1. Overview: the basic rule
In Philippine employment, wages are generally tied to work actually performed. This is the core of the “no work, no pay” principle: if an employee does not work on a particular day, the employer has no legal obligation to pay wages for that day—unless a law, contract, company policy, or collective bargaining agreement (CBA) provides otherwise.
However, this principle is not absolute. Philippine labor law carves out multiple exceptions where pay is due even without work (e.g., holidays, leaves, certain suspensions). Understanding whether an employer may deduct pay for an absence, or require make-up work on a Saturday, depends on:
- the nature of the absence (excused vs. unexcused),
- the work schedule and wage scheme, and
- due process and policy compliance.
2. Legal foundations
2.1. Labor Code framework
The Labor Code and its implementing rules recognize that wages are compensation for services rendered. Daily-paid employees are paid only for actual days worked, while monthly-paid employees are presumed to be paid for all days in the month including rest days and holidays, unless their contract shows a different computation.
2.2. Freedom to set schedules, within limits
Employers have management prerogative to fix work schedules, assign shifts, and require reasonable overtime or work on special days—so long as they follow labor standards on:
- maximum hours of work,
- weekly rest day,
- overtime/holiday premiums, and
- non-diminution of benefits.
2.3. Company policy and CBA
Many “make-up day” and deduction rules are not spelled out in statutes but in:
- employee handbooks,
- HR policies,
- employment contracts, or
- CBAs.
These instruments are enforceable if they do not undercut minimum labor standards and if employees were properly informed.
3. “No Work, No Pay” in practice
3.1. Who is most affected?
- Daily-paid employees: strictly “no work, no pay.” One unexcused absence generally equals one day’s wage deduction.
- Monthly-paid employees: still subject to deduction for absences, but computation matters. Employers typically convert monthly pay to an equivalent daily rate for absence deductions.
3.2. Absences vs. tardiness/undertime
“No work, no pay” covers not just full-day absences but also:
- tardiness,
- undertime,
- leaving early, or
- partial-day failures to work.
Deductions must be proportionate and based on the agreed wage computation method.
3.3. When deductions are not allowed
Even if no work is done, pay may still be required where the law treats the day as “paid” by default or by agreement. Classic examples include:
- regular holidays (if employee is entitled to holiday pay),
- service incentive leave and other approved leaves,
- authorized or employer-initiated work suspensions (depending on length and cause),
- company-granted paid breaks or allowances, and
- benefits already integrated into monthly pay that cannot be unilaterally reduced.
4. Excused vs. unexcused absences
4.1. Excused absence
An absence is excused when supported by law or authorized by employer policy, such as:
- sick leave with notice/medical proof,
- approved vacation leave,
- maternity/paternity/parental leaves,
- bereavement leave if company policy allows,
- emergency leave recognized by management.
For excused absences, the key question is whether the leave is paid. If paid, “no work, no pay” does not apply.
4.2. Unexcused absence
An absence is unexcused when:
- the employee fails to report for work without valid reason,
- does not follow required notice procedures, or
- cannot produce proof required by policy.
Unexcused absences are generally:
- unpaid, and
- may be a disciplinary ground (e.g., absenteeism, AWOL, neglect of duty), subject to due process.
5. Saturday make-up work: what it is
“Saturday make-up work” typically means requiring an employee who was absent on a weekday to work on a Saturday to “recover” lost hours or output.
In the Philippines, Saturday is not automatically a workday or a rest day. Its status depends on the company’s established workweek. Common setups:
- 6-day workweek: Saturday is a regular workday.
- 5-day workweek: Saturday is usually a rest day.
This distinction controls legality and pay.
6. When Saturday make-up work is lawful
6.1. If Saturday is a regular workday (6-day workweek)
If the company normally works Monday-Saturday, then requiring an absent employee to report on Saturday is generally lawful because:
- it is part of the regular schedule, and
- no premium/rest-day pay is triggered.
Pay effect:
- The original unexcused weekday absence remains unpaid.
- The Saturday work is paid as a regular day.
- Employers must avoid presenting it as a “swap” that cancels deductions unless policy allows such swapping.
6.2. If Saturday is a rest day (5-day workweek)
If Saturday is the employee’s rest day, requiring make-up work there is treated as rest-day work.
This is lawful only if:
- there is a valid business need, or the policy authorizes make-up work,
- the employee is properly notified, and
- rest-day premium rates are paid.
Pay effect:
- Weekday unexcused absence: still unpaid.
- Saturday work: paid with rest-day premium, not at regular rate.
6.3. If Saturday make-up is voluntary
Some companies allow employees to voluntarily “make up” hours to avoid loss of income. This can be lawful if:
- clearly provided in policy,
- does not reduce statutory premiums (e.g., forcing a “regular-rate Saturday” when it is legally a rest day), and
- is not coercive.
7. Limits and compliance requirements
7.1. Hours of work rules
Make-up work cannot violate labor standards on hours. Key limits:
- 8 hours per day normal working time.
- Work beyond 8 hours is overtime requiring overtime premium.
- Even if called “make-up,” hours beyond the daily limit still count as overtime.
7.2. Weekly rest day
Employees are entitled to a weekly rest day. Employers may not systematically deprive workers of rest days by labeling them “make-up.” If Saturday is the rest day, the employee must still receive adequate rest elsewhere, and premiums apply.
7.3. Non-diminution of benefits
If the company historically paid absences or allowed weekday-Saturday swaps without deduction, the employer may not remove that benefit unilaterally if it has ripened into a company practice.
7.4. No “double penalty”
Employers must avoid punishing a single unexcused absence twice in substance. Example:
- deducting one day’s pay and
- requiring make-up on rest day without premium or with threat of further deduction.
Deduction (economic consequence) and discipline (administrative consequence) may both exist, but discipline must be proportionate and follow due process.
8. Due process for discipline tied to unexcused absences
Unexcused absence can lead to sanctions up to dismissal for habitual absenteeism or AWOL, but employers must follow procedural due process:
- First written notice specifying the charge and grounds.
- Opportunity to explain or be heard (written explanation and/or hearing).
- Second written notice stating the decision and penalty.
Failure to observe this process risks liability for illegal dismissal or improper discipline.
9. Special situations
9.1. Holiday near the absence
If the employee is absent without pay on the workday immediately preceding a regular holiday, the rule on holiday pay entitlement may be affected, depending on whether the absence is excused/paid and on company policy. This is a common dispute area; employers must apply the holiday pay rules carefully.
9.2. Flexible work arrangements
Under DOLE-recognized flexible work setups (compressed workweek, flexi-time, hybrid schedules), “make-up work” can be structured more freely, but total hours, rest days, and premium rules still apply.
9.3. Piece-rate/task-based workers
For workers paid by output, “no work, no pay” operates differently. Missing a day may not trigger a “day deduction” per se, but reduces compensable output. Make-up work is allowed if it respects safety, hours, and rest rules.
10. Practical guidance for employers
Employers should:
- put make-up work rules in a clear written policy,
- specify whether make-up prevents wage deduction or not,
- define Saturday status (regular vs rest day),
- ensure correct premium pay,
- track hours to avoid overtime violations, and
- implement discipline only with due process.
Ambiguity in policy is often construed against the employer.
11. Practical guidance for employees
Employees should:
- check their contract/handbook for make-up rules,
- confirm whether Saturday is a regular day or rest day,
- ensure premiums are paid when Saturday is a rest day or when hours exceed 8,
- keep records of notices and actual hours worked, and
- respond promptly to show-cause memos to protect due-process rights.
12. Key takeaways
- Unexcused absences are normally unpaid under “no work, no pay.”
- Saturday make-up work is not illegal by itself; legality turns on whether Saturday is a regular workday or rest day.
- If Saturday is a rest day, make-up work must be paid with rest-day premium and comply with rest-day entitlement.
- “Make-up work” does not erase the right of employers to deduct pay for the original unexcused absence unless a policy expressly allows a swap.
- Any disciplinary action for absenteeism must follow two-notice due process.
- Policies and consistent practice matter a lot in PH labor disputes—clarity and fairness reduce risk for everyone.
If you want, I can draft a sample company policy section on make-up work that’s aligned with Philippine labor standards, or help analyze a specific scenario (e.g., 5-day workweek + repeated absences + holiday issues).