Employers signal resistance to bills expanding holiday leave

THE Employers Confederation of the Philippines (ECoP) said proposed changes to labor law that would increase leave entitlements for workers will be a drag on productivity and increase the cost of business especially in manufacturing and services.

In a position paper, ECoP said “excessive non-working days” will likewise affect the cost of doing businesses, pressuring micro, small and medium enterprises that make up much of the economy.

“There is no law that requires the grant of vacation or sick leave to employees in the private sector. The grant depends upon employer policy as an exercise of management prerogative or the result of collective bargaining,” it said.

“The exercise of management prerogative arises from the constitutional right of enterprises to reasonable returns on investment and to expansion and growth.”

There are currently 15 national non-working days, 12 of which are paid regular holidays with the remaining three classified as special days. In addition to the nationwide regular holidays and special holidays, special laws also provide for paid leave.

On Wednesday, the Senate Committee on Labor, Employment and Human Resources Development chaired by Emmanuel Joel J. Villanueva will convene to discuss 10 bills, all of which are related to extending worker leave for various purposes.

ECoP also raised concerns that three of the bills — which seeks to grant special leave of absence of 15 days to legitimate spouses of overseas workers and parental care leave with full pay and benefits — call for criminal sanctions for employers who refuse to comply.

The group said that proposals violate the employers’ right of legitimate exercise of management prerogative and may inhibit them from earning reasonable returns, dampening expansion and growth.

“While the bills are well-intentioned, they raise not only the issue of encroachment on management prerogative but also their necessity as well as their impact on labor productivity and cost of production,” ECoP said. —

IN A POSITION PAPER, The Employers Confederation of the Philippines said “excessive non-working days” will likewise affect the cost of doing businesses, pressuring micro, small and medium enterprises that make up much of the economy.