Philippine Labor Laws Labor and Employment 01 Non-diminution of benefits Employee Wages and Benefits 2010-06-01 Concept The principle of non-diminution of benefits states that: “any benefit and supplement being enjoyed by employees cannot be reduced, diminished, discontinued or eliminated by the employer.”[1] This principle is founded on the Constitutional mandate to “protect the rights of workers and promote their welfare,” and “to afford labor full protection.” Said mandate in turn is the basis of Article 4 of the Labor Code which states that “all doubts in the implementation and interpretation of this Code, including its implementing rules and regulations shall be rendered in favor of labor.”[2] Benefit and supplement definition Employee benefits are compensations given to employees in addition to regular salaries or wages.[3] Some benefits are legally required, e.g., social security benefits, medicare, retirement benefits, maternity benefits, service incentive leave, etc. Other benefits are offered by the employer as an incentive to attract and retain employees as well as increase employee morale and improve job performance.[4] Supplements include those benefits or privileges granted to an employee for the convenience of the employer, e.g., board and lodging within the company premises. Common application In employment setting, the principle of non-diminution of benefits finds application when a change initiated by the employer to existing company policies, specially matters concerning employee benefits, results in reduction, diminution or withdrawal of some or all of the the benefits already enjoyed by the employees. For example, if the employees of a certain company is traditionally granted 14th month pay, and the employer subsequently withdrew such benefit, or reduced its amount, the reduction or withdrawal is objectionable on the ground that it would result to diminution of benefits.
Posted on: Mon, 16 Sep 2013 08:17:43 +0000
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