Employee leave benefits are management prerogatives

Dear PAO,

I had remaining five days of vacation leave. I applied for a two-day vacation leave. However, I extended my leave for another two days, and informed our Human Resource Officer about through text but I did not receive any reply. My employer deducted from my salary my extended leave of two days. Does my employer have the right to do this considering that I am a monthly paid employee? Ram

Dear Ram,

It is worth stressing that in the grant of vacation and sick leave privileges to an employee, the employer is given leeway to impose conditions on the entitlement as the grant of vacation and sick leave is not a standard of law, but a prerogative of management. It is a mere concession or act of grace of the employer and not a matter of right on the part of the employee. Thus, it is well within the power and authority of an employer to deny an employee’s application for leave and the same cannot be perceived as discriminatory or harassment.

In your case, your vacation leave for two days was approved by your employer before your actual leave. However, as you have stated, you extended your leave for another two days without a written request and prior approval. Your employer would be justified in deducting from your salary the two days extended leave if under your company’s policy the request for vacation leave should be in writing or must be requested prior to the actual date of the intended leave for approval. If your company has this policy, then your extension of leave, which you have requested through text, would not be considered.
Thus, your company could deduct your unapproved leave from your salary even if you are a monthly paid employee.

Service incentive leave is sanctioned by the Labor Code. Hence, it is mandatory for the employer to grant this benefit to employees who may be entitled thereto. However, there is no law that makes the grant of vacation leave and its benefits mandatory on the part of management. The claim for vacation pay can only be availed of through an agreement with or voluntary unilateral grant by the employer. But once a vacation leave is accorded by an employer, it becomes a matter of right and not a mere privilege on the part of the employees. Hence, it cannot be withdrawn or revoked, otherwise the employer shall violate the principle of non-diminution of benefits under Article 100 of the Labor Code, which provides that “nothing in this Book (Book III, Labor Code of the Philippines) shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code.

We hope that we have enlightened you on your queries. We wish to remind you that the above legal advice is solely based on the facts you have narrated and our appreciation may vary when other facts are changed or elaborated. –Persida Acosta, Manila Times

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net This e-mail address is being protected from spambots. You need JavaScript enabled to view it or via text message (key in: Times dearpao <YOUR QUESTION> and send to 2299).