Philippine Bar review · Question

Practice question: Grant of Bonuses and Other Benefits

Multiple Choice Hard Jurisprudence

Practice question

For several years, a private employer has deliberately and consistently paid a lawful benefit, and the evidence establishes that it ripened into company practice. The employer now cancels it solely because a new manager calls every non-basic benefit a revocable gift. No valid contrary basis is proved. Which conclusion is correct?
  1. A new manager's label necessarily cancels the established right.
  2. The label alone does not displace the proved protected practice or justify unilateral withdrawal.
  3. The benefit automatically belongs to the new manager personally.
  4. Every employee must reimburse all past payments merely because management changed.
  5. All other employment rights cease when a manager changes.

Legal references

  • https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/45241 — Arco Metal Products Co., Inc. v. SAMARM-NAFLU, GR 170734, May 14, 2008, main decision.
  • https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/21642 — Eastern Telecommunications Philippines, Inc. v. Eastern Telecoms Employees Union, GR 185665, February 8, 2012, main decision.

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