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  • Traders Royal Bank v. NLRC - Case Digest

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    earl0917
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    Respondents filed a complaint against Petitioners for diminishing employee benefits such as mid-year and year-end bonuses. Petitioners claimed that year-end bonuses depended on the bank's profitability. The Supreme Court held that bonuses are not part of labor standards and cannot be demanded as a right, as they are a gratuity granted at the employer's discretion based on management prerogative and not obligatory beyond basic salaries or wages.

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    Labor Standards Case Digest Traders Royal Bank v. NLRC

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    Respondents filed a complaint against Petitioners for diminishing employee benefits such as mid-year and year-end bonuses. Petitioners claimed that year-end bonuses depended on the bank's profitability. The Supreme Court held that bonuses are not part of labor standards and cannot be demanded as a right, as they are a gratuity granted at the employer's discretion based on management prerogative and not obligatory beyond basic salaries or wages.

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    804 vues1 page

    Traders Royal Bank v. NLRC - Case Digest

    Transféré par

    earl0917
    Respondents filed a complaint against Petitioners for diminishing employee benefits such as mid-year and year-end bonuses. Petitioners claimed that year-end bonuses depended on the bank's profitability. The Supreme Court held that bonuses are not part of labor standards and cannot be demanded as a right, as they are a gratuity granted at the employer's discretion based on management prerogative and not obligatory beyond basic salaries or wages.

    Droits d'auteur :

    © All Rights Reserved
    Téléchargez comme DOCX, PDF, TXT ou lisez en ligne sur Scribd
    Signaler comme contenu inapproprié
    sur 1

    TRADERS ROYAL BANK V.

    NLRC
    G.R. NO. 88168, AUG 30, 1990
    FACTS:
    Respondent filed a letter-complaint against petitioner for the diminution of
    benefits being enjoyed by the employees since time immemorial such as
    mid-year bonus computed from two months gross pay to two months basic
    pay and year-end bonus from 3 months gross to only 2 months.
    Petitioner insisted that the practice of giving them bonuses at years end,
    would depend on how profitable the operation of the bank during the year.
    ISSUE:
    Whether or not bonuses are part of labor standards and therefore,
    demandable as a matter of right.
    HELD:
    No. A bonus is a gratuity or act of liberality of the giver which the recipient
    has no right to demand as a matter of right. It is something given in
    addition to what is ordinarily received by or strictly due the recipient. The
    granting of a bonus is basically a management prerogative which cannot be
    forced upon the employer who may not be obliged to assume the onerous
    burden of granting bonuses or other benefits aside from the employees
    basic salaries or wages.

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