Bonuses Philippines

Understanding Performance Pay Under Philippine Labor Law: A Question-and-Answer Guide

Question: Is performance pay part of the salary or an incentive that the company can take away?

Answer:

Performance pay is a contentious issue, often leaving employees and employers alike puzzled over its legal standing. Under Philippine law, particularly the Labor Code of the Philippines, the matter of performance pay or bonuses is dealt with cautiously.

Is Performance Pay Considered Salary?

The Philippine Labor Code differentiates between "salary" and "bonuses." Salary refers to the basic compensation given for services rendered, which is often fixed and is given regularly. Bonuses, on the other hand, are given in addition to the basic salary, usually as a form of incentive or reward.

Performance pay can fall under either category depending on how it is structured within the employment contract or company policy. If performance pay is guaranteed and regularly provided as compensation for work done, it may be considered part of the "salary." However, if the performance pay is discretionary or dependent on certain conditions (e.g., company performance, individual targets), then it is generally considered a "bonus" or an "incentive."

Can the Company Take It Away?

The company's ability to remove or modify performance pay depends on its classification as either salary or bonus and the specific terms set forth in the employment contract or company policies.

• If it is considered part of the salary: Any reduction or removal would be subject to labor laws governing salary deductions and modifications. This usually requires adequate notice and, in some cases, the consent of the employee or a representative body.

• If it is considered a bonus or incentive: The company generally has more flexibility in changing or removing it, provided they adhere to what's stipulated in the employment contract and/or the company's established policies. If the performance pay is deemed discretionary by the company, they can usually decide whether or not to grant it without violating labor laws.

It's essential to refer to your employment contract and any existing company policies for specifics on how performance pay is treated. If you believe your rights are being violated, it would be prudent to consult with a labor lawyer for advice tailored to your specific situation.

Conclusion

The classification of performance pay as either salary or a bonus significantly impacts its legal standing under Philippine law. Whether or not a company can modify or remove performance pay will largely depend on how it is described in employment contracts and company policies. Understanding this distinction is crucial for both employers and employees to navigate the complex landscape of performance-based compensation in the Philippines.

Disclaimer: This article is intended for informational purposes only and should not be construed as legal advice. Consult a legal expert for advice specific to your situation.

Eviction Philippines

Eviction Notice Due to Rental Arrears During the Pandemic in the Philippines

Query:

The individual has a rental balance of two months due to the pandemic. The landlord has refused to accept their monthly payments for the past few months, leading to a total balance of six months or 30,000 PHP (5k per month). Now the landlord has handed them an eviction notice.

Answer:

Relevant Laws:

• Republic Act No. 9161 or the "Rental Reform Act of 2002"
• Bayanihan to Recover as One Act (Bayanihan 2)

Can the Landlord Issue an Eviction Notice?

According to the "Rental Reform Act of 2002," landlords have the right to issue eviction notices for non-payment of rent. However, due to the pandemic, special provisions under the Bayanihan 2 Act offer temporary relief for tenants. If these conditions are met, eviction may be temporarily halted.

What Can You Do?

1. Negotiate with the Landlord: Due to the special circumstances of the pandemic, try to negotiate a payment plan for the back rent.

2. Document Communication: Keep records of any communication with the landlord, as well as any attempts to pay the rent, as evidence.

3. Check Local Policies: Some local government units have specific ordinances that provide additional protection to tenants during the pandemic. Make sure to verify these.

4. Consult a Lawyer: Given the legal complexities, consult a lawyer to understand your rights and responsibilities better and to help you take appropriate legal action if necessary.

Summary:

While landlords generally have the right to issue eviction notices for unpaid rent, the Bayanihan 2 Act and other special measures due to the pandemic might offer some temporary relief. Consult a lawyer and check local ordinances for your specific situation.

Note: This article is intended for informational purposes only and should not be construed as legal advice. Consult a qualified lawyer for advice tailored to your specific circumstances.

Stolen Property Philippines

Legal Remedies for a Borrower Using Stolen Collateral in the Philippines

Query:

The individual allowed someone to borrow money, accepting collateral worth less than the borrowed amount. Later, it was discovered that the collateral was not owned by the borrower and had been stolen. The individual wants to know what kind of case to file and whether this situation qualifies for estafa.

Answer:

Relevant Laws:

• Estafa is generally punishable under Article 315 of the Revised Penal Code.
• Theft is covered under Article 308 of the Revised Penal Code.

Is This Eligible for Estafa?

Yes, this situation can potentially qualify for estafa, specifically under "Estafa with deceit," as the borrower misrepresented the ownership of the collateral with an intent to defraud you.

Steps to Take:

1. Document All Transactions: Make sure to have all the documentation, such as written agreements, to prove the transaction occurred.

2. File a Complaint: You can file a complaint for estafa at your nearest police station or the city prosecutor's office.

3. Include Theft Charges: Given that the collateral was stolen, you may also file a separate complaint for theft against the borrower.

4. Consult a Lawyer: Due to the complexities of criminal law, it's advisable to consult a lawyer who can guide you through the process of filing these cases.

Summary:

Based on Philippine law, you could potentially file an estafa case given that the borrower fraudulently represented ownership of the collateral. Additionally, a separate case for theft could also be considered since the collateral was stolen.

Note: This article is intended for informational purposes only and should not be construed as legal advice. Consult a qualified lawyer for advice tailored to your specific circumstances.

Special Power of Attorney Philippines

Use of Special Power of Attorney in Filing Certificates of Candidacy for Barangay Elections in the Philippines

Query:

The individual is asking whether a Special Power of Attorney (SPA) is necessary for a barangay candidate filing a Certificate of Candidacy (COC).

Answer:

Filing of COC:

In Philippine elections, including barangay elections, candidates typically file their Certificates of Candidacy (COC) personally. As per the guidelines set by the Commission on Elections (COMELEC), personal filing is the standard procedure.

Is SPA Necessary?

An SPA is generally not required if the candidate is personally filing their COC. However, if for some reason the candidate cannot personally file the COC, an authorized representative may do so on their behalf. In this case, an SPA would be necessary to formally delegate this authority.

SPA Requirements:

1. Notarization: The SPA should be notarized to be considered a public document and to ensure its authenticity.

2. Specificity: The SPA should specify that the representative has the authority to file the COC on behalf of the candidate.

3. Identity Verification: Proper identification of both the principal and the agent should be established.

Summary:

While an SPA is generally not required for candidates personally filing their COC, it becomes necessary if an authorized representative will be filing on their behalf. The SPA should be notarized and clearly state the scope of the representative's authority in relation to the filing of the COC.

Note: This article is intended for informational purposes only and should not be construed as legal advice. Consult a qualified lawyer for advice tailored to your specific circumstances.

Heir to Sell Property Philippines

Rights of a Compulsory Heir to Sell Property and Address Occupancy Issues in the Philippines

Query:

The individual is a compulsory heir who inherited a house in the Philippines. Their nephews, children of their deceased sister, refuse to vacate the property. The individual is inquiring about their rights to sell the property and how to handle the situation.

Answer:

Compulsory Heirship and Ownership:

As a compulsory heir under Philippine law, you have the legal right to your inheritance, which in this case is the house. This right is protected under the Civil Code of the Philippines, particularly under Articles 887 to 1080, which cover succession and inheritance.

Right to Sell:

If you are the sole owner of the property, you have the right to sell it. If there are other compulsory heirs, you'll need their consent to sell the property.

Steps to Address Occupancy Issue:

1. Legal Notice: The first step is usually to send a formal eviction notice to your nephews, asking them to vacate the property within a specified time frame.

2. Legal Counsel: Consult a lawyer experienced in property law and succession to guide you through the legal complexities of eviction.

3. Judicial Remedies: If your nephews refuse to comply with the eviction notice, you may initiate an ejectment case or an unlawful detainer action in the proper courts.

Other Considerations:

• Partition: If the property is co-owned, you may petition for a partition to separate your share, making it easier to sell.

• Estates and Taxes: Ensure that estate taxes have been properly paid and that the property title has been transferred to your name before attempting to sell it.

Summary:

As a compulsory heir, you have the right to sell your inherited property. To address the occupancy issue, a formal eviction notice followed by legal action can be initiated if your nephews refuse to vacate the premises.

Note: This article is intended for informational purposes only and should not be construed as legal advice. Consult a qualified lawyer for advice tailored to your specific circumstances.