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Resignation and Unused Vacation Leave

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1 Resignation and Unused Vacation Leave on Tue Jul 15, 2014 8:41 pm


Arresto Menor
Hi folks,

It's my first time here is this forum. Hope someone can shed some light.

The company has a policy that only 10 days of Vacation Leave is convertible to cash at the end of the year, if the number of VLs exceed 10, it would be carried over to the next year. If an employee resigned and upon completion of 30-day notice period, he still has 15 days of unused VLs. The company would only pay 10 days as part of back pay upon resignation. Is it legal that the remaining 5 days would not be compensated? I mean it was gathered because they are also requesting employees to work during Saturdays and just give them additional 1 day of VL.

Thanks in advance.

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2 Re: Resignation and Unused Vacation Leave on Wed Jul 16, 2014 5:56 am


Reclusion Perpetua
Seems fair to me, especially if it's in the policy.

The remaining 5 days are "motivation" for you to use them by not leaving the company - or if you do, make sure that you only have 10 days VL left.

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3 Re: Resignation and Unused Vacation Leave on Fri Jul 18, 2014 9:23 am


Reclusion Perpetua
if it's in the company policy and you are aware of it, it's legal. Labor law only recognizes 5 days Service Incentive Leave, if you are receiving more, then it's company's prerogative and they can implement rules on how they are used or converted.

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