Navigating the final days of employment can be a whirlwind of transition—handing over tasks, clearing clearances, and calculating final pay. One common point of confusion for departing employees is whether they are still entitled to holiday pay for holidays like Christmas Day (December 25) if their resignation falls near the end of the year.
Under Philippine labor laws, the answer isn't a simple "yes" or "no"—it depends heavily on the timing of your effective resignation date and your last day of actual work.
The Legal Framework: Regular Holiday Pay
In the Philippines, December 25 is classified as a Regular Holiday under Executive Order No. 292 (as amended). According to the Labor Code and the Handbook on Workers' Statutory Monetary Benefits:
- The General Rule: All employees in the private sector are entitled to 100% of their daily wage on a regular holiday, even if they do not work, provided they were present or on leave with pay on the workday immediately preceding the holiday.
Scenario 1: Your Effective Date is BEFORE December 25
If your resignation letter states that your last day of employment (the effective date) is December 20, your employer-employee relationship officially ceases on that day.
- Entitlement: No. Since you are no longer an employee of the company as of December 25, you are not entitled to holiday pay.
- The Cut-off: Once the resignation is effective, the company’s obligation to pay wages and holiday premiums ends.
Scenario 2: Your Effective Date is AFTER December 25
If your effective date of resignation is December 31, you are technically still an employee on Christmas Day. However, your pay depends on your attendance:
- If you worked on Dec 24 (or were on paid leave): You are entitled to 100% of your daily wage for December 25, even if you stayed home and didn't work.
- If you were on Leave Without Pay on Dec 24: Under the law, if you are absent without pay on the workday immediately preceding the holiday, you are not entitled to the holiday pay unless you work on the holiday itself.
- If you worked on Dec 25: You are entitled to 200% of your daily wage (Double Pay).
Scenario 3: The "Last Day of Work" vs. "Effective Date"
This is where most disputes happen. Often, an employee finishes their "last day of physical work" on December 23 but uses their remaining VLs (Vacation Leaves) to cover the rest of the month, making their "effective resignation date" December 31.
- The Ruling: If you are on paid leave (using your VLs) on the workday immediately preceding the holiday, you are entitled to the holiday pay.
- The Trap: If you "render" your 30-day notice but your employer allows you to leave early and tags your effective date as December 23, you lose the holiday pay for the 25th.
Summary Table: Eligibility Checklist
| Status on December 24 | Effective Resignation Date | Entitled to Dec 25 Pay? |
|---|---|---|
| Present at work | December 26 or later | Yes (100% pay) |
| On Paid Leave (VL/SL) | December 26 or later | Yes (100% pay) |
| On Leave Without Pay | December 26 or later | No (unless you work on the 25th) |
| Already resigned | December 24 or earlier | No (not an employee) |
Key Takeaways for Resigning Employees
- Check your Effective Date: Ensure your resignation letter clearly states your final date of employment. If you want to be eligible for year-end holidays, your effective date must be on or after the holiday.
- The "Preceding Day" Rule: Always try to be present (or on a paid leave) on the workday immediately before the holiday to secure your claim.
- Final Pay Inclusion: If you meet the criteria above and your employer excludes the holiday pay from your "Backpay" or "Final Pay," you may raise this with your HR department or, if necessary, seek assistance from the Department of Labor and Employment (DOLE).
Note: These rules apply to regular employees in the private sector. Different rules may apply to "field personnel," those in managerial positions, or those in the government service (covered by Civil Service rules).
Would you like me to help you draft a professional inquiry to your HR department regarding the calculation of your final pay?