DIMINUTION OF BENEFITS

May I ask a legal opinion on our Company's HMO benefit.

Currently our HMO is open to our dependents with the following provisions:

1. Enrollment of dependents is subject to 70% Employee Share through a 10-month salary deduction
2. 30% is Company share
3. Enrollment of dependents has no cap as long as employee has 40% net take home pay
4. With 100,000 coverage per illness/year


Our Management would like change this entitlement with these provisions:

1. No more HMO coverage for dependents
2. Registered and qualified dependents will be given a fixed amount per quarter
e.g – an employee has 4 dependents (wife, 3 children).
6000/dependent = 6,000 X 4 = 24,000
Each quarter employee receives 6,000

Any legal implication if we implement the new scheme?

Is this not considered as diminution of benefits.

Appreciate your response on this matter.

first, the contract between employee and employer when they first started their work will apply.

however, if you want to change the provision of the contract, it should be with CONSENT of the employee, must be done in GOOD FAITH at dapat, it must serve a POSITIVE interest between the employee and the employer (di dapat one sided)

regarding diminution of benefits, it will only fall to this category kapag yung benefit ay given in a long period of time and dapat, consistent at deliberate nyo na siyang binibigay.

in this case, lalabas na diminution of benefits nga ito dahil parang ginawa nyo na lang na cash basis ang HMO, nawawala ang essence ng health benefit na dapat matanggap ng empleyado,