G.R. No. 222980 - LOURDES C. RODRIGUEZ, VS. PARK N RIDE INC./VICEST (PHILS) INC./GRAND LEISURE CORP./SPS. VICENTE & ESTELITA B. JAVIER.D E C I S I O N - Supreme Court E-Library

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. Applying Article 291 of the Labor Code in light of this peculiarity of the service incentive leave, we can conclude that the three (3)-year prescriptive period commences , not at the end of the year when the employee becomes entitled to the commutation of his service incentive leave, but 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. The above construal of Art. 291, vis-a-vis the rules on service incentive leave, is in keeping with the rudimentary principle that in the implementation and interpretation of the provisions of the Labor Code and its implementing regulations, the workingman's welfare should be the primordial and paramount consideration. The policy is to extend the applicability of the decree to a greater number of employees who can avail of the benefits under the law, which is in consonance with the avowed policy of the State to give maximum aid and protection to labor. [83] (Emphasis supplied). Thus, the prescriptive period with respect to petitioner's claim for her entire service incentive leave pay commenced only from the time of her resignation or separation from employment. Since petitioner had filed her complaint on October 7, 2009, or a few days after her resignation in September 2009, her claim for service incentive leave pay has not prescribed. Accordingly, petitioner must be awarded service incentive leave pay for her entire 25 years of servicefrom 1984 to 2009and not only three (3) years' worth (2006 to 2009) as determined by the Court of Appeals. Finally, we modify the portion of the fallo pertaining to the award of the 13 th month pay to conform to the body of the Court of Appeals' Decision. WHEREFORE , the Petition is PARTIALLY GRANTED . The Court of Appeals Decision dated December 15, 2015 in CA-G.R. SP No. 125440 is AFFIRMED with MODIFICATION as to the amounts awarded. Respondents are ORDERED to pay Lourdes C. Rodriguez the following: 1) Service incentive leave pay for the years 1984 to 2009; 2) 13 th month pay differential for the years 2006 to 2008; 3) Proportionate 13 th month pay for the year 2009; and 4) Attorney's fees equivalent to ten percent (10%) of the wages awarded. All amounts awarded shall be subject to interest of six percent (6%) per annum, from the date of finality of this Decision, until fully paid. SO ORDERED.