Dallas office of a a REPUBLIC OF THE PHILIPPINES REAL ME PRESENE? First Regular Session JUL 21 A10 :31 SENATE RECLLED 6' S. No. _ Introduced by Senator FRANCIS N. PANGILINAN 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 EXPLANATORY NOTE Classified by the World Health Organization as an occupational phenomenon, burn-out "is a syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed." This phenomenon refers specifically to an occupational context characterized by feelings of energy depletion or exhaustion, increased mental distance from one's job, or feelings of negativism or cynicism related to one's job and reduced professional efficacy. The Labor Code, as amended, currently grants five (5) days of service incentive leave per year to every employee who has rendered at least one (1) year of service. Employees may use these service incentive leaves to prevent burnout in the workplace. Taking more leaves may even boost one's productivity levels. In a research study made by the U.S. Travel Association, which was cited by the Harvard Business Review, employees who took fewer than ten (10) vacation leaves per year had a 34.6% likelihood of receiving a raise or bonus in a three-year
period of time while those who took ten (10) or more vacation leaves per year had almost double the chance of receiving a raise or bonus which is at 65.4%.1 In line with the health and productivity benefits of giving leaves to employees, this bill seeks to increase the number of mandatory service incentive leaves from five (5) per year to ten (10) per year. In view of the foregoing, the passage of this bill is earnestly sought. FRANCISW. PANGILINAN Senator 1 Harvard Business Review, The Data-Driven Case for Vacation, https://hbr.org/2016/07/the-data- driven-case-for-vacation
Affier of lut TWENTIETH CONGRESS OF THE ) REPUBLIC OF THE PHILIPPINES First Regular Session JUL 21 A10 :31 SENATE RECERED 0 S. No. - Introduced by Senator FRANCIS N. PANGILINAN 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 Be it enacted by the Senate and the House of Representatives of the Republic of the Philippines in Congress assembled:
SECTION 1. Article 95 of Presidential Decree No. 442, as amended, is hereby
amended to read as follows: "Article 95. 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] TEN days with pay, PROVIDED THAT, THE EMPLOYEE SHALL BE ENTITLED TO CONVERT ONLY FIVE DAYS OF LEAVE TO ITS MONEY EQUIVALENT IF NOT USED OR EXHAUSTED AT THE END OF THE YEAR. (b) This provision shall not apply to those who are already enjoying the benefit herein provided, those enjoying vacation leave with pay of at least [five] TEN 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 and Employment after considering the viability or financial condition of such establishment. (c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any court or administrative action."
Sec. 2. Implementing Rules and Regulations. - Within ninety (90) days from the
2 approval of this Act, the Department of Labor and Employment, in consultation with 3 relevant stakeholders, shall promulgate the implementing rules and regulations of this 4 ACt.
Sec. 3. Repealing Clause. - All statutory laws, orders, issuances, rules and
6 regulations, and/or parts thereof which are inconsistent with the provisions of this Act 7 are hereby repealed or modified accordingly.
Sec. 4. Separability Clause. - If any portion or provision of this Act is declared
9 invalid or unconstitutional, the portions or provisions which are not affected shall 10 remain valid and effective.
Sec. 5. Effectivity. - This Act shall take effect after fifteen (15) days following
its publication in the Official Gazette or in two (2) newspapers of general circulation. Approved,