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bargaining agreement provisions, and company practices. However, if the employee was reinstated to work during
the pendency of the appeal, then the employee is entitled to the compensation received for actual services
rendered without need of refund.
Considering that Genuino was not reinstated to work or placed on payroll reinstatement, and her dismissal is based on a
just cause, then she is not entitled to be paid the salaries stated in item no. 3 of the fallo of the September 3, 1994 NLRC
Decision. In the same case, the Court went on to discuss the illogical and unjust effects of the refund doctrine erroneously
espoused in Genuino.
Moreover, it bears stressing that the manner of immediate reinstatement, pending appeal, or the promptness thereof is
immaterial, as illustrated in the following two scenarios:
Situation No. 1. (As in the cases of Air Philippines Corporation and International Container Terminal Services, Inc.) The
LA ruled in favor of the dismissed employee and ordered his reinstatement. However, the employer did not immediately
comply with the LA's directive. On appeal, the NLRC reversed the LA and found that there was no illegal dismissal. In
this scenario, We ruled that the employee is entitled to payment of his salaries and allowances pending appeal.
Situation No. 2. (As in the present case) The LA ruled in favor of the dismissed employee and ordered the latter's
reinstatement. This time, the employer complied by reinstating the employee in the payroll. On appeal, the LA's ruling
was reversed, finding that there was no case of illegal dismissal but merely a temporary sanction, akin to a suspension.
Here, We also must rule that the employee cannot be required to reimburse the salaries he received because if he was not
reinstated in the payroll in the first place, the ruling in situation no. 1 will apply, i.e., the employee is entitled to payment
of his salaries and allowances pending appeal.
Thus, either way the court looks at it, at the end of the day, the employee gets his salaries and allowances pending appeal.
The only difference lies as to the time when the employee gets it.