Do You Owe One Day Salary if an Employee Misses Work Due to a Car Accident?

A Philippine Legal Guide to the “No Work, No Pay” Rule, Leave Options, and Benefits

Bottom line upfront: In the Philippines, wages are generally due only for work actually performed. If an employee misses a workday because of a car accident, the default rule is no work, no pay. Pay may still be due if the absence is covered by paid leave, a company/CBA benefit, or if the injury is work-related and paid under a benefit scheme. What follows is a complete guide to help you decide quickly and correctly.

1) The core rule: “No work, no pay”

General doctrine. Wages compensate work actually rendered. If no work is done on a scheduled workday, the employer is not legally obliged to pay, unless an exception applies.
What it means for accidents. A car accident, even if unforeseen and not the employee’s fault, does not by itself create an entitlement to pay for the missed day.

2) The big exceptions (when pay may still be due)

A. Paid leave entitlements

Service Incentive Leave (SIL)
- At least 5 days per year of paid leave after one year of service, unless validly exempt (e.g., managerial employees, field personnel with equivalent benefits, establishments already granting at least 5 days paid leave, etc.).
- Convertible to cash if unused at year-end (unless a more generous company policy applies).
- SIL can be used for sickness/injury, including accidents. If the employee elects to charge the absence to remaining SIL credits, the day is paid.
Company policy / CBA leave
- Many employers grant paid sick leave, emergency leave, special paid leave, or calamity/misfortune leave. If applicable and approved, the day is paid.
Special paid days that coincide with the absence
- Regular holidays: An employee is entitled to 100% of the daily rate even without working if present or on leave with pay on the workday immediately preceding the holiday. If the employee was absent without pay the day before, holiday pay is not due (unless actually worked on the holiday).
- Special non-working days: “No work, no pay” applies by default unless there is a favorable company/CBA policy.

B. Work-related injury benefits (separate from daily wage)

If the car accident is work-connected (e.g., occurred while performing official duties, on company time/premises, in a company shuttle, or otherwise within the scope of employment), the incident may qualify for Employees’ Compensation (EC) benefits in addition to SSS sickness benefits.
Important: Ordinary commuting accidents are typically not work-connected. Exceptions can exist (e.g., company-provided transport, errands expressly required by the employer, or accidents within company premises before/after a shift).
Even when EC/SSS benefits apply, these are statutory benefits, not ordinary wages. They do not convert the day into paid work, but they can replace income separately (see Section 4).

3) Salary deductions for an absence due to accident

Permissible deduction. If the day is unpaid, the employer may prorate and deduct the corresponding day’s wage from the payroll—this is not an illegal deduction; it simply reflects that no wage is due for that day.
No double deduction. If the day is charged to paid leave, no absence deduction should be made.
Document the reason. Use the company’s standard absence codes (e.g., SL, EL, AWOL, ULW/unpaid leave) to avoid disputes.

4) SSS Sickness Benefit and EC (when applicable)

A. SSS Sickness Benefit (for any sickness/injury causing incapacity)

Who qualifies: The employee must be unable to work for at least 4 days (continuous or cumulative due to the same cause), have sufficient SSS contributions, and file timely notice (employee to employer within 5 calendar days from onset; employer to SSS within the SSS window).
How it pays: The employer usually advances the daily sickness benefit (based on the SSS computation) and later applies for SSS reimbursement.
Key point: SSS sickness benefit is not regular wage; it replaces income during incapacity. It can start on day 4 of incapacity (days 1–3 are typically employee’s account unless covered by paid leave or company policy).

B. Employees’ Compensation (EC) (for work-related cases only)

When it applies: The injury must be arising out of and in the course of employment.
Benefits may include: Medical services, disability income benefits, and in some cases, additional cash benefits.
Commuting rule: Accidents to or from work are generally not compensable unless an exception applies (e.g., company shuttle, officially sanctioned errand, within employer premises, or comparable situations showing a sufficiently close connection to employment).

5) Due process, discipline, and documentation

For the employer

Avoid automatic “AWOL.” If the employee promptly notifies the employer and later submits evidence (police report, tow receipt, medical certificate, photos), the absence is typically excused but may still be unpaid unless covered by paid leave.
Follow your handbook/CBA. Attendance rules, proof requirements, deadlines, and sanction matrices must be applied consistently.
Issue notices only when warranted. AWOL or habitual absenteeism requires the usual due process (notice to explain, chance to be heard, reasoned decision). A single accident-related absence, duly reported, typically does not justify discipline unless policies were clearly breached (e.g., failure to notify).

For the employee

Notify immediately. Call or message your supervisor/HR as soon as practicable.
Keep proof. Police/traffic reports, medical certificates, photos of the vehicle, tow/repair receipts, ticket stubs, and time-stamped messages help establish good cause.
Elect leave coverage. If you have SIL or company paid sick/emergency leave, submit a leave request to convert the day to paid.
Ask about SSS/EC. If incapacity lasts 4 days or more, explore SSS sickness benefits (and EC if the accident is work-related).

6) Pay computations & edge cases

A. One unpaid day (monthly-paid employees)

Daily equivalent is computed per your company’s payroll standard (e.g., Monthly Rate × 12 ÷ 313 for monthly-paid with specific divisor; or ÷ 261/262/working days depending on policy).
Deduct one day equivalent only if the absence is unpaid.

B. Holiday intersections

Regular holiday follows the accident day:
- If the employee was absent without pay on the workday immediately before the holiday, no holiday pay is due (unless the employee works on the holiday).
- If the employee used paid leave for the accident day, holiday pay remains due.

C. Overtime/rest day effects

If the accident prevents an employee from a scheduled rest day OT, there is no OT premium due because no work was performed.

7) Practical decision tree (quick reference)

Was any work rendered that day?
- Yes: Pay the wage (and premiums if any).
- No: Go to (2).
Is the day covered by paid leave (SIL/company/CBA)?
- Yes: Pay the day and deduct from leave credits.
- No: Go to (3).
Is the injury work-related (EC scenario)?
- Yes: Process EC (and SSS sickness if 4+ days incapacity). Wage for the missed day remains not due unless covered by paid leave or policy.
- No: Go to (4).
Is the absence part of a 4+ day incapacity?
- Yes: Process SSS sickness (income replacement; not regular wage).
- No: The day is unpaid under no-work-no-pay.

8) Policy & documentation templates (plug-and-play)

A. Model handbook clause (attendance & accident absences)

Accident-Related Absences. Absences due to accidents or medical emergencies are excused upon timely notification and submission of reasonable proof (e.g., police or medical report). Excused status does not, by itself, entitle the employee to pay. The absence may be charged to available Service Incentive Leave or company-granted paid leave (if any). Where incapacity extends to four (4) days or more, the Company will assist in the processing of SSS sickness benefits (and EC benefits for work-connected injuries). Deductions of pay for days not covered by paid leave are permitted under the no-work-no-pay rule.

B. Checklist (HR)

☐ Immediate acknowledgement of report/notification
☐ Collect evidence (police/medical/tow/repair)
☐ Confirm leave balances (SIL, sick/emergency leave, CBA)
☐ Offer leave election form; record code (SL/EL/ULW)
☐ Evaluate work-related factors (company vehicle/premises/official errand)
☐ If 4+ days incapacity, start SSS sickness workflow (and EC if applicable)
☐ Apply holiday rules if relevant
☐ Reflect proper payroll treatment and leave ledger update

C. Checklist (Employee)

☐ Notify supervisor/HR ASAP (time-stamped)
☐ Keep documents (police report, medical certificate, photos)
☐ File leave request (SIL/company leave)
☐ Ask HR about SSS/EC if incapacity ≥ 4 days
☐ Keep follow-up medical clearances for return-to-work

9) FAQs

Q1: The employee was hit by another car on a workday and missed work. Do we owe pay? A: Not by default. Unless the absence is covered by paid leave or policy, it is unpaid under no-work-no-pay.

Q2: The employee used SIL for the day. Still deduct? A: No. If SIL (or other paid leave) is approved, credit the day as paid and deduct from leave balance.

Q3: The accident happened on the way to work. Is that work-related? A: Generally, no. Commuting accidents are usually not work-connected, unless under recognized exceptions (e.g., company shuttle, official errand, inside employer premises).

Q4: Incapacity lasted 6 days; does SSS pay all days? A: SSS sickness benefit can apply (subject to eligibility and notice), typically starting day 4 of incapacity. Days 1–3 remain unpaid unless covered by paid leave or policy.

Q5: Do we discipline an employee for one accident absence? A: Usually no, if properly reported and documented. Discipline enters only if policy violations (e.g., failure to notify, falsified documents) or habitual absenteeism occur—always with due process.

10) Practical takeaways

Default: A missed day due to a car accident is unpaid (no work, no pay).
Make it paid: Apply SIL or company/CBA paid leave if available.
Separate income replacement: SSS sickness for 4+ days incapacity; EC only if work-related.
Be consistent: Follow the handbook/CBA, document well, and apply holiday rules correctly.
Communicate early: Quick notice and complete proof prevent disputes.

This guide is for general information and compliance planning in the Philippine setting. For complex or disputed cases (e.g., borderline work-connection, multiple holidays, or overlapping benefits), consider obtaining tailored legal advice based on the specific facts and your policies/CBA.