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[IGNACIO E. RECIO v. AUDITOR GENERAL](https://www.lawyerly.ph/juris/view/c2e4e?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
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105 Phil. 508

[ G.R. No. L-11557, April 17, 1959 ]

IGNACIO E. RECIO, PETITIONER, VS. THE AUDITOR GENERAL, RESPONDENT.

D E C I S I O N

BENGZON, C.J.:

Appeal  from the ruling of the Auditor-General refusing to credit  Ignacio  E.  Recio, as employee of the Fiber Inspection  Service,  with the vacation leave  he had earned while on the staff of the University of the Philippines.

It appears that Recio  served in  such University from August 1932 to  February 28,  1946  (excluding the  war years); that on the last mentioned date he resigned, without actually enjoying five (5) months of accrued vacation leave; that  the next day, March 1, 1946,  he entered  the service of the United States Veterans Administration, Manila Office, from which he was laid  off on  April 25, 1950; that in January  1953,  he was  appointed to the  Import Control Commission; that thereafter, the Fiber Inspection Service took him  in; and  that later, while working in this Service, he  requested  in April 1957, from  the Civil Service  Commissioner the transfer  to his credit in the Fiber Inspection of the 5-month vacation  leave he had accumulated  in the University.

At first, the  Civil Service found against the transfer, holding that upon resignation from the University of the Philippines, Recio had forfeited all his vacation leave, pursuant to sec.  286 of the Revised Administrative  Code as amended.[1]   Afterwards, upon being informed that Recio had  resigned ior the purpose of joining the Veterans Administration, the Civil Service revised its stand, reflecting that as  service in  the  Veterans Administration at that time (February 1946) could be  considered  as  service in the  Philippine  Government Recio  had not  yet forfeited his  vacation leave,  because when  he resigned from the University of the Philippines, he did not leave the service of the Philippine Government, and  sec. 286 did not apply.

The University of  the  Philippines  objected, citing its rules in force in March 1946, to the effect that "upon separation from the University of any officer or employee, any accumulated vacation and  sick leave to his credit shall be forfeited."

And the Auditor-General decided that the vacation and sick leave earned by Recio while serving in the U. P.  were deemed forfeited  upon his separation therefrom  on  February 28, 1946.  He quoted sec. 286, Administrative  Code as amended, before  its amendment by Republic Act 611 in May, 1951.

Both  the Civil Service and  the  Auditor-General  consider sec.  286 as  amended (before  Republic Act 611) to be the governing  statute.  Their views  differ,  however: whereas the former holds that  Recio did not  leave the service on February 28, 1946, because the next day March 1, 1946, he joined another office of the Philippine Government, the Auditor-General  says  that  Recio  was  on  February 28,   1946, "separated" from the  service within the meaning of section  286.

It may be  conceded, for the moment, that  Recio was not separated from the service on February 28, 1946, because  the next  day he went to  work  in  the U.S.  Veterans Administration  (U.S.), regarded during the Commonwealth as a local office.   But it cannot  be denied fchat on July 4, 1946, (Independence Day) service in the Veterans Administration ceased to be service to the Philippine Government;  neither  can  it be denied that on April 25,  1950, he was  dropped from the payroll of  the  said  U.S.   Veterans Administration.

So, it must be  held  that  Recio quit public employment either on July 4,1946,[2] or on April 25, 1950.   On either of these two dates,  his separation from  the service occurred,  and his vacation leave was deemed forfeited under the law (section 286)  at that time.  It must be remembered that after  April 25,  1950, he  did  no Government work for two years.   The  Civil Service  refused to  consider Recio's separation on  July 4, 1946,  as  separation "from the service" because such separation  "was through no fault of his own."  Herein lies the error.  Under section 286  as  it stood then, whenever  an employee leaves or is dropped from the service  of the Philippine Government, there is separation  from  the service and  forfeiture irrespective of the cause.  The  Solicitor-General himself who sides with the Civil Service says this:
"Separation from the  service may  be, and is  generally, due to resignation of  the public official  or  employee concerned (Cf. Sections 21,  26 and 27,  Republic  Act No. 180); or to  abolition of the office.  (Cf. Zandueta vs. die la Costa,  66 Phil. 615; Erana vs. Vergel vs. Baluyot,  G. R. No. L-3318, prom. May 5, 1952; Manalang vs. Quitoriano, G. R. No.  L-6898,  prom.  April  30,  1954);  or to  retirement (Cf. Nacionalista Party vs. Bautista, G. R. No. L-3452, prom. December 7, 1949)."
The above separations involve no fault of the employee; and yet they cause forfeiture of the vacation leave, as said official impliedly admits.

In  this  connection, we observe  that the office of the Solicitor-General  agrees  with the  Civil Service  for the reason that (a) on February 28, 1946, Recio did not leave the service; and  (b) he never in fact left the service. The second proposition is evidently untenable  for  as  we say, Recio  must be  deemed to have left the  Philippine Government's  service either  on July 4, 1946  (upon  independence, service in the U.S. Veterans Administration could no  longer  be considered service in the Philippine  Government) or on April 1950 when he returned to private life, having" been dropped from the  Veterans  Administration. True,  two years later he joined the Government  anew; but the interval broke the continuity of his service even as  it operated to forfeit  his leave.

Officers  who have been long enough in the Government know the  reasons3 behind this forfeiture,  which has been applied up to  1951.  Events apparently  showed its  inequity in some cases; so  Republic Act 611 decreed that it will not be forfeited  if  the  employee voluntarily resigns or  is separated from the service through  no fault of  his own.   This liberal provision we cannot apply to  Recio, because his separation occurred before Republic  Act 611, which has no retroactive operation.

This makes it unnecessary to discuss whether the rules of  the University, and not section 286 as amended, control the issue.  We have not gone into the matter, but it might be  that leaves of absence of University employees depend exclusively upon its rules adopted pursuant to its charter. Needless to say, if the University rule hereinabove  quoted  applies, Recio has no right, because he lost his leave upon leaving  the  University.

Wherefore, the appealed decision of the Auditor-General is affirmed.   No  costs.

Paras, C. J., Padilla, Montemayor, Reyes,  A., Bautista Angelo, Labrador,  Concepcion, and Endencia,  JJ., concur.



[1] Section 286 as amended: "Sec. 286. When vacation leave and sick leave may be  taken. Vacation leave and sick leave shall be cummulative and any part thereof which may not be taken within the calendar year in which earned may be carried over to the  succeeding years, but upon separation  from the service of any officer or employee, any accumulated vacation or sick leave to his credit shall be forfeited. * * *."

[2] The Civil Service believes he was thus separated.

[3] One was to force the employee actually to take his leave, to improve his health during his employment and perform better work. Not to reserve it as a sort of savings to be enjoyed after he leaves Government service.   In fact, it had to be taken every year; otherwise, it was lost.  See section 286 Administrative Code.
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