Philippine Bar review · Question

Practice question: Grant of Bonuses and Other Benefits

Multiple Choice Medium Jurisprudence

Practice question

A genuinely discretionary, nonstatutory special payment was expressly tied to a proved profit threshold. The threshold was not met, and no contrary binding agreement or unconditional practice exists. Which is best?
  1. Every discretionary payment is automatically due annually.
  2. The benefit’s label alone overrides the stipulated terms.
  3. The employer may also withhold statutory wages for that reason.
  4. The unmet valid condition cannot simply be ignored in deciding entitlement.
  5. Every conditional bonus is unlawful.

Legal references

  • Eastern Telecommunications Philippines v. Eastern Telecoms Employees Union, G.R. No. 185665, February 8, 2012, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/21642
  • American Wire and Cable Daily Rated Employees Union v. American Wire and Cable Co., G.R. No. 155059, April 29, 2005, main decision: https://lawphil.net/judjuris/juri2005/apr2005/gr_155059_2005.html
  • Arco Metal Products v. Samahan ng mga Manggagawa sa Arco Metal-NAFLU, G.R. No. 170734, May 14, 2008, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/45241

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