POSITION PAPER OF THE EMPLOYERS CONFEDERATION OF THE PHILIPPINES (ECOP) ON HOUSE BILL NO. 6770 

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

SALIENT FEATURES

  1. House Bill 6770, approved on third reading last 31 August 2018, is in substitution of House Bill No 5067, introduced by Rep. Mark O. Go.
  2. The Bill seeks to amend Art. 95. Right to service incentive leave of the Labor Code (amendments are in bold capital letters) as follows:

“Every employee who has rendered at least one (1) year of service shall be entitled to a yearly service incentive leave of TEN [five] days with pay.

“This provision shall not apply to those already enjoying the benefit herein provided; those enjoying vacation leave with pay of at least TEN [five] days; and those employed in establishments regularly employing less than ten employees or in establishments exempted from granting the benefit by the Secretary of Labor after considering the viability or financial conditions of the establishment.

“The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action.

 

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