(A Philippine legal article on “absence without leave” and salary release issues in agency/contracting arrangements)

1) The setting: what “agency employment” usually means in practice

In the Philippines, “agency employment” commonly refers to a contracting/subcontracting arrangement where:

You are hired and paid by a contractor/agency (the contractor), and
You are deployed to work at a client company (the principal / end-user).

Legally, your employer is typically the contractor, not the principal—unless the arrangement is an unlawful labor-only contracting setup (discussed below). This distinction matters because wages are primarily owed by the employer, and labor standards obligations attach to whoever is legally the employer (with some joint/solidary consequences depending on the situation).

2) What “AWOL” is (and what it is not)

2.1 “AWOL” is not a single defined Labor Code offense

“AWOL” (absence without official leave) is often used in workplaces as a shorthand for unauthorized absence. In private employment, it generally maps onto any of these concepts:

Habitual absenteeism or tardiness
Failure to report for work without valid reason
Abandonment of work (a specific, high-threshold ground for dismissal)

An employer may treat prolonged unauthorized absence as misconduct, neglect of duty, or abandonment, but the label “AWOL” itself does not automatically equal a valid dismissal. The employer must still prove a valid cause and follow due process.

2.2 AWOL vs. abandonment of work (crucial distinction)

Abandonment is a form of “neglect of duty” that can justify termination, but it is not proven by absence alone. It generally requires two elements:

Failure to report for work or absence without valid reason, and
A clear intention to sever the employer–employee relationship (intent to abandon).

The “intent” element is usually the battleground. If the worker communicates, asks for clearance, files a complaint, seeks final pay, or otherwise shows they still assert employment-related rights, those acts often contradict an intent to abandon.

2.3 AWOL as a disciplinary matter

Unauthorized absence can be a ground for discipline if it violates company policy that is:

Reasonable,
Properly communicated,
Consistently implemented, and
Not contrary to law or public policy.

A single absence may merit a lesser penalty depending on policy and circumstances, while repeated absences may escalate.

3) Due process requirements before termination (even when “AWOL” is claimed)

3.1 Substantive due process: there must be a just or authorized cause

For AWOL-related cases, employers typically invoke just causes, such as:

Serious misconduct,
Willful disobedience,
Gross and habitual neglect of duties,
Fraud or willful breach of trust,
Commission of a crime against the employer, or
Other analogous causes.

Unauthorized absences most often fall under neglect or analogous causes, and if the employer alleges abandonment, it must meet the stricter two-element test.

3.2 Procedural due process: the “two-notice rule” (for just causes)

Even if the employee stopped reporting, the employer is still expected to observe due process:

First notice (Notice to Explain / Charge Sheet)
- States the specific acts/omissions and the rule violated,
- Gives a reasonable opportunity to explain.
Opportunity to be heard
- A written explanation may suffice in many settings; in contested cases, a hearing or conference may be held.
Second notice (Notice of Decision)
- States that the employer has decided to dismiss (or impose another penalty), with reasons.

Service of notices: Employers typically send notices to the employee’s last known address (often by registered mail/courier) and keep proof of service attempts. Lack of response does not erase the employer’s duty to document compliance.

3.3 “No call, no show” doesn’t automatically end employment

In the Philippines, employment generally ends by:

Resignation,
Termination with valid cause and due process,
Expiration of a valid fixed-term contract,
Completion of a specific project (project employment),
Closure/cessation with compliance to authorized cause rules,
Or other lawful modes.

Simply not showing up does not automatically sever employment unless properly treated as abandonment (with proof) and processed.

4) Resignation, AWOL, and immediate resignation

4.1 Resignation: general rule of 30-day notice

Resignation is generally a voluntary act and typically requires the employee to provide prior written notice (commonly 30 days) to allow transition.

4.2 Immediate resignation (without 30 days)

Immediate resignation can be justified in situations commonly associated with:

Serious insult,
Inhuman treatment,
Commission of a crime by the employer/representative against the employee,
Other analogous causes that make continued employment unbearable.

Even where immediate resignation is justified, it is best practice to document reasons and give written notice (even if effective immediately).

4.3 Employer’s common counterclaim: “AWOL” to block release of pay

Some employers label an employee as AWOL to argue:

Forfeiture of certain benefits,
Liability for damages,
Non-release of documents/pays.

As a rule, wages already earned are not forfeitable simply due to AWOL. Certain conditional benefits may be subject to rules (e.g., incentives with eligibility conditions), but salary for work actually performed remains payable.

5) Salary rules: what must be paid, when, and how

5.1 Wages must be paid for work actually performed

If you worked, you are entitled to wages for those days/hours, including:

Basic wage,
Lawful wage differentials,
Overtime/holiday pay/night differential if applicable,
And other wage-related items that are legally mandated or contractually promised.

5.2 Frequency and regularity of payment

Philippine labor standards require wages be paid at least twice a month at intervals not exceeding a set period. With agencies, payroll may be weekly/biweekly, but payment cannot be unreasonably withheld.

5.3 Permissible deductions are limited

Employers cannot freely deduct amounts from wages. Deductions must generally be:

Authorized by law (e.g., SSS/PhilHealth/Pag-IBIG withholding, tax), or
With employee’s written authorization for certain items, or
Allowed under specific DOLE rules (e.g., certain facilities or loan arrangements), and subject to safeguards.

A common issue is “penalty deductions” for AWOL beyond what policy allows or without legal basis. Unilateral or excessive deductions are risky and often unlawful.

6) “Unreleased salary” scenarios in agency employment

Scenario A: The employee rendered work, but the agency withholds pay because the client hasn’t paid the agency

This is a frequent claim in contracting arrangements. In principle, the employer must pay wages regardless of its receivables from the principal. A worker’s wages are not dependent on the client’s payment schedule to the agency.

Scenario B: The worker is “floating”/on standby (no assignment)

In contracting, employees are sometimes placed on temporary off-detail when the client ends or pauses deployment. There are legal boundaries to “floating status,” including time limits and requirements that the arrangement be bona fide and not used to evade security of tenure. During legitimate floating, wage entitlement depends on the nature of the off-detail and governing rules; it is not a blanket “no pay” situation in all cases, and misclassification is common.

Scenario C: The worker stopped reporting (alleged AWOL), and the agency holds the last paycheck “until clearance”

This is also common. Employers often require “clearance” (return of ID/equipment, accountabilities) before final pay. However:

Wages already earned should not be withheld indefinitely merely because clearance is pending.
Reasonable set-offs for proven accountabilities may be handled within legal limits, but the employer must act in good faith, provide accounting, and avoid blanket withholding as leverage.

Scenario D: The worker resigned (with or without notice), and the agency delays final pay, COE, and records

Delays occur due to internal processes, client sign-offs, or accountabilities. In law and policy practice, employers are expected to release final pay within a reasonable period following separation, subject to clearance, but again wages cannot be used as a hostage.

7) Who is liable to pay wages in agency arrangements?

7.1 If the contractor is legitimate and the arrangement is lawful

The contractor is the direct employer and primarily liable for wage payment and labor standards compliance.
The principal may have certain responsibilities depending on the nature of contracting rules and protections, and in some situations can be held accountable to ensure workers are paid (especially where violations occur).

7.2 If the arrangement is labor-only contracting (illegal)

If the “agency” is merely supplying workers and lacks:

Substantial capital or investment, and/or
Control over the means and methods of work,

and the workers perform tasks directly related to the principal’s business under the principal’s control, the law may treat the principal as the real employer. Consequences can include:

Principal deemed employer,
Liability for unpaid wages and benefits, and
Other administrative/civil liabilities.

Determining lawful job contracting vs labor-only contracting is fact-specific: who controls the work, who disciplines, who sets schedules, who provides tools/equipment, who supervises day-to-day, and what the contract and actual practice show.

8) Can an employer withhold salary because of AWOL?

8.1 Earned wages: generally no forfeiture

As a baseline rule: salary for days already worked is due. AWOL does not retroactively erase wages that were earned.

8.2 Wages for days not worked: no pay

If you were absent without pay, the employer does not owe wages for those absent days—unless you used leave credits or there is a paid-leave entitlement that applies.

8.3 Deductions/offsets for damages or “training bonds”

Employers sometimes try to offset unreleased salary with:

alleged penalties,
liquidated damages,
training bonds,
unreturned equipment,
or cash advances.

Offsets must be handled cautiously:

There must be a valid basis (law, contract, or written authorization),
The amount must be specific and provable,
The employee must be given a chance to contest,
And deductions must not violate wage protection rules.

Blanket “we won’t release your salary until you pay X” without proper process is legally vulnerable.

9) Final pay and separation benefits: what may be included

Final pay typically includes, as applicable:

Unpaid wages up to last day worked,
Pro-rated 13th month pay,
Unused service incentive leave conversion (if covered and accrued),
Refunds of deposits (if validly collected and refundable),
Other earned benefits under policy/contract/CBA.

Not everyone is automatically entitled to separation pay; it depends on the cause of separation and applicable rules. For example:

Authorized cause terminations (redundancy, retrenchment, closure not due to serious losses, etc.) may require separation pay,
Just cause terminations generally do not.

10) Documents: COE, payslips, and employment records

10.1 Certificate of Employment (COE)

Employees commonly request COE upon separation. COE typically states:

Dates of employment,
Position/title,
And sometimes last salary (if requested and company practice allows, but not always required).

10.2 Payslips and payroll records

Payslips are important evidence for wage claims. Agencies should maintain payroll records; workers should keep:

Payslips,
Time records (DTR, biometrics logs),
Deployment memos,
Work schedules,
Screenshots of timekeeping apps (when used),
Messages assigning shifts/tasks,
And any wage-related communications.

11) Common disputes and how they are evaluated

11.1 “AWOL” used to justify non-payment

Key questions usually become:

Did the employee actually work during the period being withheld?
Are there pending accountabilities, and are they quantified and proven?
Was there a lawful deduction authorization?
Did the employer follow due process if termination is claimed?

11.2 “I wasn’t paid because the client didn’t remit”

This is usually treated as an internal business risk between principal and contractor; it does not defeat a worker’s wage claim against the employer.

11.3 “The worker is not our employee, they’re the agency’s”

If the worker files against the principal, the principal may deny employment. The deciding factors turn heavily on:

Control test (supervision, discipline, work methods),
Economic realities,
Contracting registration/compliance indicators,
And actual on-the-ground setup.

11.4 Constructive dismissal angle

If the “AWOL” label masks an employer action that effectively forces the worker out (e.g., no work assignment, demotion, pay cuts, harassment, refusal to schedule), the worker may allege constructive dismissal. The analysis is again fact-specific.

12) Enforcement and remedies (practical legal pathways)

12.1 Administrative and quasi-judicial options

Workers seeking unpaid wages typically proceed through labor mechanisms such as:

DOLE labor standards enforcement / Single Entry Approach (SEnA) for a speedy conciliation-mediation track, and/or
NLRC (or the appropriate labor tribunal route) for adjudication of monetary claims and illegal dismissal issues, depending on the nature and complexity of claims.

Which forum applies depends on the claim’s character (labor standards vs termination dispute) and current procedural rules.

12.2 Possible outcomes

Depending on proof and findings, remedies may include:

Payment of unpaid wages and wage differentials,
Payment of 13th month, leave conversions, and other due benefits,
Reinstatement or separation pay in lieu (if illegal dismissal is found),
Backwages (if illegal dismissal is found),
Damages and attorney’s fees in appropriate cases.

13) Evidence checklist for workers (and employers)

13.1 For workers claiming unreleased salary

Employment contract with the agency (and any deployment contract),
IDs, assignment memos, job orders,
Payslips and bank transfer screenshots,
Time records, schedules, biometrics logs,
Messages/emails with supervisors,
Incident reports re: absences (medical certificates, messages explaining absence),
Demand letters or requests for payroll computation,
Clearance forms and proof of return of equipment (if any).

13.2 For employers alleging AWOL/abandonment

Company policy on attendance and discipline,
DTR/bio logs and absence reports,
Notice to Explain and proof of service,
Records of attempts to contact employee,
Hearing/conference documentation (if held),
Notice of Decision,
Computation of final pay and accounting of lawful deductions,
Proof of accountabilities (inventory/issuance logs, incident reports).

14) Key takeaways in Philippine agency employment disputes

AWOL is not a magic word: it does not automatically equal valid dismissal or wage forfeiture.
Abandonment requires intent: absence alone is not enough.
Due process still applies before termination for just causes, even if the worker is absent.
Earned wages must be paid: employers cannot withhold salary already earned as leverage for clearance or to punish AWOL.
Deductions are regulated: offsets for alleged liabilities must have a lawful basis and proof.
Agency vs principal liability depends on legality of contracting and actual control: misclassified arrangements can shift liability to the principal.

15) Practical compliance notes for agencies and principals (risk reduction)

Use clear deployment documentation and timekeeping protocols.
Ensure disciplinary policies are properly published and consistently enforced.
Document notice service meticulously in AWOL/abandonment cases.
Release final pay promptly with transparent accounting; treat clearance as an orderly process, not a wage “hostage” mechanism.
Maintain contracting compliance to avoid labor-only contracting findings.
Align supervision and control structures with lawful job contracting requirements (if that is the intended model).

16) Limits of the topic and frequent misconceptions

“AWOL means no final pay.” Incorrect as to earned wages.
“If you don’t show up for a week, you’re automatically terminated.” Not automatically; termination must be grounded on cause and due process.
“The client is always liable.” Not always; liability depends on the nature of contracting and the facts of control and compliance.
“Clearance is required by law, so we can hold wages indefinitely.” Clearance is a common policy tool, but wage protection principles restrict abusive withholding.

17) Glossary (quick reference)

AWOL: Unauthorized absence; workplace term, not a singular codified offense in private employment.
Abandonment: Just cause involving absence plus intent to sever employment.
Contractor/Agency: Entity that hires and pays workers, supplies services to a principal.
Principal/Client: End-user company where workers are deployed.
Labor-only contracting: Illegal contracting that supplies workers without substantial capital/control; principal may be deemed employer.
Just cause: Employee-fault grounds for termination requiring due process.
Authorized cause: Business/economic grounds for termination, with different procedural and monetary consequences.
Final pay: Amount due upon separation (unpaid wages, prorated benefits, etc.).