Benefits

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BY AYIN DREAM D. APLASCA
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Tuesday, October 10, 2017
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THE HOLIDAYS are fast approaching. We all know that employees look forward to gifts from their generous employers. These presents are inclusive of gratuitous benefits for incomparable services rendered.

In labor laws, it is a practice that employers provide benefits more than those mandated by law. Employers grant 14th month pays, emergency allowances and performance bonuses.

All of these will remain valid because these are favorable to the employees. Also, all of these have ripen to a company practice which cannot be easily withdrawn or reduced without violating the prohibition on non-diminution of benefits. Once these benefits attain the status of company practice, employees can demand these benefits as a matter of right.

In the case of Vergara vs Coca-Cola Bottlers Philippines (GR 176985, April 1, 2013), the  Supreme Court ruled that “to constitute a company practice, it must be shown that the giving of benefits by employers to employees: (1) has been done for a considerable long period of time; (2) has been consistently and intentionally done; and (3) has not been a product of erroneous interpretation or construction of a doubtful or difficult question of law.”

This is the reason why employers should take big consideration in adding, altering and changing existing company policies and benefits. They should bear in mind whether the said move will lead to reduction or diminution of benefits already enjoyed by the employees.

What is the principle of non-diminution of benefits? This principle is founded on the 1987 Philippine Constitution which mandates to “protect the rights of workers and promote their welfare” and “to afford labor full protection.” This means that once these benefits are given and ripen to a company practice, it cannot be unilaterally withdrawn.

I suggest that both employees and employers enter into a win-win arrangement. Employees should be given the benefits they are entitled to. In this way, they will be happy to render genuine and diligent service to their employers.

No worries when it comes to employers because the Constitution provides full protection to labor which will help not to oppress them.

(Atty. Ayin Dream D. Aplasca practices her profession in Iloilo City. She may be reached thru ayindream.aplasca@gmail.com/PN)
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