Tuesday, February 11, 2014

Service incentive leave

Did you know that small retail and service establishments are exempted from granting SERVICE INCENTIVE LEAVE to their employees?

Article 95 of the Labor Code provides: 

"Right to service incentive leave. (a) Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.

(b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay at least five days and those employed in establishments regularly employing less than ten employees or in establishments exempted from granting this benefit by the Secretary of Labor after considering the viability or financial condition of such establishment."