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Volume: VOL. XX – NO. 2
Date: June 30, 2008


“Non-diminution of benefits” principle does not apply

The Board of Directors of NAPOCOR (a  government-owned utility firm) engaged in electric power distribution issued a Board Resolution granting a step [salary] increment to all qualified officials and employees.  The Dept. of Budget and (DBM), however, turned down the NAPOCOR request for clearance to implement the step increment for lack of legal basis.  The NAPOCOR corporate auditor then enjoined the management to suspend/stop payments of the subject step increment.

There is no vested right
to salary increase

There must be a lawful decree or order supporting an employee’s claim. Since the step increments were granted without the required DBM approval, no vested rights to the increments could have been acquired. Thus, the Court reversed and set aside the RTC decision, directing the trial court to proceed with the trial on the merits of the case (G.R. 162716, 9/27/06).


Consignation unavailing absent
creditor-debtor relationship
(Claim to valid possession requires contractual basis)

Legal effects of consignation cannot be availed of in the absence of creditor-debtor relationship between the parties. As ruled by the SC in Roxas v. Court of Appeals; “A person who occupies the land of another at the latter’s tolerance or permission, without any contract between them is necessarily bound by an implied promise that he will vacate upon demand, failing which a summary action for ejectment is the proper remedy against him. Thus, the alleged consignation of the monthly rental to the bank account of the property owner cannot have any legal effect absent any contractual basis for the claim to rightful possession of the subject property (G.R. 142882,5/2/06).

 

 
 
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