Practice question
A binding policy converts unused vacation leave to cash on separation, and the balance and entitlement are undisputed. HR says only statutory SIL can ever appear in final pay. The employee says every unused leave category must be paid even without any basis. Which is best?
- Only SIL can ever be converted under the advisory.
- Include the established policy-based conversion, while separately identifying the legal or agreed basis for other leave categories.
- Every leave category automatically converts without any rule.
- A binding leave-conversion policy is always irrelevant.
- The employee’s preference creates every claimed benefit.
Legal references
- DOLE Labor Advisory 06-2020, January 31, 2020, Sections I-IV, archived signed original DOLE PDF: https://web.archive.org/web/20220809160012id_/https://www.dole.gov.ph/wp-content/uploads/2020/02/Labor-Advisory-No.-06-20-Guidelines-on-the-Payment-of-Final-Pay-and-Issuance-of-Certificate-of-Emplo.pdf
- DOLE January 2026 official confirmation of final-pay and COE rules: https://dole.gov.ph/news/final-pay-coe-must-be-released-on-time-dole/
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