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In 9e'r&ar) !(((, Phi#'an< 3erge+ wi,h G#$'a# B&siness Ban<, Inc. =G#$'a#'an<?, wi,h ,he
%$r3er as ,he s&rviving c$r*$ra,i$n an+ ,he #a,,er as ,he a's$r'e+ c$r*$ra,i$n, '&, ,he 'an<
$*era,e+ &n+er ,he na3e G#$'a# B&siness Ban<, Inc. As a res&#, $% ,he 3erger, c$3*#ainan,sG
res*ec,ive *$si,i$ns 'eca3e re+&n+an,. A S*ecia# Se*ara,i$n Pr$gra3 =SSP? was i3*#e3en,e+
an+ ,he *e,i,i$ners were gran,e+ a se*ara,i$n *ac<age eA&iva#en, ,$ $ne an+ a ha#% 3$n,hGs
*a) =$r 12(V $% $ne 3$n,hGs sa#ar)? %$r ever) )ear $% service 'ase+ $n ,heir c&rren, sa#ar).
Be%$re ,he *e,i,i$ners c$&#+ avai# $% ,his *r$gra3, ,he) were reA&ire+ ,$ sign ,w$ +$c&3en,s,
na3e#), an Acce*,ance Le,,er an+ a Re#ease, Waiver, D&i,c#ai3 =A&i,c#ai3?.
As ,heir *$si,i$ns were inc#&+e+ in ,he re+&n+anc) +ec#ara,i$n, ,he *e,i,i$ners avai#e+ $% ,he
SSP, signe+ acce*,ance #e,,ers an+ eFec&,e+ A&i,c#ai3s in G#$'a#'an<Gs %av$r in c$nsi+era,i$n
$% ,heir recei*, $% se*ara,i$n *a) eA&iva#en, ,$ 12(V $% ,heir 3$n,h#) sa#aries %$r ever) )ear
$% service.
S&'seA&en,#), ,he *e,i,i$ners J#e+ se*ara,e c$3*#ain,s %$r n$n5*a)3en, $% se*ara,i$n *a)
wi,h *ra)er %$r +a3ages an+ a,,$rne)Gs %ees 'e%$re ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n
=NLRC?
The *e,i,i$ners asser,e+ ,ha,, &n+er ,he :#+ P#an, ,he) were en,i,#e+ ,$ an a++i,i$na# 2(V $%
,heir gra,&i,) *a) $n ,$* $% 12(V $% $ne 3$n,hGs sa#ar) %$r ever) )ear $% service ,he) ha+
a#rea+) receive+. The) insis,e+ ,ha, 1((V $% ,he 12(V righ,%&##) 'e#$ngs ,$ ,he3 as ,heir
se*ara,i$n *a). Th&s, ,he re3aining 2(V was $n#) ha#% $% ,he gra,&i,) *a) ,ha, ,he) are
en,i,#e+ ,$ &n+er ,he :#+ P#an.
The *e,i,i$ners %&r,her arg&e+ ,ha, ,he A&i,c#ai3s ,he) signe+ sh$&#+ n$, 'ar ,he3 %r$3
c#ai3ing ,heir %&## en,i,#e3en, &n+er ,he #aw. The) a#s$ c#ai3e+ ,ha, ,he) were +e%ra&+e+ in,$
signing ,he sa3e wi,h$&, %&## <n$w#e+ge $% i,s #ega# i3*#ica,i$ns.
Iss&esL
The *e,i,i$ners are n$w 'e%$re ,his C$&r, raising ,he %$##$wing err$rs s&**$se+#) c$33i,,e+ ')
,he CAL
In h$#+ing ,ha, M,he 'an< ha+ a'an+$ne+ ,he $#+ *#anN =re%erring ,$ ,he $#+ Gra,&i,) Pa) P#an?
an+ re*#ace+ i, wi,h a S*ecia# Se*ara,i$n Pr$gra3 &n+er which /,he0 *e,i,i$ners Mw$&#+ 'e
receiving 3$re ,han ,he ra,e in ,he $#+ *#an an+ higher ,han ,he #ega# ra,e %$r re+&n+an,
e3*#$)ees.
In h$#+ing ,ha, ,he 'eneJ,s &n+er ,he S*ecia# Se*ara,i$n Pr$gra3 #ega##) re*#ace+ n$, $n#) ,he
gra,&i,) *a) *#an ,$ which /,he0 *e,i,i$ners were en,i,#e+ &n+er ,he $#+ an+ new Gra,&i,) Pa)
P#ans '&, a#s$ a## $,her 'eneJ,s inc#&+ing se*ara,i$n *a) &n+er ,he #aw.
In n$, h$#+ing ,ha, when /,he0 *e,i,i$ners were se*ara,e+ +&e ,$ re+&n+anc) ,he) were
en,i,#e+ *er *r$visi$n $% Ar,ic#e !1 $% ,he La'$r C$+e ,$ se*ara,i$n *a) eA&iva#en, ,$ $ne
3$n,h *a) %$r ever) )ear $% service.
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LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In h$#+ing ,ha, /,he0 *e,i,i$ners are '$&n+ &n+er ,he Acce*,ance an+ Re#ease, Waiver an+
D&i,c#ai3 ,ha, ,he) ha+ eFec&,e+ an+ /cann$,0 A&es,i$n ,he sa3e, hence ,he) /cann$,0 c#ai3
'eneJ,s in a++i,i$n ,$ ,h$se ,he) ha+ receive+ %r$3 ,he 'an<.
R&#ingL
The *e,i,i$nersG recei*, $% se*ara,i$n *a) eA&iva#en, ,$ ,heir $ne an+ a ha#% 3$n,hs sa#ar) %$r
ever) )ear $% service as *r$vi+e+ in ,he SSP an+ ,he New Gra,&i,) P#an 3$re ,han s&Icien,#)
c$3*#ies wi,h ,he La'$r C$+e, which $n#) reA&ires ,he *a)3en, $% se*ara,i$n *a) a, ,he ra,e
$% $ne 3$n,h sa#ar) %$r ever) )ear $% service.
G#$'a#'an<Gs righ, ,$ re*#ace ,he :#+ P#an an+ ,he New Gra,&i,) P#an is wi,hin #ega# '$&n+s as
,he ,er3s ,here$% are in acc$r+ance wi,h ,he *r$visi$ns $% ,he La'$r C$+e an+ c$3*#ies wi,h
,he 3ini3&3 reA&ire3en,s ,here$%.
C$n,rar) ,$ ,he *e,i,i$nersG c#ai3, ,he) ha+ n$ ves,e+ righ, $ver ,he 'eneJ,s &n+er ,he :#+
P#an c$nsi+ering ,ha, n$ne $% ,he even,s c$n,e3*#a,e+ ,here&n+er $cc&rre+ *ri$r ,$ ,he re*ea#
,here$% ') ,he a+$*,i$n $% ,he New Gra,&i,) P#an. S&ch righ, accr&es $n#) &*$n ,heir
se*ara,i$n %r$3 service %$r ca&ses c$n,e3*#a,e+ &n+er ,he :#+ P#an an+ ,he *e,i,i$ners can
$n#) avai# ,he 'eneJ,s &n+er ,he *#an ,ha, is eKec,ive a, ,he ,i3e $% ,heir +is3issa#. In ,his
case, when ,he 3erger an+ ,he re+&n+anc) *r$gra3 were i3*#e3en,e+, wha, was in eKec,
were ,he New Gra,&i,) P#an an+ ,he SSPO ,he *e,i,i$ners cann$,, ,h&s, insis, $n ,he *r$visi$ns
$% ,he :#+ P#an which is n$ #$nger eFis,en,.
The SSP +i+ n$, rev$<e $r s&*erse+e ,he New Gra,&i,) P#an.
The SSP was n$, in,en+e+ ,$ s&*erse+e ,he New Gra,&i,) P#an. :n ,he c$n,rar), ,he SSP was
iss&e+ ,$ 3a<e ,he 'eneJ,s &n+er ,he New Gra,&i,) P#an avai#a'#e ,$ e3*#$)ees wh$se
*$si,i$ns ha+ 'ec$3e re+&n+an, 'eca&se $% ,he 3erger 'e,ween Phi#'an< an+ G#$'a#'an<,
s&'Eec, ,$ c$3*#iance wi,h cer,ain reA&ire3en,s s&ch as age an+ #eng,h $% service, an+ ,$
i3*r$ve s&ch 'eneJ,s ') increasing $r r$&n+ing i, &* ,$ an a3$&n, eA&iva#en, ,$ ,he aKec,e+
e3*#$)eesG $ne an+ a ha#% 3$n,h#) sa#ar) %$r ever) )ear $% service. In $,her w$r+s, ,he
'eneJ,s ,$ which ,he re+&n+a,e+ e3*#$)ees are en,i,#e+ ,$, inc#&+ing ,he *e,i,i$ners, are ,he
'eneJ,s &n+er ,he New Gra,&i,) P#an, a#'ei, increase+ ') ,he SSP.
C$nsi+ering ,ha, ,he New Gra,&i,) P#an s,i## s,an+s an+ has n$, 'een rev$<e+ ') ,he SSP, +$es
,his 3ean ,ha, ,he *e,i,i$ners can c#ai3 ,he 'eneJ,s ,here&n+er in a++i,i$n ,$ $r $n ,$* $%
wha, is reA&ire+ &n+er ,he Ar,ic#e !1 $% ,he La'$r C$+eW
9$r as #$ng as ,he 3ini3&3 reA&ire3en,s $% ,he La'$r C$+e are 3e,, i, is wi,hin ,he
3anage3en, *rer$ga,ives $% e3*#$)ers ,$ c$3e &* wi,h se*ara,i$n *ac<ages ,ha, wi## 'e
given in #ie& $% wha, is *r$vi+e+ &n+er ,he La'$r C$+e.
Ar,ic#e !1 $% ,he La'$r C$+e *r$vi+es $n#) ,he reA&ire+ 3ini3&3 a3$&n, $% se*ara,i$n *a),
which e3*#$)ees +is3isse+ %$r an) $% ,he a&,h$ri4e+ ca&ses are en,i,#e+ ,$ receive.
E3*#$)ers, ,here%$re, have ,he righ, ,$ crea,e *#ans, *r$vi+ing %$r se*ara,i$n *a) in an
a3$&n, $ver an+ a'$ve wha, is i3*$se+ ') Ar,ic#e !1. There is n$,hing ,herein ,ha, *r$hi'i,s
e3*#$)ers an+ e3*#$)ees %r$3 c$n,rac,ing $n ,he ,er3s $% e3*#$)3en,, $r %r$3 en,ering in,$
agree3en,s $n e3*#$)ee 'eneJ,s, s$ #$ng as ,he) +$ n$, vi$#a,e ,he La'$r C$+e $r an) $,her
#aw, an+ are n$, c$n,rar) ,$ 3$ra#s, g$$+ c&s,$3s, *&'#ic $r+er, $r *&'#ic *$#ic).
In ,he a'sence $% *r$$% ,ha, an) $% ,he vices $% c$nsen, are *resen,, ,he *e,i,i$nersG
acce*,ance #e,,ers an+ A&i,c#ai3s are va#i+O ,h&s, 'arring ,he3 %r$3 c#ai3ing a++i,i$na#
se*ara,i$n *a).
The C$&r,, in $,her cases, has &*he#+ A&i,c#ai3s i% %$&n+ ,$ c$3*#) wi,h ,he %$##$wing
reA&isi,esL =1? ,he e3*#$)ee eFec&,es a +ee+ $% A&i,c#ai3 v$#&n,ari#)O =!? ,here is n$ %ra&+ $r
+ecei, $n ,he *ar, $% an) $% ,he *ar,iesO =? ,he c$nsi+era,i$n $% ,he A&i,c#ai3 is cre+i'#e an+
Page ((
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
reas$na'#eO an+ =.? ,he c$n,rac, is n$, c$n,rar) ,$ #aw, *&'#ic $r+er, *&'#ic *$#ic), 3$ra#s $r
g$$+ c&s,$3s $r *reE&+icia# ,$ a ,hir+ *ers$n wi,h a righ, rec$gni4e+ ') #aw.
We h$#+ ,ha, Me,r$'an< cann$, 'e he#+ #ia'#e %$r ,he *e,i,i$nersG c#ai3s.
9*. Real&a vs. New Age Gra%hics !nc., G.R. No. 19219", A%ril 2., 2"12
9ac,sL
Pe,i,i$ner Rea#+a was +is3isse+ ') Res*$n+en, New Age Gra*hics Inc. %$r &nE&s,iJe+ re%&sa#
,$ ren+er $ver,i3e w$r<, &neF*#aine+ %ai#&re ,$ $'serve *rescri'e+ w$r< s,an+ar+s, ha'i,&a#
,ar+iness an+ chr$nic a'sen,eeis3 +es*i,e warning an+ n$n5c$3*#iance wi,h ,he +irec,ive %$r
hi3 ,$ eF*#ain his n&3er$&s &na&,h$ri4e+ a'sences. The C$&r, $% A**ea#s rec$gni4e+ ,he
eFis,ence $% E&s, ca&ses %$r *e,i,i$nerGs +is3issa#, h$wever, ,he a**e##a,e c$&r, %$&n+ ,ha, ,he
res*$n+en, %ai#e+ ,$ $'serve ,he *r$ce+&ra# reA&ire3en,s $% +&e *r$cess an+, as a
c$nseA&ence, awar+e+ ,he *e,i,i$ner P2,(((.(( as N$3ina# 7a3ages.
Iss&esL
W$N ,he +is3issa# 'ase+ $n ,he gr$&n+s ci,e+ c$ns,i,&,e+ E&s, ca&sesO an+
W$N ,he a3$&n, awar+e+ as N$3ina# 7a3ages $% P2,(((.(( was va#i+
R&#ingL
3irst, ,he *e,i,i$nerGs ar'i,rar) +eJance ,$ Gra*hics, Inc.Gs $r+er %$r hi3 ,$ ren+er $ver,i3e
w$r< c$ns,i,&,es wi##%&# +is$'e+ience. Ta<ing ,his in c$nE&nc,i$n wi,h his inc#ina,i$n ,$ a'sen,
hi3se#% an+ ,$ re*$r, #a,e %$r w$r< +es*i,e 'eing *revi$&s#) *ena#i4e+, ,he CA c$rrec,#) r&#e+
,ha, ,he *e,i,i$ner is in+ee+ &,,er#) +eJan, $% ,he #aw%&# $r+ers an+ ,he reas$na'#e w$r<
s,an+ar+s *rescri'e+ ') his e3*#$)er.
Seond, ,he *e,i,i$nerGs %ai#&re ,$ $'serve Gra*hics, Inc.Gs w$r< s,an+ar+s c$ns,i,&,es
ineIcienc) ,ha, is a va#i+ ca&se %$r +is3issa#. 9ai#&re ,$ $'serve *rescri'e+ s,an+ar+s $%
w$r<, $r ,$ %&#J## reas$na'#e w$r< assign3en,s +&e ,$ ineIcienc) 3a) c$ns,i,&,e E&s, ca&se
%$r +is3issa#. S&ch ineIcienc) is &n+ers,$$+ ,$ 3ean %ai#&re ,$ a,,ain w$r< g$a#s $r w$r<
A&$,as, ei,her ') %ai#ing ,$ c$3*#e,e ,he sa3e wi,hin ,he a##$,e+ reas$na'#e *eri$+, $r ')
*r$+&cing &nsa,is%ac,$r) res&#,s. As ,he $*era,$r $% Gra*hics, Inc.Gs *rin,er, he is 3an+a,e+ ,$
chec< whe,her ,he c$#$rs ,ha, w$&#+ 'e *rin,e+ are in acc$r+ance wi,h ,he c#ien,Gs
s*eciJca,i$ns an+ %$r hi3 ,$ +$ s$, he 3&s, c$ns&#, ,he Genera# Manager an+ ,he c$#$r g&i+e
&se+ ') Gra*hics, Inc. 'e%$re 3a<ing a %&## r&n. >n%$r,&na,e#), he %ai#e+ ,$ $'serve ,his si3*#e
*r$ce+&re an+ *r$cee+e+ ,$ *rin, wi,h$&, 3a<ing s&re ,ha, ,he c$#$rs were a, *ar wi,h ,he
c#ien,Gs +e3an+s. This res&#,e+ ,$ +e#a)s in ,he +e#iver) $% $&,*&,, c#ien, +issa,is%ac,i$n, an+
a++i,i$na# c$s,s $n Gra*hics, Inc.Gs *ar,.
Whi#e a *ena#,) in ,he %$r3 $% s&s*ensi$n ha+ a#rea+) 'een i3*$se+ $n ,he *e,i,i$ner %$r his
ha'i,&a# ,ar+iness an+ re*ea,e+ a'sen,eeis3, ,he *rinci*#e $% M,$,a#i,) $% in%rac,i$nsN
sanc,i$ns ,he ac, $% Gra*hics, Inc. $% c$nsi+ering s&ch *revi$&s in%rac,i$ns in +ecreeing
+is3issa# as ,he *r$*er *ena#,) %$r his ,ar+iness an+ &na&,h$ri4e+ a'sences inc&rre+
a%,erwar+s, in a++i,i$n ,$ his re%&sa# ,$ ren+er $ver,i3e w$r< an+ c$n%$r3 ,$ ,he *rescri'e+
w$r< s,an+ar+s.
This C$&r, cann$, #i<ewise agree ,$ ,he *e,i,i$nerGs a,,e3*, ,$ 'r&sh asi+e his re%&sa# ,$
ren+er $ver,i3e w$r< as inc$nseA&en,ia# when Gra*hics, Inc.Gs $r+er %$r hi3 ,$ +$ s$ is
E&s,iJe+ ') Gra*hics, Inc.Gs c$n,rac,&a# c$33i,3en,s ,$ i,s c#ien,s. S&ch an $r+er is #ega#
Page (1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
&n+er Ar,ic#e 19 $% ,he La'$r C$+e an+ ,he *e,i,i$nerGs &neF*#aine+ re%&sa# ,$ $'e) is
ins&'$r+ina,i$n ,ha, 3eri,s +is3issa# %r$3 service.
N$ne,he#ess, whi#e ,he CA Jn+ing ,ha, ,he *e,i,i$ner is en,i,#e+ ,$ n$3ina# +a3ages as his
righ, ,$ *r$ce+&ra# +&e *r$cess was n$, res*ec,e+ +es*i,e ,he *resence $% E&s, ca&ses %$r his
+is3issa# is aIr3e+, ,his C$&r, Jn+s ,he CA ,$ have erre+ in JFing ,he a3$&n, ,ha, ,he
C$3*an) is #ia'#e ,$ *a). The CA sh$&#+ have ,a<en c$gni4ance $% ,he n&3er$&s cases
+eci+e+ ') ,his C$&r, where ,he a3$&n, $% n$3ina# +a3ages was JFe+ a, P(,(((.(( i% ,he
+is3issa# was %$r a E&s, ca&se.
9.. Ha:a/%i an& !(s Me/ers 3anuelos vs. Hings%oin( #E%ress 8 Logis(ics, G.R. No.
19*-13, A%ril 2., 2"12
9ac,sL
Pe,i,i$ners were %$r3er +rivers $% ,he res*$n+en, Hings*$in, EF*ress, a s$#e *r$*rie,$rshi*
&n+er ,he na3e $% C$ which is engage+ in ,he '&siness $% ,rans*$r,ing g$$+s. The) were
+is3isse+ %r$3 service $n 6an&ar) !(, !((- $n ,he gr$&n+s $% seri$&s 3isc$n+&c,, +ish$nes,),
#$ss $% ,r&s, an+ c$nJ+ence an+ c$33issi$n $% ac,s ini3ica# ,$ ,he in,eres, $% Hings*$in,
EF*ress.
Hings*$in, EF*ress iss&e+ se*ara,e n$,ices ,$ eF*#ain ,$ ,he in+ivi+&a# *e,i,i$ners $n 6an&ar)
1-, !((- ,he charges $% +ish$nes,), seri$&s 3isc$n+&c, an+ #$ss $% c$nJ+ence ') J#ing wi,h
,he NLRC %a#se, 3a#ici$&s an+ %a'rica,e+ cases agains, ,he c$3*an), an+ ,heir a##ege+#)
&nwarran,e+ re%&sa# ,$ &n+erg$ +r&g ,es,ing. The) were reA&ire+ ,$ s&'3i, ,heir answer ,$ ,he
charges wi,hin %$r,)5eigh, =.1? h$&rs %r$3 recei*, $% ,he n$,ices wi,h a warning ,ha, %ai#&re ,$
+$ s$ w$&#+ 3ean waiver $% ,heir answer. The) were a#s$ *#ace+ &n+er *reven,ive s&s*ensi$n
in ,he 3ean,i3e.
Pe,i,i$ners %ai#e+ ,$ s&'3i, ,heir wri,,en eF*#ana,i$n wi,hin ,he s,a,e+ *eri$+. S&'seA&en,#),
Hings*$in, EF*ress iss&e+ ,$ ,he3 se*ara,e )e, &ni%$r3#) w$r+e+ n$,ices $n 6an&ar) !(, !((-,
in%$r3ing ,he3 $% ,heir +is3issa# %$r ,he a'$ve3en,i$ne+ charges 'ase+ $n ,he %$##$wing ac,sL
%a'rica,i$n $% 'ase#ess 3$ne) c#ai3s agains, ,he c$3*an), 3is#ea+ing %e##$w c$5w$r<ers ,$
sign ,he 3a#ici$&s c$3*#ain, %$r 3$ne) c#ai3s agains, ,he c$3*an), re%&sa# ,$ &n+erg$ ,he
c$3*an)Ss genera# +r&g ,es,, an+ eF,$r,ing 3$ne) %r$3 c$5w$r<ers ,$ %&n+ ac,ivi,ies ,ha, ,he)
were never %&##) in%$r3e+ $%. A#s$, *e,i,i$ner 7acara was +is3isse+ %$r c$ns&33a,ing his
seF&a# re#a,i$ns wi,h C$Gs he#*er insi+e her resi+ence an+ ,h&s i3*regna,ing ,he he#*.
A c$3*#ain, %$r i##ega# +is3issa# was s&'seA&en,#) J#e+, a##eging ,ha, ,he charges agains,
,he3 were %a'rica,e+ an+ ,ha, ,heir +is3issa# was *r$3*,e+ ') Hings*$in, EF*ressS aversi$n
,$ ,heir &ni$n ac,ivi,ies. The La'$r Ar'i,er r&#e+ in %av$r $% ,he *e,i,i$ners as ,he charges are
*&r*$r,e+#) 3ere &ns&'s,an,ia,e+ a##ega,i$ns. This was aIr3e+ ') ,he NLRC $n a**ea# '&,
,he #a,,er reverse+ i,se#% $n a s&'seA&en, MR J#e+ ') Hings*$in,. The CA ini,ia##) reverse+ ,he
NLRCGs r&#ing '&, $n an MR, ,he) ,$$ reverse+ ,heir ear#ier r&#ing an+ %av$re+ Hings*$in,.
Th&s, ,his *e,i,i$n %$r cer,i$rari 'e%$re ,he SC.
Iss&eL
W:N ,he +is3issa# was va#i+.
R&#ingL
Page (!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
@es, ,he +is3issa# was va#i+. I, is %&n+a3en,a# ,ha, in $r+er ,$ va#i+#) +is3iss an e3*#$)ee, ,he
e3*#$)er is reA&ire+ ,$ $'serve '$,h s&'s,an,ive an+ *r$ce+&ra# +&e *r$cess ` ,he
,er3ina,i$n $% e3*#$)3en, 3&s, 'e 'ase+ $n a E&s, $r a&,h$ri4e+ ca&se an+ ,he +is3issa#
3&s, 'e eKec,e+ a%,er +&e n$,ice an+ hearing.
As ,$ ,he s&'s,an,ive reA&ire3en,s $% +&e *r$cess, ,he e3*#$)eesS re%&sa# ,$ s&'3i,
,he3se#ves ,$ +r&g ,es, is a E&s, ca&se %$r ,heir +is3issa#. An e3*#$)er 3a) ,er3ina,e an
e3*#$)3en, $n ,he gr$&n+ $% seri$&s 3isc$n+&c, $r wi##%&# +is$'e+ience ') ,he e3*#$)ee $%
,he #aw%&# $r+ers $% his e3*#$)er $r re*resen,a,ive in c$nnec,i$n wi,h his w$r<. Wi##%&#
+is$'e+ience reA&ires ,he c$nc&rrence $% ,w$ e#e3en,sL =1? ,he e3*#$)eeSs assai#e+ c$n+&c,
3&s, have 'een wi##%&#, ,ha, is, charac,eri4e+ ') a wr$ng%&# an+ *erverse a,,i,&+eO an+, =!? ,he
$r+er vi$#a,e+ 3&s, have 'een reas$na'#e, #aw%&#, 3a+e <n$wn ,$ ,he e3*#$)ee, an+ 3&s,
*er,ain ,$ ,he +&,ies which he ha+ 'een engage+ ,$ +ischarge. B$,h e#e3en,s are *resen, in
,his case.
As ,$ ,he Jrs, e#e3en,, ,he +is3isse+ e3*#$)ees +i+ n$, +en) ,heir re%&sa# ,$ &n+erg$ +r&g
,es,ing n$r +i+ ,he) eF*#ain ,heir re%&sa#. The &,,er #ac< $% reas$n $r E&s,iJca,i$n %$r ,heir
ins&'$r+ina,i$n in+ica,es ,ha, i, was *r$3*,e+ ') 3ere $'s,inac), hence, wi##%&# an+
warran,ing $% +is3issa#. As ,$ ,he sec$n+ e#e3en,, ,he s&'Eec, $r+er is re#evan, in ,he
*er%$r3ance $% ,heir %&nc,i$ns as +rivers $% Hings*$in, EF*ress. As ,he NLRC c$rrec,#) *$in,e+
$&,, +rivers are in+is*ensa'#e ,$ Hings*$in, EF*ressS *ri3ar) '&siness $% ren+ering +$$r5,$5
+$$r +e#iver) services. I, is c$33$n <n$w#e+ge ,ha, ,he &se $% +anger$&s +r&gs has a+verse
eKec,s $n +riving a'i#i,ies ,ha, 3a) ren+er ,he +is3isse+ e3*#$)ees inca*a'#e $% *er%$r3ing
,heir +&,ies ,$ Hings*$in, EF*ress an+ ac,ing agains, i,s in,eres,s, in a++i,i$n ,$ ,he ,hrea,
,he) *$se ,$ ,he *&'#ic.
The eFis,ence $% a sing#e E&s, ca&se is en$&gh ,$ $r+er ,heir +is3issa# an+ i, is n$w
inc$nseA&en,ia# i% ,he $,her charges agains, ,he3 +$ n$, 3eri, ,heir +is3issa# %r$3 service.
N$ne,he#ess, whi#e Hings*$in, EF*ress ha+ reas$n ,$ sever ,heir e3*#$)3en, re#a,i$ns, ,his
C$&r, Jn+s i,s s&**$se+ $'servance $% ,he reA&ire3en,s $% *r$ce+&ra# +&e *r$cess
*re,en,i$&s. Whi#e Hings*$in, EF*ress reA&ire+ ,he +is3isse+ e3*#$)ees ,$ eF*#ain ,heir
re%&sa# ,$ s&'3i, ,$ a +r&g ,es,, ,he ,w$ =!? +a)s aK$r+e+ ,$ ,he3 ,$ +$ s$ cann$, A&a#i%) as
Preas$na'#e $**$r,&ni,)P, which ,he C$&r, c$ns,r&e+ in Ling of Lings *ransport, (n. v.
4ama as a *eri$+ $% a, #eas, Jve =2? ca#en+ar +a)s %r$3 recei*, $% ,he n$,ice.
Th&s, even i% Hings*$in, EF*ressS +e%ec,ive a,,e3*, ,$ c$3*#) wi,h *r$ce+&ra# +&e *r$cess
+$es n$, nega,e ,he eFis,ence $% a E&s, ca&se %$r ,heir +is3issa#, Hings*$in, EF*ress is s,i##
#ia'#e ,$ in+e3ni%) ,he +is3isse+ e3*#$)ees, wi,h ,he eFce*,i$n $% Pan&e#$s, 7i4$n an+
7i3a'a)a$, wh$ +i+ n$, a**ea# ,he +is3issa# $% ,heir c$3*#ain,s, wi,h n$3ina# +a3ages in ,he
a3$&n, $% P(,(((.((.
Page (
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
SUSPENSION O BUSINESS OPERATIONS
1. 23L Mar:e(ing 3ro/o(ion vs. Cour( of A%%eals, G.R. No. 1.19)), 2ul$ -, 2"".
9ac,sL
Pe,i,i$ner is ,he e3*#$)er $% *riva,e res*$n+en,s G$n4a#es, A'esa an+ Anini*$,. The ,hree are
assigne+ as a,,en+an,s in vari$&s Jr3s where ,he *r$+&c,s $% Ca#i%$rnia Mar<e,ing C$r*., $ne
$% *e,i,i$nerGs c#ien,s, are 'eing +is*#a)e+.
:n 1 A&g&s, 199-, *e,i,i$ner iss&e+ a 3e3$ran+&3 ,$ ,he ,hree e3*#$)ees in%$r3ing ,he3
,ha, CMC w$&#+ s,$* i,s +irec, 3erchan+ising ac,ivi,) a%,er ,w$ +a)s. Pe,i,i$ner ,hen a+vise+
,he3 ,$ wai, %$r %&r,her n$,ice as ,he) w$&#+ 'e ,rans%erre+ ,$ $,her c#ien,s.
Wi,h$&, wai,ing %$r siF 3$n,hs, ,he ,hree g$, e3*#$)e+ wi,h s$3e $,her e3*#$)er. H$wever,
$n 1" :c,$'er 199-, A'esa an+ G$n4a#es J#e+ 'e%$re ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n
Regi$na# Ar'i,ra,i$n Branch =NLRC? c$3*#ain,s %$r i##ega# +is3issa#, *ra)ing %$r se*ara,i$n *a),
1,h 3$n,h *a), service incen,ive #eave *a) an+ *a)3en, %$r 3$ra# +a3ages. Anini*$, J#e+ a
si3i#ar case ,herea%,er.
The La'$r Ar'i,er +is3isse+ ,he c$3*#ain,. Priva,e res*$n+en,s a**ea#e+ ,$ ,he NLRC which
agree+ wi,h ,he La'$r Ar'i,erSs Jn+ing ,ha, when *riva,e res*$n+en,s J#e+ ,heir c$3*#ain,s,
,he siF53$n,h *eri$+ ha+ n$, )e, eF*ire+, an+ ,ha, CMCSs +ecisi$n ,$ s,$* i,s $*era,i$ns in ,he
areas was 'e)$n+ ,he c$n,r$# $% *e,i,i$ner, ,h&s, ,here was n$ i##ega# +is3issa# c$33i,,e+ ')
*e,i,i$ner.
Aggrieve+, *e,i,i$ner J#e+ a *e,i,i$n %$r cer,i$rari &n+er R&#e -2 $% ,he R&#es $% C$&r, wi,h ,he
C$&r, $% A**ea#s, i3*&,ing grave a'&se $% +iscre,i$n $n ,he *ar, $% ,he NLRC. I, c#ai3e+ ,ha,
*riva,e res*$n+en,s are n$, ') #aw en,i,#e+ ,$ se*ara,i$n *a), service incen,ive #eave *a) an+
1,h 3$n,h *a). The C$&r, $% A**ea#s +is3isse+ ,he *e,i,i$n an+ aIr3e+ in ,$,$ ,he NLRC
res$#&,i$n.
Iss&eL
Were ,he *riva,e res*$n+en,s i##ega##) +is3isse+ which w$&#+ en,i,#e ,he3 ,$ c#ai3 se*ara,i$n
*a)W
R&#ingL
The c$33$n +en$3ina,$r $% ,he ins,ances where *a)3en, $% se*ara,i$n *a) is warran,e+ is
,ha, ,he e3*#$)ee was +is3isse+ ') ,he e3*#$)er. In ,he ins,an, case, ,here was n$ +is3issa#
,$ s*ea< $%. Priva,e res*$n+en,s were si3*#) n$, +is3isse+ a, a##, whe,her #ega##) $r i##ega##).
Wha, ,he) receive+ %r$3 *e,i,i$ner was n$, a n$,ice $% ,er3ina,i$n $% e3*#$)3en,, '&, a
3e3$ in%$r3ing ,he3 $% ,he ,er3ina,i$n $% CMCSs c$n,rac, wi,h *e,i,i$ner. M$re i3*$r,an,#),
,he) were a+vise+ ,ha, ,he) were ,$ 'e reassigne+. A, ,ha, ,i3e, ,here was n$ severance $%
e3*#$)3en, ,$ s*ea< $%. In a++i,i$n, ,he +$c,rine en&ncia,e+ in ,he case $% Serran$ " ci,e+
') *riva,e res*$n+en,s has a#rea+) 'een a'an+$ne+ ') $&r r&#ing in Aga'$n v. Na,i$na# La'$r
Re#a,i$ns C$33issi$n. There we r&#e+ ,ha, an e3*#$)er is #ia'#e ,$ *a) in+e3ni,) in ,he %$r3
$% n$3ina# +a3ages ,$ a +is3isse+ e3*#$)ee i%, in eKec,ing s&ch +is3issa#, ,he e3*#$)er
%ai#e+ ,$ c$3*#) wi,h ,he reA&ire3en,s $% +&e *r$cess. H$wever, *riva,e res*$n+en,s are n$,
Page (.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
en,i,#e+ ,$ ,he *a)3en, $% +a3ages c$nsi+ering ,ha, ,here was n$ vi$#a,i$n $% +&e *r$cess in
,his case.
2. 3i&o vs NLRC, G.R. No. 1)9-12, 6eruar$ 23, 2""7
9ac,sL
9e+eri,$ B. Pi+$ was e3*#$)e+ ') Cher&'i3 Sec&ri,) an+ Genera# Services, Inc. as a sec&ri,)
g&ar+. He was assigne+ a, ,he A)a#a M&se&3, '&, was #a,er ,rans%erre+ ,$ ,he T$wer an+
EFchange P#a4a $% A)a#a Cen,er where he w$r<e+ as a c$3*&,er $*era,$r a, ,he C$ns$#e
R$$3. Li<e ,he $,her g&ar+s +e*#$)e+ ') res*$n+en, a, ,he A)a#a Cen,er, *e,i,i$ner was &n+er
,he $*era,i$na# c$n,r$# an+ s&*ervisi$n $% ,he A)a#a Sec&ri,) 9$rce =AS9? $% ,he A)a#a Gr$&* $%
C$3*anies.
:n 6an&ar) !1, !(((, *e,i,i$ner ha+ an a#,erca,i$n wi,h Richar+ A#can,ara $% ,he AS9, arising
%r$3 a s,a,e3en, $% A#can,ara ,ha, *e,i,i$nerGs sec&ri,) #icense %$r his .1 ca#i'er rev$#ver
service Jrear3 an+ +&,) +e,ai# $r+er ha+ a#rea+) eF*ire+. A#can,ara J#e+ a c$3*#ain, %$r Gr$ss
Misc$n+&c,, rec$33en+e+ ,ha, *e,i,i$ner 'e re#ieve+ %r$3 his *$s,, an+ ,ha, i33e+ia,e
+isci*#inar) ac,i$n agains, hi3 'e ,a<en.
Res*$n+en, ,h&s c$n+&c,e+ an inves,iga,i$n $n 6an&ar) !2, !((( +&ring which *e,i,i$ner
ech$e+ his ,a#e in his 6an&ar) !1, !((( in%$r3a,i$n re*$r,.
Pe,i,i$ner was #a,er ,$ c#ai3 ,ha, he was s&s*en+e+ ') res*$n+en, %$##$wing his arg&3en, wi,h
A#can,ara.
As 3$re ,han nine 3$n,hs ha+ e#a*se+ since ,he inves,iga,i$n was c$n+&c,e+ ') res*$n+en,
wi,h n$ ca,eg$rica# Jn+ings ,here$n 3a+e, *e,i,i$ner J#e+ $n :c,$'er !, !((( a c$3*#ain, %$r
i##ega# c$ns,r&c,ive +is3issa#, i##ega# s&s*ensi$n, an+ n$n5*a)3en, an+ &n+er*a)3en, $%
sa#aries, h$#i+a) *a), res, +a), service incen,ive #eave, 1,h 3$n,h *a), 3ea# an+ ,rave#
a##$wance an+ nigh, shi%, +iKeren,ia# agains, res*$n+en,, a#$ng wi,h i,s e3*#$)ee R$sari$ H.
Ba#ais wh$ was a##ege+#) res*$nsi'#e %$r r&nning ,he +a) ,$ +a) aKairs $% res*$n+en,Gs
'&siness. Pe,i,i$ner #i<ewise *ra)e+ %$r reins,a,e3en, an+ *a)3en, $% %&## 'ac<wages,
a,,$rne)Gs %ees an+ $,her 3$ne) c#ai3s.
In i,s *$si,i$n *a*er, res*$n+en, +enie+ ,ha, i, +is3isse+ *e,i,i$ner %r$3 ,he service, i,
c#ai3ing ,ha, whi#e i, was s,i## in ,he *r$cess $% inves,iga,ing ,he 6an&ar) !1, !((( inci+en,, i,
$Kere+ *e,i,i$ner an$,her assign3en, which he +ec#ine+, sa)ing Ppa$inga muna a+o /I wi## in
,he 3ean,i3e ,a<e a res,0.P
The La'$r Ar'i,er r&#e+ %$r se*ara,i$n *a). The NLRC, $n a**ea#, r&#e+ reins,a,e3en, wi,h$&,
gran,ing ,he $,her 3$ne,ar) c#ai3s. The r&#ing $% ,he NLRC was aIr3e+ ') ,he C$&r, $%
A**ea#s, hence ,he *e,i,i$n wi,h ,he S&*re3e C$&r,.
Iss&eL
1. Whe,her ,he *e,i,i$nerGs nine53$n,h s&s*ensi$n is ,an,a3$&n, ,$ c$ns,r&c,ive +is3issa#.
!. Whe,her ,he *e,i,i$ner sh$&#+ 'e *ai+ his 'ac<wages asi+e %r$3 his se*ara,i$n *a).
. Whe,her ,he *a)3en, $% se*ara,i$n *a) is 3$re via'#e ,han ,he $r+er $% reins,a,e3en,.
R&#ingL
Page (2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
i, is ga,here+ ,ha, res*$n+en, in,en+e+ ,$ *&, *e,i,i$ner &n+er *reven,ive s&s*ensi$n %$r an
in+eJni,e *eri$+ $% ,i3e *en+ing ,he inves,iga,i$n $% ,he c$3*#ain, agains, hi3. The a##$wa'#e
*eri$+ $% s&s*ensi$n in s&ch a case is n$, siF 3$n,hs '&, $n#) ( +a)s, %$##$wing Sec,i$ns 1
an+ 9 $% R&#e CCIII, B$$< 8 $% ,he :3ni'&s R&#es I3*#e3en,ing ,he La'$r C$+e =I3*#e3en,ing
R&#es?,
SEC. 1. Preven,ive s&s*ensi$n. 5 The e3*#$)er 3a) *#ace ,he w$r<er c$ncerne+ &n+er
*reven,ive s&s*ensi$n i% his c$n,in&e+ e3*#$)3en, *$ses a seri$&s an+ i33inen, ,hrea, ,$
,he #i%e $r *r$*er,) $% ,he e3*#$)er $r $% his c$5w$r<ers.
SEC. 9. Peri$+ $% s&s*ensi$n. 5 N$ *reven,ive s&s*ensi$n sha## #as, #$nger ,han ,hir,) =(? +a)s.
The e3*#$)er sha## ,herea%,er reins,a,e ,he w$r<er in his %$r3er $r in a s&'s,an,ia##)
eA&iva#en, *$si,i$n $r ,he e3*#$)er 3a) eF,en+ ,he *eri$+ $% s&s*ensi$n *r$vi+e+ ,ha, +&ring
,he *eri$+ $% eF,ensi$n, he *a)s ,he wages an+ $,her 'eneJ,s +&e ,$ ,he w$r<er. In s&ch case,
,he w$r<er sha## n$, 'e '$&n+ ,$ rei3'&rse ,he a3$&n, *ai+ ,$ hi3 +&ring ,he eF,ensi$n i% ,he
e3*#$)er +eci+es, a%,er c$3*#e,i$n $% ,he hearing, ,$ +is3iss ,he w$r<er.
Res*$n+en, +i+ n$, in%$r3 *e,i,i$ner ,ha, i, was eF,en+ing i,s inves,iga,i$n, n$r +i+ i, *a) hi3
his wages an+ $,her 'eneJ,s a%,er ,he #a*se $% ,he (5+a) *eri$+ $% s&s*ensi$n. Nei,her +i+
res*$n+en, iss&e an $r+er #i%,ing *e,i,i$nerGs s&s*ensi$n, $r an) $Icia# assign3en,,
3e3$ran+&3 $r +e,ai# $r+er %$r hi3 ,$ ass&3e his *$s, $r an$,her *$s,. Res*$n+en, 3ere#)
ch$se ,$ +aw+#e wi,h ,he inves,iga,i$n, in a's$#&,e +isregar+ $% *e,i,i$nerGs we#%are.
A, ,he ,i3e *e,i,i$ner J#e+ ,he c$3*#ain, %$r i##ega# s&s*ensi$n an+B$r c$ns,r&c,ive +is3issa#
$n :c,$'er !, !(((, *e,i,i$ner ha+ a#rea+) 'een *#ace+ &n+er *reven,ive s&s*ensi$n %$r nine
3$n,hs. The S&*re3e C$&r, r&#e+ ,ha, ,he *reven,ive s&s*ensi$n which #as,e+ %$r nine
3$n,hs a3$&n,e+ ,$ c$ns,r&c,ive +is3issa#.
Pe,i,i$ner, wh$ is a reg&#ar e3*#$)ee $% res*$n+en,, is en,i,#e+ ,$ reins,a,e3en, wi,h$&, #$ss
$% seni$ri,) an+ *a)3en, $% 'ac<wages %r$3 ,he ,i3e his c$3*ensa,i$n was wi,hhe#+ &* ,$
,he ,i3e $% his ac,&a# reins,a,e3en, ') vir,&e $% Ar,. !"9.
The C$&r, a#s$ r&#e+ ,ha, ,here eFis,s n$ eFce*,i$n ,$ ,he genera# r&#e ,ha, awar+ $%
se*ara,i$n *a) w$&#+ 'e *r$*er in #ie& $% reins,a,e3en,.
Res*$n+en, is $r+ere+ ,$ reins,a,e *e,i,i$ner ,$ge,her wi,h ,he *a)3en, $% ,he c$rres*$n+ing
'ac<wages.
3. Megaforce Securi($ 8 Allie& Services vs. Lac(ao, G.R. No. 1)"9*", 2ul$ 21, 2""-
9ac,sL
:n A*ri# !1, 1991, Mega%$rce hire+ Lac,a$ as a sec&ri,) g&ar+. He was +e,ai#e+ a, Mervi##e
Par< S&'+ivisi$n in ParabaA&e Ci,). :n A*ri# ., !(((, he J#e+ wi,h ,he Ar'i,ra,i$n Branch $% ,he
NLRC a c$3*#ain, agains, Mega%$rce %$r &n+er*a)3en, $% wages, n$n5*a)3en, $% $ver,i3e
*a), service incen,ive #eave *a) an+ 1,h 3$n,h *a). :n Ma) , !(((, Lac,a$ was reassigne+
,$ ABB In+&s,r), Inc. in S&ca,, ParabaA&e Ci,) '&, wasa reca##e+ ') Mega%$rce +irec,ing hi3 ,$
re*$r, ,$ ,he Hea+A&ar,ers %$r *r$*er +is*$si,i$n an+ new assign3en,.
Page (-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
When Lac,a$ re*$r,e+ ,$ ,he Hea+A&ar,ers '&, he was n$, given a new assign3en,. Be#ieving
he was ,er3ina,e+, Lac,a$ a3en+e+ his c$3*#ain, $n 6&ne ", !((( ,$ $ne %$r i##ega# +is3issa#
wi,h *ra)er %$r reins,a,e3en, wi,h ,he sa3e *ra)er %$r &n+er*a)3en, $% wages, n$n5*a)3en,
$% $ver,i3e *a), service incen,ive #eave *a) an+ 1,h 3$n,h *a), *#&s 3$ra# an+ eFe3*#ar)
+a3ages an+ a,,$rne)Ss %ees. Lac,a$ c#ai3s ,ha, in re,a#ia,i$n ,$ his J#ing $% ,he c$3*#ain,
Mega%$rce c$ns,r&c,ive#) +is3isse+ hi3 ') re#ieving hi3 %r$3 his *$s, an+ n$, giving hi3 a
new assign3en,.
In i,s P$si,i$n Pa*er , Mega%$rce +enie+ ,he i##ega# +is3issa# charge. The La'$r Ar'i,er
+is3isse+ ,he c$3*#ain, %$r #ac< $% 3eri,. :n a**ea#, ,he NLRC se, asi+e ,he LAGs +ecisi$n,
r&#ing ,ha, Lac,a$ was c$ns,r&c,ive#) +is3isse+. Hence, ,he *resen, *e,i,i$n.
Iss&eL
WHETHER :R N:T LACTA: WAS C:NSTR>CTI8EL@ 7ISMISSE7 MAHING THE 7ISMISSAL
ILLEGAL.
R&#ingL
Mega%$rce c$n,en+s ,ha, i, is n$, g&i#,) $% i##ega# +is3issa# 'eca&se Lac,a$ was 3ere#) reca##e+
%r$3 his *$s, an+ ,he %ai#&re ,$ give hi3 a new assign3en, wi,hin seven +a)s %r$3 his reca## is
n$, c$ns,r&c,ive +is3issa# 'eca&se a sec&ri,) g&ar+ 3a) 'e *#ace+ $n PT$a,ing s,a,&sP %$r a
*eri$+ n$, eFcee+ing siF 3$n,hs &n+er *revai#ing E&ris*r&+enceO Lac,a$ never re*$r,e+ 'ac<
%$r reassign3en, an+ his re%&sa# ,$ re*$r, 'ac< ,$ w$r< sh$&#+ n$, 'e ,a<en agains, i,.
Lac,a$ insis,s ,ha, he was c$ns,r&c,ive#) +is3isse+ when he was reca##e+ %r$3 his *$s, a, ABB
In+&s,r), Inc. wi,h$&, 'eing in%$r3e+ ,ha, he was 'eing *#ace+ $n PT$a,ing s,a,&sP $r given a
new assign3en,.
@ES. In cases inv$#ving sec&ri,) g&ar+s, a re#ie% an+ ,rans%er $r+er in i,se#% +$es n$, sever
e3*#$)3en, re#a,i$nshi* 'e,ween a sec&ri,) g&ar+ an+ his agenc). 1- An e3*#$)ee has ,he
righ, ,$ sec&ri,) $% ,en&re, '&, ,his +$es n$, give hi3 s&ch a ves,e+ righ, in his *$si,i$n as
w$&#+ +e*rive ,he c$3*an) $% i,s *rer$ga,ive ,$ change his assign3en, $r ,rans%er hi3 where
his service, as sec&ri,) g&ar+, wi## 'e 3$s, 'eneJcia# ,$ ,he c#ien,. Te3*$rar) P$K5+e,ai#P $r
,he *eri$+ $% ,i3e sec&ri,) g&ar+s are 3a+e ,$ wai, &n,i# ,he) are ,rans%erre+ $r assigne+ ,$ a
new *$s, $r c#ien, +$es n$, c$ns,i,&,e c$ns,r&c,ive +is3issa# as ,heir assign3en,s *ri3ari#)
+e*en+ $n ,he c$n,rac,s en,ere+ in,$ ') ,he sec&ri,) agencies wi,h ,hir+ *ar,ies. 11 In+ee+,
,he C$&r, has re*ea,e+#) rec$gni4e+ ,ha, P$K5+e,ai#ingP is n$, eA&iva#en, ,$ +is3issa#, s$ #$ng
as s&ch s,a,&s +$es n$, c$n,in&e 'e)$n+ a reas$na'#e ,i3eO when s&ch a PT$a,ing s,a,&sP
#as,s %$r 3$re ,han siF 3$n,hs, ,he e3*#$)ee 3a) 'e c$nsi+ere+ ,$ have 'een c$ns,r&c,ive#)
+is3isse+.
H$wever, in ,he *resen, case, whi#e ,he charge $% i##ega# +is3issa# 3a) have 'een *re3a,&re
'eca&se Lac,a$ has n$, 'een given a new assign3en, $r ,e3*$rar) P$K5+e,ai#P %$r a *eri$+ $%
seven +a)s $n#) when he a3en+e+ his c$3*#ain,, ,he c$n,in&e+ %ai#&re $% Mega%$rce ,$ $Ker
hi3 a new assign3en, +&ring ,he *r$cee+ings $% ,he case 'e%$re ,he LA an+ 'e)$n+ ,he
reas$na'#e siF53$n,h *eri$+ 3a<es i, #ia'#e %$r c$ns,r&c,ive +is3issa#.
There is c$ns,r&c,ive +is3issa# i% an ac, $% c#ear +iscri3ina,i$n, insensi'i#i,), $r +is+ain ') an
e3*#$)er 'ec$3es s$ &n'eara'#e $n ,he *ar, $% ,he e3*#$)ee ,ha, i, w$&#+ %$rec#$se an)
ch$ice ') hi3 eFce*, ,$ %$reg$ his c$n,in&e+ e3*#$)3en,. I, eFis,s where ,here is cessa,i$n $%
w$r< 'eca&se c$n,in&e+ e3*#$)3en, is ren+ere+ i3*$ssi'#e, &nreas$na'#e $r &n#i<e#), as an
$Ker inv$#ving a +e3$,i$n in ran< an+ a +i3in&,i$n in *a).
Page ("
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The C$&r, cann$, acce*, ,he c$n,en,i$n $% Mega%$rce ,ha, Lac,a$ +i+ n$, re*$r, ,$ w$r< a%,er
his reca## an+ ha+ a'an+$ne+ his E$' since i, %ai#e+ ,$ *resen, cre+i'#e *r$$% $% an) ac, $n ,he
*ar, $% Lac,a$ ,$ a'an+$n his e3*#$)3en,. M$re$ver, i, is a se,,#e+ +$c,rine ,ha, ,he J#ing $% a
c$3*#ain, %$r i##ega# +is3issa# is inc$nsis,en, wi,h a'an+$n3en, $% e3*#$)3en,. An e3*#$)ee
wh$ ,a<es s,e*s ,$ *r$,es, his +is3issa# cann$, #$gica##) 'e sai+ ,$ have a'an+$ne+ his w$r<.
The J#ing $% s&ch c$3*#ain, is *r$$% en$&gh $% his +esire ,$ re,&rn ,$ w$r<, ,h&s nega,ing an)
s&gges,i$n $% a'an+$n3en,.
>n+er Ar,ic#e !"9 $% ,he La'$r C$+e, as a3en+e+, an e3*#$)ee wh$ is &nE&s,#) +is3isse+ %r$3
w$r< sha## 'e en,i,#e+ ,$ reins,a,e3en, wi,h$&, #$ss $% seni$ri,) righ,s an+ $,her *rivi#egesO ,$
his %&## 'ac<wages, inc#&sive $% a##$wancesO an+ ,$ $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en,
c$3*&,e+ %r$3 ,he ,i3e his c$3*ensa,i$n was wi,hhe#+ %r$3 hi3 &* ,$ ,he ,i3e $% his ac,&a#
reins,a,e3en,. Th&s, Lac,a$ is en,i,#e+ ,$ reins,a,e3en, an+ 'ac<wages as a necessar)
c$nseA&ence.
*. Na(ional Mines an& Allie& >or:ers <nion vs. Marco%%er Mining Cor%., G.R. No.
17*)*1, Nov. 11, 2""-
9ac,sL
7e*ar,3en, $% Envir$n3en, an+ Na,&ra# Res$&rces =!%NR? $r+ere+ ,he in+eJni,e s&s*ensi$n
$% MARC:PPERSs $*era,i$ns %$r ca&sing +a3age ,$ ,he envir$n3en, $% ,he Pr$vince $%
Marin+&A&e ') s*i##ing ,he c$3*an)Ss 3ine was,e $r ,ai#ings %r$3 an $#+ &n+ergr$&n+
i3*$&n+ing area in,$ ,he B$ac River, in vi$#a,i$n $% i,s Envir$n3en,a# C$3*#iance Cer,iJca,e.
NAMAW> was ,he eFc#&sive 'argaining re*resen,a,ive $% ,he ran<5an+5J#e w$r<ers $%
MARC:PPER. J#e+ a c$3*#ain, wi,h ,he Regi$na# Ar'i,ra,i$n Branch agains, MARC:PPER %$r
n$n*a)3en, $% wages, se*ara,i$n *a), +a3ages, an+ a,,$rne)Ss %eesO ,he case is hereina%,er
re%erre+ ,$ as ,he Penvir$n3en,a# inci+en, case.PNAMAW> c#ai3e+ ,ha, +&e ,$ ,he in+eJni,e
s&s*ensi$n $% MARC:PPERSs $*era,i$ns, i,s 3e3'ers were n$, *ai+ ,he wages +&e ,he3 %$r
siF 3$n,hs =%r$3 A*ri# 1!, 199- ,$ :c,$'er 1!, 199-?. I, %&r,her c#ai3e+ ,ha, i,s 3e3'ers are
a#s$ en,i,#e+ ,$ 'e *ai+ ,heir se*ara,i$n *a) *&rs&an, ,$ ,heir c$##ec,ive 'argaining agree3en,
wi,h MARC:PPER.
MARC:PPER +enie+ #ia'i#i,), c$n,en+ing ,ha, NAMAW> ha+ n$, 'een a&,h$ri4e+ ') ,he
in+ivi+&a# e3*#$)ees 5 ,he rea# *ar,ies5in5in,eres, 5 ,$ J#e ,he c$3*#ain,O an+ ,ha, ,he
c$3*#ain, sh$&#+ 'e +is3isse+ %$r #ac< $% cer,iJca,i$n $% n$n5%$r&3 sh$**ing, %$r ,he
*en+enc) $% an$,her ac,i$n 'e,ween ,he sa3e *ar,ies, an+ %$r #ac< $% %ac,&a# an+ #ega# 'asis.
La'$r Ar'i,er Pe+r$ C. Ra3$s r&#e+ in NAMAW>Ss %av$r. MARC:PPER a**ea#e+ ,he +ecisi$n ,$
,he NLRC. In ,his a**ea#, i, a#s$ 3$ve+ ,ha, i, 'e a##$we+ n$, ,$ *$s, an a**ea# '$n+ %$r -12
NAMAW> 3e3'ers 5 %$r3er MARC:PPER e3*#$)ees wh$ ha+ 'een +is3isse+ eKec,ive March
", 1992 +&e ,$ an ear#ier i##ega# s,ri<e. MARC:PPER, h$wever, *$s,e+ ,he reA&ire+ '$n+ %$r
,hree n$n5s,ri<ing e3*#$)ees. The NLRC +is3isse+ MARC:PPERSs a**ea#. The NLRC
s&'seA&en,#) +enie+ MARC:PPERSs 3$,i$n %$r rec$nsi+era,i$n. MARC:PPER ,h&s s$&gh, re#ie%
%r$3 ,he CA ,hr$&gh a *e,i,i$n %$r ertiorari &n+er R&#e -2 $% ,he R&#es $% C$&r,. The CA
gran,e+ MARC:PPERSs *e,i,i$n in ,he c&rren,#) assai#e+ +ecisi$n *r$3&#ga,e+ $n :c,$'er 1.,
!((.. Acc$r+ing#), i, n&##iJe+ ,he NLRC res$#&,i$n $% 9e'r&ar) !1, !((! an+ ,he $r+er +a,e+
A*ri# 1-, !((!, an+ $r+ere+ ,he NLRC ,$ give +&e c$&rse ,$ MARC:PPERSs a**ea#. The CA
%$&n+ ,he n$n5J#ing $% ,he a**ea# '$n+ %$r ,he -12 NAMAW> 3e3'ers c$vere+ ') ,he La'$r
Page (1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Ar'i,erSs awar+ ,$ 'e E&s,iJe+ since ,heir e3*#$)3en, ha+ 'een ,er3ina,e+ as ear#) as March
", 1992, i.e., *ri$r ,$ ,he s&s*ensi$n $% $*era,i$ns %$r which wages an+ se*ara,i$n *a) were
'eing c#ai3e+. The CASs +enia# $% NAMAW>Ss 3$,i$n %$r ,he rec$nsi+era,i$n $% ,he CASs
:c,$'er 1., !((. +ecisi$n.
Iss&eLSL
1. W:N ,here is necessi,) %$r ,he J#ing $% an a**ea# '$n+ c$nsi+ering ,ha, ,he e3*#$)3en, $%
*e,i,i$ner NAMAW>Ss 3e3'ers was ,er3ina,e+ even 'e%$re ,he iss&ance ') ,he 7ENR $% i,s
$r+er $n A*ri# 1, 199-.
!. W:N ,he e3*#$)ees are en,i,#e+ ,$ ,heir wages +&e ,he3 %$r siF 3$n,hsW W:N ,he) are
en,i,#e+ ,$ se*ara,i$n *a)W
R&#ingL
:n ,he 9irs, Iss&e
The e3*#$)3en, $% ,he NAMAW> $Icers an+ 3e3'ers ha+ 'een +ec#are+ ,er3ina,e+ $n
March ", 1992 as a res&#, $% ,heir %ai#&re ,$ re,&rn ,$ w$r< a%,er ,heir s,ri<e $% 9e'r&ar) !",
1992. Therea%,er, ,he i##ega# s,ri<e #i,iga,i$n c$33ence+, res&#,ing in a +ecisi$n ') ,he NLRC
$n N$ve3'er 11, 199- +ec#aring ,he s,ri<e i##ega#.
MARC:PPER ha+ ever) reas$n ,$ c#ai3 in i,s A*ri# 1(, !((( a**ea# ,$ ,he NLRC ,ha, i, sh$&#+
'e eFc&se+ %r$3 J#ing an a**ea# '$n+ wi,h res*ec, ,$ ,he NAMAW> 3e3'ers wh$ were n$
#$nger c$3*an) e3*#$)ees. The CA +ecisi$n +ecreeing ,he ,er3ina,i$n $% e3*#$)3en, $%
,h$se inv$#ve+ in ,he i##ega# s,ri<e case ha+ a#rea+) 'een iss&e+ a, ,ha, ,i3e. We s&'seA&en,#)
r&#e+ $n ,he sa3e iss&e +&ring ,he ,i3e ,he envir$n3en,a# inci+en, case was *en+ing 'e%$re
,he NLRC. Th&s, when ,he NLRC +is3isse+ MARC:PPERSs a**ea# %$r %ai#&re ,$ J#e ,he reA&isi,e
a**ea# '$n+ c$rres*$n+ing ,$ ,he -12 NAMAW> 3e3'ers, ,he ,er3ina,i$n $% e3*#$)3en, $%
,hese NAMAW> 3e3'ers was a#rea+) a se,,#e+ 3a,,er ,ha, ,he NLRC was in n$ *$si,i$n ,$
+isregar+. In ,his #igh,, ,he CA was c$rrec, in reversing ,he +is3issa# $% MARC:PPERSs a**ea#
%$r %ai#&re ,$ J#e an a**ea# '$n+. P&rs&e+ ,$ i,s #$gica# en+, ,he CA c$nc#&si$ns sh$&#+ #ea+ ,$
,he +is3issa# $% NAMAW>Ss c$3*#ain, wi,h res*ec, ,$ i,s -12 *revi$&s#) +is3isse+ 3e3'ers.
:n ,he Sec$n+ Iss&e
The s&s*ensi$n $% MARC:PPERSs $*era,i$ns was +ecree+ in an EF5Par,e :r+er +a,e+ A*ri# 1,
199- iss&e+ ') ,he P$##&,i$n A+E&+ica,i$n B$ar+ $% ,he 7ENR. Se*ara,e#) %r$3 ,his :r+er, ,he
7ENR Secre,ar) $r+ere+ $n 6&ne !1, 199- ,he cance##a,i$n $% MARC:PPERSs ECC wi,h$&, which
MARC:PPER c$&#+ n$, c$n,in&e ,$ &n+er,a<e i,s 3ining $*era,i$ns. Th&s, as $% ,ha, +a,e =6&ne
!1, 199-?, ,he ,e3*$rar) s&s*ensi$n $% $*era,i$ns ,ha, s,ar,e+ $n A*ri# 1!, 199- 'eca3e
*er3anen, s$ ,ha, MARC:PPER +i+ n$, have ,$ wai, %$r ,he en+ $% ,he siF53$n,h s&s*ensi$n
$% $*era,i$ns 'e%$re ,he services $% ,he ,hree e3*#$)ees were +ee3e+ ,er3ina,e+. In La'$r
C$+e ,er3s, ,he cance##a,i$n $% ,he ECC $n 6&ne !1, 199- a3$&n,e+ ,$ a c$3*an) c#$s&re
g$verne+ ') Ar,ic#e !1 $% ,he La'$r C$+e 5 ,he *r$visi$n ,ha, g$verns ,he re#a,i$nshi* $%
e3*#$)ers an+ e3*#$)ees in c#$s&re si,&a,i$ns.
Whi#e ,he 3ine ,ai#ing #ea<age an+ *$##&,i$n $% ,he B$ac River cann$, '&, aKec, ,he hea#,h an+
sa%e,) $% ,h$se in ,he MARC:PPER vicini,), *ar,ic&#ar#) i,s e3*#$)ees, we Jn+ ,ha, ,he
7e*ar,3en, $% La'$r an+ E3*#$)3en, =!"L%? Regi$na# 7irec,$r 5 a, wh$se ini,ia,ive a
s&s*ensi$n $% $*era,i$n 3&s, $rigina,e %$r ,he a'$ve5A&$,e+ *r$visi$n ,$ a**#) 5 +i+ n$, ac, as
envisi$ne+ ') ,he a'$ve r&#e. S*eciJca##), ,here was n$ r&#ing $r +irec,ive %r$3 ,he 7:LE ,ha,
,he envir$n3en,a# inci+en, was a w$r<*#ace hea#,h an+ sa%e,) c$ncern ,ha, reA&ire+ a
Page (9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
s&s*ensi$n $% $*era,i$n. There is #i<ewise n$,hing in ,he #aws a**#ica'#e ,$ *$##&,i$n,
s*eciJca##), P.7. N$. 91. an+ P.7. N$. 121- an+ ,heir i3*#e3en,ing r&#es, ,ha, s*ea< $% ,he
c$nseA&ences $% a 7ENR5$r+ere+ s&s*ensi$n $% $*era,i$ns $n e3*#$)3en, re#a,i$nshi*s.
Nei,her +$es ,he CBA 'e,ween MARC:PPER an+ NAMAW> *r$vi+e %$r ,he c$nseA&ences $% a
s&s*ensi$n $% $*era,i$n +&e ,$ envir$n3en,a# ca&ses. Mnder t$e irumstanes, .e an onl&
onlude t$at t$e general 8no .or+, no pa&8 rule s$ould prevail .it$ respet to emplo&ees>
.ages during t$e suspension period, sub'et to e2isting CBA terms on leave redits and
similar bene-ts of emplo&ees.
Beca&se ,he ini,ia# s&s*ensi$n $% $*era,i$ns ,ha, ,he 7ENR i3*$se+ even,&a##) ,&rne+ in,$ an
inv$#&n,ar) c#$s&re as +isc&sse+ a'$ve, Ar,ic#e !1 $% ,he La'$r C$+e c$3es in,$ *#a) en,i,#ing
,he ,hree re3aining e3*#$)ees ,he *a)3en, $% se*ara,i$n *a) c$3*&,e+ &n+er ,he ,er3s $%
,ha, Ar,ic#e. The ,er3ina,i$n $% e3*#$)3en, +a,e, %$r se*ara,i$n *a) *&r*$ses, sh$&#+ 'e
c$3*&,e+ %r$3 6&ne !1, 199- an+ n$, %r$3 :c,$'er 1!, 199- =$r siF 3$n,hs %r$3 ,he A*ri# 1!,
199- s&s*ensi$n $% $*era,i$n +a,e?O 6&ne !1, 199- 3&s, 'e ,he c#$s&re +a,e as i, is %r$3 ,his
+a,e ,ha, MARC:PPER, ') #aw, cease+ ,$ have an) a&,h$ri,) ,$ c$n+&c, i,s 3ining $*era,i$ns.
In ,he a'sence $% an) sh$wing ,ha, NAMAW> c$&#+ re*resen, P$,her si3i#ar#) si,&a,e+
e3*#$)eesP wh$ are n$, i,s 3e3'ers, we cann$, c$nsi+er ,hese $,her e3*#$)ees =wh$se
circ&3s,ances have never 'een +isc&sse+ an+ wh$ a## re3ain &nna3e+? ,$ 'e c$vere+ ') ,he
,er3s $% ,his 7ecisi$n.
.. #agle S(ar Securi($ Services !nc. vs. Miran&o e( al., G.R. No. 179.12, 2ul$ 3",
2""9
9ac,sL
Miran+$, wh$ was hire+ ') Eag#e S,ar Sec&ri,) Services, Inc. as a sec&ri,) g&ar+ $n 6&#) !9,
199", was *$s,e+ a, ,he Her$es Hi## Branch $% EA&i,a'#e5PCI Ban< =n$w Banc$ +e :r$5EPCI
Ban<? wi,h a 9L(( a.3.5,$52L(( *.3. shi%, an+ a +ai#) wage $% P!2(.((.
:n 7ece3'er 1., !((1, res*$n+en, was 3a+e ,$ sign a +&,) sche+&#e %$r 7ece3'er 12 =a
Sa,&r+a)?. When he re*$r,e+ %$r w$r< $n 7ece3'er 12, !((1, he was ,$#+ ') ,he +e,ach3en,
c$33an+er, =En+enci$?, n$, ,$ re*$r, %$r +&,) *er ins,r&c,i$n $% ,he hea+ $Ice. Res*$n+en,
,h&s ca##e+ &* ,he hea+ $Ice an+ was ,ha, he was re3$ve+ %r$3 +&,) ') =Ag$+i##a?,
*e,i,i$nerGs $*era,i$ns 3anager.As res*$n+en, was ,herea%,er n$ #$nger as<e+ ,$ re*$r, %$r
+&,), he J#e+ $n 7ece3'er 11, !((1 a c$3*#ain, %$r i##ega# +is3issa#. He #a,er a3en+e+ his
c$3*#ain, $n 9e'r&ar) 1, !((! ,$ inc#&+e a *ra)er %$r reins,a,e3en, an+ *a)3en, $% %&##
'ac<wages, +a3ages an+ a,,$rne)Gs %ees.
Res*$n+ing ,$ ,he c$3*#ain,, *e,i,i$ner a##ege+ ,ha, res*$n+en, wen, $n a'sence wi,h$&,
$Icia# #eave =AW:L? $n 7ece3'er 1-, !((1 an+ ha+ n$, since re*$r,e+ %$r w$r<, +rawing i, ,$
sen+ hi3 a n$,ice $n 7ece3'er !-, !((1 ,$ eF*#ain his a'sence, '&, he %ai#e+ ,$ res*$n+
,here,$.
Res*$n+en, arg&es ,ha, ,he *resen, *e,i,i$n 3&s, 'e ,rea,e+ as a P3ere scra* $% *a*erP since
,he $ne wh$ signe+ i, was Pn$, *r$*er#) a&,h$ri4e+ ') ,he /*0e,i,i$ner ,$ J#e /i,0 'e%$re ,his
/C$&r,0.P
Iss&esL
Page 1(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Whe,her $r n$, ,he *ers$n wh$ signe+ ,he *resen, *e,i,i$n was +&#) a&,h$ri4e+.
Whe,her $r n$, he was i##ega##) +is3isse+.
R&#ingL
The *e,i,i$n 3&s, 'e +enie+.
There is n$ *r$$% ,ha, *e,i,i$nerGs re*resen,a,ive Re)na#+$ G. Ta&r$ was a&,h$ri4e+ ,$ J#e ,he
*e,i,i$n $n i,s 'eha#%.The B$ar+ Res$#&,i$n which was a+$*,e+ +&ring *e,i,i$nerGs S*ecia#
B$ar+ Mee,ing $% Ma) !(, !((-, s,a,esL
RES:L8E7 as i, is here') res$#ve+ ,ha, ,he c$r*$ra,i$n sha## e#eva,e $n Cer,i$rari 'e%$re ,he
C$&r, $% A**ea#s NLRC NCR Case N$. (91"!5(. en,i,#e+ PB$ni%aci$ L. Miran+$, c$3*#ainan,,
vers&s Eag#e S,ar Sec&ri,) Services, Inc., res*$n+en,.P
RES:L8E7 %&r,her as i, is here') res$#ve+ ,ha, Mr. RE@NAL7: G. TA>R:, sha## 'e a**$in,e+ as
a&,h$ri4e+ re*resen,a,ive $% ,he C$r*$ra,i$n, ,$ re*resen, an+ sign in 'eha#% $% ,he
c$r*$ra,i$n ,he 8eriJca,i$n an+ Cer,iJca,i$n $% ,he *e,i,i$n %$r a%$re53en,i$ne+ case.
C#ear#), i, was a+$*,e+ %$r ,he *&r*$se $% a&,h$ri4ing Ta&r$ ,$ J#e *e,i,i$nerGs *e,i,i$n %$r
PCer,i$rari 'e%$re ,he C$&r, $% A**ea#s.P 7es*i,e *e,i,i$nerGs awareness in i,s Re*#) ,$
res*$n+en,sG C$33en, J#e+ 'e%$re ,his C$&r, $% ,he +e%ec, in Ta&r$G a&,h$ri,) ,$ sign %$r an+
in i,s 'eha#% ,he 8eriJca,i$n an+ Cer,iJca,i$n agains, N$n59$r&3 Sh$**ing, i, %ai#e+ even ,$
'e#a,e+#) J#e ,he reA&isi,e a&,h$ri,).
9&en,e'e##a an+ R$##ing Hi##s Me3$ria# Par< v. Cas,r$,$n ,he reA&ire3en, $% a cer,iJca,i$n
agains, %$r&3 sh$**ing, eF*#ainsL
The reas$n %$r ,his is ,ha, ,he *rinci*a# *ar,) has ac,&a# <n$w#e+ge whe,her a *e,i,i$n has
*revi$&s#) 'een J#e+ inv$#ving ,he sa3e case $r s&'s,an,ia##) ,he sa3e iss&es. I%, %$r an)
reas$n, ,he *rinci*a# *ar,) cann$, sign ,he *e,i,i$n, ,he $ne signing $n his 'eha#% 3&s, have
'een +&#) a&,h$ri4e+.
. . . Where ,he *e,i,i$ner is a c$r*$ra,i$n, ,he cer,iJca,i$n agains, %$r&3 sh$**ing sh$&#+ 'e
signe+ ') i,s +&#) a&,h$ri4e+ +irec,$r $r re*resen,a,ive U/I0% ,he rea# *ar,)5in5in,eres, is a
c$r*$ra,e '$+), an $Icer $% ,he c$r*$ra,i$n can sign ,he cer,iJca,i$n agains, %$r&3 sh$**ing
as #$ng as he is a&,h$ri4e+ ') a res$#&,i$n $% i,s '$ar+ $% +irec,$rs.
A cer,iJca,i$n wi,h$&, ,he *r$*er a&,h$ri4a,i$n is +e%ec,ive an+ c$ns,i,&,es a va#i+ ca&se %$r
,he +is3issa# $% ,he *e,i,i$n. =Pe,i,i$nerGs +isc$&rse $n re#aFa,i$n $% ,echnica# r&#es $%
*r$ce+&re in ,he in,eres, $% s&'s,an,ia# E&s,ice +$es n$, i3*ress. Whi#e ,here have 'een
ins,ances when ,he C$&r, +is*ense+ wi,h ,echnica#i,ies $n ,he 'asis $% s*ecia# circ&3s,ances
$r c$3*e##ing reas$ns, ,here is n$ s&ch circ&3s,ance $r reas$n in ,he *resen, case which
warran,s ,he #i'era# a**#ica,i$n $% ,echnica# r&#es.
AT ALL E8ENTS, $n ,he 3eri,s, ,he a**e##a,e c$&r, +i+ n$, c$33i, an) reversi'#e err$r in
aIr3ing ,he c$ngr&en, Jn+ings $% ,he La'$r Ar'i,er an+ ,he NLRC ,ha, res*$n+en, was
i##ega##) +is3isse+.
The *ersis,ence $% res*$n+en, ,$ res&3e his +&,ies, n$, ,$ 3en,i$n his i33e+ia,e J#ing $% ,he
i##ega# +is3issa# c$3*#ain,, sh$&#+ +issi*a,e an) +$&', ,ha, he +i+ n$, a'an+$n his E$'.
C#&,ching a, s,raws, *e,i,i$ner arg&es ,ha, res*$n+en, was $n ,e3*$rar) P$K5+e,ai#,P ,he
*eri$+ $% ,i3e a sec&ri,) g&ar+ is 3a+e ,$ wai, &n,i# he is ,rans%erre+ $r assigne+ ,$ a new
*$s, $r c#ien,O an+ since *e,i,i$nerGs '&siness is *ri3ari#) +e*en+en, $n c$n,rac,s en,ere+ in,$
wi,h ,hir+ *ar,ies, ,he ,e3*$rar) P$K5+e,ai#P $% res*$n+en, +$es n$, a3$&n, ,$ +is3issa# as
#$ng as ,he *eri$+ +$es n$, eFcee+ - 3$n,hs, %$##$wing Ar,. !1- $% ,he La'$r C$+e.
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$nerGs ci,a,i$n $% Ar,ic#e !1- $% ,he La'$r C$+e rea+ingL
ART. !1-. When e3*#$)3en, n$, +ee3e+ ,er3ina,e+. k The '$na J+e s&s*ensi$n $% ,he
$*era,i$n $% a '&siness $r &n+er,a<ing %$r a *eri$+ n$, eFcee+ing siF =-? 3$n,hs, $r ,he
%&#J##3en, ') ,he e3*#$)ee $% a 3i#i,ar) $r civic +&,) sha## n$, ,er3ina,e e3*#$)3en,. In a##
s&ch cases, ,he e3*#$)er sha## reins,a,e ,he e3*#$)ee ,$ his %$r3er *$si,i$n wi,h$&, #$ss $%
seni$ri,) righ,s i% he in+ica,es his +esire ,$ res&3e his w$r< n$, #a,er ,han $ne =1? 3$n,h %r$3
,he res&3*,i$n $% $*era,i$ns $% his e3*#$)er $r %r$3 his re#ie% %r$3 ,he 3i#i,ar) $r civic +&,).
=E3*hasis in ,he $rigina#O &n+ersc$ring s&**#ie+? is 3is*#ace+. Phi#i**ine In+&s,ria# Sec&ri,)
Agenc) v. 7a*i,$n ,eachesL
We s,ress ,ha, Ar,ic#e !1- a**#ies $n#) when ,here is a '$naJ+e s&s*ensi$n $% ,he e3*#$)erGs
$*era,i$n $% a '&siness $r &n+er,a<ing %$r a *eri$+ n$, eFcee+ing siF =-? 3$n,hs. In s&ch a
case, ,here is n$ ,er3ina,i$n $% e3*#$)3en, '&, $n#) a ,e3*$rar) +is*#ace3en, $% e3*#$)ees,
a#'ei, ,he +is*#ace3en, sh$&#+ n$, eFcee+ siF =-? 3$n,hs. The *ara3$&n, c$nsi+era,i$n
sh$&#+ 'e ,he +ire eFigenc) $% ,he '&siness $% ,he e3*#$)er ,ha, c$3*e#s i, ,$ *&, s$3e $% i,s
e3*#$)ees ,e3*$rari#) $&, $% w$r<. In sec&ri,) services, ,he ,e3*$rar) P$K5+e,ai#P $% g&ar+s
,a<es *#ace when ,he sec&ri,) agenc)Gs c#ien,s +eci+e n$, ,$ renew ,heir c$n,rac,s wi,h ,he
sec&ri,) agenc), res&#,ing in a si,&a,i$n where ,he avai#a'#e *$s,s &n+er i,s eFis,ing c$n,rac,s
are #ess ,han ,he n&3'er $% g&ar+s in i,s r$s,er.
In ,he *resen, case, ,here is n$ sh$wing ,ha, ,here was #ac< $% avai#a'#e *$s,s a, *e,i,i$nerGs
c#ien,s $r ,ha, ,here was a reA&es, %r$3 ,he c#ien,5'an<, where res*$n+en, was #as, *$s,e+ an+
which c$n,in&e+ ,$ hire *e,i,i$nerGs services, ,$ re*#ace res*$n+en, wi,h an$,her. Pe,i,i$ner
s&++en#) *reven,e+ hi3 %r$3 re*$r,ing $n his ,$&r $% +&,) a, ,he 'an< $n 7ece3'er 12, !((1
an+ ha+ n$, ,herea%,er as<e+ hi3 ,$ re*$r, %$r +&,).
WHERE9:RE, ,he *e,i,i$n is 7ENIE7.
). Na(ionwi&e Securi($ 8 Allie& Services v. 5al&era/a, G.R. No. 1-))1*, 6eruar$
23, 2"11
9ac,sL
In ,his case, *e,i,i$ner an+ res*$n+en, *resen,e+ ,w$ +iKeren, si+es $% ,he s,$r).
RESP:N7ENT 8AL7ERAMAGS SI7E :9 THE
ST:R@
PETITI:NERGS SI7E :9 THE ST:R@
8a#+era3a was hire+ ') *e,i,i$ner as
sec&ri,) g&ar+ a, ,he Phi#i**ine Hear,
Cen,er. A%,er he was re#ive+ %r$3 his E$',
n$ %&r,her assign3en, was given ,$ hi3.
Th&s, he J#e+ a c$3*#ain, %$r c$ns,r&c,ive
+is3issa# an+ n$n*a)3en, $% 1,h 3$n,h
*a), wi,h *ra)er %$r +a3ages agains,
*e,i,i$ner.
8a#+era3a was n$, c$ns,r&c,ive#) $r
i##ega##) +is3isse+, '&, ha+ v$#&n,ari#)
resigne+.
Res*$n+en, vi$#a,e+ sec&ri,) r&#es $% ,he
w$r< *#ace. 9&r,her3$re, he was charge+
wi,h c$n+&c, &n'ec$3ing which he was
reA&ire+ ,$ eF*#ain. 9$r ,his, he was
s&s*en+e+ %$r " +a)s.
Res*$n+en, +is*#a)e+ his +isc$&r,e$&s an+
r&+e a,,i,&+e &*$n his s&*eri$r. He sai+ ,$
hi3 in a high *i,ch 8ano ba sir, personalan
ba ito, sabi$in mo lang +ung ano gusto
mo.8 Pe,i,i$ner reA&ire+ hi3 ,$ eF*#ain
wh) n$ +isci*#inar) ac,i$n sh$&#+ 'e 3e,e+
agains, hi3.
Seven sec&ri,) g&ar+s, inc#&+ing
Page 1!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
8a#+era3a were 3a+e ,$ eF*#ain ,heir
%ai#&re ,$ re*$r, %$r +&,) wi,h$&, in%$r3ing
,he $Ice +es*i,e ,he ins,r&c,i$n +&ring
,heir %$r3a,i$n +a) which was he#+ a +a)
'e%$re.
7e,ach3en, C$33an+er, R$) 7a,i#es,
re*$r,e+ ,ha, 8a#+era3a c$n%r$n,e+ an+
cha##enge+ hi3 in a high *i,ch an+ $n ,$*
$% his v$ice r&+e#) sh$wing +isc$&r,es)
an+ r&+eness. Being his s&*eri$r, 7a,i#es
rec$33en+e+ ,he re#ie% $% 8a#+era3a. B)
$r+er $% ,he :*era,i$ns Manager, he was
re#ieve+ %r$3 his *$s, a, ,he Phi#i**ine
Hear, Cen,er. He was ,hen +irec,e+ ,$
re*$r, ,$ ,he $Ice where he g$, his cash
'$n+ an+ Jrear3 +e*$si,.
7es*i,e his v$#&n,ar) resigna,i$n,
*e,i,i$ner sen, hi3 a #e,,er ,hr$&gh
regis,ere+ 3ai# ,$ re*$r, %$r ,he $Ice an+
give in%$r3a,i$n $n whe,her $r n$, he was
s,i## in,eres,e+ %$r re*$r, %$r +&,) $r n$,.
8a#+era3a +i+ n$, '$,her ,$ re*#). Nei,her
+i+ he re*$r, ,$ ,he $Ice.
The La'$r Ar'i,er ren+ere+ a +ecisi$n sa)ing ,ha, 8a#+era3a was c$ns,r&c,ive#) +is3isse+. I,
sai+ ,ha, ,he *e,i,i$nerGs +e%ense is &ns&'s,an,ia,e+.
:n a**ea#, ,he NLRC 3$+iJe+ ,he LA +ecisi$n. I, +ec#are+ ,ha, res*$n+en, was nei,her
c$ns,r&c,ive#) ,er3ina,e+ n$r +i+ he v$#&n,ari#) resign. As s&ch, res*$n+en, re3aine+ an
e3*#$)ee $% *e,i,i$ner. The NLRC ,h&s $r+ere+ res*$n+en, ,$ i33e+ia,e#) re*$r, ,$ *e,i,i$ner
an+ ass&3e his +&,).
Res*$n+en, wen, ,$ ,he CA via cer,i$rari. CA ren+ere+ a 7ecisi$n se,,ing asi+e ,he res$#&,i$ns
$% ,he NLRC an+ reins,a,ing ,ha, $% ,he LA. In gis,, ,he CA s&s,aine+ res*$n+en,Ss c#ai3 $%
c$ns,r&c,ive +is3issa#.
Iss&eL
Whe,her $r n$, ,he res*$n+en, was c$ns,r&c,ive#) +is3isse+W
R&#ingL
In cases inv$#ving sec&ri,) g&ar+s, a re#ie% an+ ,rans%er $r+er in i,se#% +$es n$, sever
e3*#$)3en, re#a,i$nshi* 'e,ween a sec&ri,) g&ar+ an+ his agenc). An e3*#$)ee has ,he righ,
,$ sec&ri,) $% ,en&re, '&, ,his +$es n$, give hi3 a ves,e+ righ, ,$ his *$si,i$n as w$&#+ +e*rive
,he c$3*an) $% i,s *rer$ga,ive ,$ change his assign3en, $r ,rans%er hi3 where his service, as
sec&ri,) g&ar+, wi## 'e 3$s, 'eneJcia# ,$ ,he c#ien,. Te3*$rar) P$K5+e,ai#P $r ,he *eri$+ $% ,i3e
sec&ri,) g&ar+s are 3a+e ,$ wai, &n,i# ,he) are ,rans%erre+ $r assigne+ ,$ a new *$s, $r c#ien,
+$es n$, c$ns,i,&,e c$ns,r&c,ive +is3issa#, s$ #$ng as s&ch s,a,&s +$es n$, c$n,in&e 'e)$n+
siF 3$n,hs.
The $n&s $% *r$ving ,ha, ,here is n$ *$s, avai#a'#e ,$ which ,he sec&ri,) g&ar+ can 'e assigne+
res,s $n ,he e3*#$)er.
When a sec&ri,) g&ar+ is *#ace+ $n a PT$a,ing s,a,&s,P he +$es n$, receive an) sa#ar) $r
Jnancia# 'eneJ, *r$vi+e+ ') #aw. 7&e ,$ ,he gri3 ec$n$3ic c$nseA&ences ,$ ,he e3*#$)ee,
,he e3*#$)er sh$&#+ 'ear ,he '&r+en $% *r$ving ,ha, ,here are n$ *$s,s avai#a'#e ,$ which ,he
e3*#$)ee ,e3*$rari#) $&, $% w$r< can 'e assigne+.
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$ner c#ai3s ,ha, res*$n+en, a'an+$ne+ his E$'. The E&ris*r&+en,ia# r&#e $n a'an+$n3en,
is c$ns,an,. I, is a 3a,,er $% in,en,i$n an+ cann$, #igh,#) 'e *res&3e+ %r$3 cer,ain eA&iv$ca#
ac,s. T$ c$ns,i,&,e a'an+$n3en,, ,w$ e#e3en,s 3&s, c$nc&rL
=1? The %ai#&re ,$ re*$r, %$r w$r< $r a'sence wi,h$&, va#i+ $r E&s,iJa'#e reas$n
=!? A c#ear in,en,, 3ani%es,e+ ,hr$&gh $ver, ac,s, ,$ sever ,he e3*#$)er5e3*#$)ee
re#a,i$nshi*.
In ,his case, *e,i,i$ner %ai#e+ ,$ es,a'#ish c#ear evi+ence $% res*$n+en,Ss in,en,i$n ,$ a'an+$n
his e3*#$)3en,. EFce*, %$r *e,i,i$nerSs 'are asser,i$n ,ha, res*$n+en, +i+ n$, re*$r, ,$ ,he
$Ice %$r reassign3en,, n$ *r$$% was $Kere+ ,$ *r$ve ,ha, res*$n+en, in,en+e+ ,$ sever ,he
e3*#$)er5e3*#$)ee re#a,i$nshi*. Besi+es, ,he %ac, ,ha, res*$n+en, J#e+ ,he ins,an, c$3*#ain,
nega,es an) in,en,i$n $n his *ar, ,$ %$rsa<e his w$r<. I, is a se,,#e+ +$c,rine ,ha, ,he J#ing $% a
c$3*#ain, %$r i##ega# +is3issa# is inc$nsis,en, wi,h ,he charge $% a'an+$n3en,, %$r an
e3*#$)ee wh$ ,a<es s,e*s ,$ *r$,es, his +is3issa# cann$, ') #$gic 'e sai+ ,$ have a'an+$ne+
his w$r<.
Si3i#ar#), we cann$, acce*, *e,i,i$nerSs arg&3en, ,ha, res*$n+en, v$#&n,ari#) resigne+.
Resigna,i$n is ,he v$#&n,ar) ac, $% an e3*#$)ee wh$ is in a si,&a,i$n where $ne 'e#ieves ,ha,
*ers$na# reas$ns cann$, 'e sacriJce+ in %av$r $% ,he eFigenc) $% ,he service, an+ $ne has n$
$,her ch$ice '&, ,$ +iss$cia,e $nese#% %r$3 e3*#$)3en,. I, is a %$r3a# *r$n$&nce3en, $r
re#inA&ish3en, $% an $Ice, wi,h ,he in,en,i$n $% re#inA&ishing ,he $Ice acc$3*anie+ ') ,he
ac, $% re#inA&ish3en,. As ,he in,en, ,$ re#inA&ish 3&s, c$nc&r wi,h ,he $ver, ac, $%
re#inA&ish3en,, ,he ac,s $% ,he e3*#$)ee 'e%$re an+ a%,er ,he a##ege+ resigna,i$n 3&s, 'e
c$nsi+ere+ in +e,er3ining whe,her, he $r she, in %ac,, in,en+e+ ,$ sever his $r her
e3*#$)3en,. In ,his case, *e,i,i$ner was Jr3 in asser,ing ,ha, res*$n+en, v$#&n,ari#)
resigne+. :++#), i, %ai#e+ ,$ *resen, ,he a##ege+ resigna,i$n #e,,er $% res*$n+en,.
6&ris*r&+ence is ,ri,e wi,h *r$n$&nce3en,s ,ha, ,he ,e3*$rar) inac,ivi,) $r PT$a,ing s,a,&sP $%
sec&ri,) g&ar+s sh$&#+ c$n,in&e $n#) %$r siF 3$n,hs. :,herwise, ,he sec&ri,) agenc)
c$ncerne+ c$&#+ 'e #ia'#e %$r c$ns,r&c,ive +is3issa#./!.0 The %ai#&re $% *e,i,i$ner ,$ give
res*$n+en, a w$r< assign3en, 'e)$n+ ,he reas$na'#e siF53$n,h *eri$+ 3a<es i, #ia'#e %$r
c$ns,r&c,ive +is3issa#.
I% ,here is a s&r*#&s $% sec&ri,) g&ar+s ca&se+ ') #ac< $% c#ien,s $r *r$Eec,s, ,he sec&ri,)
agenc) 3a) res$r, ,$ re,rench3en, &*$n c$3*#iance wi,h ,he reA&ire3en,s se, %$r,h in ,he
La'$r C$+e. In ,his wa), ,he sec&ri,) agenc) wi## n$, ,$ 'e he#+ #ia'#e %$r c$ns,r&c,ive +is3issa#
an+ 'e '&r+ene+ wi,h ,he *a)3en, $% 'ac<wages.
>n+er Ar,ic#e !"9 $% ,he La'$r C$+e, an e3*#$)ee wh$ is &nE&s,#) +is3isse+ %r$3 w$r< sha##
'e en,i,#e+ ,$ reins,a,e3en, wi,h$&, #$ss $% seni$ri,) righ,s an+ $,her *rivi#egesO ,$ his %&##
'ac<wages, inc#&sive $% a##$wancesO an+ ,$ $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en,
c$3*&,e+ %r$3 ,he ,i3e his c$3*ensa,i$n was wi,hhe#+ %r$3 hi3 &* ,$ ,he ,i3e $% his ac,&a#
reins,a,e3en,.
PETITI:N 7ENIE7. RESP:N7ENT WAS ILLEGALL@ 7ISMISSE7 B@ PETITI:NER.
7. Ni%%on @ousing 3hils. vs. Le$nes, G.R. No. 177-1), Augus( 3, 2"11
9ac,sL
Pe,i,i$ner, $rigina##) engage+ in ,he '&siness $% *r$vi+ing '&i#+ing 3ain,enance 9r$3 i,s
$rigina# ven,&re+ in,$ '&i#+ing 3anage3en, an+ gaine+ Ba) Gar+ens C$n+$3ini&3 Pr$Eec,
=,he Pr$Eec,? $% ,he Ba) Gar+ens C$n+$3ini&3 C$r*$ra,i$n =BGCC? as i,s Jrs, an+ $n#) '&i#+ing
3ain,enance c#ien,. In ,his regar+, *e,i,i$ner hire+ res*$n+en, Maiah Ange#a Le)nes $n !-
Page 1.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
March !((1 %$r ,he *$si,i$n $% Pr$*er,) Manager, wi,h a sa#ar) $% P.(,(((.(( *er 3$n,h. Her
res*$nsi'i#i,ies inc#&+e s&rve)ing ,he reA&ire3en,s $% ,he g$vern3en, an+ ,he c#ien, %$r sai+
*r$Eec,, ,he %$r3&#a,i$n $% h$&se r&#es an+ reg&#a,i$ns, ,he *re*ara,i$n $% ,he ann&a#
$*era,ing an+ ca*i,a# eF*en+i,&re '&+ge,, hiring an+ +e*#$)3en, $% 3an*$wer, sa#ar) an+
*$si,i$n +e,er3ina,i$n as we## as ,he assign3en, $% ,he sche+&#es an+ res*$nsi'i#i,ies $%
e3*#$)ees.
Le)nes ha+ a 3is&n+ers,an+ing wi,h ,he '&i#+ing engineer $% ,he *r$Eec, =Can,&'a? an+ 'arre+
,he #a,,erGs en,r) ,$ ,he si,e. The Engr. a#s$ acc&se+ ,he %$r3er $% c$ncei,, *ri+e an+ *$$r
3anageria# s<i##s. Ta<a+a, ,he NHPISs 8ice Presi+en, iss&e+ a 3e3$ran+&3 a,,ri'&,ing ,he
inci+en, ,$ Psi3*#e *ers$na# +iKerencesP an+ +irec,ing Le)nes ,$ a##$w Engr. Can,&'a ,$ re*$r,
'ac< %$r w$r<. 7isa**$in,e+ wi,h ,his 3anage3en, +ecisi$n, she s&'3i,,e+ a #e,,er ,$ NHPIGs
Presi+en, =:,a? as<ing %$r an e3ergenc) #eave $% a'sence %$r ,he s&**$se+ *&r*$se $%
c$$r+ina,ing wi,h her #aw)er regar+ing her resigna,i$n #e,,er. NHPI $Kere+ ,he Pr$*er,)
Manager *$si,i$n ,$ Engr. Car#$s 6$se as a c$nseA&ence Le)nesS signiJca,i$n $% her in,en,i$n
,$ resign. H$wever, she sen, an$,her #e,,er eF*ressing her in,en,i$n ,$ re,&rn ,$ w$r< an+ ,$
ca## $K her *#anne+ resigna,i$n. H$wever, she receive+ a #e,,er %r$3 ,he 3anage3en, ,$
re*$r, ins,ea+ ,$ ,he 3ain $Ice as $ne in a MT$a,ing s,a,&sN 'eca&se s$3e$ne a#rea+)
$cc&*ies her *$s,.
Aggrieve+, Le)nes J#e+ a c$3*#ain, agains, *e,i,i$ner %$r i##ega# +is3issa#, &n*ai+ sa#aries,
'eneJ,s, +a3ages an+ a,,$rne)Ss %ees. The La'$r ar'i,er %$&n+ ,ha, ,he *e,i,i$nerGs ac, $%
*&,,ing Le)nes $n a T$a,ing s,a,&s was eA&iva#en, ,$ ,er3ina,i$n wi,h$&, E&s, ca&se. The NLRC
r&#e+ ,ha, NHPISs *#ace3en, $% Le)nes $n T$a,ing s,a,&s was necessi,a,e+ ') ,he c#ien,Ss
c$n,rac,&a##) g&aran,ee+ righ, ,$ reA&es, %$r her re#ie%. H$wever, ,his was #a,er $n reverse+ ')
,he CA, hence, ,his *resen, *e,i,i$n 'e%$re ,he SC.
Iss&eL
W:N *e,i,i$nersS +ecisi$n ,$ *#ace res*$n+en, $n T$a,ing s,a,&s is ,an,a3$&n, ,$ c$ns,r&c,ive
+is3issa#. =A#,erna,iveL wha, is ,he eKec, $% wi,h+rawn resigna,i$nW?
R&#ingL
N$, ,he *#ace3en, $% Le)nes $n a T$a,ing s,a,&s +&e ,$ re+&n+anc) is va#i+. There is n$
c$ns,r&c,ive +is3issa#. The %ac,&a# an,ece+en,s s&gges, ,ha, NHPISs i33e+ia,e hiring $% Engr.
6$se as ,he new Pr$*er,) Manager %$r ,he Pr$Eec, was 'r$&gh, a'$&, ') Le)nesS $wn rash
ann$&nce3en, $% her in,en,i$n ,$ resign %r$3 her *$si,i$n. A#,h$&gh she s&'seA&en,#)
change+ her 3in+ an+ sen, Re)es a #e,,er ') ,e#e%aF ann$&ncing ,he rec$nsi+era,i$n $% her
*#anne+ resigna,i$n an+ her in,en,i$n ,$ re,&rn ,$ w$r<, Le)nes evi+en,#) ha+ $n#) herse#% ,$
'#a3e %$r *reci*i,a,e#) se,,ing in 3$,i$n ,he even,s which #e+ ,$ NHPISs hiring $% her $wn
re*#ace3en,.
The rec$r+, 3$re$ver, sh$ws ,ha, NHPI si3*#) *#ace+ her $n T$a,ing s,a,&s P&n,i# s&ch ,i3e
,ha, an$,her *r$Eec, c$&#+ 'e sec&re+P %$r her. Tra+i,i$na##) inv$<e+ ') sec&ri,) agencies
when g&ar+s are ,e3*$rari#) si+e#ine+ %r$3 +&,) whi#e wai,ing ,$ 'e ,rans%erre+ $r assigne+ ,$
a new *$s, $r c#ien,, Ar,ic#e !1- $% t$e Labor Code has 'een a**#ie+ ,$ $,her in+&s,ries when,
as a c$nseA&ence $% ,he bona -de s&s*ensi$n $% ,he $*era,i$n $% a '&siness $r &n+er,a<ing,
an e3*#$)er is c$ns,raine+ ,$ *&, e3*#$)ees $n T$a,ing s,a,&s %$r a *eri$+ n$, eFcee+ing siF
3$n,hs. In 'r&shing asi+e res*$n+en,sS re#iance $n sai+ *r$visi$n ,$ E&s,i%) ,he ac, $% *&,,ing
Le)nes $n T$a,ing s,a,&s, ,he CA r&#e+ ,ha, n$ evi+ence was a++&ce+ ,$ sh$w ,ha, ,here was
a bona -de s&s*ensi$n $% NHPISs '&siness. Wha, sai+ c$&r, c#ear#) $ver#$$<e+, h$wever, is ,he
Page 12
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
%ac, ,ha, NHPI ha+ 'e#a,e+#) ven,&re+ in,$ '&i#+ing 3anage3en, an+, wi,h BGCC as i,s $n#)
c#ien, in sai+ &n+er,a<ing, ha+ n$ $,her Pr$*er,) Manager *$si,i$n avai#a'#e ,$ Le)nes.
The r&#e is se,,#e+, h$wever, ,ha, P$K5+e,ai#ingP is n$, eA&iva#en, ,$ +is3issa#, s$ #$ng as s&ch
s,a,&s +$es n$, c$n,in&e 'e)$n+ a reas$na'#e ,i3e an+ ,ha, i, is $n#) when s&ch a PT$a,ing
s,a,&sP #as,s %$r 3$re ,han siF 3$n,hs ,ha, ,he e3*#$)ee 3a) 'e c$nsi+ere+ ,$ have 'een
c$ns,r&c,ive#) +is3isse+. A c$3*#ain, %$r i##ega# +is3issa# J#e+ *ri$r ,$ ,he #a*se $% sai+ siF5
3$n,h an+B$r ,he ac,&a# +is3issa# $% ,he e3*#$)ee is genera##) c$nsi+ere+ as *re3a,&re#)
J#e+.
Since ,he *e,i,i$ner has n$ $,her c#ien, %$r ,he '&i#+ing 3anage3en, si+e $% i,s '&siness, i,
ac,e+ wi,hin i,s *rer$ga,ives when i, even,&a##) ,er3ina,e+ Le)nesS services $n ,he gr$&n+ $%
re+&n+anc). :ne $% ,he rec$gni4e+ a&,h$ri4e+ ca&ses %$r ,he ,er3ina,i$n $% e3*#$)3en,,
re+&n+anc) eFis,s when ,he service ca*a'i#i,) $% ,he w$r<%$rce is in eFcess $% wha, is
reas$na'#) nee+e+ ,$ 3ee, ,he +e3an+s $% ,he '&siness en,er*rise. A re+&n+an, *$si,i$n is
$ne ren+ere+ s&*erT&$&s ') an) n&3'er $% %ac,$rs, s&ch as $verhiring $% w$r<ers, +ecrease+
v$#&3e $% '&siness, +r$**ing $% a *ar,ic&#ar *r$+&c, #ine *revi$&s#) 3an&%ac,&re+ ') ,he
c$3*an) $r *hasing $&, $% service ac,ivi,) *ri$r#) &n+er,a<en ') ,he '&siness An e3*#$)er
has n$ #ega# $'#iga,i$n ,$ <ee* 3$re e3*#$)ees ,han are necessar) %$r ,he $*era,i$n $% i,s
'&siness.
C$nsi+ering ,ha, Le)nes was ,er3ina,e+ %r$3 service &*$n an a&,h$ri4e+ ca&se, we Jn+ ,ha,
,he CA #i<ewise erre+ in %a&#,ing NHPI %$r s&**$se+#) %ai#ing ,$ n$,i%) sai+ e3*#$)ee $% ,he
*ar,ic&#ar ac, $r $3issi$n #eve#e+ agains, her an+ ,he gr$&n+Bs %$r which she was +is3isse+
%r$3 e3*#$)3en,. Where +is3issa#, h$wever, is %$r an a&,h$ri4e+ ca&se #i<e re+&n+anc), ,he
e3*#$)er is, ins,ea+, reA&ire+ ,$ serve a wri,,en n$,ice $% ,er3ina,i$n $n ,he w$r<er
c$ncerne+ an+ ,he 7:LE, a, #eas, $ne 3$n,h %r$3 ,he in,en+e+ +a,e ,here$%. 9$r i,s %ai#&re ,$
c$3*#) s,ric,#) wi,h ,he (5+a) 3ini3&3 reA&ire3en, %$r sai+ n$,ice an+ eKec,ive#) vi$#a,ing
Le)nesS righ, ,$ +&e *r$cess, NHPI sh$&#+ 'e he#+ #ia'#e ,$ *a) n$3ina# +a3ages in ,he s&3 $%
P2(,(((.((.
Page 1-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
+ISEASE AS A GROUN+ OR TER!INATION
1. S$ vs. Cour( of A%%eals, G.R. No. 1*2293, 6eruar$ 27, 2""3
9ac,sL
Priva,e res*$n+en, 6ai3e Sah$, has 'een w$r<ing %$r *e,i,i$nersG %a3i#)5$wne+ ,r&c<ing
'&siness na3e+ 8icen,e S) Tr&c<ing s,ar,ing in 1921. Since ,ha, ,i3e, ,he %a3i#) '&siness has
change+ na3es, Jrs, %r$3 T. Pa&#in$ Tr&c<ing Service, ,hen ,$ -BGs Tr&c<ing C$r*$ra,i$n, an+
Jna##) ,$ SBT Tr&c<ing C$r*$ra,i$n. Thr$&gh$&, a## ,hese changes an+ %$r - )ears, Sah$,
re3aine+ wi,h ,he '&siness.
When Sah$, was a#rea+) 29 )ears $#+, he ha+ rec&rring a'sences +&e ,$ his s&Kering vari$&s
ai#3en,s. His #e%, ,high, in *ar,ic&#ar, has 'een ca&sing hi3 *ain, which grea,#) aKec,e+ his
*er%$r3ance as a +river. A%,er inA&iring wi,h ,he SSS regar+ing his 3e+ica# an+ re,ire3en,
'eneJ,s, he %$&n+ ,ha, his *re3i&3 *a)3en,s ha+ n$, 'een re3i,,e+ ') his e3*#$)er.
La,er, he J#e+ a wee<5#$ng #eave +&ring which ,i3e he was 3e+ica##) eFa3ine+ an+ ,rea,e+
%$r severa# i##nesses. >*$n ,he a+vice $% SBT Tr&c<ing Service 3anage3en,, he J#e+ a %$r3a#
reA&es, %$r eF,ensi$n $% his #eave. I, was a, ,his ,i3e ,ha, Sah$, was Jrs, ,hrea,ene+ $%
,er3ina,i$n %r$3 w$r<, wi,h his e3*#$)ers #a,er carr)ing $&, ,his ,hrea, ') +is3issing hi3.
Iss&eL
Whe,her $r n$, ,here was va#i+ +is3issa#
R&#ingL
Ar,ic#e !""='? $% ,he La'$r C$+e *&,s ,he '&r+en $% *r$ving ,ha, ,he +is3issa# $% an e3*#$)ee
was %$r a va#i+ $r a&,h$ri4e+ ca&se $n ,he e3*#$)er, wi,h$&, +is,inc,i$n whe,her ,he e3*#$)er
a+3i,s $r +$es n$, a+3i, ,he +is3issa#. 9$r an e3*#$)eeGs +is3issa# ,$ 'e va#i+, =a? ,he
+is3issa# 3&s, 'e %$r a va#i+ ca&se an+ ='? ,he e3*#$)ee 3&s, 'e aK$r+e+ +&e *r$cess.
Ar,ic#e !1. $% ,he La'$r C$+e a&,h$ri4es an e3*#$)er ,$ ,er3ina,e an e3*#$)ee $n ,he gr$&n+
$% +isease. H$wever, in $r+er ,$ va#i+#) ,er3ina,e e3*#$)3en, $n ,his gr$&n+, B$$< 8I, R&#e I,
Sec,i$n 1 $% ,he :3ni'&s I3*#e3en,ing R&#es $% ,he La'$r C$+e reA&ires a 3e+ica# cer,iJca,e.
This reA&ire3en, cann$, 'e +is*ense+ wi,hO $,herwise, i, w$&#+ sanc,i$n ,he &ni#a,era# an+
ar'i,rar) +e,er3ina,i$n ') ,he e3*#$)er $% ,he gravi,) $r eF,en, $% ,he e3*#$)eeGs i##ness an+
,h&s +e%ea, ,he *&'#ic *$#ic) in ,he *r$,ec,i$n $% #a'$r.
In ,he case a, 'ar, ,he e3*#$)er c#ear#) +i+ n$, c$3*#) wi,h ,he 3e+ica# cer,iJca,e
reA&ire3en, 'e%$re Sah$,Gs +is3issa# was eKec,e+.
In a++i,i$n, ,here is #i<ewise ,he +e,er3ina,i$n i% ,he *r$ce+&ra# as*ec, $% +&e *r$cess ha+
'een c$3*#ie+ wi,h ') ,he e3*#$)er.
9r$3 ,he rec$r+s, i, c#ear#) a**ears ,ha, *r$ce+&ra# +&e *r$cess was n$, $'serve+ in ,he
se*ara,i$n $% *riva,e res*$n+en, ') ,he 3anage3en, $% ,he ,r&c<ing c$3*an). The e3*#$)er
is reA&ire+ ,$ %&rnish an e3*#$)ee wi,h ,w$ wri,,en n$,ices 'e%$re ,he #a,,er is +is3isse+L =1?
,he n$,ice ,$ a**rise ,he e3*#$)ee $% ,he *ar,ic&#ar ac,s $r $3issi$ns %$r which his +is3issa# is
Page 1"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
s$&gh,, which is ,he eA&iva#en, $% a chargeO an+ =!? ,he n$,ice in%$r3ing ,he e3*#$)ee $% his
+is3issa#, ,$ 'e iss&e+ a%,er ,he e3*#$)ee has 'een given reas$na'#e $**$r,&ni,) ,$ answer
an+ ,$ 'e hear+ $n his +e%ense. These, ,he *e,i,i$ners %ai#e+ ,$ +$, even $n#) %$r rec$r+
*&r*$ses. Wha, 3anage3en, +i+ was ,$ ,hrea,en ,he e3*#$)ee wi,h +is3issa#, ,hen ac,&a##)
i3*#e3en, ,he ,hrea, when ,he $ccasi$n *resen,e+ i,se#% 'eca&se $% *riva,e res*$n+en,Gs
*ain%&# #e%, ,high.
A## ,$#+, '$,h ,he s&'s,an,ive an+ *r$ce+&ra# as*ec,s $% +&e *r$cess were vi$#a,e+. C#ear#),
,here%$re, Sah$,Gs +is3issa# is ,ain,e+ wi,h inva#i+i,).
2. Manl$ #E%ress vs. 3a$ong, G.R. No. 1)7*)2, 7c(oer 2., 2"".
9ac,sL
S$3e,i3e in 7ece3'er 1999, R$3&a#+$ Pa)$ng, 6r., was c$3*#aining $% e)esigh, *r$'#e3s.
He was 'r$&gh, ,$ an e)e s*ecia#is, ') *riva,e res*$n+en, Man#) EF*ress, Inc. an+B$r Si) Eng
T. Ching, he was +iagn$se+ ,$ 'e s&Kering %r$3 e)e ca,arac,. 7es*i,e having ,he ca,arac,
re3$ve+ in 6an&ar) $% !(((, he was +isa##$we+ ,$ re,&rn ,$ his w$r< ') Ching. M&ch #a,er, $n
A&g&s, 1, !(((, he was given a #e,,er $% ,er3ina,i$n $% e3*#$)3en,. Th&s, a c$3*#ain, %$r
i##ega# +is3issa# wi,h 3$ne) c#ai3s was J#e+ agains, Man#).
Iss&eL
Whe,her $r n$, ,he +is3issa# $n ,he gr$&n+ $% +isease was va#i+.
R&#ingL
In $r+er ,$ va#i+#) ,er3ina,e e3*#$)3en, $n ,his gr$&n+, Sec,i$n 1, R&#e I, B$$< 8I $% ,he
:3ni'&s R&#es I3*#e3en,ing ,he La'$r C$+e reA&iresL
Sec. 1. 7isease as a gr$&n+ %$r +is3issa#. N Where ,he e3*#$)ee s&Kers %r$3 a +isease an+ his
c$n,in&e+ e3*#$)3en, is *r$hi'i,e+ ') #aw $r *reE&+icia# ,$ his hea#,h $r ,$ ,he hea#,h $% his
c$5e3*#$)ees, ,he e3*#$)er sha## n$, ,er3ina,e his e3*#$)3en, &n#ess ,here is a cer,iJca,i$n
') a c$3*e,en, *&'#ic hea#,h a&,h$ri,) ,ha, ,he +isease is $% s&ch na,&re $r a, s&ch a s,age
,ha, i, cann$, 'e c&re+ wi,hin a *eri$+ $% siF =-? 3$n,hs even wi,h *r$*er 3e+ica# ,rea,3en,.
I% ,he +isease $r ai#3en, can 'e c&re+ wi,hin ,he *eri$+, ,he e3*#$)er sha## n$, ,er3ina,e ,he
e3*#$)ee '&, sha## as< ,he e3*#$)ee ,$ ,a<e a #eave. The e3*#$)er sha## reins,a,e s&ch
e3*#$)ee ,$ his %$r3er *$si,i$n i33e+ia,e#) &*$n ,he res,$ra,i$n $% his n$r3a# hea#,h.
The r&#e is eF*#ici,. 9$r a +is3issa# $n ,he gr$&n+ $% +isease ,$ 'e c$nsi+ere+ va#i+, ,w$
reA&isi,es 3&s, c$nc&rL =a? ,he e3*#$)ee s&Kers %r$3 a +isease which cann$, 'e c&re+ wi,hin
siF 3$n,hs an+ his c$n,in&e+ e3*#$)3en, is *r$hi'i,e+ ') #aw $r *reE&+icia# ,$ his hea#,h $r ,$
,he hea#,h $% his c$5e3*#$)ees, an+ ='? a cer,iJca,i$n ,$ ,ha, eKec, 3&s, 'e iss&e+ ') a
c$3*e,en, *&'#ic hea#,h a&,h$ri,).
In ,he *resen, case, ,here was n$ *r$$% ,ha, Pa)$ngGs c$n,in&e+ e3*#$)3en, was *r$hi'i,e+
') #aw $r *reE&+icia# ,$ his hea#,h an+ ,ha, $% his c$5e3*#$)ees. N$ 3e+ica# cer,iJca,e ') a
c$3*e,en, *&'#ic hea#,h a&,h$ri,) was s&'3i,,e+ ,ha, Pa)$ng was s&Kering %r$3 a +isease
,ha, cann$, 'e c&re+ wi,hin a *eri$+ $% siF 3$n,hs. In ,he a'sence $% s&ch cer,iJca,i$n,
Pa)$ngGs +is3issa# 3&s, necessari#) 'e +ec#are+ i##ega#.
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The '&r+en $% *r$ving ,he va#i+i,) $% ,he +is3issa# res,s $n ,he e3*#$)er. As s&ch, ,he
e3*#$)er 3&s, *r$ve ,ha, ,he reA&isi,es %$r a va#i+ +is3issa# +&e ,$ a +isease have 'een
c$3*#ie+ wi,h. In ,he a'sence $% ,he reA&ire+ cer,iJca,i$n ') a c$3*e,en, *&'#ic hea#,h
a&,h$ri,), ,his C$&r, has r&#e+ agains, ,he va#i+i,) $% ,he e3*#$)eeGs +is3issa#.
The S&*re3e C$&r, a#s$ n$,e ,ha, Man#) %ai#e+ ,$ c$3*#) wi,h ,he *r$ce+&re %$r ,er3ina,ing
an e3*#$)ee. In +is3issing an e3*#$)ee, ,he e3*#$)er has ,he '&r+en $% *r$ving ,ha, ,he
e3*#$)ee has 'een serve+ ,w$ n$,icesL =1? $ne ,$ a**rise hi3 $% ,he *ar,ic&#ar ac,s $r
$3issi$ns %$r which his +is3issa# is s$&gh,, an+ =!? ,he $,her ,$ in%$r3 hi3 $% his e3*#$)erGs
+ecisi$n ,$ +is3iss hi3. The Jrs, n$,ice 3&s, s,a,e ,ha, +is3issa# is s$&gh, %$r ,he ac, $r
$3issi$n charge+ agains, ,he e3*#$)ee, $,herwise, ,he n$,ice cann$, 'e c$nsi+ere+ s&Icien,
c$3*#iance wi,h ,he r&#es.
Pa)$ngGs +is3issa# +i+ n$, c$3*#) wi,h '$,h ,he s&'s,an,ive an+ *r$ce+&ra# as*ec,s $% +&e
*r$cess. C#ear#), his +is3issa# is ,ain,e+ wi,h inva#i+i,).
3. 4u(er(e vs. Hingswoo& 9ra&ing Co., G.R. No. 1)"32., 7c(oer *, 2""7
9ac,sL
Pe,i,i$ner was hire+ as ,r&c<B,rai#er +river ') res*$n+en, Hingsw$$+ Tra+ing C$3*an), Inc.
=HTC? $% which c$5res*$n+en, 9i#e3$n Li3 is ,he Presi+en,. Pe,i,i$ner was $n ,he -L(( a.3. R
-L(( *.3. shi%,. He average+ !1 ,ri*s *er 3$n,h, ge,,ing P"(( *er ,ri*. When n$, +riving,
*e,i,i$ner was assigne+ ,$ c#ean an+ 3ain,ain res*$n+en, HTCGs eA&i*3en, an+ vehic#es %$r
which he was *ai+ P1!2 *er +a). Reg&#ar#), *e,i,i$ner w$&#+ 'e sec$n+e+ ') res*$n+en,
9i#e3$n Li3 ,$ +rive %$r $ne $% HTCGs c#ien,s, ,he Phi#i**ine Na,i$na# :i# C$r*$ra,i$n, '&,
a#wa)s s&'Eec, ,$ res*$n+en,sG c$nvenience. :n N$ve3'er 1, 1991, *e,i,i$ner ha+ his Jrs,
hear, a,,ac< an+ was c$nJne+ %$r ,w$ wee<s a, ,he Phi#i**ine Hear, Cen,er =PHC?. This was
c$nJr3e+ ') res*$n+en, HTC which a+3i,,e+ ,ha, *e,i,i$ner was +ec#are+ $n sic< #eave wi,h
c$rres*$n+ing n$,iJca,i$n. A 3$n,h #a,er, *e,i,i$ner re,&rne+ ,$ w$r< ar3e+ wi,h a 3e+ica#
cer,iJca,e signe+ ') his a,,en+ing *h)sician a, ,he PHC, a,,es,ing ,$ *e,i,i$nerGs J,ness ,$
w$r<. H$wever, sai+ cer,iJca,e was n$, h$n$re+ ') ,he res*$n+en,s wh$ re%&se+ ,$ a##$w
*e,i,i$ner ,$ w$r<. In 9e'r&ar) 1999, *e,i,i$ner s&Kere+ a sec$n+ hear, a,,ac< an+ was again
c$nJne+ a, ,he PHC. >*$n re#ease, he s,a)e+ h$3e an+ s*en, ,i3e ,$ rec&*era,e. Pe,i,i$ner
a,,e3*,e+ ,$ re*$r, 'ac< ,$ w$r< '&, was ,$#+ ,$ #$$< %$r an$,her E$' 'eca&se he was &nJ,.
Res*$n+en,s re%&se+ ,$ +ec#are *e,i,i$ner J, ,$ w$r< &n#ess *h)sica##) eFa3ine+ ') ,he
c$3*an) *h)sician. Res*$n+en,sG *r$3ise ,$ *a) *e,i,i$ner his se*ara,i$n *a) ,&rne+ $&, ,$
'e an e3*,) $ne. Ins,ea+, *e,i,i$ner was *resen,e+, %$r his signa,&re, a +$c&3en, as *r$$% $%
his recei*, $% ,he a3$&n, $% P1.,"2.(( as Jrs, ins,a##3en, $% his S$cia# Sec&ri,) S)s,e3 =SSS?
'eneJ,s. Having receive+ n$ s&ch a3$&n,, *e,i,i$ner re%&se+ ,$ aIF his signa,&re ,here$n an+
ins,ea+ reA&es,e+ %$r ,he necessar) +$c&3en,s %r$3 res*$n+en,s ,$ ena'#e hi3 ,$ c#ai3 his
SSS 'eneJ,s, '&, ,he #a,,er +i+ n$, hee+ his reA&es,.
R&#ingL
The #aw is &neA&iv$ca#L ,he e3*#$)er, 'e%$re i, can #ega##) +is3iss i,s e3*#$)ee $n ,he gr$&n+
$% +isease, 3&s, a++&ce a cer,iJca,i$n %r$3 a c$3*e,en, *&'#ic a&,h$ri,) ,ha, ,he +isease $%
which i,s e3*#$)ee is s&Kering is $% s&ch na,&re $r a, s&ch a s,age ,ha, i, cann$, 'e c&re+
wi,hin a *eri$+ $% siF 3$n,hs even wi,h *r$*er ,rea,3en,. Here, ,he rec$r+ +$es n$, c$n,ain
,he reA&ire+ cer,iJca,i$n. An+ when ,he res*$n+en,s as<e+ ,he *e,i,i$ner ,$ #$$< %$r an$,her
E$' 'eca&se he was &nJ, ,$ w$r<, s&ch &ni#a,era# +ec#ara,i$n, even i% 'ac<e+ &* ') ,he
Page 19
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Jn+ings $% i,s c$3*an) +$c,$rs, +i+ n$, 3ee, ,he A&an,&3 reA&ire3en, 3an+a,e+ ') ,he #aw,
i.e., ,here 3&s, 'e a cer,iJca,i$n ') a c$3*e,en, *&'#ic a&,h$ri,). The reA&ire3en, %$r a
3e+ica# cer,iJca,e &n+er Ar,ic#e !1. $% ,he La'$r C$+e cann$, 'e +is*ense+ wi,hO $,herwise, i,
w$&#+ sanc,i$n ,he &ni#a,era# an+ ar'i,rar) +e,er3ina,i$n ') ,he e3*#$)er $% ,he gravi,) $r
eF,en, $% ,he e3*#$)eeGs i##ness an+ ,h&s +e%ea, ,he *&'#ic *$#ic) $n ,he *r$,ec,i$n $% #a'$r. A##
,$#+, we r&#e an+ s$ h$#+ ,ha, *e,i,i$nerGs +is3issa# +i+ n$, c$3*#) wi,h '$,h ,he s&'s,an,ive
an+ *r$ce+&ra# as*ec,s $% +&e *r$cess. C#ear#), his +is3issa# is ,ain,e+ wi,h inva#i+i,).
WHERE9:RE, ,he assai#e+ +ecisi$n $% ,he CA is RE8ERSE7 an+ SET ASI7E. S: :R7ERE7.
*. 5illaruel vs. Jeo @an Guan, G.R. No. 1)9191, 2une 1, 2"11
9ac,sL
Pe,i,i$ner a##ege+ ,ha, in 6&ne 19-, he was e3*#$)e+ as a 3achine $*era,$r ') Ri'$ne,,e
Man&%ac,&ring C$3*an), an en,er*rise engage+ in ,he '&siness $% 3an&%ac,&ring an+ se##ing
P8C *i*es an+ is $wne+ an+ 3anage+ ') herein res*$n+en, @e$ Han G&an. :ver a *eri$+ $%
a#3$s, ,wen,) =!(? )ears, ,he c$3*an) change+ i,s na3e %$&r ,i3es. S,ar,ing in 199 &* ,$
,he ,i3e $% ,he J#ing $% *e,i,i$nerSs c$3*#ain, in 1999, ,he c$3*an) was $*era,ing &n+er ,he
na3e $% @&hans En,er*rises. 7es*i,e ,he changes in ,he c$3*an)Ss na3e, *e,i,i$ner
re3aine+ in ,he e3*#$) $% res*$n+en,. Pe,i,i$ner %&r,her a##ege+ ,ha, $n :c,$'er 2, 1991, he
g$, sic< an+ was c$nJne+ in a h$s*i,a#O $n 7ece3'er 1!, 1991, he re*$r,e+ %$r w$r< '&, was
n$ #$nger *er3i,,e+ ,$ g$ 'ac< 'eca&se $% his i##nessO he as<e+ ,ha, res*$n+en, a##$w hi3 ,$
c$n,in&e w$r<ing '&, 'e assigne+ a #igh,er <in+ $% w$r< '&, his reA&es, was +enie+O ins,ea+,
he was $Kere+ a s&3 $% P12,(((.(( as his se*ara,i$n *a)O h$wever, ,he sai+ a3$&n,
c$rres*$n+s $n#) ,$ ,he *eri$+ 'e,ween 199 an+ 1999O *e,i,i$ner *ra)e+ ,ha, he 'e gran,e+
se*ara,i$n *a) c$3*&,e+ %r$3 his Jrs, +a) $% e3*#$)3en, in 6&ne 19-, '&, res*$n+en,
re%&se+. Asi+e %r$3 se*ara,i$n *a), *e,i,i$ner *ra)e+ %$r ,he *a)3en, $% service incen,ive
#eave %$r ,hree )ears as we## as a,,$rne)Ss %ees.
The La'$r Ar'i,er %$&n+ %$r ,he res*$n+en,, gran,ing hi3 se*ara,i$n *a) %r$3 ,he 6&ne 19-
&* ,$ ,he ,i3e $% se*ara,i$n, an+ service incen,ive #eave eA&iva#en, ,$ 12 +a)s. The NLRC
aIr3e+. :n a**ea#, ,he CA reverse+ ,he NLRC $n ,he iss&e $% se*ara,i$n *a).
Iss&eL
The assigne+ err$rs in ,he ins,an, *e,i,i$n essen,ia##) '$i# +$wn ,$ ,he A&es,i$n $% whe,her
*e,i,i$ner is en,i,#e+ ,$ se*ara,i$n *a) &n+er ,he *r$visi$ns $% ,he La'$r C$+e, *ar,ic&#ar#)
Ar,ic#e !1. ,here$%, which rea+s as %$##$wsL
An e3*#$)er 3a) ,er3ina,e ,he services $% an e3*#$)ee wh$ has 'een %$&n+ ,$ 'e s&Kering
%r$3 an) +isease an+ wh$se c$n,in&e+ e3*#$)3en, is *r$hi'i,e+ ') #aw $r is *reE&+icia# ,$ his
hea#,h as we## as ,$ ,he hea#,h $% his c$5e3*#$)eesL Pr$vi+e+, Tha, he is *ai+ se*ara,i$n *a)
eA&iva#en, ,$ a, #eas, $ne =1? 3$n,h sa#ar) $r ,$ $ne5ha#% =e? 3$n,h sa#ar) %$r ever) )ear $%
service whichever is grea,er, a %rac,i$n $% a, #eas, siF 3$n,hs 'eing c$nsi+ere+ as $ne =1?
wh$#e )ear.
He#+L
A *#ain rea+ing $% ,he a'$veA&$,e+ *r$visi$n c#ear#) *res&**$ses ,ha, i, is ,he e3*#$)er wh$
,er3ina,es ,he services $% ,he e3*#$)ee %$&n+ ,$ 'e s&Kering %r$3 an) +isease an+ wh$se
c$n,in&e+ e3*#$)3en, is *r$hi'i,e+ ') #aw $r is *reE&+icia# ,$ his hea#,h as we## as ,$ ,he
hea#,h $% his c$5e3*#$)ees. I, +$es n$, c$n,e3*#a,e a si,&a,i$n where i, is ,he e3*#$)ee wh$
Page !(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
severs his $r her e3*#$)3en, ,ies. This is *recise#) ,he reas$n wh) Sec,i$n 1, R&#e 1, B$$< 8I
$% ,he :3ni'&s R&#es I3*#e3en,ing ,he La'$r C$+e, +irec,s ,ha, an e3*#$)er sha## n$,
,er3ina,e ,he services $% ,he e3*#$)ee &n#ess ,here is a cer,iJca,i$n ') a c$3*e,en, *&'#ic
hea#,h a&,h$ri,) ,ha, ,he +isease is $% s&ch na,&re $r a, s&ch a s,age ,ha, i, cann$, 'e c&re+
wi,hin a *eri$+ $% siF =-? 3$n,hs even wi,h *r$*er 3e+ica# ,rea,3en,.
:n ,he $,her han+, ,he C$&r, agrees wi,h ,he CA in i,s $'serva,i$n $% ,he %$##$wing
circ&3s,ances as *r$$% ,ha, res*$n+en, +i+ n$, ,er3ina,e *e,i,i$nerSs e3*#$)3en,L -rst, ,he
$n#) ca&se $% ac,i$n in *e,i,i$nerSs $rigina# c$3*#ain, is ,ha, he was M$Kere+ a ver) #$w
se*ara,i$n *a)NO seond, ,here was n$ a##ega,i$n $% i##ega# +is3issa#, '$,h in *e,i,i$nerSs
$rigina# an+ a3en+e+ c$3*#ain,s an+ *$si,i$n *a*erO an+, t$ird, ,here was n$ *ra)er %$r
reins,a,e3en,.
In c$ns$nance wi,h ,he a'$ve Jn+ings, ,he C$&r, Jn+s ,ha, *e,i,i$ner was ,he $ne wh$
ini,ia,e+ ,he severance $% his e3*#$)3en, re#a,i$ns wi,h res*$n+en,. I, is evi+en, %r$3 ,he
vari$&s *#ea+ings J#e+ ') *e,i,i$ner ,ha, he never in,en+e+ ,$ re,&rn ,$ his e3*#$)3en, wi,h
res*$n+en, $n ,he gr$&n+ ,ha, his hea#,h is %ai#ing. In+ee+, *e,i,i$ner +i+ n$, as< %$r
reins,a,e3en,. In %ac,, he reEec,e+ res*$n+en,Ss $Ker %$r hi3 ,$ re,&rn ,$ w$r<. This is
,an,a3$&n, ,$ resigna,i$n.
Resigna,i$n is +eJne+ as ,he v$#&n,ar) ac, $% an e3*#$)ee wh$ Jn+s hi3se#% in a si,&a,i$n
where he 'e#ieves ,ha, *ers$na# reas$ns cann$, 'e sacriJce+ in %av$r $% ,he eFigenc) $% ,he
service an+ he has n$ $,her ch$ice '&, ,$ +isass$cia,e hi3se#% %r$3 his e3*#$)3en,.
I, 3a) n$, 'e a3iss ,$ *$in, $&, a, ,his E&nc,&re ,ha, asi+e %r$3 Ar,ic#e !1. $% ,he La'$r C$+e,
,he awar+ $% se*ara,i$n *a) is a#s$ a&,h$ri4e+ in ,he si,&a,i$ns +ea#, wi,h in Ar,ic#e !1
/1-0
$%
,he sa3e C$+e an+ &n+er Sec,i$n . ='?, R&#e I, B$$< 8I $% ,he I3*#e3en,ing R&#es an+
Reg&#a,i$ns $% ,he sai+ C$+e
/1"0
where ,here is i##ega# +is3issa# an+ reins,a,e3en, is n$ #$nger
%easi'#e. B) wa) $% eFce*,i$n, ,his C$&r, has a##$we+ gran,s $% se*ara,i$n *a) ,$ s,an+ as Ma
3eas&re $% s$cia# E&s,iceN where ,he e3*#$)ee is va#i+#) +is3isse+ %$r ca&ses $,her ,han
seri$&s 3isc$n+&c, $r ,h$se reTec,ing $n his 3$ra# charac,er.
/110
H$wever, ,here is n$
*r$visi$n in ,he La'$r C$+e which gran,s se*ara,i$n *a) ,$ v$#&n,ari#) resigning e3*#$)ees. In
%ac,, ,he r&#e is ,ha, an e3*#$)ee wh$ v$#&n,ari#) resigns %r$3 e3*#$)3en, is n$, en,i,#e+
,$ se*ara,i$n *a), eFce*, when i, is s,i*&#a,e+ in ,he e3*#$)3en, c$n,rac, $r CBA, $r i, is
sanc,i$ne+ ') es,a'#ishe+ e3*#$)er *rac,ice $r *$#ic).
/190
In ,he *resen, case, nei,her ,he
a'$ve3en,i$ne+ *r$visi$ns $% ,he La'$r C$+e an+ i,s i3*#e3en,ing r&#es an+ reg&#a,i$ns n$r
,he eFce*,i$ns a**#) 'eca&se *e,i,i$ner was n$, +is3isse+ %r$3 his e3*#$)3en, an+ ,here is
n$ evi+ence ,$ sh$w ,ha, *a)3en, $% se*ara,i$n *a) is s,i*&#a,e+ in his e3*#$)3en, c$n,rac,
$r sanc,i$ne+ ') es,a'#ishe+ *rac,ice $r *$#ic) $% herein res*$n+en,, his e3*#$)er.
Since *e,i,i$ner was n$, ,er3ina,e+ %r$3 his e3*#$)3en, an+, ins,ea+, is +ee3e+ ,$ have
resigne+ ,here%r$3, he is n$, en,i,#e+ ,$ se*ara,i$n *a) &n+er ,he *r$visi$ns $% ,he La'$r
C$+e.
The %$reg$ing n$,wi,hs,an+ing, ,his C$&r,, in a n&3'er $% cases, has gran,e+ Jnancia#
assis,ance ,$ se*ara,e+ e3*#$)ees as a 3eas&re $% s$cia# an+ c$3*assi$na,e E&s,ice an+ as
an eA&i,a'#e c$ncessi$n. Ta<ing in,$ c$nsi+era,i$n ,he %ac,&a# circ&3s,ances $',aining in ,he
*resen, case, ,he C$&r, Jn+s ,ha, *e,i,i$ner is en,i,#e+ ,$ ,his <in+ $% assis,ance.
In ,his regar+, ,he C$&r, Jn+s cre+ence in *e,i,i$nerSs c$n,en,i$n ,ha, he is in ,he e3*#$) $%
res*$n+en, %$r 3$re ,han 2 )ears. In ,he a'sence $% a s&'s,an,ia# re%&,a,i$n $n ,he *ar, $%
res*$n+en,, ,he C$&r, agrees wi,h ,he Jn+ings $% ,he La'$r Ar'i,er an+ ,he NLRC ,ha,
res*$n+en, c$3*an) is n$, +is,inc, %r$3 i,s *re+ecess$rs '&,, in %ac,, 3ere#) c$n,in&e+ ,he
Page !1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$*era,i$n $% ,he #a,,er &n+er ,he sa3e $wners an+ ,he sa3e '&siness ven,&re. The C$&r,
%&r,her n$,es ,ha, ,here is n$ evi+ence $n rec$r+ ,$ sh$w ,ha, *e,i,i$ner has an) +er$ga,$r)
rec$r+ +&ring his #$ng )ears $% service wi,h res*$n+en, an+ ,ha, his e3*#$)3en, was severe+
n$, ') reas$n $% an) in%rac,i$n $n his *ar, '&, 'eca&se $% his %ai#ing *h)sica# c$n+i,i$n. A++ ,$
,his ,he wi##ingness $% res*$n+en, ,$ give hi3 Jnancia# assis,ance. Hence, 'ase+ $n ,he
%$reg$ing, ,he C$&r, Jn+s ,ha, ,he awar+ $% P2(,(((.(( ,$ *e,i,i$ner as Jnancia# assis,ance is
+ee3e+ eA&i,a'#e &n+er ,he circ&3s,ances.
Page !!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
OTHER CAUSES O SE"ERANCE O E!PLOY!ENT RELATION
1. 3an(ranco Nor(h #E%ress vs. NLRC, 2.9 SCRA 1)1 +199),
9ac,sL
Priva,e res*$n+en, was hire+ ') *e,i,i$ner in 19-. as a '&s c$n+&c,$r. He even,&a##) E$ine+
,he Pan,ranc$ E3*#$)ees Ass$cia,i$n, PTGW:. He c$n,in&e+ in *e,i,i$nerGs e3*#$) &n,i#
A&g&s, 1!, 1919, when he was re,ire+ a, ,he age $% 2! a%,er having ren+ere+ ,wen,) Jve
)earGs service. The 'asis $% his re,ire3en, was ,he c$3*&#s$r) re,ire3en, *r$visi$n $% ,he
c$##ec,ive 'argaining agree3en, 'e,ween ,he *e,i,i$ner an+ ,he a%$rena3e+ &ni$n. Priva,e
res*$n+en, receive+ P.9, ((.(( as re,ire3en, *a).
Priva,e res*$n+en, J#e+ a c$3*#ain, %$r i##ega# +is3issa# agains, *e,i,i$ner wi,h ,he S&'5
Regi$na# Ar'i,ra,i$n Branch $% ,he res*$n+en, C$33issi$n in 7ag&*an Ci,). The c$3*#ain, was
c$ns$#i+a,e+ wi,h ,w$ $,her cases $% i##ega# +is3issa# having si3i#ar %ac,s an+ iss&es, J#e+ ')
$,her e3*#$)ees, n$n &ni$n 3e3'ers.
Iss&eL
Is a C$##ec,ive Bargaining Agree3en, *r$visi$n a##$wing c$3*&#s$r) re,ire3en, 'e%$re age -(
'&, a%,er ,wen,) Jve )ears $% service #ega# an+ en%$rcea'#eW
Wh$ has E&ris+ic,i$n $ver a case inv$#ving s&ch a A&es,i$n 55 ,he #a'$r ar'i,er $r ar'i,ra,$rs
a&,h$ri4e+ ') s&ch CBAW
R&#ingL
:n ,he Jrs, iss&eL
The '$ne $% c$n,en,i$n in ,his case is ,he *r$visi$n $n c$3*&#s$r) re,ire3en, a%,er !2 )ears $%
service. Ar,ic#e CI, Sec,i$n 1 =e? =2? $% ,he Ma) !, 1919 C$##ec,ive Bargaining Agree3en,
'e,ween *e,i,i$ner c$3*an) an+ ,he &ni$n s,a,esL
PSec,i$n 1. The C:MPAN@ sha## %$r3&#a,e a re,ire3en, *#an wi,h ,he %$##$wing 3ain %ea,&resL
FFF FFF FFF
=e? The C:MPAN@ agrees ,$ gran, ,he re,ire3en, 'eneJ,s herein *r$vi+e+ ,$ reg&#ar
e3*#$)ees wh$ 3a) 'e se*ara,e+ %r$3 ,he C:MPAN@ %$r an) $% ,he %$##$wing reas$nsL
FFF FFF FFF
>*$n reaching ,he age $% siF,) =-(? )ears $r &*$n c$3*#e,ing ,wen,)5Jve =!2? )ears $% service
,$ ,he C:MPAN@, whichever c$3es Jrs,, an+ ,he e3*#$)ee sha## 'e c$3*&#s$r) re,ire+ an+
*ai+ ,he re,ire3en, 'eneJ,s herein *r$vi+e+.P
Ar,. !1" $% ,he La'$r C$+e as w$r+e+ *er3i,s e3*#$)ers an+ e3*#$)ees ,$ JF ,he a**#ica'#e
re,ire3en, age a, 'e#$w -( )ears. M$re$ver, *r$vi+ing %$r ear#) re,ire3en, +$es n$,
c$ns,i,&,e +i3in&,i$n $% 'eneJ,s. In a#3$s, a## c$&n,ries ,$+a), ear#) re,ire3en,, i.e., 'e%$re
age -(, is c$nsi+ere+ a rewar+ %$r services ren+ere+ since i, ena'#es an e3*#$)ee ,$ rea* ,he
%r&i,s $% his #a'$r ` *ar,ic&#ar#) re,ire3en, 'eneJ,s, whe,her #&3*5s&3 $r $,herwise ` a, an
ear#ier age, when sai+ e3*#$)ee, in *res&3a'#) 'e,,er *h)sica# an+ 3en,a# c$n+i,i$n, can
enE$) ,he3 'e,,er an+ #$nger. As a 3a,,er $% %ac,, $ne $% ,he a+van,ages $% ear#) re,ire3en, is
,ha, ,he c$rres*$n+ing re,ire3en, 'eneJ,s, &s&a##) c$nsis,ing $% a s&'s,an,ia# cash win+%a##,
Page !
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
can ear#) $n 'e *&, ,$ *r$+&c,ive an+ *r$J,a'#e &ses ') wa) $% inc$3e5genera,ing
inves,3en,s, ,here') aK$r+ing a 3$re signiJcan, 3eas&re $% Jnancia# sec&ri,) an+
in+e*en+ence %$r ,he re,iree wh$, &* ,i## ,hen, ha+ ,$ c$n,en+ wi,h #i%eSs vicissi,&+es wi,hin ,he
*ara3e,ers $% his %$r,nigh,#) $r wee<#) wages. Th&s we are n$w seeing 3an) CBAs wi,h s&ch
ear#) re,ire3en, *r$visi$ns. An+ ,he sa3e cann$, 'e c$nsi+ere+ a +i3in&,i$n $% e3*#$)3en,
'eneJ,s.
I, is a#s$ %&r,her arg&e+ ,ha,, 'eing a &ni$n 3e3'er, *riva,e res*$n+en, is '$&n+ ') ,he CBA
'eca&se i,s ,er3s an+ c$n+i,i$ns c$ns,i,&,e ,he #aw 'e,ween ,he *ar,ies. The *ar,ies are
'$&n+ n$, $n#) ,$ ,he %&#J##3en, $% wha, has 'een eF*ress#) s,i*&#a,e+ '&, a#s$ ,$ a## ,he
c$nseA&ences which acc$r+ing ,$ ,heir na,&re, 3a) 'e in <ee*ing wi,h g$$+ %ai,h, &sage an+
#aw. I, 'in+s n$, $n#) ,he &ni$n '&, a#s$ i,s 3e3'ers. Th&s, ,he S$#ici,$r Genera# sai+L
PPriva,e res*$n+en, cann$, ,here%$re c#ai3 i##ega# +is3issa# when he was c$3*&#s$r) re,ire+
a%,er ren+ering ,wen,)5Jve =!2? )ears $% service since his re,ire3en, is in acc$r+ance wi,h ,he
CBA.P
A CBA inc$r*$ra,es ,he agree3en, reache+ a%,er neg$,ia,i$ns 'e,ween e3*#$)er an+
'argaining agen, wi,h res*ec, ,$ ,er3s an+ c$n+i,i$ns $% e3*#$)3en,. A CBA is n$, an
$r+inar) c$n,rac,. P=A?s a #a'$r c$n,rac, wi,hin ,he c$n,e3*#a,i$n $% Ar,ic#e 1"(( $% ,he Civi#
C$+e $% ,he Phi#i**ines which g$verns ,he re#a,i$ns 'e,ween #a'$r an+ ca*i,a#, =i,? is n$,
3ere#) c$n,rac,&a# in na,&re '&, i3*resse+ wi,h *&'#ic in,eres,, ,h&s i, 3&s, )ie#+ ,$ ,he
c$33$n g$$+. As s&ch, i, 3&s, 'e c$ns,r&e+ #i'era##) ra,her ,han narr$w#) an+ ,echnica##),
an+ ,he c$&r,s 3&s, *#ace a *rac,ica# an+ rea#is,ic c$ns,r&c,i$n &*$n i,, giving +&e
c$nsi+era,i$n ,$ ,he c$n,eF, in which i, is neg$,ia,e+ an+ *&r*$se which i, is in,en+e+ ,$
serve.P
Being a *r$+&c, $% neg$,ia,i$n, ,he CBA 'e,ween ,he *e,i,i$ner an+ ,he &ni$n in,en+e+ ,he
*r$visi$n $n c$3*&#s$r) re,ire3en, ,$ 'e 'eneJcia# ,$ ,he e3*#$)ees5&ni$n 3e3'ers,
inc#&+ing herein *riva,e res*$n+en,. When *riva,e res*$n+en, ra,iJe+ ,he CBA wi,h ,he &ni$n,
he n$, $n#) agree+ ,$ ,he CBA '&, a#s$ agree+ ,$ c$n%$r3 ,$ an+ a'i+e ') i,s *r$visi$ns. Th&s,
i, cann$, 'e sai+ ,ha, he was i##ega##) +is3isse+ when ,he CBA *r$visi$n $n c$3*&#s$r)
re,ire3en, was a**#ie+ ,$ his case.
:n ,he sec$n+ iss&eL
In San&o P$ilippines :or+ers Mnion O PSSLM vs. CaPizares, a case ci,e+ ') ,he
*e,i,i$ner, ,his C$&r, r&#e+L
MF F F Hence, $n#) +is*&,es inv$#ving ,he &ni$n an+ ,he c$3*an) sha## 'e re%erre+ ,$ ,he
grievance 3achiner) $r v$#&n,ar) ar'i,ra,$rs.
In ,he ins,an, case, '$,h ,he &ni$n an+ ,he c$3*an) are &ni,e+ $r have c$3e ,$ an agree3en,
regar+ing ,he +is3issa# $% *riva,e res*$n+en,s. N$ grievance 'e,ween ,he3 eFis,s which c$&#+
'e 'r$&gh, ,$ a grievance 3achiner). The *r$'#e3 $r +is*&,e in ,he *resen, case is 'e,ween
,he &ni$n an+ ,he c$3*an) $n ,he $ne han+ an+ s$3e &ni$n an+ n$n5&ni$n 3e3'ers wh$
were +is3isse+, $n ,he $,her han+. The +is*&,e has ,$ 'e se,,#e+ 'e%$re an i3*ar,ia# '$+).
The grievance 3achiner) wi,h 3e3'ers +esigna,e+ ') ,he &ni$n an+ ,he c$3*an) cann$, 'e
eF*ec,e+ ,$ 'e i3*ar,ia# agains, ,he +is3isse+ e3*#$)ees. 7&e *r$cess +e3an+s ,ha, ,he
+is3isse+ w$r<ersG grievances 'e ven,i#a,e+ 'e%$re an i3*ar,ia# '$+). Since ,here has a#rea+)
'een an ac,&a# ,er3ina,i$n, ,he 3a,,er %a##s wi,hin ,he E&ris+ic,i$n $% ,he La'$r Ar'i,er.P
A**#)ing ,he sa3e ra,i$na#e ,$ ,he case a, 'ar, i, cann$, 'e sai+ ,ha, ,he P+is*&,eP is 'e,ween
,he &ni$n an+ *e,i,i$ner c$3*an) 'eca&se '$,h have *revi$&s#) agree+ &*$n ,he *r$visi$n $n
Pc$3*&#s$r) re,ire3en,P as e3'$+ie+ in ,he CBA. A#s$, i, was $n#) *riva,e res*$n+en, $n his
Page !.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$wn wh$ A&es,i$ne+ ,he c$3*&#s$r) re,ire3en,. Th&s, ,he case is *r$*er#) +en$3ina,e+ as a
P,er3ina,i$n +is*&,eP which c$3es &n+er ,he E&ris+ic,i$n $% #a'$r ar'i,ers.
2. 3hil. Airlines vs. Airline 3ilo(s Asso. 7f 3hils., G.R. No. 1*3)-), 2anuar$ 1., 2""2
9ac,sL
This case was s,e33e+ %r$3 *e,i,i$nerSs ac, $% &ni#a,era##) re,iring air#ine *i#$, Ca*,ain A#'in$
C$##an,es $wn Re,ire3en, P#an. C$n,en+ing, inter alia, ,ha, ,he re,ire3en, $% Ca*,ain C$##an,es
c$ns,i,&,e+ i##ega# +is3issa# an+ &ni$n '&s,ing. The Secre,ar) $% ,he 7:LE ass&3e+
E&ris+ic,i$n $ver ,he #a'$r +is*&,e. Base $n his +ecisi$n, PAL sh$&#+ Jrs, c$ns&#, ,he *i#$,
c$ncerne+ 'e%$re i3*#e3en,ing his re,ire3en,.
Iss&eL
Is ,he +ecisi$n $% ,he Secre,ar) $% 7:LE c$rrec, in sa)ing ,ha, in ,he eFercise $% re,iring ,heir
e3*#$)ees, ,he e3*#$)er sh$&#+ Jrs, c$ns&#, ,heir e3*#$)ee c$ncerne+ 'e%$re i3*#e3en,ing
,he re,ire3en,W
R&#ingL
N:. The re,ire3en, $% an e3*#$)ee 3a) 'e +$ne &*$n ini,ia,ive an+ $*,i$n $% ,he
3anage3en,. S&re#), ,he reA&ire3en, ,$ c$ns&#, ,he *i#$,s *ri$r ,$ ,heir re,ire3en, +e%ea,s ,he
eFercise ') 3anage3en, $% i,s $*,i$n ,$ re,ire ,he sai+ e3*#$)ees. I, gives ,he *i#$, c$ncerne+
an &n+&e *rer$ga,ive ,$ assai# ,he +ecisi$n $% 3anage3en,. 7&e *r$cess $n#) reA&ires ,ha,
n$,ice 'e given ,$ ,he *i#$, $% *e,i,i$nerSs +ecisi$n ,$ re,ire hi3. Hence, ,he Secre,ar) $% La'$r
$vers,e**e+ ,he '$&n+aries $% reas$n an+ %airness when he i3*$se+ $n *e,i,i$ner ,he
a++i,i$na# reA&ire3en, $% c$ns&#,ing each *i#$, *ri$r ,$ re,iring hi3.
9&r,her3$re, when ,he Secre,ar) $% La'$r an+ E3*#$)3en, i3*$se+ ,he a++e+ reA&ire3en,
,ha, *e,i,i$ner sh$&#+ c$ns&#, i,s *i#$,s *ri$r ,$ re,ire3en,, he res$#ve+ a A&es,i$n which was
$&,si+e $% ,he iss&es raise+, ,here') +e*riving *e,i,i$ner an $**$r,&ni,) ,$ 'e hear+ $n ,his
*$in,.
3. Cain(a Ca(holic School vs. Cain(a Ca(holic School #/%lo$ees <nion, G.R. No.
1.1"21, Ma$ *, 2"") ci(ing 199) 3an(ranco Nor(h #E%ress
9ac,sL
:n - March 191-, a C$##ec,ive Bargaining Agree3en, =CBA? was en,ere+ in,$ 'e,ween Cain,a
Ca,h$#ic Sch$$# =Sch$$#? an+ ,he Cain,a Ca,h$#ic Sch$$# E3*#$)ees >ni$n =>ni$n? eKec,ive 1
6an&ar) 191- ,$ 1 Ma) 1919.
:n 12 :c,$'er 199, ,he Sch$$# re,ire+ L#agas an+ 6avier, wh$ ha+ ren+ere+ 3$re ,han ,wen,)
=!(? )ears $% c$n,in&$&s service, *&rs&an, ,$ Sec,i$n !, Ar,ic#e C $% ,he CBA, ,$ wi,L
MAn e3*#$)ee 3a) 'e re,ire+, ei,her &*$n a**#ica,i$n ') ,he e3*#$)ee hi3se#% $r ') ,he
+ecisi$n $% ,he 7irec,$r $% ,he Sch$$#, &*$n reaching ,he age $% siF,) =-(? $r a%,er having
ren+ere+ a, #eas, ,wen,) =!(? )ears $% service ,$ ,he Sch$$# ,he #as, ,hree =? )ears $% which
3&s, 'e c$n,in&$&s.N
Page !2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Three =? +a)s #a,er, ,he >ni$n J#e+ a n$,ice $% s,ri<e wi,h ,he Na,i$na# C$nci#ia,i$n an+
Me+ia,i$n B$ar+ =NCMB?. :n 1 N$ve3'er 199, ,he >ni$n s,r&c< an+ *ic<e,e+ ,he Sch$$#Gs
en,rances.
:n !" 6&#) 199., ,he >ni$n J#e+ a c$3*#ain,
9
%$r &n%air #a'$r *rac,ice 'e%$re ,he NLRC. Three
=? iss&es were *asse+ &*$n ') ,he NLRC, na3e#)L =1? whe,her ,he re,ire3en, $% L#agas an+
6avier is #ega#O =!? whe,her ,he Sch$$# is g&i#,) $% &n%air #a'$r *rac,iceO an+ =? whe,her ,he
s,ri<e is #ega#.
The NLRC r&#e+ ,ha, ,he re,ire3en, $% L#agas an+ 6avier is #ega# as ,he Sch$$# was 3ere#)
eFercising an $*,i$n given ,$ i, &n+er ,he CBA. The NLRC +is3isse+ ,he &n%air #a'$r *rac,ice
charge agains, ,he Sch$$# %$r ins&Icienc) $% evi+ence. 9&r,her3$re, i, was %$&n+ ,ha, ,he
s,ri<e +ec#are+ ') ,he >ni$n %r$3 1 ,$ 1! N$ve3'er 199 is i##ega#, ,here') +ec#aring a## &ni$n
$Icers ,$ have #$s, ,heir e3*#$)3en, s,a,&s.
In reversing ,he +ecisi$n $% ,he NLRC, ,he C$&r, $% A**ea#s c$ns,r&e+ ,he re,ire3en, $% L#agas
an+ 6avier as an ac, a3$&n,ing ,$ &n%air #a'$r *rac,ice when viewe+ agains, ,he 'ac<+r$* $%
,he re#evan, circ&3s,ances $',aining in ,he case.
Iss&eL
The <e) iss&e re3ains whe,her ,he %$rce+ re,ire3en, $% L#agas an+ 6avier was a va#i+ eFercise
$% 3anage3en, *rer$ga,ive. >n+$&',e+#), ,he re,ire3en, $% ,he ,w$ =!? &ni$n $Icers
,riggere+ ,he +ec#ara,i$n $% s,ri<e ') ,he >ni$n, an+ ,he r&#ing $n whe,her ,he s,ri<e was #ega#
is high#) +e*en+en, $n whe,her ,he re,ire3en, was va#i+.
R&#ingL
We are i3*e##e+ ,$ reverse ,he C$&r, $% A**ea#s an+ aIr3 ,he va#i+i,) $% ,he ,er3ina,i$n $%
e3*#$)3en, $% L#agas an+ 6avier, arising as i, +i+ %r$3 a 3anage3en, *rer$ga,ive gran,e+ ')
,he 3&,&a##)5neg$,ia,e+ CBA 'e,ween ,he Sch$$# an+ ,he >ni$n.
P&rs&an, ,$ ,he eFis,ing CBA, ,he Sch$$# has ,he $*,i$n ,$ re,ire an e3*#$)ee &*$n reaching
,he age #i3i, $% siF,) =-(? $r a%,er having ren+ere+ a, #eas, ,wen,) =!(? )ears $% service ,$ ,he
Sch$$#, ,he #as, ,hree =? )ears $% which 3&s, 'e c$n,in&$&s.
Re,ire3en, is a +iKeren, s*ecie $% ,er3ina,i$n $% e3*#$)3en, %r$3 +is3issa# %$r E&s, $r
a&,h$ri4e+ ca&ses &n+er Ar,ic#es !1! an+ !1 $% ,he La'$r C$+e. Whi#e in a## ,hree cases, ,he
e3*#$)ee ,$ 'e ,er3ina,e+ 3a) 'e &nwi##ing ,$ *ar, %r$3 service, ,here are e3inen,#) higher
s,an+ar+s ,$ 'e 3e, ') ,he e3*#$)er va#i+#) eFercising ,he *rer$ga,ive ,$ +is3iss %$r E&s, $r
a&,h$ri4e+ ca&ses. In ,h$se ,w$ ins,ances, i, is in+is*ensa'#e ,ha, ,he e3*#$)er es,a'#ish ,he
eFis,ence $% E&s, $r a&,h$ri4e+ ca&ses %$r +is3issa# as s*e##e+ $&, in ,he La'$r C$+e.
Re,ire3en,, $n ,he $,her han+, is ,he res&#, $% a 'i#a,era# ac, $% ,he *ar,ies, a v$#&n,ar)
agree3en, 'e,ween ,he e3*#$)er an+ ,he e3*#$)ee where') ,he #a,,er a%,er reaching a
cer,ain age agrees an+B$r c$nsen,s ,$ sever his e3*#$)3en, wi,h ,he %$r3er.
Ar,ic#e !1" $% ,he La'$r C$+e, as a3en+e+, g$verns re,ire3en, $% e3*#$)ees, s,a,ingL
ART. !1". Re,ire3en,. R An) e3*#$)ee 3a) 'e re,ire+ &*$n reaching ,he re,ire3en, age
es,a'#ishe+ in ,he c$##ec,ive 'argaining agree3en, $r $,her a**#ica'#e e3*#$)3en, c$n,rac,.
In case $% re,ire3en,, ,he e3*#$)ee sha## 'e en,i,#e+ ,$ receive s&ch re,ire3en, 'eneJ,s as he
3a) have earne+ &n+er eFis,ing #aws an+ an) c$##ec,ive 'argaining agree3en, an+ $,her
agree3en,sL Pr$vi+e+, h$wever, Tha, an e3*#$)eeGs re,ire3en, 'eneJ,s &n+er an) c$##ec,ive
'argaining agree3en, an+ $,her agree3en,s sha## n$, 'e #ess ,han ,h$se *r$vi+e+ herein.
Page !-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In ,he a'sence $% a re,ire3en, *#an $r agree3en, *r$vi+ing %$r re,ire3en, 'eneJ,s $%
e3*#$)ees in ,he es,a'#ish3en,, an e3*#$)ee &*$n reaching ,he age $% siF,) =-(? )ears $r
3$re, '&, n$, 'e)$n+ siF,)5Jve =-2? )ears which is here') +ec#are+ ,he c$3*&#s$r) re,ire3en,
age, wh$ has serve+ a, #eas, Jve =2? )ears in ,he sai+ es,a'#ish3en,, 3a) re,ire an+ sha## 'e
en,i,#e+ ,$ re,ire3en, *a) eA&iva#en, ,$ a, #eas, $ne5ha#% =1B!? 3$n,h sa#ar) %$r ever) )ear $%
service, a %rac,i$n $% a, #eas, siF =-? 3$n,hs 'eing c$nsi+ere+ as $ne wh$#e )ear.
The CBA in ,he case a, 'ar es,a'#ishe+ -( as ,he c$3*&#s$r) re,ire3en, age. H$wever, i, is n$,
a##ege+ ,ha, ei,her 6avier $r L#agas ha+ reache+ ,he c$3*&#s$r) re,ire3en, age $% -( )ears,
'&, ins,ea+ ,ha, ,he) ha+ ren+ere+ a, #eas, !( )ears $% service in ,he Sch$$#, ,he #as, ,hree =?
)ears c$n,in&$&s. C#ear#), ,he CBA *r$visi$n a##$ws ,he e3*#$)ee ,$ 'e re,ire+ ') ,he Sch$$#
even 'e%$re reaching ,he age $% -(, *r$vi+e+ ,ha, heBshe ha+ ren+ere+ !( )ears $% service.
W$&#+ s&ch a s,i*&#a,i$n 'e va#i+W 6&ris*r&+ence aIr3s ,he *$si,i$n $% ,he Sch$$#.
B) ,heir acce*,ance $% ,he CBA, ,he >ni$n an+ i,s 3e3'ers are $'#ige+ ,$ a'i+e ') ,he
c$33i,3en,s an+ #i3i,a,i$ns ,he) ha+ agree+ ,$ ce+e ,$ 3anage3en,. The A&es,i$ne+
re,ire3en, *r$visi$ns cann$, 'e +ee3e+ as an i3*$si,i$n %$is,e+ $n ,he >ni$n, which ver)
we## ha+ ,he righ, ,$ have re%&se+ ,$ agree ,$ a##$wing 3anage3en, ,$ re,ire re,ire e3*#$)ees
wi,h a, #eas, !( )ears $% service.
I, sh$&#+ n$, 'e ,a<en ,$ 3ean ,ha, re,ire3en, *r$visi$ns agree+ &*$n in ,he CBA are
a's$#&,e#) 'e)$n+ ,he a3'i, $% E&+icia# review an+ n&##iJca,i$n. A CBA, as a #a'$r c$n,rac,, is
n$, 3ere#) c$n,rac,&a# in na,&re '&, i3*resse+ wi,h *&'#ic in,eres,. I% ,he re,ire3en,
*r$visi$ns in ,he CBA r&n c$n,rar) ,$ #aw, *&'#ic 3$ra#s, $r *&'#ic *$#ic), s&ch *r$visi$ns 3a)
ver) we## 'e v$i+e+. Cer,ain#), a CBA *r$visi$n $r e3*#$)3en, c$n,rac, ,ha, w$&#+ a##$w
3anage3en, ,$ s&'ver, sec&ri,) $% ,en&re an+ a##$w i, ,$ &ni#a,era##) Mre,ireN e3*#$)ees a%,er
$ne 3$n,h $% service cann$, 'e &*he#+. Nei,her wi## ,he C$&r, s&s,ain a re,ire3en, c#a&se ,ha,
en,i,#es ,he re,iring e3*#$)ee ,$ 'eneJ,s #ess ,han wha, is g&aran,ee+ &n+er Ar,ic#e !1" $% ,he
La'$r C$+e, *&rs&an, ,$ ,he *r$visi$nGs eF*ress *r$vis$ ,here,$ in ,he *r$visi$n.
@e, ,he CBA in ,he case a, 'ar c$n,ains n$ s&ch inJr3i,ies which 3&s, 'e s,ric<en +$wn. There
is n$ essen,ia# +iKerence 'e,ween ,he CBA *r$visi$n in ,his case an+ ,h$se we aIr3e+ in
Pan,ranc$ an+ Pr$gressive. Twen,) )ears is a 3$re ,han i+ea# #eng,h $% service an e3*#$)ee
can ren+er ,$ $ne e3*#$)er. >n+er $r+inar) c$n,e3*#a,i$n, a CBA *r$visi$n en,i,#ing an
e3*#$)ee ,$ re,ire a%,er !( )ears $% service an+ acc$r+ing#) c$##ec, re,ire3en, 'eneJ,s is
Mrewar+ %$r services ren+ere+ since i, ena'#es an e3*#$)ee ,$ rea* ,he %r&i,s $% his #a'$r `
*ar,ic&#ar#) re,ire3en, 'eneJ,s, whe,her #&3*5s&3 $r $,herwise ` a, an ear#ier age, when
sai+ e3*#$)ee, in *res&3a'#) 'e,,er *h)sica# an+ 3en,a# c$n+i,i$n, can enE$) ,he3 'e,,er
an+ #$nger.N
N$ne,he#ess, ,he *re3ise warran,s c$nsi+ering whe,her 3anage3en, 3a) 'e *rec#&+e+ %r$3
re,iring an e3*#$)ee wh$3 i, is en,i,#e+ ,$ re,ire &*$n a +e,er3ina,i$n ,ha, ,he ,r&e ca&se %$r
c$3*&#s$r) re,ire3en, is ,he e3*#$)eeGs &ni$n ac,ivi,ies.
The #aw an+ ,his C$&r, %r$wns &*$n &n%air #a'$r *rac,ices ') 3anage3en,, inc#&+ing s$5ca##e+
&ni$n5'&s,ing. S&ch i##ega# *rac,ices wi## n$, 'e s&s,aine+ ') ,he C$&r,, even i% g&ise+ &n+er
$s,ensi'#) #ega# *re3ises. B&, wi,h res*ec, ,$ an ac,ive &ni$ni4e+ e3*#$)ee wh$ c#ai3s
having #$s, hisBher E$' %$r &ni$n ac,ivi,ies, ,here are +iKeren, c$nsi+era,i$ns *resen,e+ i% ,he
,er3ina,i$n is E&s,iJe+ &n+er E&s, $r a&,h$ri4e+ ca&se &n+er ,he La'$r C$+eO an+ i% se*ara,i$n
%r$3 service is eKec,e+ ,hr$&gh ,he eFercise $% a +&#) acc$r+e+ 3anage3en, *rer$ga,ive ,$
re,ire an e3*#$)ee. There is *erha*s a grea,er i3*era,ive ,$ rec$gni4e ,he 3anage3en,
*rer$ga,ive $n re,ire3en, ,han ,he *rer$ga,ive ,$ +is3iss e3*#$)ees %$r E&s, $r a&,h$ri4e+
Page !"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ca&ses. 9$r $ne, ,here is a grea,er s&'Eec,ivi,), n$, ,$ 3en,i$n %ac,&a# +is*&,e, a,,ache+ ,$ ,he
c$nce*,s $% E&s, $r a&,h$ri4e+ ca&se ,han re,ire3en, which n$r3a##) c$n,e3*#a,es 3ere#) ,he
a,,ain3en, $% a cer,ain age $r a cer,ain n&3'er $% )ears in ,he service. I, w$&#+ 'e easier %$r
3anage3en, +esir$&s ,$ e#i3ina,e *es<) &ni$n 3e3'ers ,$ a'&se ,he *rer$ga,ive $%
,er3ina,i$n %$r s&ch *&r*$se since ,he +e,er3ina,i$n $% E&s, $r a&,h$ri4e+ ca&se is rare#) a
si3*#is,ic A&es,i$n, '&, inv$#ves %ac,s high#) *r$ne ,$ +is*&,e an+ s&'Eec,ive in,er*re,a,i$n.
:n ,he $,her han+, ,he eFercise ') 3anage3en, $% i,s re,ire3en, *rer$ga,ive is #ess
s&sce*,i'#e ,$ +&'i,a'i#i,) as ,$ ,he A&es,i$n whe,her an e3*#$)ee c$&#+ 'e va#i+#) re,ire+.
The $n#) %ac,&a# 3a,,er ,$ c$nsi+er ,hen is whe,her ,he e3*#$)ee c$ncerne+ ha+ a,,aine+ ,he
reA&isi,e age $r n&3'er $% )ears in service *&rs&an, ,$ ,he CBA $r e3*#$)3en, agree3en,, $r
i% n$ne, *&rs&an, ,$ Ar,ic#e !1" $% ,he La'$r C$+e. In %ac,, ,he A&es,i$n $% ,he a3$&n, $%
re,ire3en, 'eneJ,s is 3$re #i<e#) ,$ 'e A&es,i$ne+ ,han ,he re,ire3en, i,se#%. Evi+en,#), i, 3$re
c#ear#) e3erges in ,he case $% re,ire3en, ,ha, 3anage3en, w$&#+ an)wa) have ,he righ, ,$
re,ire an e3*#$)ee, n$ 3a,,er ,he +egree $% inv$#ve3en, $% sai+ e3*#$)ee in &ni$n ac,ivi,ies.
There is an$,her *$in, ,ha, 3i#i,a,es agains, ,he >ni$n. A r&#ing in i,s %av$r is ,an,a3$&n, ,$ a
c$ncessi$n ,ha, a va#i+#) +rawn 3anage3en, *rer$ga,ive ,$ re,ire i,s e3*#$)ees can 'e
E&+icia##) in,er%ere+ $n a sh$wing ,ha, ,he e3*#$)ee in A&es,i$n is high#) va#&a'#e ,$ ,he
&ni$n. S&ch a r&#e w$&#+ 'e a s$&rce $% 3ischie%, even i% narr$w#) carve+ $&, ') ,he C$&r,, %$r
i, w$&#+ i3*#) ,ha, an ac,ive &ni$n 3e3'er $r $Icer 3a) 'e, ') reas$n $% hisBher i3*$r,ance
,$ ,he &ni$n, s$3eh$w eFe3*,e+ %r$3 ,he n$r3a# s,an+ar+s $% re,ire3en, a**#ica'#e ,$ ,he
$,her, *erha*s #ess vi,a# 3e3'ers $% ,he &ni$n. In+ee+, $&r #awGs *r$,ec,i$n $% ,he righ, ,$
$rgani4e #a'$r +$es n$, ,rans#a,e in,$ *er*e,&a# E$' sec&ri,) %$r &ni$n #ea+ers ') reas$n $%
,heir #ea+ershi* r$#e a#$ne. Sh$&#+ we en,er,ain s&ch a n$,i$n, ,he +e,ri3en, is &#,i3a,e#) ,$
,he &ni$n i,se#%, *r$3$,ing as i, w$&#+ a s,agna,ing en,renche+ #ea+ershi*.
We can ,h&s can c$3%$r,a'#) &*h$#+ ,he *rinci*#e, as rei,era,e+ in Phi#i**ine Air#ines,
.
,ha,
,he eFercise ') ,he e3*#$)er $% a va#i+ an+ +&#) es,a'#ishe+ *rer$ga,ive ,$ re,ire an e3*#$)ee
+$es n$, c$ns,i,&,e &n%air #a'$r *rac,ice.
*. 2acule vs. Silli/an <niversi($, G.R. No. 1.)93*, March 1), 2""7
9ac,sL
Res*$n+en,, ,hr$&gh i,s H&3an Res$&rces 7eve#$*3en, :Ice, in%$r3e+ *e,i,i$ner ,ha, she
was a**r$aching her 2,h )ear $% service wi,h ,he &niversi,) an+ was +&e %$r a&,$3a,ic
re,ire3en, $n N$ve3'er 11, 199, a, which ,i3e she w$&#+ 'e 2" )ears $#+. This was
*&rs&an, ,$ res*$n+en,Gs re,ire3en, *#an %$r i,s e3*#$)ees which *r$vi+e+ ,ha, i,s 3e3'ers
c$&#+ 'e a&,$3a,ica##) re,ire+ P&*$n reaching ,he age $% -2 $r a%,er 2 )ears $% &nin,err&*,e+
service ,$ ,he &niversi,).P Res*$n+en, reA&ire+ cer,ain +$c&3en,s in c$nnec,i$n wi,h
*e,i,i$nerGs i3*en+ing re,ire3en,.
Pe,i,i$ner e3*ha,ica##) insis,e+ ,ha, ,he c$3*&#s$r) re,ire3en, &n+er ,he *#an was
,an,a3$&n, ,$ a +is3issa# an+ *#ea+e+ wi,h res*$n+en, ,$ 'e a##$we+ ,$ w$r< &n,i# ,he age $%
-( 'eca&se ,his was ,he 3ini3&3 age a, which she c$&#+ A&a#i%) %$r SSS *ensi$n. B&,
res*$n+en, s,$$+ *a, $n i,s +ecisi$n ,$ re,ire her, ci,ing Pc$3*an) *$#ic).P
:n N$ve3'er 12, 199, *e,i,i$ner J#e+ a c$3*#ain, in ,he Na,i$na# La'$r Re#a,i$ns
C$33issi$n =NLRC? %$r P,er3ina,i$n $% service wi,h *re#i3inar) inE&nc,i$n an+B$r res,raining
$r+er.P
Page !1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
:n N$ve3'er 11, 199, res*$n+en, c$3*&#s$ri#) re,ire+ *e,i,i$ner.
Iss&eLS
1? +i+ res*$n+en,Gs re,ire3en, *#an i3*$sing a&,$3a,ic re,ire3en, a%,er 2 )ears $% service
c$n,ravene ,he sec&ri,) $% ,en&re c#a&se in ,he 191" C$ns,i,&,i$n an+ ,he La'$r C$+eW
!? +i+ res*$n+en, c$33i, i##ega# +is3issa# ') re,iring *e,i,i$ner s$#e#) ') reas$n $% s&ch
*r$visi$n in i,s re,ire3en, *#anW
La'$r Ar'i,erL %$&n+ res*$n+en, g&i#,) $% i##ega# +is3issa# an+ $r+ere+ ,ha, *e,i,i$ner 'e
reins,a,e+ an+ *ai+ %&## 'ac<wages.
NLRCL reverse+ ,he #a'$r ar'i,erGs +ecisi$n an+ +is3isse+ ,he c$3*#ain, %$r #ac< $% 3eri, an+
#i<ewise +enie+ *e,i,i$nerGs 3$,i$n %$r rec$nsi+era,i$n.
CAL aIr3e+ ,he NLRC.
Hence ,his *e,i,i$n.
R&#ingL
A99IRMATI8E.
Re,ire3en, *#ans a##$wing e3*#$)ers ,$ re,ire e3*#$)ees wh$ are #ess ,han ,he c$3*&#s$r)
re,ire3en, age $% -2 are n$, per se re*&gnan, ,$ ,he c$ns,i,&,i$na# g&aran,) $% sec&ri,) $%
,en&re. Ar,ic#e !1" $% ,he La'$r C$+e *r$vi+esL
ART. !1". Re,ire3en, 5 An) e3*#$)ee 3a) 'e re,ire+ &*$n reaching ,he re,ire3en, age
es,a'#ishe+ in ,he c$##ec,ive 'argaining agree3en, $r $,her a**#ica'#e e3*#$)3en, c$n,rac,.
CFF
B) i,s eF*ress #ang&age, ,he La'$r C$+e *er3i,s e3*#$)ers an+ e3*#$)ees ,$ JF ,he
a**#ica'#e re,ire3en, age a, 'e#$w -( )ears. H$wever, a%,er reviewing ,he assai#e+ +ecisi$n
,$ge,her wi,h ,he r&#es an+ reg&#a,i$ns $% res*$n+en,Gs re,ire3en, *#an, we Jn+ ,ha, ,he *#an
r&ns a%$&# $% ,he c$ns,i,&,i$na# g&aran,) $% sec&ri,) $% ,en&re c$n,aine+ in Ar,ic#e CIII, a#s$
<n$wn as ,he *r$visi$n $n S$cia# 6&s,ice an+ H&3an Righ,s.
The CA, in r&#ing agains, *e,i,i$ner, *re3ise+ i,s +ecisi$n ,$ &*h$#+ ,he re,ire3en, *#an $n her
v$#&n,ar) *ar,ici*a,i$n ,hereinL
The *e,i,i$ner in ,his case 3a), h$wever, arg&e ,ha, ,he Pan,ranc$ case is n$, a**#ica'#e in
,he case a, 'ar as ,he c$n,r$vers) in ,he sai+ case inv$#ves a c$3*&#s$r) re,ire3en, $n ,he
'asis $% ,he #eng,h $% service ren+ere+ ') ,he e3*#$)ee as agree+ in an eFis,ing CBA, whereas
in ,he *resen, case, ,he *riva,e res*$n+en, c$3*&#s$ri#) re,ire+ ,he *e,i,i$ner n$, 'ase+ $n a
CBA '&, $n ,he re,ire3en, sche3e *r$vi+e+ %$r in ,he *riva,e res*$n+en,Gs re,ire3en, *#an.
N$ne,he#ess, ,his arg&3en, 3&s, %ai#. The c$n,rac, JFing %$r re,ire3en, age as a##$we+ &n+er
Ar,ic#e !1" $% ,he La'$r C$+e +$es n$, eFc#&sive#) re%er ,$ CBA which *r$vi+es %$r an agree+
re,ire3en, age. The sai+ *r$visi$n eF*#ici,#) a##$ws, as we##, $,her a**#ica'#e e3*#$)3en,
c$n,rac, ,$ JF re,ire3en, age.
The rec$r+s +isc#$se ,ha, ,he *riva,e res*$n+en,Gs Re,ire3en, P#an has 'een in eKec, %$r 3$re
,han ( )ears. The sai+ *#an is +ee3e+ in,egra,e+ in,$ ,he e3*#$)3en, c$n,rac, 'e,ween
*riva,e res*$n+en, an+ i,s e3*#$)ees as evi+ence+ ') ,he #a,,erGs v$#&n,ar) c$n,ri'&,i$n
,hr$&gh 3$n,h#) sa#ar) +e+&c,i$ns. Previ$&s re,irees have a#rea+) enE$)e+ ,he 'eneJ,s $% ,he
Page !9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
re,ire3en, *#an, an+ ever since ,he sai+ *#an was eKec,e+, n$ A&es,i$ns $r +isagree3en, have
'een raise+, &n,i# ,he sa3e was 3a+e ,$ a**#) ,$ ,he *e,i,i$ner. The *r$'#e3 wi,h ,his #ine $%
reas$ning is ,ha, a *er&sa# $% ,he r&#es an+ reg&#a,i$ns $% ,he *#an sh$ws ,ha, *ar,ici*a,i$n
,herein was n$, v$#&n,ar) a, a##.
R&#e III $% ,he *#an, $n 3e3'ershi*, s,a,e+L
SECTI:N 1 R MEMBERSHIP
A## %&##5,i3e 9i#i*in$ e3*#$)ees $% ,he >niversi,) wi## a&,$3a,ica##) 'ec$3e 3e3'ers $% ,he
P#an, *r$vi+e+, h$wever, ,ha, ,h$se wh$ have re,ire+ %r$3 ,he >niversi,), even i% rehire+, are
n$ #$nger e#igi'#e %$r 3e3'ershi* in ,he P#an. A 3e3'er wh$ c$n,in&es ,$ serve ,he >niversi,)
cann$, wi,h+raw %r$3 ,he P#an.
FFF FFF FFF
SECTI:N ! R E99ECTI8IT@ :9 MEMBERSHIP
Me3'ershi* in ,he P#an s,ar,s $n ,he +a) a *ers$n is hire+ $n a %&##5,i3e 'asis ') ,he
>niversi,).
SECTI:N R TERMINATI:N :9 MEMBERSHIP
Ter3ina,i$n $% 3e3'ershi* in ,he P#an sha## 'e &*$n ,he +ea,h $% ,he 3e3'er, resigna,i$n $r
,er3ina,i$n $% e3*#$)eeGs c$n,rac, ') ,he >niversi,), $r re,ire3en, %r$3 ,he >niversi,).
R&#e I8, $n c$n,ri'&,i$ns, s,a,e+L
The P#an is c$n,ri'&,$r). The >niversi,) sha## se, asi+e an a3$&n, eA&iva#en, ,$ eV $% ,he
'asic sa#aries $% ,he %ac&#,) an+ s,aK. T$ ,his sha## 'e a++e+ a 2V +e+&c,i$n %r$3 ,he 'asic
sa#aries $% ,he %ac&#,) an+ s,aK.
A 3e3'er $n #eave wi,h ,he >niversi,) a**r$va# sha## c$n,in&e *a)ing, 'ase+ $n his *a) whi#e
$n #eave, his #eave wi,h$&, *a) sh$&#+ *a) his c$n,ri'&,i$ns ,$ ,he P#an. H$wever, a 3e3'er,
wh$ has 'een $n #eave wi,h$&, *a) sh$&#+ *a) his c$n,ri'&,i$ns 'ase+ $n his sa#ar) *#&s ,he
>niversi,)Gs c$n,ri'&,i$ns whi#e $n #eave $r ,he %&## a3$&n, wi,hin $ne 3$n,h i33e+ia,e#)
a%,er ,he +a,e $% his reins,a,e3en,. Pr$vi+e+/,0 %&r,her ,ha, i% a 3e3'er has n$ s&Icien,
s$&rce $% inc$3e whi#e $n #eave 3a) *a) wi,hin siF 3$n,hs a%,er his reins,a,e3en,.
9r$3 ,he #ang&age $% ,he %$reg$ing re,ire3en, *#an r&#es, ,he c$3*&#s$r) na,&re $% '$,h
3e3'ershi* in an+ c$n,ri'&,i$n ,$ ,he *#an +e'&n<e+ ,he CAGs ,he$r) ,ha, *e,i,i$nerGs
Pv$#&n,ar) c$n,ri'&,i$nsP were evi+ence $% her wi##ing *ar,ici*a,i$n ,herein. I, was ,hr$&gh n$
v$#&n,ar) ac, $% her $wn ,ha, *e,i,i$ner 'eca3e a 3e3'er $% ,he *#an. In %ac,, ,he $n#) wa)
she c$&#+ have cease+ ,$ 'e a 3e3'er ,here$% was i% she s,$**e+ w$r<ing %$r res*$n+en,
a#,$ge,her. 9&r,her3$re, in ,he r&#e $n c$n,ri'&,i$ns, ,he re*ea,e+ &se $% ,he w$r+ Psha##P
ine#&c,a'#) *$in,e+ ,$ ,he c$nc#&si$n ,ha, e3*#$)ees ha+ n$ ch$ice '&, ,$ c$n,ri'&,e ,$ ,he
*#an =even when ,he) were $n #eave?.
Acc$r+ing ,$ ,he assai#e+ +ecisi$n, res*$n+en,Gs re,ire3en, *#an Pha=+? 'een in eKec, %$r 3$re
,han ( )ears.P Wha, was n$, *$in,e+ $&,, h$wever, was ,ha, ,he re,ire3en, *#an ca3e in,$
'eing in 19"( $r 1! )ears a%,er *e,i,i$ner s,ar,e+ w$r<ing %$r res*$n+en,. In sh$r,, i, was n$,
*ar, $% ,he ,er3s $% e3*#$)3en, ,$ which *e,i,i$ner agree+ when she s,ar,e+ w$r<ing %$r
res*$n+en,. Nei,her +i+ i, 'ec$3e *ar, $% ,h$se ,er3s sh$r,#) ,herea%,er, as ,he CA w$&#+ have
&s 'e#ieve.
Re,ire3en, is ,he res&#, $% a 'i#a,era# ac, $% ,he *ar,ies, a v$#&n,ar) agree3en, 'e,ween ,he
e3*#$)er an+ ,he e3*#$)ee where') ,he #a,,er, a%,er reaching a cer,ain age agrees ,$ sever
his $r her e3*#$)3en, wi,h ,he %$r3er. In Pantrano Nort$ %2press, (n. v. NLRC, ,$ which '$,h
Page (
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he CA an+ res*$n+en, re%er, ,he i3*$si,i$n $% a re,ire3en, age 'e#$w ,he c$3*&#s$r) age $%
-2 was +ee3e+ acce*,a'#e 'eca&se ,his was *ar, $% ,he CBA 'e,ween ,he e3*#$)er an+ ,he
e3*#$)ees. The c$nsen, $% ,he e3*#$)ees, as re*resen,e+ ') ,heir 'argaining &ni,, ,$ 'e
re,ire+ even 'e%$re ,he s,a,&,$r) re,ire3en, age $% -2 was #ai+ $&, c#ear#) in '#ac< an+ whi,e
an+ was ,here%$re in acc$r+ wi,h Ar,ic#e !1".
In ,his case, nei,her ,he CA n$r ,he res*$n+en, ci,e+ an) agree3en,, c$##ec,ive $r $,herwise,
,$ E&s,i%) ,he #a,,erGs i3*$si,i$n $% ,he ear#) re,ire3en, age in i,s re,ire3en, *#an, $*,ing
ins,ea+ ,$ har* $n *e,i,i$nerGs a##ege+ Pv$#&n,ar)P c$n,ri'&,i$ns ,$ ,he *#an, which was si3*#)
&n,r&e. The ,r&,h was ,ha, *e,i,i$ner ha+ n$ ch$ice '&, ,$ *ar,ici*a,e in ,he *#an, given ,ha,
,he $n#) wa) she c$&#+ re%rain %r$3 +$ing s$ was ,$ resign $r #$se her E$'. I, is aFi$3a,ic ,ha,
e3*#$)er an+ e3*#$)ee +$ n$, s,an+ $n eA&a# %$$,ing, a si,&a,i$n which $%,en ca&ses an
e3*#$)ee ,$ ac, $&, $% nee+ ins,ea+ $% an) gen&ine acA&iescence ,$ ,he e3*#$)er. This was
c#ear#) E&s, s&ch an ins,ance.
N$, $n#) was *e,i,i$ner s,i## a g$$+ eigh, )ears awa) %r$3 ,he c$3*&#s$r) re,ire3en, age '&,
she was a#s$ s,i## %&##) ca*a'#e $% +ischarging her +&,ies as sh$wn ') ,he %ac, ,ha,
res*$n+en,Gs '$ar+ $% ,r&s,ees seri$&s#) c$nsi+ere+ rehiring her a%,er ,he eKec,ivi,) $% her
Pc$3*&#s$r) re,ire3en,.P
As a#rea+) s,a,e+, an e3*#$)er is %ree ,$ i3*$se a re,ire3en, age #ess ,han -2 %$r as #$ng as i,
has ,he e3*#$)eesG c$nsen,. S,a,e+ c$nverse#), e3*#$)ees are %ree ,$ acce*, ,he e3*#$)erGs
$Ker ,$ #$wer ,he re,ire3en, age i% ,he) %ee# ,he) can ge, a 'e,,er +ea# wi,h ,he re,ire3en,
*#an *resen,e+ ') ,he e3*#$)er. Th&s, having ,er3ina,e+ *e,i,i$ner s$#e#) $n ,he 'asis $% a
*r$visi$n $% a re,ire3en, *#an which was n$, %ree#) assen,e+ ,$ ') her, res*$n+en, was g&i#,)
$% i##ega# +is3issa#.
A, ,his *$in,, reins,a,e3en, is $&, $% ,he A&es,i$n. Pe,i,i$ner is n$w "1 )ears $#+ an+ ,here%$re
we## $ver ,he s,a,&,$r) c$3*&#s$r) re,ire3en, age. 9$r ,his reas$n, we gran, her se*ara,i$n
*a) in #ie& $% reins,a,e3en,. I, is a#s$ %$r ,his reas$n ,ha, we 3$+i%) ,he awar+ $% 'ac<wages
in her %av$r, ,$ 'e c$3*&,e+ %r$3 ,he ,i3e $% her i##ega# +is3issa# $n N$ve3'er 11, 199 &*
,$ her c$3*&#s$r) re,ire3en, age.
WHERE9:RE, ,he *e,i,i$n is here') GRANTE7.
.. Gloe 9eleco/ vs. Crisologo, G.R. No. 17)**, Augus( 1", 2""7
9ac,sL
Res*$n+en, 6ene,,e Marie B. Cris$#$g$, a #aw)er, E$ine+ G#$'e Te#ec$3 =G#$'e? $n N$ve3'er
, 1991 as a 3anager in i,s c$r*$ra,e #ega# services +e*ar,3en,./-0 Her ,as<s inc#&+e+
neg$,ia,ing, +ra%,ing an+ reviewing ,he c$3*an)Gs s&**#) c$n,rac,s./"0
:n A*ri# 2, !((!, res*$n+en, =wh$ was ,hen *regnan,? was r&she+ ,$ ,he Ma<a,i Me+ica#
Cen,er +&e ,$ *r$%&se '#ee+ing. I, was #a,er +iagn$se+ as a *$ssi'#e 3iscarriage./10
A%,er a wee<5#$ng a'sence, res*$n+en, re*$r,e+ 'ac< ,$ w$r< $n A*ri# 1!, !((!./90 :n ,he
sa3e +a), she ,en+ere+ her resigna,i$n #e,,er eF*#aining ,ha, she was a+vise+ ') her +$c,$r
,$ res, %$r ,he +&ra,i$n $% her *regnanc)./1(0 She a#s$ reA&es,e+ *er3issi$n ,$ eFha&s, her
&n&se+ #eaves &n,i# ,he eKec,ive +a,e $% her resigna,i$n $n Ma) (, !((!./110 G#$'e acce*,e+
her resigna,i$n.
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
:n A*ri# (, !((!, res*$n+en, ca##e+ $n her i33e+ia,e s&*ervis$r, *e,i,i$ner Ma. Cari+a+
G$n4a#es./1!0 In ,he c$&rse $% ,heir c$nversa,i$n, *e,i,i$ner G$n4a#es cas&a##) in%$r3e+
res*$n+en, $% an e53ai# circ&#a,ing wi,hin ,he c$3*an)/10 ,$ ,he eKec, ,ha, she =res*$n+en,?
a##ege+#) s$#ici,e+ 3$ne) %r$3 $ne $% ,he c$3*an)Gs s&**#iers./1.0 Beca&se ,he e53ai# was
n$, %$rwar+e+ ,$ her ='eing i,s s&'Eec,?, res*$n+en, reA&es,e+ a c$*) an+ an $**$r,&ni,) ,$
c$n%r$n, ,he *ers$n=s? res*$nsi'#e. Pe,i,i$ner G$n4a#es +ec#ine+ as ,here was n$ #$nger an)
reas$n ,$ *&rs&e ,he 3a,,er./120
:n Ma) !, !((!, res*$n+en, sen, *e,i,i$ner G$n4a#es a #e,,er c$3*#aining $% her Mi##5
,rea,3en,N ') ,he c$3*an) a%,er she s&'3i,,e+ her resigna,i$n #e,,er./1-0 She a#s$ c$nJ+e+
,ha, she resigne+ $n#) 'eca&se ,he e53ai# +a3age+ her na3e an+ re*&,a,i$n./1"0 9$r ,ha,
reas$n, she reA&es,e+ *e,i,i$ner G$n4a#es ,$ iss&e a cer,iJca,i$n c#earing her $% Man)
wr$ng+$ing, 3isc$n+&c, $r ,ransgressi$n.N/110
Pe,i,i$ner G$n4a#es re3in+e+ res*$n+en, ,ha,, as a %$r3er eFec&,ive, she sh$&#+ have 'een
%a3i#iar wi,h ,he c$3*an)Ss s,an+ar+ $*era,ing *r$ce+&re wi,h regar+ ,$ %$r3er e3*#$)ees.
A## e3*#$)ees 'asica##) &n+erg$ ,he sa3e *r$ce+&re &*$n se*ara,i$n %r$3 ,he c$3*an)./190
G$n4a#es a#s$ reA&es,e+ res*$n+en, ,$ se,,#e her +e',s an+ acc$&n,a'i#i,ies ,$ ,he c$3*an).
/!(0 Meanwhi#e, G#$'e iss&e+ a cer,iJca,i$n a,,es,ing ,$ res*$n+en,Gs e3*#$)3en, in ,he
c$3*an) %r$3 N$ve3'er , 1991 ,$ Ma) (, !((!./!10
:n Ma) !, !((!, res*$n+en, sen, *e,i,i$ners an$,her #e,,er. She insin&a,e+ ,ha, *e,i,i$ners
%$rce+ her ,$ resign an+ rei,era,e+ her +e3an+ ,ha, G#$'e c#ear her na3e./!!0 Pe,i,i$ner
G$n4a#es in%$r3e+ res*$n+en, ,ha, she ha+ ,$ se,,#e her $'#iga,i$ns ,$ G#$'e Jrs, 'e%$re i,
c$&#+ iss&e ,he reA&es,e+ c#earance./!0
Be#ieving ,ha, G#$'e w$&#+ n$, c$3*#) wi,h her +e3an+s, res*$n+en, J#e+ a c$3*#ain, %$r
i##ega# +is3issa# agains, *e,i,i$ners $n 6&#) , !((!./!.0 Acc$r+ing ,$ res*$n+en,, *e,i,i$ners
Jre+ her $n ,he 'asis $% a r&3$r wh$se veraci,) was never *r$ven./!20 She was nei,her
%&rnishe+ a c$*) $% ,he e53ai# n$r a##$we+ ,$ c$n%r$n, ,he *ers$n=s? wh$ circ&#a,e+ i,.
Pe,i,i$ner G$n4a#es i33e+ia,e#) c#$se+ ,he 3a,,er wi,h Jna#i,) wi,h$&, c$n+&c,ing an) inA&ir).
/!-0 9&r,her3$re, *e,i,i$ners %ai#e+ n$, $n#) ,$ a++&ce c#ear an+ s&'s,an,ia# *r$$% $% #$ss $%
c$nJ+ence '&, a#s$ ,$ $'serve +&e *r$cess/!"0 as *e,i,i$ner G$n4a#es s&33ari#) %$rce+ her ,$
resign./!10
Pe,i,i$ners, $n ,he $,her han+, c$n,en+e+ ,ha, res*$n+en,Gs c#ear an+ &neA&iv$ca# resigna,i$n
#e,,er sh$we+ her &nc$n+i,i$na# +esire ,$ resign./!90
R&#ingL
T$ s&**$r, ,heir c$n,en,i$n ,ha, res*$n+en, v$#&n,ari#) resigne+, *e,i,i$ners *resen,e+ her
resigna,i$n #e,,er +a,e+ A*ri# 1!, !((!/.-0L
This is ,$ in%$r3 )$& ,ha, as *er 3) +$c,$rGs a+vice, I have ,$ ,a<e a #$ng res, +&e ,$ a ver)
+iIc&#, *regnanc) an+ $,her hea#,h reas$ns. I a3 ,here%$re ,en+ering 3) resigna,i$n eKec,ive
( Ma) !((! an+ w$&#+ #i<e ,$ reA&es, ,ha, I 'e a##$we+ ,$ eFha&s, a## #eaves +&e ,$ 3e &n,i#
s&ch +a,e. 9&r,her3$re, I here') &n+er,a<e ,$ ,&rn $ver a## 3) *en+ing w$r< ,$ $,her #aw)ers
&n,i# sai+ eKec,ive +a,e $% 3) ,er3ina,i$n.
Than< )$& ver) 3&ch./."0 =e3*hasis s&**#ie+?
Page !
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Res*$n+en, *ers$na##) +ra%,e+ her resigna,i$n #e,,er in a c#ear, c$ncise an+ ca,eg$rica#
#ang&age. I,s c$n,en,, as A&$,e+ a'$ve, c$nJr3e+ her &neA&iv$ca# in,en, ,$ resign.
An e3*#$)ee $% res*$n+en,Gs acc$3*#ishe+ e+&ca,i$na# 'ac<gr$&n+ an+ *r$%essi$na# s,an+ing
wi## n$, easi#) re#inA&ish her #ega# righ,s &n#ess she in,en+s ,$./.10 Res*$n+en,Gs resigna,i$n
#e,,er wi,h$&, +$&', *r$ve+ *e,i,i$nersG asser,i$n ,ha, she v$#&n,ari#) resigne+ %r$3 her E$'.
M$re$ver, ,he resigna,i$n #e,,er was s&'3i,,e+ ') res*$n+en, an+ was acce*,e+ ') G#$'e $n
A*ri# 1!, !((!. This %ac, a#$ne c$3*#e,e#) nega,e+ her c#ai3 ,ha, *e,i,i$ners c$erce+ her ,$
resign $n A*ri# (, !((!. In+ee+, h$w c$&#+ she have 'een %$rce+ ,$ resign $n ,ha, +a,e when
she ha+ a#rea+) ,en+ere+ her resigna,i$n 3$re ,han ,w$ wee<s ear#ierW
Res*$n+en, C$&#+ N$, Have Been C$erce+ $r In,i3i+a,e+. C$erci$n eFis,s when ,here is a
reas$na'#e $r we##5gr$&n+e+ %ear $% an i33inen, evi# &*$n a *ers$n $r his *r$*er,) $r &*$n
,he *ers$n $r *r$*er,) $% his s*$&se, +escen+an,s $r ascen+an,s./210 N$ s&ch si,&a,i$n
eFis,e+ in ,his case. As a 3a,,er $% %ac,, res*$n+en,Gs resigna,i$n #e,,er/2!0 an+ Ma) !, !((!
#e,,er/20 '$,h c$n,aine+ eF*ressi$ns $% gra,i,&+e. In her Ma) !, !((! #e,,er, she ,$#+
*e,i,i$ner G$n4a#esL
I wish ,$ eF*ress 3) a**recia,i$n %$r ,he ,raining )$& rea+i#) gave 3e whi#e I was &n+er )$&r
s&*ervisi$n./2.0
In S,. Michae# Aca+e3) v. NLRC,/220 we he#+ ,ha, eF*ressi$ns $% gra,i,&+e cann$, *$ssi'#)
c$3e %r$3 an e3*#$)ee wh$ is E&s, %$rce+ ,$ resign as ,he) 'e#ie a##ega,i$ns $% c$erci$n./2-0
M$re$ver, ,he Ma) !, !((! #e,,er was sen, a%,er res*$n+en,Gs A*ri# (, !((! c$nversa,i$n wi,h
*e,i,i$ner G$n4a#es. In+ee+, i% s$3e,hing &n,$war+ rea##) ,$$< *#ace in ,he c$&rse $% ,ha,
c$nversa,i$n, eF*erience +ic,a,es ,ha, res*$n+en, w$&#+ n$, have '$,here+ ,$ ,han<
*e,i,i$ner G$n4a#es. There%$re, res*$n+en,Gs asser,i$n ,ha, she was %$rce+ ,$ resign was
si3*#) n$, ,r&e.
). 'MG Recor&s 3hils e( al., vs. A%arecio, e( al., G.R. No. 1.329", Se%(e/er .,
2""7, ci(ing 3hil 9o&a$ vs. NLRC, 2)7 SCRA 2"2 +199),
9ac,sL
Pe,i,i$ner BMG Rec$r+s =Phi#s.?, Inc. =BMG? is engage+ in ,he '&siness $% se##ing vari$&s a&+i$
rec$r+s na,i$nwi+e. :n Se*,e3'er !, 199(, i, hire+ *riva,e res*$n+en, Ai+a C. A*areci$
=A*areci$? as $ne $% ,he *r$3$ gir#s in i,s Ce'& 'ranch. 9$r w$r<ing %r$3 M$n+a) ,$ S&n+a),
she receive+ a sa#ar) $% P111.(( *er +a).
:n Ma) !2, 1991, A*areci$ J#e+ a c$3*#ain, agains, BMG an+ i,s Branch Manager, 6$se @a*,
6r., c$5*e,i,i$ner herein, %$r i##ega# +is3issa# an+ n$n5*a)3en, $% $ver,i3e *a), h$#i+a) *a),
*re3i&3 *a) %$r res, +a), 1,h 3$n,h *a), service incen,ive #eave, an+ se*ara,i$n *a)./20 In
her P$si,i$n Pa*er, she a##ege+L Tha, she was i##ega##) +is3isse+ $r ,er3ina,e+ /%r$30
e3*#$)3en, $n A*ri# (, 1991O ,ha, 'e%$re sai+ +a,e/,0 h$wever, she was as<e+ ') res*$n+en,
,$ resign an+ wi## 'e *ai+ =sic? a## her 'eneJ,s +&e R #i<e a $ne53$n,h *a) %$r ever) )ear $%
service, *a)3en, $% services ren+ere+, $ver,i3e an+ h$#i+a) *a), res, +a), 1,h 3$n,h,
service incen,ive #eave an+ se*ara,i$n *a) R an+ ,$ /eFec&,e0 a #e,,er $% resigna,i$nO Tha, in
view $% res*$n+en,Gs insis,ence ,$ *re*are an+ /eFec&,e0 a #e,,er5resigna,i$n/,0 even wi,h$&,
*r$*er acc$&n,ing $% an) acc$&n,a'i#i,), ,he c$3*#ainan, was #&re+, in+&ce+ an+ c$3*e##e+ ,$
s&'3i, a #e,,er $% resigna,i$n 'e#ieving $n res*$n+en,Gs *r$3ise an+ ass&rance ,$ *a) a## ,he
Page
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
'eneJ,s +&e her as a%$resai+O Tha, a%,er eFec&,ing sai+ resigna,i$n #e,,er, ,he res*$n+en, +i+
n$, 3a<e g$$+ i,s *r$3ise an+ /ins,ea+0 +i+ an acc$&n,ing ') ,he3se#ves in ,he a'sence $%
herein c$3*#ainan, an+ arrive+ $n a c$3*&,a,i$n ,ha, c$3*#ainan,Gs #ia'i#i,) *er ,heir
acc$&n,ing reache+ ,$ ,he s,aggering a3$&n, $% P1,(((.((O ,ha, since ,he) $Kere+ ,$ *a) a
se*ara,i$n *a) $% $n#) P1!,(((.((, 3in&s c$3*#ainan,Gs a##ege+ acc$&n,a'i#i,) $% P1,(((.((,
,he) are rea+) ,$ *a) ,he 'a#ance ,here$% an) ,i3eO Tha, herein c$3*#ainan, was &n+er
res*$n+en,Gs e3*#$) %$r seven ="? )ears, seven ="? 3$n,hs an+ ,wen,)5eigh, =!1? +a)s when
i##ega##) ,er3ina,e+ /%r$30 her e3*#$)3en, FFF.
Pe,i,i$ners, h$wever, *r$Ker a +iKeren, versi$n $% ,he %ac,s. The) narra,e ,ha, A*areci$ was
ini,ia##) *er%$r3ing we## as an e3*#$)ee '&, as )ears *asse+ ') she see3e+ ,$ 'e c$3*#acen,
in ,he *er%$r3ance $% her E$' an+ ha+ 'een c$3*aring ,he sa#aries $% *r$3$ gir#s in $,her
c$3*anies. I, a**eare+ ,ha, she was n$ #$nger in,eres,e+ in her E$'. In A*ri# 1991, A*areci$
an+ ,w$ $,her *r$3$ gir#s, 6$ve#ina 8. S$c$ an+ 8er$nica P. M&,)a, in,i3a,e+ ,$ ,heir s&*ervis$r
,ha, ,he) were in,en+ing ,$ resign an+ were reA&es,ing %$r s$3e Jnancia# assis,ance. BMG
3a+e i, c#ear ,ha,, as a c$3*an) *$#ic), an e3*#$)ee wh$ resigns %r$3 service is n$, en,i,#e+
,$ Jnancia# assis,ance, '&, c$nsi+ering ,he #eng,h $% ,heir service an+ +&e ,$ h&3ani,arian
c$nsi+era,i$n i, w$&#+ acce+e ,$ ,he reA&es, a%,er ,he) sec&re ,heir res*ec,ive c#earances.
9$r,hwi,h, ,he ,hree e3*#$)ees ,en+ere+ ,heir resigna,i$ns, which were acce*,e+. When ,he)
*r$cesse+ ,he reA&ire+ in+ivi+&a# c#earance, i, was %$&n+ $&, ,ha, ,he) ha+ inc&rre+ s$3e
sh$r,ages a%,er inven,$r). Per agree3en,, sai+ sh$r,ages were +e+&c,e+ %r$3 ,he a3$&n,s
+&e ,he3. Th&s, S$c$ an+ M&,)a receive+ ,heir #as, sa#ar), a *r$*$r,i$n $% ,he 1,h 3$n,h
*a), ,aF re%&n+ an+ Jnancia# assis,ance #ess ,he +e+&c,i$ns, an+ ,he) eFec&,e+ ,heir re#eases
an+ A&i,c#ai3s. EFce*, %$r ,he Jnancia# assis,ance, A*areci$ a#s$ $',aine+ ,he sa3e )e,
re%&se+ ,$ sign ,he re#ease an+ A&i,c#ai3, *r$,es,ing ,he a3$&n, $% P9,1"(.1! +e+&c,e+ %r$3
,he Jnancia# assis,ance. She was a+a3an, '&, BMG s,$$+ ') ,he *revi$&s agree3en,.
R&#ingL
A%,er care%&# ana#)sis, ,his C$&r, Jn+s an+ s$ h$#+s ,ha, ,he s&'3issi$ns $% A*areci$ in a## her
*#ea+ings %ai#e+ ,$ s&'s,an,ia,e ,he a##ega,i$n ,ha, her c$nsen, was vi,ia,e+ a, ,he ,i3e she
,en+ere+ her resigna,i$n an+ ,ha, *e,i,i$ners are g&i#,) $% i##ega# +is3issa#.
In a n&,she##, A*areci$ s&'3i,s ,ha, %ra&+, &n+&e inT&ence, in,i3i+a,i$n, an+B$r 3is,a<e were
a,,en+an, &*$n her resigna,i$n %r$3 BMG. As her c$nsen, was a##ege+#) vi,ia,e+, ,he ac, $%
resigning 'eca3e inv$#&n,ar)O hence, *e,i,i$ners are g&i#,) $% i##ega# +is3issa#.
The arg&3en, is n$, ,ena'#e.
Resigna,i$n is ,he v$#&n,ar) ac, $% an e3*#$)ee wh$ is in a si,&a,i$n where $ne 'e#ieves ,ha,
*ers$na# reas$ns cann$, 'e sacriJce+ in %av$r $% ,he eFigenc) $% ,he service, an+ $ne has n$
$,her ch$ice '&, ,$ +iss$cia,e $nese#% %r$3 e3*#$)3en,. I, is a %$r3a# *r$n$&nce3en, $r
re#inA&ish3en, $% an $Ice, wi,h ,he in,en,i$n $% re#inA&ishing ,he $Ice acc$3*anie+ ') ,he
ac, $% re#inA&ish3en,. As ,he in,en, ,$ re#inA&ish 3&s, c$nc&r wi,h ,he $ver, ac, $%
re#inA&ish3en,, ,he ac,s $% ,he e3*#$)ee 'e%$re an+ a%,er ,he a##ege+ resigna,i$n 3&s, 'e
c$nsi+ere+ in +e,er3ining whe,her in %ac,, he $r she in,en+e+ ,$ sever %r$3 his $r her
e3*#$)3en,.
Th&s, ,his C$&r, agrees wi,h *e,i,i$nersG c$n,en,i$n ,ha, ,he circ&3s,ances s&rr$&n+ing
A*areci$Gs resigna,i$n sh$&#+ 'e given +&e weigh, in +e,er3ining whe,her she ha+ in,en+e+ ,$
resign. In ,his case, s&ch in,en, is ver) evi+en,L
Page .
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
9irs,, A*areci$ a#rea+) c$33&nica,e+ ,$ $,her *e$*#e ,ha, she was a'$&, ,$ resign ,$ #$$< %$r
a 'e,,er *a)ing E$' since she ha+ 'een c$3*#aining ,ha, e3*#$)ees #i<e her in $,her
c$3*anies were earning 3&ch 3$reO
Sec$n+, *ri$r ,$ ,he s&'3issi$n $% her resigna,i$n #e,,er, A*areci$ an+ ,w$ $,her *r$3$ gir#s,
S$c$ an+ M&,)a, a**r$ache+ ,heir s&*ervis$r, in,i3a,e+ ,heir +esire ,$ resign, an+ reA&es,e+
,ha, ,he) 'e given Jnancia# assis,ance, which *e,i,i$ners gran,e+ $n ,he c$n+i,i$n ,ha,
+e+&c,i$ns w$&#+ 'e 3a+e in case $% sh$r,age a%,er inven,$r)O
Thir+, A*areci$, S$c$, an+ M&,)a s&'3i,,e+ ,heir +&#) signe+ resigna,i$n #e,,ers, which were
acce*,e+ ') *e,i,i$nersO an+
9$&r,h, A*areci$ a#rea+) ini,ia,e+ ,he *r$cessing $% her c#earanceO ,h&s, she was a'#e ,$
receive her #as, sa#ar), 1,h 3$n,h *a), an+ ,aF re%&n+ '&, re%&se+ ,$ receive ,he Jnancia#
assis,ance #ess ,he +e+&c,i$ns 3a+e.
The %$reg$ing %ac,s were aIr3a,ive#) narra,e+ an+ a,,es,e+ ,$ in ,he n$,ari4e+ aI+avi, $%
S$c$ an+ Cinc$ an+ have re3aine+ inc$n,r$ver,i'#e as ,he) were never +enie+ ') A*areci$.
The NLRC, ,h&s, erre+ when i, +i+ n$, give *r$'a,ive weigh, ,$ ,heir ,es,i3$nies even i%
'e#a,e+#) *resen,e+ in *e,i,i$nersG 3$,i$n %$r rec$nsi+era,i$n.
N$w, ,he acce*,ance ') *e,i,i$ners $% A*areci$Gs resigna,i$n ren+ere+ ,he sa3e eKec,ive.
>*$n s&ch acce*,ance, i, 3a) n$, 'e &ni#a,era##) wi,h+rawn wi,h$&, ,he c$nsen, $%
*e,i,i$ners. When ,he e3*#$)ee #a,er signiJe+ ,he in,en,i$n $% c$n,in&ing his $r her w$r<, i,
was a#rea+) &* ,$ ,he e3*#$)er ,$ acce*, ,he wi,h+rawa# $% his $r her resigna,i$n. The 3ere
%ac, ,ha, ,he wi,h+rawa# was n$, acce*,e+ +$es n$, c$ns,i,&,e i##ega# +is3issa#, ,he acce*,ance
$% ,he wi,h+rawa# $% ,he resigna,i$n 'eing ,he e3*#$)erGs s$#e *rer$ga,ive. As he#+ in In,er,r$+
Mari,i3e, Inc. v. NLRCL
:nce an e3*#$)ee resigns an+ his resigna,i$n is acce*,e+, he n$ #$nger has an) righ, ,$ ,he
E$'. I% ,he e3*#$)ee #a,er changes his 3in+, he 3&s, as< %$r a**r$va# $% ,he wi,h+rawa# $% his
resigna,i$n %r$3 his e3*#$)er, as i% he were re5a**#)ing %$r ,he E$'. I, wi## ,hen 'e &* ,$ ,he
e3*#$)er ,$ +e,er3ine whe,her $r n$, his service w$&#+ 'e c$n,in&e+. I% ,he e3*#$)er acce*,s
sai+ wi,h+rawa#, ,he e3*#$)ee re,ains his E$'. I% ,he e3*#$)er +$es n$, F F F ,he e3*#$)ee
cann$, c#ai3 i##ega# +is3issa# %$r ,he e3*#$)er has ,he righ, ,$ +e,er3ine wh$ his e3*#$)ees
wi## 'e. T$ sa) ,ha, an e3*#$)ee wh$ has resigne+ is i##ega##) +is3isse+, is ,$ encr$ach &*$n
,he righ, $% e3*#$)ers ,$ hire *ers$ns wh$ wi## 'e $% service ,$ ,he3.
A resigne+ e3*#$)ee wh$ +esires ,$ ,a<e his E$' 'ac< has ,$ re5a**#) ,here%$r, an+ he sha##
have ,he s,a,&s $% a s,ranger wh$ cann$, &ni#a,era##) +e3an+ an a**$in,3en,. He cann$,
arr$ga,e &n,$ hi3se#% ,he sa3e *$si,i$n which he ear#ier +eci+e+ ,$ #eave. T$ a##$w hi3 ,$ +$
s$ w$&#+ 'e ,$ +e*rive ,he e3*#$)er $% his 'asic righ, ,$ ch$$se wh$3 ,$ e3*#$). S&ch is
,an,a3$&n, ,$ &n+&e $**ressi$n $% ,he e3*#$)er. I, has 'een he#+ ,ha, an e3*#$)er is %ree ,$
reg&#a,e, acc$r+ing ,$ his $wn +iscre,i$n an+ E&+g3en,, a## as*ec,s $% e3*#$)3en, inc#&+ing
hiring. The #aw, in *r$,ec,ing ,he righ,s $% ,he #a'$rer, i3*e#s nei,her ,he $**ressi$n n$r se#%5
+es,r&c,i$n $% ,he e3*#$)er.
7. 'lue Angel Man%ower an& Securi($ Services vs. CA, G.R. No. 1)119), 2ul$ 2-,
2""-
9ac,sL
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LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
B#&e Ange#, a 3essengeria# an+ sec&ri,) agenc), hire+ *riva,e res*$n+en,s R$3e# Cas,i##$,
Wi#s$n Ciriac$, Gar) Garces, an+ Ches,erJe#+ Merca+er as sec&ri,) g&ar+s an+ +e,ai#e+ ,he3
a, ,he Na,i$na# C$##ege $% B&siness an+ Ar,s =NCBA? in C&'a$, D&e4$n Ci,).
Cas,i##$ an+ Merca+er, #a,er E$ine+ ') Ciriac$ an+ Garces, J#e+ a c$3*#ain, %$r i##ega#
+e+&c,i$ns an+ $,her 3$ne) c#ai3s agains, B#&e Ange#. Even,&a##), ,he) a3en+e+ ,heir
c$3*#ain, ,$ inc#&+e i##ega# +is3issa#. Acc$r+ing ,$ ,he %$&r g&ar+s, ,he) were reA&ire+, whi#e
s,i## wi,h B#&e Ange#, ,$ w$r< %r$3 "L(( a.3. ,$ "L(( *.3. wi,h$&, $ver,i3e an+ *re3i&3
h$#i+a) *a), a3$ng $,her 'eneJ,s. The) a#s$ a##ege+ receiving $n#) PhP 2,((( a 3$n,h $r PhP
1-- *er +a) an+, %r$3 ,his a3$&n,, B#&e Ange# +e+&c,e+ PhP 1(( as cash '$n+. The) %&r,her
averre+ ,ha, B#&e Ange#, when a**rise+ $% ,heir $rigina# c$3*#ain,, i##ega##) ,er3ina,e+ Garces
an+ Ciriac$, res*ec,ive#), an+ Cas,i##$ an+ Merca+er. The %$&r g&ar+s *ra)e+ %$r =1? *a)3en,
$% 'ac<wages, wage +iKeren,ia#s, *re3i&3 an+ $ver,i3e *a) %$r h$#i+a)s, an+ 1,h 3$n,h
*a)O =!? rei3'&rse3en, $% ,heir cash '$n+O =? reins,a,e3en, $r se*ara,i$n *a)O an+ =.?
+a3ages.
Iss&eL
Whe,her $r n$, *riva,e res*$n+en,s were i##ega##) +is3isse+
R&#ingL
We r&#e ,ha, ,he resigna,i$ns were inv$#&n,ar) an+ ,he ,er3ina,i$n $% *riva,e res*$n+en,s was
i##ega#.
B#&e Ange# insis,s ,ha, ,he g&ar+s ha+ *#ea+e+ ,$ 'e a##$we+ ,$ resign when ,he) were ,$#+ $%
,he *en+ing inves,iga,i$n, an+ ,ha, ,he) even,&a##) ,en+ere+ ,heir *r$5%$r3a resigna,i$n
#e,,ers %$##$we+ ') ,heir $wn han+wri,,en resigna,i$n #e,,ers. :&r review $% ,he circ&3s,ances
s&rr$&n+ing ,hese resigna,i$n #e,,ers +$es n$, s&**$r, B#&e Ange#Ss c$n,en,i$ns ,ha, ,hese
#e,,ers are in+ica,i$ns ,ha, *riva,e res*$n+en,s ha+ v$#&n,ari#) resigne+. We agree wi,h ,he
#a'$r ar'i,er when he *$in,e+ $&, ,ha, ,he &n+a,e+, si3i#ar#) w$r+e+ resigna,i$n #e,,ers
,en+e+ ,$ sh$w ,ha, ,he g&ar+s were 3a+e ,$ c$*) ,he *r$5%$r3a #e,,ers, in ,heir $wn han+, ,$
3a<e ,he3 a**ear 3$re c$nvincing ,ha, ,he g&ar+s ha+ v$#&n,ari#) resigne+. As ,he #a'$r
ar'i,er n$,e+, ,he e#e3en, $% v$#&n,ariness $% ,he resigna,i$ns is even 3$re s&s*ec,
c$nsi+ering ,ha, ,he sec$n+ se, $% resigna,i$n #e,,ers were *re5+ra%,e+, si3i#ar#) w$r+e+, an+
wi,h '#an< s*aces J##e+ in wi,h ,he eKec,ivi,) +a,es $% ,he resigna,i$ns./20 In ,heir C$33en,,
*riva,e res*$n+en,s c#ai3e+ 'eing %$rce+ ,$ sign an+ c$*) ,he *r$5%$r3a resigna,i$n #e,,ers
an+ A&i,c#ai3s $n *ain ,ha, ,he) w$&#+ n$, ge, ,heir re3aining c$3*ensa,i$ns.
Wi,h ,he Jn+ing ,ha, *riva,e res*$n+en,s were i##ega##) +is3isse+, ,he) are en,i,#e+ ,$
reins,a,e3en, ,$ ,heir *$si,i$ns wi,h$&, #$ss $% ,heir seni$ri,) righ,s an+ wi,h %&## 'ac<wages,
inc#&sive $% a##$wances, an+ ,$ $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+ %r$3 ,he
,i3e *riva,e res*$n+en,sS c$3*ensa,i$n was wi,hhe#+ %r$3 ,he3 &* ,$ ,he ,i3e $% ,heir ac,&a#
reins,a,e3en, as *r$vi+e+ %$r in Ar,ic#e !"9 $% ,he La'$r C$+e.
-. Guer0on 2r e( al vs. 3asig !n&us(ries !nc., e( al., G.R. No. 17"2)), Se%(. 12, 2""-
9ac,sL
Page -
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$ners were e3*#$)ees $% res*$n+en, Pasig In+&s,ries, Inc. =PII? s,a,i$ne+ in i,s Ma<a,i
$Ice. G&er4$n was PIISs eF*$r,Bi3*$r, 3anager %$r !1 )earsO Cr&4 was ,he c$3*an)Ss chie%
acc$&n,an, %$r !( )ears an+ Ba&)$n was a 3e3'er $% PIISs acc$&n,ing s,aK since 1919.
In 1992, res*$n+en, @$shi<i,s& 9&Ei,a in%$r3e+ *e,i,i$ners ,ha, PIISs *aren, c$3*an) ha+
+eci+e+ ,$ c#$se ,he Ma<a,i $Ice. T$ s,rea3#ine $*era,i$ns, %&nc,i$ns *er%$r3e+ ') ,he Ma<a,i
$Ice w$&#+ 'e ,rans%erre+ ,$ i,s %aci#i,ies in ,he Ba,aan EF*$r, Pr$cessing Q$ne. 9$r ,his
reas$n, *e,i,i$ners were given ,he $*,i$n ,$ resign, in which case ,he) w$&#+ 'e en,i,#e+ ,$ a
s*ecia# se*ara,i$n *ac<age =SSP? eA&iva#en, ,$ $ne53$n,h 'asic sa#ar) %$r each )ear $%
service.
Pe,i,i$ners +eci+e+ ,$ resign '&, reA&es,e+ a rec$3*&,a,i$n $% ,heir res*ec,ive se*ara,i$n *a)
'ase+ $n ,he 3$n,h#) gr$ss *a) =i.e., 'asic *a) *#&s a## a##$wances?.
7es*i,e v$#&n,ari#) avai#ing $% ,he SSP, *e,i,i$ners J#e+ a c$3*#ain, %$r i##ega# +is3issa# an+
*a)3en, $% se*ara,i$n *a), re,ire3en, 'eneJ,s, #eave *a) an+ 1
,h
3$n,h *a) agains, PII, i,s
*resi+en, Masahir$ 9&<a+a an+ 9&Ei,a in ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n =NLRC?.
Beca&se *e,i,i$ners J#e+ ,he c$3*#ain, ,w$ +a)s a%,er ,he) were P,er3ina,e+,P ,he #a'$r
ar'i,er %$&n+ res*$n+en,s g&i#,) $% i##ega# +is3issa#. Acc$r+ing#), he awar+e+ 'ac<wages,
se*ara,i$n *a) an+ a,,$rne)sS %ees ,$ *e,i,i$ners.
Res*$n+en,s a**ea#e+.
The NLRC %$&n+ ,ha, *e,i,i$ners v$#&n,ari#) acce*,e+ ,he ,er3s $% ,he SSP $Kere+ ') PII. I,
n$,e+ ,ha, ,he) neg$,ia,e+ ,$ i3*r$ve PIISs $Kere+ SSP. Th&s, ,he NLRC reverse+ ,he +ecisi$n
$% ,he #a'$r ar'i,er.
Aggrieve+, *e,i,i$ners J#e+ a *e,i,i$n %$r cer,i$rari in ,he C$&r, $% A**ea#s =CA? asser,ing ,ha,
,he NLRC c$33i,,e+ grave a'&se $% +iscre,i$n in reversing ,he +ecisi$n $% ,he #a'$r ar'i,er.
Hence, *e,i,i$ners avai#e+ $% ,his rec$&rse c$n,en+ing ,ha, ,he CA erre+ in aIr3ing ,he
+ecisi$n $% ,he NLRC. Res*$n+en,s a##ege+#) %ai#e+ ,$ *r$ve ,ha, PII ha+ 'een inc&rring #$sses
,$ E&s,i%) i,s re$rgani4a,i$n. The) c#ai3e+ ,he) were +is3isse+ wi,h$&, E&s, $r a&,h$ri4e+
ca&se.
Iss&esL
Whe,her $r n$, ,he *e,i,i$ners were i##ega##) +is3isse+.
Is ,he s,rea3#ining an a&,h$ri4e+ ca&se %$r ,he ,er3ina,i$n $% ,he *e,i,$nersW
R&#ingL
The *e,i,i$ners were N:T i##ega##) +is3isse+. As ,he) v$#&n,ari#) resigne+ %r$3 PII.
Pe,i,i$ners he#+ res*$nsi'#e *$si,i$ns in PII. E3*#$)ees $% ,heir e+&ca,i$na# 'ac<gr$&n+s an+
*r$%essi$na# s,an+ing +$ n$, easi#) re#inA&ish ,heir #ega# righ,s &n#ess ,he) in,en+ ,$. In %ac,,
*e,i,i$ners even 'argaine+ ,$ i3*r$ve ,he ,er3s $% ,he SSP an+, a%,er s&ccess%&##) +$ing s$,
v$#&n,ari#) resigne+ %r$3 PII.
C$nseA&en,#), whe,her ,he s,rea3#ining $% PIISs $*era,i$ns c$ns,i,&,e+ an a&,h$ri4e+ ca&se %$r
*e,i,i$nersS ,er3ina,i$n 'eca3e i33a,eria# in view $% ,heir v$#&n,ar) resigna,i$n.
Page "
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
9. Suare0 2r. e( al., vs. Na(ional S(eel Cor%., G.R. No. 1."1-", 7c(. 17, 2""-
9ac,sL
Na,i$na# S,ee# C$r*$ra,i$n was engage+ in ,he '&siness $% 3an&%ac,&ring s,ee# *r$+&c,s
nee+e+ %$r *i*e 3a<ing, shi* '&i#+ing, can53a<ing an+ *r$+&c,i$n $% a**#iances. S$3e,i3e in
199., res*$n+en, s&Kere+ s&'s,an,ia# Jnancia# #$sses +&e ,$ an increase in ,he v$#&3e $%
s,ee# *r$+&c,s 3an&%ac,&re+ ') %$reign c$&n,ries. Wi,h ,his +eve#$*3en,, res*$n+en,
a+$*,e+ an $rgani4a,i$na# s,rea3#ining *r$gra3 ,ha, res&#,e+ in ,he re,rench3en, $% seven
h&n+re+ ="((? e3*#$)ees in i,s 3ain *#an, in I#igan Ci,), a3$ng wh$3 were herein *e,i,i$ners.
:ne 3$n,h *ri$r ,$ i,s eKec,ivi,), res*$n+en, sen, $&, in+ivi+&a# n$,ices ,$ ,he seven h&n+re+
="((? e3*#$)ees aKec,e+ ') ,he re,rench3en,, inc#&+ing *e,i,i$ners. The n$,ices s*eciJca##)
s,a,e+ ,ha, ,heir services were ,er3ina,e+ eKec,ive $n sai+ +a,e an+ ,he) wi## each receive a
se*ara,i$n *ac<age in acc$r+ance wi,h ,he re,rench3en, *r$gra3. The se*ara,i$n *ac<age
c$nsis,e+ $% ,he %$##$wingL =1? se*ara,i$n *a) eA&iva#en, ,$ ,w$ =!? 3$n,hs sa#ar) %$r ever)
)ear $% serviceO =!? #eave 'a#ance cre+i,sO =? 1
,h
3$n,h *a)O an+ =.? &ni%$r3 *#&s rice s&'si+)
+iKeren,ia#. A%,er having 'een *ai+ ,heir se*ara,i$n 'eneJ,s, ,he e3*#$)ees, inc#&+ing herein
*e,i,i$ners, each eFec&,e+ an+ signe+ a re#ease an+ A&i,c#ai3, wri,,en in Eng#ish an+
c$n,aining a ,rans#a,i$n in ,he 8isa)an +ia#ec, in ,he sa3e +$c&3en,.
N$,hing was hear+ %r$3 ,he re,renche+ e3*#$)ees, &n,i# a'$&, ,w$ an+ ha#% )ears a%,er ,heir
se*ara,i$n %r$3 ,he c$3*an), when herein *e,i,i$ners wr$,e res*$n+en, +e3an+ing *a)3en,
$% re,ire3en, 'eneJ,s &n+er ,he CBA. The) c#ai3e+ ,ha, ,he) were A&a#iJe+ %$r $*,i$na#
re,ire3en, a%,er having ren+ere+ services %$r a, #eas, ,en =1(? )ears when ,he) were
re,renche+. Res*$n+en, reEec,e+ *e,i,i$nersS c#ai3, %$rcing *e,i,i$ners ,$ J#e a c$3*#ain, %$r
*a)3en, $% re,ire3en, 'eneJ,s agains, res*$n+en,.
The La'$r Ar'i,er +is3isse+ ,he c$3*#ain, %$r #ac< $% 3eri,. >*$n a**ea#, NLRC gran,e+ ,he
a**ea# an+ reverse+ ,he r&#ing $% ,he La'$r Ar'i,er. B) wa) $% Pe,i,i$n %$r Cer,i$rari, CA
+ec#are+ ,ha, *e,i,i$ners were n$ #$nger en,i,#e+ ,$ re,ire3en, 'eneJ,s a%,er having receive+
,he se*ara,i$n *a), an+ were *rec#&+e+ %r$3 c#ai3ing s&ch 'eneJ,s 'eca&se $% ,heir
A&i,c#ai3s.
Iss&eL
Whe,her $r n$, *e,i,i$ners =re,renche+ e3*#$)ees? can s,i## rec$ver re,ire3en, 'eneJ,s in
a++i,i$n ,$ ,heir se*ara,i$n *a).
R&#ingL
N$, *e,i,i$ners are n$ #$nger en,i,#e+ ,$ rec$ver re,ire3en, 'eneJ,s. Having 'een se*ara,e+
%r$3 e3*#$)3en, +&e ,$ an a&,h$ri4e+ ca&se, *e,i,i$ners are 'arre+ %r$3 receiving re,ire3en,
'eneJ,s *&rs&an, ,$ Ar,ic#e C=E? $% res*$n+en,Ss re,ire3en, *#an. Wi,h ,he inc#&si$n $% s&ch
*r$visi$n in ,he re,ire3en, *#an, res*$n+en, ca,eg$rica##) +isa##$ws *a)3en, $% re,ire3en,
'eneJ,s ,$ re,renche+ e3*#$)ees. The) are $n#) en,i,#e+ ,$ *a)3en, $% se*ara,i$n *a) in
acc$r+ance wi,h Ar,ic#e !1 $% ,he La'$r C$+e.
The CA c$33i,,e+ n$ err$r in c$nsi+ering ,he aI+avi,s as c$n,e3*$rane$&s an+ s&'seA&en,
ac,s %r$3 which ,he in,en,i$n $% ,he *ar,ies ,$ ,he CBA can 'e in%erre+. Whi#e ,he CBA, $n i,s
%ace, +$es n$, c$n,ain an eF*ress *r$hi'i,i$n $% *a)3en, $% re,ire3en, 'eneJ,s ,$ re,renche+
e3*#$)ees, ,he *ar,ies 3a) s,i## *r$ve i, ') 3eans $% c$n,e3*$rane$&s an+ s&'seA&en, ac,s
$% ,he *ar,ies ,$ ,he agree3en,, s&ch as ,he eFec&,i$n $% ,he aI+avi,s. In ,heir aI+avi,s,
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he) a,,es,e+ ,ha, &n+er ,he CBA, an e3*#$)ee wh$ is se*ara,e+ *&rs&an, ,$ a re,rench3en,
*r$gra3 an+ wh$ receive+ ,he c$rres*$n+ing se*ara,i$n *ac<age is c$3*#e,e#) *r$scri'e+
%r$3 +e3an+ing an+ c#ai3ing *a)3en, $% re,ire3en, 'eneJ,s.
9&r,her, *e,i,i$ners v$#&n,ari#) eFec&,e+ an+ signe+ a re#ease an+ A&i,c#ai3 a%,er receiving
,heir se*ara,i$n *ac<age, ac<n$w#e+ging %&## an+ Jna# *a)3en, $% a## 'eneJ,s ,ha, ,he) 3a)
'e en,i,#e+ ,$ in re#a,i$n ,$ ,heir e3*#$)3en,.
Th&s, Pe,i,i$n %$r review is +enie+.
1". Goo&rich Mfg Cor% vs. A(ivo e( al., G.R. No. 1--""2, 6e. 1, 2"1"
9ac,sL
E3er#ina A,iv$ e, a#., are %$r3er e3*#$)ees $% *e,i,i$ner G$$+rich Man&%ac,&ring C$r*$ra,i$n
=G$$+rich? assigne+ as 3achine $r 3ain,enance $*era,$rs. In ,he #as, A&ar,er $% !((.,
G$$+rich s&Kere+ Jnancia# c$ns,rain,s an+ gave a## i,s e3*#$)ees ,he $*,i$n ,$ v$#&n,ari#)
resign %r$3 ,he c$3*an). Res*$n+en,s were a3$ng ,h$se wh$ avai#e+ $% ,ha, $*,i$n an+ were
*ai+ ,heir se*ara,i$n *a). A,iv$ e, a#., eFec&,e+ ,heir waivers an+ A&i,c#ai3s. H$wever, ,he)
change+ ,heir 3in+s an+ J#e+ %$r i##ega# +is3issa# agains, G$$richwi,h *ra)er %$r *a)3en, $%
,heir %&## 3$ne,ar) 'eneJ,s 'e%$re ,he NLRC. The La'$r Ar'i,er he#+ ,ha, ,here was n$ i##ega#
+is3issa# '&, r&#e+ ,ha, G$$+rich was s,i## #ia'#e %$r ,he e3*#$)eeGs SIL, EC:LA, an+ 1,h
3$n,h *a), an+ ,ha, ,he se*ara,i$n *a) was ins&Icien,. M&,&a##) &nha**), '$,h *ar,ies
a**ea#e+ ,$ ,he NLRC which reverse+ ,he LAGs +ecisi$n. The NLRC sai+ ,ha, ,he c$nsi+era,i$ns
,he) receive+ are n$, &nreas$na'#e, vis5X5vis ,he awar+s gran,e+ /,$0 ,he3 in ,he assai#e+
7ecisi$n. N$,a'#), ,he awar+s even inc#&+e ,he 1,h 3$n,h *a)s %$r !((! an+ !(( which, ')
res*$n+en,sG *r$$% a**ear a#rea+) *ai+. We a#s$ n$,e+ ,ha, c$3*#ainan,s are n$, sh$wn ,$
have signe+ ,he +ee+s $% waiver an+ A&i,c#ai3 inv$#&n,ari#), wi,h$&, &n+ers,an+ing ,he
i3*#ica,i$n an+ c$nseA&ences ,here$%. The case was 'r$&gh, 'e%$re ,he CA which ren+erre+ a
+ecisi$n in %av$r $% A,iv$ e,. a#., h$#+ing ,ha, ,he) are en,i,#e+ ,$ receive ,heir &n*ai+ 1,h
3$n,h *a), SIL, an+ EC:LA. An+ s$ ,he iss&e is n$w 'e%$re ,he S&*re3e C$&r,.
Iss&eL
WBN ,he re#ease, waiver an+ A&i,c#ai3 signe+ ') res*$n+en,s are va#i+ an+ 'in+ingO an+
whe,her res*$n+en,s 3a) s,i## receive ,he +eJcienc) a3$&n,s +&e ,he3.
R&#ingL
The re#ease, waiver an+ A&i,c#ai3 are va#i+ an+ 'in+ing. Ca*i,a# wins ,his ,i3e.
ReA&isi,es $% a va#i+ A&i,c#ai3
I, is ,r&e ,ha, ,he #aw #$$<s wi,h +is%av$r $n A&i,c#ai3s an+ re#eases ') e3*#$)ees wh$ have
'een inveig#e+ $r *ress&re+ in,$ signing ,he3 ') &nscr&*&#$&s e3*#$)ers see<ing ,$ eva+e
,heir #ega# res*$nsi'i#i,ies an+ %r&s,ra,e E&s, c#ai3s $% e3*#$)ees. In cer,ain cases, h$wever,
,he C$&r, has given eKec, ,$ A&i,c#ai3s eFec&,e+ ') e3*#$)ees i% ,he e3*#$)er is a'#e ,$
*r$ve ,he %$##$wing reA&isi,es, ,$ wi,L
=1? ,he e3*#$)ee eFec&,es a +ee+ $% A&i,c#ai3 v$#&n,ari#)O
=!? ,here is n$ %ra&+ $r +ecei, $n ,he *ar, $% an) $% ,he *ar,iesO
=? ,he c$nsi+era,i$n $% ,he A&i,c#ai3 is cre+i'#e an+ reas$na'#eO an+
Page 9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
=.? ,he c$n,rac, is n$, c$n,rar) ,$ #aw, *&'#ic $r+er, *&'#ic *$#ic), 3$ra#s $r g$$+ c&s,$3s, $r
*reE&+icia# ,$ a ,hir+ *ers$n wi,h a righ, rec$gni4e+ ') #aw.
N$, a## waivers an+ A&i,c#ai3s are inva#i+ as agains, *&'#ic *$#ic). I% ,he agree3en, was
v$#&n,ari#) en,ere+ in,$ an+ re*resen,s a reas$na'#e se,,#e3en,, i, is 'in+ing $n ,he *ar,ies
an+ 3a) n$, #a,er 'e +is$wne+ si3*#) 'eca&se $% a change $% 3in+.
In ,heir C$33en,
19
+a,e+ :c,$'er 1, !((9, res*$n+en,s ,he3se#ves a+3i,,e+ ,ha, ,he) were
n$, c$erce+ ,$ sign ,he A&i,c#ai3s. The), h$wever, 3ain,ain ,ha, ,w$ =!? reas$ns 3$ve+ ,he3
,$ sign ,he sai+ +$c&3en,sL Jrs,, ,he) 'e#ieve+ G$$+rich was ,er3ina,ing i,s '&siness $n
acc$&n, $% Jnancia# har+shi*O an+ sec$n+, ,he) ,h$&gh, *e,i,i$ners wi## *a) ,he3 ,he %&##
a3$&n, $% ,heir c$3*ensa,i$n.
!1
Res*$n+en,s insis, ,ha, ,he) were +eceive+ in,$ signing ,he
A&i,c#ai3s when ,he) #earne+ ,ha, ,he) were n$, *ai+ ,heir %&## 3$ne,ar) 'eneJ,s an+ a%,er
+isc$vering ,ha, ,he c$3*an) +i+ n$, rea##) c#$se sh$*, '&, ins,ea+ $n#) ass&3e+ a +iKeren,
c$3*an) na3e.
D&i,c#ai3s were si3*#e, c#ear an+ &neA&iv$ca#
The rec$r+s $% ,he case are 'ere%, $% an) s&'s,an,ia# evi+ence ,$ sh$w ,ha, res*$n+en,s +i+
n$, <n$w ,ha, ,he) were re#inA&ishing ,heir righ, sh$r, $% wha, ,he) ha+ eF*ec,e+ ,$ receive
an+ c$n,rar) ,$ wha, ,he) have s$ +ec#are+. P&, +iKeren,#), a, ,he ,i3e ,he) were signing ,heir
A&i,c#ai3s, res*$n+en,s h$nes,#) 'e#ieve+ ,ha, ,he a3$&n,s receive+ ') ,he3 were %air an+
reas$na'#e se,,#e3en,s $% ,he a3$&n,s which ,he) w$&#+ have receive+ ha+ ,he) re%&se+ ,$
v$#&n,ari#) resign %r$3 ,he sai+ c$3*an).
Res*$n+en,s were n$, +eceive+
A,iv$ an+ c$3*an) c#ai3 ,ha, ,he) were +eceive+ 'eca&se *e,i,i$ners +i+ n$, rea##) ,er3ina,e
,heir '&siness since Mr. Ch&a G$) ha+ se, &* an$,her c$3*an) wi,h ,he sa3e #ine $% '&siness
as G$$+rich. S&ch c$n,en,i$n, h$wever, was n$, *r$ven +&ring ,he hearing 'e%$re ,he La'$r
Ar'i,er an+ ,he NLRC. Hence, s&ch c#ai3 is 'ase+ $n#) $n res*$n+en,sG s&r3ises an+
s*ec&#a,i$ns which, &n%$r,&na,e#), can never 'e &se+ as a va#i+ an+ #ega# gr$&n+ ,$ re*&+ia,e
res*$n+en,sG A&i,c#ai3s.
C$nsi+era,i$ns receive+ were n$, gr$ss#) ina+eA&a,e
As c$rrec,#) *$in,e+ $&, ') ,he NLRC, ,he ,$,a# awar+s c$3*&,e+ ') ,he La'$r Ar'i,er wi##
+eJni,e#) even 'e #esser a%,er +e+&c,ing ,he 1,h 3$n,h *a) %$r ,he )ears !((! an+ !((,
which have a#rea+) 'een receive+ ') ,he res*$n+en,s *ri$r ,$ ,he J#ing $% ,heir c$3*#ain,s,
'&, which ,he La'$r Ar'i,er s,i## inc#&+e+ in his c$3*&,a,i$n. The +iKerence 'e,ween ,he
a3$&n,s eF*ec,e+ %r$3 ,h$se ,ha, were receive+ 3a), ,here%$re, 'e c$nsi+ere+ as a %air an+
reas$na'#e 'argain $n ,he *ar, $% '$,h *ar,ies.
Pe,i,i$n is gran,e+. CA +ecisi$n is reverse+ an+ se, asi+e. The NLRCGs +ecisi$n is reins,a,e+.
11. Horean Air Co. L(&. v. Juson, G.R. No. 17"3)9, 2une 1), 2"1"
a#ts:
H$rean Air hire+ @&s$n as reserva,i$ns agen,. H$rean Air *r$3$,e+ @&s$n ,$ assis,an, 3anager
in 199, an+ ,$ *assenger sa#es 3anager in 1999.
Page .(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In A*ri# !((1, @&s$n reA&es,e+ H$rean Air ,ha, she 'e ,rans%erre+ %r$3 ,he *assenger sa#es
+e*ar,3en, ,$ ,he carg$ +e*ar,3en,, an+ s$ H$rean Air ,e3*$rari#) ,rans%erre+ @&s$n ,$ ,he
carg$ +e*ar,3en, as Pcarg$ +is*a,ch.P @&s$n c$n,in&e+ ,$ receive ,he sa3e c$3*ensa,i$n
an+ eFercise ,he sa3e a&,h$ri,) as *assenger sa#es 3anager.
In $r+er ,$ c&, c$s,s, H$rean Air $Kere+ i,s e3*#$)ees an ear#) re,ire3en, *r$gra3 =ERP?.
@&s$n acce*,e+ ,he $Ker %$r ear#) re,ire3en,.
S&< =3anager? in%$r3e+ @&s$n ,ha, she was eFc#&+e+ %r$3 ,he ERP 'eca&se she was re,iring
$n 1 6an&ar) !((!. @&s$n c#ai3e+ ,ha, H$rean Air was '$&n+ ') ,he *er%ec,e+ c$n,rac, an+
acc&se+ ,he c$3*an) $% harass3en, an+ +iscri3ina,i$n.
:n !1 N$ve3'er !((1, @&s$n J#e+ wi,h ,he ar'i,ra,i$n 'ranch $% ,he NLRC a c$3*#ain, agains,
H$rean Air an+ S&< %$r *a)3en, $% 'eneJ, &n+er ,he ERP, 3$ra# +a3ages, eFe3*#ar)
+a3ages, an+ a,,$rne)Ss %ees.
LA +enie+ %$r #ac< $% 3eri, @&s$nSs c#ai3s an+ he#+ ,ha, ,he ERP 3e3$ran+&3 inc#&+e+ $n#)
ran<5an+5J#e, an+ eFc#&+e+ 3anageria#, e3*#$)ees an+ s&ch 3e3$ was reserve+ ,$ H$rean
Air +iscre,i$n in a**r$ving a**#ica,i$ns %$r ,he ERP an+ ,ha, a**r$va# $% a**#ica,i$ns %$r ,he
ERP was a va#i+ eFercise $% H$rean AirSs 3anage3en, *rer$ga,ive.
A c$3*r$3ise agree3en, was en,ere+ in,$ 'e,ween H$rean Air an+ @&s$n, $n 1. 9e'r&ar)
!((, where') ,he agree3en, inc#&+e+ a3$ng $,hers ,he *a)3en, $% P1,-"1,2.-.9!,
re*resen,ing her re,ire3en, 'eneJ, *&rs&an, ,$ Ar,ic#e !1" $% ,he La'$r C$+e, as a3en+e+.
NLRC aIr3e+ LA +ecisi$n, h$wever CA se, asi+e ,he +ecisi$n.
Issue:
W:N @&s$n 3a) s,i## c#ai3 'eneJ, &n+er ,he ERP.
Ruling: N$, @&s$n 3a) n$ #$nger c#ai3 ,he 'eneJ, &n+er ,he ERP.
Thir+ *aragra*h $% Ar,ic#e !1" s,a,es ,ha,L
In ,he a'sence $% a re,ire3en, *#an $r agree3en, *r$vi+ing %$r re,ire3en, 'eneJ,s $%
e3*#$)ees in ,he es,a'#ish3en,, an e3*#$)ee &*$n reaching ,he age $% siF,) =-(? )ears $r
3$re, '&, n$, 'e)$n+ siF,)5Jve =-2? )ears which is here') +ec#are+ ,he c$3*&#s$r) re,ire3en,
age, wh$ has serve+ a, #eas, Jve =2? )ears in ,he sai+ es,a'#ish3en,, 3a) re,ire an+ sha## 'e
en,i,#e+ ,$ re,ire3en, *a) eA&iva#en, ,$ a, #eas, $ne5ha#% =1B!? 3$n,h sa#ar) %$r ever) )ear $%
service, a %rac,i$n $% a, #eas, siF =-? 3$n,hs 'eing c$nsi+ere+ as $ne wh$#e )ear.
:n 1. 9e'r&ar) !((, @&s$n acce*,e+ P1,-"1,2.-.9! as re,ire3en, 'eneJ, &n+er Ar,ic#e !1".
Her c#ai3 %$r 'eneJ, &n+er ,he ERP 'eca3e 3$$, when she avai#e+ $% ,he $*,i$na# re,ire3en,
&n+er Ar,ic#e !1" an+ acce*,e+ ,he 'eneJ,. B) her acce*,ance $% ,he 'eneJ,, @&s$n is +ee3e+
,$ have $*,e+ ,$ re,ire &n+er Ar,ic#e !1".
The C$&r, $% A**ea#s he#+ ,ha, @&s$n 3a) c#ai3 'eneJ, &n+er ,he ERP 'eca&se P,he $Ker was
cer,ain an+ ,he acce*,ance is a's$#&,eO hence, ,here is a va#i+ c$n,rac, *&rs&an, ,$ ,he #as,
*aragra*h $% Ar,ic#e 112 $% ,he New Civi# C$+e.P
The C$&r, +isagrees.
In ,he *resen, case, ,he $Ker is n$, cer,ainL =1? ,he !1 A&g&s, !((1 3e3$ran+&3 c#ear#)
s,a,es ,ha,, PMNLSM Manage3en,, $n i,s +iscre,i$n, is here') $Kering ,he sai+ ear#)
Page .1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
re,ire3en, *r$gra3 ,$ i,s s,aKPO =!? a**#ica,i$ns %$r ,he ERP were %$rwar+e+ ,$ ,he hea+ $Ice
%$r a**r$va#, an+ %&r,her ac,s $n ,he $Ker$rSs *ar, were necessar) 'e%$re ,he c$n,rac, c$&#+
c$3e in,$ eFis,enceO an+ =? ,he !1 A&g&s, !((1 3e3$ran+&3 c#ear#) s,a,es H$rean AirSs
in,en,i$n, which was, P,$ *reven, %&r,her #$sses.P H$rean Air c$&#+ n$, have in,en+e+ ,$
3inis,eria##) a**r$ve a## a**#ica,i$ns %$r ,he ERP.
12. Cerca&o v. <ni%ro/ !nc., G.R. No. 1--1.*, 7c(oer 13, 2"1"
9ac,sL
Pe,i,i$ner L$&r+es A. Cerca+$ =Cerca+$? s,ar,e+ w$r<ing %$r res*$n+en, >NIPR:M $n
7ece3'er 12, 19"1 as a ,ic<e, se##er assigne+ a, 9ies,a Carniva#, Arane,a Cen,er, D&e4$n Ci,).
La,er $n, she was *r$3$,e+ as cashier an+ ,hen as c#er< ,)*is,. >NIPR:M ins,i,&,e+ an
E3*#$)eesG N$n5C$n,ri'&,$r) Re,ire3en, P#an
which *r$vi+es ,ha, an) *ar,ici*an, wi,h ,wen,)
=!(? )ears $% service, regar+#ess $% age, 3a) 'e re,ire+ a, his $*,i$n $r a, ,he $*,i$n $% ,he
c$3*an). I, a3en+e+ ,he re,ire3en, *#an in c$3*#iance wi,h Re*&'#ic Ac, =R.A.? N$. "-.1.
>n+er ,he revise+ re,ire3en, *#an, >NIPR:M reserve+ ,he $*,i$n ,$ re,ire e3*#$)ees wh$
were A&a#iJe+ ,$ re,ire &n+er ,he *r$gra3.
>NIPR:M i3*#e3en,e+ a c$3*an)5wi+e ear#) re,ire3en, *r$gra3 %$r i,s .1 e3*#$)ees,
inc#&+ing herein *e,i,i$ner, wh$, a, ,ha, ,i3e, was ." )ears $#+, wi,h !! )ears $% c$n,in&$&s
service ,$ ,he c$3*an). She was $Kere+ an ear#) re,ire3en, *ac<age a3$&n,ing
,$ P1"1,91!.9(, '&, she reEec,e+ ,he sa3e. >NIPR:M eFercise+ i,s $*,i$n &n+er ,he re,ire3en,
*#an, an+ +eci+e+ ,$ re,ire Cerca+$ eKec,ive a, ,he en+ $% '&siness h$&rs $n 9e'r&ar) 12,
!((1. A chec< $% even +a,e in ,he a3$&n, $% P1((,111."(, re*resen,ing her re,ire3en,
'eneJ,s &n+er ,he reg&#ar re,ire3en, *ac<age, was iss&e+ ,$ her. Cerca+$ re%&se+ ,$ acce*,
,he chec<. >NIPR:M n$ne,he#ess *&rs&e+ i,s +ecisi$n an+ Cerca+$ was n$ #$nger given an)
w$r< assign3en, a%,er 9e'r&ar) 12, !((1. This *r$3*,e+ Cerca+$ ,$ J#e a c$3*#ain, %$r i##ega#
+is3issa# 'e%$re ,he La'$r Ar'i,er =LA?, a##eging, a3$ng $,hers, ,ha, >NIPR:M +i+ n$, have a
'$na J+e re,ire3en, *#an, an+ ,ha, even i% ,here was, she +i+ n$, c$nsen, ,here,$.
The Na,i$na# La'$r Re#a,i$ns C$33issi$n =NLRC? aIr3e+ ,he LAGs +ecisi$n ,ha, Cerca+$ was
i##ega##) +is3isse+. H$wever, ,he CA se, asi+e ,he +ecisi$ns $% ,he LA an+ ,he NLRC. Hence,
,his *e,i,i$n.
Iss&eLSL
Whe,her >NIPR:M has a '$na J+e re,ire3en, *#an
Whe,her *e,i,i$ner was va#i+#) re,ire+ *&rs&an, ,here,$
R&#ingL
The assai#e+ re,ire3en, *#an $% >NIPR:M is n$, e3'$+ie+ in a CBA $r in an) e3*#$)3en,
c$n,rac, $r agree3en, assen,e+ ,$ ') *e,i,i$ner an+ her c$5e3*#$)ees. :n ,he c$n,rar),
>NIPR:MGs E3*#$)eesG N$n5C$n,ri'&,$r) Re,ire3en, P#an was &ni#a,era##) an+ c$3*&#s$ri#)
i3*$se+ $n ,he3. This is evi+en, in ,he %$##$wing *r$visi$ns $% ,he 191( re,ire3en, *#an an+
i,s a3en+e+ versi$n in !(((L
ARTICLE III
ELIGIBILIT@ 9:R PARTICIPATI:N
Page .!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Sec,i$n 1. An) reg&#ar e3*#$)ee, as $% ,he EKec,ive 7a,e, sha## a&,$3a,ica##) 'ec$3e a
Par,ici*an, in ,he P#an, *r$vi+e+ ,he E3*#$)ee was hire+ 'e#$w age -(.
8eri#), *e,i,i$ner was %$rce+ ,$ *ar,ici*a,e in ,he *#an, an+ ,he $n#) wa) she c$&#+ have
reEec,e+ ,he sa3e was ,$ resign $r #$se her E$'. The assai#e+ CA 7ecisi$n +i+ n$, rea##) 3a<e a
Jn+ing ,ha, *e,i,i$ner ac,&a##) acce*,e+ an+ c$nsen,e+ ,$ ,he *#an. The #aw +e3an+s 3$re
,han a *assive acA&iescence $n ,he *ar, $% e3*#$)ees, c$nsi+ering ,ha, an e3*#$)erGs ear#)
re,ire3en, age $*,i$n inv$#ves a c$ncessi$n $% ,he %$r3erGs c$ns,i,&,i$na# righ, ,$ sec&ri,) $%
,en&re.
Re,ire3en, is ,he res&#, $% a 'i#a,era# ac, $% ,he *ar,ies, a v$#&n,ar) agree3en, 'e,ween ,he
e3*#$)er an+ ,he e3*#$)ee where') ,he #a,,er, a%,er reaching a cer,ain age, agrees ,$ sever
his $r her e3*#$)3en, wi,h ,he %$r3er.
Acce*,ance ') ,he e3*#$)ees $% an ear#) re,ire3en, age $*,i$n 3&s, 'e eF*#ici,, v$#&n,ar),
%ree, an+ &nc$3*e##e+. Whi#e an e3*#$)er 3a) &ni#a,era##) re,ire an e3*#$)ee ear#ier ,han ,he
#ega##) *er3issi'#e ages &n+er ,he La'$r C$+e, ,his *rer$ga,ive 3&s, 'e eFercise+ *&rs&an, ,$
a 3&,&a##) ins,i,&,e+ ear#) re,ire3en, *#an. In $,her w$r+s, $n#) ,he i3*#e3en,a,i$n an+
eFec&,i$n $% ,he $*,i$n 3a) 'e &ni#a,era#, '&, n$, ,he a+$*,i$n an+ ins,i,&,i$n $% ,he
re,ire3en, *#an c$n,aining s&ch $*,i$n. 9$r ,he $*,i$n ,$ 'e va#i+, ,he re,ire3en, *#an
c$n,aining i, 3&s, 'e v$#&n,ari#) assen,e+ ,$ ') ,he e3*#$)ees $r a, #eas, ') a 3aE$ri,) $%
,he3 ,hr$&gh a 'argaining re*resen,a,ive.
Hence, c$nsis,en, wi,h ,he C$&r,Gs r&#ing in 6ac&#'e case, having ,er3ina,e+ *e,i,i$ner 3ere#)
$n ,he 'asis $% a *r$visi$n in ,he re,ire3en, *#an which was n$, %ree#) assen,e+ ,$ ') her,
>NIPR:M is g&i#,) $% i##ega# +is3issa#.
13. 'ilao vs. Sau&i Araian Airlines, G.R. No. 1-391., 4ece/er 1*, 2"11
9ac,s
Bi#'a$ was a %$r3er e3*#$)ee $% res*$n+en, Sa&+ia, having 'een hire+ as a 9#igh, A,,en+an,
$n Ma) 1, 191- &n,i# her se*ara,i$n %r$3 Sa&+ia in Se*,e3'er !((.. 7&ring ,he c$&rse $%
her e3*#$)3en,, Bi#'a$ was assigne+ ,$ w$r< a, ,he Mani#a :Ice, a#,h$&gh ,he na,&re $% her
w$r< as a Tigh, a,,en+an, en,ai#e+ reg&#ar Tigh,s %r$3 Mani#a ,$ 6e++ah, Sa&+i Ara'ia, an+
'ac<. :n A&g&s, !2, !((., ,he In59#igh, Service Seni$r Manager $% Sa&+ia assigne+ in Mani#a
receive+ an in,er5$Ice Me3$ran+&3 +a,e+ A&g&s, 1", !((. %r$3 i,s 6e++ah :Ice regar+ing
,he ,rans%er $% 1( Tigh, a,,en+an,s %r$3 Mani#a ,$ 6e++ah eKec,ive Se*,e3'er 1, !((.. The
sai+ 3e3$ran+&3 eF*#aine+ ,ha, s&ch ,rans%er was 3a+e M+&e ,$ $*era,i$na# reA&ire3en,s.N
/0 Bi#'a$ was a3$ng ,he 1( Tigh, a,,en+an,s ,$ 'e ,rans%erre+.Bi#'a$ ini,ia##) c$3*#ie+ wi,h
,he ,rans%er $r+er an+ *r$cee+e+ ,$ 6e++ah %$r her new assign3en,. H$wever, $n Se*,e3'er
", !((., she $*,e+ ,$ resign an+ re#inA&ish her *$s, ') ,en+ering a resigna,i$n #e,,er.
:n :c,$'er !1, !((., Bi#'a$ eFec&,e+ an+ signe+ an >n+er,a<ing /20 si3i#ar ,$ ,ha, $% a
Recei*,, Re#ease an+ D&i,c#ai3 wherein she ac<n$w#e+ge+ recei*, $% a s&3 $% 3$ne) as M%&##
an+ c$3*#e,e en+5$%5service awar+ wi,h Jna# se,,#e3en, an+ have n$ %&r,her c#ai3s
wha,s$ever agains, Sa&+i Ara'ian Air#ines.N /-0
In s*i,e $% ,his signe+ >n+er,a<ing, h$wever, $n 6&#) !(, !((2, Bi#'a$ J#e+ wi,h ,he NLRC a
c$3*#ain, %$r reins,a,e3en, an+ *a)3en, $% %&## 'ac<wagesO 3$ra#, eFe3*#ar) an+ ac,&a#
+a3agesO an+ a,,$rne)Gs %ees. 9$r her *ar,, Bi#'a$ 3ain,aine+ ,ha, her resigna,i$n %r$3
Page .
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Sa&+ia was n$, v$#&n,ar). >*$n ,he $,her han+, Sa&+ia averre+ ,ha, ,he resigna,i$n #e,,ers
%r$3 Bi#'a$ an+ her c$5c$3*#ainan,s were v$#&n,ari#) 3a+e since ,he) were ac,&a##) han+5
wri,,en an+ +&#) signe+. Sa&+ia asser,e+ ,ha, Bi#'a$ an+ her c$5c$3*#ainan,s were n$,
s&'Eec,e+ ,$ an) %$rce, in,i3i+a,i$n, $r c$erci$n when ,he) wr$,e sai+ resigna,i$n #e,,ers an+
even ,heir &n+er,a<ings, a%,er receiving wi,h$&, *r$,es, a gener$&s se*ara,i$n *ac<age
+es*i,e ,he %ac, ,ha, e3*#$)ees wh$ v$#&n,ari#) resign are n$, en,i,#e+ ,$ an) se*ara,i$n *a).
Sa&+ia a#s$ a++e+ ,ha, ,he ,rans%er $% Tigh, a,,en+an,s %r$3 ,heir Mani#a :Ice ,$ ,he 6e++ah
:Ice was a va#i+ eFercise $% i,s 3anage3en, *rer$ga,ive.
:n A&g&s, 1, !((-, La'$r Ar'i,er Re)es ren+ere+ a 7ecisi$n /"0 +ec#aring ,ha, Bi#'a$,
,$ge,her wi,h c$5c$3*#ainan,s Cen,i5Man+anas an+ Cas,e##s, was i##ega##) +is3isse+ . Sa&+ia
J#e+ an a**ea# 'e%$re ,he NLRC , Bi#'a$ %$##$we+ s&i, an+ a#s$ a**ea#e+ 'e%$re ,he NLRC . :n
6&ne !2, !((", ,he NLRC gran,e+ Sa&+iaGs a**ea#, an+ reverse+ an+ se, asi+e ,he +ecisi$n $%
,he La'$r Ar'i,er Li<ewise, ,he M$,i$n %$r Rec$nsi+era,i$n $% Maria 6$) Teresa Bi#'a$ is
7ENIE7. Bi#'a$ wen, ,$ ,he C$&r, $% A**ea#s via a *e,i,i$n %$r cer,i$rari . ,he C$&r, $% A**ea#s
aIr3e+ ,he Res$#&,i$ns $% ,he NLRC +a,e+ 6&ne !2, !((" an+ :c,$'er !-, !((", an+ he#+ ,ha,
,he resigna,i$n $% Bi#'a$ was M$% her $wn %ree wi## an+ in,e##igen, ac,.N Bi#'a$ J#e+ a 3$,i$n
%$r rec$nsi+era,i$n which was +enie+ ') ,he C$&r, $% A**ea#s.
Iss&eL
7i+ Ms. Bi#'a$ v$&n,ari#,) resign %r$3 Sa&+i Ara'ian Air#ines
R&#ingL
A%,er a review $% ,he case, we &*h$#+ ,he Jn+ings $% ,he C$&r, $% A**ea#s ,ha, Bi#'a$
v$#&n,ari#) resigne+ %r$3 her e3*#$)3en, wi,h Sa&+ia. Her resigna,i$n #e,,er an+ &n+er,a<ing
,ha, evi+ence+ her recei*, $% se*ara,i$n *a), when ,a<en ,$ge,her wi,h her e+&ca,i$na#
a,,ain3en, an+ ,he circ&3s,ances s&rr$&n+ing ,he J#ing $% ,he c$3*#ain, %$r i##ega# +is3issa#,
c$3*rise s&'s,an,ia# *r$$% $% Bi#'a$Gs v$#&n,ar) resigna,i$n.
Resigna,i$n is ,he v$#&n,ar) ac, $% an e3*#$)ee wh$ is in a si,&a,i$n where $ne 'e#ieves ,ha,
*ers$na# reas$ns cann$, 'e sacriJce+ in %av$r $% ,he eFigenc) $% ,he service, an+ $ne has n$
$,her ch$ice '&, ,$ +iss$cia,e $nese#% %r$3 e3*#$)3en,. I, is a %$r3a# *r$n$&nce3en, $r
re#inA&ish3en, $% an $Ice, wi,h ,he in,en,i$n $% re#inA&ishing ,he $Ice acc$3*anie+ ') ,he
ac, $% re#inA&ish3en,. As ,he in,en, ,$ re#inA&ish 3&s, c$nc&r wi,h ,he $ver, ac, $%
re#inA&ish3en,, ,he ac,s $% ,he e3*#$)ee 'e%$re an+ a%,er ,he a##ege+ resigna,i$n 3&s, 'e
c$nsi+ere+ in +e,er3ining whe,her he $r she, in %ac,, in,en+e+ ,$ sever his $r her
e3*#$)3en,.
In ,he ins,an, case, Bi#'a$ ,en+ere+ her resigna,i$n #e,,er a wee< a%,er her ,rans%er ,$ ,he
6e++ah $Ice. In ,he sai+ #e,,er, Bi#'a$ eF*resse+ her gra,i,&+e %$r ,he s&**$r, which Sa&+ia
ha+ given her %$r her eigh,een )ears $% service. C#ear#), her &se $% w$r+s $% a**recia,i$n an+
gra,i,&+e nega,es ,he n$,i$n ,ha, she was %$rce+ an+ c$erce+ ,$ resign. Besi+es, ,he
resigna,i$n #e,,er was han+5wri,,en ') Bi#'a$ $n a Sa&+ia %$r3 an+ was in Eng#ish, a #ang&age
she is c$nversan, in. A++i,i$na##), ins,ea+ $% i33e+ia,e#) J#ing a c$3*#ain, %$r i##ega#
+is3issa# a%,er she was a##ege+#) %$rce+ ,$ resign, Bi#'a$ eFec&,e+ an >n+er,a<ing in %av$r $%
Sa&+ia, wherein she +ec#are+ ,ha, she receive+ her %&## an+ c$3*#e,e en+5$%5service awar+
wi,h Jna# se,,#e3en,. Wha, is 3$re, Bi#'a$ wai,e+ %$r 3$re ,han 1( 3$n,hs a%,er her
se*ara,i$n %r$3 Sa&+ia ,$ J#e a c$3*#ain, %$r i##ega# +is3issa#.
7es*i,e ,he %$reg$ing circ&3s,ances, Bi#'a$ 3ain,ains ,ha, she was %$rce+ an+ c$erce+ in,$
wri,ing ,he sai+ resigna,i$n #e,,er in ,he %$r3 *re*are+ ') Sa&+ia, an+ ,ha, she was #e%, wi,h
Page ..
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
n$ $,her $*,i$n '&, ,$ resign. Sa&+ia, $n ,he $,her han+, c#ai3s ,ha, Bi#'a$Gs resigna,i$n was
v$#&n,ar), ,h&s, ,here c$&#+ 'e n$ i##ega# +is3issa#. Even ass&3ing ,ha, Sa&+ia *re*are+ ,he
%$r3 in which Bi#'a$ wr$,e her resigna,i$n #e,,er as c#ai3e+, ,his C$&r, is n$, c$nvince+ ,ha,
she was c$erce+ an+ in,i3i+a,e+ in,$ signing i,. Bi#'a$ is n$ $r+inar) e3*#$)ee wh$ 3a) n$,
'e a'#e ,$ c$3*#e,e#) c$3*rehen+ an+ rea#i4e ,he c$nseA&ences $% her ac,s. She is an
e+&ca,e+ in+ivi+&a#. I, is high#) i3*r$'a'#e ,ha, wi,h her #$ng )ears in ,he *r$%essi$n an+ her
e+&ca,i$na# a,,ain3en,, she c$&#+ 'e ,ric<e+ an+ %$rce+ in,$ +$ing s$3e,hing she +$es n$,
in,en+ ,$ +$. >n+er ,hese circ&3s,ances, i, can har+#) 'e sai+ ,ha, Bi#'a$ was c$erce+ in,$
resigning %r$3 Sa&+ia.
Besi+es, Bi#'a$ +i+ n$, a++&ce an) c$3*e,en, evi+ence ,$ *r$ve ,ha, she was %$rce+ $r
,hrea,ene+ ') Sa&+ia. I, 3&s, 'e re3e3'ere+ ,ha, %$r in,i3i+a,i$n ,$ vi,ia,e c$nsen,, ,he
%$##$wing reA&isi,es 3&s, 'e *resen,L =1? ,ha, ,he in,i3i+a,i$n ca&se+ ,he c$nsen, ,$ 'e givenO
=!? ,ha, ,he ,hrea,ene+ ac, 'e &nE&s, $r &n#aw%&#O =? ,ha, ,he ,hrea, 'e rea# $r seri$&s, ,here
'eing evi+en, +is*r$*$r,i$n 'e,ween ,he evi# an+ ,he resis,ance which a## 3en can $Ker,
#ea+ing ,$ ,he ch$ice $% +$ing ,he ac, which is %$rce+ $n ,he *ers$n ,$ +$ as ,he #esser evi#O
an+ =.? ,ha, i, *r$+&ces a we##5gr$&n+e+ %ear %r$3 ,he %ac, ,ha, ,he *ers$n %r$3 wh$3 i,
c$3es has ,he necessar) 3eans $r a'i#i,) ,$ inTic, ,he ,hrea,ene+ inE&r) ,$ his *ers$n $r
*r$*er,). /190 In ,he ins,an, case, Bi#'a$ +i+ n$, *r$ve ,he eFis,ence $% an) $ne $% ,hese
essen,ia# e#e3en,s. Anen, ,he >n+er,a<ing signe+ ') Bi#'a$, ,his C$&r, is $% ,he $*ini$n ,ha,
,he sa3e was va#i+#) an+ v$#&n,ari#) eFec&,e+. In+ee+, n$, a## waivers an+ A&i,c#ai3s are
inva#i+ as agains, *&'#ic *$#ic). There are #egi,i3a,e waivers an+ A&i,c#ai3s ,ha, re*resen, a
v$#&n,ar) an+ reas$na'#e se,,#e3en, $% w$r<ersG c#ai3s which sh$&#+ 'e res*ec,e+ ') ,he
c$&r,s as ,he #aw 'e,ween ,he *ar,ies. /!(0 An+ i% s&ch agree3en, was v$#&n,ari#) en,ere+
in,$ an+ re*resen,e+ a reas$na'#e se,,#e3en,, i, is 'in+ing $n ,he *ar,ies an+ sh$&#+ n$, #a,er
'e +is$wne+. C#ear#) ,hen, Bi#'a$Gs c#ai3 ,ha, she was i##ega##) +is3isse+ cann$, 'e
s&s,aine+. There is n$ sh$wing ,ha, ,he >n+er,a<ing an+ resigna,i$n #e,,er were eFec&,e+ ')
Bi#'a$ &n+er %$rce $r in,i3i+a,i$n. Bi#'a$Gs c#ai3s %$r reins,a,e3en,, *a)3en, $% 'ac<wages
wi,h$&, #$ss $% seni$ri,) righ,s an+ wi,h in,eres,, 3$ra# an+ eFe3*#ar) +a3ages, an+
a,,$rne)Gs %ees 3&s, inevi,a'#) %ai#.
1*. San Miguel 3ro%er(ies vs. Gucaan, G.R. No. 1.39-2, 2ul$ 1-, 2"11
9ac,sL
Res*$n+en, G&ca'an, civi# engineer, E$ine+ ,he w$r<%$rce $% *e,i,i$ner San Mig&e# Pr$*er,ies
Phi#i**ines, Inc. =SMPI? in 1991. Ini,ia##) engage+ as a c$ns,r&c,i$n 3anage3en, s*ecia#is,,
she, ') her sa,is%ac,$r) *er%$r3ance $n ,he E$', was *r$3$,e+ in 199. an+ 1992,
res*ec,ive#), ,$ ,he *$si,i$n $% ,echnica# services 3anager, an+ ,hen $% *r$Eec, +eve#$*3en,
3anager. As *r$Eec, +eve#$*3en, 3anager, she a#s$ sa, as a 3e3'er $% ,he c$3*an)Ss
3anage3en, c$33i,,ee. She ha+ 'een in c$n,in&$&s service in ,he #a,,er ca*aci,) &n,i# her
severance %r$3 ,he c$3*an) in 9e'r&ar) 1991.
In her c$3*#ain, %$r i##ega# +is3issa#, G&ca'an a##ege+ ,ha, her se*ara,i$n %r$3 service was
*rac,ica##) %$rce+ &*$n her ') 3anage3en,. She c#ai3e+ ,ha, $n 6an&ar) !", 1991, she was
in%$r3e+ ') SMPISs Presi+en, an+ Chie% EFec&,ive :Icer ,ha, ,he c$3*an) was *#anning ,$
re$rgani4e i,s 3an*$wer in $r+er ,$ c&, $n c$s,s, an+ ,ha, she 3&s, J#e %$r resigna,i$n $r
$,herwise %ace ,er3ina,i$n.
G&ca'an c$3*#aine+ $% ,he &g#) ,rea,3en, which she ha+ since receive+ %r$3 G$n4a#e4 an+
,he 3anage3en, s&**$se+#) $n acc$&n, $% her re%&sa# ,$ sign ,he resigna,i$n #e,,er. She
Page .2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c#ai3e+ she ha+ 'een <e*, $K %r$3 a## ,he 3ee,ings $% ,he 3anage3en, c$33i,,ee. Her
*er%$r3ance $% +&,ies ha+ 'een re*$r,e+ ,$ 'e neg#igen, an+ &nsa,is%ac,$r). She %$&n+ sai+
re*$r, ,$ 'e &n%$&n+e+ an+ &n%air, 'eca&se n$ #ess ,han ,he c$3*an)Ss 8ice5Presi+en, %$r
Pr$*er,) Manage3en, in a s&'seA&en, 3e3$ran+&3, ha+ ac,&a##) v$&che+ %$r her
c$3*e,ence an+ eIcienc) $n ,he E$'. I, was s&**$se+#) ,he eF,re3e h&3i#ia,i$n an+
a#iena,i$n ,ha, i3*e##e+ her ,$ s&'3i, a signe+ resigna,i$n #e,,er $n 9e'r&ar) 11, 1991.
G&ca'an s&r3ise+ ,ha, she ha+ 3ere#) 'een ,ric<e+ ') SMPI in,$ J#ing her resigna,i$n #e,,er
'eca&se i, never ac,&a#i4e+ i,s re$rgani4a,i$n an+ s,rea3#ining *#anO $n ,he c$n,rar), SMPI
a##ege+#) eF*an+e+ i,s e3*#$)ee *$*&#a,i$n an+ a#s$ 3a+e new a**$in,3en,s an+ *r$3$,i$ns
,$ vari$&s $,her *$si,i$ns. She %e#, ,ha, she ha+ 'een +is3isse+ wi,h$&, ca&se an+, hence,
*ra)e+ %$r reins,a,e3en, an+ *a)3en, $% 'ac<wages an+ +a3ages.
The La'$r Ar'i,er +is3isse+ ,he c$3*#ain, %$r #ac< $% 3eri,, Jn+ing n$ *r$ven %$rce, c$erci$n,
in,i3i+a,i$n $r an) $,her circ&3s,ance which c$&#+ $,herwise inva#i+a,e G&ca'anSs
resigna,i$n. He #i<ewise +is3isse+ her c#ai3 ,ha, SMPI 3ere#) %eigne+ ,he necessi,) $%
re$rgani4a,i$n in ,ha, whi#e ,he c$3*an) in+ee+ 3a+e new $,her a**$in,3en,s %$##$wing
G&ca'anSs resigna,i$n, s,i##, ,his 3eas&re was an i3*#e3en,a,i$n $% i,s re$rgani4a,i$n *#an.
G&ca'an a**ea#e+ ,$ ,he NLRC which reverse+ ,he r&#ing $% ,he La'$r Ar'i,er. 9in+ing ,ha,
G&ca'an has 'een i##ega##) +is3isse+, i, $r+ere+ her reins,a,e3en, wi,h$&, #$ss $% seni$ri,)
righ,s an+ wi,h %&## 'ac<wages, as we## as $r+ere+ ,he awar+ $% +a3ages an+ a,,$rne)Ss %ees.
I, e#eva,e+ ,he 3a,,er ,$ ,he C$&r, $% A**ea#s via a *e,i,i$n %$r cer,i$rari.
The C$&r, $% A**ea#s iss&e+ ,he assai#e+ 7ecisi$n Jn+ing *ar,ia# 3eri, in ,he *e,i,i$n. I,
aIr3e+ ,he NLRCSs Jn+ing $% i##ega#Bc$ns,r&c,ive +is3issa#, '&, 3$+iJe+ ,he 3$ne,ar) awar+.
Iss&eL
Whe,her $r n$, ,he resigna,i$n $% G&ca'an was ,en+ere+ v$#&n,ari#).
R&#ingL
Resigna,i$n ` ,he %$r3a# *r$n$&nce3en, $r re#inA&ish3en, $% a *$si,i$n $r $Ice ` is ,he
v$#&n,ar) ac, $% an e3*#$)ee wh$ is in a si,&a,i$n where he 'e#ieves ,ha, *ers$na# reas$ns
cann$, 'e sacriJce+ in %av$r $% ,he eFigenc) $% ,he service, an+ he has ,hen n$ $,her ch$ice
'&, ,$ +isass$cia,e hi3se#% %r$3 e3*#$)3en,. The in,en, ,$ re#inA&ish 3&s, c$nc&r wi,h ,he
$ver, ac, $% re#inA&ish3en,O hence, ,he ac,s $% ,he e3*#$)ee 'e%$re an+ a%,er ,he a##ege+
resigna,i$n 3&s, 'e c$nsi+ere+ in +e,er3ining whe,her he in %ac, in,en+e+ ,$ ,er3ina,e his
e3*#$)3en,. In i##ega# +is3issa# cases, %&n+a3en,a# is ,he r&#e ,ha, when an e3*#$)er
in,er*$ses ,he +e%ense $% resigna,i$n, $n hi3 necessari#) res,s ,he '&r+en ,$ *r$ve ,ha, ,he
e3*#$)ee in+ee+ v$#&n,ari#) resigne+. G&i+e+ ') ,hese *rinci*#es, we agree wi,h ,he C$&r, $%
A**ea#s ,ha, wi,h ,he avai#ing evi+ence, SMPI was &na'#e ,$ +ischarge ,his '&r+en.
The A&es,i$n $% whe,her $r n$, ,here was s&ch re$rgani4a,i$n *#an in *#ace a, ,he ,i3e $%
G&ca'anSs se*ara,i$n %r$3 ,he c$3*an), is 3a,eria# ,$ ,he +e,er3ina,i$n $% whe,her her
resigna,i$n was $% her $wn v$#i,i$n as c#ai3e+ ') SMPI, inas3&ch as ,he %ac,s $% ,his case ,e##
,ha, G&ca'an c$&#+ n$, have J#e+ %$r resigna,i$n ha+ G$n4a#e4 n$, c$33&nica,e+ ,$ her ,he
a##ege+ re$rgani4a,i$n *#an %$r ,he c$3*an).
Tr&e, whi#e a re$rgani4a,i$n $% SMPISs c$r*$ra,e s,r&c,&re 3igh, have in+ee+ ,a<en *#ace as
sh$wn ') ,he n$,ices, never,he#ess, i, ha**ene+ $n#) in ,he #a,,er *ar, $% 1999 ` $r 3$re ,han
Page .-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
a )ear a%,er G&ca'anSs se*ara,i$n %r$3 ,he c$3*an) an+ inci+en,a##), a%,er she J#e+ ,he
ins,an, c$3*#ain,.
I, is n$, +iIc&#, ,$ see ,ha,, sh$r,#) *ri$r ,$ an+ a, ,he ,i3e $% G&ca'anSs a##ege+ resigna,i$n,
,here was ac,&a##) n$ gen&ine c$r*$ra,e res,r&c,&ring *#an in *#ace as )e,. In $,her w$r+s,
a#,h$&gh ,he c$3*an) 3igh, have 'een s&Kering %r$3 #$sses +&e ,$ 3ar<e, +ec#ine as
a##ege+, ,here was s,i## n$ c$ncre,e *#an %$r a c$r*$ra,e re$rgani4a,i$n a, ,he ,i3e G$n4a#e4
*resen,e+ ,$ G&ca'an ,he see3ing#) #as, avai#a'#e a#,erna,ive $*,i$ns $% v$#&n,ar) resigna,i$n
an+ ,er3ina,i$n ') a'$#i,i$n $% her $Ice.
I, is ,hen &n+ers,an+a'#e %$r G&ca'an, c$nsi+ering ,he a,,rac,ive Jnancia# *ac<age which SMPI
a+3i,,e+#) $Kere+ ,$ her, ,$ $*, %$r resigna,i$n ins,ea+ $% s&Ker ,er3ina,i$n ` a c$nseA&ence
,he cer,ain,) $% which she was 3a+e ,$ 'e#ieve.
As res*$n+en, was +is3isse+ wi,h$&, ca&se, ,he NLRC r&#ing is c$rrec, ,ha, she is en,i,#e+ ,$
reins,a,e3en, an+ 'ac<wages, ,he #a,,er ,$ 'e c$3*&,e+ %r$3 her +is3issa# &* ,$ ,he ,i3e $%
her ac,&a# reins,a,e3en, *&rs&an, ,$ Ar,. !"9 $% ,he La'$r C$+e.
H$wever, ,here is ,he *$ssi'i#i,) ,ha, G&ca'anSs reE$ining SMPISs w$r<%$rce w$&#+ $n#)
eFacer'a,e ,he ,ensi$n an+ s,raine+ re#a,i$ns which in ,he Jrs, *#ace ha+ given rise ,$ ,his
inci+en,. Th&s, ,he r&#ing $% ,he C$&r, $% A**ea#s is 3$+iJe+ in ,his res*ec,. In #ie& $%
reins,a,e3en,, an awar+ $% se*ara,i$n *a) is in $r+er, eA&iva#en, ,$ $ne =1? 3$n,h sa#ar) %$r
ever) )ear $% service.
1.. S:i%%ers <ni(e& 3aciKc vs. 4o0a, G.R. No. 17...-, 6eruar$ -, 2"12
9ac,sL
Pe,i,i$ner +e*#$)e+ 7e Gracia, La,a an+ A*r$s,a ,$ w$r< $n '$ar+ ,he vesse# M8 Wis+$3 S,ar.
:n 7ece3'er 1991, S<i**ers a##eges ,ha, 7e Garcia s3e##ing s,r$ng#) $% a#c$h$#, wen, ,$ ,he
ca'in $% Ga'rie# :#es4e<, M8 Wis+$3 S,arsG Mas,er. S<i**ers c#ai3s ,ha, he was r&+e an+
sh$&,e+ n$isi#) ,$ ,he 3as,er. 7e Gracia #e%, ,he 3as,erGs ca'in a%,er a %ew 3in&,es an+ was
hear+ sh$&,ing ver) #$&+#) s$3ewhere +$wn ,he c$rri+$rs. The inci+en, was evi+ence+ ') ,he
Ca*,ainGs Re*$r, sen, $n sai+ +a,e.
9&r,her3$re, S<i**ers a#s$ c#ai3 ,ha, $n 6an&ar) !!, 1999, A*r$s,a, 7e Gracia, La,a an+ 7a4a
arrive+ in ,he 3as,erGs ca'in an+ +e3an+e+ i33e+ia,e re*a,ria,i$n 'eca&se ,he) were n$,
sa,isJe+ wi,h ,he shi*. 7e Gracia, e, a#. ,hrea,ene+ ,ha, ,he) 3a) 'ec$3e cra4) an) 3$3en,
an+ +e3an+e+ %$r a## $&,s,an+ing *a)3en,s +&e ,$ ,he3. The inci+en, is evi+ence+ ') a ,e#eF
$% C$s3$shi* M8 Wis+$3 ,$ s<i**ers '&, ha+ c$nTic,ing +a,es.
7e Gracia c#ai3s ,ha, S<i**ers %ai#e+ ,$ re3i, ,heir res*ec,ive a##$,3en,s, c$3*e##ing ,he3 ,$
ven, ,heir grievances wi,h ,he R$3anian Sea%arers >ni$n. :n 6an&ar) !1, 1999, ,he 9i#i*in$
sea%arers were &ncere3$ni$&s#) +ischarge+ an+ i33e+ia,e#) re*a,ria,e+. >*$n arriva# in ,he
Phi#i**ines, ,he) J#e+ a c$3*#ain, %$r i##ega# +is3issa# wi,h ,he LA.
The LA +is3isse+ ,he sea%arersG c$3*#ain, as ,he sea%arersG +e3an+ %$r i33e+ia,e
re*a,ria,i$n +&e ,$ ,he +issa,is%ac,i$n wi,h ,he shi* is c$nsi+ere+ a v$#&n,ar) *re5,er3ina,i$n
$% e3*#$)3en,. S&ch ac, was +ee3e+ a<in ,$ resigna,i$n rec$gni4e+ &n+er Ar,ic#e !12 $% ,he
LC. The LA gave cre+ence ,$ ,he ,e#eF $% ,he 3as,erGs re*$r, ,ha, ,he sea%arers in+ee+
+e3an+e+ i33e+ia,e re*a,ria,i$n.
Page ."
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The NLRC agree+ wi,h ,he LAGs +ecisi$n.
The CA h$wever reverse+ ,he LAGs an+ ,he NLRCGs +ecisi$n. The C$&r, +ee3e+ ,he ,e#eF
3essage as a se#%5serving +$c&3en, ,ha, +$es n$, sa,is%) ,he reA&ire3en, $% s&'s,an,ia#
evi+ence, $r ,ha, a3$&n, $% re#evan, evi+ence which a reas$na'#e 3in+ 3igh, acce*, as
a+eA&a,e ,$ E&s,i%) ,he c$nc#&si$n ,ha, *e,i,i$ners in+ee+ v$#&n,ari#) +e3an+e+ ,heir
i33e+ia,e re*a,ria,i$n.
Aggrieve+, S<i**ers a**ea#s ,he case wi,h ,he S&*re3e C$&r,.
Iss&eL
Whe,her $r n$, ,he sea%arerGs +e3an+ %$r i33e+ia,e re*a,ria,i$n can 'e c$nsi+ere+ an ac, $%
v$#&n,ar) resigna,i$n.
R&#ingL
9$r a w$r<erSs +is3issa# ,$ 'e c$nsi+ere+ va#i+, i, 3&s, c$3*#) wi,h '$,h *r$ce+&ra# an+
s&'s,an,ive +&e *r$cess. The #ega#i,) $% ,he 3anner $% +is3issa# c$ns,i,&,es *r$ce+&ra# +&e
*r$cess, whi#e ,he #ega#i,) $% ,he ac, $% +is3issa# c$ns,i,&,es s&'s,an,ive +&e *r$cess.
Pr$ce+&ra# +&e *r$cess in +is3issa# cases c$nsis,s $% ,he ,win reA&ire3en,s $% n$,ice an+
hearing. The e3*#$)er 3&s, %&rnish ,he e3*#$)ee wi,h ,w$ wri,,en n$,ices 'e%$re ,he
,er3ina,i$n $% e3*#$)3en, can 'e eKec,e+L =1? ,he Jrs, n$,ice a**rises ,he e3*#$)ee $% ,he
*ar,ic&#ar ac,s $r $3issi$ns %$r which his +is3issa# is s$&gh,O an+ =!? ,he sec$n+ n$,ice
in%$r3s ,he e3*#$)ee $% ,he e3*#$)erSs +ecisi$n ,$ +is3iss hi3. Be%$re ,he iss&ance $% ,he
sec$n+ n$,ice, ,he reA&ire3en, $% a hearing 3&s, 'e c$3*#ie+ wi,h ') giving ,he w$r<er an
$**$r,&ni,) ,$ 'e hear+. I, is n$, necessar) ,ha, an ac,&a# hearing 'e c$n+&c,e+.
S&'s,an,ive +&e *r$cess, $n ,he $,her han+, reA&ires ,ha, +is3issa# ') ,he e3*#$)er 'e 3a+e
&n+er a E&s, $r a&,h$ri4e+ ca&se &n+er Ar,ic#es !1! ,$ !1. $% ,he La'$r C$+e.
In ,his case, ,here was n$ wri,,en n$,ice %&rnishe+ ,$ 7e Gracia, e, a#., regar+ing ,he ca&se $%
,heir +is3issa#. C$s3$shi* %&rnishe+ a wri,,en n$,ice =,e#eF? ,$ S<i**ers, ,he #$ca# 3anning
agenc), c#ai3ing ,ha, 7e Gracia, e, a#., were re*a,ria,e+ 'eca&se ,he #a,,er v$#&n,ari#) *re5
,er3ina,e+ ,heir c$n,rac,s. This ,e#eF was given cre+i'i#i,) an+ weigh, ') ,he La'$r Ar'i,er an+
NLRC in +eci+ing ,ha, ,here was *re5,er3ina,i$n $% ,he e3*#$)3en, c$n,rac, Pa<in ,$
resigna,i$nP an+ n$ i##ega# +is3issa#. H$wever, as c$rrec,#) r&#e+ ') ,he CA, ,he ,e#eF 3essage
is Pa 'iase+ an+ se#%5serving +$c&3en, ,ha, +$es n$, sa,is%) ,he reA&ire3en, $% s&'s,an,ia#
evi+ence.P I%, in+ee+, 7e Gracia, e, a#., v$#&n,ari#) *re5,er3ina,e+ ,heir c$n,rac,s, ,hen 7e
Gracia, e, a#., sh$&#+ have s&'3i,,e+ ,heir wri,,en resigna,i$ns.
Ar,ic#e !12 $% ,he La'$r C$+e rec$gni4es ,er3ina,i$n ') ,he e3*#$)ee $% ,he e3*#$)3en,
c$n,rac, ') Pserving wri,,en n$,ice $n ,he e3*#$)er a, #eas, $ne =1? 3$n,h in a+vance.P Given
,ha, *r$visi$n, ,he #aw c$n,e3*#a,es ,he reA&ire3en, $% a wri,,en n$,ice $% resigna,i$n. In ,he
a'sence $% a wri,,en resigna,i$n, i, is sa%e ,$ *res&3e ,ha, ,he e3*#$)er ,er3ina,e+ ,he
sea%arers. In a++i,i$n, ,he ,e#eF 3essage re#ie+ &*$n ') ,he La'$r Ar'i,er an+ NLRC '$re
c$nTic,ing +a,es $% !! 6an&ar) 1991 an+ !! 6an&ar) 1999, giving +$&', ,$ ,he veraci,) an+
a&,hen,ici,) $% ,he +$c&3en,. In !! 6an&ar) 1991, 7e Gracia, e, a#., were n$, even e3*#$)e+
)e, ') ,he %$reign *rinci*a#.
Page .1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
PRESCRIPTION O CLAI!S
CASESL
1. Lu&o 8 Lu$/ Cor%. vs Saorni&o, G.R. No. 1*"9)", 2anuar$ 2", 2""3
9ac,sL
Pe,i,i$ner L>7: ; L>@M C:RP:RATI:N is engage+ in ,he 3an&%ac,&re $% c$c$n&, $i#, c$rn
s,arch, g#&c$se an+ re#a,e+ *r$+&c,s. I, $*era,es a 3an&%ac,&ring *#an, an+ a whar% where raw
3a,eria#s an+ Jnishe+ *r$+&c,s are shi**e+ $&,.
L>7: engage+ ,he arras,re services $% Cresenci$ L& Arras,re Services =CLAS? %$r ,he #$a+ing
an+ &n#$a+ing $% i,s Jnishe+ *r$+&c,s a, ,he whar%. Acc$r+ing#), severa# arras,re w$r<ers were
+e*#$)e+ ') CLAS ,$ *er%$r3 ,he services nee+e+ ') L>7:.
These arras,re w$r<ers were s&'seA&en,#) hire+, $n +iKeren, +a,es, as reg&#ar ran<5an+5J#e
e3*#$)ees $% L>7: ever) ,i3e ,he #a,,er nee+e+ a++i,i$na# 3an*$wer services. Sai+
e3*#$)ees ,herea%,er E$ine+ res*$n+en, &ni$n, ,he L>7: E3*#$)ees >ni$n =LE>?, which ac,e+
as ,he eFc#&sive 'argaining agen, $% ,he ran<5an+5J#e e3*#$)ees.
Res*$n+en, &ni$n en,ere+ in,$ a c$##ec,ive 'argaining agree3en, wi,h L>7: which *r$vi+es
cer,ain 'eneJ,s ,$ ,he e3*#$)ees, ,he a3$&n, $% which var) acc$r+ing ,$ ,he #eng,h $% service
ren+ere+ ') ,he avai#ing e3*#$)ee.
Therea%,er, ,he &ni$n reA&es,e+ L>7: ,$ inc#&+e in i,s 3e3'ersG *eri$+ $% service ,he ,i3e
+&ring which ,he) ren+ere+ arras,re services ,$ L>7: ,hr$&gh ,he CLAS s$ ,ha, ,he) c$&#+ ge,
higher 'eneJ,s. L>7: %ai#e+ ,$ ac, $n ,he reA&es,. Th&s, ,he 3a,,er was s&'3i,,e+ %$r
v$#&n,ar) ar'i,ra,i$n.
Iss&eL
Whe,her $r n$, 'eneJ,s c$nsis,ing $% sa#ar) increases, vaca,i$n #eave an+ sic< #eave 'eneJ,s
%$r ,he )ears 19"" ,$ 191" are a#rea+) 'arre+ ') *rescri*,i$n when *riva,e res*$n+en,s J#e+
,heir case in 6an&ar) 1992O
R&#ingL N$.
As regar+s *e,i,i$nerGs c$n,en,i$n ,ha, ,he 3$ne) c#ai3 in ,his case is 'arre+ ') *rescri*,i$n,
we h$#+ ,ha, ,his c$n,en,i$n is wi,h$&, 3eri,. S$ is *e,i,i$nerGs s,ance ,ha, ,he 'eneJ,s
c#ai3e+ ') ,he res*$n+en,s, i.e., sic< #eave, vaca,i$n #eave an+ 1,h53$n,h *a), ha+ a#rea+)
*rescri'e+, c$nsi+ering ,he ,hree5)ear *eri$+ %$r ,he ins,i,&,i$n $% 3$ne,ar) c#ai3s. S&ch
+e,er3ina,i$n is a A&es,i$n $% %ac, which 3&s, 'e ascer,aine+ 'ase+ $n ,he evi+ence, '$,h
$ra# an+ +$c&3en,ar), *resen,e+ ') ,he *ar,ies 'e%$re ,he 8$#&n,ar) Ar'i,ra,$r. In ,his case,
,he 8$#&n,ar) Ar'i,ra,$r %$&n+ ,ha, *rescri*,i$n has n$, as )e, se, in ,$ 'ar ,he res*$n+en,sG
c#ai3s %$r ,he 3$ne,ar) 'eneJ,s awar+e+ ,$ ,he3. Basic is ,he r&#e ,ha, Jn+ings $% %ac, $%
a+3inis,ra,ive an+ A&asi5E&+icia# '$+ies, which have acA&ire+ eF*er,ise 'eca&se ,heir
E&ris+ic,i$n is c$nJne+ ,$ s*eciJc 3a,,ers, are genera##) acc$r+e+ n$, $n#) grea, res*ec, '&,
even Jna#i,). Here, ,he 8$#&n,ar) Ar'i,ra,$r receive+ ,he evi+ence $% ,he *ar,ies Jrs,5han+. N$
c$3*e##ing reas$n has 'een sh$wn %$r &s ,$ +iverge %r$3 ,he Jn+ings $% ,he 8$#&n,ar)
Page .9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Ar'i,ra,$r, es*ecia##) since ,he a**e##a,e c$&r, aIr3e+ his Jn+ings, ,ha, i, ,$$< s$3e ,i3e %$r
res*$n+en, e3*#$)ees ,$ ven,i#a,e ,heir c#ai3s 'eca&se $% ,he re*ea,e+ ass&rances 3a+e ')
,he *e,i,i$ner ,ha, i, w$&#+ review ,he c$3*an) rec$r+s an+ +e,er3ine ,here%r$3 ,he va#i+i,)
$% ,he c#ai3s, wi,h$&, eF*ressing a ca,eg$rica# +enia# $% ,heir c#ai3s. As e#&ci+a,e+ ') ,he
8$#&n,ar) Ar'i,ra,$rL
The res*$n+en,s ha+ raise+ *rescri*,i$n as +e%ense. The c$n,r$##ing #aw, as r&#e+ ') ,he High
C$&r,, isL
PThe ca&se $% ac,i$n accr&es &n,i# ,he *ar,) $'#iga,e+ re%&ses FFF ,$ c$3*#) wi,h his +&,).
Being war+e+ $K ') *r$3ises, ,he w$r<ers n$, having +eci+e+ ,$ asser, /,heir0 righ,/s0, /,heir0
ca&ses $% ac,i$n ha+ n$, accr&e+P =Ci,a,i$n $3i,,e+.?
Since ,he *ar,ies ha+ c$n,in&e+ ,heir neg$,ia,i$ns even a%,er ,he 3a,,er was raise+ 'e%$re ,he
Grievance Pr$ce+&re an+ ,he v$#&n,ar) ar'i,ra,i$n, ,he res*$n+en,s ha+ n$, re%&se+ ,$ c$3*#)
wi,h ,heir +&,). The) E&s, wan,e+ ,he c$3*#ainan,s ,$ *resen, s$3e *r$$%s. The c$3*#ainan,Gs
ca&se $% ac,i$n ha+ n$, ,here%$re accr&e+ )e,. Besi+es, in ,he ear#ier v$#&n,ar) ar'i,ra,i$n
case a%$re3en,i$ne+ inv$#ving eFac,#) ,he sa3e iss&e an+ e3*#$)ees si3i#ar#) si,&a,e+ as ,he
c$3*#ainan,sG, ,he sa3e +e%ense was raise+ an+ +is3isse+ ') H$n$ra'#e The#3a 6$r+an,
8$#&n,ar) Ar'i,ra,$r.
2. 4ega/o vs. Avan(gar&e Shi%%ing cor%., G.R. no. 1.**)", Nove/er 22, 2"".
9ac,sL
:n N$ve3'er 1, 199., res*$n+en, Avan,gar+e Shi**ing C$r*$ra,i$n, ac,ing in 'eha#% $% i,s
%$reign *rinci*a#, res*$n+en, Se3'awang 6$hns$n Manage3en,, P,e., L,+., hire+ *e,i,i$ner
La&r$ 7ega3$ as :i#er $% ,he vesse# Ni**$n Ree%er. Whi#e w$r<ing in ,he vesse#Gs engine r$$3,
a s*anner +r$**e+ an+ hi, *e,i,i$ner $n his righ, ,high. He reA&ire+ s&rger) an+
h$s*i,a#i4a,i$n. He was re*a,ria,e+ ,$ ,he Phi#i**ines $n March ., 1992.
Pe,i,i$ner was again $*era,e+ an+ Avan,gar+e *ai+ a## his h$s*i,a# 'i##s an+ *r$3ise+ ,$ w$r<
$&, his sic<ness 'eneJ, wi,h Se3'awang as s$$n as he was +ec#are+ J, ,$ w$r<. :n
Se*,e3'er 11, 199", *e,i,i$ner was +ec#are+ J, ,$ w$r<.
:n 7ece3'er !., 199", *e,i,i$ner as<e+ Avan,gar+e ,$ *a) his sic<ness 'eneJ,s. :n 6an&ar)
-, 1991, Avan,gar+e re*#ie+ ,ha, i, c$&#+ n$ #$nger ac, $n *e,i,i$nerGs c#ai3 as he ha+
+evia,e+ %r$3 ,he #ega# *r$ce+&re an+, sh$&#+ he wish, he c$&#+ *ers$na##) %$##$w5&* wi,h
Se3'awang. :n March ., 1991 an+ Ma) 2, 1991, *e,i,i$ner wr$,e a #e,,er ,$ Se3'awang
regar+ing his c#ai3. Se3'awang +i+ n$, re*#).
:n March !, !((1, *e,i,i$ner #$+ge+ a c$3*#ain, %$r *a)3en, $% +isa'i#i,) 'eneJ,s an+ $,her
3$ne) c#ai3s agains, ,he res*$n+en,s. The #a'$r ar'i,er +is3isse+ ,he case wi,h$&, *reE&+ice,
s,a,ing ,ha, ,he ac,i$n ha+ a#rea+) *rescri'e+. :n a**ea#, ,he Na,i$na# La'$r Re#a,i$ns
C$33issi$n =NLRC? #i<ewise r&#e+ ,ha, *e,i,i$nerGs ca&se $% ac,i$n ha+ *rescri'e+.
Iss&eL
Whe,her *e,i,i$nerGs ca&se $% ac,i$n ha+ a#rea+) *rescri'e+.
Arg&3en,sL
Page 2(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$ner, ci,ing Ar,ic#e 1122 $% ,he New Civi# C$+e, c$n,en+s ,ha, his ca&se $% ac,i$n ha+ n$,
*rescri'e+ as ,he r&nning $% ,he *rescri*,ive *eri$+ was ,$##e+ ') his eF,raE&+icia# +e3an+ %$r
&n*ai+ sic<ness 'eneJ,s $n 7ece3'er !., 199".
Res*$n+en,s c$&n,er ,ha, ,he Civi# C$+e *r$visi$n $n eF,inc,ive *rescri*,i$n a**#ies $n#) ,$
$'#iga,i$ns ,ha, are in,rinsica##) civi# in na,&re an+ is ina**#ica'#e ,$ #a'$r cases. Res*$n+en,s
asser, ,ha, *e,i,i$nerGs +e3an+ was 3a+e 3$re ,han $ne )ear %r$3 his +a,e $% arriva# in ,he
Phi#i**ines, c$n,rar) ,$ wha, is *rescri'e+ in Sec,i$n !1 $% ,he Phi#i**ine :verseas
E3*#$)3en, A+3inis,ra,i$n =P:EA? Me3$ran+&3 Circ&#ar N$. 22, Series $% 199-. The) a++
,ha, ,he ins,i,&,i$n $% ,he ac,i$n was 'e)$n+ ,he ,hree5)ear *eri$+ *rescri'e+ in Ar,ic#e !91 $%
,he La'$r C$+e as his e3*#$)3en, wi,h ,he res*$n+en,sG en+e+ $n March ., 1992 '&, ,he
c$3*#ain, was J#e+ $n#) $n March !, !((1.
R&#ingL @es.
We n$,e ,ha, P:EA Circ&#ar N$. 22, Series $% 199- 'eca3e eKec,ive $n#) $n 6an&ar) 1, 199"
whi#e ,he e3*#$)3en, c$n,rac, 'e,ween ,he *ar,ies was en,ere+ ear#ier $n N$ve3'er 1, 199..
The ear#ier s,an+ar+ e3*#$)3en, c$n,rac, iss&e+ ') ,he P:EA +i+ n$, have a *r$visi$n $n
*rescri*,i$n $% c#ai3s. Hence, ,he a**#ica'#e *r$visi$n in ,his case is Ar,ic#e !91 $% ,he La'$r
C$+e which we sha## n$w +isc&ss.
In Ca+a#in v. P:EAGs A+3inis,ra,$r, we he#+ ,ha, Ar,ic#e !91 c$vers a## 3$ne) c#ai3s %r$3
e3*#$)er5e3*#$)ee re#a,i$nshi* an+ is 'r$a+er in sc$*e ,han c#ai3s arising %r$3 a s*eciJc
#aw. I, is n$, #i3i,e+ ,$ 3$ne) c#ai3s rec$vera'#e &n+er ,he La'$r C$+e, '&, a**#ies a#s$ ,$
c#ai3s $% $verseas c$n,rac, w$r<ers.
Ar,ic#e !91 *r$vi+es ,ha, a## 3$ne) c#ai3s arising %r$3 e3*#$)er5e3*#$)ee re#a,i$ns sha## 'e
J#e+ wi,hin ,hree )ears %r$3 ,he ,i3e ,he ca&se $% ac,i$n accr&e+, $,herwise, ,hese sha## 'e
%$rever 'arre+. A ca&se $% ac,i$n accr&es &*$n ,he ca,eg$rica# +enia# $% c#ai3. Pe,i,i$nerGs
ca&se $% ac,i$n accr&e+ $n#) $n 6an&ar) -, 1991, when Avan,gar+e +enie+ his c#ai3 an+ s$
'reache+ i,s $'#iga,i$n ,$ *e,i,i$ner. Pe,i,i$ner c$&#+ n$, have a ca&se $% ac,i$n *ri$r ,$ ,his
'eca&se his ear#ier reA&es,s were war+e+ $K ') in+eJni,e *r$3ises. The c$3*#ain, J#e+ $n
March !, !((1 is 'e)$n+ ,he ,hree5)ear *eri$+ 3an+a,e+ ') ,he La'$r C$+e.
3. !n(ercon(inen(al 'roa&cas(ing Cor%. vs. 3anganian, G.R. No. 1.1*"7, 6eruar$
), 2""7
9ac,sL
Res*$n+en, Irene$ Pangani'an was e3*#$)e+ as Assis,an, Genera# Manager $% ,he *e,i,i$ner
In,erc$n,inen,a# Br$a+cas,ing C$r*$ra,i$n %r$3 Ma) 191- &n,i# his *reven,ive s&s*ensi$n $n
A&g&s, !-, 1911. Res*$n+en, resigne+ %r$3 his e3*#$)3en, $n Se*,e3'er !, 1911. :n A*ri#
1!, 1919, res*$n+en, J#e+ wi,h ,he ,ria# c$&r, a case agains, ,he 3e3'ers $% ,he B$ar+ $%
A+3inis,ra,$rs =B:A? $% *e,i,i$ner a##eging, a3$ng $,hers, n$n5*a)3en, $% his &n*ai+
c$33issi$ns.
A 3$,i$n ,$ +is3iss was J#e+ ') 6$se#i,$ San,iag$, $ne $% ,he +e%en+an,s, $n ,he gr$&n+ $%
#ac< $% E&ris+ic,i$n, as res*$n+en,Ss c#ai3 was a #a'$r 3$ne) c#ai3, '&, ,his was +enie+ ') ,he
RTC.
Page 21
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Th&s, San,iag$ J#e+ a *e,i,i$n %$r ertiorari wi,h ,he CA, which gran,e+ San,iag$Ss *e,i,i$n %$r
#ac< $% E&ris+ic,i$n an+ se, asi+e ,he RTCSs :r+ers.
Therea%,er, res*$n+en, was e#ec,e+ ') ,he B:A as 8ice5Presi+en, %$r Mar<e,ing in 6&#) 199!.
He resigne+ in A*ri# 199.
:n 6&#) !., 199-, res*$n+en, J#e+ agains, *e,i,i$ner a c$3*#ain, %$r i##ega# +is3issa#,
se*ara,i$n *a), re,ire3en, 'eneJ,s, &n*ai+ c$33issi$ns, an+ +a3ages.
Iss&eL
Whe,her $r n$, res*$n+en,Ss c#ai3 %$r &n*ai+ c$33issi$ns has a#rea+) *rescri'e+.
R&#ingL @es.
The a**#ica'#e #aw in ,his case is Artile JDB of t$e Labor Code which *r$vi+es ,ha, Pa## 3$ne)
c#ai3s arising %r$3 e3*#$)er5e3*#$)ee re#a,i$ns accr&ing +&ring ,he eKec,ivi,) $% ,his C$+e
sha## 'e J#e+ wi,hin ,hree =? )ears %r$3 ,he ,i3e ,he ca&se $% ac,i$n accr&e+O $,herwise ,he)
sha## 'e %$rever 'arre+.P The ,er3 P3$ne) c#ai3sP c$vers a## 3$ne) c#ai3s arising %r$3 an
e3*#$)er5e3*#$)ee re#a,i$n.
Li<e $,her ca&ses $% ac,i$n, ,he *rescri*,ive *eri$+ %$r 3$ne) c#ai3s is s&'Eec, ,$ in,err&*,i$n,
an+ in ,he a'sence $% an eA&iva#en, La'$r C$+e *r$visi$n %$r +e,er3ining whe,her ,he sai+
*eri$+ 3a) 'e in,err&*,e+, Artile BB@@ of t$e Civil Code 3a) 'e a**#ie+.
Th&s, ,he *rescri*,i$n $% an ac,i$n is in,err&*,e+ ') =a? ,he J#ing $% an ac,i$n, ='? a wri,,en
eF,raE&+icia# +e3an+ ') ,he cre+i,$r, an+ =c? a wri,,en ac<n$w#e+g3en, $% ,he +e', ') ,he
+e',$r. :n ,his *$in,, ,he C$&r, r&#e+ ,ha, a#,h$&gh ,he c$33ence3en, $% a civi# ac,i$n s,$*s
,he r&nning $% ,he s,a,&,e $% *rescri*,i$n $r #i3i,a,i$ns, i,s +is3issa# $r v$#&n,ar)
a'an+$n3en, ') *#ain,iK #eaves ,he *ar,ies in eFac,#) ,he sa3e *$si,i$n as ,h$&gh n$ ac,i$n
ha+ 'een c$33ence+ a, a##.
Hence, whi#e ,he J#ing $% ,he civi# c$&#+ have in,err&*,e+ ,he r&nning $% ,he ,hree5)ear
*rescri*,ive *eri$+, i,s c$nseA&en, +is3issa# ') ,he CA +&e ,$ #ac< $% E&ris+ic,i$n eKec,ive#)
cance#e+ ,he ,$##ing $% ,he *rescri*,ive *eri$+ wi,hin which ,$ J#e his 3$ne) c#ai3, #eaving
res*$n+en, in eFac,#) ,he sa3e *$si,i$n as ,h$&gh n$ civi# case ha+ 'een J#e+ a, a##. The
r&nning $% ,he ,hree5)ear *rescri*,ive *eri$+ n$, having 'een in,err&*,e+ ') ,he J#ing $% ,he
civi# case, res*$n+en,Ss ca&se $% ac,i$n ha+ a#rea+) *rescri'e+ $n Se*,e3'er !, 1991, ,hree
)ears a%,er his cessa,i$n $% e3*#$)3en, $n Se*,e3'er !, 1911. C$nseA&en,#), when
res*$n+en, J#e+ his c$3*#ain, %$r i##ega# +is3issa#, se*ara,i$n *a), re,ire3en, 'eneJ,s, an+
+a3ages in 6&#) !., 199-, his c#ai3, c#ear#), ha+ a#rea+) 'een 'arre+ ') *rescri*,i$n.
*. 6ar #as( Agricul(ural Su%%l$ vs. Lea(i?ue, G.R. No. 1)2-13, 6eruar$ 12, 2""7
9ac,sL
Pe,i,i$ner 9ar Eas, hire+ $n March ., 199- *riva,e res*$n+en, 6i33) Le'a,iA&e as ,r&c< +river
wi,h a +ai#) wage $% P!!.2(. He +e#ivere+ ani3a# %ee+s ,$ ,he c$3*an)Gs c#ien,s. :n 6an&ar)
!., !(((, Le'a,iA&e c$3*#aine+ $% n$n*a)3en, $% $ver,i3e w$r< *ar,ic&#ar#) $n 6an&ar) !!,
!(((, when he was reA&ire+ ,$ 3a<e a sec$n+ +e#iver) in N$va#iches, D&e4$n Ci,). Tha, sa3e
+a), Man&e# >), 'r$,her $% 9ar Eas,Gs Genera# Manager an+ *e,i,i$ner A#eFan+er >),
Page 2!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
s&s*en+e+ Le'a,iA&e a**aren,#) %$r i##ega# &se $% c$3*an) vehic#e. Even s$, Le'a,iA&e
re*$r,e+ %$r w$r< ,he neF, +a) '&, he was *r$hi'i,e+ %r$3 en,ering ,he c$3*an) *re3ises.
:n 6an&ar) !-, !(((, Le'a,iA&e s$&gh, ,he assis,ance $% ,he 7e*ar,3en, $% La'$r an+
E3*#$)3en, =7:LE? P&'#ic Assis,ance an+ C$3*#ain,s >ni, c$ncerning ,he n$n*a)3en, $% his
$ver,i3e *a). Acc$r+ing ,$ Le'a,iA&e, ,w$ +a)s #a,er, he receive+ a ,e#egra3 %r$3 *e,i,i$ners
reA&iring hi3 ,$ re*$r, %$r w$r<. When he +i+ ,he neF, +a), 6an&ar) !9, !(((, A#eFan+er
as<e+ hi3 wh) he was c#ai3ing $ver,i3e *a). Le'a,iA&e eF*#aine+ ,ha, he ha+ never 'een
*ai+ %$r $ver,i3e w$r< since he s,ar,e+ w$r<ing %$r ,he c$3*an). He a#s$ ,$#+ A#eFan+er ,ha,
Man&e# ha+ Jre+ hi3. A%,er ,a#<ing ,$ Man&e#, A#eFan+er ,er3ina,e+ Le'a,iA&e an+ ,$#+ hi3
,$ #$$< %$r an$,her E$'. :n March !(, !(((, Le'a,iA&e J#e+ a c$3*#ain, %$r i##ega# +is3issa# an+
n$n*a)3en, $% $ver,i3e *a).
Pe,i,i$ners 3ain,ain ,ha, Le'a,iA&e, as a +river, is n$, en,i,#e+ ,$ $ver,i3e *a) since he is Je#+
*ers$nne# wh$se ,i3e $&,si+e ,he c$3*an) *re3ises cann$, 'e +e,er3ine+ wi,h reas$na'#e
cer,ain,). Acc$r+ing ,$ *e,i,i$ners, ,he +rivers +$ n$, $'serve reg&#ar w$r<ing h$&rs &n#i<e
,he $,her $Ice e3*#$)ees. The +rivers 3a) re*$r, ear#) in ,he 3$rning ,$ 3a<e ,heir
+e#iveries $r in ,he a%,ern$$n, +e*en+ing $n ,he *r$+&c,i$n $% ani3a# %ee+s an+ ,he ,raIc
c$n+i,i$ns. Pe,i,i$ners a#s$ aver ,ha, Le'a,iA&e w$r<e+ %$r #ess ,han eigh, h$&rs a +a).
Res*$n+en,, $n his *ar, c#ai3s ,ha, he is n$, a Je#+ *ers$nne#, ,h&s, he is en,i,#e+ ,$ $ver,i3e
*a) an+ service incen,ive #eave *a).
Iss&eL
Whe,her $r n$, Le'a,iA&e is es,$**e+ %r$3 c#ai3ing ,ha, he was i##ega##) +is3isse+ since his
c$3*#ain, 'e%$re ,he 7:LE was $n#) $n ,he n$n*a)3en, $% his $ver,i3e *a)O
R&#ingL
A## 3$ne) c#ai3s arising %r$3 an e3*#$)er5e3*#$)ee re#a,i$nshi* sha## 'e J#e+ wi,hin ,hree
)ears %r$3 ,he ,i3e ,he ca&se $% ac,i$n accr&e+O $,herwise, ,he) sha## 'e %$rever 'arre+.
9&r,her, i% i, is es,a'#ishe+ ,ha, ,he 'eneJ,s 'eing c#ai3e+ have 'een wi,hhe#+ %r$3 ,he
e3*#$)ee %$r a *eri$+ #$nger ,han ,hree )ears, ,he a3$&n, *er,aining ,$ ,he *eri$+ 'e)$n+
,he ,hree5)ear *rescri*,ive *eri$+ is ,here%$re 'arre+ ') *rescri*,i$n. The a3$&n, ,ha, can
$n#) 'e +e3an+e+ ') ,he aggrieve+ e3*#$)ee sha## 'e #i3i,e+ ,$ ,he a3$&n, $% ,he 'eneJ,s
wi,hhe#+ wi,hin ,hree )ears 'e%$re ,he J#ing $% ,he c$3*#ain,.
Le'a,iA&e ,i3e#) J#e+ his c#ai3 %$r service incen,ive #eave *a), c$nsi+ering ,ha, in ,his
si,&a,i$n, ,he *rescri*,ive *eri$+ c$33ences a, ,he ,i3e he was ,er3ina,e+. :n ,he $,her
han+, his c#ai3 regar+ing n$n*a)3en, $% $ver,i3e *a) since he was hire+ in March 199- is a
+iKeren, 3a,,er. In ,he case $% $ver,i3e *a), he can $n#) +e3an+ %$r ,he $ver,i3e *a)
wi,hhe#+ %$r ,he *eri$+ wi,hin ,hree )ears *rece+ing ,he J#ing $% ,he c$3*#ain, $n March !(,
!(((.
.. 5ic(or$ Liner, !nc. vs. Race, G.R. No. 1)*-2", March 2-, 2""7
9ac,sL
In 6&ne 199, res*$n+en, was e3*#$)e+ ') ,he *e,i,i$ner as a '&s +river. :n ,he nigh, $% !.
A&g&s, 199., ,he '&s he was +riving was '&3*e+ ') a 7ag&*an5'$&n+ '&s. As a
Page 2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c$nseA&ence ,here$%, res*$n+en, s&Kere+ a %rac,&re+ #e%, #eg an+ was r&she+ ,$ ,he C$&n,r)
Me+ica# an+ Tra&3a Cen,er in Tar#ac Ci,) where he was $*era,e+ $n an+ c$nJne+ %r$3 !.
A&g&s, 199. &* ,$ 1( :c,$'er 199.. :ne 3$n,h a%,er his re#ease %r$3 ,he sai+ h$s*i,a#, ,he
res*$n+en, was c$nJne+ again %$r %&r,her ,rea,3en, $% his %rac,&re+ #e%, #eg a, ,he S*ecia#is,
Gr$&* H$s*i,a# in 7ag&*an Ci,). His c$nJne3en, ,herein #as,e+ a 3$n,h. Pe,i,i$ner
sh$&#+ere+ ,he +$c,$rGs *r$%essi$na# %ee an+ ,he $*era,i$n, 3e+ica,i$n an+ h$s*i,a# eF*enses
$% ,he res*$n+en, in ,he a%$res,a,e+ h$s*i,a#s.
In 6an&ar) 1991, ,he res*$n+en,, s,i## #i3*ing heavi#), wen, ,$ ,he *e,i,i$nerGs $Ice ,$ re*$r,
%$r w$r<. He was, h$wever, in%$r3e+ ') ,he *e,i,i$ner ,ha, he was c$nsi+ere+ resigne+ %r$3
his E$'. Res*$n+en, re%&se+ ,$ acce+e an+ insis,e+ $n having a +ia#$g&e wi,h ,he *e,i,i$nerGs
$Icer na3e+ @$#an+a M$n,es. 7&ring ,heir 3ee,ing, M$n,es ,$#+ hi3 ,ha, he was +ee3e+ ,$
have resigne+ %r$3 his w$r< an+ ,$ acce*, a c$nsi+era,i$n $% P2(,(((.((. Res*$n+en,
reEec,e+ ,he eF*#ana,i$n an+ $Ker. Therea%,er, 'e%$re Chris,3as $% 1991, he again c$nverse+
wi,h M$n,es wh$ rei,era,e+ ,$ hi3 ,ha, he was regar+e+ as resigne+ '&, raise+ ,he
c$nsi+era,i$n ,herein ,$ P1((,(((.((. Res*$n+en, re'&Ke+ ,he increase+ $Ker. :n ( 6&ne
1999, res*$n+en,, ,hr$&gh his c$&nse#, sen, a #e,,er ,$ ,he *e,i,i$ner +e3an+ing e3*#$)3en,5
re#a,e+ 3$ne) c#ai3s.
There 'eing n$ res*$nse %r$3 ,he *e,i,i$ner, ,he res*$n+en, J#e+ 'e%$re ,he La'$r Ar'i,er $n
1 Se*,e3'er 1999 a c$3*#ain, %$r =1? &n%air #a'$r *rac,iceO =!? i##ega# +is3issa#O =?
&n+er*a)3en, $% wagesO =.? n$n*a)3en, $% $ver,i3e an+ h$#i+a) *re3i&3, service incen,ive
#eave *a), vaca,i$n an+ sic< #eave 'eneJ,s, 1,h 3$n,h *a)O =2? eFcessive +e+&c,i$n $%
wi,hh$#+ing ,aF an+ SSS *re3i&3O an+ =-? 3$ra# an+ eFe3*#ar) +a3ages an+ a,,$rne)Gs %ees.
In i,s P$si,i$n Pa*er +a,e+ !" March !(((, *e,i,i$ner c#ai3e+ ,ha, ,he res*$n+en,Gs ca&se $%
ac,i$n agains, *e,i,i$ner ha+ a#rea+) *rescri'e+ 'eca&se when ,he %$r3er ins,i,&,e+ ,he
a%$resai+ c$3*#ain, $n 1 Se*,e3'er 1999, 3$re ,han Jve )ears ha+ a#rea+) #a*se+ %r$3 ,he
accr&a# $% his ca&se $% ac,i$n $n !. A&g&s, 199..
Iss&eL
Whe,her $r n$, ,he ca&se $% ac,i$n $% res*$n+en, has a#rea+) *rescri'e+O
R&#ingL
In i##ega# +is3issa# cases, ,he e3*#$)ee c$ncerne+ is given a *eri$+ $% %$&r )ears %r$3 ,he
,i3e $% his +is3issa# wi,hin which ,$ ins,i,&,e a c$3*#ain,. This is 'ase+ $n Ar,ic#e 11.- $% ,he
New Civi# C$+e which s,a,es ,ha, ac,i$ns 'ase+ &*$n an inE&r) ,$ ,he righ,s $% ,he *#ain,iK
3&s, 'e 'r$&gh, wi,hin %$&r )ears.
The %$&r5)ear *rescri*,ive *eri$+ sha## c$33ence ,$ r&n $n#) &*$n ,he accr&a# $% a ca&se $%
ac,i$n $% ,he w$r<er. I, is se,,#e+ ,ha, in i##ega# +is3issa# cases, ,he ca&se $% ac,i$n accr&es
%r$3 ,he ,i3e ,he e3*#$)3en, $% ,he w$r<er was &nE&s,#) ,er3ina,e+. Th&s, ,he %$&r5)ear
*rescri*,ive *eri$+ sha## 'e c$&n,e+ an+ c$3*&,e+ %r$3 ,he +a,e $% ,he e3*#$)eeGs +is3issa#
&* ,$ ,he +a,e $% ,he J#ing $% c$3*#ain, %$r &n#aw%&# ,er3ina,i$n $% e3*#$)3en,.
Pr$cee+ing ,here%r$3, we sha## n$w +isc&ss an+ +e,er3ine when ,he res*$n+en,Gs ca&se $%
ac,i$n accr&e+ in $r+er ,$ ascer,ain whe,her ,he sa3e ha+ a#rea+) *rescri'e+.
I, is err$r ,$ c$nc#&+e ,ha, ,he e3*#$)3en, $% ,he res*$n+en, was &nE&s,#) ,er3ina,e+ $n 1(
N$ve3'er 199. 'eca&se he was, a, ,ha, ,i3e, s,i## c$nJne+ a, ,he S*ecia#is, Gr$&* H$s*i,a#,
7ag&*an Ci,), %$r %&r,her ,rea,3en, $% his %rac,&re+ #e%, #eg. He 3&s, 'e c$nsi+ere+ as 3ere#)
Page 2.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$n sic< #eave a, s&ch ,i3e. Li<ewise, ,he res*$n+en, cann$, a#s$ 'e +ee3e+ as i##ega##)
+is3isse+ %r$3 w$r< &*$n his re#ease %r$3 ,he sai+ h$s*i,a# in 7ece3'er 199. &* ,$
7ece3'er 199" since ,he rec$r+s sh$w ,ha, ,he res*$n+en, s,i## re*$r,e+ %$r w$r< ,$ ,he
*e,i,i$ner an+ was gran,e+ sic< an+ +isa'i#i,) #eave ') ,he *e,i,i$ner +&ring ,he sa3e *eri$+.
The res*$n+en, 3&s, 'e c$nsi+ere+ as &nE&s,#) ,er3ina,e+ %r$3 w$r< in 6an&ar) 1991 since
,his was ,he Jrs, ,i3e he was in%$r3e+ ') ,he *e,i,i$ner ,ha, he was +ee3e+ resigne+ %r$3
his w$r<. 7&ring ,ha, sa3e $ccasi$n, ,he *e,i,i$ner, in %ac,, ,rie+ ,$ c$nvince ,he res*$n+en,
,$ acce*, an a3$&n, $% P2(,(((.(( as a c$ns$#a,i$n %$r his +is3issa# '&, ,he #a,,er reEec,e+ i,.
Th&s, i, was $n#) a, ,his ,i3e ,ha, ,he res*$n+en,Gs ca&se $% ac,i$n accr&e+. C$nseA&en,#),
,he res*$n+en,Gs J#ing $% c$3*#ain, %$r i##ega# +is3issa# $n 1 Se*,e3'er 1999 was we## wi,hin
,he %$&r5)ear *rescri*,ive *eri$+.
I, is a#s$ signiJcan, ,$ n$,e ,ha, %r$3 1( N$ve3'er 199. &* ,$ 7ece3'er 199", ,he *e,i,i$ner
never %$r3a##) in%$r3e+ ,he res*$n+en, $% ,he %ac, $% his +is3issa# ei,her ,hr$&gh a wri,,en
n$,ice $r hearing. In+ee+, i, cann$, 'e gain%&##) sai+ ,ha, res*$n+en, was &n#aw%&##)
+is3isse+ $n 1( N$ve3'er 199. an+ ,ha, ,he ca&se $% ac,i$n accr&e+ $n ,ha, +a,e.
). 2.H. Merca&o 8 Sons Agricul(ural #n(er%rises vs. S(o. 9o/as, G.R. No. 1.-"-*,
Augus( 29, 2""-
9ac,sL
:n 7ece3'er , 199, ,he Regi$na# Tri*ar,i,e Wages an+ Pr$+&c,ivi,) B$ar+, Regi$n CI, iss&e+
Wage :r+er N$. RTWPB5CI5(, gran,ing a C$s, $% Living A##$wance =C:LA? ,$ c$vere+ w$r<ers.
:n 6an&ar) !1, 199., *e,i,i$ner J#e+ an a**#ica,i$n %$r eFe3*,i$n %r$3 ,he c$verage $% ,he
a%$resai+ wage $r+er. Th&s, h$wever, was +enie+ ') ,he regi$na# wage '$ar+ in an :r+er
+a,e+ A*ri# 11, 199.,
N$,wi,hs,an+ing ,he sai+ $r+er, *riva,e res*$n+en,s were n$, given ,he 'eneJ,s +&e ,he3
&n+er Wage :r+er N$. RTWPB5CI5(. :n 6&#) 1(, 1991, *riva,e res*$n+en,s J#e+ an Mrgent
4otion for :rit of %2eution, and :rit of ,arnis$ment in RTWPB5CI5(5CBBE59. NWPBC Case
N$. E5925(1" Case N$. R11(( see<ing ,he en%$rce3en, $% s&'Eec, wage $r+er agains, severa#
en,i,ies inc#&+ing herein *e,i,i$ner.
:n :c,$'er ", 1991, ,he :IC5Regi$na# 7irec,$r, Regi$n CI, iss&e+ a :rit of %2eution %$r ,he
en%$rce3en, $% ,he :r+er +a,e+ A*ri# 11, 199. $% ,he Regi$na# Tri*ar,i,e Wages an+
Pr$+&c,ivi,) B$ar+.
:n N$ve3'er 1", 1991 an+ N$ve3'er !, 1991, res*ec,ive#), *e,i,i$ner J#e+ a 4otion to
Quas$ t$e :rit of %2eution an+ a Supplemental 4otion to t$e 4otion to Quas$. Pe,i,i$ner
arg&e+ ,ha, herein *riva,e res*$n+en,sG righ, ha+ a#rea+) *rescri'e+ +&e ,$ ,heir %ai#&re ,$
3$ve %$r ,he eFec&,i$n $% ,he A*ri# 11, 199. :r+er wi,hin ,he *eri$+ *r$vi+e+ &n+er Ar,ic#e
!91 $% ,he La'$r C$+e, as a3en+e+, $r wi,hin ,hree =? )ears %r$3 ,he Jna#i,) $% ,he sai+
$r+er.
Iss&eL
Whe,her $r n$, ,he c#ai3 $% res*$n+en,s have a#rea+) *rescri'e+.
Page 22
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R&#ingL
Ar,. !91 $% ,he La'$r C$+e a**#ies ,$ 3$ne) c#ai3s in genera# an+ *r$vi+es %$r a 5)ear
*rescri*,ive *eri$+ ,$ J#e ,he3.
:n ,he $,her han+, res*$n+en, e3*#$)eesG 3$ne) c#ai3s in ,his case ha+ 'een re+&ce+ ,$ a
E&+g3en,, in ,he %$r3 $% a Wage :r+er, which has 'ec$3e Jna# an+ eFec&,$r). The
*rescri*,i$n a**#ica'#e, ,here%$re, is n$, ,he genera# $ne ,ha, a**#ies ,$ 3$ne) c#ai3s, '&, ,he
s*eciJc $ne a**#)ing ,$ E&+g3en,s. Th&s, ,he righ, ,$ en%$rce ,he E&+g3en,, having 'een
eFercise+ wi,hin Jve )ears, has n$, )e, *rescri'e+.
S,a,e+ $,herwise, a c#ai3an, has ,hree )ears ,$ *ress a 3$ne) c#ai3. :nce E&+g3en, is
ren+ere+ in her %av$r, she has Jve )ears ,$ as< %$r eFec&,i$n $% ,he E&+g3en,, c$&n,e+ %r$3
i,s Jna#i,). This is c$nsis,en, wi,h ,he r&#e $n s,a,&,$r) c$ns,r&c,i$n ,ha, a genera# *r$visi$n
sh$&#+ )ie#+ ,$ a s*eciJc $ne an+ wi,h ,he 3an+a,e $% s$cia# E&s,ice ,ha, +$&',s sh$&#+ 'e
res$#ve+ in %av$r $% #a'$r.
7. Re$es vs. Nlrc, G.R. No. 1-"..1, 6eruar$ 1", 2""9
9ac,sL
The *resen, Pe,i,i$n ar$se %r$3 a C$3*#ain, %$r i##ega# +is3issa# wi,h c#ai3s %$r 3$ra# an+
eFe3*#ar) +a3ages an+ a,,$rne)Gs %ees J#e+ ') *e,i,i$ner agains, res*$n+en,s C$ca C$#a
B$,,#ers Phi#i**ines =CCBP? an+ R$,ai+a Tag&i'a$ =Tag&i'a$? 'e%$re ,he La'$r Ar'i,er $n 1.
6&ne !((.. Res*$n+en, CCBP is a c$r*$ra,i$n engage+ in ,he '&siness $% *r$+&c,i$n an+
+is,ri'&,i$n $% car'$na,e+ +rin<s, an+ Tag&i'a$ is i,s H&3an Res$&rce Manager.
In his C$3*#ain,, *e,i,i$ner a##ege+ ,ha, he was Jrs, e3*#$)e+ ') res*$n+en, CCBP, ,hr$&gh
In,erserve Man*$wer Agenc) =In,erserve?, as a Lea+3an in 9e'r&ar) 1911. Pe,i,i$ner was
ini,ia##) assigne+ ,$ ,he Men+i$#a Sa#es :Ice $% res*$n+en, CCBP. Pe,i,i$nerGs e3*#$)3en,
c$n,rac, was renewe+ ever) Jve 3$n,hs an+ he was assigne+ a +iKeren, ,as< ever) ,i3e.
S&ch an arrange3en, c$n,in&e+ &n,i# *e,i,i$ner was +irec,#) hire+ ') res*$n+en, CCBP as a
R$&,e Sa#es3an $n 12 Se*,e3'er !(((. EFac,#) $ne )ear %r$3 ,he ,i3e $% *e,i,i$nerGs
e3*#$)3en, as a R$&,e Sa#es3an, res*$n+en, CCBP, ,hr& Tag&i'a$, ,er3ina,e+ his services
$n 12 Se*,e3'er !((1. Since he a#rea+) acA&ire+ ,he s,a,&s $% a reg&#ar e3*#$)ee, *e,i,i$ner
asser,e+ ,ha, his +is3issa# %r$3 e3*#$)3en, wi,h$&, ,he 'eneJ, $% +&e *r$cess was &n#aw%&#.
Iss&eL
Whe,her $r n$, res*$n+en,Gs c#ai3 %$r 'ac<wages has a#rea+) *rescri'e+.
R&#ingL
The C$&r, was 3$re e3*ha,ic in P$ilippine (ndustrial Seurit& Agen& Corporation v. !apiton,
when i, r&#e+ ,ha, 'ac<wages ha+ ,$ 'e *ai+ ') ,he e3*#$)er as *ar, $% ,he *rice $r *ena#,)
he ha+ ,$ *a) %$r i##ega##) +is3issing his e3*#$)ee. I, was ,$ 'e c$3*&,e+ %r$3 ,he ,i3e $%
,he e3*#$)eeGs i##ega# +is3issa# =$r %r$3 ,he ,i3e his c$3*ensa,i$n was wi,hhe#+ %r$3 hi3? &*
,$ ,he ,i3e $% his reins,a,e3en,.
:ne $% ,he na,&ra# c$nseA&ences $% a Jn+ing ,ha, an e3*#$)ee has 'een i##ega##) +is3isse+ is
,he *a)3en, $% 'ac<wages c$rres*$n+ing ,$ ,he *eri$+ %r$3 his +is3issa# &* ,$ ac,&a#
Page 2-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
reins,a,e3en,. The s,a,&,$r) in,en, $% ,his 3a,,er is c#ear#) +iscerni'#e. The *a)3en, $%
'ac<wages a##$ws ,he e3*#$)ee ,$ rec$ver %r$3 ,he e3*#$)er ,ha, which he has #$s, ') wa)
$% wages as a res&#, $% his +is3issa#. L$gica##), i, 3&s, 'e c$3*&,e+ %r$3 ,he +a,e $%
*e,i,i$nerGs i##ega# +is3issa# &* ,$ ,he ,i3e $% ac,&a# reins,a,e3en,. There can 'e n$ ga* $r
in,err&*,i$n, #es, we +e%ea, ,he ver) reas$n $% ,he #aw in gran,ing ,he sa3e. Tha, *e,i,i$ner
+i+ n$, i33e+ia,e#) J#e his C$3*#ain, sh$&#+ n$, aKec, $r +i3inish his righ, ,$ 'ac<wages, %$r
i, is a righ, c#ear#) gran,e+ ,$ hi3 ') #aw 55 sh$&#+ he 'e %$&n+ ,$ have 'een i##ega##) +is3isse+
55 an+ %$r as #$ng as his ca&se $% ac,i$n has n$, 'een 'arre+ ') *rescri*,i$n.
The #aw JFes ,he *eri$+ $% ,i3e wi,hin which *e,i,i$ner c$&#+ see< re3e+) %$r his i##ega#
+is3issa# an+ %$r as #$ng as he J#e+ his C$3*#ain, wi,hin ,he *rescri*,ive *eri$+, he sha## 'e
en,i,#e+ ,$ ,he %&## *r$,ec,i$n $% his righ, ,$ 'ac<wages. In i##ega# +is3issa# cases, ,he
e3*#$)ee c$ncerne+ is given a *eri$+ $% %$&r )ears %r$3 ,he ,i3e $% his i##ega# +is3issa# wi,hin
which ,$ ins,i,&,e ,he c$3*#ain,. This is 'ase+ $n Ar,ic#e 11.- $% ,he New Civi# C$+e which
s,a,es ,ha, ac,i$ns 'ase+ &*$n an inE&r) ,$ ,he righ,s $% ,he *#ain,iK 3&s, 'e 'r$&gh, wi,hin
%$&r )ears. The %$&r5)ear *rescri*,ive *eri$+ sha## c$33ence ,$ r&n $n#) &*$n ,he accr&a# $% a
ca&se $% ac,i$n $% ,he w$r<er. Here, *e,i,i$ner was +is3isse+ %r$3 service $n 12 Se*,e3'er
!((1. He J#e+ his c$3*#ain, %$r i##ega# +is3issa# $n 1. 6&ne !((.. C#ear#), ,hen, ,he ins,an,
case was J#e+ wi,hin ,he *rescri*,ive *eri$+.
-. L>5 Cons(ruc(ion Cor%. vs. 4u%o, G.R. No. 1723*2, 2ul$ 13, 2""9
9ac,sL
Pe,i,i$ner, a +$3es,ic c$r*$ra,i$n which recr&i,s 9i#i*in$ w$r<ers, hire+ res*$n+en, Marce#$
7&*$ as Civi# S,r&c,&ra# S&*erin,en+en, ,$ w$r< in Sa&+i Ara'ia %$r i,s *rinci*a#, M$ha33a+
A#5M$Ei# Gr$&*BEs,a'#ish3en, =MMG?. :n 9e'r&ar) !-, 199!, res*$n+en, signe+ his Jrs,
$verseas e3*#$)3en, c$n,rac,, renewa'#e a%,er $ne )ear. I, was renewe+ Jve ,i3es $n ,he
%$##$wing +a,esL Ma) 1(, 199, N$ve3'er 1-, 199., 6an&ar) !!, 199-, A*ri# 1., 199", an+
March !-, 1991. A## were JFe+5*eri$+ c$n,rac,s %$r $ne )ear. The siF,h an+ #as, c$n,rac,
s,a,e+ ,ha, res*$n+en,Gs e3*#$)3en, s,ar,s &*$n re*$r,ing ,$ w$r< an+ en+s when he #eaves
,he w$r< si,e. Res*$n+en, #e%, Sa&+i Ara'ia $n A*ri# (, 1999 an+ arrive+ in ,he Phi#i**ines $n
Ma) 1, 1999. Res*$n+en, ,hen has signe+ - $verseas c$n,rac,s an+ w$r<e+ %$r seven )ears in
Sa&+i Ara'ia.
:n 6&#) -, 1999, res*$n+en, ,hr$&gh a #e,,er resigne+ %r$3 his w$r< an+ as<e+ MMG ,$ give
hi3 his Y#$ng service awar+G in acc$r+ance wi,h ,he Ar,ic#e 1" $% Sa&+i Law which s,a,es ,ha,O
Ar,ic#e 1"
Where ,he ,er3 $% a #a'$r c$n,rac, c$nc#&+e+ %$r a s*eciJe+ *eri$+ c$3es ,$ an en+ $r where
,he e3*#$)er cance#s a c$n,rac, $% &ns*eciJe+ *eri$+, ,he e3*#$)er sha## *a) ,$ ,he w$r<3an
an awar+ %$r ,he *eri$+ $% his service ,$ 'e c$3*&,e+ $n ,he 'asis $% ha#% a 3$n,hGs *a) %$r
each $% ,he Jrs, Jve )ears an+ $ne 3$n,hGs *a) %$r each $% ,he s&'seA&en, )ears. The #as,
ra,e $% *a) sha## 'e ,a<en as 'asis %$r ,he c$3*&,a,i$n $% ,he awar+. 9$r %rac,i$ns $% a )ear,
,he w$r<3an sha## 'e en,i,#e+ ,$ an awar+ which is *r$*$r,i$na,e ,$ his service *eri$+ +&ring
,ha, )ear. 9&r,her3$re, ,he w$r<3an sha## 'e en,i,#e+ ,$ ,he service awar+ *r$vi+e+ %$r a, ,he
'eginning $% ,his ar,ic#e in ,he %$##$wing casesL
I% he is ca##e+ ,$ 3i#i,ar) service.
I% a w$r<3an resigns 'eca&se $% 3arriage $r chi#+'ir,h.
I% ,he w$r<3an is #eaving ,he w$r< as a res&#, $% a %$rce 3aEe&re 'e)$n+ his c$n,r$#. =E3*hasis
s&**#ie+.?
Page 2"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
H$wever, MMG +i+ n$, re*#) ,$ ,he #e,,er $% ,he res*$n+en, 7&*$ which #e+ ,$ ,he J#ing $% ,he
case 'e%$re ,he #a'$r ar'i,er %$r ,he *a)3en, $% ,he #$ng service awar+ in ,he a3$&n, $%
>Sj1!,-.(..
:n ,he $,her han+, *e,i,i$ner *resen,e+ ,w$ +e%enses na3e#) *a)3en, an+ *rescri*,i$n.
9irs,#), *e,i,i$ner sai+ ,he #$ng service awar+ has a#rea+) 'een *ai+ ever) ,i3e each $% ,he
c$n,rac,s $% e3*#$)3en, $% ,he res*$n+en, c$3es ,$ an en+, since, ,he c$n,rac, is %$r a JFe+
*eri$+ $% ,i3e. In eKec,, ,he severance *a) receive+ ') ,he res*$n+en, ever) ,i3e each $% ,he
- c$n,rac,s $% e3*#$)3en, c$3es ,$ an en+, is a#s$ ,he #$ngevi,) service awar+. Pe,i,i$ner
c#ai3e+ ,ha, #$ng service awar+ is ,he sa3e wi,h severance *a). Sec$n+#), *e,i,i$ner insis,s
,ha, *rescri*,i$n 'arre+ res*$n+en,Gs c#ai3 %$r #$ng servie a.ard 'eca&se &n+er Ar,ic#e 1 $%
,he Sa&+i La'$r Law i, *r$vi+es ,ha, n$ case $r c#ai3 re#a,ing ,$ an) $% ,he righ,s *r$vi+e+ %$r
&n+er sai+ #aw sha## 'e hear+ a%,er ,he #a*se $% 1! 3$n,hs %r$3 ,he +a,e $% ,he ,er3ina,i$n $%
,he c$n,rac,. Res*$n+en,Gs siF,h c$n,rac, en+e+ $n A*ri# (, 1999 ,he +a,e he #e%, his w$r<
which was a#s$ in eKec, ,he +a,e $% ,he ,er3ina,i$n $% his c$n,rac,, an+ he J#e+ ,he case $n
7ece3'er 11, !((( which is 1 )ear an+ seven 3$n,hs %r$3 ,he +a,e $% ,he ,er3ina,i$n $% his
c$n,rac,.
The #a'$r ar'i,er, NLRC, an+ CA +eci+e+ a## in %av$r $% ,he res*$n+en,.
Iss&esL
Whe,her $r n$, CA erre+ in r&#ing ,ha, res*$n+en, is en,i,#e+ ,$ #$ng service *a) which is
+iKeren, %r$3 severance *a).
!. Whe,her $r n$, ,he ca&se $% ac,i$n has *rescri'e+.
R&#ingL
SC sai+ ,ha, CA has c$33i,,e+ an err$r in r&#ing ,ha, ,he #$ng service *a) is +iKeren, %r$3
severance *a). Acc$r+ing ,$ SC ,he severance *a) receive+ ') ,he res*$n+en, a, ,he en+ $%
each $% ,he siF c$n,rac,s $% e3*#$)3en, is eA&iva#en, ,$ ,he #$ng service *a). This is ,he
reas$n wh) ,he %$r3&#a in c$3*&,ing ,he severance *a) is ,he sa3e wi,h ,he c$3*&,a,i$n $%
,he #$ng service awar+. M$re$ver, SC sai+ ,ha, res*$n+en,Gs e3*#$)3en, c$n,rac,s eF*ress#)
s,a,e+ ,ha, his e3*#$)3en, en+e+ &*$n his +e*ar,&re %r$3 w$r<. Each )ear he +e*ar,e+ %r$3
w$r< an+ s&ccessive#) new c$n,rac,s were eFec&,e+ 'e%$re he re*$r,e+ %$r w$r< anew. His
service was n$, c&3&#a,ive. Per,inen,#), in Brent S$ool, (n. v. 9amora, we sai+ ,ha, Ma JFe+
,er3 is an essen,ia# an+ na,&ra# a**&r,enanceN $% $verseas e3*#$)3en, c$n,rac,s as in ,his
case. We a#s$ sai+ in ,ha, case ,ha, &n+er A3erican #aw, M/w0here a c$n,rac, s*eciJes ,he
*eri$+ $% i,s +&ra,i$n, i, ,er3ina,es $n ,he eF*ira,i$n $% s&ch *eri$+. A c$n,rac, $%
e3*#$)3en, %$r a +eJni,e *eri$+ ,er3ina,es ') i,s $wn ,er3s a, ,he en+ $% s&ch *eri$+.N As i,
is, Ar,ic#e "! $% ,he Sa&+i La'$r Law is a#s$ $% si3i#ar i3*$r,.
I, rea+sL
A #a'$r c$n,rac, c$nc#&+e+ %$r a s*eciJe+ *eri$+ sha## ,er3ina,e &*$n ,he eF*ir) $% i,s ,er3. I%
'$,h *ar,ies c$n,in&e ,$ en%$rce ,he c$n,rac,, ,herea%,er, i, sha## 'e c$nsi+ere+ renewe+ %$r an
&ns*eciJe+ *eri$+.
SC r&#e+ ,ha, ,he c#ai3 has n$, )e, *rescri'e+ 'eca&se ,he #aw ,ha, sh$&#+ 'e a**#ie+ $n
*rescri*,i$n is n$, ,he Sa&+i Law which gran,s 1! 3$n,hs *eri$+ $% ,i3e ,$ J#e ,he c#ai3 %r$3
,he ,i3e $% ,he ,er3ina,i$n $% c$n,rac, '&, i, sh$&#+ 'e ,he La'$r C$+e *ar,ic&#ar#) ART. !91.
M$ne) c#ai3s. ` A## 3$ne) c#ai3s arising %r$3 e3*#$)er5e3*#$)ee re#a,i$ns accr&ing +&ring
,he eKec,ivi,) $% ,his C$+e sha## 'e J#e+ wi,hin ,hree =? )ears %r$3 ,he ,i3e ,he ca&se $%
ac,i$n accr&e+O $,herwise ,he) sha## 'e %$rever 'arre+. The reas$n is 'eca&se *rescri*,i$n is a
Page 21
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*r$ce+&ra# #aw an+ &n+er ,he c$nTic, $% #aws r&#es $% ,he Phi#i**ines ,he *r$ce+&ra# #aw $% ,he
#eF %$ri $r #aw $% ,he %$r&3 =#aw $% ,he *#ace where ,he case is J#e+? 3&s, 'e a**#ie+. H$wever,
an arg&3en, can 'e raise+ ,ha, even i% ,he c$nTic, $% #aws r&#e *r$vi+es ,ha, ,he *r$ce+&ra#
#aw $% ,he #eF %$ri 3&s, 'e %$##$we+, Sec. .1 $% $&r C$+e $% Civi# Pr$ce+&re which is a
'$rr$wing s,a,&,e *r$vi+es ,ha, MI% ') ,he #aws $% ,he s,a,e $r c$&n,r) where ,he ca&se $%
ac,i$n ar$se, ,he ac,i$n is 'arre+, i, is a#s$ 'arre+ in ,he Phi#i**ine Is#an+s.N Sec,i$n .1 has n$,
'een re*ea#e+ $r a3en+e+ ') ,he Civi# C$+e $% ,he Phi#i**ines. Ar,ic#e !!"( $% sai+ C$+e
re*ea#e+ $n#) ,h$se *r$visi$ns $% ,he C$+e $% Civi# Pr$ce+&re as ,$ which were inc$nsis,en,
wi,h i,. There is n$ *r$visi$n in ,he Civi# C$+e $% ,he Phi#i**ines, which is inc$nsis,en, wi,h $r
c$n,ra+ic,$r) ,$ Sec,i$n .1 $% ,he C$+e $% Civi# Pr$ce+&re =Paras, Phi#i**ine C$nTic, $% Laws,
1(. /"
,h
e+.0?.
In ,he #igh, $% ,he 191" C$ns,i,&,i$n, h$wever, Sec,i$n .1 /$% ,he C$+e $% Civi# Pr$ce+&re0
cann$, 'e en%$rce+ e2 proprio vigore ins$%ar as i, $r+ains ,he a**#ica,i$n in ,his E&ris+ic,i$n $%
/Ar,ic#e0 12- $% ,he A3iri 7ecree N$. ! $% 19"-.
The c$&r,s $% ,he %$r&3 wi## n$, en%$rce an) %$reign c#ai3 $'n$Fi$&s ,$ ,he %$r&3Gs *&'#ic
*$#ic). T$ en%$rce ,he $ne5)ear *rescri*,ive *eri$+ $% ,he Sa&+i Law as regar+s ,he c#ai3s in
A&es,i$n w$&#+ c$n,ravene ,he *&'#ic *$#ic) $n ,he *r$,ec,i$n ,$ #a'$r.
Res*$n+en,Gs c$3*#ain, was J#e+ we## wi,hin ,he ,hree5)ear *rescri*,ive *eri$+ &n+er Ar,ic#e
!91 $% $&r La'$r C$+e. This *$in,, h$wever, has a#rea+) 'een 3$$,e+ ') SCGs Jn+ing ,ha,
res*$n+en,Gs service awar+ ha+ 'een *ai+, a#'ei, ,he *a)r$## ,er3e+ s&ch *a)3en, as
severance *a).
Pe,i,i$n is Gran,e+.
9. 3L49 v. 3ingol, G.R. No. 1-2)22, Se%(e/er -, 2"1"
9ac,sL
In 19"9, res*$n+en, R$'er,$ R. Ping$# /Pingol0 was hire+ ') *e,i,i$ner PL7T in 19"9, as a
3ain,enance ,echnician. :n A*ri# 1, 1999, whi#e s,i## &n+er ,he e3*#$) $% PL7T, Ping$# was
a+3i,,e+ a, The Me+ica# Ci,), Man+a#&)$ng Ci,), %$r M*aran$i+ *ers$na#i,) +is$r+erN +&e ,$
Jnancia# an+ 3ari,a# *r$'#e3s. He was +ischarge+ %r$3 ,he h$s*i,a#. Therea%,er, he re*$r,e+
%$r w$r< '&, %reA&en,#) a'sen,e+ hi3se#% +&e ,$ his *$$r 3en,a# c$n+i,i$n.
Ping$# was a'sen, %r$3 w$r< wi,h$&, $Icia# #eave %r$3 Se*,e3'er 1-, 1999 ,$ 7ece3'er 1,
1999. PL7T, sen, hi3 n$,ices wi,h a s,ern warning ,ha, he w$&#+ 'e +is3isse+ %r$3
e3*#$)3en, i% he c$n,in&e+ ,$ 'e a'sen, wi,h$&, $Icia# #eave M*&rs&an, ,$ PL7T S)s,e3s
Prac,ice A5((" which *r$vi+es ,ha, YA'sence wi,h$&, a&,h$ri4e+ #eaves %$r seven ="?
c$nsec&,ive +a)s is s&'Eec, ,$ ,er3ina,i$n %r$3 ,he service. 6an&ar) 1, !(((, PL7T ,er3ina,e+
his services $n ,he gr$&n+s $% &na&,h$ri4e+ a'sences an+ a'an+$n3en, $% $Ice.
:n March !9, !((., %$&r )ears #a,er, Ping$# J#e+ a C$3*#ain, %$r C$ns,r&c,ive 7is3issa# an+
M$ne,ar) C#ai3s/-0 agains, PL7T. In his c$3*#ain,, he a##ege+ ,ha, he was has,i#) +is3isse+
%r$3 his e3*#$)3en, $n 6an&ar) 1, !(((. In res*$nse, PL7T J#e+ a 3$,i$n ,$ +is3iss
c#ai3ing, a3$ng $,hers, ,ha, res*$n+en,Gs ca&se $% ac,i$n ha+ a#rea+) *rescri'e+ as ,he
c$3*#ain, was J#e+ %$&r =.? )ears an+ ,hree =? 3$n,hs a%,er his +is3issa#.
Page 29
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
La'$r Ar'i,er /LA0 iss&e+ an $r+er gran,ing *e,i,i$nerGs M$,i$n ,$ 7is3iss $n ,he gr$&n+ $%
*rescri*,i$n. As c$rrec,#) ci,e+ ') =PL7T?, as r&#e+ ') ,he S&*re3e C$&r, in ,he case $%
Ca##an,a vs. Carna,i$n Phi#s., 1.2 SCRA !-1, ,he c$3*#ain, %$r i##ega# +is3issa# 3&s, 'e J#e+
wi,hin %$&r =.? )ears %r$3 an+ a%,er ,he +a,e $% +is3issa#.
The NLRC in i,s N$ve3'er 12, !((- Res$#&,i$n reverse+ ,he LAGs res$#&,i$n an+ %av$re+ Ping$#.
Le, ,he en,ire rec$r+s $% ,he case 'e REMAN7E7 ,$ ,he La'$r Ar'i,er a A&$ %$r %&r,her
*r$cee+ings.
Iss&esL
Whe,her $r n$, res*$n+en, Ping$# J#e+ his c$3*#ain, %$r c$ns,r&c,ive +is3issa# an+ 3$ne)
c#ai3s wi,hin ,he *rescri*,ive *eri$+ $% %$&r =.? )ears as *r$vi+e+ in Ar,ic#e 11.- $% ,he Civi#
C$+e/110/1!0 res*ec,ive#) an+ ,hree =? )ears as *r$vi+e+ in Ar,ic#e !91 $% ,he La'$r C$+e,
When is ,he *iv$,a# +a,e when ,he ca&se $% ac,i$n $% res*$n+en, Ping$# accr&e+W
R&#ingL
Par,ies a**aren,#) +$ n$, +is*&,e ,he a**#ica'#e *rescri*,ive *eri$+. Ar,ic#e 11.- $% ,he New
Civi# C$+e *r$vi+esL
Ar,. 11.-. The %$##$wing ac,i$ns 3&s, 'e ins,i,&,e+ wi,hin %$&r )earsL
=1? >*$n an inE&r) ,$ ,he righ,s $% ,he *#ain,iKO
In Callanta v. Carnation,/1-0 when $ne is ar'i,rari#) an+ &nE&s,#) +e*rive+ $% his E$' $r 3eans
$% #ive#ih$$+, ,he ac,i$n ins,i,&,e+ ,$ c$n,es, ,he #ega#i,) $% $neSs +is3issa# %r$3 e3*#$)3en,
c$ns,i,&,es, in essence, an ac,i$n *re+ica,e+ P&*$n an inE&r) ,$ ,he righ,s $% ,he *#ain,iK,P as
c$n,e3*#a,e+ &n+er Ar,. 11.- $% ,he New Civi# C$+e, which 3&s, 'e 'r$&gh, wi,hin %$&r =.?
)ears.
Wi,h regar+ ,$ ,he *rescri*,ive *eri$+ %$r 3$ne) c#ai3s, Ar,ic#e !91 $% ,he La'$r C$+e s,a,esL
Ar,ic#e !91. M$ne) C#ai3s. R A## 3$ne) c#ai3s arising %r$3 e3*#$)er5e3*#$)ee re#a,i$ns
accr&ing +&ring ,he eKec,ivi,) $% ,his C$+e sha## 'e J#e+ wi,hin ,hree =? )ears %r$3 ,he ,i3e
,he ca&se $% ac,i$n accr&e+O $,herwise ,he) sha## 'e 'arre+ %$rever.
I, is a se,,#e+ E&ris*r&+ence ,ha, a ca&se $% ac,i$n has ,hree =? e#e3en,s, ,$ wi,L =1? a righ, in
%av$r $% ,he *#ain,iK ') wha,ever 3eans an+ &n+er wha,ever #aw i, arises $r is crea,e+O =!? an
$'#iga,i$n $n ,he *ar, $% ,he na3e+ +e%en+an, ,$ res*ec, $r n$, ,$ vi$#a,e s&ch righ,O an+ =?
an ac, $r $3issi$n $n ,he *ar, $% s&ch +e%en+an, vi$#a,ive $% ,he righ, $% ,he *#ain,iK $r
c$ns,i,&,ing a 'reach $% ,he $'#iga,i$n $% ,he +e%en+an, ,$ ,he *#ain,iK.
Ping$# asser,s ,ha, his c$3*#ain, was J#e+ wi,hin ,he *rescri*,ive *eri$+ $% %$&r =.? )ears. He
c#ai3s ,ha, his ca&se $% ac,i$n +i+ n$, accr&e $n 6an&ar) 1, !((( 'eca&se he was n$,
ca,eg$rica##) an+ %$r3a##) +is3isse+ $r his 3$ne,ar) c#ai3s ca,eg$rica##) +enie+ ') *e,i,i$ner
PL7T $n sai+ +a,e. 9&r,her, res*$n+en, Ping$# *$si,s ,ha, ,he c$n,in&$&s %$##$w5&* $% his c#ai3
wi,h *e,i,i$ner PL7T %r$3 !((1 ,$ !(( sh$&#+ 'e c$nsi+ere+ in ,he rec<$ning $% ,he
*rescri*,ive *eri$+.
Pe,i,i$ner PL7T, $n ,he $,her han+, c$n,en+s ,ha, res*$n+en, Ping$# was +is3isse+ %r$3 ,he
service $n 6an&ar) 1, !((( an+ s&ch %ac, was even a##ege+ in ,he c$3*#ain, he J#e+ 'e%$re ,he
LA. He never c$n,ra+ic,e+ his *revi$&s a+3issi$n ,ha, he was +is3isse+ $n 6an&ar) 1, !(((.
S&ch a+3i,,e+ %ac, +$es n$, reA&ire *r$$%.
Page -(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The C$&r, agrees wi,h *e,i,i$ner PL7T. 6&+icia# a+3issi$ns 3a+e ') *ar,ies in ,he *#ea+ings,
$r in ,he c$&rse $% ,he ,ria# $r $,her *r$cee+ings in ,he sa3e case are c$nc#&sive an+ s$ +$es
n$, reA&ire %&r,her evi+ence ,$ *r$ve ,he3. These a+3issi$ns cann$, 'e c$n,ra+ic,e+ &n#ess
*revi$&s#) sh$wn ,$ have 'een 3a+e ,hr$&gh *a#*a'#e 3is,a<e $r ,ha, n$ s&ch a+3issi$n was
3a+e./110 In Pepsi Cola Bottling Compan& v. ,uanzon,R i, was wri,,enL ,ha, ,he +is3issa# $%
,he *riva,e res*$n+en,Ss c$3*#ain, was s,i## *r$*er since i, is a**aren, %r$3 i,s %ace ,ha, ,he
ac,i$n has *rescri'e+. Priva,e res*$n+en, hi3se#% a##ege+ in ,he c$3*#ain, ,ha, he was
&n#aw%&##) +is3isse+ in 19"9 whi#e ,he c$3*#ain, was J#e+ $n#) $n N$ve3'er 1., 191.. FFF
=E3*hasis s&**#ie+. Ci,a,i$ns $3i,,e+.?
Ping$# hi3se#% a##ege+ ,he +a,e 6an&ar) 1, !((( as ,he +a,e $% his +is3issa# in his
c$3*#ain,/!(0 J#e+ $n March !9, !((., eFac,#) %$&r =.? )ears an+ ,hree =? 3$n,hs #a,er.
Res*$n+en, never +enie+ 3a<ing s&ch a+3issi$n $r raise+ *a#*a'#e 3is,a<e as ,he reas$n
,here%$r. Th&s, ,he *e,i,i$ner c$rrec,#) re#ie+ $n s&ch a##ega,i$n in ,he c$3*#ain, ,$ 3$ve %$r
,he +is3issa# $% ,he case $n ,he gr$&n+ $% *rescri*,i$n.
The La'$r C$+e has n$ s*eciJc *r$visi$n $n when a c#ai3 %$r i##ega# +is3issa# $r a 3$ne,ar)
c#ai3 accr&es. Th&s, ,he genera# #aw $n *rescri*,i$n a**#ies. Ar,ic#e 112( $% ,he Civi# C$+e
s,a,esL
Ar,ic#e 112(. The ,i3e %$r *rescri*,i$n %$r a## <in+s $% ac,i$ns, when ,here is n$ s*ecia#
*r$visi$n which $r+ains $,herwise, sha## 'e c$&n,e+ %r$3 ,he +a) ,he) 3a) 'e 'r$&gh,.
=E3*hasis s&**#ie+?
*$e da& t$e ation ma& be broug$t is ,he +a) a c#ai3 s,ar,s as a #ega# *$ssi'i#i,). In ,he
*resen, case, 6an&ar) 1, !((( was ,he +a,e ,ha, res*$n+en, Ping$# was n$, a##$we+ ,$ *er%$r3
his &s&a# an+ reg&#ar E$' as a 3ain,enance ,echnician. Res*$n+en, Ping$# ci,e+ ,he sa3e +a,e
$% +is3issa# in his c$3*#ain, 'e%$re ,he LA. As, ,h&s, c$rrec,#) r&#e+ ') ,he LA, ,he c$3*#ain,
J#e+ ha+ a#rea+) *rescri'e+.
Res*$n+en, c#ai3s ,ha, 'e,ween !((1 an+ !((, he 3a+e %$##$w5&*s wi,h PL7T 3anage3en,
regar+ing his 'eneJ,s. This, ,$ his 3in+, ,$##e+ ,he r&nning $% ,he *rescri*,ive *eri$+. The r&#e
in ,his regar+ is c$vere+ ') Ar,ic#e 1122 $% ,he Civi# C$+e. I,s a**#ica'i#i,) in #a'$r cases was
&*he#+ in ,he case $% (nternational Broadasting Corporation v. Panganiban where i, was
wri,,enL
Li<e $,her ca&ses $% ac,i$n, ,he *rescri*,ive *eri$+ %$r 3$ne) c#ai3s is s&'Eec, ,$ in,err&*,i$n,
an+ in ,he a'sence $% an eA&iva#en, La'$r C$+e *r$visi$n %$r +e,er3ining whe,her ,he
sai+ *eri$+ 3a) 'e in,err&*,e+, Artile BB@@ of t$e Civil Code 3a) 'e a**#ie+, ,$ wi,L
ART. 1122. The *rescri*,i$n $% ac,i$ns is in,err&*,e+ when ,he) are J#e+ 'e%$re ,he C$&r,,
when ,here is a wri,,en eF,raE&+icia# +e3an+ ') ,he cre+i,$rs, an+ when ,here is an) wri,,en
ac<n$w#e+g3en, $% ,he +e', ') ,he +e',$r. Th&s, ,he *rescri*,i$n $% an ac,i$n is in,err&*,e+
') =a? ,he J#ing $% an ac,i$n, ='? a wri,,en eF,raE&+icia# +e3an+ ') ,he cre+i,$r, an+ =c? a
wri,,en ac<n$w#e+g3en, $% ,he +e', ') ,he +e',$r.
Ping$# never 3a+e an) wri,,en eF,raE&+icia# +e3an+. Nei,her +i+ *e,i,i$ner 3a<e an) wri,,en
ac<n$w#e+g3en, $% i,s a##ege+ $'#iga,i$n. Th&s, ,he c#ai3e+ M%$##$w5&*sN c$&#+ n$, have
va#i+#) ,$##e+ ,he r&nning $% ,he *rescri*,ive *eri$+. I, is w$r,h) ,$ n$,e ,ha, res*$n+en, never
*resen,e+ an) *r$$% ,$ s&'s,an,ia,e his a##ega,i$n $% %$##$w5&*s.
>n%$r,&na,e#), res*$n+en, Ping$# has n$ $ne '&, hi3se#% ,$ '#a3e %$r his $wn *re+ica3en,.
B) his $wn a##ega,i$ns in his c$3*#ain,, he has 'arre+ his re3e+) an+ eF,ing&ishe+ his righ, $%
ac,i$n. A#,h$&gh ,he C$ns,i,&,i$n is c$33i,,e+ ,$ ,he *$#ic) $% s$cia# E&s,ice an+ ,he *r$,ec,i$n
$% ,he w$r<ing c#ass, i, +$es n$, necessar) %$##$w ,ha, ever) #a'$r +is*&,e wi## 'e a&,$3a,ica##)
Page -1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
+eci+e+ in %av$r $% #a'$r. The 3anage3en, a#s$ has i,s $wn righ,s. :&, $% I,s c$ncern %$r ,he
#ess *rivi#ege+ in #i%e, ,his C$&r,, has 3$re $%,en ,han n$, inc#ine+, ,$ &*h$#+ ,he ca&se $% ,he
w$r<er in his c$nTic, wi,h ,he e3*#$)er. S&ch #eaning, h$wever, +$es n$, '#in+ ,he C$&r, ,$
,he r&#e ,ha, E&s,ice is in ever) case %$r ,he +eserving, ,$ 'e +is*ense+ in ,he #igh, $% ,he
es,a'#ishe+ %ac,s an+ a**#ica'#e #aw an+ +$c,rine.
1". Me&line Manage/en( !nc. vs. Roslin&a, G.R. No. 1)-71., Se%(e/er 1., 2"1"
9ac,sL
Pe,i,i$ner Me+#ine Manage3en,, Inc. =MMI?, $n 'eha#% $% i,s %$reign *rinci*a#, *e,i,i$ner
Grec$3ar Shi**ing Agenc) =GSA?, hire+ 6&#ian$ R$s#in+a =6&#ian$? ,$ w$r< $n '$ar+ ,he vesse#
M8 P8ic,$r).P 6&#ian$ was *revi$&s#) e3*#$)e+ ') ,he *e,i,i$ners &n+er ,w$ s&ccessive
se*ara,e e3*#$)3en, c$n,rac,s $% var)ing +&ra,i$ns. His #a,es, c$n,rac, was a**r$ve+ ') ,he
P:EA $n Se*,e3'er 9, 1991 %$r a +&ra,i$n $% nine 3$n,hs. In acc$r+ance wi,h which, he
'$ar+e+ ,he vesse# M8 P8ic,$r)P $n :c,$'er !2, 1991 as an $i#er an+, a%,er severa# 3$n,hs $%
eF,ensi$n, was +ischarge+ $n 6an&ar) !(, !(((.
M$n,hs a%,er his re*a,ria,i$n, $r $n March -, !(((, 6&#ian$ c$ns&#,e+ 7r. Pa3e#a R. L#$ren =7r.
L#$ren? $% Me,r$*$#i,an H$s*i,a#. He c$3*#aine+ a'$&, a'+$3ina# +is,en,i$n which is ,he
3e+ica# ,er3 %$r a *a,ien, wh$ v$3i,s *revi$&s#) inges,e+ %$$+s. 9r$3 March 1 ,$ A&g&s, !.,
!(((, 6&#ian$ has &n+erg$ne He3$+ia#)sis, a 3e,h$+ $% re3$ving was,e *r$+&c,s s&ch as
crea,inine an+ &rea, as we## as %reeing wa,er %r$3 ,he '#$$+, when ,he <i+ne)s are in rena#
%ai#&re.
:n A&g&s, !", !((1, 6&#ian$ +ie+. :n Se*,e3'er ., !((, his wi%e G#iceria R$s#in+a an+ s$n
Arie# R$s#in+a, res*$n+en,s herein, J#e+ a c$3*#ain, agains, MMI an+ GSA %$r *a)3en, $%
+ea,h c$3*ensa,i$n, rei3'&rse3en, $% 3e+ica# eF*enses, +a3ages, an+ a,,$rne)Ss %ees
'e%$re ,he La'$r Ar'i,ra,i$n Branch $% ,he NLRC.
Ins,ea+ $% J#ing an answer, ,he) J#e+ a M$,i$n ,$ 7is3iss $n ,he gr$&n+s $% *rescri*,i$n, #ac<
$% E&ris+ic,i$n an+ *re3a,&ri,). Pe,i,i$ners c$n,en+e+ ,ha, ,he ac,i$n has a#rea+) *rescri'e+
'eca&se i, was J#e+ ,hree )ears, seven 3$n,hs an+ !! +a)s %r$3 ,he ,i3e ,he +ecease+
sea%arer reache+ ,he *$in, $% hire.
Iss&eL
Whe,her $r n$, ,he c#ai3 is n$, )e, 'arre+ ') *rescri*,i$n +es*i,e ,he %ac, ,ha, i, was J#e+
'e)$n+ ,he $ne5)ear *rescri*,ive *eri$+ *r$vi+e+ ') ,he P:EA S,an+ar+ E3*#$)3en,
C$n,rac,.
R&#ingL
The e3*#$)3en, c$n,rac, signe+ ') 6&#ian$ s,a,e+ ,ha, P>*$n a**r$va#, ,he sa3e sha## 'e
+ee3e+ an in,egra# *ar, $% ,he S,an+ar+ E3*#$)3en, C$n,rac, =SEC? %$r sea%arers.P Sec,i$n
!1 $% ,he P:EA SEC s,a,esL
SECTI:N !1.)MR(S!(C*("N
CCC
Rec$gni4ing ,he *ec&#iar na,&re $% $verseas shi*'$ar+ e3*#$)3en,, ,he e3*#$)er an+ ,he
sea%arer agree ,ha, a## c#ai3s arising %r$3 ,his c$n,rac, sha## 'e 3a+e wi,hin $ne =1? )ear %r$3
,he +a,e $% ,he sea%arerSs re,&rn ,$ ,he *$in, $% hire. =E3*hasis s&**#ie+?
:n ,he $,her han+, ,he La'$r C$+e s,a,esL
Page -!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ART. !91.4one& laims. ` A## 3$ne) c#ai3s arising %r$3 e3*#$)er5e3*#$)ee re#a,i$ns
accr&ing +&ring ,he eKec,ivi,) $% ,his C$+e sha## 'e J#e+ wi,hin ,hree =? )ears %r$3 ,he ,i3e
,he ca&se $% ac,i$n accr&e+O $,herwise ,he) sha## %$rever 'e 'arre+.
In Sout$eastern S$ipping v. Navarra, )r., we r&#e+ ,ha, PAr,ic#e !91 is ,he #aw g$verning ,he
*rescri*,i$n $% 3$ne) c#ai3s $% sea%arers, a c#ass $% $verseas c$n,rac, w$r<ers. This #aw
*revai#s $ver Sec,i$n !1 $% ,he S,an+ar+ E3*#$)3en, C$n,rac, %$r Sea%arers which *r$vi+es
%$r c#ai3s ,$ 'e 'r$&gh, $n#) wi,hin $ne )ear %r$3 ,he +a,e $% ,he sea%arerSs re,&rn ,$ ,he *$in,
$% hire.P We %&r,her +ec#are+ ,ha, P%$r ,he g&i+ance $% a##, Sec,i$n !1 $% ,he S,an+ar+
E3*#$)3en, C$n,rac, %$r Sea%arers, ins$%ar as i, #i3i,s ,he *rescri*,ive *eri$+ wi,hin which ,he
sea%arers 3a) J#e ,heir 3$ne) c#ai3s, is here') +ec#are+ null and void. The a**#ica'#e
*r$visi$n is Ar,ic#e !91 $% ,he La'$r C$+e, i, 'eing 3$re %av$ra'#e ,$ ,he sea%arers an+ 3$re in
acc$r+ wi,h ,he S,a,eSs +ec#are+ *$#ic) ,$ aK$r+ %&## *r$,ec,i$n ,$ #a'$r. The *rescri*,ive *eri$+
in ,he *resen, case is ,h&s ,hree )ears %r$3 ,he ,i3e ,he ca&se $% ac,i$n accr&es.P
In ,he *resen, case, ,he ca&se $% ac,i$n accr&e+ $n A&g&s, !", !((1 when 6&#ian$ +ie+. Hence,
,he c#ai3 has n$, )e, *rescri'e+, since ,he c$3*#ain, was J#e+ wi,h ,he ar'i,ra,i$n 'ranch $%
,he NLRC $n Se*,e3'er ., !((.
11. <niversi($ of #as( vs. <niversi($ of #as( #/%lo$ees Assoc., G.R. No. 179.93,
Se%(e/er 1*, 2"11
9ac,sL
Pe,i,i$ner >niversi,) $% ,he Eas, /M%0 is an e+&ca,i$na# ins,i,&,i$n +&#) $rgani4e+ an+ eFis,ing
&n+er Phi#i**ine #aws. :n ,he $,her han+, res*$n+en, >niversi,) $% ,he Eas, E3*#$)eesS
Ass$cia,i$n /M%%A0 is a +&#) regis,ere+ #a'$r &ni$n $% ,he ran<5an+5J#e e3*#$)ees $% >E.
I, a**ears %r$3 ,he rec$r+s ,ha, *ri$r ,$ sch$$# )ear /S50 1915191., ,he "(V incre3en,a#
*r$cee+s %r$3 ,&i,i$n %ee increases as 3an+a,e+ ') Presi+en,ia# 7ecree N$. .21 =P.7. N$.
.21?, as a3en+e+, .as distributed b& M% in proportion to t$e average number of aademi
and non-aademi personnel. The +is,ri'&,i$n sche3e 'eca3e ,he s&'Eec, $% an
Agree3en, +a,e+ :c,$'er 11, 191 signe+ ') ,he 3anage3en,, %ac&#,) ass$cia,i$n an+
res*$n+en,. S,ar,ing S@ 199.51992, h$wever, ,he "(V incre3en,a# *r$cee+s %r$3 ,he ,&i,i$n
%ee increase was +is,ri'&,e+ ') >E ,$ i,s c$vere+ e3*#$)ees based on a ne. formula of
perentage of salar&.
:n 6&ne 19, 1992, a ,ri*ar,i,e 3ee,ing was he#+ a3$ng ,he re*resen,a,ives $% 3anage3en,,
%ac&#,) &ni$n an+ >EEA. In ,he sai+ 3ee,ing, i, was agree+ ,ha, ,he +is,ri'&,i$n $% ,he
incre3en,a# *r$cee+s w$&#+ n$w 'e 'ase+ $n *ercen,age $% sa#ar), an+ n$, an)3$re $n ,he
average n&3'er $% *ers$nne#. The Min&,es $% ,he 6&ne 19, 1992 3ee,ing was signe+ an+
a,,es,e+ ,$ ') >EEA $Icers wh$ a,,en+e+.
:n A*ri# !", 1999, >EEA J#e+ a c$3*#ain, 'e%$re ,he NLRC %$r n$n5*a)3en,B&n+er*a)3en, $%
,he ran<5an+5J#e e3*#$)eesS share $% ,he ,&i,i$n %ee increases agains, >E *&rs&an, ,$ P.7. N$.
.21, as a3en+e+, an+ Re*&'#ic Ac, /R.A.0 N$. -"!1 $,herwise <n$wn as ,overnment
Assistane to Students and *ea$ers in Private %duation At.
>E asser,e+ ,ha, ,he c#ai3 $% ,he >EEA was a#rea+) 'arre+ since i, was J#e+ ,hree =? )ears
%r$3 ,he ,i3e i,s s&**$se+ ca&se $% ac,i$n accr&e+.
Page -
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ISS>EL
Whe,her $r n$, *rescri*,i$n has a#rea+) se, in.
R>LINGL
The C$&r, agrees wi,h >E an+ h$#+s ,ha, >EEASs righ, ,$ A&es,i$n ,he +is,ri'&,i$n $% ,he
incre3en,a# *r$cee+s %$r S@ 199.51992 has a#rea+) *rescri'e+. Ar,ic#e !91 $% ,he La'$r C$+e
*r$vi+es ,ha, 3$ne) c#ai3s arising %r$3 an e3*#$)er5e3*#$)ee re#a,i$nshi* 3&s, 'e J#e+
wi,hin ,hree =? )ears %r$3 ,he ,i3e ,he ca&se $% ac,i$n accr&e+. In ,he *resen, case, ,he
ca&se $% ac,i$n accr&e+ when ,he +is,ri'&,i$n $% ,he incre3en,a# *r$cee+s 'ase+ $n
*ercen,age $% sa#ar) $% ,he c$vere+ e3*#$)ees was +isc&sse+ in ,he ,ri*ar,i,e 3ee,ing he#+ $n
6&ne 19, 1992. >EEA +i+ n$, A&es,i$n ,he 3anner $% i,s +is,ri'&,i$n an+ $n#) $n A*ri# !", 1999
+i+ i, J#e an ac,i$n 'ase+ ,herein. Hence, *rescri*,i$n ha+ se, in.
Page -.