• The principle of no-work, no pay is the basic factor in determining employee wages.
• This is based on the age-old rule of “a fair day’s wage for a fair day’s work.”
• If the employee is ready, willing, and able to do work, but is prevented form working, he is paid.

A fair day’s wage for a fair day’s labor: the principle of no work, no pay

"The age-old rule governing the relation between labor and capital, or management and employee of a ‘fair day’s wage for a fair day’s labor’ remains as the basic factor in determining employees’ wages." (Aklan Electric Cooperative Incorporated v. NLRC, Retiso, G.R. No. 121439, 25 January 2000)

When an employee is prevented from working

"If there is no work performed by the employee there can be no wage or pay unless, of course, the laborer was able, willing and ready to work but was illegally locked out, suspended or dismissed, or otherwise illegally prevented from working… It would neither be fair nor just to allow (the complainants) to recover something they have not earned and could not have earned because they did not render services at the Kalibo office during the stated period." (Aklan Electric Cooperative Incorporated v. NLRC, Retiso, G.R. No. 121439, 25 January 2000)

"If there is no work performed by the employee there can be no wage or pay, unless of course the laborer was able, willing and ready to work but was illegally locked out, dismissed or suspended. The ‘No work, no pay’ principle contemplates a ‘no work’ situation where the employees voluntarily absent themselves." (Republic of the Philippines v. Pacheco, G.R. No. 178021, 25 January 2012, cited in Protective Maximum Security Agency, Inc. v. Fuenter, G.R. No. 169303, 11 February 2015)

References

• Jurisprudence or Supreme Court Decisions

About the author

Atty. Jake is a business lawyer and law mentor. He practices on labor and employment, corporate and regulatory compliance, data privacy, intellectual property, negotiations and contracts, as well as handles litigation and arbitration cases.