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?
- Every discretionary payment is automatically due annually.
- The benefit’s label alone overrides the stipulated terms.
- The employer may also withhold statutory wages for that reason.
- The unmet valid condition cannot simply be ignored in deciding entitlement.
- 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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