Labor Law, 2019 Bar — Question A.6

ESSAY

D, one of the sales representatives of OP, Inc., was receiving a basic pay of P50,000.00 a month, plus a 1% overriding commission on his actual sales transactions. In addition, beginning three (3) months ago, or in August 2019, D was able to receive a monthly gas and transportation allowance of P5,000.00 despite the lack of any company policy therefor. In November 2019, D approached his manager and asked for his gas and transportation allowance for the month. The manager declined his request, saying that the company had decided to discontinue the aforementioned allowance considering the increased costs of its overhead expenses. In response, D argued that OP, Inc.'s removal of the gas and transportation allowance amounted to a violation of the rule on non-diminution of benefits. Is the argument of D tenable? Explain. (2.5%)

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