Is an AWOL Employee Entitled to Salary in the Philippines?

A comprehensive guide for employers and employees

Short answer

No. An employee who is AWOL (absent without official leave) is not entitled to salary for the period of absence under the Philippines’ “no work, no pay” principle. However, the employee remains entitled to: (a) wages already earned before going AWOL, (b) pro-rated 13th-month pay for services actually rendered, and (c) conversion to cash of unused Service Incentive Leave (SIL), if applicable, upon separation. Depending on status and company policy, holiday pay rules and certain statutory or company-granted benefits may still apply.

This article explains the legal bases, nuances, and practical handling.

Legal foundations

“No work, no pay.” A well-entrenched principle in labor law and jurisprudence: employees are paid for work actually performed, except for statutory paid days and company-granted paid leaves. Unapproved absences are without pay.
AWOL vs. abandonment vs. mere absence.
- AWOL is an unexcused absence or failure to report to work without permission.
- Abandonment is a dismissal ground that requires: (1) failure to report for work without valid reason and (2) a clear intention to sever employment (animus deserendi). Not every AWOL equals abandonment.
- Habitual absenteeism can amount to gross and habitual neglect of duties (a just cause for dismissal).
- Other just causes may also apply (e.g., willful disobedience), depending on facts.
Due process still applies. Even for AWOL/abandonment, employers must observe procedural due process (the two-notice rule and an opportunity to be heard) before imposing termination or major penalties.
Key statutes and doctrines (high level).
- Labor Code (as amended):
  - Art. 297 (old 282) – just causes for termination (e.g., neglect of duties).
  - Art. 95 – Service Incentive Leave (at least 5 days with pay after 1 year of service) and its commutation at separation if unused.
- P.D. 851 – 13th-Month Pay for private-sector rank-and-file; payable pro-rata based on actual wage earned.
- Holiday pay rules under the Labor Code and DOLE issuances.
- Preventive suspension rules under due-process jurisprudence and DOLE regulations.

What pay and benefits are (and aren’t) due during AWOL

1) Basic salary

Not payable for days the employee is on AWOL. This is a direct application of no work, no pay.
Already-earned wages (for work performed before the AWOL period) must be paid.

2) 13th-month pay

Still due on a pro-rated basis for services actually rendered within the calendar year up to separation, even if the employee is dismissed for cause (AWOL does not forfeit amounts already earned).
Formula (simple): 13th-month pay = (Total basic salary actually earned within the year) ÷ 12 Days of AWOL reduce the “basic salary actually earned,” thereby reducing the pro-rated amount.

3) Service Incentive Leave (SIL)

Employees who earned SIL (generally after 1 year of service, subject to legal exemptions) have 5 days with pay per year.
Unused SIL must be commuted to cash at separation, regardless of the cause of separation, unless a valid exemption applies (e.g., establishments already providing equivalent or better leave).

4) Company-granted leaves (VL/SL beyond SIL)

These are contractual (policy or CBA-based). If the employee has available paid leave credits and company rules allow charging unplanned absences retroactively to paid leave, the absence may be paid by using credits. Otherwise, AWOL days are unpaid.

5) Holiday pay (important distinctions)

Regular holidays (daily-paid employees): If no work, the rule commonly requires that the employee be present or on leave with pay on the workday immediately preceding the regular holiday to be entitled to the 100% holiday pay. AWOL the day before typically disqualifies entitlement.
Regular holidays (monthly-paid employees): Generally counted as paid days within the monthly salary; AWOL handling follows company policy for salary deductions.
Special non-working days: “No work, no pay” typically applies unless there is a more favorable company policy or CBA.

6) Statutory benefits not strictly “salary”

SSS, PhilHealth, Pag-IBIG contributions are linked to actual payroll. No wages → no employee-side contributions for that payroll run.
Government-paid benefits (e.g., SSS sickness/maternity cash benefits) follow their own eligibility rules. If the employee is on approved benefit leave, that is not AWOL.

7) Deductions and penalties

Wage deductions must have a lawful basis (law, regulation, court/DOLE order, CBA, written employee authorization for lawful purposes).
Treating AWOL as “leave without pay” is not a punitive deduction; it is a mere non-payment for unworked time as allowed by the no work, no pay rule.

AWOL, abandonment, and dismissal: process and consequences

For employers (procedural guide)

Document the absence. Track dates, shift schedules, attempts to contact, and any earlier attendance issues.
Issue a “return-to-work” or “explain” memo to the employee’s last known address and official channels, giving a reasonable period to respond and report back.
Evaluate the explanation. Medical emergencies, force majeure, protected leaves, or proof of prior permission may negate AWOL.
Apply proportional discipline if warranted (warning, suspension) or proceed with dismissal only if a just cause exists (e.g., abandonment or gross and habitual neglect), observing:
- First notice (charge and directive to explain)
- Opportunity to be heard (hearing or written defense)
- Second notice (decision)
If dismissal ensues: Prepare final pay (earned wages, pro-rated 13th-month, cash conversion of unused SIL, other due benefits) and release within 30 days from separation consistent with DOLE labor advisories.

For employees (rights and remedies)

Respond promptly and honestly to AWOL notices; submit evidence (e.g., medical certificates).
If termination pushes through without just cause or without due process, you may file a case for illegal dismissal (claiming backwages, reinstatement or separation pay, plus damages/attorney’s fees as warranted).
AWOL does not automatically equal abandonment. The employer must prove intent to sever the employment relationship, not just absence.

Edge cases & FAQs

Can an AWOL employee demand salary for the days absent? No. No work, no pay.
Is an AWOL employee still entitled to final pay? Yes. Final pay includes all amounts already earned (e.g., unpaid regular wages up to last working day, pro-rated 13th-month, unused SIL commutation, any unpaid allowances/commissions already earned under company policy).
What if the employee’s absence was for a medical emergency? If the employee proves a valid cause and the absence is regularized (e.g., sick leave, SIL, company SL), it may cease to be AWOL, and paid leave may apply if credits exist.
Does labeling someone “AWOL” waive due process for dismissal? No. Termination for AWOL-related grounds still requires twin-notice and hearing.
Holiday pay if AWOL around a holiday?
- Daily-paid: AWOL the workday before a regular holiday typically forfeits the “no work, with pay” entitlement for that holiday.
- Monthly-paid: Typically covered by monthly salary; check company rules for salary deductions due to AWOL.
Preventive suspension vs. AWOL pay: Preventive suspension (pending investigation) is generally unpaid, limited to 30 days; beyond 30 days, the extended period is paid if the employer continues the suspension.
Constructive dismissal vs. AWOL: If the employee stopped reporting due to intolerable or illegal employer acts, the “AWOL” label may fail; courts assess intent and context. If constructive dismissal is proven, backwages and separation pay may be awarded.

Practical payroll computations (illustrative)

Daily-paid worker, AWOL for 3 scheduled workdays:
- Salary for those 3 days: ₱0.00 (no work, no pay).
- 13th-month: reduced, because basic salary actually earned is lower.
- Regular holiday within the period: payable only if eligibility conditions (e.g., presence/paid leave on the preceding workday) are met.
Monthly-paid worker, AWOL for 2 days in a 26-workday month:
- Employer may pro-rate or deduct equivalent of 2 workdays under policy.
- 13th-month still pro-rated to actual wages earned.

Employer policy checklist

Define AWOL and its reporting/approval rules (who approves, how to notify, documentary requirements).
Explain consequences (non-payment; progressive discipline; grounds for termination).
Clarify leave usage (when unplanned absences can be charged to paid leave).
State holiday pay eligibility clearly for daily-paid vs monthly-paid.
Outline due-process steps and timelines for AWOL/abandonment cases.
Keep accurate records (timekeeping, notices, receipts of service of memos).
Train supervisors on documentation and compassionate exceptions (e.g., emergencies, disasters, protected leaves).

Takeaways

AWOL ≠ salary. The period of unapproved absence is unpaid.
Earned benefits survive. Wages earned pre-AWOL, pro-rated 13th-month, and unused SIL remain payable.
Process matters. Discipline or termination linked to AWOL must comply with due process; abandonment requires proof of intent to sever.
Holiday pay and leave credits hinge on employment classification (daily-paid vs monthly-paid), eligibility rules, and company policy.

This article provides general legal information, not legal advice. For specific cases, consult counsel or DOLE.