What is included in the backpay?

1. What is included in a backpay? Company provides 10days vacation leave conversion. But company will not add the 10days Vacation leave conversion pay in the backpay if employee have Sick leave or vacation leave within the 30days resignation period. Is it rightful?

2. If the employee resigned, does the company have the right to deduct the remaining SSS salary loan from the backpay? Or the resigned employee has option to decide?

Thank you!

1. Backpay includes unpaid salary, pro-rated 13th month, any tax refund, and leave conversion subject to company policy.

You need to clarify the VL conversion policy. Does the company give you 10 days conversion even if you use up all your VL for the year? I assume that if you have no more leaves (or you use them up), then there will be nothing to convert.

2. Yes the company has the right to deduct the SSS salary loan balance.

The SSS website says:

The employer shall deduct the total balance of the loan from any benefit/s due to the employee and shall remit the same in full to SSS, in case the member-borrower is separated voluntarily (e.g., retirement or resignation) or involuntarily (e.g., termination of employment or cessation of operations of the company).

We have 30 days Leaves as benefit. If we used 20days and leave 10days unused, company will pay the 10days unused leaves for conversion. if an employee resigned, we need to render 30days notice before effectivity of resignation. Within the 30days notice an employee is not allowed to have vacation or sick leave or else the remaining unused leaves will not be paid or added to the backpay.

Kung meron kang expected na 10 days na VL conversion, pero nag-absent ka pa sa ibang araw bago ka mag-resign, syempre ibabawas dapat sa 10 days yung mga absent mo.

Example: I have 30days leave benefit for 2016, gagamitin ko yung 20days na leave (approved VL) and tinira ko yung 10days para bayaran for conversion. I render my resignation jan. 1,2016, effective Feb. 1 2016. Accrdg to our accountng, kahit na may 10day na leave akong natira na Hindi magamit or magagamit, Hindi na nila babayaran ang 10days na leave conversion ko, kasi within. Sa 30days na nagrerender ako ng resignation eh naka leave ako, so forfeited na and leave conversion ko, so Hindi I a add sa backpay.

Up

Wat

So the HR of yr company automatically puts u on a 30 day leave when you apply for resignation? if that is the case, u are good as paid since u r paid on leave. The story is different if u still go to the office

Thank you for the response: technique_ex. But it does not answer my question.

We dont have any vl. Is it legal?

Nephi wrote:We dont have any vl. Is it legal?

ART. 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 days with pay.

(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 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.