- Petitioner
- Philippine Airlines, Inc.
- Respondent
- NLRC (ALPAP)
- Citation
- G.R. No. 114280; G.R. No. 115224
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Francisco, J.
- Decided
- July 26, 1996
Whether PAL is required to pay 13th month pay to ALPAP pilots in addition to year-end bonus already being provided
Summary
This consolidated case involved Philippine Airlines (PAL) refusing to pay 13th month pay to pilots belonging to ALPAP from 1986-1990, claiming exemption under P.D. 851 because it already provided year-end bonus. The Supreme Court ruled that 13th month pay is mandatory under P.D. 851 and Memorandum Order No. 28, and cannot be excused by absence of CBA provision as existing law is deemed incorporated. The Court found PAL's inclusion of year-end bonus provision in the 1988-1991 CBA without qualification demonstrated intent to provide bonus in addition to 13th month pay obligation. The Court noted discriminatory treatment since other PAL employees received both benefits, while only pilots were denied. The decision affirmed NLRC's order requiring PAL to pay accumulated 13th month pay to ALPAP pilots for 1986-1990, but dismissed claims for moral and exemplary damages while awarding 5% attorney's fees. The case establishes that employers cannot avoid statutory 13th month pay obligations through equivalent benefit claims without clear contractual intent and consistent application across all employee groups.