Can You Be Disciplined for Refusing to Work on a Holiday?

Holiday Pay, Premiums, and Sanctions in the Philippines

Short answer:

Regular holidays: You generally may refuse to work, and you still get holiday pay if you meet the attendance rule. Disciplining you just for refusing is usually unlawful—unless a valid exception applies.

Special (non-working) days: “No work, no pay” is the default. Employers may require work; refusal can be penalized if the order was lawful, reasonable, and properly communicated, and no legal excuse applies.

Below is a complete, practitioner-style guide you can rely on for policy drafting, payroll, and day-to-day HR decisions.

1) What counts as a “holiday” (and why it matters)

Philippine law distinguishes regular holidays from special (non-working) days. They have different pay rules and different consequences for refusing to work.

Regular holidays (e.g., New Year’s Day, Maundy Thursday, Good Friday, Labor Day, Independence Day, National Heroes Day, Bonifacio Day, Christmas Day, Rizal Day, Eid holidays when proclaimed)
- Policy goal: a paid day of rest.
- Right to holiday pay even if unworked (subject to attendance rule below).
- Working is paid at double the rate (or more with rest day/OT/night shift).
Special (non-working) days (e.g., EDSA People Power Anniversary if declared, Black Saturday if declared, Ninoy Aquino Day, All Saints’ Day, additional days “for the economy,” election day proclamations, and many local city/provincial special days)
- Policy goal: commemorative/occasional.
- No work, no pay by default (unless company policy/CBA/monthly-rated status says otherwise).
- Working gets a 30% premium (or more with rest day/OT/night shift).

Tip: Proclamations change year to year. Payroll must check the annual list to classify the day correctly before computing pay.

2) Holiday pay and premium pay — the numbers that drive payroll

These are the standard rules used in payroll practice. Your CBA, employment contract, or company policy may grant better terms, but not worse.

A. Regular holiday

Unworked: 100% of the basic daily wage (daily-paid employees must satisfy the attendance rule; monthly-paid are typically already paid).
Worked (first 8 hours): 200% of the basic hourly/daily rate.
Overtime on a regular holiday: 200% × 1.30 = 260% per OT hour.
If the regular holiday falls on the employee’s rest day and is worked: 200% × 1.30 = 260% for the first 8 hours; 260% × 1.30 = 338% per OT hour.
Night shift differential (10% of hourly rate) is computed on top of the applicable holiday rate.

B. Special (non-working) day

Unworked: No pay (unless monthly-paid, or your CBA/policy says otherwise).
Worked (first 8 hours): 130% of the basic hourly/daily rate.
Worked on a rest day: 150% (that is, +30% on top of 100% base plus another +20% for rest day—standard practice yields 150%).
Overtime: multiply the day’s applicable rate by 1.30 (e.g., 130% × 1.30 = 169% per OT hour on a normal special day; 150% × 1.30 = 195% if it also falls on the rest day).
Night shift differential is additional.

C. Double holiday (two regular holidays coincide)

Unworked: 200%.
Worked (first 8 hours): 300%.
Overtime: 300% × 1.30 = 390% per OT hour.
If also a rest day and worked: add the usual rest-day premium on top (practice yields 390% per OT hour and 300% for first 8 hours × rest-day premium where applicable under your policy/CBA).

Attendance rule for regular holidays (daily-paid): To get the unworked 100%, you must be present or on paid leave on the workday immediately before (and, by many company policies, also the day after) the holiday. If you work on the holiday, you get the double-pay for hours worked even if you missed the day before.

3) Coverage, common exceptions, and tricky populations

Covered employees: As a rule, both rank-and-file and managerial employees in the private sector enjoy holiday pay benefits (subject to the attendance rule for daily-paid).
Retail/service establishments with very small headcount: Long-standing IRR practice recognizes an exemption from regular-holiday pay for certain retail/service establishments regularly employing fewer than 10 workers. Verify current headcount and classification before applying the exemption.
Project-based/casual/probationary: Generally covered if they work on that day or meet the attendance rule; check the contract/CBA.
Monthly-paid: Salary typically already includes regular holidays and rest days; if they work on a holiday, the premium is on top of the monthly salary.
Field personnel/commission-only with undeterminable hours: Special coverage rules may apply; confirm how hours and base rate are defined.
Domestic workers (kasambahay): Covered by their own statute and written contract; benefits may differ from the private-sector Labor Code scheme.

4) May an employer require holiday work?

Regular holidays: The legal default is a paid day of rest. Employers generally should not compel work on a regular holiday. However, work may be validly required where:
1. A CBA, employment contract, or long-standing policy (not contrary to law) explicitly provides for holiday work in continuous-operations businesses; or
2. The nature of the enterprise requires continuity (e.g., hospitals, utilities, transport, security, BPO/IT with 24/7 committed SLAs, hotels, manufacturing with continuous processing) and the order is reasonable and necessary; or
3. Emergencies (e.g., disaster response, urgent repairs to avoid loss or danger) justify immediate work.
Special (non-working) days: Employers may schedule or require work, subject to premium pay rules. Many businesses still choose to close; if they do, “no work, no pay” applies to daily-paid staff unless policy/CBA says otherwise.

5) Can you be disciplined for refusing to work on a holiday?

A. Refusing work on a regular holiday

General rule: No, you should not be penalized merely for insisting on your regular-holiday rest.
When discipline might be lawful: Only if the employer proves a lawful, reasonable, and clearly communicated order, and you willfully disobeyed it without valid excuse, and one of the valid bases in Section 4 above applies (e.g., continuous operations, emergency, or a lawful CBA/contract clause).
Practical standard (insubordination in PH law): The order must be (i) lawful and reasonable, (ii) related to your duties, (iii) clearly communicated, and the refusal willful. If the order violates your statutory right to a paid regular holiday, it is not lawful, so insubordination does not lie.

B. Refusing work on a special (non-working) day

Employers may generally require work; refusal can be treated as insubordination or absence without leave, provided:
- The instruction was clear and reasonable (proper notice/scheduling, no arbitrary last-minute demands unless there’s an emergency);
- Premium pay will be honored; and
- No legal excuse applies (see below).

C. Valid legal excuses to refuse (both regular and special days)

Safety and health: Under OSH principles, workers may refuse unsafe work when there is imminent danger and appropriate conditions are met.
Approved leave or legitimate illness: Supported by timely notice and documentation under company policy.
Religious accommodation: Good-faith requests should be reasonably considered unless they impose undue hardship on the business (document the interactive process).
Force majeure/family emergency: Apply your policy consistently and fairly.

Bottom line: On regular holidays, refusal is usually protected. On special days, refusal can be penalized if the order was proper and no legal excuse exists.

6) Due process for any sanction (what employers must do)

Substantive just cause: Employer must show the refusal meets the test for willful disobedience (or other just cause) and that the order itself was lawful and reasonable in the circumstances.
Procedural due process (termination cases):
1. Notice to Explain (NTE): Detailed charge and facts; reasonable time to respond.
2. Opportunity to be heard: Hearing/meeting or written clarifications.
3. Notice of Decision: Clear findings and penalty, proportionate to the offense.
For lesser penalties (warning/suspension): Provide written notice and a chance to explain; follow your Code of Conduct and progressive discipline matrix.
Consistency & non-discrimination: Apply rules uniformly (similarly situated employees get similar treatment).

7) “Attendance rule” and common payroll pitfalls

Unworked regular holiday entitlement (daily-paid) usually requires being present or on paid leave on the workday immediately before the holiday (many companies also require the day after—check your policy/CBA).
If you worked on the holiday, you get the holiday rate for hours worked even if you were absent the day before.
Split shifts straddling midnight: Pay the holiday rate only for hours actually worked on the holiday date; the rest is paid at the normal or special rate applicable to the other date.
Night shift differential: Always compute on top of the day’s applicable rate.
No diminution: You cannot waive holiday pay by private agreement; company policies may improve but not reduce statutory benefits.

8) Worked examples (for quick reference)

Assumptions: Basic daily rate ₱1,000; 8-hour day; hourly = ₱125.

Unworked regular holiday (daily-paid, attendance rule satisfied): ₱1,000 holiday pay.
Worked regular holiday, 8 hours: ₱1,000 × 200% = ₱2,000.
Worked regular holiday + 2 hours OT: First 8 hours: ₱2,000. OT hourly rate: ₱125 × 260% = ₱325 → 2 hours = ₱650. Total: ₱2,650 (+ NSD if applicable).
Worked special (non-working) day, 8 hours: ₱1,000 × 130% = ₱1,300.
Worked special day on rest day, 8 hours: ₱1,000 × 150% = ₱1,500.
Double regular holiday, unworked: ₱1,000 × 200% = ₱2,000.

9) Practical playbooks

For employers (HR/Payroll)

Classify the day correctly (regular vs special).
Announce schedules early, especially for special days; document notices.
For regular holiday work, ensure you have a valid basis (continuous operations, emergency, or lawful CBA/contract clause).
Honor all premiums (rest day, OT, night shift).
Apply due process before any sanction; ensure the order was lawful and reasonable.
Train supervisors on what they can and cannot compel on regular holidays.

For employees

Know which days are regular and which are special.
If asked to work a regular holiday, ask for the legal basis (e.g., continuous operations, emergency, or policy/CBA clause) and confirm the premium.
If you have a legal excuse (safety, illness, religion), notify in writing and keep proof.
Mind the attendance rule to preserve unworked-holiday pay.

10) FAQs

Q: My supervisor told me to report on a regular holiday with no emergency and we’re not a 24/7 shop. I declined and got a memo. A: You likely have a defense. Unless there’s a valid legal basis to compel regular-holiday work, the order itself may be unlawful, defeating an insubordination charge. Respond to the NTE, cite the holiday’s classification, and ask that premiums/legal basis be confirmed.

Q: We’re monthly-paid. Do we still get anything extra for working a holiday? A: Yes. The holiday premium (e.g., 200% for regular holidays) is on top of your monthly salary for actual hours worked that day.

Q: Our store has fewer than 10 workers. Do we owe regular-holiday pay if we close? A: Certain small retail/service operations have an exemption from regular-holiday pay in the IRR. Confirm you truly qualify before applying it (headcount, nature of business, and consistency matter). Many employers still grant pay as a benefit.

Q: If I work the night before a holiday and my shift crosses midnight, what rate applies? A: Apply the holiday rate only to the hours that fall on the holiday date; the earlier hours get the normal/non-holiday rate (plus night shift premium as applicable).

11) Key takeaways

Regular holiday = paid day off; refusal to work is generally protected.
Special day = no work, no pay; lawful orders to work can be enforced (with premiums).
Sanctions require a lawful order, willful disobedience, and due process.
Always classify the day, document scheduling, and compute premiums correctly.

Disclaimer: This article provides general legal information for the Philippine private sector and is not a substitute for tailored legal advice. For edge cases (CBA clauses, multi-site operations, disaster/emergency work, or unique pay structures), consult counsel or your DOLE Regional Office.