LEAVES WITH PAY

Taking leaves from work is one of the benefits of employees and is also one of the important part of ones career. When one take time off from work,  it makes them more productive. That should be the main purpose of leaves. But mostly, employees take leave of absence because of illness, to attend to emergency errands like paying up the bills and worst, some use it for applying to a job in another company.

So what are leaves by the way? Leaves are days when employees may still be paid despite their absence from work.  There are two kinds of leaves – that allowed by law and that one called as “ Best Practices” wherein the employer may add (not subtract) to these leaves out of the goodness of their heart or under a negotiated Collective Bargaining Agreement (CBA).

Mandated by law:
1. Service Incentive Leave (Article 95 of labor code) - Every employee (subject to the exceptions below) who has rendered at least one year of service is entitled to yearly service incentive leave of five days with pay.

“At least one year of service” Meaning

The term “at least one-year service” means service for not less than 12 months, whether continuous or broken.

The 12-month period shall be reckoned from the date the employee started working, including authorized absences and paid regular holidays.

However, where the operation of the establishment as a matter of practice or policy, or that provided in the employment contract, is less than 12 months, such period shall be considered as one year.

(with exemptions : For many companies, the 5 days SIL is already covered in 15 days Vacation leave)
2. Maternity Leave (RA 1161, as amended by RA 8282) Art. 133 - Under Article 133(a) of the Labor Code, “Every employer shall grant to any pregnant woman employees who has rendered an aggregate service of at least six months for the last twelve months, maternity leave of at least two weeks prior to the expected date of delivery and another four weeks after normal delivery or abortion, with full pay based on her regular or average weekly wages.”

From the above provision, a qualified pregnant woman employee shall be entitled maternity leave of at least two weeks prior to expected date of delivery and another four weeks after normal delivery or abortion. That’s a total of six weeks maternity leave.

3. Paternity leave (RA 8187) - Paternity leave refers to the benefits granted to a married male employee in the private and public sectors allowing him to take a leave for 7 days, with full pay, for the first 4 deliveries of his legitimate spouse with whom he is cohabiting.
4. Parental leave (for solo parents) RA 8972 (Republic Act no.8972) Section 8. Parental Leave. - In addition to leave privileges under existing laws, parental leave of not more than seven (7) working days every year shall be granted to any solo parent employee who has rendered service of at least one (1) year.

For more information on the solo parent act, check out this website:http://www.lawphil.net/statutes/repacts/ra2000/ra_8972_2000.html

5. Leave for victims of violence against women and heir children (RA 9262) SEC. 43. Entitled to Leave. – Victims under this Act shall be entitled to take a paid leave of absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil Service Rules and Regulations, extendible when the necessity arises as specified in the protection order.

Any employer who shall prejudice the right of the person under this section shall be penalized in accordance with the provisions of the Labor Code and Civil Service Rules and Regulations. Likewise, an employer who shall prejudice any person for assisting a co-employee who is a victim under this Act shall likewise be liable for discrimination.

6. Magna Carta of Women (Republic Act No. 9710) – is a comprehensive women’s human rights law that seeks to eliminate discrimination against women by recognizing , protecting , fulfilling and promoting the rights of Filipino women, especially those in marginalized sector.

In this Republic Act 9710, women are given  a Leave Benefits of two (2) months with full pay based on grossly monthly compensation, for women employees who undergo surgery caused by gynecological disorders, provided that they have rendered continous aggregate employment service of at least six (6) months for the last twelve ( 12 ) months.

For HR people, it is important to note that HR records/database are checked and consolidated to eliminate double compensation. Like for example, in granting of sickness benefit, employee must have used up the company leave benefits with pay before he/she can avail this from SSS.

Best practices
1. 15 days Vacation, 15 Days Sick leave, 3 days emergency leave
2. Modified Service Incentive leave that allows more flexible use of leave credits
3. Birthday leave
4. Bereavement Leave - practices vary from one company to another. The one i know gives one day with pay.

In other companies , Bereavement Leave is being administered wherein the number of days is dependent on the location.

Ex. 5 days if within Metro Manila or within ___ km radius from the workplace
7 days if outside metro Manila or outside ___ km radius from the workplace

There are some that the number of days is dependent on the employees' relationship with the deceased.

Ex. if immediate family - 3 days
if extended family - 1 day

5. Leave Commutation and accrual: The practices of companies vary as well. I guess the main determinant is a business need. The company should also balance the real need of employees to take respite from work, otherwise the purpose of offering leave benefits will be defeated.

6. Compensatory Time Off (CTO). In some companies, they grant this. Only for our regular employees who are not entitled to overtime pay (those holding technical/senior administrative positions; those with supervisory tasks; and those performing managerial functions). CTO can only be taken for extra work rendered for the purpose of completing special tasks and/or assignments given or sanctioned by the respective supervisors of eligible staff. The extra work should be performed during the following time periods:

a. On all hours exceeding 12 hours of work (including meal breaks) rendered on regular weekdays.

b. On all hours worked on Saturdays, Sundays and/or legal holidays (excluding meal breaks).

CTO must be taken within 15 days after which it is earned. CTO not taken within the aforementioned period will be forfeited. However, in cases where CTO cannot be taken within this period due to urgent work requirements, special approval is required from the immediate supervisor of the concerned staff. Such special cases must be decided upon within the same 15-day period.

Sources: http://pinoyworkers.weebly.com/leaves.html

GUIDELINES AND INSTRUCTIONS FOR GOVERNMENT MANDATORY BENEFITS

SOCIAL SECURITY SYSTEM

Loan Application

Requirements:

At least 36 monthly contributions

Actual SSS digitized ID (to be returned to the applicant)

                       

Sickness Notification

Requirements:

No company sick leave credits left

At least 4 days of sickness

Accomplish the form (part I to be accomplished by the sick employee; part II to be accomplished by     the employee’s physician; part III to be accomplished by the HR staff)

Actual SSS digitized ID

* wait for the approval of the SSS. The sickness notification form will be mailed to the office. If approved, fill up the sickness reimbursement form, if not approved because of insufficient documents return the form to the employee and ask to complete the documents:

Sickness Reimbursement

Requirements:

Approved Sickness Notification Form

Sections 1-10 to be filled up by the HR staff; section 11-13 to be filled up by the accounting staff

Have employee sign the form

Actual SSS digitized ID     

* attach the approved sickness notification form to the sickness reimbursement form

Maternity Notification

Requirements:

Employee should notify HRD of pregnancy immediately upon discovery

Actual SSS digitized ID

(Male employees should notify HR office of wife’s pregnancy and due date by accomplishing advanced leave application ahead of time. Only male employees who are legally married are qualified for paternity leave of seven days)

Maternity Reimbursement

Requirements:

Maternity Notification form received by the SSS

Attach to the reimbursement form the certified true copy of the child’s birth certificate and operation             record if caesarian)

Actual SSS digitized ID

* attach the maternity notification form to the maternity reimbursement form.

SSS E-4 Member’s Data Amendment Form

To be filled up by the employee if there are amendments to his / her records (e.i. single to married;             additional dependent/child).

Attach certified true copy and photocopy of birth certificate / marriage contract.

SSS E-6 Application for Social Security ID

To be filled up by the employee. Employee must personally visit the SSS office to process his application for ID.

ALL DOCUMENTS TO BE PROCESSED TO SSS NEED TO BE SUBMITTED WITH THE SSS DIGITIZED ID. IF THE EMPLOYEE DOES NOT HAVE SSS DIGITIZED ID, HE SHOULD APPLY FOR IT. IF HE NEEDS TO PROCESS DOCUMENTS RIGHT AWAY HE SHOULD PRESENT THE APPLICATION FORM ID STUB WITH 2 VALID IDs IF HE HAS NOT RECEIVED HIS DIGITIZED ID YET.

ALL SSS DOCUMENTS SHOULD BE SUBMITTED IN 2 COPIES (ORIGINAL COPY TO THE SSS AND THE PHOTOCOPY TO THE EMPLOYER)

PAG-Ibig / Home Development Mutual Fund

Multi-Purpose Loan Application

Requirements:

At least 24 monthly contributions

Employee’s community tax certificate number

Thumbmark / thumbprint of employee

Records Transfer

To be filled up by the employee to transfer his records under new employer’s name

ESAV Request Slip

To be filled up by the employee if he wants to request for a print out of his contribution records, etc.

Member’s Data Form (MDF)

To be filled up by the employee to transfer / register his records under new employer’s name

Bureau of Internal Revenue (BIR)

1902 Form

To be filled up by the employee who has no TIN number yet.

Attach photocopy of birth certificate, marriage contract (if any) and children’s birth certificate (if any)   to each form

To be accomplished in triplicate. (1 copy for bir, 1 copy for 201 file, 1 copy for the employee)

2305 Form

To be filled up by the employee for amendments/update (single to married; additional             dependents/child)

Must attach photocopy of birth certificate/marriage contract to each form

To be accomplished in triplicate. (1 copy for bir, 1 copy for 201 file, 1 copy for the employee)

Employee must give HR department a copy of this form which has “received” stamp by BIR

*employee may only process 2305 if his BIR record has Revenue District Office (RDO) no. 047. If his record is not under RDO 047, he should personally process his 2305 to the branch where his record is located. Call BIR hotline 981-8888 to know what’s your RDO number.

1905 Form

To be filled up by the employee if he wants to transfer his record under new employer’s name.

Employee must personally submit this form to BIR office where his record is located.

PHILHEALTH (Philippine Health Insurance Corp.)

Claim Form 1

To be filled up by the employee to claim hospitalization discount

M1a Form

To be filled up by the employee to register his name under new employer’s name

To be accomplished in triplicate.

Attach photocopies of birth certificate/s of dependents and marriage contract if married.

M2 Member Data Amendment Form

To be filled up by the employee for amendments/change in status, additional dependent

To be accomplished in triplicate.

Attach photocopies of birth certificate/s of dependents and marriage contract if married.

BIR WAIVER FORM

SWORN DECLARATION ON WAIVER OR RIGHT TO CLAIM EXEMPTION OF DEPENDENT CHILDREN BY THE HUSBAND

            In accordance with the provisions of Section 29 (1) (2) (A) of the National Internal Revenue Code, as amended.  I, __________________________________, hereby voluntary depose and say:

1.      That my wife and I are both income earners;

2.      That we file a joint income tax returns on our taxable income;

3.      That I hereby waive my right to claim the additional exemption for all our qualified ______ dependent children in favor of my wife _________________________________ who is presently employed with ______________________________________________.

4.      That this waiver shall be effective for the taxable year ________________ and shall continue for the succeeding year/s unless sooner revoked.

            I hereby declare under penalties of perjury that the foregoing representations are true and correct and that the waiver of right is voluntarily and knowingly made in accordance with the provisions of the National Internal Revenue Code, as amended.

____________________                                            ______________________________

               Date                                                                         Taxpayer – Husband

---------------------------------------------------------------------------------------------------------------------------------

            This is to acknowledge receipt of the above waiver of Mr. ______________

_____________________ in favor of his wife_________________________________

who shall be entitled to claim the additional exemption of all their qualified dependent children effective _________________ (Month/Taxable Year).

                                                                                        ______________________________

                                                                                               Employer of Husband

Note: If husband is engaged in business disregard the acknowledgement receipt portion of this form.