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Too many work suspensions? Employers object to 10-day service incentive leave

(FILE PHOTO)

Metro Manila (CNN Philippines, June 28) — A group of employers is pushing back against proposals to increase the number of service incentive leaves mandated by law.

In a Senate hearing on Monday, the Employers Confederation of the Philippines (ECOP) said employees are already being granted several local and national non-working holidays, paid leaves, and even intermittent work suspensions due to typhoons and other calamities.

“The Philippines already has one of the highest numbers of non-national working days in the ASEAN region. In addition, other paid leaves are provided for by existing laws, such as solo parent leave, maternity leave, paternity leave, gynecological leave, among others,” said Robert Maronilla, ECOP’s legal service manager.

He said the group is also “worried” about the negative impact on small and medium enterprises which have incurred losses due to the pandemic.

“Any further reduction of working days through additional leaves would have a critical impact on productivity and the cost of doing business,” Maronilla added.

He also cited President Rodrigo Duterte’s Proclamation No. 1107 which reduced the number of non-working days for 2021. “For the country to recover from the adverse impact of the COVID-19 pandemic, there is a need to encourage economic productivity by, among others, minimizing work disruption and commemorating some special holidays as special (working) days instead,” Duterte’s proclamation read.

Under Senate Bills No. 425 and 641, and House Bill No. 1338 which was passed by the lower chamber last year, employees who have rendered service of at least one year shall be entitled to a service incentive leave of 10 days with pay, from the current five days under the Labor Code. Employees who already enjoy at least 10 days of vacation leave are not covered by the proposed measures.

Labor groups stressed that the current five-day service incentive leave is not enough.

“The concern is those who have no unions. At present, the five-day service incentive leave, masyadong mababa (is too short),” said Federation of Free Workers president Sonny Matula.

The Trade Union Congress of the Philippines believes an expanded service incentive leave would ensure workers’ health, safety, and even productivity, contrary to ECOP’s concerns.

Senator Joel Villanueva, chairman of the committee on labor, said lawmakers will look into these opposing views and try to find a balance. “We are fully aware of the timing and the sensitivity of this particular measure,” he said.

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