I. Introduction

Leave entitlements are a core part of labor standards in the Philippines. They embody constitutional principles of social justice, humane conditions of work, and protection to labor, while balancing the employer’s management prerogatives.

For regular employees in the private sector, leave benefits come from several layers of rules:

The Labor Code of the Philippines and its implementing rules
Special labor and social welfare statutes (maternity, paternity, solo parent, women’s rights, VAWC, etc.)
Company policies, CBAs, and long-established practices

This article focuses on regular employees in the private sector, but many of the leaves discussed apply regardless of employment status (regular, probationary, project-based, etc.).

II. Concept of Regular Employment and “Leave”

A. Regular Employment

Under the Labor Code (as renumbered), an employee is generally regular when:

The employee is engaged to perform activities usually necessary or desirable in the usual business or trade of the employer; or
The employee has rendered at least one year of service, whether continuous or broken, with respect to the activity in which they are employed, and such employment continues.

Regular employment primarily affects security of tenure and certain benefits (e.g., separation pay in some situations), but many statutory leave benefits do not depend on regular status alone; they apply to all employees who satisfy the specific law’s requirements.

B. Concept of “Leave”

“Leave” is authorized absence from work, with or without pay, for reasons recognized by law, contract, policy, or practice.

Key distinctions:

Statutory leave – required by law (e.g., service incentive leave, maternity leave).
Contractual/company leave – voluntarily granted by the employer through policy, contract, or CBA (e.g., vacation leave, sick leave, bereavement leave).
Paid vs. unpaid leave – paid leave entitles the employee to full or partial compensation; unpaid leave suspends wage payment but not the employment relationship.

III. Statutory Leave Under the Labor Code

Service Incentive Leave (SIL)

1. Legal Basis and Nature

The Labor Code grants service incentive leave of 5 days per year with pay to employees who have rendered at least one year of service, whether continuous or broken, with the same employer.

Key points:

Minimum standard – Employers may grant more than 5 days, but not less.
With pay – The employee is paid their daily wage for each SIL day used.

2. Coverage

As a general rule, SIL covers all employees in the private sector, but there are important exemptions, including:

Employees of the government or GOCCs with original charters
Managerial employees
Field personnel and other employees whose time and performance are unsupervised and who are paid on results (e.g., certain commission-based workers)
Domestic helpers (now governed separately by the Batas Kasambahay)
Workers in establishments with less than 10 employees (per DOLE regulations)
Employees already enjoying at least 5 days of vacation leave with pay

Regular employees not falling under these exemptions are entitled to SIL, once they complete one year of service.

Note: Even non-regular employees (e.g., probationary, project, seasonal) may be entitled to SIL if they meet the statutory conditions and are not covered by the exemptions.

3. One Year of Service

“One year of service” means at least 12 months of service, whether continuous or broken, including:

Authorized absences
Holidays
Rest days
Regular days off

As long as the employment relationship exists and the employee remains in the service of the employer, these count toward the one-year requirement.

4. Accrual and Commutation

SIL accrues at 5 days per year after the employee has completed at least one year of service.
Unused SIL is commutable to cash, typically:
- At year-end, according to company policy; and/or
- Upon separation from employment (resignation, termination, retirement).
The money value is usually computed as:

Daily rate × number of unused SIL days

Companies may allow SIL to accumulate or may require use within the year, but they cannot forfeit the money value of accrued SIL that the law mandates, except in very limited, clearly justified circumstances.

5. Prescriptive Period

Claims for SIL (and its commutation) are subject to prescription. The usual rule is that monetary claims arising from the Labor Code prescribe after three (3) years from the time the cause of action accrued (e.g., non-payment / refusal to pay SIL).

IV. Statutory Leave Under Special Laws

A. Expanded Maternity Leave

1. Legal Basis and Coverage

The Expanded Maternity Leave Law (EMLL) (Republic Act No. 11210) significantly broadened maternity benefits for women workers. It applies to:

All female workers, regardless of civil status, employment status, and legitimacy of the child, in both public and private sectors.
Workers in the informal economy, OFWs, and those covered by the Social Security System (SSS), among others.

Regular employees in the private sector who are female and SSS-covered enjoy these benefits in addition to other leave entitlements.

2. Maternity Leave Durations

Live childbirth (regardless of mode of delivery):
- 105 days maternity leave with full pay
- Additional 15 days with full pay if the mother is a solo parent (subject to Solo Parents’ Welfare Act requirements)
- Optional 30 days extension without pay
Miscarriage or emergency termination of pregnancy:
- 60 days maternity leave with full pay

3. Allocation of Leave to Father or Caregiver

The mother may allocate up to 7 days of her maternity leave to:

The legitimate father of the child; or
In certain circumstances, an alternative caregiver (e.g., current partner, relative within the fourth civil degree, or the mother’s relative who will actually provide care).

This allocation is separate from paternity leave and subject to procedural requirements.

4. Pay and Funding

For private sector employees:

The SSS pays the maternity benefit to the employer, who advances the benefit to the employee.
The employer generally shoulders the salary differential between the employee’s full pay and the SSS benefit, except for certain exempt employers (e.g., small businesses that meet statutory exemption conditions).

5. Security of Tenure and Non-Discrimination

A female employee cannot be dismissed or discriminated against solely by reason of pregnancy, childbirth, or availing maternity leave.
Availing of maternity leave does not break the continuity of service for purposes such as tenure, seniority, and related benefits.

B. Paternity Leave (RA 8187)

1. Coverage

The Paternity Leave Act grants paternity leave to married male employees in the private and public sectors who:

Are legally married to the mother of the child;
Are cohabiting with their legitimate spouse; and
Are employed at the time of childbirth or miscarriage.

2. Benefit

Seven (7) days of paternity leave with full pay per childbirth or miscarriage
Limited to the first four (4) deliveries or miscarriages of the legitimate spouse

3. Conditions and Use

Leave is typically availed of immediately before, during, or after the delivery or miscarriage, within a reasonable period specified by implementing rules or company policy.
The employee must notify the employer and show proof (e.g., marriage contract, wife’s medical certificate).
Paternity leave is non-cumulative and generally non-convertible to cash if unused.

C. Parental Leave for Solo Parents

1. Legal Basis and Coverage

Under the Solo Parents’ Welfare Act (RA 8972, as amended), qualified solo parents employed in the private sector enjoy certain benefits, including parental leave.

A solo parent may be:

A parent who is solo by reason of death, abandonment, separation, annulment, or other legally recognized situations;
An unmarried mother or father;
Other caretakers recognized by law as solo parents, subject to conditions.

2. Parental Leave Benefit

Seven (7) working days of parental leave with pay per year
Granted after the solo parent has rendered at least six (6) months of service (whether continuous or broken) within the last 12 months

3. Purpose and Use

This leave is designed to enable the solo parent to fulfill parental duties and responsibilities, such as:

Attending school activities, medical check-ups, and family emergencies
Other child-related obligations

Parental leave is usually:

Non-cumulative
Non-convertible to cash if unused (unless company policy provides otherwise)

4. Documentation

The solo parent must typically:

Secure a Solo Parent ID from the DSWD or relevant local office; and
Submit it to the employer along with other required documents.

D. Special Leave for Women (Gynecological Disorders) – RA 9710

1. Legal Basis and Coverage

Under the Magna Carta of Women (RA 9710), female employees are entitled to a special leave benefit if they:

Have rendered at least six (6) months of continuous aggregate service in the last 12 months; and
Undergo surgery due to gynecological disorders (as specifically listed or defined in the IRR and DOLE issuances).

2. Benefit

Up to two (2) months with full pay, based on the employee’s gross monthly compensation, subject to medical certification and procedural requirements

3. Nature

Intended to allow recovery from serious gynecological conditions
Distinct from maternity leave and cannot be used as a substitute for it
Typically non-cumulative and non-convertible to cash unless company policy provides otherwise

E. Leave for Victims of Violence Against Women and Their Children (VAWC) – RA 9262

1. Coverage

Under RA 9262, female employees (or, in some cases, their children) who are victims of violence committed by a spouse, former spouse, or a person with whom the woman has or had a sexual or dating relationship, or with whom she has a common child, may be entitled to VAWC leave.

2. VAWC Leave Benefit

Ten (10) days of leave with full pay, in addition to other paid leaves,
Extendible as necessary, subject to the discretion of the court (e.g., if the case continues and the victim needs more time to attend to legal matters).

3. Purpose

VAWC leave is intended to allow the victim to:

Prepare for legal action, file cases, and attend hearings
Seek medical and psychological treatment
Relocate and secure safety

4. Documentation

The grant of VAWC leave usually requires:

A Barangay Protection Order (BPO), Temporary or Permanent Protection Order, or
A certification from the barangay, prosecutor, or court that an action under RA 9262 is being pursued.

V. Other Statutory and Sector-Specific Leaves

Some leave benefits exist in specific contexts, often more prominent in the public sector but sometimes mirrored voluntarily by private employers. Examples include:

Special emergency/calamity leave – commonly provided in the public sector and by many private employers after typhoons, earthquakes, or other calamities; sometimes guided by DOLE advisories.
Study leave, examination leave, rehabilitation leave, etc. – these are more formally recognized in the civil service framework, but private employers may adopt similar schemes in company policies or CBAs.

For regular employees in private enterprises, such specialized leaves typically arise from company rules or collective bargaining agreements, unless a specific statute mandates them for the private sector.

VI. Company-Granted Leaves (Beyond Statutory Minimums)

Statutory leave benefits are minimum standards. Most medium-to-large employers, and many smaller ones, voluntarily grant additional leave benefits, such as:

Vacation leave (VL) – often 10–15 days or more per year
Sick leave (SL) – often 5–15 days or more per year
Emergency leave
Bereavement leave
Marriage leave
Birthday leave
Study or exam leave
Union leave (for union officers, typically under a CBA)

A. Legal Basis

These arise from:

Written employment contracts
Employee handbooks or manuals
Collective bargaining agreements (CBAs)
Company practice or policy, consistently and deliberately applied over time

B. Non-Diminution of Benefits

Under the non-diminution rule, benefits that are voluntarily and consistently granted, and which are not due to error, may become part of the employees’ demandable rights. Employers may not unilaterally reduce or withdraw such benefits, except under strict conditions (e.g., clear, legitimate basis, and ideally through negotiation).

Thus, once a regular employee has been enjoying certain leaves (like 15 days VL and 15 days SL annually) as a matter of policy or long-established practice, these may not be arbitrarily reduced or removed.

VII. Interaction Between Different Leave Types

A. Overlapping Eligibility

A regular employee may qualify simultaneously for several leave benefits, for example:

A female solo parent who becomes pregnant may be entitled to:
- Expanded maternity leave (105 + 15 days with pay), and
- Solo parent parental leave (7 days with pay per year), and
- SIL, plus any company VL/SL

These benefits generally co-exist, but:

They may not be “double-counted” for the same day (e.g., you cannot claim two different types of paid leave for the same date, unless a specific law or company policy explicitly allows stacking).
Employers and employees must properly classify and record the leave taken.

B. Paid vs. Unpaid Extensions

Many laws allow unpaid extension beyond the paid leave period (e.g., extra 30 days after maternity leave). During unpaid leave:

The employee’s employment status is preserved,
Wages are not paid,
Certain benefits linked to actual days worked may be affected (depending on law and policy), while others (like seniority-based benefits) usually continue accruing.

VIII. Leave Application, Approval, and Documentation

A. Leave Application and Employer Prerogative

As a rule (except in cases like maternity leave where the law grants a near-absolute right), employees must:

Formally apply for leave, following company policy;
Provide required documents (e.g., medical certificate, Solo Parent ID, court or barangay certification);
Give reasonable notice, especially for planned leaves (vacation, planned procedures).

Employers have management prerogative to:

Approve or deny non-mandatory or discretionary leave (e.g., unpaid leaves, scheduling of vacation leave), based on business exigencies, provided they do not act in bad faith or in a discriminatory manner;
Require proper documentation;
Discipline employees for unauthorized absences or falsification of leave documents, subject to due process.

B. Leaves That Cannot Be Unreasonably Denied

Some leaves are clearly mandated by law, and denial can result in liability, such as:

Maternity leave under RA 11210
Paternity leave for eligible employees under RA 8187
Solo parent leave for qualified solo parents
VAWC leave for victims who meet requirements
SIL (once accrued)

For these, an employer’s role is primarily administrative (processing and verifying compliance), not discretionary as to whether the employee “deserves” leave.

IX. Computation and Pay During Leave

A. Basic Principle

For paid leaves, the general rule is that the employee receives their full pay (often understood as the basic wage or gross monthly compensation, depending on the specific law) during the leave period, subject to:

The law’s exact wording (e.g., “full pay based on her average daily salary credit” vs “gross monthly compensation”)
Implementing rules and DOLE or SSS regulations

B. Daily Rate Computation

For daily benefit computation, employers usually:

Determine the employee’s daily rate, which may be:
- Monthly salary × 12 ÷ total working days in a year; or
- Monthly salary ÷ 26 or ÷ 22 (depending on whether company uses a 6-day or 5-day workweek basis);
Multiply by the number of leave days.

Companies must maintain consistency and align their formula with DOLE guidelines, the law, and existing company policy/CBA.

C. Effect on Other Benefits

13th month pay – generally computed from an employee’s basic salary earned in a calendar year. Whether certain leave commutations (like SIL cash conversions) form part of the 13th-month base is governed by DOLE rules and jurisprudence; employers should follow those specific directives.
Social security and other contributions – continued payment of SSS/PhilHealth/Pag-IBIG contributions during leave may depend on whether the leave is with pay and the specific law governing the benefit (e.g., for maternity leave, SSS has detailed rules).

X. Leave, Security of Tenure, and Discipline

A. Leave Does Not Curtail Tenure

Availing of statutory leave (maternity, VAWC, SIL, etc.), or valid company leave:

Does not break continuity of service;
Should not be used as a ground to terminate, penalize, or discriminate against the employee.

For example:

An employee cannot be lawfully terminated simply because she is pregnant or avails maternity leave.
A regular employee who frequently falls ill and uses sick leave may be sanctioned only if there is abuse (e.g., falsifying medical certificates) and only with due process.

B. Abuse of Leave and Misconduct

However, certain behavior related to leave may be considered just causes for disciplinary action (including termination), such as:

Falsifying medical certificates or supporting documents
Claiming leave benefits under false pretenses (e.g., misrepresenting marital status or solo parent status)
Repeated, unexcused absences (AWOL) and failure to observe leave procedures

In such cases, employers must observe the twin-notice rule and provide the employee an opportunity to explain and be heard.

XI. Separation from Employment and Leave Benefits

When a regular employee resigns, is terminated, or retires, the treatment of leaves is generally as follows (subject to law and company policy):

Service Incentive Leave (SIL)
- Unused SIL must be commuted to cash at the time of separation, based on the employee’s daily wage at that time.
Company-granted VL/SL and other leaves
- The company policy or CBA usually governs whether unused balances are convertible to cash at separation.
- If the policy or long-standing practice has been to cash out unused VL/SL, this may become a demandable benefit under the non-diminution rule.
Maternity, paternity, solo parent, VAWC, and special women’s leave
- These benefits are time-bound and event-specific (e.g., childbirth, surgery).
- If the event occurs and qualifies under the law while the employment still exists, the employee may avail, subject to compliance with requirements.
- If separation occurs before the qualifying event or before entitlement vests under the law, the leave benefit may not be claimable.

XII. Practical Considerations for Employers and Employees

For Regular Employees

Know your rights: Understand which leaves you are entitled to by law, and which are granted by policy or CBA.
Keep records: Maintain copies of leave applications, approvals, medical certificates, Solo Parent IDs, protection orders, and related documents.
Follow procedures: Observe company timelines and documentation requirements when applying for leave, especially for statutory ones to avoid technical disputes.
Monitor balances: Track your accrued leaves and how they are used or converted.

For Employers

Clear policies: Draft and disseminate a comprehensive leave policy consistent with the Labor Code and special laws.
Training: HR and line managers should be trained on proper implementation (processing, documentation, non-discrimination, confidentiality).
Consistent implementation: Apply policies uniformly to avoid claims of discrimination or unfair labor practice.
Record-keeping: Maintain accurate leave records for each employee to support payroll, DOLE inspections, and potential disputes.

XIII. Conclusion

For regular employees in the Philippines, leave entitlements arise from a structured combination of Labor Code provisions, special social welfare statutes, and company-level policies and practices.

At a minimum, a regular employee in the private sector will typically encounter:

Service Incentive Leave (SIL) – 5 days with pay per year
For women: Expanded maternity leave and special leave for gynecological surgery, plus possible VAWC leave
For married men: Paternity leave for the first four deliveries or miscarriages of the legitimate spouse
For qualified solo parents: Parental leave of 7 days per year
Additional company-granted VL/SL and other special leaves

These rights are intertwined with fundamental principles of protection to labor, social justice, and security of tenure. While employers may enhance these benefits, they may not go below the legal minimums, nor may they arbitrarily remove well-established leaves once these have ripened into benefits by law, contract, or practice.

Because legislation, DOLE issuances, and jurisprudence continue to evolve, detailed assessment of particular situations is best done with reference to the current text of the laws, implementing rules, and the specific company’s policies or CBA, and, where necessary, with the assistance of competent legal counsel or DOLE guidance.