“AWOL” (absent without official leave) is a workplace term, not a defined legal category on its own. In Philippine labor law, what matters is (a) whether the employee is still employed, (b) whether the absences amount to a just cause for discipline or dismissal, and (c) whether the employer observed procedural due process before ending employment. Those answers determine what the employee can still claim—especially final pay and benefits.

1) AWOL vs. Abandonment vs. Resignation: Why the Label Matters

AWOL (unauthorized absence)

Typically means the employee did not report for work and did not obtain approved leave.
AWOL can be grounds for disciplinary action, and in serious cases may support dismissal under just causes (e.g., willful disobedience, gross and habitual neglect, or abandonment), depending on facts and company rules.

Abandonment (a specific “just cause” concept)

Abandonment is commonly treated as a form of gross neglect of duty and requires two elements (as consistently required in labor rulings):

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

Key point: Mere absence—even prolonged—does not automatically prove abandonment. The employer must show intent to quit.

Resignation

A voluntary act by the employee, generally requiring written notice (customarily 30 days under the Labor Code rule on resignation notice, unless a shorter period is allowed or there’s a justifying reason for immediate resignation).
If an employee simply goes AWOL, that is not automatically resignation.

Practical impact on claims: Even if an employee went AWOL, statutory entitlements already earned (e.g., unpaid wages, prorated 13th month, convertible leave) are generally not forfeited merely because the exit was “bad,” unless a specific benefit is lawfully conditioned and not yet earned/vested.

2) Can an Employer Terminate an AWOL Employee?

Yes, but not instantly and not by assumption alone.

Substantive basis (just cause)

AWOL may be disciplined or dismissed depending on:

Frequency/length of absences,
Company attendance policy and penalties (code of conduct),
Whether the absence is willful or without valid reason, and
Whether the facts support a just cause under the Labor Code (e.g., willful disobedience, gross and habitual neglect, or abandonment).

Procedural due process (critical)

For just-cause termination, employers are generally expected to observe the two-notice rule:

Notice to Explain (NTE) stating the specific acts/omissions and requiring the employee to explain.
Notice of Decision informing the employee of the decision after considering the explanation and any hearing/conference.

A hearing/conference is commonly afforded when requested or when needed to clarify facts.

Why this matters to final pay: Even if dismissal is valid, final pay is still due for amounts already earned. If dismissal is procedurally defective, the employer may face exposure (often in the form of nominal damages in jurisprudence), but that is separate from the obligation to release earned pay.

3) “Final Pay” in the Philippines: What It Usually Includes

“Final pay” (often called last pay) is the sum of amounts still owed to the employee at separation. In practice and under DOLE guidance, employers are generally expected to release final pay within a reasonable period (commonly within 30 days from separation, subject to company policy/CBA and completion of clearance processes, so long as those processes are not used to unreasonably withhold pay).

Final pay commonly includes:

A) Unpaid salary/wages

All earned but unpaid wages up to the last day actually worked (or last day paid/credited, depending on payroll cutoffs).
If the employee was AWOL, no work = no pay for the absent days (unless the absences are later approved/converted to paid leave per policy).

B) Pro-rated 13th month pay

Generally due to covered employees who have earned basic salary during the calendar year.
If employment ends before December, the employee typically receives pro-rated 13th month pay based on basic salary earned during that year.
AWOL days that are unpaid reduce “basic salary earned,” which reduces the prorated 13th month.

C) Cash conversion of leave (where applicable)

Service Incentive Leave (SIL):

The Labor Code provides 5 days SIL for covered employees (subject to common exemptions).
Unused SIL is typically convertible to cash, especially upon separation (common labor standards enforcement practice).

Vacation leave / sick leave beyond SIL:

Not universally mandated by law; depends on company policy/CBA.
Many employers convert unused VL if policy says so; SL conversion varies widely.

D) Separation pay (usually not for AWOL/just cause)

Separation pay is typically due only for:

authorized causes (e.g., redundancy, retrenchment, closure not due to serious losses, etc.), or
as provided by contract/CBA/company policy,
or in limited equitable situations in jurisprudence (fact-specific).

If the employee is dismissed for just cause (including abandonment), separation pay is generally not required, unless company policy/CBA grants it.

E) Commissions and incentives already earned

Commissions that are already earned under the compensation plan are generally payable even if the employee later goes AWOL or is dismissed—unless the plan clearly makes payment conditional on something not yet met (e.g., collection, delivery, completion of a sale cycle) and that condition is lawful and consistently applied.
Incentives tied to measurable achievements already completed are commonly treated as due; “discretionary” incentives are treated differently (see bonuses below).

F) Tax-related adjustments and documents

Withholding tax computations can result in a refund or additional tax due, depending on payroll and year-to-date computations.
Employers typically issue BIR Form 2316 for the year.

G) Return of employee cash deposits (if any)

Some workplaces have refundable deposits (e.g., for uniforms/equipment) if policy allows; repayment depends on the agreement and whether obligations (return of property) were met.

4) Benefits an AWOL Employee Can Still Claim (and What Usually Stops)

Statutory entitlements that are typically still claimable

Even if the employee left AWOL or is dismissed for just cause, the following are commonly still claimable if earned:

Unpaid wages for days actually worked (and other earned wage items).
Pro-rated 13th month pay (based on basic salary earned).
Cash equivalent of unused convertible leave (SIL, and other leave if policy provides).
Earned commissions and other wage-like earnings.
Reimbursement claims that are due under policy (and properly documented), unless offset by valid obligations.

Government benefits (SSS, PhilHealth, Pag-IBIG)

These are not “final pay” items in the usual sense, but the employee retains rights under the systems.
Employer’s duty is to remit correct contributions for covered periods and comply with reporting.
Gaps caused by AWOL/unpaid months can reduce contribution coverage for those months, but prior contributions remain credited.

Benefits that commonly stop or may be lost

HMO coverage: typically ends upon separation or after a grace period per provider/employer policy.
Unvested benefits (e.g., certain stock plans, long-term incentives): usually governed by plan rules and may be forfeited if not vested.
Discretionary bonuses: not automatically demandable unless they have become enforceable (see next section).

5) Bonuses, 14th Month, and Other “Extras”: When Are They Claimable?

In the Philippines, a bonus is generally considered:

Not demandable if truly discretionary (dependent on employer’s generosity, profits, or management prerogative), but
Demandable if it is:
- expressly promised in a contract/CBA,
- part of a consistent and deliberate company practice over time (creating an enforceable obligation),
- or effectively forms part of wages/compensation structure.

AWOL impact: If a bonus is discretionary, the employer can generally deny it. If it is contractual/practiced and the employee has met the conditions (or the conditions are unlawful/unreasonable), then it may be claimable—though employers often dispute eligibility when separation is for cause.

6) Can an Employer Withhold Final Pay Because the Employee Went AWOL?

An employer may have legitimate reasons to delay release briefly (e.g., computing pay, processing clearance), but final pay should not be withheld as a punishment.

Common lawful deductions (subject to rules)

Final pay can be reduced by lawful deductions, such as:

Withholding taxes,
SSS/PhilHealth/Pag-IBIG contributions for covered periods,
Employee loans/cash advances (with documentation),
Pag-IBIG/SSS loan remittance arrangements (where applicable),
Other deductions authorized by law or with the employee’s written authorization, consistent with Labor Code rules on wage deductions.

Unreturned company property and “accountability”

If the employee has unreturned property or shortages:

Employers commonly offset the value if there is a clear, provable accountability and a lawful basis to deduct.
If the liability is disputed, large, or unliquidated, unilateral deduction can be risky. Employers often pursue separate accountability processes or require a signed authorization/clearance acknowledgment.

Damages for failure to render resignation notice

If the employee effectively resigned (not abandoned) but did not render the required notice, the employer may claim damages in principle—but deducting a “penalty” from wages without lawful basis/authorization is problematic. Employers usually need a clear legal/contractual basis and proof of actual damages, and many disputes end up in labor proceedings.

7) Clearance: Is It Required Before Releasing Final Pay?

Clearance is a common practice (return of IDs, equipment, settlement of accountabilities). It is not a license to hold wages indefinitely.

Good practice is:

Set a clear clearance process with timelines.
If the employee is AWOL/unresponsive, document attempts to contact, and proceed with computation.
Release pay through a reasonable method (credited to payroll account, check pick-up with ID verification, or other documented process).

Certificate of Employment (COE): Employees are generally entitled to a COE upon request, and DOLE guidance commonly expects issuance within a short period (often 3 days from request), containing at least the dates of employment and position, unless the employee requests more details.

8) When Does “Separation” Happen for AWOL Cases?

This is often the biggest practical confusion.

If the employee is not formally terminated and did not resign

The employer may still consider the employee “on the rolls” while investigating/processing due process.
In that interim, “final pay” may not be processed because employment is not yet legally treated as ended.

If the employer completes due process and issues a termination notice

Separation date is typically the effective date stated in the termination notice (or as determined by policy and facts).
Final pay is computed from the last payroll period plus final entitlements up to separation.

If the employee later returns and is accepted back

The case may shift to disciplinary action short of dismissal, depending on policy and management discretion.
Final pay may not apply because employment continues.

9) Typical Final Pay Computation for an AWOL Exit (Illustrative Breakdown)

A final pay computation commonly looks like:

Add:

Unpaid salary for last worked days (net of absences)
Overtime/holiday premiums already earned (if any)
Prorated 13th month pay (based on basic salary earned)
Leave conversion cash equivalent (SIL and other convertible leave)
Earned commissions/incentives (per plan rules)
Reimbursements due (approved and documented)

Less:

Withholding tax adjustments
Statutory contributions due (for covered paid periods)
Documented loans/cash advances
Other lawful deductions (authorized by law/employee)

Net = Final Pay

AWOL usually reduces the “Add” side (unpaid absences reduce salary earned) and may increase the “Less” side only if there are legitimate accountabilities.

10) Remedies When Final Pay Is Not Released

Step 1: Written demand and documentation

Request final pay, COE, and breakdown of computation.
Keep records: payslips, time records, employment contract, company policy excerpts, commission computations, messages showing attempts to settle.

Step 2: SENA (Single Entry Approach)

Most labor disputes are routed through conciliation-mediation first.

Step 3: DOLE or NLRC route (depends on issues)

Pure labor standards money claims (e.g., unpaid wages, 13th month, leave conversions) may be pursued through DOLE mechanisms when the employer–employee relationship and entitlement are not seriously disputed.
Cases involving termination disputes/illegal dismissal, complex factual controversies, or reinstatement typically proceed through NLRC processes.

Prescription periods (important)

Money claims arising from employer–employee relations generally prescribe in 3 years from the time the cause of action accrued.
Illegal dismissal actions are commonly treated as prescribing in 4 years (jurisprudentially anchored on injury to rights).

11) Employer Side: Best Practices to Avoid Liability in AWOL Cases

Follow the two-notice rule and document service (last known address/email, courier proof, etc.).
Avoid treating AWOL as automatic resignation; establish facts supporting the chosen ground.
Release final pay on time and provide a computation, even if the exit was contentious.
Ensure deductions are lawful and documented; avoid “penalty deductions.”
Issue COE promptly upon request.

12) Key Takeaways

AWOL is not automatically abandonment, and not automatically resignation.
Even if termination for just cause is valid, the employee is still generally entitled to earned pay and statutory benefits: unpaid wages (for work done), prorated 13th month, and convertible leave (notably SIL), plus earned commissions under the compensation plan.
Separation pay is usually not due for AWOL/abandonment unless a policy/CBA provides it.
Final pay should not be withheld as punishment; deductions must be lawful and supported.
The decisive factors are: ground for separation, due process compliance, and whether the benefit was already earned/vested.