Dear Attorney,
I have been working for a company that has not given my pro-rated 13th month pay, unused Service Incentive Leave (SIL), and cash benefits for over two months now. Is there a penalty imposed on the company for this delay? What legal action can I take to address this?
Sincerely,
Concerned Employee
Insights
In the Philippines, the non-payment or delay in providing employees' benefits, such as the 13th month pay and unused Service Incentive Leave (SIL), can have legal consequences under labor law.
13th Month Pay
Under Presidential Decree No. 851, all employers are required to pay their employees a 13th month pay, which should be given no later than December 24 of every year. The failure to pay the 13th month pay on time can result in penalties for the employer, which may include fines, or legal actions initiated by employees.
If the payment is pro-rated (for employees who have not completed a year), the company is still obliged to disburse it within the given timeframe. A delay of over two months is considered a violation and can be subject to administrative action from the Department of Labor and Employment (DOLE). Employees may file a complaint through DOLE to claim their rightful compensation.
Unused Service Incentive Leave (SIL)
Unused SIL, as mandated under Article 95 of the Labor Code of the Philippines, should be either converted into its cash equivalent or provided as leave entitlement. If the employer fails to pay the cash equivalent of unused SIL, employees can file a complaint for non-compliance with labor laws. The employer may face penalties similar to those imposed for delays in 13th month pay.
Penalties and Remedies
When employers delay or withhold mandatory benefits, employees have the right to seek redress through DOLE. The department has mechanisms in place for addressing such complaints, and failure by the employer to settle these obligations can result in fines, administrative penalties, or even criminal charges for repeated offenses. It's essential for employees to act promptly to protect their rights and ensure they receive the benefits they are entitled to.
In summary, the law in the Philippines requires timely payment of the 13th month pay and unused SIL. Any delay beyond the legally mandated period can lead to serious penalties for employers. Employees should consider filing a formal complaint with DOLE to enforce their rights.