In the Philippine legal landscape, leave benefits are governed primarily by the Labor Code of the Philippines, supplemented by various Republic Acts and the annual DOLE Handbook on Statutory Monetary Benefits. As of 2025, the framework for Sick Leave (SL) and Vacation Leave (VL) remains a combination of mandatory statutory minimums and discretionary company policies.
1. The Statutory Foundation: Service Incentive Leave (SIL)
Under Article 95 of the Labor Code, the only mandatory leave explicitly named for general private-sector employees is the Service Incentive Leave (SIL).
- Entitlement: Five (5) days of leave with pay for every employee who has rendered at least one year of service.
- Usage: These five days can be used for either vacation or sick leave purposes.
- Commutability: If unused at the end of the year, the SIL must be converted to its cash equivalent based on the salary rate at the time of conversion.
- Exclusions: The SIL does not apply to those already enjoying at least five days of paid vacation leave, government employees, domestic helpers (who have separate laws), and those in establishments regularly employing fewer than ten workers.
2. Vacation Leave (VL) in the Private Sector
While commonly referred to as "Vacation Leave," any leave beyond the mandatory 5-day SIL is generally considered a voluntary benefit granted by the employer or stipulated in a Collective Bargaining Agreement (CBA).
- Company Policy: Most established firms grant 10 to 15 days of VL. Once these are written into an employment contract or established as company practice, they become enforceable rights.
- Discretionary Approval: Unlike SIL, the scheduling of VL is subject to the approval of the employer, based on reasonable business necessity and "management prerogative."
- Carry-over and Conversion: Whether unused VLs (beyond the statutory 5-day SIL) are carried over to the next year or converted to cash depends entirely on the specific company policy or CBA.
3. Sick Leave (SL) and Sickness Benefits
Strictly speaking, the Labor Code does not mandate a specific "Sick Leave" with pay separate from the SIL. However, sick leave is managed through two avenues:
- Company-Granted SL: Similar to VL, most employers provide 10 to 15 days of paid SL. If an employee exhausts their company-paid SL, they may transition to Sickness Benefits provided by the Social Security System (SSS).
- SSS Sickness Benefit: Under RA 11199 (Social Security Act of 2018), an employee who is confined (at home or in a hospital) for more than three days is entitled to a daily sickness allowance from the SSS, provided they have paid at least three monthly contributions within the last 12 months.
- Proof of Illness: Employers are legally permitted to require a medical certificate for SL claims to prevent abuse of the benefit.
4. Special Leave Benefits (Mandatory)
Beyond the standard VL and SL, Philippine law mandates several specific leaves that cannot be offset against the employee’s regular leave credits:
| Leave Type | Legal Basis | Duration | Key Condition |
|---|---|---|---|
| Maternity Leave | RA 11210 | 105 Days | Paid leave for female SSS members (120 days for solo parents). |
| Paternity Leave | RA 8187 | 7 Days | For married male employees for the first 4 deliveries of the legitimate spouse. |
| Solo Parent Leave | RA 11861 | 7 Days | For employees solo-parenting as defined by law; service of 6 months required. |
| VAWC Leave | RA 9262 | 10 Days | For female victims of violence against women and their children. |
| Special Leave for Women | RA 9710 | Up to 2 Months | Following surgery caused by gynecological disorders (Magna Carta of Women). |
5. Jurisprudence and Management Prerogative
The Philippine Supreme Court has consistently upheld that while leave benefits are intended for employee welfare, the management prerogative allows employers to regulate the timing and manner of taking leaves, provided it does not violate the law or existing contracts.
Important Note: For 2025, DOLE continues to emphasize that any "Total Absence" or "Forced Leave" initiated by the employer due to business exigencies must still comply with the minimum standards of the Labor Code, and employees cannot be forced to exhaust their SIL without their consent unless explicitly allowed by a valid company policy.
6. Compliance for 2025-2026
Employers are reminded that failure to provide the mandatory 5-day SIL or to convert it to cash at the end of the year is a violation of labor standards. Conversely, employees should be aware that "Sick Leave" is not an unconditional right to stay away from work without medical justification, unless the company policy states otherwise.