Department of Labor and Employment(DOLE)

Dear Mr. Louie Clamor,

This refers to your request received under Executive Order No. 2 (s. 2016) on Freedom of Information (FOI) in the Executive Branch regarding leave credits to be used on regular holiday.

Please see below responses to your inquiries

1. Are employers allowed to mandate employees to use their leave credits on a regular holiday?

Generally, no. Labor laws do not grant employers the authority to compel employees to utilize their leave credits on a regular holiday. To allow such would pave the way for the circumvention of the regular holiday benefit that is, employers would be able to avoid paying holiday premium rates (100% or 200%).

2. Do employees have the right to a holiday bonus if they decide to take the regular holiday off without filing an official leave?

Generally, yes. Employees are generally entitled to holiday pay during regular holidays regardless of whether they file an official leave or not.

3. Are employees still entitled to a holiday bonus if they used leave credit on a regular holiday?

Yes. If an employee utilizes their leave credits (e.g., vacation leave, sick leave) on a regular holiday, generally, he is not entitled to the holiday pay, but he will be paid his regular daily wage for that day.

Thank you and we hope we have guided you on this matter.

Very truly yours,

FOI OFFICER

DOLE-NCR

Dear Mr. Louie Clamor,

We acknowledge receipt of you follow up Inquiry and are pleased to provide clarification on the following points regarding holiday pay and leave credits:

1. Mandating Employees to Use Leave Credits on Regular Holidays

Employers cannot mandate employees to use their leave credits during regular
holidays, as this would be in conflict with the provisions of the Labor Code of the
Philippines. Employees are entitled to their regular pay on regular holidays, even if
they do not work. The use of leave credits should not be required to compensate
for the holiday pay, as the law guarantees full pay on these days without the need
to utilize leave credits.

2. Entitlement to Holiday Bonus When Taking the Regular Holiday Off
Without Filing Official Leave

Employees are entitled to their regular holiday pay, even if they decide to take t
the regular holiday off without filing an official leave. Under the Labor Code,
employees who do not work on regular holidays are still entitled to 100% of their
daily wage for that day, provided they were present or leave with pay the day
immediately preceding the holiday.

3. Entitlement to Holiday Bonus When Taking the Regular Holiday Off
Without Filing Official Leave

Requiring employees to use their leave credits during regular holidays essentially
forces them to forgo their entitlement to paid leave benefits, which contradicts
with the intent of the Labor Code. Employees are entitled to their full holiday pay,
regardless of whether they work or not on regular holidays. If employees are
mandated to apply their leave credits during a regular holiday, it could result in
the loss of their entitlement to both leave benefits and holiday pay, which would
violate the principle of guaranteed holiday compensation under the law.

And lastly, what if the company has specified in the employee handbook, employment contract, or both that leave credits will be used on all time offs including holidays?

Notwithstanding the provisions in the employee handbook, employment contract,
or other company policies that require the use of leave credits for all time-offs,
including regular holidays, such a policy would not be in compliance with the
Labor Code of the Philippines.

Under the Labor Code, employees are entitled to 100% of their regular pay on
regular holidays, regardless of whether they work or not. Requiring the use of
leave credits during regular holidays would directly contradict this entitlement,
effectively reducing the employee's guaranteed holiday pay.

Any such provision in company policies would be considered invalid and
unenforceable if it conflicts with the statutory holiday pay benefits guaranteed by
the Labor Code. Employees affected by this policy may seek assistance from the
Department of Labor and Employment (DOLE) to assert their rights under the law.

Respectfully,

Foi Receiving Officer Ncr

FOI Officer

Department of Labor and Employment