8. ZAYBER JOHN B. PROTACIO vs. LAYA MANANGHAYA & CO. and/or MARIO T.

MANANGHAYA
G.R. No. 1686! Mar"# $% $&&' () Cr*s +*,-.roa
Topic: Exceptions to the Non-diminution RuleBONUS not part of basic salary!a"e
+ACT/0
1. #pril $% $&&' - Respondent firm hired petitioner as 1a2 3ana,.r( )e !as subse*uently promoted to the position of Senior Tax +ana"er(
On ,$ October $&&-% petitioner !as a"ain promoted to the position of Tax .rincipal(
a( .etitioner recei/ed a yearly lump sum amount durin" the first t!o yearsof his employment% !ith the payments made to him after
the annual net incomes of the firm had been determined(
$. #u"ust 0,% $&&& petitioner resi"ned effecti/e 0, September $&&&(
a( 1ecember $% $&&&- petitioner sent a letter to respondent firm demandin" the immediate payment of his $0th month pay% the cash
commutation of his lea/e credits and the issuance of his $&&& 2ertificate of 3ncome Tax 4ithheld on 2ompensation( T!o more
demand letters !ere sent(
Respondent firm failed to act upon the demand letters
4. 1ecember $5% $&&& - petitioner filed before the N6R2 a complaint for the non-issuance of petitioner7s 4-8 tax form for $&&& and the non-
payment of the follo!in" benefits: 9$: "as# .5-*va6.n1 o7 8.1*1*on.r9s 6.av. "r.d*1sin the amount of .55%;'-(',< 98: proportionate $0th
month pay for the year $&&&< 90: reimbursement claims in the amount of .$&%,$8(,,< and 9;: 6-38 s-3 8a) 7or 1#. 7*s"a6 ).ar 1''' in
the amount of .'-;%-5'(-,( .etitioner also sou"ht moral and exemplary dama"es and attorney7s fees(
!. LA: respondents to =ointly and solidarily pay complainant% amon" the other payments prayed for% the cash /alue of the lea/e credits and
the lump sum pay for the fiscal year of $&&&(
. NLRC: 1ecision dated >une -% 8,,8 is hereby #ffirmed !ith the modification 9as to amount of reimbursements
6. CA: Re/ersed N6R2 and 6# by reducin" the monetary a!ard( No a:ard 7or ).ar;.nd 6-38 s-3 8a) and r.d-".d "as# va6-. o7
8.1*1*on.r9s 6.av. "r.d*1s.
I//<E0 4ON petitioner7s benefits !ere diminished in /iolation of the Non-diminution rule in the 6abor 2ode(
HEL=0 .artly "ranted( 2# affirmed !ith modification(Respondents are liable for the underpayment of the cash e*ui/alent of petitioner7s lea/e credits
in the amount of .0&%?55(?,(
RATIO0
The nature of the @E#R-EN1 6U+. SU+ bein" demanded by petitioner is characteriAed as a>s#ar. *n 1#. *n".n1*v. "o38.nsa1*on
8ro,ra3>aBa BONUS - not a profit-sharin" arran"ement bet!een petitioner and respondent
o The 8a)3.n1 1#.r.o7 1o non;8ar1n.rs o7 1#. 7*r3 6*?. #.r.*n 8.1*1*on.r !as d*s"r.1*onar) on the part of the chairman and
mana"in" partner comin" from their authority to fix the compensation of any employee based on a share in the partnership7s net
income(
o T#. d*s1r*(-1*on (.*n, 3.r.6) d*s"r.1*onar)% 1#. ).ar;.nd 6-38 s-3 8a)3.n1 3a) 8ro8.r6) (. "ons*d.r.d as a ).ar;.nd
(on-s or *n".n1*v.(
o 2ontrary to petitioner7s claim% the "rantin" of the year-end lump sum amount !as precisely d.8.nd.n1 on 1#. 7*r39s n.1 *n"o3.<
hence% the same !as payable only after the firm7s annual net income and cash position !ere determined(
>Bon-s> is a "ratuity or act of liberality of the "i/er( 3t is somethin" "i/en in addition to !hat is ordinarily recei/ed by or strictly due the
recipient(# bonus is "ranted and paid to an employee for his industry and loyalty !hich contributed to the success of the employer7s
business and made possible the realiAation of profits(
o Cenerally% a bonus is not a demandable and enforceable obli"ation( 3t is so only !hen it is made part of the !a"e or salary or
compensation( 4hen considered as part of the compensation and therefore demandable and enforceable% the amount is usually fixed(
3f the amount !ould be a contin"ent one dependent upon the realiAation of the profits% the bonus is also not demandable and
enforceable(
Philippine Duplicators, Inc. v. NLRC: *7 1#. (on-s *s 8a*d on6) *7 8ro7*1s ar. r.a6*@.d or a ".r1a*n a3o-n1 o7 8rod-"1*v*1) a"#*.v.d% *1
"anno1 (. "ons*d.r.d 8ar1 o7 :a,.s( 3f the desired "oal of production is not obtained% of the amount of actual !orB accomplished% the
bonus does not accrue( On6) :#.n 1#. .386o).r 8ro3*s.s and a,r..s 1o ,*v. :*1#o-1 an) "ond*1*ons *38os.d 7or *1s 8a)3.n1%
s-"# as s-"".ss o7 (-s*n.ss or ,r.a1.r 8rod-"1*on or o-18-1% do.s 1#. (on-s (."o3. 8ar1 o7 1#. :a,.(
The "rantin" of a bonus is (as*"a66) a 3ana,.3.n1 8r.ro,a1*v. !hich cannot be forced upon the employer !ho may not be obli"ed to
assume the onerous burden of "rantin" bonuses or other benefits aside from the employees7 basic salaries or !a"es(
o Respondent firm isA-s1*7*.d *n d."6*n*n, 1o ,*v. 1#. (on-s to petitioner on account of the latter7s unsatisfactory performance(