An employer cannot be forced to distribute bonuses which it can no longer afford to pay, a bonus is an amount granted and paid to an employee for his industry and loyalty which contributed to the success of the employers business and made possible the realization of profile. It is an act of generosity and is a management prerogative, given in addition to what is ordinarily received by or strictly due the recipient. Thus, it is not a demandable and enforceable obligation, except when it is made part of the wage, salary or compensation of the employee.
The conservator was justified in reducing the mid-year and Christmas bonuses of petitioner’s employees. Ultimately, it is to the employee’s advantage that the conservatorship achieve its purposes otherwise, the closure of the company would result in the employees losing their jobs.
PD 851 requires all employees to pay their employees a basic salary of not more than P1, 000 at 13th monthly pay. However, employees already paying their employees a 13th month pay are not covered by the law. The term “equivalent” shall be constructed to include Christmas bonus, mid year bonus, cash bonuses and other payments amounting to not less than 1 /12 of the basic salary. The intention was to grant relief to those not actually paid a bonus, by whatever name called. Thus, petitioner is justified in crediting the mid year bonus and Christmas bones as part of the 13th month pay.
The divisor used by petitioner in arriving at the employee’s daily rate for the purpose of computing salary related benefits is 314 days. This finding was not disputed by the NLRC. However, the divisor was for the sole purpose of increasing the employee’s overtime pay and was not meant to replace the use of 314 as the divisor in the computation of the daily rate for salary –related benefits.
The conservator was justified in reducing the mid-year and Christmas bonuses of petitioner’s employees. Ultimately, it is to the employee’s advantage that the conservatorship achieve its purposes otherwise, the closure of the company would result in the employees losing their jobs.
PD 851 requires all employees to pay their employees a basic salary of not more than P1, 000 at 13th monthly pay. However, employees already paying their employees a 13th month pay are not covered by the law. The term “equivalent” shall be constructed to include Christmas bonus, mid year bonus, cash bonuses and other payments amounting to not less than 1 /12 of the basic salary. The intention was to grant relief to those not actually paid a bonus, by whatever name called. Thus, petitioner is justified in crediting the mid year bonus and Christmas bones as part of the 13th month pay.
The divisor used by petitioner in arriving at the employee’s daily rate for the purpose of computing salary related benefits is 314 days. This finding was not disputed by the NLRC. However, the divisor was for the sole purpose of increasing the employee’s overtime pay and was not meant to replace the use of 314 as the divisor in the computation of the daily rate for salary –related benefits.
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