Quote Originally Posted by wowiesy View Post
yes... for those who already have VL / SL benefits... and then you compel them to go forced leave without pay.. definitely.. diminution of benefits talaga...

pero yung sa walang VL/SL benefits, and then you compel them to go forced leave without pay... ibang topic na po di ba?
Depende rin.

If you compel employees to go on forced leave even if they still have VL/SL credits, and you don't commute to cash the leave credits or allow the employees to use them later on, they they may file a claim for it.

But if you will commute them to cash, or allow employees to avail of them later on, then you can do it.

Many companies in the manufacturing sector, especially those who shut down towards the last part of the year, put the employees on leave without pay. There are two reasons for this. First is the ease of administration. Second is it does not set any precedents that will run counter to the provisions of the policies on the VL and most especially, the SL. Then at the start of the following year, lahat ng may mga leave credits pa, commuted to cash na.

Technically, the term "diminution of benefits" does not really apply here. The correct term is "withholding of benefits." Hindi naman kasi binawasan, eh. Andoon pa rin yun as a contractual obligation. Hindi lang pinagamit sa employee.