Concept

The principle of non-diminution of benefits states that: “any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer.”[1]

This principle is founded on the Constitutional mandate to “protect the rights of workers and promote their welfare,” and “to afford labor full protection.” Said mandate in turn is the basis of Article 4 of the Labor Code which states that “all doubts in the implementation and interpretation of this Code, including its implementing rules and regulations shall be rendered in favor of labor.”[2]

Benefit and supplement definition

Employee benefits are compensations given to employees in addition to regular salaries or wages.[3] Some benefits are legally required, e.g., social security benefits, medicare, retirement benefits, maternity benefits, service incentive leave, etc. Other benefits are offered by the employer as an incentive to attract and retain employees as well as increase employee morale and improve job performance.[4]

Supplements include those benefits or privileges granted to an employee for the convenience of the employer, e.g., board and lodging within the company premises.

Common application

In employment setting, the principle of non-diminution of benefits finds application when a change initiated by the employer to existing company policies, specially matters concerning employee benefits, results in reduction, diminution or withdrawal of some or all of the the benefits already enjoyed by the employees. For example, if the employees of a certain company is traditionally granted 14th month pay, and the employer subsequently withdrew such benefit, or reduced its amount, the reduction or withdrawal is objectionable on the ground that it would result to diminution of benefits.

Requirements

The application of the principle 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.[5]

To ripen into benefits, the following requisites must concur:

  1. It should have been practiced over a long period of time; and
  2. It must be shown to have been consistent and deliberate.[6]

With regard to the length of time the company practice should have been exercised to constitute voluntary employer practice which cannot be unilaterally withdrawn by the employer, the Court has not laid down any rule requiring a specific minimum number of years.[7]

  1. In the case of Davao Fruits Corporation vs Associated Labor Unions (G.R. No. 85073, August 24, 1993), the company practice lasted for six years.
  2. In Davao Integrated Port Stevedoring Services vs. Abarquez (G.R. No. 102132, March 19, 1993), the employer, for three years and nine months, approved the commutation to cash of the unenjoyed portion of the sick leave with pay benefits of its Intermittent workers.
  3. In Tiangco vs Leogardo, Jr. (G.R. No. L-57636, May 16, 1983), the employer carried on the practice of giving a fixed monthly emergency allowance from November 1976 to February 1980, or three years and four months.
  4. In the case of Sevilla Trading Company vs Semana, ibid., the employer kept the practice of including non-basic benefits such as paid leaves for unused sick leave and vacation in the computation of their 13th-month pay for at least two (2) years.

In all these cases, the grant of benefits has been held to have ripened into company practice or policy which cannot be peremptorily withdrawn.

Footnote

  1. “Arco Metal Products vs. Salvador Uy, G.R. No. 170734, May 14, 2008,” http://sc.judiciary.gov.ph/jurisprudence/2008/may2008/170734.htm.
  2. Ibid.
  3. “benefit: Definition, Synonyms from Answers.com,” http://www.answers.com/topic/benefit.
  4. See Ibid.
  5. See “MERALCO vs Quisumbing, G.R. No. 127598, January 27, 1999,” http://sc.judiciary.gov.ph/jurisprudence/1999/jan99/127598.htm.
  6. See “Sevilla Trading Co vs Semana, G.R. No. 152456, April 28, 2004,” http://sc.judiciary.gov.ph/jurisprudence/2004/apr2004/152456.htm.
  7. See Ibid.

Bibliography

  1. “Arco Metal Products vs. Salvador Uy, G.R. No. 170734, May 14, 2008,” http://sc.judiciary.gov.ph/jurisprudence/2008/may2008/170734.htm.
  2. “benefit: Definition, Synonyms from Answers.com,” http://www.answers.com/topic/benefit.
  3. “MERALCO vs Quisumbing, G.R. No. 127598, January 27, 1999,” http://sc.judiciary.gov.ph/jurisprudence/1999/jan99/127598.htm.
  4. “Sevilla Trading Co vs Semana, G.R. No. 152456, April 28, 2004,” http://sc.judiciary.gov.ph/jurisprudence/2004/apr2004/152456.htm.

Last Edited: Friday, August 19, 2011

Caveat: Subsequent court and administrative rulings, or changes to, or repeal of, laws, rules and regulations may have rendered the whole or part of this article inaccurate or obsolete.
employee benefits, non-diminution, salary, wages
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325 comments

  1. Dear Sir,

    1)If we are enjoying bi-monthly payment of salaries then company decides
    to close existing company put up a rep office reporting to another
    counry and plans to pay salaries monthly na lang to follow same
    payment as the country new rep office will be reporting to, is this
    a form of diminution?

    2)If an employee is relocated from the US to the Philippines on the other
    hand having monthly payment of salary then upon start of work in the
    Philippines, they are also supposed to be receiving monthly salary pero two months
    na siya di sinuswelduhan because of issues of which division of the
    local company will pay them even if US company nila will pay the
    local company back naman for it, is the employee covered by our PH
    labor laws even if she is working for a US company in the US relocated
    back to the Philippines and the person is a Filipino citizen?

    [Reply]

    Ted Ferrolino Reply:

    1) Your company’s plan to pay monthly insted of bi-monthly may violate the Labor Code. The Labor Code requires that salary be paid at least twice a month. The provision is found in Article 103: “Wages shall be paid at least once every two weeks or twice a month at intervals not exceeding sixteen days.”
    2) Filipinos working abroad (migrant workers and overseas Filipino workers) are protected under Philippine labor laws. If necessary in your case, you may file money claims against employer and the placement agency with the National Labor Relations Commission.

    [Reply]

    Sean V Reply:

    Unless the monthly payout is composed of 2 weeks of actual worked rendered plus the 2 upoming weeks. This means the conpany advanced the payment of labor. In this case, this doesbt violate the rule.

    [Reply]

  2. jeny tamondong Comment:
    June 20th, 2010 at 11:08 pm

    dear sir,
    i am currently working in a educational private institution as an administrative staff..during my 4th year in service and being a regular employee my employer reduce my salary..the reason is that in the previous year, mataas daw masyado ang naibigay n allowance.they computed my salary just like a teacher, but im not a teacher..i work as a administrative staff..sir, puwede po b maging reason na kaya maliit ang increase ng basic ko its because i didnt finish my course?kung kailan po nila ako niregular dun pa po nagreduce ng salary? May laban po b ako na dapat mas tumaas nga ang suweldo ko as compare sa previous year dahil regular na po ako? unlike before probitionary po ako..thank you po.

    [Reply]

  3. brilliance Comment:
    June 20th, 2010 at 11:22 pm

    dear sir,
    i am currently working in a educational private institution as an administrative staff..during my 4th year in service and being a regular employee my employer reduce my salary..the reason is that in the previous year, mataas daw masyado ang naibigay n allowance.they computed my salary just like a teacher, but im not a teacher..i work as a administrative staff..sir, puwede po b maging reason na kaya maliit ang increase ng basic ko its because i didnt finish my course?kung kailan po nila ako niregular dun pa po nagreduce ng salary? May laban po b ako na dapat mas tumaas nga ang suweldo ko as compare sa previous year dahil regular na po ako? unlike before probitionary po ako..thank po.

    [Reply]

    Ted Ferrolino Reply:

    Hindi dahilan ng maliit na increase na hindi ka nakatapos, as long as qualified ka for the position you are holding. You are entitled to the same benefits as the other employees, provided you are similarly situated, you have the same position and same qualifications. Factors like performance, seniority or number of years of service may matter though.
    Yung reduction, it is not allowed under the principle on non-diminution of benefits.

    [Reply]

    brilliance Reply:

    thank you for that sir. sir, may i ask if there is a particular article or reference regarding my situation?..thank you very much.

    [Reply]

  4. Dear sir,
    i am work in an educational institution as the administrative head. Aside from Cost of Living Allowance (COLA) which i know that we cannot decrease what has been given, is overload allowance which has been given earlier allowed to be decreased the following year?..thank you very much

    [Reply]

    Ted Ferrolino Reply:

    If it has been practiced over a long period of time, with consistency and deliberateness, then it may no longer be withdrawn under the principle of non-diminution of benefits.
    However, some benefits like those that depend on profits, as in most profit-sharing schemes, may vary from time to time depending on actual profits earned by the company. In this case, there is no violation of the above principle even if there is a reduction of benefit when compared to the previous year.

    [Reply]

  5. Dear Sir,
    I am currently working in a private educational institution as an office secretary / office clerk under the administrative department.During the hiring period, my employer knew that I was about to finish my bachelor degree.But because of a certain reasons I decided not to finish my degree,so I asked my superior if they would still absorb me even if I cannot finish my degree.Eventually, they hired me . As of now ,this is my 4th year in service and in our employees manual, when you reach your 4th year in service ,you’ll be in a regular/permanent status. Because of that, I was expecting to receive the basic salary of being a regular employee same as the basic of my fellow colleagues. But unfortunately, my employer told me that they cannot give the basic pay same as the office personnel’s because I didn’t finish a degree.They even insisted that if they will give me the basic of being a regular employee, my salary will become bigger than our teachers…I told them that being an office personnel is different from being a teacher. We even have different tasks and qualifications..I asked my superior if I’m not qualified or am I not doing well in my job and she said that I am qualified and actually improved a lot. The only problem is that I didn’t finish my degree. Sir, do i have a right to demand the basic salary payment same as the regular office personnel?…They keep on insisting that it will be unfair to those who finished their courses if we will receive the same basic salary…please advise me..Please give me a reference from the labor code regarding my case. Thank you.

    [Reply]

  6. pretty_ASC Comment:
    June 23rd, 2010 at 11:30 am

    Our company is currently revising our ‘Employee Handbook’. The management wanted that the sick leave and vacation leave would be summed up including emergency leave, bereavement leave, and paternity leave. Meaning to say, we would only have a total of 30 days leave (15 each, for vacation and sick leave). And should we file for an emergency, bereavement or paternity leave, these will be credited from our available sick leave and vacation leave. Is it possible?

    [Reply]

    Ted Ferrolino Reply:

    I see no problem in summing up sick, vacation, emergency and bereavement leave, unless it would result to diminution of existing employee benefits on leave (you failed to mention your current leave policy). However, the paternity leave should be treated separately since it is governed by a different law.

    [Reply]

    pretty_ASC Reply:

    Our current leave policy is as follows:

    Vacation Leave – 15 days
    Sick Leave – 15 days
    Bereavement Leave – 5 days (death of child or spouse); 3 days (death of mother, mother, or siblings); 1 day (death of a relative)

    Vacation Leave is convertible to cash.

    May I also ask, if these policies/benefits can be amended even if these benefits are already implemented, enjoyed and exercised by the employees?

    Thank you very much!

    [Reply]

    pretty_ASC Reply:

    May i add, in our ‘Employee Handbook’, unused Vacation Leave is convertible to cash while Sick Leave is not. As mentioned, the management is planning to change its policy: Vacation can no longer be convertible to cash and Sick Leave shall be reduced to a fewer of days, i.e. from 15 days to 5 days. Is it legal? Considering that such benefits have been exercising and enjoying by the employees from the very start?

    Again, thank you very much!

  7. pretty_ASC Comment:
    June 23rd, 2010 at 02:58 pm

    Our current leave policy is as follows:

    Vacation Leave – 15 days
    Sick Leave – 15 days
    Bereavement Leave – 5 days (death of child or spouse); 3 days (death of mother, mother, or siblings); 1 day (death of a relative)

    Vacation Leave is convertible to cash.

    May I also ask, if these policies/benefits can be amended even if these benefits are already implemented, enjoyed and exercised by the employees?

    Thank you very much!

    [Reply]

    Ted Ferrolino Reply:

    Yes, the reduction of number of days of sick leave and the changing of vacation leave from “convertible to cash” to “nonconvertible to cash” violate the prohibition against diminution of existing employee benefits.
    The reduction, diminution, elimination or discontinuation of benefits being enjoyed by employee is prohibited.

    [Reply]

    Jairus Pinto Reply:

    Sir does this apply to International companies doing business on Philippines? for example BPO companies?

    [Reply]

  8. Hi sir,

    I am currently expecting my first child. I am working in a private institution (BPO) and I have gone over our employee handbook. Here’s what it says regarding the maternity benefit pay it offers to its employees.

    “All female employees regardless of status and on maternity leave will be granted full compensation while on their maternity leave. The portion between your SSS maternity benefit and your actual daily pay will be considered as your supplemental maternity pay benefit from xxxName of our Companyxxxx.”

    However, I’ve discovered from my workmates who have availed of the same benefit just before I did, that our company hands over only the maternity benefit pay from SSS themselves and not the full compensation as they clearly stipulated in the handbook.

    Sir, please enlighten me on how I should go about with the resolution of my concern. And can you cite clear steps on who I should talk to (goverment agencies) to resolve this concern?

    Your help is very much appreciated. Thanks!

    [Reply]

  9. Menandro Dizon Comment:
    June 28th, 2010 at 02:50 pm

    Sir,

    I would just like to ask if there is a legal basis or is it a illegal for a case when an employee was promoted but the basic salary was decreased?

    I know it may sound absurd. But this an actual case in our company..A team leader was promoted to a Line Staff but the daily rate was decrease by 36 pesos..

    Our HR Manager told us that the decrease in basic salary was caused by salary distortion and she said that it is compensated by the allowance.

    But my concern is the 13th month and over time pay, automatically it will be also decreased.

    And upon the computation, the increase in allowance is not that big.

    Is there any protection from the Labor code for the basic salary of any employee?

    Hoping for your immediate reply..

    Thank you..

    [Reply]

    Ted Ferrolino Reply:

    As I see it, the decrease in salary has nothing to do with the promotion, although it may appear that way. The decrease has more to do with the correction of salary distortion, as what your HR Manager told you.
    However, it is not quite right to reduce the basic salary just to correct wage distortion. Normally, wage distortion is corrected by increasing the salary of the affected employee (the one higher in rank and who is supposed to be receiving higher salary) in order to restore the traditional gap in wages. Not the other way around. (I hope it does not sound too confusing.)
    The best thing to do is to clarify this issue with your HR Manager. Maybe they can find a better solution to correct wage distortion.

    [Reply]

    Menandro Dizon Reply:

    Thank you for your reply sir.

    I would also like to ask a followup question, Can a company do this “not right” or “not normal” actions and will get away with it?

    Are there guidelines or protection from the labor law regarding the decreasing of basic salary of employees?

    katina

    [Reply]

    Jonard D. Duldulao Reply:

    Thank you sir for the info..follow up question sir…my company lower down our basic salary even i am promoted and their reason is that there would be additional client premium-which means the account that i am supporting provided additional benefits for us but our company made it taxable and lower down our basic salary. my question is-is the act of our company has basis or is it legal or illegal. thank you sir…

    [Reply]

  10. Dear sir,

    Our company just made a handbook and is already implementing the punishments without giving us benefits. To follow pa daw po yung benefits. Is the company violating any labor law by practicing this. It seems very unfair to us.

    They give us memos for tardiness and take out part of our salary for absences but they do not give us SIL.

    Is there a law that says that the employees must have X days of leave? If so, how many days and how many days are paid?

    Also, i understand that the employees need to have already rendered a year of service to avail of this SIL. However, I have been regularized in less than a year. Does this mean that I cannot avail of this benefit yet?

    Would appreciate your advice. This has been an issue in the office for a while already.

    thank you so much!

    [Reply]

    Florence Naval Reply:

    The law say that the benefits for SIL does not categorized on kind of business it is given to all employees after one of service 5 days for vacation and 5 days for sick leave and this is a mandatory one. You can argue this one to your employer because they are violating the rules.

    [Reply]

    paula Reply:

    Hi Sir ,

    question:

    if we are under agency thus this also apply on us that they are violating the rules coz they are only given us 5 days leave including Sick leave,Vacation leave and etc. and they are allowing us to have leave (any kind) after a year when we got hired.

    yung agency po namin hindi po kami ina.aalaw na tumawag sa HR or sa Office po nila in manila meron po ba ganung law na pinagbabawal yung maga employee na makipag.get in touch with their agency.

    In every pay day po of us palagi po kaming may deduction for abuloy worth 30 pesos is that fine or meron po silang nilabag na labor law.

    Please reply in my email address given above.

    Thanks.

    [Reply]

  11. vince the prince Comment:
    July 29th, 2010 at 05:08 pm

    we are currently on the process of negotiating.our company as per their proposal reduced almost 90% of the benefits that we have been enjoying for the longest time (ex.annual leave from 18 down to 16, reduced overtime pay, deletion of sunday premium etc)reason being that the CBA handbooks binding agreement prevents the company from sustainability.Apparently we have just been exchanging justifications and have not come into a mutual agreement due to the fact that the company insists on reducing majority of the benefits.Is it possible if I could just remind them that diminution of benefits is a violation and an unfair labor practice punishable by law and maybe declare a deadlock?

    [Reply]

  12. We have recently undergone a shareholder buyout and are in the process of transferring organisational undertakings to the new owners. Can you confirm that the non-diminution of benefits will serve as protection in light of the new ownership and that employee terms and conditions will remain protected?

    [Reply]

  13. Dear Sir,
    Our current policy states that our earned and unused vacation leaves are converted into cash in December. Management has expressed to change this and this is now disallowing cash conversion in 2011 and forcing us to use our leaves. Is this legal?
    Thanks.

    [Reply]

    Ted Ferrolino Reply:

    Under the Labor Code, qualified employees are entitled to service incentive leaves of five days with pay. And under the implementing rules, unused leaves are commutable to cash.
    The employee has the option to either use it or avail of commutation. The employer cannot force the employee to choose either one of these options.
    Disallowing conversion of the 5-day SIL violates the above provision. On the other hand, disallowing conversions of leaves (beyond the 5-day SIL) which have already ripen into established company policy violates the rule on non-diminution of benefits.

    [Reply]

    Bong Ramos Reply:

    Dear Sir,

    I am presently connected with a private hospital. Hired in Sept. 2004. During my pre-orientation, i was told that i’l be enjoying 15 days SL(convertible to cash)and 15 days VL(not convertible)after a year. This matter was not even stated in my employment contract. In one of our benefit seminar in 2009, i learned that 1 – 4 years employment has 19 days SL and VL; 4 years 1 day, entitled to 21 days SL and VL. In this case, my VL/SL was immediately adjusted in 2009 from 15 to 21 days. Hence, i had unenjoyed VL/SL in the following years: 2005-4; 2006-4; 2007-4; and 2008-6. Overall i had 18days unenjoyed SL/VL. Ang tanong ko po ngayon ay kung maaari ba na mag habol ako para mai-credit sa akin ang mga nasabing araw na hindi ko nagamit? Nabasa ko sa ilan ninyong reply na ang unenjoyed VL ay pwedeng gamitin ito o i-avail ang commutation. Thank you in advance to your reply.

    [Reply]

  14. Dear Sir,
    Natanggal po kaming apat sa trabaho dahil nagkaroon po ng retrenchment sa pinapasukan namin.Hindi po nagbayad ng separation pay ang employer namin kaya po nag-file kami ng claim sa DOLE at my hearing po kami bukas ng ten am.ang ginagamit po ng employer na alibi eh naterminate po kami dahil po sa absences at tardiness namin.underpaid din po kami at illegal po ang ginawa niya na pagterminate sa amin dahil wala po siyang notice sa DOLE at sa aming apat.3 yrs na po ako sa trabaho.may makukuha po ba kami sa kanya separation pay?salamat po!

    [Reply]

    Ted Ferrolino Reply:

    Kung mapapatunayan na illegal o walang basehan ang inyong termination, entitled kayo sa back wages (sweldo sa buong panahon na kayo ay hindi pinayagang makapasok) at sa reinstatement (pabalikin sa dati ninyong position). Kung ayaw naman ninyong bumalik pa sa trabaho, kayo ay dapat bigyan ng separation pay kapalit ng reinstatement.
    Ang ganitong kaso (illegal termination with prayer for reinstatement or separation pay) ay nasa jurisdiction ng NLRC at hindi DOLE.

    [Reply]

  15. Sir,

    If we plan to give benefits and include on the policy that if they have an offense let say a Medium type of offense and as the equivalent punishment is to hold the benefits for 2 months, are we not in violation of non-dimunition of benefits?

    [Reply]

  16. Lorna Pangilinan Comment:
    September 11th, 2010 at 09:57 pm

    Sir,
    I am currently enjoying the benefits of Vacation Leave – 15 days, Sick Leave – 15 days, and both convertible to cash.Starting next year my employer decided to reduce it.

    May I also ask, if these policies/benefits can be amended even if these benefits are already implemented, enjoyed and exercised by the employees? Although it is stated in the contract that the employer reserves the right to implement and/or revoke such benefits, as shall it shall in its discretion deem fit.

    Thank you very much!

    [Reply]

  17. Clarisa Magdayao Comment:
    September 11th, 2010 at 10:09 pm

    Sir,

    It is the first year that am enjoying the benefits of 30 days vacation and sick leave, my employers decided to amend it next year, to reduce the number of days. Is that possible although it is stated in my employment contract that my employers has the rights to revokr it.
    thanks.

    [Reply]

  18. Hi,

    Sorry po kung d2 ako nag post ng comment, ndi ko po kc alam kung san section ako mag post eh.

    Ganito po kc ung situation, 5 years na po kc nagwork ung wife ko sa company nila as a receptionist pero ang salary po nila is below minimum as in below minimum pero with commission but ndi ganun kalaki,ung industry ng company nila is non-agriculture, (Salon) service po ung industry nila pero more than 15 po ung employees nila. Also hangang ngaun lahat ng employees nila ay wla pa rin pinipirmahan na employment contract. Meron po bang law about sa employment contract? Pwede rin po ba cla i-reklamo ng “Wage Rationalization Act”?
    Thanks,

    [Reply]

  19. Hi,
    Sorry po kung d2 me nagpost, ndi ko po kc alam kung san section pde itanong ung ganitong case.

    Ganito po kc ung situation, 5 years na po kc nagwork ung wife ko sa company nila pero ang salary po nila is below minimum as in below minimum pero with commission pero maliit lng, pero ung company nila is non-agriculture, (Salon) service po ung industry nila pero more than 15 po ung employees nila. Also hangang ngaun lahat ng employees nila ay wla pa rin po pinipirmahan na employment contract. Meron po bang law about sa employment contract? Pwede rin po ba cla i-reklamo ng “Wage Rationalization Act”?
    Thanks,

    [Reply]

  20. Dear Sir,

    I am presently connected with a private hospital. Hired in Sept. 2004. During my pre-orientation, i was told that i’l be enjoying 15 days SL(convertible to cash)and 15 days VL(not convertible)after a year. This matter was not even stated in my employment contract. In one of our benefit seminar in 2009, i learned that 1 – 4 years employment has 19 days SL and VL; 4 years 1 day, entitled to 21 days SL and VL. In this case, my VL/SL was immediately adjusted in 2009 from 15 to 21 days. Hence, i had unenjoyed VL/SL in the following years: 2005-4; 2006-4; 2007-4; and 2008-6. Overall i had 18days unenjoyed SL/VL. Ang tanong ko po ngayon ay kung maaari ba na mag habol ako para mai-credit sa akin ang mga nasabing araw na hindi ko nagamit? Nabasa ko sa ilan ninyong reply na ang unenjoyed VL ay pwedeng gamitin ito o i-avail ang commutation. Thank you in advance to your reply.

    [Reply]

  21. Sir,

    Just would like to seek some advice if our company is violating the fair labor practice or not. This is how my story go.

    >I applied as a team lead way back Jun 2009 and underwent to the company’s cadetship program wherein we are given 30% allowance on the base salary of 14k for 3 months and after it I was a full-pledged team lead but because of the US recession my promotional increase was frozen but I still received the 30% allowance. Just this month Sep 2010 our promotional increase was lifted and based on the memo I received the salary rate has been decreased to 11k in which it was very demoralizing in my part in which I expected the 14k rate the time I was a full time TL. The sad thing this also is that when our company was hiring TL form external they are giving the actual 14k salary…Please advise the soonest, many of us are affected with this situation.

    Thanks

    [Reply]

  22. we are currently giving our employees a sack of rice for every year of service. since the company is experiencing cashflow problems (not really going bankrupt), can we discontinue this practice to NEW EMPLOYEES. current employees will still be under this practice but those who will be hired after a certain date will no longer be eligible for this benefit. is this already considered diminution of benefits?

    [Reply]

    Ted Ferrolino Reply:

    It is not considered diminution of benefits if only new employees will be affected.

    [Reply]

  23. hi–

    I am working as a manager at a BPO company. I was promoted about a year ago at a time when our company implemented a freeze on salary increase. however, my boss found a way around the policy and requested from payroll a monthly bonus for me (as part of the compensation package for accepting the position) until such time the freeze on the salary increase is lifted. That means I was getting a basic pay and the bonus which is equivalent to our agreed increase. but since it was termed as BONUS..it was not added on the 13th month bonus that I received last year.

    (1)were they right in doing that?

    A month ago, the freeze was lifted and a new compensation package was presented to me. I was very surprised to find out that it was lesser than what I am getting. They removed the bonus… and even if there was an increase on the basic pay, it is still much lesser than the time when I was getting the bonus.

    (2) Do I have a good chance of fighting for this?

    I was receiving this bonus for more than a year and it feels really unfair for them to take it away.

    Would really appreciate your expert response…Also, can you tell me where I can find this principle on the Philippine Labor code?

    Thank you so much.

    [Reply]

  24. Hi Sir,

    Our company now will be absorbed by another sister company. In effect, they HR gave us a new contract which had different provisions from what we have initially signed in the old company. The difference is very obvious with the car policy. I was assigned a car in the old company and had the option to buy it 20% of original cost after 4 years. In the new contract under the new sister company, the car will be up for open bidding to all employees (I lose the option to buy it for 20%). Also, there is a clause there that “the company reserves the right to change the policy on cars depending on the economic status of the company”. Are these clauses legal? Isn’t it that once a contract has been signed, it is the legal obligation of the employer to provide the employee with the benefits stipulated in the contract? How come we have the clause where “the company reserves the right to change the policy” where in fact, we are signing the contract and hoping that we will be given these benefits? Please help sir..I think we are being forced to accept this new contract”. Thank you and more power!

    [Reply]

  25. Sir,ask ko lang if sick leave with full pay paid by the company can be also filed to sss for sickness benefit reimbursment? or excluded po? Kasi, ang sick leave nmin with pay is seven days lang…so ang ginawa ko sa co employee ko na nagfile sa sss for sickness benefit reimbursment since ako po yung nasa HR is 60 days approve by medical pero ni less ko po ng 7 days dahil bayad na nga ng employer, tama po ba computation ko, naguguluhan kasi ako.pls. help me…
    thank you very much.

    [Reply]

  26. greetings!

    juz wanna ask kng habol po ba kami sa korte sa ginawa ng aming head of office. he has withdrawn our incentive leaves and we are made to refund pa by deducting it in our salary. because we are gipit sa pera, kinuha pa rin namin ang aming salary maski it has deductions and we signed on our payroll. we have been enjoying this leaves for almost 4 years na.

    may magagawa po pa ba kami to get back our salary? pls help us…

    [Reply]

    catherine Reply:

    greetings!

    juz wanna ask kng habol po ba kami sa korte sa ginawa ng aming head of office. he has withdrawn our incentive leaves and we are made to refund pa by deducting it in our salary. because we are gipit sa pera, kinuha pa rin namin ang aming salary maski it has deductions and we signed on our payroll. we have been enjoying this leaves for almost 4 years na.

    may magagawa po pa ba kami to get back our salary? pls help us…

    [Reply]

  27. sir, ask ko lang if sick leave with full pay paid by the company can be also filed to sss or the number of days paid by the company for sick leave with pay could be also included to the computation for sss sickness benefit reimbursement. Please give me a sample computation, naguguluhan kc ako….

    Thank you so much….

    [Reply]

  28. sir, ask ko lang if it’s proper na tanggalan kmi ng 2000 pesos a month as payback kasi yung increase ng sahod namin was not authorized by the school board(private school) together with the COLA(cost of living allowance)…but the payback we have does not appear in the payroll nor in the secondary payroll.just that our salaries hae decreased by two thousand pesos a month for 7 months now.actually we have been enjoying the salary increased for many months last year until march this year.is it legal na bayaran o i-decrease ung unauthorized(?) salary increase though been enjoying it already for some time?please help.tnx

    [Reply]

  29. I am an employer who is currently revising our Procedure Memoranda on a lot of things related to the employment of our employees.

    Currently, I am working on the “error” we committed on granting separation pay to our employees on a policy created more than 4 years ago even if they have not reached the compulsory retirement age of between 60 years to 65 years for as long as they served the company for more than 5 years. In other words, we thought Separation Pay is the same with Retirement Pay.

    Specifically, the error is that we have been giving voluntarily resigned employees w/ Separation Pay even if their resignation is w/out due authorized cause prescribed under the Labor Code to be given Separation Pay. As a result of this stupid non-distinction between Retirement and Separation Pay, for the past 2 years, we have been experiencing a great loss of good employees who availed of our erroneous retirement/ separation pay offer.

    I would like to rectify this error by significantly improving our “correct retirement packages” and reducing our Separation Pay for voluntary resignation taken from a previous Procedure Memorandum.

    I’m planning that for me to lessen the impact of these changes, the transitory provisions for this new policy is that those employees or officers whose length of association with the company is more than 5 years reckoned on the date of enactment of these guidelines, shall use the old Procedure Memorandum on Retirement/ Separation Pay.

    AM I VIOLATING THE PRINCIPLE OF NON-DIMINUTION OF BENEFITS?

    If I didnt stopped my Financing BusinessIm planning all sorts of be

    [Reply]

  30. dear sir,

    I am working in a private school. we have been enjoying 13th month pay using our gross salary for a very long period of time. For this year our basic salary will be used for the computation of our 13th month pay. MOst of the tenured teachers were wondering about this, if it is a violation of the Article 100 of the Labor code?

    Our school is being administered by a congregation then we were given to a new congregation for administration since they said they dont have enough sisters to administer our school.

    The previous administration followed their organization’s treasurer’s manual in administering our school. According to our current admin, they are just following the same manual in the implementation of our 13th month pay.Our concern lies on why this year when in fact, they have learned about the error last 2004 then they have corrected it in their manual it but did not apply it for 6 years until they said that they will aplly it this year. Since we have a new administration it seems that the new admin applied the law , which the teachers wonder if we have the right to fight for it or will just willingly accept it? . We just want clarifications on this Article 100.thank you very much and God bless.

    [Reply]

    Ted Ferrolino Reply:

    Benefits being enjoyed by employee that has ripen into established company practice cannot be unilaterally withdrawn, even in the guise of implementation of long existing policy. The implementation would violate the proscription against non-diminution of benefits.

    [Reply]

    Ted Ferrolino Reply:

    This case is different from Isabelle’s case below. What is involved there is a CBA, which is a bilateral, as opposed to unilateral, contract.

    [Reply]

  31. Hello Sir,

    I am a rank and file from one of the BPO’s here in the Philippines and I would like to seek for an advice regarding the above mentioned topic. I have been employed for over 6 years now and it seems that benefits have been reduced. Before, me and my dependents are enjoying the full medical benefit, but currently, the management changes the process on our medical benefits. We already have “formulary” of medicines which we don’t have it before, meaning, we can reimburse any kinds of prescribed medicines. Before, we can go to any doctors from any hospitals accredited “or” non-accredited by the provider, but now, dependents can “only” seek consultation from accredited clinics and not allowed to go directly to a major hospital.

    Also, regarding the death benefit of our dependents, there were no age limit of who can avail of the said benefit, but now, if you’re dependent died at the age of 70 or over, you won’t get any from the employer/provider.

    Appreciate your response regarding this matter.

    [Reply]

    Ted Ferrolino Reply:

    The prohibition against unilateral diminution of benefits by employer seems to apply in your case.

    [Reply]

  32. Hi Sir,

    I would like to ask if a company is violating any labor law by putting up guidelines on how we will be getting incentives. Beforehand there were no guidelines or set rules on how our incentives would be given. We receive it monthly and then a sudden change was made without us being asked if we are agreeable to it. And the set rules that were given are not that attainable since you must perform perfectly to get the said incentive.

    thanks.

    [Reply]

    Ted Ferrolino Reply:

    There is diminution of benefits if as a result of the implementation of the new rules the benefits already enjoyed by employees are diminished or reduced.

    [Reply]

  33. Good day po. Just to ask if it’s ok to pay OT for others, and the other employees has no pay for ET

    [Reply]

    Ted Ferrolino Reply:

    All employees (except for a few not covered) are entitled to OT for work performed beyond 8 hours in one day.

    [Reply]

  34. Sir,
    I am working in a company holding a managerial post. In our company policy, we have there numerous benefits, one of them is the “Marital Benefit”, the same provides that when an employee, at service for at least 1 year, get married, the latter will receive P10,000. Now, can we delete or eliminate said benefit through a board resolution and amend our company policy?

    [Reply]

    Ted Ferrolino Reply:

    You can, as part of management prerogative. However, it should not be made to apply to existing employees, as doing so would run counter to proscription against diminution of benefits.

    [Reply]

    Leo Reply:

    Sir, thank you for your reply. Follow-up question, so you mean, through a Board Resolution, we can now eliminate the said benefit but it will still apply with regard to existing employees? So, there is no chance for us to eliminate totally the marital benefit provision in our company policy, which provides for P10,000 gift to employees who will get married and at service for at least 1 year, even through a board resolution and by amending the company policy? Thank you sir.

    [Reply]

  35. Sir,
    I am currently holding a managerial post in our company. We have numerous benefits in our company, one of those is the “Marital Benefits” which provides that an employee who have worked for the company for at least 1year and get married, the latter will receive P10,000. Now that we have new sets of officers, we decided to eliminate the said provision/benefit, can we do it through a board resolution and amend our policy, but not touching on those policies provided by law. Thanks.

    [Reply]

    Ted Ferrolino Reply:

    Established company practices cannot be unilaterally withdrawn by the company to the prejudice of existing employees. A mere board resolution by the new set of officers would not suffice. But if the new policy is intended to affect only future employees, I believe it can be done.

    [Reply]

  36. chill-chill Comment:
    January 2nd, 2011 at 05:32 am

    Dear Sir,

    I am working as a Cooperative Manager in a Savings and Credit Cooperative run by a certain french bank, I am currently having a 9,900 salary which 3,000 is declared as my basic pay and the others were declared as allowances. My Job description is for 4 people I am the manager, sometimes the teller, the credit officer, the customer service, the marketing and the production worker. The work is hard and we are asking for a salary increase but our General Manager refuses, he said if you cannot take the salary we are giving you, you can resign.The salary that we have right now does not meet our COLA anymore, he said if there is there is a provision under labor law that there should be an increase of salary for every year he will grant it, if we cannot find any evidence under the law that our salary should increase he will not grant us our request. please help us. Thank you

    [Reply]

    Ted Ferrolino Reply:

    From legal point of view, your General Manager is correct. There is no law that requires the employer to increse salary every year. There is also no law that requires the employer to pay beyond the prescribed minimum wage.

    [Reply]

  37. hi,

    I just like just if my company has any violation if they changed the way they compute our salary. In our contract it is stipulated that our monthly basic salary is 20,000. the computation before was based on per month basis. if we have absent or late that’s the time that they deduct as based on our daily or hourly rate. but if no late or absent it is automatic that we get gross pay of 10,000 per 15 days. however they recently changed the computation per hour basis. if they do it per hourly basis there are a lot of months that the we will not get the gross monthly salary of 20,000. though there are months that we will go beyond depending of the number of hours worked. the companies point is that we are getting the same annual gross pay.. however on our contract is specifically stated monthly basic pay. we haven’t signed anything regarding the changes. is there any violation on this?

    thanks

    [Reply]

    Ted Ferrolino Reply:

    If the new computation effectively diminished the employees’ salary, the change is illegal. However, mere change in the manner of computation without actual diminution of pay, or other benefits, would fall on the sphere of management prerogative.

    [Reply]

  38. gloria vega Comment:
    January 16th, 2011 at 07:29 pm

    Sir
    I am the president of our association and I ask permission that during our Employees’ Day we will have a Sports Encounter to be conducted by the association which was at first approved and a week after it was disapproved. Can we be deprived of Sports Encounter if the management does not allow us? I was told the management does not want the sports encounter to be held during the Employees’ Day as I asked half of the day we will have the Sports Encounter since we are already free in the afternoon and I was told to propose another date but there is no more open date available for us except the half day of our Employees; Day since we are already free.
    Can the management refuse our request? Are we not entitled to a non-economic benefit like sports? Is it lawful not to allow us to hold a sports encounter?
    Thenk you for your reply.
    can the employees be deprived of sports encounter after the

    [Reply]

    Ted Ferrolino Reply:

    If the sports encounter will be held within the company premises using company facilities, or if it involves the use of company time, or if it is in conflict with company scheduled activity, yes they can. Management prerogative.

    [Reply]

  39. Nicole Mojica Comment:
    January 28th, 2011 at 03:05 pm

    A pleasant day to you, Attorney. Hope you can help us with this.
    Our company hired us under an agency with a pretty good salary. After more than a year, they changed their agency and required us to submit our resignation letter for us to be transferred to their new one, but with lesser basic pay but with allowances making it just equal to our current salary we are receiving. The thing is, this may really affect our 13th month pay. Can this be considered diminution of benefits? We have been asked to sign the contract under the new agency.

    Your response is very much appreciated.

    [Reply]

    Ted Ferrolino Reply:

    Technically, there is no diminution of benefits. You cannot ask to have the same benefits you used to enjoy under the old agency from the new agency. They are two separate entities. What you can do, though, is ask for separation pay (if you have not yet done so) from the old agency since it appear that you were terminated (in the guise of requiring you to submit your resignation) when you were transferred from the new one.

    [Reply]

  40. Isabelle Ramos Comment:
    February 6th, 2011 at 01:49 am

    Sir,
    Good day!I’m working as analyst in top 1000 filipino chinise corporation here in the philippines for more than two years now.I would to know if there is a violation in my rights as employee. if there new hired employees have the same salary with me,we hold the same position.And also my co employees he get hired 8months after me.Our employer told us that our adjustment will be after one year of hiring date.But last year they release a new hiring rates which is the same with what i receive now.In my part i felt sad cause there no distinction on my length of service with the new one.And also to my co employee which have much lower rates that me cause he doesn’t undergone any salary adjustment yet. it my lead to demoralization and distrupt our harmonious relationship to my co employees which newly hired.Do we need to file a complain where?We want to talk to the HRD but i want to know what labor code law govern this complain?For us to be able to depend our side?Kindly send me detailed article.THANK YOU VERY MUCH.
    YOUR REPLY IS HIGHLY APPRECIATED.

    [Reply]

    Ted Ferrolino Reply:

    I am not aware of any provision in the Labor Code that specifically address this issue. This is an internal matter, and the only solution to this is to negotiate with the management to correct the distortion in your company’s wage structure. (Side note: There is such thing as Wage distortion under the law, defined as a situation where an increase in prescribed wage results in the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage structure based on skills, length of service, or other logical bases of differentiation. Wage distortion as defined presupposes that the distortion resulted from implementation of a new wage order. Apparently, it does not apply to your case.)

    [Reply]

    Olivia Armada Reply:

    Sir,

    Based on your reply with the querry of Ms. Ramos, I just want to asked when is there a distortion of salary? Currently, we have agency workers who receives basic salary of 404 plus 22 ECOLA (426) and we have regular employees over 10 years of service who’s salary is only 430 per day? Is there a distortion to be called?

    Your reply is highly appreciated.

    [Reply]

  41. I am a teacher in a private school enjoying a load assignment of more than what explicitly provided in the collective bargaining agreement (CBA) for a very long time. However, the school decided to strictly implement what was provided in the CBA, thereby reducing my actual teaching load and consequently reducing my take home pay. Is it valid? Can a long practice of giving teaching load more than what was provided in the CBA be considered or ripened to a right over such excess load?

    [Reply]

    Ted Ferrolino Reply:

    Hi! Noting that what is involved is “strict implementation”, rather than violation, of the CBA, I believe that the act of the management is valid (unless there is a provision in the CBA, perhaps under Non-diminution Clause, which prohibits the implementation of its terms if it would result in reduction of pay or benefits to employees). CBA as a contract serves as the law between the contracting parties. Both parties to the CBA has the right, and obligation, to act in accordance with its terms.
    The remedy is modification of the terms of existing CBA.

    [Reply]

  42. Hello po Sir! Ask ko lang po if may labor law tayo na pwede mag leave sa work ng about 15 days kc mag uundergo po ako ng surgery and kailangan ko po kasi ng healing period kaya medyo matagal. Paano po pag hindi pumayag ang company kung saan ko nagwowork kasi Korean company po ako nagwowork. May tendency po bang matanggal ko sa work kasi ang allowed po na leave ay 5 days lang in a year.Ano po ba yong rights ko dun at Ano po ba ang dapat kong gawin? Thank you po.

    [Reply]

    Ted Ferrolino Reply:

    You can take a leave beyond five days, especially if there is a valid reason. However, since the Code allows only 5 days leave with pay, the excess after 5 days is deemed unpaid leave.

    Just file your leave application stating the necessity for the surgery, the expected date of the surgery, the approximate number of days of healing period, and your intended date of return. Don’t forget to attach your doctor’s certification or recommendation stating the need for the surgery. If you have company doctor, you may need to obtain a recommendation from him too. Check your company policy.

    [Reply]

    raven Reply:

    Thank you Sir.

    [Reply]

  43. hi,
    i used to work for the biggest chain of malls here in the philippines. I resigned last oct 5, 2010. as company practice, replenishment of accrued/earned SL/VL is done every nov 1 of the current year (2010). However, since i resigned october 5, 2010, the employer refuses for grant me equivalent leave earned for my service for the period Nov 1,2009 – Oct 5,2010 because replenishment/release of new set of VL/SL was on Nov. 1, 2010. They said this has long been the company policy.
    I was not informed of such practice prior my resignation effectivity date. I’ve been asking them for a copy of the so-called “COMPANY POLICY”, but to-date, they cannot give me a documneted copy… all are verbal.
    Can the company forfeit whatever leave i should have earned? Can they implement it without approved written policy? Is this legal?

    [Reply]

  44. dearsir, ako po ay isang line leader dito sa epza cavite n garment industry,may masakit po akong karanasan dito ginawa nila akong sewer.ang unang dahilan po marami kaming order nung 2010 pero nung 2011 ay kumaunte ang order kaya nagbawas ng linya pinaupo ako bilang sewer ok lng nman po pero ng medyo tumatagal ay ginawa na akong pirmeneteng sewer at binago na nila ang aking posisyon pinapirma ako sa hindi ko alam kasi nakatakip ang folder at koreano p ang nagpapirma na iyon pala ay demotion daw pero wala naman silang batayan o ground para ako idemote ako.ok ln pa rin po sa akin na sewer na lng ako pero ang hindi ko po matanggap ay inalis nila ang 3000 piso na allowance ko buwan buwan masakit na nga po na ginawa akong sewer na walang basis inalis pa ang aking konting allowance bagsak po ang moral ko at pagkatao ko dito.sana po ay matulungan nyo po ako bale lima po kami na ganito ang karanasan.

    [Reply]

  45. Hi,

    I’m currently working in a call center as a team lead. Our client decided not to renew their contract with our company and it will end on Feb 25, 2011. As of the moment there’s still no account available for us to transfer. I just need to know, is it legal if the company will put us on a floating status without pay until we have an account to be transferred to?

    I need your help.
    Thanks!

    [Reply]

  46. Hi! just want to clarify something. I’m about to take my maternity leave on june 2011 however im concerned about our annual increase which was being given every month of july which was covered by my maternity leave. can i require my employer for the said increase since it was annual benefit given to us due to a yearly service we provide our company. i feel that i deserve to have it since i work for it and it just happen that the start of the annual increase was covered by my maternity leave. hope to here your advice before my leave. thank you…

    [Reply]

  47. Dear Sir Ted,

    In connection with my earlier message in June 2010 as the first person to ask about diminution of benefits, All employees signed a confirmation letter that we will have continuous year of service and will receive the same salaries and benefits which we used to enjoy in the new rep. office set-up .There are three remaining managers that used to enjoy executive check-up during annual physical exams in the company that ceased operations. As the managers were scheduled for APE this year, they found out that the package under the same HMO no longer has this executive check-up under the platinum plan and managers can only avail of regular routine check-up. Given reason is that due to the significant reduction of employees, the small headcount is no longer qualified under the old arrangement.

    1) Is this a form of diminution of benefits if after further discussions with the HMO, the executive check-up will be a special request with additional costs that the company opted not to give?

    [Reply]

  48. Hi Sir,

    Late 2009 our company was “merged” with another company. We used to have a 30% night differential rate. After the merger, our basic salary was increased but the night differential rate was lowered to 15%, along with the holiday rate. Is that considered diminution of benefits? Thank you!

    [Reply]

  49. confused agent Comment:
    March 26th, 2011 at 12:56 pm

    hello..I’ve been in our company for 3 years now. Last Thursday, they forced us to sign the “flexible work arrangement consent and waiver”. On that waiver,we will not be entitled to overtime pay (OT pay) for the extra hour/s in excess of eight (8hrs.)Accdg to my supervisor,ma-ooffset lang daw yung working hours namin. For example , i worked for 10 hours today, tomorrow,i will work for 6 hours na lang. Is it really legal? may law ba talaga na ganun sa LABOR? do we have the right para wag mag sign sa waiver na yun?please help!!

    [Reply]

  50. Sir,
    I’ve been working for a certain BPO company for more than six years. Recently, there was a company buy out and they changed the company name to the “new” company. They have informed us regarding the take-over but we did not sign any form of acceptance nor contract. There were lots of issues in the company including incentives, but it came to the point that I cannot agree with them anymore. Just this week, I(along with my colleagues whose been working with the company for more than 5 years) received a letter from the management that we are no longer eligible for annual increase because we reached the maximum salary. This provision was not given nor discussed to us even though we renew our contract every year. Does the principle of non-diminution of benefits cover this? What can we do about this? Should we go directly to the NLRC?

    Thank you in advance.

    [Reply]

  51. PinkPasta Sauce Comment:
    March 29th, 2011 at 06:05 am

    Dear Sir,

    I work for an IT company for the last 2 years. I was deployed in a project that has a graveyard schedule. Thus, I was given a shift meal and transportation allowance. Suddenly, come the last payroll, I wasn’t able to receive any. The company argues that there was no such policy and it was not included in the contract. Thus they stopped giving me the allowances.

    Is there a violation on the labor code?

    [Reply]

  52. hi who is the author of this post? i used it for my legal research. is it Sir Ted Ferrolino? thank you

    [Reply]

  53. john largo Comment:
    March 31st, 2011 at 08:57 am

    Last year our separation pay benefit was improved to 250% by way of board resolution. Our new set of board of directors reduced the said benefit to 100% reasoning our company is incurring losses. Can a mere board resolution diminished the benefit being enjoyed by the existing employees? Thank you.

    [Reply]

  54. hi, ever since i was employed, it is a long practice of our co. to give midyear bonus and effect cash conversion of unused leaves, unfortunately our employer would rationalize our benefits due to 2 yr loss: discontinue bonuses, and force leave usage instead of converting into cash equivalent at year-end, is it covered by the principle of non-diminution of benefits? What can we do about this? Anticipating for your earliest reply. Thank you very much

    [Reply]

  55. Sir, i signed a contract in 2006 where the salary is stated in monthly terms, e.g. PHP 10,000. And the succeeding annual contracts from 2007 till present stated that i will be paid an annual salary of PHP 120,000 but which includes already the 13th month pay. Hindi po ba ito violation ng principle of non-dimiunution kasi naging Php 9,230.76 na lang ang monthly compensation ko? Thank you.

    [Reply]

  56. Sir, I am working for 8 years as a faculty in an Educational Institution. When I had a position, I have been receiving an honorarium, the next year they took it away. I have been granted by our Brother a scholarship MA SPED, the following year the administration changed and told me that they will not pay for my scholarship if its MA Sped because according to them I might go abroad.I just accepted it thankful that i still have a job.They granted my daughter a 100% scholarship in tution fee since 2008. My daughter will be third yr now then they send me a letter telling me that it is 50% discount only without informing me. is this legal?because i read in the constitution that they cannot be reduced, diminished, discontinued or eliminated by the employer.”

    [Reply]

  57. Hi I just want to ask… my Dad is under contract with a multi-national company in Singapore. Then he was tranferred here in Manila, early this year, under the same company. However when they finally gave him his new contract, as he was being transferred to Manila, they lowered his basic salary as well as his food allowance. Is there a way we can refute this?

    [Reply]

  58. Catherine Comment:
    May 10th, 2011 at 05:11 pm

    Hi,

    Can you consider this case as diminution of benefits?

    I am working in NCR and receiving NCR rate in 2006. Mid 2006 I was transferred in the province (indefinite transfer). From 2006 to 2009 the company gave me wage increases as per the NCR wage increase (Wage increase as per NCR-12, 13 and 14). However, I was not given any increase last July 2010. Their reason is that I am now working in the province, thus I have to follow the minimum wage of that province. But they have been given me the NCR wage increase for 3 consecutive years. Please advice. Thanks a lot.

    Regards,

    Cathy

    [Reply]

  59. hi sir!i am presently employed as an hr officer of our company. we have an employee transferred to province. She received the following: basic pay 404/perday, position allowance-1,000.00. We have here computation for position allowance when it comes to provincial, minimum wage of province divided by the minimum wage of manila times 1,000.00. My question is if she were from manila and the position allowance she was currently receiving is Php 1,000, if we transferred her to province can we change her position allowance using our formula? If we change is this considered dimunition of benefits?

    [Reply]

  60. Hello. We have an existing benefit called housing allowance that is no longer applicable since the company no longer provides company staff houses. We want to discontinue this benefit altogether. The plan is to pay-out one to years worth of the allowance through a one-time lump sum payment and thereafter the practice will be discontinued. Will this still constitute dimunition? will appreciate your inputs.

    [Reply]

  61. I have been teaching in a private school for 18 years. Every month, our salary is deducted a certain amount for PERAA and our employer pays the same amount as their share. This is suppose to be our retirement benefit pay “daw”. But after retirement, we only get the amount that is equivalent to what they have deducted from our salary for so many years while the employer’s share is returned to the administration. The way I look at it, we don’t really get any retirement benefit at all because after all, we were also the one who paid for the retirement pay we receive. Is that fair? what can I do to correct this?

    [Reply]

  62. The company i was in, was in the industry for 30 years and we are enjoying P400 meal allowance but last 2008 we are bought by a huge company named “A” and making our company as a department only. Company “A” bought our company together with its employees(tenure)…. but after a year some changes was made on benefits (without any memo/writing only hearsay or instruction from finance dept., like meal allowance, from P400 to zero, for company “A” do not have such benefit, gas allowance also changes from receipt payment = cash to gas volume = cash (value provided by company)…. what can we do to bring this back just like before…. hoping for your comment. thank you

    [Reply]

  63. Gary Rodriguez Comment:
    May 31st, 2011 at 04:17 pm

    what will happen to the cba benefits of the losing union in certification election or if the union with lower cba benefits won the ce what will happen to the cba of the losing party.

    [Reply]

  64. Gary Rodriguez Comment:
    June 3rd, 2011 at 07:59 am

    if the union with lower cba benefits won in the certification election what will happen to the cba benefits of the other union?

    [Reply]

  65. Ian Larubis Comment:
    June 10th, 2011 at 07:09 pm

    is it legal to demote a regular employee due to her failure to commit her 8hrs services due to conflict schedule of her part-time work out side of the company? is it legal to base her salary in a per hour basis and per hr. rate but without losing all her benefits? Can she go back to her regular status? thank you.

    [Reply]

  66. Ellen Unio Comment:
    June 12th, 2011 at 02:27 pm

    Mag five years na akong teacher sa isang private school.Last 2 years 5 months contract ang pinapasign sa amin then another 5 months to complete the school year. The reason of this is para hindi kami makaclaim ng 13th month namin.Pwede po ba ito?Pag nagkocomplain kami sinasabi ng principal we have no rigth to claim our 13th month because 5 months lng contract namin hindi 12 months?Ano po ba ang tama?thank you and God bless

    [Reply]

  67. good afternoon sir,

    just to give some background re my problem:

    i filed a leave of absence for 2 days (date file May 16) for me to renew my motor registration but was advised to just give the OR/CR to my boss (thought they did not want me to be absent) then on May 31 i’ve learned that it was not been processed by our boss. so, i re-filed the said leave form and take leaves (june 1 & 2). my boss told me that it will not be paid because they did not approved it… is my boss have the right to disapproved the said leave? when in fact it has been file 2-weeks earlier and that i just refiled it because it’s already end-of May and i really have to renew my motor regisgtration.

    after the said incident i was immediately been relieved on my HR functions, from 43 hours work/week to 48 hrs/wk, and i was assigned to a far project site. i’m from imus, cavite (south) and they assigned me to redwoods project near SM fairview.

    my travel time really hurts – going to work takes more or less 4 hours and then going home more or less 5 hrs. – considering too that i am a single dad and my son (11 yrs old) who is left alone have to wait more time before i could go home and cook our dinner.

    what remedy could i ask to correct this harrasment? thanks.

    [Reply]

  68. heart O. Gilag Comment:
    July 4th, 2011 at 01:03 am

    Dear sir,

    I have been working for 5 years in a private educational institution in cavite. on my 2nd year of employment I have finished my masters and was re- ranked thus increasing my basic salary and overload rate (hourly rate) and I have been a regular employee since 2009. i pursued post graduate studies and earned doctoral units (12 units) in preparation for another re ranking. however this month when the results of the re ranking came, my salary and basic pay has been reduced by 35%. Di ko po kasi maintindihan, some of the employees who were re ranked , now have higher pay than they used to before they have their masters. ang explanation po kasi sa amin, pinantay pantay po yung salary belonging the same rank kasi meron na daw new bracketting in salary. legal po ba yun? sa contract po na na sign ko in 2009 for regularization wala naman po duon na state na it could change just like that. paano po ba gagawin ko?

    i hope you can find time to give me advice since the school im working is planning to let us all sign a new contract with the new rates. baka po pag hindi ko pirmahan, tanggalin ako sa work or give hard time. thank you and God bless.

    [Reply]

  69. dear sir:
    i am employed as regular in a private company and entitled to have a 15days vacation leave and 15days sick leave.. i filed my vl for 6days for an out of the country travel. my manger signed/approved it… but unfortunately i didn’t reach my commitment for that month. when the cut off period is over, my manager withdraws my official vacation leave.. she marks me absent instead of vl. is it appropriate/legal? if noot what kind of violation is this in the labor code?o
    ne more thing sir every time we file our vl she always have a condition in fact we are elligible to consume our vl..is there any violation for this matter?t
    hankyou so much…
    best regards…

    [Reply]

  70. dear sir:
    i am employed as regular in a private company and entitled to have a 15days vacation leave and 15days sick leave.. i filed my vl for 6days. my manger signed/approved it… but unfortunately i didn’t reach my commitment for that month. when the cut off period is over, my manager withdraws my official vacation leave.. she marks me absent instead of vl. is it appropriate/legal? if not what kind of violation is this in the labor code?
    one more thing sir every time we file our vl she always have a condition if we can not reach our quota or commitment she will mark as absent. is there any violation for this matter?
    thank you so much…
    best regards…

    [Reply]

  71. herald rentillo Comment:
    July 16th, 2011 at 10:58 pm

    sir, i am working here in carmona as an engineering staff/maintenance. we are on shifting schedule, day shift is from 7am to 7pm and night shift is from 7pm to 7am ganito po yung schedule namin ever since magsimula ng operation tong planta so we are receiving our basic salary plus 3hours overtime everyday. the overtime is also one of the reason bakit namin tinanggap yung work even though maliit ang rate namin tutal nakakadagdag nga yung o.t pay. ang kaso sir ngayon bigla bigla nag declare yung vp namin na tanggalin na yung o.t namin tapos iibahin din yung schedule namin. 3 lang kaming tao dito sa engineering,yung head namin at kaming dalawang staff. bale ang magiging sched namin eh yung head namin magiging 6am to 4pm ang pasok tapos yung day shift 12nn to 9pm tpos yung night shift eh 9pm to 6am. pwede po ba namin ireklamo ng non-diminution of benefits tong company namin dahil sa mga pagbabago sa schedule na gusto nilang mangyari at dun sa pagtatanggal ng o.t namin? thank you sir.

    [Reply]

    herald rentillo Reply:

    sir been waiting for your reply. thank you very much.

    [Reply]

  72. Cristy De Jesus Comment:
    July 18th, 2011 at 10:32 am

    Dear Sir:

    Our company has long been using 365 days for monthly paid employees. But some employees rates were computed on the basis of 313, due to the minimum wage law. Our management now is trying to accdg to them “correct” the computation of wages by using the 313 days for all monthly paid employees, and that special holidays will not be paid anymore.

    Will this be possible? Isn’t it classified as diminution of benefits?

    Thank you.

    [Reply]

  73. Good day Atty. Ted:

    I learned a lot from your answers here and I also have questions to ask you.

    I am working in an educational institute owned by a Korean national but in the SEC registration (for document purposes) it is mixed Filipino and Korean. The school is managed and controlled by a Korean.

    The school was established in 2006 using different name (SEC registration is different also) and in May 2011, the said school has been changed into another name but the management is still the same except for the additional HR department and staffs.

    There are more than 5 Tutors/Teachers who already worked for more than 2 years some have already reached 3 years. According the new HR director, the number of years in service of everybody will be back to zero.

    My question is, is it legal to do this practice which in fact the employment is continuous and they only changed the name. When the employees asked the HR about this they said because the company has been changed.

    The main reason why they want to make the year of service to zero is to avoid the 5 days sick and vacation leave incentive. SIL has been a practice already in the company since 2007 and the employees are already enjoying it.

    Another one:

    Under the new policy of the school, they required their tutor or teacher to have education degree or units in education. Not all old tutors or teachers have education degree but have served the company as tutors or teacher for a long time already. They want to lay them off and replace with other teachers with “education units or degree”.

    If those teachers or tutors are terminated, are they entitled of the separation pay?

    It is also unfair because the teachers or tutors they hired recently are not education graduate either.

    Please advise.

    Thank you.

    [Reply]

  74. Hi, I am pirated by the owner and CEO of a private company. Months after, his brother assumed the position and he retired from the company.. Now, we are run by a different president.

    I signed my probationary contract feb 2011. I was regularized days ago. They moved me to a different department under a newly hired department head. I am a project coordinator but my department head is letting me do works of an executive assistant on the majority. I attend meetings for him, do presentations for strategic planning, answer concerns of other department heads. I am unhappy with the situation. And i kept telling him in a joke that i am overpaid for the job he’s letting me do but he just smile.

    Now, it appears to me that this department head looks at me as really overpaid. He keeps saying he’s giving me a lot of works because if i will only be an executive assistant he can pay me less.

    Honestly, aside from the fact that i am forced to work with him because i need money though i am unhappy with the work he’s giving me, I am more concerned with the possibility of him recommending to the HRD that my salary be reduced. Can he do that? Is my salary not protected by any provisions of the labor code? I’ve been researching but can’t find answer to my question.

    Please help…

    Thank you…

    [Reply]

  75. hi sir,

    we’re currently proposing for a flexi work schedule and the draft of the agreement has been made. however, what was stated in there was that there will no longer be overtime pay for extended work hours except for saturday or holiday work.

    right now we are enjoying OT pay if we exceed beyond the minimum working requirements. Isn’t it a clear example of a diminution of benefits?

    [Reply]

  76. I was allowed to go on a leave for 6 months by my company. The first 3 months was paid because I was consuming my accumulated annual leave but the succeeding months are already unpaid. My monthly SSS, philhealth and pagibig are being paid by the company in the first 3 months but I do not know if this will be paid in my last 3 months, which is already an unpaid vacation. Please enlighten me on this as. I am planning to pay the monthly dues on the last 3 months if ever my company will not be paying for these. I am also not sure if voluntary payment will be allowed as I am still connected to my company.

    [Reply]

  77. Sir,

    Question po regarding revision of policies.

    Before, our company entitles us of 24 days paid leaves – regardless whether it be Sick Leave or Vacation leave. However, with the revision that was rolled out, we were told that those 24 days of leaves will only cover vacation leaves, meaning the leaves would need to be scheduled or requested a week prior. Unscheduled leaves such as sick leaves of less than 3 days and emergency leaves will no longer be paid.

    Is that legal?

    Please advise.

    Thanks!

    [Reply]

  78. sir,
    totoo po b na 3 years back ang claiming ng diminution of benefits, kahit matagal na namin sinasabi sa kanila ung problema? naka six years na po hindi namin natatanggap ung 15 VL & 15 SL namin. ni reduced nila into 7VL 5SL 3EL.
    please advise.
    thanks.

    [Reply]

  79. sir, i’ve been working in a private educational institution for almost 23 years until now, our employer is no longer giving us the encashment of vacation leave for almost 4 years now,will it be subjected to what we called ” diminution of benefits”? will there be any action that we can do to avail that encashment of Vacation Leave again? also, we do not have an increase in our Basic salary for the reason that our enrolment has decreased but the tuition fees increased, may we ask what is the legal basis of computation of salary increase in an educational institution particularly private school? thank you sir

    [Reply]

  80. Hi Sir,

    Meron akong staff na nagkasakit in which na hospitalize sya last year, nag file sya nang SSS Sickness claim, until now hindi pa rin na e process, in which yung isa kung staff yung application nya ay na forfeit dahil matagal na e file nang agency po namin. Ano po bang dapat naming gawin, in which sinumete po namin yung mga document after sa confinement nila in which isang taon na po ang nakaraan. Saan po ba kami pwedeng lumapit ano ang gagawin namin?

    Also isang staff ko rin nag file nang Paternity Leave, last year din po, tapos until now wala pa po xang natanggap.

    Also, may inquiry din po ako regarding po sa Tax, ang mag staff ko po ngayun nag simula po sila, September 2006, may deduction po sila nang Taxes, mahigit kumulang tag 500 plus every payday, tapos wala pa pala silang TIN no. Pwede po ba yun? Na makapag deduct sila nang TAX na wala pa naman TIN No. yung mga tao? ANg pinagtaka ko rin po hindi po sila nakatanggap nang TAX refund, diba yearly po yan dapat?

    Sana masagot po ninyo ang mga tanong ko.

    Salamat nang marami.

    [Reply]

  81. good day. gusto ko lang po sanang itanung kung pwede pa po ba kami magfile ng case para makuha namin ang money claims namin.nung june 15, 2011 lang po kami nagresign sa trabaho. ang longest year po sa trabaho ay 10 years at ang pinakamababa ay 5 years..may nabasa po kasi ako sa labor code na ganito. art. 291. money claims. – all money claims arising from employer-employee relations accruing during the effective of thus code shall be filed within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred. ano po kaya ang dapat naming gawin? sana po matugunan ninyo ang aking katanungan.salamat po

    [Reply]

    Ted Ferrolino Reply:

    You may file money claims with the National Labor Relations Commission. Kung marami ang complainants, maaring mai-consolidate ang lahat ng inyong complaints sa iisang kaso lamang.

    Article 291 speaks of prescription of claims. Under the said article, money claims beyond the 3-year prescriptive period is deemed barred. For example, if you are underpaid (i.e., your salary is below minimum wage), you can only claim salary differential up to 3-years back. Claims beyond 3 years is already barred.

    Art. 291 applies to claims for unpaid 13th month pay, overtime pay, rest day premium, holiday pay, etc.

    With respect to accumulated Service Incentive Leave, if applicable, the 3-year bar does not apply. In other words, you can claim your accumulated SIL from the start of your employment (not limited to 3 years).

    [Reply]

  82. our company have provided its employees a tax shield for about 8 years now. Employees have enjoyed a relatively bigger take home pay. Now, the company plans to remove this tax shield and now employees are now in danger of receiving a lower take home pay compared to the last 7 to 8 years.

    is the company act unlawful and would this be considered diminution of benefits ? tnx

    [Reply]

  83. Hi,our company’s BOD came up a board resolution stating that “only resigning employees are entitled to TRF (Termination Reserve Fund) benefits, e.g. disability, illness, reduction of personnel (based on performance appraisal and retirement -20 yrs of service).” and ” Resigning employees without cause maybe given a gratuity fee regardless of the number of years in service.” The board resolution dated August 1, 2011 and notarized Sept. 12, 2012. When in fact, it is stated in our company policy and guidelines that ” All regular employees are entitled to the TRF benefits upon separation, resignation or retirement.” This had been the company’s practice for years and now they came up with this resolution that contradicts with our present policy. Does the BOD can just implement such without consultation to the employees? Can we (employees) question this?

    [Reply]

    shiela Reply:

    irratum notarized september 12, 2011

    [Reply]

  84. dear sir,

    good day to you, my concern is this, we are a pcgg sequestered private company who are manage by government appointed board of directors, just recently a new set of board of directors and management took over and first thing they did upon assumption of office was discontinue all our allowances which we have already enjoying for a long period of time since President Cory Aquino Administration.

    Secondly, we have applied for early retirement but according to our new appointed President management can no longer grant separation pay and other retirement benefits because the company suffered financial losses during the previous administration.

    sir, can we file charges with the management regarding the above concern? if so, what provision in the labor code are violated by the management? can we go to the labor and file charges regarding our application for early retirement since the same is covered by R.A. No. 6683.
    sir please we really need your immediate response since we are suffering emotional stress already with our present situation.
    thank you very much sir. more power……….

    [Reply]

  85. Hi,

    May I get your opinion about this scenario?

    We were hit by the typhoon Pedring last Sept 27(Tuesday). The company did not declare suspension instead implemented the following conditions:

    1. If can go to the office and work, this is fine.
    2. If cannot report to the office but be able to work from home then file it as certificate of attendance.
    2. If cannot report to the office and cannot work from home then file it as emergency leave. The emergency leave in our company is deducted from employee’s vacation leave.

    I was wondering if #3 is a valid condition. It feels like work is still the priority even there’s a natural calamity.

    Please help me understand this situation better. I already escalated this to our managers butt hey insisted that the above conditions must be followed.

    Thank you in advance.

    [Reply]

  86. Before I was hired in the company I am in now. I was offered P 40k basic salary and P 11,000 worth of monthly cash benefits…
    However, when I already started working for here, I noticed in my payslip when computed I was only receiving a total of P 7,000 cash benefits per month. I asked the HR if it was a mistake on payslip and asked for adjustment but they told me that I was given the wrong benefits list which was for officer and not for rank and file.
    The problem is, I signed for the job because it was the benefits I expected. Also when I signed the contract the benefits list was an attachment to the contract and the benefits list page has my name and title written on it. Is there a law violation here?
    Thank you.

    [Reply]

  87. Hi Atty Ted!!
    I hope i’d be able to express myself accurately, so forgive me if this question seems a bit long.
    i work in a call center. i have a co-worker who applied for a higher position (from customer service representative to a Quality Analyst), was interviewed, processed, and was finally announced to have earned the position. An effective date was set by our HR for the promotion. However, before the effective date came, a “memo” was issued by the Finance department placing all promotions on hold. However, my co-worker has already started transitioning to his new position and has already began work as a Quality Analyst. 3 months have passed and his promotion is still on hold–he’s doing the duties and responsibilities of an Analyst but is still paid at a CSR’s rate. Isn’t there a law that because he has been promised the position already that our company must abide by that announcement, regardless of any “Financial considerations” which the company keeps throwing at my co-worker as an excuse? It just seems unfair that the company benefits from all his hard work and are not compensating him properly for it.

    Thank you.

    [Reply]

  88. Roland B. Reyes Comment:
    October 11th, 2011 at 10:58 am

    is the reduction of basic salary a violation of the labor law?

    [Reply]

    Ted Ferrolino Reply:

    Certainly, it is, unless the reduction is a result of a disciplinary action. Unjustified reduction of salary may even be tantamount to illegal termination.

    [Reply]

    Roland B. Reyes Reply:

    I want to make it more specific. This is my case: After almost a year of being hired as a Branch Accountant, my employer appointed me as Chief Accountant in June 2009. Since then, i was acting concurrently as the Branch Accountant and the Chief Accountant where i oversee the branches and prepare reports for the whole bank where i am working. As a consequence, they have given me increase in salary. As days, weeks and months passed, i felt that acting concurrently in two positions wasn’t appropriate as it would really be difficult to have pressures from different heads. This as the case, i wrote the Head of HR and suggested that they hire a full time Chief Accountant and so they did. Surprisingly, his salary is higher than mine if you i have to compare it when i was still occupying two positions. This isn’t an issue to me at all. As a result of the separation of the my role as branch accountant and chief accountant, my basic salary was adjusted to the branch accountant level. I want to know if the non-dimunition law applies here and or or if it violates the phil. labor law. If it does, what particular provision of the labor code applies here.

    Thank you.

    [Reply]

    Roland B. Reyes Reply:

    I want to make it more specific. This is my case: After almost a year of being hired as a Branch Accountant, my employer appointed me as Chief Accountant in June 2009. Since then, i was acting concurrently as the Branch Accountant and the Chief Accountant where i oversee the branches and prepare reports for the branch and bank as a whole.As a consequence, they have given me increase in salary. As days, weeks and months passed, i felt that acting concurrently in two positions wasn’t appropriate as it would really be difficult to have pressures from different heads. This as the case, i wrote the Head of HR and suggested that they hire a full time Chief Accountant and so they did. Surprisingly, his salary is higher than mine if you i have to compare it when i was still occupying two positions. This (his higher salary) isn’t an issue to me at all.

    This one is more relevant to me: As a result of the separation of my role as branch accountant and chief accountant, my basic salary was diminished by them. I want to know if the non-diminution law applies here and or if it violates the phil. labor law. If it does, what particular provision of the labor code applies here?

    Thank you.

    [Reply]

    me mob Reply:

    It seems that your salary increase was a result of, and conditioned upon, your appointment in two concurrent positions. If so, it seems only fair that you revert back to your usual salary as branch accountant upon the withdrawal of your appointment as chief account.

    [Reply]

  89. Roland B. Reyes Comment:
    October 11th, 2011 at 11:05 am

    please answer.

    [Reply]

  90. Good day! I just want to ask something regarding diminution of benefits. Every year, our company is giving us Profit Sharing, which depends on how much our earned income was. It started last 2006. But this year 2011, we did not receive any PS from the company. we usually receive it every May, but up to now we are still hoping we will receive it, knowing that we had earned (at least Php200,000)from the last year’s income. My officemate had the guts of asking our SVP regarding it as she is from Accounting Dept and knows that we really had a share. But the SVP said that “they (management) STOPPED it na”.

    Is this a diminution of benefits? Was it legal to just say that they stopped it na without even telling to the employees (who are still hoping) the reason?

    hoping for your reply. thanks

    [Reply]

  91. Dear Sir,

    I would like to ask for some opinion regarding leave without pay:

    1. If employee plans to avail leave without pay for 2 months, how will the bonuses be affected? (ex. how do we compute for the 13 month pay and mid year bonus)

    2. If an employee is a nominee for service award for serving the company for 5 years but availed of the leave without pay in his 5th year, is he entitled to receive the award?

    Hoping to hear from you soon. Thank you very much.

    [Reply]

  92. Dear Sir,

    I would like to ask for some opinion regarding leave without pay:

    1. If employee plans to avail leave without pay for 2 months, how will the bonuses be affected? (ex. how do we compute for the 13 month pay and mid year bonus)

    2. If an employee is a nominee for service award for serving the company for 5 years but availed of the leave without pay in his 5th year, is he entitled to receive the award? – by the way, the employee availed of leave without pay for 2 months

    Hoping to hear from you soon. Thank you very much.

    [Reply]

    Ted Ferrolino Reply:

    1. 13th month pay is directly proportional to your basic salary earned during the year. If you avail of leave without pay for two months, your basic salary earned will decrease. Hence, your 13th month pay will also decrease.
    2. You need to consult your HR on this.

    [Reply]

  93. Sir,
    Good day!
    I’d like to seek an advise. I’ve been working as Customer Service & Sales Rep(BPO) for 5 yrs & 5mos already. For that span of time, the company did not gave us any vacation leave, maternity leave, sick leave & holiday pay. Is this legal? Another thing, during my maternity leave I only get a benefit from SSS and the company did not gave me any single cent during may 60days leave. Can I get claims on the 60 days maternity leave from the company aside from what I get from SSS? Also, is it legal to reduce our number of days work and pay us on a daily basis? I work 5 days a week with 2 days off. I am hoping for your reply. Thank you!!!

    [Reply]

    Ted Ferrolino Reply:

    1. Maternity leave, 5 days service incentive leave, and holiday pay are all mandatory. It is illegal not to give the employees these mandatory benefits.
    2. SSS shoulders the payment of maternity benefits. But the procedure is that the payment is to be initially advanced by the employer, subject to immediate reimbursement by SSS. No, there is no other maternity benefits aside from SSS maternity benefits (unless your company policy or employment contract provides other benefits).
    3. Your company may have adopted a compress workweek scheme, where the number of work days is reduced but the total work hours in a week remains the same. This is legal as along as the requirements for its implementation are complied with.
    One of the requirements is that the employees must have voluntarily agreed to such scheme. Also, there should be no reduction in the salary or benefits of employees.

    [Reply]

  94. good day!
    ako po ay isang foreman painter sa dati kong kumpanya. kami po ay engaged sa operation na open water theme park at beach ang resort hotel. yong sa amin po kumbaga ay in-house. na hire po ako noong jan.15,2009 at nagtrabaho hanggang april 15,2009. naextend po ako ng 3 months from april 16,2009 to july 16,2009. na extend po ulit ako ng july 17,2009 to october 17,2009. nung october 18,2009 naextend po ulit ako at ang nakalagay po sa aking kontrata ay ganito “until such time as your services required”. ako po ay nadismiss noong august 8, 2011. ako po ay pumipirma ng kontrata bawat extension. nung july 8,2011 kami po ay pinapirma ng management ng interoffice memo na terminate of services. pero wala nman pong nakalagay kung bakit. balak po sana naming magfile ng case ng illegal dismissal sa nlrc. meron po ba kaming laban sa kaso kahit na kami ay project employees lamang?sana po ay matulungan nyo ako sa aking katanungan.umaasa po ako sa inyong reply. salamat po.

    [Reply]

  95. Hi, I am working po sa isang manufacturing company. And lately lang po y may pinalabas ang HR Dept namin na memo saying na yung overtime namin ay magiging overstay po (overstay rate = reg days max of 5hrs Php275 , holiday/restday max of 8hrs Php500) yan po yung magiging rate ng overstay.. tapos yung night premium at night differential ay mawawala din.. ano po bang labor code ang na violate ng kompanya namin.

    [Reply]

    John Reply:

    Tsaka may overstay ba talaga? Anong article ba ng labor code na nagsasaad na overstay yung matatanggap mo pag nag excess ka ng 8 hours of work?

    [Reply]

  96. For the past 10 years, our company has been converting unused leaves to cash at the end of the fiscal year. This year, we are receiving pressure from management to use up all our leaves as a way to defray costs as we have been told that there will be no cash conversion next year. Is this legal?

    [Reply]

  97. Hi atty,

    I am an HR Practitioner and right now, I am troubled with one of the employee’s situation. He was originally from the province and was relocated in Manila a year ago. As a result, his basic pay increased and other benefits like housing allowances were given. After a year, the employee came back in the Province and was permitted. Unfortunately our COO would like to remove his other benefits from being relocated back in the province. She (the COO) also would like his basic salary to be back to provincial rate. Aside from that, some of the employee’s benefits shall be removed. Is this considered as a diminution of his pay?

    [Reply]

  98. Hi Sir,

    I am an HR Practitioner and right now, I am troubled with one of the employee’s situation. He was originally from the province and was relocated in Manila a year ago. As a result, his basic pay increased and other benefits like housing allowances were given. After a year, the employee came back in the Province and was permitted. Unfortunately our President would like to remove his other benefits from being relocated back in the province. She (the President) also would like his basic salary to be back to provincial rate. Aside from that, some of the employee’s benefits shall be removed. Is this considered as a diminution of his pay?

    [Reply]

  99. sir ganito po kasi ang situation namin, ang sabi s amin nung una, n kapag na assign ang employee outside Nueva Ecija e my allowance ng 3000 monthly, sa ngaun po hindi un nasunod sa case ko dahil daw taga san jose city lang aq tapos maassign ako sa umingan pangasinan, 1hr.travel away. so binigyan aq ng allowance n 70/day lang,so mga 11 months ko napo i2ng natatanggap, pagkatapos po ngaun 35/day nlng dw po ang ibibigay sa akin bilang traveling allowance ko.. legal po ba ang gnitong mga desisyon nla? or non-diminution of benefit din po ito? maraming mga kasamahan ko po kasi ang nakakaexperience nito ngaun at gusto po namin malaman kung my karapatan kming magreklamo tungkol dito.. salamat po

    [Reply]

    Ted Ferrolino Reply:

    Ang transportation allowance ay maituturing the “supplements” (extra remuneration or benefit over and above the employee’s basic compensation). Ang pagbabawas nito ay maituturing na diminution of benefits.

    [Reply]

  100. Sir Ted,

    Tanong ko lang po considered po bang diminution of benefits pag yung dating leave benefits mo ay nabawasan from 30(SL/VL) to 24. Dati po kasi under kami ng TSDP (Toshiba) pero last October we became TIP(Toshiba din). Bale po sister company ng TSDP at TIP. Magkaiba po sila ng benefits.Sa TSDP, 15SL, 15VL. Sa TIP 12lang both. Nung nag-integrate yung dalawang company at naging TIP na ung TSDP ang na-adopt na policy for benefits ay yung sa TIP which is mas mababa. Isa pa po yung computation namin ng daily rate ay naiba. Sa TSDP dati ang computation po ay Monthly rate divided by 24. Pero po sa TIP monthly rate divided by 26.17. Sabi po nila yung 26.17 ay conversion factor. Saganitong computation po lumiit tulo daily rate namin. Diminution po ba itong maituturing?

    [Reply]

    Ted Ferrolino Reply:

    Yes. The employees formerly under TSDP should continue to receive at least the same benefits they used to have before the integration, or higher. Else, there would be diminution of benefits.

    [Reply]

    Ed Borromeo Reply:

    Sir Ted,

    What if TIP insisted that since we are already under TIP mandate their policy for benefits should be followed? What course of action should I apply? I am worried that if I continue to bring up this issue to TIP, they might take things personally against me. Do I have a valid argument here in case I bring this up to higher management? Please advice me sir.

    [Reply]

  101. Do my maternity leave may affect the computations of my 13th month pay?

    [Reply]

    Ted Ferrolino Reply:

    Maternity benefit is not included in the computation of 13th month pay.

    [Reply]

  102. Good day sir,
    I’m working in a BPO company which was just established last September 2010… I was hired last December 2010 for an entry level position and in the span of 9 months I was promoted to a position which is 2 ranks higher than my previous post.. and since I was promoted my salary increased by 22%… But after my promotion, the company decided to give an appraisal based on performance.. my leaders conducted an assessment based on a 5-point scale… I got an overall rating of 4 which corresponds to a 10% merit increase but upon the implementation of the said appraisal, I found out that I didn’t get any increase at all… I reached out to our HR department and here’s what they told me: “in view of your promotion which entitled you for a 22% salary increase you are no longer qualified to have the merit increase since you already go beyond the 15% increase threshold, meaning the said amount of increase on your promotion already incorporate your supposed merit increase”…. Which I think is not fair, since the assessment and appraisal they evaluated is based in my previous performance and not with my new position…. At the same time, aren’t they really supposed to increase my salary if I’m promoted?

    I just really need some clarification regarding this… I want to know if they violated any of my rights as an enployee…. I will appreciate your immediate response…. Thank you in advance and God bless…..

    [Reply]

    Ted Ferrolino Reply:

    It’s a company mandated increase, as opposed to legally mandated increase. What you may do is check whether the implementation of the increase is in accordance with the policy that govern such increase. In particular, you may check whether or not the “15% increase threshold” is properly applied to your case.
    Bottom line, you can only say that your legal right is violated if the policy (15% threshold) has not been correctly applied to your case. You cannot question it based only on any perceived “unfairness”. The making of a company policy is strictly management prerogative. Fair or not, it is hard to question the logic behind it.

    [Reply]

  103. Ted Ferrolino Comment:
    November 17th, 2011 at 06:14 pm

    It’s a company mandated increase, as opposed to legally mandated increase. What you may do is check whether the implementation of the increase is in accordance with the policy that govern such increase. In particular, you may check whether or not the “15% increase threshold” is properly applied to your case.

    Bottom line, you can only say that your legal right is violated if the policy (15% threshold) has not been correctly applied to your case. You cannot question it based only on any perceived “unfairness”. The making of a company policy is strictly management prerogative. Fair or not, it is hard to question the logic behind it.

    [Reply]

    tracey Reply:

    Thank you sir…

    [Reply]

  104. nagstart po ako magwork sa bpo company nung feb, 2010 po. 2days before ng regularization ko naterminate ako.2hours after ng shift ko pinasign ako na di ko nameet yung standard ng company.sabi ng manager at supervisor ko irerecommend nila ako sa ibang account.wla pang isang week after ako naterminate nagreaaply nako kahit wla pang recommenndation yung dati kong boss.sabi sa hr ireretract nila termination ko gagagwin nalang regularization so that day nahire ako after 1 week meron nakong bagong account na pinasukan.after 6months march 2011 na yun ineexpect ko na my increase ako kasi lahat ng kasabayan ko na nahire nagkaron na ng increase.pumunta ako sa hr kasi sabi d daw nila alam kung increase ng 6months daw ba ibbigay sakin o 1yr kasi naretract naman termination ko non.nalipat ako ng ibang supervisor kaya yung dating supervisor ko na naghahandle ng p.a ko pinasa niya nalang sa next supervisor ko kung sino daw current supervisor ko siya daw dapat magprocess ng p.a ko… after 3 months na nagstay ako sa 2nd supervisor ko nalipat ulit ako sa pang 3rd na supervisor at nagstart ako ng april sa team niya tinatanong ko p.a ko kaso sabi niya wla pa daw approval.pumunta ulit ako sa hr at sabi kelangan na iprocess p.a ko kasi 1 yr 8mos nako sa company.lahat ng mga supervisor ko nagpass na ng mga requirements para sa p.a ko approval nalang yung hinihintay…tas ngayong november nagkaron ako ng rude call sabi ng supervisor ko d daw sure na mabibigay yung p.a dahilan dun. fair po ba yun na sa loob ng pag stay ko sa company na yun for 1yr 9months na nagaantay ng p.a ko tas pagdating ngayong november d ko nameet company standard ihohold na nila lahat ng pinaghirapan ko? isa rin pong reason na nawawalan ako ng gana na nakakababa ng morale e kahit maliit na increase d manlang nila maibigay.

    [Reply]

  105. Marilou Geremillo Comment:
    November 25th, 2011 at 11:33 am

    I worked with a foreign Company but locally based here in Philippines.

    I would like to ask regarding 13th month computation.

    To protect our salary to be exempt from taxes, half of it was considered allowance. My question is: even though the half salary is considered allowance, sa computation ba ng 13th included siya lahat?

    [Reply]

  106. Sir,

    I am working in a manufacturing company for the past 10 years. And for the past 9 years, all those regular holidays falling on Sunday are being paid by my employer. And starting this year, without informing us, they just stop paying us the extra pay for the regular holiday falling on Sunday. They said that it is already paid. The computation of our estimated equivalent monthly rate (EEMR) is 314 days.

    Can we consider it as diminution of benefits? I hope you can enlighten me about this case.

    [Reply]

  107. Dear Sir:

    When I first joined the company in 2004, they gave me a very good foreign HMO with higher medical coverage. After 4 years, they moved me to a local HMO with limited coverage. Does this constitute diminution of benefits? Can I still exert my right to the previous HMO?

    Appreciate your reply. God bless.

    [Reply]

  108. Sir,

    Im working right now in one of the private institution here in cebu..last Dec. 16, 2010 I was then appointed as regular employee…but suddenly this December of 2011..the management reduces my basic salary for P800plus..the reason behind..they miscalculated my salary kasi na distorted poh daw yung salary scale nila..Does it right? Till now im waiting for my new appointment basic salary contract…I havent signed yet..Hope I can read your reply in my email..

    Thank you very much..Im really happy to see your column here.

    [Reply]

  109. Sir, I’d like to ask to which labor code I should refer with regards to my case.

    I just received my small salary today and verified it with our accounting office. They said it was a result of my deductions due to absences. But the absences were dated way back 2nd half of september and october. I understand that I have to be deducted but I believe they would have to deduct me on the time when my salary for those dates were released. For the absences during the 2nd half of september they should have deducted me on the first half of october, and for the absemces during the second half of october they should have deducted me on the first half of november. What they did was deduct the september and october absences at the same time during december 15 salary. My question: Is there a certain Code or Law that provides that pay rolls be submitted real time and that deductions like in my case be prohibited or illegal?

    [Reply]

    Nash Reply:

    my case in a summary – delayed bulk of deductions because of delayed submission of deduction reports from the HR to the Accounting office.

    [Reply]

  110. sir,i texted my boss that i cant come to work last dec 14,dec 15 i went to the office and before our 9’00 pm shift i asked my manager permission to to home due to emergency reasons,and he answered “ok” and i am on vacation leave dated dec 16 2011..our cut off is every 15th and 30th of the month..yesterday i heard from my supervisor that my 22nd salary is onhold by my manager..
    is this legal?

    thanks,nic

    [Reply]

  111. sir,my husband is working in a telecommunication company,their 13th moth pay was been hold due to some penalties given by the management.their reason was,they need to pay the penalty amounting of 120,0000.00 they need to deduct from their salary and from their 13th month pay..my question is is it legal to hold salaries and bonuses in this kind of problem,one more thing was they let them sign an aggrement na labag sa kalooban nila that they need to pay earlier and not later this year,that grounded incident was been done twice it was not them ang unang gumawa, pangalawa lang sila kya naging second offense na yun tama po ba na sila ang tumanggap ng kaparusahan,di po ba kelangan pa ng verbal at written warning bago patawan ng ganoong parusa.at isa pa and nakalagay sa letter ang mag so shoulder ng penalties amounting 120,000.00 pesos was the management pero ang ginawa ay sila po ang pinagbayad tama po ba ito?me habol pa po ba kami sa 13th month pay nila?

    [Reply]

  112. our company is a Chinese company. it employs 90% chinese nationals, and around 10% Filipinos. For the year 2011 all Chinese holidays were implemented both for Chinese and Filipinos, while Philippine Holidays were implemented only for Filipinos. This coming 2012, management has decided to implement chinese holidays only to chinese employees, and Philippine Holidays to Filipinos. Meaning Filipino employees will not anymore enjoy and spend time-off during Chinese Holidays. Is this a violation of the non-diminution clause of the labor code? thanks

    [Reply]

  113. Hello!I have some inquiries,The basis of our MBL is seniority level not performance evaluation. Managerial and Supervisory are enjoying the highest MBL from Health Maintenance Org.Some of the managers who benefited were not already connected with the company but the positions still exist. My point is that, whatever benefit they got from HMO before should be given also to the persons who occupied their positions. What happened now is that, some of the new managers and supervisors have lower MBL from our current HMO than the other managerial before. No conflict with the rank and file, only to those who have higher positions. Are we violating the Labor Code (Non-diminution of Benefit?

    [Reply]

  114. Sir:

    “To ripen into benefits, the following requisites must concur:
    – “It should have been practiced over a long period of time; and
    – “It must be shown to have been consistent and deliberate”

    Does “a long period of time” mean an absolute length of time, or can it be proportional to the length of time the company existed? The company I’m working for is less than a year old. Our employer is threatening to remove benefits that existed since the company’s inception, and that is being given regularly and deliberately.

    [Reply]

  115. carl dave ang Comment:
    January 12th, 2012 at 02:06 am

    hello sir, just want to ask.. is there a law na nag babawal sa mga employer na magbigay ng sahod lagpas na sa pay date? like, dapat sana sa 15th of the month pero sa 16 na ibingay ng company,., thanks

    [Reply]

  116. Manuel L. Fajardo Comment:
    January 13th, 2012 at 12:21 am

    Dear Sir,
    Paano po ang gawin ngayon na pinaretire na ako ng aking emplyer. Makuha ko ba balik iyn contribution ko sa pagibig funds?

    [Reply]

  117. Sir,
    I work in a private company. The company reimburses our parking fee since we transferred office around 2 years ago. In our previous office, the parking is free. However, the management is thinking of discontinuing this as a cost saving measure, saying that this is not a benefit as this is not enjoyed by all employees and is not in our company handbook.
    If they discontinue paying our parking fee, can this be considered as diminution of benefits?
    thank you.

    [Reply]

  118. I work in a private company. Our company pays for our parking in the form of a reimbursement since we transferred office some 2 years ago. In our previous office we dont pay parking as it is free. Now the comapny is thinking of discontinuing the reimbursement of parking in efforts to save on cost. They claimed that they can do it as this is not a benefit as not all employees are enjoying it and its not in our employee handbook. Can they do this? Will this not be considered as diminution of benefit? Thank you

    [Reply]

  119. For almost five years, I have enjoyed full conversion of unused service incentive leaves(VL & SL),and so are my co-employees who have been employed more than 20 years already..Early this January, our franchisee decided during our meeting, when we made a follow-up on the payment of the conversion, that all unused vacation leaves must be used or added to the 2012 vl benefits and will not be commutable to cash anymore,only the unused sick leave benefit….Is this right?

    [Reply]

  120. Sir,
    My company allowed me to “borrow” the leave credits from 2012 due to family problem. Now, I have consumed it all, whenever I need to go on leave, it will be tagged as NO PAY. However, instead of just no work no pay setup, they impose a rule on me stating that if I will be away for a day or two, it will be a NO PAY leave worth 5 days already. Would this constitutes diminution of my benefits already?

    We have NO PAY option in our handbook and is easily granted to expatriates. Surprisingly, this setup is not applied to a local stating my case is “special” Isnt that discrimination too?. Pls advice

    [Reply]

  121. Sir, i hope you can reply about my above concern. My company provided parking for employees in consideration of the transfer of office location. On our previous office, we dont pay parking as it is for free. However, when we transferred to our new office, there’s a parking. The company has ben reimbursing it since we transferred office some two years ago. Now they have discontinued it. Can this be considred as diminution of benefit even if this is not in our handbook and this is not enjoyed by all employees? Thank you sir. We really need your help. Hope you can reply.

    [Reply]

  122. Company benefits include a total of vacation leave of 16 days valid til March of the following year and if unused becomes forfeited. I still have 7 unused leave credits from the previous year however application for vacation is being declined due to staffing issue thus limitation of available vacation slots per day. Since I earned this vacation leaves, does it become my right? And if I cannot avail of them, is it a violation of this article?

    [Reply]

  123. I am working in a hotel right under the maintenance department. We have been receiving Service Charge for the past 12 months. But management has recently remove Service Charge and then adopted a new incentive scheme based on savings from projects. Can this be considered as dimunition of benefits

    [Reply]

  124. alex a. moneva Comment:
    January 25th, 2012 at 12:09 pm

    Sir,

    Good day!

    Our company just released a policy on Tardiness. The allowance of 2 hours enjoyed by some employees at certain level up to managerial has been deleted.

    Just would like to ask your opinion if this does not tantamount to diminution of benefits.

    [Reply]

  125. good day po. gusto ko lang po sanang malaman kung liable po ang ang isang court appointed manager na bayaran ang aming money claims? sya din po ang nag dismissed sa amin…co-owner din po sya ng resort na dati naming pinagtrabahuhan…pls reply po…tnx

    [Reply]

  126. i do have a question but i dont know if this is a proper forum. anyway, here is my question: is late payment of salary a violation of labor code?

    i have experiencing that im my stay in the company and i am disgusted on how the company treat the employees about the wage .

    [Reply]

  127. Sir,
    Ang aming pong company since 2001 ay nagbigay ng benefits na meal subsidy nag kahalaga ng Php 106 ang total cost ngunit noong July 2010 ay binawasan nila ang ang halaga sa Php 75.00 nalang. Hindi ba ito paglabag sa article 100 of Labor code. Hangang ngayon ay nakafile pa sa Regional Office ng NCMB for Voluntary Arbitration na ayaw ng company na maresolve sa ganitong para-an. Ang gusto nila na isubmit nalang sa CBA negotiation na aywa namin…Sa yingin mo kaya maipanalo kay namin ang kasong ito sa NCMB…Please tulongan mo po kami kong ano ang tamang paraan para maibalik sa amin ang dating benefits namin na matagal na naming natanggap…Salamat po.

    [Reply]

  128. reginald manalese Comment:
    February 9th, 2012 at 07:43 pm

    Hi,

    I would like to ask if 15 minute break is part of non-diminution of benefits.

    Currently, we are enjoying 15 minute break, one in the morning and another one in the afternoon. The law is silent about this, and our current HR wants to abolish the 15 minute break we enjoy.

    Is it legal to abolish 15 minute break in our new company policy?

    Or is this covered also by non-diminution of benefits and therefore, cannot be abolish by new company policy.

    [Reply]

  129. Hi Atty.

    I just came across your site while I was browsing on the non-diminution of benefits. I read all the comments, and would like to reiterate a previously posted question from last November. I believe I am currently in the same scenario as Diana.

    “For the past 10 years, our company has been converting unused leaves to cash at the end of the fiscal year. This year, we are receiving pressure from management to use up all our leaves as a way to defray costs as we have been told that there will be no cash conversion next year. Is this legal?”

    Most of our employees are clueless, and are now using up their earned leaves, as per mandate even if already have plans for the anticipated incentives.

    Thank you.

    [Reply]

  130. Mark Atienza Comment:
    February 15th, 2012 at 03:47 pm

    I have a question concerning my salary. I have been requested to submit “notice to explain” by the Human Resource of our company about the alleged “habitual tardiness” which I was not able to submit on timely manner. I’m expecting to receive my salary on the 15th of this month (February 2012) but to my surprise they hold it. My question is, do they have the right to hold my salary for not submitting the requested “notice to explain?” Was it legal? What possible legal action I need to do in case they have violated our labor code?

    Thank you very much.

    [Reply]

  131. Sir,
    I am a LGU employee, last payday we discovered that our pay was
    decreased, upon inquiring we discovered that our taxes paid
    Increased compared to the previous 8 years. Our
    Accountant told us that they have been computing the
    taxes wrong for the past years. And we have to pay for this error.
    Is this true that we have to pay for their negligence?

    [Reply]

  132. Hi Atty.

    Does the diminution of benefit rule apply to executives as well? Thanks!

    [Reply]

  133. I’m new in the company and may practice po sila na if you’re late beyond the allowed grace period of 10 mins, and the department you belong rank top one sa overall dami ng number of late within the company, aside from such late is deducted in your salary, may deduction pa na sasagutin ang food every mancom meeting. Ang mga empleyado takot magreklamo pero aminado sila na hirap sila sa practice na ito. Please advise.

    [Reply]

  134. Hello,

    I’ve been working with a company for the past 3 years and during that time, we’re being given 20% of Night Differential and P2,500 worth of transportation allowance which was part of the contract I assigned when I was hired. We were recently informed that the company plans to deduct the Night Diff to 15% and transportation allowance to P1,500 but the excess ( 5% Night Diff and P1,000 transpo ) will be added to our basic salary ( which will in result be taxable ). Is this possible? Does this cover the diminution of benefits?

    Thank you and I hope to get your quick response.

    Sincerely,
    Lhai

    [Reply]

  135. dear sir, ` matagal na akong namamasukan sa isang kumpanya,lahat ng manggagawa pag na regular ay kinakaltasan ng saving,sa semi monthly po ay 600 hundred amonth sa rank @ file ay 300 a month pero di mo pedi ewidraw ang saving mo,kailangan daw mag resign muna para makuha ang saving,,tama po ba ang management,,,,,sana matulungan mo po kami

    [Reply]

  136. ask ko lang po kung ano ang guidlines para sa emergency leave? maraming salamat po!

    [Reply]

  137. We only have 5 day vacation and sick leave all in all. I work in a private academy. Is it legal to have only 5 days of vacation and sick leave?

    [Reply]

  138. Hi,
    Our company have created a new company and some employees where transferred. In the old company, we have an insurance coverage that includes maternity benefits of say Php 5,000. With the new company, we have changed this and removed the maternity coverage.
    Kindly advise if this is classified of dimunition of benefits. We are still covered by insurance but one of the benefit from old to new has been changed.

    [Reply]

    Ted Ferrolino Reply:

    It’s best to consult your lawyer. There will be legal issues that you will have to work out when transferring employees from one company to another (or from old to new).

    [Reply]

  139. Hi Sir!

    Thank you for a very informative blog.

    Just the other day my Wife’s company has instituted a rule that the employees will have to bear the cost of their lapses and for those in sales, if client is not able to pay, they will be charged for it by not giving them the yearly Tax re-imbursements and other yearly bonuses.

    Is this right that the employees be charged for company’s losses? Specifically on clients who are not able to pay? This new policy is simply disgusting, anti-employees, demoralizing for employees that my wife decided to come to work today.

    What should be the correct response to this policy? What are the employees options against this seemingly immoral policy?

    [Reply]

  140. sir, i been working as nursing aide for seven years already and my other colleague in a private secondary hospital here in eastern visayas. they have different reason why they cannot hire us as regular workers. there reasons are losing, cannot afford, and additional regular worker. is this a valid reason for a institution not to hire us? we are being hired 7 years ago without signing any contract, because they are in need. secondly what legal actions you can advise us to do so. can they terminate us easily if they want to.? anu po ba ang laban namin kong sakaling tanggalin kami nang walang dahilan.at kong hindi kami gawing regular workers? myron po bang cola ang casual workers or contractual?need your reply po sir.salamat

    [Reply]

  141. Hi Sir Ted,

    I was advised by company employee services that the gas and car maintenance allowance that I have been receiving for the past 9 month since I started was a mistake….

    From the very start, I have no idea that this is not included on my benefits. I thought its automatic since I had this parking privilege as an officer and I just started receiving it on my first pay until now.

    just last week company employee services called me up to inform that such benefits are for higher management levels only and was an audit finding that I had been receiving it.

    much bad news is that they wanted me to pay back the total that was given to me from the start which will be deducted to my monthly salary and I need to settle it in less than six months.

    my question is; can this be considered a diminution of benefits? do I need to pay back everything in their terms? do I need to suffer for the mistake I didnt commit?

    I really needed your advise sir Ted. Alam naman ng lahat na mahirap ang buhay ngayon…tapos pagbabayarin ako sa hindi ko kasalanan. Let me know kng may laban ako pag nag seek ako ng legal actions on my case. Thank you!!

    I wish this allowance not to be removed since I been used to receiving it for 9 continuous months already…

    [Reply]

  142. sir,

    what if there was a merger, is it legal that the benefits receive by the original employees of surviving corporation be different from the benefits of absorbed employees?

    [Reply]

  143. Hi Sir Ted,
    Good Day. Sir gusto ko lang po magtanong kung may habol pa po ba ako sa hindi binigay sa akin na wage increase and bonus ng 2009 dahilan po na naka-Maternity leave po ako? May Wage Order po ba ang 2009? Regular Employee po ako and working for 6 yrs. Tama po ba na dapat iRetro-active nila ang basic salary ko po n nawala hanggang sa taon na ito 2012. Please Help me. Waiting for your reply..

    [Reply]

  144. Hi Sir,

    Question po, our company was acquired by another company 3 years ago, we still carry the old company name but there are changes in policy and structure already. There is news that this year change of company name will be implemented, meaning we will use the acquisitors name already.

    My questions is, will we get paid for the change of company name?

    I hope you can answer my quesry sir. thank you

    [Reply]

    me mob Reply:

    No, unless the changes result in termination of employment, or interruption of service.

    [Reply]

  145. Dear Sir,

    My company is now forcing their employees to go home unpaid when they have not reached the target goal for resolution (number of calls resolved). Sometimes the employees are asked to go home about 10-15 minutes after they just logged in. Sometimes they do it after 4 hours through the shift. They can do this everyday as long as you do not meet the required goal.

    The employees are paid on a per-hour basis so this means that they will only be paid very little on those days and will hardly get anything on payday. Does this violate Article 100? Thank you.

    [Reply]

  146. Sir,

    I would just like to ask if there is any bereavement leave mandated by the law or any existing law about bereavement leave.

    Thank you

    [Reply]

    Ted Ferrolino Reply:

    There’s no legally mandated bereavement leave at present. You may use your service incentive leave instead, if not yet exhausted.

    [Reply]

  147. Hi Sir,

    Questions regarding Annual Performance Bonus. I am currently rendering my 30 days notice to my company and this month is the releasing of our Annual Performance Bonus. Since I am already rendering my 30 days, the management has decided not to release or give my annual performance bonus. Is this legal or can I demand that they release my bonus?

    Thank you.

    [Reply]

  148. This is regarding Phil holiday…This is the situation: We are a BPO company, we are rendering support to US, we are following US holidays, now there’s a new company policy that if it is a Phil Holiday and we do not report for work we need to file it as VL or LWOP. My question is, is it right that we charge it in our VL or LWOP, we are still a Filipino and we are still governed by Phil Law. Pls help me enlighten more on this thanks!

    [Reply]

  149. ROMULO GARCIA Comment:
    May 21st, 2012 at 04:42 pm

    i was demoted, due to my demotion, my bonuses were not given to me? is the agency right in holding all my bonuses?

    [Reply]

  150. marjarrey Comment:
    May 23rd, 2012 at 10:06 am

    Hi! I’ve been with my present company for a year now since 2011 and I was hired as a manager. Based on the contract signed, I will be receiving my basic salary plus 2,000 per branch upon break even and performance of deliverables. however, since I came mid of 2011, they have verbally informed me that no deliverable is required only the performance of each branches which is the break-even will be considered. It’s already May 2012 and I haven’t received my 2011 incentives while they have allowed other managers to advance their incentives for 2011…and for 2012, I have been concurrently performing two different functions as my 2012 deliverable, can I compel the company to give me the incentives?
    Thank you sir!

    [Reply]

  151. Hi Sir!If I am going to resign to a company, should I be able to get my receivable honoraria and commission prior to the last date of my resignation?

    [Reply]

  152. Hi Sir,

    Sir i resigned from a Private Company last Nov. 2010 and i joined them again on April 2011. We have not received our salary since April 2012 to this date and yesterday i was informed that i will no longer be getting my salary for the said months kasi my status as they would address it as “comeback” thing. As a non-teaching personnel ,and as far as i know after 6 months of working we are already entitled for the 12th mo salary . tama po ba ako? what legal actions should i do for this matter? thnks

    [Reply]

  153. Good day Sir!!!

    When I signed the contract, it is clearly stated that I will get 5,000php as my non taxable allowance. Here comes payday and when I saw my payslip, it was clearly stated that the allowance in total is only 3,000php. I have already cascade my concern to our HR department and the only answer that I got was there was a “mistake” and they only provide 3,000php for nontax allowance to their employees. Can you please advise me what step do I need to take? Thank you.

    [Reply]

  154. Dear Sir,

    We have an employee who is not performing well in their own respective job and we are giving them allowance. Can the company have the right to cut their monthly allowance since they are not doing their job weell. Allowance is under dimunition benefit. right? Do we violate labor law?

    Thank You

    [Reply]

    admin Reply:

    There are a number of tools available to employers to check employees who are inefficient in their jobs. Management of business and discipline of employees, are afterall, management prerogative.

    However, reduction/withdrawal of benefits is, in my opinion, harder to justify compared to other sanctions, like reprimand or suspension.

    But if you think this is the best way to protect your business, at least, do so only after complying with the minimum procedural requirements under the law:

    1. Notice to explain;
    2. Hearing/investigation;
    3. Notice of disciplinary sanction.

    Always keep in mind that it is always the employer’s burden to justify the imposition of any disciplinary sanction.

    [Reply]

  155. rae Comment:
    May 25th, 2012 at 01:54 pm

    Good day Sir!!!

    When I signed the contract, it is clearly stated that I will get 5,000php as my non taxable allowance. Here comes payday and when I saw my payslip, it was clearly stated that the allowance in total is only 3,000php. I have already cascade my concern to our HR department and the only answer that I got was there was a “mistake” and they only provide 3,000php for nontax allowance to their employees. Can you please advise me what step do I need to take? Thank you.

    Hoping for your immediate response. Thanks!!!

    [Reply]

    GINA BATARAO Reply:

    Dear sir,

    When i was promoted my employer increase my salary. Later they discontinued my promotion in short my promotion was dis-approved and at the same time my salary was decrease.
    Sir any comment to my case?
    Thanks

    [Reply]

  156. Dear Sir:

    I work for a four-star hotel in a managerial position and have been given flexible working hours due to the different areas I handle and operational concerns. This was approved in a request letter I sent to the general manager. I have enjoyed this since Nov 2007.

    Just last week, I received a memo from the Assistant General Manager that I am ordered to work on a fixed 8-5 shift. My work assignments have not changed, I still handle the different areas and require to supervise/manage the restaurants, production and banquet events which have different time.

    I want to know if this falls under diminution of benefits although non-monetary.
    Please reply as cut-off period starts tomorrow.

    Thanks so much.

    [Reply]

  157. Sir/Madam,

    I have worked for a company that deduct SSS, PAG-IBIG and PHIL HEALTH contributions and loan, but none of those were remitted. I have been following up on them to pay for OUR loans and contributioins,i’ve been out of the company for almost a year and half, and until this day, we haven’t gotten any feedback as to when they are going to pay our loans and contributions. Is there any government agency who could help us expedite this issue. is there anyway that those kind of companies be penalized nor be imprisoned?

    [Reply]

  158. HI Sir

    I have been enjoying along with other employees 25days as annual leave and can carry with us for following year/s. My company head office now, is requesting that such leaves should not be carried forward any more as we used to and should avail what we are entitled in a year fully and provide a yearly plan for annual leaves. This means that we can’t anymore accumulate days. Is that consider a diminution of benefits ?

    [Reply]

  159. Blue Angel87 Comment:
    July 11th, 2012 at 12:57 pm

    Our Philippine office is currently enjoying a 18 VL and 6days SL.and unused leave can be carried forward the following year with a max of 20days and paid upon resignation more than 20days will be forfeited. Philippine HR policy dated Feb 2008.

    Our Group HR Policy dated July 2008 states that only 7 days can be carried forward to following year and be paid upon resignation.

    We are following the Philippine HR Policy eversince.

    But now the Group HR is asking if our carried forward leave be reduced to 7days.

    I would like to ask if they have the right to reduce it as there is no ammendment in our Philippine hR policy.

    [Reply]

  160. A. De Leon Comment:
    July 15th, 2012 at 06:31 pm

    Hi Sir,

    I’ve been working as a regular employee in a hotel company for almost 6 yrs now and I’ve been receiving a fixed monthly salary (basic salary)+ service charge. The company wants to cut down their expenses as part of its cost cutting measures since it was a lean season and one of the thing they are considering is to cut down our salary by adding an extra day off without pay. We asked our boss if this action will be considered as non-diminution of benefits and she said no because according to her, it has been the practice of previous management during lean season (by the way i was hired in the new management already and this is our first time to experience this cost-cutting measure , our company have been bought by another investor). Is this action legal sir? Will that action result to non-dimunition of benefits? thank you for your reply Sir.

    [Reply]

  161. Ara Sotomil Comment:
    July 16th, 2012 at 09:12 pm

    Hi Sir,

    I’m currently employed in a Private company and i’ve been with them for 6 years now. We have this Monthly Performance Bonus (MPB) every month which we enjoyed as part of our benefits and it was stated in our employment contract, then beginning Jan 2010 the management told us that we will no longer receive our MPB coz they were going to plan a new bonus for us. Up until now 2012 wala na po ung pinangako nilang kapalit. Since 2006 existing na po ung MPB namin, then 2010 bigla nilang tinigil.

    Your response is very much appreciated po.

    thanks!

    [Reply]

  162. Ara Sotomil Comment:
    July 16th, 2012 at 09:19 pm

    Hi Sir,

    One more, this is a different case. Last payroll cut-off i was on leave for 6 days (Approved VL & SL) and then i didn’t get my transportation and meal allowance. Bale sa isang cut-off po 4 days present, 2 days VL & 4 days SL po ako. Approved naman po lahat ng leave ko (with pay). Am i not entitled to my transpo and meal allowance?

    thanks for your reply.

    [Reply]

  163. I work for a BPO company and was promoted several times. However, since recession back in late 2008, the company has declared salary freeze. All employees hasnt received any increase, and some promotions were gravely affected. In my case, on my last promotion, my basic salary has not changed, and monthly performance bonus is being given to compensate the supposed increase. My bonus is now larger than my basic salary, and the company always says that they’re working on getting it corrected, but have given us no new updates. Our leave conversion, and 13th month pay were affected by this.

    Is the company not punishable by not giving us the corrected basic salary?

    [Reply]

  164. Julius Burgos Comment:
    July 20th, 2012 at 11:02 am

    Hi Sir,

    Good day!
    Ask ko lang po if for example may nadeclare na special non-working holiday sa province nyo (e.g. Mabini Day) at nadeclare yun din ng Malacanang, allowed ba na i-swap yun sa ibang araw???

    If pumasok kami ng araw na yun di ba dapat eh bayad kami ng more than our basic pay as mentioned sa labor code ng philippines?
    For example:
    1st 8 hours – plus 30% of the daily rate of 100%
    excess of 8 hours – plus 30% of hourly rate on said day

    Thanks!

    [Reply]

  165. Is it ok for the company to reduce my medicard benefit limit? because before I have a Maximum benefit limit of P90,000.00 but now I only have 60,000.00 I transferede from other department… It was a lateral transfer… do you think it is right? thanks and god bless

    [Reply]

  166. hello po sir patulong nmn po almost 1year na po akong ngtratrabaho regular nmn po ako sa work. sa 1year kong yung kinakaltasan po kami ng sss,pag-ibig at phil health.. pero wala nmn pong nareremit. ano po kaya ang magandang gawin sana po makapagreply po kau

    [Reply]

  167. sir ted, ask ko lang po pag monthly base salary ka more than 10 years, at gawin daily basis salary pwede po ba yon legal po ba pag ganun? tia!

    [Reply]

  168. Amy N. Mabatid Comment:
    August 8th, 2012 at 10:05 pm

    Dear Sir,

    Teacher po ako at nagpapart time din po sa gabi sa aming extension class. Sa isang buong semester po namin ( SY 2011-2012 fist sem)na sahod ay binibigay nitong June 2012 lang po at ngayon ang second semester namin na`sahod ay wala pa po. Ganito nadin po nung mga nakaraang taon sad to say may mga guro po na hindi nabayaran dahil wala na po sa school namin sa kasalukuyan. Masyado naman po atang delay ang sahod…Tama po ba ang ganitong paraan ng pasahod?

    [Reply]

  169. Hi Atty. Ted,

    I work as a Trainer in a private company, I report directly to the CEO, I was hired Oct. 2011, however, until now I have not received any feedback regarding my performance. Just yesterday, I was called for a conference by the HR, and told me that my performance was unsatisfactory, and that they will transfer me to another position with lower pay, my basic now is 25k and the HR told me that they will lower it to 20k. My transfer will be effective tomorrow, can the company do this? Is this legal? The HR told me that this is demotion because of my poor performance, but I have never seen my performance appraisal result nor has it been discussed to me. And since I was hired Oct., this would mean my regularization is way overdue, but I have not signed any regularization contract. The HR gave me a Job Transfer memo already but I am still confused if I will sign it or not, I really need some legal advise. What are the other legal points that I need know regarding my case so that I would also know how to defend myself.

    [Reply]

  170. Sir.. i need specific explanation which regards to my situation… I’ve been working as private school teacher for more than 18 years to date. Receiving a salary of 6,000 per month with overloads. I let informed the office to reduced my loads from 12 sections to 6 sections. Last school year 2011-12 i have with 12 sections I’ve rendered my teaching class scheduled for 5 days with salary of 6,000.00 pe month
    This sy 2012-13 having a 6 sections with 3days teaching class scheduled MON,TUES, & WED. receiving a salary of 3,000.00 per month.
    I’ve ask the hr.. then she said..u reduce d number of loads..then your salary will also reduced.. its just? Since July to August 15, i received a salary of 1,500 for fifteen days and my take home pay is more or less 900php.please help me… i need your reply soonest possible

    [Reply]

  171. Carol Manlunas Comment:
    August 17th, 2012 at 07:30 pm

    Dear Sir,

    I have inquiry about our longevity pay:

    1. When I entered this organization 20 years there is already longevity pay as one of our benefits. This is separate from our basic pay. Our organization was integrated to another organization and they made salary standardization. we noticed in our payslip that there’s no more longevity pay. and they said due to salary standardization it was integrated in our basic salary.

    2. the computation of our longevity pay has a formula and it is increases every year. but in our operations manual it was not clearly stated that it’s increasing every year that’s why the finance director is telling us that it’s not in the manual so there’s no proof or evidence that it’s increasing every year.

    the way i understand it they remove our longevity pay that’s why they integrated it to the basic salary of those who are already receiving it.

    in this case is there a diminution of benefit?

    thank you.

    [Reply]

    admin Reply:

    As I gathered from your inquiry, your company’s salary standardization scheme resulted into the following situations: (1) your longevity pay has been integrated to your basic salary, resulting in one-time increase of your basic pay; and, (2) the annual increase of longevity pay has been removed.
    From this set of facts, I believe that there is diminution of benefits. The integration itself did not result to diminution as there is no decrease in you take home pay. However, the failure to incorporate the annual increase to the standardization scheme resulted to diminution of benefits because your entitlement to said increase has been removed.
    The prohibition on diminution of benefits applies whether the benefits are based on written policies or unwritten established company practices.

    [Reply]

  172. Mayette Antonio Comment:
    August 24th, 2012 at 04:41 pm

    Some inquiries:
    I am an acctg. & operations manager (no CPA license yet)in a service-related company. I am one of the pioneers of my company which is roughly just a year old. When my boss started hiring web developers, he offered them bigger salary than mine. Is it legal? I do Acctg., HR, Admin, Personal Accountant and Managerial position. Now, there are 17 people under. Although, I received an increase but just after my probationary term and our salary differences are only about 2-3 thousand pesos. What are the standard rates of salaries nowadays? Am I still getting paid right?
    Thank you.

    [Reply]

  173. Dear Sir,

    May I seek your advice regarding the CBA. If ever there was a provision in the previous CBA that was removed in the new CBA however it was not tackled during the mitigation that it would be removed. They just caught us offguard by giving us only a short period of time to review the copy furnished CBA in where it was till then that we knew that the particular provision was removed, however we have already signed the new CBA yet we carelessly unnoticed this excluded provision. Is it possible that this provision will be reconsidered under Art. 100. Prohibition against elimination or diminution of benefits? Thanks.

    [Reply]

  174. Last year, we gave 13th month based on the gross pay (basic pay + allowance) of the employee. That was the first time the company implemented it. This year, due to the increase in manpower cost, we plan to give the 13th month pay base on the basic pay only. Would this be considered as diminution of benefit?

    [Reply]

  175. Dear Sir,

    I was part of a company for more than a year now and i was able to get my incentives for the first and second quarter just last week. Our basis for incentives though is sales based and not collection. however, i have some accounts that were not able to pay for their dues. i was so shocked to know that my account where my salary, reimbursements and bonuses are being sent is now on hold. do they have a right to do that? being so they told me that they wont give back my incentives unless i can collect to these account. hoping for your reply!

    [Reply]

  176. good day sir:
    i have been receiving honorarium for a year since i got my latest appointment last june 2011… it was stated there that i will be receiving 4k honorarium on top of my basic pay. now we are under a new management and they have been reviewing the policy of giving honorarium… in my case, and some others, wala pong nakalagay sa policy na mabibigyan kami ng honorarium and so this time, na-hold po ang aming honorarium with a small chance of being given back. will this be still under “diminution” kahit wala pong nakalagay sa Policy Manual ng institution? but even those person before me were receiving such… thank you very much

    [Reply]

  177. I am in an private educational institution. I am a teacher. We signed a contract containing rice allowance. When the contract was given back to me, I noticed there is something pasted. I noticed rice allowance was altered by a E-COLA. Is my contract void? I also thought e-cola is given to minimum wage earners because that is computed daily. We are not daily. I assume we are on a monthly basis. As they explained it, at first they said they were obliged to change it because accdg to their source they needed to give first e-cola before other benefits…then afterwards it came to be the owner’s decision to change it. the amount is still php 1000 but it will now be deductible when I am absent. Its very unclear to me.

    [Reply]

  178. Hi Sir,

    Good afternoon :)
    At this point i would like to say thank you for replying to this message.
    Sir, are we obliged to pay to our employee if we put her in part time position while she use to enjoy full time position? If so, how are we going to compute for the payment due to her?

    Thank you so much

    [Reply]

  179. glenda mariano Comment:
    October 9th, 2012 at 12:30 am

    Question: is there a prescription period for a memorandum (issued to an employee) in violating particular company policy, to stay in the 201 file. example: company policy is one can only be suspended twice for being tardy, within a year. Third violation will mean termination. What if an employee was suspended twice, and the third time was a year after the first suspension. Are the first two suspension counted, making the third time as reason for termination?

    Thank you.

    [Reply]

  180. Dear Sir,

    I started working in my current last 2010. From my day 1 the company has given us an HMO card. For 2 years we are given an HMO as added benefit. However, last December our Team Leader in the company, on her mood of impressing our head office, had advise our Head office to terminate our HMO.

    Can we consider this as non – diminution of benefits, since our opinion was never ask when they have terminated our HMO.

    It wasn’t written on an employee’s contract but for 5 years now the company is giving their staff an HMO. Do we have the right to ask for it again.

    Thank you.

    [Reply]

  181. Sir,

    Ask kolang po if hindi pasok sa “Non-diminution of benefits” if biglaang aalisin ang Summer Outing at Christmas Party?

    Nakasulat po sa hanbook-Company Policy na every ginagawa ang Summer Outing at Christmas Party for have a beak and promote camaraderie.for 8 yrs meron naman..

    This year ksi nagpalit ng president at ibang TOp bosess..ngayon kinonvert sa cash at inalis ang mg party..

    Thanks.

    [Reply]

  182. Question? Monthly basis po ang sweldo then all of a sudden the company decides to pay me on a daily basis because they cant no longer afford to pay their employees, ok lang ba na gawin kaming daily basis and we have to work every other day, is there a law for this? Company will eventually close but for now marami ang floating sa amin, kahit ba wla na kaming leave the company should pay us since the contract that we signed is monthly basis kami.

    [Reply]

  183. My husband’s employment contract stipulates that upon his regularization, the employee’s spouse gets to receive HMO as part of the employee’s benefits and after a year of employment, the next dependent. However, it is almost time to get our eldest’s HMO and yet they haven’t given us mine yet. Plus, my husband is unable to use his leave credits that are non-convertible to cash simply because his boss won’t approve his leave giving an excuse of ‘due to operational requirements’. Can they actually do this? Can we complain to NLRC? On what grounds esp. regarding the HMO benefit? Is it a violation of the law on non-diminution or just non-compliance to the employment contract?

    [Reply]

  184. Dale Pepito Comment:
    December 7th, 2012 at 06:45 pm

    Dear sir,

    I have several colleagues who are non-regular employees in the company. We call them “flex staff”. Suffice it to say that they do not get the same benefits as the regular employees but their workload is the same as everyone else’s.

    For a year now, they’ve been receiving a monthly allowance but today, they were informed that the company will be taking back the full amount retroactively because it was a mistake. The thing is, while they were not formally informed of said allowance, everyone of them received it. Would this fall under a ripened benefit?

    Please let me know your thoughts on the matter. Thank you!

    [Reply]

  185. We are educational institution… our employer currently did not give us any bonus/gift, but this gift is not fix from year to year, mean it has different value every time it is given, depending on the surplus of the budget. this time the institution did not give any, will this be considered diminution of benefits? thank you!

    [Reply]

  186. agnes pallasigui Comment:
    December 15th, 2012 at 10:45 am

    good day!!

    I would like to ask assistance regarding the procedures that a company should observed in case they intend to reduce VL they have granted to me for for 5 yrs, from 15 to 5 days which serve as the Service incentive leave. We were informed that our 15 days was non-mandatory and the management reserves the right to suspend / reduced this benefit.
    I refused to sign the memo since affixing my signature will mean i do agree with it.I would like to seek advice from experts in this case that will guide my course of actions. My company is doing well financially.

    thank you for any advice you can extend.

    [Reply]

    admin Reply:

    It may be tantamount to illegal diminution of benefits.

    It is incorrect to say that the 15-day VL is “non-mandatory” and that “the management reserves the right to suspend/reduce this benefit”. Under the Labor Code, the employer is mandated to maintain all benefits already being enjoyed by employees, whether it is based on employment contract, CBA, or established company practice. The elimination or diminution of any of these benefits is illegal.

    In particular, the Labor Code clearly states that the provision on Service Incentive Leave “shall not apply to those who are already enjoying the benefit herein provided” and “those enjoying vacation leave with pay at least five days”. (Art. 95) Meaning to say, the mandatory 5-day service incentive leaves applies only to employees not yet enjoying this benefit. Those already enjoying the same or more favorable leave benefit should continue to enjoy them without diminution.

    The Code is explicit that “Nothing in this Book shall be construed to eliminate or in any way diminish supplements or other employee benefits being enjoyed at the time of the promulgation of this Code.” (Art. 100)

    [Reply]

  187. Jane Mara Aquino Comment:
    December 18th, 2012 at 04:39 am

    Hi, I would like to consult my situation. I am a flex staff/regular to a large, popular BPO company. As a flex staff, our manager can command us to go home when our work for the day does not require 8 hours of work. The minimum work we can render is 4 hours. I am now on my 8 month in this company. We are receiving our salary once every month, to be specific, every 26th. First question, is this valid that we received our salary once a month? From my hire date, I received an allowance worth 4k-5k per month, both taxable and non taxable. It is not written in our contract. The only benefit that was written there was a 5 leave when we reached one year of employment. Again, is that valid? We did not noticed that this allowance should not be given to us because it was not written in the contract that we signed as a flex staff knowing that all other employees around us was receiving the same allowance. So we let it happened. We enjoyed the benefits since our hire date. Then suddenly, only this month of December 2012, an HR talked to us, all flex staff, stating that we had an overpayment to our salary. for 7 months, I spent 35k that I did not know it will become a liability. My office mate was hired for 1 year now so her liability was bigger than mine. It took years before they realize they were wrong. One thing, they give us certificate of employment twice this year stating the amount of allowance on it. At that moment, they did not realize that they were wrong when in fact they indicated in the COE that we are a flex staff receiving this amount of salary and such allowances? Is that valid? It only proves that it was really their fault/negligence to give us such allowance because the COE was given twice. In our meeting, the HR said that they will give us a document that we will sign deducting our salary 20% every month minus the allowance we were actually receiving. We will receive starting January almost half of what we were receiving for the past few months. It is very unfair. That sudden change would be valid? We are not yet signing the agreement paper. We want to know first if this is legit. What can you advise? Hoping for your prompt response. Thanks and God bless!

    [Reply]

  188. Dear Sir,

    I would like to ask your opinion regarding po sa company that I am working for. For more than a year, we are receiving allowances from them, now December 2012, sinabi po ng HR na they have to recover all the allowances from us dahil daw po hindi kami entitled for allowances as stated in our contract. Sa contract po namin, there is no stipulation or any provision about the allowances, ung rate lang po namin and government benefits. It is not clearly stipulated sa contract na we are entitled or not for allowances. Ang HR reason po ay system error na the payroll system included our names entitled for allowances. Itatanong ko lang po Sir, if our company has the right to recover the allowances from us? Thanks po. Hoping for your immediate response. Thanks.

    [Reply]

  189. Shirlyn Lim Comment:
    January 4th, 2013 at 11:38 pm

    Dear Sir,

    Just want to ask regarding diminution of benefits.Our company is currently giving basic plus 5k allowance (3k is taxable and 2k is non tax for rice, transpo…). But this year they had harmonization in compensation and benefits transferring portion of taxable allow to basic reulting to higher basic but lesser allowance. The company provided computation to all EE showing that there is no effect in the annual gross of EE. But when I computed my net income monthly and yearly will be lowered down. Was that considered diminution of benefits?

    [Reply]

  190. Good day!

    Just an inquiry about this case in our company. A friend is a union member and one of the benefits of being a union is a free education up to 4 children. A case arises when the eldest son was not able to finish a four year degree course. On the 5′th year, the employer terminated the benefits arguing that the son of the union member did not finish on the 4 years regularly required to finish a course. Is this allowed or just? since the CBA did not specifically mention about this? Is this not a violation of the principle of diminution benefits? The change is unilaterally applied and not bilateral. Please enlighten me.

    Thank you!

    [Reply]

  191. for the past 7 years, our company has been giving 14th month pay to head office employees every end of the year. But, for 2012, the management did release the said benefit due financial loses. is there a non-diminution of benefits?

    [Reply]

  192. for the past 7 years, our company has been giving 14th month pay to head office employees every end of the year. But, for 2012, the management did NOT release the said benefit due financial loses. is there a non-diminution of benefits?

    Sir, i need your response ASAP! thank you!

    [Reply]

  193. for the past 7 years, our company has been giving 14th month pay to head office employees every end of the year. But, for 2012, the management did NOT release the said benefit due financial loses. is there a DIMINUTION of benefits?

    Sir, i need your response ASAP! thank you!

    [Reply]

  194. I signed a six month contract probi noong March but no increase on my salary even allowance wala came Sept our company layoff some employees kaya di ako na promote pero wala ako ni sign na extend ang contract ko , came Decemeber (pang 9months ko na) sabi ng boss ko inaayos nya na raw recommendation nya na ma certified ako wait lang raw eto na tapos na Jan (10 months) nag tanggalan sa opisina kaya di ako na certified wala pa ren ako pinipirmahan ganon pa ren sahod ko basic parang ordinary agent.hindi ba dapat ganito.. Worker’s right to be a regular employee after the probationary period not exceeding six (6) months. A probationary employee is one who is on trial during which the employer determines whether or not he is qualified for permanent employment. Failure to qualify as a regular employee in accordance with the reasonable standards of the employer is a just cause for terminating a probationary employee. However, the probationary employment must not exceed six (6) months. Otherwise, the employee becomes regular by operation of law.” pano po kaya yung dapat na sahod ko… pano kung mapabilang ako sa matatanggal tapos di pa ako certified… pano kung i certified naman ako mahabol ko pa ba dapat na sahod ko nung after ng 6 months akong probi.. ano po bang maganda at maayos na paraan para mahabol ko ang right ko sa pinag trabahuan ko. maraming nag sasabi na malaki ang laban ko pag nagsampa ako sa DOLE pero gusto ko muna malaman ang inyo pong mapapayo saakin. maraming salamat po

    [Reply]

  195. Virginia Velasquez Comment:
    February 23rd, 2013 at 10:22 am

    sir, where can we find the dole law which states, “any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer.”[

    [Reply]

    maggie Reply:

    Non-diminution of benefits

    [Reply]

  196. Good evening sir,

    In our company the old employees (5 years and more) have much more benefits than the new employees(2 years and less). We signed the contract for the new employees which has much less benefits. Is this a legal thing for our company to do?

    [Reply]

  197. Sir,

    1.I am a managerial employee working for 5 years in a private corporation. I have been enjoying the payment of 13th month pay since I was employed. Pwde po ba tanggalin ito basta basta?

    2. My contract says – fixed period. Wala po ako OT pay.nag aabsent po ako kahit kelan ko gusto but still paid. recently ni limit nila ang absences to 12. pag naubos, kakaltasan ako sa sweldo. di din po nag aaccumulate ang leaves.

    pwde po ba gawin yun? fixed po ang rate ko monthly kahit may absent ako o wala. kung lilimit sa 12 at pag naubos ay wala na akong bayad pag nag absent, di po ba diminution of benefits yun? tpos wala naman po akong OT pay, di ba unfair yun?

    salamat…

    [Reply]

  198. Hi! May tanong ako. Nagwork ako sa bpo company. For 1 year and eleven months, kumuha ako P 150 daily transpo allowance. Then, bigla clinose ang account namin. Pinalipat kami ng account.

    Sa bago naming account, binigyan na lang kami ng P 60 daily transpo allowance. Ang justification nila, iyan lang ang ibinibigay sa mga ahente ahente nila.

    Pwede ho ba ginawa nila o kaso ho ba ito ng non-diminution of benefits?

    [Reply]

  199. Hi,
    Good day. I would just like to ask if there’s any policy stipulated in the Philippine Labor Code about company promotion process. I have been promoted to a Managerial position last October 2012, but until now the salary has not yet reflected. The role & tasks have been changed, but I am still receiving same salary, for almost half a year. Is there any policy violated by the company because of this?

    [Reply]

  200. Hi,

    My mother company and HR are both located in SG. In our employees handbook, it is very clear that my maternity leave entitlement provided by company is different from the SSS Benefits.

    My company gave me my 2 months salary which is P27k/month inclusive of tax. Then, I discovered that they used that to reimburse the P30,000 from SSS and now they do not want to remit to me the check from SSS. I tried to appeal but the HR from SG said that the employees handbook was written last 2009 and they are going to revise it to follow the government labor code. I think I have the rights to claim the benefits that I know I should be enjoying and the company do not have the right to just change it at will. Please help.

    [Reply]

  201. Dear sir,

    The company i work for is now mostly managed by expats. We enjoyed almost 16months of pay, mid year pay, meal and transpo allowance for 4years now. My question is they plan to remove all of this and just provide us 13th pay since they say this is the normal practice of other comapnies in the philippine they tell us the company is not doing good but yet all expats are getting large amount of increase the company shoulder the school fees of all thier children and housing accomodation is also provided to them. If you look at the picture they are trying to remove our benifits so they can enjoy thier lifestyle. Is there anything we can do about this?

    [Reply]

  202. Good Day! I am a managerial employees from one of the country’s top UNIBANKS. Aside from our regular salary, we have incentives as reward for exceeding targets. In our contract the time of payouts have been agreed upon. However, there had not been a single time since the time of my employment that the incentives were paid on time. At one point we had to wait for over 6 months before the incentive was paid out. Is this kind of problem covered by the non dimunition of benefits? Thank you> Hope to get an answer soon.

    [Reply]

  203. in my case I’m working @ SIYCHA Group Of Companies as a Financing Supervisor,I’m longing for their said benefits which is the Relocation Allowance provided by me because I’m Transferred to other branch that as far as 107 kilometers from my designating branch, its been almost 6 months in my new branch but until now i did not receive to that said relocation allowance.if any one can help me about my case,or give me an advice if this case well be deliver to Department Of Labor & Employment.

    [Reply]

  204. hi..i am currently working in a non gov and non profit organization. From 2010 until today we are enjoying rice allowance, COLA, and Maximum allowable expense on transportation monthly. But i overheard from a co-worker that the management is planning to eliminate or reduce the said allowances due to the reason that the company is facing a financial crisis and we have to cut our expenses. Is it ok to eliminate or reduce those allowances? thanks and Godbless.

    [Reply]

  205. In addition,last 2011, it was agreed and written in MEMO that our basic pay will be increased quarterly based on our performances..but later 2012, the policy has changed without prior notice to all the employees that the bonus will not be included in our basic pay but we will receive it as performance bonus yearly.

    [Reply]

  206. sacrificial lamb Comment:
    April 11th, 2013 at 08:41 pm

    legal po ba na ibaba ng position ang isang empleyado “pansamantala”(di tiyak kung hanggang kelan) ng walang sapat na basehan at dahilan kundi dahil sa kailangn mag cost cutting ng kumpanya. Ito ay ibinaba ng verbal sa empleyado ng walang kaukulang memo or written na kasunduan. anu po ba ang nkasaad sa labor laws ukol dito upang maging basehan para magreklamo?

    [Reply]

  207. Hi there,

    I’d like to know if the removal of flexible schedule, which has been implemented on our team for more than 2 years, can be considered a diminution of benefits. the upper management of our company would like to make our schedule fixed so that we can be aligned with the additional tasks they are planning to give us.

    [Reply]

  208. Edenjoy Elegado Comment:
    April 15th, 2013 at 03:22 pm

    Hi, I just want to ask, Rainmaker Asia offered me $20,000 as basic salary and since the account has problems they offered redundancy or transfer of account but they didn’t specify that there is a change of salary and to our surprise the following month our basic lowered to $15,000. According to them it’s just a temporary change while they were fixing the problem with the account that was offered. After 3 months they transfer me to a different account without transfer papers and since my regularization appraisal is near I’ve waited for the promised return of my basic pay but it didn’t happen. I was so frustrated and ask my friends what to do. They advice me to file a case in DOLE but I’m not sure where to start. After a year of waiting I was transferred to 4 different accounts without transfer papers until I finally gave up in doing follow ups in my salary. The worst thing is that, it’s been past 3 months and they haven’t given me my back pay and they ask me to call back almost every day. I was really pissed off because it’s been 3 weeks that I’m giving them a call without any answer. The company was broke and they tend to redundiate employees without 30 days notice. Please help me. Thank you and Godbless.

    [Reply]

  209. Edenjoy Elegado Comment:
    April 15th, 2013 at 03:24 pm

    Hi, I just want to ask, Rainmaker Asia offered me P20,000 as basic salary and since the account has problems they offered redundancy or transfer of account but they didn’t specify that there is a change of salary and to our surprise the following month our basic lowered to P15,000. According to them it’s just a temporary change while they were fixing the problem with the account that was offered. After 3 months they transfer me to a different account without transfer papers and since my regularization appraisal is near I’ve waited for the promised return of my basic pay but it didn’t happen. I was so frustrated and ask my friends what to do. They advice me to file a case in DOLE but I’m not sure where to start. After a year of waiting I was transferred to 4 different accounts without transfer papers until I finally gave up in doing follow ups in my salary. The worst thing is that, it’s been past 3 months and they haven’t given me my back pay and they ask me to call back almost every day. I was really pissed off because it’s been 3 weeks that I’m giving them a call without any answer. The company was broke and they tend to redundiate employees without 30 days notice. Please help me. Thank you and God bless.

    [Reply]

  210. Just an employee Comment:
    April 23rd, 2013 at 04:50 pm

    Sir,
    Recently our company just suddenly change policy on SL-VL. Before, when an employee resigned in 1st quarter of the year, he/she will get all the remaining SL-VL w/c is convertible to cash. Now, the company changes it to pro-rated. Does it fall under diminution of benefits? Btw, the previous policy started almost 15 years ago.

    Thank you.

    [Reply]

  211. good day! i work for a US based company that’s been operating in the country for 2 years. i am currently pregnant. Women who used to be on a maternity leave were still provided monthly salary. however, recently this has been discontinued because they claim that was an error on their part. we did not sign any paper that this is part of our benefits as an employee. however, i just feel unfair that they provided salary to others before when they were on maternity leave and sudently it was discontinued. is that a violatio of the labor code or dimunition of benefits? if i raise this to my employer or to HR, may laban ba ko? thank you so much and hoping for an immediate feeback.

    [Reply]

  212. When I was a part-time employee, my daily wage was 500 pesos. I was a part-time employee for about a month.
    When I became a full-time employee, my wage in the first two weeks was 500 pesos per day. And two weeks later, in the next “sweldo” my wage decreased to 370 pesos per day. Is this legal? the minimum wage here is 260 pesos.

    [Reply]

  213. Good day Sir,

    Hi i just want to ask is it legal to change the status of your membership in SSS from employed to voluntary when your going to have a maternity leave? Our company said that I would not work for the said reason so they would not pay the contribution in my SSS, Philhealth and Pag-ibig.
    Will this be a affecting my benefit as an employee and can be this considered a diminution of benefits?
    Will i have grounds to raise this to the HR?
    Thank you so much and hoping for an immediate feedback.

    [Reply]

  214. Hi Atty Ted,

    Last Apr 30 our company did not pay us our 1 month salary (we are only paid only once every end of the month) due to lack of company funding. This is illegal right? Also the company seems to be in the verge of closing out by mid of this year if financial status do not improve. My problem is that I’m 3months pregnant and due by the end of this year.
    1. What are the benefits I can get if the closure pushes thru aside from the salary and allowances, 13th month pay, etc?
    2. Can I still get my SSS maternity benefits?

    Thank you.

    [Reply]

  215. Hi Sir,

    I was browsing the internet to get possible solution to my query. I am currently working as an csr for a call center and we have an incentive each month that if we hit a certain metric we will be eligible to get an incentive(monetary). Last March my TL told me that I am eligible because I kept on asking him. Then later March the management change the incentive plan. For March scorecard the incentive will be paid April 30, 2013. Then come april, our mgt said that there is an error with the computation of incentive and that some may get some will not, i didn’t worry. Now April 30, 2013, I received an incentive amounting to 13k plus, i was so happy and i even asked if it is true that it was for me, my TL is already resigned then (He resigned March 30)nobody bothered to inform those affected with the incentive computation error so I was on the impression that it is really for me. But now I am experiencing a terrible stress because Payroll is deducting my salary 4250 each payday bec they said I am not eligible to get an incentive. I just known it last week of May. I haven’t even sign a paper that I am allowing them to deduct an amt to my salary when I learned that they talked to the others and have them sign an form of Authority to Deduct. Can I sue them for this, because they’ve caused me a lot of trouble I had no money now for my family and kids enrollment bec of what happened. Please give me advice.

    [Reply]

  216. APRIL XIAO Comment:
    July 3rd, 2013 at 01:50 pm

    Good day, is reducing the grace period of your office hours from 15 minutes to 5 minutes considered diminution of benefits? its been a practice for almost a decade or more….

    [Reply]

  217. thepianist1221 Comment:
    July 26th, 2013 at 12:58 am

    Sir,
    I am employed as an instructor in a private school for the past 17 years. During the first ten years, I worked full time hours, 7 am to 5pm. During those times, I taught the piano plus did some other jobs- manning the canteen for some time,which later turned to office work.

    I do not have a basic salary- what I get is half of the payment for my piano lessons. So if I have a total of ten pupils, I get 10 thousand monthly, since the rate is 2,000 per pupil.Oh, they started giving me an honorarium of Php 4,000 seven years ago when I decided to go part-time in order to lessen my work load.

    Through the years, my work has evolved. My boss noticed that I had the inclination for writing so she sent me to School paper adviser’s training seminars. Therefore, I became the school paper adviser, and I still am, for the past six years.

    Last Regional Schools Press Con, I had an altercation with my boss. She reprimanded me in public (pier area) for a very simple matter. Well, she denied it now, saying that I was the one who started it, that I was the one who first raised my voice. Really, can a subordinate do that?

    Oh, this is getting too long, but I believe I have to write out the details so that you can give me good advice. Here are my issues:

    1. My 13th month pay for the past 7 years is Php 4,000, based only on my honorariun from being a school paper adviser, teaching journalism and music classes in grades 3-6, plus office work.

    2. After the regionals, I had to go onleave due to illness. It’s okay if they deduct my February attendance because I was really absent that time. However, in January, I was training my pupils in division and press conferences. They claim that my piano fee (which makes up most of my salary), was not paid for by my pupils’ parents so they have to deduct it from me. They state further that they have paid me Php 4,000 as a Journalism teacher- true, they paid for my registration and food, but did not give me allowances during those periods.

    3. I would like to resign immediately because I believe I am not being paid fairly (took me a long time to figure that out, eh?)Is it possible for me to do so?

    Please reply as soon as you can. I’ll hold my resignation until I hear from you.

    Sincerely,
    The pianist 1221

    [Reply]

  218. Sir i am currently working in a private company nature of the business is Real Estate , currently the company is almost 3 years now and i am also the pioneering also in the company , company po ang nag agreed during my employment the company president we have a verbal agreement if may nabenta po kaming unit may 2% kami as incentive basis eh divide po yon sa lahat nang staff as a performance since ang company po namin ay hindi tumatanggap nang housing broker or agent so lahat nang client po namin at walk buyers right now almost 70% na po ang nabebenta namin, i am a regular employee with a multi task job documentation at the same time marketing. the comany started giving incentive six months after our opening , the incentive started six months since our opening since we have already a number of client who are reserve and already takeout at PAGIBIG FUND, we started enjoing our incentive base on out perfomance s we are not equally divided we are also categorized in line of ourjob description since i am much experiance so i have a bigger portion of the incentivebut it only last for 10 months started October 2010 until july 2011, it is stop withoutany reason but we still keep longing ro recieve tht kind of benefits bcz we are working hard to market our walk in client and we also thankful that almost 70% is already sold which our subdivision is cmpose of 120 units and we already sold 70% of that. so after that month until now we have not yet get our incentive since we have already bigger number of client reserved which already take out at pag-ibig bcoz this is our basin on our incentive. and also our company is noy praticing the mandate by law which can avail sick leave and vacation leave so since of my employee hindi ko pa po naranasan magkaron nang leave na with oay like SICK LEAVE and VACATION LEAVE. also our incentive can we also claim, since our agreement is verbally but the company has already started , the procedure given our incentive is we sign only the cash voucher and the company did not give us copy coz to preserve secrecy because the basis of giving incentive base on performance but the source is our client which already takeout by pagibig. We the regular employee are the sole marketing arm at the same time preparing docments our working days is monday to saturday from 8 am to 6pm which i observe also nine hours of work can we cam or benifts lis this also belong to non diminution of benefits ike incentive thank u and more power…pls im waiting for your reply coz im planing for a resigntion also bcoz of what happen.

    [Reply]

  219. hi!
    our earned commissions are withhold by the company.
    now i was terminated.
    my case is in the nlrc on appeal status.
    the law says, for the earned commission/wages – there is no room for interpretation or construction; there is only room for application.
    provisio in the employment contract – that should you commit violation/s related to your work, any commission earned will be forfeited in favor of employer. Normally, this is a textbook example of a contract of adhesion, wherein employee is left with no choice, its a take it or leave it scenario. This is not in accordance with the labor spirit of law.

    how can i get my commissions already due to me?

    thanks

    [Reply]

  220. Hi Sir,

    One of our employees resigned last March and part of her pay for resignation is the proportionate 13th month pay for the months she worked during this year. Our computation ever since our company started is (basic salary)/(12) x (# of months worked). For example, if the salary is Php 24,000.00, and the employee resigned on March 15, then our computation would be Php 24,000/12 x 2.5 months. This computation does not give regard to leaves without pay, maternity leave, etc.

    However, DOLE issued Department Advisory No. 02-12 last 16 November 2012 – http://www.dole.gov.ph/fndr/bong/files/Department%20Advisory%20No_%2002-12.pdf – and it relates to the payment of thirteenth month pay. Following this computation, the 13th month pay would definitely turn out to be lower, as the computation used herein uses the actual salary received by the employee. It should be noted that a leave without pay, meaning absence and even a maternity leave, is deducted from the basic salary earned which is then the basis of the 13th month pay computation.

    What we’re thinking is, if we were to follow the computation as per Department Advisory 2-12 this year, our staff would be expecting to receive a 13th month pay that would be in compliance with the said Department Advisory, but lower than what they have been getting the previous years.

    Would that not be a diminution of benefits of the employees in the sense that the 13th month pay of the employees will be reduced?

    [Reply]

    admin Reply:

    There would be potential diminution of benefits if the amounts which are traditionally being included in the computation of 13th month pay is unilaterally removed from the computation.

    [Reply]

  221. Matagal na po ko sa kumpanyang pinagtatrabahuhan ko pero after kong maregular matagal p bago nila ko hulugan sa sss.. Eh that time din po ay buntis ako..so nagfile po ako ng maternity sa sss na ako p ang nagasikaso nung una pero nareject daw po ako… E inaasahan po namin ung makukuha sana naming benepisyo..dahil wala din akong philhealth at pagibig sakanila…pwede ko ba silang kasuhan??? At anu pong kaso pwede kong ihain laban po sa kanila!!!at feeling ko po eh madami p silang magic na ginagawa..

    [Reply]

  222. Manufacturing company po kami, 12hrs shift ang operations ng mga Production Operators, bayad naman ang overtime nila. Kaya lang, may mga operators na outright o biglang nililipat from shifting to regular time (8-5pm) ibig sabihin, nawawalan na sila ng overtime pay. Malaki ang effect nito sa netpay nila. Question is, legal po ba ito kung ang reason ng paglilipat sa mga tao ay para madaling mamonitor ang mga may attitude problem? Ang malaking pagbaba sa sahod nila ay macoconsider ba na Diminution of Benefits? Marami pong salamat

    [Reply]

  223. my inquiries:
    one of our staff is receiving an increase salary due to promotion. She was also given another increased when she was temporarily appointed as Asst. General Manager. However, when i was appointed as the new GM, I evaluated her performance for 7 months and the result is poor , below par performance. I wanted to decrease her salary because she is not worthy to received. She is one of the highest paid employee with below par performance. she was promoted and able to get increases due to her close association with some of the BOD. her salary has created confusion and contention with other employees.

    the company has no written policy only verbal and employees has different interpretation re salaries, wages, allowance & other benefits.
    Aside from the basic salary, they have this additional pay not taxable but included in the computation of the 13th month. please give me advice on what to do and how to settle this matter. thank you..

    [Reply]

  224. Erickson B. David Comment:
    October 14th, 2013 at 10:14 am

    I was hired by my company from June 01, 2005 up to present. I was working as a health and safety engineer from 2005 upto 2006. Then i was promoted and worked as a senior engineer from 2007 to 2012. And on January 1, 2013 i received my notice of personnel action from HR reflecting my designation as a designer.

    QUESTION: diminution po b yun?

    Salamat

    [Reply]

    admin Reply:

    It could be a demotion if there is a reduction of your rank or salary. Note that change of designation by itself is not demotion, but it could be an indication.

    [Reply]

  225. Our CBA is already ratified and benefits were already enjoyed by the union members including their retro pay as well as their signing bonus. But for us management employees, increase in benefits, signing bonus and wage increase were not still given and we have no idea if this will still be given.

    From the past 3 CBA, management employees also enjoyed wage and benefits increases and signing bonus (some of which are higher from their CBA).

    Is this a case of diminution of benefits?

    Thanks

    [Reply]

  226. Dear Sir:

    I am very much glad that as I pressed my computer keyboard, I found your blog- the fact that gives me a sense of hope! Below is what I am talking about:

    I am currently working as an Administrative Services Aide in the Water District of our town which is a GOCC. Since July, 2006, our agency is providing Grocery Allowance amounting Php1,000.00 per month and since year 2002, we are also receiving Php3,000.00 Medical Allowance per year. These allowances was then become part of my budget source for the whole year’s basic expenditures. Indeed, these allowances helps me a lot to manage my basic needs considering the fact that I am just receiving Php 11,XXX.XX monthly salary. Today, October 25, 2013, our agency is about to receive the Audit Observation Memorandum from Commission on Audit mandating our agency to abolish the two mentioned allowances and to refund those already given since 2012. This fact make us half-paralyzed! …and as of now, I am very much disappointed! “Ang tagal na nga po magtaas ng aming sweldo, tatanggalan pa kami ng benepisyo”.

    Is our case a form of diminution of benefits?

    Thank you. I am hoping for your favorable response.

    _Michael_

    [Reply]

    admin Reply:

    There is diminution of benefits if the employer unilaterally removes regular benefits being enjoyed by the employee over a significant period of time.

    [Reply]

  227. If this is so, do we have the right to discuss “it” with the auditor- to settle the matter in our favor using the Principle of Non-diminution of Benefits as “breaker” to their Audit Observation Memorandum? As what I’ve stated, we have been enjoying the Medical Allowance and Grocery Allowance since 2002 and July, 2006 respectively, and we have been audited yearly since 2003 up to present. Now, what puzzled us is that why the auditors did not put it on their previous findings if it is unlawful as they insist? Why is that only now? We didn’t add or change anything from the time these allowances was created. In fact these allowances was supported by Board Resolution, so how it turns to be unlawful? The worst is they demanding us to refund those already given since 2012. In your personal assessment sir, can we hold on the Principle of Non-diminution of Benefits against their Audit Observation Memorandum?

    [Reply]

    admin Reply:

    Certainly, the principle of non-diminution of benefit is a point you can argue to question the validity of the withdrawal of benefits. However, for it to hold, the grant of benefit must be shown to be authorized or legal to begin with. It may be a different story if the said benefits are unauthorized or illegal from the start.
    (Note that this is only my opinion and not legal advice. As always, it is best to consult your lawyer.)

    [Reply]

    Michael Reply:

    Alright. Thanks a lot sir!

    [Reply]

  228. am receiving tools of the trade allowance for 2 yrs, said allowance is given for client facing employees of a particular level of which i am qualified. i then moved to our regional office (ROHQ) which makes me “not qualified” for the TOT allowance as per company rules. After my move i still received said allowance for 8 mos since my manager did not inform HR to remove said allowance. I did remind my manager on the first month that I moved to the new office that I was still getting the allowance but there was no action her part. After 4 months i was given an email saying removal of allowance would take effect 01 July 2013 and I agreed to it. Last month i was informed that i will have to pay back all the months that I received the allowance. Is this legal? Since i did inform her and that the removal of the allowance is initiated by the manager and not me? Should the allowance be removed in the first place? I am working for a multi-national company. Does this fall under non-diminution law? Thank you so much for your feedback.

    [Reply]

  229. Our company subsidized our gym (Fitness First) at 75% rate amounting to Php 2700 per month per person. The program for Wellness has been consistently practice since August 2010. This wellness program is given to employees who enrolled in the gym. But none to the employees who are not enrolled. Last Nov. 18, 2013. HR announced that our contract with Fitness first gym will end by Nov. 30, 2013. The company will not renew the contract. Is this also a diminution of benefit?

    Your advise will be appreciated!

    Thank you,
    Allaine

    [Reply]

  230. Hi Sir. We are currently being paid by our employer based on a daily rate x 24 days in a month. The 24 days is computed based on 365 less sundays, 1 Saturday in a month without work and Christmas/holyweek vacation divide by 12 months. That means we are fixed monthly paid based on 24 days per month. Now as a cost reduction program of the company, our working days was reduced by additional 3 saturday and our salary will then be paid based on the actual number of days we actually worked. Will this changes on the computation violated the labor law? Thank you very much!

    [Reply]

  231. Good afternoon Sir
    Tanong ko lang po kung tama yung ginawa ng Toshiba sa pagtanggal nila ng dagdag sahod sa mga empleyadong nakatanggap ng mababang grado sa appraisal?.
    Taon-taon po kasi ina-appraised nila ang mga empleyado para sa kanilang taonang dagdag.
    Ang dagdag po ay performance basis. Nahahati po ito sa apat na grado ang O- outstanding, ang E- excellent, ang M- midst at ang NI- needs improvement. Ang grading system po ay computed as percentage of your monthly salary, yun yung magiging dagdag ng sahod namin on annual basis.
    Karaniwan pong dagdag base on percentage are as follow: O = to 7%, E= to 6%, M= to 5% and NI= to 3%. Minsan po mas mataas pa base sa performance ng company.
    Pero po ngayong Oktobre taong kasalukuyan, after 17 years ngayon lang po walang matatanggap na dagdag sahod ang nakakuha ng NI (needs improvement) base sa appraisal. Wala po silang paliwanag sa empleyado, hindi rin po sila nagdeklara ng pagkalugi.
    Tama po ba ang ginawa ng kamponayang Toshiba Philippines?…Ano po ang dapat naming gawin?

    [Reply]

  232. Good afternoon Sir, I just want to ask for your legal advise regarding our company. Next year, our company under a new President will implement new policies. Before the implementation, we were given 2 options.

    Option A – No Work No Pay policy (even though we are monthly rate and not daily rate). This means that we will not be paid during Korean Holidays. We already called DOLE about this matter and they find it illegal, however, our new president still wants to implement the “No Work No Pay policy” plus his new incentive program if we will choose Option A.

    Option B – We will have to report for work in both Philippine and Korean holidays. That means we don’t have any time for vacation anymore. We are only given 5 SILs for 1 year. No vacation, Sick and emergency leaves. Other incentives which we are already enjoying for many years already will be waived as well. And on top of that, all supervisors will be demoted because they opposed the idea of “No work no Pay” policy. That means there will be no more career advancement for all the employees.

    There are many more problems that i can’t discuss. But i hope that you can give your opinion regarding our concerns. Please advise if our company is already violating our labor law. Thank you.

    [Reply]

  233. Hi Sir, Good evening, we are on the process of leveling our current comp and ben package. is it a violation if we deduct the current and put a new allowance, thus, making the net allowance higher than the previous package.thanks sir.

    [Reply]

  234. Hi Sir, Good evening, we are on the process of leveling our current comp and ben package. is it a violation if we deduct the current basic pay and put a new allowance, thus, making the net allowance higher than the previous package.thanks sir.

    [Reply]

  235. I have voluntarily resigned from my position from a representative office, however, my years of service has been carried over from a previous entity of the same company. It just changed its nature of business. My letter of appointment which I signed states that all compensation and benefits from the ceased company will be carried over to the representative office. Part of the benefit is getting separation pay from resignation equivalent to 50% of the retirement benefit multiplied by the number of years of service of which I have served more than 10 years. I have a copy of the document which I told the company I want to claim that right but I was told that the retirement fund no longer exists because the funding manager does not want to invest on the employees less than 5 pax. so am told the benefit no longer exists. Will this constitute diminution of benefits? Am told it was discussed with me but I do not recall any conversation with the company on this issue of the benefit cessation and have not signed any.

    Merry Christmas! Pardon for writing on a holiday but felt the need to understand where I stand on this issue.

    [Reply]

    Ronnie Reply:

    I mean have not signed any document agreeing or accepting it will no longer be given

    [Reply]

  236. Janet Herrera Comment:
    January 4th, 2014 at 09:34 pm

    Good day! sir i am currently working to a construction firm.. At first, i started as a bookeeper then after 3 mos i promoted as a liason officer then we agreed mon-fri 8-5pm. But now after 2 years and 6 mos… My employer issued a memo demanded a Monday to saturday 8-5pm, no more meal allowance during lunch…

    [Reply]

  237. Good Day Sir!
    I hold supervisory position in a bpo, part of my benefits is the privilege of non deduction for lates coming to the office. the company expanded and new management took over. they very strict with lates and they are now deducting lates from my salary, also as a result, memo will be placed. Can this be classified as diminution of privelege/benefits?

    [Reply]

  238. sir, tanong ko lang .ako po ay kasalukuyang nag tratrabaho bilang guard under ng agency..at sa manila ako nag apply.at na assign sa bulucan,mula pa noong 1995 at ako ay manila rates, pero itong 2013 ginawa na akong provincial rate…hanggang sa ngayon, At lahat ay bumaba..pati hulog sa sss,philhealt.bumaba din ang 13th month lahat po bumaba..at nais ko nalang mag resign , makakahuha ba ako ng seperation pay sa ganitong dahilan .kaya ako mag resign. Saan ako puwedeng lumapit para mabayaran ang aking serbisyo sa loob ng 19years na serbisyo sa agency..

    [Reply]

  239. Good day Sir,

    Would Non-dimmunition of benefits be applicable newly started companies? In my situation, I have been working for a company for 3 and a half years, the company is implementing an incentive program wherein if an employee stays with the company for three years he will get an incentive bonus of 10,000 to be given sixth months after the third year anniversary of said employee. This incentive program has not yet been experienced by anyone since we were pioneer employees of our department. (the incentive program is only applicable to our department since we have very different job descriptions from other departments of the company)I have decided to resign from my position in the company, putting my last day of work on Jan 31 (my date of employment was July 05). Now the company is telling me that I am not eligible to receive the incentive bonus though we fulfilled the six months after 3rd year of employment rule. Can this be construed as a non-diminution of benefit?

    [Reply]

  240. sa call po ako nagwowork, lumipat po ako ng ibang site pero same company p din but with a different account,pagkalipat ko po ng company site binawasan po nila ang basic salary ko…legal po ba yun?..pinagawa p nila ako ng waiver na pumpayag akong bawasan ang basic pay ko..wala po akong choice kc kelangan ko ng trabaho at di dapat ako mabakante

    [Reply]

  241. Armand Labindao Comment:
    February 24th, 2014 at 10:28 pm

    Sir, does the non-diminution of benefits also apply to foreign nationals working in a local (Philippine) company?

    [Reply]

  242. good day sir,

    i’m currently working sa isang reputable call center here sa philippines. i’ve been working for over 9 years and we’ve had annual increase since the start which have been based sa performance, we even call it “performance-based annual increase”… so for the employees like me, it has been our inspiration/aim to work so hard and be performers for a whole year just so we can get an annual increase. however this year, me together with a few co-workers were not provided with the annual increase, ang explanation lang na bngay nila samin is that mataas na daw ang sweldo namin and we should apply for a higher position with higher salary range. they refer dun sa taas ng sweldo namin as “ceiling” and yet ung mga sweldo namin ay hindi saktong pare pareho… i’ll take myself for an example, kaya po ako nagpursige kasi alam kong may mas mataas pa ang sweldo sakin – so yun yung naging basis ko na pwede pang tumaas ang sweldo ko.

    ang tanung po namin, pwede po ba talaga nilang gawin yun. na basta na lang magdecide na hindi kami bigyan ng increase on the basis na mataas na sweldo namin when in fact dapat lang naman tumaas dahil sa tenurity namin sa work and cympre pinaghirapan naman in the past na annual increase

    pwede po bang mag-apply sa situation namin itong “principle of non-diminution of benefits”?

    naccurious po kami kung meron po ba kaming karapatan na magreklamo at magdemand ng increase… ang basic salary din po kasi namin ang pagccomputean ng retirement fee namin… naisip lang po namin na kahit tumagal pa kami ng 10 yrs, 20 or 30yrs kung mastuck kami sa same na sweldo, parang hindi worth it.

    sana po matulungan nyo naman po kami sa inquiry namin… at least man lang po maliwanagan kami on whether we should just accept this faith or if we really have a chance to stand up and fight for what we deserve

    thank you po.

    [Reply]

    admin Reply:

    Check your employment contract or other agreement if the annual increase is stated there. If it is there, it cannot be withdrawn since that would tantamount to breach of a contractual obligation.

    If it is not in your contract, but the practice has been in existence over long period of time, and it was being implemented consistently and deliberately, it may likewise not be withdrawn unilaterally since that would be tantamount to diminution of benefits.

    [Reply]

    Ricky Reply:

    Good day!i am currently employed just this week my child was admitted to the hospital I check with Philhealth for my contributions certification I found out that there were no remittance paid for my fourth quarter. I was on my maternity leave starting September 2013 CS and back to work Dec 2013. Who should be responsible for my Philhealth remittances during my maternity leave?thank you

    [Reply]

  243. The company decided to change the denominator from 365 to 313. They want to use the 313 factor for Equivalent Monthly Rate because they are just working for 6 days.
    Example:
    Minimum wage is P327.00
    EMR = 365 Factor = (327*365) = 9,946.25
    EMR=313 Factor = (327*313) = 8,529.25
    Difference 1,417.00
    My proposal for the changes in the payroll would be basic pays is 8,529.25 the difference is 1,417.00 will be charge to De Minimis Allowances. There will be no changes on the gross pay and the daily rate for OT and other rate but the basic pay, tax and statutory benefits decreases. It was resulted to an increase of net pay compared to the existing computation.
    With this changes, is their any violation on labor code? If there is? Please elaborate.

    [Reply]

  244. Good day Sir.

    I’m still an active employee of SPi Global Makati. I resigned and rendered 30days and my last day is on april 15th. Yesterday i was rushed at Our lady of Lourdes hospital which is an accredited hospital of Medicard. But when they try to verify my coverage to the said healthcare, i was shocked hearing that my status to them is already resigned! They said SPi updated my status to them since april 8. Again, i’m out effective april 15! Without any advice, SPi just did that! But i’m still coming to work because i’m still rendering. Aside from concealment Sir, (because they didn’t disclose about that to me) is there any other illegal move they did in my case? Thank you.

    [Reply]

  245. Ryan Rudolf Oba Comment:
    April 16th, 2014 at 04:24 am

    To Whom It May Concern,

    Hope you could help me out with my current situation. Im working for Company A for 6 years, turning 7 years this Nov 2014. Every year in April, I am given a performance bonus. This was consistent every year until April of last year. For this year I did not receive any. They are saying because I got promoted and I am not included to that performance bonus anymore. They are also asking for my contract to check if it is stated about the bonus. But unfortunately I have already misplaced my contract. They are also now saying that bonus is only given to exempt employees which I am also a part of. I am exempted from OT / holiday pay. Is their argument valid? Is there anything else I can do to still get a performance bonus? Thanks in advance.

    [Reply]

  246. Lance Valenzuela Comment:
    May 15th, 2014 at 05:17 pm

    Scenario:
    A company grants separation pay/retirement benefits to employees that resign that at least have served for five years. It was explained during the signing of the contract.

    Then later on, the company decided to increase the required years of service rendered to be eligible for retirement benefits/separation pay from 5 years to 10 years.

    In the case an employee, who have served the company for let’s say, 9 years, resigned, and the company tells the employee that he won’t be getting any retirement benefits because of the newly amended policy (take note that the employee was hired years before the amendment of the policy), will this breach any labor law? Does the company have the right waive off retirement benefits accumulated by the employee?

    [Reply]

  247. nathalie perez Comment:
    June 4th, 2014 at 03:13 am

    Hi,

    I’ve been with my company for about 2 years now and expecting for a 2nd annual increase this coming September, however, our management said that there might be no increase for this year as our account revenue is not enough to consider the annualization in relation to that they also mentioned that they didn’t included it in the budget for this year disclaiming that it is not also included in our contract so there’ll be no problem with that. We ask some of the tenured agents on the company who have been there for 4 years and said that they have given those benefits for 4 years. They say that the annual increase is upon the discretion of the company but our question is, if it’s upon the discretion of the company all employees should be enjoying that regardless of the account revenue. Do we have the right to file a complaint?

    [Reply]

  248. Hi Sir and Ma’am,

    I am working in a back office call center and I am wondering if this kind of business is still covered by our labor law. Another question will be, is it even legal for a company who provided me as an employee since 2011 and we have been receiving our usual appraisal every year revoke what they have usually gives their employee simply because they claim that they have a very low revenue for this year?

    [Reply]

  249. Richelle Gasataya Comment:
    June 5th, 2014 at 08:51 am

    Dear Sir,
    I am currently working in a Water District for 6 years and for 3 consecutive years I am receiving a Mid Year Financial Assistane, Year End Financial Assistance and Grocery Allowance/Gift Certificates starting the year when I was a regular employee of the company. My problem is that, this year there is a change of management and those benefits that I am receiving will be stopped because they said that only employees hired on or before December 1999 will be given those benefits. Can I still appeal this matter and can I still receive these benefits regardless of their reason, since I am already receiving it before?

    [Reply]

  250. Dear Sir,
    My company acquired another firm but with 80% share only. With this, there are some positions opened to us and I grabbed the opportunity given it is a promotion in March 2013. All my 201 files were transferred. So I was considered as resigned employee o the previous one, but was a day 1 regular to the new firm. Although my basic salary increased there are a lot of my benefits lost. I still enjoyed my leaves to the previous company 16 VL, 16 SL, and 5 EL. Where from my previous company VLs were paid when not used. Come year end 2013, my excess VLs were no longer paid. Since as per new company, they don’t pay for unused VLs. Can I still claim for the excess VLs not paid? Also, is it just that my benefits were reduced? Considering the company that I transferred to is also a member of the group of company I worked before. Thank you.

    [Reply]

  251. urduja caguioa Comment:
    June 29th, 2014 at 04:47 pm

    Dear sir,
    I AM in a private school for more than 15 years. Is it considered diminution of benefits/salary when I DO exactly the same kind of work and have the same number of loads but is given a lower compensation on the third year because of a new scheme in computing extra load?
    May I further ask if there is any violation committed when a particular work load has lower compensation just because it is part of the overload whereas when that same load is given to another employee but is computed as part of her regular load, she gets a higher rate compared to the one who has it as overload.
    Tnx po.

    [Reply]

  252. urduja caguioa Comment:
    June 29th, 2014 at 05:02 pm

    Dear sir,
    Our school’s old ranking scheme gives 1 ranking point for every 5 years stay in school. The schoolyear before they “initially” re-ranked us marked my 15th year of service. I expected to be given 1 ranking point the same way I was given on my 10 years of service. But it was not given because the HR said that they are implementing a new ranking system. Is this considered a diminution of benefits?
    Tnx again.

    [Reply]

  253. ROBERTO C. BAYLON JR. Comment:
    July 6th, 2014 at 03:08 pm

    Dear Sir,

    I would like to ask for your advice with regards to my concern about non-diminution of benefits. I am a permanently employee of a manufacturing firm. I was originally hired as a regular employee under our company Head office. Last year, the company initiated to transfer me in a separate department located in Negros Plantsite. It was beneficial on my part since may family is situated in Negros. However, Benefits and allowances given to employees in Head offices was much favorable compared to Plantsite. The initial agreement was that I will be receiving the same benefits as an employee in head office. Recently, due to certain issues, company advised me that if I want to be permanently stationed in Plantsite, my benefits and other allowances will have to be aligned with the employees in plantsite. Kindly confirm if move done by my employer is valid and is there any violation of my rights as an employee. Thank you.

    [Reply]

    admin Reply:

    That might be diminution of benefits. Transfer cannot result to reduction of salary and benefits.

    [Reply]

  254. Good day Atty.,

    Our company will be celebrating it’s 15th anniversary in September. Top management has decided to have a simple celebration at the company canteen instead of the usual family day at a theme park (practiced since the 5th anniversary). The employees are saying that there’s a dimunition of benefit because the previous years that there’s no family day celebration at a theme park, the management gives gift checques instead. The company’s financial status for the past 3 months is not good. Please advise if the management can do away with the gift cheque. Thank you

    [Reply]

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