Bill doubling service incentive leaves of private sector workers passed on 2nd reading

The House of Representatives has approved on second reading a measure that seeks to double the current service incentive leaves (SIL) of private companies from five days to 10 days.

Approved via simple voice vote ("ayes" vs. "nays") during plenary session Tuesday afternoon, Nov. 8 was House Bill (HB) No.988. It was principally authored by Baguio lone district Rep. Mark Go.

The full title of the measure reads, "An Act increasing the service incentive leave of employees, amending for the purpose Article 95 of Presidential Decree No.442, as amended, otherwise known as the Labor Code of the Philippines."

Under the proposed statute, employees in the private sector will be provided 10 days of SIL, which is double the current five days.

"At present, our laws do not require employers the granting of sickness and vacation leaves. These work incentives are given based on the prerogative of the employers either by express stipulation on the employee's contract or through collective bargaining agreement. What the Labor Code provide instead are ," wrote Go in the explanatory note of HB No.988.

The veteran congressman noted that an employee who has rendered at least one year of service is entitled to a yearly service incentive leave of five days with pay.

"However, the same Code provides that an employer who grants employees with vacation leaves of at least five days shall already be deemed compliant with the mandatory granting of the SIL, thereby rendering the mandatory leave credits at a minimum of only five days," he pointed out.

"With the increase in the number of leave credits in the form of sick or vacation leaves left purely at the discretion of employers, employees constrained by limited leave credits are left vulnerable to sickness, emergencies and other fortuitous events that would cost them a day of paid work," Go stated.

He justified his bill by highlighting that the granting of paid leaves is not only beneficial to the employees but economically advantageous for employers as well.

"Such incentives boost the morale and satisfaction of employees which are manifested in increased productivity. Leave credits also minimizes the risk of health and safety issues among employees which may even be more costly for both employees and employers in the long run," Go said.