CHRISTMAS BONUSES & HOLIDAY CHEERS

[Published in Manila Bulletin last December 2011]

The season of sumptuous feast and merrymaking is finally here. If you are currently employed, it is a time of bounty as bonuses, 13th month pay and other goodies are in store.

I recently received a letter from a reader asking about 13th Month Pay, Midyear and Christmas bonuses. There are, of course policies or regulations that companies follow in the administration of these benefits. Let me share with you the letter to enlighten you a bit on how HR departments come up with these specials…


QUESTIONS FROM A READER:

Good day. I just want to ask regarding final pay… In my girlfriend’s list of company benefits, there’s Christmas and Mid-year bonus. Her position is officer level, but she resigned last August 2010. The company said she is not anymore entitled to the Christmas and Mid-year bonus because she resigned in the middle of the year. However, it’s not clearly stated in the company policy that employees who resign are not entitled to bonuses if they resigned before bonuses are released. Does my girlfriend have the right to demand these from the company? Is it fair and just for the company to do this? Hope you could help me on this matter. Thank you.

MY REPLY:

Before anything else, for the sake of clarity, let me just explain that Bonuses and 13th month pay are two different things.

Under the labor code of the Philippines, the company is mandated to provide for 13th month pay for all employees of the company. So your girlfriend is entitled to the pro-rated portion of her 13th month pay. This should be computed and included in her final pay.

However, bonuses are different from 13th month pay.

A bonus is any amount granted and paid to an employee for his/her industry and loyalty which contributed to a company's profitability. It is a means for its owners to show their gratitude to the people who have stayed and worked hard for the company. However, it remains a management prerogative, something that is given voluntarily and out of the generosity of the employer.

In effect, this means that a bonus is not a demandable and enforceable obligation, unless when it is made part of the wage, salary or compensation of the employee.

There are instances wherein a bonus may become demandable. For instance, if the bonus have already become a long-standing practice or policy. In this case, the employer can no longer withdraw as it will be considered a "diminution of benefits", but this situation usually only applies to current employees of the company. (reference: jlp-law.com)

So to answer your question, you will have to see if your girlfriend is indeed still eligible to receive the said bonus. There is usually a cut-off date where bonuses are computed, as well as a release date. If she resigns earlier than those key dates, then she will most likely not be entitled to the bonus.

Aside from this, you will have to check her employment status. Some companies have specific criteria for awarding of bonuses. So at the most, your girlfriend will have to clarify with the HR department the basis for the computation of bonuses, the cut-off date and time of release, the policies, terms and conditions associated with the bonus.


CHRISTMAS FESTIVITIES

Aside from bonuses and mandatory 13th month pay, your HR department usually holds the challenging task of organizing Christmas parties and events. Different companies have different ways of celebrating this special time of the year. Some companies go on teambuilding and outings, others have extravagant entertainment competitions, while there are those who do outreach programs.

Most Filipinos enjoy Christmas parties because we are a country full of social beings who love to eat. However, I’ve noticed that there are a few tired souls who tend to dislike going to these events. I guess, to some, after hopping from one party to another, they get weary.

But Christmas parties are actually a good opportunity for you to bond and get to know your co-workers better. In a relaxed atmosphere, you can deepen relationships or just have fun and laugh a little. The more you socialize, the more opportunities that will come your way. Attending and participating in these events will keep you involved in your company. It will get you excited and you’ll be able to show gratitude for the hard work your HR department has painstakingly given for all of you. A simple smile or sincere thanks is enough to make your HR team feel appreciated. This will then encouraged them to be creative and make each Christmas celebration exciting.

Best of all, you might just win a thing or two from raffles prizes and exchange gifts that are staples in these Holiday gatherings!

So the next time you receive an invite, whether it’s from your company or social circle, take the time to join and spread cheers this Christmas. Open your heart to lots of joy and blessings this holiday season. Merry Christmas and have a bountiful new year!