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Leave Conversion

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1 Leave Conversion on Mon Apr 08, 2013 7:46 pm


Arresto Menor
Good day Attys.

We have an employee who recently resigned, she was hired july of 2011 and her last day was on March 31, 2013.
Now, she is causing problems and headaches for all of us.

Since our school, was established only last 2010, we did not have any experience or ideas about leaves. I trusted her since she had previous experience and at the same time, she is a CPA.

I asked her how many leaves according to the labor law do we have. She told me that 15days sl and 15days vl. Trusting her, I signed a memo she wrote about the company policy. At that time, we do not have an employee manual yet.

When I found out recently that it was not so, but the law only provides 5 day sil.

Going back to her resignation:

Although she submitted her clearance, she did not complete it and she erased one of the items indicated there, and submitted it to HR.

Although it was not fully accomplished, out of good will,and out desire to let her go, her last pay was prepared and was ready for release last April 6, 2013, upon her demand.

When she found out how much she would be getting, she demanded how we arrived at the amount.

We only monetized 5 days of her sl.

Based on her computation, she has converted 15 days sick leave into cash.

Just now, she texted us that she will not get her check unless it is complete and according to the amount she wanted.

We now have our manual but it does not indicate how many sick leave will be converted only that " a certain amount will be converted to cash"

My question is:

1. Is she entitled to her sick leave conversion?

2. How many is she entitled, since our handbook does not indicate how many is to be converted / can we just not give her the monetized sl?

3. can we take back the 15vl/15sl and bring it back to 5days sil.

Since the company is having a hard time, fulfilling this benefit, because of insufficient fund.

Thank you very much.

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2 Re: Leave Conversion on Thu Apr 11, 2013 6:36 pm


Arresto Mayor

1. In our company we have 7 days SL and 7 days VL after rendering 1 year of service in the company. VL will be converted to cash if not used.
While 7 days SL will be forfeited if not used within 1 year. And this is written on the policy of the company.
I cannot answer yours because I dont know what is stated on your policy.
2. 5 days is required in Labor Code, and 15 days is depends to the employer's generosity. If there is no contract
that has been signed proving that she is entitled for 15days SIL/VIL. Then I believe she can only get 5 days.If she rendered 1 year(based on contract)
3.The principle of non-diminution of benefits finds application when a change initiated by the employer to existing company policies, specially matters concerning employee benefits, results in reduction, diminution or withdrawal of some or all of the the benefits already enjoyed by the employees. For example, if the employees of a certain company is traditionally granted 14th month pay, and the employer subsequently withdrew such benefit, or reduced its amount, the reduction or withdrawal is objectionable on the ground that it would result to diminution of benefits.

Hope this helps!

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3 Re: Leave Conversion on Fri Apr 12, 2013 8:10 pm


Arresto Menor

Thanks for the help.

Another follow up question, as stated, the employee already resigned.
Is she then entitled to receive monetary conversion of her unused sick leave?

* Our company only offers 5 days sick leave conversion*

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4 Re: Leave Conversion on Mon Apr 15, 2013 9:49 am


Arresto Mayor
I believe you have to pay whatever is due to her.
Accumulation of Leave Credits:
Instead of using up SIL, the employee may accumulate it and opt for its commutation
to cash upon his resignation or separation from employment.

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