Policies on Leave Benefits Categories of employees of TMPC: 1. Regular Permanent ± employees who rendered continuous service of at least six (6) months. 2. Probationary service ± employees who rendered continuous service of at least three (3) months. 3. Contract of Service ± employees who are hired as wage earners or on daily basis.
Service Incentive Leave for Employees Book III, Chapter III of the Labor Code of the Philippines covers the employee's right for Service Incentive Leaves. This basically entitles the employee working in the Philippines a yearly service incentive leave, or in other words, a paid leave of o f five days. The term 'employee' represents an individual who is legally employed under the Philippine law, or any person compulsorily covered by the SSS under Republic Act 1161 or any person compulsorily covered by the GSIS under the Commonwealth Act 186. The phrase 'one year of service' indicates an employee's length of service, if he/she has provided service to the same establishment that would total 12 months, whether uninterrupted or broken, and starting on the day the employee started working for the establishment. Authorized absences, normally unworked days (restdays and/or weekends), and paid legal and regular holidays are counted as part of the year of service. Article 95 or what is otherwise known as the Right to Service Incentive Leave is only applicable to any employee who has at least rendered one year of o f service in the same establishment. There are employees exempt from Article 95 or the Right to Service Incentive Leaves. These are the employees in the civil service (government employees), administrative employees as defined in Book III of the Philippine Labor Code, field employees or other employment category whose hours of work are unascertained, domestic helpers and like (persons whose nature of employment is in personal service of another), employees who are on task or contract basis, purely on commission basis, or those paid a fixed amount irrespective of the time involved. Furthermore, those employees not covered above but who are already enjoying a paid leave in kind, such as a vacation leave with pay comprising at least five days, are exempt from Article 95. Employees who are working on establishments with population of less than 10 workers are also exempt of this provision. The Service Incentive Leave may be used as a Sick Leave and/or Vacation Leave. However, service leave incentives may not be interchanged with Vacation Leave as the latter is not a standard of law but a prerogative of the employer and by extension the establishment or the management. If unused after a one year period, the Service Incentive Leave will be commuted to its monetary equivalent by the end of the year. In computing, the basis shall be the salary rate at the date of o f commutation. (This article features content derived from Art. 95 of the Philippine Labor Code. By no means shall this article be used to substitute Art. 95 of the Philippine Labor Code)
Guide
to Sick Leave Policies
"The policy for sick leave is purpo rtedly to benefit employees when the need arises." Sick leave is one of the types of paid benefits granted to regular employees - regularization in the Philippines are granted to employees on the sixth month of tenure. Employees can avail of this benefit when you are unable to report to work due to an illness, accident, or any other debilitating medical causes. Even with this absence, it is a company's obligation to pay you equivalent to a full-day salary as mandated in the Philippine Labor Laws, given that an employee still has leave "credits" equivalent to seven work days or a total of 56 hours in a year. Sick leaves, however, are the most abused benefits everywhere with employees thinking they can just make up medical excuses to be absent from work. Although it's inviting to have a paid leave using your sick leave, there are actually more important reasons why employees should not use sick leaves for the wrong reasons. Understanding yo ur Sick Leave Policy
Although technically called "sick" leaves and used supposedly only when you're sick, some times will require you to get advance leave approval for a non-emergency sick leave, such as a visit to your doctor. For sudden occurrences, such as a sudden onset of fever that prevents you to report to work, a standard policy on sick leave would be to inform the human resource office and/or your supervisor at least a couple hours before your shift. Failing to call may invalidate your sick leave and consider it unauthorized. You may use your sick leaves for medical, dental, or optical appo intments, and in the following medical cases: y y y y y
Suffering from a sickness or injury; Maternity reasons; To care for a sick or injured member of the family; If reporting to work can jeopardize your health and that of your colleagues; Death of a member of your immediate family.
A sick leave policy is to have your medical leave supported by a medical certificate as proof and for documentation purposes. Why
You Should Save Your Sick Leave
Sick leaves are created as benefits for a reason because, after all, we are not perfectly healthy. You can never tell when you'll get seriously ill and need your sick leaves just when you've used up all your credits. With your sick leaves untouched and a medical situation arrives, you still enough leave to cover your entire absence. Policies on sick leave entitles employees to paid leaves, but also mandates the following when you are left with a limited to zero leave credits: y y
Salary deduction equivalent to the number of days you are absent; You will not earn vacation and sick leave during holidays
Sick Leave Ab use
The policy for sick leave is purportedly to benefit employees when the need arises. This is why abusing your sick leave when you use it on non-medical and non-emergency events are never a good idea. You also risk losing your job when found loitering around the city when you called in for a sick leave.
THE LABOR CODE OF THE PHILIPPINES PRESIDENTIAL DECREE NO. 442, AS AMENDED. A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE. BOOK 3 CONDITIONS OF EMPLOYMENT Title I WORKING CONDITIONS AND REST PERIODS Chapter II WEEKLY REST PERIODS ARTICLE 91. Right to weekly rest day . ± (a) It shall be the duty of every employer, whether operating for profit or not, to provide each of his employees a rest period of not less than twenty-four (24) consecutive hours after every six (6) consecutive normal work days. (b) The employer shall determine and schedule the weekly rest day of his employees subject to collective bargaining agreement and to such rules and regulations as the Secretary of Labor and Employment may provide. However, the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds. ARTICLE 92. When employer may require work on a rest day . ± The employer may require his employees to work on any day: (a) In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent danger to public safety; (b) In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer; (c) In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures; (d) To prevent loss or damage to perishable goods; (e) Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and (f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment. ARTICLE 93. Compensation for rest day, Sunday or holiday work . - (a) Where an employee is made or permitted to work on his scheduled rest day, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day. (b) When the nature of the work of the employee is such that he has no regular workdays and no regular rest days can be scheduled, he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays. (c) Work performed on any special holiday shall be paid an additional compensation of at least thirty percent (30%) of the regular wage of the employee. Where such holiday work falls on the employees scheduled rest day, he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage. (d) Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Article, the employer shall pay such higher rate. Chapter III HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES ARTICLE 95. Right to service incentive leave . ± (a) Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay. (b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at least five days and those employed in establishments regularly employing less than ten employees or in establishments exempted from granting this benefit by the Secretary of Labor and Employment after considering the viability or financial condition of such establishment. (c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action. Title WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES Chapter EMPLOYMENT OF WOMEN
III
I
ARTICLE 133. M aternity leave benefits. - (a) Every employer shall grant to any pregnant woman employee who has rendered an aggregate service of at least six (6) months for the last twelve (12) months, maternity leave of at least two (2) weeks prior to the expected date of delivery and another four (4) weeks after normal delivery or abortion with full pay based on her regular or average weekly wages. The employer may require from any woman employee applying for maternity leave the production of a medical certificate stating that delivery will probably take place within two weeks. (b) The maternity leave shall be extended without pay on account of illness medically certified to arise out of the pregnancy, delivery, abortion or miscarriage, which renders the woman unfit for work, unless she has earned unused leave credits from which such extended leave may be charged. (c) The maternity leave provided in this Article shall be paid by the employer only for the first four (4) deliveries by a woman employee after the effectivity of this Code.
REPUBLIC ACT NO. 8187
Paternity Leave Act of 1996 AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY TO ALL MARRIED MALE EMPLOYEES IN THE PRIVATE AND PUBLIC SECTORS FOR THE FIRST FOUR (4) DELIVERIES OF THE LEGITIMATE SPOUSE WITH WHOM HE IS COHABITING AND FOR OTHER PURPOSES. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. S hort Title. - This Act shall be known as the "". SECTION 2. Notwithstanding any law, rules and regulations to the contrary, every married male employee in the private and public sectors shall be entitled to a paternity leave of seven (7) days with full pay for the first four (4) deliveries of the legitimate spouse with whom he is cohabiting. The male employee applying for paternity leave shall notify his employer of the pregnancy of his legitimate spouse and the expected date of such delivery. For purposes, of this Act, delivery shall include childbirth or any miscarriage. SECTION 3. Definition of Term. - For purposes of this Act, Paternity Leave refers to the benefits granted to a married male employee allowing him not to report for work for seven (7) days but continues to earn the compensation therefor, on the condition that his spouse has delivered a child or suffered a miscarriage for purposes of enabling him to effectively lend support to his wife in her period of recovery and/or in the nursing of the newly-born child. SECTION 4. The Secretary of Labor and Employment, the Chairman of the Civil Service Commission and the Secretary of Health shall, within thirty (30) days from the effectivity of this Act, issue such rules and regulations necessary for the proper implementation of the provisions hereof. SECTION 5. Any person, corporation, trust, firm, partnership, association or entity found violating this Act or the rules and regulations promulgated thereunder shall be punished by a fine not exceeding Twenty-five thousand pesos (P25,000) or imprisonment of not less than thirty (30)days nor more than six (6) months. If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty of imprisonment shall be imposed on the entity's responsible officers, including, but not limited to, the president, vice-president, chief executive officer, general manager, managing director or partner directly responsible therefor. DEAR
PAO By Persida Acosta
Labor Code on sick, vacation leaves
Dear
PAO,
I was hired by a company in Valenzuela City in February 2007. By September, I was a regular employee. As a regular employee, I understand that I am entitled to five days of sick leave and five days of vacation leave. Am I correct? Our company made me sign a document stating that I must first earn my sick and vacation leave
benefits before I can use them. The company¶s policy is that for a month, I will earn the equivalent of 0.8 day of leave benefits. I have been with the company for almost two years now, but the company¶s policy on leave benefits remains the same. Is it correct that I have to first earn my leave benefits before I can use t hem? Is the company policy consistent with the Labor Code? Is the company making a mistake in doing this? Concerned Employee
Dear
Concerned Employee,
The pertinent provision of the Labor Code applicable to your query is in Article 95, which provides: Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay. This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at least five days, and those employed in establishments with fewer than 10 employees or in establishments exempted from granting this benefit by t he Secretary of Labor after co nsidering the viability or financial condition of such estab lishment. The grant of benefit in excess of that provided the Labor Code shall not be made subject of arbitration or any court or administrative action. Prescinding from the foregoing, regular employees who have rendered at least one year of service are entitled to yearly service incentive leave of five days with pay. What the law grants is five days service incentive leave. No law requires the grant of vacation leave o r sick leave to private sector employees. Grant ing vacation and sick leaves depends on voluntary employer policy or collective bargaining agreement (CBA). What are legally required are the service incentive leave, paternity leave by Republic Act 8187, approved on June 11, 1996, and maternity leave benefits by the SSS law. Thus, sick leave and vacation leave are considered voluntary benefits, while service incentive leave, paternity leave and maternity leave are statutory and mandatory benefits. But establishments employing fewer than 10 employees, as shown by evidence, are not legally bound to give the five days service incentive leave, unless obliged by contract, policy or practice (Everybody¶s Labor Code by Azucena, 2007 edition, Page 75). Under Section 3, Rule V o f the Implementing Rules of Book III of the Labor Code of the Philippines, the term of ³at least one year service´ shall mean service within 12 months, whether continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy, or that provided in the employment contract is less than 12 months, in which case said period shall be considered as o ne year. You failed to mention in your letter whether your company grants the five-day service incent ive leaves with pay, maternity leave or paternity leave. These leave benefits are mandatory and statutory. Failure on the part of your company to provide you with these kinds of leave benefits will make it liable for violation of the Labor Code, unless your employer employs fewer than 10 employees and that you are enjoying vacation leave with pay of at least five days. If your company at present is granting service incentive leave benefits to you, its policy of granting earned vacation and sick leaves equivalent to 0.8 day for each month of service is not contrary to the Labor Code. In fact, it is an additional and vo luntary benefit granted to you or it could be an existing practice or policy by your employer that supplements other benefits granted to you by the Labor Code.
The law is clear that what is required only is the grant of service incentive leaves of five days. Your company is not mandated to grant vacation and sick leaves. But you are entitled to a leave for five days for each year, provided that you have rendered at least one year of service. You can either use these days or you can convert them to cash in accordance with the law. Under the law, unused service incentive leaves shall be commutable to its money equivalent if not used or exhausted at the end of the year (Section 5, ibid.) We hope that we were able to substantially answer your query. But all information contained here is based on your narration of facts and our appreciation of your question. Our opinion may vary if other facts are added or elaborated.
