Taxation Law Philippine Bar Examination Questions and Suggested Answers

G.R. No.
95832 August 10, 1992

MAYNARD R. PERALTA, petitioner,
vs.
CIVIL SERVICE COMMISSION, respondent.
Petitioner was appointed Trade-Specialist II in the Department of Trade and Industry (DTI). His
appointment was classified as "Reinstatement/Permanent". He received his initial salary,
covering the period from 25 September to 31 October 1989. Since he had no accumulated leave
credits, DTI deducted from his salary the amount corresponding to his absences during the
covered period, namely, 29 September 1989 and 20 October 1989, inclusive of Saturdays and
Sundays.
Petitioner sent a memorandum inquiring as to the law on salary deductions, if the employee has
no leave credits. Petitioner in his said letter to the CSC Chairman argued that a reading of the
General Leave Law as also contained in the Civil Service Rules and Regulation fails to disclose a
specific provision which supports the CSC rule at issue. Petitioner contented that he cannot be
deprived of his pay or salary corresponding to the intervening Saturdays, Sundays or Holidays,
and that the withholding (or deduction) of the same is tantamount to a deprivation of property
without due process of law.
Commission upheld the action of the DTI, saying that: “… It is the view of this Office that an
employee who has no more leave credit in his favor is not entitled to the payment of salary on
Saturdays, Sundays or holidays unless such non-working days occur within the period of service
actually rendered…”
… To rule otherwise would allow an employee who is on leave of absent (sic) without pay for a
long period of time to be entitled to payment of his salary corresponding to Saturdays, Sundays
or holidays. It also discourages the employees who have exhausted their leave credits from
absenting themselves on a Friday or Monday in order to have a prolonged weekend, resulting in
the prejudice of the government and the public in general. 3
Petitioner's motion for reconsideration having been denied, petitioner filed the present petition.
What is primarily questioned by the petitioner is the validity of the respondent Commission's
policy mandating salary deductions corresponding to the intervening Saturdays, Sundays or
Holidays where an employee without leave credits was absent on the immediately preceding
working day.
During the pendency of this petition, the respondent Commission promulgated Resolution No.
91-540 dated 23 April 1991 amending the questioned policy, considering that employees paid on
a monthly basis are not required to work on Saturdays, Sunday or Holidays.
It would seem at first blush that this petition has become moot and academic, but the issue of
whether or not the policy that had been adopted and in force since 1965 is valid or not, remains
unresolved.
When an administrative or executive agency renders an opinion or issues a statement of policy, it
merely interprets a pre-existing law; and the administrative interpretation of the law is at best
advisory, for it is the courts that finally determine what the law means. 8 It has also been held
that interpretative regulations need not be published. 9
In promulgating the questioned policy, the Civil Service Commission interpreted the provisions
of Republic Act No. 2625 amending the Revised Administrative Code…
The Civil Service Commission in its here questioned Resolution No. 90-797 construed R.A.
2625 as referring only to government employees who have earned leave credits against which
their absences may be charged with pay, as its letters speak only of leaves of absence with full
pay. The respondent Commission ruled that a reading of R.A. 2625 does not show that a
government employee who is on leave of absence without pay on a day before or immediately
preceding a Saturday, Sunday or legal holiday is entitled to payment of his salary for said days.
The construction by the respondent Commission of R.A. 2625 is not in accordance with the
legislative intent. R.A. 2625 specifically provides that government employees are entitled to
fifteen (15) days vacation leave of absence with full pay and fifteen (15) days sick leave with full
pay, exclusive of Saturdays, Sundays and Holidays in both cases. Thus, the law speaks of the
granting of a right and the law does not provide for a distinction between those who have
accumulated leave credits and those who have exhausted their leave credits in order to enjoy
such right. Ubi lex non distinguit nec nos distinguere debemus.
The fact remains that government employees, whether or not they have accumulated leave
credits, are not required by law to work on Saturdays, Sundays and Holidays and thus they
cannot be declared absent on such non-working days. They cannot be or are not considered
absent on non-working days; they cannot and should not be deprived of their salary
corresponding to said non-working days just because they were absent without pay on the day
immediately prior to, or after said non-working days. A different rule would constitute a
deprivation of property without due process.
As the questioned CSC policy is here declared invalid, we are next confronted with the question
of what effect such invalidity will have. Will all government employees on a monthly salary
basis, deprived of their salaries corresponding to Saturdays, Sundays or legal holidays (as herein
petitioner was so deprived) since 12 February 1965, be entitled to recover the amounts
corresponding to such non-working days?
To allow all the affected government employees, similarly situated as petitioner herein, to claim
their deducted salaries resulting from the past enforcement of the herein invalidated CSC policy,
would cause quite a heavy financial burden on the national and local governments considering
the length of time that such policy has been effective. Also, administrative and practical
considerations must be taken into account if this ruling will have a strict retrospective
application. The Court, in this connection, calls upon the respondent Commission and the
Congress of the Philippines, if necessary, to handle this problem with justice and equity to all
affected government employees.
CSC Resolutions No. 90-497 and 90-797 are declared NULL and VOID. The respondent
Commission is directed to take the appropriate action so that petitioner shall be paid the amounts
previously but unlawfully deducted from his monthly salary as above indicated. –xxx-

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G.R. No.

95832 August 10, 1992

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