Labor and Employment Secretary Rosalinda Dimapilis-Baldoz yesterday reminded employers that workers are entitled to a yearly five-day service incentive leave with pay.
“Service Incentive Leave Pay is an employee benefit that enables them to take or avail of leave with pay for five days provided the worker has rendered service for at least one year,” said Baldoz.
Article 95 of the Labor Code mandates employers to give their employees a yearly service incentive leave of five days with pay. The SIL shall be granted to a worker who has been in service within 12 months, whether continuous or broken, reckoned from the date the employee started working, including authorized absences and paid regular holidays.
“Notwithstanding this provision, our laws do not preclude employers from giving similar or more, beneficial leave benefits to their employees. The common practice nowadays is that employees in the private sector are given monthly sick and vacation leave credits which they may use as the need arises,” said Baldoz.
She added that service Incentive Leave is commutable, thus it is convertible to cash if not used or exhausted at the end of the year. “The cash equivalent is aimed primarily at encouraging workers to work continuously and with dedication to the company,” added Baldoz.
According to Baldoz, the Labor Code provides that the rule on service incentive leave does not apply to the following: 1) those of the government and any of its political subdivisions, including government-owned and controlled corporations; 2) domestic helpers and persons in the personal service of another; 3) managerial employees as defined in Book 3 of the Labor Code; 4) field personnel and other employees whose time and performance are not supervised by the employer; 5) those who are already enjoying the benefit; 6) those enjoying vacation leave with pay for at least five days; and 7) those employed in establishments regularly employing less than ten employees.
Baldoz issued the reminder after Divine Alvarado, 31, and Bryan Cruz, 28, personnel assistants of Interserved Cooperative, a multi-cooperative in Quezon City, and Venture Inc., a manpower agency in Pasig City, respectively, sought clarification from the DOLE Call Center on the proper implementation of the mandatory five days service incentive leave.
Melvin Pelinta, action officer at the DOLE Call Center, said she received the call on 29 February from Alvarado who sought clarification on the implementation process of the service incentive leave of their employees. On the other hand, Celeste Maring, supervisor of the DOLE Call Center, received the call from Cruz on 23 February. Cruz inquired on the 2015 SIL of their employees for conversion to cash.
Alvarado and Cruz both thanked the DOLE Call Center, and said that will immediately and properly implement SIL in their respective companies.
With reports from CTM