If you went AWOL and your employer says, “Wala kang 13th month pay,” the important point is this: AWOL does not automatically erase your earned 13th month pay. In the Philippines, 13th month pay is a statutory benefit for covered rank-and-file employees. Even if you resigned, were terminated, or stopped reporting for work, you may still be entitled to the proportionate 13th month pay based on the basic salary you actually earned during the calendar year. What your employer may do is require clearance, check unreturned company property, and make lawful deductions for proven accountabilities — but a blanket forfeiture simply because you were AWOL is a different matter.
What “AWOL” Means Under Philippine Labor Law
“AWOL” means absence without leave. It usually refers to an employee who stopped reporting for work without approved leave, without notice, or without a valid explanation.
But AWOL is not a magic word that instantly removes all employee rights. In labor cases, employers usually treat prolonged AWOL as possible abandonment of work or as a violation of company rules on attendance.
The Supreme Court has repeatedly held that abandonment requires more than mere absence. There must generally be:
- Failure to report for work or absence without valid or justifiable reason, and
- A clear intention to sever the employer-employee relationship, shown by overt acts.
The Court has said that abandonment must be supported by clear proof of a deliberate and unjustified intent to discontinue employment, not just by the fact that the employee failed to report for work. (Lawphil)
This matters because some employees are labeled “AWOL” even when the situation is more complicated, such as:
- They were not allowed to enter the workplace.
- They were waiting for a schedule or assignment.
- They had a medical or family emergency.
- They were constructively dismissed.
- They were told verbally not to report anymore.
- They filed a complaint and the employer later claimed they abandoned work.
So, yes, AWOL can have serious consequences. It can support disciplinary action or even termination if proven. But it does not automatically mean the employee forfeits all earned wages and statutory benefits.
Can an Employer Withhold 13th Month Pay After AWOL?
The practical answer is:
An employer generally cannot permanently deny your earned 13th month pay merely because you went AWOL. However, the employer may temporarily process it together with final pay, require clearance, and deduct or withhold amounts connected to lawful and proven accountabilities.
The distinction is important.
| Employer action | Usually allowed? | Explanation |
|---|---|---|
| Refusing to pay any 13th month pay because the employee was AWOL | Usually no | AWOL does not automatically cancel statutory 13th month pay already earned. |
| Computing only the proportionate 13th month pay up to the last day actually worked or paid | Yes | 13th month pay is based on total basic salary earned during the calendar year. |
| Requiring clearance before release of final pay | Generally yes | Clearance procedures are recognized as a standard employer practice. |
| Deducting the value of unreturned company property or cash advances | Possibly yes | The accountability must be real, due, documented, and lawfully deductible. |
| Withholding the entire final pay indefinitely | Risky and usually disputable | DOLE rules require final pay release within the applicable period, subject to lawful issues. |
| Denying separation pay after valid just-cause termination for abandonment | Usually yes | Separation pay is generally not required for just-cause termination unless policy, contract, CBA, or settlement provides otherwise. |
Legal Basis for 13th Month Pay in the Philippines
The main law is Presidential Decree No. 851, which requires covered employers to pay 13th month pay. The original decree used an old salary ceiling, but Memorandum Order No. 28, Series of 1986 modified the rule so that employers must pay 13th month pay to all rank-and-file employees not later than December 24 of every year. (Lawphil)
DOLE’s current public guidance also states that covered rank-and-file employees who worked for at least one month during the calendar year are entitled to 13th month pay. (BWC Dole)
Who is entitled to 13th month pay?
In general, the benefit applies to rank-and-file employees in the private sector who worked for at least one month during the calendar year.
This can include:
- Regular employees
- Probationary employees
- Project employees
- Seasonal employees
- Fixed-term employees
- Part-time employees
- Employees paid daily, weekly, or monthly
- Employees who resigned or were terminated before December, if they earned basic salary during the year
The key question is usually not whether you were still employed on December 24. The key question is whether you were a covered employee who earned basic salary during the calendar year.
Who may be excluded?
Common exclusions include:
- Managerial employees, depending on actual duties and authority
- Certain government employees covered by different rules
- Some workers paid purely on commission, boundary, or task basis, depending on whether they receive a guaranteed wage
- Household workers or kasambahays, who have their own statutory benefits under the Kasambahay Law
- Persons who are not employees, such as genuine independent contractors
Labels are not controlling. If a company calls someone an “independent contractor” but controls their work like an employee, the real relationship may still be questioned.
How 13th Month Pay Is Computed After AWOL
The standard formula is:
Total basic salary earned during the calendar year ÷ 12 = 13th month pay
“Basic salary” usually means the regular pay for work performed. It generally excludes items such as:
- Overtime pay
- Holiday pay
- Premium pay
- Night shift differential
- Allowances not treated as part of basic salary
- Unused leave conversion, unless company policy treats it differently
- Bonuses not integrated into basic salary
Example 1: Monthly employee who went AWOL in August
Suppose Ana earned ₱25,000 monthly basic salary from January to July, then stopped reporting in August and was not paid after July.
Her estimated 13th month pay is:
| Item | Amount |
|---|---|
| Basic salary earned January to July | ₱175,000 |
| Divide by 12 | ÷ 12 |
| Proportionate 13th month pay | ₱14,583.33 |
Even if Ana went AWOL, the employer should not simply say “zero 13th month pay.” The proper approach is to compute based on the basic salary actually earned, then address any lawful accountabilities separately.
Example 2: Daily paid employee with unpaid absences
Suppose Ben earned a total basic salary of ₱180,000 from January to October, but had several unpaid absences and then went AWOL in November.
His 13th month pay is:
₱180,000 ÷ 12 = ₱15,000
The unpaid absences are already reflected because they reduced his total basic salary earned. The employer should not double-penalize him by both excluding unpaid days and forfeiting the entire 13th month pay.
Example 3: Employee with unreturned laptop
Suppose Carla’s computed final pay includes:
| Item | Amount |
|---|---|
| Unpaid salary | ₱8,000 |
| Pro-rated 13th month pay | ₱18,000 |
| Convertible unused leave | ₱5,000 |
| Total final pay before deductions | ₱31,000 |
If Carla failed to return a company laptop, the employer may require clearance and may assert a lawful accountability. But the employer should be able to show the basis for the deduction or withholding: property records, acknowledgment receipt, value, demand to return, and company policy.
A vague statement like “AWOL ka, forfeited lahat” is much weaker than a documented statement like “Your final pay is ₱31,000, subject to your return of Asset No. ___ or deduction of its depreciated value of ₱___ under the signed accountability form.”
13th Month Pay vs. Final Pay vs. Separation Pay
Many disputes happen because employees and HR use these terms loosely.
| Term | Meaning | Is it still possible after AWOL? |
|---|---|---|
| 13th month pay | Statutory benefit equal to at least 1/12 of basic salary earned in the year | Yes, if earned and employee is covered |
| Final pay / last pay / back pay | Total amount due upon separation, such as unpaid wages, pro-rated 13th month, leave conversion, tax refunds, deposits, and other amounts due | Yes, subject to clearance and lawful deductions |
| Separation pay | Additional pay required in certain authorized-cause terminations or by policy/contract/CBA | Usually no for valid just-cause termination like proven abandonment, unless a company rule or agreement grants it |
DOLE Labor Advisory No. 06, Series of 2020 states that final pay refers to the total wages or monetary benefits due to an employee regardless of the cause of separation, including pro-rated 13th month pay, and should generally be released within 30 days from separation or termination unless a more favorable policy or agreement applies. (dole.gov.ph)
Can the Employer Require Clearance Before Releasing 13th Month Pay?
Yes, employers may generally require clearance, especially when an employee has resigned, been terminated, or stopped reporting for work.
The Supreme Court in Milan v. NLRC, G.R. No. 202961, February 4, 2015 recognized that requiring clearance before release of last payments is a standard procedure. Clearance procedures exist to ensure that company property in the possession of a separated employee is returned before departure. (Supreme Court E-Library)
But Milan also shows the nuance. The employer must be dealing with a real accountability connected to the employment relationship. The Supreme Court discussed the general prohibition against withholding wages, the rules on deductions, and the Civil Code rule that withholding wages may be made for a debt due. (Supreme Court E-Library)
So the better rule is:
Clearance may regulate the release of final pay, but it should not be used as a blanket excuse to confiscate earned statutory benefits.
What counts as a legitimate accountability?
Common examples include:
- Unreturned laptop, phone, tools, ID, access card, or uniform
- Company cash advance
- Unliquidated revolving fund
- Salary loan or employee loan
- Damage to company property, if properly established
- Overpayment of salary
- Training bond, if valid and enforceable
- Unreturned documents or equipment issued under acknowledgment receipt
What is usually questionable?
Be careful when the employer claims deductions for:
- “Damages” without proof
- Arbitrary penalties not found in policy or contract
- Liquidated amounts with no computation
- Training bonds that are excessive or punitive
- “AWOL penalty” equal to the entire final pay
- Deductions not explained in writing
- Deductions for alleged losses not clearly caused by the employee
Does AWOL Mean You Were Validly Terminated?
Not always.
Under Article 297 of the Labor Code, an employer may terminate employment for just causes such as serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, willful breach of trust, commission of a crime against the employer or representatives, and analogous causes. (Labor Law PH Library)
AWOL or abandonment is usually treated as a just-cause issue. But even for just cause, the employer must observe procedural due process.
The Supreme Court’s King of Kings Transport, Inc. v. Mamac doctrine explains the two-notice requirement in employee dismissal: the employer must give a first written notice specifying the charges and giving the employee an opportunity to explain, then a second written notice of termination if dismissal is justified. (Lawphil)
In practice, a proper AWOL termination often involves:
- Return-to-work order or notice to explain
- Reasonable opportunity for the employee to answer
- Administrative conference or hearing when appropriate
- Evaluation of the explanation and evidence
- Written notice of decision or termination
- Processing of final pay and certificate of employment
If the employer skipped due process, the termination may be challenged. But even when dismissal is valid, earned monetary benefits such as unpaid salary and pro-rated 13th month pay remain separate issues.
What You Should Do If Your 13th Month Pay Is Withheld After AWOL
1. Clarify your employment status in writing
Send a short written message to HR asking:
- Am I still employed, suspended, resigned, or terminated?
- What is my recorded last day of work?
- Was I issued a notice to explain or notice of termination?
- When can I process clearance?
- What is the computation of my final pay, including pro-rated 13th month pay?
Use email, text, Viber, Messenger, or any platform where you can keep a record.
2. Ask for a written final pay computation
A useful final pay computation should show:
| Item | What to check |
|---|---|
| Unpaid salary | Dates covered and daily/monthly rate |
| Pro-rated 13th month pay | Total basic salary earned ÷ 12 |
| Leave conversion | Only if required by law, policy, contract, or CBA |
| Deductions | Specific basis, amount, and supporting documents |
| Tax adjustment | Any refund or withholding |
| Net amount payable | Amount and release date |
Do not rely only on verbal statements like “forfeited” or “hold muna.” Ask for the computation.
3. Complete clearance if you can
Even if you disagree with the employer, completing clearance often speeds up release.
Return company property with proof:
- Ask for a receiving copy.
- Take photos of returned items.
- Keep courier receipts if sent by delivery.
- Screenshot messages confirming receipt.
- Request acknowledgment of returned assets.
If you cannot go personally, ask if the company accepts courier return or an authorized representative.
4. Make your own 13th month pay estimate
Get your payslips or payroll records and add only your basic salary earned during the calendar year.
Then divide by 12.
Example:
| Month | Basic salary earned |
|---|---|
| January | ₱20,000 |
| February | ₱20,000 |
| March | ₱20,000 |
| April | ₱20,000 |
| May | ₱20,000 |
| June | ₱20,000 |
| July | ₱10,000 |
| Total | ₱130,000 |
| 13th month pay | ₱10,833.33 |
This gives you a concrete figure to discuss with HR or DOLE.
5. Send a formal demand or follow-up
Keep it calm and factual. For example:
I respectfully request the release of my final pay, including my pro-rated 13th month pay based on the basic salary I earned during the calendar year. Please also provide the written computation and any basis for deductions or accountabilities, if any. I am willing to complete clearance and return any company property properly recorded under my name.
This type of message is better than arguing emotionally. It creates a paper trail.
6. File a Request for Assistance with DOLE SEnA
If the employer still refuses to release or compute your 13th month pay, you can file a Request for Assistance (RFA) through DOLE’s Single Entry Approach or SEnA.
SEnA is a mandatory conciliation-mediation process for labor and employment disputes. Republic Act No. 10396 strengthened the use of conciliation-mediation, and DOLE describes SEnA as a 30-day mandatory process for labor issues. (Department of Labor and Employment)
You may file through the DOLE office with jurisdiction over the workplace or through DOLE’s online Request for Assistance system. DOLE’s online portal states that an RFA may be filed by an aggrieved worker, including a local worker, kasambahay, group of workers, union, or authorized representative. (Sena Webb App)
Documents to Prepare Before Going to DOLE
Bring or upload copies if available. Do not worry if you do not have everything; many employees do not. But the more documents you have, the easier it is to explain your claim.
| Document | Why it helps |
|---|---|
| Company ID or government ID | Proves identity |
| Employment contract or job offer | Shows position, salary, and employer |
| Payslips or payroll screenshots | Supports basic salary earned |
| ATM payroll records or bank statements | Supports payment history |
| Certificate of employment, if any | Shows employment dates |
| Notices from HR | Shows AWOL, NTE, return-to-work order, or termination |
| Resignation letter, if any | Clarifies separation date |
| Screenshots with HR or supervisor | Shows requests and employer responses |
| Clearance form | Shows pending accountabilities |
| Asset accountability forms | Shows company property issued |
| Proof of returned items | Counters improper deductions |
| Your own computation | Helps DOLE identify the amount in dispute |
Typical timeline
| Step | Usual timeline |
|---|---|
| Written request to HR | Same day to 1 week |
| Clearance processing | A few days to several weeks, depending on company |
| Final pay release under DOLE advisory | Generally within 30 days from separation or termination |
| SEnA conciliation | Usually within the 30-day mandatory conciliation period |
| Referral to proper office if unresolved | After failed or terminated SEnA proceedings |
Actual timelines vary. Delays often happen because of missing clearance signatures, unreturned property, disputed last day of employment, pending administrative investigation, or disagreement over deductions.
Special Situations
You are abroad and cannot process clearance personally
Many OFWs, remote workers, and former employees abroad face this problem. Ask HR if you can:
- Return property by courier
- Sign documents electronically
- Authorize a family member to process clearance
- Receive final pay through bank transfer or payroll account
If you authorize someone in the Philippines, the company may ask for a Special Power of Attorney (SPA). If signed abroad, the SPA may need notarization and, depending on the country, apostille or consular authentication. The DFA notes that the Philippines became a party to the Apostille Convention on May 14, 2019. (Apostille Philippines)
You are a foreigner employed in the Philippines
Foreign employees working for Philippine employers are generally protected by Philippine labor standards while employed in the Philippines, subject to the facts of the employment relationship and immigration/work permit issues. If you are rank-and-file and earned basic salary in the Philippines, your nationality alone does not remove your 13th month pay entitlement.
Keep copies of:
- Passport bio page
- ACR I-Card, if applicable
- Alien Employment Permit, if applicable
- Employment contract
- Payslips and bank records
- Work emails and HR communications
If you already left the Philippines, you may need a representative with an SPA to attend proceedings or coordinate with the employer.
You were tagged AWOL but you were actually dismissed
If the employer stopped giving you work, blocked access, removed you from schedules, or told you not to report anymore, the issue may not be simple AWOL. It may involve illegal dismissal or constructive dismissal.
In that situation, your possible claims may include more than 13th month pay, such as:
- Reinstatement or separation pay in lieu of reinstatement
- Backwages
- Damages, in proper cases
- Attorney’s fees, in proper cases
- Unpaid wages and benefits
For a pure 13th month pay or final pay issue, DOLE is usually the first practical step. For illegal dismissal, unresolved disputes may proceed to the NLRC after SEnA referral.
You signed a quitclaim
A quitclaim or release is not automatically invalid. But it may be questioned if the amount paid was unconscionably low, the employee did not understand it, or there was fraud, coercion, or pressure.
Before signing, compare the amount offered with your own computation. If the document says you received all benefits but the amount excludes your pro-rated 13th month pay, ask for clarification in writing.
Common Mistakes Employees Make
Ignoring notices from HR
Even if you no longer want to return, do not ignore a Notice to Explain or return-to-work order. A short written explanation may protect you later.
Not returning company property
Unreturned property is one of the most common reasons final pay gets delayed. Return items properly and get proof.
Assuming “AWOL” means no money at all
AWOL may affect your employment record and possible separation pay, but it does not automatically erase unpaid salary or earned 13th month pay.
Filing a complaint without computation
You can still file, but it helps to know your estimated claim. DOLE conferences move faster when you can say, “My basic salary earned was about ₱, so my 13th month pay should be about ₱.”
Waiting too long
Money claims arising from employer-employee relations generally prescribe in three years under Article 306 of the Labor Code. (Lawphil) Do not wait until records disappear, supervisors resign, or payroll access is lost.
Frequently Asked Questions
Can my employer forfeit my 13th month pay because I went AWOL?
Usually, no. Your employer may compute only the proportionate amount based on basic salary you actually earned, but AWOL alone does not automatically forfeit earned statutory 13th month pay.
Am I entitled to 13th month pay if I was terminated for abandonment?
Yes, if you are a covered rank-and-file employee and you earned basic salary during the calendar year. Valid termination for abandonment may affect separation pay, but it does not automatically remove earned 13th month pay.
Can HR hold my 13th month pay until I finish clearance?
HR may generally require clearance as part of final pay processing, especially if you have company property or accountabilities. But clearance should not be used to indefinitely avoid paying earned benefits. Ask for the computation and the specific reason for any hold or deduction.
What if I did not return my company laptop?
The employer may require return of the laptop or assert a lawful accountability. The better solution is to return the item, get written acknowledgment, and request release of your final pay. If the company deducts an amount, ask for the basis and computation.
Can the company deduct an AWOL penalty from my 13th month pay?
A deduction must have a lawful and documented basis. A vague “AWOL penalty” that wipes out your entire 13th month pay is questionable, especially if it is not based on law, contract, company policy, or a proven accountability.
Do I still get 13th month pay if I worked only a few months?
Yes, if you are covered and worked for at least one month during the calendar year. The amount is proportionate: total basic salary earned during the year divided by 12.
Is 13th month pay the same as Christmas bonus?
No. 13th month pay is mandatory for covered employees. A Christmas bonus is usually voluntary unless it is required by company policy, contract, collective bargaining agreement, or long-established company practice.
Is 13th month pay taxable?
The 13th month pay and other benefits are generally tax-exempt up to the statutory ceiling, currently ₱90,000 for combined 13th month pay and other benefits. Amounts above the ceiling may be taxable. (Bir.gov.ph)
Where do I complain for unpaid 13th month pay after AWOL?
You can file a Request for Assistance through DOLE SEnA at the DOLE Regional, Provincial, Field, or Satellite Office with jurisdiction over the workplace, or through DOLE’s online assistance portal where available. Prepare your payslips, employment details, HR messages, clearance documents, and your estimated computation.
Can I ask for a Certificate of Employment even if I went AWOL?
Yes. DOLE Labor Advisory No. 06, Series of 2020 provides that a Certificate of Employment should be issued within three days from request. The COE generally states employment dates and work performed; it is different from a clearance or recommendation. (dole.gov.ph)
Key Takeaways
- AWOL does not automatically cancel earned 13th month pay.
- 13th month pay is generally computed as total basic salary earned during the calendar year divided by 12.
- A resigned, terminated, or AWOL employee may still be entitled to pro-rated 13th month pay.
- Employers may require clearance and may address proven accountabilities, but they should not use AWOL as a blanket forfeiture of statutory benefits.
- Final pay generally includes unpaid wages, pro-rated 13th month pay, applicable leave conversion, tax adjustments, deposits, and other amounts due.
- Valid abandonment requires more than mere absence; it requires proof of intent to sever the employment relationship.
- If HR refuses to compute or release your 13th month pay, ask for a written computation, complete clearance where possible, preserve evidence, and file a DOLE SEnA Request for Assistance if the dispute remains unresolved.