unused sick leave - not convertible to cash??

I am confused with what it states in the Labor Code Art. 95 about service incentive leave...

we are entitled to 10 Sick leaves and 15 vacation leaves... and we are required to consume all VLs which everyone follows, because none of it is convertible to cash after the end of the year. Is that okay or legal?

and unused Sick leaves are not convertible too?

it states in article 95 of labor code that if the service incentive leave with pay is at least 5 days we are exempted on the rule that leaves are convertible to cash on year end... is that why it is okay with how our company does it?

or are they obliged by law to convert at least 5 unused Sick leave/ vacation leave by year end?


Thank you in advance...

what the law requires is the 5 SIL days. beyond that, it's all up to management prerogative.

i'm sorry, i need clarification...

in this particular scenario, they give us 10 SLs and 15 VLs and the company's policy is that none of those is convertible to cash towards year end.


say for example I still have remaining 7 SLs. Is the company obliged by law to convert to cash at least 5 towards year end??

or since I consume more than 5 SILs, the company is not anymore obliged by law to convert any to cash by year end?

..which of this is correct?

IMO, in the absence of a written policy, the company can argue that the first five leaves you use are the refundable ones.

thank you so much...