Labor and Employment Secretary Rosalinda Dimapilis-Baldoz has
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.
(DOLE)
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