Dear PAO,
I have been working for a company for the past three years. I work six days a week. The company implements a “no-work, no-pay” policy. Thus, when I need to take a leave that does not fall on my rest day, I do not get paid for that day. I learned from my friend that I am entitled to Service Incentive Leave. Is he correct?
Aaron
Dear Aaron,
Under Section 95 of the Labor Code of the Philippines, every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave (SIL) of five days with pay.
However, the following employees are not entitled to SIL, as provided in the 2023 Handbook on Worker’s Statutory Monetary Benefits (“Handbook”) issued by the Department of Labor and Employment-Bureau of Working Conditions:
1. Government employees, whether employed by the National Government or any of its political subdivisions, including those employed in government-owned and/or -controlled corporations with original charters or created under special laws;
2. Persons in the personal service of another;
3. Managerial employees, if they meet all of the following conditions:
– a. Their primary duty is to manage the establishment in which they are employed or of a department or subdivision thereof;
– b. They customarily and regularly direct the work of two or more employees therein; and
– c. They have the authority to hire or fire other employees of lower rank; or their suggestions and recommendations as to hiring, firing, and promotion, or any other change of status of other employees, are given particular weight.
4. Officers or members of a managerial staff, if they perform the following duties and responsibilities:
– a. Primarily perform work directly related to management policies of their employer;
– b. Customarily and regularly exercise discretion and independent judgment;
– c. Regularly and directly assist a proprietor or managerial employee in the management of the establishment or subdivision thereof in which he or she is employed; or (b) execute, under general supervision, work along specialized or technical lines requiring special training, experience, or knowledge; or (c) execute, under general supervision, special assignments and tasks; and
– d. Do not devote more than 20 percent of their hours worked in a workweek to activities which are not directly and closely related to the performance of the work described above.
5. Field personnel and those whose time and performance is unsupervised by the employer;
6. Those already enjoying this benefit;
7. Those enjoying vacation leave with pay of at least five days; and
8. Those employed in establishments regularly employing less than 10 employees.
In your situation, unless you fall under any of the above-mentioned exceptions, you should be entitled to the five days SIL, considering that you have been working for your company for more than one year.
As an entitlement, you have the following options: (1) use the five days paid leave or, (2) commute it to its monetary equivalent if not exhausted at the end of the year.
Further, as provided in the “Handbook,” if you did not use or commute your service incentive leaves at any point during your employment, you are entitled to its commutation upon your separation from the company. The basis for such commutation shall be your salary rate at the time of conversion.
We hope that we were able to answer your queries. This advice was based solely on the facts you have narrated and our appreciation of the same. Our opinion may vary when other facts are changed or elaborated.
Thank you for your continued trust and support.
Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net.
