July 27, 2014

Ms. Jena Poles

Guadalupe, Cebu City

Dear Ms. Jena Poles:

Here is the opinion you requested. The facts, gathered from you and your documents, are
as follows:

You are designated as manager of the Sure Rich Corporation,engaged in furniture
business and export. You personally report to the President of the corporation Ben Aquino who
usually gives instructions for the strict implementations of company policies pertaining to the
disciplinary measures of the company. You are assigned to manage and supervise the quality
control department with about 300 workers. You did your job pretty well that you are a
consistent recipient of the best manager award, which entitles you to travel abroad for a week
whenever the target sales quota of the company is achieved.

The company, however does not allow you to absent even for a day as it operates on a
no work no pay policy. You are required to work even up to midnight to make sure that orders
for the quality furnitures are duly complied with without, getting paid overtime pay.


The issue here is clear: its whether or not you are entitled to service incentive leave pay
and overtime pay and also whether or not the travel incentive constitute a violation of the non-
diminution rule.

Under article 82 of the Labor Code, managerial employees are not covered under the title
with respect to the working conditions and rest periods; hence you are not entitled to a
service incentive leave as provided in the law.

As for the issue regarding the non-diminution of benefits, the provision issue is not
governed under Art.100 of the labor code. Article 100 does not apply to a benefit whose grant
depends on the existence of certain conditions, the benefit is not demandable if those pre
conditions are absent.

The supreme court explained said provision in the case of Philippine Duplicators,
Inc vs. NLRC, 311 Phil. 407 (1995) saying that:

The court held that if the desired goal of production is not obtained, the bonus does
not accrue. Only when the employer promises and agrees to give without any conditions imposed
for its payment such as success of business or greater production of output does the bonus
become a part of the wage.



One thing: my opinion is based on the laws and the jurisprudence applicable to your
situation. If by any circumstance you take your plight to court, I am confident that the case will
be decided in your favor.

Very truly yours,

Atty. Stephen Jorge A. Esparagoza