Introduction

In the Philippine labor landscape, holidays are governed by specific provisions under the Labor Code and related Department of Labor and Employment (DOLE) regulations. These rules ensure that employees receive appropriate compensation while allowing employers flexibility in operations. A key issue arises when employees are required to work on holidays but fail to report, leading to absences that must be properly documented and reflected on payslips. This practice, known as marking absences for holiday non-attendance, involves legal obligations for accurate payroll processing, deduction calculations, and compliance with transparency requirements. Failure to handle this correctly can result in disputes, penalties, or claims for underpayment.

This article explores the legal framework, procedural requirements, implications for employers and employees, and best practices for marking such absences on payslips. It draws from the Labor Code of the Philippines (Presidential Decree No. 442, as amended), Omnibus Rules Implementing the Labor Code, and relevant DOLE advisories and jurisprudence.

Legal Basis for Holiday Work and Non-Attendance

Classification of Holidays

Philippine holidays are categorized into regular holidays and special non-working holidays, as outlined in Republic Act No. 9492 (Holiday Economics Law) and annual proclamations from the Office of the President.

Regular Holidays: There are 12 regular holidays annually, such as New Year's Day, Araw ng Kagitingan, Labor Day, Independence Day, and Christmas Day. On these days, no work is generally required, but employees receive 100% of their basic pay if they do not work. If work is performed, employees are entitled to 200% of their basic pay (or 260% if it falls on a rest day).
Special Non-Working Holidays: These include days like All Saints' Day, Ninoy Aquino Day, and additional days declared by the President. No pay is given if no work is performed, but if work occurs, employees receive an additional 30% premium on their basic pay (or 50% if on a rest day).

Employers may require employees to work on either type of holiday, provided they comply with premium pay rules and, in some cases, obtain DOLE approval for exemptions or adjustments in industries like retail or services.

When Non-Attendance Constitutes an Absence

Holiday non-attendance becomes an absence only if the employer has scheduled work on that day and the employee fails to report without valid justification. Under Article 82 of the Labor Code, holidays are considered non-working days unless operational necessities demand otherwise. If work is mandated (e.g., in 24/7 operations like hospitals, hotels, or manufacturing), failure to attend is treated as an unauthorized absence, similar to any regular working day.

Key conditions for qualifying as an absence:

The employee must be notified in advance of the holiday work requirement, typically through company policies, memos, or collective bargaining agreements (CBAs).
The absence must not be excused (e.g., due to illness with a medical certificate, approved leave, or force majeure).
For regular holidays, if the employee was absent without pay on the working day immediately preceding the holiday, they forfeit holiday pay entirely (Rule IV, Book III, Omnibus Rules). However, this preceding absence is marked separately, not as holiday non-attendance.

Jurisprudence from the Supreme Court, such as in Asian Transmission Corporation v. CA (G.R. No. 144664, 2004), reinforces that holiday pay is a statutory right, but non-attendance when required can lead to disciplinary action and payroll deductions.

Payslip Requirements Under Philippine Law

Mandatory Payslip Contents

DOLE Department Order No. 195-18 mandates that employers provide itemized payslips to employees for each pay period. Payslips must clearly detail:

Basic salary.
Overtime, night differentials, and premiums (including holiday premiums).
Allowances and other earnings.
Deductions, including those for absences, tardiness, loans, taxes, SSS, PhilHealth, and Pag-IBIG contributions.

Absences, including those on holidays, must be explicitly marked under the "Deductions" or "Absences" section. The entry should specify the date, type (e.g., "Unauthorized Absence on Holiday - [Date]"), and the corresponding deduction amount, calculated based on the employee's daily rate.

Failure to provide detailed payslips can result in fines of up to PHP 5,000 per violation per employee, as enforced by DOLE regional offices.

Calculating Deductions for Holiday Non-Attendance

Deductions for holiday absences are computed differently based on holiday type:

Regular Holidays: If work was required but not performed, the deduction is equivalent to 200% of the basic daily rate (since the employee forfeits both the basic holiday pay and the premium). However, if the employee qualifies for basic holiday pay (i.e., worked the preceding day), only the premium portion is deducted.
Special Non-Working Holidays: Deduction is for the additional 30% premium if work was scheduled but not done. No deduction for basic pay, as it's not payable without work.

The daily rate is derived from the monthly salary divided by the number of working days (typically 313 days annually for monthly-paid employees, per DOLE Advisory No. 02-04). For hourly-paid workers, it's based on actual hours missed.

Example Calculation:

Assume an employee with a PHP 500 daily basic rate.
On a regular holiday where work is required: Expected pay = PHP 1,000 (200%).
If absent: Deduction = PHP 1,000.
Marked on payslip as: "Absence on [Holiday Date] - PHP 1,000."

If the absence triggers forfeiture of other benefits (e.g., under a CBA), these must also be itemized.

Procedures for Marking Absences on Payslips

Documentation and Verification

Before marking an absence:

Verify the absence through attendance records (e.g., biometric logs, timesheets).
Allow the employee to explain via a notice to explain (NTE) to ensure due process, as required under Article 292 of the Labor Code for disciplinary actions.
If unjustified, record it in the payroll system.

Payslips should use clear, standardized terminology:

"Holiday Absence - Unauthorized" for non-attendance.
Include the holiday name and date for reference.
Aggregate multiple absences if applicable, but itemize for transparency.

Electronic payslips are permissible under Republic Act No. 8792 (E-Commerce Act), provided they are secure and accessible.

Employer Obligations

Maintain records for at least three years, as per DOLE rules.
Ensure non-discriminatory application; absences cannot be marked based on protected characteristics (e.g., gender, religion under Republic Act No. 9710).
In unionized settings, consult the CBA, which may have specific provisions on holiday work and absences.

Employee Rights and Remedies

Employees can contest marked absences by filing complaints with DOLE or the National Labor Relations Commission (NLRC). If proven erroneous, they are entitled to back pay, damages, and attorney's fees. Under Article 94, holiday pay disputes must be resolved in favor of the employee if ambiguity exists.

Implications and Consequences

For Employers

Improper marking can lead to:

Labor claims for illegal deductions (Article 113, Labor Code).
Administrative fines from DOLE (up to PHP 100,000 for repeated violations).
Damage to employee relations and potential strikes.

Best practices include training HR personnel on payroll accuracy and using automated systems to minimize errors.

For Employees

Marked absences affect net pay, performance evaluations, and eligibility for promotions or bonuses. Chronic absences may lead to termination after due process (Article 297, Labor Code). Employees should monitor payslips and report discrepancies promptly.

Special Considerations

Force Majeure: Absences due to natural disasters (e.g., typhoons) on holidays are not deductible if work was impossible (DOLE Advisory No. 01-20).
COVID-19 and Similar Emergencies: Post-pandemic guidelines (e.g., DOLE Labor Advisory No. 17-20) allow flexible arrangements, where holiday non-attendance might not be marked as absence if under work-from-home setups.
Industry-Specific Rules: Exemptions apply to certain sectors (e.g., BPO under Republic Act No. 11165), where holiday work is common, and absences are strictly monitored.
Tax Implications: Deductions for absences are non-taxable to the employee but must be reported correctly in BIR forms.

Case Studies and Examples

Example 1: Regular Holiday Absence

An employee in a retail store is scheduled to work on Independence Day (regular holiday) but calls in sick without a certificate. The absence is marked as "Unauthorized Holiday Absence - June 12" with a deduction of PHP 1,200 (200% of PHP 600 daily rate). If contested and upheld, disciplinary action follows.

Example 2: Special Non-Working Holiday

In a manufacturing firm, work is required on All Saints' Day. An employee fails to report. Deduction: PHP 195 (30% premium on PHP 650 daily rate), marked as "Special Holiday Absence - November 1."

Jurisprudential Insights

In San Miguel Corporation v. NLRC (G.R. No. 147651, 2004), the Court ruled that absences on required holiday work must be deducted only after verifying just cause, emphasizing due process.

Conclusion

Marking absences on payslips for holiday non-attendance is a critical aspect of Philippine labor compliance, balancing employer needs with employee rights. By adhering to the Labor Code, DOLE regulations, and transparent payroll practices, disputes can be minimized. Employers should prioritize accurate documentation, while employees must understand their obligations on holidays. Ultimately, this mechanism promotes fairness in compensation and accountability in the workplace, contributing to a stable labor environment. For specific applications, consulting legal experts or DOLE is advisable to address unique circumstances.