Holiday pay entitlement during suspension (Philippines)

Bottom line: An employee who is under suspension without pay generally does not earn holiday pay for a regular holiday that is not worked, because they are not present nor on paid leave on the workday immediately preceding (and, in some policies/CBAs, succeeding) the holiday. If the employee is on payroll reinstatement (i.e., being paid during preventive suspension beyond the allowable period or by company decision), the regular holiday pay accrues normally. For special (non-working) days, the default rule is “no work, no pay”; a suspended employee doesn’t get paid for a special day unless a contract/CBA/company practice grants it.

This is general information, not legal advice. Your CBA, employment contract, handbook, and actual facts can change the answer.

Key concepts you need first

1) Types of “holidays”

Regular holidays (e.g., New Year’s Day, Araw ng Kagitingan, Labor Day, Independence Day, Bonifacio Day, Christmas Day, Rizal Day, and those annually proclaimed like Eid al-Fitr/Eid al-Adha):
- If unworked: entitled to 100% of the basic wage for 8 hours, provided the employee was present or on leave with pay on the workday immediately preceding the holiday (some policies/CBAs also require presence on the succeeding workday).
- If worked: at least 200% of the wage for the first 8 hours (with higher rates if also a rest day).
Special (non-working) days (e.g., EDSA anniversary, Black Saturday, All Saints’ Day, Year-end special day, and most one-off special days by proclamation):
- Default: No work, no pay. If worked, at least 130% (higher if it also falls on the rest day). Employers may adopt more generous schemes by policy or CBA.

2) Types of “suspension”

Disciplinary suspension (no pay): Imposed as a penalty after due process. Time not worked is without pay.
Preventive suspension (no pay, temporary): A precaution while investigating a serious infraction when the employee’s presence poses a risk. Generally capped at 30 calendar days; beyond that, the employer should reinstate to work or to the payroll while continuing the investigation.
Payroll reinstatement: The employee is off work but back on pay (e.g., preventive suspension extended past the allowable period, or by management choice). The time counts as paid for wage-based benefits.

Effect on holiday pay: In no-pay suspensions, the employee is absent without pay, which typically breaks the entitlement to unworked regular-holiday pay and leaves special days unpaid unless a more favorable agreement applies.

How suspension intersects with holiday pay

A) Regular holiday falls during a no-pay suspension (unworked)

Entitlement: None in most cases, because the employee did not meet the presence/paid-leave condition on the workday immediately preceding the holiday.
Exception: If a CBA/contract/handbook expressly waives the presence requirement or guarantees holiday pay regardless of attendance status, follow that more favorable rule.

B) Regular holiday is worked while “suspended”

If the employee is not permitted to work during suspension, there is no work and thus no holiday-work premium to compute.
If the employer lifts or modifies the suspension and the employee actually works on the holiday, then apply the worked-holiday rates (e.g., 200% for the first 8 hours on a regular holiday).

C) Suspension starts after the holiday; employee was present before the holiday

If the employee reported for work (or was on paid leave) on the workday immediately preceding the regular holiday, they generally earn the 100% unworked regular-holiday pay even if they are suspended the next day.
Watch out for a policy/CBA that also requires presence on the succeeding day; if it does and the employee is suspended (and therefore absent) on that day, the employer may deny the unworked holiday pay under that stricter rule.

D) Suspension ends before the holiday; employee returns before the holiday

If the employee is back to work (or on paid leave) on the workday immediately preceding the holiday, the regular-holiday pay (if unworked) applies. If they also work on the holiday, the 200% rate applies.

E) Payroll reinstatement spans the holiday

Because the employee is on pay status, the regular-holiday pay (if unworked) accrues like normal. If they work on the holiday, compute the corresponding premium as usual.

F) Special (non-working) day during suspension

Default: No entitlement if no work is performed (suspension or not).
Exception: A CBA/contract/practice that pays special days even if unworked, or that does not condition payment on presence before/succeeding days.

G) Illegal or improper suspension later ruled compensable

If a suspension is later found illegal or otherwise compensable (e.g., converted to payroll reinstatement/backwages), the employee may recover wage-based benefits that would have accrued during that period—often including regular-holiday pay and premium differentials that fall within the backwage period—subject to the exact relief granted (some decisions limit recoveries; specifics matter).

Computation snapshots (illustrative)

Assumptions: Daily-paid employee, basic daily wage = ₱1,000; regular holiday unworked rate = 100% if entitled; worked regular holiday rate = 200% for first 8 hours.

Unworked regular holiday during no-pay suspension
- Preceding workday: absent (suspended) → ₱0 holiday pay (no entitlement).
Unworked regular holiday; suspension starts after the holiday
- Preceding workday: present → ₱1,000 (entitled).
- Succeeding day rule in CBA requiring presence? If yes and employee is absent (suspended), entitlement could be ₱0 under that stricter CBA.
Worked regular holiday while on payroll reinstatement
- Paid status + actually worked 8 hours → ₱2,000 (200%).
Special (non-working) day during suspension, unworked
- Default → ₱0 (no work, no pay), unless a more generous rule applies.

Documentation and policy hierarchy

Law & DOLE rules set the minimum (e.g., presence/paid-leave condition for unworked regular holidays; “no work, no pay” for special days).
CBA / Employment contract / Handbook can give better terms (e.g., paying regular holidays regardless of presence, paying special days even if unworked, or waiving the succeeding-day requirement).
Company practice (long, consistent, deliberate) can ripen into a benefit; employers should be careful before unilaterally rolling it back.

Practical guidance

For employees

Check status: Are you on no-pay suspension or payroll reinstatement? It changes everything.
Verify the rulebook: Read your CBA/handbook/contract for attendance conditions around holidays.
Keep records: Timecards, memos lifting/starting suspension, and holiday schedules.
If denied: Ask HR for a written basis (law/policy clause). If you believe the denial conflicts with minimum standards or your CBA, consider SEnA (conciliation-mediation) before a formal claim.

For employers/HR

State conditions clearly in policies/CBA (preceding/succeeding day requirements; treatment of suspended employees).
Be consistent to avoid creating contrary practice.
Mind preventive suspension limits: If extended, reinstate to payroll to avoid liability and to clarify that wage-based benefits (including holiday pay) resume.
Document denials with specific policy/legal bases; release undisputed amounts promptly.

FAQs

Q: I was preventively suspended (no pay) and a regular holiday fell in the middle. Do I get 100% unworked holiday pay? Generally no, because you were absent (and not on paid leave) on the workday immediately preceding the holiday.

Q: My suspension started the day after the regular holiday. I worked the day before. Do I still get the unworked holiday pay? Usually yes, since you met the preceding-day requirement—unless your CBA/policy also requires presence on the succeeding day, in which case your new absence (due to suspension) may defeat entitlement.

Q: We have payroll reinstatement during an extended investigation. Do regular-holiday and special-day rules apply? Yes. You’re on paid status; regular-holiday pay accrues (if unworked). For special days, normal rules apply (no work, no pay unless the policy/CBA grants pay).

Q: If my suspension is later ruled illegal, can I recover holiday pay? Often yes, to the extent backwages include wage-based benefits falling within the covered period—subject to the exact relief granted by the decision.

Takeaways

No-pay suspension typically breaks entitlement to unworked regular-holiday pay and leaves special days unpaid, absent a more favorable CBA/contract/practice.
Payroll reinstatement or any paid status revives normal holiday entitlements.
Attendance conditions (preceding—and sometimes succeeding—workday) are decisive for unworked regular holidays.
Always check the CBA/contract/handbook: they can grant better benefits than the legal minimum.

If you’d like, I can turn this into a one-page policy memo (with sample clauses for CBAs/handbooks) or a quick employee explainer you can hand to HR.