Company Practice Must be Proven by Employee
Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate
Company practice is usually used as basis to claim diminution of benefit. The idea is that there is no express policy granting company practice. The claimant alleges that said benefit was removed without his consent.
Since there is nothing in writing granting such benefit, the claimant may allege that there is a company practice. While this is admitted, the claimant has to prove the existence of such practice with clear evidence.
In the case of Yushi Kondo vs. Toyota Boshoku (Phils.) Corporation, et al. (G.R. No. 201396. September 11, 2019), the locally hired Japanese employee claims that he was entitled to car and driver benefits. According to him, this was removed from him which resulted in not being able to report for work. Thus, he was “forced to resign.”
He filed a constructive dismissal case. It is relevant to define constructive dismissal in relation to diminution of benefit that is claimed to have ripened into company practice.
Constructive dismissal is defined as quitting or cessation of work because continued employment is rendered impossible, unreasonable or unlikely; when there is a demotion in rank or a diminution of pay and other benefits. (Page 103, Guide to Valid Dismissal of Employees, 2nd Edition by Atty. Elvin B. Villanueva citing Gan vs. Galderma Philippines, Inc., G.R. No. 177167, January 17, 2013.)
Aptly called a dismissal in disguise or an act amounting to dismissal but made to appear as if it were not, constructive dismissal may, likewise, exist if an act of clear discrimination, insensibility, or disdain by an employer becomes so unbearable on the part of the employee that it could foreclose any choice by him except to forego his continued employment. (Page 103, Guide to Valid Dismissal of Employees, 2nd Edition by Atty. Elvin B. Villanueva citing Gemina Jr. vs. Bankwise Inc. (Thrift Bank), G.R. No. 175365, October 23, 2013.)
The Supreme Court in the Yushi case held that to be considered as a regular company practice, it must be shown by substantial evidence that the giving of the benefit is done over a long period of time, and that it has been made consistently and deliberately.
There must be an indubitable showing that the employer agreed to continue giving the benefit knowing fully well that the employees are not covered by any provision of the law or agreement requiring the grant thereof. In sum, the benefit must be characterized by regularity and voluntary and deliberate intent of the employer to grant the benefit over a considerable period of time. The burden of proving that the benefit has ripened into practice rests in the employee.
In this case, the SC held that Yushi failed to prove that the car and driver benefits were also being enjoyed by other employees who held positions equivalent to his position, or that the benefits were given by the company itself with voluntary and deliberate intent. On the contrary, the record shows that these benefits were granted by Toyota’s former President specifically to petitioner at the time he was hired, in a verbal agreement.
As such, the grant of the benefits may be viewed more as an accommodation given to Yushi by virtue of him being a fellow Japanese working in a foreign, and presumably unfamiliar, land. He cannot demand a right to the service car and driver indefinitely, especially under new administration, when the benefit ostensibly sprung only from the magnanimity of his former superior rather than actual company practice.
Comments (14)
… [Trackback]
[…] Read More on on that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Find More on on that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More Info here on that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More here on that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Info to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Info to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Here you can find 439 additional Information to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Find More Info here to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More on that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More on that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Here you can find 8677 additional Information to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
… [Trackback]
[…] Read More here to that Topic: lvsbooks.com/company-practice-must-be-proven-by-employee/ […]
Comments are closed.