G.R. No. L-11557; April 17, 1959
Ignacio E. Recio, petitioner, vs. The Auditor General, respondent.

FACTS

Ignacio E. Recio served in the University of the Philippines from August 1932 to February 28, 1946 (excluding war years). Upon his resignation on February 28, 1946, he had five (5) months of accrued vacation leave which he did not actually enjoy. 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. He later joined the Import Control Commission in January 1953 and then the Fiber Inspection Service. In April 1957, while with the Fiber Inspection Service, he requested the Civil Service Commissioner to transfer to his credit the 5-month vacation leave he had accumulated at the University of the Philippines. The Civil Service initially denied the request, citing forfeiture under Section 286 of the Revised Administrative Code as amended. It later revised its stand, reasoning that since service in the Veterans Administration in February 1946 could be considered service in the Philippine Government, Recio did not leave government service upon resigning from U.P., so Section 286 did not apply. The University of the Philippines objected, citing its own rule that accumulated leave is forfeited upon separation. The Auditor-General ruled that the leave was forfeited upon Recio’s separation from U.P. on February 28, 1946, under Section 286 as it stood before its amendment by Republic Act 611 in 1951.

ISSUE

Whether Ignacio E. Recio forfeited his accumulated vacation leave from the University of the Philippines upon his separation from government service, pursuant to Section 286 of the Revised Administrative Code as amended before Republic Act 611.

RULING

Yes. The Supreme Court affirmed the decision of the Auditor-General. The Court held that Recio must be deemed to have been separated from the service of the Philippine Government either on July 4, 1946 (when service in the U.S. Veterans Administration ceased to be considered service to the Philippine Government after Independence), or on April 25, 1950 (when he was laid off from the Veterans Administration and returned to private life for two years). Under Section 286 as it stood at that time, whenever an employee leaves or is dropped from the service, any accumulated vacation leave is forfeited, irrespective of the cause. This forfeiture applied even if the separation was through no fault of the employee. The more liberal provision of Republic Act 611, which prevented forfeiture if separation was voluntary or through no fault of the employee, could not be applied retroactively to Recio, as his separation occurred before the law’s enactment. The Court found it unnecessary to decide whether the University of the Philippines’ own rules governed, as the result under Section 286 was the same.