MASLAN, Belen T.

Re: Query; Monetization of Leave Credits

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RESOLUTION NO. 000034

Belen T. Maslan, Administrative Officer IIl, Cordillera Executive Board, Cordillera Administrative Region, Baguio City,
seeks clarification regarding Section 23 of the Omnibus Rules on Leave (CSC Resolution No. 98-3142 dated December
14,1998) which provides as follows:

"Section 23. Monetization ot 50% of vacation/ sick leave credits - Monetization of fifty percent (50%) of
all the accumulated leave credits may be allowed for valid and justifiable reasons subject to the discretion of the
agency head and the availability of funds."

Particularly, Maslan asks whether the aforequoted provision allows an employee to monetize his sick leave credits if he
has no available vacation leave credits.

In CSC Resolution No. 992064 (Re: Cojuangco, Eleuterio S.) dated September 16, 1999, the Commission
resolved the same issue as follows:

"In this regard, it is worthwhile to mention that an employee may choose when to avail vacation leave
privileges, the only condition is that he is required to file in advance his application for leave. The employee may
even choose not to tak e a vacation and preserve his vacation leave credit.

"It is otherwise, with respect to sick leaves. In this case, the employee is forced by the circumstance not
to work even if he wants to. He cannot predict nor choose when he or a member of his immediate family will
become ill.

"Aptly, it is in the interest of the public servants, that sick leave credit should be used for the purpose it
is intended."

Pointedly, Section 23 of the Omnibus Rules on Leave should be construed in the light of Section 22, thereof, to
wit:

"Section22. Monetization of leave credits - Officials and employees in the career and non-career service
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 whether permanent, temporary, casual, or coterminous, who have accumulated fifteen (15) days of vacation leave
credits shall be allowed to monetize a minimum of ten (10) days: Provided, that at least five (5) days is retained
after monetization and provided further that a maximum of thirty (30) days may be monetized in a given year."

From the foregoing, it clearly shows that as a general rule what is allowed to be monetized are the accumulated
vacation leave credits. Section 23, on the other hand, is an extraordinarv measure to relieve an employee from financial
difficulties that may be allowed only for valid and justifiable reasons subject to the discretion of the agency head and the
availability of funds. Hence, Section 23 should be consrued as an exception to the general rule as provided under Section 22.

Consequently, for purposes of monetization, vacation leave credits must be exhausted first before sick leave credits
may be used. In this regard, since Maslan's vacation leave credits have already been exhausted, the monetization of fifty
percent (50%) of her available one hundred fifty (150) sick leave credits may be allowed in accordance with Section 23 of
Memorandum Circular No. 41, series of 1998.

WHEREFORE, the Commission resolves to rule that sick leave credits may be monetized if an employee has no
available vacation leave credits, in accordance with the general rule under Section 23 of the Omnibus Rules on Leave, that
vacation leave credits must be exhausted first before sick leave credits maybe used.

Quezon City, JAN 0 5 2000

(SGD.)
CORAZON ALMA G. DE LEON
Chairman

(SGD.) DID NOT PARTICIPATE

THELMA P. GAMINDE JOSE F. ERESTAIN, JR.
Commissioner Commissioner

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 Attested by:

(SGD.)
ARIEL G. RONQUILLO
Director III

JJC/FPG/A3/S4/winl/jc a
0-99-0500
/niaslan'r

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