When Two Regular Holidays Fall on the Same Day: Workers Still Get Double Holiday Pay

When two regular holidays fall on the same date, are workers entitled to double holiday pay? The Supreme Court answered this question in Asian Transmission Corporation v. Court of Appeals (G.R. No. 144664, March 15, 2004), ruling that employees must be paid for each regular holiday even if they coincide on a single calendar day.

The Dispute

In 1998, April 9 fell on Maundy Thursday, a date that was both a religious holiday and Araw ng Kagitingan, a national holiday commemorating Filipino heroism. The Department of Labor and Employment (DOLE) issued an explanatory bulletin stating that workers were entitled to 200% of their basic wage for that day—100% for each holiday.

Asian Transmission Corporation, however, paid its daily-paid employees only 100% of their basic pay for the unworked holiday. The company's labor union protested, and the dispute went to voluntary arbitration. The Voluntary Arbitrator ruled in favor of the workers, ordering the company to pay 200%. The Court of Appeals affirmed, and the company elevated the case to the Supreme Court.

The Legal Framework

Article 94 of the Labor Code provides that every worker shall be paid their regular daily wage during regular holidays. Executive Order No. 203, which amended the law, enumerated ten regular holidays, including Maundy Thursday, Good Friday, and Araw ng Kagitingan (April 9).

The company argued that since the law lists ten regular holidays per year, when two fall on the same day, the worker effectively receives only nine paid holidays. The Supreme Court rejected this interpretation.

The Ruling

The Court held that Article 94 is clear: a worker is entitled to ten paid regular holidays. Nothing in the law states that this entitlement is reduced to nine when two holidays coincide. The Court emphasized that holiday pay is a statutory benefit, not a management prerogative, and its purpose is to allow workers to participate in national celebrations and religious observances without loss of income.

The Court also distinguished an earlier case, Wellington Investment and Manufacturing Corporation v. Trajano, which involved monthly-paid employees and whether they deserved extra pay when a holiday fell on a Sunday. That case did not apply to daily-paid employees facing two holidays on one day.

Procedural Lesson

Beyond the substantive ruling, the case carries a procedural reminder. The company filed a petition for certiorari under Rule 65 instead of an appeal under Rule 45. The Court noted that decisions of the Court of Appeals must be appealed through a petition for review within 15 days. Because the company missed this period, the appellate decision had become final and executory. This procedural misstep alone justified dismissal of the petition.

Practical Takeaways

• When two regular holidays fall on the same day, daily-paid employees are entitled to 200% of their basic wage for that unworked day—100% for each holiday.
• Employers cannot reduce the number of paid holidays merely because two happen to coincide on one calendar date.
• Holiday pay is a statutory benefit under Article 94 of the Labor Code; it is mandatory and cannot be treated like a discretionary bonus.
• Any doubt in interpreting the Labor Code must be resolved in favor of labor, per Article 4 of the Code.
• Decisions of the Court of Appeals must be challenged through a petition for review under Rule 45 within 15 days, not through a Rule 65 certiorari petition.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.