Suspension of Employee on a Regular Holiday (Philippines): A Complete Guide

This article covers what happens when an employee’s suspension overlaps with a Philippine regular holiday—including entitlement to holiday pay, how to count suspension days, due-process rules, and practical payroll computations. It’s written for the Labor Code of the Philippines (as renumbered) and standard DOLE rules/practice.

1) Quick primer: what counts as a “regular holiday”?

Regular holidays are the fixed national holidays where the default rule is “paid even if unworked.”
Typical examples include: New Year’s Day (Jan 1), Maundy Thursday, Good Friday, Araw ng Kagitingan (Apr 9), Labor Day (May 1), Independence Day (Jun 12), National Heroes Day (last Monday of Aug), Bonifacio Day (Nov 30), Christmas Day (Dec 25), and Rizal Day (Dec 30). Certain Islamic feasts are also regular holidays when proclaimed.
Holiday pay rule (baseline):
- Unworked regular holiday: 100% of the employee’s daily wage.
- Worked on a regular holiday (first 8 hours): 200% of daily wage.
- If the regular holiday falls on the employee’s scheduled rest day and is worked: 260% for the first 8 hours.
- Overtime on a regular holiday: add 30% of the hourly rate on that day (so OT on a 200% day is paid at 260% per OT hour; on a 260% day, OT is at 338% per OT hour).

Many employers (and DOLE guidance) apply an eligibility condition: the employee must be present or on leave with pay on the workday immediately preceding the regular holiday to get the unworked-holiday pay. Always check your CBA, policy, or posted DOLE advisories.

2) Types of “suspension” and why they matter for holiday pay

Not all “suspensions” are the same. Your entitlement can change depending on which situation applies.

A. Disciplinary suspension (penalty)

Imposed after due process for an infraction; usually without pay for X days.
Holiday pay during a disciplinary suspension:
- If the suspension is without pay, the employee is not “present” nor “on leave with pay” on the workday before the holiday—so unworked regular-holiday pay is generally not due.
- If the employee is required to work during the holiday despite a suspension (rare), the worked-holiday rates apply for actual hours worked.
Counting the days:
- Best practice: the written penalty must say whether the suspension is in calendar days or working days.
- If calendar days, a regular holiday counts as part of the suspension period.
- If working days, a regular holiday does not count toward the number of suspension days (because it’s not a working day).
- Ambiguity is typically construed in favor of labor—so spell this out in the disciplinary notice.

B. Preventive suspension

A temporary administrative measure (not a penalty) to keep the employee away from the workplace pending investigation when their continued presence poses a serious and imminent threat to the company or coworkers.
Maximum duration: 30 days. If the investigation needs more time and the employer extends it, the employer must reinstate the employee to work or pay wages and benefits during the extension.
Holiday pay during preventive suspension:
- Within the first 30 days (unpaid): the employee is not working and not on leave with pay ⇒ no unworked-holiday pay within that unpaid window.
- Beyond 30 days (if extended and the employer pays wages/benefits): the employee is on a paid status during the extension ⇒ unworked regular-holiday pay becomes due during the paid extension period.

C. Payroll reinstatement / reinstatement pending appeal

When the law or an order requires reinstatement without loss of seniority rights and with full backwages/benefits pending appeal, the employee is placed on paid status (“actual” or “payroll” reinstatement).
Holiday pay: Since the status is paid, regular-holiday pay accrues while the reinstatement order is in effect.

D. Floating status / temporary suspension of work (Authorized cause)

Under business exigency (e.g., lack of work), the employer may temporarily suspend operations or place employees on floating status, generally not exceeding six months.
During a bona fide temporary suspension of operations, employees are not on paid status; therefore unworked regular-holiday pay does not accrue within the suspended period unless the CBA/company policy says otherwise.

3) Due-process reminders when suspension overlaps a holiday

Twin-notice rule & hearing (for disciplinary suspension):
- Notice to explain specifying the charge(s) and evidence.
- Opportunity to be heard (hearing or written explanation).
- Notice of decision stating the factual and legal basis.
Clarity in penalty wording:
- State calendar vs. working days, the start date, and end date.
- If the period spans a regular holiday, say expressly whether the holiday counts toward the suspension.
Preventive suspension justification:
- Use only where continued presence poses a serious and imminent threat.
- Monitor the 30-day cap and decide: reinstate or place on paid status beyond 30 days.
Document eligibility impacts:
- If company policy or CBA maintains the “present or on leave with pay on the day before” requirement for holiday pay, note how a suspension affects this.

4) Holiday-pay entitlement decision grid (at a glance)

Scenario	Employee status on the eve of the regular holiday	Unworked regular-holiday pay due?	Notes
Disciplinary suspension (unpaid)	Not present, not on leave with pay	No	Unless worked on the holiday (then apply worked-holiday rates).
Disciplinary suspension (paid)	On paid status	Yes	Paid suspensions are uncommon but may occur via CBA/settlement.
Preventive suspension (Day 1–30, unpaid)	Unpaid	No	Employee is off-duty and not on paid leave.
Preventive suspension (beyond 30 days, paid extension)	Paid	Yes	Employer must pay wages/benefits if duly extended.
Payroll reinstatement pending appeal	Paid	Yes	Holiday pay accrues along with other benefits.
Floating status / temporary closure (authorized cause)	Unpaid	No	Unless CBA/policy grants it.
Actually worked on the regular holiday (any status permitting work)	Worked	Yes (worked-holiday rates)	200% (or 260% if rest day), plus proper OT premiums.

5) How to count the suspension days when a holiday sits in the middle

If the notice says “calendar days”:
- A regular holiday is included in the count.
- Example: “Suspended for 10 calendar days starting 20 Dec.” Dec 25 (regular holiday) counts, so day 10 is Dec 29.
If the notice says “working days”:
- Only scheduled workdays are counted. Regular holidays and rest days don’t count.
- Example: “Suspended for 5 working days” in a Mon–Fri schedule, with Dec 25 a holiday: if the span covers that week, Dec 25 doesn’t reduce the remaining suspension days.

Tip: To avoid grievances, always specify:

“calendar days” or “working days”;
exact start and end dates;
whether the employee is barred from reporting if the holiday is declared.

6) Sample payroll computations

Assume a daily rate of ₱1,000; 8-hour schedule; no allowances for simplicity.

A) Unworked regular holiday while on unpaid disciplinary suspension

Eligibility condition unmet (not present/paid on the prior workday) ⇒ ₱0 holiday pay.

B) Unworked regular holiday during paid preventive-suspension extension (Day 31+)

Paid status ⇒ ₱1,000 holiday pay for the day.

C) Worked on a regular holiday (not suspended / allowed to work)

8 hours worked ⇒ ₱2,000 (200%).
If it’s also the rest day ⇒ ₱2,600 (260%).
If 2 hours OT on a regular holiday ⇒ regular 8 hours at ₱2,000, plus OT: 2 hours × 260% hourly rate.

7) Common edge cases & practical answers

“We suspended an employee for 3 working days starting Wednesday. Thursday is a regular holiday. When does he return?”
- If working days, the holiday doesn’t count. He serves Wed, Fri, Mon; returns Tuesday.
“We placed an employee on preventive suspension for 30 days; a regular holiday fell inside. Do we pay holiday pay?”
- No for the unpaid 30 days. If you extend beyond 30 and pay the employee, yes for holidays that fall during the paid extension.
“Our CBA grants holiday pay to all employees regardless of presence on the day before. Does that override the usual eligibility test?”
- Yes. A CBA or company policy can grant better benefits than the minimum rules.
“Does a holiday interrupt a suspension?”
- Only if the penalty is measured in working days. If calendar days, it does not interrupt.
“Employee on floating status asks for holiday pay.”
- If truly on authorized unpaid suspension of operations, holiday pay doesn’t accrue—unless you have a policy/CBA granting it.

8) Employer checklist (to stay compliant and avoid disputes)

Use the right suspension type (disciplinary vs. preventive) and document the basis.
State the measure of time (calendar vs. working days) and the exact dates.
Flag the holiday explicitly if the suspension overlaps one.
Track the 30-day limit for preventive suspension; decide to reinstate or convert to paid status beyond day 30.
Apply the holiday pay rule consistently, including any CBA/policy enhancements.
Keep payroll notes showing the eligibility test and computations for audit/DOLE inspections.
Communicate proactively with the employee (and the union, if any) to reduce grievances.

9) Frequently cited legal anchors (for context)

Labor Code (renumbered):
- Holiday pay: Article 94 (old numbering), now renumbered under the Code; Implementing Rules, Book III, Rule IV.
- Preventive suspension: Jurisprudence and DOLE rules limit it to 30 days, with paid status or reinstatement beyond that.
- Authorized causes & temporary suspension of operations: Article 301 (formerly 286) on bona fide suspension of business operations.
DOLE Handbook / Labor Advisories: Provide working formulas for regular-holiday pay and eligibility conditions.
CBAs/Company Policies: May improve (but not diminish) statutory minimums—often decisive in disputes.

⚠️ This is general guidance. For live disputes, CBAs, or unique pay schemes (e.g., piece-rate, commission-only, “no work–no pay” daily-paid arrangements, multiple shifts), review your policy/CBA and seek tailored legal advice.

If you want, I can adapt this to a one-page policy memo or add a disciplinary-notice template with “calendar vs. working days” options and holiday language.