A practical, 360° guide to when workers on “forced leave” (temporary lay-off, no-work-no-pay days, mandatory leave usage, disciplinary suspension, etc.) are entitled to regular holiday pay or special day pay, how to compute it, and how HR should document the rules to avoid disputes.

1) Quick definitions (so we’re on the same page)

Regular holiday Statutory “non-working” days (e.g., New Year’s Day, Araw ng Kagitingan, etc.). Default rule: if no work, a covered, daily-paid employee gets 100% of the daily wage; if the employee works, pay is 200% for the first 8 hours (higher if it also falls on a rest day/OT—see §6).
Special (non-working) day / special holiday Default rule: “no work, no pay.” If the employee works, pay is 130% of the daily wage (higher if also a rest day/OT—see §6). Many employers voluntarily pay even if unworked based on policy or established practice.
Forced leave (umbrella term in practice) Any employer-initiated, temporary non-work status, such as:
1. Temporary lay-off / floating status (no assignment; employment continues but wages are suspended);
2. No-work, no-pay shutdowns (rotating off-days to save costs);
3. Mandatory leave usage (employees ordered to consume available leave credits);
4. Disciplinary suspension (unpaid, time-bound).

Holiday pay entitlement turns on what kind of forced leave applies and whether the employee is considered “present or on leave with pay” on the workday immediately before the holiday (for daily-paid workers), or monthly-paid (whose monthly salary already covers holidays).

2) The master rule for regular holiday when no work is performed

Daily-paid, rank-and-file employees are entitled to 100% of the basic daily wage if they were present or on leave of absence with pay on the workday immediately preceding the regular holiday.

Present the day before → Yes, pay the unworked regular holiday (100%).
On paid leave the day before (e.g., SL/VL/HMOs, company-paid forced leave) → Yes, pay the holiday.
Absent without pay the day before (AWOL, unpaid suspension, unpaid forced leave, floating) → No regular holiday pay for that date.
Entire workforce on temporary lay-off (no-work, no-pay) → those not on the payroll and not on paid leave do not earn regular holiday pay during the lay-off period.

Monthly-paid employees are generally considered paid for all days of the month, including unworked regular holidays, regardless of presence—subject to proration if they were off-pay for the entire month under company policy.

3) The master rule for special (non-working) days

No work performed: No pay—unless there is a more favorable company policy, CBA, or established practice granting pay despite no work.
Work performed: 130% of basic daily wage for the first 8 hours (see §6 for rest-day/OT variants).

Being on any type of forced leave does not create a statutory right to special day pay if no work is done; payment (if any) depends on company policy or practice.

4) How different “forced leave” situations affect holiday pay

A) Temporary lay-off / floating status (up to 6 months)

Employment is suspended; daily-paid workers are off-pay.
Regular holiday (unworked) during the lay-off → Not payable (they were not present or on paid leave the workday before).
If recalled to work on the holiday → Apply worked-on-holiday rates (200% for regular holiday; 130% for special day).

B) No-work, no-pay shutdown / rotation days

If the day before the holiday is a forced off-day without pay, daily-paid employees do not get the unworked regular holiday.
If the employer converts the off-day into paid leave (charging VL/SL or paying an allowance), the employee becomes “on leave with pay”, restoring regular holiday pay entitlement.

C) Mandatory leave usage (charging paid VL/SL)

If the employee is on paid leave immediately before a regular holiday, the regular holiday is payable (100%) even if no work is done on the holiday.
For special days, payment still follows company policy; the law does not require pay if unworked.

D) Disciplinary suspension (unpaid)

Regular holiday (unworked) that falls within/after an unpaid suspension where the day before the holiday is unpaid → Not payable to daily-paid workers.
Monthly-paid workers ordinarily remain salary-covered unless your policy prorates for long suspensions.

E) Company grants a “holiday ex-gratia”

If policy/CBA or long practice pays unworked special days or regular holidays despite unpaid absence before, honor it. Established practice can ripen into a benefit that cannot be unilaterally withdrawn (no diminution).

5) Edge cases and clarifications

Rest day immediately before the holiday. The “present day before” test refers to the last scheduled workday. If the day before the holiday was a rest day, look to the last working day actually scheduled before the holiday.
Probationary / part-time / piece-rate. As long as they are covered, daily-paid rank-and-file and were present/paid leave on the last workday before a regular holiday, they get the unworked regular holiday pay. Special day rules remain no work, no pay unless policy says otherwise.
On-call / zero hours. If not scheduled and not on paid leave the day before a regular holiday, the unworked regular holiday is not payable to daily-paid workers.
Monthly-paid with salary deductions. If the company deducts for full-month unpaid status (e.g., month-long LWOP), then the holiday within that month can be effectively unpaid as part of proration—document your policy clearly.

6) Rate table (summary)

Scenario	Pay Basis
Regular holiday, no work (daily-paid; present/paid leave day before)	100% of basic daily wage
Regular holiday, no work (daily-paid; absent w/o pay day before / floating)	0%
Regular holiday, worked (1st 8 hrs)	200% of daily wage
Regular holiday falling on rest day, worked (1st 8 hrs)	260% (200% × 1.3)
Special non-working day, no work	0% (unless policy/CBA grants pay)
Special non-working day, worked (1st 8 hrs)	130%
Special day on rest day, worked (1st 8 hrs)	150% (130% × 1.15)
Overtime on holiday/special day	Add 30% of hourly rate on top of the day’s multiplier

Use your company’s daily equivalent rate as the base. For monthly-paid, compute the daily rate per policy (e.g., 313/261 divisor, etc.), and be consistent.

7) Computation examples

Example 1: Regular holiday, unworked; employee on forced leave without pay the prior workday

Daily rate: ₱800
Status: Off-pay on the workday before the holiday (floating)
Pay: ₱0 (fails the presence/paid-leave test)

Example 2: Regular holiday, unworked; employer required use of paid VL the prior workday

Daily rate: ₱800
Prior day: charged to paid VL
Pay: ₱800 (100%)

Example 3: Special non-working day, unworked; forced leave

Daily rate: ₱800
Pay: ₱0 (unless company/CBA grants pay)

Example 4: Regular holiday, worked 8 hours; employee recalled for one day during floating

Daily rate: ₱800
Pay: ₱1,600 (200% × 800). If 2 hours OT → add 30% of hourly rate on top of the 200% computation.

8) Documentation HR should keep (to win audits/grievances)

Holiday calendar and published pay rules (employee handbook or memo).
Forced leave memos stating whether days are paid (chargeable) or unpaid.
Schedules/attendance logs to establish presence on the last workday before regular holidays.
Policy/CBA clauses (if any) granting special day pay or more generous regular holiday treatment.
Payroll proofs of consistent application (avoid selective grants).

9) Employee playbook (how to self-check eligibility)

Was I present or on paid leave on my last scheduled workday before the regular holiday?
- Yes → I should get 100% regular holiday pay if I didn’t work that day.
- No → I generally won’t get it if I’m daily-paid and off-pay.
Did I work on a holiday/special day?
- Apply the multipliers (200%/130% …).
Does our policy/CBA promise pay for unworked special days or pay even if absent the day before?
- If yes, policy controls (more favorable).
Am I monthly-paid?
- Holidays are normally covered by my salary unless the whole month is off-pay per policy.

10) Clean templates (adapt as needed)

10.1 HR Memo — Holiday Pay During Forced Leave

To clarify holiday pay during scheduled forced leave:

Regular holidays (unworked) are payable to daily-paid employees only if they were present or on leave with pay on their last scheduled workday before the holiday.

Special (non-working) days (unworked) are no work, no pay, unless covered by company/CBA policy.

Where the Company requires use of paid leave credits on days immediately preceding a regular holiday, the regular holiday remains payable. This memo takes effect [date] and will be applied consistently.

10.2 Employee Query — Request for Regular Holiday Pay

I was on paid VL/SL on [date], the last scheduled workday before [regular holiday], and did not work on the holiday. My daily rate is ₱[ ]. In line with our policy and labor standards, may I request confirmation that my regular holiday pay (100%) will be reflected in [pay period]?

11) Common pitfalls (and how to avoid them)

Assuming all holidays are paid regardless of status. Not true for special days and for regular holidays when the day-before condition isn’t met (for daily-paid).
Inconsistent application (some teams paid, others not) → creates diminution or discrimination issues.
Vague forced-leave memos (don’t say if days are paid or unpaid) → leads to holiday pay disputes.
Forgetting monthly-paid proration rules → document when monthly salary is reduced for extended LWOP.

12) Bottom line

Regular holiday (unworked): daily-paid employees get 100% only if present or on paid leave on the last scheduled workday before the holiday; otherwise none during unpaid forced leave/floating. Monthly-paid are generally covered by salary.
Special (non-working) day (unworked): no work, no pay, unless a policy/CBA/practice grants pay.
The clean way to manage this: label forced-leave days as paid or unpaid, publish holiday pay rules, and apply them consistently.