Petitioner
Marcopper Mining Corporation
Respondent
Ople
Citation
G.R. No. L-51254
Court
Supreme Court
Division
En Banc
Ponente
Fernando, J.
Decided
June 11, 1981

Whether employer is obligated to pay 13th month pay under Presidential Decree 851 despite existing collective bargaining agreement providing mid-year…

Summary

The Supreme Court dismissed Marcopper Mining Corporation's petition challenging the Deputy Minister of Labor's order requiring payment of 13th month pay under Presidential Decree 851. The company argued it was exempt due to existing CBA bonuses, but the Court held PD 851 creates a mandatory statutory obligation separate from contractual benefits. The Court distinguished that CBA bonuses are conditional supplements dependent on company profits, while 13th month pay is an absolute wage-related obligation for employees earning P1,000 or less monthly. The decision emphasized constitutional principles of social justice and labor protection, ruling that existing employee benefits cannot substitute for statutory 13th month pay requirements. The Court affirmed the Deputy Minister's jurisdiction and interpretation that contractual bonuses do not exempt employers from PD 851's coverage.

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By Intellegal Editorial Board · June 11, 1981

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