Bonus versus 13th-month pay

Bonus versus 13th-month pay " We were expecting for a bonus but we were told that we would not receive any bonus for 2010. Is my employer violating any law if he will not give our bonus?Dindo Dear Dindo,A bonus given by an employer is usually based on the production, income or from the savings earned by the company or based on the performance of an employee. However, there is no law that requires an employer to give his employees a bonus because it is not one of the monetary benefits sanctioned by law. Hence the granting of such is based on the discretion of the employer.On the other hand, an employer is required under Presidential Decree (PD) 851 (requiring all employers to give 13th-month pay) to give his employees a 13th-month pay. Under said law all covered employers are required to give their rank-and-file employees a 13th-month pay regardless of the amount of their basic salary, designation, or employment status and irrespective of the method by which their wages are paid, provided that they have worked for at least one month (Revised Guidelines on the Implementation of 13th-Month Pay Law).The minimum 13th-month pay required by law should not be less than 1/12 of the total basic salary earned by an employee within a calendar year. The required 13th-month pay shall be paid not later than December 24 of each year. An employer, however, may give to his employee one half of the required 13th-month pay before the opening of the regular school year and the other half on or before the 24th of December of every year. The frequency of payment of this monetary benefit may be the subject of agreement between the employer and the recognized/collection bargaining agent of the employees.Some persons mistakenly name 13th-month pay as bonus. If the benefit you were pertaining to is 13th-month pay, your employer is violating the provisions of PD 851 for not giving the monetary benefit that you are entitled.Otherwise your employer has no liability under the law if the monetary benefit is other than 13th-month pay. However, if the giving of such bonus has been the practice of the employer, he may be liable under Article 101 of the Labor Code regarding Diminution of Benefits.Lastly, we wish to remind you that the above legal opinion is solely based on the facts you have narrated and our appreciation of the same. The opinion may vary when other facts are changed or elaborated. Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net or via text message (key in: Times dearpao and send to 2299)." - https://www.affordablecebu.com/