Company Practice Exists If The Act Of Extending Benefits Has Been Practiced For A Long Period Of Time And Shown To Be Consistent And Deliberate

Company Practice Exists If The Act Of Extending Benefits Has Been Practiced For A Long Period Of Time And Shown To Be Consistent And Deliberate

Company practice or policy to exist, it must be proven that the act of extending benefits of the CBA to managerial employees must have been practiced for a long period of time and must be shown to be consistent and deliberate.

Thus, the SC held that to be considered a company practice, the giving of the benefits should have been done over a long period of time, and must be shown to have been consistent and deliberate. The test or rationale of this rule on long practice requires an indubitable showing that the employer agreed to continue giving the benefits knowing fully well that said employees are not covered by the law requiring payment thereof. (Societe Internationale De Telecommunications Aeronautiques (SITA), et al. vs. Theodore L. Huliganga, G.R. No. 215504, August 20, 2018)

See the full digest of the case here

Learn more about Valid Dismissal of Employees

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