A bonus is the amount granted for
employees whether for (1) industry and/or loyalty (merit-based bonus scheme), (2)
based on the company’s performance or (3) a combination of the employee’s and
the company’s performance. Whatever type or scheme the bonus might be, payment
of which is discretionary or given at the prerogative of the employer. [1]
Based on what I know about our labor laws,
there is no existing provision in the Philippine Labor code which governs
payment of bonuses. However, I believe that there are generally accepted
principles related to bonus and/or incentive schemes.
One principle is that employers must
exercise the discretion fairly and reasonably when deciding to pay any bonus. In
addition, though the bonus is discretionary, a legitimate expectation may be
created where it has always been paid to employees. Most importantly, if
employees have met the criteria for the bonus, the employer cannot only pay the bonus to some employees and not to others.
[2]
Though there are no specific law related to
bonuses (to the best of my knowledge), it is my humble but considered opinion that
payment of bonus to some employees and not to others who all met the criteria
of the bonus may constitute a violation of
the equality clause under the Bill of Rights.
The equal protection clause of the Bill of
Rights provides that if persons are equally or similarly situated, they must be
treated equally. Specifically, Art. 3 Sec. 1 of the Constitution provides that
no person shall be deprived of life, liberty, or property without due process
of law, nor shall any person be denied the equal
protection of the laws. [3]
In countries with more mature labor laws,
if an employer refuses to pay an employee their bonus entitlement, when they
are entitled to it, they may file charges for breach of contract and may seek
arrears in wages. Hence, a well drafted bonus provisions are crucial in the
avoidance of unnecessary inconvenience both to the employer and the employee.
References:
[1] Basics on the Philippine Labor Law
[2] Human Resource Institute of New Zealand
[3] 1987 Philippine Constitution
