FIRST DIVISION
G.R. No. 200010, August 27, 2020
HOME CREDIT MUTUAL BUILDING AND LOAN ASSOCIATION AND/OR RONNIE B. ALCANTARA, Petitioners, v. MA. ROLLETTE G. PRUDENTE, Respondent.
D E C I S I O N
LOPEZ, J.:
There is no greater crime than desire.
There is no greater disaster than discontent.Whether an employer violated the rule on non-diminution of benefits when it adopted a cost sharing scheme in its car plan for employees is the core issue in this Petition for Review on Certiorari under Rule 45 of the Rules of Court assailing the Court of Appeal's (CA) Decision1 dated August 31, 2011 in CA-G.R. SP No. 117332, which reversed the findings of the National Labor Relations Commission (NLRC).
There is no greater misfortune than greed.
Therefore:
To have enough of enough is always enough- Tao Te Ching, Chapter 46
WHEREFORE, absent grave abuse of discretion or serious error in the resolution of the issues raised in this case. We SUSTAIN the disposition a quo.Dissatisfied, Rollette elevated the case to the CA through a petition for certiorari. On August 31, 2011, the CA reversed the labor tribunals' findings. It held that the car plan at full company cost or on a non-participation basis has evolved into a company practice. The employer cannot unilaterally withdraw or reduce the benefit. Also, the service vehicle given to Rollette is not akin to a bonus or an act of gratuity which can be withdrawn at will. The car plan was part of Rollette's hiring package. Lastly, there was no competent evidence showing that the car provision was contingent on the realization of company profits.5 In sum, the new scheme diminished Rollette's benefits as she will be forced to shell out part of the vehicle's cost,6 to wit:cralawred
SO ORDERED.4
WHEREFORE, the petition is GRANTED. The Decision dated August 5, 2010 and Resolution dated October 6, 2010 of the Fifth Division of the National Labor Relations Commission are REVERSED and SET ASIDE and a new one entered:Home Credit sought reconsideration but was denied.8 Hence, this recourse.9
(1) Ordering Home Credit Mutual Building and Loan Association to provide the full car benefit of the petitioner without diminution consisting of a car service of the same worth or value as that of Honda Civic LXi on a non-participatory basis (full company cost) with transfer of ownership after five (5) years.
(2) Ordering Elome Credit Mutual Building and Loan Association to pay Ma. Rolette Prudentc moral damages in the amount of Fifty Thousand Pesos (P50,000.00), Philippine Currency, exemplary damages in the amount of Fifty Thousand Pesos (P50,000.00), Philippine Currency and attorney's fees in the amount often percent (10%) of the total award.
SO ORDERED.7 (Emphasis in the original.)
ART. 100. Prohibition against Elimination or Diminution of Benefits. - Nothing in this Book shall be construed to eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation of this Code. (Emphasis Supplied.)In Arco Metal Products, Co., Inc. v. Samahan ng mga Manggagawa sa Arco Metal-NAFLU (SAMARM-NAFLU, et al.),13 we stressed that the principle of non-diminution of benefits is founded on the constitutional mandate to "protect the rights of workers and promote their welfare" and "to afford labor full protection." In his separate concurring opinion, Justice Arturo Brion clarified that the basis for non-diminution rule is not Article 100 which refers solely to "benefits enjoyed at the time of the promulgation of the Labor Code" thus:cralawred
x x x Article 100 refers solely to the non-diminution of benefits enjoyed at the time of the promulgation of the Labor Code. Employer-employee relationship is contractual and is based on the express terms of the employment contract as well as on its implied terms, among them, those not expressly agreed upon but which the employer has freely, voluntarily and consistently extended to its employees. Under the principle of mutuality of contracts embodied in Article 1308 of the Civil Code, the terms of a contract - both express and implied - cannot be withdrawn except by mutual consent or agreement of the contracting parties, x x x14 (Emphasis supplied.)Clearly, the non-diminution rule applies only if the benefit is based on an express policy, a written contract, or has ripened into a practice.15 In this case, Rollette's claim that the car plan was part of her hiring package was unsubstantiated. Admittedly, Home Credit has no existing car plan at the time Rollette was hired. Rollette's employment contract does not even contain any express provision on her entitlement to a service vehicle at full company cost.16 Therefore, it is incongruous for the CA to conclude that the grant of a service vehicle was part of Rollette's hiring package.
Endnotes:
* Designated additional Member per Raffle dated June 29, 2020.
1Rollo, pp. 51-68; penned by Associate Justice Ramon A. Cruz, with the concurrence of Associate Justices Jose C. Reyes, Jr. (now a Member of this Court) and Antonio L. Villamor.
2Id. at 1 19-126.
3Id. at 123-126.
4Id. at 128.
5Id. at 66-67.
6Id. at 51-68.
7Supra note 5.
8Rollo, pp. 70-71.
9Id. at 8-45.
10University of the East v. University of the East Employees' Association, 673 Phil. 273, 286 (2011).
11Eastern Telecommunications Philippines. Inc. v. Eastern Telecoms Employees Union, 681 Phil. 519, 535 (2012); Tiangco, et al. v. Hon. Leonardo. Jr., et al., 207 Phil. 235 (1983).
12 Constitution, Art. II, Sec. 18: and An. XIII. Sec. 3.
13 577 Phil. 1 (2008), citing CONSTITUTION, Article II, Section 18 and Article XIII, Section 3.
14 Id. at 12.
15Central Azucarera de Tarlac v. Central Azucarera de Tarlac Labor Union-NLU, 639 Phil. 633, 641 (2010).
16Rollo, p. 108.
17Makati Stock Exchange, Inc., et al. v. Campos, 603 Phil. 121, 132-133 (2009).
18Vergara, Jr. v. Coca-Cola Bottlers Philippines, Inc., 707 Phil. 255, 262-263 (2013).
19Galang, et al. v. Boie Takeda Chemicals, Inc., et al., 790 Phil. 582, 602 (2016).
20Barroga v. Data Center College of the Philippines, et al., 667 Phil. 808, 820 (2011).
21Aguanza v. Asian Terminal, Inc., et al., 612 Phil. 1009, 1018 (2009).