FIRST DIVISION

[G.R. No. 118506. April 18, 1997]

NORMA MABEZA, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, ETER
NG!"OTEL S#REME, respondents.
$ E C I S I O N
%A#NAN, J.&
This petition seeking the nullification of a resolution of public respondent National Labor
Relations Commission dated pril !"# $%%& 'i'idl( illustrates )h( courts should be e'er 'igilant in
the preser'ation of the constitutionall( enshrined rights of the )orking class* +ithout the protection
accorded b( our la)s and the tempering of courts# the natural and historical inclination of capital to
ride roughshod o'er the rights of labor )ould run unabated*
The facts of the case at bar# culled from the conflicting 'ersions of petitioner and pri'ate
respondent# are illustrati'e*
,etitioner Norma -abe.a contends that around the first )eek of -a(# $%%$# she and her co/
emplo(ees at the 0otel Supreme in 1aguio Cit( )ere asked b( the hotel2s management to sign an
instrument attesting to the latter2s compliance )ith minimum )age and other labor standard
pro'isions of la)*
3$4
The instrument pro'ides5
3!4
JOINT AFFIDAVIT
We, SYLVIA IGANA, HERMINIGILDO AQUINO, EVELYN OGOY, MACARIA JUGUETA, ADELAIDA
NONOG, NORMA MABEZA, JONATHAN PICART and JOSE DIZON, all ! le"al a"e# $#%&', F%l%(%n# and
)e#%den*# ! Ba"+% C%*,, +nde) a*-, de(#e and #a,.
/0 T-a* 1e a)e e2(l,ee# ! M)0 Pe*e) L0 N" ! -%# H*el S+()e2e #%*+a*ed a* N0 3/4 Ma"#a,#a, A5e0,
Ba"+% C%*,6
70 T-a* *-e #a%d H*el %# #e(a)a*el, (e)a*ed !)2 *-e I5,8# G)%ll and Re#*a+)an*6
90 T-a* 1e a)e all $:' e2(l,ee# %n *-e -*el and a##%"ned %n ea&- )e#(e&*%5e #-%!*#6
30 That we have no complaints against the management of the Hotel Supreme as we are paid accordingly and
that we are treated well.
;0 T-a* 1e a)e e<e&+*%n" *-%# a!!%da5%* 5l+n*a)%l, 1%*-+* an, !)&e ) %n*%2%da*%n and !) *-e (+)(#e !
%n!)2%n" *-e a+*-)%*%e# &n&e)ned and * d%#(+*e *-e alle"ed )e()* ! *-e La=) In#(e&*) ! *-e De(a)*2en*
! La=) and E2(l,2en* &nd+&*ed n *-e #a%d e#*a=l%#-2en* n Fe=)+a), 7, />>/0
IN WITNESS WHEREOF, 1e -a5e -e)e+n* #e* +) -and# *-%# ?*- da, ! Ma,, />>/ a* Ba"+% C%*,,
P-%l%((%ne#0
$S"d0' $S"d0' $S"d0'
SYLVIA IGAMA HERMINIGILDO AQUINO EVELYN OGOY
$S"d' $S"d0' $S"d0'
MACARIA JUGUETA ADELAIDA NONOG NORMA MABEZA
$S"d' $S"d0'
JONATHAN PICART JOSE DIZON
SUBSCRIBED AND SWORN * =e!)e 2e *-%# ?*- da, ! Ma,, />>/, a* Ba"+% C%*,, P-%l%((%ne#0
A##*0 C%*, P)#e&+*)
,etitioner signed the affida'it but refused to go to the Cit( ,rosecutor2s Office to s)ear to the
'eracit( and contents of the affida'it as instructed b( management* The affida'it )as ne'ertheless
submitted on the same da( to the Regional Office of the Department of Labor and 6mplo(ment in
1aguio Cit(*
s gleaned from the affida'it# the same )as dra)n b( management for the sole purpose of
refuting findings of the Labor Inspector of DOL6 7in an inspection of respondent2s establishment on
Februar( !# $%%$8 apparentl( ad'erse to the pri'ate respondent*
394
fter she refused to proceed to the Cit( ,rosecutor2s Office / on the same da( the affida'it )as
submitted to the Cordillera Regional Office of DOL6 / petitioner a'ers that she )as ordered b( the
hotel management to turn o'er the ke(s to her li'ing :uarters and to remo'e her belongings from the
hotel premises*
3&4
ccording to her# respondent strongl( chided her for refusing to proceed to the Cit(
,rosecutor2s Office to attest to the affida'it*
3;4
She thereafter reluctantl( filed a lea'e of absence from
her <ob )hich )as denied b( management* +hen she attempted to return to )ork on -a( $=# $%%$#
the hotel2s cashier# -argarita Cho(# informed her that she should not report to )ork and# instead#
continue )ith her unofficial lea'e of absence* Conse:uentl(# on -a( $9# $%%$# three da(s after her
attempt to return to )ork# petitioner filed a complaint for illegal dismissal before the rbitration
1ranch of the National Labor Relations Commission / CR 1aguio Cit(* In addition to her complaint
for illegal dismissal# she alleged underpa(ment of )ages# non/pa(ment of holida( pa(# ser'ice
incenti'e lea'e pa(# $9th month pa(# night differential and other benefits* The complaint )as
docketed as NLRC Case No* R1/CR/=;/=$%"/%$ and assigned to Labor rbiter Felipe ,* ,ati*
Responding to the allegations made in support of petitioner2s complaint for illegal dismissal#
pri'ate respondent ,eter Ng alleged before Labor rbiter ,ati that petitioner >surreptitiousl( left 7her
<ob8 )ithout notice to the management>
3?4
and that she actuall( abandoned her )ork* 0e maintained
that there )as no basis for the mone( claims for underpa(ment and other benefits as these )ere
paid in the form of facilities to petitioner and the hotel2s other emplo(ees*
3@4
,ointing to the ffida'it of
-a( @# $%%$# the pri'ate respondent asserted that his emplo(ees actuall( ha'e no problems )ith
management* In a supplemental ans)er submitted ele'en 7$$8 months after the original complaint
for illegal dismissal )as filed# pri'ate respondent raised a ne) ground# loss of confidence# )hich )as
supported b( a criminal complaint for Aualified Theft he filed before the prosecutor2s office of the Cit(
of 1aguio against petitioner on Bul( &# $%%$*
3"4
On -a( $&# $%%9# Labor rbiter ,ati rendered a decision dismissing petitioner2s complaint on
the ground of loss of confidence* 0is dis:uisitions in support of his conclusion read as follo)s5
I* a((ea)# !)2 *-e e5%den&e ! )e#(nden* *-a* &2(la%nan* &a)*ed a1a, ) #*le ne $/' =lan@e*, / (%e&e
=ed#-ee*, / (%e&e *-e)2#, 7 (%e&e# *1el $E<-%=%*# 8>8, 8>AA,8 8>AB,8 8>AC8 and 8/B8 (a"e# /7A/3 TSN, De&e2=e)
/, />>7'0
In !a&*, *-%# 1a# *-e )ea#n 1-, )e#(nden* Pe*e) N" ld"ed a &)%2%nal &2(la%n* a"a%n#* &2(la%nan* !)
C+al%!%ed *-e!* and (e)D+),0 T-e !%#&al8# !!%&e !%nd%n" a prima facie e5%den&e *-a* &2(la%nan* &22%**ed *-e
&)%2e ! C+al%!%ed *-e!* %##+ed a )e#l+*%n !) %*# !%l%n" %n &+)* =+* d%#2%##%n" *-e &-a)"e ! (e)D+), $E<-%=%*
838 !) )e#(nden* and E<-%=%* 8BA?8 !) &2(la%nan*'0 A# a &n#eC+en&e, &2(la%nan* 1a# &-a)"ed %n &+)* !)
*-e #a%d &)%2e $E<-%=%* 8;8 !) )e#(nden* and E<-%=%* 8BA48 !) *-e &2(la%nan*'0
W%*- *-e#e (%e&e# ! e5%den&e, &2(la%nan* &22%**ed #e)%+# 2%#&nd+&* a"a%n#* -e) e2(l,e) 1-%&- %# ne
! *-e D+#* and 5al%d ")+nd# !) an e2(l,e) * *e)2%na*e an e2(l,ee $A)*%&le 7:7 ! *-e La=) Cde a#
a2ended'0
E>F
On pril !"# $%%&# respondent NLRC promulgated its assailed Resolution
3$=4
affirming the Labor
rbiter2s decision* The resolution substantiall( incorporated the findings of the Labor rbiter*
3$$4
Cnsatisfied# petitioner instituted the instant special ci'il action for certiorari under Rule ?; of the
Rules of Court on the follo)ing grounds5
3$!4
/0 WITH ALL DUE RESPECT, THE HONORABLE NATIONAL LABOR RELATIONS COMMISSION
COMMITTED A PATENT AND PALPABLE ERROR AMOUNTING TO GRAVE ABUSE OF
DISCRETION IN ITS FAILURE TO CONSIDER THAT THE ALLEGED LOSS OF CONFIDENCE IS A
FALSE CAUSE AND AN AFTERTHOUGHT ON THE PART OF THE RESPONDENTAEMPLOYER TO
JUSTIFY, ALBEIT ILLEGALLY, THE DISMISSAL OF THE COMPLAINANT FROM HER
EMPLOYMENT6
70 WITH ALL DUE RESPECT, THE HONORABLE NATIONAL LABOR RELATIONS COMMISSION
COMMITTED A PATENT AND PALPABLE ERROR AMOUNTING TO GRAVE ABUSE OF
DISCRETION IN ADOPTING THE RULING OF THE LABOR ARBITER THAT THERE WAS NO
UNDERPAYMENT OF WAGES AND BENEFITS ON THE BASIS OF EGHIBIT H:H $AN UNDATED
SUMMARY OF COMPUTATION PREPARED BY ALLEGEDLY BY RESPONDENT8S EGTERNAL
ACCOUNTANT' WHICH IS TOTALLY INADMISSIBLE AS AN EVIDENCE TO PROVE PAYMENT OF
WAGES AND BENEFITS6
90 WITH ALL DUE RESPECT, THE HONORABLE NATIONAL LABOR RELATIONS COMMISSION
COMMITTED A PATENT AND PALPABLE ERROR AMOUNTING TO GRAVE ABUSE OF
DISCRETION IN FAILING TO CONSIDER THE EVIDENCE ADDUCED BEFORE THE LABOR
ARBITER AS CONSTITUTING UNFAIR LABOR PRACTICE COMMITTED BY THE RESPONDENT0
The Solicitor Deneral# in a -anifestation in lieu of Comment dated ugust "# $%%; re<ects
pri'ate respondent2s principal claims and defenses and urges this Court to set aside the public
respondent2s assailed resolution*
3$94
+e agree*
It is settled that in termination cases the emplo(er bears the burden of proof to sho) that the
dismissal is for <ust cause# the failure of )hich )ould mean that the dismissal is not <ustified and the
emplo(ee is entitled to reinstatement*
3$&4
In the case at bar# the pri'ate respondent initiall( claimed that petitioner abandoned her <ob
)hen she failed to return to )ork on -a( "# $%%$* dditionall(# in order to strengthen his contention
that there eEisted sufficient cause for the termination of petitioner# he belatedl( included a complaint
for loss of confidence# supporting this )ith charges that petitioner had stolen a blanket# a bedsheet
and t)o to)els from the hotel*
3$;4
ppended to his last complaint )as a suit for :ualified theft filed )ith
the 1aguio Cit( prosecutor2s office*
From the e'idence on record# it is cr(stal clear that the circumstances upon )hich pri'ate
respondent anchored his claim that petitioner >abandoned> her <ob )ere not enough to constitute <ust
cause to sanction the termination of her ser'ices under rticle !"9 of the Labor Code* For
abandonment to arise# there must be concurrence of t)o things5 $8 lack of intention to )orkF
3$?4
and !8
the presence of o'ert acts signif(ing the emplo(ee2s intention not to )ork*
3$@4
In the instant case# respondent does not dispute the fact that petitioner tried to file a lea'e of
absence )hen she learned that the hotel management )as displeased )ith her refusal to attest to
the affida'it* The fact that she made this attempt clearl( indicates not an intention to abandon but an
intention to return to )ork after the period of her lea'e of absence# had it been granted# shall ha'e
eEpired*
Furthermore# )hile absence from )ork for a prolonged period ma( suggest abandonment in
certain instances# mere absence of one or t)o da(s )ould not be enough to sustain such a
claim* The o'ert act 7absence8 ought to unerringl( point to the fact that the emplo(ee has no
intention to return to )ork#
3$"4
)hich is patentl( not the case here* In fact# se'eral da(s after she had
been ad'ised to take an informal lea'e# petitioner tried to resume )orking )ith the hotel# to no
a'ail* It )as onl( after she had been repeatedl( rebuffed that she filed a case for illegal
dismissal* These acts militate against the pri'ate respondent2s claim that petitioner abandoned her
<ob* s the Solicitor Deneral in his manifestation obser'ed5
Pe*%*%ne)8# a=#en&e n *-a* da, #-+ld n* =e &n#*)+ed a# a=andn2en* ! -e) D=0 S-e d%d n* )e()* =e&a+#e
*-e &a#-%e) *ld -e) n* * )e()* an,2)e, and *-a* ()%5a*e )e#(nden* N" d%d n* 1an* * #ee -e) %n *-e -*el
()e2%#e#0 B+* *1 da,# la*e) ) n *-e /B*- ! Ma,, a!*e) )eal%I%n" *-a* #-e -ad * &la)%!, -e) e2(l,2en*
#*a*+#, #-e a"a%n )e()*ed !) 1)@0 H1e5e), #-e 1a# ()e5en*ed !)2 1)@%n" =, ()%5a*e )e#(nden*#0
E/>F
+e no) come to the second cause raised b( pri'ate respondent to support his contention that
petitioner )as 'alidl( dismissed from her <ob*
Loss of confidence as a <ust cause for dismissal )as ne'er intended to pro'ide emplo(ers )ith
a blank check for terminating their emplo(ees* Such a 'ague# all/encompassing preteEt as loss of
confidence# if un:ualifiedl( gi'en the seal of appro'al b( this Court# could readil( reduce to barren
form the )ords of the constitutional guarantee of securit( of tenure* 0a'ing this in mind# loss of
confidence should ideall( appl( onl( to cases in'ol'ing emplo(ees occup(ing positions of trust and
confidence or to those situations )here the emplo(ee is routinel( charged )ith the care and custod(
of the emplo(er2s mone( or propert(* To the first class belong managerial emplo(ees# i*e*# those
'ested )ith the po)ers or prerogati'es to la( do)n management policies andGor to hire# transfer#
suspend# la(/off# recall# discharge# assign or discipline emplo(ees or effecti'el( recommend such
managerial actionsF and to the second class belong cashiers# auditors# propert( custodians# etc*# or
those )ho# in the normal and routine eEercise of their functions# regularl( handle significant amounts
of mone( or propert(* 6'identl(# an ordinar( chambermaid )ho has to sign out for linen and other
hotel propert( from the propert( custodian each da( and )ho has to account for each and e'er(
to)el or bedsheet utili.ed b( the hotel2s guests at the end of her shift )ould not fall under an( of
these t)o classes of emplo(ees for )hich loss of confidence# if abl( supported b( e'idence# )ould
normall( appl(* Illustrating this distinction# this Court# in Marina Port Services, Inc. vs. NLRC#
3!=4
has
stated that5
T =e #+)e, e5e), e2(l,ee 2+#* enD, #2e de")ee ! *)+#* and &n!%den&e !)2 *-e e2(l,e) a# *-a* %# ne
)ea#n 1-, -e 1a# e2(l,ed %n *-e !%)#* (la&e0 One &e)*a%nl, de# n* e2(l, a (e)#n -e d%#*)+#*#0 Indeed,
e5en *-e l1l, Dan%*) 2+#* enD, *-a* *)+#* and &n!%den&e %n #2e 2ea#+)e %! nl, =e&a+#e -e %# *-e ne 1-
(en# *-e !!%&e %n *-e 2)n%n" and &l#e# %* a* n%"-* and %n *-%# #en#e %# en*)+#*ed 1%*- *-e &a)e ) ()*e&*%n !
*-e e2(l,e)8# ()(e)*,0 T-e @e,# -e -ld# a)e *-e #,2=l ! *-a* *)+#* and &n!%den&e0
B, *-e #a2e *@en, *-e #e&+)%*, "+a)d 2+#* al# =e &n#%de)ed a# enD,%n" *-e *)+#* and &n!%den&e ! -%#
e2(l,e), 1-#e ()(e)*, -e %# #a!e"+a)d%n"0 L%@e *-e Dan%*), -e -a# a&&e## * *-%# ()(e)*,0 He *, %#
&-a)"ed 1%*- %*# &a)e and ()*e&*%n0
N*a=l,, -1e5e), and l%@e *-e Dan%*) a"a%n, -e %# en*)+#*ed nl, 1%*- *-e physical *a#@ ! ()*e&*%n" *-a*
()(e)*,0 T-e e2(l,e)8# *)+#* and &n!%den&e %n -%2 %# l%2%*ed * *-a* 2%n%#*e)%al !+n&*%n0 He %# n*
en*)+#*ed, %n *-e La=) A)=%*e)8# 1)d#, 81%*- *-e d+*%e# ! #a!e@ee(%n" and #a!e"+a)d%n" &2(an, (l%&%e#,
2ana"e2en* %n#*)+&*%n#, and &2(an, #e&)e*# #+&- a# (e)a*%n de5%&e#08 He %# n* ()%5, * *-e#e &n!%den*%al
2a**e)#, 1-%&- a)e #-a)ed nl, %n *-e -%"-e) e&-eln# ! 2ana"e2en*0 I* %# *-e (e)#n# n #+&- le5el# 1-,
=e&a+#e *-e, d%#&-a)"e *-e#e #en#%*%5e d+*%e#, 2a, =e &n#%de)ed -ld%n" (#%*%n# ! *)+#* and
&n!%den&e0 T-e #e&+)%*, "+a)d de# n* =eln" %n #+&- &a*e"),0
E7/F
-ore importantl(# )e ha'e repeatedl( held that loss of confidence should not be simulated in
order to <ustif( )hat )ould other)ise be# under the pro'isions of la)# an illegal dismissal* >It should
not be used as a subterfuge for causes )hich are illegal# improper and un<ustified* It must be
genuine# not a mere afterthought to <ustif( an earlier action taken in bad faith*>
3!!4
In the case at bar# the suspicious dela( in pri'ate respondent2s filing of :ualified theft charges
against petitioner long after the latter eEposed the hotel2s scheme 7to a'oid its obligations as
emplo(er under the Labor Code8 b( her act of filing illegal dismissal charges against the pri'ate
respondent )ould hardl( )arrant serious consideration of loss of confidence as a 'alid ground for
dismissal* Notabl(# the Solicitor Deneral has himself taken a position opposite the public respondent
and has obser'ed that5
I! (e*%*%ne) -ad )eall, &22%**ed *-e a&*# &-a)"ed a"a%n#* -e) =, ()%5a*e )e#(nden*# $#*eal%n" #+((l%e# !
)e#(nden* -*el', ()%5a*e )e#(nden*# #-+ld -a5e &n!)n*ed -e) =e!)e d%#2%##%n" -e) n *-a*
")+nd0 P)%5a*e )e#(nden*# d%d n* d #0 In !a&*, ()%5a*e )e#(nden* N" d%d n* )a%#e *-e 2a**e) 1-en
(e*%*%ne) 1en* * #ee -%2 n Ma, >, />>/, and -anded -%2 -e) a((l%&a*%n !) lea5e0 I* *@ ()%5a*e
)e#(nden*# ;7 da,# ) +( * J+l, 3, />>/ =e!)e !%nall, de&%d%n" * !%le a &)%2%nal &2(la%n* a"a%n#* (e*%*%ne),
%n an =5%+# a**e2(* * =+%ld a &a#e a"a%n#* -e)0
T-e 2an%(+la*%n# ! ()%5a*e )e#(nden*# #-+ld n* =e &+n*enan&ed0
E79F
Clearl(# the efforts to <ustif( petitioner2s dismissal / on top of the pri'ate respondent2s scheme of
inducing his emplo(ees to sign an affida'it absol'ing him from possible 'iolations of the Labor Code
/ taints )ith e'ident bad faith and deliberate malice petitioner2s summar( termination from
emplo(ment*
0a'ing said this# )e turn to the important :uestion of )hether or not the dismissal b( the pri'ate
respondent of petitioner constitutes an unfair labor practice*
The ans)er in this case must ine'itabl( be in the affirmati'e*
The pi'otal :uestion in an( case )here unfair labor practice on the part of the emplo(er is
alleged is )hether or not the emplo(er has eEerted pressure# in the form of restraint# interference or
coercion# against his emplo(ee2s right to institute concerted action for better terms and conditions of
emplo(ment* +ithout doubt# the act of compelling emplo(ees to sign an instrument indicating that
the emplo(er obser'ed labor standards pro'isions of la) )hen he might ha'e not# together )ith the
act of terminating or coercing those )ho refuse to cooperate )ith the emplo(er2s scheme constitutes
unfair labor practice* The first act clearl( preempts the right of the hotel2s )orkers to seek better
terms and conditions of emplo(ment through concerted action*
+e agree )ith the Solicitor Deneral2s obser'ation in his manifestation that >3t4his actuation*** is
analogous to the situation en'isaged in paragraph 7f8 of rticle !&" of the Labor Code>
3!&4
)hich
distinctl( makes it an unfair labor practice >to dismiss# discharge or other)ise pre<udice or
discriminate against an emplo(ee for ha'ing gi'en or being about to gi'e testimon(>
3!;4
under the
Labor Code* For in not gi'ing positi'e testimon( in fa'or of her emplo(er# petitioner had reser'ed
not onl( her right to dispute the claim and proffer e'idence in support thereof but also to )ork for
better terms and conditions of emplo(ment*
For refusing to cooperate )ith the pri'ate respondent2s scheme# petitioner )as ob'iousl( held
up as an eEample to all of the hotel2s emplo(ees# that the( could onl( cause trouble to management
at great personal incon'enience* Implicit in the act of petitioner2s termination and the subse:uent
filing of charges against her )as the )arning that the( )ould not onl( be depri'ed of their means of
li'elihood# but also possibl(# their personal libert(*
This Court does not normall( o'erturn findings and conclusions of :uasi/<udicial agencies )hen
the same are abl( supported b( the e'idence on record* 0o)e'er# )here such conclusions are
based on a misperception of facts or )here the( patentl( fl( in the face of reason and logic# )e )ill
not hesitate to set aside those conclusions* Doing into the issue of petitioner2s mone( claims# )e
find one more salient reason in this case to set things right5 the labor arbiter2s e'aluation of the
mone( claims in this case incredibl( ignores eEisting la) and <urisprudence on the matter* Its blatant
one/sidedness simpl( raises the suspicion that something more than the facts# the la) and
<urisprudence ma( ha'e influenced the decision at the le'el of the rbiter*
Labor rbiter ,ati accepted hook# line and sinker the pri'ate respondent2s bare claim that the
reason the monetar( benefits recei'ed b( petitioner bet)een $%"$ to $%"@ )ere less than minimum
)age )as because petitioner did not factor in the meals# lodging# electric consumption and )ater
she recei'ed during the period in her computations*
3!?4
Dranting that meals and lodging )ere pro'ided
and indeed constituted facilities# such facilities could not be deducted )ithout the emplo(er
compl(ing first )ith certain legal re:uirements* +ithout satisf(ing these re:uirements# the emplo(er
simpl( cannot deduct the 'alue from the emplo(ee2s )ages* First# proof must be sho)n that such
facilities are customaril( furnished b( the trade* Second# the pro'ision of deductible facilities must
be 'oluntaril( accepted in )riting b( the emplo(ee* Finall(# facilities must be charged at fair and
reasonable 'alue*
3!@4
These re:uirements )ere not met in the instant case* ,ri'ate respondent >failed to present an(
compan( polic( or guideline to sho) that the meal and lodging * * * 7are8 part of the salar(F>
3!"4
he failed
to pro'ide proof of the emplo(ee2s )ritten authori.ationF and# he failed to sho) ho) he arri'ed at the
'aluations*
3!%4
Curiousl(# in the case at bench# the onl( 'aluations relied upon b( the labor arbiter in his
decision )ere figures furnished b( the pri'ate respondent2s o)n accountant# )ithout corroborati'e
e'idence* On the preteEt that records prior to the Bul( $?# $%%= earth:uake )ere lost or destro(ed#
respondent failed to produce pa(roll records# receipts and other rele'ant documents# )here he could
ha'e# as has been pointed out in the Solicitor Deneral2s manifestation# >secured certified copies
thereof from the nearest regional office of the Department of Labor# the SSS or the 1IR*>
39=4
-ore significantl(# the food and lodging# or the electricit( and )ater consumed b( the petitioner
)ere not facilities but supplements* benefit or pri'ilege granted to an emplo(ee for the
con'enience of the emplo(er is not a facilit(* The criterion in making a distinction bet)een the t)o
not so much lies in the kind 7food# lodging8 but the purpose*
39$4
Considering# therefore# that hotel
)orkers are re:uired to )ork different shifts and are eEpected to be a'ailable at 'arious odd hours#
their read( a'ailabilit( is a necessar( matter in the operations of a small hotel# such as the pri'ate
respondent2s hotel*
It is therefore e'ident that petitioner is entitled to the pa(ment of the deficienc( in her )ages
e:ui'alent to the full )age applicable from -a( $9# $%"" up to the date of her illegal dismissal*
dditionall(# petitioner is entitled to pa(ment of ser'ice incenti'e lea'e pa(# emergenc( cost of
li'ing allo)ance# night differential pa(# and $9th month pa( for the periods alleged b( the petitioner
as the pri'ate respondent has ne'er been able to adduce proof that petitioner )as paid the
aforestated benefits*
0o)e'er# the claims co'ering the period of October $%"@ up to the time of filing the case on
-a( $9# $%"" are barred b( prescription as ,*D* &&! 7as amended8 and its implementing rules limit
all mone( claims arising out of emplo(er/emplo(ee relationship to three 798 (ears from the time the
cause of action accrues*
39!4
+e depart from the settled rule that an emplo(ee )ho is un<ustl( dismissed from )ork normall(
should be reinstated )ithout loss of seniorit( rights and other pri'ileges* O)ing to the strained
relations bet)een petitioner and pri'ate respondent# allo)ing the former to return to her <ob )ould
onl( sub<ect her to possible harassment and future embarrassment* In the instant case# separation
pa( e:ui'alent to one month2s salar( for e'er( (ear of continuous ser'ice )ith the pri'ate respondent
)ould be proper# starting )ith her <ob at the 1elfront 0otel*
In addition to separation pa(# back)ages are in order* ,ursuant to R** ?@$; and our decision
in Osmalik 1ustamante# et al. 's* National Labor Relations Commission#
3994
petitioner is entitled to full
back)ages from the time of her illegal dismissal up to the date of promulgation of this decision
)ithout :ualification or deduction*
Finall(# in dismissal cases# the la) re:uires that the emplo(er must furnish the emplo(ee sought
to be terminated from emplo(ment )ith t)o )ritten notices before the same ma( be legall(
effected* The first is a )ritten notice containing a statement of the cause7s8 for dismissalF the second
is a notice informing the emplo(ee of the emplo(er2s decision to terminate him stating the basis of
the dismissal* During the process leading to the second notice# the emplo(er must gi'e the
emplo(ee ample opportunit( to be heard and defend himself# )ith the assistance of counsel if he so
desires*
Di'en the seriousness of the second cause 7:ualified theft8 of the petitioner2s dismissal# it is
note)orth( that the pri'ate respondent ne'er e'en bothered to inform petitioner of the charges
against her* Neither )as petitioner gi'en the opportunit( to eEplain the loss of the articles* It )as
onl( almost t)o months after petitioner had filed a complaint for illegal dismissal# as an afterthought#
that the loss )as reported to the police and added as a supplemental ans)er to petitioner2s
complaint* Clearl(# the dismissal of petitioner )ithout the benefit of notice and hearing prior to her
termination 'iolated her constitutional right to due process* Cnder the circumstances# an a)ard of
One Thousand ,esos 7,$#===*==8 on top of pa(ment of the deficienc( in )ages and benefits for the
period aforestated )ould be proper*
'"ERE(ORE# premises considered# the R6SOLCTION of the National Labor Relations
Commission dated pril !&# $%%& is R6V6RS6D and S6T SID6# )ith costs* For clarit(# the
economic benefits due the petitioner are hereb( summari.ed as follo)s5
/' De!%&%en&, 1a"e# and *-e a((l%&a=le ECOLA !)2 Ma, /9, />:: +( * *-e da*e ! (e*%*%ne)8# %lle"al
d%#2%##al6
7' Se)5%&e %n&en*%5e lea5e (a,6 n%"-* d%!!e)en*%al (a, and /9*- 2n*- (a, !) *-e #a2e (e)%d6
9' Se(a)a*%n (a, eC+al * ne 2n*-8# #ala), !) e5e), ,ea) ! (e*%*%ne)8# &n*%n++# #e)5%&e 1%*- *-e
()%5a*e )e#(nden* #*a)*%n" 1%*- -e) D= a* *-e Bel!)n* H*el6
3' F+ll =a&@1a"e#, 1%*-+* C+al%!%&a*%n ) ded+&*%n, !)2 *-e da*e ! (e*%*%ne)8# %lle"al d%#2%##al +( *
*-e da*e ! ()2+l"a*%n ! *-%# de&%#%n (+)#+an* * +) )+l%n" %n B+#*a2an*e vs. NLRC0
E93F
;' P/0BBB0BB0
SO OR$ERE$.
Padilla, Bellosillo and Vitug, JJ., concur*
Hermosisima, Jr., J., on lea'e*
THIRD DIVISION


MA. WENELITA S. TIRAZONA,
Pe*%*%ne),



A versus A



PHILIPPINE EDS TECHNO- SERVICE
INC. (PET INC.) AND/OR KEN
KUBOTA, MAMORU ONO and
JUNICHI HIROSE,
Re#(nden*#0
.R. N!. "#$%"&

P)e#en*.

YNARESASANTIAGO, J.,
C-a%)(e)#n,
AUSTRIAAMARTINEZ,
CHICOANAZARIO,
NACHURA, and
LEONARDOADE CASTRO,JJJ0


P)2+l"a*ed.


Jan+a), 7B, 7BB>
<A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A<


R E S O L U T I O N


CHICOANAZARIO, J0.

Be!)e U# %# a M*%n !) Lea5e * F%le EaF Se&nd M*%n !) Re&n#%de)a*%n,
E/F
1%*- *-e
Se&nd M*%n !) Re&n#%de)a*%n %n&)()a*ed *-e)e%n, 1-e)e (e*%*%ne) Ma0 Wenel%*a T%)aIna
$T%)aIna' #ee@# *-e )e&n#%de)a*%n ! *-e Re#l+*%n
E7F
! *-%# C+)* da*ed 79 J+ne 7BB:0 Sa%d
Re#l+*%n den%ed !) la&@ ! 2e)%* (e*%*%ne)K# ()e5%+# M*%n !) Re&n#%de)a*%n,
E9F
1-%&- #+"-* *-e
)e5e)#al ! +) De&%#%n
E3F
da*ed /3 Ma)&- 7BB: ), %n *-e al*e)na*%5e, 2d%!%&a*%n *-e)e! =, a1a)d%n"
-e) #e(a)a*%n (a, and )e*%)e2en* =ene!%*# +nde) e<%#*%n" la1#0

In +) /3 Ma)&- 7BB: De&%#%n, 1e #+=#&)%=ed * *-e !a&*+al !%nd%n"# ! *-e Na*%nal La=)
Rela*%n# C22%##%n $NLRC' and *-e C+)* ! A((eal# *-a* T%)aIna, =e%n" *-e Ad2%n%#*)a*%5e
Mana"e) ! P-%l%((%ne EDS Te&-nASe)5%&e, In&0 $PET', 1a# a 2ana"e)%al e2(l,ee 1- -eld a (#%*%n
! *)+#* and &n!%den&e6 *-a* a!*e) PET !!%&e)#Ld%)e&*)# &alled -e) a**en*%n * -e) %2()(e) -andl%n" ! a
#%*+a*%n %n5l5%n" a )an@AandA!%le e2(l,ee, #-e &la%2ed *-a* #-e 1a# den%ed d+e ()&e## !) 1-%&- #-e
de2anded P7,BBB,BBB0BB %nde2n%*, !)2 PET and %*# !!%&e)#Ld%)e&*)#6 *-a* #-e ad2%**ed * )ead%n" a
&n!%den*%al le**e) add)e##ed * PET !!%&e)#Ld%)e&*)# &n*a%n%n" *-e le"al (%n%n ! *-e &+n#el ! PET
)e"a)d%n" -e) &a#e6 and *-a* #-e 1a# 5al%dl, *e)2%na*ed !)2 -e) e2(l,2en* n *-e ")+nd *-a* #-e
1%ll!+ll, =)ea&-ed *-e *)+#* and &n!%den&e )e(#ed %n -e) =, -e) e2(l,e)0 In *-e end, 1e &n&l+ded
*-a*.

T%)aIna, %n *-%# &a#e, -a# "%5en PET 2)e *-an en+"- )ea#n# * d%#*)+#* -e)0 T-e a))"an&e and -#*%l%*, #-e -a#
#-1n *1a)d# *-e &2(an, and -e) #*+==)n, +n&2()2%#%n" #*an&e %n al2#* all %n#*an&e# D+#*%!, *-e &2(an,K# *e)2%na*%n
! -e) e2(l,2en*0 M)e5e), T%)aInaK# )ead%n" ! 1-a* 1a# #+((#ed * =e a &n!%den*%al le**e) =e*1een *-e &+n#el and
d%)e&*)# ! *-e PET, e5en %! %* &n&e)n# -e), nl, !+)*-e) #+(()*# -e) e2(l,e)K# 5%e1 *-a* #-e &ann* =e *)+#*ed0 In !%ne, *-e
C+)* &ann* !a+l* *-e a&*%n# ! PET %n d%#2%##%n" (e*%*%ne)0
E;F



Hen&e, *-e fallo ! +) /3 Ma)&- 7BB: De&%#%n )ead#.

WHERE'ORE, ()e2%#e# &n#%de)ed, *-e %n#*an* (e*%*%n %# -e)e=, DENIED !) la&@ ! 2e)%* and *-e De&%#%n ! *-e
C+)* ! A((eal# da*ed 73 Ma, 7BB; %# -e)e=, AFFIRMED0 C#*# a"a%n#* *-e (e*%*%ne)0
E4F

On 7> A()%l 7BB:, T%)aIna 25ed !) )e&n#%de)a*%n
E?F
! +) a!)eA2en*%ned De&%#%n0 S-e
a)"+ed *-e)e%n *-a* *-e C+)* !a%led * &n#%de) *-e len"*- ! -e) #e)5%&e * PET %n a!!%)2%n" -e)
*e)2%na*%n !)2 e2(l,2en*0 S-e ()a,ed *-a* -e) d%#2%##al =e de&la)ed %lle"al0 Al*e)na*%5el,, #-+ld
*-e C+)* +(-ld *-e le"al%*, ! -e) d%#2%##al, T%)aIna (leaded *-a* #-e =e a1a)ded #e(a)a*%n (a, and
)e*%)e2en* =ene!%*#, +* ! -+2an%*a)%an &n#%de)a*%n#0

In +) Re#l+*%n
E:F
da*ed 79 J+ne 7BB:, 1e den%ed T%)aInaK# M*%n !) Re&n#%de)a*%n, a# *-e
#a2e d%d n* ()e#en* an, #+=#*an*%al a)"+2en*# *-a* 1+ld 1a))an* a 2d%!%&a*%n ! +) ()e5%+#
)+l%n"0 We *-+# de&)eed.

ACCORDINGLY, *-e C+)* )e#l5e# * DENY *-e 2*%n !) )e&n#%de)a*%n 1%*- FINALITY !) la&@ ! 2e)%*0


On 7/ A+"+#* 7BB:, T%)aIna !%led *-e %n#*an* M*%n !) Lea5e * F%le EaF Se&nd M*%n !)
Re&n#%de)a*%n, 1%*- *-e Se&nd M*%n !) Re&n#%de)a*%n %n&)()a*ed *-e)e%n, )a%#%n" e##en*%all, *-e
#a2e a)"+2en*# and ()a,e)# &n*a%ned %n -e) !%)#* M*%n !) Re&n#%de)a*%n0

T-e C+)* *-e)ea!*e) )eC+%)ed PET * &22en* n *-e a=5e 2*%n0 On /> N5e2=e) 7BB:,
PET !%led %*# C22en*LO((#%*%n,
E>F
* 1-%&- T%)aIna !%led -e) Re(l,
E/BF
n : De&e2=e) 7BB:0

A!*e) *-)+"-l, #&)+*%n%I%n" *-e a5e)2en*# ! *-e ()e#en* M*%n, *-e C+)* +n-e#%*a*%n"l,
de&la)e# *-e #a2e * =e &2(le*el, +n2e)%*)%+#0

Se&*%n 7, R+le ;7 ! *-e R+le# ! C+)* e<(l%&%*l, de&)ee# *-a* n #e&nd 2*%n !)
)e&n#%de)a*%n ! a D+d"2en* ) !%nal )e#l+*%n =, *-e #a2e (a)*, #-all =e en*e)*a%ned0 A&&)d%n"l,, a
#e&nd 2*%n !) )e&n#%de)a*%n %# a ()-%=%*ed (lead%n", 1-%&- #-all n* =e all1ed, e<&e(* !)
e<*)a)d%na)%l, (e)#+a#%5e )ea#n# and nl, a!*e) an e<()e## lea5e #-all -a5e !%)#* =een =*a%ned0
E//F
In *-%#
&a#e, 1e !a%l * !%nd an, #+&- e<*)a)d%na)%l, (e)#+a#%5e )ea#n * all1 T%)aInaK# Se&nd M*%n !)
Re&n#%de)a*%n0

A# a "ene)al )+le, an e2(l,ee 1- -a# =een d%#2%##ed !) an, ! *-e D+#* &a+#e# en+2e)a*ed
+nde) A)*%&le 7:7
E/7F
! *-e La=) Cde %# n* en*%*led * #e(a)a*%n (a,0
E/9F
In Sy v. Metropolitan Bank &
Trust ompany,
E/3F
1e de&la)ed *-a* nl, (n)(*+,- d.*/.**0d 0/1,!-00* a)e en*%*led * )e*%)e2en* =ene!%*#
and *-e) ()%5%le"e# %n&l+d%n" )e%n#*a*e2en* and =a&@1a"e#0

Al*-+"- =, 1a, ! e<&e(*%n, *-e ")an* ! #e(a)a*%n (a, ) #2e *-e) !%nan&%al a##%#*an&e 2a,
=e all1ed * an e2(l,ee d%#2%##ed !) D+#* &a+#e# n *-e =a#%# ! eC+%*,,
E/;F
%n !hilippine "ong
#istance Telephone ompany v. $ational "a%or &elations ommission,
E/4F
1e #e* *-e l%2%*# !) #+&- a
")an* and "a5e *-e !ll1%n" ratio !) *-e #a2e.

2S301a4a+.!n 1a- *5a,, 60 a,,!70d a* a /0a*(40 !8 *!9.a, )(*+.90 !n,- .n +5!*0 .n*+an90* 75040 +50 0/1,!-00 .* :a,.d,-
d.*/.**0d 8!4 9a(*0* !+504 +5an *04.!(* /.*9!nd(9+ !4 +5!*0 408,09+.n; !n 5.* /!4a, 95a4a9+04. < < <0

A &n*)a), )+le 1+ld, a# *-e (e*%*%ne) &))e&*l, a)"+e#, -a5e *-e e!!e&*, ! )e1a)d%n" )a*-e) *-an (+n%#-%n" *-e e))%n"
e2(l,ee !) -%# !!en#e0 And 1e d n* a")ee *-a* *-e (+n%#-2en* %# -%# d%#2%##al nl, and *-a* *-e #e(a)a*%n (a, -a# n*-%n"
* d 1%*- *-e 1)n" -e -a# &22%**ed0 O! &+)#e %* -a#0 Indeed, %! *-e e2(l,ee 1- #*eal# !)2 *-e &2(an, %# ")an*ed
#e(a)a*%n (a, e5en a# -e %# 5al%dl, d%#2%##ed, %* %# n* +nl%@el, *-a* -e 1%ll &22%* a #%2%la) !!en#e %n -%# ne<* e2(l,2en*
=e&a+#e -e *-%n@# -e &an e<(e&* a l%@e len%en&, %! -e %# a"a%n !+nd +*0 T-%# @%nd ! 2%#(la&ed &2(a##%n %# n* "%n" * d
la=) %n "ene)al an, "d a# %* 1%ll en&+)a"e *-e %n!%l*)a*%n ! %*# )an@# =, *-#e 1- d n* de#e)5e *-e ()*e&*%n and &n&e)n
! *-e Cn#*%*+*%n0

T-e (l%&, ! #&%al D+#*%&e %# n* %n*ended * &+n*enan&e 1)n"d%n" #%2(l, =e&a+#e %* %# &22%**ed =, *-e
+nde)()%5%le"ed0 A* =e#* %* 2a, 2%*%"a*e *-e (enal*, =+* %* &e)*a%nl, 1%ll n* &ndne *-e !!en#e0 C2(a##%n !) *-e () %# an
%2(e)a*%5e ! e5e), -+2ane #&%e*, =+* nl, 1-en *-e )e&%(%en* %# n* a )a#&al &la%2%n" an +nde#e)5ed ()%5%le"e0 S&%al D+#*%&e
&ann* =e (e)2%**ed * =e EaF )e!+"e ! #&+nd)el# an, 2)e *-an &an eC+%*, =e an %2(ed%2en* * *-e (+n%#-2en* ! *-e
"+%l*,0 T-#e 1- %n5@e #&%al D+#*%&e 2a, d # nl, %! *-e%) -and# a)e &lean and *-e%) 2*%5e# =la2ele## and n* #%2(l,
=e&a+#e *-e, -a((en * =e ()0 T-%# ")ea* (l%&, ! +) Cn#*%*+*%n %# n* 2ean* !) *-e ()*e&*%n ! *-#e 1- -a5e ()5ed
*-e, a)e n* 1)*-, ! %*, l%@e *-e 1)@e)# 1- -a5e *a%n*ed *-e &a+#e ! la=) 1%*- *-e =le2%#-e# ! *-e%) 1n &-a)a&*e)0
$E2(-a#%# +)#0'

In a&&)dan&e 1%*- *-e a=5e ()n+n&e2en*#, T%)aIna %# n* en*%*led * *-e a1a)d ! #e(a)a*%n
(a,0

Cn*)a), * -e) e<a""e)a*ed &la%2#, T%)aIna 1a# n* D+#* M")a&ele##l, e<(elledN ) M#%2(l,
*e)2%na*edN !)2 *-e &2(an, n && A14., &<<&0 S-e 1a# !+nd * -a5e 5%la*ed *-e *)+#* and
&n!%den&e )e(#ed %n -e) =, -e) e2(l,e) 1-en #-e a))"an*l, and +n)ea#na=l, de2anded !)2 PET
and %*# !!%&e)#Ld%)e&*)# *-e e<)=%*an* a2+n* ! P7,BBB,BBB0BB %n da2a"e#, &+(led 1%*- a *-)ea* ! a
la1#+%* %! *-e #a2e 1a# n* ()2(*l, (a%d 1%*-%n !%5e da,#0 T-%# +n1a))an*ed %2(#%*%n n PET and %*#
!!%&e)#Ld%)e&*)# 1a# 2ade a!*e) *-e &2(an, #en* T%)aIna a le**e), !%nd%n" -e) -andl%n" ! *-e #%*+a*%n
%n5l5%n" a )an@AandA!%le e2(l,ee * =e le## *-an %deal, and 2e)el, )e2%nd%n" -e) * =e 2)e
&%)&+2#(e&* 1-en deal%n" 1%*- *-e 2)e del%&a*e &n&e)n# ! *-e%) e2(l,ee#0 T a"")a5a*e *-e #%*+a*%n,
T%)aIna ada2an*l, and &n*%n+all, )e!+#ed * &(e)a*e 1%*- PETK# %n5e#*%"a*%n ! -e) &a#e and *
()5%de an adeC+a*e e<(lana*%n !) -e) a&*%n#0

Ve)%l,, *-e a&*%n# ! T%)aIna )e!le&*ed an =d+)a*e &-a)a&*e) *-a* %# a))"an*, +n&2()2%#%n",
and -#*%le0 B, %22ed%a*el, and +n)ea#na=l, ad(*%n" an ad5e)#e #*an&e a"a%n#* PET, #-e #+"-* *
%2(#e -e) 1%ll n *-e &2(an, and (la&ed -e) 1n %n*e)e#*# a=5e *-#e ! -e) e2(l,e)0 He) 2*%5e
!) -e) a&*%n# 1a# )ende)ed e5en 2)e C+e#*%na=le =, -e) e<)=%*an* and a)=%*)a), de2and
!) P7,BBB,BBB0BB (a,a=le 1%*-%n !%5e da,# !)2 de2and0 He) a**%*+de *1a)d# -e) e2(l,e) 1a# &lea)l,
%n&n#%#*en* 1%*- -e) (#%*%n ! *)+#* and &n!%den&e0 He) () &-a)a&*e) =e&a2e e5en 2)e e5%den*
1-en #-e )ead 1-a* 1a# #+((#ed * =e a &n!%den*%al le**e) ! *-e le"al &+n#el ! PET * PET
!!%&e)#Ld%)e&*)# e<()e##%n" -%# le"al (%n%n n T%)aInaK# ad2%n%#*)a*%5e &a#e0 PET 1a#, *-e)e!)e,
!+ll, D+#*%!%ed %n *e)2%na*%n" T%)aInaK# e2(l,2en* !) l## ! *)+#* and &n!%den&e0

T%)aIna al# !a%led * (e)#+ade +# * &n#%de) %n -e) !a5) -e) len"*- ! #e)5%&e * PET0

In *-e M*%n !) Re&n#%de)a*%n !%led n 7> A()%l 7BB: and %n *-e %n#*an* 2*%n, T%)aIna
()a,# !) *-%# C+)* * ")an* -e) #e(a)a*%n and *-e) )e*%)e2en* =ene!%*#, #-+ld 1e +(-ld *-e le"al%*, !
-e) d%#2%##al0 S-e an&-)# -e) &la%2 n *-e !a&* *-a* #-e -ad alle"edl, =een %n *-e e2(l, ! PET !)
*1en*,A#%< $74' ,ea)# and *-a* *-e C+)* 2+#* "%5e d+e &n#%de)a*%n * *-e len"*- ! -e) #e)5%&e * *-e
&2(an,0
E/?F
H1e5e), %n -e) Re(l, * *-e C22en*LO((#%*%n * *-e %n#*an* 2*%n !%led =, PET,
T%)aIna )e*)a&*ed *-e a=5e alle"a*%n and #*a*ed *-a* *-e &la%2 ! *1en*,A#%< $74' ,ea)# ! e2(l,2en*
1%*- PET 1a# an e))) &22%**ed *-)+"- %nad5e)*en&e0 S-e *-en a5e))ed *-a* *-e len"*- ! -e)
e2(l,2en* 1%*- PET #-+ld %ndeed =e &+n*ed !)2 J+l, />>>, 1-%&- +( * *-e ()e#en* *%2e 1%ll )e#+l*
%n a (e)%d ! e%"-* $:' ,ea)#, 2)e ) le##0

We !%nd *-a* *-e a=5e #*a*e2en* %# #*%ll %na&&+)a*e0 A# *-%# C+)* )+led %n +) De&%#%n da*ed /3
Ma)&- 7BB:, T%)aIna 1a# 5al%dl, *e)2%na*ed !)2 -e) e2(l,2en* n 77 A()%l 7BB70 T-e)e!)e,
&+n*%n" !)2 *-e *%2e 1-en T%)aIna 1a# e2(l,ed =, PET n /> J+l, />>> +( * *-e *%2e 1-en #-e
1a# d%#2%##ed, #-e -ad nl, )ende)ed a l%**le 2)e *-an +7! (&) -0a4* and n.n0 ($) /!n+5* ! #e)5%&e *
PET0

F%nall,, *-e &a#e# &%*ed =, T%)aIna -a)dl, #+(()* -e) &a+#e0

In Soco v. Mercantile orporation of #avao
E/:F
and 'irestone Tire and &u%%er ompany of the
!hilippines v. "ariosa,
E/>F
#e(a)a*%n (a, 1a# ")an*ed * *-e d%#2%##ed e2(l,ee#, a# *-e, 1e)e 2e)e )an@A
andA!%le e2(l,ee# 1- d%d n* -a5e an, ()e5%+# de)"a*), )e&)d 1%*- *-e%) &2(an%e# and %n
eC+%*a=le )e"a)d !) *-e%) ln" ,ea)# ! #e)5%&e #(ann%n" 2)e *-an *en $/B' ,ea)#0

In 'arrol v. ourt of (ppeals,
E7BF
#e(a)a*%n (a, 1a# a1a)ded =e&a+#e *-e (enal*, ! d%#2%##al
1a# -eld * =e -a)#- and d%#()()*%na*e * *-e !!en#e &22%**ed and *-e d%#2%##ed e2(l,ee -ad =een
a* *-e #e)5%&e ! *-e &2(an, !) *1en*, !+) $73' ,ea)#0

In $egros $avigation o. )nc. v. $ational "a%or &elations ommission,
E7/F
#e(a)a*%n (a, 1a#
a1a)ded * *-e e2(l,ee d%#2%##ed, a# %* 1a# *-e e2(l,e) %*#el! *-a* ()a,ed !) *-e a1a)d ! *-e #a2e, %n
l%e+ ! *-e e2(l,eeK# )e%n#*a*e2en*0

La#*l,, %n !hilippine ommercial )nternational Bank v. (%ad,
[22]
#e(a)a*%n (a, 1a# )de)ed
")an*ed * a d%#2%##ed 2ana"e)%al e2(l,ee =e&a+#e *-e)e 1a# an e<()e## !%nd%n" *-a* *-e 5%la*%n ! *-e
=an@ (l%&%e# 1a# n* (e)(e*)a*ed !) *-e e2(l,eeK# #el!A%n*e)e#*, n) d%d *-e e2(l,ee e<-%=%* an, la&@
! 2)al de()a5%*,0 T-e e2(l,ee -ad al# =een %n *-e #e)5%&e ! *-e &2(an, !) *1en*,A!%5e $7;' ,ea)#0

O=5%+#l,, T%)aInaK# )el%an&e +(n *-e a=5eA&%*ed &a#e# %# 2%#lead%n", a# *-e &%)&+2#*an&e#
*-e)e%n a)e 2a)@edl, d%!!e)en* !)2 *-#e %n *-e &a#e a* =a)0

In #+2, 1e -ld *-a* *-e a1a)d ! #e(a)a*%n (a, ) an, *-e) @%nd ! !%nan&%al a##%#*an&e *
T%)aIna, +nde) *-e "+%#e ! &2(a##%na*e D+#*%&e, %# n* 1a))an*ed %n *-%# &a#e0 T -ld *-e)1%#e
1+ld nl, &a+#e a d%#*+)=an&e ! *-e #+nd D+)%#()+den&e n *-e 2a**e) and a (e)5e)#%n ! *-e n=le
d%&*a*e# ! #&%al D+#*%&e0

W-%le *-e C+)* &22%#e)a*e# 1%*- *-e (l%"-* ! T%)aIna, 1- -a# )e&en*l, 2an%!e#*ed
E79F
*-a*
#-e -a# #%n&e =een #+!!e)%n" !)2 -e) () -eal*- &nd%*%n, *-e C+)* &ann* ")an* -e) (lea !) *-e a1a)d
! !%nan&%al =ene!%*# =a#ed #lel, n *-%# +n!)*+na*e &%)&+2#*an&e0 F) all %*# &n&eded 2e)%*, eC+%*, %#
a5a%la=le nl, %n *-e a=#en&e ! la1 and n* a# %*# )e(la&e2en*0 EC+%*, a# an e<&e(*%nal e<*en+a*%n"
&%)&+2#*an&e de# n* !a5), n) 2a, %* =e +#ed * )e1a)d, *-e %ndlen*
E73F
) *-e 1)n"de), !) *-a*
2a**e)0 T-%# C+)* 1%ll n* all1 a (a)*,, %n *-e "+%#e ! eC+%*,, * =ene!%* !)2 %*# 1n !a+l*0
E7;F


WHERE'ORE, *-e M*%n !) Lea5e * F%le EaF Se&nd M*%n !) Re&n#%de)a*%n %#
-e)e=, DENIED !) la&@ ! 2e)%* and *-e Se&nd M*%n !) Re&n#%de)a*%n %n&)()a*ed *-e)e%n
%# NOTED WITHOUT ACTION %n 5%e1 ! *-e den%al ! *-e !)2e)0

SO ORDERED.
FIRST DIVISION
[G.R. No. 110017. )*+,*r- ., 1997]
RO$OL(O (#ENTES, RAINERIO $#RON, )#LIET /ISTAL, ELENA $ELLOMES, LEO$EGARIO
BAL"INON, ROGELIO MALINAO, LIL0 BASANEZ, MALIZA ELLO, /ILMA NO1#ERA,
)ESSICA CASTILLO, ROGELIO TABLA$ILLO, REMEL$A /ISCA0A, MELANIA /ISCA0A,
CELIA L#BRICO, E$IT" LLAC#NA, ELI$IO (ERRER, NORBERTO MIRAN$A,
(ERNAN$O MIRAN$A, COR$IO $#MA0, LEONAR$O $ELA /EGA, ISI$RO ALI$O,
A1#INO MACABE"A, LEOOL$O ABAA, A#LINO ASIS, )R., RE0NAL$O BLANCO,
MA$IL0N (ABON, MARCIANA OSO%, BEBIANO OSO%, (RANCISCO SEM#LTA, MARCIA
LLAMES, RINCIE $ANIEL, MARIA BA0A, NENITA RASONABL0, SORIANO
ENALOSA, )OSE ENALOSA, RO$OL(O /ILLAR, REMEGIAS $EMINGO0, TEO$ORO
T#GOGON, $IONISIO AOLINARIO, E$0ING $E LA CR#Z, RO$OL(O B#TA#AN,
CRISIN (ABON, ARCA$IO (ABON, NENITA SAR$INOLA, ALE2 LICA0AN, MARIO $AL,
BA$ON E$#AR$O, (ELISA /ILLAREL, EMIL0 GARAN, ROGELIO GARAN, RO$OL(O
COLITE, RO$OL(O MENIANO, ROMERO TERR0, ZOILO /ALLE)OS, /IRGINIA
BAN$ERA, BLAN$INA L#NA, (LA2IANA CARLON, CRESENCIO CARLON, NOTARTE
LEONAR$A, E(REN CANTERE, RO'ENA CAG#MA0, AL(ONSO ARA)ES, /IOLETA
MONTECLAR, NESTOR ALLA$O, )R., AOLONIO C#LATAS, LANNIE CAARAS,
ANGELICO N#NEZ, )R., NICOLAS CANAL, "ERMOGENA TAGLOCO, ALE)O
BA#MBA$, CARLITO $E LA ENA, AMANCIO ABO0LO, )ERR0 ARALES, L0$IA
ALLA$O, AGAITO O$AL, MAGNO BARIOS, (LOREN$O MARIANO, SOLATORIO
BONI(ACIO, RENE $EMINGO0, (ELIMON A$ORNO, /IRGILLO INOCENCIO, R#EL
INOCENCIO, A/ELINO L#NA, ALLAN MARCELLANA, (ELI2 SANC"EZ, A/ELINO AN$I,
/ILLA SORIO, NOEL LAS ENAS, (RANCISCO GAR$O, ROGELIO C#LLABA, GEORGE
RAGAR, CARMELITO CABRIA$AS, ANANIAS MELLORIA, AL(ONSO ALLA$O, MARLINO
MARTINEZ, LINO MARTINEZ, ERNESTO OLARAN, )O"NN0 )OSA0AN, ANECITO
SOBIONO, MARGARITO $#MALAGAN, (RANCISCO CABALES, (ELI2 ROCERO,
ABLITO $AAR, (RANCISCA CABAL"IN, (ORT#NATA BA#MBA$, CARMEN RA$A0,
NICOLAS TAMON, RE0NAL$O CANTORIA, ELMER NAONE, ANTONIO /ALLAR,
BERNA$IT" TOLOZA, EMETERIA (ERRER, CLANICA CABALES, CLA#$IO O)#0LAN,
ERLIN$A BLANCO, ROSITA $#RON, (RANCISCA A$LA'ON, CAR$INAL MAGLISANG,
)O/EN ASIS, )OSE (LORES, ALICIA (LORES, )#LIETO A$ORNO, LORENZO CANINES,
ISAAC CELLASA0, AN$RES IN$IABLE, ARSENIO $#RON, NARCISA MALASINA,
RO1#E S#BAAN, GRACE $#RON, )AIME BALMORIA, E$RO ECASALES,
RIMITORAGAS *+3 GRACE GOMA, petitioners, vs. NATIONAL LABOR RELATIONS
COMMISSION, 5T" $I/ISION, CAGA0AN $E ORO CIT0, AG#SAN LANTATION INC.,
AN$!OR C"ANG C"EE %ONG, respondents.
$ E C I S I O N
BELLOSILLO, J.&
The State is bound under the Constitution to afford full protection to labor and )hen conflicting
interests of labor and capital are to be )eighed on the scales of social <ustice the hea'ier influence
of the latter should be counterbalanced )ith the s(mpath( and compassion the la) accords the less
pri'ileged )orkingman* This is onl( fair if the )orker is to be gi'en the opportunit( and the right to
assert and defend his cause not as a subordinate but as part of management )ith )hich he can
negotiate on e'en plane* Thus labor is not a mere emplo(ee of capital but its acti'e and e:ual
partner*
3$4
,etitioners# numbering se'ent(/fi'e 7@;8 in all# seek to set aside the decision of respondent
National Labor Relations Commission dated !@ No'ember $%%! re'ersing that of the Labor rbiter
)hich granted their claims# for ha'ing been rendered )ith gra'e abuse of discretion amounting to
lack or eEcess of <urisdiction*
,etitioners )ere regular emplo(ees of pri'ate respondent gusan ,lantations# Inc*# )hich )as
engaged in the operation of a palm tree plantation in Trento# gusan del Sur# since September $%"!*
Claiming that it )as suffering business losses )hich resulted in the decision of the head office in
Singapore to undertake retrenchment measures# pri'ate respondent sent notices of termination to
petitioners and the Department of Labor and 6mplo(ment 7DOL68*
On 9$ October $%%= petitioners filed )ith the DOL6 office in Caga(an de Oro Cit( a complaint
for illegal dismissal )ith pra(er for reinstatement# back)ages and damages against pri'ate
respondent gusan ,lantation# Inc*# andGor Chang Chee Hong* In their ans)er respondents denied
the allegations of petitioners and contended that upon receipt of instructions from the head office in
Singapore to implement retrenchment# pri'ate respondents conducted grie'ance conferences or
meetings )ith petitioners2 representati'e labor organi.ation# the ssociation of Trade Cnions through
its national president Borge legarbes# its local president and its board of directors* ,ri'ate
respondents also contended that the 9=/da( notices of termination )ere dul( sent to petitioners*
fter both parties submitted their position papers articulating their respecti'e theses# the Labor
rbiter rendered a decision on !@ -a( $%%! in fa'or of petitioners ordering pri'ate respondents to
pa( the former separation pa( e:ui'alent to fifteen 7$;8 da(s pa( for e'er( (ear of ser'ice plus
salar( differentials and attorne(2s fees*
On appeal b( respondents to the National Labor Relations Commission# the decision of the
Labor rbiter )as re'ersed on !@ No'ember $%%!*
,etitioners ele'ated their plight to this Court on a special ci'il action for certiorari under Rule ?;
of the Rules of Court alleging that respondent NLRC gra'el( abused its discretion amounting to lack
or eEcess of <urisdiction in ruling that petitioners )ere legall( terminated from their emplo(ment*
The( argued that their dismissal or retrenchment did not compl( )ith the re:uirements of rt* !"9 of
the Labor Code*
+e sustain petitioners* The ruling of the Labor rbiter that there )as no 'alid retrenchment is
correct* rticle !"9 of the Labor Code clearl( states5
A)* 7:90 Cl#+)e ! e#*a=l%#-2en* and )ed+&*%n ! (e)#nnel0 O T-e e2(l,e) 2a, al# *e)2%na*e *-e
e2(l,2en* ! an, e2(l,ee d+e * *-e %n#*alla*%n ! la=)A#a5%n" de5%&e#, )ed+ndan&,, )e*)en&-2en* *
()e5en* l##e# ) *-e &l#%n" ) &e##a*%n ! (e)a*%n ! *-e e#*a=l%#-2en* ) +nde)*a@%n" +nle## *-e &l#%n" %#
!) *-e (+)(#e ! &%)&+25en*%n" *-e ()5%#%n# ! *-e *%*le, =, #e)5%n" a 1)%**en n*%&e n *-e 1)@e)# and *-e
M%n%#*), ! La=) and E2(l,2en* a* lea#* ne $/' 2n*- =e!)e *-e %n*ended da*e *-e)e!0 In &a#e !
*e)2%na*%n d+e * *-e %n#*alla*%n ! la=)A#a5%n" de5%&e# ) )ed+ndan&,, *-e 1)@e) a!!e&*ed *-e)e=, #-all =e
en*%*led * a #e(a)a*%n (a, eC+%5alen* * a* lea#* -%# ne $/' 2n*- (a, ) * a* lea#* ne $/' 2n*- (a, !)
e5e), ,ea) ! #e)5%&e, 1-%&-e5e) %# -%"-e)0 In &a#e ! )e*)en&-2en* * ()e5en* l##e# and %n &a#e ! &l#+)e )
&e##a*%n ! (e)a*%n# ! e#*a=l%#-2en* ) +nde)*a@%n" n* d+e * #e)%+# =+#%ne## l##e# ) !%nan&%al )e5e)#e#,
*-e #e(a)a*%n (a, #-all =e eC+%5alen* * ne $/' 2n*- (a, ) a* lea#* neA-al! $/L7' 2n*- (a, !) e5e), ,ea)
! #e)5%&e, 1-%&-e5e) %# -%"-e)0 A !)a&*%n ! a* lea#* #%< $4' 2n*-# #-all =e &n#%de)ed ne $/' 1-le ,ea)0
Cnder rt* !"9 therefore retrenchment ma( be 'alid onl( )hen the follo)ing re:uisites are met5
7a8 it is to pre'ent lossesF 7b8 )ritten notices )ere ser'ed on the )orkers and the Department of
Labor and 6mplo(ment 7DOL68 at least one 7$8 month before the effecti'e date of retrenchmentF
and# 7c8 separation pa( is paid to the affected )orkers*
The closure of a business establishment is a ground for the termination of the ser'ices of an
emplo(ee unless the closing is for the purpose of circum'enting pertinent pro'isions of the Labor
Code* 1ut )hile business re'erses can be a <ust cause for terminating emplo(ees# the( must be
sufficientl( pro'ed b( the emplo(er*
3!4
In the case before us# pri'ate respondents merel( alleged in their ans)er and position paper
that after their officials from the head office had 'isited the plantation respondent manager Chang
Chee Hong recei'ed a letter from the head office directing him to proceed immediatel( )ith the
termination of redundant )orkers and staff# and change the operations to contract s(stem against
direct emplo(ment* The( also alleged that after fi'e 7;8 (ears of operations# the return of in'estments
of respondent compan( )as meagerF that the coup attempt in ugust $%"@ as )ell as that of
December $%"% aggra'ated the floundering financial state of respondent compan(F that the financial
losses due to lack of capital funding resulted in the non/pa(ment of long/o'erdue accountsF that the
untimel( cut in the suppl( of fertili.ers and manuring materials and e:uipment parts dela(ed the
pa(ment of salaries and the implementation of )eekl( <ob rotations b( the )orkers* 6Ecept for these
allegations# pri'ate respondents did not present an( other documentar( proof of their alleged losses
)hich could ha'e been easil( pro'en in the financial statements )hich unfortunatel( )ere not
sho)n*
There is no :uestion that an emplo(er ma( reduce its )ork force to pre'ent losses* 0o)e'er#
these losses must be serious# actual and real*
394
Other)ise# this ground for termination of emplo(ment
)ould be susceptible to abuse b( scheming emplo(ers )ho might be merel( feigning losses in their
business 'entures in order to ease out emplo(ees*
3&4
Indeed# pri'ate respondents failed to pro'e their claim of business losses* +hat the( submitted
to the Labor rbiter )ere mere self/ser'ing documents and allegations* ,ri'ate respondents ne'er
adduced e'idence )hich )ould sho) clearl( the eEtent of losses the( suffered as a result of lack of
capital funding# )hich failure is fatal to their cause*
s regards the re:uirement of notices of termination to the emplo(ees# it is undisputed that the
Notice of Retrenchment )as submitted to the Department of Labor and 6mplo(ment on $!
September $%%=*
3;4
The findings of both the Labor rbiter and NLRC sho) that petitioners )ere
terminated on the follo)ing dates in $%%= after the( recei'ed their notices of termination# to )it5
Name of 6mplo(ee Date of Notice of Termination 6ffecti'it( of Termination
$*No:uera# Vilma !! Sept* !; Sept*
!*Dumalagan# -argarito !! Sept* 9= Sept*
9*Osok# -arciano != Sept* 9= Sept*
&*baa# Leopoldo =$ Sept* 9= Sept*
;*bo(lo# mancio =$ Sept* 9= Sept*
?*llado# Nestor Br* =$ Sept* 9= Sept*
@*1andera# Verginia =$ Sept* 9= Sept*
"*1asane.# Lil( =$ Sept* 9= Sept*
%*1aumbad# le<o =$ Sept* 9= Sept*
$=*1lanco# -(rna =$ Sept* 9= Sept*
$$*1lanco# Re(naldo =$ Sept* 9= Sept*
$!*Canal# -arieto =$ Sept* 9= Sept*
$9*Fabon# -adil(n =$ Sept* 9= Sept*
$&*Ferrer# 6lpidio =$ Sept* 9= Sept*
$;*-eniano# Rodolfo =$ Sept* 9= Sept*
$?*Nune.# ngelico =$ Sept* 9= Sept*
$@*Osok# 1ebiano =$ Sept* 9= Sept*
$"*,enaloga# Bose Br* =$ Sept* 9= Sept*
$%*Taglocop# 0ermogena =$ Sept* 9= Sept*
!=*llado# L(dio !! ug* 9= Sept*
!$*1a(a# -aria !! ug* 9= Sept*
!!*Carlon# Fla'iana !! ug* 9= Sept*
!9*Carlon# Cresencio !! ug* 9= Sept*
!&*Culaba# Rogelio !! ug* 9= Sept*
!;*Cabriades# Carmelito !! ug* 9= Sept*
!?*Dellomes# 6lma !! ug* 9= Sept*
!@*Fabon# rcadio !! ug* 9= Sept*
!"*Dordo# Francisco !! ug* 9= Sept*
!%*Inocencio# Virgilio !! ug* 9= Sept*
9=*Inocencio# Ruel !! ug* 9= Sept*
9$*Luna# 1landina !! ug* 9= Sept*
9!*Luna# 'elino !! ug* 9= Sept*
99*Lubrico# Celia !! ug* 9= Sept*
9&*-onteclar# Violeta !! ug* !; Sept*
9;*-acabecha# :uino !! ug* !; Sept*
9?*-elloria# nanian !! ug* !; Sept*
9@*-alinao# Rogelio !! ug* !; Sept*
9"*Leonarda# Notarte !! ug* !; Sept*
9%*,are<as# Berr( !! ug* !; Sept*
&=*,are<as# lfonso !! ug* !; Sept*
&$*Sardinola# lfonso !! ug* !; Sept*
&!*Solaterio# 1onifacio !! ug* !; Sept*
Culled from the abo'e data# the termination of petitioners could not ha'e 'alidl( taken effect
either on !; or 9= September $%%=* The one/month notice of retrenchment filed )ith the DOL6 and
ser'ed on the )orkers before the intended date thereof is mandator(* ,ri'ate respondents failed to
compl( )ith this re:uisite* The earliest possible date of termination should be $! October $%%= or
one 7$8 month after notice )as sent to DOL6 unless the notice of termination )as sent to the
)orkers later than the notice to DOL6 on $! September $%%=# in )hich case# the date of termination
should be at least one 7$8 month from the date of notice to the )orkers* ,etitioners )ere terminated
less than a month after notice )as sent to DOL6 and to each of the )orkers*
+e agree )ith the conclusion of the Labor rbiter that the termination of the ser'ices of
petitioners )as illegal as there )as no 'alid retrenchment* Respondent NLRC committed gra'e
abuse of discretion in re'ersing the findings of the Labor rbiter and ruling that there )as substantial
compliance )ith the la)* This Court firml( holds that measures should be strictl( implemented to
ensure that such constitutional mandate on protection to labor is not rendered meaningless b( an
erroneous interpretation of applicable la)s*
+e uphold the monetar( a)ard of the Labor rbiter for5 7a8 the balance of the separation pa(
benefits of petitioners e:ui'alent to fifteen 7$;8 da(s for e'er( (ear of ser'ice after finding that
reinstatement is no longer feasible under the circumstances# and 7b8 the salar( differentials for
complainants )ho )ere relie'ed during the pendenc( of the case before the Labor rbiter and full
back )ages for the rest of the complainants* This is in accord )ith rt* !@% of the Labor Code as
amended b( R** ?@$; under )hich petitioners )ho )ere un<ustl( dismissed from )ork shall be
entitled to full back )ages inclusi'e of allo)ances and other benefits or their monetar( e:ui'alent
computed from the time their compensation )as )ithheld up to the date of this decision*
'"ERE(ORE# the ,etition is DRNT6D* The decision of the Labor rbiter of !@ -arch $%%!
granting petitioners their claim for the balance of their separation pa( benefits e:ui'alent to fifteen
7$;8 da(s for e'er( (ear of ser'ice# and salar( differentials for complainants )ho )ere relie'ed
during the pendenc( of the case before the Labor rbiter# and full back )ages for the rest of the
complainants is R6INSTT6D* Conse:uentl(# the decision of the National Labor Relations
Commission dated !@ September $%%! is R6V6RS6D and S6T SID6*
SO OR$ERE$.
Padilla, (Cairman!, Vitug, "a#unan, and Hermosisima, Jr., JJ., concur.
SECOND DIVISION
2.R. N!. "<#$=%. '064(a4- "", "$$$3
PHILIPPINE LON DISTANCE TELEPHONE COMPAN>, petitioner, vs. NATIONAL LABOR
RELATIONS COMMISSION, AND ENRI?UE ABRIEL, respondents.
D E C I S I O N
?UISUMBIN, J.@
T-%# (e*%*%n !) certiorari +nde) R+le 4; ! *-e R+le# ! C+)* a##a%l# *-e Re#l+*%n
E/F
da*ed J+ne 7>, />>7 ! *-e Na*%nal
La=) Rela*%n# C22%##%n )de)%n" (e*%*%ne) * )e%n#*a*e ()%5a*e )e#(nden*, En)%C+e Ga=)%el, M1%*- !+ll =a&@1a"e#, =ene!%*#,
and ()()*%na*e ()%5%le"e#N6 a# 1ell a# *-e O)de)
E7F
da*ed A+"+#* />, />>7, den,%n" *-e 2*%n !) )e&n#%de)a*%n0 T-e
&-allen"ed )+l%n" )e5e)#ed *-e de&%#%n
E9F
! *-e La=) A)=%*e) da*ed Ma, 9, />>/, 1-%&- d%#2%##ed *-e &2(la%n* !) la&@ !
2e)%*0
T-e !a&*# ! *-e &a#e a)e a# !ll1#.
P)%5a*e )e#(nden*, En)%C+e Ga=)%el, 1a# e2(l,ed =, (e*%*%ne) P-%l%((%ne Ln" D%#*an&e Tele(-ne C2(an, $PLDT',
a# a !)e2an %n Dan#alan A)ea 7, MA90 A# a #+(e)5%#), -%# *e))%*)%al )e#(n#%=%l%*, &5e)ed Ca2( C)a2eK# F%)#* * 7B*-
A5en+e# and ()*%n# ! P)De&* 3, all %n Q+eIn C%*,0
On Se(*e2=e) ;, />:>, En)%C+e Ga=)%el )de)ed Medel Me)&ad, an %n#*alle), * #e*A+( *1 *ele(-ne +n%*# a* Un%* R,
Fa&%l%*%e# Cen*e) B+%ld%n", l&a*ed a* S-a1 B+le5a)d, Mandal+,n", Me*) Man%la0 T-e *ele(-ne n+2=e)# ! *-e +n%*# 1e)e
?:A::A3/ and ?>A>:A34, %n !a5) ! a &e)*a%n M)0 Ma)ln AC+%n0
On O&*=e) /4, />:>, ()%5a*e )e#(nden*, a"a%n )de)ed J+an&- J&#n, an*-e) %n#*alle), * #e*A+( add%*%nal +n%*# 1%*-
*ele(-ne n+2=e)# ?:A3BA?B and ?>A3BA>: !) *-e #a2e #+=#&)%=e)0
La*e), =*- %n#*alla*%n a&*%5%*%e# 1e)e %n5e#*%"a*ed =e&a+#e $a' *-e Fa&%l%*%e# Cen*e) B+%ld%n" -ad n en*)an&e &a=le
!a&%l%*%e# ) &nd+%* 1%)e# !) *ele(-ne &nne&*%n, $=' Mandal+,n" 1a# n* 1%*-%n )e#(nden*K# a)ea ! D+)%#d%&*%n, and $&'
%n#*alle)# Me)&ad and J&#n 1e)e n* +nde) -%# d%)e&* #+(e)5%#%n0
In *-e ad2%n%#*)a*%5e %n5e#*%"a*%n &nd+&*ed =, PLDT, 1-e)e a &n!)n*a*%n =e*1een ()%5a*e )e#(nden* and %n#*alle)#
Me)&ad and J&#n *@ (la&e, ()%5a*e )e#(nden* *)%ed * e<(la%n -%# #%de * &lea) &e)*a%n %##+e# *a@en a"a%n#* -%2, add%n" *-a*
-%# %n*en*%n %n )de)%n" *-e %n#*alla*%n ! *-e *ele(-ne +n%*# 1a# * ()5%de &+#*2e) #a*%#!a&*%n0 H1e5e), n Fe=)+a), /,
/>>B, *-e (e*%*%ne) #*%ll )eC+%)ed *-e ()%5a*e )e#(nden* * #+=2%* a 1)%**en )e()* ! *-e %n&%den*0 He #+=2%**ed -%# e<(lana*%n
and, al*-+"- ad2%**%n" *-e )e#(n#%=%l%*, ! -%# a&*%n#, )e%*e)a*ed -%# )a*%nal%Ia*%n *-a* -%# #le %n*en*%n 1a# * #e)5e *-e
&+#*2e), *-e)e=, ea)n%n" "d1%ll !) *-e &2(an,0
On Se(*e2=e) 9, />>B, ()%5a*e )e#(nden* 1a# d%#2%##ed !)2 e2(l,2en* n *-e ")+nd *-a* -e &22%**ed ")a5e
2%#&nd+&*, =)ea&- ! *)+#*, and 5%la*%n# ! &2(an, )+le# and )e"+la*%n# 1-en -e )de)ed *-e +n1a))an*ed %n#*alla*%n
a&*%5%*%e#0
On Se(*e2=e) 4, />>B, ()%5a*e )e#(nden*, a# &2(la%nan* =el1 !%led an %lle"al d%#2%##al &a#e
E3F
a"a%n#* -e)e%n (e*%*%ne),
PLDT0
On Ma, 9, />>/, *-e La=) A)=%*e) )ende)ed -%# de&%#%n !%nd%n" *-e d%#2%##al D+#*%!%ed, vi*.+
MT-e &2(la%nan*K# a&*%n 1e)e %))e"+la) =e&a+#e *-e)e 1a# n en*)an&e &a=le !a&%l%*%e# ) &nd+%* 1%)e# %n *-e
#a%d =+%ld%n" d+)%n" *-#e *%2e# !) *ele(-ne &nne&*%n#0 Nne*-ele##, * a&-%e5e -%# (+)(#e, *-e
&2(la%nan* -%2#el! #e&+)ed OP n+2=e)# !) *-e *ele(-ne# and (e)!)2ed &all =a&@ a* *-e (anel =<
)e()e#en*%n" -%2#el! * *-e D%#(a*&- Cle)@ a# *-e #+=#&)%=e)0 He *-en %n#*)+&*ed Medel and J#&n $#%&' *
*+)n5e) *-e *ele(-ne %n#*)+2en*# * -%2 and 2ade *-e2 * en*e) %n *-e Cn#+2(*%n and W)@ Re()* *-a*
*-e *ele(-ne +n%*# -a5e =een a&*+all, %n#*alled0 S+&- ()dd%n"# !) 2%#)e()e#en*a*%n -a# (la&ed MedelK# and
J#&nK# $#%&' e2(l,2en* %n De(a)d, ! *e)2%na*%n0
T-e &2(la%nan*K# %n!)a&*%n# 1e)e a"")a5a*ed =, *-e !a&* *-a* -%# %n*e)5en*%n %n *-e 1)@# ! *-e *1 $7'
%n#*alle)# 1e)e 2ade %n Mandal+,n", 1-%&- a)ea, %# n* 1%*-%n *-e #(-e)e ! -%# a##%"n2en* and a+*-)%*,0 < <
<
T-e de!en#e -e (+* +(, *-a* -%# a&*+a*%n# d%d n* %n5l5e an, 2ne*a), &n#%de)a*%n# %# +na5a%l%n"0 T-e
%n!)a&*%n# -e &22%**ed 2e)%*ed d%#&%(l%na), a&*%n0 Me)e 5%la*%n ! *-e &2(an, )+le# need n* =e
C+al%!%ed 1%*- *-e %n5l5e2en* ! 2ne, &n#%de)a*%n#0 E<%#*%n" &2(an, )e"+la*%n# 1e)e de!%ed, -%#
a+*-)%*, 1a# e<&eeded 1-%&- e5en (+* * )%#@ *-e e2(l,2en* and l%5el%-d ! *-e *1 $7' 1)@e)# 1-2 -e
!)&ed * (e)!)2 &-)e# &n*)a), * &2(an, )+le# and a"a%n#* *-e%) 1%ll0 T-e *enden&, * &22%* %n!)a&*%n
a"a%n#* *-e &2(an, -a# =een de2n#*)a*ed n* nl, n&e, =+* *1%&e, %n !a5) ! ne #+=#&)%=e) -a#, a&*+all,,
n d+=* 2ade -%2 +n1)*-, * #*a, !+)*-e) n -%# D=0
< < < < < < < < <
WHEREFORE, *-e )e#(nden* %# -e)e=, )de)ed * (a, *-e &2(la%nan* -%# ()()*%na*e /9*- 2n*- (a, !)
*-e ,ea) />:>0 T-e )e#* ! *-e &la%2#, %n&l+d%n" *-e &2(la%n* !) %lle"al d%#2%##al, a)e d%#2%##ed !) la&@ !
2e)%*0
SO ORDERED0N
E;F
P)%5a*e )e#(nden* a((ealed * *-e (+=l%& )e#(nden*, Na*%nal La=) Rela*%n# C22%##%n0 T-e NLRC )e5e)#ed *-e
de&%#%n ! *-e la=) a)=%*e), to wit.+
MS%2(l, (+*, 1-a* 1e -a5e -e)e %# a #%*+a*%n 1-e)e a &n&e)ned #+(e)5%#) 1-#e -el( 1a# #+"-* =, an
%2(a*%en* #+=#&)%=e), &n#&%+# ! *-e #ee2%n"l, %))e2ed%a=le -and%&a( %n )e#(nden*K# &2%n" * (a) 1%*- *-e
&n#+2%n" (+=l%&K# de2and# (a)*%&+la)l, %n *-e !%eld ! *ele(-ne %n#*alla*%n, a&&ede# * *-e )eC+e#* !) -el(
and *-+# &n*)%=+*ed 1-a*e5e) !a&%l%*a*%n -el( -e &+ld, a!*e) all a# 1-a* &2(la%nan* a!)eA#*)e##ed $an
e<(lana*%n 5e)l@ed =, *-e La=) A)=%*e)', *-e #+=De&* *ele(-ne# &+ld nl, =e Q%n#*alled a!*e) *-e
d&+2en*# ! a(()5al 1e)e %##+ed =, PLDT,K 2e&-an%&# !) 1-%&- a(()5al 1-%le &e)*a%nl, =e,nd -%#
2ean# and &a(a&%*,, nne*-ele## #e)5e a# e!!e&*%5e &-e&@ a"a%n#* )eal, and n* 2e)el, %2a"%na),, %))e"+la)%*%e#
PLDT (e)#nnel 2a, &n&e%5e0
All *ld, )e#(nden*K# &-a)"e &ann* e5en C+al%!, a# 2%#&nd+&* n *-e (a)* ! &2(la%nan*0 T-a* *-e
)e#(nden* +#ed a# ")+nd !) *e)2%na*%n" &2(la%nan*K# #e)5%&e Q#e)%+# 2%#&nd+&*K $A)*0 7:7 EaF ! La=)
Cde', a 2a**e) !a) !)2 1-a* 1e #ee n )e&)d, 1e &ann* =+* )e5e)#e *-e de&%#%n ! *-e La=) A)=%*e) n *-%#
(%n*0
A&&)d%n"l,, *-e de&%#%n ! *-e La=) A)=%*e) %n#!a) nl, a# &n&e)n# *-e %##+e ! d%#2%##al %# -e)e=, #e*
a#%de0 T-e )e#(nden* %# *-+# d%)e&*ed * )e%n#*a*e &2(la%nan* * -%# (#%*%n -eld a# a* *-e *%2e ! *-e
&2(la%ned d%#2%##al, 1%*- !+ll =a&@1a"e#, =ene!%*# and ()()*%na*e ()%5%le"e#0
SO ORDEREDN
E4F
Pe*%*%ne)K# 2*%n !) )e&n#%de)a*%n 1a# den%ed =, *-e NLRC %n an O)de) da*ed A+"+#* />, />>70 T-+#, PLDT ele5a*ed
*-e &a#e * *-%# C+)*, )a%#%n" ne =a#%& C+e#*%n.
WHETHER OR NOT GABRIEL IS GUILTY OF SERIOUS MISCONDUCT ANDLOR BREACH OF
TRUST ANENT THE IRREGULAR INSTALLATION OF THE AFOREANUMBERED TELEPHONES0
H1e5e), 2)e a(()()%a*el, (-)a#ed !) +) &n#%de)a*%n =, 5%)*+e ! R+le 4;, *-e #le %##+e * =e )e#l5ed -e)e %#
1-e*-e) *-e (+=l%& )e#(nden*, NLRC, a=+#ed %*# d%#&)e*%n a2+n*%n" * la&@ ) e<&e## ! D+)%#d%&*%n %n )e5e)#%n" *-e de&%#%n
! *-e La=) A)=%*e), and )de)%n" *-e )e%n#*a*e2en* ! ()%5a*e )e#(nden* 1%*- !+ll =a&@1a"e# and *-e) =ene!%*#0
Pe*%*%ne) an&-)# *-e 5al%d%*, ! ()%5a*e )e#(nden*K# d%#2%##al n *1 ")+nd#. $/' -%# a&*# &n#*%*+*ed =)ea&- ! *)+#*
1-en -e %n*e)5ened %n *-e an2al+# %n#*alla*%n ! !+) *ele(-ne l%ne#, and $7' -e 5%la*ed *-e #*anda)d (e)a*%n" ()&ed+)e#
$SOP' n *ele(-ne %n#*alla*%n a&*%5%*%e#0
A* *-e +*#e*, %* 2+#* =e )e&alled *-a* *-e =a#%& )eC+%#%*e !) d%#2%##al n *-e ")+nd ! l## ! &n!%den&e %# *-a* *-e
e2(l,ee &n&e)ned 2+#* =e ne -ld%n" a (#%*%n ! *)+#* and &n!%den&e0
E?F
H1e5e), l## ! &n!%den&e 2+#* n* =e
%nd%#&)%2%na*el, +#ed a# a #-%eld =, *-e e2(l,e) a"a%n#* a &la%2 *-a* *-e d%#2%##al ! an e2(l,ee 1a# a)=%*)a),0
E:F
L%@e1%#e, %* 2+#* =e n*ed *-a* 1%ll!+l de!%an&e ! &2(an, )+le# 2+#* =e &-a)a&*e)%Ied =, (e)5e)#e a**%*+de *-a* 1+ld =e
&n#%de)ed a# %n%2%&al * *-e %n*e)e#* ! -%# e2(l,e)0 E5en 1-en an e2(l,ee %# !+nd * -a5e *)an#")e##ed *-e e2(l,e)K# )+le#,
%n *-e a&*+al %2(#%*%n ! (enal*%e# +(n *-e e))%n" e2(l,ee, d+e &n#%de)a*%n 2+#* #*%ll =e "%5en * -%# len"*- ! #e)5%&e and
*-e n+2=e) ! 5%la*%n# &22%**ed d+)%n" -%# e2(l,0
E>F
D%#2%##al %# *-e +l*%2a*e (enal*, *-a* &an =e 2e*ed * an e2(l,ee0
E/BF
W-e)e a (enal*, le## (+n%*%5e 1+ld #+!!%&e,
1-a*e5e) 2%##*e(# 2a, -a5e =een &22%**ed =, *-e 1)@e) +"-* n* * =e 5%#%*ed 1%*- a &n#eC+en&e # #e5e)e #+&- a#
d%#2%##al !)2 e2(l,2en*0
E//F
F), *-e Cn#*%*+*%n "+a)an*ee# *-e )%"-* ! 1)@e)# * M#e&+)%*, ! *en+)e0N
E/7F
T-e 2%#e), and
(a%n a**endan* * *-e l## ! D=# *-en &+ld =e a5%ded %! *-e)e =e a&&e(*an&e ! *-e 5%e1 *-a* +nde) &e)*a%n &%)&+2#*an&e# ! *-e
&a#e *-e 1)@e)# #-+ld n* =e de()%5ed ! *-e%) 2ean# ! l%5el%-d0
E/9F
In *-e ()e#en* &a#e, *-e)e %# n d%#(+*e *-a* *-e ()%5a*e )e#(nden* )de)ed *-e %n#*alla*%n ! *-e *ele(-ne +n%*# %n !a5) !
Ma)ln AC+%n, a *ele(-ne #+=#&)%=e)0 A# !+nd =, *-e La=) A)=%*e), ()%5a*e )e#(nden*K# )de)# 1e)e %))e"+la)0 T-e )de)# !
*ele(-ne &nne&*%n 1e)e (+)#+ed e5en %! *-e)e 1e)e n en*)an&e &a=le !a&%l%*%e# !) *ele(-ne &nne&*%n0 M)e5e),
Mandal+,n" 1a# n* 1%*-%n *-e a)ea ! ()%5a*e )e#(nden*K# D+)%#d%&*%n0 T-e %n#*alle)#, Me)&ad and J&#n, 1e)e n* +nde)
-%# d%)e&* #+(e)5%#%n0 Ye* =a#ed n -%# %n#*)+&*%n, -e #e&+)ed MOP n+2=e)#N !) *-e *ele(-ne# and (e)!)2ed M&all =a&@N a* *-e
(anel =< 1-%le 2%#)e()e#en*%n" -%2#el! * *-e d%#(a*&- &le)@ a# *-e #+=#&)%=e)0
De#(%*e *-e#e &%)&+2#*an&e#, *-e NLRC )e5e)#ed *-e La=) A)=%*e)K# )de) ! d%#2%##al %2(#ed a"a%n#* ()%5a*e )e#(nden*
En)%C+e Ga=)%el0 A&&)d%n" * *-e NLRC, %* !+nd n 1)%**en )+le ! PLDT 1-%&- ()5%de# *-a* #+&- +n1a))an*ed %n#*alla*%n !
*ele(-ne l%ne# %# #+=De&* * *-e (enal*, ! d%#2%##al0 N) 1a# *-e)e an, ()! *-a* *-e ()%5a*e )e#(nden* ()!%*ed !)2 *-e #a%d
#e**%n" +( ! *ele(-ne l%ne#0 Ne%*-e) 1a# *-e)e a #-1%n" *-a* PLDT #+!!e)ed l##e# !)2 *-e *ele(-ne #e)5%&e %n !a5) ! M)0
Ma)ln AC+%n0 F%nall,, a# &la%2ed =, *-e ()%5a*e )e#(nden* %n -%# 2e2)and+2, 1-%&- 1a# n* )e=+**ed n *-%# (%n* =, *-e
(e*%*%ne), *-e #+=De&* *ele(-ne# 1e)e %n#*alled nl, a!*e) *-e d&+2en*# ! a(()5al 1e)e %##+ed =, PLDT0 G%5en *-e#e
&%)&+2#*an&e#, a #+=#*an*%al d+=* a# * *-e 5al%d%*, ! *-e *e)2%na*%n a((ea)#, and *-e e2(l,eeK# &la%2 ! %lle"al d%#2%##al
a&&)d%n"l, "a%n# &)eden&e =e&a+#e #+&- d+=* 2+#* =e )e#l5ed %n -%# !a5)0
In MERALCO 5#0 NLRC,
E/3F
a &a#e *-a* al# %n5l5ed a #+(e)5%#) =+* %n5l5ed an %lle"al %n#*alla*%n ! (1e) l%ne, &lea)l,
()eD+d%&%al * *-e e&n2%& a&*%5%*, ! -%# e2(l,e), *-%# C+)* -a# -eld.
MT-e)e %# n C+e#*%n *-a* -e)e%n )e#(nden* S%"n %# "+%l*, ! =)ea&- ! *)+#* and 5%la*%n ! &2(an, )+le#,
*-e (enal*, !) 1-%&- )an"e# !)2 )e()%2and * d%#2%##al de(end%n" n *-e ")a5%*, ! *-e !!en#e0 H1e5e), a#
ea)l%e) #*a*ed, *-e )e#(nden* C22%##%n and *-e La=) A)=%*e) !+nd *-a* d%#2%##al #-+ld n* =e 2e*ed *
)e#(nden* S%"n &n#%de)%n" -%# *1en*, $7B' ,ea)# ! #e)5%&e %n *-e e2(l, ! (e*%*%ne), 1%*-+* ()e5%+#
de)"a*), )e&)d, %n add%*%n * *-e !a&* *-a* (e*%*%ne) &2(an, -ad a1a)ded -%2 %n *-e (a#*, *1 $7'
&22enda*%n# !) -ne#*,0 < < <
< < < < < < < < <
T-%# C+)* -a# -eld *%2e and a"a%n, %n a n+2=e) ! de&%#%n#, *-a* n*1%*-#*and%n" *-e e<%#*en&e ! a 5al%d
&a+#e !) d%#2%##al, #+&- a# =)ea&- ! *)+#* =, an e2(l,ee, ne5e)*-ele##, d%#2%##al #-+ld n* =e %2(#ed, a#
%* %# * #e5e)e a (enal*, %! *-e la**e) -a# =een e2(l,ed !) a &n#%de)a=le len"*- ! *%2e %n *-e #e)5%&e ! -%#
e2(l,e) $&%*a*%n 2%**ed'0
F+)*-e), %n &a)),%n" +* and %n*e)()e*%n" *-e La=) CdeK# ()5%#%n# and %*# %2(le2en*%n" )e"+la*%n#, *-e
1)@%n"2anK# 1el!a)e #-+ld =e *-e ()%2)d%al and (a)a2+n* &n#%de)a*%n0 T-%# @%nd ! %n*e)()e*a*%n
"%5e# 2ean%n" and #+=#*an&e * *-e l%=e)al and &2(a##%na*e #(%)%* ! *-e la1 a# ()5%ded !) %n A)*%&le 3 !
*-e Ne1 La=) Cde 1-%&- #*a*e# *-a* Mall d+=*# %n *-e %2(le2en*a*%n and %n*e)()e*a*%n ! *-e ()5%#%n# !
*-e La=) Cde %n&l+d%n" %*# %2(le2en*%n" )+le# and )e"+la*%n# #-all =e )e#l5ed %n !a5) ! la=)8 $&%*a*%n
2%**ed'0
In 5%e1 ! *-e !)e"%n", )e%n#*a*e2en* ! )e#(nden* S%"n %# ()(e) %n *-e %n#*an* &a#e, =+* 1%*-+* *-e a1a)d
! =a&@1a"e#, &n#%de)%n" *-e "d !a%*- ! *-e e2(l,e) %n d%#2%##%n" *-e )e#(nden*0N
E/;F
In *-e &a#e a* =a), 1e -a5e * &n&ede *-a* %n )de)%n" *-e )e%n#*a*e2en* ! ()%5a*e )e#(nden*, Ga=)%el, *-e (+=l%&
)e#(nden*, NLRC, %# n* en*%)el, 1%*-+* "d and D+#*%!%a=le )ea#n0 T-+# %* &+ld n* =e #a%d *-a* *-%# ()*%n ! *-e a##a%led
Re#l+*%n ! *-e NLRC %# *a%n*ed 1%*- ")a5e a=+#e ! d%#&)e*%n0
N1, #%n&e Ga=)%elK# d%#2%##al -a# =een !+nd * =e ! d+=*!+l D+#*%!%&a*%n %n la1 and (l%&,, *-e a1a)d =, *-e NLRC !
!+ll =a&@1a"e# %n -%# !a5) &+ld n* =e #a%d a# e))ne+#0 I* -a# * =e #+#*a%ned, =+* nl, !)2 *-e da*e ! *-e NLRCK#
()2+l"a*%n ! %*# Re#l+*%n n J+ne 7>, />>70
Ba&@1a"e# %n&l+d%n" *-%)*een*- 2n*- (a, a)e a !)2 ! )el%e! *-a* )e#*)e# *-e %n&2e *-a* 1a# l#* =, )ea#n ! +nla1!+l
d%#2%##al0
E/4F
N*e *-a* %n &n*)a#* * *-e MERALCO &a#e, infra, 1-e)e *-e a1a)d ! =a&@1a"e# 1a# n* ")an*ed =e&a+#e *-e
e2(l,e) 1a# %n "d !a%*- 1-en %* d%#2%##ed *-e e2(l,ee 1- )e&e%5ed P?,BBB0BB (+)()*edl, %n &n#%de)a*%n ! -%#
!a&%l%*a*%n ! *-e ele&*)%&al &nne&*%n %n !a5) ! an a((l%&an*, %n *-e &a#e a* =a) *-e %n#*alla*%n ! !+) *ele(-ne +n%*# 1a#
n* per se %lle"al =e&a+#e ! *-e ()e5%+# a(()5al =, *-e PLDT ! *-e#e +n%*# !) %n#*alla*%n0 T-e &nne&*%n# 1e)e nl,
%))e"+la) =e&a+#e *-e, 5%la*ed &e)*a%n #*anda)d (e)a*%n" ()&ed+)e# ! PLDT0 P)%5a*e )e#(nden* %n *-%# &a#e -ad !a&%l%*a*ed *-e
#e)5%&e &nne&*%n# ! *-e *ele(-ne +n%*# %))e"+la)l, =+* -e 1a# a((a)en*l, ! *-e 1)n" %2()e##%n *-a* -e 1a# &+l*%5a*%n" a
&+#*2e)K# "d1%ll0 He d%d n* )e&e%5e an, 2ne*a), ) *-e) 2a*e)%al =ene!%* a* all !) *-e !a&%l%*a*%n0 T-+#, n ne -and, *-e
&%*ed %))e"+la)%*, -e)e &+ld n* D+#*%!, *-e +l*%2a*e (enal*, ! d%#2%##al !)2 e2(l,2en*0 And, %n +) 5%e1, )e%n#*a*e2en* $1%*-
!+ll =a&@1a"e# and *-%)*een*- 2n*- (a, &2(+*ed =e"%nn%n" J+ne 7>, />>7 +n*%l a&*+al )e%n#*a*e2en*' 1+ld ()5%de #+!!%&%en*
)el%e! !) *-e l## #+!!e)ed =, -%20
On *-e *-e) -and, *-e a1a)d ! +n#(e&%!%ed *-e) =ene!%*# and ()()*%na*e ()%5%le"e# * *-e ()%5a*e )e#(nden* =, *-e
NLRC a((ea)# * +# al)ead, +n1a))an*ed0 P)%5a*e )e#(nden* %# n* en*%)el, !a+l*le##0 A# a #+(e)5%#), -e %# )eC+%)ed * a&*
D+d%&%+#l, and * e<e)&%#e -%# a+*-)%*, %n -a)2n, 1%*- &2(an, (l%&%e#0 W-en -e De(a)d%Ied *-e #*a*+# ! *-e )an@AandA!%le
e2(l,ee# 1-2 -e )de)ed * =,A(a## *-e #*anda)d (e)a*%n" ()&ed+)e# ! *-e &2(an,, * *-e de*)%2en* ! -%# e2(l,e), -e
1a# n* en*%)el, =la2ele##0 T-e %))e"+la)%*, a**)%=+*a=le * -%2 &+ld n* =e en*%)el, d%#)e"a)ded0 He 2+#* n* =e !+)*-e)
)e1a)ded, %n !a%)ne## * *-e e2(l,e)K# 1n le"%*%2a*e &n&e)n# #+&- a# &2(an, 2)ale and d%#&%(l%ne0
WHERE'ORE, *-e a##a%led NLRC Re#l+*%n %# AFFIRMED 1%*- MODIFICATION0 Pe*%*%ne) %# d%)e&*ed * )e%n#*a*e
*-e ()%5a*e )e#(nden* * -%# (#%*%n -eld a* *-e *%2e ! *-e &2(la%ned d%#2%##al0 Pe*%*%ne) %# l%@e1%#e )de)ed * (a, ()%5a*e
)e#(nden* -%# !+ll =a&@1a"e# %n&l+d%n" *-%)*een*- 2n*- (a, d+e -%2 =a#ed n -%# la#* #ala),, &2(+*ed !)2 *-e da*e !
()2+l"a*%n ! *-e NLRC Re#l+*%n n J+ne 7>, />>7, +n*%l -%# a&*+al )e%n#*a*e2en*0 T-e *-e) a1a)d# ! +n#(e&%!%ed
M=ene!%*# and ()()*%na*e ()%5%le"e#N %n *-e #a%d Re#l+*%n a)e #e* a#%de !) la&@ ! 2e)%*0
N ()n+n&e2en* a# * &#*#0
SO ORDERED.
Bellosillo, ,hairman-, !uno, Mendo*a, and Buena, JJ., &n&+)0
FIRST DIVISION
[G.R. No. 11.640. S5p65785r 5, 1997]
CORAZON )AMER *+3 CRISTINA AMORTIZA$O, petitioners, vs. NATIONAL LABOR
RELATIONS COMMISSION, ISETANN $EARTMENT STORE *+3!or )O"N
GO, respondents.
$ E C I S I O N
"ERMOSISIMA, )R., J.&
The decision
3$4
of public respondent National Labor Relations Commission 7NLRC8
3!4
in NLRC
NCR C ==!=@&/%$#
394
promulgated on No'ember $! $%%9# is herein sought to be annulled for ha'ing
been rendered )ith gra'e abuse of discretion# it ha'ing re'ersed and set aside the decision
3&4
of Labor
rbiter ,ablo C* 6spiritu# Br* b( dismissing the petitionersI complaint for illegal dismissal against
pri'ate respondent Isetann Department Store 7Isetann# for bre'it(8* The decretal part of the NLRC
decision reads5
MWHEREFORE, ()e2%#e# &n#%de)ed, *-e a((ealed de&%#%n %# -e)e=, #e* a#%de and ne1 ne ()2+l"a*ed
de&la)%n" *-a* *-e d%#2%##al !)2 *-e #e)5%&e ! &2(la%nan*# C)aIn Ja2e) and C)%#*%na A2)*%Iad 1a#
5al%d and !) &a+#e0 Cn#eC+en*l,, *-e )de) ! )e%n#*a*e2en* 1%*- =a&@1a"e# and a**)ne,K# !ee# a)e l%@e1%#e
5a&a*ed and #e* a#%de0N
E;F
lthough the Labor rbiter
3?4
and the NLRC reached contrar( conclusions# both agree on the
follo)ing facts5
MC2(la%nan*, C)aIn Ja2e) 1a# e2(l,ed n Fe=)+a), /B, />?4 a# a Ca#-%e) a* MJ, Ma)*,N a #%#*e)
&2(an, ! I#e*ann0 A!*e) *1 $7' ,ea)#, #-e 1a# la*e) n ()2*ed * *-e (#%*%n ! &+n*e) #+(e)5%#)0 S-e
1a# *)an#!e))ed * I#e*ann, Ca))%ed B)an&-, a# a 2ne, &-an"e)0 In />:7 #-e 1a# *)an#!e))ed * *-e C+=a
B)an&- ! I#e*ann, a# a 2ne, &-an"e), *%ll -e) d%#2%##al n A+"+#* 9/, />>B0
C2(la%nan* C)%#*%na A2)*%Iad, n *-e *-e) -and, 1a# e2(l,ed al# a* MJ, Ma)*N %n Ma,, />?? a# a #ale#
&le)@0 In />:B #-e 1a# ()2*ed * *-e (#%*%n a# &+n*e) &a#-%e)0 T-e)ea!*e), #-e 1a# *)an#!e))ed * QY+n"
Un De(a)*2en* S*)eK a# an a##%#*an* * *-e 2ne, &-an"e)0 La*e) n, ) %n />:;, #-e *)an#!e))ed * I#e*ann,
C+=a B)an&- 1-e)e #-e 1)@ed a# a S*)e Ca#-%e) *%ll -e) d%#2%##al n A+"+#* 9/, />>B0
B*- &2(la%nan*# 1e)e )e&e%5%n" a #ala), ! P3,/:70BB !) e%"-* $:' -+)# 1)@ a* *-e *%2e ! *-e%) d%#2%##al0
Re#(nden* I#e*ann De(a)*2en* S*)e n *-e *-e) -and, %# a &)()a*%n d+l, )"an%Ied and e<%#*%n" +nde)
la1# ! *-e P-%l%((%ne# and %# en"a"ed %n )e*a%l *)ade and *-e de(a)*2en* #*)e =+#%ne##0 Ind%5%d+al )e#(nden*,
J-n G %# *-e P)e#%den*LGene)al $Mana"e)' ! )e#(nden* De(a)*2en* S*)e0
T-%# &2(la%n* a)#e !)2 *-e d%#2%##al ! *-e &2(la%nan*# =, *-e )e#(nden*#0 T-e, 1e)e =*- d%#2%##ed n
A+"+#* 9/, />>B n *-e alle"ed ")+nd ! d%#-ne#*, %n *-e%) 1)@ a# S*)e Ca#-%e)#0
C2(la%nan*K# $sic' !+n&*%n a# S*)e Ca#-%e)# %# * a&&+2+la*e, a* *-e end ! da%l, (e)a*%n#, *-e &a#- #ale#
)e&e%(*# ! *-e #ell%n" !l) &a#- )e"%#*e) &le)@#0 A* *-e &l#e ! =+#%ne## -+)#, all *-e &a#- #ale# ! *-e !l)
&a#- )e"%#*e) &le)@# a)e *+)ned 5e) =, *-e2 * *-e S*)e Ca#-%e)#, &2(la%nan*# -e)e%n, *"e*-e) 1%*- *-e *all,
#-ee*# ()e(a)ed =, *-e &a#- )e"%#*e) &le)@#0 T-e)ea!*e), &2(la%nan*# 1%ll )e&n&%le *-e &a#- #ale# 1%*- *-e *all,
#-ee*# * de*e)2%ne #-)*a"e# ) &5e)a"e#$sic' and de(#%* *-e #a2e 1%*- *-e =an@ de(#%*)$sic' !
)e#(nden*K# &2(an,0 T-e)ea!*e), *-e )e&)ded *)an#a&*%n# a)e !)1a)ded * *-e 2a%n =)an&- ! )e#(nden*K#
&2(an, a* Ca))%ed !) &+n*e)A&-e&@%n"0
On J+l, /4, />>B, &2(la%nan*# d%#&5e)ed a #-)*a"e ! P/;,9;90?:0 I* 1a# &2(la%nan* C)aIn Ja2e) 1-
!%)#* d%#&5e)ed *-e #-)*a"e0 In !a&* a* !%)#*, #-e *-+"-* *-a* %* 1a# 2e)el, a P/,BBB0BB #-)*a"e =+* 1-en #-e
)e&n&%led *-e &a#- )e&e%(*#, !)2 *-e &a#- )e"%#*e) &+n*e)#, 1%*- *-e *all, #-ee*# and *-e a&*+al 2ne, n
-and, *-e #-)*a"e a2+n*ed * P/;,9;90?:0 S-e %n!)2ed -e) &A#*)e &a#-%e), &2(la%nan* C)%#*%na
A2)*%Iad, a=+* *-e #-)*a"e0 C)%#*%na A2)*%Iad al# )e&n&%led and )eA&+n*ed *-e #ale ()e5%+# * J+l,
/4, />>B and #-e al# &n!%)2ed *-a* *-e)e 1a# a d%#&)e(an&, ) a #-)*a"e ! P/;,9;90?:00 T-e, d%d n*, $sic'
%22ed%a*el, )e()* *-e #-)*a"e * 2ana"e2en* -(%n" * !%nd *-e &a+#e ! *-e #-)*a"e =+* * n a5a%l *-e,
!a%led * )e&n&%le *-e #a2e0 Hen&e, *-e, -ad n *-e) al*e)na*%5e =+* * )e()* *-e #a2e * *-e 2ana"e2en* n
J+l, /?, />>B0
C2(la%nan*#, *"e*-e) 1%*- an*-e) S*)e Ca#-%e), L+*"a)da Ind+&*a, 1e)e a#@ed * e<(la%n and *-e,
#+=2%**ed *-e%) )e#(e&*%5e 1)%**en e<(lana*%n# !) *-e #-)*a"e ! P/;,9;90?:0 and *-e P3;B0BB +nde) de(#%*
la#* J+l, /3, />>B0
Re#(nden*# (la&ed =*- &2(la%nan*# and *-e%) &A#*)e &a#-%e) L+*"a)da Ind+&*a +nde)
()e5en*%5e #+#(en#%n !) *-e alle"ed #-)*a"e#0 T-e)ea!*e), )e#(nden*# &nd+&*ed an ad2%n%#*)a*%5e
%n5e#*%"a*%n0 F%nd%n" *-e e<(lana*%n ! *-e &2(la%nan*# * =e +n#a*%#!a&*),, )e#(nden* d%#2%##ed *-e
&2(la%nan*# !)2 *-e #e)5%&e n A+"+#* 9/, />>B0 A"")%e5ed and n* #a*%#!%ed 1%*- *-e de&%#%n !
2ana"e2en* *e)2%na*%n" *-e%) #e)5%&e#, &2(la%nan* %n#*%*+*ed *-%# ()e#en* a&*%n n Se(*e2=e) 74, />>B !)
%lle"al d%#2%##al ()a,%n" !) )e%n#*a*e2en* 1%*- (a,2en* ! =a&@1a"e# and *-e) =ene!%*#0
E?F
In D+#*%!,%n" &2(la%nan*#K d%#2%##al !)2 *-e%) e2(l,2en*, )e#(nden*# alle"ed.
QW-en *-e *)an#a&*%n# !) J+l, /;, />>B 1e)e =e%n" )e&n&%led, a #-)*a"e ! P/;,9;90?: 1a# d%#&5e)ed0
Al# +n&5e)ed 1a# an +nde)Ade(#%* ! P3;B0BB ! &a#- )e&e%(*# !) J+l, /3, />>B0
Cn#%de)%n" *-a* *-e !)e"%n" de!%&%*# 1e)e a**)%=+*a=le * -e)e%n a((ellee# and * an*-e) #*)e &a#-%e), M)#0
L+*"a)da Ind+&*a, 1- 1e)e *-e ne# n d+*, *-#e da,# )e#(nden* I#e*annK# H+2an Re#+)&e# D%5%#%n
Mana"e), Te)e#%*a A0 V%llan+e5a, %##+ed le**e)# $E<-0 Q/K and Q;K' %nd%5%d+all, add)e##ed * -e)e%n a((ellee#
and M)#0 Ind+&*a )eC+%)%n" *-e2 * #+=2%* 1)%**en e<(lana*%n# %n )e"a)d * *-e%) a=5e 2al!ea#an&e 1%*-%n 3:
-+)# !)2 )e&e%(* *-e)e!0 P+)#+an* * #a%d le**e)#, *-e, 1e)e l%@e1%#e (la&ed +nde) ()e5en*%5e #+#(en#%n0
T-e)ea!*e), *-e C22%**ee D%#&%(l%ne ! a((ellan* I#e*ann &nd+&*ed a #e)%e# ! %n5e#*%"a*%n# ()=%n"
a((ellee#K and M)#0 Ind+&*aK# a!)e#*a*ed #-)*a"e#0 In add%*%n * *-e #-)*a"e ! P/;,9;90?:$sic' and
+nde)de(#%* ! P3;B0BB, #a%d %n5e#*%"a*%n al# %n&l+ded *-e !ll1%n" #+2# 1-%&- a((ellee# !a%led *
*+)n5e) ) a&&+n* !).
a' P/,BBB0BBA a2+n* =))1ed =, L+*"a)da Ind+&*a !)2 C)aIn Ja2e)6
=' P ?B0BBA 5e) )e(len%#-2en* ! (e**, &a#- e<(en#e# %n&+))ed =, C)%#*%na A2)*%Iad0
A!*e) *-e ad2%n%#*)a*%5e %n5e#*%"a*%n, *-e C22%**ee n D%#&%(l%ne )ende)ed %*# de&%#%n $E<-#0 Q9,K Q9AA,K *
Q9ADK' da*ed A+"+#* 79, />>B d+l, a(()5ed =, *-e Gene)al Mana"e) ! )e#(nden* I#e*ann, !%nd%n" *-e
a((ellee# and M)#0 Ind+&*a )e#(n#%=le !) #a%d #-)*a"e# and &n#eC+en*l, )eC+%)%n" *-e2 * )e#*%*+*e *-e #a2e
* )e#(nden* I#e*ann0 T-%# De&%#%n and *-e n*%&e# ! *e)2%na*%n 1e)e #en* =, )e#(nden* I#e*ann * *-e
a((ellee#, and 1-%&- *-e la**e) ad2%**edl, )e&e%5ed0K
On *-e *-e) -and, *-e &2(la%nan*# a&&+n* ! *-e !a&*+al an*e&eden*# *-a* le* $sic' * *-e%) d%#2%##al %# a#
!ll1#.
QA#%de !)2 *-e !)e"%n" (e)#n#, Ale< MeD%a -ad and 1a# all1ed =, 2ana"e2en* * -a5e +n&n*)lled
a&&e## * *-e #a%d )2 %n&l+d%n" *-e 5a+l*0 O#*en#%=l,, *-e (+)(#e 1a# * a##%#* %n *-e =)%n"%n" %n ) *a@%n"
+* ! &%n =a"#, 2n%e#, e*&0
T-e)e 1e)e *-e)e!)e, a* a 2%n%2+2 a* lea#* #%< $4' (e)#n# 1- &+ld -a5e -ad a&&e## * *-e &2(an, !+nd#0
T a#&)%=e l%a=%l%*, * *-e #*)e &a#-%e)# alne, %n *-e a=#en&e ! a &lea) ()! ! an, 1)n"d%n" %# n* nl,
+n!a%) and d%#&)%2%na*), =+* %# l%@e1%#e %lle"al0
Pa)en*-e*%&all,, and 1%*-%n *-e (a)a2e*e)# ! *-e%) a##%"ned *a#@#, -e)e%n &2(la%nan*# &+ld n* =e !a+l*ed %n
an, 1a, !) *-e #a%d #-)*a"e a# *-e)e %# n #-1%n" *-a* *-e l## &&+))ed a* *-e *%2e *-e, 1e)e %n &n*)l !
*-e !+nd# &n&e)ned0
C2(la%nan*# d n* d%#(+*e *-e !a&* *-a* *-e)e a((ea)ed * =e a #-)*a"e ! P/;09?90?:$sic' !) *-e J+l, /;,
/>>B $a S+nda,' #ale# and 1-%&- 1e)e *all%ed and *-e l## d%#&5e)ed n *-e !ll1%n" da,, J+l, /4, />>B0
T-e, -1e5e) 5e-e2en*l, den, an, &+l(a=%l%*, ) (a)*%&%(a*%n %n an, @%nd, d%)e&*l, ) %nd%)e&*l,, %n )e"a)d *
*-e #a%d l## ) #-)*a"e0 G%5en *-e @%nd ! *)+#* )e(#ed +(n *-e2 =, )e#(nden*# !) !+)*een and *-%)*een
,ea)# )e#(e&*%5el, *-e, 1e)e n* a=+*, al*-+"- *-e, &+ld -a5e dne # =e!)e "%5en *-e ne"l%"en&e and
la<%*, ! 2ana"e2en* %n )e"a)d * *-e &n*)l and -andl%n" ! !+nd# ! *-e #*)e, * =)ea@ #a%d *)+#*0
A* *-e *%2e *-e (e)#n# 1- -ad a&&e## e%*-e) * *-e 5a+l* *-e 2ne, andL) *-e @e,# a#%de !)2 -e)e%n
&2(la%nan*#, 1e)e. /' L+*"a)da Ind+&*a, al# a #*)e &a#-%e) n d+*, a* *-e *%2e6 7' *-e SOM M)#0 Sa2n*e,
*-e #+(e)5%#) %n &-a)"e6 9' Ale< MeD%a, an e2(l,ee a##%"ned a# +*%l%*, 2an6 and 3' B, Ca=a*+and0
T-e)e 1e)e $sic' *-)ee $9' @e,# * *-e 2ne, &-an"e)K# )2, and *-e#e @e,# 1e)e a##%"ned and d%#*)%=+*ed *.
a' 2a#*e) @e, %# ) 1a# 1%*- *-e SOMK# $M)#0 Sa2n*e' )2 a* *-e 9
)d
!l) ! *-e =+%ld%n"6 =' an*-e) @e, %#
) 1a# %n *-e (##e##%n ! *-e @ee(e) ! *-e @e,#, %0e0 B, Ca=a*+and6 and &' *-e *-%)d and la#* @e, %# an, !
*-e #*)e &a#-%e)# de(end%n" n 1- %# n d+*, a* *-e *%2e0
L%@e1%#e, *-e)e 1e)e !+) $3' (e)#n# 1- 1e)e a1a)e and @ne1 ! *-e 5a+l* &2=%na*%n0 T-e#e 1e)e *-e
*-)ee #*)e &a#-%e)#, %0e0 -e)e%n &2(la%nan*#, L+*"a)da Ind+&*a and *-e%) SOM, M)#0 Sa2n*e0KN
E:F
On Bul( !9# $%%$# Labor rbiter Nie'es V* de Castro# to )hom the instant conto'ers( )as
originall( assigned# rendered a decision
3%4
in fa'or of herein petitioners# finding that petitioners had
been illegall( dismissed# the dispositi'e portion of )hich reads5
MWHEREFORE, )e#(nden*# a)e -e)e=, d%)e&*ed * )e%n#*a*e &2(la%nan*# * #e)5%&e e!!e&*%5e A+"+#* /, />>/
1%*- !+ll =a&@1a"e# and 1%*-+* l## ! #en%)%*, )%"-*#0
SO ORDERED0N
E/BF
6Epectedl(# respondents Isetann and Bohn Do appealed the aforesaid decision to the NLRC*
On Banuar( 9$# $%%!# the NLRC issued a resolution
3$$4
remanding this case to the NLRC National
Capital Region rbitrattion 1ranch for further proceedings in the follo)ing manner5
MWHEREFORE, ()e2%#e# &n#%de)ed, *-e &-allen"ed de&%#%n %# -e)e=, SET ASIDE and VACATED0
T-e en*%)e )e&)d# ! *-%# &a#e %# -e)e=, )e2anded * *-e NLRC Na*%nal Ca(%*al Re"%n A)=%*)a*%n B)an&-
!) !+)*-e) ()&eed%n"#0
Cn#%de)%n" *-a* *-e La=) A)=%*e) a .uo )ende)ed a de&%#%n %n *-%# &a#e and %n )de) * d%#(el an, #+#(%&%n
! ()eAD+d"2en* ! *-%# &a#e, *-e E<e&+*%5e La=) A)=%*e) %# -e)e=, d%)e&*ed * -a5e *-%# &a#e )eA)a!!led *
an*-e) La=) A)=%*e)0
SO ORDERED0N
E/7F
Conse:uentl(# the present case )as then re/raffled to Labor rbiter ,ablo C* 6spiritu# Br* fter a
full/blo)n trial# the said Labor rbiter found for the petitioners and declared that there )as no
<ustification# )hether in fact or in la)# for their dismissal* The decretal part of the decision
3$94
dated
-arch 9$# $%%9# states5
MWHEREFORE, a=5e ()e2%#e# &n#%de)ed, D+d"e2en*$sic' %# -e)e=, )ende)ed !%nd%n" *-e d%#2%##al !
&2(la%nan*#, C)%#*%na A2)*%Iad and C)aIn Ja2e) * =e %lle"al and &n&2%*an*l,, $)'e#(nden*# a)e
-e)e=, )de)ed * (a, &2(la%nan*#, C)aIn Ja2e) *-e a2+n* ! P/7;,34B0BB and C)%#*%na A2)*%Iad *-e
a2+n* ! P/7;,34B0BB, )e()e#en*%n" !+ll =a&@1a"e# !)2 *-e *%2e ! *-e%) d%#2%##al $A+"+#* 9/, />>B' *%ll
a&*+al ) (a,)ll )e%n#*a*e2en* a* *-e (*%n ! *-e )e#(nden* $&2(+*ed +n*%l ()2+l"a*%n nl,'0
Re#(nden*# a)e al# -e)e=, !+)*-e) )de)ed * )e%n#*a*e *-e &2(la%nan*# * *-e%) !)2e) (#%*%n a# S*)e
Ca#-%e)# 1%*-+* l## ! #en%)%*, )%"-*#, ()%5%le"e# and =ene!%*#, !a%l+)e * d # =a&@1a"e# #-all &n*%n+e *
)+n =+* %n n &a#e * e<&eed *-)ee $9' ,ea)#0
Re#(nden*# a)e al# )de)ed * (a, &2(la%nan*# *-e a2+n* ! P7;,B>70BB )e()e#en*%n" /BR a**)ne,K# !ee#
=a#ed %n *-e **al D+d"e2en*$sic' a1a)d ! P7;B,>7B0BB0
SO ORDERED0N
E/3F
Dissatisfied o'er the decision of the Labor rbiter )hich struck pri'ate respondents as grossl(
contrar( to the e'idence presented# the herein pri'ate respondents once again appealed to the
NLRC* nd# as earlier stated# the NLRC rendered the challenged decision
3$;4
on No'ember $!# $%%9#
'acating the decision of the Labor rbiter and entering a ne) one dismissing the petitionersI
complaint*
0ence# this petition )herein the main issue to be resol'ed is )hether NLRC committed gra'e
abuse of discretion in finding that petitioners )ere 'alidl( dismissed on the ground of loss of trust
and confidence*
t the outset# the Court notes petitioners ineEcusable failure to mo'e for the reconsideration of
respondent NLRCIs decision* Thus# the present petition suffers from a procedural defect that
)arrants its outright dismissal* +hile in some eEceptional cases )e allo)ed the immediate recourse
to this Court# )e find nothing herein that could )arrant an eEceptional treatment to this petition )hich
)ill <ustif( the omission* This premature action of petitioners constitutes a fatal infirmit( as ruled in a
long line of decisions#
3$?4
most recentl( in the case of 1uilding Care Corporation 's* National Labor
Relations Commission# et al*5
3$@4
M*-e !%l%n" ! #+&- a 2*%n %# %n*ended * a!!)d (+=l%& )e#(nden* an (()*+n%*, * &))e&* an, a&*+al )
!an&%ed e))) a**)%=+*ed * %* =, 1a, ! a )eAe<a2%na*%n ! *-e le"al and !a&*+al a#(e&*# ! *-e &a#e0 Pe*%*%ne)K#
%na&*%n ) ne"l%"en&e +nde) *-e &%)&+2#*an&e# %# *an*a2+n* * a de()%5a*%n ! *-e )%"-* and (()*+n%*, !
*-e )e#(nden* C22%##%n * &lean#e %*#el! ! an e))) +n1%**%n"l, &22%**ed ) * 5%nd%&a*e %*#el! ! an a&*
+n!a%)l, %2(+*ed0 <<<
<<< And !) !a%l+)e * a5a%l ! *-e &))e&* )e2ed, e<()e##l, ()5%ded =, la1, (e*%*%ne) -a# (e)2%**ed *-e
#+=De&* Re#l+*%n * =e&2e !%nal and e<e&+*), a!*e) *-e la(#e ! *-e *en da, (e)%d 1%*-%n 1-%&- * !%le #+&-
2*%n !) )e&n#%de)a*%n0N
Like)ise# a motion for reconsideration is an ade:uate remed(F hence certiorari proceedings#as
in this case# )ill not prosper*
3$"4
Rule ?;# Section $ of the Rules of Ci'il ,rocedure# as amended#
clearl( pro'ides that5
MW-en an, *)%=+nal, =a)d ) !!%&e) e<e)&%#%n" D+d%&%al ) C+a#%AD+d%&%al !+n&*%n# -a# a&*ed 1%*-+* ) %n
e<&e## ! %*# ) -%# D+)%#d%&*%n, ) 1%*- ")a5e a=+#e ! d%#&)e*%n a2+n*%n" * la&@ ) e<&e## ! D+)%#d%&*%n,
and *-e)e %# n a((eal, ) an, (la%n, #(eed,, and adeC+a*e )e2ed, %n *-e )d%na), &+)#e ! la1, a (e)#n
a"")%e5ed *-e)e=, 2a, !%le a 5e)%!%ed (e*%*%n %n *-e ()(e) &+)*, alle"%n" *-e !a&*# 1%*- &e)*a%n*, and ()a,%n"
*-a* D+d"2en* =e )ende)ed ann+ll%n" ) 2d%!,%n" *-e ()&eed%n"# ! #+&- *)%=+nal, =a)d ) !!%&e), <<<N
The un:uestioned rule in this <urisdiction is that certiorari )ill lie onl( if there is no appeal or an(
other plain# speed( and ade:uate remed( in the ordinar( course of la) against the acts of
respondent*
3$%4
In the case at bench# the plain and ade:uate remed( referred to in Rule ?;# Section $#
is a motion for reconsideration of the challenged decision and the resolution thereof# )hich )as
eEpected to pro'ide an ade:uate and a more speed( remed( than the present petition for certiorari*
,etitioners asse'erate that respondent NLRC committed a gra'e abuse of discretion )hen it
re'ersed the findings of facts of the Labor rbiter*
+e find said submissions untenable*
In asserting that there )as a gra'e abuse of discretion# petitioners ad'ert to alleged 'ariances in
the factual findings of the Labor rbiter and the respondent NLRC* This is inept and erroneous*
Firstl(# errors of <udgment# as distinguished from errors of <urisdiction# are not )ithin the pro'ince of a
special ci'il action for certiorari*
3!=4
Secondl(# a careful reading of the records of this case )ould
readil( sho) that there is an( error b( public respondent in its anal(sis of the facts and its e'aluation
of the e'idence# it is not of such a degree as ma( be stigmati.ed as a gra'e abuse of discretion does
not necessaril( follo) <ust because there is a re'ersal b( the NLRC of the decision of the Labor
rbiter* Neither does the mere 'ariance in the e'identiar( assessment of the NLRC and that of the
Labor rbiter )ould# as a matter of course# so )arrant another full re'ie) of the facts* The NLRCIs
decision# so long as it is not bereft of support from the records# deser'es respect from the Court*
3!$4
+e must once more reiterate our much repeated but not )ell/heeded rule that the special ci'il
action for certiorari is a remed( designed for the correction of errors of <urisdiction and not errors of
<udgment* The rationale for this rule is simple* +hen a court eEercises its <urisdiction being eEercised
)hen the error is committed* If it did# e'er( error committed b( a court )ould depri'e it of its
<urisdiction and e'er( erroneous <udgment )ould be a 'oid <udgment* This cannot be allo)ed* The
administration of <ustice )ould not countenance such a rule* Conse:uentl(# an error of <udgment that
the court ma( commit in the eEercise of its <urisdiction is not correctible through the original special
ci'il action of certiorari.
3!!4
On the merits# )e find and so hold that substantial e'idence eEists to )arrant the finding that
petitioners )ere 'alidl( dismissed for <ust cause and after obser'ance of due process*
Cnder the Labor Code# as amended# the re:uirements for the la)ful dismissal of an emplo(ee
b( his emplo(er are t)o/fold5 the substanti'e and the procedural* Not onl( must the dismissal be for
a 'alid or authori.ed cause as pro'ided b( la) 7rticles !"!# !"9 and !"&# of the Labor Code# as
amended8# but the rudimentar( re:uirements of due process# basic of )hich are the opportunit( to
be heard and to defend himself# must be obser'ed before an emplo(ee ma( be dismissed*
3!94
+ith respect to the first re:uisite# rticle !"! of the Labor Code# as amended# pro'ides5
MART0 7:70 Te)2%na*%n =, E2(l,e)0A An e2(l,e) 2a, *e)2%na*e an e2(l,2en* !) an, ! *-e !ll1%n"
&a+#e#.
$a' Se)%+# 2%#&nd+&* ) 1%ll!+l d%#=ed%en&e =, *-e e2(l,ee ! *-e la1!+l )de)# ! -%# e2(l,e) )
)e()e#en*a*%5e %n &nne&*%n 1%*- -%# 1)@6
$=' G)## and -a=%*+al ne"le&* =, *-e e2(l,ee ! -%# d+*%e#6
$&' F)a+d ) 1%ll!+l =)ea&- =, *-e e2(l,ee ! *-e *)+#* )e(#ed %n -%2 =, -%# e2(l,e) ) d+l,
a+*-)%Ied )e()e#en*a*%5e6
$d' C22%##%n ! a &)%2e ) !!en#e =, *-e e2(l,ee a"a%n#* *-e (e)#n ! -%# e2(l,e) ) an,
%22ed%a*e 2e2=e) ! -%# !a2%l, ) -%# d+l, a+*-)%Ied )e()e#en*a*%5e6 and
$e' O*-e) &a+#e# anal"+# * *-e !)e"%n"0N $I*al%&# #+((l%ed'
In the instant case# )e find no difficult( in agreeing )ith the findings of the public respondent
that the herein petitioners )ere guilt( of acts of dishonest( b( incurring se'eral occurrences of
shortages in the amounts of ,$;#9;9*@"# ,$#===*==# ,&;=*== and ,@=*== )hich the( failed to
turno'er and account forGand in behalf of respondent Isetann* Fittingl(# the findings of the NLRC are
)orth stressing at this point# to )it5
MW%*- )e"a)d * *-e #e5e)al &&+))en&e# ! #-)*a"e# ! *-e a2+n*# ! P/;,9;90?:, P/,BBB0BB, P3;B0BB
and P?B0BB , *-e La=) A)=%*e) -a# !a%led * &n#%de) *-e !a&* *-a* &2(la%nan*#Aa((ellee# 1e)e a&&)ded *-e
&-an&e * e<(la%n *-e%) #%de a# * *-e #-)*a"e# and *-a* *-e, -a5e +**e)l, !a%led * d # ()5%d%n" =a#%# !)
*-e%) 5al%d d%#2%##al0 T-%# !a&* -a# =een e#*a=l%#-ed =, *-e )e#(nden*#Aa((ellan*# %n *-e !%nd%n"# ! *-e
C22%**ee n D%#&%(l%ne n E<-%=%*# Q9K, Q9AAK * Q9ADK, a# !ll1#.
Qa' On *-e S-)*a"e ! P /;,9;90?:.
T-e 9 )e#(nden*#, L+*"a)da Ind+&*a, C)%#*, A2)*%Iad and C)aIn Ja2e) den%ed an, %n5l5e2en* %n *-e
l## ! P/;,9;90?:0 Al*-+"- *-e 2ne,, %# +nde) *-e%) )e#(n#%=%l%*,, n* ne ! *-e2 "a5e an, e<(lana*%n
a=+* *-e #-)*a"e ) l##0
=' On *-e a2+n* ! P /,BBB0BB =))1ed =, Ind+&*a !)2 Ja2e).
On J+l, /:, />>B, L+*"a)da Ind+&*a =))1ed 2ne, !)2 )e#(nden*# $#%&' Ja2e) a2+n*%n" * P/,BBB0BB *
&5e) -e) #-)*a"e0
M#0 Ja2e) #a%d *-a* M#0 Ind+&*a (a%d *-e a2+n* n *-a* da,0 B+* M#0 Ja2e) d%d n* )e()* *-e #-)*a"e0
&' On *-e Unde)de(#%* ! Ca#- S P 3;B0BB 0
T-e &2(+*a*%n ! M#0 A2)*%Iad Q# #ale# &lle&*%n# la#* J+l, /3, />>B )e#+l*ed * an 5e)a"e ! P9;B0BB0
A2)*%Iad *+)ned 5e) *-e a2+n* ! P9;B0BB, * &5e) +( a #-)*a"e %n&+))ed =, -e) and M)#0 Ind+&*a0
Ja2e) +#ed *-e 2ne, "%5en * -e) =, A2)*%Iad $P9;B0BB', and =))1ed $P/;B0BB' !)2 *-e &-an"e !+nd *
&5e) *-e **al #-)*a"e a2+n*%n" * P;BB0BB 1-%&- #-e -ad *-en0
Ja2e) &ann* *)a&e -1 *-e #-)*a"e &a2e a=+*0 Ind+&*a and Ja2e) #-+lde)ed *-e **al #-)*a"e a2+n*%n"
* P;BB0BB, P99B0BB !) Ja2e) and P7BB0BB !) Ind+&*a0 Ja2e) &la%2ed *-a* #-e )e*+)ned *-eP9;B0BB %n *-e
=<0 H1e5e), *-e &la%2 ! )e#(nden* 1a# !+)*-e) 5e)%!%ed !)2 *-e (a,)ll #e&*%n 1-%&- )e5ealed *-a*
a 5al+e #l%( 1a# %##+ed la#* J+l, />>B0 Ja2e) and Ind+&*a 1e)e &-a)"ed !) P7BB0BB ea&-0 A 5al+e #l%( 1a#
%##+ed la#* A+"+#* /B, />>B &-a)"%n" P/BB0BB * A2)*%Iad0
Ja2e) ad2%**ed *-a* #-e !a%led * %n!)2 *-e A+d%* S*a!! )e"a)d%n" *-e P 9;B0BB 5e)a"e 1-%&- #-e )e&e%5ed
!)2 A2)*%Iad0 A$#' (e) )e()* ! M#0 A"ne# GnIale# da*ed 74 J+l, />>B, *-e)e 1a# a **al +nde) de(#%*
! &a#- a2+n*%n" * P3;B0BB0
T*al &a#- ad2%**ed P4;,37:0B;
$&a#- %n d)a1e)'
T*al &a#- )e2%**ed P43,>?:0B;
$(e) *all, #-ee*' TTTTTTTTT
O5e)a"e P 3;B0BB
d' On *-e P ?B0BB Re(len%#-2en* ! Pe**, Ca#- E<(en#e# .
D+)%n" *-e 9
)d
Ad2%n%#*)a*%5e -ea)%n", *-e C22%**ee %n!)2ed M#0 A2)*%Iad )e"a)d%n" *-e 5e)
)e(len%#-2en* ! (e**, &a#- e<(en#e# a# )e5ealed =, *-e F%nan&e Mana"e) la#* A+"+#* /B, />>B0
M)#0 A2)*%Iad )ead%l, ad2%**ed and e<(la%ned *-a* #-e !)"* * %n!)2 M)#0 Ind+&*a )e"a)d%n" *-e P?B0BB0
S-e ad2%**ed -e) !a%l+)e * &))e&* *-e a2+n* !)2 P/BB0BB * P9B0BB $**al e<(en#e# #(en* !) *-e *a<% !a%)'0
S-e added *-a* #-e ()e5%+#l, %n&+))ed a #-)*a"e a2+n*%n" * P/BB0BB0 T-en #-e +#ed *-e P?B0BB * &5e)
!) *-e #-)*a"e0 T-e )e2a%n%n" =alan&e ! P9B0BB 1a# (a%d =, A2)*%Iad0
A2)*%Iad %n!)2ed *-e C22%**ee *-a* #-e %# 1%ll%n" * )e!+nd *-e P?B0BB #-)*a"e0N $Unde)#&)%n"
#+((l%ed'0
E73F
From the foregoing premises# it is cr(stal clear that the failure of petitioners to report the
afore:uoted shortages and o'erages to management as soon as the( arose resulted in the breach
of the fiduciar( trust reposed in them b( respondent compan(# thereb( causing the latter to lose
confidence in them* This )arrants their dismissal* -oreo'er# it must be pointed out that herein
petitioners ha'e in fact admitted the underpa(ment of ,&;=*== not onl( in their JSinumpaang
Sala(sa(K but also during the hearing conducted before Labor rbiter ,ablo C* 6spiritu*
3!;4
nd# the
record sho)s that the petitioners in fact made a last ditch effort to conceal the same* +ere it not for
its timel( disco'er( b( pri'ate respondentsI trusted emplo(ees# the incident could not ha'e been
disco'ered at all* Furthermore# it is )orth stressing at this <uncture that the petitioners ha'e also
eEpressl( admitted the shortage of ,$;#9;9*@"La substantial amountLin their respecti'e s)orn
statements# and the( )ere not able to satisfactoril( eEplain such shortage*
3!?4
The Court is con'inced
that these particular acts or omissions pro'ided Isetann )ith enough basis to forfeit its trust and
confidence o'er herein petitioners*
The NLRC# therefore# did not act )ith gra'e abuse of discretion in declaring that petitioners
)ere legall( dismissed from emplo(ment* The failure of petitioners to report to management the
aforementioned irregularities constitute Jfraud or )illful breach of the trust reposed in them b( their
emplo(er or dul( authori.ed representati'eK M one of the <ust causes in terminating emplo(ment as
pro'ided for b( paragraph 7c8# rticle !"! of the Labor Code# as amended*
In other )ords# petitionersI admissions in their s)orn statements# together )ith the other
documentar( e'idences on record# constituted breach of trust on their part )hich <ustifies their
dismissal* ,ri'ate respondents Isetann Department Store and -r* Bohn Do cannot be compelled to
retain emplo(ees )ho are clearl( guilt( of malfeasance as their continued emplo(ment )ill be
pre<udicial to the formersI best interest*
3!@4
The la)# I protecting the rights of the emplo(ees#
authori.es neither oppression nor self/destruction of the emplo(er*
3!"4
The cause of social <ustice is not ser'ed b( upholding the interest of petitioners in disregard of
the right of pri'ate respondents* Social <ustice ceases to be an effecti'e instrument for the
Je:uali.ation of the social and economic forcesK b( the State )hen it is used to shield )rongdoing*
3!%4
+hile it is true that compassion and human consideration should guide the disposition of cases
in'ol'ing termination of emplo(ment since it affects oneIs source or means of li'elihood# it should not
be o'erlooked that the benefits accorded to labor do not include compelling an emplo(er to retain
the ser'ices of an emplo(ee )ho has been sho)n to be a gross liabilit( to the emplo(er* It should be
made clear that )hen the la) tilts the scale of <ustice in fa'or of labor# it is but a recognition of the
inherent economic ine:ualit( bet)een labor and management* The intent is to balance the scale of
<usticeF to put up the t)o parties on relati'el( e:ual positions* There ma( be cases )here the
circumstances )arrant fa'oring labor o'er the interests of management but ne'er should the scale
be so tilted if the result is an in<ustice to the emplo(er# Justicia remini regarda est 7Bustice is to be
denied to none8*
39=4
Thus# this Court has held time and again# in a number of decisions#
39$4
that5
ML## ! &n!%den&e %# a 5al%d ")+nd !) d%#2%##%n" an e2(l,ee and ()! =e,nd )ea#na=le d+=* ! *-e e2(l,eeK#
2%#&nd+&* %# n* )eC+%)ed * d%#2%## -%2 n *-%# &-a)"e0 I* %# #+!!%&%en* %! *-e)e %# Q#2e =a#%#K !) #+&- l## ! &n!%den&e ) %!
*-e e2(l,e) -a# )ea#na=le ")+nd * =el%e5e ) * en*e)*a%n *-e 2)al &n5%&*%n *-a* *-e e2(l,ee &n&e)ned %# )e#(n#%=le !)
*-e 2%#&nd+&* and *-a* *-e na*+)e ! -%# (a)*%&%(a*%n *-e)e%n )ende)ed -%2 a=#l+*el, +n1)*-, ! *-e *)+#* and &n!%den&e
de2anded =, -%# (#%*%n0N
E97F
,arentheticall(# the fact that petitioners Bamer and morti.ado had )orked for respondent
compan( for fourteen 7$&8 and thirteen 7$98 (ears# respecti'el(# should be taken against them* The
infractions that the( committed# not)ithstanding their long (ears of ser'ice )ith the compan(#
reflects a regrettable lack of lo(alt(Llo(alt( that the( should ha'e shouldered instead of betra(ed* If
the petitionersI length of ser'ice is to be regarded as a <ustif(ing circumstance in moderating the
dismissal# it )ill actuall( become a pri.e for dislo(alt(# per'erting the meaning of social <ustice and
undermining the efforts of labor to cleanse its ranks of all undesirables*
3994
,etitioners also maintain that the NLRC acted )ith gra'e abuse of discretion )hen it failed to
consider the fact that# other than petitioners themsel'es# there )ere four 7&8 other persons )ho had
access to the compan( 'aults# and hence# could ha'e been responsible for the aforesaid cash
shortages imputed to them* The( a'er therefore# that there )as a serious fla) and laEit( in the
super'ision and handling of compan( funds b( respondent Isetann*
39&4
+e also find this contention de'oid of merit*
First# it must pointed out that the petitionersI remark that there )as laEit( in the accounting
procedures of the compan( is a matter addressed to the respondent emplo(er* 0o)e'er# this does
not eEcuse dishonest( of emplo(ees and should not in an( case hamper the right of the emplo(er to
terminate the emplo(ment of petitioners on the ground of loss of confidence or breach of trust*
,recisel(# the accounting procedure )hich called for impro'ements )as based primaril( on trust and
confidence*
39;4
Secondl(# it must be noted that the herein petitioners )ere store casiers and as such# a special
and uni:ue emplo(ment relationship eEists bet)een them and the respondent compan(* -ore than
most ke( positions# that of cashier calls for the utmost trust and confidence because their primar(
function in'ol'es basicall( the handling of a highl( essential propert( of the respondent emplo(er ///
the sales and re'enues of the store* 6mplo(ers are conse:uentl( gi'en )ider latitude of discretion in
terminating the emplo(ment of managerial emplo(ees or other personnel occup(ing positions of
responsibilit(# such as in the instant case# than in the case of ordinar( rank/and/file emplo(ees#
)hose termination on the basis of these same grounds re:uires proof of in'ol'ement in the
malfeasance in :uestion* -ere uncorroborated assertions and accusations b( the emplo(er )ill not
suffice*
39?4
In that respect # )e :uote )ith appro'al the obser'ations of the NLRC5
MT e<(+nd !+)*-e), !) *-e (#%*%n ! a &a#-%e), *-e -ne#*, and %n*e")%*, ! *-e (e)#n# a##+2%n" #a%d
(#%*%n a)e *-e ()%2a), &n#%de)a*%n# !) *-e na*+)e ! -e) 1)@ )eC+%)e# *-a* -e) a&*+a*%nK# #-+ld =e
=e,nd #+#(%&%n a# *-e, a)e a&&)ded *-e )e#(n#%=%l%*, ! -andl%n" 2ne, and 1-a*e5e) *-e, 1+ld d *
#+&- ()(e)*, ! *-e e2(l,e) la)"el, de(end n *-e%) *)+#*1)*-%ne##0 Hen&e, *-e )%"-* ! *-e e2(l,e) *
d%#2%## a &a#-%e) "+%l*, ! =)ea&- and *)+#* and &n!%den&e #-+ld =e )e&"n%Ied0 In a &a#e de&%ded =, *-e
S+()e2e C+)* %* -a# =een )+led *-a*.
QHne#*, and %n*e")%*, a)e *-e ()%2a), &n#%de)a*%n# %n (e*%*%ne)K# (#%*%n0 T-e na*+)e ! -%# 1)@ )eC+%)e#
*-a* *-e a&*+a*%n# #-+ld =e =e,nd #+#(%&%n, +) e2(a*-, 1%*- *-e &a+#e ! la=) #-+ld n* =l%nd +# * *-e
)%"-*# ! 2ana"e2en*0 A# 1e -a5e -eld, *-%# C+)* #-+ld -el( #*a2( +*, )a*-e) *-an *le)a*e, *-e &22%##%n
! %))e"+la) a&*# 1-ene5e) *-e#e a)e n*ed0 Mal()a&*%&e# #-+ld n* =e all1ed * &n*%n+e =+* #-+ld =e
)e=+@ed0 $Del Ca)2en 5#0 NLRC, 7B9 SCRA 73;'KN
E9?F
Finall(# )e are con'inced that the NLRC did not commit gra'e abuse of discretion in e'aluating
the e'idence* ,etitioners merel( denied the charges against them* Denials are )eak forms of
defenses# particularl( )hen the( are not substantiated b( clear and con'incing e'idence*
39"4
The
petitionersI failure to satisfactoril( eEplain the cash shortages# for )hich sums the( are responsible#
gi'en their respecti'e positions in respondent compan(# is enough reason to )arrant their dismissal
on the ground of loss of confidence* The( cannot place the burden on somebod( else gi'en the
factual circumstances of this case* s succinctl( put b( the NLRC5
MT-a* *-e)e 1e)e *-e) (e)#n# 1- -ad a&&e## * *-e 5a+l*# ! *-e a((ellan* &2(an, %2(l,%n" *-a* *-e#e *-e)
(e)#n# &+ld -a5e =een )e#(n#%=le !) *-e l## ! *-e P/;,9;90?: %# ! n 22en* %na#2+&- a# *-e a((ellee#
1e)e *-e ne# 1- *@ !%)#* &+#*d, ! *-e (##e##%n ! #a%d &lle&*%n#0 A# #*)e &a#-%e)#, %* %# e<(e&*ed !
*-e2 * e<e)&%#e )d%na), ()+den&e * &+n* *-e &lle&*%n and )e&)d *-e #a2e %n *-e *all, #-ee* =e!)e
de(#%*%n" * #a%d 5a+l* * a5%d a #l%"-*e#* #+#(%&%n ! -a5%n" (&@e*ed (a)* ! %* #-+ld a #-)*a"e a)%#e0
T-e, d%d n* e<e)* e!!)*# * e<e)&%#e #+&- ()+den&e de2anded ! *-e%) (#%*%n# -en&e, a((ellan*# #-+ld n*
=e =la2ed 1-en *-e, 1e)e &alled !) an %n5e#*%"a*%n 1-en #a%d #-)*a"e 1a# d%#&5e)ed0
EEE EEE
EEE
T-a* *-e &&+))en&e ! #-)*a"e# %# 2e)el, an %#la*ed ne and *-e)e!)e #-+ld n* =e *a@en a"a%n#* *-e
&2(la%nan*Aa((ellee# a# a ")+nd !) l## ! *)+#* and &n!%den&e *-a* 1+ld &a+#e *-e%) *e)2%na*%n &ann* =e
"%5en an, &)eden&e0 T-e #-)*a"e# -a5%n" =een e#*a=l%#-ed and ad2%**ed -a# ()5%ded *-e e2(l,e) #+!!%&%en*
=a#%# !) l## ! &n!%den&e and 1-e*-e) #+&- &&+))en&e %# 2e)el, an %#la*ed ne ) -a# =een )e(ea*edl,
&22%**ed %# n ln"e) 2a*e)%al0 T-e =ne ! &n*en*%n -e)e %# 1-e*-e) *-e)e %# Q#2e =a#%#K !) #+&- l## !
*)+#* and &n!%den&e and %! *-e e2(l,e) -a# )ea#na=le ")+nd * =el%e5e ) * en*e)*a%n *-e 2)al &n5%&*%n
*-a* *-e e2(l,ee &n&e)ned %# )e#(n#%=le !) *-e 2%#&nd+&* 1-%&- %n *-e %n#*an* &a#e -a# =een
e#*a=l%#-ed0N
E9>F
+e reiterate the rule that in cases of dismissal for breach of trust and confidence# proof be(ond
reasonable doubt of the emplo(eesI misconduct is not re:uired* It is sufficient that the emplo(er had
reasonable ground to belie'e that the emplo(ees are responsible for the misconduct )hich renders
him un)orth( of the trust and confidence demanded b( their position*
3&=4
In the case at hand# it cannot
be doubted that respondents succeeded in discharging its burden of proof*
s regards to the second re:uisite# the la) re:uires that the emplo(er must furnish the )orker
sought to be dismissed )ith t)o 7!8 )ritten notices before termination ma( be 'alidl( effected5 first# a
notice apprising the emplo(ee of the particular acts or omission for )hich his dismissal is sought
and# second# a subse:uent notice informing the emplo(ee of the decision to dismiss him*
3&$4
In accordance )ith this re:uirement# petitioners )ere gi'en the re:uired notices# on ugust !#
$%%= and then on ugust !9# $%%=* The Court finds that petitioners )ere accorded due process
before the( )ere dismissed on ugust 9$# $%%=* It is a )ell/established rule that the essence of due
process is simpl( an opportunit( to be heard# or as applied to administrati'e proceedings# an
opportunit( to eEplain oneIs side or an opportunit( to seek a reconsideration of the action or ruling
complained of*
3&!4
It is e'ident from the records # that herein petitioners )ere gi'en all the opportunities
to defend themsel'es and air their side before the Committee on Discipline# ha'ing been notified b(
respondent IsetannIs 0uman Resources Di'ision -anager# Teresita * Villanue'a# on ugust !#
$%%= through letters indi'iduall( sent to them* 0o)e'er# offered no eEplanation or theor( )hich could
account for mone( lost in their possession* 0ence# the compan( had no other alternati'e but to
terminate their emplo(ment* s )e elucidated in the case of ,hilippine Sa'ings 1ank 's* National
Labor Relations Commission#
3&94
to )it5
M<<< *-e )eC+%)e2en* ! d+e ()&e## %# #a*%#!%ed 1-en a !a%) and )ea#na=le (()*+n%*, * e<(la%n -%# #%de !
*-e &n*)5e)#, %# a!!)ded *-e (a)*,0 A !)2al ) *)%alA*,(e -ea)%n" %# n* a* all *%2e# and %n all &%)&+2#*an&e#
e##en*%al, e#(e&%all, 1-en *-e e2(l,ee &-#e# n* * #(ea@,N
'"ERE(ORE, the assailed decision of the National Labor Relations Commission in NLRC
NCR C ==!=@&/%$ is hereb( FFIR-6D* The petition is DIS-ISS6D for lack of merit*
SO OR$ERE$.
Bellosillo, (Cairman!, Vitug, and "a#unan, JJ., concur.
THIRD DIVISION


CHERRY J. PRICE, STEPHANIE G.
DOMINGO AND LOLITA ARBILERA,
Petitioners,



- versus -


INNODATA PHILS. INC. , /
INNODATA CORPORATION, LEO
RABAN AND JANE NAVARETTE,
Re#(nden* #0
. R. N!. "%AB<B

Present:

YNARESASANTIAGO, J.,
C-a%)(e)#n,
AUSTRIA-MARTINEZ,
CHICO-NAZARIO,
NACHURA, and
REYES, JJ.


Promu!ated:

Se"tem#er $%, &%%'
( - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - (


) E C I S I O N



CHICO-NAZARIO, J.:


T*is Petition +or Re,ie- on Certiorari under Rue ./ o+ t*e Rues o+ Court assais t*e
)e0ision
123
dated &/ Se"tem#er &%%4 and Resoution
1&3
dated 2/ 5une &%%6 o+ t*e Court o+
A""eas in CA-7.R. SP No. 6&68/, -*i0* a++irmed t*e )e0ision dated 2. )e0em#er &%%2 o+ t*e
Nationa 9a#or Reations Commission :N9RC; in N9RC NCR Case No. $%-%$-%2&6.-&%%%
+indin! t*at "etitioners -ere not ie!a< dismissed #< res"ondents.

T*e +a0tua ante0edents o+ t*e 0ase are as +oo-s:

Res"ondent Innodata P*ii""ines, In0.=Innodata Cor"oration :INNO)ATA; -as a
domesti0 0or"oration en!a!ed in t*e data en0odin! and data 0on,ersion #usiness. It em"o<ed
en0oders, inde(ers, +ormatters, "ro!rammers, >uait<=>uantit< sta++, and ot*ers, to maintain its
#usiness and a00om"is* t*e ?o# orders o+ its 0ients. Res"ondent 9eo Ra#an! -as its Human
Resour0es and )e,eo"ment :HRA); Mana!er, -*ie res"ondent 5ane Na,arette -as its
Pro?e0t Mana!er. INNO)ATA *ad sin0e 0eased o"erations due to #usiness osses in 5une
&%%&.

Petitioners C*err< 5. Pri0e, Ste"*anie 7. )omin!o, and 9oita Ar#iera -ere em"o<ed
as +ormatters #< INNO)ATA. T*e "arties e(e0uted an em"o<ment 0ontra0t denominated as a
@Contra0t o+ Em"o<ment +or a Ai(ed Period,B sti"uatin! t*at t*e 0ontra0t s*a #e +or a "eriod o+
one <ear,
1$3
to -it:


CONTRACT OA EMP9OYMENT AOR A AICE) PERIO)

( ( ( (

DITNESSETH: T*at

DHEREAS, t*e EMP9OYEE *as a""ied +or t*e "osition o+ AORMATTER and in t*e 0ourse
t*ereo+ and re"resented *imse+=*erse+ to #e +u< >uai+ied and sEied +or t*e said "ositionF

DHEREAS, t*e EMP9OYER, #< reason o+ t*e a+oresaid re"resentations, is desirous o+
en!a!in! t*at t*e :si0; ser,i0es o+ t*e EMP9OYEE +or a +i(ed "eriodF

NOD, THEREAORE, +or and in 0onsideration o+ t*e +ore!oin! "remises, t*e "arties *a,e
mutua< a!reed as +oo-s:


TERM=)URATION

T*e EMP9OYER *ere#< em"o<s, en!a!es and *ires t*e EMP9OYEE and t*e EMP9OYEE
*ere#< a00e"ts su0* a""ointment as AORMATTER e++e0ti,e AEG. 24, 2888 to AEG. 24, &%%% a
"eriod o+ ONE YEAR.

( ( ( (

TERMINATION

40/ In *-e e5en* *-a* EMPLOYER #-all d%#&n*%n+e (e)a*%n" %*# =+#%ne##, *-%# CONTRACT #-all al# %(#
!a&* *e)2%na*e n *-e la#* da, ! *-e 2n*- n 1-%&- *-e EMPLOYER &ea#e# (e)a*%n# 1%*- *-e #a2e !)&e
and e!!e&* a# %# #+&- la#* da, ! *-e 2n*- 1e)e )%"%nall, #e* a# *-e *e)2%na*%n da*e ! *-%# Cn*)a&*0 F+)*-e)
#-+ld *-e C2(an, -a5e n 2)e need !) *-e EMPLOYEEK# #e)5%&e# n a&&+n* ! &2(le*%n ! *-e
()De&*, la&@ ! 1)@ $#%&' =+#%ne## l##e#, %n*)d+&*%n ! ne1 ()d+&*%n ()&e##e# and *e&-n%C+e#, 1-%&-
1%ll ne"a*e *-e need !) (e)#nnel, andL) 5e)#*a!!%n", *-%# &n*)a&* 2a,=e ()eA*e)2%na*ed =, *-e EMPLOYER
+(n "%5%n" ! *-)ee $9' da,# n*%&e * *-e e2(l,ee0

4.& In t*e e,ent "eriod sti"uated in item 2.& o00urs +irst ,is-H-,is t*e 0om"etion o+ t*e "ro?e0t, t*is
0ontra0t s*a automati0a< terminate.

4.$ COMPANYIs Poi0< on mont*< "rodu0ti,it< s*a aso a""< to t*e EMP9OYEE.

4.. T*e EMP9OYEE or t*e EMP9OYER ma< "re-terminate t*is CONTRACT, -it* or -it*out 0ause,
#< !i,in! at east Ai+teen J :2/; noti0e to t*at e++e0t. Pro,ided, t*at su0* "re-termination s*a #e
e++e0ti,e on< u"on issuan0e o+ t*e a""ro"riate 0earan0e in +a,or o+ t*e said EMP9OYEE.

4./ Eit*er o+ t*e "arties ma< terminate t*is Contra0t #< reason o+ t*e #rea0* or ,ioation o+ t*e terms
and 0onditions *ereo+ #< !i,in! at east Ai+teen :2/; da<s -ritten noti0e. Termination -it* 0ause
under t*is "ara!ra"* s*a #e e++e0ti,e -it*out need o+ ?udi0ia a0tion or a""ro,a.
1.3

)urin! t*eir em"o<ment as +ormatters, "etitioners -ere assi!ned to *ande ?o#s +or
,arious 0ients o+ INNO)ATA, amon! -*i0* -ere CAS, Retro, Meridian, Ado#e, Neti#, PSM,
and Eart*-e#. On0e t*e< +inis*ed t*e ?o# +or one 0ient, t*e< -ere immediate< assi!ned to do
a ne- ?o# +or anot*er 0ient.

On 24 Ae#ruar< &%%%, t*e HRA) Mana!er o+ INNO)ATA -rote "etitioners in+ormin!
t*em o+ t*eir ast da< o+ -orE. T*e etter reads:

RE: End o+ Contra0t
)ate: Ae#ruar< 24, &%%%

Pease #e in+ormed t*at <our em"o<ment 0eases e++e0ti,e at t*e end o+ t*e 0ose o+
#usiness *ours on Ae#ruar< 24, &%%%.
1/3


A00ordin! to INNO)ATA, "etitionersI em"o<ment aread< 0eased due to t*e end o+ t*eir
0ontra0t.


On && Ma< &%%%, "etitioners +ied a Com"aint
143
+or ie!a dismissa and dama!es
a!ainst res"ondents. Petitioners 0aimed t*at t*e< s*oud #e 0onsidered re!uar em"o<ees
sin0e t*eir "ositions as +ormatters -ere ne0essar< and desira#e to t*e usua #usiness o+
INNO)ATA as an en0odin!, 0on,ersion and data "ro0essin! 0om"an<. Petitioners aso
a,erred t*at t*e de0isions in Villanueva v. National Labor Relations Commission
163
and Servidad
v. National Labor Relations Commission,
1'3
in -*i0* t*e Court aread< "ur"orted< rued @t*at t*e
nature o+ em"o<ment at Innodata P*is., In0. is re!uar,B
183
0onstituted stare decisis to t*e
"resent 0ase. Petitioners +ina< ar!ued t*at t*e< 0oud not #e 0onsidered "ro?e0t em"o<ees
0onsiderin! t*at t*eir em"o<ment -as not 0oterminous -it* an< "ro?e0t or undertaEin!, t*e
termination o+ -*i0* -as "redetermined.

On t*e ot*er *and, res"ondents e("ained t*at INNO)ATA -as en!a!ed in t*e #usiness
o+ data "ro0essin!, t<"esettin!, inde(in!, and a#stra0tin! +or its +orei!n 0ients. T*e #uE o+ t*e
-orE -as data "ro0essin!, -*i0* in,o,ed data en0odin!. )ata en0odin!, or t*e t<"in! o+ data
into t*e 0om"uter, in0uded "re-en0odin!, en0odin! 2 and &, editin!, "roo+readin!, and
s0annin!. Amost *a+ o+ t*e em"o<ees o+ INNO)ATA did data en0odin! -orE, -*ie t*e ot*er
*a+ monitored >uait< 0ontro. )ue to t*e -ide ran!e o+ ser,i0es rendered to its 0ients,
INNO)ATA -as 0onstrained to *ire ne- em"o<ees +or a +i(ed "eriod o+ not more t*an one
<ear. Res"ondents asserted t*at "etitioners -ere not ie!a< dismissed, +or t*eir em"o<ment
-as terminated due to t*e e("iration o+ t*eir terms o+ em"o<ment. PetitionersI 0ontra0ts o+
em"o<ment -it* INNO)ATA -ere +or a imited "eriod on<, 0ommen0in! on 4 Se"tem#er
2888 and endin! on 24 Ae#ruar< &%%%.
12%3
Res"ondents +urt*er ar!ued t*at "etitioners -ere
esto""ed +rom assertin! a "osition 0ontrar< to t*e 0ontra0ts -*i0* t*e< *ad Eno-in!<,
,ountari<, and -i+u< a!reed to or entered into. T*ere #ein! no ie!a dismissa, res"ondents
iEe-ise maintained t*at "etitioners -ere not entited to reinstatement and #a0E-a!es.

On 26 O0to#er &%%%, t*e 9a#or Ar#iter
1223
issued its )e0ision
12&3
+indin! "etitionersI
0om"aint +or ie!a dismissa and dama!es meritorious. T*e 9a#or Ar#iter *ed t*at as
+ormatters, "etitioners o00u"ied ?o#s t*at -ere ne0essar<, desira#e, and indis"ensa#e to t*e
data "ro0essin! and en0odin! #usiness o+ INNO)ATA. G< t*e ,er< nature o+ t*eir -orE as
+ormatters, "etitioners s*oud #e 0onsidered re!uar em"o<ees o+ INNO)ATA, -*o -ere
entited to se0urit< o+ tenure. T*us, t*eir termination +or no ?ust or aut*oriKed 0ause -as
ie!a. In t*e end, t*e 9a#or Ar#iter de0reed:

AORE7OIN7 PREMISES CONSI)ERE), ?ud!ment is *ere#< rendered de0arin!
0om"ainantsI dismissa ie!a and orderin! res"ondent INNO)ATA PHI9S. INC.=INNO)ATA
CORPORATION to reinstate t*em to t*eir +ormer or e>ui,aent "osition -it*out oss o+ seniorit<
ri!*ts and #ene+its. Res"ondent 0om"an< is +urt*er ordered to "a< 0om"ainants t*eir +u
#a0E-a!es "us ten "er0ent :2%L; o+ t*e totait< t*ereo+ as attorne<Is +ees. T*e monetar< a-ards
due t*e 0om"ainants as o+ t*e date o+ t*is de0ision are as +oo-s:

A. Ga0E-a!es
2. C*err< 5. Pri0e
&=26=&%%% J 2%=26=&%%% at &&$./%=da<
P/,'22.%%=mo= ( ' mos. P.4,.''.%%
&. Ste"*anie )omin!o .4,.''.%%
:same 0om"utation;
$. 9oita Ar#iera .4,.''.%%
:same 0om"utation;
Tota Ga0E-a!es P2$8,.4..%%
G. Attorne<Is +ees :2%L o+ tota a-ard; 2$,8.4..%
Tota A-ard P2/$,.2%..%


Res"ondent INNO)ATA a""eaed t*e 9a#or Ar#iterIs )e0ision to t*e N9RC. T*e N9RC,
in its )e0ision dated 2. )e0em#er &%%2, re,ersed t*e 9a#or Ar#iterIs )e0ision dated 26
O0to#er &%%%, and a#so,ed INNO)ATA o+ t*e 0*ar!e o+ ie!a dismissa.

T*e N9RC +ound t*at "etitioners -ere not re!uar em"o<ees, #ut -ere +i(ed-term
em"o<ees as sti"uated in t*eir res"e0ti,e 0ontra0ts o+ em"o<ment. T*e N9RC a""ied Brent
School, Inc. v. Zamora
12$3
and St. Theresas School o Novaliches !oundation v. National Labor
Relations Commission,
12.3
in -*i0* t*is Court u"*ed t*e ,aidit< o+ +i(ed-term 0ontra0ts. T*e
determinin! +a0tor o+ su0* 0ontra0ts is not t*e dut< o+ t*e em"o<ee #ut t*e da< 0ertain a!reed
u"on #< t*e "arties +or t*e 0ommen0ement and termination o+ t*e em"o<ment
reations*i". T*e N9RC o#ser,ed t*at t*e "etitioners +ree< and ,ountari< entered into t*e
+i(ed-term em"o<ment 0ontra0ts -it* INNO)ATA. Hen0e, INNO)ATA -as not !uit< o+ ie!a
dismissa -*en it terminated "etitionersI em"o<ment u"on t*e e("iration o+ t*eir 0ontra0ts
on 24 Ae#ruar< &%%%.

T*e dis"ositi,e "ortion o+ t*e N9RC )e0ision t*us reads:

DHEREAORE, "remises 0onsidered, t*e de0ision a""eaed +rom is *ere#< REMERSE) and
SET ASI)E and a ne- one entered )ISMISSIN7 t*e instant 0om"aint +or a0E o+ merit.
12/3

T*e N9RC denied "etitionersI Motion +or Re0onsideration in a Resoution dated &' 5une
&%%&.
1243

In a Petition +or Certiorari under Rue 4/ o+ t*e Rues o+ Court +ied #e+ore t*e Court o+
A""eas, "etitioners "ra<ed +or t*e annument, re,ersa, modi+i0ation, or settin! aside o+ t*e
)e0ision dated 2. )e0em#er &%%2 and Resoution dated &' 5une &%%& o+ t*e N9RC.

On &/ Se"tem#er &%%4, t*e Court o+ A""eas "romu!ated its )e0ision sustainin! t*e
ruin! o+ t*e N9RC t*at "etitioners -ere not ie!a< dismissed.

T*e Court o+ A""eas ratio0inated t*at at*ou!* t*is Court de0ared
in Villanueva and Servidad t*at t*e em"o<ees o+ INNO)ATA -orEin! as data en0oders and
a#stra0tors -ere re!uar, and not 0ontra0tua, "etitioners admitted enterin! into 0ontra0ts o+
em"o<ment -it* INNO)ATA +or a term o+ on< one <ear and +or a "ro?e0t 0aed
Eart*-e#. A00ordin! to t*e Court o+ A""eas, t*ere -as no s*o-in! t*at "etitioners entered
into t*e +i(ed-term 0ontra0ts unEno-in!< and in,ountari<, or #e0ause INNO)ATA a""ied
+or0e, duress or im"ro"er "ressure on t*em. T*e a""eate 0ourt aso o#ser,ed t*at INNO)ATA
and "etitioners deat -it* ea0* ot*er on more or ess e>ua terms, -it* no mora dominan0e
e(er0ised #< t*e +ormer on atter. Petitioners -ere t*ere+ore #ound #< t*e sti"uations in t*eir
0ontra0ts terminatin! t*eir em"o<ment a+ter t*e a"se o+ t*e +i(ed term.

T*e Court o+ A""eas +urt*er e("ounded t*at in +i(ed-term 0ontra0ts, t*e sti"uated
"eriod o+ em"o<ment is !o,ernin! and not t*e nature t*ereo+. Conse>uent<, e,en t*ou!*
"etitioners -ere "er+ormin! +un0tions t*at are ne0essar< or desira#e in t*e usua #usiness or
trade o+ t*e em"o<er, "etitioners did not #e0ome re!uar em"o<ees #e0ause t*eir em"o<ment
-as +or a +i(ed term, -*i0* #e!an on 24 Ae#ruar< 2888 and -as "redetermined to end on 24
Ae#ruar< &%%%.

T*e a""eate 0ourt 0on0uded t*at t*e "eriods in "etitionersI 0ontra0ts o+ em"o<ment
-ere not im"osed to "re0ude "etitioners +rom a0>uirin! se0urit< o+ tenureF and, a""<in! t*e
ruin! o+ t*is Court in Brent, de0ared t*at "etitionersI +i(ed-term em"o<ment 0ontra0ts -ere
,aid. INNO)ATA did not 0ommit ie!a dismissa +or terminatin! "etitionersI em"o<ment u"on
t*e e("iration o+ t*eir
0ontra0ts.



T*e Court o+ A""eas ad?ud!ed:

DHEREAORE, t*e instant "etition is *ere#< )ENIE) and t*e Resoution dated )e0em#er
2., &%%2 o+ t*e Nationa 9a#or Reations Commission de0arin! "etitioners -ere not ie!a<
dismissed is AAAIRME).
1263

T*e "etitioners +ied a Motion +or Re0onsideration o+ t*e a+ore-mentioned )e0ision o+ t*e
Court o+ A""eas, -*i0* -as denied #< t*e same 0ourt in a Resoution dated 2/ 5une &%%6.

Petitioners are no- #e+ore t*is Court via t*e "resent Petition +or Re,ie- on Certiorari,
#ased on t*e +oo-in! assi!nment o+ errors:

I.
THE HONORABLE COURT OF APPEALS COMMITTED SERIOUS ERROR OF LAW AND GRAVE
ABUSE OF DISCRETION WHEN IT DID NOT APPLY THE SUPREME COURT RULING IN THE CASE
OF NATIVIDAD U QUEJADA THAT THE NATURE OF EMPLOYMENT OF RESPONDENTS IS
REGULAR NOT FIGED, AND AS SO RULED IN AT LEAST TWO OTHER CASES AGAINST
INNODATA PHILS0 INC0

II.
THE HONORAG9E COURT OA APPEA9S COMMITTE) SERIOUS ERROR OA 9AD IN RU9IN7
THAT THE STIPU9ATION OA CONTRACT IS 7OMERNIN7 AN) NOT THE NATURE OA
EMP9OYMENT AS )EAINE) GY 9AD.

III.
THE HONORAG9E COURT OA APPEA9S COMMITTE) 7RAME AGUSE OA )ISCRETION
AMOUNTIN7 TO 9ACN OA 5URIS)ICTION DHEN IT )I) NOT CONSI)ER THE EMI)ENCE ON
RECOR) SHODIN7 THAT THERE IS C9EAR CIRCUMMENTION OA THE 9AD ON SECURITY
OA TENURE THROU7H CONTRACT MANIPU9ATION.
12'3

T*e issue o+ -*et*er "etitioners -ere ie!a< dismissed #< res"ondents is utimate<
de"endent on t*e >uestion o+ -*et*er "etitioners -ere *ired #< INNO)ATA under ,aid +i(ed-
term em"o<ment 0ontra0ts.

A+ter a "ainstaEin! re,ie- o+ t*e ar!uments and e,iden0es o+ t*e "arties, t*e Court +inds
merit in t*e "resent Petition. T*ere -ere no ,aid +i(ed-term 0ontra0ts and "etitioners -ere
re!uar em"o<ees o+ t*e INNO)ATA -*o 0oud not #e dismissed e(0e"t +or ?ust or aut*oriKed
0ause.
T*e em"o<ment status o+ a "erson is de+ined and "res0ri#ed #< a- and not #< -*at t*e
"arties sa< it s*oud #e.
1283
E>ua< im"ortant to 0onsider is t*at a 0ontra0t o+ em"o<ment is
im"ressed -it* "u#i0 interest su0* t*at a#or 0ontra0ts must <ied to t*e 0ommon !ood.
1&%3
T*us,
"ro,isions o+ a""i0a#e statutes are deemed -ritten into t*e 0ontra0t, and t*e "arties are not at
i#ert< to insuate t*emse,es and t*eir reations*i"s +rom t*e im"a0t o+ a#or a-s and
re!uations #< sim"< 0ontra0tin! -it* ea0* ot*er.
1&23

Re!uar em"o<ment *as #een de+ined #< Arti0e &'% o+ t*e 9a#or Code, as amended,
-*i0* reads:

Art. &'%. Re!uar and Casua Em"o<ment. T*e "ro,isions o+ -ritten a!reement to t*e
0ontrar< not-it*standin! and re!ardess o+ t*e ora a!reement o+ t*e "arties, an em"o<ment s*a
#e deemed to #e re!uar -*ere t*e em"o<ee *as #een en!a!ed to "er+orm a0ti,ities -*i0* are
usua< ne0essar< or desira#e in t*e usua #usiness or trade o+ t*e em"o<er, e(0e"t -*ere t*e
em"o<ment *as #een +i(ed +or a s"e0i+i0 "ro?e0t or undertaEin! t*e 0om"etion or termination o+
-*i0* *as #een determined at t*e time o+ en!a!ement o+ t*e em"o<ee or -*ere t*e -orE or
ser,i0es to #e "er+ormed is seasona in nature and em"o<ment is +or t*e duration o+ t*e season.

An em"o<ment s*a #e deemed to #e 0asua i+ it is not 0o,ered #< t*e "re0edin! "ara!ra"*.
Pro,ided, T*at, an< em"o<ee -*o *as rendered at east one <ear o+ ser,i0e, -*et*er su0* ser,i0e
is 0ontinuous or #roEen, s*a #e 0onsidered a re!uar em"o<ee -it* res"e0t to t*e a0ti,it< in -*i0*
*e is em"o<ed and *is em"o<ment s*a 0ontinue -*ie su0* a0ti,it< e(ists. :Unders0orin! ours;.

Gased on t*e a+ore->uoted "ro,ision, t*e +oo-in! em"o<ees are a00orded re!uar
status: :2; t*ose -*o are en!a!ed to "er+orm a0ti,ities -*i0* are ne0essar< or desira#e in t*e
usua #usiness or trade o+ t*e em"o<er, re!ardess o+ t*e en!t* o+ t*eir em"o<mentF and :&;
t*ose -*o -ere initia< *ired as 0asua em"o<ees, #ut *a,e rendered at east one <ear o+
ser,i0e, -*et*er 0ontinuous or #roEen, -it* res"e0t to t*e a0ti,it< in -*i0* t*e< are em"o<ed.

Undou#ted<, "etitioners #eon! to t*e +irst t<"e o+ re!uar em"o<ees.

Under Arti0e &'% o+ t*e 9a#or Code, t*e a""i0a#e test to determine -*et*er an
em"o<ment s*oud #e 0onsidered re!uar or non-re!uar is t*e reasona#e 0onne0tion #et-een
t*e "arti0uar a0ti,it< "er+ormed #< t*e em"o<ee in reation to t*e usua #usiness or trade o+ t*e
em"o<er.
1&&3

In t*e 0ase at #ar, "etitioners -ere em"o<ed #< INNO)ATA on 26 Ae#ruar< 2888 as
+ormatters. T*e "rimar< #usiness o+ INNO)ATA is data en0odin!, and t*e +ormattin! o+ t*e
data entered into t*e 0om"uters is an essentia "art o+ t*e "ro0ess o+ data
en0odin!. Aormattin! or!aniKes t*e data en0oded, maEin! it easier to understand +or t*e 0ients
and=or t*e intended end users t*ereo+. Undenia#<, t*e -orE "er+ormed #< "etitioners -as
ne0essar< or desira#e in t*e #usiness or trade o+ INNO)ATA.

Ho-e,er, it is aso true t*at -*ie 0ertain +orms o+ em"o<ment re>uire t*e "er+orman0e
o+ usua or desira#e +un0tions and e(0eed one <ear, t*ese do not ne0essari< resut in re!uar
em"o<ment under Arti0e &'% o+ t*e 9a#or Code.
1&$3
Under t*e Ci,i Code, +i(ed-term
em"o<ment 0ontra0ts are not imited, as t*e< are under t*e "resent 9a#or Code, to t*ose #<
nature seasona or +or s"e0i+i0 "ro?e0ts -it* "redetermined dates o+ 0om"etionF t*e< aso
in0ude t*ose to -*i0* t*e "arties #< +ree 0*oi0e *a,e assi!ned a s"e0i+i0 date o+ termination.
1&.3

T*e de0isi,e determinant in term em"o<ment is t*e da< 0ertain a!reed u"on #< t*e
"arties +or t*e 0ommen0ement and termination o+ t*eir em"o<ment reations*i", a da< 0ertain
#ein! understood to #e t*at -*i0* must ne0essari< 0ome, at*ou!* it ma< not #e Eno-n
-*en. Seasona em"o<ment and em"o<ment +or a "arti0uar "ro?e0t are instan0es o+
em"o<ment in -*i0* a "eriod, -*ere not e("ress< set do-n, is ne0essari< im"ied.
1&/3

Res"ondents maintain t*at t*e 0ontra0ts o+ em"o<ment entered into #< "etitioners -it*
INN)OATA -ere ,aid +i(ed-term em"o<ment 0ontra0ts -*i0* -ere automati0a< terminated at
t*e e("ir< o+ t*e "eriod sti"uated t*erein, i.e., 24 Ae#ruar< &%%%.

T*e Court disa!rees.

D*ie t*is Court *as re0o!niKed t*e ,aidit< o+ +i(ed-term em"o<ment 0ontra0ts, it *as
0onsistent< *ed t*at t*is is t*e e(0e"tion rat*er t*an t*e !enera rue. More im"ortant<, a
+i(ed-term em"o<ment is ,aid on< under 0ertain 0ir0umstan0es. In Brent, t*e ,er< same 0ase
in,oEed #< res"ondents, t*e Court identi+ied se,era 0ir0umstan0es -*erein a fixed-term is
! esse!ti" !d !t#r" $$#rte!!%e, to -it:

Some +amiiar e(am"es ma< #e 0ited o+ em"o<ment 0ontra0ts -*i0* ma< #e neit*er +or
seasona -orE nor +or s"e0i+i0 "ro?e0ts, #ut to -*i0* a +i(ed term is an essentia and natura
a""urtenan0e: o,erseas em"o<ment 0ontra0ts, +or one, to -*i0*, -*ate,er t*e nature o+ t*e
en!a!ement, t*e 0on0e"t o+ re!uar em"o<ment -it* a t*at it im"ies does not a""ear e,er to *a,e
#een a""ied, Arti0e &'% o+ t*e 9a#or Code not-it*standin!F aso a""ointments to t*e "ositions o+
dean, assistant dean, 0oe!e se0retar<, "rin0i"a, and ot*er administrati,e o++i0es in edu0ationa
institutions, -*i0* are #< "ra0ti0e or tradition rotated amon! t*e +a0ut< mem#ers, and -*ere +i(ed
terms are a ne0essit< -it*out -*i0* no reasona#e rotation -oud #e "ossi#e. Simiar<, des"ite t*e
"ro,isions o+ Arti0e &'%, Poi0< Instru0tions No. ' o+ t*e Minister o+ 9a#or im"i0it< re0o!niKe t*at
0ertain 0om"an< o++i0ias ma< #e ee0ted +or -*at -oud amount to +i(ed "eriods, at t*e e("iration o+
-*i0* t*e< -oud *a,e to stand do-n, in "ro,idin! t*at t*ese o++i0ias, O( ( ma< ose t*eir ?o#s as
"resident, e(e0uti,e ,i0e-"resident or ,i0e "resident, etc. #e0ause t*e sto0E*oders or t*e #oard o+
dire0tors +or one reason or anot*er did not reee0t t*em.O
1&43

As a matter o+ +a0t, t*e Court, in its o+t->uoted de0ision in Brent, aso issued a stern
admonition t*at -*ere, +rom t*e 0ir0umstan0es, it is a""arent t*at t*e "eriod -as im"osed to
"re0ude t*e a0>uisition o+ tenuria se0urit< #< t*e em"o<ee, t*en it s*oud #e stru0E do-n as
#ein! 0ontrar< to a-, moras, !ood 0ustoms, "u#i0 order and "u#i0 "oi0<.
1&63

A+ter 0onsiderin! "etitionersI 0ontra0ts in t*eir entiret<, as -e as t*e 0ir0umstan0es
surroundin! "etitionersI em"o<ment at INNO)ATA, t*e Court is 0on,in0ed t*at t*e terms +i(ed
t*erein -ere meant on< to 0ir0um,ent "etitionersI ri!*t to se0urit< o+ tenure and are, t*ere+ore,
in,aid.

T*e 0ontra0ts o+ em"o<ment su#mitted #< res"ondents are *i!*< sus"e0t +or not on<
#ein! am#i!uous, #ut aso +or a""earin! to #e tam"ered -it*.

Petitioners ae!ed t*at t*eir em"o<ment 0ontra0ts -it* INNO)ATA #e0ame e++e0ti,e 24
Ae#ruar< 2888, and t*e +irst da< t*e< re"orted +or -orE -as on 26 Ae#ruar< 2888. T*e
Certi+i0ate o+ Em"o<ment issued #< t*e HRA) Mana!er o+ INNO)ATA aso indi0ated t*at
"etitioners Pri0e and )omin!o -ere em"o<ed #< INNO)ATA on 26 Ae#ruar< 2888.

Ho-e,er, res"ondents asserted #e+ore t*e 9a#or Ar#iter t*at "etitionersI em"o<ment
0ontra0ts -ere e++e0ti,e on< on 4 Se"tem#er 2888. T*e< ater on admitted in t*eir
Memorandum +ied -it* t*is Court t*at "etitioners -ere ori!ina< *ired on 24 Ae#ruar< 2888 #ut
t*e "ro?e0t +or -*i0* t*e< -ere em"o<ed -as 0om"eted #e+ore t*e e("iration o+ one
<ear. Petitioners -ere mere< re*ired on 4 Se"tem#er 2888 +or a ne- "ro?e0t. D*ie
res"ondents su#mitted em"o<ment 0ontra0ts -it* 4 Se"tem#er 2888 as #e!innin! date o+
e++e0ti,it<, it is o#,ious t*at in one o+ t*em, t*e ori!ina #e!innin! date o+ e++e0ti,it<, 24 Ae#ruar<
2888, -as mere< 0rossed out and re"a0ed -it* 4 Se"tem#er 2888. T*e 0o"ies o+ t*e
em"o<ment 0ontra0ts su#mitted #< "etitioners #ore simiar aterations.

T*e Court notes t*at t*e attem"t to 0*an!e t*e #e!innin! date o+ e++e0ti,it< o+
"etitionersI 0ontra0ts -as ,er< 0rude< done. T*e aterations are ,er< o#,ious, and t*e< *a,e
not #een initiaed #< t*e "etitioners to indi0ate t*eir assent to t*e same. I+ t*e 0ontra0ts -ere
tru< +i(ed-term 0ontra0ts, t*en a 0*an!e in t*e term or "eriod a!reed u"on is materia and
-oud aread< 0onstitute a no,ation o+ t*e ori!ina 0ontra0t.

Su0* modi+i0ation and denia #< res"ondents as to t*e rea #e!innin! date o+ "etitionersI
em"o<ment 0ontra0ts render t*e said 0ontra0ts am#i!uous. T*e 0ontra0ts t*emse,es state
t*at t*e< -oud #e e++e0ti,e unti 24 Ae#ruar< &%%% +or a "eriod o+ one <ear. I+ t*e 0ontra0ts
tooE e++e0t on< on 4 Se"tem#er 2888, t*en its "eriod o+ e++e0ti,it< -oud o#,ious< #e ess t*an
one <ear, or +or a "eriod o+ on< a#out +i,e mont*s.

O#,ious<, res"ondents -anted to maEe it a""ear t*at "etitioners -orEed +or INNO)ATA
+or a "eriod o+ ess t*an one <ear. T*e on< reason t*e Court 0an dis0ern +rom su0* a mo,e on
res"ondentsI "art is so t*at t*e< 0an "re0ude "etitioners +rom a0>uirin! re!uar status #ased on
t*eir em"o<ment +or one <ear. Nonet*eess, t*e Court em"*asiKes t*at it *as aread< +ound
t*at "etitioners s*oud #e 0onsidered re!uar em"o<ees o+ INNO)ATA #< t*e nature o+ t*e
-orE t*e< "er+ormed as +ormatters, -*i0* -as ne0essar< in t*e #usiness or trade o+
INNO)ATA. Hen0e, t*e tota "eriod o+ t*eir em"o<ment #e0omes irree,ant.

E,en assumin! t*at "etitionersI en!t* o+ em"o<ment is materia, !i,en res"ondentsI
mudded assertions, t*is Court ad*eres to its "ronoun0ement in Villanueva v. National Labor
Relations Commission,
1&'3
to t*e e++e0t t*at -*ere a 0ontra0t o+ em"o<ment, #ein! a 0ontra0t o+
ad*esion, is am#i!uous, an< am#i!uit< t*erein s*oud #e 0onstrued stri0t< a!ainst t*e "art<
-*o "re"ared it. T*e Court is, t*us, 0om"eed to 0on0ude t*at "etitionersI 0ontra0ts o+
em"o<ment #e0ame e++e0ti,e on 24 Ae#ruar< 2888, and t*at t*e< -ere aread< -orEin!
0ontinuous< +or INNO)ATA +or a <ear.

Aurt*er attem"tin! to e(onerate itse+ +rom an< ia#iit< +or ie!a dismissa, INNO)ATA
0ontends t*at "etitioners -ere "ro?e0t em"o<ees -*ose em"o<ment 0eased at t*e end o+ a
s"e0i+i0 "ro?e0t or undertaEin!. T*is 0ontention is s"e0ious and de,oid o+ merit.

In "hile# $inin% Cor&. v. National Labor Relations Commission,
1&83
t*e Court de+ined
@"ro?e0t em"o<eesB as t*ose -orEers *ired :2; +or a s"e0i+i0 "ro?e0t or undertaEin!, and -*erein
:&; t*e 0om"etion or termination o+ su0* "ro?e0t *as #een determined at t*e time o+ t*e
en!a!ement o+ t*e em"o<ee.

S0rutiniKin! "etitionersI em"o<ment 0ontra0ts -it* INNO)ATA, *o-e,er, +aied to re,ea
an< mention t*erein o+ -*at s"e0i+i0 "ro?e0t or undertaEin! "etitioners -ere *ired +or. At*ou!*
t*e 0ontra0ts made !enera re+eren0es to a @"ro?e0t,B su0* "ro?e0t -as neit*er named nor
des0ri#ed at a t*erein. T*e 0on0usion #< t*e Court o+ A""eas t*at "etitioners -ere *ired +or
t*e Eart*-e# "ro?e0t is not su""orted #< an< e,iden0e on re0ord. T*e one-<ear "eriod +or
-*i0* "etitioners -ere *ired -as sim"< +i(ed in t*e em"o<ment 0ontra0ts -it*out re+eren0e or
0onne0tion to t*e "eriod re>uired +or t*e 0om"etion o+ a "ro?e0t. More im"ortant<, t*ere is aso
a deart* o+ e,iden0e t*at su0* "ro?e0t or undertaEin! *ad aread< #een 0om"eted or terminated
to ?usti+< t*e dismissa o+ "etitioners. In +a0t, "etitioners ae!ed - and res"ondents +aied to
dis"ute t*at "etitioners did not -orE on ?ust one "ro?e0t, #ut 0ontinuous< -orEed +or a series o+
"ro?e0ts +or ,arious 0ients o+ INNO)ATA.

In $a%calas v. National Labor Relations Commission,
1$%3
t*e Court stru0E do-n a simiar
0aim #< t*e em"o<er t*erein t*at t*e dismissed em"o<ees -ere +i(ed-term and "ro?e0t
em"o<ees. T*e Court *ere reiterates t*e rue t*at a dou#ts, un0ertainties, am#i!uities and
insu++i0ien0ies s*oud #e reso,ed in +a,or o+ a#or. It is a -e-entren0*ed do0trine t*at in ie!a
dismissa 0ases, t*e em"o<er *as t*e #urden o+ "roo+. T*is #urden -as not dis0*ar!ed in t*e
"resent 0ase.

As a +ina o#ser,ation, t*e Court aso taEes note o+ se,era ot*er "ro,isions in
"etitionersI em"o<ment 0ontra0ts t*at dis"a< utter disre!ard +or t*eir se0urit< o+
tenure. )es"ite +i(in! a "eriod or term o+ em"o<ment, i.e., one <ear, INNO)ATA reser,ed t*e
ri!*t to "re-terminate "etitionersI em"o<ment under t*e +oo-in! 0ir0umstan0es:

4.2 ( ( ( Aurt*er s*oud t*e Com"an< *a,e no more need +or t*e EMP9OYEEIs ser,i0es
on %%&#!t &f %&m$"eti&! &f t'e $r&(e%t, a0E o+ -orE :si0; #usiness osses, introdu0tion o+ ne-
"rodu0tion "ro0esses and te0*ni>ues, -*i0* -i ne!ate t*e need +or "ersonne, and=or o,ersta++in!,
t*is 0ontra0t ma<#e $re-termi!ted #< t*e EMP9OYER u"on !i,in! o+ t*ree :$; da<s noti0e to t*e
em"o<ee.
( ( ( (

4.. T*e EMP9OYEE or t*e EMP9OYER ma< $re-termi!te t*is CONTRACT, )it' &r )it'&#t
%#se, #< !i,in! at east Ai+teen J :2/; 1da<3 noti0e to t*at e++e0t. Pro,ided, t*at su0* "re-termination
s*a #e e++e0ti,e on< u"on issuan0e o+ t*e a""ro"riate 0earan0e in +a,or o+ t*e said EMP9OYEE.
:Em"*asis ours.;

Pursuant to t*e a+ore->uoted "ro,isions, "etitioners *a,e no ri!*t at a to e("e0t se0urit<
o+ tenure, e,en +or t*e su""osed< one-<ear "eriod o+ em"o<ment "ro,ided in t*eir 0ontra0ts,
#e0ause t*e< 0an sti #e "re-terminated :2; u"on t*e 0om"etion o+ an uns"e0i+ied "ro?e0tF or
:&; -it* or -it*out 0ause, +or as on! as t*e< are !i,en a t*ree-da< noti0e. Su0* 0ontra0t
"ro,isions are re"u!nant to t*e #asi0 tenet in a#or a- t*at no em"o<ee ma< #e terminated
e(0e"t +or ?ust or aut*oriKed 0ause.

Under Se0tion $, Arti0e CMI o+ t*e Constitution, it is t*e "oi0< o+ t*e State to assure t*e
-orEers o+ se0urit< o+ tenure and +ree t*em +rom t*e #onda!e o+ un0ertaint< o+ tenure -o,en #<
some em"o<ers into t*eir 0ontra0ts o+ em"o<ment. T*is -as e(a0t< t*e "ur"ose o+ t*e
e!isators in dra+tin! Arti0e &'% o+ t*e 9a#or Code J to "re,ent t*e 0ir0um,ention #<
uns0ru"uous em"o<ers o+ t*e em"o<eeIs ri!*t to #e se0ure in *is tenure #< indis0riminate<
and 0om"ete< ruin! out a -ritten and ora a!reements in0onsistent -it* t*e 0on0e"t o+
re!uar em"o<ment.

In a, res"ondentsI insisten0e t*at it 0an e!a< dismiss "etitioners on t*e !round t*at
t*eir term o+ em"o<ment *as e("ired is untena#e. To reiterate, "etitioners, #ein! re!uar
em"o<ees o+ INNO)ATA, are entited to se0urit< o+ tenure. In t*e -ords o+ Arti0e &68 o+ t*e
9a#or Code:

ART. &68. Se0urit< o+ Tenure. J In 0ases o+ re!uar em"o<ment, t*e em"o<er s*a not terminate
t*e ser,i0es o+ an em"o<ee e(0e"t +or a ?ust 0ause or -*en aut*oriKed #< t*is Tite. An em"o<ee
-*o is un?ust< dismissed +rom -orE s*a #e entited to reinstatement -it*out oss o+ seniorit< ri!*ts
and ot*er "ri,ie!es and to *is +u #a0E-a!es, in0usi,e o+ ao-an0es, and to *is ot*er #ene+its or
t*eir monetar< e>ui,aent 0om"uted +rom t*e time *is 0om"ensation -as -it**ed +rom *im u" to t*e
time o+ *is a0tua reinstatement.

G< ,irtue o+ t*e +ore!oin!, an ie!a< dismissed em"o<ee is entited to reinstatement
-it*out oss o+ seniorit< ri!*ts and ot*er "ri,ie!es, -it* +u #a0E -a!es 0om"uted +rom t*e time
o+ dismissa u" to t*e time o+ a0tua reinstatement.

Considerin! t*at reinstatement is no on!er "ossi#e on t*e !round t*at INNO)ATA *ad
0eased its o"erations in 5une &%%& due to #usiness osses, t*e "ro"er a-ard is se"aration "a<
e>ui,aent to one mont* "a<
1$23
+or e,er< <ear o+ ser,i0e, to #e 0om"uted +rom t*e
0ommen0ement o+ t*eir em"o<ment u" to t*e 0osure o+ INNO)ATA.

T*e amount o+ #a0E -a!es a-arded to "etitioners must #e 0om"uted +rom t*e time
"etitioners -ere ie!a< dismissed unti t*e time INNO)ATA 0eased its o"erations in 5une
&%%&.
1$&3

Petitioners are +urt*er entited to attorne<Is +ees e>ui,aent to 2%L o+ t*e tota monetar<
a-ard *erein, +or *a,in! #een +or0ed to iti!ate and in0ur e("enses to "rote0t t*eir ri!*ts and
interests *erein.

Aina<, uness t*e< *a,e e(0eeded t*eir aut*orit<, 0or"orate o++i0ers are, as a !enera
rue, not "ersona< ia#e +or t*eir o++i0ia a0ts, #e0ause a 0or"oration, #< e!a +i0tion, *as a
"ersonait< se"arate and distin0t +rom its o++i0ers, sto0E*oders and mem#ers. At*ou!* as an
e(0e"tion, 0or"orate dire0tors and o++i0ers are soidari< *ed ia#e -it* t*e 0or"oration, -*ere
terminations o+ em"o<ment are done -it* mai0e or in #ad +ait*,
1$$3
in t*e a#sen0e o+ e,iden0e
t*at t*e< a0ted -it* mai0e or #ad +ait* *erein, t*e Court e(em"ts t*e indi,idua
res"ondents, 9eo Ra#an! and 5ane Na,arette, +rom an< "ersona ia#iit< +or t*e ie!a
dismissa o+ "etitioners.

*HERE+ORE, t*e Petition +or Re,ie- on Certiorari is GRANTED. T*e
)e0ision dated &/ Se"tem#er &%%4 and Resoution dated 2/ 5une &%%6 o+ t*e Court o+ A""eas
in CA-7.R. SP No. 6&68/ are *ere#< RE,ERSED and SET ASIDE. Res"ondent Innodata
P*ii""ines, In0.=Innodata Cor"oration is ORDEREDto "a< "etitioners C*err< 5. Pri0e, Ste"*anie
7. )omin!o, and 9oita Ar#iera: :a; se"aration "a<, in ieu o+ reinstatement, e>ui,aent to one
mont* "a< +or e,er< <ear o+ ser,i0e, to #e 0om"uted +rom t*e 0ommen0ement o+ t*eir
em"o<ment u" to t*e date res"ondent Innodata P*ii""ines, In0.=Innodata Cor"oration 0eased
o"erationsF :#; +u #a0E-a!es, 0om"uted +rom t*e time "etitionersI 0om"ensation -as -it**ed
+rom t*em u" to t*e time res"ondent Innodata P*ii""ines, In0.=Innodata Cor"oration 0eased
o"erationsF and :$; 2%L o+ t*e tota monetar< a-ard as attorne<Is +ees. Costs a!ainst
res"ondent Innodata P*ii""ines, In0.=Innodata Cor"oration.

SO ORDERED.
FIRST DIVISION
[G.R. No. 1045.5. M*r9: .9, 1996]
MARCOER MINING CORORATION, petitioner, vs. NATIONAL LABOR RELATIONS
COMMISSION *+3 NATIONAL MINES AN$ ALLIE$ 'OR%ERS; #NION <NAMA'#=
MI(>, respondents.
$ E C I S I O N
%A#NAN, J.:
Social <ustice and full protection to labor guaranteed b( the fundamental la) of this land is not
some romantic notion# high in rhetoric but lo) in substance* The case at bench pro'ides (et another
eEample of harmoni.ing and balancing the Jright of labor to its <ust share in the fruits of production
and the right of enterprises to reasonable returns on in'estments# and to eEpansion and gro)th*K
3$4
In this petition for certiorari and prohibition under Rule $% of the Re'ised Rules of Court#
-arcopper -ining Corporation impugns the decision rendered b( the National Labor Relations
Commission 7NLRC8 on $" No'ember $%%$ in R1/IV/$!/!;""/"" dismissing petitionerIs appeal#
and the resolution issued b( the said tribunal dated != December $%%$den(ing petitionerIs motion
for reconsideration*
There is no disagreement as to the follo)ing facts5
On !9 ugust $%"&# -arcopper -ining Corporation# a corporation dul( organi.ed and eEisting
under the la)s of the ,hilippines# engaged in the business of mineral prospecting# eEploration and
eEtraction# and pri'ate respondent N-+C/-IF# a labor federation dul( organi.ed and registered
)ith the Department of Labor and 6mplo(ment 7DOL68# to )hich the -arcopper 6mplo(ees Cnion
7the eEclusi'e bargaining agent of all rank/and/file )orkers of petitioner8 is affiliated# entered into a
Collecti'e 1argaining greement 7C18 effecti'e from $ -a( $%"& until 9= pril $%"@*
Sec* $# rt* V of the said Collecti'e 1argaining greement pro'ides5
Se&*%n /0 T-e COMPANY a")ee# * ")an* "ene)al 1a"e %n&)ea#e * all e2(l,ee# 1%*-%n *-e =a)"a%n%n" +n%*
a# !ll1#.
/ffectivity )ncrease per day on
the Basic 0age
Ma, /,/>:; ;R
Ma, /,/>:4 ;R
I* %# e<()e##l, +nde)#*d *-a* *-%# 1a"e %n&)ea#e #-all =e e<&l+#%5e ! an, %n&)ea#e %n *-e 2%n%2+2 1a"e
andL) 2anda*), l%5%n" all1an&e *-a* 2a, =e ()2+l"a*ed d+)%n" *-e l%!e ! *-%# A")ee2en*0
3!4
,rior to the eEpiration of the aforestated greement# on !; Bul( $%"?# petitioner and pri'ate
respondent eEecuted a -emorandum of greement 7-O8 )herein the terms of the C1#
specificall( on matters of )age increase and facilities allo)ance# )ere modified as follo)s5
/0 T-e COMPANY -e)e=, ")an*# a 1a"e %n&)ea#e ! /BR ! *-e =a#%& )a*e * all e2(l,ee# and 1)@e)#
1%*-%n *-e =a)"a%n%n" +n%*# $#%&' a# !ll1#.
$a' 12 e!!e&*%5e Ma, /,/>:40
T-%# 1%ll 2ean *-a* *-e 2e2=e)# ! *-e =a)"a%n%n" +n%* 1%ll "e* an e!!e&*%5e %n&)ea#e ! /BR !)2 Ma, /,
/>:40
$=' ;R e!!e&*%5e Ma, /,/>:?0
70 T-e COMPANY -e)e=, ")an*# an %n&)ea#e ! *-e !a&%l%*%e# all1an&e !)2 P;B0BB * P/BB0BB (e) 2n*-
e!!e&*%5e Ma, /, />:40
394
In compliance )ith the amended C1# petitioner implemented the initial %& )age increase due
on $ -a( $%"?*
3&4
On $ Bune $%"@# 6Eecuti'e Order 76*O*8 No* $@" )as promulgated mandating the integration of
the cost of li'ing allo)ance under +age Orders Nos* $# !# 9# ; and ? into the basic )age of )orkers#
its effecti'it( retroacti'e to $ -a( $%"@*
3;4
Conse:uentl(# effecti'e on $ -a( $%"@# the basic )age rate
of petitionerIs laborers categori.ed as non/agricultural )orkers )as increased b( ,%*== per da(*
3?4
,etitioner implemented the second fi'e percent (%&! )age increase due on $ -a( $%"@ and
thereafter added the integrated COL*
3@4
,ri'ate respondent# ho)e'er# assailed the manner in )hich the second )age increase )as
effected* It argued that the COL should first be integrated into the basic )age before the ;N )age
increase is computed*
3"4
Conse:uentl(# on $; December $%""# the union filed a complaint for underpa(ment of )ages
before the Regional rbitration 1ranch IV# Aue.on Cit(*
On !& Bul( $%"%# the Labor rbiter promulgated a decision in fa'or of the union* The dispositi'e
part reads# thus5
WHEREFORE, &n#%#*en* 1%*- *-e *en) -e)e!, D+d"2en* %# )ende)ed d%)e&*%n" )e#(nden* &2(an, * (a,
*-e 1a"e d%!!e)en*%al# d+e %*# )an@AandA!%le 1)@e)# )e*)a&*%5e * / Ma, />:?0
SO ORDERED0
3%4
The Labor rbiter ruled in this )ise5
F%)#* and !)e2#*, *-e 1)%**en %n#*)+2en* and *-e %n*en*%n ! *-e (a)*%e# 2+#* =e =)+"-* * *-e !)e0 And
*al@%n" ! %n*en*%n, 1e &nD+)e * #-a)( !&+# *-e ()5%#%n e2=##ed %n Se&*%n /, A)*%&le V ! *-e &lle&*%5e
a")ee2en*, 5%I.
<<< <<< <<<0
I* %# e<()e##l, +nde)#*d that this wage increase shall %e e3clusive of increase in the minimum wage and4or
mandatory living allowance that may %e promulgated during the life of this (greement0 $I*al%&# +)#0'
T-e !)e"%n" (-)a#e al=e%* %nn&++#l, !)a2ed !!e)# *-e &+e0 T-%# +#-e)# +# * *-e %nne) #an&*+2 ! 1-a*
)eall, 1a# *-e %n*en*%n ! *-e (a)*%e# * *-e &n*)a&*0 T)ead%n" aln" %*# l%ne#, %* =e&2e# )ead%l, d%#&e)n%=le
*-a* *-%# ()*%n ! *-e &n*)a&* %# *-e M#*(Al&@N "a*e ) @n1n %n %*# *e&-n%&al *e)2 a# *-e MnnA&-a)"ea=%l%*,N
&la+#e0 T-e)e &an =e n C+%==l%n" *-a* n *-e #*)en"*- ! *-%# ()5%#%n, *-e 1a"eLall1an&e ")an*ed +nde) *-%#
a&&)d &ann* =e &)ed%*ed * #%2%la) !)2 ! =ene!%* *-a* 2a, =e *-e)ea!*e) )da%ned =, *-e "5e)n2en* *-)+"-
le"%#la*%n0 T-a* *-e (a)*%e# *-e)e!)e 1e)e &n#&%+#l, a1a)e a* *-e *%2e ! *-e &n&l+#%n ! *-e a")ee2en* !
*-e ne5e)Aend%n" )%#e %n *-e &#* ! l%5%n" %# a l"%&al &)lla),0 And 1-%le *-%# +(1a)d *)end 2a, n* =e a
1el&2e (-en2enn, *-e)e 1a# *-e %n*en*%n * ,%eld and &2(l, %n *-e e5en* ! an %2(#%*%n0 O! &+)#e,
*-e)e &ann* l%@e1%#e =e an, )%5al), *-a* %! *-e E<e&+*%5e O)de) 1e)e * )e*)a&* * 7 Ma, />:? ) a da, a!*e)
*-e la#* &n*)a&*+al %n&)ea#e, *-%# C+e#*%n 1%ll n* a)%#e0 I* %# %n *-%# #en#e ! !a%)ne## *-a* 1e &ann* all1 *-%#
Mne $/' da,N * =e an %n#+la*%n" 2ed%+2 * den, *-e 1)@e)# *-e =ened%&*%n end1ed =, E<e&+*%5e O)de)
N0 /?:0
3$=4
Pe*%*%ne) a((ealed *-e La=) A)=%*e)K# de&%#%n and n /: N5e2=e) />>/ *-e NLRC )ende)ed %*# de&%#%n
#+#*a%n%n" *-e La=) A)=%*e)K# )+l%n"0 T-e d%#(#%*%5e ()*%n #*a*e#.
WHEREFORE, %n 5%e1 ! *-e !)e"%n", *-e De&%#%n ! *-e La=) A)=%*e) %# -e)e=, AFFIRMED and *-e
a((eal !%led %# -e)e=, DISMISSED !) la&@ ! 2e)%*0
SO ORDERED0
3$$4
The NLRC declared5
< < < In&)e2en*# * *-e la=)e)#K !%nan&%al ")a*%!%&a*%n, =e *-e, %n *-e !)2 ! #ala), %n&)ea#e# ) &-an"e# %n
*-e #ala), #&ale a)e a%2ed a* ne *-%n" A%2()5e2en* ! *-e e&n2%& ()ed%&a2en* ! *-e la=)e)#0 A# #+&-,
*-e, #-+ld =e 5%e1ed %n *-e l%"-* ! *-e S*a*eK# a51ed (l%&, * ()*e&* la=)0 T-+#, -a5%n" en*e)ed %n* an
a")ee2en* 1%*- %*# e2(l,ee#, an e2(l,e) 2a, n* =e all1ed * )ene"e n %*# =l%"a*%n +nde) a &lle&*%5e
=a)"a%n%n" a")ee2en* #-+ld, a* *-e #a2e *%2e, *-e la1 ")an*# *-e e2(l,ee# *-e #a2e ) =e**e) *e)2# and
&nd%*%n# ! e2(l,2en*0 E2(l,ee =ene!%*# de)%5ed !)2 la1 a)e e<&l+#%5e ! =ene!%*# a))%5ed a* *-)+"-
ne"*%a*%n and a")ee2en* +nle## *-e)1%#e ()5%ded =, *-e a")ee2en* %*#el! ) =, la10
$Me,&a+a,an Clle"e v. Hn0 F)an@l%n N0 D)%ln, /:; SCRA ;B'0
3$!4
,etitionerIs motion for reconsideration )as denied b( the NLRC in its resolution dated !=
December $%%$*
In the present petition# -arcopper challenges the NLRC decision on the follo)ing grounds5
I
PUBLIC RESPONDENT NLRC ACTED WITH GRAVE ABUSE OF DISCRETION IN AFFIRMING THE
DECISION OF LABOR ARBITER JOAQUIN TANODRA DIRECTING MARCOPPER TO PAY WAGE
DIFFERENTIALS DUE ITS RANPAANDAFILE EMPLOYEES RETROACTIVE TO / MAY />:?
CONSIDERING THAT SANS EO /?:, THE FUNDAMENTAL MEANING OF THE BASIC WAGE IS
CLEARLY DIFFERENT FROM, AND DOES NOT INCLUDE THE COLA AT THE TIME THE CBA WAS
ENTERED INTO0 THUS, PUBLIC RESPONDENTKS READING OF THE CBA, AS AMENDED BY THE
MEMORANDUM OF AGREEMENT DATED 7; JULY />:4, ULTIMATELY DISREGARDED THE
ORDINARY MEANING OF THE PHRASE QBASIC WAGE,K OTHERWISE INTENDED BY THE
PARTIES DURING THE TIME THE CBA WAS EGECUTED0
II
THE LABOR ARBITER AND PUBLIC RESPONDENT NLRCKS RELIANCE ON THE LAST
PARAGRAPH OF SECTION /, ARTICLE V OF THE CBA WHICH STATES. QIT IS EGPRESSLY
UNDERSTOOD THAT THIS WAGE INCREASE SHALL BE EGCLUSIVE OF ANY INCREASE IN THE
MINIMUM WAGE ANDLOR MANDATORY LIVING ALLOWANCE THAT MAY BE PROMULGATED
DURING THE LIFE OF THIS AGREEMENTK IS MISPLACED AND WITHOUT BASIS BECAUSE SAID
PROVISION HARDLY OFFERS A HINT AS TO WHAT BASIC WAGE THE PARTIES HAD IN MIND
AT THE TIME THEY EGECUTED THE CBA AS AMENDED BY THE MEMORANDUM OF
AGREEMENT0
III
PETITIONER COMPUTED THE ;R WAGE INCREASE BASED ON THE UNINTEGRATED BASIC
WAGE IN ACCORDANCE WITH THE INTENT AND TERMS OF THE CBA, AS AMENDED BY THE
MEMORANDUM OF AGREEMENT0 THIS WAS IN FULL ACCORD AND IN FAITHFUL
COMPLIANCE WITH EO /?:0 HENCE, PETITIONER DID NOT COMMIT ANY UNDERPAYMENT0
I/
THE DOCTRINE OF LIBERAL INTERPRETATION IN FAVOR OF LABOR IN CASE OF DOUBT IS
NOT APPLICABLE TO THE INSTANT CASE0
3$94
Stripped of the non/essentials# the :uestion for our resolution is )hat should be the basis for the
computation of the C1 increase# the basic )age )ithout the COL or the so/called JintegratedK
basic )age )hich# b( mandate of 6*O* No* $@"# includes the COL*
It is petitionerIs contention that the basic )age referred to in the C1 pertains to the
JunintegratedK basic )age* ,etitioner maintains that the rules on interpretation of contracts#
particularl( rt* $9@$ of the Ne) Ci'il Code )hich states that5
A)*0 /9?/0 In )de) * D+d"e *-e %n*en*%n ! *-e &n*)a&*%n" (a)*%e#, *-e%) &n*e2()ane+# and #+=#eC+en* a&*#
#-all =e ()%n&%(all, &n#%de)ed0
should go'ern* ccordingl(# appl(ing the afore:uoted pro'ision in the case at bench# petitioner
concludes that it )as clearl( not the intention of the parties 7petitioner and pri'ate respondent8 to
include the COL in computing the C1G-O mandated increase since the -O )as entered into a
(ear before 6*O* No* $@" )as enacted e'en though their effecti'it( dates coincide* In other )ords#
the situation JcontemporaneousK to the eEecution of the amendator( -O )as that there )as (et no
la) re:uiring the integration of the COL into the basic )age*
3$&4
,etitioner# therefore# cannot be
compelled to undertake an obligation it ne'er assumed or contemplated under the C1 or -O*
Siding )ith the petitioner# the Solicitor Deneral opines that for the purpose of compl(ing )ith the
obligations imposed b( the C1# the integrated COL should not be considered due to the
eEclusi'it( of the benefits under the said C1 and 6*O* No* $@"* 0e eEplains thus5
A &lle&*%5e =a)"a%n%n" a")ee2en* %# a &n*)a&*+al =l%"a*%n0 I* %# d%#*%n&* !)2 an =l%"a*%n %2(#ed =, la10
T-e *e)2# and &nd%*%n# ! a CBA &n#*%*+*e *-e la1 =e*1een *-e (a)*%e#0 T-+#, e2(l,ee =ene!%*# de)%5ed
!)2 e%*-e) *-e la1 ) a &n*)a&* #-+ld =e *)ea*ed a# d%#*%n&* and #e(a)a*e !)2 ea&- *-e)0
$Me,&a+a,an Clle"e 5#0 D)%ln, #+()a0'
<<< <<< <<<0
Ve), &lea)l,, *-e CBA and E0O0 /?: ()5%ded !) *-e e<&l+#%5ene## ! *-e =ene!%*# * =e "%5en ) a1a)ded *
*-e e2(l,ee# ! (e*%*%ne)0 T-+#, 1-en (e*%*%ne) &2(+*ed *-e ;R 1a"e %n&)ea#e =a#ed n *-e +n%n*e")a*ed
=a#%& 1a"e, %* &2(l%ed 1%*- %*# &n*)a&*+al =l%"a*%n# +nde) *-e CBA0 W-en %* *-e)ea!*e) %n*e")a*ed *-e
COLA %n* *-e =a#%& 1a"e, %* &2(l%ed al# 1%*- *-e 2anda*e ! E0O0 /?:0 Pe*%*%ne), *-e)e!)e, &2(l%ed 1%*-
%*# &n*)a&*+al =l%"a*%n# %n *-e CBA a# 1ell a# 1%*- *-e le"al 2anda*e ! *-e la10 Cn#eC+en*l,, (e*%*%ne) %#
n* "+%l*, ! +nde)(a,2en*0
T !ll1 *-e *-e), ! ()%5a*e )e#(nden*, *-a* %# A * %n*e")a*e !%)#* *-e COLA %n* *-e =a#%& 1a"e and
*-e)ea!*e) &2(+*e *-e 12 1a"e %n&)ea#e *-e)e!)2, 1+ld 5%la*e *-e Me<&l+#%5ene##N ! *-e =ene!%*# ")an*ed
+nde) *-e CBA and +nde) E0O0 /?:0
3$;4
,ri'ate respondent counters b( asserting that the purpose# nature and essence of C1
negotiation is to obtain )age increases and benefits o'er and abo'e )hat the la) pro'ides and that
the principle of non/diminution of benefits should pre'ail*
The NLRC# )hich filed its o)n comment# like)ise# made the follo)ing assertions5
< < < H1e5e), * #*a*e +*)%"-* *-a* *-e (a)*%e# %n*ended *-e =a#%& 1a"e * )e2a%n %n5a)%a=le e5en a!*e) *-e
ad5en* ! EO /?: %# +n!+nded and ()e#+2(*++# a &la%2 a# #+&- %ne5%*a=l, 1)@# * *-e +*2#* d%#ad5an*a"e
! *-e 1)@e)# and )+n# &+n*e) * *-e &n#*%*+*%nal "+a)an*ee ! a!!)d%n" ()*e&*%n * la=)0 E5%den*l,, *-e
)a*%nale !) *-e %n*e")a*%n ! *-e COLA 1%*- *-e =a#%& 1a"e 1a# ()%2a)%l, * %n&)ea#e *-e =a#e 1a"e !)
(+)(#e# ! &2(+*a*%n ! #+&- %*e2# a# 5e)*%2e and ()e2%+2 (a,, !)%n"e =ene!%*#, e*&0 T ad(* *-e
#*a*e2en* and &la%2 ! *-e (e*%*%ne) 1+ld *-en )ed+nd * de()%5%n" *-e 1)@e)# ! *-e !+ll =ene!%*# *-e la1
%n*ended !) *-e2, 1-%&- %n *-e !%nal anal,#%# 1a# #lel, !) *-e (+)(#e ! alle5%a*%n" *-e%) (l%"-* d+e * *-e
&n*%n++# +nd+e -a)d#-%( *-e, #+!!e) &a+#ed =, *-e e5e) e#&ala*%n" ()%&e# ! ()%2e &22d%*%e#0
3$?4
+e rule for the respondents*
The principle that the C1 is the la) bet)een the contracting parties stands strong and true*
3$@4
0o)e'er# the present contro'ers( in'ol'es not merel( an interpretation of C1 pro'isions* -ore
importantl(# it re:uires a determination of the effect of an eEecuti'e order on the terms and the
conditions of the C1* This is# and should be# the focus of the instant case*
It is unnecessar( to del'e too much on the intention of the parties as to )hat the( allegedl(
meant b( the term Jbasic )ageK at the time the C1 and -O )ere eEecuted because there is no
:uestion that as of $ -a( $%"@# as mandated b( 6*O* No* $@"# the basic )age of )orkers# or the
statutor( minimum )age# )as increased )ith the integration of the COL* s of said date# then# the
term Jbasic )ageK includes the COL* This is )hat the la) ordains and to )hich the collecti'e
bargaining agreement of the parties must conform*
,etitionerIs arguments e'entuall( lose steam in the light of the fact that compliance )ith the la)
is mandator( and be(ond contractual stipulation b( and bet)een the partiesF conse:uentl(# )hether
or not petitioner intended the basic )age to include the COL becomes immaterial* There is
e'identl( nothing to construe and interpret because the la) is clear and
unambiguous* Cnfortunatel( for petitioner# said la)# b( some uncann( coincidence# retroacti'el(
took effect on the same date the C1 increase became effecti'e* Therefore# there cannot be an(
doubt that the computation of the C1 increase on the basis of the JintegratedK )age does not
constitute a 'iolation of the C1*
,etitionerIs contention that under the Rules Implementing 6*O* No* $@"# the definition of the
term /Kbasic )ageK has remained unchanged is off the mark since said definition eEpressl( allo)s
integration of monetar( benefits into the regular pa( of emplo(ees5
C-a(*e) /0 De!%n%*%n ! Te)2# and C5e)a"e0
Se&*%n /0 De!%n%*%n ! Te)2#0
<<< <<< <<<0
$D' MBa#%& Wa"eN 2ean# all )e"+la) )e2+ne)a*%n ) ea)n%n"# (a%d =, an e2(l,e) !) #e)5%&e# )ende)ed n
n)2al 1)@%n" da,# and -+)# %ut does not include cost5of5 living allowances, profit5sharing payments,
premium payments, 67th month pay, and other monetary %enefits which are not considered as part of or
integrated into the regular salary of the employee on the date the 8rder %ecame effective. $I*al%&# +)#0'
+hat 6*O* No* $@" did )as eEactl( to integrate the COL under +age Orders Nos* $# !#
9# % and ? into the basic pa( so as to increase the statutor( dail( minimum )age* Section ! of the
Rules is :uite eEplicit5
Se&*%n 70 A2+n* * =e In*e")a*ed0 A E!!e&*%5e n *-e da*e# #(e&%!%ed, a# a )e#+l* ! *-e %n*e")a*%n, *-e =a#%&
1a"e )a*e ! &5e)ed 1)@e)# #-all =e %n&)ea#ed =, *-e !ll1%n" a2+n*#. $I*al%&# +)#0'
<<< <<< <<<0
Integration of monetar( benefits into the basic pa( of )orkers is not a ne) method of increasing
the minimum )age*
3$"4
1ut e'en so# )e are still guided b( our ruling in 'avao Integrated Port
Stevedoring Services v. ()ar*ue+,
3$%4
)hich )e herein reiterate5
+hile the terms and conditions of the C1 constitute the la) bet)een the parties# it is not#
ho)e'er# an ordinar( contract to )hich is applied the principles of la) go'erning ordinar(
contracts* C1# as a labor contract )ithin the contemplation of rticle $@== of the Ci'il Code of
the ,hilippines )hich go'erns the relations bet)een labor and capital# is not merel( contractual in
nature but impressed )ith public interest# thus# it must (ield to the common good* s such# it must
be construed liberall( rather than narro)l( and technicall(# and the courts must place a practical and
realistic construction upon it# gi'ing due consideration to the conteEt in )hich it is negotiated and
purpose )hich it is intended to ser'e*
Finall(# petitioner misinterprets the declaration of the Labor rbiter in the assailed decision that
J)hen the pendulum of <udgment s)ings to and fro and the forces are e:ual on both sides# the same
must be stilled in fa'or of labor*K +hile petitioner ackno)ledges that all doubts in the interpretation of
the Labor Code shall be resol'ed in fa'or of labor#
3!=4
it insists that )hat is in'ol'ed/here is the
amended C1 )hich is essentiall( a contract bet)een pri'ate persons* +hat petitioner has lost
sight of is the a'o)ed polic( of the State# enshrined in our Constitution# to accord utmost protection
and <ustice to labor# a polic(# )e are# like)ise# s)orn to uphold*
In Pili##ine ,elegra# - ,ele#one Cor#oration v. NLRC#
3!$4
)e categoricall( stated that5
W-en &n!l%&*%n" %n*e)e#*# ! la=) and &a(%*al a)e * =e 1e%"-ed n *-e #&ale# ! #&%al D+#*%&e, *-e -ea5%e)
%n!l+en&e ! *-e la**e) #-+ld =e &+n*e)A=alan&ed =, #,2(a*-, and &2(a##%n *-e la1 2+#* a&&)d *-e
+nde)()%5%le"ed 1)@e)0
Like)ise# in ,erminal .acilities and Services Cor#oration v. NLRC#
3!!4
)e declared5
An, d+=* &n&e)n%n" *-e )%"-*# ! la=) #-+ld =e )e#l5ed %n %*# !a5) (+)#+an* * *-e #&%al D+#*%&e (l%&,0
The purpose of 6*O* No* $@" is to impro'e the lot of the )orkers co'ered b( the said statute*
+e are bound to ensure its fruition*
'"ERE(ORE# premises considered# the petition is hereb( DIS-ISS6D*
SO OR$ERE$.
Padilla, Bellosillo, Vitug, and Hermosisima, Jr., concur.

Re$#-"i% &f t'e P'i"i$$i!es
S#$reme C&#rt
M!i"

SECOND DIVISION

MANOLO A. PEAFLOR,
Petitioner,


,ersus -



O.TDOOR CLOTHING
MAN.+ACT.RING
CORPORATION,NATHANIEL T. SY+.,
Preside!t, MEDYLENE M. DEMOGENA,
+i!!%e M!/er, !d PA.L .. LEE,
C'irm!,
Res"ondents.
G.R. No. 177114


Present:

CARPIO, J., Chair&erson,
GRION,
)E9 CASTI99O,
AGA), and
PEREZ, JJ.


Promu!ated:


5anuar< &2, &%2%

x ------------------------------------------------------------------------------------------x




D E C I S I O N


BRION, J.:


Petitioner Manoo A. PePa+or :"e'alor; seeEs t*e re,ersa o+ t*e Court o+ A""eas :C(;
de0ision
123
dated )e0em#er &8, &%%4 and its resoution
1&3
datedMar0* 2., &%%6, t*rou!* t*e
"resent "etition +or re,ie- on certiorari +ied under Rue ./ o+ t*e Rues o+ Court. T*e assaied
CA de0ision a++irmed t*e Se"tem#er &., &%%& de0ision
1$3
o+ t*e Nationa 9a#or Reations
Commission :NLRC; t*at in turn re,ersed t*e Au!ust 2/, &%%2 de0ision
1.3
o+ t*e 9a#or Ar#iter.
1/3


THE +ACT.AL ANTECEDENTS


PePa+or -as *ired on Se"tem#er &, 2888 as "ro#ationar< Human Resour0e )e"artment
:)R*; Mana!er o+ res"ondent Outdoor Cot*in! Manu+a0turin! Cor"oration :+utdoor
Clothin% or the com&an,;. As HR) *ead, PePa+or -as e("e0ted to :2; se0ure and maintain t*e
ri!*t >uait< and >uantit< o+ "eo"e needed #< t*e 0om"an<F :&; maintain t*e *armonious
reations*i" #et-een t*e em"o<ees and mana!ement in a roe t*at su""orts or!aniKationa
!oas and indi,idua as"irationsF and :$; re"resent t*e 0om"an< in a#or 0ases or
"ro0eedin!s. T-o sta++ mem#ers -ere assi!ned to -orE -it* *im to assist *im in undertaEin!
t*ese +un0tions.

PePa+or 0aimed t*at *is reations*i" -it* Outdoor Cot*in! -ent -e durin! t*e +irst +e-
mont*s o+ *is em"o<mentF *e desi!ned and 0reated t*e 0om"an<Is Poi0< Manua, Personne
Hand#ooE, 5o# E("e0tations, and Or!aniKationa Set-U" durin! t*is "eriod. His -oes #e!an
-*en t*e 0om"an<Is Mi0e President +or O"erations, Ed!ar 9ee :Lee;, e+t t*e 0om"an< a+ter a
#i! +i!*t #et-een 9ee and C*ie+ Cor"orate O++i0er Nat*anie S<+u :S,u;. Ge0ause o+ *is 0ose
asso0iation -it* 9ee, PePa+or 0aimed t*at *e -as amon! t*ose -*o #ore S<+uIs ire.

D*en Outdoor Cot*in! #e!an undertaEin! its ae!ed do-nsiKin! "ro!ram due to
ne!ati,e #usiness returns, PePa+or ae!ed t*at *is de"artment *ad #een sin!ed out. On t*e
"rete(t o+ retren0*ment, PePa+orIs t-o sta++ mem#ers -ere dismissed, ea,in! *im as t*e on<
mem#er o+ Outdoor Cot*in!Is HR) and 0om"ein! *im to "er+orm a "ersonne-reated
-orE. He -orEed as a one-man de"artment, 0arr<in! out a 0eri0a, administrati,e and iaison
-orEF *e "ersona< -ent to ,arious !o,ernment o++i0es to "ro0ess t*e 0om"an<Is "a"ers.

D*en an Outdoor Cot*in! em"o<ee, 9<nn Padia :"adilla;, su++ered in?uries in a
#om#in! in0ident, t*e 0om"an< re>uired PePa+or to attend to *er *os"itaiKation needsF *e *ad
to -orE outside o++i0e "remises to undertaEe t*is tasE. As *e -as a0tin! on t*e 0om"an<Is
orders, PePa+or 0onsidered *imse+ to #e on o++i0ia #usiness, #ut -as sur"rised -*en t*e
0om"an< dedu0ted si( da<sI saar< 0orres"ondin! to t*e time *e assisted Padia. A00ordin! to
Ainan0e Mana!er Med<ene )emo!ena :*emo%ena;, *e +aied to su#mit *is tri" ti0Eet, #ut
PePa+or #eied t*is 0aim as a tri" ti0Eet -as re>uired on< -*en a 0om"an< ,e*i0e -as used
and *e did not use an< 0om"an< ,e*i0e -*en *e attended to *is o++-"remises -orE.
143

A+ter PePa+or returned +rom *is +ied -orE on Mar0* 2$, &%%%, *is o++i0emates in+ormed
*im t*at -*ie *e -as a-a<, S<+u *ad a""ointed Nat*anie Guenao#ra :Buenaobra; as t*e ne-
HR) Mana!er. T*is in+ormation -as 0on+irmed #< S<+uIs memorandum o+ Mar0* 2%, &%%% to
t*e entire o++i0e statin! t*at Guenao#ra -as t*e 0on0urrent HR) and A00ountin! Mana!er.
163
PePa+or -as sur"rised #< t*e ne-sF *e aso +et #etra<ed and dis0oura!ed. He tried to taE
to S<+u to 0ari+< t*e matter, #ut -as una#e to do so. PePa+or 0aimed t*at under t*ese
0ir0umstan0es, *e *ad no o"tion #ut to resi!n. He su#mitted a etter to S<+u de0arin! *is
irre,o0a#e resi!nation +rom *is em"o<ment -it* Outdoor Cot*in! e++e0ti,e at t*e 0ose o+
o++i0e *ours on Mar0* 2/, &%%%.
1'3

PePa+or t*en +ied a 0om"aint +or ie!a dismissa -it* t*e a#or ar#iter, 0aimin! t*at *e
*ad #een 0onstru0ti,e< dismissed. He in0uded in *is 0om"aint a "ra<er +or reinstatement and
"a<ment o+ #a0E-a!es, ie!a< dedu0ted saaries, dama!es, attorne<Is +ees, and ot*er
monetar< 0aims.

Outdoor Cot*in! denied PePa+orIs ae!ation o+ 0onstru0ti,e dismissa. It "osited instead
t*at PePa+or *ad ,ountari< resi!ned +rom *is -orE. Contrar< to PePa+orIs statement t*at *e
*ad #een dismissed +rom em"o<ment u"on S<+uIs a""ointment o+ Guenao#ra as t*e ne- HR)
Mana!er on Mar0* 2%, &%%%, PePa+or *ad in +a0t 0ontinued -orEin! +or t*e 0om"an< unti *is
resi!nation on Mar0* 2/, &%%%. T*e 0om"an< 0ited as e,iden0e t*e se0urit< re"ort t*at
PePa+or *imse+ "re"ared and si!ned on Mar0* 2$, &%%%.
183


Outdoor Cot*in! dis0aimed ia#iit< +or an< o+ PePa+orIs monetar< 0aims. Sin0e
PePa+or *ad ,ountari< resi!ned, Outdoor Cot*in! ae!ed t*at *e -as not entited to an<
#a0E-a!es and dama!es. T*e 0om"an< iEe-ise denied maEin! an< ie!a dedu0tion +rom
PePa+orIs saar<F -*ie dedu0tions -ere made, t*e< -ere due to PePa+orIs +aiure to re"ort +or
-orE durin! t*e dates t*e 0om"an< >uestioned. As a "ro#ationar< em"o<ee, *e -as not <et
entited to an< ea,e 0redit t*at -oud o++set *is a#sen0es.

In *is Au!ust 2/, &%%2 de0ision, t*e a#or ar#iter +ound t*at PePa+or *ad #een ie!a<
dismissed.
12%3
Outdoor Cot*in! -as 0onse>uent< ordered to reinstate PePa+or to *is +ormer or
to an e>ui,aent "osition, and to "a< *im *is ie!a< dedu0ted saar< +or si( da<s, "ro"ortionate
2$
t*
mont* "a<, attorne<Is +ees, mora and e(em"ar< dama!es.

Outdoor Cot*in! a""eaed t*e a#or ar#iterIs de0ision -it* t*e N9RC. It insisted t*at
PePa+or *ad not #een 0onstru0ti,e< dismissed, 0aimin! t*at PePa+or tendered *is resi!nation
on Mar0* 2, &%%% #e0ause *e sa- no +uture -it* t*e 0or"oration due to its dire +inan0ia
standin!. S<+u ae!ed t*at *e -as 0om"eed to a""oint Guenao#ra as 0on0urrent HR)
Mana!er t*rou!* a memorandum dated Mar0* 2, &%%% to 0o,er t*e "osition t*at PePa+or -oud
soon ,a0ate.
1223
T*e a""ointment -as aso made to address t*e "ersonne matters t*at *ad to
#e taEen 0ared o+ -*ie PePa+or -as on unaut*oriKed ea,e. In0identa<, Outdoor Cot*in!
ae!ed t*at PePa+or *ad aread< #een !i,en t-o noti0es, on Mar0* 4 and 22, &%%% :a#sen0e
-it*out o++i0ia ea,e memoranda or the (-+L memoranda;, +or *is unaut*oriKed a#sen0es. In
a memorandum dated Mar0* $, &%%% addressed to S<+u, Guenao#ra a00e"ted t*e a""ointment.
12&3

PePa+or 0ontested S<+uIs Mar0* 2, &%%% memorandum, Guenao#raIs Mar0* $,
&%%% memorandum, and t*e ADO9 memoranda, 0aimin! t*ese "ie0es o+ e,iden0e -ere
+a#ri0ated and -ere ne,er "resented #e+ore t*e a#or ar#iter. He "ointed out t*at not*in! in t*is
resi!nation etter indi0ated t*at it -as su#mitted to and re0ei,ed #< S<+u on Mar0* 2, &%%%. He
0aimed t*at it -as su#mitted on Mar0* 2/, &%%%, t*e same date *e made *is resi!nation
e++e0ti,e. T*e ADO9 memoranda 0oud not #e reied on, as *e -as ne,er +urnis*ed 0o"ies o+
t*ese. Moreo,er, *e 0oud not #e on "roon!ed a#sen0e -it*out o++i0ia ea,e, as *is residen0e
-as ?ust a +e- meters a-a< +rom t*e o++i0e.

T*e N9RC a""arent< +ound Outdoor Cot*in!Is su#mitted memoranda su++i0ient to
o,erturn t*e a#or ar#iterIs de0ision.
12$3
It 0*ara0teriKed PePa+orIs resi!nation as a res"onse,
not to t*e ae!ed< de!radin! and *ostie treatment t*at *e -as su#?e0ted to #< S<+u, #ut to
Outdoor Cot*in!Is do-n-ard +inan0ia s"ira. Guenao#raIs a""ointment -as made on< a+ter
PePa+or *ad su#mitted *is resi!nation etter, and t*is -as made to 0o,er t*e ,a0an0<
PePa+orIs resi!nation -oud 0reate. T*us, PePa+or -as not eased out +rom *is "osition as HR)
mana!er. No mai0e iEe-ise -as "resent in t*e 0om"an<Is de0ision to dismiss PePa+orIs t-o
sta++ mem#ersF t*e 0om"an< sim"< e(er0ised its mana!ement "rero!ati,e to address t*e
+inan0ia "ro#ems it +a0ed. PePa+or, in +a0t, dra+ted t*e dismissa etters o+ *is sta++
mem#ers. In t*e a#sen0e o+ an< ie!a dismissa, no #asis e(isted +or t*e monetar< a-ards t*e
a#or ar#iter !ranted.

PePa+or an0*ored *is certiorari "etition -it* t*e CA on t*e 0aim t*at t*e N9RC de0ision
-as tainted -it* !ra,e a#use o+ dis0retion, at*ou!* *e essentia< ado"ted t*e same
ar!uments *e "resented #e+ore t*e a#or ar#iter and t*e N9RC.

In a de0ision dated )e0em#er &8, &%%4,
12.3
t*e CA a++irmed t*e N9RCIs de0ision, statin!
t*at PePa+or +aied to "resent su++i0ient e,iden0e su""ortin! *is 0aim t*at *e *ad #een
0onstru0ti,e< dismissed. T*e CA rued t*at PePa+orIs resi!nation -as Eno-in!< and
,ountari< made. A00ordin!<, it dismissed PePa+orIscertiorari "etition. It iEe-ise denied t*e
motion +or re0onsideration t*at PePa+or su#se>uent< +ied.
12/3
Aa0ed -it* t*ese CA a0tions,
PePa+or +ied -it* us t*e "resent "etition +or re,ie- on certiorari.

THE PARTIES0 ARG.MENTS

PePa+or insists t*at, 0ontrar< to t*e +indin!s o+ t*e N9RC and t*e CA, *e *ad #een
0onstru0ti,e< dismissed +rom *is em"o<ment -it* Outdoor Cot*in!. He ae!es t*at t*e
dismissa o+ *is t-o sta++ mem#ers, t*e demeanin! iaison -orE *e *ad to "er+orm as HR)
Mana!er, t*e saar< dedu0tion +or *is ae!ed unaut*oriKed a#sen0es, and t*e a""ointment o+
Guenao#ra as t*e ne- HR) mana!er e,en #e+ore *e tendered *is resi!nation, -ere 0ear a0ts
o+ dis0rimination t*at made *is 0ontinued em"o<ment -it* t*e Outdoor Cot*in!
un#eara#e. He -as t*us +or0ed to resi!n.

Outdoor Cot*in! 0aims t*at PePa+or ,ountari< resi!ned +rom *is -orE and *is 0ontrar<
ae!ations -ere a unsu#stantiated. T*e HR) -as not sin!ed out +or retren0*ment, #ut -as
sim"< t*e +irst to ose its sta++ mem#ers #e0ause t*e 0om"an< *ad to do-nsiKe. T*us, a HR)
-orE *ad to #e "er+ormed #< PePa+or. Instead o+ #ein! !rate+u t*at *e -as not amon! t*ose
immediate< dismissed due to t*e 0om"an<Is retren0*ment "ro!ram, PePa+or unreasona#< +et
*umiiated in "er+ormin! -orE t*at o!i0a< +e under *is de"artmentF insisted on *a,in! a +u
sta++ 0om"ementF a#sented *imse+ +rom -orE -it*out o++i0ia ea,eF and demanded "a<ment +or
*is unaut*oriKed a#sen0es.

THE ISS.E !d THE CO.RT0S R.LING

T'e C&#rt fi!ds t'e $etiti&! merit&ri&#s.

A "reiminar< 0ontentious issue is Outdoor Cot*in!Is ar!ument t*at -e s*oud dismiss
t*e "etition outri!*t #e0ause it raises >uestions o+ +a0ts, not t*e e!a >uestions t*at s*oud #e
raised in a Rue ./ "etition.
1243


De see no merit in t*is ar!ument as t*e rue t*at a Rue ./ "etition deas on< -it* e!a
issues is not an a#soute rueF it admits o+ e(0e"tions. In t*e a#or a- settin!, -e -ade into
+a0tua issues -*en 0on+i0t o+ +a0tua +indin!s e(ists amon! t*e a#or ar#iter, t*e N9RC, and t*e
CA. T*is is t*e e(a0t situation t*at o#tains in t*e "resent 0ase sin0e t*e a#or ar#iter +ound
+a0ts su""ortin! t*e 0on0usion t*at t*ere *ad #een 0onstru0ti,e dismissa, -*ie t*e N9RCIs
and t*e CAIs +a0tua +indin!s 0ontradi0ted t*e a#or ar#iterIs +indin!s.
1263
Under t*is situation, t*e
0on+i0tin! +a0tua +indin!s #eo- are not #indin! on us, and -e retain t*e aut*orit< to "ass on
t*e e,iden0e "resented and dra- 0on0usions t*ere+rom.
12'3

T*e "etition turns on t*e >uestion o+ -*et*er PePa+orIs undis"uted resi!nation -as a
,ountar< or a +or0ed one, in t*e atter 0ase maEin! it a 0onstru0ti,e dismissa e>ui,aent to an
ie!a dismissa. A 0riti0a +a0t ne0essar< in reso,in! t*is issue is whether Peaflor filed his
letter of resignation before or after the appointment of Buenaobra as the new/concurrent
HRD manager. T*is >uestion aso !i,es rise to t*e side issue o+ -*en Guenao#raIs
a""ointment -as made. I+ t*e resi!nation etter -as su#mitted -ef&re S<+uIs a""ointment o+
Guenao#ra as ne- HR) mana!er, itte su""ort e(ists +or PePa+orIs ae!ation t*at *e *ad #een
+or0ed to resi!n due to t*e "re,aiin! a#usi,e and *ostie -orEin! en,ironment. Guenao#raIs
a""ointment -oud t*en #e sim"< intended to 0o,er t*e ,a0an0< 0reated #< PePa+orIs
resi!nation. On t*e ot*er *and, i+ t*e resi!nation etter -as su#mitted fter t*e a""ointment o+
Guenao#ra, t*en +a0tua #asis e(ists indi0atin! t*at PePa+or *ad #een 0onstru0ti,e< dismissed
as *is resi!nation -as a res"onse to t*e una00e"ta#e a""ointment o+ anot*er "erson to a
"osition *e sti o00u"ied.

T*e >uestion o+ -*en PePa+or su#mitted *is resi!nation etter arises #e0ause t*is etter J
undis"uta#< made J -as undated. )es"ite PePa+orIs 0aim o+ *a,in! im"ressi,e intee0tua
and a0ademi0 0redentias,
1283
*is resi!nation etter, +or some reason, -as undated. T*us, t*e
"arties *a,e dire0t< o""osin! 0aims on t*e matter. PePa+or 0aims t*at *e -rote and +ied t*e
etter on t*e same date *e made *is resi!nation e++e0ti,e J Mar0* 2/, &%%%. Outdoor Cot*in!,
on t*e ot*er *and, 0ontends t*at t*e etter -as su#mitted on Mar0* 2, &%%%, +or -*i0* reason
S<+u issued a memorandum o+ t*e same date a""ointin! Guenao#ra as t*e 0on0urrent HR)
mana!erF S<+uIs memorandum 0ited PePa+orIs intention to resi!n so *e 0oud de,ote *is time to
tea0*in!. T*e 0om"an< +urt*er 0ites in su""ort o+ its 0ase Guenao#raIs Mar0* $,
&%%% memorandum a00e"tin! *is a""ointment. Anot*er "ie0e o+ e,iden0e is t*e S<+u
memorandum o+ Mar0* 2%, &%%%, -*i0* in+ormed t*e o++i0e o+ t*e a""ointment o+ Guenao#ra as
t*e 0on0urrent Head o+ HR) J t*e "osition t*at PePa+or o00u"ied. T-o ot*er memoranda are
ae!ed to e(ist, name<, t*e ADO9 memoranda o+ Mar0* 4 and 22, &%%%, ae!ed< sent to
Pena+or.

Se,era reasons arisin! dire0t< +rom t*ese "ie0es o+ e,iden0e ead us to 0on0ude
t*at PePa+or did indeed su#mit *is resi!nation etter on Mar0*, 2/, &%%%, i.e., on t*e same da<
t*at it -as su#mitted.

!irst, -e re!ard t*e S<+u memorandum o+ Mar0* 2, &%%% and t*e memorandum o+
Guenao#ra o+ Mar0* $, &%%% a00e"tin! t*e "osition o+ HR) Head to #e *i!*< sus"e0t. In our
,ie-, t*ese memoranda, -*ie dated, do not 0onstitute 0on0usi,e e,iden0e o+ t*eir dates o+
"re"aration and 0ommuni0ation. Sur"risin!<,PePa+or -as ne,er in+ormed a#out t*ese
memoranda -*en t*e< dire0t< 0on0erned *im, "arti0uar< t*e turno,er o+ res"onsi#iities to
Guenao#ra i+ indeed PePa+or *ad resi!ned on Mar0* 2, &%%% and a smoot* turno,er to
Guenao#ra -as intended. E,en t*e re0i"ients o+ t*ese 0ommuni0ations do not a""ear to *a,e
si!ned +or and dated t*eir re0ei"t. T*e ADO9 memoranda, to #e sure, s*oud *a,e #een
"resented -it* "roo+ o+ ser,i0e i+ t*e< -ere to *a,e an< #indin! e++e0t on PePa+or.

Second,-e +ind it sur"risin! t*at t*ese "ie0es o+ e,iden0e "ointin! to a Mar0* 2,
&%%% resi!nation J s"e0i+i0a<, S<+uIs Mar0* 2, &%%% memorandum to Guenao#ra a#out
Pena+orIs resi!nation and Guenao#raIs o-n a0Eno-ed!ment and a00e"tan0e J -ere onl,
&resented to the NLRC on a&&eal, not beore the labor arbiter. The matter .as not even
mentioned in the com&an,s &osition &a&er iled .ith the labor arbiter.
1&%3
D*ie t*e "resentation
o+ e,iden0e at t*e N9RC e,e on a""ea is not un*eard o+ in a#or 0ases,
1&23
sti su++i0ient
e("anation must #e addu0ed to e("ain -*< t*is irre!uar "ra0ti0e s*oud #e ao-ed. In t*e
"resent 0ase, Outdoor Cot*in! tota< +aied to e("ain t*e reason +or its omission. T*is +aiure,
to us, is si!ni+i0ant, as t*ese -ere t*e 0in0*in! "ie0es o+ e,iden0e t*at ao-ed t*e N9RC to
?usti+< t*e re,ersa o+ t*e a#or ar#iterIs de0ision.

Third, t*e 0ir0umstan0es and ot*er e,iden0e surroundin! PePa+orIs resi!nation su""ort
*is 0aim t*at *e -as "ra0ti0a< 0om"eed to resi!n +rom t*e 0om"an<.

Aoremost amon! t*ese is t*e memorandum o+ Mar0* 2%, &%%% si!ned #< S<+u in+ormin!
t*e -*oe o++i0e :/To0 (ll concerned1; a#out t*e desi!nation o+ Guenao#ra as 0on0urrent
A00ountin! and HR) Mana!er. In 0ontrast -it* t*e sus"e0t memoranda -e dis0ussed a#o,e,
t*is memorandum "ro"er< #ore si!natures a0Eno-ed!in! re0ei"t and dates o+ re0ei"t #< at
east +i,e 0om"an< o++i0ias, amon! t*em t*e reada#e si!nature o+ )emo!ene and one
A!#a<aniF t*ree o+ t*em a0Eno-ed!ed re0ei"t on Mar0* 2$, &%%%, s*o-in! t*at indeed it -as
on< on t*at da< t*at t*e a""ointment o+ Guenao#ra to t*e HR) "osition -as dis0osed. T*is
e,iden0e is +u< 0onsistent -it* PePa+orIs "osition t*at it -as on< in t*e a+ternoon o+ Mar0* 2$,
&%%% t*at *e -as tod, in+orma< at t*at, t*at Guenao#ra *ad taEen o,er *is "osition. It e("ains
as -e -*< as ate as Mar0* 2$, &%%%, PePa+or sti "re"ared and si!ned a se0urit< re"ort,
1&&3
and is +u< 0onsistent -it* *is "osition t*at on t*at da< *e -as sti -orEin! on t*e e(0use
etter o+ 0ertain saes "ersonne o+ t*e 0om"an<.
1&$3

De note t*at t*e 0om"an< on< #eated< >uestioned t*e moti,ation t*at PePa+or 0ited
+or *is dis0riminator< treatment, i.e., t*at *e -as 0au!*t in t*e #itter +i!*t #et-een S<+u and 9ee,
t*en Mi0e President +or O"erations, t*at ed t*e atter to ea,e t*e 0om"an<.
1&.3
A+ter 9ee e+t,
PePa+or ae!ed t*at t*ose identi+ied -it* 9ee -ere sin!ed out +or ad,erse treatment, 0itin! in
t*is re!ard t*e do-nsiKin! o+ HR) t*at o00urred on or a#out t*is time and -*i0* resuted in *is
one-man HR) o"eration. De sa< t*is do-nsiKin! -as on< @ae!edB as t*e 0om"an< tota<
+aied J des"ite Pena+orIs 0aim o+ dis0riminator< "ra0ti0e J to addu0e e,iden0e s*o-in! t*at
t*ere *ad indeed #een a e!itimate do-nsiKin!. Ot*er t*an its #are 0aim t*at it -as +a0in!
se,ere +inan0ia "ro#ems, Outdoor Cot*in! ne,er "resented an< e,iden0e to "ro,e #ot* t*e
reasons +or its ae!ed do-nsiKin! and t*e +a0t o+ su0* do-nsiKin!. No e,iden0e -as e,er
o++ered to re#ut PePa+orIs 0aim t*at *is sta++ mem#ers -ere dismissed to maEe *is i+e as HR)
Head di++i0ut. To #e sure, PePa+orIs "arti0i"ation in t*e termination o+ *is sta++ mem#ersI
em"o<ment 0annot #e used a!ainst *im, as t*e termination o+ em"o<ment -as a mana!ement
de0ision t*at PePa+or, at *is e,e, 0oud not *a,e e++e0ti,e< 0ontested -it*out "uttin! *is o-n
?o# on t*e ine.

PePa+orIs o-n ser,i0e -it* t*e 0om"an< deser,es 0ose s0rutin<. He started -orEin!
+or t*e 0om"an< on Se"tem#er &, 2888 so t*at #< Mar0* 2, &%%%, *is "ro#ationar< "eriod -oud
*a,e ended and *e -oud *a,e #e0ome a re!uar em"o<ee. De +ind it *i!*< uniEe< t*at
PePa+or -oud resi!n on Mar0* 2, &%%% and -oud t*en sim"< ea,e !i,en *is undis"uted
re0ord o+ *a,in! su00ess+u< -orEed -it*in *is "ro#ationar< "eriod on t*e 0om"an<Is Poi0<
Manua, Personne Hand#ooE, 5o# E("e0tations, and Or!aniKationa Set-u". It does not a""ear
sound and o!i0a to us t*at an em"o<ee -oud tender *is resi!nation on t*e ,er< same da< *e
-as entited #< a- to #e 0onsidered a re!uar em"o<ee, es"e0ia< -*en a do-nsiKin! -as
taEin! "a0e and *e 0oud *a,e a,aied o+ its #ene+its i+ *e -oud #e se"arated +rom t*e ser,i0e
as a re!uar em"o<ee. It -as stran!e, too, t*at *e -oud su#mit *is resi!nation on Mar0* 2,
&%%% and Eee" 0om"ete< >uiet a#out t*is de,eo"ment unti its e++e0ti,e date on Mar0* 2/,
&%%%. In t*e usua 0ourse, t*e turno,er aone o+ res"onsi#iities and -orE oads to t*e
su00essor in a sma 0om"an< -oud *a,e "re,ented t*e matter +rom #ein! 0om"ete< under
-ra"s +or 2% da<s #e+ore an< announ0ement -as e,er made. T*at PePa+or -as 0au!*t #<
sur"rise #< t*e turno,er o+ *is "ost to Guenao#ra is in +a0t indi0ated #< t*e 0om"an<Is o-n
e,iden0e t*at PePa+or sti su#mitted a se0urit< re"ort on Mar0* 2$, &%%%. On t*e -*oe,
PePa+orIs re0ord -it* t*e 0om"an< is not t*at o+ a 0om"an< o++i0ia -*o -oud sim"< and
,ountari< tender a "re0i"itate resi!nation on t*e e(0use t*at *e -oud de,ote *is time to
tea0*in! J a ame e(0use at #est 0onsiderin! t*at Mar0* is t*e mont* t*e semester usua<
ends and is t-o or t*ree mont*s a-a< +rom t*e start o+ anot*er s0*oo <ear.

In our ,ie-, it is more 0onsistent -it* *uman e("erien0e t*at PePa+or indeed earned
o+ t*e a""ointment o+ Guenao#ra on< on Mar0* 2$, &%%% and rea0ted to t*is de,eo"ment
t*rou!* *is resi!nation etter a+ter reaiKin! t*at *e -oud on< +a0e *ostiit< and +rustration in *is
-orEin! en,ironment. T*ree ,er< #asi0 a#or a- "rin0i"es su""ort t*is 0on0usion and miitate
a!ainst t*e 0om"an<Is 0ase.

T*e +irst is t*e setted rue t*at in em"o<ee termination dis"utes, t*e em"o<er #ears t*e
#urden o+ "ro,in! t*at t*e em"o<eeIs dismissa -as +or ?ust and ,aid 0ause.
1&/3
T*at PePa+or
did indeed +ie a etter o+ resi!nation does not *e" t*e 0om"an<Is 0ase as, ot*er t*an t*e +a0t o+
resi!nation, t*e 0om"an< must sti "ro,e t*at t*e em"o<ee ,ountari< resi!ned.
1&43
T*ere 0an
#e no ,aid resi!nation -*ere t*e a0t -as made under 0om"usion or under 0ir0umstan0es
a""ro(imatin! 0om"usion, su0* as -*en an em"o<eeIs a0t o+ *andin! in *is resi!nation -as a
rea0tion to 0ir0umstan0es ea,in! *im no aternati,e #ut to resi!n.
1&63
In sum, t*e e,iden0e does
not su""ort t*e e(isten0e o+ ,ountariness in PePa+orIs resi!nation.

Anot*er #asi0 "rin0i"e is t*at e("ressed in Arti0e . o+ t*e 9a#or Code J t*at all doubts
in the inter&retation and im&lementation o the Labor Code should be inter&reted in avor o the
.or2in%man. T*is "rin0i"e *as #een e(tended #< ?uris"ruden0e to 0o,er dou#ts in t*e
e,iden0e "resented #< t*e em"o<er and t*e em"o<ee.
1&'3
As s*o-n a#o,e, PePa+or *as, at
,er< east, s*o-n serious dou#ts a#out t*e merits o+ t*e 0om"an<Is 0ase, "arti0uar< in t*e
a""re0iation o+ t*e 0in0*in! e,iden0e on -*i0* t*e N9RC and CA de0isions -ere #ased. In
su0* 0ontest o+ e,iden0e, t*e 0ited Arti0e . 0om"es us to rue in PePa+orIs +a,or. T*us, -e
+ind t*at PePa+or -as 0onstru0ti,e< dismissed !i,en t*e *ostie and dis0riminator< -orEin!
en,ironment *e +ound *imse+ in, "arti0uar< e,iden0ed #< t*e es0aatin! a0ts o+ un+airness
a!ainst *im t*at 0uminated in t*e a""ointment o+ anot*er HR) mana!er -it*out an< "rior
noti0e to *im. D*ere no ess t*an t*e 0om"an<Is 0*ie+ 0or"orate o++i0er -as a!ainst *im,
PePa+or *ad no aternati,e #ut to resi!n +rom *is em"o<ment.
1&83

9ast #ut not t*e east, -e *a,e re"eated< !i,en si!ni+i0an0e in a#andonment and
0onstru0ti,e dismissa 0ases to t*e em"o<eeIs rea0tion to t*e termination o+ *is em"o<ment
and *a,e asEed t*e >uestion: is t*e 0om"aint a!ainst t*e em"o<er mere< a 0on,enient
a+tert*ou!*t su#se>uent to an a#andonment or a ,ountar< resi!nationQ De +ind +rom t*e
re0ords t*at PePa+or sou!*t amost immediate o++i0ia re0ourse to 0ontest *is se"aration +rom
ser,i0e t*rou!* a 0om"aint +or ie!a dismissa.
1$%3
T*is is not t*e a0t o+ one -*o ,ountari<
resi!nedF *is immediate 0om"aints 0*ara0teriKe *im as one -*o dee"< +et t*at *e *ad #een
-ron!ed.

*HERE+ORE, -e GRANT t*e "etitionerIs "etition +or re,ie- on certiorari,
and RE,ERSE t*e de0ision and resoution o+ t*e Court o+ A""eas in CA-7.R. SP No. '6'4/
"romu!ated on )e0em#er &8, &%%4 and Mar0* 2., &%%6, res"e0ti,e<. De REINSTATE t*e
de0ision o+ t*e a#or ar#iter dated Au!ust 2/, &%%2, -it* t*e MODI+ICATION t*at, due to t*e
strained reations #et-een t*e "arties, res"ondents are additiona< ordered to "a< se"aration
"a< e>ui,aent to t*e "etitionerIs one mont*Is saar<.

Costs a!ainst t*e res"ondents.

SO ORDERED.
Re$#-"i% &f t'e P'i"i$$i!es
S#$reme C&#rt
B/#i& Cit1


SECOND DIVISION


MANOLO A. PEAFLOR,
Petitioner,



,ersus -



O.TDOOR CLOTHING
MAN.+ACT.RING CORPORATION,
NATHANIEL T. SY+., Preside!t,
MEDYLENE M. DEMOGENA, +i!!%e
M!/er, !d PA.L LEE, C'irm!,
Res"ondents.
G.R. No. 177114

Present:

CARPIO, J., Chair&erson,
GRION,
)E9 CASTI99O,
AGA), and
PEREZ, JJ.




Promu!ated:

A"ri 2$, &%2%

x---------------------------------------------------------------------------------------------------------x

R E S O L U T I O N

BRION, J.:


In our )e0ision o+ 5anuar< &2, &%2%, -e !ranted "etitioner Manoo PePa+orIs :"e'alor;
"etition +or re,ie- on certiorari and re,ersed t*e Court o+ A""eas :C(; de0ision o+ )e0em#er
&8, &%%4 and resoution o+ Mar0* 2., &%%6. De +ound t*at PePa+or *ad #een 0onstru0ti,e<
dismissed +rom *is em"o<ment -it* res"ondent Outdoor Cot*in! Manu+a0turin! Cor"oration
:+utdoor Clothin%;. Outdoor Cot*in! no- seeEs a re0onsideration o+ t*is ruin!.


+ACT.AL BAC2GRO.ND

PePa+or -as *ired as "ro#ationar< HR) Mana!er o+ Outdoor Cot*in! on Se"tem#er &,
2888. On Mar0* 2$, &%%%, more t*an si( mont*s +rom t*e time *e -as *ired, PePa+or earned
t*at Outdoor Cot*in!Is President, Nat*anie S<+u :S,u;, a""ointed Ed-in Guenao#ra
:Buenaobra; as t*e 0on0urrent HR) and A00ountin! Mana!er. A+ter endurin! -*at *e 0aimed
as dis0riminator< treatment at -orE, PePa+or 0onsidered t*e a""ointment o+ Guenao#ra to *is
"osition as t*e ast stra-, and t*us +ied *is irre,o0a#e resi!nation +rom Outdoor Cot*in!
e++e0ti,e at t*e 0ose o+ o++i0e *ours on Mar0* 2/, &%%%. He t*erea+ter +ied an ie!a dismissa
0om"aint -it* t*e a#or ar#iter 0aimin! t*at *e *ad #een 0onstru0ti,e< dismissed. T*e a#or
ar#iter a!reed -it* PePa+or and issued a de0ision in *is +a,or on Au!ust 2/, &%%2.

On a""ea, t*e Nationa 9a#or Reations Commission :NLRC; re,ersed t*e a#or ar#iterIs
ruin! in its Se"tem#er &., &%%& de0ision. D*en PePa+or >uestioned t*e N9RCIs de0ision
#e+ore t*e CA, t*e a""eate 0ourt a++irmed t*e N9RCIs de0ision. Hen0e, PePa+or +ied a
"etition +or re,ie- on certiorari -it* t*e Court.

The Courts Januar! "#$ "%#% Decision

Our 5anuar< &2, &%2% de0ision +o0used on reso,in! t*e issue o+ whether Peaflors
resignation from &utdoor Clothing was 'oluntar! or a forced one, t*e atter maEin! it a
0onstru0ti,e dismissa e>ui,aent to an ie!a dismissa. De +ound it 0ru0ia to
determine whether Peaflor filed his resignation letter before or after the appointment of
Buenaobra as concurrent HRD and (ccounting )anager. I+ t*e resi!nation -as
su#mitted -ef&re S<+uIs a""ointment o+ Guenao#ra, itte su""ort -oud e(ist +or PePa+orIs
ae!ation o+ 0onstru0ti,e dismissa, as t*e a""ointment -oud mere< #e intended to 0o,er t*e
,a0an0< 0reated #< PePa+orIs resi!nation. I+ *o-e,er t*e resi!nation -as made fter t*e
a""ointment o+ Guenao#ra, t*en +a0tua #asis e(ists to 0onsider PePa+or as 0onstru0ti,e<
dismissed #< Outdoor Cot*in!, as t*e resi!nation -oud #e a res"onse to t*e una00e"ta#e
a""ointment o+ anot*er "erson to a "osition *e sti o00u"ied.

PePa+or 0aimed t*at *e +ied *is undated resi!nation etter on t*e ,er< same date *e
made *is resi!nation e++e0ti,e J Mar0* 2/, &%%%. On t*e ot*er *and, Outdoor Cot*in!
0ontended t*at t*e etter -as su#mitted on Mar0* 2, &%%%. In su""ort o+ t*is ae!ation, Outdoor
Cot*in! "resented t*ree memoranda:

a. t*e Mar0* 2, &%%% memorandum +rom S<+u to Guenao#ra a""ointin! t*e atter as t*e 0on0urrent
HR) and A00ountin! Mana!erF
#. t*e Mar0* $, &%%% memorandum +rom Guenao#ra to S<+u a00e"tin! t*e a""ointmentF and
0. t*e Mar0* 2%, &%%% o++i0e memorandum +rom S<+u in+ormin! a 0on0erned o+ Guenao#raIs ne-
a""ointment.

O#r !"1sis &f t'e re%&rds "ed #s t& %&!%"#de t't Pe3f"&r s#-mitted 'is resi/!ti&!
&! Mr%' 45, 6777 s res$&!se t& t'e $$&i!tme!t &f B#e!&-r t& 'is $&st.

*e %&!sidered s#s$i%i&#s O#td&&r C"&t'i!/0s -&8e mem&r!d -e%#se t'ese
)ere &!"1 $rese!ted t& t'e NLRC &! $$e", -#t !&t -ef&re t'e "-&r r-iter. T*e< -ere
not e,en mentioned in Outdoor Cot*in!Is "osition "a"er +ied -it* t*e a#or ar#iter. T*e +aiure
to "resent t*em and to ?usti+< t*is +aiure are si!ni+i0ant 0onsiderin! t*at t*ese are 0in0*in!
"ie0es o+ e,iden0e t*at ao-ed t*e N9RC to ?usti+< t*e re,ersa o+ t*e a#or ar#iterIs de0ision.

T'e s#rr&#!di!/ %ir%#mst!%es &f t'e iss#!%e &f t'ese mem&r!d "s& %st
d&#-ts &! t'eir #t'e!ti%it1. At*ou!* t*e memoranda dire0t< 0on0erned PePa+or, *e -as
ne,er in+ormed o+ t*eir 0ontents nor !i,en 0o"ies. D*ie t*e Mar0* 2%, &%%% memorandum
#ore si!natures o+ its re0i"ients, t*ere -ere no marEs on t*e Mar0* 2 and $, &%%% memoranda
indi0atin! t*at t*eir intended re0i"ients a0tua< re0ei,ed t*em on t*e date t*e< -ere issued. It
-as iEe-ise stran!e t*at PePa+orIs resi!nation and Guenao#raIs a""ointment -oud #e Ee"t
under -ra"s +rom t*e su""osed +iin! o+ PePa+orIs resi!nation etter on Mar0* 2, &%%% u" to
S<+uIs issuan0e o+ t*e Mar0* 2%, &%%% o++i0e memorandum, sin0e t*e turno,er o+ res"onsi#iities
and -orE oad aone to a su00essor in a sma 0om"an< su0* as Outdoor Cot*in! -oud *a,e
"re,ented t*e resi!nation +rom #ein! Ee"t a se0ret.

De aso 0onsidered t*e timeiness o+ PePa+orIs resi!nation. It )s 'i/'"1 #!"i9e"1 f&r
Pe3f"&r t& resi/! &! Mr%' 4, 6777, s %"imed -1 O#td&&r C&r$&rti&!, %&!sideri!/ t't
'e )&#"d '8e -e%&me re/#"r em$"&1ee -1 t't time. It did not a""ear o!i0a t*at an
em"o<ee -oud tender *is resi!nation on t*e ,er< same da< *e -as entited #< a- to #e
0onsidered a re!uar em"o<ee, es"e0ia< -*en do-nsiKin! -as taEin! "a0e and *e 0oud
*a,e a,aied o+ its #ene+its i+ se"arated +rom t*e ser,i0es as a re!uar em"o<ee.

C&!sideri!/ t'e -&8e %ir%#mst!%es, !d $$"1i!/ -si% "-&r ") $ri!%i$"es,
t'e C&#rt r#"ed t't Pe3f"&r )s %&!str#%ti8e"1 dismissed fr&m 'is em$"&1me!t )it'
O#td&&r C"&t'i!/. De t*us re,ersed t*e CAIs de0ision and resoution and reinstated t*e
de0ision o+ t*e a#or ar#iter -*i0* +ound t*e res"ondents :Outdoor Cot*in! and its 0or"orate
o++i0ers; ?oint< and se,era< ia#e to "a< PePa+or #a0E-a!es, ie!a< dedu0ted saaries,
"ro"ortionate 2$
t*
mont* "a<, attorne<Is +ees, mora and e(em"ar< dama!es.

THE MOTION +OR RECONSIDERATION

Outdoor Cot*in! no- mo,es +or t*e re0onsideration o+ t*e CourtIs 5anuar< &2, &%2%
)e0ision. It ae!es t*at t*e Court erred in de0arin! t*at PePa+or -as 0onstru0ti,e< dismissed
+rom *is em"o<ment des"ite *is su#mission o+ an @irre,o0a#e resi!nationB etter. It aso 0aims
t*at t*e Court erred in *odin! a t*e res"ondents ?oint< and se,era< ia#e to "a< PePa+or t*e
saaries and dama!es a-arded in *is +a,or.

Outdoor Cot*in! maintains t*at PePa+orIs resi!nation -as ,ountar<F PePa+or resi!ned
#e0ause *e -anted to disasso0iate *imse+ +rom a 0om"an< t*at -as e("erien0in! se,ere
+inan0ia di++i0ut< and to +o0us on *is tea0*in! ?o#. Indeed, PePa+orIs o-n etter statin! *is
de0ision to irre'ocabl! resi/! +rom *is em"o<ment -it* Outdoor Cot*in! -as a 0ear
indi0ation t*at *e -as not +or0ed to ea,e t*e 0om"an<.

Outdoor Cot*in! aso reies *ea,i< on t*e t*ree memoranda it "resented #e+ore t*e
N9RC to su""ort its 0aim o+ PePa+orIs ,ountar< resi!nation. At*ou!* #eated< +ied, Outdoor
Cot*in! 0aims t*ere is not*in! in t*e rues -*i0* disao-s t*e +iin! o+ ne- do0uments #e+ore
t*e N9RC. @Su#mission o+ additiona do0uments, a#eit #eated< done, s*oud a-a<s #e
ooEed u"on -it* i#erait< es"e0ia< -*en t*e same -as im"ortant +or an< +a0tua
determination o+ t*e 0ase.B
123


Sin0e it -as PePa+or -*o +ied t*e resi!nation etter, Outdoor Cot*in! "osits t*at t*e
#urden o+ "ro,in! t*at t*e resi!nation -as in,ountar< rests on PePa+or. T*e e,iden0e
"resented #< PePa+or sim"< +aied to o,er0ome t*is #urden and t*us, *is resi!nation s*oud #e
deemed ,ountar< and s*oud a#so,e Outdoor Cot*in! o+ an< ia#iit< +or ie!a dismissa.

Additiona<, Outdoor Cot*in! asserts t*at t*e Court erred in reinstatin! t*e a#or
ar#iterIs de0ision -*i0* ordered a t*e res"ondents 3ointl, and severall, ia#e +or t*e sums due
to PePa+or. T*ere -as not*in! in t*e de0ision o+ t*e Court or e,en t*ose o+ t*e CA and t*e
administrati,e #odies +indin! Outdoor Cot*in!Is 0or"orate o++i0ers S<+u, Med<ene )emo!ena
:*emo%ena;, and Pau 9ee :Lee; to *a,e "ersona< a0ted in #ad +ait* or -it* mai0e -it*
res"e0t to PePa+orIs resi!nation. Assumin! Outdoor Cot*in! is indeed ia#e to PePa+or +or
ie!a dismissa, it -oud #e e!a< out o+ ine to 0onsider its 0or"orate o++i0ers soidari< ia#e
-it* t*e 0om"an< -it*out a +indin! o+ #ad +ait* or mai0e on t*eir "art.

THE CO.RT0S R.LING

Ot*er t*an t*e issue o+ soidar< ia#iit< o+ t*e res"ondents in t*e "resent 0ase, Outdoor
Cot*in! raises no ne- matter t*at -oud merit a re0onsideration o+ t*e CourtIs 5anuar< &2,
&%2% )e0ision.

PePa+orIs resi!nation etter read:

Mr. Nat*anie Y. S<+u
C*ie+ Cor"orate O++i0er
Outdoor Cot*in! Manu+a0turin! Cor"oration

Sir:

Pease a00e"t m< irre,o0a#e resi!nation e++e0ti,e at t*e 0ose o+ o++i0e on Mar0* 2/, &%%%.

T*anE <ou.

Mer< tru< <ours,

Manoo A. PePa+or
1&3

*'i"e t'e "etter sttes t't Pe3f"&r0s resi/!ti&! )s irre8&%-"e, it d&es !&t
!e%essri"1 si/!if1 t't it )s "s& 8&"#!tri"1 exe%#ted. Pre0ise< #e0ause o+ t*e attendant
*ostie and dis0riminator< -orEin! en,ironment, PePa+or de0ided to "ermanent< se,er *is ties
-it* Outdoor Cot*in!. T*is +as s>uare< -it*in t*e 0on0e"t o+ 0onstru0ti,e dismissa t*at
?uris"ruden0e de+ines, amon! ot*ers, as in,ountari< resi!nation due to t*e *ars*, *ostie, and
un+a,ora#e 0onditions set #< t*e em"o<er. It arises -*en a 0ear dis0rimination, insensi#iit<,
or disdain #< an em"o<er e(ists and *as #e0ome un#eara#e to t*e em"o<ee.
1$3
T*e !au!e +or
0onstru0ti,e dismissa is -*et*er a reasona#e "erson in t*e em"o<eeIs "osition -oud +ee
0om"eed to !i,e u" *is em"o<ment under t*e "re,aiin! 0ir0umstan0es.
1.3
Dit* t*e
a""ointment o+ Guenao#ra to t*e "osition *e t*en sti o00u"ied, PePa+or +et t*at *e -as #ein!
eased out and t*is "er0e"tion made *im de0ide to ea,e t*e 0om"an<.

T*e +a0t o+ +iin! a resi!nation etter aone does not s*i+t t*e #urden o+ "ro,in! t*at t*e
em"o<eeIs dismissa -as +or a ?ust and ,aid 0ause +rom t*e em"o<er to t*e
em"o<ee. In $ora v. (vesco,
1/3
-e rued t*at s*oud t*e em"o<er inter"ose t*e de+ense o+
resi!nation, it is sti in0um#ent u"on t*e em"o<er to "ro,e t*at t*e em"o<ee ,ountari<
resi!ned. To our mind, Outdoor Cot*in! did not dis0*ar!e t*is #urden #< #eated< "resentin!
t*e t*ree memoranda it reied on. I+ t*ese memoranda -ere aut*enti0, t*e< -oud *a,e s*o-n
t*at PePa+orIs resi!nation "re0eded t*e a""ointment o+ Guenao#ra. T*us, t*e< -oud #e
e,iden0e su""ortin! t*e 0aim o+ ,ountariness o+ PePa+orIs resi!nation and s*oud *a,e #een
"resented ear< on in t*e 0ase J an< a-<er or a<man #< sim"e o!i0 0an #e e("e0ted to Eno-
t*is. Outdoor Cot*in! *o-e,er raised t*em on< #e+ore t*e N9RC -*en t*e< *ad ost t*e 0ase
#e+ore t*e a#or ar#iter and no- 0on,enient< attri#utes t*e +aiure to do so to its +ormer
0ounse. Outddor Cot*in!Is #eated e("anation as e("ressed in its motion +or re0onsideration,
to our mind, is a su#mission -e 0annot a00e"t +or serious 0onsideration. De +ind it si!ni+i0ant
t*at PePa+or atta0Eed t*e #eated "resentation o+ t*ese memoranda in *is Ans-er to Outdoor
Cot*in!Is Memoranda o+ A""ea -it* t*e N9RC, #ut re0ords do not s*o- t*at Outdoor Cot*in!
e,er satis+a0tori< 0ountered PePa+orIs ar!uments. It -as not unti -e "ointed out Outdoor
Cot*in!Is +aiure to e("ain its #eated "resentation o+ t*e memoranda in our 5anuar< &2,
&%2% de0ision t*at Outdoor Cot*in! o++ered a ?usti+i0ation.

D*ate,er dou#ts t*at remain in our minds on t*e 0redi#iit< o+ t*e "artiesI e,iden0e
s*oud, #< t*e a-Is di0tate, #e setted in +a,or o+ t*e -orEin! man. Our ruin! t*at PePa+or -as
0onstru0ti,e< dismissed +rom *is em"o<ment -it* Outdoor Cot*in! t*ere+ore stands.

De modi+<, *o-e,er, our ruin! on t*e e(tent o+ ia#iit< o+ Outdoor Cot*in! and its 0o-
res"ondents. A 0or"oration, as a ?uridi0a entit<, ma< a0t on< t*rou!* its dire0tors, o++i0ers and
em"o<ees. O#i!ations in0urred as a resut o+ t*e dire0torsI and o++i0ersI a0ts as 0or"orate
a!ents, are not t*eir "ersona ia#iit< #ut t*e dire0t res"onsi#iit< o+ t*e 0or"oration t*e<
re"resent. As a rue, t*e< are on< soidari< ia#e -it* t*e 0or"oration +or t*e ie!a termination
o+ ser,i0es o+ em"o<ees i+ t*e< a0ted -it* mai0e or #ad +ait*. In t*e "resent 0ase, mai0e or
#ad +ait* on t*e "art o+ t*e S<+u, )emo!ena, and 9ee, as 0or"orate o++i0ers o+ Outdoor Cot*in!,
-as not su++i0ient< "ro,en to ?usti+< a ruin! *odin! t*em soidari< ia#e -it* Outdoor Cot*in!.
143


*HERE+ORE, -e PARTIALLY GRANT res"ondentsI motion +or re0onsideration
and MODI+Y our )e0ision dated 5anuar< &2, &%2%. Res"ondent Outdoor Cot*in! is *ere#<
ordered to "a< "etitioner t*e +oo-in!:

a. -%9)/es 0om"uted +rom t*e time o+ 0onstru0ti,e dismissa u" to t*e time o+ t*e +inait< o+ t*e
CourtIs ResoutionF
#. se$rti&! $1, due to t*e strained reations #et-een t*e "arties, e>ui,aent to t*e "etitionerIs
one mont*Is saar<F
0. i""e/""1 ded#%ted s"r1 f&r six d1s, as 0om"uted #< t*e a#or ar#iterF
d. "ro"ortionate 2$
t*
mont* "a<F
e. attorne<Is +ees, mora and e(em"ar< dama!es in t*e amount o+ P2%%,%%%.%%F and
+. 0osts a!ainst t*e res"ondent 0or"oration.

SO ORDERED.
SECOND DIVISION
ALEC URANO, .R. N!. "%=B$D
Pe*%*%ne),
P)e#en*.
CORONA, .J.,
J
A 5e)#+# A CARPIO, J0, C-a%)(e)#n,
PERALTA,
ABAD, and
MENDOZA, JJ0
BEST CHEMICALS AND PLASTICS P)2+l"a*ed.
INC. and MOON P>O HON,
Re#(nden*#0 A+"+#* 7;, 7B/B
E- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -E
D E C I S I O N
CARPIO, J.@
T50 Ca*0
T-%# %# a (e*%*%n
/
!) )e5%e1 n &e)*%)a)% +nde) R+le 3; ! *-e R+le# ! C+)*0 T-e (e*%*%n &-allen"e# *-e 7B
J+l, 7BB4 De&%#%n
7
and // Se(*e2=e) 7BB4 Re#l+*%n
9
! *-e C+)* ! A((eal# %n CAAG0R0 SP N0 >3BB30
T-e C+)* ! A((eal# #e* a#%de *-e /? O&*=e) 7BB;
3
and 73 Jan+a), 7BB4
;
Re#l+*%n# ! *-e Na*%nal La=)
Rela*%n#C22%##%n $NLRC' %n CA N0 B3337:AB;, a!!%)2%n" *-e 4 J+l, 7BB3 De&%#%n
4
! *-e La=) A)=%*e)
%n NLRC NCR Ca#e N0 B;AB4/:/AB90
T50 'a9+*
Re#(nden* Be#* C-e2%&al# and Pla#*%&#, In&0 $BCPI' %# a &)()a*%n en"a"ed %n *-e 2an+!a&*+)e ! =%a<%all,
)%en*ed (l,()(,lene and )ela*ed ()d+&*#0 Re#(nden* Mn P, Hn" $Hn"' %# *-e ()e#%den* and &-%e!
e<e&+*%5e !!%&e) ! BCPI0
Pe*%*%ne) Ale< R0 G+)an" $G+)an"' and R2e S0 Al=a $Al=a' 1)@ed a# =%le) (e)a*) and #e&+)%*,
"+a)d, )e#(e&*%5el,, %n BCPI0 In a 2e2)and+2
?
da*ed 7 Ma, 7BB9, BCPI ()-%=%*ed %*# e2(,ee# !)2
=)%n"%n" (e)#nal %*e2# * *-e%) 1)@ a)ea0 E))%n" e2(l,ee# 1+ld =e #+#(ended !) #%< da,#0 BCPI #*a*ed
*-a*.
Plea#e =e )e2%nded ! *-e !ll1%n" e<%#*%n" )+le# and )e"+la*%n# *-a* all e2(l,ee# a)e e<(e&*ed * #*)%&*l, =#e)5e and ad-e)e
*.
< < < <
B)%n"%n" %n * 1)@ #*a*%nLa)ea ! (e)#nal =eln"%n"# *-e) *-an *-#e )eC+%)ed %n *-e (e)!)2an&e ! neK# d+*, 1-%&-
d%#)+(*L=#*)+&* C2(an,K# #e)5%&e# and (e)a*%n#, e<&e(* *-#e a+*-)%Ied =, -%"-e) a+*-)%*%e#0 T-%# !!en#e #-all %n&l+de *-e
!ll1%n" %*e2# E#%&F. )ad%#, 1al@2an, d%#&2an, 2a@eA+( @%*#, lad%e#K =a"#, 1)@e)#K @na(#a&@# and *-e l%@e 1-%&- 2+#* =e le!*
=e-%nd and #a!e @e(* E#%&F %n *-e e2(l,ee#K )e#(e&*%5e l&@e)#0 T-%# =e%n" a Se)%+# O!!en#e, *-e (enal*, ! 1-%&- %# #%< $4' da,#
#+#(en#%n !)2 1)@ 1%*-+* (a,0
:
G+)an" and Al=a ()e#en*ed *1 &n!l%&*%n" #e*# ! !a&*# a# * 1-a* -a((ened n ; Ma, 7BB90
A&&)d%n" * G+)an", a* 3 a020, -e (e)!)2ed -%# )+*%ne &-e&@A+( %n#%de *-e ()d+&*%n a)ea0 He -ad %n -%#
(&@e* a &a2e)a 1%*-+* !%l20 On -%# 1a, +* ! *-e ()d+&*%n a)ea, -e #a1 Al=a #*and%n" nea) *-e =+nd,
&l&@0 Al=a (+lled -%2, ")a==ed -%# (&@e*, and *)%ed * &n!%#&a*e *-e &a2e)a0 G+)an" )e!+#ed * "%5e *-e
&a2e)a =e&a+#e *-e)e 1a# n )ea#n * #+))ende) %*0
Al=a -eld G+)an"K# a)2 and (+n&-ed -%2 n *-e !a&e0 G+)an" #-+*ed !) -el(0 An*-e) #e&+)%*, "+a)d,
Rden% I0 Pa=l%# $Pa=l%#', a))%5ed0 In#*ead ! (a&%!,%n" Al=a, Pa=l%# D%ned %n (+n&-%n" and @%&@%n" G+)an"0
Al=a and Pa=l%# =an"ed G+)an"K# -ead a"a%n#* *-e !l) and ()5@ed -%2 * !%"-* =a&@0
G+)an"K# &A1)@e), El5%n J+an%*a# $J+an%*a#', #a1 1-a* -a((ened and a#@ed Al=a and Pa=l%# * #*( -%**%n"
G+)an"0 Al=a and Pa=l%# =)+"-* G+)an" * *-e "+a)d-+#e0 O!!%&e)A%nA&-a)"e R22el M0 C)de)
$C)de)' l&@ed *-e "+a)d-+#e, *-en )de)ed Al=a and Pa=l%# * &n*%n+e -%**%n" G+)an"0 F)edd%e In!+e)*
a))%5ed a* *-e "+a)d-+#e and a#@ed *-e #e&+)%*, "+a)d# * #*( -%**%n" G+)an"0 G+)an" a")eed * #+))ende)
*-e &a2e)a n *-e &nd%*%n *-a* *-e #e&+)%*, "+a)d# 1+ld ()e(a)e a d&+2en* a&@n1led"%n" )e&e%(* ! *-e
&a2e)a0
Al=a, n *-e *-e) -and, alle"ed *-a* -e 1a# n d+*, a* *-e 2a%n en*)an&e ! *-e ()d+&*%n a)ea !)2 ? (020
! 3 Ma, 7BB9 * ? a020 ! ; Ma, 7BB90 A* 3.7B a020, G+)an" *)%ed * en*e) *-e ()d+&*%n a)ea =)%n"%n" a
&a2e)a0 Al=a *ld G+)an" *-a* -e &+ld n* =)%n" *-e &a2e)a %n#%de *-e ()d+&*%n a)ea0 G+)an" "* 2ad
and *)%ed * ")a= Al=aK# "+n0 Al=a and G+)an" en"a"ed %n a !%#*!%"-*0 C)de), Pa=l%#, and an*-e) #e&+)%*,
"+a)d, F)ed)%&@ LaVada, a))%5ed and #*((ed *-e !%"-*0
On ; Ma, 7BB9, a* :.9; a020, G+)an" 1en* * D)0 H2e) L0 A"+%nald $D)0 A"+%nald' !) e<a2%na*%n and
*)ea*2en*0 D)0 A"+%nald %##+ed a 2ed%&al )e()*
>
and ad5%#ed G+)an" * )e#* !) *-)ee da,#0
In a le**e)
/B
da*ed ; Ma, 7BB9, BCPI a#@ed G+)an" * e<(la%n %n 1)%*%n" 1-, n d%#&%(l%na), a&*%n #-+ld =e
*a@en a"a%n#* -%2 and *-en (la&ed -%2 +nde) ()e5en*%5e #+#(en#%n e!!e&*%5e 4 Ma, 7BB90 On 4 Ma, 7BB9,
G+)an" 1)*e a le**e)
//
* BCPI na))a*%n" 1-a* -a((ened0 On : Ma, 7BB9, G+)an" 1)*e an*-e) le**e)
/7
*
BCPI #*a*%n" *-a*.
I al)ead, e<(la%ned 2, #%de ! *-e #*), )e"a)d%n" *-e alle"ed !%#*!%"-* =e*1een R2e Al=a and 2e0 I 1+ld l%@e * )e%*e)a*e
*-a* I 1a# ne5e) %n5l5ed %n an, !%#*!%"-* n) &22%* an, 5%la*%n ! +) C2(an,K# Cde ! D%#&%(l%ne0
An*-e) %##+e %# *-e ()e5en*%5e #+#(en#%n IK2 +nde)"%n" 1%*- E#%&F0 I 1+ld l%@e * C+e#*%n *-e ()()%e*, ! #+&- a&*%n0 Be
)e2%nded *-a* ,+ a)e (+**%n" 2e +nde) %nde!%n%*e ()e5en*%5e #+#(en#%n0
Unde) *-e la1, an e2(l,ee 2a, =e (la&ed +nde) ()e5en*%5e #+#(en#%n nl, %! -%# &n*%n+ed e2(l,2en* (#e# a #e)%+# and
%22%nen* *-)ea* * *-e l%!e and ()(e)*, ! *-e e2(l,e) ) ! -%# &Ae2(l,ee#0 Cn#eC+en*l,, 1%*-+* *-%# @%nd ! *-)ea*,
()e5en*%5e #+#(en#%n %# %2()(e)0
/9
On > Ma, 7BB9, J+an%*a# 1)*e a le**e)
/3
* BCPI na))a*%n" 1-a* -e #a10 J+an%*a# #*a*ed *-a*.
$oong Ma, ; %andang alas 3.7B ng madaling araw ako po ay luma%as ng ele&*)al E#%&F #-( upang pumunta
sa ()d+&*%n upang mag 2n%*)0 $g sa %andang l&@e) )2 pa lang ako may nakita ako tatlong tao na nakasuot ng kulay puti
na nagpaikot5ikot $sa harapan %anda ng =and% E#%&F &l&@'0 Medyo madilim pa kaya hindi ko nakita si Ale< G+)an" kasi
nakasoot sya ng kulay da)@ =l+e na TA#-%)*0 $g medyo malapit na ako nakarinig ako ng %oses na $tama na nasasaktan na ako' at
may sumagot na i%igay mo na masasaktan ka lang0$g makalapit na ako sa kanila nakita ko na iniipit na ng kanang %raso
ni Al=a $G+a)d' ang leeg ni Ale<0 (kala ko nag%i%iroan lang sila0 Tinanong ko kung ano yan pero %ago ako tumanong sa
kanila nakita ko na nasasaktan na si Ale< dahil sa pagkaipit sa kanyang leeg0 Sagot ni Ale< sa akin pre $ako' kinukuha nila ang
kamera sa akin to eh0 Sa%i pa ni Ale<hindi ko to i%i%igay sa inyo kahit ako9y saktan nyo, hindi ako lala%an sa inyo0 May
pag%i%igyan ako, i%i%igay ko to sa 2ana"e2en*0 Sa%i ko ano %a yan nasasaktan na ang tao0$agtataka naman ako sa kanila
ni Pa=le# at LaVada %akit hindi nila inaawat, nakatingin lang sila at kasamahan pa nila. (ko naman natatakot akong
paghiwalayin sila kasi may %aril si Al=a na naka sa%it sa %eywang nya %aka pag inawat ko %aka sasa%ihin ni Al=a na
kumampi ako kay Ale< dahil parehas kaming 2a%n*enan&e0 Sina%ihan ko si Al=a na %itiwan mo si Ale< ayusin natin to0 Hindi
pa rin %initiwan ni Al=a ang pagkaipit sa leeg ni Ale< hanggang sa naitulak ko sila papunta sa "+a)d-+#e0 $g sa loo% na
ng "+a)d-+#ehindi pa rin %initiwan ni Al=a si Ale< kaya hinahanap ko ang kanilang O0I0C0 !ara ayusin na0 Maya maya
luma%as si C)de) $O0I0C0'0 Sa%i ko awatin niya si Al=a pero hindi manlang nya inawat pati na ang kanyang mga kasama
dahil nandoon pa rin sa loo% ng "+a)d-+#e sina Pa=le#, LaVada at C)de)0 "uma%as ako at tinawag ko si Pn" sa
kanilang#-(0 Bumalik ako sa "+a)d-+#e kasama si Pn", ganon pa rin nakakapit pa rin ang %raso ni Al=a sa leeg
ni Ale<0 $gayon naglakas loo% na lang ako na paghiwalayin sila0$ahirapan ako dahil malakas si Al=a0 $apaghiwalay ko sila
pero muntik pa nga ako tamaan ng kamay ni Al=a at ng maghiwalay na pinaupo ko si Ale< sa upuan sa ta%i at hinarang ko
si Al=a dahil gusto pa nyang lumapit kay Ale< at nagsa%i ako kay Pn" na %antayan mo si Ale< dahil tatawag ako
ng P)ean o #+(e)5%#) para ayusin0
/;
On /B Ma, 7BB9, BCPI 1)*e a le**e) * G+)an" !%nd%n" -%2 "+%l*, ! en"a"%n" %n a !%#*!%"-* and 5%la*%n"
&2(an, (l%&, =, =)%n"%n" a &a2e)a0 On /3 Ma, 7BB9, G+)an" 1)*e a le**e)
/4
* BCPI #*a*%n" *-a*.
I a"a%n 1+ld l%@e * )e%*e)a*e *-a* I 1a# ne5e) %n5l5ed n) &22%* E#%&F an, 5%la*%n ! C2(an,K# Cde ! D%#&%(l%ne0
F) 2e * !+)*-e) e<(la%n, &+ld ,+ (lea#e =e 2)e #(e&%!%& 1-a* &2(an, (l%&%e# a)e ,+ )e!e))%n" * 1-en ,+ #a%d *-a*
=)%n"%n" ! &a2e)a %n#%de *-e ()d+&*%n a)ea and )e!+#al * #+))ende) *-e #a2e &a2e)a &n#*%*+*e %n!)a&*%n# ! &2(an, (l%&,0
/?
On /; Ma, 7BB9, G+)an" !%led 1%*- *-e ;*- M+n%&%(al C%)&+%* T)%al C+)* $MCTC', Ca)2na, Ca5%*e, a
&)%2%nal &2(la%n*
/:
a"a%n#* Al=a, C)de) and Pa=l%# !) #l%"-* (-,#%&al %nD+),0
In a le**e)
/>
da*ed /> Ma, 7BB9, BCPI d%#2%##ed G+)an" e!!e&*%5e 7B Ma, 7BB90 BCPI #*a*ed *-a*.
A!*e) a *-)+"- e5al+a*%n and %n*en#%5e del%=e)a*%n n *-e !a&*# a**endan* * ,+) &a#e, Mana"e2en* -a# !+nd ,+ * -a5e
&22%**ed *-e !ll1%n" O!!en#e# +nde) *-e C2(an,K# Cde ! D%#&%(l%ne.
/0 Cn&eal%n" and =)%n"%n" %n * 1)@ #*a*%nLa)ea ! (e)#nal =eln"%n"# $e0"0, a &a2e)a', *-e) *-an *-#e )eC+%)ed %n *-e (e)!)2an&e
! neK# d+*, 1-%&- d%#)+(*L=#*)+&* C2(an, #e)5%&e# and (e)a*%n#, e<&e(* *-#e a+*-)%Ied =, -%"-e) a+*-)%*%e#0 $Ta=le II,
Se)%+#, N0 /B ! Cde ! D%#&%(l%ne'6
70 U**e) d%#)e"a)d !) ) )e!+#al * #+=2%* * )ea#na=le %n#(e&*%n &nne&*ed 1%*-%n E#%&F *-e C2(an, ()e2%#e# =, a+*-)%Ied
C2(an, #e&+)%*, (e)#nnel %n *-e &nd+&* ! *-e%) =+#%ne##0 $Ta=le IV, M%n), N0 / ! Cde ! D%#&%(l%ne'6
90 S*a)*%n" ) ()5@%n" a !%"-*, %0e0, %n5l5e2en* %n a !%#* !%"-* 1%*- a #e&+)%*, "+a)d la#* Ma, ;, 7BB90 $Ta=le I, G)a5e, N0 4 ! Cde
! D%#&%(l%ne'6
30 A**e2(*%n" * %n!l%&* ) %n!l%&*%n" =d%l, %nD+), +(n an, C2(an, !!%&%al $e0"0, #e&+)%*, "+a)d 1- %# a (ea&e@ee(%n" !!%&e) ! *-e
&2(an,' ) e2(l,ee0 $Ta=le I, G)a5e, N0 B; ! Cde ! D%#&%(l%ne'6 and
;0 In*en*%nall, &a+#%n" (e)#nal %nD+), * an*-e) (e)#n $%0e0, *-e #e&+)%*, "+a)d' 1%*-%n *-e C2(an, ()e2%#e#0 $Ta=le I, G)a5e, N0
/7 ! Cde ! D%#&%(l%ne'0
< < < <
Ba#ed n *-e !)e"%n", and %n 5%e1 ! *-e ")a5%*, ! *-e !!en#e# *-a* ,+ -a5e &22%**ed 1-%&- &n#*%*+*e ")## 2%#&nd+&*,
*-e C2(an, %# &n#*)a%ned * *e)2%na*e ,+) e2(l,2en* !) &a+#e e!!e&*%5e Ma, 7B, 7BB9, a* *-e &l#e ! =+#%ne## -+)#0
7B
On 74 Ma, 7BB9, G+)an" !%led 1%*- *-e NLRC a &2(la%n* a"a%n#* BCPI and Hn" !) %lle"al d%#2%##al0
T50 La6!4 A46.+04F* R(,.n;
In -%# 4 J+l, 7BB3 De&%#%n, *-e La=) A)=%*e) !+nd BCPI l%a=le !) %lle"al d%#2%##al0 T-e La=) A)=%*e)
)de)ed BCPI * (a, G+)an" =a&@1a"e# and #e(a)a*%n (a,0 T-e La=) A)=%*e) -eld *-a*.
I !%nd *-a* *-e &2(la%nan* 1a# %lle"all, d%#2%##ed !)2 e2(l,2en*0
He 1a# d%#2%##ed !)2 E#%&F *),%n" * =)%n" an alle"ed ()-%=%*ed %*e2, a &a2e)a, %n#%de *-e P)d+&*%n A)ea =+* &2(an, )+le#
d%d n* ()-%=%* *-e =)%n"%n" ! &a2e)a0
H1 &an an +nladed &a2e)a =e #a%d * Md%#)+(*L=#*)+&* &2(an, #e)5%&e# and (e)a*%n#NW I* &ann*0
A# * *-e alle"ed !%#*!%"-* =e*1een *-e &2(la%nan* and #e&+)%*, "+a)d Al=a, I a2 2)e %n&l%ned * =el%e5e and !%nd &)ed%=le
&2(la%nan*K# 5e)#%n *-a* -e 1a# 2a+led =, Al=a and, la*e), =, #2e ! *-e "+a)d#0
H%# le**e)L#*a*e2en* 1a# 2ade n Ma, 4, 7BB9, ) nl, a da, a!*e) *-e %n&%den*0 T-e #*a*e2en* ! "+a)d Al=a 1a# 2ade n Ma,
7:, 7BB9, #e5e)al da,# a!*e) *-e %n&%den*0
I !%nd *-a* &2(la%nan*K# #*a*e2en* %# !)e#-l, +n=le2%#-ed, and, *-e)e!)e, 5e), &)ed%=le 1-%le Al=aK# &n*)ad%&*), #*a*e2en* %#
*-e !)+%* ! a!*e)*-+"-*0
M)e5e), I dnK* !%nd *-e &2(la%nan* 1a# !l%#- en+"- * *), * #na*&- *-e "+n ! Al=a d+)%n" *-e %n&%den*0 I a2 &n5%n&ed
Al=a l%ed %n -%# #*a*e2en*0
< < < <
In *-e ()e#en* &a#e, n #l%d &a+#e e<%#*# * d%#2%## &2(la%nan* !)2 e2(l,2en* a# * 1a))an* a d%#2%##al0
7/
BCPI and Hn" a((ealed * *-e NLRC0
T50 NLRCF* R(,.n;
In %*# /? O&*=e) 7BB; Re#l+*%n, *-e NLRC a!!%)2ed %n ** *-e La=) A)=%*e)K# 4 J+l, 7BB3 De&%#%n0 T-e
NLRC -eld *-a*.
Al*-+"- !%"-*%n" 1%*-%n &2(an, ()e2%#e# &n#*%*+*e #e)%+# 2%#&nd+&*, *-%# -1e5e), de# n* a((l, %n *-%# &a#e0
C2(la%nan* d%d n* #*a)* n) ()5@e *-e !%"-*0 I* 1a# ()e&%(%*a*ed, %n#*ead, =, "+a)d Al=a 1-en -e *)%ed * "e* *-e
&2(la%nan*K# &a2e)a !) n 5al%d )ea#n0 T-e #*a*e2en* ! Al=a *-a* &2(la%nan* *)%ed * #na*&- -%# #e)5%&e !%)ea)2 %# n* nl,
+n=el%e5a=le =+* %# al# e<a""e)a*ed0 T-e La=) A)=%*e) %# &))e&* and 1e &n&+) %n -%# !%nd%n" *-a* *-e &2(la%nan* 1a# n*
!l%#- en+"- * *), * #na*&- *-e "+n ! Al=a0 T-e &a2e)a %# +nd%#(+*a=l, 1ned =, &2(la%nan*0 B)%n"%n" %* %n#%de -%#
1)@(la&e %# n* a &)%2e0 S 1-, 1+ld -e *), * #na*&- a "+n !) a 5e), *)%5%al 2%#+nde)#*and%n"0 W-a* %# &lea) %# *-a* *-e
#e&+)%*, "+a)d# 5e) a&*ed %n *-e (e)!)2an&e ! *-e%) d+*,0
< < < <
< < < T-e ()-%=%*%n a"a%n#* *-e =)%n"%n" ! (e)#nal =eln"%n"# %n * *-e 1)@ #*a*%nLa)ea %# C+al%!%ed =, a &nd%*%n *-a* #+&-
=eln"%n"# 1%ll d%#)+(*L=#*)+&* &2(an,K# #e)5%&e# and (e)a*%n#0 T-a* %# 1-, %n *-e en+2e)a*%n# *-e !ll1%n" a)e %n&l+ded,
)ad%#, 1al@2an, d%#&2an, 2a@eA+( @%*#, lad%e#K =a" 1)@e)#K @na(#a&@# and *-e l%@e0 An +nladed &a2e)a %# n* l%#*ed and 1e
&ann* %2a"%ne -1 #+&- &a2e)a &+ld Md%#)+(* ) =#*)+&* &2(an, #e)5%&e# and (e)a*%n#0
M)e5e), e5en %! 1e a##+2e *-a* *-e &2(la%nan* %ndeed 5%la*ed *-%# In*e)AO!!%&e Me2)and+2, #*%ll, *-%# 1%ll n* D+#*%!,
&2(la%nan*K# d%#2%##al =e&a+#e *-e (enal*, ()5%ded *-e)e%n %# nl, #%< $4' da,# #+#(en#%n !)2 1)@ 1%*-+* (a,, n*
d%#2%##al0
77
BCPI and Hn" !%led a 2*%n !) )e&n#%de)a*%n, 1-%&- *-e NLRC den%ed0 BCPI and Hn" !%led 1%*- *-e
C+)* ! A((eal# a (e*%*%n !) &e)*%)a)% +nde) R+le 4; ! *-e R+le# ! C+)*0
T50 C!(4+ !8 A110a,*F R(,.n;
In %*# 7B J+l, 7BB4 De&%#%n, *-e C+)* ! A((eal# #e* a#%de *-e /? O&*=e) 7BB; and 73 Jan+a), 7BB4
Re#l+*%n# ! *-e NLRC0 T-e C+)* ! A((eal# -eld *-a* M()%5a*e )e#(nden* en"a"ed -%2#el! %n a !%#*!%"-*
1%*- *-e #e&+)%*, "+a)dN
79
and *-a* en"a"%n" %n a !%#*!%"-* &n#*%*+*ed #e)%+# 2%#&nd+&*0
G+)an" !%led a 2*%n
73
!) )e&n#%de)a*%n, 1-%&- *-e C+)* ! A((eal# den%ed %n %*# // Se(*e2=e) 7BB4
Re#l+*%n0 Hen&e, *-e ()e#en* (e*%*%n0
T50 I**(0
G+)an" )a%#e# a# %##+e *-a* *-e C+)* ! A((eal# e))ed %n )+l%n" *-a* -e 1a# le"all, d%#2%##ed0 BCPI !a%led *
()5e *-a* -e en"a"ed %n a !%#*!%"-* and *-a* *-e)e 1a# D+#* &a+#e !) -%# d%#2%##al0
T50 C!(4+F* R(,.n;
T-e (e*%*%n %# 2e)%*)%+#0
A# a "ene)al )+le, nl, C+e#*%n# ! la1 2a, =e )a%#ed %n (e*%*%n# !) &e)*%)a)% +nde) R+le 3; ! *-e R+le# !
C+)*0 Se&*%n / ! R+le 3; #*a*e# *-a*, MT-e (e*%*%n #-all )a%#e nl, C+e#*%n# ! la10N In Triumph
)nternational ,!hils.-, )nc. v. (postol,
7;
*-e C+)* en+2e)a*ed e<&e(*%n# * *-e )+le0 A2n" *-e e<&e(*%n# a)e
1-en *-e !%nd%n"# ! !a&* a)e &n!l%&*%n" and 1-en *-e !%nd%n"# a)e &n&l+#%n# 1%*-+* &%*a*%n ! #(e&%!%&
e5%den&e n 1-%&- *-e, a)e =a#ed0
74
In *-e ()e#en* &a#e, *-e !%nd%n"# ! !a&* ! *-e C+)* ! A((eal# &n!l%&* 1%*- *-e !%nd%n"# ! !a&* ! *-e NLRC
and *-e La=) A)=%*e)0 Al#, *-e !%nd%n" ! *-e C+)* ! A((eal# *-a* G+)an" en"a"ed %n a !%#*!%"-* %# a
&n&l+#%n 1%*-+* &%*a*%n ! #(e&%!%& e5%den&e n 1-%&- %* %# =a#ed0
In *e)2%na*%n &a#e#, *-e e2(l,e) -a# *-e =+)den ! ()5%n", =, #+=#*an*%al e5%den&e, *-a* *-e d%#2%##al %# !)
D+#* &a+#e0 I! *-e e2(l,e) !a%l# * d%#&-a)"e *-e =+)den ! ()!, *-e d%#2%##al %# dee2ed %lle"al0 In (M(
omputer ollege : /ast &i*al v. )gnacio,
7?
*-e C+)* -eld *-a*.
In *e)2%na*%n &a#e#, *-e =+)den ! ()! )e#*# n *-e e2(l,e) * #-1 *-a* *-e d%#2%##al %# !) D+#* &a+#e0 W-en *-e)e %# n
#-1%n" ! a &lea), 5al%d and le"al &a+#e !) *-e *e)2%na*%n ! e2(l,2en*, *-e la1 &n#%de)# *-e 2a**e) a &a#e ! %lle"al
d%#2%##al and *-e =+)den %# n *-e e2(l,e) * ()5e *-a* *-e *e)2%na*%n 1a# !) a 5al%d ) a+*-)%Ied &a+#e0 And *-e C+an*+2 !
()! 1-%&- *-e e2(l,e) 2+#* d%#&-a)"e %# #+=#*an*%al e5%den&e0 An e2(l,eeK# d%#2%##al d+e * #e)%+# 2%#&nd+&* 2+#* =e
#+(()*ed =, #+=#*an*%al e5%den&e0 S+=#*an*%al e5%den&e %# *-a* a2+n* ! )ele5an* e5%den&e a# a )ea#na=le 2%nd 2%"-* a&&e(* a#
adeC+a*e * #+(()* a &n&l+#%n, e5en %! *-e) 2%nd#, eC+all, )ea#na=le, 2%"-* &n&e%5a=l, (%ne *-e)1%#e0
7:
In *-e ()e#en* &a#e, a#%de !)2 Al=aK# #*a*e2en*, BCPI d%d n* ()e#en* an, e5%den&e * #-1 *-a* G+)an"
en"a"ed %n a !%#*!%"-*0 M)e5e), *-e)e %# n #-1%n" *-a* G+)an"K# a&*%n# 1e)e (e)!)2ed 1%*- 1)n"!+l
%n*en*0 In (M( omputer ollege ; /ast &i*al, *-e C+)* -eld *-a*.
T-e La=) Cde ()5%de# *-a* an e2(l,e) 2a, *e)2%na*e *-e #e)5%&e# ! an e2(l,ee !) a D+#* &a+#e0 A2n" *-e D+#* &a+#e# %n
*-e La=) Cde %# #e)%+# 2%#&nd+&*0 M%#&nd+&* %# %2()(e) ) 1)n" &nd+&*0 I* %# *-e *)an#")e##%n ! #2e e#*a=l%#-ed and
de!%n%*e )+le ! a&*%n, a !)=%dden a&*, a de)el%&*%n ! d+*,, 1%ll!+l %n &-a)a&*e), and %2(l%e# 1)n"!+l %n*en* and n* 2e)e e)))
%n D+d"2en*0 T-e 2%#&nd+&* * =e #e)%+# 1%*-%n *-e 2ean%n" ! *-e La=) Cde 2+#* =e ! #+&- a ")a5e and a"")a5a*ed
&-a)a&*e) and n* 2e)el, *)%5%al ) +n%2()*an*0 < < <
In $ational "a%or &elations ommission v. Salgarino, *-e C+)* #*)e##ed *-a* ME.Fn !4d04 +! 9!n*+.+(+0 *04.!(* /.*9!nd(9+
75.95 7.,, 7a44an+ +50 d.*/.**a, !8 an 0/1,!-00 (nd04 1a4a;4a15 (a) !8 A4+.9,0 &A& !8 +50 La6!4 C!d0, .+ .* n!+ *(88.9.0n+
+5a+ +50 a9+ !4 9!nd(9+ 9!/1,a.n0d !8 5a* :.!,a+0d *!/0 0*+a6,.*50d 4(,0* !4 1!,.9.0*. I+ .* 0G(a,,- ./1!4+an+ and 40G(.40d
+5a+ +50 a9+ !4 9!nd(9+ /(*+ 5a:0 600n 1048!4/0d 7.+5 74!n;8(, .n+0n+0N
A!*e) a *-)+"- e<a2%na*%n ! *-e )e&)d# ! *-e &a#e, -1e5e), *-e C+)* !%nd# *-a* (e*%*%ne) AMACCI 2%#e)a=l, !a%led *
()5e =, #+=#*an*%al e5%den&e %*# &-a)"e# a"a%n#* )e#(nden*0 T-e)e %# n #-1%n" a* all *-a* )e#(nden*K# a&*%n# 1e)e 2*%5a*ed
=, a (e)5e)#e and 1)n"!+l %n*en*, a# )eC+%)ed =, A)*%&le 7:7$a' ! *-e La=) Cde0
7>
$E2(-a#%# #+((l%ed'
T-e #+))+nd%n" &%)&+2#*an&e# #-1 *-a* G+)an" d%d n* en"a"e %n a !%#*!%"-*. $/' %n -%# > Ma, 7BB9 le**e) *
BCPI, J+an%*a# &))=)a*ed G+)an"K# 5e)#%n ! *-e !a&*#6 $7' n=d, &))=)a*ed Al=aK# 5e)#%n ! *-e
!a&*#6 $9' %n -%# 2ed%&al )e()*, D)0 A"+%nald !+nd *-a* G+)an" #+!!e)ed (-,#%&al %nD+)%e#6 $3' G+)an" !%led
1%*- *-e MCTC a &2(la%n* a"a%n#* Al=a, C)de) and Pa=l%# !) #l%"-* (-,#%&al %nD+),6 $;' *-e La=) A)=%*e)
!+nd G+)an"K# #*a*e2en* &)ed%=le and +n=le2%#-ed6 $4' *-e La=) A)=%*e) !+nd Al=aK# #*a*e2en*
&n*)ad%&*),6 $?' *-e La=) A)=%*e) #*a*ed, MI a2 &n5%n&ed Al=a l%ed %n -%# #*a*e2en*N6 $:' *-e NLRC !+nd
*-a* G+)an" d%d n* #*a)* a !%"-*6 $>' *-e NLRC !+nd Al=aK# #*a*e2en* +n=el%e5a=le and e<a""e)a*ed6 and
$/B' *-e C+)* ! A((eal#K )e5e)#al ! *-e !%nd%n"# ! !a&* ! *-e La=) A)=%*e) and *-e NLRC %# =a#ele##0
In Triumph )nternational ,!hils.-, )nc., *-e C+)* -eld *-a* !a&*+al !%nd%n"# ! la=) !!%&%al#, 1- a)e dee2ed
* -a5e a&C+%)ed e<(e)*%#e %n 2a**e)# 1%*-%n *-e%) D+)%#d%&*%n, a)e a&&)ded n* nl, )e#(e&* =+* !%nal%*, 1-en
#+(()*ed =, #+#=#*an*%al e5%den&e0
9B
WHERE'ORE, 1e RANT *-e (e*%*%n0 We SET ASIDE *-e 7B J+l, 7BB4 De&%#%n and // Se(*e2=e)
7BB4 Re#l+*%n ! *-e C+)* ! A((eal# %n CAAG0R0 SP N0 >3BB3 and REINSTATE *-e /? O&*=e) 7BB;
and 73 Jan+a), 7BB4 Re#l+*%n# ! *-e NLRC %n CA N0 B3337:AB;0
SO ORDERED0
THIRD DIVISION


AMA COMPUTER COLLEE-EAST
RIZAL, AMABLE C. AUILUZ and
ANTHON> JESUS R. VINCE CRUZ,
Pe*%*%ne)#,



A versus A



ALLAN RA>MOND R. INACIO,
Re#(nden*0
.R. N!. "%AB&<

P)e#en*.

YNARESASANTIAGO, J.,
C-a%)(e)#n,
CHICOANAZARIO,
VELASCO, JR0,
NACHURA, and
PERALTA, JJ0

P)2+l"a*ed.


J+ne 79, 7BB>
<A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A<


D E C I S I O N


CHICOANAZARIO, J0.


T-%# %# a Pe*%*%n !) Re5%e1 n ertiorari +nde) R+le 3; ! *-e R+le# ! C+)* #ee@%n" * #e* a#%de
*-e De&%#%n
E/F
da*ed 77 De&e2=e) 7BB4 and *-e Re#l+*%n
E7F
da*ed 3 J+ne 7BB? ! *-e C+)* ! A((eal#
%n CAAG0R0 SP N0 4?B3?0 T-e C+)* ! A((eal#, %n %*# a##a%led De&%#%n, )+led *-a* )e#(nden* Allan
Ra,2nd R0 I"na&% 1a# %lle"all, d%#2%##ed =, (e*%*%ne)# AMA C2(+*e) Clle"e, In&0 $AMACCI',
A2a=le C0 A"+%l+I $A"+%l+I' and An*-n, Je#+# R0 V%n&e C)+I $C)+I', *-+#, )e5e)#%n" and #e**%n" a#%de
*-e Re#l+*%n da*ed : De&e2=e) 7BBB ! *-e Na*%nal La=) Rela*%n# C22%##%n $NLRC' %n NLRC
NCR CA N0 B73443A7BBB, 1-%&- a!!%)2ed *-e De&%#%n da*ed /> A()%l 7BBB ! *-e La=) A)=%*e) %n
NLRC Ca#e N0 RABAIVA/BA//439A>>AR0 T-e a((ella*e &+)* den%ed %n %*# a##a%led Re#l+*%n *-e
M*%n !) Re&n#%de)a*%n ! *-e (e*%*%ne)#0

T-e !a&*+al an*e&eden*# ! *-%# &a#e a)e a# !ll1#.

Pe*%*%ne) AMACCI %# a &)()a*%n )"an%Ied and e<%#*%n" +nde) and =, 5%)*+e ! P-%l%((%ne la1#,
en"a"ed %n *-e =+#%ne## ! ()5%d%n" &2(+*e) ed+&a*%n, a2n" *-e) &+)#e#0
E9F
AMA C2(+*e)
Clle"eAEa#* R%Ial $AMACCAER' %# ne ! %*# =)an&-e#0 Pe*%*%ne)# A"+%l+I and C)+I a)e P)e#%den* and
H+2an Re#+)&e D%)e&*), )e#(e&*%5el,, ! (e*%*%ne) AMACCI0

Re#(nden* 1a# !%)#* e2(l,ed n 7; Se(*e2=e) />>: a* an*-e) =)an&- ! AMACCI, na2el,,
AMA C2(+*e) Clle"eAFa%)5%e1 $AMACCAFV', a# Mana"e2en* T)a%nee $Ma%n*enan&e S+(e)5%#)'
1%*- a 2n*-l, #ala), ! P?,?BB0BB0
E3F
T-)ee 2n*-# *-e)ea!*e), n 7> De&e2=e) />>:, )e#(nden* 1a#
")an*ed (e)2anen* #*a*+# and -%# 2n*-l, #ala), 1a# %n&)ea#ed * P//,BBB0BB0
E;F

U(n *-e )e&22enda*%n ! AMACCAER S&-l D%)e&*)LC-%e! O(e)a*%n" O!!%&e) $COO' L,d%a
Ta"an"+%n $Ta"an"+%n' * AMACCI V%&e P)e#%den* !) H+2an Re#+)&e Pa*)%&@ Ala%n AIanIa,
)e#(nden* 1a# *)an#!e))ed * AMACCAER e!!e&*%5e /4 A+"+#* />>>0 T-e *)an#!e) 1a# 2ade =e&a+#e !
*-e ()e##%n" deadl%ne =)+"-* a=+* =, *-e ISO >BBB O(lan ! AMACCI0 AMACCAER 1a# #&-ed+led *
=e %n#(e&*ed !) Ce)*%!%&a*%n =, *-e In*e)na*%nal O)"an%Ia*%n !) S*anda)d%Ia*%n $ISO'
E4F
%n *-e !%)#*
1ee@ ! Se(*e2=e) />>>0
E?F

On -%# !%)#* da, ! *)an#!e) * AMACCAER, )e#(nden* 1en* * AMACCI Head O!!%&e * &n#+l*
AMACCI A##%#*an* V%&e P)e#%den* !) Cn#*)+&*%n, En"%nee) Nel N=leIa $N=leIa', n *-e )en5a*%n
(lan !) *-e AMACCAER #&-l !a&%l%*%e#0 T-e )en5a*%n ! *-e AMACCAER #&-l !a&%l%*%e# 1a# * =e
+nde)*a@en a# (a)* ! *-e ISO >BBB O(lan0 N=leIa *ld )e#(nden* *-a* #%n&e *-e )en5a*%n 1a# a 2aD)
ne, *-e la**e) needed * #e&+)e *-e a(()5al ! AMA Ed+&a*%nal S,#*e2$AMAES'
E:F
V%&e P)e#%den*
Zena%da Ca)(% $Ca)(%'0 S%n&e Ca)(% 1a# +* ! -e) !!%&e, I"na&% 1en* a-ead * &n#+l* AMACCAER
S&-l D%)e&*)LCOO Ta"an"+%n, and *-en * #e&+)e *-e a(()5al ! M)0 J#el%* D2%n", 1ne) ! *-e
JL D2%n" B+%ld%n" %n 1-%&- *-e AMACCAER #&-l !a&%l%*%e# 1e)e l&a*ed0 I* 1a# Ta"an"+%n 1-
=)+"-* *-e )en5a*%n (lan * Ca)(%, 1- a(()5ed *-e #a2e0 A* a)+nd ;.9B (020 ! *-e #a2e da,,
)e#(nden* &nd+&*ed an e2e)"en&, !!%&e)#K 2ee*%n" a* AMACCAER * d%#&+## *-e a(()5ed )en5a*%n
(lan0 P)e#en* a* *-e #a%d 2ee*%n" 1e)e *-e *1 &lle"e dean# and all *-e de(a)*2en* -ead# ! AMACCA
ER0
E>F

Re#(nden* #*a)*ed de2l%#-%n" *-e &n&)e*e (a)*%*%n 1all ! *-e &2(+*e) la=)a*), n /:
A+"+#* />>>0 In *-e 2)n%n" ! *-e !ll1%n" da,, *-e 2a%n*enan&e &)e1, !ll1%n" )e#(nden*K# )de),
=)+"-* (l,1d * &5e) *-e +n!%n%#-ed d) (en%n" ! *-e &2(+*e) la=)a*),0 Ca)(% and AMACCI
A##%#*an* V%&e P)e#%den* Baln Pana, $Pana,' &a2e * AMACCAER * &nd+&* an %n#(e&*%n0

H1e5e), n 7; A+"+#* />>>, *-e A+d%* De(a)*2en* ! AMACCI !%led a &2(la%n* a"a%n#*
)e#(nden*, &-a)"%n" -%2 1%*- M$*'-)ea*en%n" * da2a"e &2(an, ()(e)*,, ne"l%"en&e ) !a%l+)e *
e<e)&%#e adeC+a*e a##e* &n*)l 2ea#+)e# 1%*-%n neK# a)ea ! )e#(n#%=%l%*,0N

Re#(nden* *-en )e&e%5ed n 9 Se(*e2=e) />>> a Me2)and+2
E/BF
da*ed 7 Se(*e2=e) />>> !)2
(e*%*%ne) C)+I, *-e AMACCI H+2an Re#+)&e D%)e&*), %n!)2%n" *-e !)2e) *-a* a &2(la%n* 1a# !%led
a"a%n#* -%2 !) %ne<&+#a=le ")## ne"l%"en&e )e#+l*%n" %n #e)%+# da2a"e * 9; &2(+*e)# and l## !
&la## )e&)d#Le<a2#, and %n#*)+&*%n" -%2 * #+=2%* -%# 1)%**en e<(lana*%n and e5%den&e n *-a* #a2e
da,0 Re#(nden* 1a# l%@e1%#e (la&ed n ()e5en*%5e #+#(en#%n0
E//F

In a Me2)and+2 da*ed 4 Se(*e2=e) />>>, *-e H+2an Re#+)&e De(a)*2en* $HRD' ! AMACCI
)e()*ed.

On Se(*e2=e) B9, />>>, )e#(nden* M)0 Allan I"na&% 2e* 1%*- *-e &22%**ee 2e2=e)# * a%) -%# #%de n *-e
alle"a*%n# ld"ed a"a%n#* -%20

I0 S*a*e2en*# !.

/0/ Allan I"na&%.

Be!)e I 1a# a##%"ned a* AMACC X Ea#* R%Ial I 1a# al)ead, %n!)2ed ! *-e ()=le2 %n *-e =+%ld%n" 1-%&-
need# * =e )en5a*ed =a#ed n *-e &(, ! *-e =+%ld%n" (lan ()5%ded * +# =, *-e 1ne)0 See%n" *-a* *-e
)en5a*%n (lan 1a# #%"ned =, *-e VP !) Ed+&a*%n and *-e S&-l D%)e&*), I de&%ded * #*a)* 1%*- *-e
de2l%*%n ! *-e (a)*%*%n *a@%n" %n* #e)%+# &n#%de)a*%n *-a* I 1a# "%5en nl, a !e1 da,# * &2(l, 1%*-
*-e deadl%ne0 I 1a# *-en &n!%den* *-a* I need n* &)d%na*e 1%*- an,=d, =e&a+#e n *-e e5en%n" ()%) * *-e
de2l%*%n, M#0 Ta"an"+%n, *-e S&-l D%)e&*) &alled !) a 2ee*%n" * %n!)2 *-e &n&e)ned de(a)*2en* -ead#
a=+* (##%=le &-an"e# 1%*-%n *-e JL D2%n" =+%ld%n"0 T-%n@%n" *-a* *-e 2e##a"e 1a# &lea) * e5e),=d,
()e#en* d+)%n" *-e 2ee*%n", I *-+"-* *-a* *-e a"enda %# &lea)l, %2(l%ed6 *-a* I &an al)ead, ()&eed 1%*- *-e
de2l%*%n 1%*-+* #ee@%n" !) an*-e) )+nd ! a(()5al0 Hen&e, I *@ %* +(n 2,#el! * #*a)* *-e !ll1%n"
da, =e&a+#e M#0 Ta"an"+%n a**ended *-e C)(lan n *-a* da,0

I =el%e5e *-a* I -a5e *a@en %n* &n#%de)a*%n *-e ()e&a+*%na), 2ea#+)e# needed, -en&e, I (+* an a#=e#*# #-ee*
and a (l,1d * &5e) *-e &2(+*e)# %n#%de *-e )20

T-e &2(+*e) +n%*# d%d n* #+#*a%n an, da2a"e0 T-%# &an =e a**e#*ed =, *-e &e)*%!%&a*%n %##+ed =, *-e IT
S+(e)5%#)0

/070 El#%e Ta=l%#2a.

On A+"+#* /:, />>> *-e Ma%n*enan&e S+(e)5%#) Allan I"na&% #*a)*ed * #-a**e) *-e &e2en*ed 1all (a)*%*%n !
&2(+*e) la=)a*), a* *-e J0L0 D2%n" B+%ld%n"0 T-e IT De(a)*2en* and *-e ()(e)*, de(a)*2en* 1e)e n*
%n!)2ed ! *-e #a%d de2l%*%n0 T-%# )e#+l*ed * *-e e<(#+)e ! *-%)*,A!%5e $9;' &2(+*e) +n%*# * (##%=le
l## and da2a"e#0

< < < <

/090 M)0 Da)1%n Ra2#.

On A+"+#* 7B, />>> 1-en I, *"e*-e) 1%*- M)0 A)nld Ne&% and R+(e)* Ve)dad &nd+&*ed %n5en*),
! &2(+*e)# a* *-e J0L0 B+%ld%n", 1e !+nd +* *-a* (a)* ! *-e &n&)e*e 1all ! *-e la=)a*), 1a# al)ead,
de2l%#-ed0 We al# d%#&5e)ed *-a* *-e &2(+*e)# 1e)e n* 25ed a1a, !)2 *-e !all%n" de=)%# &2%n" !)2
*-e &n&)e*e 1all#0

/030 M)0 A)n+l! Ne&%.

A* :.9B *da,, A+"+#* 7B, />>>, 1e a)e #+((#ed * &nd+&* %n5en*), ! )e&en*l, del%5e)ed &2(+*e)#
* "e* *-e #e)%al n+2=e)#0 H1e5e), 1e !+nd +* *-e 1all 1a# de2l%#-ed 1%*-+* +) @n1led"e0 T-e)e
1e)e *)+2(# and 2a%n*enan&e (e)#nnel 1)@%n" %n#%de *-e &2(+*e) la=)a*), a* *-a* *%2e, &)ea*%n" an*-e)
-le !) a%) &nd%*%n%n" +n%*0 We n*ed *-a* #2e ! *-e &2(+*e)# -a5e de=)%# !)2 *-e #2a#-ed &e2en*ed
1all%n"0

II0 Anal,#%# ! Fa&*# P)e#en*ed.

Ba#ed n *-e #*a*e2en*# #+=2%**ed, *-e &22%**ee -e)e=, #*a*e# *-e !%nd%n"#.

/0 T-a* M)0 Allan I"na&% 1%*-+* #ee@%n" 1)%**en a(()5al * ()&eed, -a# )de)ed *-e #*a)* ! *-e de2l%*%n
()De&* n A+"+#* /:, />>>0 L%@e1%#e, -e d%d n* %n!)2 *-e &n&e)ned de(a)*2en*# ! -%# 25e -en&e, *-e
&2(+*e) +n%*# 1e)e n* ()(e)l, #e&+)ed0

70 Re#(nden* a##+2ed *-a* d+)%n" *-e &nd+&* ! *-e 2ee*%n" *-e e5en%n" =e!)e, all &n&e)ned e2(l,ee# -a5e
al)ead, +nde)#*d 1-a* -a# =een %2(l%ed a=+* *-e )en5a*%n0

90 He d%d n* &)d%na*e -%# a&*%n 1%*- *-e ()(e) &-annel# and d%d n* e<e)&%#e d+e d%l%"en&e =e!)e -e #*a)*ed
*-e de2l%*%n ! *-e &2(+*e) la=)a*),0

30 H%# a&* &+ld -a5e &a+#ed *-e (##%=le l##Lda2a"e ! *-e &2(+*e) +n%*# 1-%&- 1e)e e<(#ed0

< < < <

III0 Re&22enda*%n.

Ta@%n" *-e a=5e !%nd%n"# %n* #e)%+# &n#%de)a*%n, %* %# )e&22ended *-a* )e#(nden* Allan I"na&% =e d+l,
#an&*%ned !) -%# !!en#e0 He -a# &lea)l, 5%la*ed R+le E Se&*%n 3 ! *-e &2(an, &de ! &nd+&*0 T-e
&))e#(nd%n" #an&*%n !) *-%# %# DISMISSAL0
E/7F


In a&&)dan&e 1%*- *-e !)e"%n" )e&22enda*%n ! *-e HRD ! AMACCI, )e#(nden* 1a#
*e)2%na*ed !)2 e2(l,2en* n > Se(*e2=e) />>>0
E/9F

On 7? O&*=e) />>>, )e#(nden* !%led 1%*- *-e NLRC a &2(la%n* !) %lle"al d%#2%##al, nnA
(a,2en* ! #ala)%e# and 1a"e#, 5e)*%2e (a,, -l%da, (a, and )e#* da, da2a"e# a"a%n#* (e*%*%ne)#0
E/3F
Re#(nden*K# &2(la%n* 1a# d&@e*ed a# NLRC Ca#e N0 RABAIVA/BA//439A>>AR0

Pe*%*%ne)# den%ed *-a* )e#(nden* 1a# %lle"all, d%#2%##ed0 T-e, &n*ended *-a* n /: A+"+#*
/>>>, =a)el, e%"-* da,# a!*e) a##+2%n" *-e (#%*%n ! Ma%n*enan&e S+(e)5%#) a* AMACCAER,
)e#(nden* &a+#ed *-e de2l%*%n ! a 1all (a)*%*%n %n *-e &2(+*e) la=)a*), 1%*-+* *-e ()(e)
a+*-)%Ia*%n !)2 *-e de(a)*2en*# &n&e)ned0 T-e In!)2a*%n Te&-nl", $IT' De(a)*2en* 1a# n*
%n!)2ed ! *-e de2l%*%n ! *-e &2(+*e) la=)a*),, &a+#%n" *-e e<(#+)e ! 9; &2(+*e) +n%*# * l##
and da2a"e#0 W)#e, a!*e) *-e de2l%*%n, )e#(nden* le!* *-e la=)a*), (en and d%d n* e5en &5e) *-e
de2l%#-ed 1all, e<(#%n" *-e la=)a*), eC+%(2en* and #&-l )e&)d# * (##%=le *-e!*0 Indeed, #&-l
)e&)d# 1e)e l#* *-e ne<* da, d+e * *-e (en 1all (a)*%*%n0

Pe*%*%ne)# al# alle"ed *-a* )e#(nden* 1a# &-a)"ed 1%*- a 5e), #e)%+# !!en#e, i.e., da2a"%n"
&2(an, ()(e)*, *-)+ ")## ne"l%"en&e, ) *-)ea*en%n" * da2a"e &2(an, ()(e)*, e%*-e) 1%ll!+ll, )
*-)+ ne"l%"en&e, &5e)ed =, le**e) $e' ! N0 3, R+le IV E2(l,ee Cnd+&* and D%#&%(l%ne0
E/;F
T-e
&))e#(nd%n" (enal*, !) #+&- an !!en#e %# d%#2%##al, a# ()5%ded !) %n *-e D%#&%(l%na), A&*%n# ! *-e
E2(l,ee# Man+al0
E/4F


Pe*%*%ne)# !+)*-e) %n#%#*ed *-a* *-e, &2(l%ed 1%*- *-e )eC+%)e2en*# ! ()&ed+)al d+e
()&e##0 T-e *1%n )eC+%)e2en*# ! n*%&e and -ea)%n", 1-%&- &n#*%*+*e e##en*%al ele2en*# ! d+e ()&e##
%n &a#e# ! e2(l,ee d%#2%##al, 1e)e &2(l%ed 1%*-0 Pe*%*%ne)# "a5e )e#(nden* a !%)#* n*%&e !
%n5e#*%"a*%n and *-e (()*+n%*, * =e -ea)d and * ()e#en* e5%den&e n -%# =e-al! n 9 Se(*e2=e)
/>>> a* /.BB (020 D+)%n" *-e #&-ed+led -ea)%n", )e#(nden* 1a# a=le * e<(la%n -%# (#%*%n and #+=2%*
-%# e5%den&e0 On 4 Se(*e2=e) />>>, *-e In5e#*%"a*%n" C22%**ee )+led *-a* )e#(nden* 1a# "+%l*, a#
&-a)"ed and )e&22ended *-a* -e =e #an&*%ned and d%#2%##ed0 Re#(nden* 1a# "%5en *-e #e&nd n*%&e,
da*ed > Se(*e2=e) />>>, *e)2%na*%n" -%# e2(l,2en*0 T-+#, =*- #+=#*an*%5e and ()&ed+)al d+e ()&e##
1e)e #*)%&*l, &2(l%ed 1%*- =, (e*%*%ne)#0

In -e) De&%#%n da*ed /> A()%l 7BBB %n NLRC Ca#e N0 RABAIVA/BA//439A>>AR, La=) A)=%*e)
N%e5e# De Ca#*) -eld *-a* )e#(nden* 1a# le"all, d%#2%##ed0 T-e La=) A)=%*e) !+nd *-a* *-e)e 1a#
#+=#*an*%5e ")+nd * D+#*%!, )e#(nden*K# d%#2%##al.

T-e)e %# n d+=* *-a* E-e)e%n (e*%*%ne)#KF e5%den&e %# #+=#*an*%al0 We a)e 2)e *-an &n5%n&ed *-a*
E-e)e%n )e#(nden*F &22%**ed a 5e), #e)%+# !!en#e ! de2l%#-%n" 1%*-+* (e)2%##%n !)2 *-e 2ana"e2en*
*-e 1all (a)*%*%n ! *-e &2(+*e) la=)a*),0 W)#e, a!*e) *-e de2l%*%n, E)e#(nden*F le!* *-e la=)a*),
(en 1-%&- )e#+l*ed %n *-e l## ! &la## )e&)d#0

Ye*, E)e#(nden*F -ad *-e *e2e)%*, * *ell *-a* *-e #a!e@ee(%n" ! d&+2en*# 1a# n* (a)* ! -%# d+*%e#
a# Ma%n*enan&e S+(e)5%#)0 T-%#, * +) 2%nd de2n#*)a*e# *-e )e()e-en#%=le &-a)a&*e) ! *-e
E)e#(nden*F0 He @ne1 !+ll, 1ell *-a* %* 1a# -%# +na+*-)%Ied de2l%*%n ! *-e 1all (a)*%*%n and lea5%n" %*
(en *-e)ea!*e) 1-%&- lead * *-e l## ! #&-l )e&)d#0 M)e5e), -e d%d n* e5en =*-e) * e<(la%n 1-, -e
&a+#ed *-e de2l%*%n ! *-e 1all (a)*%*%n n -%# 1n 1%*-+* (e)2%##%n ) e5en *-e &+)*e#, ! n*%&e * *-e
2ana"e2en*0 We #-+ld n* l## $#%&' #%"-* ! *-e !a&* *-a* E)e#(nden*F %# a #+(e)5%#) and n* an )d%na),
la=)e) 1-#e la(#e# 2a, =e 2)e ea#%l, &ndned0 H%# %# n* a 2e)e la(#e =+* a #e)%+# 2%#&nd+&*0

A#%de !)2 *-%# #e)%+# 2%#&nd+&*, *-e #+=#eC+en* a&* ! lea5%n" *-e la=)a*), (en e<(#%n" *-e
&2(+*e)# and d&+2en*# * l## and da2a"e &n#*%*+*e# ")## ne"l%"en&e0 T)+e en+"-, &la## )e&)d# 1e)e
l#* *-e ne<* da, d+e * *-e (en 1all (a)*%*%n0

Sa%d ne"l%"en&e %# n* a# #%2(le a# E)e#(nden*F 1+ld l%@e * 2a@e %* a((ea)0 S*+den*K# #&-la#*%&
)e&)d# %# *-e 5e), 2ea* ! an ed+&a*%n %n#*%*+*%nK# =+#%ne##0 O)"an%Ied !%l%n" and #a!e@ee(%n" *-e)e! 2a@e#
*-e #&-l a )e(+*a=le ne0

< < < <

H1e5e), -e &22%**ed 2)e #e)%+# !!en#e# 1-%&- &+ld n ln"e) =e (a)dned =, *-e 2ana"e2en*0
E/?F


T-e La=) A)=%*e) al# )+led *-a* (e*%*%ne)# &2(l%ed 1%*- ()&ed+)al d+e ()&e## %n )e#(nden*K#
d%#2%##al.

N1, n *-e ()&ed+)al a#(e&* ! *e)2%na*%n ! e2(l,2en*, *%2e and a"a%n, *-e S+()e2e C+)*
)e(ea*edl, -eld *-a* a *)%al *,(e -ea)%n" %# n* a 2+#*0 W-en &2(la%nan* 1a# "%5en *-e (()*+n%*, * #+=2%*
1)%**en e<(lana*%n, -e d%d n* #+=2%*0 T-en, d+)%n" *-e #&-ed+led -ea)%n"# a* *-e &2(an, le5el, -e 1a# a=le
* ()e#en* -%# #%de0 T-%# %# d+e ()&e##, *-e e##en&e ! 1-%&- %# #%2(l, *-e (()*+n%*, * =e -ea)d0 W-a* *-e
la1 and D+)%#()+den&e ()-%=%*# %# a=#l+*e a=#en&e ! *-e (()*+n%*, * =e -ea)d0
E/:F


A* *-e end, *-e La=) A)=%*e) de&la)ed.


In !%ne, *-e)e %# n %lle"al d%#2%##al * #(ea@ !0

PREMISED CONSIDERED, all *-e &la%2# !) da2a"e# )e#+l*%n" !)2 *-e d%#2%##al, %0e0, 2ed%&al
e<(en#e#, )e!+nd ! *+%*%n !ee#, )e%2=+)#e2en* !) *l# and eC+%(2en*, 2)al and e<e2(la), da2a"e# 2+#*
ne&e##a)%l, !a%l, *-e)e =e%n" n =ad !a%*- ) %lle"al%*, n *-e (a)* ! *-e 2ana"e2en* %n e!!e&*%n" *-e d%#2%##al0

WHEREFORE, *-%# &2(la%n* %# -e)e=, DISMISSED !) la&@ ! 2e)%*0
E/>F


Re#(nden* a((ealed *-e a!)eAC+*ed De&%#%n ! *-e La=) A)=%*e) * *-e NLRC0 H%# a((eal
1a# d&@e*ed a# NLRC NCR CA N0 B73443A7BBB0 On : De&e2=e) 7BBB, *-e NLRC %##+ed a
Re#l+*%n
E7BF
d%#2%##%n" )e#(nden*K# a((eal a# %* !+nd n &"en* )ea#n * 2d%!, and )e5e)#e *-e
!a&*+al !%nd%n"# ! *-e La=) A)=%*e)0 Re#(nden*K# 2*%n !) )e&n#%de)a*%n 1a# den%ed =, *-e NLRC
%n a Re#l+*%n
E7/F
da*ed 79 J+l, 7BB/0

Re!+#%n" * "%5e +(, )e#(nden* !%led 1%*- *-e C+)* ! A((eal#, a Pe*%*%n !) ertiorari, +nde)
R+le 4; ! *-e Re5%#ed R+le# ! C+)*, d&@e*ed a# CAAG0R0 SP N0 4?B3?0 T-e C+)* ! A((eal#
)ende)ed %*# De&%#%n da*ed 77 De&e2=e) 7BB4, !%nd%n" *-a* )e#(nden* 1a# %lle"all,
d%#2%##ed0 A&&)d%n" * *-e a((ella*e &+)*, %* &ann* &n#%de) )e#(nden*K# *)an#")e##%n a# #e)%+#
2%#&nd+&* 1-en -%# a&*+a*%n 1a# n* 1%ll!+l and del%=e)a*e, *-e)e a((ea)%n" * =e n %n*en*%n n -%#
(a)* * &a+#e da2a"e0 And al*-+"- *-e C+)* ! A((eal# adD+d"ed *-a* )e#(nden* 1a# "+%l*, !
ne"l%"en&e, %* 1a# n* ")## ) -a=%*+al a# 1+ld 1a))an* *-e d%#2%##al ! )e#(nden*0 T-e d%#(#%*%5e
()*%n ! *-e 77 De&e2=e) 7BB4 De&%#%n ! *-e a((ella*e &+)* *-+# )ead# O

WHEREFORE, *-e (e*%*%n %# GRANTED and *-e De&%#%n ! La=) A)=%*e) N%e5e# De Ca#*) and
*-e Re#l+*%n# ! *-e Na*%nal La=) Rela*%n C22%##%n da*ed De&e2=e) :, 7BBB and J+l, 79, 7BB/ a)e
REVERSED and SET ASIDE and a ne1 D+d"2en* %# -e)e=, en*e)ed.

He)e%n E-e)e%n (e*%*%ne) AMACCIF %# -e)e=, )de)ed * (a, E-e)e%n )e#(nden*F #e(a)a*%n (a,
eC+%5alen* * ne 2n*- !) e5e), ,ea) ! #e)5%&e * =e )e&@ned !)2 *-e end ! -%# *-%)*,Ada, #+#(en#%n +(
* *-e !%nal%*, ! *-%# de&%#%n, %n add%*%n * -%# !+ll =a&@ 1a"e# all1an&e# and *-e) =ene!%*#0 N &#*#0
E77F


Pe*%*%ne)#K M*%n !) Re&n#%de)a*%n 1a# den%ed =, *-e a((ella*e &+)* %n a Re#l+*%n da*ed 3
J+ne 7BB?0

Pe*%*%ne)# a)e n1 =e!)e *-%# C+)* )a%#%n" *-e !ll1%n" %##+e# O

STATEMENT OF THE ISSUES

THE HONORABLE COURT OF APPEALS ERRED IN DEPARTING FROM THE ACCEPTED AND
USUAL COURSE OF JUDICIAL REVIEW0

THE HONORABLE COURT OF APPEALS ERRED IN MAPING ITS OWN FINDINGS OF FACTS
CONTRARY TO WHAT THE LABOR ARBITER AND THE NATIONAL LABOR RELATIONS
COMMISSION ADMITTED IN THE PROCEEDINGS BEFORE THEIR RESPECTIVE OFFICES0

THE HONORABLE COURT OF APPEALS ERRED IN REFUSING TO ADMIT AS SUBSTANTIAL THE
PIECES OF EVIDENCE SUBMITTED BY THE PETITIONERS FOR NOT HAVING BEEN MADE
UNDER OATH0

THE HONORABLE COURT OF APPEALS ERRED IN HOLDING THE DISMISSAL OF RESPONDENT
AS ILLEGAL AND IN STATING THAT THE GROUND UPON WHICH RESPONDENT WAS
DISMISSED CANNOT BE CONSIDERED AS SERIOUS MISCONDUCT0
E79F


T-e Pe*%*%n %# n* 2e)%*)%+#0

A* *-e +*#e*, *-e C+)* 2+#* add)e## (e*%*%ne)#K a)"+2en* *-a* *-e C+)* ! A((eal# 1en*
=e,nd %*# D+)%#d%&*%n 1-en %* )eAe5al+a*ed *-e !%nd%n"# ! !a&* ! *-e La=) A)=%*e), a# a!!%)2ed =, *-e
NLRC0
E73F


T-e "ene)al )+le, n d+=*, %# *-a* !%nd%n"# ! !a&* ! an ad2%n%#*)a*%5e a"en&,, 1-%&- -a#
a&C+%)ed e<(e)*%#e %n *-e (a)*%&+la) !%eld ! %*# endea5), a)e a&&)ded ")ea* 1e%"-* n a((eal0 T-e )+le %#
n* a=#l+*e and ad2%*# ! &e)*a%n 1ellA)e&"n%Ied e<&e(*%n#, -1e5e)0 T-+#, 1-en *-e !%nd%n"# ! !a&*
! *-e La=) A)=%*e) and *-e NLRC a)e n* #+(()*ed =, #+=#*an*%al e5%den&e ) *-e%) D+d"2en* 1a# =a#ed
n a 2%#a(()e-en#%n ! !a&*#, *-e a((ella*e &+)* 2a, 2a@e an %nde(enden* e5al+a*%n ! *-e !a&*# ! *-e
&a#e, 1-%&- ()&ed+)e *-e C+)* ! A((eal# ad(*ed %n *-%# &a#e0
E7;F
M)e5e), 1-e)e *-e (a)*,8#
&n*en*%n a((ea)# * =e &lea)l, *ena=le, ) 1-e)e *-e =)ade) %n*e)e#* ! D+#*%&e and (+=l%& (l%&, #
)eC+%)e#, *-e &+)* 2a,, %n a certiorari ()&eed%n", &))e&* *-e e))) &22%**ed0 T-e C+)* ! A((eal#, %n
5%e1 ! %*# e<(anded D+)%#d%&*%n 5e) la=) &a#e# ele5a*ed * %* *-)+"- a (e*%*%n !) &e)*%)a)% #+&- a# %n
*-%# &a#e, 2a, l@ %n* *-e )e&)d# ! *-e &a#e and )eAe<a2%ne *-e C+e#*%ned !%nd%n"# %! %* &n#%de)# *-e
#a2e * =e ne&e##a), * a))%5e a* a D+#* de&%#%n0
E74F

Hen&e, *-e C+)* ! A((eal# 1a# a&*%n" 1%*-%n %*# D+)%#d%&*%n 1-en, n certiorari, %* d%d n*
2e)el, ad(* *-e !a&*+al !%nd%n"# ! *-e La=) A)=%*e) and *-e NLRC and, %n#*ead, 2ade %*# 1n !%nd%n"#,
1-%&- 1e)e &n*)a), * *-e !)2e)0

T-e C+)* *-en ()&eed# * d%#&+## %*# 1n D+)%#d%&*%n %n )e5%e1%n" !%nd%n"# ! !a&* %n a (e*%*%n
!) )e5%e1, +nde) R+le 3; ! *-e Re5%#ed R+le# ! C+)*0 InMedina v. (sistio,
E7?F
*-%# C+)* al)ead,
e<*en#%5el, e<(la%ned *-a*.

I* %# n* *-e !+n&*%n ! *-%# C+)* * anal,Ie ) 1e%"- #+&- e5%den&e all 5e) a"a%n0 O+) D+)%#d%&*%n %#
l%2%*ed * )e5%e1%n" e)))# ! la1 *-a* 2a, -a5e =een &22%**ed =, *-e l1e) &+)*0 $$icolas et al., v. (, /;3
SCRA 49; E/>:?F6 Tiongco v. de la Merced, ;: SCRA :> E/>?3F'0
I* %# a 1ellA#e**led )+le %n *-%# D+)%#d%&*%n *-a* nl, C+e#*%n# ! la1 2a, =e )a%#ed %n a (e*%*%n !)
E)e5%e1 nF certiorari +nde) R+le 3; ! *-e R+le# ! C+)*, *-%# C+)* =e%n" =+nd =, *-e !%nd%n"# ! !a&*
2ade =, *-e C+)* ! A((eal#0 T-e )+le, -1e5e), %# n* 1%*-+* e<&e(*%n0 T-+#, !%nd%n"# ! !a&* =, *-e C+)*
! A((eal# 2a, =e (a##ed +(n and )e5%e1ed =, *-%# C+)* %n *-e !ll1%n" %n#*an&e#, < < <.
$/' W-en *-e &n&l+#%n %# a !%nd%n" ")+nded en*%)el, n #(e&+la*%n, #+)2%#e# ) &nDe&*+)e#
$Joa.uin v. $avarro, >9 P-%l0 7;? E/>;9F'6 $7' W-en *-e %n!e)en&e 2ade %# 2an%!e#*l, 2%#*a@en, a=#+)d )
%2(##%=le $"una v. "inatok, ?3 P-%l0 /; E/>37F'6 $9' W-e)e *-e)e %# a ")a5e a=+#e ! d%#&)e*%n $Buyco v.
!eople, >; P-%l0 3;9 E/>;;F'6 $3' W-en *-e D+d"2en* %# =a#ed n a 2%#a(()e-en#%n ! !a&*# $ ru* v. Sosing,
LA3:?;, N50 7?, />;9'6 $;' W-en *-e !%nd%n"# ! !a&* a)e &n!l%&*%n" $asica v. <illaseca, LA>;>B A(0 9B,
/>;?6 +n)e(0'6JJ $4' W-en *-e C+)* ! A((eal#, %n 2a@%n" %*# !%nd%n"#, 1en* =e,nd *-e %##+e# ! *-e &a#e and
*-e #a2e %# &n*)a), * *-e ad2%##%n# ! =*- a((ellan* and a((ellee $/vangelista v. (lto Surety and
)nsurance o0, /B9 P-%l0 3B/ E/>;:F'6 (%) T50 8.nd.n;* !8 +50 C!(4+ !8 A110a,* a40 9!n+4a4- +! +5!*0 !8 +50
+4.a, 9!(4+ $=arcia v. ourt of (ppeals, 99 SCRA 477 E/>?BF6 Sacay v. Sandigan%ayan, /37 SCRA ;>9
E/>:4F'6 $:' W-en *-e !%nd%n"# ! !a&* a)e &n&l+#%n# 1%*-+* &%*a*%n ! #(e&%!%& e5%den&e n 1-%&- *-e, a)e
=a#ed $I=%d0,'6 $>' W-en *-e !a&*# #e* !)*- %n *-e (e*%*%n a# 1ell a# %n *-e (e*%*%ne)8# 2a%n and )e(l, =)%e!# a)e
n* d%#(+*ed =, *-e )e#(nden*# $I=%d0,'6 and $/B' T-e !%nd%n" ! !a&* ! *-e C+)* ! A((eal# %# ()e2%#ed n
*-e #+((#ed a=#en&e ! e5%den&e and %# &n*)ad%&*ed =, *-e e5%den&e n )e&)d $Sala*ar v. =utierre*, 99
SCRA 737 E/>?BF'0 $E2(-a#%# +)#0'


T-e e<&e(*%n, )a*-e) *-an *-e "ene)al )+le, a((l%e# %n *-e ()e#en* &a#e0 W-en *-e !%nd%n"# ! !a&*
! *-e C+)* ! A((eal# a)e &n*)a), * *-#e ! *-e *)%al &+)* ) an ad2%n%#*)a*%5e =d, e<e)&%#%n" C+a#%A
D+d%&%al !+n&*%n#, #+&- a# *-e NLRC, *-%# C+)* 2+#* 2a@e %*# 1n !a&*+al !%nd%n"#0
E7:F

In *e)2%na*%n &a#e#, *-e =+)den ! ()! )e#*# n *-e e2(l,e) * #-1 *-a* *-e d%#2%##al %# !)
D+#* &a+#e0 W-en *-e)e %# n #-1%n" ! a &lea), 5al%d and le"al &a+#e !) *-e *e)2%na*%n ! e2(l,2en*,
*-e la1 &n#%de)# *-e 2a**e) a &a#e ! %lle"al d%#2%##al and *-e =+)den %# n *-e e2(l,e) * ()5e *-a* *-e
*e)2%na*%n 1a# !) a 5al%d ) a+*-)%Ied &a+#e0
E7>F
And *-e C+an*+2 ! ()! 1-%&- *-e e2(l,e) 2+#* d%#&-a)"e %# #+=#*an*%al e5%den&e0 An e2(l,ee8#
d%#2%##al d+e * #e)%+# 2%#&nd+&* 2+#* =e #+(()*ed =, #+=#*an*%al e5%den&e0 S+=#*an*%al e5%den&e %#
*-a* a2+n* ! )ele5an* e5%den&e a# a )ea#na=le 2%nd 2%"-* a&&e(* a# adeC+a*e * #+(()* a &n&l+#%n,
e5en %! *-e) 2%nd#, eC+all, )ea#na=le, 2%"-* &n&e%5a=l, (%ne *-e)1%#e0
E9BF

T-e)e!)e, *-e C+)* )e5%e1# *-e &a#e )e&)d# -e)e%n * de*e)2%ne 1-e*-e) (e*%*%ne) AMACCI
1a# a=le * ()5e =, #+=#*an*%al e5%den&e *-a* )e#(nden* 1a# le"all, d%#2%##ed0

T-e 2%n%2+2 #*anda)d# ! d+e ()&e## %n all &a#e# ! *e)2%na*%n ! e2(l,2en* a)e ()e#&)%=ed
+nde) A)*%&le 7??$=' ! *-e La=) Cde, * 1%*.

A)*0 7??0 M%#&ellane+# P)5%#%n#0

< < < <

$=' S+=De&* * *-e &n#*%*+*%nal )%"-* ! 1)@e)# * #e&+)%*, ! *en+)e and *-e%) )%"-* * =e ()*e&*ed
a"a%n#* d%#2%##al e<&e(* !) a D+#* and a+*-)%Ied &a+#e and 1%*-+* ()eD+d%&e * *-e )eC+%)e2en* ! n*%&e
+nde) A)*%&le 7:9 ! *-%# Cde, *-e e2(l,e) #-all !+)n%#- *-e 1)@e) 1-#e e2(l,2en* %# #+"-* * =e
*e)2%na*ed a 1)%**en n*%&e &n*a%n%n" a #*a*e2en* ! *-e &a+#e !) *e)2%na*%n and #-all a!!)d *-e la**e) a2(le
(()*+n%*, * =e -ea)d and * de!end -%2#el! 1%*- *-e a##%#*an&e ! -%# )e()e#en*a*%5e, %! -e # de#%)e#, %n
a&&)dan&e 1%*- &2(an, )+le# and )e"+la*%n# ()2+l"a*ed (+)#+an* * "+%del%ne# #e* =, *-e De(a)*2en* !
La=) and E2(l,2en*0
E9/F
$E2(-a#%# #+((l%ed0'


I* %# %2(le2en*ed =, R+le GGIII ! *-e I2(le2en*%n" R+le# ! B@ V ! *-e La=) Cde, 1-%&-
()5%de#.

Se&*%n 70 S*anda)d# ! d+e ()&e##6 )eC+%)e2en*# ! n*%&e0 X < < <0

I0 F) *e)2%na*%n ! e2(l,2en* =a#ed n D+#* &a+#e# a# de!%ned %n A)*%&le 7:7 ! *-e Cde.

$a' A 1)%**en n*%&e #e)5ed n *-e e2(l,ee #(e&%!,%n" *-e ")+nd ) ")+nd# !) *e)2%na*%n, and
"%5%n" * #a%d e2(l,ee )ea#na=le (()*+n%*, 1%*-%n 1-%&- * e<(la%n -%# #%de6

$=' A -ea)%n" ) &n!e)en&e d+)%n" 1-%&- *-e e2(l,ee &n&e)ned, 1%*- *-e a##%#*an&e ! &+n#el
%! *-e e2(l,ee # de#%)e#, %# "%5en (()*+n%*, * )e#(nd * *-e &-a)"e, ()e#en* -%# e5%den&e ) )e=+* *-e
e5%den&e ()e#en*ed a"a%n#* -%26 and

$&' A 1)%**en n*%&e ! *e)2%na*%n #e)5ed n *-e e2(l,ee %nd%&a*%n" *-a* +(n d+e &n#%de)a*%n
! all *-e &%)&+2#*an&e#, ")+nd# -a5e =een e#*a=l%#-ed * D+#*%!, -%# *e)2%na*%n0 < < <0


T-e 2#* =a#%& ! *ene*# %n e2(l,ee *e)2%na*%n &a#e# %# *-a* n 1)@e) #-all =e d%#2%##ed !)2
e2(l,2en* 1%*-+* *-e =#e)5an&e ! #+=#*an*%5e and ()&ed+)al d+e ()&e##0 S+=#*an*%5e d+e ()&e##
2ean# *-a* *-e ")+nd +(n 1-%&- *-e d%#2%##al %# =a#ed %# ne ! *-e D+#* ) a+*-)%Ied &a+#e#
en+2e)a*ed %n *-e La=) Cde0 P)&ed+)al d+e ()&e##, n *-e *-e) -and, )eC+%)e# *-a* an e2(l,ee =e
a(()%#ed ! *-e &-a)"e a"a%n#* -%2, "%5en )ea#na=le *%2e * an#1e) *-e #a2e, all1ed a2(le (()*+n%*,
* =e -ea)d and de!end -%2#el!, and a##%#*ed =, a )e()e#en*a*%5e %! *-e e2(l,ee # de#%)e#0
E97F
T-e
e2(l,ee 2+#* =e !+)n%#-ed *1 1)%**en n*%&e#. *-e !%)#* n*%&e a(()%#e# *-e e2(l,ee ! *-e (a)*%&+la)
a&*# ) 2%##%n# !) 1-%&- -%# d%#2%##al %# #+"-*, and *-e #e&nd %# a #+=#eC+en* n*%&e 1-%&- %n!)2#
*-e e2(l,ee ! *-e e2(l,e)8# de&%#%n * d%#2%## -%20
E99F


Hen&e, +nde) *-e La=) Cde, *-e)e a)e *1%n )eC+%)e2en*# * D+#*%!, a 5al%d d%#2%##al !)2
e2(l,2en*. $a' *-e d%#2%##al 2+#* =e !) an, ! *-e &a+#e# ()5%ded %n A)*%&le 7:7 ! *-e La=) Cde
$#+=#*an*%5e a#(e&*' and $=' *-e e2(l,ee 2+#* =e "%5en an (()*+n%*, * =e -ea)d and * de!end -%2#el!
$()&ed+)al a#(e&*'0
E93F

We !%)#* -e1 +) a**en*%n * *-e %##+e ! 1-e*-e) ) n* )e#(nden* 1a# a&&)ded ()&ed+)al d+e
()&e##0 Re#(nden* &la%2# %n -%# (#%*%n (a(e)
E9;F
*-a* -e )e&e%5ed a !)2al n*%&e ! %n5e#*%"a*%n !)
ne"l%"en&e d+e * !a%l+)e * e<e)&%#e adeC+a*e a##e* &n*)l 2ea#+)e# 1%*-%n neK# a)ea ! )e#(n#%=%l%*,
n 9/ A+"+#* />>> a* >.;/ a020 and *-e -ea)%n" 1a# #&-ed+led and -eld %22ed%a*el, *-e ne<* da, n /
Se(*e2=e) />>> a* /B.BB a020 An*-e) !)2al n*%&e ! %n5e#*%"a*%n !) #e)%+# da2a"e ! &2(an,
()(e)*, and l## ! &la## )e&)d#Le<a2# 1a# #e)5ed n )e#(nden* n 9 Se(*e2=e) />>> a* ?.3; a020
1-%le *-e -ea)%n" 1a# #&-ed+led and -eld n *-e #a2e da, 9 Se(*e2=e) />>> a* /.BB (020 On >
Se(*e2=e) />>>, )e#(nden* 1a# "%5en a n*%&e ! *e)2%na*%n0

T-e e##en&e ! *-e d+e ()&e## )eC+%)e2en* =e%n" a 2e)e (()*+n%*, * =e -ea)d, 1e a")ee 1%*-
*-e C+)* ! A((eal# *-a* al*-+"- )e#(nden* 1a# "%5en a l%2%*ed *%2e * e<(la%n -%# #%de and ()e#en*
e5%den&e, -e, -1e5e), 1a# a=le * )e!+*e *-e !%nd%n"# ! (e*%*%ne)0 Hen&e, *-e &-an&e a!!)ded *
)e#(nden*, al*-+"- l%2%*ed, %# a &lea) (()*+n%*, * =e -ea)d n *-e %##+e a* -and0
E94F
W-a* *-e la1
a=-)# and ()-%=%*# %# *-e a=#l+*e a=#en&e ! *-e (()*+n%*, * =e -ea)d0
E9?F

We n1 *+)n +) a**en*%n * *-e %##+e ! 1-e*-e) ) n* *-e)e 1a# D+#* &a+#e !) *-e *e)2%na*%n
! )e#(nden* !)2 -%# e2(l,2en*0

T-e La=) A)=%*e) and *-e NLRC a)e ne %n !%nd%n" *-a* )e#(nden* 1a# l%a=le !) #e)%+#
2%#&nd+&* 1-%&- D+#*%!%e# -%# d%#2%##al !)2 !!%&e0 Pe*%*%ne) AMACCI *e)2%na*ed )e#(nden*K#
e2(l,2en* =e&a+#e ! ")## ne"l%"en&e )e#+l*%n" * *-e l## ! %2()*an* d&+2en*#0
E9:F

T-e La=) Cde ()5%de# *-a* an e2(l,e) 2a, *e)2%na*e *-e #e)5%&e# ! an e2(l,ee !) a D+#*
&a+#e0 A2n" *-e D+#* &a+#e# %n *-e La=) Cde %# #e)%+# 2%#&nd+&*0 M%#&nd+&* %# %2()(e) )
1)n" &nd+&*0 I* %# *-e *)an#")e##%n ! #2e e#*a=l%#-ed and de!%n%*e )+le ! a&*%n, a !)=%dden a&*, a
de)el%&*%n ! d+*,, 1%ll!+l %n &-a)a&*e), and %2(l%e# 1)n"!+l %n*en* and n* 2e)e e))) %n D+d"2en*0 T-e
2%#&nd+&* * =e #e)%+# 1%*-%n *-e 2ean%n" ! *-e La=) Cde 2+#* =e ! #+&- a ")a5e and a"")a5a*ed
&-a)a&*e) and n* 2e)el, *)%5%al ) +n%2()*an*0 S+&- 2%#&nd+&*, -1e5e) #e)%+#, 2+#* ne5e)*-ele## =e
%n &nne&*%n 1%*- *-e e2(l,ee8# 1)@ * &n#*%*+*e D+#* &a+#e !) -%# #e(a)a*%n0
E9>F

In $ational "a%or &elations ommission v. Salgarino,
E3BF
*-e C+)* #*)e##ed *-a* ME%Fn )de) *
&n#*%*+*e #e)%+# 2%#&nd+&* 1-%&- 1%ll 1a))an* *-e d%#2%##al ! an e2(l,ee +nde) (a)a")a(- $a' !
A)*%&le 7:7 ! *-e La=) Cde, %* %# n* #+!!%&%en* *-a* *-e a&* ) &nd+&* &2(la%ned ! -a# 5%la*ed #2e
e#*a=l%#-ed )+le# ) (l%&%e#0 I* %# eC+all, %2()*an* and )eC+%)ed *-a* *-e a&* ) &nd+&* 2+#* -a5e =een
(e)!)2ed 1%*- 1)n"!+l %n*en*0N

A!*e) a *-)+"- e<a2%na*%n ! *-e )e&)d# ! *-e &a#e, -1e5e), *-e C+)* !%nd# *-a* (e*%*%ne)
AMACCI 2%#e)a=l, !a%led * ()5e =, #+=#*an*%al e5%den&e %*# &-a)"e# a"a%n#* )e#(nden*0 T-e)e %# n
#-1%n" a* all *-a* )e#(nden*K# a&*%n# 1e)e 2*%5a*ed =, a (e)5e)#e and 1)n"!+l %n*en*, a# )eC+%)ed =,
A)*%&le 7:7$a' ! *-e La=) Cde0

On *-e l## ! #&-l )e&)d#, *-e &2(la%n* ! AMACCI !a&+l*, 2e2=e) Ral( T+2+la@ 1a# *-a*
!+) ! -%# C+%IIe# 1e)e l#* d+e * *-e )en5a*%n +nde)*a@en %n *-e AMACCAER ()e2%#e#0 T-e C+)*
! A((eal# d%#2%##ed *-%# &2(la%n* a# %n#+!!%&%en* * D+#*%!, *-e d%#2%##al ! )e#(nden*0 We a")ee 1%*-
*-e C+)* ! A((eal#0 Unde) *-e E2(l,ee &nd+&* and D%#&%(l%ne ! AMACCI, l## ! )e&)d# %#
&n#%de)ed a l%"-* !!en#e (+n%#-a=le =, 1)%**en )e()%2and0
E3/F

T-e ne<* %##+e *-a* need# * =e )e#l5ed %# 1-e*-e) ) n* *-e )en5a*%n ! AMACCAER
()e2%#e# 1a# dne =, )e#(nden* 1%*-+* a+*-)%*,, 1-%&- 2e)%*# *-e #+()e2e (enal*, ! d%#2%##al0

T-e !ll1%n" %n#*an&e# #+(()* *-e &n&l+#%n ! *-%# C+)* *-a* *-e)e 1a# n D+#* ) a+*-)%Ied
&a+#e !) )e#(nden*K# d%#2%##al.

/0 T-e )en5a*%n +nde)*a@en =, )e#(nden* 1a# a+*-)%Ied +nde) a )en5a*%n (lan a(()5ed and
#%"ned n /4 A+"+#* />>> =, AMAES V%&eA P)e#%den* Ca)(%6

70 T-e AMACCAER a+*-)%*%e# 1e)e 1ell a1a)e ! *-e n"%n" )en5a*%n, a# Ca)(% AA *"e*-e)
1%*- an AMACCI !!%&%al, A##%#*an* V%&eA P)e#%den* Pana, AA &nd+&*ed an %n#(e&*%n ! *-e #&-l
!a&%l%*%e# n /> A+"+#* />>>, a da, a!*e) *-e (a)*%*%n 1all %n *-e &2(+*e) la=)a*), 1a#
de2l%#-ed0 T-e #e&+)%*, "+a)d l" =@ &n*a%n# *-e !ll1%n" en*), n #a%d da*e.

M/> A+"+#* />>>

< < < <

B>94 A))%5al ! MAKAM CARPIO U MAKAM
BALON J0 PANAY, AVPA!) $#%&' CONDUCT
INSPECTIONN


Pe*%*%ne) AMACCI 1a# +na=le * )e!+*e *-e %n#(e&*%n ! *-e )en5a*%n #%*e &nd+&*ed =, Ca)(%
and Pana,0 T-e nl, )a*%nal )ea#n !) *-e &nd+&* ! #+&- an %n#(e&*%n =, #a%d !!%&%al# 1a# * en#+)e
*-a* *-e )en5a*%n# 1e)e =e%n" dne ()(e)l, and a&&)d%n" * *-e a(()5ed (lan0 I! Ca)(% and Pana,
-ad *-en n*%&ed #2e*-%n" a2%##, *-e, 1+ld -a5e al)ead, =)+"-* %* * *-e a**en*%n ! AMACCI and
AMACCAER !!%&%al#, e#(e&%all,, AMACCAER S&-l D%)e&*)LCOO Ta"an"+%n0 T-e)e 1a# n*-%n" n
)e&)d *-a* 1+ld #-1 *-a* e%*-e) Ca)(% ) Pana, 2ade an, +n#a5), =#e)5a*%n d+)%n" *-e%)
%n#(e&*%n0 In !a&*, a!*e) *-e #a%d %n#(e&*%n, )e#(nden* 1a# a=le * &n*%n+e and &2(le*e *-e )en5a*%n
! *-e &2(+*e) la=)a*),0

90 On *-e e5en%n" ()%) * *-e de2l%*%n, M#0 Ta"an"+%n, *-e S&-l D%)e&*) &alled !) a 2ee*%n"
* %n!)2 *-e &n&e)ned de(a)*2en* -ead# a=+* (##%=le &-an"e# 1%*-%n *-e JL D2%n" =+%ld%n",
ne"a*%n" (e*%*%ne)#K &-a)"e *-a* *-e )en5a*%n %n%*%a*ed =, )e#(nden* 1a# 1%*-+* a+*-)%*,0

30 M)0 A)nld Ne&%, Ne*1)@ $IT' S+(e)5%#), %##+ed a &e)*%!%&a*%n da*ed 79 A+"+#* />>> #*a*%n"
*-a* *-e &2(+*e)# %n *-e &2(+*e) la=)a*), 1e)e )and2l, *e#*ed and !+nd * =e %n "d 1)@%n"
&nd%*%n6 and

;0 T-e #e&+)%*, "+a)d, n d+*, !)2 *-e e5en%n" ! /: A+"+#* />>> * *-e ea)l, 2)n%n" ! />
A+"+#* />>>, 1)*e *-e !ll1%n" en*), %n *-e l"=@ n /> A+"+#* />>>. MNO DAMAGE NO
LOSSES DURING : HOURS T+) ! D+*,0N
E37F

Cn#%de)%n" *-e !)e"%n", *-e C+)* &an nl, a")ee 1%*- *-e C+)* ! A((eal# *-a*, e5en *-+"-
)e#(nden* 2a, =e "+%l*, ! ne"l%"en&e !) !a%l%n" * *a@e *-e ne&e##a), ()e&a+*%n# * &5e) ) )e25e
*-e &2(+*e)# !)2 *-e &2(+*e) la=)a*), =e!)e *-e )en5a*%n, ) * =l&@ ) "+a)d *-e 1all (en%n"
* *-e &2(+*e) la=)a*),, )e#(nden*K# =l+nde)# d%d n* &n#*%*+*e #e)%+# 2%#&nd+&* ) 1%ll!+l
d%#=ed%en&e a# * D+#*%!, *-e *e)2%na*%n ! -%# e2(l,2en*0 T )e%*e)a*e, !) #e)%+# 2%#&nd+&* )
1%ll!+l d%#=ed%en&e, %* %# n* #+!!%&%en* *-a* *-e a&* ) &nd+&* &2(la%ned ! -a# 5%la*ed #2e
e#*a=l%#-ed )+le# ) (l%&%e#6 *-e a&* ) &nd+&* 2+#* -a5e =een (e)!)2ed 1%*- 1)n"!+l %n*en*0 T-e)e %#
a=#l+*e la&@ ! ()! -e)e%n ! #+&- 1)n"!+l %n*en* n *-e (a)* ! )e#(nden*0

Re#(nden*K# a&*%n#, a* *-e%) 1)#e, )e5eal -%# ne"l%"en&e, =+* #a%d ne"l%"en&e &an -a)dl, =e
dee2ed ")## and -a=%*+al, a# * &n#*%*+*e a D+#* ")+nd !) -%# d%#2%##al +nde) A)*%&le 7:7$=' ! *-e
La=) Cde0

G)## ne"l%"en&e +nde) A)*%&le 7:7 ! *-e La=) Cde &nn*e# 1an* ! &a)e %n *-e (e)!)2an&e
! neK# d+*%e#, 1-%le -a=%*+al ne"le&* %2(l%e# )e(ea*ed !a%l+)e * (e)!)2 neK# d+*%e# !) a (e)%d !
*%2e, de(end%n" +(n *-e &%)&+2#*an&e#0
E39F
G)## ne"l%"en&e -a# =een de!%ned a# *-e 7an+ !4 a6*0n90 !8
0:0n *,.;5+ 9a40 !4 d.,.;0n90 a# * a2+n* * a )e&@le## d%#)e"a)d ! *-e #a!e*, ! (e)#n ) ()(e)*,0 I*
e5%n&e# a *-+"-*le## d%#)e"a)d ! &n#eC+en&e# 1%*-+* e<e)*%n" an, e!!)* * a5%d *-e20
E33F
T
&n#*%*+*e a D+#* &a+#e !) *e)2%na*%n ! e2(l,2en*, *-e ne"le&* ! d+*%e# 2+#* n* nl, =e ")## =+*
-a=%*+al a# 1ell0 T-e #%n"le ) %#la*ed a&* ! ne"l%"en&e de# n* &n#*%*+*e a D+#* &a+#e !) *-e d%#2%##al
! *-e e2(l,ee0
E3;F


Re#(nden*, %n *-e Pe*%*%n a* =a), e<e)&%#ed en+"- d%l%"en&e %n -%# )en5a*%n ! *-e &2(+*e)
la=)a*), a# * (a## *-e %n#(e&*%n ! *1 !!%&%al# ! (e*%*%ne) AMACCI0 Al#, *-e) *-an *-e %n&%den*
a* *-e &2(+*e) la=)a*),, n *-e) ne"l%"en* a&* 1a# a**)%=+*ed * )e#(nden* * e#*a=l%#- -a=%*+al%*,0

M)e5e), *-e (enal*, ! d%#2%##al %2(#ed n )e#(nden* %# d%#()()*%na*e * -%# !!en#e0 T-e
2a"n%*+de ! *-e %n!)a&*%n 2+#* =e 1e%"-ed and eC+a*ed 1%*- *-e (enal*, ()e#&)%=ed and 2+#* =e
&22en#+)a*e *-e)e*, %n 5%e1 ! *-e ")a5%*, ! *-e (enal*, ! d%#2%##al ) *e)2%na*%n !)2 *-e
#e)5%&e0 W-a* %# a* #*a@e -e)e %# n* #%2(l, *-e D= %*#el! ! *-e e2(l,ee =+* al# -%# )e"+la) %n&2e
*-e)e!)2 1-%&- %# *-e 2ean# ! l%5el%-d ! -%# !a2%l,0
E34F

T%2e and a"a%n, *-e C+)* -a# )+led *-a* 1-%le an e2(l,e) enD,# 1%de la*%*+de ! d%#&)e*%n %n
*-e ()2+l"a*%n ! (l%&%e#, )+le# and )e"+la*%n# n 1)@A)ela*ed a&*%5%*%e# ! *-e e2(l,ee#, *-#e
d%)e&*%5e#, -1e5e), 2+#* al1a,# =e !a%) and )ea#na=le, and *-e &))e#(nd%n" (enal*%e#, 1-en
()e#&)%=ed, 2+#* =e &22en#+)a*e * *-e !!en#e %n5l5ed and * *-e de")ee ! *-e %n!)a&*%n0
E3?F

F%nall,, *-e C+)* n*e# *-a* )e#(nden* %2(leaded %n -%# &2(la%n* =e!)e *-e La=) A)=%*e)
(e*%*%ne)# A"+%l+I and C)+I, %n *-e%) &a(a&%*, a# AMACCI !!%&%al#0 T-e C+)* ! A((eal#, a!*e) !%nd%n"
*-a* )e#(nden* 1a# %lle"all, d%#2%##ed, d%d n* 2a@e an, ()n+n&e2en* a# * *-e l%a=%l%*, ! (e*%*%ne)#
A"+%l+I and C)+I0

T-+#, %* %# ne&e##a), !) *-%# C+)* * &la)%!, and e<(l%&%*l, de&la)e *-a* n l%a=%l%*, !)
)e#(nden*K# %lle"al d%#2%##al #-+ld a**a&- * (e*%*%ne)# A"+%l+I and C)+I, and )e#(nden*K# &2(la%n*
a# a"a%n#* *-e2 #-+ld =e d%#2%##ed0 Unle## *-e, -a5e e<&eeded *-e%) a+*-)%*,, &)()a*e !!%&e)# a)e, a#
a "ene)al )+le, n* (e)#nall, l%a=le !) *-e%) !!%&%al a&*#, =e&a+#e a &)()a*%n, =, le"al !%&*%n, -a# a
(e)#nal%*, #e(a)a*e and d%#*%n&* !)2 %*# !!%&e)#, #*&@-lde)# and 2e2=e)#0 I* %# *)+e *-a* a# an
e<&e(*%n, &)()a*e d%)e&*)# and !!%&e)# a)e #l%da)%l, -eld l%a=le 1%*- *-e &)()a*%n, 1-e)e
*e)2%na*%n# ! e2(l,2en* a)e dne 1%*- 2al%&e ) %n =ad !a%*-6 =+* 1-e)e *-e)e %# an a=#en&e !
e5%den&e *-a* #a%d d%)e&*)# and !!%&e)# a&*ed 1%*- 2al%&e ) =ad !a%*-, a# %n *-%# &a#e, *-e C+)* 2+#*
e<e2(* *-e2 !)2 an, (e)#nal l%a=%l%*, !) *-e e2(l,eeK# %lle"al d%#2%##al0
E3:F

WHERE'ORE, ()e2%#e# &n#%de)ed, *-e (e*%*%n %# DENIED0 T-e De&%#%n da*ed 77
De&e2=e) 7BB4 and Re#l+*%n da*ed 3 J+ne 7BB? ! *-e C+)* ! A((eal# %n CAAG0R0 SP N0 4?B3?
a)e A''IRMED, 1%*- *-e CLARI'ICATION/MODI'ICATION *-a* nl, (e*%*%ne) AMA C2(+*e)
Clle"e#, In&0 %# -eld l%a=le !) *-e %lle"al d%#2%##al ! )e#(nden* Allan Ra,2nd R0 I"na&%, and *-e
la**e)K# &2(la%n* a"a%n#* (e*%*%ne)# A2a=le C0 A"+%l+I and An*-n, Je#+# R0 V%n&e C)+I
%# DISMISSED0 C#*# a"a%n#* (e*%*%ne) AMA C2(+*e) Clle"e#, In&0




SO ORDERED.
SECOND DIVISION

LILIA P. LABADAN
P0+.+.!n04,




- :04*(* -




'OREST HILLS ACADEM>/NAOMI
CABALUNA and PRESIDIN
COMISSIONER SALIC B. DUMARPA,
COMMISSIONER PROCULO T.
SARMEN, COMMISSIONER NOVITO
C. CAA>AN,
R0*1!nd0n+*.
.R. N!. "%&&$B

P)e#en*.

QUISUMBING, J0, hairperson,
CARPIO MORALES,
TINGA,
VELASCO, JR0, and
BRION, JJ0


P)2+l"a*ed.

De&e2=e) 79, 7BB:

< A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A A <


D E C I S I O N


CARPIO MORALES, J.@

L%l%an L0 La=adan $(e*%*%ne)' 1a# -%)ed =, ()%5a*e )e#(nden* F)e#*
H%ll# M%##%n A&ade2, $F)e#* H%ll#' %n J+l, />:> a# an ele2en*a), #&-l *ea&-e)0 F)2 />>B +( *
7BB7, (e*%*%ne) 1a# )e"%#*)a) and #e&nda), #&-l *ea&-e)0
On A+"+#* /:, 7BB9, (e*%*%ne) !%led a &2(la%n*
E/F
a"a%n#* )e#(nden* F)e#* H%ll# and %*#
ad2%n%#*)a*) )e#(nden* Na2% Ca=al+na !) %lle"al d%#2%##al, nnA(a,2en* ! 5e)*%2e (a,, -l%da,
(a,, all1an&e#, /9
*-
2n*- (a,, #e)5%&e %n&en*%5e lea5e, %lle"al ded+&*%n#, and da2a"e#0

In -e) P#%*%n Pa(e),
E7F
(e*%*%ne) alle"ed *-a* #-e 1a# all1ed * " n lea5e !)2 F)e#* H%ll#,
and al=e%* #-e -ad e<&eeded -e) a(()5ed lea5e (e)%d, %*# e<*en#%n 1a# %2(l%edl, a(()5ed =, *-e
#&-l ()%n&%(al =e&a+#e #-e )e&e%5ed n 1a)n%n" ) )e()%2and and 1a# %n !a&* )e*a%ned %n *-e (a,)ll +(
* 7BB70
E9F

Pe*%*%ne) !+)*-e) alle"ed *-a* #%n&e />>B, *%*-e# * *-e Se5en*- Da, Ad5en*%#* &-+)&- -a5e =een
%lle"all, ded+&*ed !)2 -e) #ala),6 and #-e 1a# n* (a%d 5e)*%2e (a, !) 5e)*%2e #e)5%&e, /9
*-
2n*-
(a,, !%5e da,# #e)5%&e %n&en*%5e lea5e (a,, and -l%da, (a,6 and *-a* -e) SSS &n*)%=+*%n# -a5e n* =een
)e2%**ed0

Cla%2%n" *-a* #*)a%ned )ela*%n# =e*1een -e) and F)e#* H%ll -a5e )ende)ed )e%n#*a*e2en* n*
!ea#%=le, (e*%*%ne) ()a,ed !) #e(a)a*%n (a, %n l%e+ ! )e%n#*a*e2en*0

In %*# P#%*%n Pa(e),
E3F
F)e#* H%ll# &la%2ed a# !ll1#. In J+l, 7BB/, (e*%*%ne) 1a# (e)2%**ed *
" n lea5e !) *1 1ee@# =+* d%d n* )e*+)n !) 1)@ a!*e) *-e e<(%)a*%n ! *-e (e)%d0 De#(%*e
(e*%*%ne)K# +nde)*a@%n" * )e()* M#n,N #-e ne5e) d%d e5en +n*%l *-e end ! S&-l Yea) 7BB/A7BB70 I*
*-+# -%)ed a *e2()a), e2(l,ee * a&&2(l%#- *-e needed )e()*#0 W-en #-e !%nall, )e*+)ned !) 1)@,
&la##e# !) *-e S&-l Yea) 7BB7A7BB9 1e)e al)ead, nA"%n"0

T =el%e (e*%*%ne)K# &la%2 *-a* #-e 1a# d%#2%##ed, F)e#* H%ll# #+=2%**ed a l%#* ! !a&+l*,
2e2=e)# and #*a!! !)2 S&-l Yea) />>:A/>>> +( * S&-l Yea) 7BB/ * 7BB7 1-%&- %n&l+ded -e)
na2e0
E;F

W%*- )e"a)d * *-e &-a)"e !) %lle"al ded+&*%n, F)e#* H%ll# &la%2ed *-a*
*-e Se5en*- Da, Ad5en*%#* C-+)&- )eC+%)e# %*# 2e2=e)# * (a, *%*-e# eC+%5alen* * /BR ! *-e%) #ala)%e#,
and (e*%*%ne) 1a# -%)ed n a&&+n* ! -e) =e%n" a 2e2=e) *-e)e!, and (e*%*%ne) ne5e) C+e#*%ned *-e
ded+&*%n ! *-e *%*-e !)2 -e) #ala),0

W%*- )e"a)d * *-e &-a)"e !) nnA(a,2en* ! 5e)*%2e (a,, -l%da, (a,, and all1an&e#, F)e#*
H%ll# n*ed *-a* (e*%*%ne) ()!!e)ed n e5%den&e * #+(()* *-e #a2e0

T-e La=) A)=%*e) de&%ded %n !a5) ! (e*%*%ne), d%#(#%n" a# !ll1#.

WHEREFORE, D+d"2en* %# -e)e=, )ende)ed.


/0 F%nd%n" )e#(nden*# F)e#* H%ll# A&ade2, andL) Na2% Ca=al+na "+%l*, ! %lle"all, d%#2%##%n" *-e
&2(la%nan*6

70 D%)e&*%n" )e#(nden* * (a, &2(la%nan* L%l%a P0 La=adan *-e **al a2+n* ! P/;7,;B/0B7 )e()e#en*%n" -e)
2ne*a), a1a)d < < <0

C2(la%nan*K# *-e) &la%2E#F a)e -e)e=, d%#2%##ed !) la&@ ! 2e)%* andL) !a%l+)e * #+=#*an*%a*e0

SO ORDERED0
E4F



T-e Na*%nal La=) Rela*%n# C22%##%n $NLRC', !%nd%n" *-e La=) A)=%*e) * -a5e
2%#a(()e&%a*ed *-e !a&*# ! *-e &a#e, )e5e)#ed and #e* a#%de -%# de&%#%n and d%#2%##ed (e*%*%ne)K#
&2(la%n* =, Re#l+*%n ! J+ne 9B, 7BB;0
E?F

On (e*%*%ne)K# Pe*%*%n !) Ce)*%)a)%,
E:F
*-e C+)* ! A((eal#, =, Re#l+*%n
E>F
! De&e2=e) /;,
7BB;, d%#2%##ed *-e (e*%*%n !) de!%&%en* a2+n* ! a((ella*e d&@e* !ee, nnAa**a&-2en* ! A!!%da5%* !
Se)5%&e, a=#en&e ! 1)%**en e<(lana*%n 1-, *-e (e*%*%n 1a# !%led *-)+"- )e"%#*e)ed 2a%l %n#*ead !
*-)+"- (e)#nal #e)5%&e, and nnAa**a&-2en* ! &(%e# ! *-e C2(la%n* and *-e An#1e) !%led =e!)e *-e
La=) A)=%*e)0 Pe*%*%ne)K# M*%n !) Re&n#%de)a*%n -a5%n" =een den%ed,
E/BF
#-e !%led *-e ()e#en*
Pe*%*%n !) Re5%e1 n Ce)*%)a)%,
E//F
!a+l*%n" *-e C+)* ! A((eal#

x x x IN DISMISSING THE ETITI!N !N THE G"!#ND !F TE$HNI$ALITIES[%]

x x x IN N!T DE$IDING !N THE ME"ITS &HETHE" !" N!T H!N!"A'LE
$!MMISSI!NE"S !F THE (
TH
DI)ISI!N HA)E $!MMITTED AN A$T !F G"A)E A'#SE !F
DIS$"ETI!N AM!#NTING T! LA$* !" E+$ESS !F J#"ISDI$TI!N,

A. IN REVERSIN THE 'INDINS O' THE ECECUTIVE LABOR ARBITER THAT HEREIN
PETITIONER-COMPLAINANT WAS NOT DISMISSED 'ROM HER WORK AS A TEACHER and
AT THE SAME TIME THE REISTRARH

B. IN 'INDIN THAT B> A PROLONED ABSENCE O' ONE >EAR MORE OR LESS, PETITIONER
WAIVED HER "D
TH
MONTH PA> AND SERVICE INCENTIVE LEAVES AS SHE 'AILED TO
STATE SUCH CLAIMS IN HER A''IDAVIT THAT WAS ATTACHED 2TO3 HER POSITION
PAPER, andH

C. THAT THE DECISION/RESOLUTION RENDERED B> THE HONORABLE COMMISSIONERS O'
THE B
TH
DIVISION WAS TAINTED WITH RAVE ABUSE O' DISCRETION AS IT WAS
INCOMPLETE AND UNLAW'UL2.3
2"&3
$I*al%&# and e2(-a#%# %n *-e )%"%nal'

NnA(a,2en* ! d&@e* !ee a* *-e *%2e ! *-e !%l%n" ! a (e*%*%n de# n* a+*2a*%&all, &all !) %*#
d%#2%##al a# ln" a# *-e !ee %# (a%d 1%*-%n *-e a((l%&a=le ()e#&)%(*%5e ) )e"le2en*a), (e)%d0
E/9F
W-%le
(e*%*%ne) (a%d *-e P9B de!%&%en* a2+n* ! *-e d&@e* !ee n Fe=)+a), ?, 7BB4,
E/3F
%* 1a# =e,nd *-e 4BA
da, (e)%d !) !%l%n" *-e (e*%*%n !) &e)*%)a)%0 Ne5e)*-ele##, *-e C+)*, %n *-e %n*e)e#* ! #+=#*an*%al
D+#*%&e, =)+#-e# a#%de *-%# and *-e *-e) *e&-n%&al%*%e# &%*ed =, *-e C+)* ! A((eal# %n %*# Re#l+*%n
! De&e2=e) /;, 7BB;
E/;F
and, %n#*ead ! )e2and%n" *-e &a#e * *-e a((ella*e &+)*, n1 -e)e=, de&%de#
*-e &a#e n *-e 2e)%*#0


W-%le %n &a#e# ! %lle"al d%#2%##al, *-e e2(l,e) =ea)# *-e =+)den ! ()5%n" *-a* *-e d%#2%##al %#
!) a 5al%d ) a+*-)%Ied &a+#e, *-e e2(l,ee 2+#* !%)#* e#*a=l%#- =, #+=#*an*%al e5%den&e *-e !a&* !
d%#2%##al0
E/4F


T-e )e&)d# d n* #-1 *-a* (e*%*%ne) 1a# d%#2%##ed !)2 *-e #e)5%&e0 T-e, %n !a&* #-1 *-a*
de#(%*e (e*%*%ne)K# a=#en&e !)2 J+l, 7BB/ * Ma)&- 7BB7 1-%&-, =, -e) 1n ad2%##%n, e<&eeded -e)
a(()5ed lea5e,
E/?F
#-e 1a# #*%ll &n#%de)ed a 2e2=e) ! *-e F)e#* H%ll# !a&+l*,
E/:F
1-%&- )e*a%ned -e) %n
%*# (a,)ll0
E/>F

Pe*%*%ne) a)"+e#, -1e5e), *-a* #-e 1a# &n#*)+&*%5el, d%#2%##ed 1-en F)e#* H%ll# 2e)"ed -e)
&la## 1%*- an*-e) M# 2+&- *-a* 1-en #-e )e()*ed =a&@ * 1)@, #-e -a# n 2)e &la%2# * -ld and n
2)e 1)@ * d0N
E7BF

Pe*%*%ne), -1e5e), !a%led * )e!+*e F)e#* H%ll#K &la%2 *-a* 1-en #-e e<()e##ed -e) %n*en*%n *
)e#+2e *ea&-%n", &la##e# 1e)e al)ead, n"%n" !) S&-l Yea) 7BB7A7BB90 I* =ea)# n*%n" *-a* (e*%*%ne)
#%2+l*ane+#l, -eld *-e (#%*%n# ! #e&nda), #&-l
*ea&-e) and )e"%#*)a) and, a# *-e NLRC n*ed, #-e &+ld -a5e





)e#+2ed -e) 1)@ a# )e"%#*)a) -ad #-e )eall, 1an*ed * &n*%n+e 1)@%n" 1%*- F)e#* H%ll#0
E7/F

Pe*%*%ne)K# a!!%da5%* and *-#e ! -e) !)2e) &llea"+e#,
E77F
1-%&- #-e a**a&-ed * -e) P#%*%n
Pa(e), 2e)el, a**e#*ed *-a* #-e 1a# d%#2%##ed !)2 -e) D= 1%*-+* 5al%d &a+#e, =+* "a5e n (a)*%&+la)# n
1-en and -1 #-e 1a# d%#2%##ed0

T-e)e =e%n" n #+=#*an*%al ()! *-a* (e*%*%ne) 1a# d%#2%##ed, #-e %# n* en*%*led * #e(a)a*%n
(a, ) =a&@1a"e#0

Re#(e&*%n" (e*%*%ne)K# &la%2 !) -l%da, (a,, F)e#* H%ll# &n*end# *-a* (e*%*%ne) !a%led * ()5e
*-a* #-e a&*+all, 1)@ed d+)%n" #(e&%!%& -l%da,#0 A)*%&le >3 ! *-e La=) Cde ()5%de#, -1e5e), *-a*

$a' E5e), 1)@e) #-all =e (a%d -%# )e"+la) da%l, 1a"e d+)%n" )e"+la) -l%da,#, e<&e(* %n )e*a%l and #e)5%&e
e#*a=l%#-2en*# )e"+la)l, e2(l,%n" le## *-an *en $/B' 1)@e)#6

$=' T-e e2(l,e) 2a, )eC+%)e an e2(l,ee * 1)@ n an, -l%da, =+* #+&- e2(l,ee #-all =e (a%d a &2(en#a*%n
eC+%5alen* * *1%&e -%# )e"+la) )a*eE0F


T-e ()5%#%n *-a* a 1)@e) %# en*%*led * *1%&e -%# )e"+la) )a*e %! -e %# )eC+%)ed * 1)@ n a -l%da,
%2(l%e# *-a* *-e ()5%#%n en*%*l%n" a 1)@e) * -%# )e"+la) )a*e n -l%da,# a((l%e# e5en %! -e de# n*
1)@0

T-e (e*%*%ne) %# l%@e1%#e en*%*led * #e)5%&e %n&en*%5e lea5e +nde) A)*%&le >; ! *-e La=) Cde
1-%&- ()5%de# *-a*

$a' E5e), e2(l,ee 1- -a# )ende)ed a* lea#* ne ,ea) ! #e)5%&e #-all =e en*%*led * a ,ea)l, #e)5%&e %n&en*%5e lea5e
! !%5e da,# 1%*- (a,0

$=' T-%# ()5%#%n #-all n* a((l, * *-#e 1- a)e al)ead, enD,%n" *-e =ene!%* -e)e%n ()5%ded, *-#e enD,%n"
5a&a*%n lea5e 1%*- (a, ! a* lea#* !%5e da,# and *-#e e2(l,ed %n e#*a=l%#-2en*# )e"+la)l, e2(l,%n" le##
*-an *en e2(l,ee# ) %n e#*a=l%#-2en* e<e2(*ed !)2 ")an*%n" *-%# =ene!%* =, *-e Se&)e*a), ! La=) a!*e)
&n#%de)%n" *-e 5%a=%l%*, ) !%nan&%al &nd%*%n ! #+&- e#*a=l%#-2en*0
< < < <,


and * /9
*-
2n*- (a, +nde) P)e#%den*%al De&)ee N0 :;/0
E79F

A# !) (e*%*%ne)K# &la%2# !) 5e)*%2e (a,, %* 2+#* =e den%ed, !) *-e) *-an *-e +n&))=)a*ed
a!!%da5%*# ! -e) &llea"+e#, *-e)e %# n &n&)e*e ()! *-a* #-e %# en*%*led *-e)e*0
E73F
And # 2+#* -e)
&la%2 !) all1an&e#, n ()! * -e) en*%*le2en* *-e)e* -a5%n" =een ()e#en*ed0

On *-e ded+&*%n ! /BR *%*-e, A)*%&le //9 ! *-e La=) Cde %n#*)+&*#.

ART0 //90 N e2(l,e), %n -%# 1n =e-al! ) %n =e-al! ! an, (e)#n, #-all 2a@e an, ded+&*%n !)2
*-e 1a"e# ! -%# e2(l,ee#, e<&e(*.

$a' In &a#e# 1-e)e *-e 1)@e) %# %n#+)ed 1%*- -%# &n#en* =, *-e e2(l,e), and *-e ded+&*%n %# * )e&2(en#e *-e
e2(l,e) !) *-e a2+n* (a%d =, -%2 a# ()e2%+2 n *-e %n#+)an&e6

$=' F) +n%n d+e#, %n &a#e# 1-e)e *-e )%"-* ! *-e 1)@e) ) -%# +n%n * &-e&@A!! -a# =een )e&"n%Ied =, *-e
e2(l,e) ) a+*-)%Ied %n 1)%*%n" =, *-e %nd%5%d+al 1)@e) &n&e)ned6 and

$&' In &a#e# 1-e)e *-e e2(l,e) %# a+*-)%Ied =, la1 ) )e"+la*%n# %##+ed =, *-e Se&)e*a), ! La=),


a# de# R+le VIII, Se&*%n /B ! *-e R+le# I2(le2en*%n" B@ III ! *-e La=) Cde )ead%n".

SEC0 /B0 Ded+&*%n# !)2 *-e 1a"e# ! *-e e2(l,ee# 2a, =e 2ade =, *-e e2(l,e) %n an, ! *-e
!ll1%n" &a#e#.

$a' W-en *-e ded+&*%n# a)e a+*-)%Ied =, la1, %n&l+d%n" ded+&*%n# !) *-e %n#+)an&e ()e2%+2# ad5an&ed =, *-e
e2(l,e) %n =e-al! ! *-e e2(l,ee a# 1ell a# +n%n d+e# 1-e)e *-e )%"-* * &-e&@A!! -a# =een )e&"n%Ied =,
*-e e2(l,e) ) a+*-)%Ied %n 1)%*%n" =, *-e %nd%5%d+al e2(l,ee -%2#el!6

$=' W-en *-e ded+&*%n# a)e 1%*- *-e 74.++0n a+*-)%Ia*%n ! *-e e2(l,ee# !) (a,2en* * a *-%)d (e)#n and *-e
e2(l,e) a")ee# * d #, ()5%ded *-a* *-e la**e) de# n* )e&e%5e an, (e&+n%a), =ene!%*, d%)e&*l, ) %nd%)e&*l,,
!)2 *-e *)an#a&*%n0 $E2(-a#%# and +nde)#&)%n" #+((l%ed'


In *-e a=#en&e *-en ! (e*%*%ne)K# 1)%**en &n!)2%*, * *-e ded+&*%n ! *-e /BR *%*-e !)2 -e) #ala),,
*-e ded+&*%n 2ade =, F)e#* H%ll# 1a# %lle"al0

F%nall,, n (e*%*%ne)K# &la%2 *-a* F)e#* H%ll# d%d n* )e2%* -e) SSS &n*)%=+*%n#, <illar v.
$ational "a%or &elations ommission
E7;F
enl%"-*en#.


< < < ETF-e =+)den ! ()5%n" (a,2en* ! 2ne*a), &la%2# )e#*# n *-e e2(l,e)0 < < <

< < < <

T-e )ea#n !) *-e )+le %# *-a* *-e (e)*%nen* (e)#nnel !%le#, (a,)ll#, )e&)d#, )e2%**an&e# and *-e)
#%2%la) d&+2en*# X 1-%&- 1%ll #-1 *-a* 5e)*%2e, d%!!e)en*%al#, #e)5%&e %n&en*%5e lea5e and *-e) &la%2# !
1)@e)# -a5e =een (a%d X a)e n* %n *-e (##e##%n ! *-e 1)@e) =+* %n *-e &+#*d, and a=#l+*e &n*)l ! *-e
e2(l,e)0
E74F
$Unde)#&)%n" #+((l%ed'


F)e#* H%ll# -a5%n" "l##ed 5e) *-%# &la%2, *-e #a2e 2+#* =e ")an*ed0

F%nall,, %n#!a) a# (e*%*%ne) 1a# &2(elled * l%*%"a*e -e) 2ne, &la%2#, an a1a)d ! a**)ne,K#
!ee# eC+%5alen* * /BR ! *-e !%nal D+d"2en* a1a)d %# %n )de)0
E7?F

WHERE'ORE, *-e C+)* ! A((eal# Re#l+*%n ! De&e2=e) /;, 7BB; %# SET ASIDE0 T-e
(e*%*%n %# RANTED %n#!a) a# (e*%*%ne)K# &la%2# !) %lle"al ded+&*%n#, -l%da, (a,, #e)5%&e %n&en*%5e
lea5e (a,, /9
*-
2n*- (a,, and nnA)e2%**an&e ! SSS &n*)%=+*%n# a)e &n&e)ned0 Re#(nden*# a)e
a&&)d%n"l,ORDERED * )e!+nd * (e*%*%ne) *-e a2+n* ! *-e %lle"al ded+&*%n# !)2 -e) #ala),6 *
(a, -e) -l%da, (a,, #e)5%&e %n&en*%5e lea5e (a,, and /9
*-
2n*- (a,6 * )e2%* -e) &n*)%=+*%n# * *-e
SSS6 and * (a, -e) a**)ne,K# !ee# eC+%5alen* * /BR ! *-e !%nal D+d"2en* a1a)d0 T-e &a#e %#
a&&)d%n"l, REMANDED * *-e La=) A)=%*e) !) &2(+*a*%n ! *-e a2+n* ! #+&- 2ne, &la%2#0

SO ORDERED0
THIRD DIVISION
2.R. N!. "&"=D$. Jan(a4- &B, &<<<3
AKLAN ELECTRIC COOPERATIVE INCORPORATED (AKELCO), petitioner, vs. NATIONAL
LABOR RELATIONS COMMISSION ('!(4+5 D.:.*.!n), RODOL'O M. RETISO and "#B OTHERS,
E/F
respondents.
D E C I S I O N
ONZAA-RE>ES, J.@
In -%# (e*%*%n !) certiorari and ()-%=%*%n 1%*- ()a,e) !) 1)%* ! ()el%2%na), %nD+n&*%n andL) *e2()a),
)e#*)a%n%n" )de), (e*%*%ne) a##a%l# $a' *-e de&%#%n da*ed A()%l 7B, />>;, ! (+=l%& )e#(nden* Na*%nal La=)
Rela*%n# C22%##%n $NLRC', F+)*- $3*-' D%5%#%n, Ce=+ C%*,, %n NLRC Ca#e N0 VAB/39A>3 )e5e)#%n" *-e
Fe=)+a), 7;, />>3 de&%#%n ! La=) A)=%*e) Denn%# D0 J+ann and )de)%n" (e*%*%ne) * (a, 1a"e# %n *-e
a"")e"a*e a2+n* ! P4,3:;,?4?0>B * ()%5a*e )e#(nden*#, and $=' *-e )e#l+*%n da*ed J+l, 7:, />>; den,%n"
(e*%*%ne)K# 2*%n !) )e&n#%de)a*%n, !) -a5%n" =een %##+ed 1%*- ")a5e a=+#e ! d%#&)e*%n0
A *e2()a), )e#*)a%n%n" )de) 1a# %##+ed =, *-%# C+)* n O&*=e) >, />>; enD%n%n" (+=l%& )e#(nden* !)2
e<e&+*%n" *-e C+e#*%ned de&%#%n +(n a #+)e*, =nd (#*ed =, (e*%*%ne) %n *-e a2+n* ! P4,3BB,BBB0BB0
E7F
T-e !a&*# a# !+nd =, *-e La=) A)=%*e) a)e a# !ll1#.
E9F
HT-e#e a)e &n#l%da*ed &a#e#L&la%2# !) nnA(a,2en* ! #ala)%e# and 1a"e#, /9*- 2n*- (a,, ECOLA and
*-e) !)%n"e =ene!%*# a# )%&e, 2ed%&al and &l*-%n" all1an&e#, #+=2%**ed =, &2(la%nan* Rdl! M0 Re*%#
and /49 *-e)#, L,n E0 Ban%lla and W%l#n B0 Sallad) a"a%n#* )e#(nden*# A@lan Ele&*)%& C(e)a*%5e, In&0
$APELCO', A**,0 Le5%"%ld Ma*%n" %n -%# &a(a&%*, a# Gene)al Mana"e)6 Man+el Cal%I, %n -%# &a(a&%*, a#
A&*%n" Ba)d P)e#%den*, Ba)d ! D%)e&*)#, APELCO0
C2(la%nan*# alle"ed *-a* ()%) * *-e *e2()a), *)an#!e) ! *-e !!%&e ! APELCO !)2 LeI A@lan * A2n
T-ea*e), Pal%=, A@lan, &2(la%nan*# 1e)e &n*%n++#l, (e)!)2%n" *-e%) *a#@ and 1e)e d+l, (a%d ! *-e%)
#ala)%e# a* *-e%) 2a%n !!%&e l&a*ed a* LeI, A@lan0
T-a* n Jan+a), 77, />>7, =, 1a, ! )e#l+*%n ! *-e Ba)d ! D%)e&*)# ! APELCO all1ed *-e *e2()a),
*)an#!e) -ld%n" ! !!%&e a* A2n T-ea*e), Pal%=, A@lan (e) %n!)2a*%n =, *-e%) P)De&* S+(e)5%#), A**,0
Le5%"%ld Ma*%n", *-a* *-e%) -ead !!%&e %# &l#ed and *-a* %* %# dan"e)+# * -ld !!%&e *-e)ea*6
Ne5e)*-ele##, 2aD)%*, ! *-e e2(l,ee# %n&l+d%n" -e)e%n &2(la%nan*# &n*%n+ed * )e()* !) 1)@ a* LeI
A@lan and 1e)e (a%d ! *-e%) #ala)%e#0
T-a* n Fe=)+a), 4, />>7, *-e ad2%n%#*)a*) ! NEA, Rd)%" Ca=)e)a, 1)*e a le**e) add)e##ed * *-e Ba)d !
APELCO, *-a* -e %# n* %n*e)(#%n" an, =De&*%n# * *-e a&*%n *a@en =, )e#(nden* Ma*%n"Y
T-a* n Fe=)+a), //, />>7, +nn+2=e)ed )e#l+*%n 1a# (a##ed =, *-e Ba)d ! APELCO 1%*-d)a1%n" *-e
*e2()a), de#%"na*%n ! !!%&e a* Pal%=, A@lan, and *-a* *-e da%l, (e)a*%n# 2+#* =e -eld a"a%n a* *-e 2a%n
!!%&e ! LeI, A@lan6
E3F
T-a* &2(la%nan*# 1- 1e)e *-en )e()*%n" a* *-e LeI !!%&e !)2 Jan+a), />>7 +( * Ma, />>7 1e)e d+l,
(a%d ! *-e%) #ala)%e#, 1-%le %n *-e 2ean*%2e #2e ! *-e e2(l,ee# *-)+"- *-e %n#*%"a*%n ! )e#(nden*
Ma*%n" &n*%n+ed * )e2a%n and 1)@ a* Pal%=, A@lan6
T-a* !)2 J+ne />>7 +( * Ma)&- /:, />>9, &2(la%nan*# 1- &n*%n++#l, )e()*ed !) 1)@ a* LeI, A@lan
%n &2(l%an&e 1%*- *-e a!)e2en*%ned )e#l+*%n 1e)e n* (a%d *-e%) #ala)%e#6
T-a* n Ma)&- />, />>9 +( * *-e ()e#en*, &2(la%nan*# 1e)e a"a%n all1ed * d)a1 *-e%) #ala)%e#6 1%*- *-e
e<&e(*%n ! a !e1 &2(la%nan*# 1- 1e)e n* (a%d *-e%) #ala)%e# !) *-e 2n*-# ! A()%l and Ma, />>96
Pe) alle"a*%n# ! *-e )e#(nden*#, *-e !ll1%n" a)e *-e !a&*#.
/0 T-a* *-e#e &2(la%nan*# 5l+n*a)%l, a=andned *-e%) )e#(e&*%5e 1)@LD= a##%"n2en*#, 1%*-+* an,
D+#*%!%a=le )ea#n and 1%*-+* n*%!,%n" *-e 2ana"e2en* ! *-e A@lan Ele&*)%& C(e)a*%5e, In&0 $APELCO',
-en&e *-e &(e)a*%5e #+!!e)ed da2a"e# and #,#*e2# l##6
70 T-a* *-e &2(la%nan*# -e)e%n de!%ed *-e la1!+l )de)# and *-e) %##+an&e# =, *-e Gene)al Mana"e)
and *-e Ba)d ! D%)e&*)# ! *-e APELCO0 T-e#e &2(la%nan*# 1e)e )eC+e#*ed * )e()* * 1)@ a* *-e
Pal%= !!%&e < < < =+* de#(%*e *-e#e la1!+l )de)# ! *-e Gene)al Mana"e), *-e &2(la%nan*# d%d n* !ll1
and 1%l!+ll, and 2al%&%+#l, de!%ed #a%d )de)# and %##+an&e ! *-e Gene)al Mana"e)6 *-a* *-e Ba)d !
D%)e&*)# (a##ed a Re#l+*%n )e#%#*%n" and den,%n" *-e &la%2# ! *-e#e &2(la%nan*#, < < < +nde) *-e ()%n&%(le
! Hn 1)@ n (a,H 1-%&- %# le"all, D+#*%!%ed6 T-a* *-e#e &2(la%nan*# -a5e H2a## lea5eH !)2 *-e%)
&+#*2a), 1)@ n J+ne />>7 +( * Ma)&- /:, />>9 and -ad a H#%*Ad1nH #*an&e !) *-e#e (e)%d# ! *%2e %n
*-e%) alle"ed ()*e#* ! *-e a((%n*2en* ! )e#(nden* A**,0 Le5%"%ld Ma*%n" a# *-e ne1 Gene)al Mana"e)
! *-e A@lan Ele&*)%& C(e)a*%5e, In&0 $APELCO' =, *-e Ba)d ! D%)e&*)# and &n!%)2ed =, *-e
Ad2%n%#*)a*) ! *-e Na*%nal Ele&*)%!%&a*%n Ad2%n%#*)a*%n $NEA', Q+eIn C%*,6 T-a* *-e, en"a"ed %n H 0 0 0
#l1d1n 2a## lea5e#, #%* d1n#, a**e2(*# * da2a"e, de#*), ) #a=*a"e (lan* eC+%(2en* and !a&%l%*%e# !
*-e A@lan Ele&*)%& C(e)a*%5e, In&0 $APELCO'0H
On Fe=)+a), 7;, />>3, a de&%#%n 1a# )ende)ed =, La=) A)=%*e) Denn%# D0 J+ann d%#2%##%n" *-e &2(la%n*#0
E;F
D%##a*%#!%ed 1%*- *-e de&%#%n, ()%5a*e )e#(nden*# a((ealed * *-e )e#(nden* C22%##%n0
On a((eal, *-e NLRCK# F+)*- D%5%#%n, Ce=+ C%*,,
E4F
)e5e)#ed and #e* a#%de *-e La=) A)=%*e)K# de&%#%n and
-eld *-a* ()%5a*e )e#(nden*# a)e en*%*led * +n(a%d 1a"e# !)2 J+ne /4, />>7 * Ma)&- /:, />>9, *-+#.
E?F
HT-e e5%den&e n )e&)d#, 2)e #(e&%!%&all, *-e e5%den&e #+=2%**ed =, *-e &2(la%nan*#, 1-%&- a)e. *-e le**e)
da*ed A()%l ?, />>9 ! Ped)%* L0 Le,#n, O!!%&e Mana"e) ! APELCO $Anne< HCH6 &2(la%nan*#K (#%*%n
(a(e)6 Rll, (0/B7' add)e##ed * )e#(nden* A**,0 Le5%"%ld T0 Ma*%n"6 )e#(nden* APELCO Gene)al
Mana"e)6 *-e 2e2)and+2 ! #a%d A**,0 Ma*%n" da*ed /3 A()%l />>9, %n an#1e) * *-e le**e) ! Ped)%*
Le,#n $Anne< HDH &2(la%nan*#K (#%*%n (a(e)'6 a# 1ell a# *-e &2(+*a*%n ! *-e +n(a%d 1a"e# d+e *
&2(la%nan*# $Anne<e# HEH * HEA9H6 &2(la%nan*#K (#%*%n (a(e), Rll, (a"e# /B73 * /B7?' &lea)l, #-1
*-a* &2(la%nan*# -ad )ende)ed #e)5%&e# d+)%n" *-e (e)%d A J+ne /4, />>7 * Ma)&- /:, />>90 T-e )e&)d %#
=e)e!* ! an, #-1%n" *-a* *-e )e#(nden*# -ad #+=2%**ed an, e5%den&e, d&+2en*a), ) *-e)1%#e, *
&n*)5e)* *-%# a##e5e)a*%n ! *-e &2(la%nan*# *-a* #e)5%&e# 1e)e )ende)ed d+)%n" *-%# (e)%d0 S+=De&*%n"
*-e#e e5%den&e# #+=2%**ed =, *-e &2(la%nan*# * *-e &)+&%=le ! #&)+*%n,, We !%nd *-a* )e#(nden* A**,0
Ma*%n" )e#(nded * *-e )eC+e#* ! *-e O!!%&e Mana"e), M)0 Le,#n, 1-%&- We C+*e, * 1%*.
HRe#* a##+)ed *-a* We #-all )e&22end ,+) a!)e#a%d )eC+e#* * +) Ba)d ! D%)e&*)# !) *-e%) &n#%de)a*%n
and a(()()%a*e a&*%n0 T-%# (a,2en*, -1e5e), #-all =e #+=De&*, a2n" *-e)#, * *-e a5a%la=%l%*, ! !+nd#0H
T-%# a##+)an&e %# an ad2%##%n *-a* &2(la%nan*# a)e en*%*led * (a,2en* !) #e)5%&e# )ende)ed !)2 J+ne /4,
/>>7 * Ma)&- /:, />>9, #(e&%all, # *-a* *-e )e&22enda*%n and )eC+e#* &2e# !)2 *-e !!%&e 2ana"e)
-%2#el! 1- -a# d%)e&* @n1led"e )e"a)d%n" *-e #e)5%&e# and (e)!)2an&e ! e2(l,ee# +nde) -%20 F) -1
&+ld ne !!%&e 2ana"e) )e&22end (a,2en* ! 1a"e#, %! n #e)5%&e# 1e)e )ende)ed =, e2(l,ee# +nde)
-%20 An !!%&e 2ana"e) %# *-e 2#* C+al%!%ed (e)#n * @n1 *-e (e)!)2an&e ! (e)#nnel +nde) -%20 And
*-e)e!)e, an, )eC+e#* &2%n" !)2 -%2 !) (a,2en* ! 1a"e# add)e##ed * -%# #+(e)%) a# %n *-e %n#*an* &a#e
#-all =e "%5en 1e%"-*0
F+)*-e)2)e, *-e )e&)d %# &lea) *-a* &2(la%nan*# 1e)e (a%d ! *-e%) 1a"e# and *-e) !)%n"e =ene!%*# !)2
Jan+a),, />>7 * Ma,, />>7 and !)2 Ma)&- />, />>9 +( * *-e *%2e &2(la%nan*# !%led *-e %n#*an* &a#e#0 In
*-e %n*e)e"n+2, !)2 J+ne /4, />>7 * Ma)&- /:, />>9, &2(la%nan*# 1e)e n* (a%d ! *-e%) #ala)%e#, -en&e
*-e#e &la%2#0 We &+ld #ee n )-,2e n) )ea#n %n )e#(nden*#K )e!+#al * (a, &2(la%nan*# #ala)%e# d+)%n"
*-%# (e)%d 1-en &2(la%nan*# -ad 1)@ed and a&*+all, )ende)ed #e)5%&e * APELCO0
W-%le *-e )e#(nden*# 2a%n*a%n *-a* &2(la%nan*# 1e)e n* (a%d d+)%n" *-%# %n*e)%2 (e)%d +nde) *-e ()%n&%(le
! Hn 1)@, n (a,H, -1e5e), n ()! 1a# #+=2%**ed =, *-e )e#(nden*# * #+=#*an*%a*e *-%# alle"a*%n0 T-e
la=) a)=%*e), *-e)e!)e, e))ed %n d%#2%##%n" *-e &la%2# ! *-e &2(la%nan*#, 1-en -e ad(*ed *-e Hn 1)@, n
(a,H ()%n&%(le ad5an&ed =, *-e )e#(nden*#0
WHEREFORE, %n 5%e1 ! *-e !)e"%n", *-e a((ealed de&%#%n da*ed Fe=)+a), 7;, />>3 %# -e)e=, Re5e)#ed
and Se* A#%de and a ne1 ne en*e)ed )de)%n" )e#(nden* APELCO * (a, &2(la%nan*# *-e%) &la%2#
a2+n*%n" * P4,3:;,?4?0>B a# #-1n %n *-e &2(+*a*%n $Anne<e# HEH * HEA9H'0H
A 2*%n !) )e&n#%de)a*%n 1a# !%led =, (e*%*%ne) =+* *-e #a2e 1a# den%ed =, (+=l%& )e#(nden* %n a
)e#l+*%n da*ed J+l, 7:, />>;0
E:F
Pe*%*%ne) =)+"-* *-e &a#e * *-%# C+)* alle"%n" *-a* )e#(nden* NLRC &22%**ed ")a5e a=+#e ! d%#&)e*%n
&%*%n" *-e !ll1%n" ")+nd#.
E>F
/0 PUBLIC RESPONDENT COMMITTED GRAVE ABUSE OF DISCRETION IN REVERSING THE
FACTUAL FINDINGS AND CONCLUSIONS OF THE LABOR ARBITER, AND DISREGARDING THE
EGPRESS ADMISSION OF PRIVATE RESPONDENTS THAT THEY DEFIED PETITIONERKS ORDER
TRANSFERRING THE PETITIONERKS OFFICIAL BUSINESS OFFICE FROM LEZO TO PALIBO AND
FOR THEM TO REPORT THEREAT0
70 PUBLIC RESPONDENT COMMITTED GRAVE ABUSE OF DISCRETION IN CONCLUDING THAT
PRIVATE RESPONDENTS WERE REALLY WORPING OR RENDERING SERVICE ON THE BASIS OF
THE COMPUTATION OF WAGES AND THE BIASED RECOMMENDATION SUBMITTED BY
LEYSON WHO IS ONE OF THE PRIVATE RESPONDENTS WHO DEFIED THE LAWFUL ORDERS OF
PETITIONER0
90 PUBLIC RESPONDENT COMMITTED GRAVE ABUSE OF DISCRETION IN CONSIDERING THE
ASSURANCE BY PETITIONERKS GENERAL MANAGER MATIONG TO RECOMMEND THE
PAYMENT OF THE CLAIMS OF PRIVATE RESPONDENTS AS AN ADMISSION OF LIABILITY OR A
RECOGNITION THAT COMPENSABLE SERVICES WERE ACTUALLY RENDERED0
30 GRANTING THAT PRIVATE RESPONDENTS CONTINUED TO REPORT AT THE LEZO OFFICE, IT
IS STILL GRAVE ABUSE OF DISCRETION FOR PUBLIC RESPONDENT TO CONSIDER THAT
PETITIONER IS LEGALLY OBLIGATED TO RECOGNIZE SAID CIRCUMSTANCE AS
COMPENSABLE SERVICE AND PAY WAGES TO PRIVATE RESPONDENTS FOR DEFYING THE
ORDER FOR THEM TO REPORT FOR WORP AT THE PALIBO OFFICE WHERE THE OFFICIAL
BUSINESS AND OPERATIONS WERE CONDUCTED0
;0 PUBLIC RESPONDENT COMMITTED GRAVE ABUSE OF DISCRETION AND SERIOUS, PATENT
AND PALPABLE ERROR IN RULING THAT THE HNO WORP, NO PAYH PRINCIPLE DOES NOT
APPLY FOR LACP OF EVIDENTIARY SUPPORT WHEN PRIVATE REPONDENTS ALREADY
ADMITTED THAT THEY DID NOT REPORT FOR WORP AT THE PALIBO OFFICE0
40 PUBLIC RESPONDENT COMMITTED GRAVE ABUSE OF DISCRETION IN ACCORDING WEIGHT
AND CREDIBILITY TO THE SELFASERVING AND BIASED ALLEGATIONS OF PRIVATE
RESPONDENTS, AND ACCEPTING THEM AS PROOF, DESPITE THE ESTABLISHED FACT AND
ADMISSION THAT PRIVATE RESPONDENTS DID NOT REPORT FOR WORP AT THE PALIBO
OFFICE, OR THAT THEY WERE NEVER PAID FOR ANY WAGES FROM THE TIME THEY DEFIED
PETITIONERKS ORDERS0
Pe*%*%ne) &n*end# *-a* (+=l%& )e#(nden* &22%**ed ")a5e a=+#e ! d%#&)e*%n %n !%nd%n" *-a* ()%5a*e
)e#(nden*# a)e en*%*led * *-e%) 1a"e# !)2 J+ne /4, />>7 * Ma)&- /:, />>9, *-+# d%#)e"a)d%n" *-e ()%n&%(le
! Hn 1)@, n (a,H0 I* alle"e# *-a* ()%5a*e )e#(nden*# #*a*ed %n *-e%) (lead%n"# *-a* *-e, n* nl, =De&*ed *
*-e *)an#!e) ! (e*%*%ne)K# =+#%ne## !!%&e * Pal%= =+* *-e, al# de!%ed *-e d%)e&*%5e * )e()* *-e)ea* =e&a+#e
*-e, &n#%de)ed *-e *)an#!e) %lle"al0 I* !+)*-e) &la%2# *-a* ()%5a*e )e#(nden*# )e!+#ed * )e&"n%Ie *-e a+*-)%*,
! (e*%*%ne)K# la1!+l !!%&e)# and a"en*# )e#+l*%n" %n *-e d%#)+(*%n ! (e*%*%ne)K# =+#%ne## (e)a*%n# %n %*#
!!%&%al =+#%ne## !!%&e %n LeI, APlan, !)&%n" (e*%*%ne) * *)an#!e) %*# !!%&e !)2 LeI * Pal%= *)an#!e))%n"
all %*# eC+%(2en*#, )e&)d# and !a&%l%*%e#6 *-a* ()%5a*e )e#(nden*# &ann* &-#e 1-e)e * 1)@, *-+#, 1-en
*-e, de!%ed *-e la1!+l )de)# ! (e*%*%ne) * )e()* a* Pal%=, ()%5a*e )e#(nden*# 1e)e &n#%de)ed d%#2%##ed
a# !a) a# (e*%*%ne) 1a# &n&e)ned0 Pe*%*%ne) al# d%#(+*e# ()%5a*e )e#(nden*#K alle"a*%n *-a* *-e, 1e)e (a%d
*-e%) #ala)%e# !)2 Jan+a), * Ma, />>7 and a"a%n !)2 Ma)&- />, />>9 +( * *-e ()e#en* =+* n* !) *-e (e)%d
!)2 J+ne />>7 * Ma)&- /:, />>9 #a,%n" *-a* ()%5a*e )e#(nden*# %lle"all, &lle&*ed !ee# and &-a)"e# d+e
(e*%*%ne) and a(()()%a*ed *-e &lle&*%n# a2n" *-e2#el5e# !) 1-%&- )ea#n *-e, a)e &la%2%n" #ala)%e# nl,
!) *-e (e)%d !)2 J+ne />>7 * Ma)&- />>9 and *-a* ()%5a*e )e#(nden*# 1e)e (a%d *-e%) #ala)%e# #*a)*%n" nl,
%n A()%l />>9 1-en (e*%*%ne)K# Ba)d a")eed * a&&e(* ()%5a*e )e#(nden*# =a&@ * 1)@ a* Pal%= !!%&e +*
! &2(a##%n and n* !) *-e )ea#n *-a* *-e, )ende)ed #e)5%&e a* *-e LeI !!%&e0 Pe*%*%ne) al# add# *-a*
&2(en#a=le #e)5%&e %# =e#* #-1n =, *%2e&a)d#, (a,#l%(# and *-e) #%2%la) d&+2en*# and %* 1a# an e))) !)
(+=l%& )e#(nden* * &n#%de) *-e &2(+*a*%n ! *-e &la%2# !) 1a"e# and =ene!%*# #+=2%**ed 2e)el, =,
()%5a*e )e#(nden*# a# #+=#*an*%al e5%den&e0
T-e Sl%&%*) Gene)al !%led %*# Man%!e#*a*%n %n l%e+ ! C22en* ()a,%n" *-a* *-e de&%#%n ! )e#(nden* NLRC
=e #e* a#%de and (a,2en* ! 1a"e# &la%2ed =, ()%5a*e )e#(nden*# =e den%ed !) la&@ ! 2e)%* alle"%n" *-a*
()%5a*e )e#(nden*# &+ld n* -a5e 1)@ed !) (e*%*%ne)8# !!%&e %n LeI d+)%n" *-e #*a*ed (e)%d #%n&e
(e*%*%ne) *)an#!e))ed %*# =+#%ne## (e)a*%n %n Pal%= 1-e)e all %*# )e&)d# and eC+%(2en*# 1e)e =)+"-*6 *-a*
&2(+*a*%n# ! *-e &la%2# !) 1a"e# and =ene!%*# #+=2%**ed =, ()%5a*e )e#(nden*# * (e*%*%ne) %# n* ()!
! )end%*%n ! 1)@0 F%l%n" %*# 1n C22en*, (+=l%& )e#(nden* NLRC &la%2# *-a* *-e )%"%nal and e<&l+#%5e
D+)%#d%&*%n ! *-%# C+)* * )e5%e1 de&%#%n# ) )e#l+*%n# ! )e#(nden* NLRC de# n* %n&l+de a &))e&*%n
! %*# e5al+a*%n ! e5%den&e a# !a&*+al %##+e# a)e n* !%* #+=De&* !)certiorari0
P)%5a*e )e#(nden*#, %n *-e%) C22en*, alle"e *-a* )e5%e1 ! a de&%#%n ! NLRC %n a (e*%*%n
!) certiorari +nde) R+le 4; de# n* %n&l+de *-e &))e&*ne## ! %*# e5al+a*%n ! *-e e5%den&e =+* %# &n!%ned *
%##+e# ! D+)%#d%&*%n ) ")a5e a=+#e ! d%#&)e*%n and *-a* !a&*+al !%nd%n"# ! ad2%n%#*)a*%5e =d%e# a)e en*%*led
* ")ea* 1e%"-*, and a&&)ded n* nl, )e#(e&* =+* e5en !%nal%*, 1-en #+(()*ed =, #+=#*an*%al e5%den&e0 T-e,
&la%2 *-a* (e*%*%ne)8# Ba)d ! D%)e&*)# (a##ed an +nn+2=e)ed )e#l+*%n n Fe=)+a), //, />>7 )e*+)n%n"
=a&@ *-e !!%&e * LeI !)2 Pal%= A@lan 1%*- a d%)e&*%5e !) all e2(l,ee# * %22ed%a*el, )e()* a* LeI6
*-a* *-e le**e)A)e(l, ! A**,0 Ma*%n" * *-e le**e) ! !!%&e 2ana"e) Le,#n *-a* -e 1%ll )e&22end *-e
(a,2en* ! *-e ()%5a*e )e#(nden*#8 #ala), !)2 J+ne /4, />>7 * Ma)&- /:, />>9 * *-e Ba)d ! D%)e&*)#
1a# an ad2%##%n *-a* ()%5a*e )e#(nden*# a)e en*%*led * #+&- (a,2en* !) #e)5%&e# )ende)ed0 P)%5a*e
)e#(nden*# #*a*e *-a* %n a(()e&%a*%n" *-e e5%den&e %n *-e%) !a5), (+=l%& )e#(nden* NLRC a* 2#* 2a, =e
l%a=le !) e)))# ! D+d"2en* 1-%&-, a# d%!!e)en*%a*ed !)2 e)))# ! D+)%#d%&*%n, a)e n* 1%*-%n *-e ()5%n&e !
*-e #(e&%al &%5%l a&*%n ! certiorari0
Pe*%*%ne) !%led %*# Re(l, alle"%n" *-a* )e5%e1 ! *-e de&%#%n ! (+=l%& )e#(nden* %# ()(e) %! *-e)e %# a &n!l%&*
%n *-e !a&*+al !%nd%n"# ! *-e la=) a)=%*e) and *-e NLRC and 1-en *-e e5%den&e %# %n#+!!%&%en* and
%n#+=#*an*%al * #+(()* NLRCK# !a&*+al !%nd%n"#6 *-a* (+=l%& )e#(nden*K# !%nd%n"# *-a* ()%5a*e )e#(nden*#
)ende)ed &2(en#a=le #e)5%&e# 1e)e 2e)el, =a#ed n ()%5a*e )e#(nden*#K &2(+*a*%n ! &la%2# 1-%&- %#
#el!A#e)5%n"6 *-a* *-e alle"ed +nn+2=e)ed =a)d )e#l+*%n da*ed Fe=)+a), //, />>7, d%)e&*%n" all e2(l,ee# *
)e()* * LeI O!!%&e 1a# ne5e) %2(le2en*ed =e&a+#e %* 1a# n* a 5al%d a&*%n ! APELCOK# le"%*%2a*e =a)d0
T-e #le %##+e !) de*e)2%na*%n %# 1-e*-e) ) n* (+=l%& )e#(nden* NLRC &22%**ed ")a5e a=+#e !
d%#&)e*%n a2+n*%n" * e<&e## ) 1an* ! D+)%#d%&*%n 1-en %* )e5e)#ed *-e !%nd%n"# ! *-e La=) A)=%*e) *-a*
()%5a*e )e#(nden*# )e!+#ed * 1)@ +nde) *-e la1!+l )de)# ! *-e (e*%*%ne) APELCO 2ana"e2en*6 -en&e
*-e, a)e &5e)ed =, *-e Hn 1)@, n (a,H ()%n&%(le and a)e *-+# n* en*%*led * *-e &la%2 !) +n(a%d 1a"e#
!)2 J+ne /4, />>7 * Ma)&- /:, />>90
We !%nd 2e)%* %n *-e (e*%*%n0
A* *-e +*#e*, 1e )e%*e)a*e *-e )+le *-a* %n certiorari ()&eed%n"# +nde) R+le 4;, *-%# C+)* de# n* a##e## and
1e%"- *-e #+!!%&%en&, ! e5%den&e +(n 1-%&- *-e la=) a)=%*e) and (+=l%& )e#(nden* NLRC =a#ed *-e%)
)e#l+*%n#0 O+) C+e), %# l%2%*ed * *-e de*e)2%na*%n ! 1-e*-e) ) n* (+=l%& )e#(nden* NLRC a&*ed 1%*-+*
) %n e<&e## ! %*# D+)%#d%&*%n ) 1%*- ")a5e a=+#e ! d%#&)e*%n %n )ende)%n" *-e a##a%led )e#l+*%n#0
E/BF
W-%le
ad2%n%#*)a*%5e !%nd%n"# ! !a&* a)e a&&)ded ")ea* )e#(e&*, and e5en !%nal%*, 1-en #+(()*ed =, #+=#*an*%al
e5%den&e, ne5e)*-ele##, 1-en %* &an =e #-1n *-a* ad2%n%#*)a*%5e =d%e# ")##l, 2%#a(()e&%a*ed e5%den&e !
#+&- na*+)e a# * &2(el a &n*)a), &n&l+#%n, *-%# &+)* -ad n* -e#%*a*ed * )e5e)#e *-e%) !a&*+al !%nd%n"#0
E//F
Fa&*+al !%nd%n"# ! ad2%n%#*)a*%5e a"en&%e# a)e n* %n!all%=le and 1%ll =e #e* a#%de 1-en *-e, !a%l *-e *e#* !
a)=%*)a)%ne##0
E/7F
M)e5e), 1-e)e *-e !%nd%n"# ! NLRC &n*)ad%&* *-#e ! *-e la=) a)=%*e), *-%# C+)*, %n *-e
e<e)&%#e ! %*# eC+%*, D+)%#d%&*%n, 2a, l@ %n* *-e )e&)d# ! *-e &a#e and )ee<a2%ne *-e C+e#*%ned !%nd%n"#0
E/9F
We !%nd &"en* )ea#n, a# #-1n =, *-e (e*%*%ne) and *-e Sl%&%*) Gene)al, n* * a!!%)2 *-e !a&*+al !%nd%n"#
! (+=l%& )e#(nden* NLRC0
We d n* a")ee 1%*- *-e !%nd%n" *-a* ()%5a*e )e#(nden*# -ad )ende)ed #e)5%&e# !)2 J+ne /4, />>7 * Ma)&-
/:, />>9 # a# * en*%*le *-e2 * (a,2en* ! 1a"e#0 P+=l%& )e#(nden* =a#ed %*# &n&l+#%n n *-e !ll1%n".
$a' *-e le**e) da*ed A()%l ?, />>9 ! Ped)%* L0 Le,#n, O!!%&e Mana"e) ! APELCO add)e##ed * APELCOK#
Gene)al Mana"e), A**,0 Le5%"%ld T0 Ma*%n", )eC+e#*%n" !) *-e (a,2en* ! ()%5a*e )e#(nden*#K +n(a%d
1a"e# !)2 J+ne /4, />>7 * Ma)&- /:, />>96 $=' *-e 2e2)and+2 ! #a%d A**,0 Ma*%n" da*ed /3 A()%l />>9,
%n an#1e) * *-e le**e) )eC+e#* ! Ped)%* Le,#n 1-e)e A**,0 Ma*%n" 2ade an a##+)an&e *-a* -e 1%ll
)e&22end #+&- )eC+e#*6 $&' *-e ()%5a*e )e#(nden*#K 1n &2(+*a*%n ! *-e%) +n(a%d 1a"e#0 We !%nd *-a* *-e
!)e"%n" de# n* &n#*%*+*e #+=#*an*%al e5%den&e * #+(()* *-e &n&l+#%n *-a* ()%5a*e )e#(nden*# a)e
en*%*led * *-e (a,2en* ! 1a"e# !)2 J+ne /4, />>7 * Ma)&- /:, />>90 S+=#*an*%al e5%den&e %# *-a* a2+n* !
)ele5an* e5%den&e 1-%&- a )ea#na=le 2%nd 2%"-* a&&e(* a# adeC+a*e * D+#*%!, a &n&l+#%n0
E/3F
T-e#e e5%den&e#
)el%ed +(n =, (+=l%& )e#(nden* d%d n* e#*a=l%#- *-e !a&* *-a* ()%5a*e )e#(nden*# a&*+all, )ende)ed #e)5%&e#
%n *-e Pal%= !!%&e d+)%n" *-e #*a*ed (e)%d0
T-e le**e) ! Ped)%* Le,#n * A**,0 Ma*%n" 1a# &n#%de)ed =, (+=l%& )e#(nden* a# e5%den&e *-a* #e)5%&e#
1e)e )ende)ed =, ()%5a*e )e#(nden*# d+)%n" *-e #*a*ed (e)%d, a# *-e )e&22enda*%n and )eC+e#* &a2e !)2
*-e !!%&e 2ana"e) 1- -a# d%)e&* @n1led"e )e"a)d%n" *-e #e)5%&e# and (e)!)2an&e ! e2(l,ee# +nde) -%20
We a)e n* &n5%n&ed0 Ped)%* Le,#n %# ne ! *-e -e)e%n ()%5a*e )e#(nden*# 1- a)e &la%2%n" !) +n(a%d
1a"e# and 1e !%nd -%# a&*+a*%n ! )eC+e#*%n" %n =e-al! ! *-e *-e) ()%5a*e )e#(nden*# !) *-e (a,2en* !
*-e%) =a&@1a"e# * =e =%a#ed and #el!A#e)5%n", *-+# n* &)ed%=le0
On *-e *-e) -and, (e*%*%ne) 1a# a=le * #-1 *-a* ()%5a*e )e#(nden*# d%d n* )ende) #e)5%&e# d+)%n" *-e
#*a*ed (e)%d0 Pe*%*%ne)K# e5%den&e# #-1 *-a* n Jan+a), 77, />>7, (e*%*%ne)K# Ba)d ! D%)e&*)# (a##ed a
)e#l+*%n *e2()a)%l, *)an#!e))%n" *-e O!!%&e !)2 LeI, A@lan * A2n T-ea*e), Pal%=, A@lan +(n *-e
)e&22enda*%n ! A**,0 Le5%"%ld Ma*%n", *-en ()De&* #+(e)5%#), n *-e ")+nd *-a* *-e !!%&e a* LeI
1a# dan"e)+# and +n#a!e0 S+&- *)an#!e) 1a# a(()5ed =, *-en NEA Ad2%n%#*)a*), Rd)%" E0 Ca=)e)a, %n a
le**e) da*ed Fe=)+a), 4, />>7 add)e##ed * (e*%*%ne)K# Ba)d ! D%)e&*)#0
E/;F
T-+#, *-e NEA Ad2%n%#*)a*), %n
*-e e<e)&%#e ! #+(e)5%#%n and &n*)l 5e) all ele&*)%& &(e)a*%5e#, %n&l+d%n" (e*%*%ne), 1)*e a le**e) da*ed
Fe=)+a), 4, />>7 add)e##ed * *-e P)5%n&%al D%)e&*) PCLINP Pal%= A@lan )eC+e#*%n" !) 2%l%*a), a##%#*an&e
!) *-e (e*%*%ne)K# *ea2 %n )e*)%e5%n" *-e ele&*)%& &(e)a*%5eK# eC+%(2en*# and *-e) )e25a=le !a&%l%*%e#
andL) !%<*+)e# &n#eC+en*%al * *-e *)an#!e) ! %*# ()%n&%(al =+#%ne## add)e## !)2 LeI * Pal%= and %n
2a%n*a%n%n" (ea&e and )de) %n *-e &(e)a*%5eK# &5e)a"e a)ea0
E/4F
T-e !)e"%n" e#*a=l%#-e# *-e !a&* *-a* *-e
&n*%n++# (e)a*%n ! *-e (e*%*%ne)K# =+#%ne## !!%&e %n LeI A@lan 1+ld (#e a #e)%+# and %22%nen*
*-)ea* * (e*%*%ne)K# !!%&%al# and *-e) e2(l,ee#, -en&e *-e ne&e##%*, ! *e2()a)%l, *)an#!e))%n" *-e
(e)a*%n ! %*# =+#%ne## !!%&e !)2 LeI * Pal%=0 S+&- *)an#!e) 1a# dne %n *-e e<e)&%#e ! a 2ana"e2en*
()e)"a*%5e and %n *-e a=#en&e ! &n*)a), e5%den&e %# n* +nD+#*%!%ed0 W%*- *-e *)an#!e) ! (e*%*%ne)K# =+#%ne##
!!%&e !)2 %*# !)2e) !!%&e, LeI, * Pal%=, A@lan, %*# eC+%(2en*#, )e&)d# and !a&%l%*%e# 1e)e al# )e25ed
!)2 LeI and =)+"-* * *-e Pal%= !!%&e 1-e)e (e*%*%ne)K# !!%&%al =+#%ne## 1a# =e%n" &nd+&*ed6 *-+#
()%5a*e )e#(nden*#K alle"a*%n# *-a* *-e, &n*%n+ed * )e()* !) 1)@ a* LeI * #+(()* *-e%) &la%2 !) 1a"e#
-a# n =a#%#0
M)e5e), ()%5a*e )e#(nden*# %n *-e%) (#%*%n (a(e) ad2%**ed *-a* *-e, d%d n* )e()* a* *-e Pal%= !!%&e, a#
LeI )e2a%ned * =e *-e%) !!%&e 1-e)e *-e, &n*%n++#l, )e()*ed, * 1%*.
E/?F
HOn Jan+a), 77, />>/ =, 1a, ! a )e#l+*%n ! *-e Ba)d ! D%)e&*)# ! APELCO %* all1ed *-e *e2()a),
-ld%n" ! !!%&e a* A2n T-ea*e), Pal%=, A@lan, (e) %n!)2a*%n =, *-e%) ()De&* #+(e)5%#), A**,0
Le5%"%ld Ma*%n" *-a* *-e%) -ead !!%&e %# &l#ed and *-a* %* %# dan"e)+# * -ld !!%&e *-e)ea*0
Ne5e)*-ele##, 2aD)%*, ! *-e e2(l,ee# %n&l+d%n" *-e -e)e%n &2(la%nan*#, &n*%n+ed * )e()* !) 1)@ a*
LeI, A@lan and 1e)e (a%d ! *-e%) #ala)%e#0
< < <
T-e *)an#!e) ! !!%&e !)2 LeI, A@lan * Pal%=, A@lan =e%n" %lle"al !) !a%l+)e * &2(l, 1%*- *-e le"al
)eC+%)e2en*# +nde) P0D0 74>, *-e &2(la%nan*# )e2a%ned and &n*%n+ed * 1)@ a* *-e LeI O!!%&e +n*%l *-e,
1e)e %lle"all, l&@ed +* *-e)e!)2 =, *-e )e#(nden*#0 De#(%*e *-e %lle"al l&@ +* -1e5e), &2(la%nan*#
&n*%n+ed * )e()* da%l, * *-e l&a*%n ! *-e LeI O!!%&e, ()e(a)ed * &n*%n+e %n *-e (e)!)2an&e ! *-e%)
)e"+la) d+*%e#0
C2(la%nan*# *-+# &+ld n* =e &n#%de)ed * -a5e a=andned *-e%) 1)@ a# LeI )e2a%ned * =e *-e%) !!%&e
and n* Pal%= de#(%*e *-e *e2()a), *)an#!e) *-e)e*0 F+)*-e) *-e !a&* *-a* *-e, 1e)e all1ed * d)a1 *-e%)
#ala)%e# +( * Ma,, />>7 %# an a&@n1led"2en* =, *-e 2ana"e2en* *-a* *-e, a)e 1)@%n" d+)%n" *-e (e)%d0
< < <
I* 2+#* =e (%n*ed +* *-a* &2(la%nan*# 1)@ed and &n*%n++#l, )e()*ed a* LeI !!%&e de#(%*e *-e
2ana"e2en* -ld%n" !!%&e a* Pal%=0 In !a&*, *-e, 1e)e (a%d *-e%) 1a"e# =e!)e %* 1a# 1%*--eld and *-en 1e)e
all1ed * d)a1 *-e%) #ala)%e# a"a%n n Ma)&- />>9 1-%le )e()*%n" a* LeI +( * *-e ()e#en*0
Re#(nden*#K a&*# and (a,2en* ! &2(la%nan*#K #ala)%e# and a"a%n !)2 Ma)&- />>9 %# an +neC+%5&al
)e&"n%*%n n *-e (a)* ! )e#(nden*# *-a* *-e 1)@ ! &2(la%nan*# %# &n*%n+%n" and +n%n*e))+(*ed and *-e,
a)e *-e)e!)e en*%*led * *-e%) +n(a%d 1a"e# !) *-e (e)%d !)2 J+ne />>7 * Ma)&- />>90H
T-e ad2%##%n %# de*)%2en*al * ()%5a*e )e#(nden*#K &a+#e0 T-e%) e<&+#e %# *-a* *-e *)an#!e) * Pal%= 1a#
%lle"al =+* 1e a")ee 1%*- *-e La=) A)=%*e) *-a* %* 1a# n* !) ()%5a*e )e#(nden*# * de&la)e *-e 2ana"e2en*K#
a&* ! *e2()a)%l, *)an#!e))%n" *-e APELCO !!%&e * Pal%= a# an %lle"al a&*0 T-e)e %# n alle"a*%n n) ()!
*-a* *-e *)an#!e) 1a# 2ade %n =ad !a%*- ) 1%*- 2al%&e0 T-e La=) A)=%*e) &))e&*l, )a*%nal%Ied %n %*# de&%#%n
a# !ll1#.
E/:F
HWe d n* #+=#&)%=e * &2(la%nan*# *-e), and a##e)*%n#0 T-e,, =, *-e%) 1n alle"a*%n#, -a5e +n%la*e)all,
&22%**ed a&*# %n 5%la*%n ! 2ana"e2en*K#L)e#(nden*#K d%)e&*%5e# (+)el, &la##%!%ed a# 2ana"e2en*
()e)"a*%5e0 T-e, -a5e *a@en a2n"#* *-e2#el5e# de&la)%n" 2ana"e2en*K# a&*# ! *e2()a)%l, *)an#!e))%n" *-e
-ld%n" ! *-e APELCO !!%&e !)2 LeI * Pal%=, A@lan a# %lle"al0 I* %# ne5e) %n&+2=en* +(n *-e2#el5e#
* de&la)e *-e #a2e a# #+&-0 I* %# ld"ed %n an*-e) !)+2 ) =d, le"all, 2an*led * d *-e #a2e0 W-a* *-e,
#-+ld -a5e dne 1a# !%)#* * !ll1 2ana"e2en*K# )de)# *e2()a)%l, *)an#!e))%n" !!%&e !) %* -a# *-e !%)#*
()e#+2(*%n ! le"al%*,0 F+)*-e), *-e *)an#!e) 1a# nl, *e2()a),0 F).
HT-e e2(l,e) a# 1ne) ! *-e =+#%ne##, al# -a# %n-e)en* )%"-*#, a2n" 1-%&- a)e *-e )%"-* * #ele&* *-e
(e)#n# * =e -%)ed and d%#&-a)"e *-e2 !) D+#* and 5al%d &a+#e6 * ()2+l"a*e and en!)&e )ea#na=le
e2(l,2en* )+le# and )e"+la*%n# and * 2d%!,, a2end ) )e5@e *-e #a2e6 * de#%"na*e *-e 1)@ a# 1ell a#
*-e e2(l,ee ) e2(l,ee# * (e)!)2 %*6 * *)an#!e) ) ()2*e e2(l,ee#6 * #&-ed+le, d%)e&*, &+)*a%l )
&n*)l &2(an, (e)a*%n#6 * %n*)d+&e ) %n#*all ne1 ) %2()5ed la=) ) 2ne, #a5%n"# 2e*-d#, !a&%l%*%e#
) de5%&e#6 * &)ea*e, 2e)"e, d%5%de, )e&la##%!, and a=l%#- de(a)*2en*# ) (#%*%n# %n *-e &2(an, and * #ell
) &l#e *-e =+#%ne##0
< < <
E5en a# *-e la1 %# #l%&%*+# ! *-e 1el!a)e ! *-e e2(l,ee# %* 2+#* al# ()*e&* *-e )%"-* ! an e2(l,e) *
e<e)&%#e 1-a* a)e &lea)l, 2ana"e2en* ()e)"a*%5e#0 T-e !)ee 1%ll ! 2ana"e2en* * &nd+&* %*# 1n =+#%ne##
a!!a%)# * a&-%e5e %*# (+)(#e &an n* =e den%ed0 T-e *)an#!e) ! a##%"n2en* ! a 2ed%&al )e()e#en*a*%5e !)2
Man%la * *-e ()5%n&e -a# *-e)e!)e =een -eld la1!+l 1-e)e *-%# 1a# de2anded =, *-e )eC+%)e2en*# ! *-e
d)+" &2(an,K# 2a)@e*%n" (e)a*%n# and *-e !)2e) -ad a* *-e *%2e ! -%# e2(l,2en* +nde)*a@en * a&&e(*
a##%"n2en* an,1-e)e %n *-e P-%l%((%ne#0 $A==* La=)a*)%e# $P-%l#0', In&0, e* al0 5#0 NLRC, e* al0, G0R0 N0 LA
?4>;>, O&*0 /7, />:?'0
I* %# *-e e2(l,e)K# ()e)"a*%5e * a=l%#- a (#%*%n 1-%&- %* dee2# n ln"e) ne&e##a),, and *-e &+)*#, a=#en*
an, !%nd%n"# ! 2al%&e n *-e (a)* ! *-e 2ana"e2en*, &ann* e)a#e *-a* %n%*%a*%5e #%2(l, * ()*e&* *-e (e)#n
-ld%n" !!%&e $G)ea* Pa&%!%& L%!e A##+)an&e C)()a*%n 5#0 NLRC, e* al0, G0R0 N0 ::B//, J+l, 9B, />>B'0H
P)%5a*e )e#(nden*# &la%2 *-a* (e*%*%ne)K# Ba)d ! D%)e&*)# (a##ed an +nn+2=e)ed )e#l+*%n da*ed Fe=)+a),
//, />>7 )e*+)n%n" =a&@ *-e !!%&e !)2 %*# *e2()a), !!%&e %n Pal%= * LeI0 T-+#, *-e, d%d n* de!, an,
la1!+l )de) ! (e*%*%ne) and 1e)e D+#*%!%ed %n &n*%n+%n" * )e2a%n a* LeI !!%&e0 T-%# alle"a*%n 1a#
&n*)5e)*ed =, (e*%*%ne) %n %*# Re(l, #a,%n" *-a* #+&- +nn+2=e)ed )e#l+*%n 1a# ne5e) %2(le2en*ed a# %*
1a# n* a 5al%d a&* ! (e*%*%ne)K# Ba)d0 We a)e &n5%n&ed =, (e*%*%ne)K# a)"+2en* *-a* #+&- +nn+2=e)ed
)e#l+*%n 1a# n* a 5al%d a&* ! (e*%*%ne)# le"%*%2a*e Ba)d &n#%de)%n" *-e #+=#eC+en* a&*%n# *a@en =, *-e
(e*%*%ne)K# Ba)d ! D%)e&*)# de&),%n" ()%5a*e )e#(nden*# %n%2%&al a&* and de!%an&e, * 1%* $/' Re#l+*%n
N0 3//, #0 ! />>7 n Se(*e2=e) >, />>7, d%#2%##%n" all APELCO e2(l,ee# 1- 1e)e n %lle"al #*)%@e and
1- )e!+#ed * )e*+)n * 1)@ e!!e&*%5e Jan+a), 9/, />>7 de#(%*e *-e d%)e&*%5e ! *-e NEA ()De&* #+(e)5%#)
and (e*%*%ne)K# a&*%n" "ene)al 2ana"e)6
E/>F
$7' Re#l+*%n N0 3??, #0 ! />>9 da*ed Ma)&- /B, />>9 a&&e(*%n"
=a&@ ()%5a*e )e#(nden*# 1- #*a"ed %lle"al #*)%@e, de!%ed le"al )de)# and %##+an&e#, +* ! &2(a##%n,
)e&n&%l%a*%n, C-)%#*%an 5al+e# and -+2an%*a)%an )ea#n #+=De&* * *-e &nd%*%n ! Hn 1)@, n (a,H
E7BF
$9'
Re#l+*%n N0 3>4, #0 ! />>9 da*ed J+ne 3, />>9, )eDe&*%n" *-e de2and# ! ()%5a*e )e#(nden*# !) =a&@1a"e#
!)2 J+ne /4, />>7 * Ma)&- />>9 ad(*%n" *-e (l%&, ! Hn 1)@, n (a,H a# #+&- de2and -a# n =a#%#, and
d%)e&*%n" *-e COOP Le"al C+n#el * !%le &)%2%nal &a#e# a"a%n#* e2(l,ee# 1- 2%#a(()()%a*ed &lle&*%n#
and !!%&e)# 1- a+*-)%Ied d%#=+)#e2en*# ! !+nd# 1%*-+* le"al a+*-)%*, !)2 *-e NEA and *-e APELCO
Ba)d0
E7/F
I! %ndeed *-e)e 1a# a 5al%d =a)d )e#l+*%n *)an#!e))%n" =a&@ (e*%*%ne)K# !!%&e * LeI !)2 %*#
*e2()a), !!%&e %n Pal%=, *-e)e 1a# n need !) *-e Ba)d * (a## *-e a=5eA&%*ed )e#l+*%n#0
We a)e al# +na=le * a")ee 1%*- (+=l%& )e#(nden* NLRC 1-en %* -eld *-a* *-e a##+)an&e 2ade =, A**,0
Ma*%n" * *-e le**e)A)eC+e#* ! !!%&e 2ana"e) Le,#n !) *-e (a,2en* ! ()%5a*e )e#(nden*#K 1a"e# !)2
J+ne />>7 * Ma)&- />>9 1a# an ad2%##%n n *-e (a)* ! "ene)al 2ana"e) Ma*%n" *-a* ()%5a*e )e#(nden*#
a)e %ndeed en*%*led * *-e #a2e0 T-e le**e) )e(l, ! A**,0 Ma*%n" * Le,#n 2e)el, #*a*ed *-a* -e 1%ll
)e&22end *-e )eC+e#* !) (a,2en* ! =a&@1a"e# * *-e Ba)d ! D%)e&*)# !) *-e%) &n#%de)a*%n and
a(()()%a*e a&*%n and n*-%n" el#e, *-+#, *-e +l*%2a*e a(()5al 1%ll &2e !)2 *-e Ba)d ! D%)e&*)#0 We
!%nd 1ellA*a@en *-e a)"+2en* ad5an&ed =, *-e Sl%&%*) Gene)al a# !ll1#.
E77F
T-e alle"a*%n ! ()%5a*e )e#(nden*# *-a* (e*%*%ne) -ad al)ead, a(()5ed (a,2en* ! *-e%) 1a"e# %# 1%*-+*
=a#%#0 Ma*%n"K# !!e) * )e&22end *-e (a,2en* ! ()%5a*e )e#(nden*#8 1a"e# %# -a)dl, a(()5al ! *-e%)
&la%2 !) 1a"e#0 I* %# D+#* an +nde)*a@%n" * )e&22end (a,2en*0 M)e5e), *-e !!e) %# &nd%*%nal0 I* %#
#+=De&* * *-e &nd%*%n *-a* (e*%*%ne)K# Ba)d ! D%)e&*)# 1%ll "%5e %*# a(()5al and *-a* !+nd# 1e)e
a5a%la=le0 Ma*%n"K# )e(l, * Le,#nK# le**e) !) (a,2en* ! 1a"e# d%d n* &n#*%*+*e a(()5al ) a##+)an&e !
(a,2en*0 T-e !a&* %# *-a*, *-e Ba)d ! D%)e&*)# ! (e*%*%ne) )eDe&*ed ()%5a*e )e#(nden*# de2and !) (a,2en*
$Ba)d Re#l+*%n N0 3>4, #0 />>9'0
We a)e a&&)d%n"l, &n#*)a%ned * 5e)*+)n (+=l%& )e#(nden*K# !%nd%n"# *-a* (e*%*%ne) %# n* D+#*%!%ed %n %*#
)e!+#al * (a, ()%5a*e )e#(nden*#K 1a"e# and *-e) !)%n"e =ene!%*# !)2 J+ne /4, />>7 * Ma)&- /:, />>96
(+=l%& )e#(nden*# #*a*ed *-a* ()%5a*e )e#(nden*# 1e)e (a%d *-e%) #ala)%e# !)2 Jan+a), * Ma, />>7 and a"a%n
!)2 Ma)&- />, />>9 +( * *-e ()e#en*0 A# &%*ed ea)l%e), (e*%*%ne)K# Ba)d %n a Re#l+*%n N0 3// da*ed
Se(*e2=e) >, />>7 d%#2%##ed ()%5a*e )e#(nden*# 1- 1e)e n %lle"al #*)%@e and 1- )e!+#ed * )e()* !)
1)@ a* Pal%= !!%&e e!!e&*%5e Jan+a), 9/, />>76 #%n&e n #e)5%&e# 1e)e )ende)ed =, ()%5a*e )e#(nden*# *-e,
1e)e n* (a%d *-e%) #ala)%e#0 P)%5a*e )e#(nden*# ne5e) C+e#*%ned n) &n*)5e)*ed *-e Re#l+*%n d%#2%##%n"
*-e2 and n1-e)e %n *-e%) C22en* %# %* #*a*ed *-a* *-e, C+e#*%ned #+&- d%#2%##al0 P)%5a*e )e#(nden*# al#
-a5e n* )e=+**ed (e*%*%ne)K# &la%2 *-a* ()%5a*e )e#(nden*# %lle"all, &lle&*ed !ee# and &-a)"e# d+e (e*%*%ne)
and a(()()%a*ed *-e &lle&*%n# a2n" *-e2#el5e# * #a*%#!, *-e%) #ala)%e# !)2 Jan+a), * Ma, />>7, !)
1-%&- )ea#n, ()%5a*e )e#(nden*# a)e 2e)el, &la%2%n" #ala)%e# nl, !) *-e (e)%d !)2 J+ne /4, />>7 *
Ma)&- />>90
P)%5a*e )e#(nden*# 1e)e d%#2%##ed =, (e*%*%ne) e!!e&*%5e Jan+a), 9/, />>7 and 1e)e a&&e(*ed =a&@ =,
(e*%*%ne), a# an a&* ! &2(a##%n, #+=De&* * *-e &nd%*%n ! Hn 1)@, n (a,H e!!e&*%5e Ma)&- />>9 1-%&-
e<(la%n# 1-, ()%5a*e )e#(nden*# 1e)e all1ed * d)a1 *-e%) #ala)%e# a"a%n0 N*a=l,, *-e le**e)A)eC+e#* ! M)0
Le,#n !) *-e (a,2en* ! =a&@1a"e# and *-e) !)%n"e =ene!%*# %n =e-al! ! ()%5a*e )e#(nden*# 1a# 2ade nl,
%n A()%l />>9, a!*e) a Ba)d Re#l+*%n a&&e(*%n" *-e2 =a&@ * 1)@ +* ! &2(a##%n and -+2an%*a)%an
)ea#n0 I* *@ ()%5a*e )e#(nden*# a=+* *en 2n*-# =e!)e *-e, )eC+e#*ed !) *-e (a,2en* ! *-e%) =a&@1a"e#,
and *-e ln" %na&*%n ! ()%5a*e )e#(nden*# * !%le *-e%) &la%2 !) +n(a%d 1a"e# &a#* d+=*# a# * *-e 5e)a&%*,
! *-e%) &la%20
T-e a"eAld )+le "5e)n%n" *-e )ela*%n =e*1een la=) and &a(%*al, ) 2ana"e2en* and e2(l,ee ! a H!a%)
da,K# 1a"e !) a !a%) da,K# la=)H )e2a%n# a# *-e =a#%& !a&*) %n de*e)2%n%n" e2(l,ee#K 1a"e#0 I! *-e)e %# n
1)@ (e)!)2ed =, *-e e2(l,ee *-e)e &an =e n 1a"e ) (a, +nle##, ! &+)#e, *-e la=)e) 1a# a=le, 1%ll%n"
and )ead, * 1)@ =+* 1a# %lle"all, l&@ed +*, #+#(ended ) d%#2%##ed,
E79F
) *-e)1%#e %lle"all, ()e5en*ed !)2
1)@%n",
E73F
a #%*+a*%n 1-%&- 1e !%nd %# n* ()e#en* %n *-e %n#*an* &a#e0 I* 1+ld ne%*-e) =e !a%) n) D+#* * all1
()%5a*e )e#(nden*# * )e&5e) #2e*-%n" *-e, -a5e n* ea)ned and &+ld n* -a5e ea)ned =e&a+#e *-e, d%d n*
)ende) #e)5%&e# a* *-e Pal%= !!%&e d+)%n" *-e #*a*ed (e)%d0
F%nall,, 1e -ld *-a* (+=l%& )e#(nden* e))ed %n 2e)el, )el,%n" n *-e &2(+*a*%n# ! &2(en#a=le #e)5%&e#
#+=2%**ed =, ()%5a*e )e#(nden*#0 T-e)e 2+#* =e &2(e*en* ()! #+&- a# *%2e &a)d# ) !!%&e )e&)d# * #-1
*-a* *-e, a&*+all, )ende)ed &2(en#a=le #e)5%&e d+)%n" *-e #*a*ed (e)%d * en*%*le *-e2 * 1a"e#0 I* -a# =een
e#*a=l%#-ed *-a* *-e (e*%*%ne)K# =+#%ne## !!%&e 1a# *)an#!e))ed * Pal%= and all %*# eC+%(2en*#, )e&)d# and
!a&%l%*%e# 1e)e *)an#!e))ed *-e)ea* and *-a* %* &nd+&*ed %*# !!%&%al =+#%ne## %n Pal%= d+)%n" *-e (e)%d %n
C+e#*%n0 I* 1a# %n&+2=en* +(n ()%5a*e )e#(nden*# * ()5e *-a* *-e, %ndeed )ende)ed #e)5%&e# !) (e*%*%ne),
1-%&- *-e, !a%led * d0 I* %# a =a#%& )+le %n e5%den&e *-a* ea&- (a)*, 2+#* ()5e -%# a!!%)2a*%5e alle"a*%n0
S%n&e *-e =+)den ! e5%den&e l%e# 1%*- *-e (a)*, 1- a##e)*# *-e a!!%)2a*%5e alle"a*%n, *-e (la%n*%!! )
&2(la%nan* -a# * ()5e -%# a!!%)2a*%5e alle"a*%n# %n *-e &2(la%n* and *-e de!endan* ) *-e )e#(nden* -a#
* ()5e *-e a!!%)2a*%5e alle"a*%n %n -%# a!!%)2a*%5e de!en#e# and &+n*e)&la%20
E7;F
WHERE'ORE, %n 5%e1 ! *-e !)e"%n", *-e (e*%*%n !) /&T)8&(&) %# GRANTED0 Cn#eC+en*l, *-e
de&%#%n ! (+=l%& )e#(nden* NLRC da*ed A()%l 7B, />>; and *-e Re#l+*%n da*ed J+l, 7:, />>; %n NLRC
Ca#e N0 VAB/39A>3 a)e -e)e=, REVERSED and SET ASIDE !) -a5%n" =een )ende)ed 1%*- ")a5e a=+#e !
d%#&)e*%n a2+n*%n" * la&@ ) e<&e## ! D+)%#d%&*%n0 P)%5a*e )e#(nden*# &2(la%n* !) (a,2en* ! +n(a%d
1a"e# =e!)e *-e La=) A)=%*e) %# DISMISSED0
SO ORDERED.
FIRST DIVISION
[G.R. No. 116781. S5p65785r 5, 1997]
TOMAS LAO CONSTR#CTION, L/M CONSTR#CTION CORORATION, T"OMAS *+3 )AMES
$E/ELOERS <"IL.>, INC., petitioners, vs. NATIONAL LABOR RELATIONS
COMMISSION, MARIO O. LABEN$IA, SR., ROBERTO LABEN$IA, NARCISO A$AN,
(LORENCIO GOMEZ, ERNESTO BAGATSOLON, SAL/A$OR BABON, ATERNO
BISNAR, CIRIANO BERNALES, ANGEL MAB#LA0, SR., LEO S#RIGAO, *+3 RO1#E
MORILLO, respondents.
$ E C I S I O N
BELLOSILLO, J.&
From October to December $%%= pri'ate respondents indi'iduall( filed complaints for illegal
dismissal against petitioners )ith the National Labor Relations Commission Regional rbitration
1ranch No* VIII 7NLRC / R1 VIII8# Tacloban Cit(* lleging that the( )ere hired for 'arious periods
as construction )orkers in different capacities the( described their contractual terms as
follo)s5 7a8

Roberto Labendia# general construction foreman# from $%@$ to $@ October $%%=
at ,9#@==GmonthF 7b8 Narciso dan# tireman# from October $%"$ to No'ember $%%= at ,@;*==Gda(F
7c8 Florencio Dome.# )elder# from Bul( $%"9 to Bul( $%%= at ,?=*==Gda(F 7d8 6rnesto 1agatsolon
leadmanGchecker# from Bune $%"! to October $%%= at ,!#"==GmonthF 7e8 Sal'ador 1abon#
clerkGtimekeeperGpa(master# from Bune $%"! to October $%%= at ,9#!==GmonthF 7f8 ,aterno 1isnar#
road grader operator# from Banuar( $%@% to October $%%= at ,$=;Gda(F 7g8 Cipriano 1ernales#
instrument man# from Februar( $%"= to No'ember $%%= at ,9#!==GmonthF 7h8 ngel -abula(# Sr*#
dump truck dri'er# from ugust $%@& to October $%%= at ,%=Gda(F 7I8 Leo Surigao# pa(loader
operator# from -arch $%@; to Banuar( $%@" at ,$==Gda(F 7B8 -ario Labendia# Sr* sur'e(orGforeman#
from ugust $%@$ to Bul( $%%= at ,!#%==GmonthF and# 7k8 Ro:ue -orillo# compan( )atchman# from
ugust $%"9 to October $%%= at ,9#!==Gmonth*
3$4
+ithin the periods of their respecti'e emplo(ments# the( alternatel( )orked for petitioners
Tomas Lao Corporation 7TLC8# Thomas and Bames De'elopers 7TOB8 and LV- Construction
Corporation 7LV-8# altogether informall( referred to as the JLao Droup of Companies#K the three 798
entities comprising a business conglomerate eEclusi'el( controlled and managed b( members of the
Lao famil(*
TLC# TOB and LV- are engaged in the construction of public roads and bridges* Cnder <oint
'enture agreements the( entered into among each other# the( )ould undertake their pro<ects either
simultaneousl( or successi'el( so that# )hene'er necessar(# the( )ould lease tools and e:uipment
to one another* 6ach one )ould also allo) the utili.ation of their emplo(ees b( the other
t)o 7!8* +ith this arrangement# )orkers )ere transferred )hene'er necessar( to on/going pro<ects
of the same compan( or of the others# or )ere rehired after the completion of the pro<ect or pro<ect
phase to )hich the( )ere assigned* Soon after# ho)e'er# TLC ceased its operations
3!4

)hile TOB and
LV- sta(ed on*
Sometime in $%"% ndres Lao# -anaging Director of LV- and ,resident of TOB#
394
issued a
memorandum
3&4
re:uiring all )orkers and compan( personnel to sign emplo(ment contract forms and
clearances )hich )ere issued on $ Bul( $%"% but antedated $= Banuar( $%"%* These )ere to be
used allegedl( for audit purposes pursuant to a <oint 'enture agreement bet)een LV- and TOB* To
ensure compliance )ith the directi'e# the compan( ordered the )ithholding of the salar( of an(
emplo(ee )ho refused to sign* Auite notabl(# the contracts eEpressl( described the construction
)orkers as #ro/ect em#lo0ees )hose emplo(ments )ere for a definite period# i*e*# upon the
eEpiration of the contract period or the completion of the pro<ect for )hich the )orkers )as hired*
6Ecept for Florencio Dome.
3;4
all pri'ate respondents refused to sign contending that this
scheme )as designed b( their emplo(er to do)ngrade their status from regular emplo(ees to mere
pro<ect emplo(ees* Resultantl(# their salaries )ere )ithheld* The( )ere also re:uired to eEplain
)h( their ser'ices should not be terminated for 'iolating compan( rules and )arned that failure to
satisfactoril( eEplain )ould be construed as JdisinterestK in continued emplo(ment )ith the
compan(* Since the )orkers stood firm in their refusal to compl( )ith the directi'es their ser'ices
)ere terminated*
NLRC R1 VIII dismissed the complaints lodged before it# finding that pri'ate respondents )ere
pro<ect emplo(ees )hose emplo(ments could be terminated upon completion of the pro<ects or
pro<ect phase for )hich the( )ere hired* It upheld petitionersI contention that the eEecution of their
emplo(ment contracts )as to forestall the e'entualit( of being compelled to pa( the )orkers their
salaries e'en if there )as no more )ork to be done due to the completion of the pro<ects or pro<ect
phases* The labor court ho)e'er granted each emplo(ee a separation pa( of ,?#&9;*== computed
at one/half 7$G!8 month salar( for e'er( (ear of ser'ice# uniforml( rounded at fi'e 7;8 (ears*
3?4
The decision of Labor rbiter Dabino * Velas:ue.# Br*# )as re'ersed on appeal b( the Fourth
Di'ision of the National Labor Relations Commission 7NLRC8 of Cebu Cit( )hich found that pri'ate
respondents )ere regular emplo(ees )ho )ere dismissed )ithout <ust cause and denied due
process* The NLRC also o'erruled the fiEing b( the Labor rbiter of the term of emplo(ment of
complainants uniforml( at fi'e 7;8 (ears since the periods of emplo(ment of the construction )orkers
as alleged in their complaints )ere ne'er refuted b( petitioners* In granting monetar( a)ards to
complainants# NLRC disregarded the 'eil of corporate fiction and treated the three 798 corporations
as forming onl( one entit( on the basis of the admission of petitioners that Jthe three 798 operated as
one 7$8# intermingling and commingling all its resources# including manpo)er facilit(*K
3@4
,etitioners no) la( their cause before us and assign the follo)ing errors5 7a8 NLRC erred in
classif(ing the emplo(ees as regular instead of pro<ect emplo(eesF 7b8 assuming that the )orkers
)ere regular emplo(ees# NLRC failed to consider that the( )ere terminated for causeF 7c8 assuming
further that the emplo(ees )ere illegall( dismissed# NLRC erred in a)arding back )ages in eEcess
of three 798 (earsF and# 7d8 assuming finall( that the decision is correct# NLRC erred )hen it pierced
the 'eil of corporate personalit( of petitioner/corporations*
The main thrust of petitionersI eEpostulation is that respondents ha'e no 'alid cause to
complain about their emplo(ment contracts since these documents merel( formali.ed their status as
pro<ect emplo(ees* The( cite ,olic( Instruction No* != of the Department of Labor )hich defines
pro<ect emplo(ees as those emplo(ed in connection )ith a particular construction pro<ect# adding
that the ruling in Sandoval Si#0ards, Inc. v. NLRC
3"4
applies s:uarel( to the instant case because
there the Court declared that the emplo(ment of pro<ect emplo(ees is co/terminous )ith the
completion of the pro<ect regardless of the number of pro<ects in )hich the( ha'e )orked* nd as
their emplo(ment is one for a definite period# the( are not entitled to separation pa( nor is their
emplo(er re:uired to obtain clearance from the Secretar( of Labor in connection )ith their
termination* ,etitioners thus argue that their dismissal from the ser'ice of pri'ate respondents )as
legal since the pro<ects for )hich the( )ere hired had alread( been completed* s additional
ground# the( claim that -ario Labendia and Roberto Labendia had absented themsel'es )ithout
lea'e gi'ing management no choice but to se'er their emplo(ment*
+e are not con'inced* The principal test in determining )hether particular emplo(ees are
Jpro<ect emplo(eesK distinguished from Jregular emplo(eesK is )hether the Jpro<ect emplo(eesK are
assigned to carr( out Jspecific pro<ect or undertaking#K the duration 7and scope8 of )hich are
specified at the time the emplo(ees are engaged for the pro<ect* J,ro<ectK in the realm of business
and industr( refers to a particular <ob or undertaking that is )ithin the regular or usual business of
emplo(er# but )hich is distinct and separate and identifiable as such from the undertakings of the
compan(* Such <ob or undertaking begins and ends at determined or determinable times*
3%4
+hile it ma( be allo)ed that in the instant case the )orkers )ere initiall( hired for specific
pro<ects or undertakings of the compan( and hence can be classified as pro<ect emplo(ees# the
repeated re/hiring and the continuing need for their ser'ices o'er a long span of time 7the shortest#
at se'en 3@4 (ears8 ha'e undeniabl( made them regular emplo(ees* Thus# )e held that )here the
emplo(ment of pro<ect emplo(ees is eEtended long after the supposed pro<ect has been finished# the
emplo(ees are remo'ed from the scope of pro<ect emplo(ees and considered regular emplo(ees*
3$=4
+hile length of time ma( not be a controlling test for pro<ect emplo(ment# it can be a strong
factor in determining )hether the emplo(ee )as hired for a specific undertaking or in fact tasked to
perform functions )hich are 'ital# necessar( and indispensable to the usual business or trade of the
emplo(er* In the case at bar# pri'ate respondents had alread( gone through the status of pro<ect
emplo(ees* 1ut their emplo(ments became non/coterminous )ith specific pro<ects )hen the(
started to be continuousl( re/hired due to the demands of petitionersI business and )ere re/engaged
for man( more pro<ects )ithout interruption* +e note petitionersI o)n admission /
E*F-e#e &n#*)+&*%n ()De&*# -a5e =een ()#e&+*ed =, e%*-e) ! *-e *-)ee (e*%*%ne)#, e%*-e) %nd%5%d+all, ) %n a
D%n* 5en*+)e 1%*- ne an*-e)0 L%@e1%#e, *-e#e &n#*)+&*%n ()De&*# -a5e =een ()#e&+*ed =, e%*-e) ! *-e
*-)ee (e*%*%ne)#, e%*-e) #%2+l*ane+#l,, ne &n#*)+&*%n ()De&* 5e)la((%n" an*-e) andL) ne ()De&*
&22en&%n" %22ed%a*el, a!*e) an*-e) ()De&* -a# =een &2(le*ed ) *e)2%na*ed0 Pe)-a(# =e&a+#e ! *-e%)
&a(a&%*, * ()#e&+*e "5e)n2en* ()De&*# and *-e%) "d )e&)d and (e)!)2an&e, a* lea#* ne ! *-e *-)ee
(e*%*%ne)# -ad an nA"%n" &n#*)+&*%n ()De&* andL) ne ! *-e *-)ee (e*%*%ne)#K &n#*)+&*%n ()De&*
5e)la((ed *-a* ! an*-e)0
E//F
The denial b( petitioners of the eEistence of a )ork pool in the compan( because their pro<ects
)ere not continuous is ampl( belied b( petitioners themsel'es )ho admit that /
All *-e e2(l,ee# ! e%*-e) ! *-e *-)ee (e*%*%ne)# 1e)e a&*+all, a##%"ned * a (a)*%&+la) ()De&* * )e2a%n %n
#a%d ()De&* +n*%l *-e &2(le*%n ) *e)2%na*%n ! *-a* ()De&*0 H1e5e), a!*e) *-e &2(le*%n ! *-a*
(a)*%&+la) ()De&* ) 1-en *-e%) #e)5%&e# a)e n ln"e) needed %n *-e ()De&* ) (a)*%&+la) (-a#e ! *-e ()De&*
1-e)e *-e, 1e)e a##%"ned, *-e, 1e)e *)an#!e))ed and )e-%)ed %n an*-e) nA"%n" ()De&*0
E/7F
)ork pool ma( eEist although the )orkers in the pool do not recei'e salaries and are free to
seek other emplo(ment during temporar( breaks in the business# pro'ided that the )orker shall be
a'ailable )hen called to report for a pro<ect* lthough primaril( applicable to regular seasonal
)orkers# this set/up can like)ise be applied to pro<ect )orkers insofar as the effect of temporar(
cessation of )ork is concerned* This is beneficial to both the emplo(er and emplo(ee for it pre'ents
the un<ust situation of Jcoddling labor at the eEpense of capitalK and at the same time enables the
)orkers to attain the status of regular emplo(ees* Clearl(# the continuous rehiring of the same set of
emplo(ees )ithin the frame)ork of the Lao Droup of Companies is strongl( indicati'e that pri'ate
respondents )ere an integral part of a )ork pool from )hich petitioners dre) its )orkers for its
'arious pro<ects*
In a final attempt to con'ince the Court that pri'ate respondents )ere indeed pro<ect
emplo(ees# petitioners point out that the )orkers )ere not regularl( maintained in the pa(roll and
)ere free to offer their ser'ices to other companies )hen there )ere no on/going pro<ects* This
argument ho)e'er cannot defeat the )orkersI status of regularit(* +e appl( b( analog( the case
of Industrial1Commercial1(gricultural 2or3ers 4rgani+ation v. CIR
3$94
)hich deals )ith regular
seasonal emplo(ees* There )e held /
T-a* d+)%n" *-e *e2()a), la,!! *-e la=)e)# a)e !)ee * #ee@ *-e) e2(l,2en* %# na*+)al, #%n&e *-e la=)e)#
a)e n* =e%n" (a%d, ,e* 2+#* !%nd 2ean# ! #+(()*0 A (e)%d d+)%n" 1-%&- *-e Cen*)al %# !)&ed * #+#(end )
&ea#e (e)a*%n !) a *%2e <<< should not mean starvation for employees and their families $e2(-a#%#
#+((l%ed'0
Trul(# the cessation of construction acti'ities at the end of e'er( pro<ect is a foreseeable
suspension of )ork* Of course# no compensation can be demanded from the emplo(er because the
stoppage of operations at the end of a pro<ect and before the start of a ne) one is regular and
eEpected b( both parties to the labor relations* Similar to the case of regular seasonal emplo(ees#
the emplo(ment relation is not se'ered b( merel( being suspended*
3$&4
The emplo(ees are# strictl(
speaking# not separated from ser'ices but merel( on lea'e of absence )ithout pa( until the( are
reemplo(ed*
3$;4
Thus )e cannot affirm the argument that non/pa(ment of salar( or non/inclusion in
the pa(roll and the opportunit( to seek other emplo(ment denote pro<ect emplo(ment*
Contrar( to petitionersI assertion# our ruling in Sandoval Si#0ards is inapplicable considering
the special circumstances attendant to the present case* In Sandoval# the hiring of construction
)orkers# unlike in the instant case# )as intermittent and not continuous for the Jship(ard merel(
accepts contracts for shipbuilding or for repair of 'essels from third parties and# onl( on occasions
)hen it has )ork contract of this nature that it hires )orkers to do the <ob )hich# needless to sa(#
lasts onl( for less than a (ear or longer*K
3$?4
-oreo'er# if pri'ate respondents )ere indeed emplo(ed as Jpro<ect emplo(ees#K petitioners
should ha'e submitted a report of termination to the nearest public emplo(ment office e'er( time
their emplo(ment )as terminated due to completion of each construction pro<ect*
3$@4
The records
sho) that the( did not* ,olic( Instruction No* != is eEplicit that emplo(ers of pro<ect emplo(ees are
eEempted from the clearance re:uirement but not from the submission of termination report* +e
ha'e consistentl( held that failure of the emplo(er to file termination reports after e'er( pro<ect
completion pro'es that the emplo(ees are not pro<ect emplo(ees*
3$"4
No)here in the Ne) Labor Code
is it pro'ided that the reportorial re:uirement is dispensed )ith* The fact is that Department Order
No* $% superseding ,olic( Instruction No* != eEpressl( pro'ides that the report of termination is one
of the indicators of pro<ect emplo(ment*
3$%4
+e agree )ith the NLRC that the eEecution of the pro<ect emplo(ment contracts )as
Jfarcical*K
3!=4
Ob'iousl(# the contracts )ere a scheme of petitioners to pre'ent respondents from being
considered as regular emplo(ees* It imposed time frames into an other)ise fleEible emplo(ment
period of pri'ate respondents some of )hom )ere emplo(ed as far back as $%?%* Clearl(# here )as
an attempt to circum'ent labor la)s on tenurial securit(* Settled is the rule that )hen periods ha'e
been imposed to preclude the ac:uisition of tenurial securit( b( the emplo(ee# the( should be struck
do)n as contrar( to public morals# good customs or public order*
3!$4
+orth noting is that petitioners
had engaged in 'arious <oint 'enture agreements in the past )ithout ha'ing to draft pro<ect
emplo(ment contracts* That the( )ould re:uire eEecution of emplo(ment contracts and )ai'ers at
this point# ostensibl( to be used for audit purposes# is a suspect eEcuse# considering that petitioners
enforced the directi'e b( )ithholding the salar( of an( emplo(ee )ho spurned the order*
+e like)ise re<ect petitionersI <ustification in re/hiring pri'ate respondents i.e*# that it is much
cheaper and economical to re/hire or re/emplo( the same )orkers than to train a ne) set of
emplo(ees* It is precisel( because of this cost/sa'ing benefit to the emplo(er that the la) deems it
fair that the emplo(ees be gi'en a regular status* +e need not belabor this point*
The NLRC )as correct in finding that the )orkers )ere illegall( dismissed* The rule is that in
effecting a 'alid dismissal# the mandator( re:uirements of substanti'e and procedural due process
must be strictl( complied )ith* These )ere )anting in the present case* ,ri'ate respondents )ere
dismissed allegedl( because of insubordination or blatant refusal to compl( )ith a la)ful directi'e of
their emplo(er* 1ut )illful disobedience of the emplo(erIs la)ful orders as a <ust cause for the
dismissal of the emplo(ees en'isages the concurrence of at least t)o 7!8 re:uisites5 7a8 the
emplo(eeIs assailed conduct must ha'e been )illful or intentional# the )illfulness being
characteri.ed b( a )rongful and per'erse attitudeF and# 7b8 the order 'iolated must ha'e been
reasonable# la)ful# made kno)n to the emplo(ee and must pertain to the duties )hich he has been
engaged to discharge*
3!!4
The refusal of pri'ate respondents )as )illful but not in the sense of plain
and per'erse insubordination* It )as dictated b( necessit( and <ustifiable reasons / for )hat
appeared to be an innocent memorandum )as actuall( a 'eiled attempt to den( them their rightful
status as regular emplo(ees* The )orkers therefore had no option but to disobe( the directi'e )hich
the( deemed unreasonable and unla)ful because it )ould result in their being do)nsi.ed to mere
pro<ect )orkers* This act of self/preser'ation should not merit them the eEtreme penalt( of
dismissal*
The allegation of petitioners that pri'ate respondents are guilt( of abandonment of dut( is
)ithout merit* The elements of abandonment are5 7a8 failure to report for )ork or absence )ithout
'alid or <ustifiable reason# and# 7b8 a clear intention to se'er the emplo(er/emplo(ee relationship#
)ith the second element as the more determinati'e factor manifested b( some o'ert acts*
3!94
In this
case# pri'ate respondents Roberto Labendia and -ario Labendia )ere forced to lea'e their
respecti'e duties because their salaries )ere )ithheld* The( could not simpl( sit idl( and allo) their
families to star'e* The( had to seek emplo(ment else)here# albeit temporaril(# in order to
sur'i'e* On the other hand# it )ould be the height of in<ustice to 'alidate abandonment in this
particular case as a ground for dismissal of respondents thereb( making petitioners benefit from a
gross and un<ust situation )hich the( themsel'es created*
3!&4
,ri'ate respondents did not intend to
se'er ties )ith petitioner and permanentl( abandon their <obsF other)ise# the( )ould not ha'e filed
this complaint for illegal dismissal*
3!;4
,etitioners submit that since pri'ate respondents )ere onl( pro<ect emplo(ees# the( are not
entitled to securit( of tenure* This is incorrect* In (rc)uild Masters andConstruction# Inc. v.
NLRC
3!?4
)e held /
< < < a ()De&* e2(l,ee -%)ed !) a #(e&%!%& *a#@ al# enD,# #e&+)%*, ! *en+)e0 A *e)2%na*%n ! -%#
e2(l,2en* 2+#* =e !) a la1!+l &a+#e and 2+#* =e dne %n a 2anne) 1-%&- a!!)d# -%2 *-e ()(e) n*%&e and
-ea)%n" < < < < To allow employers to e3ercise their prerogative to terminate a pro>ect worker9s employment
%ased on gratuitous assertions of pro>ect completion would destroy the constitutionally protected right of
la%or to security of tenure $e2(-a#%# #+((l%ed'0
The burden of pro'ing that an emplo(ee has been la)full( dismissed therefore lies )ith the
emplo(er* In the case at bar# the assertions of petitioners )ere self/ser'ing and insufficient to
substantiate their claim of proEimate pro<ect completion* The ser'ices of the emplo(ees )ere
terminated not because of contract eEpiration but as sanction for their refusal to sign the pro<ect
emplo(ment forms and :uitclaims*
Finding that the dismissal )as )ithout <ust cause# )e find it unnecessar( to d)ell on the non/
obser'ance of procedural due process* Suffice it to state that pri'ate respondents )ere not priorl(
notified of their impending dismissal and that the( )ere not pro'ided ample opportunit( to defend
themsel'es*
,etitioners charge as erroneous the grant to pri'ate respondents b( NLRC of back )ages in
eEcess of three 798 (ears or# in the alternati'e# to an a)ard of separation pa( if reinstatement is no
longer feasible*
+e disagree* Since the illegal dismissal )as made in $%%= or after the effecti'it( of the
amendator( pro'ision of R No* ?@$; on !$ -arch $%"%# pri'ate respondentsI back )ages should
be computed on the basis of rt* !@% of the Labor Code )hich states that 5(a!n em#lo0ee 6o is
un/ustl0 dismissed 7rom 6or3 sall )e entitled to reinstatement 6itout loss o7 seniorit0 rigts and
oter #rivileges and to is 7ull )ac3 6ages, inclusive o7 allo6ances, and to is oter )ene7its or teir
monetar0 e*uivalent com#uted 7rom te time is com#ensation 6as 6iteld 7rom im u# to te time
o7 is actual reinstatement.8
Conformabl( )ith our ruling in Bustamante v. NLRC
3!@4
the illegall( dismissed emplo(ees are
entitled to full back )ages# undiminished b( earnings deri'ed else)here during the period of their
illegal dismissal* In the e'ent that reinstatement is no longer feasible# back )ages shall be
computed from the time of illegal termination until the time of the finalit( of the decision*
3!"4
The a)ard
shall be based on the documents submitted b( pri'ate respondents# i*e* affida'its# SSS and
-edicare documents# since petitioners failed to adduce competent e'idence to the contrar(* The
separation pa( shall be e:ui'alent to >at least one 7$8 month salar( or to one 7$8 month salar( for
e'er( (ear of ser'ice# )hiche'er is higher# a fraction of at least siE 7?8 months being considered as
one )hole (ear*>
3!%4
Finall(# public respondent NLRC did not err in disregarding the 'eil of separate corporate
personalit( and holding petitioners <ointl( and se'erall( liable for pri'ate respondentsI back )ages
and separation pa(* The records disclose that the three 798 corporations )ere in fact substantiall(
o)ned and controlled b( members of the Lao famil( composed of Lao 0ian 1eng alias Tomas Lao#
Chiu Siok Lian 7)ife of Tomas Lao8# ndre) C* Lao# Lao P* 0eng# Vicente Lao Chua# Lao 6* Tin#
6mmanuel Lao and Ismaelita -aluto* ma<orit( of the outstanding shares of stock in LV- and TOB
is o)ned b( the Lao famil(* TOB is $==N o)ned b( the Laos as reflected in its rticles of
Incorporation* The Lao Droup of Companies therefore is a closed corporation )here the
incorporators and directors belong to a single famil(* Lao 0ian 1eng is the same Tomas Lao )ho
o)ns Tomas Lao Corporation and is the ma<orit( stockholder of TOB* ndre) C* Lao is the
-anaging Director of LV- Construction# and ,resident and -anaging Director of the Lao Droup of
Companies* ,etitioners are engaged in the same line of business under one management and use
the same e:uipment including manpo)er ser'ices* +here it appears that 3three4 business
enterprises are o)ned# conducted and controlled b( the same parties# both la) and e:uit( )ill# )hen
necessar( to protect the rights of third persons# disregard the legal fiction that the 3three4
corporations are distinct entities# and treat them as identical*
39=4
Consonant )ith our earlier ruling#
39$4
)e hold that the liabilit( of petitioners eEtends to the
responsible officers acting in the interest of the corporations* In 'ie) of the peculiar circumstances
of this case# )e disregard the separate personalities of the three 798 corporations and at the same
time declare the members of the corporations <ointl( and se'erall( liable )ith the corporations for the
monetar( a)ards due to pri'ate respondents* It should al)a(s be borne in mind that the fiction of
la) that a corporation as a <uridical entit( has a distinct and separate personalit( )as en'isaged for
con'enience and to ser'e <usticeF therefore it should not be used as a subterfuge to commit in<ustice
and circum'ent labor la)s*
'"ERE(ORE# the petition is D6NI6D and the decision of the National Labor Relations
Commission dated =; ugust $%%& is FFIR-6D* ,etitioners are ordered to reinstate pri'ate
respondents to their former positions )ithout loss of seniorit( rights and other pri'ileges )ith full
back )ages# inclusi'e of allo)ances# computed from the time compensation )as )ithheld up to the
time of actual reinstatement* In the e'ent that reinstatement is no longer feasible# petitioners are
directed to pa( pri'ate respondents separation pa( e:ui'alent to one month salar( for e'er( (ear of
ser'ice# a fraction of at least siE 7?8 months being considered one 7$8 (ear in the computation
thereof# and full back )ages computed from the time compensation )as )ithheld until the finalit( of
this decision* ll other claims of the parties are DIS-ISS6D for lack of merit* Costs against
petitioners*
SO OR$ERE$.
herein4 failed to full( substantiate and argued 7sic8 the same*>
3$%4
On appeal# the NLRC re'ersed the decision of the labor arbiter in a decision
3!=4
promulgated on
September !@# $%%9# the dispositi'e part of )hich reads5
>'"ERE(ORE# the appealed decision is hereb( set aside* The complaint for illegal dismissal is
hereb( dismissed for being )ithout merit* ComplainantIs 3petitioner herein4 claim for ser'ice incenti'e
lea'e pa( is hereb( remanded for further arbitration*
SO OR$ERE$*>
3!$4
The NLRC ruled that >3t4here is no :uestion that the complainant 3petitioner herein4# 'ie)ed in
relation to said rticle !"= of the 3Labor4 Code# is a regular emplo(ee <udging from the function
andGor )ork for )hich she )as hired* EEE EEE* 1ut this does not necessaril( mean that the
complainant 3petitioner herein4 has to be guaranteed a tenurial securit( be(ond the period for )hich
she )as hired*>
3!!4
The NLRC held that QRthe complainant 3petitioner herein4# )hile hired as a regular
)orker# is statutoril( guaranteed# in her tenurial securit(# onl( up to the time the specific pro<ect for
)hich she )as hired is completed*>
3!94
0ence# the NLRC concluded that >3)4ith the specific pro<ect >at
RC1C =$&> admittedl( completed# the complainant 3petitioner herein4 has therefore no 'alid basis in
charging illegal dismissal for her concomittant 7sic8 dislocation*>
3!&4
In an Order dated Banuar( $$# $%%&# the NLRC denied petitionerIs motion for reconsideration*
3!;4
In this petition for certiorari# petitioner# for and in her behalf# argues that 7$8 the public respondent
>committed gra'e abuse of discretion )hen it ignored the findings of Labor rbiter Raul :uino
based on the e'idence presented directl( before him# and )hen it made findings of fact that are
contrar( to or not supported b( e'idence#>
3!?4
7!8 >3p4etitioner )as a >regular emplo(ee#> NOT a >pro<ect
emplo(ee> as found b( public respondent NLRC#>
3!@4
798 >3t4he termination of petition 7sic8 )as tainted
)ith unfair labor practice#>
3!"4
and 7&8 the public respondent >committed gra'e abuse of discretion in
remanding the a)arded ser'ice incenti'e lea'e pa( for further arbitration*>
3!%4
The petition is impressed )ith merit* Sdaadsc
+e agree )ith the findings of the NLRC that petitioner is a pro<ect emplo(ee* The principal test for
determining )hether an emplo(ee is a pro<ect emplo(ee or a regular emplo(ee is )hether the
pro<ect emplo(ee )as assigned to carr( out a specific pro<ect or undertaking# the duration and scope
of )hich )ere specified at the time the emplo(ee )as engaged for that pro<ect*
39=4
pro<ect emplo(ee
is one )hose emplo(ment has been fiEed for a specific pro<ect or undertaking# the completion or
termination of )hich has been determined at the time of the engagement of the emplo(ee or )here
the )ork or ser'ice to be performed is seasonal in nature and the emplo(ment is for the duration of
the season*
39$4
In the instant case# petitioner )as engaged to perform acti'ities )hich )ere usuall(
necessar( or desirable in the usual business or trade of the emplo(er# as admittedl(# petitioner
)orked as a data encoder for pri'ate respondent# a corporation engaged in the business of data
encoding and ke(punching# and her emplo(ment )as fiEed for a specific pro<ect or undertaking the
completion or termination of )hich had been determined at the time of her engagement# as ma( be
obser'ed from the series of emplo(ment contracts
39!4
bet)een petitioner and pri'ate respondent# all of
)hich contained a designation of the specific <ob contract and a specific period of emplo(ment*
0o)e'er# e'en as )e concur )ith the NLRCIs findings that petitioner is a pro<ect emplo(ee# )e ha'e
reached a different conclusion* In the recent case of -araguinot# Br* 's* NLRC,
[44]
)e held that >3a4
pro<ect emplo(ee or a member of a )ork pool ma( ac:uire the status of a regular emplo(ee )hen
the follo)ing concur5 Rtcspped
$8 There is a continuous rehiring of pro<ect emplo(ees e'en after 3the4 cessation of a pro<ectF
39&4
and
!8 The tasks performed b( the alleged >pro<ect emplo(ee> are 'ital# necessar( and indispensable to
the usual business or trade of the emplo(er*
39;4
>
The e'idence on record re'eals that petitioner )as emplo(ed b( pri'ate respondent as a data
encoder# performing acti'ities )hich are usuall( necessar( or desirable in the usual business or
trade of her emplo(er# continuousl( for a period of more than three 798 (ears# from ugust !?# $%""
to October $"# $%%$
39?4
and contracted for a total of thirteen 7$98 successi'e pro<ects* +e ha'e
pre'iousl( ruled that >3h4o)e'er# the length of time during )hich the emplo(ee )as continuousl( re/
hired is not controlling# but merel( ser'es as a badge of regular emplo(ment*>
39@4
1ased on the
foregoing# )e conclude that petitioner has attained the status of a regular emplo(ee of pri'ate
respondent*
t this point# )e reiterate )ith emphasis that5 Horte
>EEE EEE
>t this time# )e )ish to alla( an( fears that this decision undul( burdens an emplo(er b( imposing a
dut( to re/hire a pro<ect emplo(ee e'en after completion of the pro<ect for )hich he )as hired* The
import of this decision is not to impose a positi'e and s)eeping obligation upon the emplo(er to re/
hire pro<ect emplo(ees* ':*6 6:i? 359i?io+ 75r5l- *99o7pli?:5? i? * @,3i9i*l r59oA+i6io+ oB 6:5
57plo-75+6 ?6*6,? oB * pro@596 or CorD pool 57plo-55 i+ *99or3*+95 Ci6: C:*6 i? fait
accompli, i.5., 6:5 9o+6i+,o,? r5=:iri+A 8- 6:5 57plo-5r oB pro@596 or CorD pool 57plo-55?
C:o p5rBor7 6*?D? +595??*r- or 35?ir*8l5 6o 6:5 57plo-5rE? ,?,*l 8,?i+5?? or 6r*35. Let it not
be said that this decision >coddles> labor# for as Lao
39"4
has ruled# pro@596 or CorD pool 57plo-55?
C:o :*F5 A*i+53 6:5 ?6*6,? oB r5A,l*r 57plo-55? *r5 ?,8@596 6o 6:5 G+o CorD=+o p*-G
pri+9ipl5# to repeat5
> )ork pool ma( eEist although the )orkers in the pool do not recei'e salaries and are free to seek
other emplo(ment during temporar( breaks in the business# pro'ided that the )orker shall be
a'ailable )hen called to report for a pro<ect* lthough primaril( applicable to regular seasonal
)orkers# this set/up can like)ise be applied to pro<ect )orkers insofar as the effect of temporar(
cessation of )ork is concerned* This is beneficial to both the emplo(er and emplo(ee for it pre'ents
the un<ust situation of >coddling labor at the eEpense of capital> and at the same time enables the
)orkers to attain the status of regular emplo(ees* Scla)
>The Court2s ruling here is meant precisel( to gi'e life to the constitutional polic( of strengthening the
labor sector# but# )e stress# not at the eEpense of management* Lest it be misunderstood# this ruling
does not mean that simpl( because an emplo(ee is a pro<ect or )ork pool emplo(ee e'en outside
the construction industr(# he is deemed# i#so /ure# a regular emplo(ee* All 6:*6 C5 :ol3 6o3*- i?
6:*6 o+95 * pro@596 or CorD pool 57plo-55 :*? 855+& <1> 9o+6i+,o,?l-, *? oppo?53 6o
i+65r7i665+6l-, r5=:ir53 8- 6:5 ?*75 57plo-5r Bor 6:5 ?*75 6*?D? or +*6,r5 oB 6*?D?H *+3 <.>
6:5?5 6*?D? *r5 Fi6*l, +595??*r- *+3 i+3i?p5+?*8l5 6o 6:5 ,?,*l 8,?i+5?? or 6r*35 oB 6:5
57plo-5r, 6:5+ 6:5 57plo-55 7,?6 85 355753 * r5A,l*r 57plo-55, p,r?,*+6 6o Ar6i9l5 .80 oB
6:5 L*8or Co35 *+3 @,ri?pr,35+95. To r,l5 o6:5rCi?5 Co,l3 *lloC 9ir9,7F5+6io+ oB l*8or
l*C? i+ i+3,?6ri5? +o6 B*lli+A Ci6:i+ 6:5 *78i6 oB oli9- I+?6r,96io+ No. .0!$5p*r675+6 Or35r
No. 19, :5+95 *lloCi+A 6:5 pr5F5+6io+ oB *9I,i?i6io+ oB 65+,ri*l ?59,ri6- 8- pro@596 or CorD
pool 57plo-55? C:o :*F5 *lr5*3- A*i+53 6:5 ?6*6,? oB r5A,l*r 57plo-55? 8- 6:5 57plo-5rE?
9o+3,96.G
[49]
7emphasis supplied8
1eing a regular emplo(ee# petitioner is entitled to securit( of tenure and could onl( be dismissed for
a <ust or authori.ed cause# as pro'ided in rticle !@% of the Labor Code# as amended5 ScleE
>rt* !@%* Securit( of Tenure L In cases of regular emplo(ment# the emplo(er shall not terminate the
ser'ices of an emplo(ee eEcept for a <ust cause or )hen authori.ed b( this Title* n emplo(ee )ho
is un<ustl( dismissed from )ork shall be entitled to reinstatement )ithout loss of seniorit( rights and
other pri'ileges and to his full back)ages# inclusi'e of allo)ances# and to his other benefits or their
monetar( e:ui'alent computed from the time his compensation )as )ithheld from him up to the time
of his actual reinstatement*>
The alleged causes of petitionerIs dismissal 7lo) 'olume of )ork and belatedl(# completion of
pro<ect8 are not 'alid causes for dismissal under rticles !"! and !"9 of the Labor Code* Thus#
petitioner is entitled to reinstatement )ithout loss of seniorit( rights and other pri'ileges# and to her
full back)ages# inclusi'e of allo)ances# and to her other benefits or their monetar( e:ui'alent
computed from the time her compensation )as )ithheld from her up to the time of her actual
reinstatement* 0o)e'er# compl(ing )ith the principles of >suspension of )ork> and >no )ork# no pa(>
bet)een the end of one pro<ect and the start of a ne) one# in computing petitionerIs back)ages# the
amounts corresponding to )hat could ha'e been earned during the periods from the date petitioner
)as dismissed until her reinstatement )hen pri'ate respondent )as not undertaking an( pro<ect#
should be deducted*Sla)
+ith regard to petitionerIs claim for ser'ice incenti'e lea'e pa(# )e agree )ith the labor arbiter that
petitioner is entitled to ser'ice incenti'e lea'e pa(# as pro'ided in rticle %; of the Labor Code#
)hich reads5
>rticle %; M Right to ser'ice incenti'e lea'e M
7a8 6'er( emplo(ee )ho has rendered at least one (ear of ser'ice shall be entitled to a (earl(
ser'ice incenti'e lea'e of fi'e da(s )ith pa(*
EEE EEE EEE*>
0a'ing alread( )orked for more than three 798 (ears at the time of her un)arranted dismissal#
petitioner is undoubtedl( entitled to ser'ice incenti'e lea'e benefits# computed from $%"% until the
date of her actual reinstatement* s )e ruled in the recent case of Fernandez vs. NLRC,
[40]
>3s4ince a
ser'ice incenti'e lea'e is clearl( demandable after one (ear of ser'ice L )hether continuous or
broken L or its e:ui'alent period# and it is one of the >benefits> )hich )ould ha'e accrued if an
emplo(ee )as not other)ise illegall( dismissed# it is fair and legal that its computation should be up
to the date of reinstatement as pro'ided under Section 3rticle4 !@% of the Labor Code# as amended#
)hich reads5 Ssc
>RT* !@%* Securit( of Tenure* L n emplo(ee )ho is un<ustl( dismissed from )ork shall be entitled
to reinstatement )ithout loss of seniorit( rights and other pri'ileges and to his full back)ages#
inclusi'e of allo)ances# and to his o6:5r 85+5Bi6? or 6:5ir 7o+56*r- 5I,iF*l5+6 computed from the
time his compensation is )ithheld from him up to the time of his actual reinstatement*> 7emphasis
supplied8*
'"ERE(ORE# the instant petition is DRNT6D* The assailed decision of the National Labor
Relations Commission in NLRC NCR C No* ==9"&;/%! dated September !@# $%%9# as )ell as its
Order dated Banuar( $$# $%%&# are hereb( NNCLL6D and S6T SID6 for ha'ing been rendered
)ith gra'e abuse of discretion# and the decision of the Labor rbiter in NLRC NCR Case No* =;/
=!%$!/%! is R6INSTT6D )ith -ODIFICTION as abo'e/stated# )ith regard to the computation of
back )ages and ser'ice incenti'e lea'e pa(* Sc
SO OR$ERE$.
Republic of the ,hilippines
S#REME CO#RT
-anila
FIRST DIVISION

G.R. No. 106.56 $595785r .8, 199J
MA0A (ARMS EMLO0EES ORGANIZATION, MA0A REALT0 AN$ LI/ESTOC% S#ER/ISOR0 #NION,
MA0A (ARMS EMLO0EES ASSOCIATION, *+3 MA0A (ARMS, INC. S#ER/ISOR0 #NION, petitioners#
's*
NATIONAL LABOR RELATIONS COMMISSION, MA0A REALT0 K LI/ESTOC%, INC., MA0A (ARMS, INC., *+3
LIBERT0 (LO#R MILLS, INC., respondents*
Paterno '. Men+on La6 477ice 7or #etitioners.
(ngara, ()ello, Conce#cion, Regala - Cru+ 7or #rivate res#ondents.

%A#NAN, J.:
This petition for re'ie) on certiorari seeks to set aside the decision of public respondent National Labor Relations
Commission 7NLRC8 )hich upheld the legalit( of the separation of siEt(/siE 7??8 emplo(ees )ho are members of
petitioner unions# thereb( dismissing petitioners2 complaint against pri'ate respondents for 'iolation of collecti'e
bargaining agreement 7C18 and unfair labor practice*
,ri'ate respondents -a(a Farms# Inc* and -a(a Realt( and Li'estock Corporation belong to the Libert( -ills group
of companies )hose undertakings include the operation of a meat processing plant )hich produces ham# bacon# cold
cuts# sausages and other meat and poultr( products*
,etitioners# on the other hand# are the eEclusi'e bargaining agents of the emplo(ees of -a(a Farms# Inc* and the
-a(a Realt( and Li'estock Corporation*
On pril $!# $%%$# pri'ate respondents announced the adoption of an earl( retirement program as a cost/cutting
measure considering that their business operations suffered ma<or setbacks o'er the (ears* The program )as
'oluntar( and could be a'ailed of onl( b( emplo(ees )ith at least eight 7"8 (ears of ser'ice*
1
Dialogues )ere thereafter
conducted to gi'e the parties an opportunit( to discuss the details of the program* ccordingl(# the program )as amended to reduce the minimum
re:uirement of eight 7"8 (ears of ser'ice to onl( fi'e 7;8 (ears*
0o)e'er# the response to the program )as nil* There )ere onl( a fe) takers* To a'ert further losses# pri'ate
respondents )ere constrained to look into the companies2 organi.ational set/up in order to streamline operations*
Conse:uentl(# the earl( retirement program )as con'erted into a special redundanc( program intended to reduce the
)ork force to an optimum number so as to make operations more 'iable*
In December $%%$# a total of siEt(/nine 7?%8 emplo(ees from the t)o companies a'ailed of the special redundanc(
program*
On Banuar( $@# $%%!# the t)o companies sent letters to siEt(/siE 7??8 emplo(ees informing them that their respecti'e
positions had been declared redundant* The notices like)ise stated that their ser'ices )ould be terminated effecti'e
thirt( 79=8 da(s from receipt thereof* Separation benefits# including the con'ersion of all earned lea'e credits and
other benefits due under eEisting C1s )ere thereafter paid to those affected*
On Banuar( !&# $%%!# a notice of strike )as filed b( the petitioners )hich accused pri'ate respondents# among
others# of unfair labor practice# 'iolation of C1 and discrimination* Conciliation proceedings )ere held b( the
National Conciliation and -ediation 1oard 7NC-18 but the parties failed to arri'e at a settlement*
On Februar( ?# $%%!# the t)o companies filed a petition )ith the Secretar( of Labor and 6mplo(ment asking the latter
to assume <urisdiction o'er the case andGor certif( the same for compulsor( arbitration* Thus# on Februar( $!# $%%!#
the then cting Labor Secretar( 7no) Secretar(8 Nie'es Confesor certified the case to herein public respondent for
compulsor( arbitration*
On -arch &# $%%!# the parties )ere called to a hearing to identif( the issues in'ol'ed in the case* Thereafter# the(
)ere ordered to submit their respecti'e position papers*
In their position paper# petitioners a'erred that in the dismissal of
siEt(/siE 7??8 union officers and members on the ground of redundanc(# pri'ate respondents circum'ented the
pro'isions in their C1# more particularl(# Section !# rticle III thereof* Said pro'ision reads5
Sec* !* LI.4 R9L:* L In all cases of la(/off or retrenchment resulting in termination of emplo(ment in the line of
)ork# the
Last/In/First/Out 7LIFO8 Rule must al)a(s be strictl( obser'ed*
,etitioners also alleged that the companies2 claim that the( )ere in economic crisis )as fabricated because in $%%=#
a net income of o'er "9 million pesos )as reali.ed b( Libert( Flour -ills Droup of Companies*
.
Furthermore# )ith the
termination of the siEt(/siE 7??8 emplo(ees pursuant to the special redundanc( program# the remaining )ork force# especiall( the dri'ers# became
o'er)orked and o'erburdened so much so that the( found themsel'es doing o'ertime )ork and reporting for dut( e'en during rest da(s*
In'oking the )orkers2 constitutional right to securit( of tenure# petitioners pra(ed for the reinstatement of the siEt(/siE
7??8 emplo(ees and the pa(ment of attorne(2s fees as the( )ere constrained to hire the ser'ices of counsel in order
to protect the )orkers2 rights*
On their part# pri'ate respondents contend that their decision to implement a special redundanc( program )as an
eEercise of management prerogati'e )hich could not be interfered )ith unless it is sho)n to be tainted )ith bad faith
and ill moti'e* ,ri'ate respondents eEplained that the( had no choice but to reduce their )ork force# other)ise# the(
)ould suffer more losses* Furthermore# the( denied that the program 'iolated C1 pro'isions*
On Bune !%# $%%!# public respondent rendered a decision#
4
the dispositi'e portion of )hich reads5
+06R6FOR6# in 'ie) of the foregoing# <udgment is hereb( rendered confirming the legalit( of the separation of the
?? emplo(ees of management thereb( dismissing the charges of 'iolation of C1 and unfair labor practice on the
part of management* ccordingl(# -a(a Farms Incorporated and -a(a Realt( and Li'estocks Inc* are hereb(
ordered to compl( )ith its 7sic8 undertaking per the notice of termination dated Banuar( $@# $%%! issued to the
remaining fift( three 7;98 emplo(ees pa(ing them their respecti'e separation benefits as listed in the attached sheet
considered part of this Decision* Said a)ards 7sic8 is in addition to other benefits as eEtended b( the companies in
the letter of termination*
SO ORD6R6D*
J
Not satisfied )ith the abo'e/:uoted decision# petitioners interposed the instant petition*
,etitioners maintain that public respondent grossl( erred and gra'el( abused its discretion )hen it ruled that5 7a8 the
termination of the siEt(/siE 7??8 emplo(ees )as in accordance )ith the LIFO rule in the C1F 7b8 the termination of the
siEt(/siE 7??8 emplo(ees )as in accordance )ith rticle !"9 of the Labor CodeF and 7c8 the pa(ment or offer of
pa(ment can substitute for the 9=/da( re:uired notice prior to termination*
5
close scrutin( of these assigned errors ho)e'er# sho)s that the same primaril( deal )ith the factual findings of
public respondent )hich )e are not at libert( to set aside in the absence of gra'e abuse of discretion amounting to
lack or in eEcess of <urisdiction*
This Court has consistentl( ruled that findings of fact of administrati'e agencies and :uasi/<udicial bodies )hich ha'e
ac:uired eEpertise because their <urisdiction is confined to specific matters are generall( accorded not onl( respect
but e'en finalit(
6
and are binding upon this Court unless there is a sho)ing of gra'e abuse of discretion#
7
or )here it is clearl( sho)n that the(
)ere arri'ed at arbitraril( or in disregard of the e'idence on record*
8
Ne'ertheless# )e )ill look into the factual findings of public respondent if onl( to determine )hether there )as gra'e
abuse of discretion amounting to lack or in eEcess of <urisdiction*
The termination of the siEt(/siE emplo(ees )as done in accordance )ith rticle !"9 of the Labor Code* The basis for
this )as the companies2 stud( to streamline operations so as to make them more 'iable* ,ositions )hich o'erlapped
each other# or )hich are in eEcess of the re:uirements of the ser'ice# )ere declared redundant*
rticle !"9 pro'ides5
rt* !"9* Closure o7 esta)lisment and reduction o7 #ersonnel* L The emplo(er ma( also terminate the emplo(ment
of an( emplo(ee due to the installation of labor/sa'ing de'ises# redundanc(# retrenchment to pre'ent losses or the
closing or cessation of operation of the establishment or undertaking unless the closing is for the purpose of
circum'enting in the pro'isions of this title# b( ser'ing a )ritten notice on the )orkers and the Department of Labor
and 6mplo(ment at least one 7$8 month before the intended date thereof* In case of retrenchment to pre'ent losses
of operations of establishment or undertaking not due to serious business losses or financial re'erses# the one 7$8
month pa( or at least
one/half 7$G!8 pa( for e'er( (ear of ser'ice# )hiche'er is higher* fraction of at least siE 7?8 months shall be
considered one 7$8 )hole (ear*
+e full( agree )ith the findings and conclusions of the public respondent on the issue of termination# to )it5
+e sustain the companies2 prerogati'e to adopt the alleged redundanc(Gretrenchment program to minimi.e if not# to
a'ert losses in the conduct of its operations* This has been recogni.ed in a line of cases* 7+iltshire File Co* 's*
NLRC# D*R* No* L/"!!&%# Februar( @# $%%$8* 0o)e'er# the companies2 decision on this matter is not absolute* The
basis for such an action must be far from being )himsical and the same must be pro'ed b( substantial e'idence* In
addition# the implementation of such a decision or polic( must be in accordance )ith eEisting la)s# rules and
procedure and pro'isions of the C1 bet)een the parties# if there be an(* Short of an( of these conditions#
management polic( to pursue and terminate its emplo(ees allegedl( to a'ert losses# must fail*
In sub<ect case# the ?? complaining emplo(ees )ere separated from ser'ice as a result of the decision of
management to limit its operations and streamline positions and personnel re:uirements*
In the case of -a(a Farms# Inc* its meat processing department# prior to the adoption of special redundanc( program
had four 7&8 sections each of )hich is headed b( an assistant superintendent* These 9 sections are5 7a8 meat
processingF 7b8 slaughterhouseF 7c8 packing* +ith the implementation of the decision of management to limit meat
processing )ith sausages as the onl( output# onl( one position for assistant superintendent )as retained that of sst*
Superintendent for meat processing held b( L(dia 1andong* 7,lantilla attached to the letter of -a( !&# $%%!F also
6Eh* >6*> Like)ise# positions of slicerGseater operator# debonnerGskinner# ham and bacon operati'e# )ere scrapped*
Similarl(# positions for packers )ere decreased retaining onl( fi'e positions out of !$ packers* lso affected )ere the
positions of egg sortersGstockers as onl( & positions )ere retained out of ten 7$=8 positions*
close eEamination of the positions retained b( management sho) that said positions such as egg sorter# debonner
)ere but the minimal positions re:uired to sustain the limited functionsGoperations of the meat processing
department* In the absence of an( e'idence to pro'e bad faith on the part of management in arri'ing at such
decision# )hich records on hand failed to sho) in instant case# the rationalit( of the act of management in this regard
must be sustained* +hile it ma( be true that the Libert( Flour -ills Droup of Companies as a )hole posted a net
income of ,"9*9 -illion# it is admitted that )ith respect to operations of the meat processing and li'estock )hich )ere
undertaken b( herein companies sustained losses in the sum of ,!#!;@#?&%*"" 76Eh* >9>8* This is the reason# as
ad'anced b( management# for its decision to streamline positions resulting in the reduction of manpo)er compliment
7sic8*
9
In ())ott La)oratories (Pils.! Inc. vs. NLRC#
10
)e had occasion to uphold the emplo(er in its eEercise of )hat are clearl( management
prerogati'es# thus5
The hiring# firing# transfer# demotion# and promotion of emplo(ees has been traditionall(# identified as a management
prerogati'e sub<ect to limitations found in la)# a collecti'e bargaining agreement or general principles of fair pla( and
<ustice* This is a function associated )ith the emplo(er2s inherent right to control and manage effecti'el( its
enterprise* 6'en as the la) is solicitous of the )elfare of the emplo(ees# it must also protect the right of an emplo(er
to eEercise )hat are clearl( management prerogati'es* The free )ill of management to conduct its o)n business
affairs to achie'e its purpose cannot be denied 7see Dangan 's* National Labor Relations Commission# $!@ SCR
@=?8*
The rule is )ell/settled that labor la)s discourage interference )ith an emplo(er2s <udgment in the conduct of his
business* 6'en as the la) is solicitous of the )elfare of emplo(ees# it must also protect the right of an emplo(er to
eEercise )hat are clearl( management prerogati'es* s long as the compan(2s eEercise of the same is in good faith
to ad'ance its interest and not for the purpose of defeating or circum'enting the rights of emplo(ees under the la)s
or 'alid agreements# such eEercise )ill be upheld*
11
The NLRC correctl( held that pri'ate respondents did not 'iolate the LIFO rule under Section !# rticle III of the C1
)hich pro'ides5
Sec* !* LI.4 R9L:* In all cases of la(/off or retrenchment resulting in termination of emplo(ment in the line of )ork#
the
Last/in/First/Out 7LIFO8 Rule must al)a(s be strictl( obser'ed*
It is not disputed that the LIFO rule applies to termination o7 em#lo0ment in te line o7 6or3*
1.
Veril(# )hat is contemplated in
the LIFO rule is that )hen there are t)o or more emplo(ees occup(ing the same position in the compan( affected b( the retrenchment program# the
last one emplo(ed )ill necessaril( be the first to go*
-oreo'er# the reason )h( there )as no 'iolation of the LIFO rule )as ampl( eEplained b( public respondent in this
)ise5
* * * * The LIFO rule under the C1 is eEplicit* It is ordained tat in cases o7 retrencment resulting in termination o7
em#lo0ment in line o7 6or3, te em#lo0ee 6o 6as em#lo0ed on te latest date must )e te 7irst one to go. ,e
#rovision s#ea3s o7 termination in te line o7 6or3. ,is contem#lates a situation 6ere em#lo0ees occu#0ing te
same #osition in te com#an0 are to )e a77ected )0 te retrencment #rogram. Since tere ougt to )e a reduction in
te num)er o7 #ersonnel in suc #ositions, te lengt o7 service o7 eac em#lo0ees is te determining 7actor, suc
tat te em#lo0ee 6o as a longer #eriod o7 em#lo0ment 6ill )e retained*
In the case under consideration# specificall( )ith respect to -a(a Farms# se'eral positions )ere affected b( the
special in'oluntar( redundanc( program* These are packers# egg sortersGstockers# dri'ers* In the case of packers#
prior to the in'oluntar( redundanc( program#
t)ent(/one emplo(ees occupied the position of packers* Out of this number# onl( ; )ere retained* In this group of
emplo(ees# the earliest date of emplo(ment )as October !@# $%?%# and the latest packer )as emplo(ed in $%"%* The
most senior emplo(ees occup(ing the position of packers )ho )ere retained are as follo)s5
Santos# Laura C* Oct* !@# $%?%
6strada# -ercedes ug* !=# $%@=
0ortale.a# Lita Bune $$# $%@$
Bimene.# Lolita pril !;# $%@!
:uino# Teresita Bune !;# $%@;
ll the other packers emplo(ed after Bune !# $%@; 7sic8 )ere separated from the ser'ice*
The same is true )ith respect to egg sorters* The egg sorters emplo(ed on or before pril !?# $%@! )ere retained* ll
those emplo(ed after said date )ere separated*
+ith respect to the position of dri'ers# there )ere eight dri'ers prior to the in'oluntar( redundanc( program*
Thereafter onl( 9 positions )ere retained* ccordingl(# the three dri'ers )ho )ere most senior in terms of period of
emplo(ment# )ere retained* The( are5 Ceferino D* Narag# 6fren -acaraig and ,ablito -acaraig*
The case of Roberta Cabrera and L(dia C* 1andong# sst* Superintendent for packing and sst* Superintendent for
meat processing respecti'el( )as presented b( the union as an instance )here the LIFO rule )as not obser'ed b(
management* The union pointed out that L(dia 1andong )ho )as retained b( management )as emplo(ed on a
much later date than Roberta Cabrera# and both are ssistant Superintendent* +e cannot sustain the union2s
argument* It is indeed true that Roberta Cabrera )as emplo(ed earlier 7Banuar( !"# $%?$8 and 7sic8 L(dia 1andong
7Bul( %# $%??8* 0o)e'er# it is maintained that in meat processing department there )ere 9 sst* Superintendents
assigned as head of the 9 sections thereat* The reason ad'anced b( the compan( in retaining 1andong )as that as
sst* Superintendent for meat processing she could >alread( take care of the operations of the other sections*> The
nature of )ork of each assistant superintendent as )ell as eEperience )ere taken into account b( management* Such
criteria )as not sho)n to be )himsical nor carpricious 7sic8*
14
76mphasis supplied8*
Finall(# contrar( to petitioners2 contention# there is nothing on record to sho) that the 9=/da( notice of termination to
the )orkers )as disregarded and that the same substituted )ith separation pa( b( pri'ate respondents* s found b(
public respondent# )ritten notices of separation )ere sent to the emplo(ees on Banuar( $@# $%%!* The notices
eEpressl( stated that the termination of emplo(ment )as to take effect one month from receipt thereof* Therefore# the
allegation that separation pa( )as gi'en in lieu of the 9=/da( notice re:uired b( la) is baseless*
+06R6FOR6# finding no gra'e abuse of discretion amounting to lack or in eEcess of <urisdiction on the part of public
respondent# the instant petition is hereb( DIS-ISS6D*
SO ORD6R6D*
S6COND DIVISION
[G.R. No. 10900.. April 1., .000]
$ELA SALLE #NI/ERSIT0, petitioner, vs. $ELA SALLE #NI/ERSIT0 EMLO0EES
ASSOCIATION <$LS#EA> *+3 B#ENA/ENT#RA MAGSALIN,respondents.
[G.R. No. 11007.. April 1., .000]
$ELA SALLE #NI/ERSIT0 EMLO0EES ASSOCIATION=NATIONAL (E$ERATION O(
TEAC"ERS AN$ EMLO0EES #NION <$LS#EA=NA(TE#>,petitioner, vs. $ELA SALLE
#NI/ERSIT0 *+3 B#ENA/ENT#RA MAGSALIN, respondents.
$ E C I S I O N
B#ENA, J.&
Filed )ith this Court are t)o petitions for certiorari,
;<=
the first petition )ith preliminar( in<unction andGor
temporar( restraining order#
3!4
assailing the decision of 'oluntar( arbitrator 1uena'entura -agsalin#
dated Banuar( $%# $%%9# as ha'ing been rendered )ith gra'e abuse of discretion amounting to lack
or eEcess of <urisdiction* These t)o petitions ha'e been consolidated inasmuch as the factual
antecedents# parties in'ol'ed and issues raised therein are interrelated*
394
-issc
The facts are not disputed and# as summari.ed b( the 'oluntar( arbitrator# are as follo)s* On
December $%"?# Dela Salle Cni'ersit( 7hereinafter referred to as CNIV6RSITP8 and Dela Salle
Cni'ersit( 6mplo(ees ssociation / National Federation of Teachers and 6mplo(ees Cnion
7DLSC6/NFT6C8# )hich is composed of regular non/academic rank and file emplo(ees#
3&4
7hereinafter referred to as CNION8 entered into a collecti'e bargaining agreement )ith a life span of
three 798 (ears# that is# from December !9# $%"? to December !!# $%"%*
3;4
During the freedom period#
or ?= da(s before the eEpiration of the said collecti'e bargaining agreement# the Cnion initiated
negotiations )ith the Cni'ersit( for a ne) collecti'e bargaining agreement
3?4
)hich# ho)e'er# turned
out to be unsuccessful# hence# the Cnion filed a Notice of Strike )ith the National Conciliation and
-ediation 1oard# National Capital Region*
3@4
fter se'eral conciliation/mediation meetings# fi'e 7;8 out
of the ele'en 7$$8 issues raised in the Notice of Strike )ere resol'ed b( the parties* partial
collecti'e bargaining agreement )as thereafter eEecuted b( the parties*
3"4
On -arch $"# $%%$# the
parties entered into a Submission greement# identif(ing the remaining siE 7?8 unresol'ed issues for
arbitration# namel(5 >7$8 scope of the bargaining unit# 7!8 union securit( clause# 798 securit( of tenure#
7&8 salar( increases for the third and fourth (ears 3this should properl( read second and third (ears4
3%4
of the collecti'e bargaining agreement# 7;8 indefinite union lea'e# reduction of the union presidentIs
)orkload# special lea'e# and finall(# 7?8 duration of the agreement*>
3$=4
The parties appointed
1uena'entura -agsalin as 'oluntar( arbitrator*
3$$4
On Banuar( $%# $%%9# the 'oluntar( arbitrator
rendered the assailed decision*
3$!4
Spped
In the said decision# the 'oluntar( arbitrator# on the first issue in'ol'ing the scope of the bargaining
unit# ruled that >Rthe Computer Operators assigned at the CSC 3Computer Ser'ices Center4# <ust
like an( other Computer Operators in other units# 3should be4 included as members of the bargaining
unit#>
3$94
after finding that >3e4'identl(# the Computer Operators are presentl( doing clerical and
routinar( )ork and had nothing to do )ith 3the4 setting of management policies for the Cni'ersit(# as
3ma( be4 gleaned from the duties and responsibilities attached to the position and embodied in the
CSC 3Computer Ser'ices Center4 brochure* The( ma( ha'e# as argued b( the Cni'ersit(# access to
'ital information regarding the Cni'ersit(Is operations but the( are not necessaril(
confidential*>
3$&4
Regarding the discipline officers# the 'oluntar( arbitrator >Rbelie'es that this t(pe of
emplo(ees belong 7sic8 to the rank/and/file on the basis of the nature of their <ob*>
3$;4
+ith respect to
the emplo(ees of the College of St* 1enilde# the 'oluntar( arbitrator found that the College of St*
1enilde has a personalit( separate and distinct from the Cni'ersit( and thus# held >Rthat the
emplo(ees therein are outside the bargaining unit of the Cni'ersit(Is rank/and/file emplo(ees*>
3$?4
On the second issue regarding the propriet( of the inclusion of a union shop clause in the collecti'e
bargaining agreement# in addition to the eEisting maintenance of membership clause# the 'oluntar(
arbitrator opined that a union shop clause >Ris not a restriction on the emplo(eeIs right of 7sic8
freedom of association but rather a 'alid form of union securit( )hile the C1 is in force and in
accordance )ith the Constitutional polic( to promote unionism and collecti'e bargaining and
negotiations* The parties therefore should incorporate such union shop clause in their C1*>
3$@4
On the third issue )ith respect to the use of the >last/in/first/out> method in case of retrenchment and
transfer to other schools or units# the 'oluntar( arbitrator upheld the >Relementar( right and
prerogati'e of the management of the Cni'ersit( to select andGor choose its emplo(ees# a right
e:uall( recogni.ed b( the Constitution and the la)* The emplo(er# in the eEercise of this right# can
adopt 'alid and e:uitable grounds as basis for la(/off or separation# like performance# :ualifications#
competence# etc* Similarl(# the right to transfer or reassign an emplo(ee is an emplo(erIs eEclusi'e
right and prerogati'e*>
3$"4
Regarding the fourth issue concerning salar( increases for the second and third (ears of the
collecti'e bargaining agreement# the 'oluntar( arbitrator opined that the >Rproposed budget of the
Cni'ersit( for SP $%%!/%9 could not sufficientl( cope up )ith the demand for increases b( the Cnion*
EEE EEE* +ith the present financial condition of the Cni'ersit(# it cannot no) be re:uired to grant
another round of increases through collecti'e bargaining )ithout eEhausting its coffers for other
legitimate needs of the Cni'ersit( as an institution#>
3$%4
thus# he ruled that >Rthe Cni'ersit( can no
longer be re:uired to grant a second round of increase for the school (ears under consideration and
charge the same to the incremental proceeds*>
3!=4
-isspped
On the fifth issue as to the CnionIs demand for a reduction of the )orkload of the union president#
special lea'e benefits and indefinite union lea'e )ith pa(# the 'oluntar( arbitrator re<ected the same#
ruling that unionism >Ris no 'alid reason for the reduction of the )orkload of its ,resident#>
3!$4
and that
there is >Rno sufficient <ustification to grant an indefinite lea'e*>
3!!4
Finding that the Cnion and the
Facult( ssociation are not similarl( situated# technicall( and professionall(#
3!94
and that >3)4hile
professional gro)th is highl( encouraged on the part of the rank/and/file emplo(ees# this educational
ad'ancement )ould not ser'e in the same degree as demanded of the facult( members#>
3!&4
the
'oluntar( arbitrator denied the CnionIs demand for special lea'e benefits*
On the last issue regarding the duration of the collecti'e bargaining agreement# the 'oluntar(
arbitrator ruled that >R)hen the parties forged their C1 and signed it on $% No'ember $%%=# )here
a pro'ision on duration )as eEplicitl( included# the same became a binding agreement bet)een
them* Not)ithstanding the Submission greement# thereb( reopening this issue for resolution# this
Voluntar( rbitrator is constrained to respect the original intention of the parties# the same being not
contrar( to la)# morals or public polic(*>
3!;4
s to the economic aspect of the collecti'e bargaining
agreement# the 'oluntar( arbitrator opined that the >Reconomic pro'isions of the C1 shall be re/
opened after the third (ear in compliance )ith the mandate of the Labor Code# as amended*>
3!?4
Subse:uentl(# both parties filed their respecti'e motions for reconsideration )hich# ho)e'er# )ere
not entertained b( the 'oluntar( arbitrator >pursuant to eEisting rules and <urisprudence go'erning
'oluntar( arbitration cases*>
3!@4
Bosp/ped
On -arch ;# $%%9# the Cni'ersit( filed )ith the Second Di'ision of this Court# a petition
for certiorari )ith temporar( restraining order andGor preliminar( in<unction assailing the decision of
the 'oluntar( arbitrator# as ha'ing been rendered >in eEcess of <urisdiction andGor )ith gra'e abuse
of discretion*>
3!"4
Subse:uentl(# on -a( !&# $%%9# the Cnion also filed a petition for certiorari )ith the
First Di'ision*
3!%4
+ithout gi'ing due course to the petition pending before each di'ision# the First and
Second Di'isions separatel( resol'ed to re:uire the respondents in each petition# including the
Solicitor Deneral on behalf of the 'oluntar( arbitrator# to file their respecti'e Comments*
39=4
Cpon
motion b( the Solicitor Deneral dated Bul( !%# $%%9# both petitions )ere consolidated and
transferred to the Second Di'ision*
39$4
In his consolidated Comment
39!4
filed on September %# $%%9 on behalf of 'oluntar( arbitrator
1uena'entura C* -agsalin# the Solicitor Deneral agreed )ith the 'oluntar( arbitratorIs assailed
decision on all points eEcept that in'ol'ing the emplo(ees of the College of St* 1enilde* ccording to
the Solicitor Deneral# the emplo(ees of the College of St* 1enilde should ha'e been included in the
bargaining unit of the rank/and/file emplo(ees of the Cni'ersit(*
3994
The Solicitor Deneral came to this
conclusion after finding >Rsufficient e'idence to <ustif( the CnionIs proposal to consider the
Cni'ersit( and the CS1 3College of St* 1enilde4 as onl( one entit( because the latter is but a mere
integral part of the Cni'ersit(#> to )it5
39&4
>$* One of the duties and responsibilities of the CS1Is Director of cademic Ser'ices is to coordinate
)ith the Cni'ersit(Is Director of dmissions regarding the admission of freshmen# shiftees and
transferees 7nneE >9> of the Cni'ersit(Is Repl(8F
>!* Some of the duties and responsibilities of the CS1Is dministrati'e Officer are as follo)s5
Q* EEE EEE EEE*
Q&* Recommends and implements personnel policies and guidelines 7in accordance )ith the Staff
-anual8 as )ell as pertinent eEisting general policies of the uni'ersit( as a )hole* EEE*
Q$!* Conducts and establishes liaison )ith all the offices concerned at the -ain Campus as )ell 7sic8
)ith other go'ernment agencies on all administrati'e/related matters* EEE Spp/ed<o
Q1* EEE EEE EEE
Q@* 0andles processing# can'assing and direct purchasing of all re:uisitions )orth more than
,$=#=== or less* Coordinates and can'asses )ith the -ain Campus all re:uisitions )orth more than
,$=#===* EEE
QC* EEE EEE EEE
Q@* ,lans and coordinates )ith the Securit( and Safet( Committee at the -ain Campus the
de'elopment of a securit( and safet( program during times of emergenc( or occurrence of fire or
other natural calamities* EEE 7nneE >&> of the Cni'ersit(Is Repl(8*I
>9* The significant role )hich the Cni'ersit( assumes in the admission of students at the CS1 is
re'ealed in the follo)ing pro'isions of the CS1Is 1ulletin for rts and 1usiness Studies Department
for the school(ear $%%!/$%%9# thus5
QConsidered in the process of admission for a 7sic8 high school graduate applicants are the follo)ing
criteria5 results of DLSC College 6ntrance 6Eamination EEE*
Qdmission re:uirements for transferees are5 EEE and an acceptable score in the DLSC admission
test* EEE
QShiftees from DLSC )ho are still eligible to enroll ma( be admitted in accordance )ith the DLSC
polic( on shifting* Considering that there sometimes eEist eEceptional cases )here a 'er( difficult but
temporar( situation renders a DLSC student falling under this categor( a last chance to be re/
admitted pro'ided he meets the cut/off scores re:uired in the :ualif(ing eEamination administered b(
the uni'ersit(* EEE
Q0e ma( not be remiss in his stud( obligations nor incur an( 'iolation )hatsoe'er# as such )ill be
taken b( the Cni'ersit( to be an indication of his loss of initiati'e to pursue further studies at DLSC*
In sch 7sic8 a case# he renders himself ineligible to continue stud(ing at DLSC* DLSC thus reser'es
the right to the discontinuance of the studies of an( enrolee )hose presence is inimical to the
ob<ecti'es of the CS1GDLSC* EEE -i/so
Qs a college )ithin the uni'ersit(# the College of St* 1enilde subscribes to the De La Salle -ission*>
7nneEes >C/$#> >C/!#> and >C/9> of the CnionIs Consolidated Repl( and Re<oinder8I
>&* The academic programs offered at the CS1 are like)ise presented in the Cni'ersit(Is
Cndergraduate ,rospectus for school(ear $%%!/$%%9 7nneE >D> of the CnionIs Consolidated Repl(
and Re<oinder8*
>;* The Lea'e Form Re:uest 7nneE >F> of the CnionIs ,osition ,aper8 at the CS1 re:uires prior
permission from the Cni'ersit( anent lea'es of CS1 emplo(ees# to )it5
QN 6-,LOP66 +0O DO6S ON L6V6 +IT0OCT ,RIOR ,6R-ISSION FRO- T06
CNIV6RSITP OR +0O OV6R6ST6NDS T06 ,6RIOD OF 0IS ,,ROV6D L6V6 +IT0OCT
S6CCRIND CT0ORITP FRO- T06 CNIV6RSITP# OR +0O R6FCS6 TO 16 R6CLL6D FRO-
N ,,ROV6D L6V6 S0LL 16 CONSID6R6D 1S6NT +IT0OCT L6V6 ND S0LL 16
SC1B6CT TO DISCI,LINRP CTION*I
>?* The Cni'ersit( officials themsel'es claimed during the $%%= Cni'ersit( thletic ssociation of the
,hilippines 7C,8 meet that the CS1 athletes represented the Cni'ersit( since the latter and the
CS1 comprise onl( one entit(*>
On Februar( %# $%%&# this Court resol'ed to gi'e due course to these consolidated petitions and to
re:uire the parties to submit their respecti'e memoranda*
39;4
In its memorandum filed on pril !"# $%%&#
39?4
pursuant to the abo'e/stated Resolution#
39@4
the Cni'ersit(
raised the follo)ing issues for the consideration of the Court5
39"4
Ne/Eold
I*
>+06T06R OR NOT DRV6 1CS6 OF DISCR6TION +S CO--ITT6D 1P T06 VOLCNTRP
R1ITRTOR +06N 06 INCLCD6D# +IT0IN T06 1RDININD CNIT CO-,RISIND T06
CNIV6RSITPIS RNH/ND/FIL6 6-,LOP66S# T06 CO-,CT6R O,6RTORS SSIDN6D T
T06 CNIV6RSITPIS CO-,CT6R S6RVIC6S C6NT6R ND T06 CNIV6RSITPIS DISCI,LIN6
OFFIC6RS# ND +06N 06 6SCLCD6D T06 COLL6D6 OF SINT 16NILD6 6-,LOP66S
FRO- T06 SID 1RDININD CNIT*
II*
>+06T06R OR NOT DRV6 1CS6 OF DISCR6TION +S CO--ITT6D 1P T06 VOLCNTRP
R1ITRTOR +06N 06 C,06LD T06 CNIONIS D6-ND FOR T06 INCLCSION OF CNION
S0O, CLCS6 IN T06 ,RTI6SI COLL6CTIV6 1RDININD DR66-6NT*
III*
>+06T06R OR NOT DRV6 1CS6 OF DISCR6TION +S CO--ITT6D 1P T06 VOLCNTRP
R1ITRTOR +06N 06 D6NI6D T06 CNIONIS ,RO,OSL FOR T06 >LST/IN/FIRST/OCT>
-6T0OD OF LP/OFF IN CS6S OF R6TR6NC0-6NT* Sc
IV*
>+06T06R OR NOT DRV6 1CS6 OF DISCR6TION +S CO--ITT6D 1P T06 VOLCNTRP
R1ITRTOR +06N 06 RCL6D T0T T06 CNIV6RSITP CN NO LOND6R 16 R6ACIR6D TO
DRNT S6COND ROCND OF +D6 INCR6S6S FOR T06 SC0OOL P6RS $%%$/%! ND
$%%!/%9 ND C0RD6 T06 S-6 TO T06 INCR6-6NTL ,ROC66DS*
V*
>+06T06R OR NOT DRV6 1CS6 OF DISCR6TION +S CO--ITT6D 1P T06 VOLCNTRP
R1ITRTOR +06N 06 D6NI6D T06 CNIONIS ,RO,OSLS ON T06 D6LODIND OF T06
CNION ,R6SID6NT# I-,ROV6D L6V6 16N6FITS ND IND6FINIT6 CNION L6V6 +IT0
,P*>
The Cnion# on the other hand# raised the follo)ing issues# in its memorandum#
39%4
filed pursuant to
Supreme Court Resolution dated Februar( %# $%%&#
3&=4
to )itF that the 'oluntar( arbitrator committed
gra'e abuse of discretion in5
>7$8......FILIND NDGOR R6FCSIND TO ,I6RC6 T06 V6IL OF COR,ORT6 FICTION OF T06
COLL6D6 OF ST* 16NILD6/DLSC D6S,IT6 T06 ,R6S6NC6 OF SCFFICI6NT 1SIS TO DO
SO ND IN FINDIND T0T T06 6-,LOP66S T06R6T R6 OCTSID6 OF T06 1RDININD
CNIT OF T06 DLSCIS RNH/ND/FIL6 6-,LOP66S* 06 LSO 6RR6D IN 0IS
INT6R,R6TTION OF T06 ,,LICTION OF T06 DOCTRIN6F E/sc
>7!8......D6NPIND T06 ,6TITION6RIS ,RO,OSL FOR T06 QLST/IN FIRST/OCTI -6T0OD OF
LP/OFF IN CS6 OF R6TR6NC0-6NT ND IN C,0OLDIND T06 LL6D6D -ND6-6NT
,R6RODTIV6 TO S6L6CT ND C0OOS6 ITS 6-,LOP66S DISR6DRDIND T06 1SIC
T6N6TS OF SOCIL BCSTIC6 ND 6ACITP C,ON +0IC0 T0IS ,RO,OSL +S FOCND6DF
>798......FINDIND T0T T06 -CLTIS6CTORL CO--ITT66 IN T06 R6S,OND6NT CNIV6RSITP
IS T06 L6DITI-T6 DROC, +0IC0 D6T6R-IN6S ND SCRCTINIT6S NNCL SLRP
INCR6S6S ND FRIND6 16N6FITS OF T06 6-,LOP66SF
>7&8......0OLDIND T0T T06 @=N S0R6 IN T06 INCR6-6NTL TCITION ,ROC66DS IS T06
ONLP SOCRC6 OF SLRP INCR6S6S ND FRIND6 16N6FITS OF T06 6-,LOP66SF
>7;8......FILINDGR6FCSINDGDISR6DRDIND TO CONSID6R T06 R6S,OND6NT CNIV6RSITPIS
FINNCIL STT6-6NTS FCTCLLP TO D6T6R-IN6 T06 FOR-6RIS C,1ILITP TO
DRNT T06 ,RO,OS6D SLRP INCR6S6S OV6R ND 1OV6 T06 @=N S0R6 IN T06
INCR6-6NTL TCITION ,ROC66DS ND IN DIVIND +6ID0T ND CONSID6RTION TO T06
R6S,OND6NT CNIV6RSITPIS ,RO,OS6D 1CDD6T +0IC0 IS -6R6LP N 6STI-T6*
>7?8......FILIND TO 6ACT6 T06 ,OSITION ND R6S,ONSI1ILITI6S OF T06 CNION
,R6SID6NT +IT0 T0OS6 OF T06 ,R6SID6NT OF T06 FCCLTP SSOCITION +0IC0 IS
NOT 6V6N L6DITI-T6 L1OR ORDNITTION ND IN S,6CCLTIND T0T T06
,R6SID6NT OF T06 FCCLTP SSOCITION SCFF6RS CORR6S,ONDIND R6DCCTION IN
SLRP ON T06 CCOCNT OF T06 R6DCCTION OF 0IS +ORHLODF IN FILIND TO
,,R6CIT6 T06 6ACL RID0TS OF T06 -6-16RS OF T06 CNION ND OF T06 FCCLTP
FOR ,ROF6SSIONL DVNC6-6NT S +6LL S T06 D6SIR1L6 6FF6CTS OF T06
INSTITCTIONLITTION OF T06 S,6CIL L6V6 ND +ORHLOD R6DCCTION
16N6FITS*>
3&$4
El/a)
The :uestion )hich no) confronts us is )hether or not the 'oluntar( arbitrator committed gra'e
abuse of discretion in rendering the assailed decision# particularl(# in resol'ing the follo)ing issues5
7$8 )hether the computer operators assigned at the Cni'ersit(Is Computer Ser'ices Center and the
Cni'ersit(Is discipline officers ma( be considered as confidential emplo(ees and should therefore be
eEcluded from the bargaining unit )hich is composed of rank and file emplo(ees of the Cni'ersit(#
and )hether the emplo(ees of the College of St* 1enilde should also be included in the same
bargaining unitF 7!8 )hether a union shop clause should be included in the partiesI collecti'e
bargaining agreement# in addition to the eEisting maintenance of membership clauseF 798 )hether
the denial of the CnionIs proposed >last/in/first/out> method of la(ing/off emplo(ees# is properF 7&8
)hether the ruling that on the basis of the Cni'ersit(Is proposed budget# the Cni'ersit( can no longer
be re:uired to grant a second round of )age increases for the school (ears $%%$/%! and $%%!/%9
and charge the same to the incremental proceeds# is correctF 7;8 )hether the denial of the CnionIs
proposals on the deloading of the union president# impro'ed lea'e benefits and indefinite union
lea'e )ith pa(# is properF 7?8 )hether the finding that the multi/sectoral committee in the Cni'ersit( is
the legitimate group )hich determines and scrutini.es the annual salar( increases and fringe
benefits of the emplo(ees of the Cni'ersit(# is correctF and 7@8 )hether the ruling that the @=N share
in the incremental tuition proceeds is the onl( source of salar( increases and fringe benefits of the
emplo(ees# is proper*
No)# before proceeding to the discussion and resolution of the issues raised in the pending
petitions# certain preliminar( matters call for disposition* s )e reiterated in the case of CalteE
Refiner( 6mplo(ees ssociation 7CR68 's* Bose S* 1rillantes,
3&!4
the follo)ing are the )ell/settled
rules in a petition for certiorari in'ol'ing labor cases* >.irst# the factual findings of :uasi/<udicial
agencies 7such as the Department of Labor and 6mplo(ment8# )hen supported b( substantial
e'idence# are binding on this Court and entitled to great respect# considering the eEpertise of these
agencies in their respecti'e fields* It is )ell/established that findings of these administrati'e agencies
are generall( accorded not onl( respect but e'en finalit(*
3&94
-an/ikE
>Second# substantial e'idence in labor cases is such amount of rele'ant e'idence )hich a
reasonable mind )ill accept as ade:uate to <ustif( a conclusion*
3&&4
>,ird# in Flores 's* National Labor Relations Commission#
3&;4
)e eEplained the role and function of
Rule ?; as an eEtraordinar( remed(5
>It should be noted# in the first place# that the instant petition is a special ci'il action for certiorari
under Rule ?; of the Re'ised Rules of Court* n eEtraordinar( remed(# its use is a'ailable onl( and
restricti'el( in trul( eEceptional cases L those )herein the action of an inferior court# board or officer
performing <udicial or :uasi/<udicial acts is challenged for being )holl( 'oid on grounds of
<urisdiction* The sole office of the )rit of certiorari is the correction of errors of <urisdiction including
the commission of gra'e abuse of discretion amounting to lack or eEcess of <urisdiction* It does not
include correction of public respondent NLRC2s e'aluation of the e'idence and factual findings
based thereon# )hich are generall( accorded not onl( great respect but e'en finalit(*
>No :uestion of <urisdiction )hatsoe'er is being raised andGor pleaded in the case at bench* Instead#
)hat is being sought is a <udicial re/e'aluation of the ade:uac( or inade:uac( of the e'idence on
record# )hich is certainl( be(ond the pro'ince of the eEtraordinar( )rit of certiorari* Such demand is
impermissible for it )ould in'ol'e this Court in determining )hat e'idence is entitled to belief and the
)eight to be assigned it* A? C5 :*F5 r5i65r*653 9o,+6l5?? 6i75?, @,3i9i*l r5Fi5C 8- 6:i? Co,r6 i+
l*8or 9*?5? 3o5? +o6 Ao ?o B*r *? 6o 5F*l,*65 6:5 ?,BBi9i5+9- oB 6:5 5Fi35+95 ,po+ C:i9: 6:5
prop5r l*8or oBBi95r or oBBi95 8*?53 :i? or i6? 3565r7i+*6io+ 8,6 i? li7i653 o+l- 6o i??,5? oB
@,ri?3i96io+ or Ar*F5 *8,?5 oB 3i?9r56io+ *7o,+6i+A 6o l*9D oB @,ri?3i96io+.G 7emphasis
supplied8*
+ith the foregoing rules in mind# )e shall no) proceed to discuss the merit of these consolidated
petitions*
+e affirm in part and modif( in part* Scl/a)
On the first issue in'ol'ing the classification of the computer operators assigned at the Cni'ersit(Is
Computer Ser'ices Center and discipline officers# the Cni'ersit( argues that the( are confidential
emplo(ees and that the Cnion has alread( recogni.ed the confidential nature of their functions )hen
the latter agreed in the partiesI $%"? collecti'e bargaining agreement to eEclude the said emplo(ees
from the bargaining unit of rank/and/file emplo(ees* s far as the said computer operators are
concerned# the Cni'ersit( contends that >R the parties ha'e alread( pre'iousl( agreed to eEclude all
positions in the Cni'ersit(Is Computer Ser'ices Center 7CSC8# )hich include the positions of
computer operators# from the collecti'e bargaining unit* EEE EEE*>
3&?4
The Cni'ersit( further contends
that >Rthe nature of the )ork done b( these Computer Operators is enough <ustification for their
eEclusion from the co'erage of the bargaining unit of the Cni'ersit(Is rank/and/file emplo(ees* EEE
EEE*>
3&@4
ccording to the Cni'ersit(# the Computer Ser'ices Center# )here these computer operators
)ork# >Rprocesses data that are needed b( management for strategic planning and e'aluation of
s(stems* It also houses the Cni'ersit(Is confidential records and information 3e.g. student records#
facult( records# facult( and staff pa(roll data# and budget allocation and eEpenditure related data4
)hich are contained in computer files and computer/generated reports* EEE EEE* -oreo'er# the
Computer Operators are in fact the repositor( of the Cni'ersit(Is confidential information and data#
including those in'ol'ing andGor pertinent to labor relations* EEE EEE*>
3&"4
s to the discipline officers# the Cni'ersit( maintains that >Rthe( are like)ise eEcluded from the
bargaining unit of the rank/and/file emplo(ees under the partiesI $%"? C1* The Discipline Officers
are clearl( alter egos of management as the( perform tasks )hich are inherent in management
3e.g. enforce discipline# act as peace officers# secure peace and safet( of the students inside the
campus# conduct in'estigations on 'iolations of Cni'ersit( regulations# or of eEisting criminal la)s#
committed )ithin the Cni'ersit( or b( Cni'ersit( emplo(ees4 EEE EEE*>
3&%4
The Cni'ersit( also alleges
that >the Discipline Officers are pri'( to highl( confidential information ordinaril( accessible onl( to
management*>
3;=4
-anik/s
+ith regard to the emplo(ees of the College of St* 1enilde# the Cnion# supported b( the Solicitor
Deneral at this point# asserts that the 'eil of corporate fiction should be pierced# thus# according to
the Cnion# the Cni'ersit( and the College of St* 1enilde should be considered as onl( one entit(
because the latter is but a mere integral part of the Cni'ersit(*
3;$4
The Cni'ersit(Is arguments on the first issue fail to impress us* The Court agrees )ith the Solicitor
Deneral that the eEpress eEclusion of the computer operators and discipline officers from the
bargaining unit of rank/and/file emplo(ees in the $%"? collecti'e bargaining agreement does not bar
an( re/negotiation for the future inclusion of the said emplo(ees in the bargaining unit* During the
freedom period# the parties ma( not onl( rene) the eEisting collecti'e bargaining agreement but ma(
also propose and discuss modifications or amendments thereto* +ith regard to the alleged
confidential nature of the said emplo(eesI functions# after a careful consideration of the pleadings
filed before this Court# )e rule that the said computer operators and discipline officers are not
confidential emplo(ees* s carefull( eEamined b( the Solicitor Deneral# the ser'ice record of a
computer operator re'eals that his duties are basicall( clerical and non/confidential in nature*
3;!4
s to
the discipline officers# )e agree )ith the 'oluntar( arbitrator that based on the nature of their duties#
the( are not confidential emplo(ees and should therefore be included in the bargaining unit of rank/
and/file emplo(ees*
The Court also affirms the findings of the 'oluntar( arbitrator that the emplo(ees of the College of St*
1enilde should be eEcluded from the bargaining unit of the rank/and/file emplo(ees of Dela Salle
Cni'ersit(# because the t)o educational institutions ha'e their o)n separate <uridical personalit( and
no sufficient e'idence )as sho)n to <ustif( the piercing of the 'eil of corporate fiction*
3;94
-an/ikan
On the second issue in'ol'ing the inclusion of a union shop clause in addition to the eEisting
maintenance of membership clause in the collecti'e bargaining agreement# the Cni'ersit( a'ers that
>Rit is in the spirit of the eEercise of the constitutional right to self/organi.ation that e'er( indi'idual
should be able to freel( choose )hether to become a member of the Cnion or not* The right to <oin a
labor organi.ation should carr( )ith it the corollar( right not to <oin the same* This position of the
Cni'ersit( is but in due recognition of the indi'idualIs free )ill and capabilit( for <udgment*>
3;&4
The
Cni'ersit( assails the CnionIs demand for a union shop clause as >Rdefinitel( un<ust and amounts to
oppression* -oreo'er# such a demand is repugnant to democratic principles and the constitutionall(
guaranteed freedom of indi'iduals to <oin or not to <oin an association as )ell as their right to securit(
of tenure# particularl(# on the part of present emplo(ees*>
3;;4
The Cnion# on the other hand# counters that the Labor Code# as amended# recogni.es the 'alidit( of
a union shop agreement in rticle !&" thereof )hich reads5
>RT* !&"* Cnfair labor practices of emplo(ers* M
EEE......EEE......EEE
7e8 To discriminate in regard to hire or tenure of emplo(ment or an( term or condition of emplo(ment
in order to encourage or discourage membership in an( labor organi.ation* No6:i+A i+ 6:i? Co35 or
i+ *+- o6:5r l*C ?:*ll pr5F5+6 6:5 p*r6i5? Bro7 r5I,iri+A 75785r?:ip i+ * r59oA+iL53
9oll596iF5 8*rA*i+i+A *A5+6 *? * 9o+3i6io+ Bor 57plo-75+6, 5M95p6 oB 6:o?5 57plo-55? C:o
*r5 *lr5*3- 75785r? oB *+o6:5r ,+io+ *6 6:5 6i75 oB 6:5 ?iA+i+A oB 6:5 9oll596iF5 8*rA*i+i+A
*Ar5575+6. EEE EEE*> 7emphasis supplied8 Ol/dmiso
+e affirm the ruling of the 'oluntar( arbitrator for the inclusion of a union shop pro'ision in addition
to the eEisting maintenance of membership clause in the collecti'e bargaining agreement* s the
Solicitor Deneral asserted in his consolidated Comment# the Cni'ersit(Is reliance on the case
of Victoriano vs. lizalde Rope !or"ers# $nion
3;?4
is clearl( misplaced* In that case# )e ruled that
>Rthe right to <oin a union includes the right to abstain from <oining an( union* EEE EEE* The right to
refrain from <oining labor organi.ations recogni.ed b( Section 9 of the Industrial ,eace ct is#
ho)e'er# limited* The legal protection granted to such right to refrain from <oining is )ithdra)n b(
operation of la)# )here a labor union and an emplo(er ha'e agreed on a closed shop# b( 'irtue of
)hich the emplo(er ma( emplo( onl( members of the collecti'e bargaining union# and the
emplo(ees must continue to be members of the union for the duration of the contract in order to
keep their <obs* EEE EEE*>
3;@4
On the third issue regarding the CnionIs proposal for the use of the >last/in/first/out> method in case
of la(/off# termination due to retrenchment and transfer of emplo(ees# the Cnion relies on social
<ustice and e:uit( to support its proposition# and submits that the Cni'ersit(Is prerogati'e to select
andGor choose the emplo(ees it )ill hire is limited# either b( la) or agreement# especiall( )here the
eEercise of this prerogati'e might result in the loss of emplo(ment*
3;"4
The Cnion further insists that its
proposal is >Rin keeping )ith the a'o)ed State polic( Q7:8 To ensure the participation of )orkers in
decision and polic(/making processes affecting their rights# duties and )elfareI 7rt* !$$# Labor
Code# as amended8*>
3;%4
On the other hand# the Cni'ersit( asserts its management prerogati'e and counters that >3)4hile it is
recogni.ed that this right of emplo(ees and )orkers to Qparticipate in polic( and decision/making
processes affecting their rights and benefits as ma( be pro'ided b( la)I has been enshrined in the
Constitution 7rticle III# 3should be rticle SIII4# Section 9# par* !8# said participation# ho)e'er# does
not automaticall( entitle the Cnion to dictate as to ho) an emplo(er should choose the emplo(ees to
be affected b( a retrenchment program* The emplo(er still retains the prerogati'e to determine the
reasonable basis for selecting such emplo(ees*>
3?=4
Nc/m
+e agree )ith the 'oluntar( arbitrator that as an eEercise of management prerogati'e# the Cni'ersit(
has the right to adopt 'alid and e:uitable grounds as basis for terminating or transferring emplo(ees*
s )e ruled in the case of utobus +orkers2 Cnion 7+C8 and Ricardo 6scanlar 's* National Labor
Relations Commission,
[%&]
>3a4 'alid eEercise of management prerogati'e is one )hich# among others#
co'ers5 )ork assignment# )orking methods# time# super'ision of )orkers# 6r*+?B5r oB 57plo-55?#
)ork super'ision# and the discipline# 3i?7i??*l and recall of )orkers* EM95p6 *? proFi353 Bor, or
li7i653 8- ?p59i*l l*C?, *+ 57plo-5r i? Br55 6o r5A,l*65, *99or3i+A 6o :i? oC+ 3i?9r56io+ *+3
@,3A75+6, *ll *?p596? oB 57plo-75+6*> 7emphasis supplied8
On the fourth issue in'ol'ing the 'oluntar( arbitratorIs ruling that on the basis of the Cni'ersit(Is
proposed budget# the Cni'ersit( can no longer be re:uired to grant a second round of )age
increases for the school (ears $%%$/%! and $%%!/%9 and charge the same to the incremental
proceeds# )e find that the 'oluntar( arbitrator committed gra'e abuse of discretion amounting to lack
or eEcess of <urisdiction* s )e ruled in the case of CalteE Refiner( 6mplo(ees ssociation 7CR68
's* Bose S* 1rillantes,
[%']
>EEE EEE* 3)4e belie'e that the standard proof of a compan(2s financial
standing is its financial statements dul( audited b( independent and credible eEternal
auditors*>
3?94
Financial statements audited b( independent eEternal auditors constitute the normal
method of proof of profit and loss performance of a compan(*
3?&4
The financial capabilit( of a compan(
cannot be based on its proposed budget because a proposed budget does not reflect the true
financial condition of a compan(# unlike audited financial statements# and more importantl(# the use
of a proposed budget as proof of a compan(Is financial condition )ould be susceptible to abuse b(
scheming emplo(ers )ho might be merel( feigning dire financial condition in their business 'entures
in order to a'oid granting salar( increases and fringe benefits to their emplo(ees*
On the fifth issue in'ol'ing the CnionIs proposals on the deloading of the union president# impro'ed
lea'e benefits and indefinite union lea'e )ith pa(# )e agree )ith the 'oluntar( arbitratorIs re<ection
of the said demands# there being no <ustifiable reason for the granting of the same* Nc/mmis
On the siEth issue regarding the finding that the multi/sectoral committee in the Cni'ersit( is the
legitimate group )hich determines and scrutini.es the annual salar( increases and fringe benefits of
the emplo(ees of the Cni'ersit(# the Court finds that the 'oluntar( arbitrator did not gra'el( abuse
his discretion on this matter* From our reading of the assailed decision# it appears that during the
partiesI negotiations for a ne) collecti'e bargaining agreement# the Cnion demanded for a !;N and
&=N salar( increase for the second and third (ears# respecti'el(# of the collecti'e bargaining
agreement*
3?;4
The Cni'ersit(Is counter/proposal )as for a $=N increase for the third (ear*
3??4
fter the
meeting of the multi/sectoral committee on budget# )hich is composed of students# parents# facult(#
administration and union# the Cni'ersit( granted across/the/board salar( increases of $$*9N and
$%N for the second and third (ears# respecti'el(*
3?@4
+hile the 'oluntar( arbitrator found that the said
committee >Rdecided to grant the said increases based on the Cni'ersit(Is 'iabilit( )hich )ere
eEclusi'el( sourced from the tuition fees* EEE EEE*#> no finding )as made as to the basis of the
committeeIs decision* 1e that as it ma(# assuming for the sake of argument that the said committee
is the group responsible for determining )age increases and fringe benefits# as ruled b( the
'oluntar( arbitrator# the committeeIs determination must still be based on dul( audited financial
statements follo)ing our ruling on the fourth issue*
On the se'enth and last issue in'ol'ing the ruling that the @=N share in the incremental tuition
proceeds is the onl( source of salar( increases and fringe benefits of the emplo(ees# the Court
deems that an( determination of this alleged error is unnecessar( and irrele'ant# in 'ie) of our
rulings on the fourth and preceding issues and there being no e'idence presented before the
'oluntar( arbitrator that the Cni'ersit( held incremental tuition fee proceeds from )hich an( )age
increase or fringe benefit ma( be satisfied*
'"ERE(ORE# premises considered# the petitions in these consolidated cases# D*R* No* $=%==!
and D*R* No* $$==@! are partiall( DRNT6D* The assailed decision dated Banuar( $%# $%%9 of
'oluntar( arbitrator 1uena'entura -agsalin is hereb( FFIR-6D )ith the modification that the issue
on salar( increases for the second and third (ears of the collecti'e bargaining agreement be
R6-ND6D to the 'oluntar( arbitrator for definite resolution )ithin one month from the finalit( of this
Decision# on the basis of the eEternall( audited financial statements of the Cni'ersit( alread(
submitted b( the Cnion before the 'oluntar( arbitrator and forming part of the records* Scnc/m
SO OR$ERE$.