Philippine Bar review · Question

Practice question: Non-diminution of Benefits

Multiple Choice Medium Jurisprudence

Practice question

Employees prove that a lawful benefit ripened into company practice. The employer argues that the benefit is unprotected solely because no handbook records it. Which conclusion follows from Arco Metal?
  1. An established qualifying practice can be protected even without that particular written handbook provision.
  2. Only benefits written in a handbook can ever be protected.
  3. Oral or practical conduct is never relevant.
  4. The absence of a handbook automatically proves payroll error.
  5. Employees must own company shares to invoke the principle.

Legal references

  • https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html — Labor Code, Article 100.
  • https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/45241 — Arco Metal Products Co., Inc. v. SAMARM-NAFLU, GR 170734, May 14, 2008, main decision.

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