Early release of bonus to a worker in need

A longtime supervisor is requesting that management release of his 13th month pay and performance bonus early. He needs the money to pay for the hospital expenses of his spouse. The HMO bene f it is not enough to cover the treatment. Could you help HR in making an intelligent decision? — Twinkle Tony.

It happens every year starting from the “ber” months and long before Christmas jingles fill the air, especially at shopping malls. Then, out of the blue, one employee quietly knocks on HR’s door, asking if they could get their yearend bonus pay and performance bonus a little earlier. ​

This time, it’s not about shopping or travel plans — it’s for medical treatment, a family emergency, a hospital bill that won’t wait until December. Should HR’s compassion override policy? How?

Presidential Decree No. 851 gives all rank-and-file employees in the Philippines 13th month pay. The law requires that it be released on or before Dec. 24 of every year.

The worker is a supervisor, not an ordinary worker. Whatever, here’s my advice regardless of the employee’s rank. I suggest releasing the 13th month pay in advance for humanitarian as long as it’s properly documented. In fact, it is no different from when companies release half of the 13th month pay in May or June to coincide with school enrollment.

Legally speaking, giving it early to a worker in genuine need isn’t just permissible — it’s humane compliance. In short, you won’t get in trouble with the Department of Labor and Employment (DoLE) for showing a bit of heart. Just make sure you have the paperwork to prove it.

HR’S HEART
In theory, it’s an easy decision. In practice, it’s tricky, especially when the supervisor is asking for both the 13th month and performance bonus, which I suppose is given only to those with an above-average performance for the year.

Also, you must remember that once you grant early release for one employee, others might follow with every imaginable excuse. Someone might suddenly “remember” an ailing grandmother or a dog that needs surgery. Compassion is contagious — but so are bad precedents.

The challenge for HR and management is to balance empathy with performance. You don’t want to appear cold-hearted, but you also can’t afford to turn the 13th month fund and the performance bonus into an on-demand cash advance facility.

That’s why documentation is your best ally with the following procedural steps:

One, require a written request for the early release of the bonuses. Let the worker attach the supporting documents like a hospital estimate or final bill. Ensure that the spouse is the same person who was reported to HR on the date of the supervisor’s first day of work or days after getting married.

Two, analyze the context of the supervisor’s letter. Be critical. Discover loopholes that could make or unmake the early grant of the 13th month bonus. If it’s in order, recommend that top management approve it.

Three, write a letter approving the release. Explain that the early release is to be deducted from the 13th month statutory requirement. To protect the company, emphasize that it’s being done as an exception to the general rule. Better if the CEO co-sign it.

Four, emphasize that such approval should not establish a precedent. You can frame this case as a special circumstance in recognition of his long years of service and above-average work performance.

PERFORMANCE BONUS
This depends on the mechanics of your performance bonus system. This one requires some finesse. Unlike the statutory requirement of 13th month pay, performance bonuses are discretionary and based on the actual performance of employees. That means an average worker could end up receiving no performance bonus at all.

In addition, they’re based on either a long-established company policy, management prerogative, or existing collective bargaining agreement with the supervisor’s union.

Of course, it can be given in advance if management wants to for any reason. Otherwise, you’re under no legal obligation to do so. But if you decide to, make it clear that it’s a humanitarian exception, not a change in policy and may not apply to other supervisors even if similarly situated.

Otherwise, expect next year’s queue at HR to look like a Black Friday sale. If your top management decides to approve its release as well, a wise practice is to record it as an “advance subject to adjustment.” That means, if the performance bonus hasn’t been computed yet, the early payout will later be deducted or adjusted once actual amounts are finalized.

COMPASSION
Beyond legality and paperwork lies the real reason this topic matters: compassion and trust. When an organization shows genuine compassion, employees notice. They may forget last year’s teambuilding theme, but they’ll remember the time their boss released their 13th month early so their immediate family member could get a decent medical treatment.

That’s not just generosity — it’s leadership capital.

People don’t stay in companies because of free coffee or ping-pong tables. They stay because they feel being supported. An early release, when justified, sends the message that management values people more than policies.

Ironically, it often pays off later through stronger loyalty and better performance. In other words, policies should guide people, not guard against them.

Join Rey Elbo’s Nov. 14, 2025 public seminar on “Smart Strategies for Dealing with Difficult Workers.” E-mail elbonomics@gmail.com or https://reyelbo.com/contact-us