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    NTA vs. COA

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    Leah Marie Sernal
    The COA disallowed payment of an Educational Assistance Incentive Bonus (EAIB) to employees of the National Tobacco Administration (NTA) who were not already in their positions as of July 1, 1989, when the relevant law took effect. The NTA and employees petitioned the Court, arguing this violated equal protection. The Court upheld the COA's decision, finding the law intended to protect the pay and benefits of incumbents as of that date from diminution. As non-incumbents, the petitioning employees could not claim the same treatment as incumbents regarding the EAIB. The petition was dismissed.

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    NTA vs. COA

    Uploaded by

    Leah Marie Sernal
    1K views1 page
    The COA disallowed payment of an Educational Assistance Incentive Bonus (EAIB) to employees of the National Tobacco Administration (NTA) who were not already in their positions as of July 1, 1989, when the relevant law took effect. The NTA and employees petitioned the Court, arguing this violated equal protection. The Court upheld the COA's decision, finding the law intended to protect the pay and benefits of incumbents as of that date from diminution. As non-incumbents, the petitioning employees could not claim the same treatment as incumbents regarding the EAIB. The petition was dismissed.

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    The COA disallowed payment of an Educational Assistance Incentive Bonus (EAIB) to employees of the National Tobacco Administration (NTA) who were not already in their positions as of July 1, 1989, when the relevant law took effect. The NTA and employees petitioned the Court, arguing this violated equal protection. The Court upheld the COA's decision, finding the law intended to protect the pay and benefits of incumbents as of that date from diminution. As non-incumbents, the petitioning employees could not claim the same treatment as incumbents regarding the EAIB. The petition was dismissed.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    1K views1 page

    NTA vs. COA

    Uploaded by

    Leah Marie Sernal
    The COA disallowed payment of an Educational Assistance Incentive Bonus (EAIB) to employees of the National Tobacco Administration (NTA) who were not already in their positions as of July 1, 1989, when the relevant law took effect. The NTA and employees petitioned the Court, arguing this violated equal protection. The Court upheld the COA's decision, finding the law intended to protect the pay and benefits of incumbents as of that date from diminution. As non-incumbents, the petitioning employees could not claim the same treatment as incumbents regarding the EAIB. The petition was dismissed.

    Copyright:

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    Download as DOCX, PDF, TXT or read online from Scribd
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    [G.R. No. 159700. June 30, 2005.] ROHBERT A.

    AMBROS, President, Employees Association, in his own behalf and in representation of his co-employees, numbering two hundred thirty-five, in the National Tobacco Administration, petitioners, vs. The COMMISSION ON AUDIT (COA) and the NATIONAL TOBACCO ADMINISTRATION (NTA), respondents. Facts: Sometime in February 1994, the Resident Auditor of the COA in the NTA, Dalisay E. Aracan, issued a Notice of Disallowance of the payment of the Educational Assistance Incentive Bonus (EAIB) for the calendar year 1993 and 1994 stating that the NTA had no statutory authority to grant the incentive. The COA, in its Decision dated February 7, 1995, affirmed the disallowance of the EAIB. Consequently, the NTA, then as the petitioner and through its then Administrator Amante Siapno and other employees, filed with the Court who granted the petition to nullify the COA Decision disallowing the EAIB. But relying on the second sentence of Section 12 of R.A. No. 6758, COA contends that the legislative intent was to limit such additional compensation to the incumbents, as of July 1, 1989 only which the company applied. The Act states that: Such other additional compensation, whether in cash or in kind, being received by incumbents only as of July 1, 1989 not integrated into the standardized salary rates shall continue to be authorized. Issues: Whether or not the COA gravely abused its discretion in disallowing the payment of the EAIB to the employees of the NTA who were non-incumbents of the positions as of July 1, 1989, the date when R.A. No. 6758 took effect. Held: No. Again citing the second sentence (first paragraph) of Section 12 of R.A. No. 6758, the Court, in the said case, took into consideration the intent of Congress to prevent any diminution of the pay and benefits being received by the incumbents at the time of the enactment of R.A. No. 6758. It, however, opined that the petitioners, non-incumbent employees, therein could not claim that they had acquired a vested right over the EAIB because the same was always subject to availability of funds. The petitioners are, in effect, invoking the principle of equal protection of the law embodied in the Constitution. The second sentence (first paragraph) of Section 12 of R.A. No. 6758 does not infringe the equal protection clause of the Constitution as it is based on reasonable classification intended to protect the right of the incumbents against diminution of their pay and benefits. The petitioners in the present case, who are admittedly non-incumbent employees of the NTA as of July 1, 1989, cannot, therefore, claim similar treatment as the incumbents as of the said date, with respect to the grant of the EAIB. Petition is dismissed.

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