I. What “Terminal Leave” Means in the Philippines

“Terminal leave” is most commonly used in Philippine government service to refer to the use (and/or cash conversion) of accumulated leave credits immediately before separation from the service—typically retirement, resignation, expiration of appointment, or other forms of separation. In practice, a government employee applies to go on leave up to the effective date of separation, and the employee’s unused leave credits are later processed as terminal leave benefits (cash payment for the accumulated credits, subject to the rules on commutation and audit).

In the private sector, the phrase “terminal leave” is used less formally and may refer to:

taking remaining paid leave days before the last working day, and/or
receiving cash payment for unused leave as part of final pay, if the law, company policy, or a CBA makes such leave convertible.

Because the rules differ sharply between government and private employment, denials must be analyzed under the correct framework.

II. The Governing Legal Framework (Philippines)

A. Government service (civilian)

Terminal leave administration sits at the intersection of:

Civil Service rules on leave administration (leave accrual, use, and approval standards),
Administrative law principles (ministerial vs. discretionary acts; due process in personnel actions),
Budget and accounting rules for payment (availability of appropriations; audit requirements),
Commission on Audit (COA) rules for government disbursements, especially where cash payment is involved.

Key idea: Government leave rights are statutory/regulatory benefits. Agencies manage leave, but they cannot invent additional requirements or withhold benefits arbitrarily.

B. Private sector

Private sector leave is generally governed by:

The Labor Code (notably the Service Incentive Leave entitlement after one year of service, subject to lawful exceptions),
Employer policies, employment contracts, and CBAs (which often grant vacation/sick leave beyond the statutory minimum),
Rules on final pay and money claims, enforced through labor standards and labor relations mechanisms.

Key idea: Outside statutory entitlements and what the employer has promised (policy/CBA/contract), leave scheduling is typically management prerogative, but it must be exercised in good faith and without violating legal or contractual rights.

III. Two Different “Denials” That Get Confused

Terminal leave disputes usually fall into one of two buckets:

1) Denial of the leave to be enjoyed (permission to stop reporting and go on leave until separation)

This is about work scheduling and service needs.

2) Denial (or non-processing) of the cash benefit for accumulated leave credits upon separation

This is about a monetary entitlement (subject to verification/audit), not simply scheduling.

The “mandatory approval” concept is more commonly—and more strongly—invoked in #2 than #1.

IV. When Agencies/Employers Can Deny Terminal Leave (Legitimate Grounds)

A. Government service: common legitimate grounds (leave enjoyment and/or processing)

Insufficient or negative leave credits (including credits not yet earned or improperly credited).
Incomplete documentary requirements, such as:
- application form deficiencies,
- lack of required endorsements,
- missing separation/retirement documents where required for terminal leave processing.
Exigencies of the service (for the timing of leave enjoyment), especially for critical positions or staffing shortages.
Failure to complete clearance/turnover requirements that the agency can lawfully require for separation (property accountability, cash advances, pending official accountabilities).
Pending administrative or criminal matters where rules allow withholding or offsetting certain benefits only to the extent authorized and typically subject to due process and proper documentation.

Important nuance: Even when clearance or accountabilities exist, the usual lawful outcome is delay or partial withholding/offset consistent with law and audit rules, not a blanket refusal without process.

B. Private sector: common legitimate grounds

Scheduling/business necessity (denying the request to “use” leave before the last day), especially where the employee’s presence is required for turnover.
Company policy/CBA rules that set leave filing cutoffs, blackout dates, or approval procedures—so long as these are lawful and applied consistently.
Not convertible by policy (for leave types beyond statutory SIL), meaning the employer may deny “cash conversion” if it was never promised—except for legally mandated conversions (e.g., unused statutory SIL in many separation contexts, and any conversions clearly provided by policy/CBA).

V. When Approval Becomes “Mandatory” (Philippine Context)

“Mandatory” here does not mean an agency must always grant your preferred dates. It means that once the legal conditions are satisfied, the approving authority has a ministerial duty to approve/process—and denial becomes legally vulnerable.

A. Government service: when approval/process is effectively ministerial

1) When the employee is separating and has valid, existing leave credits

If you are retiring, resigning, or otherwise separating, and records show you have properly earned and accumulated leave credits, the agency generally has a duty to process terminal leave benefits in accordance with civil service and accounting rules.

A denial is likely improper when it is based on:

reasons not found in law/rules (e.g., “we don’t grant terminal leave,” “it’s against practice,” “no one gets that here”),
vague claims of “management discretion” used to defeat an established benefit,
punitive motives (retaliation) or discrimination.

2) When the denial is based solely on “exigency of the service,” but separation is already fixed

For an employee who is already set to separate, “exigency” may justify:

requiring turnover first, or
adjusting the last working day or the period of actual leave enjoyment (depending on the rules and timing),

but it is usually a weak basis to refuse the benefit itself if the employee is already leaving and credits exist. The agency’s lawful interest is typically addressed by turnover/clearance and proper staffing measures, not by forfeiting accrued credits.

3) When the employee meets all requirements and there is no lawful ground to withhold

If:

leave credits are sufficient and verified,
the application is properly filed,
clearance/accountability issues are resolved (or properly documented for lawful withholding/offset),
there is no lawful prohibition,

then the action to approve/process becomes closer to a ministerial act. Unjustified refusal may be assailable as grave abuse of discretion or as an unlawful withholding of a benefit.

4) When denial would effectively cause forfeiture of earned credits without legal basis

Earned leave credits are a recognized benefit; forfeiture or non-recognition requires a clear legal basis and, where adverse, due process. If denial would zero out credits merely because of internal preference or hostility, it is especially vulnerable.

B. Private sector: when approval is “mandatory” (narrower, but real)

1) When the entitlement is statutory (e.g., Service Incentive Leave)

Employers must grant the statutory leave to eligible employees, subject to lawful exceptions. If the employee is separating and has unused statutory leave that is convertible/commutable, refusal to pay what the law requires can be pursued as a money claim.

2) When the entitlement is contractual (policy/CBA/employment contract)

If the employer’s policy/CBA expressly provides:

cash conversion of unused VL/SL upon resignation/retirement, or
automatic leave usage before separation, or
mandatory approval standards (e.g., “shall be approved unless…”),

then denial contrary to those terms may be a breach and can be enforced through grievance machinery or labor dispute resolution.

3) When denial is arbitrary, discriminatory, or retaliatory

Even where scheduling is discretionary, employers must act in good faith. A denial used to punish protected activity, discriminate, or selectively enforce rules can become actionable.

VI. What a Proper Denial Should Look Like (Procedural Fairness)

Whether government or private, a defensible denial is:

In writing (or at least documented),
Specific about the rule/policy basis,
Fact-based (credits short by X days; clearance missing; blackout dates; required turnover),
Proportionate (deny the dates, not the benefit; require turnover rather than forfeiture),
Consistent with how other employees are treated.

A denial that is purely verbal, vague, shifting, or unsupported is much easier to challenge.

VII. Evidence and Documents to Gather (Before Appealing)

A. Government service checklist

Approved/verified leave ledger or official certification of leave credits (latest available)
Terminal leave application form(s) and proof of filing/receipt
Separation document (retirement/resignation notice, effectivity, acceptance/approval where applicable)
Clearance/turnover documentation (property, cash advances, accountabilities)
HR memos/emails showing the reason for denial
Any agency policy issuance relied upon
Payroll/position papers if disputes involve pay computation

B. Private sector checklist

Company handbook/policy on leave and conversion
CBA provisions (if applicable)
Your filed leave applications and employer responses
Employment contract clauses relevant to leave
Payslips/leave balances (HRIS screenshots, certifications)
Resignation/retirement documents and final pay computations/communications

VIII. How to Appeal: Government Service (Philippines)

Step 1: Request a written explanation and the exact basis

Ask HR/your supervisor/approving authority to state:

the specific ground(s),
the rule/policy relied upon,
what you must do to cure the defect (if curable),
whether the denial is of leave enjoyment dates or terminal leave benefit processing.

This matters because the remedy differs.

Step 2: Use internal remedies (fastest record-building)

Depending on agency structure:

elevate to the next higher approving authority,
file through the agency grievance machinery (where applicable),
request reconsideration with attached proof (updated leave credits, completed clearance, turnover plan).

The goal is to create a clean record showing you complied and the denial persists without lawful basis.

Step 3: Appeal to the Civil Service Commission (CSC), when the issue is a personnel/leave administration dispute

For disputes rooted in civil service leave rules, an appeal may be brought to the appropriate CSC office following CSC procedures on appeals and requests for assistance. The CSC route is most fitting where the controversy is:

wrongful denial of leave rights,
improper application of leave rules,
arbitrary refusal to process a recognized benefit due to non-rule-based reasons.

Practical framing: “This is a leave administration/personnel action dispute involving accrued leave credits and terminal leave processing.”

Step 4: Consider COA processes when the issue is the release of money subject to audit

Where the agency claims it cannot pay due to audit or accounting rules, the dispute can morph into a money claim issue. COA’s role is central in government disbursements. If the agency refuses payment on accounting/audit grounds, the path may involve:

pursuing proper documentation to satisfy audit,
requesting a formal decision/action that can be elevated through the appropriate audit/appeal mechanisms.

Practical framing: “The benefit is due; if withholding is based on accountabilities, it must be itemized and processed through lawful withholding/offset—not a blanket refusal.”

Step 5: Judicial remedies (exceptional; usually last)

If an authority has a ministerial duty and refuses to act despite complete requirements, the legal system recognizes remedies such as compelling performance of a ministerial act. In practice, these are pursued after building a record that:

you have a clear legal right,
the duty is ministerial,
there is no other plain, speedy, adequate remedy.

IX. How to Appeal: Private Sector (Philippines)

Step 1: Identify whether the issue is “time off” or “money”

If your employer refuses to let you use leave before the last day: this is largely scheduling/turnover, governed by policy and good faith.
If your employer refuses to pay convertible leave that is promised by law/policy/CBA: this is a money claim.

Step 2: Internal escalation / grievance

HR escalation, manager escalation
If covered by a CBA: follow the grievance machinery strictly (timelines matter).

Step 3: Labor dispute resolution (money claims, unlawful withholding)

If the dispute is about unpaid convertible leave or final pay components required by law/policy/CBA, the recognized route is through labor mechanisms (conciliation/mediation and, if necessary, formal adjudication), with the relief framed as:

unpaid wages/benefits (cash equivalent of leave),
damages/attorney’s fees where legally supportable, depending on circumstances.

X. Strong Appeal Arguments (What Works)

A. The “ministerial duty” argument (best for government terminal leave benefit processing)

You have verified leave credits.
You are already separating (date fixed).
You complied with filing requirements.
There is no cited lawful ground to deny; or the cited ground is not recognized by law/rules.
Any accountabilities can be handled by lawful withholding/offset after due process, not forfeiture.

B. The “no forfeiture without legal basis” argument

Earned benefits can’t be taken away by mere practice or preference.
If the agency/employer is effectively forcing forfeiture, it must cite a clear legal basis.

C. The “equal application / non-discrimination” argument

Show comparators: similarly situated employees granted terminal leave or paid leave conversion.
Show selective enforcement or retaliation.

D. The “good faith turnover plan” argument (best for leave enjoyment timing disputes)

If management insists on exigency/turnover:

propose a concrete turnover schedule,
offer to render limited hours for transition,
identify replacement/training steps,
ask for partial approval (e.g., shortened reporting period, then leave).

This undercuts the justification for a total denial.

XI. Common Pitfalls That Weaken Appeals

Not distinguishing between leave enjoyment denial vs benefit processing denial.
Relying on “everyone knows terminal leave is allowed” without documents.
Failing to secure a written denial or at least documented email exchanges.
Assuming HRIS leave balances are final when agencies may require certified ledgers.
Ignoring clearance/accountability issues that can lawfully delay payment.
Waiting too long and missing internal grievance/appeal timelines.

XII. Practical Drafting Guide: What to Put in an Appeal Letter

A persuasive appeal is structured and documentary:

Caption/Subject: Appeal of Terminal Leave Denial / Request for Reconsideration
Facts: position, service record, separation type and effective date
Leave credits: attach certification/ledger; state exact balance
Filing history: when and how filed; who received; attach proof
Denial: quote the stated reason(s); attach written denial or email
Rule-based response: explain why the reason is not lawful or is curable; attach compliance documents
Relief requested:
- If about leave enjoyment: approval of specific dates or a proposed revised schedule
- If about benefit: immediate processing and release, subject to lawful audit requirements; or written itemization of any lawful withholding/offset
Request for action within a definite period (reasonable working days), and for a written resolution

XIII. Bottom Line Principles

Government: Once separation is set and leave credits are valid, the agency’s role is primarily to verify and process, not to defeat the benefit through unsupported discretion. Denials must be rule-based, documented, and proportionate.
Private sector: Approval to take leave before the last day can depend on business needs, but refusal to pay legally/policy-mandated convertible leave is enforceable as a money claim.
Mandatory approvals arise when the law/policy makes the outcome non-discretionary after conditions are met—especially for the processing of accrued, convertible benefits.
Appeals succeed when you separate the issues, build a clean paper trail, and force the decision-maker to anchor the denial to an actual rule rather than preference.