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CEBU INSTITUTE OF MEDICINE v. CEBU INSTITUTE OF MEDICINE EMPLOYEES' UNION-NATIONAL FEDERATION OF LABOR

This case has been cited 2 times or more.

2009-07-23
CARPIO MORALES, J.
Petitioner adds that the interpretation of the provision that 80% of the TIP should go to salary increases alone, to the exclusion of other benefits, is contrary to R.A. 6728, citing Cebu Institute of Medicine v. Cebu Institute of Medicine Employees' Union-NFL.[6]
2006-05-31
PUNO, J.
In Cebu Institute of Medicine v. Cebu Institute of Medicine Employees' Union-National Federation of Labor,[18] the Court held that the private institution concerned has the discretion on the disposition of the seventy percent (70%) incremental tuition fee increase. It enjoys the privilege of determining how much increase in salaries to grant and the kind and amount of allowances and other benefits to give. The only precondition is that seventy percent (70%) of the incremental tuition fee increase goes to the payment of salaries, wages, allowances and other benefits of teaching and non-teaching personnel. In other words, the allocation of the 70% of the IP is considered a management prerogative. In that case, the Court allowed the charging against the 70% the employer's share in the SSS, Medicare and Pag-ibig premiums, they falling within the category of "other benefits" as provided in Section 5 (2) of RA 6728.