Bonus or special incentives

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.

1. Concept

“Bonus” – refers to 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. (Philippine National Construction Corporation v. NLRC, PNCC-TOEWU, G.R. No. 117240, 02 October 1997)

[T]he term “bonus,” as used in employment contracts, conveys an idea of something which is gratuitous, or which may be claimed to be gratuitous, over and above the prescribed usage which the employer agrees to pay. (Ibid.)

a. Management prerogative

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. (Producers Bank of the Philippines v. NLRC, Producers Bank Employees Association, G.R. No. 100701, 28 March 2001)

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. (Philippine National Con...

 



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