Practice question
A covered employee accumulated unused SIL without earlier demand or payment and elects commutation at resignation. The employer then fails to pay, and suit follows one month later. Must the award automatically be limited to credits earned in only the final three years?
- Yes, the employer’s silence proves full payment
- Yes, all older credits expire each year regardless of election
- Yes, resignation forfeits every credit
- Yes, money claims cannot include accumulated leave
- No; the relevant accrual and accumulation facts must be applied
Legal references
- Labor Code, Articles 95, 113-115 and 123-124: https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html
- Omnibus Rules Implementing the Labor Code, Book III, Rule V and Rule VIII, Section 14: https://lawphil.net/statutes/presdecs/pd1974/pd_442a_1974.html
- Auto Bus Transport Systems, Inc. v. Bautista, G.R. No. 156367, May 16, 2005, MAIN decision: https://lawphil.net/judjuris/juri2005/may2005/gr_156367_2005.html
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