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FACTS:
Arlene Espiritu had to report for work in Fujis office in Manila from Mondays to Fridays,
eight hours per day. Likewise, Espiritu, having no equipment, had to use the facilities of Fuji to
accomplish her tasks. Espiritu suffered a disease. Espiritu said she was forced to sign preprepared documents by Fuji TVs lawyers.
Espiritu initially refused to sign the documents. However, Espiritu did not receive her salary
starting March that year. Eventually, Espiritu signed the documents, which included a resignation
letter, release and quit claim of salary and benefits, and non-renewal of contract.
She, however, signed the documents ''under protest'' and filed a case against Fuji.
ISSUE:
Is the dismissal of Espiritu valid?
LAW APPLIED IN THIS CASE:
Article 280 of the Labor Code: Regular and casual employment
CASE HISTORY:
The labor arbiter dismissed Espiritu's case, but reversed the same upon appeal.
CA, affirmed the labor arbiter's decision
RULING:
No
The SC said that the appellate court was correct in its finding that Espiritu was a regular Fuji TV
employee with the right of security of tenure. The Court agreed with the CA which held that
Espiritu was entitled to security of tenure and could be dismissed only for just or authorized
causes and after the observance of due process,'' the SC said. ''The expiration of her contract does
not negate the finding of illegal dismissal by Fuji."
The CA based this decision on the successive renewals of Espiritus contract which indicated
the necessity and desirability of her work in the usual course of Fujis business.
The SC said Espiritu had been illegally dismissed since Fuji failed to comply with the
requirements of substantive and procedural due process necessary for her dismissal since she was
a regular employee.
The SC said for a disease to become a valid ground for termination, ''the employees disease
cannot be cured within six months and his 'continued employment is prohibited by law or
prejudicial to his health as well as to the health of his co-employees.
OPINION:
I agree that Arlene Espiritu was illegally dismissed because there was no evidence showing
she was given due process considering she was not given the chance to present medical
certificates. Lastly, Fuji failed to comply with the requirements of substantive and procedural
due process necessary for her dismissal since she was a regular employee.
FACTS:
Carlos Pabriga, Geoffrey Arias, Kirby Campo, Arnold Lagahit, and Armando Catubig
worked as television technicians for GMA7 in the late 1990s. Their work included manning of
technical operations center and acting as transmitter/VTR men, maintenance staff, and
cameramen. They were repeatedly rehired in several fixed term contracts from 1996 to 1999.
Pabriga and his co-workers originally filed in July 1999 a complaint for non-payment of
benefits with the National Labor Relations Commission (NLRC). Later on, they amended their
complaint by raising the issues of unfair labor practice, illegal dismissal, damages, and attorneys
fees.
Pabriga and his co-workers claimed that they were GMA7's regular employees. On the other
hand, GMA7 claimed that they were merely hired as pinch-hitters on fixed term contracts.
ISSUE:
Is the dismissal of Pabriga valid?
FACTS:
An employment contract in virtue of which Doroteo R. Alegre was engaged as athletic
director by Brent School, Inc. at a yr.ly compensation of P20,000.00. The contract fixed a
specific term for its existence, 5 yrs. Subsequent subsidiary agreements reiterated the same terms
and conditions, including the expiry date, as those contained in the original contract. Some 3
months before the expiration of the stipulated period Alegre was given a copy of the report filed
by Brent School with the Department of Labor advising of the termination of his services.
The stated ground for the termination was "completion of contract, expiration of the definite
period of employment. And a month or so later, Alegre accepted the amount of P3,177.71, and
signed a receipt therefor containing the phrase, "in full payment of services for the contract."
However, at the investigation conducted by a Labor Conciliator of said report of termination of
his services, Alegre protested the announced termination of his employment. He argued that
although his contract did stipulate that the same would terminate, since" his services were
necessary & desirable in the usual business of his employer", and his ET had lasted for 5 yrs., he
had acquired the status of a regular and could not be removed except for valid cause.
The Regional Director considered Brent School's report as an "application" for clearance to
terminate employment (not a report of termination), and accepting the recommendation of the
Labor Conciliator, refused to give such clearance and instead required the reinstatement of
Alegre, as a "permanent employee," to his former position without loss of seniority rights & with
full back wages. The Director pronounced "the ground relied upon by the Brent in terminating
the services of the complainant, Alegre as not sanctioned by P.D. 442, and, quite oddly, as
prohibited by Circular No. 8, series of 1969, of the Bureau of Private Schools. Brent School filed
a MR.
ISSUE:
Is the Dismissal of Alegre valid?
CASE HISTORY:
The Regional Director denied the motion & forwarded the case to the Secretary of Labor for
review.
Secretary of Labor for review sustained the Regional Director decision
Brent appealed to the Office of the President but that office dismissed its appeal for lack of merit
and affirmed the Labor Secretary's decision
RULING:
No
Alegre was a permanent employee who could not be dismissed except for just cause and
expiration of the employment contract and was not one of the just causes provided in the Labor
Code for termination of services
OPINION:
I agree with the ruling that a permanent employee ca not be dismissed without just and
authorized cause
CONRADO A LIM v HMR PHILIPPINES INC
G.R. No. 201483 August 4, 2014
FACTS:
Petitioner Lim filed a case for illegal dismissal and money claims against Respondent HMR
and its officers. The labor Artbiter dismissed the complaint for lack of merit. The
NLRC
reversed the Labor Artbiters decision and declared Lim his full back wages reckoned from the
time of his dismissal up to this promulgation of the decision.
Lim and HMR Phil appealed to the Court of Appeals. The Court of Appeals affirmed the
NLRC Decision with modification. Consequently, HMR Phil Inc. appealed to the Supreme Court
and was denied.
Now, Lim moved for execution. The computation and research unit of the NLRC computed
the backwages from the date of dismissal up to the date of actual reinstatement. HMR opposed
the computation arguing that the backwages should be computed until the date of promulgation
of the NLRC decision as stated in the disposition of the decision which provided that backwages
shall be reckoned from his dismissal up to the promulgation of this decision. Lim argued that the
body of the NLRC decision explicitly stated that he was entitled to full backwages from the time
he was illegaly dismissed until his actual reinstatement, which was also accord in the Article 279
of the Labor code and all prevailing jurisprudence.
The labor artbiter issued the order granting the motion for the execution filed by Lim
holding that the backwages should be reckoned from the time he was illegally dismissed until his
actual reinstatement. The NLRC sustained the computation of the Labor arbiter.
ISSUE:
Is backwages should be computed from the time the employee was illegally dismissed until
his actual reinstatement?
SESSIONS DELIGHTS v CA
G.R. No. 172149 February 08, 2010
FACTS:
A complaint for illegal dismissal was filed against petitioner Session Delights Ice Cream &
Fast Foods by private respondent Adonis Armenio M. Flora, docketed as NLRC Case No. RABCAR 09-0507-00. The labor arbiter decided against petitioner, finding that it had
illegally dismissed the private respondent. Based on such finding, it awarded private respondent
backwages, separation pay in lieu of reinstatement, indemnity, and attorneys fees.
The CA affirmed with modification the NLRC decision by deleting the awards for a
proportionate 13th month pay and for indemnity. The CA decision became final per Entry of
Judgment dated July 29, 2003.
In January 2004, and in the course of the execution of the above final judgment, a preexecution conference was held, with the contending parties in attendance. In said conference an
updated computation of the monetary awards in the total amount of P235,986.00, which included
additional backwages and separation pay and a proportionate amount of the 13th month pay due
to private respondent Flora, was made and was approved by the Labor Arbiter about three (3)
months after.
The petitioner objected to the re-computation and appealed the labor arbiters order to the
NLRC but the same was denied. The CA, however, partially granted the petition by deleting the
awarded proportionate 13th month pay.
ISSUE:
Is the updated computation proper?
LAW APPLIED IN THIS CASE:
Article 279 of the Labor Code
CASE HISTORY:
Labor Arbiter granted the complaint for illegal dismissal
Court of Appeals affirmed with modification the NLRC decision
RULING:
The Supreme Court ruled that the updated computation was proper. The issue in the case at
bar is not the correctness of the awards, the finality of the CAs judgment, nor the petitioners
failure to appeal. Rather, it is the propriety of the computation of the awards made, whether this
violated the principle of immutability of final judgments.
In concrete terms, the question is whether a re-computation in the course of execution, of the
labor arbiters original computation of the awards made pegged as of the time the decision was
rendered and confirmed with modification by a final CA decision, is legally proper.
The Court held that under the terms of the decision under execution, no essential change is
made by a re-computation as this step is a necessary consequence that flows from the nature of
the illegality of dismissal declared in that decision. A re-computation (or an
original computation, if no previous computation has been made) is a part of the law,
specifically, Article 279 of the Labor Code and the established jurisprudence on this provision,
that is read into the decision. By the nature of an illegal dismissal case, the reliefs continue to add
on until full satisfaction, as expressed under Article 279 of the Labor Code. The recomputation of the consequences of illegal dismissal upon execution of the decision does not
constitute an alteration or amendment of the final decision being implemented. The illegal
dismissal ruling stands; only the computation of the monetary consequences of this dismissal is
affected and this is not a violation of the principle of immutability of final judgments.
OPINION:
I agree with the argument of the Supreme Court since the basis of the decision was based in
Gallery Frames appealed all the way to the Supreme Court. The Supreme Court affirmed the
decision of the Labor Arbiter and the decision became final on May 27, 2002.
After the finality of the Supreme Court decision, Nacar filed a motion before the Labor
Arbiter for recomputation as he alleged that his backwages should be computed from the time of
his illegal dismissal (January 24, 1997) until the finality of the SC decision (May 27, 2002) with
interest. The Labor Arbiter denied the motion as he ruled that the reckoning point of the
computation should only be from the time Nacar was illegally dismissed (January 24, 1997) until
the decision of the Labor Arbiter (October 15, 1998). The Labor Arbiter reasoned that the said
date should be the reckoning point because Nacar did not appeal hence as to him, that decision
became final and executory.
ISSUE:
Is the Labor arbiter correct?
LAW APPLIED IN THIS CASE:
Article 279 of the Labor Code which concerns the principle in computing backwages.
CASE HISTORY:
Labor Arbiter concurs with complaint filed
RULING:
The Supreme Court ruled in negative.
There are two parts of a decision when it comes to illegal dismissal cases (referring to cases
where the dismissed employee wins, or loses but wins on appeal). The first part is the ruling that
the employee was illegally dismissed. This is immediately final even if the employer appeals
but will be reversed if employer wins on appeal. The second part is the ruling on the award of
backwages and/or separation pay. For backwages, it will be computed from the date of illegal
dismissal until the date of the decision of the Labor Arbiter. But if the employer appeals, then the
end date shall be extended until the day when the appellate courts decision shall become final.
Hence, as a consequence, the liability of the employer, if he loses on appeal, will increase
this is just but a risk that the employer cannot avoid when it continued to seek recourses against
the Labor Arbiters decision. This is also in accordance with Article 279 of the Labor Code.
Anent the issue of award interest in the form of actual or compensatory damages, the
Supreme Court ruled that the old case of Eastern Shipping Lines vs CA is already modified by
the promulgation of the Bangko Sentral ng Pilipinas Monetary Board Resolution No. 796 which
lowered the legal rate of interest from 12% to 6%.
OPINION:
I agree with the decision in this case because it was already decided in some other similar
cases the proper way of computing backwages and others.
FACTS:
The Chartered Bank Employees Association, in representation of its monthly paid
employees/members, instituted a complaint with the Regional Office No. IV, Department of
Labor, now Ministry of Labor and Employment (MOLE) against private respondent Chartered
Bank, for the payment of ten (10) unworked legal holidays, as well as for premium and overtime
differentials for worked legal holidays from November 1, 1974.
On the bases of the facts represented, both the arbitrator and the National Labor Relations
Commission (NLRC) ruled in favor of the petitioners ordering the respondent bank to pay its
monthly paid employees, holiday pay for the ten (10) legal holidays effective November 1, 1974
and to pay premium or overtime pay differentials to all employees who rendered work during
said legal holidays. On appeal, the Minister of Labor set aside the decision of the NLRC and
dismissed the petitioner's claim for lack of merit basing its decision on Section 2, Rule IV, Book
Ill of the Integrated Rules and Policy Instruction No. 9.
ISSUE:
Is respondent Secretary of Labor acted contrary to law and abused his discretion in denying
the claim of petitioners for unworked holidays and premium and overtime pay differentials for
worked holidays in not giving due credence to the respondent bank's practice of paying its
employees base pay of 100% and premium pay of 50% for work done during legal holidays,.
FACTS:
Eighteen years ago, 1977, private respondent Arturo Mendoza filed a complaint for illegal
dismissal against petitioner Augusto Evangelista. Eventually, the case reached this Court through
a petition forcertiorari . Thereafter, private respondent filed a motion seeking clarification with
respect to the salary scale which should be applied in computing the three years backwages
awarded in his favor and cited the decision in the case of De Jesus vs. Philippine National
Construction Corporation, wherein the award of backwages was based on the latest pay scale of
the employee's position.
Thereafter, the Court, through the First Division, issued a resolution granting private
respondent's motion for clarification and modified the decretal portion of the decision. As a result
of the modification, petitioner, in turn, filed the instant motion for reconsideration seeking the
reversal of the Resolution. Petitioner alleged that he was not furnished a copy of the motion for
clarification and neither was there a resolution issued by the Court requiring him to comment
thereto, thereby depriving him of his right to due process. Moreover, he disputes the computation
of the award of backwages based on the current wage levels and maintains that the same should
instead be computed based on the rate of the wage level in 1977 when private respondent was
illegally dismissed, in accordance with the prevailing jurisprudence.
ISSUE:
Is the Petitioners motion meritorious with respect to the determination of the salary base for
the computation of backwages?
LAW APPLIED IN THIS CASE:
Ruling in Paramount Vinyl Products Corp. vs. NLRC
Article 279 of the Labor Code
CASE HISTORY:
The Court, through the First Division, issued a resolution granting private respondent's
motion for clarification.
RULING:
Supreme Court find merit in the petitioners motion.
As explicitly declared in Paramount Vinyl Products Corp. vs. NLRC, the determination of
the salary base for the computation of backwages requires simply an application of judicial
precedents defining the term "backwages". An unqualified award of backwages means that the
employee is paid at the wage rate at the time of his dismissal. Furthermore, the award of salary
differentials is not allowed, the established rule being that upon reinstatement, illegally dismissed
employees are to be paid their backwages without deduction and qualification as to any wage
increases or other benefits that may have been received by their co-workers who were not
dismissed or did not go on strike.
Accordingly, the motion for reconsideration is hereby granted and the assailed Resolution dated
July 24, 1991, is hereby ordered set aside. The award of backwages in private respondent's favor
is instead to be computed at the rate of the wage levels prevailing at the time of his illegal
dismissal in 1977
OPINION:
The argument of the petitioner was meritorious.