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 take 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 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.)
THELMA P. GAMINDE
Commissioner
DID NOT PARTICIPATE
JOSE F. ERESTAIN, JR.
Commissioner


Attested by:


(SGD.)
ARIEL G. RONQUILLO
Director III

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