335

Kamaya Port Hotel v. NLRC

177 SCRA 160
14
th
Month Pay
FACTS:
Respondent Memia Quiambao with thirty others were employed as hotel crew by the petitioner
amaya Port !otel and are also members o" pri#ate respondent $ederation o" $ree %or&ers '$$%() *ue
to the pro"its earned by its business operations+ mana,ement ,ranted a 14
th
month pay to its employees
which started on 1-7-) !owe#er+ on 1-./+ operations o" the company ha#e ceased to ,i#e way to its
con#ersion into a trainin, center "or 0ibyan scholars) Con#ersely+ the 0ibyans pre1terminated the pro,ram
on the same year and caused the total closure o" the business) Pri#ate respondent $$% "iled a complaint
a,ainst the petitioner "or ille,al suspension+ #iolation o" the C2A+ and non1payment o" the 14
th
month pay)
Records howe#er show that the case was submitted "or decision on the sole issue o" alle,ed non1
payment o" the 14
th
month pay "or the year 1-./)
0abor Arbiter ruled in "a#or o" the employees) 30RC a""irmed the decision)
ISSUE:
%hether the 14
th
month pay can be withdrawn without #iolatin, Article 100 o" the 0abor Code)
HELD:
34) 5t is patently ob#ious that Article 100 is clearly without applicability) 6he date o" e""ecti#ity o"
the 0abor Code is May 1+ 1-74) 5n the case at bar+ petitioner e7tended its 14
th
month pay be,innin, 1-7-
until 1-.1) %hat is demanded is payment o" the 14
th
month pay "or 1-./) 5ndubitably "rom these "acts
alone+ Article 100 o" the 0abor Code cannot apply) Moreo#er+ there is no law that mandates the payment
o" the 14
th
month pay) 6his is emphasi8ed in the ,rant o" e7emption under Presidential *ecree .91 '1:
th
Month Pay 0aw( which states; <=mployers already payin, their employees a 1:
th
month pay or its
e>ui#alent are not co#ered by this *ecree)? 3ecessarily then+ only the 1:
th
month pay is mandated)
@erily+ a 14
th
month pay is a misnomer because it is basically a bonus and+ there"ore+ ,ratuitous in
nature) 6he ,rantin, o" the 14
th
month pay is a mana,ement prero,ati#e which cannot be "orced upon the
employer) 5t is somethin, ,i#en in addition to what is ordinarily recei#ed by or strictly due the recipient) 5t
is a ,ratuity to which the recipient has no ri,ht to ma&e a demand)
336
Davao Frut! Cor". v# A!!o$ate% La&or U'o'!
//9 SCRA 96/
*iminution
FACTS:
Respondent Associated 0abor Anions 'A0A(+ "or and in behal" o" all the ran&1and1"ile wor&ers and
employees o" petitioner+ "iled a complaint be"ore the Ministry o" 0abor and =mployment+ a,ainst petitioner+
"or <Payment o" the 6hirteenth1Month Pay *i""erentials)? Respondent A0A sou,ht to reco#er "rom
petitioner the thirteenth month pay di""erential "or 1-./ o" its ran&1and1"ile employees+ e>ui#alent to their
sic&+ #acation and maternity lea#es+ premium "or wor& done on rest days and special holidays+ and pay
"or re,ular holidays which petitioner+ alle,edly in disre,ard o" company practice since 1-79+ e7cluded
"rom the computation o" the thirteenth month pay "or 1-./)
5n its answer+ petitioner claimed that it erroneously included items subBect o" the complaint in the
computation o" the thirteenth month pay "or the years prior to 1-./+ upon a doubt"ul and di""icult >uestion
o" law namely P* .91 and the Supplementary Rules and Re,ulations issued by *40=) A decision was
rendered in "a#or o" respondent A0A orderin, petitioner to pay the 1:
th
month pay di""erential o" their ran&
and "ile employees "or the year 1-./)
ISSUE:
%hether the inclusion o" payments "or sic&+ #acation and maternity lea#es+ premiums "or wor&
done on rest days and special holidays+ and pay "or re,ular holidays "or the computation o" the thirteenth
month pay ,i#en by employers to their employees under P* 3o) .91 can be e7cluded a"ter disco#ery o"
the contrary practice)
HELD:
President *ecree 3o) .91+ promul,ated on *ecember 16+ 1-79+ mandates all employers to pay
their employees a thirteenth month pay) 6he *epartment o" 0abor and =mployment issued on Canuary 16+
1-76 the <Supplementary Rules and Re,ulations implementin, P* 3o) .91? which de"ines the term <basic
salary?+ and that the monetary bene"its in >uestion are e7cluded in computin, the basic salary "or the
purpose o" determinin, the 1:
th
month pay) !owe#er+ petitioner computed