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Appendix V
THE PHILIPPINES
Labour Code (Third Edition, 1977)
Article 95 Right to service incentive leave
(a)
Every employee who has rendered at least one (1) year of service shall be entitled to a yearly service incentive leave of five (5) days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit here in provided, those enjoying vacation leave with pay of at least five (5) days and those employed in establishments regularly employing less than ten (10) employees or in establishments exempted from granting this benefit by the Secretary of Labour after considering the viability or financial condition of such establishment.
Rules and Regulations Implementing the Labour Code (June 1976 Edition)
Book III, Rule V: Service Incentive Le ave
Section 1 Coverage
This rule shall apply to all employees except:
(a) Those of the government and any of its political
subdivisions, including government-owned and controlled corporations;
(b) Domestic helpers and persons in the personal
service of another;
(c) Managerial employees;
(d) Field personnel and other employees whose performance
is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work inrespective of the time consumed in the performance thereof;
(e) Those who are already enjoying the benefit herein
provided;
(f) Those enjoying vacation leave with pay of at least
five days; and
(g) Those employed in establishments regularly employing
less than ten employees.
Section 5 Treatment of benefit
The service incentive leave shall be commitable to its money equivalent if not used or exhausted at the end of the year.
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