Philippine Bar review · Question

Practice question: Limitations on Management Prerogative

Multiple Choice Medium

Practice question

A valid CBA guarantees a specified accrued benefit. A later company circular says employees lose that benefit on separation, contrary to the agreement. Which should guide resolution?
  1. The circular automatically prevails because HR issued it
  2. Separation erases all CBA rights
  3. The employer must honor the CBA rather than unilaterally impose the inconsistent condition
  4. Every benefit is always discretionary
  5. The employer may decide whether the CBA exists

Legal references

  • Philippine Airlines v.Ahmee, GR221065/221164, April7,2025: https://lawphil.net/judjuris/juri2025/apr2025/gr_221065_2025.html

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