No, they can re-route the baggage for you if you're going on another flight. If you're not flying they remove it (which can significantly delay takeoff causing a fine to the airline if their stats drop outside of standards).

I've flown on budget flights before that have a similar case where your checked lugagage is not necessarily on your flight to the destination but could be on a later one. Even much later. Very few guarantees before they actually start paying out for lost or delayed baggage.

They're also allowed to ship your baggage to you or hand deliver with a shipping courier.