email or registered mail) stating the amounts due, the legal basis, and a reasonable deadline (e.g., 5–7 days).
  2. If there is no satisfactory response, file a complaint through the DOLE Single Entry Approach (SEnA) at the nearest DOLE Regional or Field Office. SEnA is a free, mandatory conciliation-mediation process designed to settle disputes quickly.
  3. If SEnA fails or the claim involves illegal dismissal or larger amounts, file a formal complaint with the National Labor Relations Commission (NLRC). Money claims generally prescribe after three (3) years from the time the cause of action accrued.

Keep copies of your payslips, employment contract, attendance records (if any), and all communications with the company. These documents strengthen your position significantly.

You can also call the DOLE Hotline at 1349 for initial guidance.

Frequently Asked Questions

Can my employer refuse to give me 13th month pay just because I went AWOL?
No. As long as you worked at least one month in the calendar year, you are entitled to the pro-rated amount based on your actual basic salary earned. AWOL or termination for just cause does not forfeit this statutory benefit.

How is my 13th month pay calculated if I only worked for part of the year?
It is one-twelfth of the total basic salary you actually received for the days you worked. Only basic pay counts; most allowances and overtime are excluded unless they form part of your regular basic salary.

Is AWOL the same as abandonment of work?
No. AWOL is simply being absent without leave. Abandonment requires both unjustified absence and clear proof that you intended to permanently sever the employment relationship. Employers must prove both elements.

Will I receive back wages if I was terminated for going AWOL?
Usually not, if the employer can prove abandonment and followed the twin-notice due process rule. Back wages are awarded only when dismissal is found illegal.

How long does my former employer have to release my final pay?
Under DOLE Labor Advisory No. 06-20, final pay must be released within 30 calendar days from separation, unless a better company policy or CBA applies. Clearance cannot unreasonably delay this.

Can my employer deduct penalties or one month’s salary from my final pay because of AWOL?
Generally no. Arbitrary penalties or excessive deductions are prohibited. Only lawful deductions (taxes, authorized loans, proven losses after due process) are allowed.

What if I had a valid reason for my absence (sickness, emergency) but was still marked AWOL?
Submit proof (medical certificate, etc.) as soon as possible, preferably in response to any Notice to Explain. Valid reasons can prevent a finding of abandonment or illegal dismissal.

Do probationary or contractual employees also get pro-rated 13th month pay?
Yes. The entitlement under PD 851 applies to all rank-and-file employees regardless of status, as long as they meet the one-month service requirement in the calendar year.

Where can I go if my employer ignores my demand for final pay?
Start with a written demand, then file at DOLE for SEnA conciliation. Unresolved money claims or illegal dismissal cases go to the NLRC. You have three years to file most money claims.

Does going AWOL affect my Certificate of Employment?
The COE must state the period of employment and nature of work. It should not include baseless negative remarks. You can request it in writing and follow up if it is not issued within three days.

Key Takeaways

  • You remain entitled to pro-rated 13th month pay even after going AWOL, based on actual basic salary earned during the calendar year.
  • Back wages are available only if the termination is ruled illegal (lack of just cause or failure of due process).
  • Employers must follow the twin-notice rule before terminating for abandonment; skipping it weakens their position.
  • Final pay (unpaid wages + pro-rated 13th month + other accruals) must be released within 30 days under DOLE rules.
  • Arbitrary withholding or penalty deductions from earned benefits are not allowed and can lead to separate labor complaints.
  • Document everything and act promptly — respond to notices when possible and file claims within the three-year prescriptive period if needed.

Understanding these rules helps you protect your earned wages and benefits while giving employers a clear roadmap for lawful separation. If your situation involves specific facts (medical issues, prior disputes, or prolonged silence from both sides), the outcome can depend heavily on evidence and how the due process steps were handled.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.