G.R. No. 255602 - JOY M. VILLARICO, VS. D.M. CONSUNJI, INC. AND MADELINE B. GACUTAN.

Ruling

Accordingly, if the employee wishes to accumulate his leave credits and opts for its commutation upon his resignation or separation from employment, his cause of action to claim the whole amount of his accumulated service incentive leave shall arise when the employer fails to pay such amount at the time of his resignation or separation from employment. [51] In the present case, Villarico did not use his service incentive leaves, or demanded its commutation until his employment was terminated by DMCI et al. It was also not shown that DMCI et al. paid him his accumulated service incentive leave pay at the time of his dismissal. Thus, Villarico's cause of action to claim payment of his accrued service incentive leave pay arose only when DMCI et al. dismissed him from service and failed to pay his accumulated leave credits. Since Villarico filed his Complaint for illegal dismissal on August 30, 2016, or barely two months since he was dismissed in June 2016, his claim for service incentive leave pay was filed within the three-year prescriptive period under Article 306 of the Labor Code. Consequently, he is entitled to payment of service incentive leave pay during the entire period of his employment, or from 2007 to 2016. ACCORDINGLY , the Motion for Partial Reconsideration filed by Joy M. Villarico is DENIED with FINALITY . Meanwhile, the Motion for Partial Reconsideration filed by D.M. Consunji, Inc. and Madeline B. Gacutan is PARTLY GRANTED . This Court's August 4, 2021 Decision is AFFIRMED with MODIFICATION . D.M. Consunji, Inc. is ORDERED to PAY Joy M. Villarico nominal damages in the amount of PHP 30,000.00, 13 th month pay for the years 2014 to 2016, service incentive leave pay for the years 2007 to 2016, and attorney's fees equivalent to 10% of the total amount awarded. The total amount awarded is subject to a legal interest of 6% per annum from the finality of this Resolution until its full satisfaction. Let entry of judgment be issued immediately. SO ORDERED.