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189 274

Parties Involved: Petitioner vs. Respondent

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1. Traders Royal Bank vs. NLRC, 189 SCRA 274 , August 30, 1990

Case Title : TRADERS ROYAL BANK, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION & TRADERS ROYAL
BANK EMPLOYEES UNION, respondents.
Case Nature : PETITION for certiorari to review the decision of the National Labor Relations Commission.
Syllabi Class : Labor Laws|Benefits|Bonus|Definition of
Syllabi: 1. Labor Laws; Benefits; Bonus; Definition of; Granting of bonus is a management prerogative which
cannot be forced upon the employer. 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 (Aragon vs. Cebu Portland Cement Co., 61 O.G. 4597). It is something given in addition to
what is ordinarily received by or strictly due the recipient. 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
x x x (Kamaya Point Hotel vs. National Labor Relations Commission, Federation of Free Workers and Nemia
Quiambao, G.R. No. 75289, August 31, 1989).
2. Labor Laws; Benefits; Bonus; Decrease in the mid-year and year-end bonuses does not constitute a
diminution of salaries; Reasons. Private respondents contention, that the decrease in the mid-year and year-end bonuses constituted a
diminution of the employees salaries, is not correct, for bonuses are not part of labor standards in the
same class as salaries, cost of living allowances, holiday pay, and leave benefits, which are provided by
the Labor Code.
Division: FIRST DIVISION
Docket Number: G.R. No. 88168
Counsel: San Juan, Gonzalez, San Agustin & Sinense, E.N.A. Cruz, Enfero & Associates
Ponente: GRIO-AQUINO
Dispositive Portion: WHEREFORE, the petition for certiorari is granted. The decision of the National Labor Relations
Commission is modified by deleting the award of bonus differentials to the employees for
1986. In other respects, the decision is affirmed. Costs against the respondent union.
Citation Ref: 167 SCRA 99
View Decision
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