In Dula v. Datem, Inc.,1G.R. No. 234466, January 10, 2019. the Supreme Court reiterated the principle that the 3-year prescriptive period for a claim of service incentive leave pay commences from the employee’s resignation or separation from employment. The Court ruled:
The Court, however, modifies the decision of the CA insofar as the award of service incentive leave pay to petitioner is concerned. Auto Bus Transport System, Inc. v. Bautista [G.R. No. 156367, May 16, 2005, 458 SCRA 578, 596.] clarified that the three (3)-year prescriptive period under Article [306] of the Labor Code commences from the time when the employer refuses to pay its monetary equivalent after demand of commutation or upon termination of the employee’s services, as the case may be. Thus, the prescriptive period with respect to petitioner’s claim for his entire service incentive leave pay commenced only from the time of his resignation or separation from employment in October 2010. Since petitioner filed his complaint in April 2013, his claim for service incentive leave pay has not yet prescribed and he may be awarded service incentive leave pay for his entire years of service with the company.
Further Reading:
- Dula v. Datem, Inc., G.R. No. 234466, January 10, 2019.
