House approves on 2nd reading bill that grants more paid leaves to workers

House of Representatives

The House of Representatives has approved on 2nd reading the House Bill 1338 which will grant more leaves with pay to workers.

The said bill, which increases the service incentive leave from 5 to 10 days for employees who have rendered at least one year of service, was approved in a viva voce vote where those shouting ayes outyelled those shouting nayes.

In his explanatory note, HB 1338 Author, Baguio Rep. Mark Go said present laws do not require employers to grant sickness and vacation leaves, adding the Labor Code provides only service incentive leaves.

The said bill amends Article 95 of the Labor Code and excludes employees who are already enjoying the benefit and those employed in establishments with less than 10 employees.

“An employee who has rendered at least one year of service is entitled to a yearly service incentive leave of 5 days with pay. However,the same code provides that an employer who grants employees with vacation leaves of at least 5 days shall already be deemed compliant with the mandatory granting of the service incentive leave, thereby rendering the mandatory leave credit at a minimum of only 5 days,” Go said.

He added that increasing the number of paid leaves improves employee morale and boosts productivity.

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