GRANT OF BONUS AND OTHER BENEFITS

To be considered as a regular company practice, the employee must prove by substantial evidence that the giving of the benefit is done ov...

To be considered as a regular company practice, the employee must prove by substantial evidence that the giving of the benefit is done over a long period of time, and that it has been made consistently and deliberately. Jurisprudence has not laid down any hard-and-fast rule as to the length of time that company practice should have been exercised in order to constitute voluntary employer practice. The common denominator in previously decided cases appears to be the regularity and deliberateness of the grant of benefits over a significant period of time. The principle against diminution of benefits is applicable only if the grant or benefit is founded on an express policy or has ripened into a practice over a long period of time which is consistent and deliberate; it presupposes that a company practice, policy and tradition favorable to the employees has been clearly established; and that the payments made by the company pursuant to it have ripened into benefits enjoyed by them. (RICARDO E. VERGARA, JR. v. COCA-COLA BOTTLERS PHILIPPINES, INC., G.R. No. 176985, 1 April 2013)

By definition, a "bonus" is a gratuity or act of liberality of the giver. It is something given in addition to what is ordinarily received by or strictly due the recipient. Generally, a bonus is not a demandable and enforceable obligation. For a bonus to be enforceable, it must have been promised by the employer and expressly agreed upon by the parties. Given that the bonus in this case is integrated in the CBA, the same partakes the nature of a demandable obligation. (LEPANTO CERAMICS, INC., v. LEPANTO CERAMICS EMPLOYEES ASSOCIATION, G.R. No. 180866, 2 March 2010)

A bonus, however, becomes a demandable or enforceable obligation when it is made part of the wage or salary or compensation of the employee. (EASTERN TELECOMMUNICATIONS PHILIPPINES, INC., v. EASTERN TELECOMS EMPLOYEES UNION, G.R. No. 185665, February 8, 2012) 

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