1) The basics: what a “regular holiday” means

In Philippine labor law, regular holidays are days that the State declares as holidays where, as a general rule, employees are entitled to holiday pay even if they do not work, subject to eligibility rules. The core concept is that a regular holiday is paid time off by law, unless an exception applies.

This is different from a special non-working day, where the default rule is typically “no work, no pay” unless a company policy/CBA provides otherwise.

2) Primary legal foundations

The rules commonly applied come from:

Labor Code provisions on holiday pay (commonly referenced as the Labor Code article on Holiday Pay), and
The Omnibus Rules Implementing the Labor Code, particularly the rules on holiday pay coverage, entitlement, and exclusions.

Collective bargaining agreements (CBAs), employment contracts, and company policies may provide better benefits, but they cannot provide less than the law.

3) Who is covered by holiday pay (general rule) and who may be excluded

Covered (general rule)

Holiday pay generally applies to rank-and-file employees, whether paid daily or monthly, including many employees paid by results (e.g., piece-rate), subject to the implementing rules.

Common exclusions (under implementing rules)

Holiday pay rules traditionally exclude certain categories such as:

Government employees (covered by civil service rules),
Managerial employees (as defined by law),
Field personnel (those who regularly perform work away from the employer’s premises and whose actual hours cannot be determined with reasonable certainty),
Domestic helpers/household service workers (covered by the Kasambahay law framework, which has its own standards),
Workers paid purely by results in some contexts, subject to conditions in the rules,
And, in some interpretations of the implementing rules, employees of certain small retail/service establishments below a threshold headcount may have different coverage.

Because coverage can be fact-specific (job classification, pay scheme, establishment type), employers should document why an employee is treated as excluded.

4) Standard pay rules on regular holidays (quick reference)

Assuming the employee is covered and entitled:

If the employee does not work on the regular holiday

Holiday Pay = 100% of the daily basic wage.

If the employee works on the regular holiday

At least 200% of the daily basic wage for the first 8 hours.

If the holiday falls on the employee’s rest day and the employee works

A higher premium applies (commonly expressed as 200% plus an additional premium based on rest day rules).

Overtime on a regular holiday

Overtime premium is applied on top of the holiday rate (commonly computed as an additional percentage of the hourly rate on that day).

Practical note: “Monthly-paid” employees are often paid a fixed monthly salary that already factors in paid regular holidays, but lawful deductions for unpaid absences may still apply depending on entitlement rules and the employer’s computation method.

5) The key eligibility rule that creates most disputes

A widely applied rule is:

To be entitled to regular holiday pay when not working, the employee must be present or on paid leave on the workday immediately preceding the holiday. If there is no workday immediately preceding the holiday (e.g., the day before is a rest day), employers often look to the employee’s last working day before the holiday.

This is where leave without pay (LWOP) becomes crucial.

6) LWOP and a regular holiday: what happens to pay?

Scenario A: LWOP is taken on the regular holiday itself

This is unusual, because the holiday is already a non-working paid day by law (if the employee is entitled). Labeling the holiday as “LWOP” does not automatically remove the statutory holiday pay entitlement.

If the employee is otherwise entitled to holiday pay, the employer generally should not treat the holiday as unpaid merely because the employee filed LWOP for that date.
An employer policy requiring employees to “file leave” on a regular holiday to avoid paying holiday pay is a red flag and may be viewed as circumvention of holiday pay protections.

Bottom line: the legal question is not “did the employee file LWOP on the holiday,” but “is the employee entitled to holiday pay under the eligibility rules?”

Scenario B: LWOP is taken on the workday immediately preceding the regular holiday

This is the most common and impactful situation.

If the employee is on LWOP (or is absent without pay) on the day immediately preceding the regular holiday, the employee may be not entitled to holiday pay for that holiday—unless the employee works on the holiday (in which case holiday premium pay rules apply).

Example: Holiday is Monday. Employee is on LWOP on Friday (last working day). If eligible-rule is applied, employer may lawfully treat Monday’s regular holiday pay as not due.

Scenario C: LWOP covers a “block” of days that includes the holiday

If an employee is on an approved unpaid leave spanning multiple days and a regular holiday falls inside that period, employers often apply the same logic: the employee is not on pay status on the last working day before the holiday, so holiday pay may not be due.

However, this is where documentation matters:

The leave must be clearly approved as unpaid, and
The payroll basis (daily vs monthly, monthly salary deductions, etc.) must be consistent and transparent.

Scenario D: Leave with pay (vacation/sick leave) immediately before the holiday

If the employee is on paid leave the day immediately preceding the holiday, the employee typically remains entitled to holiday pay.

7) Common payroll pitfalls (and how to avoid them)

Pitfall 1: Automatically tagging the holiday as LWOP

A regular holiday is not “unpaid” just because HR encoded it as LWOP. If the employee is legally entitled, the employer must pay.

Better practice: encode it as Regular Holiday (Paid/Unpaid depending on entitlement), not “LWOP.”

Pitfall 2: Inconsistent “day immediately preceding” rule

Some employers use “calendar day” (e.g., Sunday) instead of “workday/last working day,” causing disputes.

Better practice: state in policy that eligibility is based on the workday immediately preceding (or the last scheduled working day) consistent with implementing rules.

Pitfall 3: Deductions for monthly-paid employees without a clear method

Monthly-paid arrangements can obscure holiday pay computations. Deductions for unpaid absences must be:

Lawful,
Properly computed, and
Clearly explained in payslips/policies.

8) Can an employee be disciplined for LWOP related to a regular holiday?

It depends on what actually happened: approved leave vs unauthorized absence, policy compliance, and intent.

A) If LWOP was properly requested and approved

If the employer approved the LWOP (whether it’s the day before/after a holiday or part of a longer block), disciplinary action is generally not appropriate unless there was:

Fraud/misrepresentation (e.g., falsified reason), or
A separate policy violation.

B) If the employee filed LWOP but did not get approval and still went absent

This is the classic disciplinary scenario: unauthorized absence / AWOL.

Possible grounds (depending on gravity and frequency):

Violation of company rules on attendance and leave approval,
Willful disobedience (if a lawful, reasonable rule/order was violated),
Gross and habitual neglect of duties (in cases of repeated absenteeism/tardiness).

Key point: One isolated unauthorized absence is not automatically a terminable offense; employers typically rely on progressive discipline, unless the rules and facts justify a higher penalty.

C) Refusal to work on a regular holiday when required

Employers may require work on a regular holiday for business necessity, provided premiums are paid. If an employee refuses a lawful and reasonable order to work (and no valid justification exists), it may be treated as insubordination, subject to due process and proportional penalty.

D) “Taking LWOP to avoid holiday pay” as misconduct

Requesting LWOP does not, by itself, prove misconduct. But if there is a pattern of manipulating schedules (e.g., repeatedly filing questionable leave entries, misrepresenting attendance, falsifying time records), discipline may be justified under misconduct/fraud-related rules.

9) Due process is non-negotiable in discipline

Even when there is a valid ground, the employer must observe procedural due process (commonly:

a written notice of the charge with facts and policy basis,
a reasonable chance to explain and be heard, and
a written decision/notice of penalty).

Skipping due process can expose the employer to liability even if the reason is valid.

10) Practical guidance (policy checklist)

For employers

Define clearly:
- what counts as approved leave,
- cutoff times for leave filing/approval,
- how the preceding workday rule is applied,
- how holiday pay is computed for daily-paid vs monthly-paid.
Use consistent codes in payroll:
- “Regular Holiday—Paid” vs “Regular Holiday—Not Entitled,” rather than “LWOP” for holidays.
Apply progressive discipline and document warnings for attendance issues.
Ensure managers don’t impose “file leave on the holiday or you won’t get paid” practices.

For employees

Get LWOP approvals in writing (email, HR system screenshot, etc.).
If taking leave around holidays, confirm how it affects entitlement under company rules (as long as the rules are lawful and not below statutory minimums).
If disciplined, respond factually and submit proof of approval/communications.

11) Frequently asked questions

Q: If I’m on LWOP the Friday before a Monday regular holiday, will I still get paid for Monday? Often no, if your employer applies the eligibility rule that you must be present or on paid leave on the preceding workday/last working day.

Q: Can the company require me to file LWOP on a regular holiday? If you are otherwise entitled to holiday pay, requiring LWOP just to avoid paying the statutory benefit is problematic. A regular holiday is legally designed as a paid day (if entitled).

Q: Can I be terminated for being absent around a holiday? Not automatically. Termination usually requires a legally recognized just cause and proportionality, typically supported by repeated violations or serious circumstances, plus due process.

This article is for general information and workplace-policy guidance in the Philippine labor context. For application to a specific case (industry, pay scheme, CBA terms, and the exact leave/attendance timeline matter), consult competent labor counsel or the appropriate DOLE field office.