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?
- A new manager's label necessarily cancels the established right.
- The label alone does not displace the proved protected practice or justify unilateral withdrawal.
- The benefit automatically belongs to the new manager personally.
- Every employee must reimburse all past payments merely because management changed.
- 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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