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PRODUCERS BANK OF PHILIPPINES v. NLRC

This case has been cited 2 times or more.

	GR No. 157775 2007-10-19	LEYTE IV ELECTRIC COOPERATIVE v. LEYECO IV EMPLOYEES UNION-ALU AUSTRIA-MARTINEZ, J.
In Union of Filipro Employees v. Vivar, Jr.[42] the Court held that "[t]he divisor assumes an important role in determining whether or not holiday pay is already included in the monthly paid employee's salary and in the computation of his daily rate". This ruling was applied in Wellington Investment and Manufacturing Corporation v. Trajano,[43] Producers Bank of the Philippines v. National Labor Relations Commission[44] and Odango v. National Labor Relations Commission,[45] among others.[46]
	GR NO. 155059 2005-04-29	AMERICAN WIRE v. AMERICAN WIRE CHICO-NAZARIO, J.
In the case of Producers Bank of the Philippines v. NLRC[29] we have characterized what a bonus is, viz: A bonus is an amount granted and paid to an employee for his industry and loyalty which contributed to the success of the employer's business and made possible the realization of profits. It is an act of generosity granted by an enlightened employer to spur the employee to greater efforts for the success of the business and realization of bigger profits. The granting of a bonus is a management prerogative, something given in addition to what is ordinarily received by or strictly due the recipient. Thus, a bonus is not a demandable and enforceable obligation, except when it is made part of the wage, salary or compensation of the employee. Based on the foregoing pronouncement, it is obvious that the benefits/entitlements subjects of the instant case are all bonuses which were given by the private respondent out of its generosity and munificence. The additional 35% premium pay for work done during selected days of the Holy Week and Christmas season, the holding of Christmas parties with raffle, and the cash incentives given together with the service awards are all in excess of what the law requires each employer to give its employees. Since they are above what is strictly due to the members of petitioner-union, the granting of the same was a management prerogative, which, whenever management sees necessary, may be withdrawn, unless they have been made a part of the wage or salary or compensation of the employees.