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Inquiry on retro payment for delayed annual increase and benefit changes

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Arresto Menor

Good day to you!

I would like to inquire on what would be the governing rule or definition of "Retropayment or retroactive pay" for a delayed annual increase.

I have been employed for 2 years and I have yet to receive my annual increase. The frustrating part on this issue is that most employees of the company has been awarded with their annual increase. We do have an online appraisal system to which I was able to accomplish and has been completed by upper management. It is advised that my compensation is now pending HR processing. The scores that I got from this appraisal is above expectation or equivalent to 90% score.

The new director of the company sent an email notifying all employees that we shall receive this benefit and provided some guidelines on how it should take effect. It is also stated that the benefit shall be retroactive from the date of the employees 1st year anniversary with the company.

Unfortunately, it seems that the people who were part of the company since it started got left out of this benefit. I kept asking for the reason why I was not able to receive this benefit and HR kept saying that they do not have the specific details.

It was advised that if we are to receive my annual increase, the retroactive payment would only cover the monthly adjustment and no other computations will be made on the other benefits such as Night diff, holiday pay and Overtime pays. They also mentioned that any retro pay that is due to me for 2010 can no longer be counted since the accounting books are now closed.

Now for 2 years now, having a new director for the company, the 2nd appraisal is about to be given, it seems that there will be some complications with my present salary.

I would like to ask if:

1) Would the memo of the previous Director about the retroactive payment can still be considered binding and should be honored?

2) Kindly provide some insight / layman description on the definition of retroactive payment. From what I undersand, retroactive payment should include all adjust adjustments in the salary including the computation for the adjustment for Night diff, holiday pay, Overtime pays and other benefit that should be covered from the date that I was suppose to receive the benefit.

3) As for my contract, my leave entitlement should be 15 days upon signing and should be renewed every year. The HR department implemented a new policy, and no longer honored my current contract. There was no agreement or any signing of new contract for the new policy but they still insist that the new policy should be followed by the employees.

- I would like to know if my contract is still binding and should not be changed without mutual agreement between my and my employer?

4) as for existing benefits, from what I understand, once a benefit has been given to an employee, this can no longer be retracted and can only be implemented on employees hired after the implementation date of the changes they would like to have.
- Would it be correct to say that reducing the compensation for the medical card from 150thou to just 90 thou would be unjust and would actually violate this rule?
- Since the company has included the allowances in the computation of the 13th month, this cannot be retracted or reduced as well? (They advised the for the following year, they will no longer include the allowance in the computation)

I appreciate your assistance regarding this concern. If possible, would there be any specific reference or documentation regarding my inquiries for better understanding of the situation.

Thank you for your help!

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first, there is no legal right to an annual increase. normally, retroactivity applies to non implementation of govt mandated increase which is correct because the work was rendered after the right to a higher salary was granted.

in your case, there is no right yet, but you can still argue that the memo should be binding if it applied to all and was actually implemented for others. but if they deny this, you will have to file a money claim at dole or nlrc.

benefits can ripen into a right over time. it depends on the circumstances, but normally it should have been given for several years.

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Arresto Menor
Hi AttyLLL,

Good day to you!

Thank you for the information you have provided.

This would really be helpful.

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