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Philippine Bar review · Question

Practice question: Non-diminution of Benefits

Multiple Choice Hard Jurisprudence

Practice question

A GOCC has long paid an allowance that is established to violate a binding government compensation restriction. It stops the payment to comply with that restriction. Employees argue that duration alone creates a vested right to continued unlawful payment. Under PNCC v. Erece, Jr., which analysis is correct?
  1. Every long practice overrides a binding legal prohibition.
  2. The non-diminution rule does not compel continued compensation prohibited by law; duration alone creates no vested right contrary to law.
  3. The allowance necessarily becomes lawful after two years.
  4. Every COA observation automatically proves every payment unlawful without examining the governing rule.
  5. The employees automatically acquire ownership of the GOCC.

Legal references

  • https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/69584 — Philippine National Construction Corporation v. Erece, Jr., GR 235673, July 22, 2024, main decision.

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