Leave Benefits

Under existing laws, the following are the leave benefits an employee is entitled to:

a. Service incentive leave

b. Maternity Leave
c. Paternity Leave
d. Solo Parent Leave
e. Leave with pay for Victims of Violence Against Women and their Children (VAWC)
f. Special Leave for Women

Surprisingly, sick leaves, vacation leaves, emergency leaves, and terminal leaves are not
specifically required under the Labor Code and its Implementing Rules and Regulations.
However, nothing in the law prevents an employer from granting these leave benefits to
employees in the employment contract as long as the minimum requirement of granting
service incentive leave and other special leave benefits is complied with.

Service Incentive Leave

Section 2, Rule V of the Omnibus Rules Implementing the Labor Code provides:

SECTION 2. Right to service incentive leave. — 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.

Section 5, Rule V of the Omnibus Rules Implementing the Labor Code also provides:

SECTION 5. Treatment of benefit. — The service incentive leave shall be

commutable to its money equivalent if not used or exhausted at the end of
the year.

Except for exempt employees, every employee who has rendered at least one year of
service is entitled to a yearly service incentive leave (which is commonly replaced by
vacation leave) of five days with pay. The service incentive leave should be converted to its
money equivalent and paid to the nonexempt employee by the employer if not used or
exhausted by the said employee at the end of the year. As a general rule, an employer can
regulate the schedule of the service incentive leave of its employee.

The Labor Code contains no specific provision on the regulation of the schedule of
leave benefits of employees. As such, the employer may exercise its management
prerogative, more specifically, the right to regulate all aspects of employment including
the regulation of the leave benefits of the employees.

The Supreme Court in Jenny F. Peckson vs. Robinsons Supermarket Corporation, Jody
Gadia, Roena Sarte, and Ruby Alex had ruled that:
In Rural Bank of Cantilan, Inc. v. Julve, the Court had occasion to summarize the
general jurisprudential guidelines affecting the right of the employer to regulate
employment, including the transfer of its employees:

Under the doctrine of management prerogative, every employer has the inherent
right to regulate, according to his own discretion and judgment, all aspects of
employment, including hiring, work assignments, working methods, the time, place
and manner of work, work supervision, transfer of employees, lay-off of workers,
and discipline, dismissal, and recall of employees. The only limitations to the
exercise of this prerogative are those imposed by labor laws and the principles of
equity and substantial justice.

While the law imposes many obligations upon the employer, nonetheless, it also
protects the employer’s right to expect from its employees not only good
performance, adequate work, and diligence, but also good conduct and loyalty. In
fact, the Labor Code does not excuse employees from complying with valid company
policies and reasonable regulations for their governance and guidance.