Republic of the Philippines

Zamboanga City Water District

Pilar Street, Zamboanga City May 12, 2006

LUIS A. WEE
Zamboanga City Water District Pilar Street, Zamboanga City Sir: This has reference to your letter dated May 12, 2006 asking an opinion on: 1. Whether an employee who is on approved leave of absence without pay but did not render any service during the year is entitled to Year-End Benefits (YEB) and cash gift? Whether the declaration/opinion of the Sr. Industrial Relation Management Officer as to who are entitled to receive the benefits prescribed by DBM is final?

2.

Pertinent of which is Section 2.1.2 of Budget Circular No. 2005-06 Rules on the grant of the Year End Benefits and Cash Gifts, states that: 2.0 Coverage of year-end Benefits and Cash Gift 2.1 All government personnel in x x x x x x x GOCCs, whether appointive or elective, under permanent, temporary or casual status and those issued contractual appointments who are under the following instances from January 1 to October 31 of each year: 2.1.A Those who have rendered at least a total or aggregate of Four (4) months of service including leaves of absence with pay; 2.1.B Those who are on approved leave of absence without pay but have rendered at least a total or an aggregate of four (4) months of service provided they are not yet dropped from the rolls; And Section 4.1 4.1.2 Payment of YEB ( Year-End benefits ) One half of the YEB may be paid to government personnel not earlier than May 1 and not later that may 31 o0f a particular year based on the monthly salaries as of April 30, PROVIDED that they have rendered at least 4 months of service including leave of absence with pay from January 1 to April 30 of the same year, regardless of whether or not they will still be in the service as of October 31 of the same year;

BASED ON THE FOREGOING, regardless how noble and desirable the intention will be, the clear provision of the law shall be applied. An employee who is on approved leave of absence without pay but did not render any service during the year is not entitled to YEB on the obvious reason that rendition of governmental service for a period of four months in same year (from January 1 to April 30 of the same year; Section 4.1 Payment of YEB) is a condition sine qua non to the release of the benefit. Absence of which is a ground for disqualification. An opinion of the Sr. Industrial Relation Management Officer as to who are entitled to receive the benefits prescribed by DBM is never final but it can be given great weight and consideration under the doctrine of exhaustion of administrative remedies by reason of their expertise on the controversy and separation of powers( Administrative Law by Cruz, 1998 Edition). However, in a line of cases, the Supreme Court ruled that when the question raised is purely legal, courts have the final say since it is the province of the courts to interpret laws.( Municiplity of La Trinidad Vs. CFI of Baguio , 85 Phil 201 ). In other words the administrative interpretation is temporary and tentative in nature. Consequently, the Department Manager of the Legal Management and Services Department is duty bound and directly responsible in preparing opinion on legal issues of the provision of law, ZCWD rules, regulations and policies ( Job Description IV. Duties and Responsibilities No. 3 )

Hope we guided you in this wise.

Yours Truly, Atty. Lovell C. Abad Department Manager C Legal and Management Services Department