Overview

Typhoons, floods, earthquakes, and other natural hazards regularly disrupt business operations in the Philippines. When work is cancelled or suspended, the central payroll question is: may an employer deduct pay? The short answer, most of the time, is yes under the “no-work, no-pay” principle—but there are important exceptions, edge cases, and best-practice rules you should know.

Core Legal Framework

No-work, no-pay principle. Wages are compensation for work actually performed. If no work is done, wages are generally not due—unless a law, regulation, collective bargaining agreement (CBA), employment contract, or established company practice grants pay despite the absence.
Authorized temporary suspension of work/operations. Employers may temporarily suspend operations for bona fide reasons (e.g., typhoons, floods, power outages) without paying wages for the affected days, provided there is no fault of the employer and no contrary company policy/CBA.
Six-month cap on temporary suspension. If operations are suspended beyond six months, the situation may transition to authorized cause termination (with separation pay) or require reinstatement when operations resume.
Minimum labor standards still apply. If any work is actually rendered, minimum wage, overtime, night shift differential, and holiday/rest-day premium rules still apply to the hours worked.

When Pay May Be Deducted (or Not Owed)

Full-day suspension with no work performed
- If operations are called off for the entire day and employees perform no work, pay for that day is generally not owed.
- Applies to both daily-paid and monthly-paid workers, unless company policy/CBA/practice says otherwise. (Many employers still pay monthly-paid staff; that’s a voluntary benefit, not a statutory duty.)
Employee cannot report due to unsafe conditions but the workplace is open
- If the business remains open but an employee chooses or is unable to report because of weather hazards, absences are generally unpaid.
- Employers may, as a humanitarian measure, allow use of paid leave credits (if available) or excuse the absence without pay. They should not force employees to use vacation leave unless their policy/CBA allows it and the policy is reasonable and consistently applied.
Partial-day suspensions
- If staff worked for part of the day before suspension, they are entitled to wages for hours actually worked.
- There is no statutory “reporting pay” minimum (e.g., guaranteed 3–4 hours) in private sector standards; pay is strictly for hours rendered unless a policy/CBA provides a guarantee.
Temporary closures to prevent losses or ensure safety
- If management sends everyone home due to imminent danger or infrastructure failure, hours not worked are unpaid, unless a policy/CBA/practice says otherwise.

When Pay Cannot Be Deducted (or Must Be Paid)

Work is performed (onsite or remote)
- Any hours actually worked—including telework under a telecommuting arrangement—must be paid.
- Applicable premiums (overtime, holiday/rest-day, night shift differential) still apply.
Regular holidays
- If a weather suspension falls on a regular holiday, an eligible worker who does not work is entitled to 100% of the daily wage, subject to the usual rules on holiday pay coverage/exclusions. If they do work, premium rules for regular holidays apply.
- For special (non-working) days, the general rule is no work, no pay; if work is done, the special-day premium applies.
Contract/CBA or company practice grants pay
- If the contract, CBA, handbook, or a long-standing, deliberate, and consistent practice provides pay during weather suspensions, the employer must honor it.
Employer at fault
- If the stoppage is due to the employer’s fault or negligence (not force majeure), wages may still be due for the unworked time.

Allowable vs. Prohibited Salary Deductions

Allowable (common examples): Statutory contributions (SSS, PhilHealth, Pag-IBIG, tax withholding), court-ordered deductions, union dues with written authorization, and prorated pay for unworked days (that is not a “deduction” but simply no wage due).
Prohibited: Fines or deductions without legal basis or without the employee’s written authorization (e.g., penalizing the employee for failing to report during a typhoon if policy/law doesn’t allow it), deductions that drive pay below minimum for hours actually worked, and unilateral charges for damages/equipment losses absent due process and legal basis.

Special Scenarios & Pay Computation Pointers

Daily-paid vs. Monthly-paid
- Daily-paid: Paid for days actually worked; unworked suspension days are unpaid.
- Monthly-paid: Typically paid a fixed monthly rate covering all days of the month, but employers often prorate for unpaid absences or suspensions if their policy/contract allows and it is uniformly applied. Check your handbook/CBA.
Telework/Work-from-Home (WFH)
- If the employer implements telework during a suspension and the employee performs work, pay is due as normal.
- If telework is feasible but not offered and employees therefore do not work, the default remains no-work, no-pay (unless policy/CBA says otherwise).
Hazard pay
- Not mandated for private sector solely because of a calamity. It becomes due only if required by a CBA, contract, policy, or as part of a government program for specific sectors.
Transport suspension
- If government suspends public transport but the employer remains open, absences are generally unpaid. Many employers adopt calamity leniency (e.g., excused absences, work-from-home, or shuttle services) as a good-faith measure.
Overtime, night shift differential, premiums
- If work is rendered during a suspension period (e.g., skeleton staff), the usual OT, night shift differential, rest-day, and holiday premium rules apply.
Make-up work
- Employers may allow make-up work (without overtime premium) only if it complies with legal daily/weekly hours limits and is voluntary and properly documented.

Government Announcements vs. Private Sector Obligations

Government work suspension announcements often apply to government offices and do not automatically bind the private sector. Private employers generally retain discretion to open, suspend, or adopt flexible work—subject to safety obligations and local orders that explicitly cover private establishments.
Local holiday declarations (e.g., by the President or by law) are different from mere “suspensions”; holiday pay rules apply to holidays, not to ordinary suspension days.

Flexible Work Arrangements (FWAs) During Calamities

Employers may adopt FWAs (reduced workdays/hours, compressed workweek, rotation, telecommuting) due to weather disruptions.
Consultation with employees, clear written guidelines, and notice to the DOLE (as required by prevailing regulations/advisories) are best practice.
FWAs change schedules, not statutory pay rates for hours worked.

Documentation & Communication Checklist (Employer)

Declare the suspension in writing (scope, dates/times, covered sites/units).
State the pay treatment (e.g., no-work/no-pay; option to use paid leave; telework arrangements; holiday rules if applicable).
Apply consistently across similarly situated employees to avoid discrimination issues.
Observe safety duties: do not require attendance in unsafe conditions; consider shuttle/WFH.
Keep records (attendance, notices, payroll adjustments, approvals for leave/telework).
Send DOLE notices if adopting or modifying FWAs, per current advisories/practice.

Practical Examples

Example 1: Full-day typhoon shutdown, no work rendered
- Daily-paid: Unpaid day.
- Monthly-paid: Employer may prorate (unpaid) if policy allows; otherwise paid as a benefit.
- If regular holiday: Eligible employees still get holiday pay even if no work.
Example 2: Half-day operation, staff sent home at noon
- Pay actual hours worked (e.g., 4 hours). No statutory “show-up pay” top-up unless policy/CBA provides it.
Example 3: Workplace open; transport suspended; employee absent
- Absence is generally unpaid. Employer may allow use of leave credits or WFH.
Example 4: Skeleton team works on a special (non-working) day during a flood
- Special-day premium applies to those who worked, plus OT/night diff as applicable.

Common Pitfalls

Forcing paid leave without a policy basis or employee consent.
Inconsistent application (paying some teams but not others without a valid reason).
Treating suspensions as disciplinary (e.g., imposing fines) when employees simply couldn’t report due to hazards.
Mislabeling suspensions as holidays to avoid normal pay rules for hours worked.

Employee Pointers

Check your contract, handbook, and CBA for calamity-related pay or leave benefits.
Keep evidence (photos, LGU advisories, transport notices) if you couldn’t safely report.
Ask for telework where feasible; log actual work performed.
Verify holiday status of the affected date; regular holiday rules are different.

Employer Best-Practice Add-Ons (Optional but Recommended)

Calamity leave (paid or partially paid) as a company benefit.
Calamity allowance or interest-free emergency loan.
Transport or lodging support for essential staff.
Clear telework playbooks for typhoon season.

Bottom Line

Default: Weather-related suspensions generally follow no-work, no-pay.
Exceptions: Work actually performed, regular holidays, employer fault, or policies/CBAs/practices granting pay.
Do it right: Document the suspension, communicate pay treatment clearly, apply policies consistently, and prioritize safety.