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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 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 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 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)
after all. To care for a sick or injured member of the family. we are not perfectly healthy. Sick leaves. or any other debilitating medical causes. You also risk losing your job when found loitering around the city when you called in for a sick leave. Policies on sick leave entitles employees to paid leaves. You can never tell when you'll get seriously ill and need your sick leaves just when you've used up all your credits. you still enough leave to cover your entire absence." Sick leave is one of the types of paid benefits granted to regular employees . Understanding your Sick Leave Policy Although technically called "sick" leaves and used supposedly only when you're sick. . Employees can avail of this benefit when you are unable to report to work due to an illness.regularization in the Philippines are granted to employees on the sixth month of tenure. are the most abused benefits everywhere with employees thinking they can just make up medical excuses to be absent from work. accident. For sudden occurrences. it is a company's obligation to pay you equivalent to a full-day salary as mandated in the Philippine Labor Laws. such as a visit to your doctor. some times will require you to get advance leave approval for a non-emergency sick leave. You may use your sick leaves for medical. or optical appointments. You will not earn vacation and sick leave during holidays Sick Leave Abuse The policy for sick leave is purportedly to benefit employees when the need arises. Even with this absence. A sick leave policy is to have your medical leave supported by a medical certificate as proof and for documentation purposes. and in the following medical cases: y y y y y Suffering from a sickness or injury. This is why abusing your sick leave when you use it on non-medical and non-emergency events are never a good idea. there are actually more important reasons why employees should not use sick leaves for the wrong reasons.Guide to Sick Leave Policies "The policy for sick leave is purportedly to benefit employees when the need arises. such as a sudden onset of fever that prevents you to report to work. given that an employee still has leave "credits" equivalent to seven work days or a total of 56 hours in a year. 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. With your sick leaves untouched and a medical situation arrives. Death of a member of your immediate family. 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. If reporting to work can jeopardize your health and that of your colleagues. Although it's inviting to have a paid leave using your sick leave. however. dental. Failing to call may invalidate your sick leave and consider it unauthorized. Maternity reasons. Why You Should Save Your Sick Leave Sick leaves are created as benefits for a reason because.
typhoon. AS AMENDED. where the employer cannot ordinarily be expected to resort to other measures. or imminent danger to public safety. whether operating for profit or not. earthquake.THE LABOR CODE OF THE PHILIPPINES PRESIDENTIAL DECREE NO. (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. Sunday or holiday work. (c) In the event of abnormal pressure of work due to special circumstances. or installation. (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. A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR. Right to weekly rest day. Compensation for rest day. BOOK 3 CONDITIONS OF EMPLOYMENT Title I WORKING CONDITIONS AND REST PERIODS Chapter II WEEKLY REST PERIODS ARTICLE 91. to avoid serious loss which the employer would otherwise suffer. ARTICLE 92. ARTICLE 93. PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE. When employer may require work on a rest day. epidemic or other disaster or calamity to prevent loss of life and property. 442. the employer shall respect the preference of employees as to their weekly rest day when such preference is based on religious grounds. However. and (f) Under other circumstances analogous or similar to the foregoing as determined by the Secretary of Labor and Employment.(a) Where an employee is made or permitted to work on his scheduled rest day. equipment. . 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. fire. flood. he shall be paid an additional compensation of at . ± (a) It shall be the duty of every employer. (d) To prevent loss or damage to perishable goods. ± The employer may require his employees to work on any day: (a) In case of actual or impending emergencies caused by serious accident. (b) In cases of urgent work to be performed on the machinery.
(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.(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. (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. ± (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. unless she has earned unused leave credits from which such extended leave may be charged. . 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. 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. (b) The maternity leave shall be extended without pay on account of illness medically certified to arise out of the pregnancy. Where such holiday work falls on the employees scheduled rest day. Chapter III HOLIDAYS. Title WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES Chapter EMPLOYMENT OF WOMEN III I ARTICLE 133. abortion or miscarriage. delivery. An employee shall be entitled to such additional compensation for work performed on Sunday only when it is his established rest day. (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.least thirty percent (30%) of his regular wage. SERVICE INCENTIVE LEAVES AND SERVICE CHARGES ARTICLE 95. . 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) 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. the employer shall pay such higher rate. he shall be paid an additional compensation of at least thirty percent (30%) of his regular wage for work performed on Sundays and holidays. Maternity leave benefits. he shall be entitled to an additional compensation of at least fifty per cent (50%) of his regular wage. (b) This provision shall not apply to those who are already enjoying the benefit herein provided. which renders the woman unfit for work. Right to service incentive leave. (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.
vacation leaves Dear PAO. . trust or firm. 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 penalty of imprisonment shall be imposed on the entity's responsible officers. 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. SECTION 5. association or any other entity. 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. general manager.000) or imprisonment of not less than thirty (30)days nor more than six (6) months. partnership. Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: SECTION 1. DEAR PAO By Persida Acosta Labor Code on sick. I was hired by a company in Valenzuela City in February 2007. I understand that I am entitled to five days of sick leave and five days of vacation leave. including. . managing director or partner directly responsible therefor. SECTION 2. 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. of this Act. corporation. the president. Short Title. vice-president. Any person. I was a regular employee. Am I correct? Our company made me sign a document stating that I must first earn my sick and vacation leave . 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. trust. the Chairman of the Civil Service Commission and the Secretary of Health shall.For purposes of this Act. firm. rules and regulations to the contrary.This Act shall be known as the "". SECTION 4. SECTION 3. By September. The Secretary of Labor and Employment. Notwithstanding any law. If the violation is committed by a corporation.REPUBLIC ACT NO. partnership. 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. chief executive officer. delivery shall include childbirth or any miscarriage. Definition of Term. As a regular employee. but not limited to. For purposes. issue such rules and regulations necessary for the proper implementation of the provisions hereof. within thirty (30) days from the effectivity of this Act.
I will earn the equivalent of 0. paternity leave and maternity leave are statutory and mandatory benefits. 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. 2007 edition. including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy. 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. paternity leave by Republic Act 8187. I have been with the company for almost two years now. The pertinent provision of the Labor Code applicable to your query is in Article 95. as shown by evidence. while service incentive leave. it is an additional and voluntary 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. its policy of granting earned vacation and sick leaves equivalent to 0. unless your employer employs fewer than 10 employees and that you are enjoying vacation leave with pay of at least five days. whether continuous or broken reckoned from the date the employee started working. are not legally bound to give the five days service incentive leave.8 day of leave benefits. but the company¶s policy on leave benefits remains the same. In fact. Is it correct that I have to first earn my leave benefits before I can use them? Is the company policy consistent with the Labor Code? Is the company making a mistake in doing this? Concerned Employee Dear Concerned Employee. 1996. Prescinding from the foregoing. . in which case said period shall be considered as one year. You failed to mention in your letter whether your company grants the five-day service incentive leaves with pay. This provision shall not apply to those who are already enjoying the benefit herein provided. What the law grants is five days service incentive leave. and those employed in establishments with fewer than 10 employees or in establishments exempted from granting this benefit by the Secretary of Labor after considering the viability or financial condition of such establishment. But establishments employing fewer than 10 employees.8 day for each month of service is not contrary to the Labor Code.benefits before I can use them. Granting vacation and sick leaves depends on voluntary employer policy or collective bargaining agreement (CBA). These leave benefits are mandatory and statutory. those enjoying vacation leave with pay of at least five days. regular employees who have rendered at least one year of service are entitled to yearly service incentive leave of five days with pay. approved on June 11. sick leave and vacation leave are considered voluntary benefits. No law requires the grant of vacation leave or sick leave to private sector employees. Page 75). or that provided in the employment contract is less than 12 months. maternity leave or paternity leave. policy or practice (Everybody¶s Labor Code by Azucena. the term of ³at least one year service´ shall mean service within 12 months. What are legally required are the service incentive leave. Under Section 3. If your company at present is granting service incentive leave benefits to you. Rule V of the Implementing Rules of Book III of the Labor Code of the Philippines. The company¶s policy is that for a month. Thus. and maternity leave benefits by the SSS law. unless obliged by contract. 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.
Under the law. You can either use these days or you can convert them to cash in accordance with the law. Our opinion may vary if other facts are added or elaborated. unused service incentive leaves shall be commutable to its money equivalent if not used or exhausted at the end of the year (Section 5. Your company is not mandated to grant vacation and sick leaves.) We hope that we were able to substantially answer your query. provided that you have rendered at least one year of service. ibid.The law is clear that what is required only is the grant of service incentive leaves of five days. . But you are entitled to a leave for five days for each year. But all information contained here is based on your narration of facts and our appreciation of your question.
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