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Forfeiture of VL and SL credits upon resignation

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Arresto Menor
Good morning.

I used to work for the biggest chain of malls here in the phils, and have been with them for almost 3 years (from jan 2008 - oct 2010).

I submitted my resignation letter 18 aug 2010. Had my exit interview on 05 oct 2010 (which was my last day).

As practice in the company, earned Leave credits are replenished/given to employees on
a yearly basis (every November 1).There is no formal written memo/ruling about it.

Based on company employee handbook (blue book), VL is non-cummulative and should be used prior its replenishment. Sick leave credits are non-cumulative, but may be
convertible to cash at the end of the fiscal year if unused. An employee who has worked 250 days or more will be entitled to 15days vl/15 days sl. If the 250 days work is not complete, proportional credits will be given to the employee.

During my exit interview, however, i was told that since i am no longer with the company by nov 1, 2010 all leave (SL/VL) credits due to me which were earned from Nov 2009 – Oct 5, 2010 will be forfeited (since replenishment is given on nov 1) and will not be included in my terminal
pay. That it is a practice in the company that an employee should be with the company until Nov 1to be given leave credits.They say it is a policy, and that there is a written memo on it. But iv’e already asked HR from several malls, and even Head office HR… they cannot find/give any official and formal management approved written memo/policy on it. Such procedure/practice is not even written in the employee handbook.

I was only given a memo attachment (“annex”) today, showing the table of required number of days work and equivalent leave credits earned. But the covering memo was not furnished. nor any written policy that an employee who has resigned prior nov 1 of the current year (eg. nov 1, 2010) will not receive/ be paid off of any leave credits for the service rendered during the fiscal year (eg. nov 1, 2009 – resignation date oct 5,2010). Should there be vl/sl due to the employee, it will be forfeited since the employee resigned prior replenishment date.

Is this be legal? can the company not credit any leaves even if you rendered service for the fiscal year (eg nov 1, 2009 – oct 5, 2010( date of resignation)? It is just a practice, but is not documented….No written document about it.

One more thing,never did HR inform me during the length of my stay (jan 2008-oct 5, 2010) in the company of such practice and non-credit of VL/SL if an employee resigns prior SL/VL replenishment date.

Can i file a case against them?

Awaiting for your reply. TIA

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the law only mandates a 5 day Service Incentive Leave which can be monetized at the end of the year. other benefits are purely discretionary on the part of the employer. however, with the passage of time, a benefit will be deemed a right of the employee.

your remedy is to file a money claim with the NLRC, good luck

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