(Labor Law Rev Digests) (Batch 1)

Labor Law Review |Sobrevinas | August December 2014|Page
Viana v. Al-lagadan
20 August 2014
Ponente: Concepcion
Lia
SUMMARY:
Vianas sailboat san! an" crew member Ale#an"ro
"isa$$eare" wit% t%e cra&t! $rom$ting t%e latters $arents
'res$on"ents( to )le a claim &or com$ensation* +ot% t%e
,-- Re&eree an" t%e -ommissioner &oun" .R/..
relations%i$ b0 consi"ering Ale#an"ros s%are! w%ic% %e
s%oul" %ave receive" at t%e en" o& t%e tri$! as 1wages* 2%e
S- rule" it coul" not "etermine w%et%er Ale#an"ro was an
in"ustrial $artner or an em$lo0ee! as t%e &acts are
insu3cient to warrant a reasonable conclusion* 4nl0
element 2 coul" be assume" to e5ist*
DOCTRINE:
6n "etermining t%e e5istence o& .R/.. relations%i$! t%e
&ollowing elements are generall0 consi"ere"7
'1( t%e selection an" engagement o& t%e em$lo0ee8
'2( t%e $a0ment o& wages8
'9( t%e $ower o& "ismissal8 an"
'4( t%e $ower to control t%e em$lo0ees con"uct : alt%oug%
t%e latter is t%e most im$ortant element
FACTS:
1* Petitioner Via;as sailboat <=aga$ati"> san in Se$t 1?4@*
Ale#an"ro Al/Laga"an! member o& t%e crew! "isa$$eare" wit% t%e
cra&t* Ais $arents 'res$on"ents( )le" a claim &or com$ensation
un"er Act Bo* 942@*
2* A Re&eree o& t%e ,ormens -om$ensation -ommission ',--(
or"ere" Via;a to $a0 P1!CD0* Ae base" %is "ecision on t%e re$ort
t%at t%e basis o& engaging t%e services o& crewmen is "etermine"
in accor"ance wit% t%e contract e5ecute" between t%e owner an"
t%e $atron* 2%e contract commonl0 &ollowe" is on a s%are basis
a&ter "e"ucting all t%e e5$enses* 4ne/%al& goes to t%e owner! an"
t%e ot%er %al& goes to t%e $atron an" t%e members* 2%e %iring o&
t%e crew is "one b0 t%e $atron %imsel&* Esuall0! w%en a $atron
enters into a contract wit% t%e owner! %e %as a crew rea"0 wit%
%im*
2* 2%e -ommissioner a3rme" t%e Re&erees "ecision* Ae
sustaine" t%e )n"ing o& an .R/.. relations%i$! an" consi"ere" t%e
s%are w%ic% Ale#an"ro receive" at t%e en" o& eac% tri$ was in t%e
nature o& 1wages w%ic% is "e)ne" un"er sec 9? o& t%e
-om$ensation Act* 2%is is so because suc% s%are coul" be
recone" in terms o& mone0*
9* Via;a broug%t t%e matter to S- &or review b0 certiorari! on t%e
groun" t%at Ale#an"ro was! at t%e time o& %is "eat%! an in"ustrial
$artner! not an em$lo0ee* Ae allege" in %is $etition t%at t%e
$ractice observe" in engaging t%e services o& crewmen is on a
$artners%i$ basis! suc% t%at t%at t%e owner receives %al& o& t%e
earnings a&ter "e"ucting t%e e5$enses! t%e ot%er %al& is "ivi"e"
$ro rata among t%e members! t%e $atron receiving 4 $arts! t%e
1$iloto 9 $arts! t%e w%eelsman 1 1F2 $arts an" t%e members 1
$art eac%*
ISSUES/HELD:
,as Ale#an"ro an in"ustrial $artner or an em$lo0eeG -oul" not be
"etermine"* -ase reman"e" to ,--*
RATIO:
6n "etermining t%e e5istence o& .R/.. relations%i$! t%e &ollowing
elements are generall0 consi"ere"7
'1( t%e selection an" engagement o& t%e em$lo0ee8
'2( t%e $a0ment o& wages8
'9( t%e $ower o& "ismissal8 an"
'4( t%e $ower to control t%e em$lo0ees con"uct : alt%oug% t%e
latter is t%e most im$ortant element '9C Am* Hur* 44C(*
1
Assuing t%at t%e s%are receive" b0 Ale#an"ro coul" $artae o&
t%e nature o& wages an" !"a! !"# $nd #l##n! #%is!s& !"#
'#()'d d)#s n)! ()n!ain an* s+#(i,( da!a '#ga'ding !"#
-'d and .!" #l##n!s.
/i!" '#s+#(! !) !"# 0s! #l##n!& !"# 1a(!s a'# insu2(i#n!
!) 3a''an! a '#as)na4l# ()n(lusi)n.
4n t%e one %an"! t%e re$ort suggests t%at t%e members are
c%osen b0 t%e $atron! seemingl0! u$on %is sole res$onsibilit0 an"
aut%orit0* Aowever! t%e re$ort re&erre" to a $ractice commonl0
an" <usuall0> observe" in a given $lace* Bo recor" on w%et%er
suc% $ractice %a" been &ollowe" in t%is case* =ore im$ortant still!
t%e language use" in t%e re$ort ma0 be construe" as intimating!
not onl0 t%at t%e <$atron> selects an" engages t%e crew! but!
also! t%at t%e members t%ereo& are sub#ect to %is control an" ma0
be "ismisse" b0 %im* 2%e re$ort is o$en to t%e conclusion t%at
t%e crew %as a contractual relation! not wit% t%e owner! but wit%
t%e $atron! an" t%at t%e latter is eit%er t%eir em$lo0er or t%eir
$artner*
E$on t%e ot%er %an"! t%e ver0 allegations o& t%e $etition s%ow
ot%erwise! &or Via;a e5$licitl0 averre" t%at Ale#an"ro was %is
<in"ustrial $artner>* 2%is im$lies t%at a contract o& $artners%i$
e5iste" between t%em an" t%at! accor"ingl0! i& t%e crew was
engage" b0 t%e $atron! t%e latter "i" so merel0 as agent o&
Via;a* Again! i& Via;a were a $artner o& t%e crew members! t%en
neit%er Via;a nor t%e $atron coul" control or "ismiss t%e latter*
6n t%e interest o& #ustice an" eIuit0! it woul" be better to reman"
t%e case to t%e ,-- &or &urt%er evi"ence an" )n"ings on t%e
&ollowing Iuestions7
'1( w%o selecte" t%e crew o& t%e <=aga$ati"> an" engage" t%eir
services8
'2( i& selecte" an" engage" b0 t%e $atron! "i" t%e latter act in %is
own name an" &or %is own account! or on be%al& an" &or t%e
account o& Via;a8
'9( coul" Via;a %ave re&use" to acce$t an0 o& t%e crew members
c%osen an" engage" b0 t%e $atron8
'4( "i" Via;a %ave aut%orit0 to "etermine t%e time w%en! t%e
$lace w%ere an"For t%e manner or con"itions in or un"er w%ic%
t%e crew woul" wor8 an"
'C( w%o coul" "ismiss its members*
Vda. d# C'u5 #! al v Manila
H)!#l
0678 9 :#ng5)n& ;.
2irJo -ruJ
1
an" %is orc%estra &urnis%e" music to t%e =anila
Aotel &or several 0ears be&ore t%e0 were given written notice in 1??4
t%at t%e Aotel woul" be lease" to +a0 View Aotel an" t%at em$lo0ees to
be lai" oK woul" be grante" se$aration gratuit0*
-ruJ an" %is musicians claime" gratuit0 but were "enie" so t%e0
)le" a case in -L6 o& =anila* -L6 "ismisse" t%e action %owever stating
-ruJ an" co %a" no cause o& action because t%e0 were not em$lo0ees o&
t%e %otel*
2%e0 a$$eale" "irectl0 to t%e S-*
Issu#:
,FB -ruJ an" %is ban" were em$lo0ees o& t%e =anila Aotel* Bo*
Ra!i):
SC d#(id#d (as# 4as#d )n !"# 3'i!!#n n)!i(# <'#1#''#d !) in !"#
(as# as Ann#% A= and !"# ()n!'a(! <'#1#''#d !) in !"# (as# as
E%"i4i! 0=.
C'u5 and 1'i#nds n)! ()v#'#d 4* !"# 3'i!!#n n)!i(#
$
1 Ae "ie" "uring $en"enc0 o& case but -ourt "eci"e" to re&er to %im as i& %e is
still a $art0
2
- -ruJ conten"s t%e0 are <em$lo0ees> as state" in t%e
announcement8
- -ourt7 -ruJ an" cos rig%t not $re"icate" on some statutor0
$rovision but u$on t%e oKer or $romise containe" in t%e notice8
t%e notice is not a contract but a mere oKer o& gratuit0! t%e
bene)ciaries normall0 "e$en"e" u$on t%e selection o& t%e
oKeror8
- Anal0sing t%e terms o& t%e notice! it #%!#nds !) !")s#
#+l)*##s 3") 3#'# n)! *#! #n!i!l#d !) #i!"#' !"#
)+!i)nal )' ()+uls)'* '#!i'##n! insu'an(# +')vid#d
und#' RA >>?@
- 2%e0 are not entitle" to t%e gratuit0 because t%e announcement
im$lie" re&erence to em$lo0ees insure" b0 MS6S8 since t%e0 were
never members! t%e0 coul" not be covere" b0 t%e same8
C'u5 is an ind#+#nd#n! ()n!'a(!)'
- Manila ()n!'a(!#d !"# s#'vi(#s )1 C'u5As )'("#s!'a
()+)s#d )1 07 usi(ians in(luding Ti's) C'u5 +lus Ri(
C'u5 as v)(alis! a! $7? +#' da*@
- Leatures o& t%e contract7
o 2%e0ll $la0 N 90$m to closing "ail08
o =usic arrangement le&t at lea"ers "iscretion8
o 6nstruments belong to t%e orc%estra8
o =usicians an" instruments not selecte" b0 t%e Aotel8
o Aotel %a" no reserve" $ower to "isc%arge an0 musician8
o Salar0 given le&t to t%e orc%estra or lea"er8 lum$ sum
com$ensation given weel0 to -ruJ8
- Lrom above! -ruJ an" ban" are an in"e$en"ent contractor8
"e)nition7
o 4ne w%o engages to $er&orm a certain service &or
anot%er! accor"ing to %is own manner an" met%o"! &ree
&rom t%e control an" "irection o& %is em$lo0er in all
2 . . . . It is for this reason that the necessary authority has already been secured for the payment of
separation gratuity to the employees to be laid off as a result of the lease and who are not yet
entitled to either the optional or compulsory retirement insurance provided under Republic Act
No. 660, as amended, . . . .
matters connecte" wit% t%e $er&ormance o& t%e service!
e5ce$t as to t%e result o& t%e wor
- Lactors to be consi"ere"7
a. carrying on an independent business;
b* work is part of the ep!oyer"s genera! business8
c* nature an" e5tent o& t%e wor8
"* sill reIuire"8
e* term an" "uration o& t%e relations%i$8
&* rig%t to assign t%e $er&ormance o& t%e wor to anot%er8
g* $ower to terminate t%e relations%i$8
%* e5istence o& a contract &or t%e $er&ormance o& a s$eci)e"
$iece o& wor8
i* control an" su$ervision o& t%e wor8
#* m$lo0erOs $owers an" "uties wit% res$ect to t%e %iring!
)ring! an" $a0ment o& t%e contractorOs servants8
* control o& t%e $remises8
l* "ut0 to su$$l0 t%e $remises! tools! a$$liances! material an"
labor8 an"
m* mo"e! manner! an" terms o& $a0ment*
Disissal A2'#d.
LVN Bi(!u'#s In(. v.
B"ili++in# Musi(ians Cuild
#anuary 2$% 1&'1
#. Concepcion
#eroe (arce!o
SUMMARY: 2%e P%il* =usicians Muil" )le" in t%e -ourt o&
6n"ustrial Relations a $etition &or certi)cation as t%e sole an"
e5clusive bargaining agenc0 &or all musicians woring in 9 )lm
com$anies* 2o "e&eat t%is $etition! it was allege" t%at t%e
musicians were not em$lo0ees o& t%e )lm com$anies! but
wore" &or in"e$en"ent contractors calle" 1musical "irectors*
CIR7 2%ere is an em$lo0er/em$lo0ee relations%i$* Petition &or
certi)cation is meritorious* SC7 -6R a3rme"*
9
DOCTRINE: An em$lo0er/em$lo0ee relations%i$ e5ists w%ere
t%e $erson &or w%om t%e services are $er&orme" reserves a
rig%t to control not on!y the end to be ac%ieve" but a!so the
eans to be use" in reac%ing suc% en"* 2%e "ecisive nature o&
sai" control over t%e Pmeans to be use"P is illustrate" in t%e
Milc%rist 2imber case in w%ic%! b0 reason o& sai" control! t%e
em$lo0er/em$lo0ee relations%i$ was %el" to e5ist between t%e
management an" t%e worers! notwit%stan"ing t%e
intervention o& an allege" in"e$en"ent contractor! who had%
and e)ercised% the power to hire and *re said workers*
FACTS: 2%e P%ili$$ine =usicians Muil" 'Muil"( )le" a $etition
be&ore t%e -ourt o& 6n"ustrial Relations '-6R(! $ra0ing t%at it be
certi)e" as t%e sole an" e5clusive bargaining agenc0 &or all
musicians woring in LVB Pictures! 6nc* 'LVB( an" Sam$aguita
Pictures! 6nc* 'Sam$aguita( an" Premiere Pro"uctions! 6nc**
2%e Muil" averre" t%at it is a "ul0 registere" legitimate labor
organiJation8 t%at LVB! Sam$aguita an" Premiere Pro"uctions are
cor$orations engage" in t%e maing! $rocessing an" "istribution
o& motion $ictures8 t%at sai" com$anies em$lo0 musicians to
mae music recor"ings wit%out w%ic% a motion $icture is
incom$lete8 t%at ?CQ o& t%e musicians $la0ing &or sai"
com$anies are members o& t%e Muil"8 an" t%at t%e Muil" %as no
nowle"ge o& t%e e5istence o& an0 ot%er legitimate labor
organiJation re$resenting t%em*
2%e 9 com$anies "enie" t%at t%e0 %ave an0 musicians as
em$lo0ees! an" allege" t%at t%e musical numbers in t%e )lming
o& t%e com$anies are &urnis%e" b0 in"e$en"ent contractors calle"
1musical "irectors*
CIR: 2%eor0 o& t%e Muil" is sustaine"* 2%e Muil" is certi)e" as t%e
sole an" e5clusive bargaining agenc0 o& all musicians woring
wit% sai" com$anies*
A reconsi"eration o& t%e or"er %aving been "enie" b0 t%e
-ourt en banc% onl0 LVB an" Sam$aguita )le" t%ese $etitions &or
review b0 certiorari*
ISSUE/HELD
1* /ON t%e musicians are em$lo0ees o& t%e )lm com$anies*
YES
RATIO: A$art &rom im$ugning t%e conclusion o& t%e -6R on t%e
status o& t%e Muil" members as allege" em$lo0ees! LVB
maintains t%at a $etition &or certi)cation cannot be entertaine"
w%en t%e e5istence o& em$lo0er/em$lo0ee relations%i$ between
t%e $arties is conteste"* Aowever! t%is claim is neit%er borne out
b0 an0 legal $rovision nor su$$orte" b0 an0 aut%orit0* So long as!
a&ter "ue %earing! t%e $arties are &oun" to bear sai" relations%i$!
it is $ro$er to $ass u$on t%e merits o& t%e $etition &or
certi)cation* 2%e real issue in t%ese cases! is w%et%er or not t%e
musicians in Iuestion are em$lo0ees o& t%e )lm com$anies*
2%e musical "irectors above re&erre" to %ave no suc% control over
t%e musicians involve" %ere* 2%e musical "irectors control
neit%er t%e music to be $la0e"! nor t%e musicians $la0ing it* 2%e
)lm com$anies summon t%e musicians to wor! t%roug% t%e
musical "irectors* 2%e )lm com$anies! t%roug% t%e musical
"irectors! )5 t%e "ate! t%e time an" t%e $lace o& wor* 2%e )lm
com$anies! not t%e musical "irectors! $rovi"e t%e trans$ortation
to an" &rom t%e stu"io* 2%e )lm com$anies &urnis% meals at
"inner time*
Also! "uring t%e recor"ing sessions! t%e motion $icture "irector
w%o is an ep!oyee of the copany! not t%e musical "irector!
su$ervises t%e recor"ing o& t%e musicians an" tells the what to
do in e+ery detai!* 2%e motion $icture "irector! not t%e musical
"irector! so!e!y directs the perforance of the usicians before
the caera* 2%e motion $icture "irector su$ervises t%e
$er&ormance o& all t%e actors! inc!uding the usicians w%o
a$$ear in t%e scenes! so t%at in t%e actual $er&ormance to be
s%own in t%e screen! the usica! director"s inter+ention has
4
stopped* 2%e movie "irector direct!y contro!s t%e activities o& t%e
musicians*
6t is well settle" t%at an em$lo0er/em$lo0ee relations%i$ e5ists
w%ere t%e $erson &or w%om t%e services are $er&orme" reserves
a rig%t to control not on!y the end to be ac%ieve" but a!so the
eans to be use" in reac%ing suc% en" 'Alabama Aig%wa0
.5$ress(* 2%e "ecisive nature o& sai" control over t%e Pmeans to
be use"P is illustrate" in t%e case o& Milc%rist 2imber -o* in w%ic%!
b0 reason o& sai" control! t%e em$lo0er/em$lo0ee relations%i$
was %el" to e5ist between t%e management an" t%e worers!
notwit%stan"ing t%e intervention o& an allege" in"e$en"ent
contractor! who had% and e)ercised% the power to hire and *re
said workers* 2%e a&orementione" control over t%e means to be
use" in rea"ing t%e "esire" en" is $ossesse" an" e5ercise" b0
t%e )lm com$anies over t%e musicians in t%e cases be&ore us*
RULINC: 2%e or"er a$$eale" &rom is a3rme"! wit% costs against
$etitioners*
T)'ill) v. L#)ga'd)
(ay 2,% 1&&1
Ponente: -ernan% #.
.aoi /.
SUMMARY: Petitioner was illegall0 "ismisse" b0 $rivate
res$on"ent* 2%e =inistr0 o& Labor or"ere" t%e $rivate
res$on"ent to reinstate $etitioner an" $a0 bacwages an"
%oli"a0 $a0* +ut because reinstatement was no longer $ossible!
t%e =inistr0 o& Labor mo"i)e" t%e or"er an" state" t%at
$etitioner s%all instea" be awar"e" se$aration $a0* Petitioner
argues t%at %e is entitle" to se$aration $a0 an" bacwages*
DOCTRINE: 6n t%e event t%at reinstatement is no longer
$ossible! se$aration $a0 is awar"e" to t%e em$lo0ee* 2%e
awar" o& se$aration $a0 is in lieu o& reinstatement an" not o&
bacwages*
FACTS:
Petitioner Valentino 2orillo was em$lo0e" as an organist b0
$rivate res$on"ent Aber"een -ourt! 6nc* in 4ctober 1?NN*

4n Hul0 2! 1?N@! %e invite" %is co/em$lo0ees &or a nig%t out in %is
%ometown in Rosario! -avite in celebration o& %is birt%"a0* Private
res$on"ent ob#ecte" to suc% activit0! reIuesting its em$lo0ees to
re&rain &rom atten"ing because t%e &ollowing "a0 was a woring
"a0* Petitioner $us%e" t%roug% wit% %is birt%"a0 $art0*
Petitioner re$orte" &or wor t%e ne5t "a0! Hul0 9* 4n Hul0 4 %e was
"ismisse" &rom %is em$lo0ment &or %aving "e)e" $rivate
res$on"entOs or"er*
Petitioner )le" wit% t%e =4L. Region 6V! a com$laint against
$rivate res$on"ent &or illegal "ismissal wit% $ra0er &or
reinstatement wit% bacwages! inclu"ing $a0ment o& %is un$ai"
wages &rom Hul0 1 to Hul0 9! 1?N@! %oli"a0 $a0 an" $remium $a0
&rom Lebruar0 to Hul0 1! 1?N@*
Private res$on"ent trie" to #usti&0 $etitionerOs "ismissal b0
claiming t%at t%e latter aban"one" %is wor in &ailing to re$ort &or
"ut0 a&ter %is birt%"a0 celebration*
Minis!'* )1 La4)' t%roug% Director .strella &oun" $etitioners
"ismissal illegal an" or"ere" $rivate res$on"ent Aber"een -ourt!
6nc* to7
reinstate $etitioner to %is &ormer $osition wit%out loss o&
seniorit0 rig%ts an" $rivileges
wit% &ull bacwages &rom "ate o& "ismissal on Hul0 4! 1?N@
until "ate o& actual reinstatement
an" %oli"a0 $a0 &or seven 'N( "a0s $lus %is un$ai" wages
&rom Hul0 1 to 9! 1?N@*
Private res$on"ent a$$eale" to t%e =inistr0 o& Labor*
C
A&ter N 0ears! Minis!'* )1 La4)' and E+l)*#n!! t%ru
De$ut0 =inister Leogar"o issue" an or"er a3rming t%at o&
Director .strella* =o"i)cation7 in lieu o& reinstatement! $etitioner
s%oul" be $ai" se$aration $a0 eIuivalent to $etitionerOs wages
&or two '2( mont%s*
Private res$on"ent )le" =R* Denie"*
Private res$on"ent )le" a motion &or leave to )le 2
n"
=R
attac%ing t%ereto t%e sai" 2
n"
motion*
Petitioner )le" an urgent motion &or e5ecution an" a$$ointment
o& s$ecial s%eriK! w%ic% was o$$ose" b0 $rivate res$on"ent*
Minis!'* )1 La4)' issue" a writ o& e5ecution on =a0 19! 1?@D*
+0 virtue o& sai" writ! $ersonal $ro$erties o& $rivate res$on"ent
were levie" u$on*
+e&ore t%e0 were sol" in a $ublic auction! $rivate res$on"ent )le"
a motion to Iuas% t%e writ o& e5ecution on t%e groun"s t%at7
2
n"
=R %as not 0et been acte" u$on!
bacwages s%oul" not be awar"e" to $etitioner since t%e
or"er state" t%at $etitioner s%oul" onl0 be $ai" se$aration
$a0
assuming %e is entitle" to bacwages! t%e law allows t%e
em$lo0er to "e"uct %is income earne" elsew%ere "uring
t%e time %e was out o& wor8 an"
$rivate res$on"ent s%oul" be $resent "uring t%e
com$utation o& t%e monetar0 awar"*
Petitioner )le" an o$$osition to t%is motion as well as a
su$$lemental motion &or e5ecution citing Section 2! Rule RV o&
t%e 6RR o& t%e Bew Labor -o"e! w%ic% states t%at t%e "ecision o&
t%e Secretar0 o& Labor s%all be imme"iatel0 De5ecutor0! $en"ing
a$$eal! unless sta0e" b0 t%e or"er o& t%e Presi"ent o& t%e
P%ili$$ines*
Minis!'* )1 La4)' at )rst issue" a restraining or"er en#oining
t%e assigne" s%eriK &rom $rocee"ing wit% t%e auction sale*
Aowever! on Hul0 29! 1?@D! %e recalle" t%e restraining or"er
issue" an" "irecte" t%e s%eriK to $rocee" wit% t%e e5ecution*
Private res$on"ent a$$eale" to t%e 43ce o& t%e =inister o&
Labor*
D#+u!* Minis!#' L#)ga'd) set asi"e t%e or"er "ate" Hul0 29!
1?@D! stating t%erein t%at t%e Lebruar0 19! 1?@D 4r"er stan"s!
wit% t%e clari)cation t%at t%e a3rmative relie& grante" to
com$lainant "oes not inclu"e t%e $a0ment o& bacwages* 6n
a""ition! t%e writ o& e5ecution to en&orce $a0ment o& bacwages
in t%e amount o& P2@0!N1C*00 was Iuas%e"*
Petitioner )le" a =R o& sai" or"er* Denie"* Aence! t%is recourse*
ISSUES/HELD: ,4B it is $ro$er to awar" bacwages ABD
se$aration $a0 to an illegall0 "ismisse" em$lo0ee w%ose
reinstatement is no longer &easible S.S
RATIO:
2%e clari)cator0 or"er is erroneous in so &ar as it "eclare" t%at
t%e a3rmative relie& o& bacwages is available onl0 w%ere
reinstatement is
or"ere"*
An ill#gall* disiss#d #+l)*## a* 4# a3a'd#d 4)!"
4a(D3ag#s and s#+a'a!i)n +a**
Art* 2@0 'now Art* 2N?( o& t%e Labor -o"e $rovi"es t%at Pan
em$lo0ee w%o is un#ustl0 "ismisse" &rom wor s%all be entitle" to
reinstatement wit%out loss o& seniorit0 rig%ts an" ot%er $rivileges
an" to %is &ull bacwages>
:a(D3ag#s are grante" on groun"s o& eIuit0 &or earnings w%ic%
a worer or em$lo0ee %as lost "ue to %is illegal "ismissal*
R#ins!a!##n!! on t%e ot%er %an"! means restoration to a state
o& con"ition &rom w%ic% one %a" been remove" or se$arate"*
+acwages an" reinstatement are two relie&s given to an illegall0
"ismisse" em$lo0ee*
D
In !"# #v#n! !"a! '#ins!a!##n! is n) l)ng#' +)ssi4l#&
s#+a'a!i)n +a* is a3a'd#d !) !"# #+l)*##. 2%e awar" o&
se$aration $a0 is in lieu o& reinstatement an" not o& bacwages*
0antos +s. .L1C: 2%ese twin reme"ies/reinstatement an"
$a0ment o& bacwages : mae t%e "ismisse" em$lo0ee w%ole
w%o can t%en loo &orwar" to continue" em$lo0ment* 2%us "o
t%ese two reme"ies give meaning an" substance to t%e
constitutional rig%t o& labor to securit0 o& tenure* 2%e two &orms
o& relie& are "istinct an" se$arate! one &rom t%e ot%er*
S#+a'a!i)n +a* is t%e amount t%at an em$lo0ee receives at t%e
time o& %is severance &rom t%e service an" is "esigne" to $rovi"e
t%e em$lo0ee wit% Pt%e w%erewit%al "uring t%e $erio" t%at %e is
looing &or anot%er em$lo0ment*P
Ba*#n! )1 4a(D3ag#s is a &orm o& relie& t%at restores t%e
income t%at was lost b0 reason o& unlaw&ul "ismissal8 s#+a'a!i)n
+a*& in contrast! is oriente" towar"s t%e imme"iate &uture! t%e
transitional $erio" t%e "ismisse" em$lo0ee must un"ergo be&ore
locating a re$lacement #ob*
B#!i!i)n#' is #n!i!l#d !) 4)!" s#+a'a!i)n +a* and
4a(D3ag#s.
Aowever! t%e amount o& bacwages s%all be base" on t%e
Mercury Drug Rule w%ic% limits bacwages o& illegall0
"ismisse" em$lo0ees to an amount eIuivalent to t%eir wages &or
t%ree '9( 0ears! wit%out Iuali)cation an" "e"uction*
2%e -ourt %as a"o$te" t%e $ractice o& )5ing t%e amount o&
bacwages at a reasonable level wit%out Iuali)cation an"
"e"uction so as to relieve t%e em$lo0ees &rom $roving t%eir
earnings "uring t%eir la0oKs an" t%e em$lo0er &rom submitting
counter $roo&s an" t%us obviate t%e twin evils o& i"leness on t%e
$art o& t%e em$lo0ees an" attrition an" un"ue "ela0 in satis&0ing
t%e awar" on t%e $art o& t%e em$lo0er* 2%is $ractice %as been
%aile" as a realistic! reasonable an" mutuall0 bene)cial solution*
B#!i!i)n#' s"all 4# a3a'd#d s#+a'a!i)n +a* in li#u )1
'#ins!a!##n!.
Ae s%all receive t%e amount eIuivalent to 1 mont% salar0 &or
ever0 0ear o& service! inclu"ing t%e t%ree/0ear $erio" in w%ic%
bacwages are awar"e"*
2asis: 3ro!ier 4nternationa!! 4nc* +s* Aansec! w%erein we %el"
t%at in t%e com$utation o& se$aration $a0! t%e t%ree '9( 0ear
$erio" in res$ect o& w%ic% bacwages are awar"e"! must be
inclu"e" 'alt%oug% $rivate res$on"ent %a" not actuall0 serve"
"uring t%e last t%ree '9( 0ears(
=oreover! %is actual service wit% $rivate res$on"ent &or
a$$ro5imatel0 nine '?( mont%s! counte" &rom 4ctober 1?NN to
Hul0 1?N@ s%all be consi"ere" as one '1( 0ear! in accor"ance wit%
Article 2@9 o& t%e Labor -o"e! w%ic% $rovi"es t%at a &raction o& at
least si5 'D( mont%s is consi"ere" one '1( w%ole 0ear*
Dis+)si!iv#: Petition grante"* Private res$on"ent is %ereb0
or"ere" to $a0 $etitioner t%e amount o& P14D!2CC*9N
re$resenting %is bacwages! se$aration $a0! %oli"a0 $a0 an"
un$ai" wages b0 reason o& %is illegal "ismissal*
LECEND HOTEL <MANILA= vs.
HERNANI S. REALUYO
July 18, 2012
Ponente: 2ersain% #.
5igest (aker: #ohn (ichae! 3abrie! 6ida
N
SUMMARY:
Realu0oFRoa was a $ianist in t%e em$lo0 o& Legen"! wit% t%e
restaurant manager o& Legen" $rovi"ing control over t%e
manner o& wor o& Realu0o* .ventuall0! Realu0o was
"ismisse"! w%ic% $rom$te" %im to )le an illegal "ismissal
com$laint* 2%e -ourt rule" t%at an .R/.. relations%i$ e5ists
an" enumerate" t%e &actors involve" in t%e Lour/Lol" test!
w%ic% is t%e 0ar"stic use" to "etermine t%e e5istence o& an
.R/.. relations%i$ use" b0 t%e -ourt*
DOCTRINE:
2%e -ourt enumerate" t%e Lour/Lol" "octrine use" to
"etermine w%et%er or not an .R/.. relations%i$ e5ists* 2%e
&actors to consi"er are TS,eD.U7
a* Selection $owers o& t%e em$lo0er
b* ,age $a0ment o& t%e em$lo0er
c* Dismissal $owers o& t%e em$lo0er
"* .m$lo0ee control or t%e control test
FACTS:
2%is is a labor case involving Realu0o! wit% stage name Hoe0 Roa!
a $ianist em$lo0e" b0 Legen" Aotel* Realu0o )le" a com$laint &or
allege" ELP! constructive illegal "ismissal! an" un"er$a0ment o&
$remium $a0 &or %oli"a0s! se$aration $a0! service incentive leave
$a0! an" 19
t%
mont% $a0! wit% &urt%er $ra0er &or attorne0s &ees
an" moral an" e5em$lar0 "amages*
Realu0o averre" t%at %e %a" wore" as a $ianist &or t%e Legen"
Aotels 2anglaw Restaurant &rom Se$tember 1??2! starting wit%
an initial rate o& P400Fnig%t! eventuall0 increasing to PNC0Fnig%t*
Ae coul" not c%oose t%e time o& %is $er&ormance! as it was )5e"
&rom N700 $m to 10700 $m &or 9/D times $er wee* Ae also state"
t%at t%e Legen" Aotels restaurant manager reIuire" %im to
&ollow t%e %otel moti&! an" t%at %e %a" been sub#ecte" to t%e
rules on em$lo0ees re$resentation c%ecs an" c%its 'w%ic% was
a $rivilege given to em$lo0ees(*
4n Hul0 ?! 1???! %owever! %otel management in&orme" Realu0o
t%at! "ue to cost/cutting measures un"ertaen b0 t%e %otel! %is
services woul" no longer be reIuire" eKective Hul0 90! 1??? 'onl0
21 "a0s a&ter in&orming %im o& %is "ismissal(* Realu0o insiste"!
%owever! t%at t%e %otel was lucrativel0 o$erating at t%e time o&
)ling o& t%e com$laint*
6n its "e&ense! Legen" "enie" t%e e5istence o& an0 em$lo0er/
em$lo0ee '.R/..( relations%i$ wit% Realu0o! an" t%at %e was onl0
a talent engage" to $rovi"e live music at Legen"s =a"ison
-oKee S%o$ &or 9 %oursF"a0 on 2 "a0sFwee* Legen" also averre"
t%at! "ue to t%e economic crisis! management was constraine" to
"is$ense wit% %is services*
2%e Labor Arbiter 'LA( "ismisse" t%e com$laint &or lac o& merit
u$on t%e )n"ing t%at t%ere was no .R/.. relations%i$ between
Realu0o an" Legen"* 2%is )n"ing was base" on t%e a"mission o&
Realu0o on a letter stating t%at w%at %e receive" &rom Legen" in
e5c%ange &or %is services was a <talent &ee> an" not a salar0* 2%is
was rein&orce" b0 t%e &act t%at Realu0o receive" %is salar0
nig%tl0! unlie t%e ot%er em$lo0ees w%o receive" t%eir salaries
mont%l0* E$on a$$eal! t%e BLR- a3rme" t%e same*
2%e -A! %owever! reverse" t%e LA an" BLR-! stating t%at t%e &our
elements o& .R/.. relations%i$ e5ists! most im$ortantl0 t%e
element o& em$lo0ee control in t%e &orm o& t%e su$ervision an"
control e5ercise" b0 t%e restaurant manager o& Legen"*
ISSUES/HELD:
2* ,4B Realu0o was an em$lo0ee o& Legen" Aotel* YES! .R/..
relations%i$ e5iste" between t%e $arties*
9* ,4B Realu0o was vali"l0 terminate"*
RATIO:
1* 2%e -ourt &oun" &or Realu0o in stating t%at an .R/..
relations%i$ in"ee" e5iste" between t%e $arties* 2%e -ourt
enumerate" t%e &our/&ol" test &actors! namel07
Power to select t%e em$lo0ee
Pa0ment o& em$lo0ees wages
@
Power to "ismiss t%e em$lo0ee
.5ercise o& control over t%e met%o"s an" results b0
w%ic% t%e wor o& t%e em$lo0ee is accom$lis%e"
'em$lo0ee control(
A$$l0ing t%ese &actors to t%e case at %an"! t%e -ourt &oun"
t%at Realu0o was in"ee" Legen" Aotels em$lo0ee* Ae was
em$lo0e" as a $ianist in t%e =a"ison -oKee S%o$ an"
2anglaw Restaurant &rom Se$tember 1??2 until Hul0 1???*
Legen" was &oun" to %ave wiel"e" t%e $ower o& selection
w%en it entere" into t%e service contract wit% Realu0o! as well
as e5$ress written recommen"ations b0 t%e restaurant
manager &or increase o& remuneration*
Lurt%er to t%is! t%e -ourt $ointe" out t%at! "es$ite t%e
"enomination o& t%e receive" remuneration as <talent &ees>!
t%ese remunerations were consi"ere" as inclu"e" in t%e term
<wage> in t%e sense an" conte5t o& t%e Labor -o"e!
regar"less o& t%e "esignation* As state" in Article ?N'&( o& t%e
Labor -o"e7
<V,age $ai" to an0 em$lo0ee s%all mean t%e remuneration or earnings!
%owever "esignate"! ca$able o& being e5$resse" in terms o& mone0!
w%et%er )5e" or ascertaine" on a time! tas! $iece! or commission basis!
or ot%er met%o" o& calculating t%e same! w%ic% is $a0able b0 an
em$lo0er to an em$lo0ee un"er a written or unwritten contract o&
em$lo0ment &or wor "one or to be "one! or &or services ren"ere" or to
be ren"ere"! an" inclu"es t%e &air an" reasonable value! as "etermine"
b0 t%e Secretar0 o& Labor! o& boar"! lo"ging! or ot%er &acilities
customaril0 &urnis%e" b0 t%e em$lo0er to t%e em$lo0ee*>
Lrom t%e case! it was clear t%at Realu0o in"ee" receive"
com$ensation &or services ren"ere" as t%e %otels $ianist*
Also! t%e &act t%at Realu0o wore" &or less t%an @ %oursF"a0
was o& no conseIuence an" "i" not "etract &rom )n"ing &or
t%e e5istence o& t%e .R/.. relations%i$* 6n $rovi"ing t%at t%e
Pnormal %ours o& wor o& an0 em$lo0ee s%all not e5cee" eig%t
'@( %ours a "a0!P Article @9 o& t%e Labor -o"e onl0 set a
ma5imum o& number o& %ours as Pnormal %ours o& worP but
"i" not $ro%ibit wor o& less t%an eig%t %ours*
2%ir"l0! t%e $ower o& control over t%e wor o& Realu0o!
consi"ere" as t%e most signi)cant "eterminant o& t%e
e5istence o& an .R/.. relations%i$! was seen on t%e &ollowing
&acts7
Ae coul" not c%oose t%e time o& %is $er&ormance!
w%ic% $etitioners %a" )5e" &rom N700 $m to 10700 $m!
t%ree to si5 times a wee8
Ae coul" not c%oose t%e $lace o& %is $er&ormance8
2%e restaurants manager reIuire" %im at certain
times to $er&orm onl0 2agalog songs or music! or to
wear barong 2agalog to con&orm to t%e Lili$iniana
moti&8 an"
Ae was sub#ecte" to t%e rules on em$lo0ees
re$resentation c%ec an" c%its! a $rivilege grante" to
ot%er em$lo0ees*
6t must be note" t%at t%e em$lo0er nee" not actuall0
su$ervise t%e $er&ormance o& "uties b0 t%e em$lo0ee! &or it
su3ce" t%at t%e em$lo0er %as t%e rig%t to wiel" t%at $ower*
Linall0! t%e -ourt $ointe" out t%at Legen" $ossesse" t%e
$ower to "ismiss Realu0o in t%at t%e memoran"um in&orming
Realu0o o& t%e "iscontinuance o& %is service because o& t%e
$resent business or )nancial con"ition o& Legen" s%owe" t%at
t%e latter %a" t%e $ower to "ismiss %im &rom em$lo0ment*
2* 6t must be note" t%at retrenc%ment is one o& t%e aut%oriJe"
causes &or t%e "ismissal o& em$lo0ees recogniJe" b0 t%e
Labor -o"e* 6t is a management $rerogative resorte" to b0
em$lo0ers to avoi" or to minimiJe business losses* Article 2@9
o& t%e Labor -o"e states7
Article 2@9* -losure o& establis%ment an" re"uction o& $ersonnel* 2%e
em$lo0er ma0 also terminate t%e em$lo0ment o& an0 em$lo0ee "ue to
t%e installation o& labor/saving "evices! re"un"anc0! retrenc%ment to
?
$revent losses or t%e closing or cessation o& o$eration o& t%e
establis%ment or un"ertaing unless t%e closing is &or t%e $ur$ose o&
circumventing t%e $rovisions o& t%is 2itle! b0 serving a written notice on
t%e worers an" t%e =inistr0 o& Labor an" .m$lo0ment at least one '1(
mont% be&ore t%e inten"e" "ate t%ereo&* 555* 6n case o& retrenc%ment to
$revent losses an" in cases o& closures or cessation o& o$erations o&
establis%ment or un"ertaing not "ue to serious business losses or
)nancial reverses! t%e se$aration $a0 s%all be eIuivalent to one '1(
mont% $a0 or at least one/%al& '1F2( mont% $a0 &or ever0 0ear o& service!
w%ic%ever is %ig%er* A &raction o& at least si5 'D( mont%s s%all be
consi"ere" one '1( w%ole 0ear*
2%e -ourt %as $rovi"e" t%e stan"ar"s t%at an em$lo0er
s%oul" meet to #usti&0 retrenc%ment! namel07
'a( 2%e e5$ecte" losses s%oul" be substantial an" not
merel0 de iniis in e5tent8
'b( 2%e substantial losses a$$re%en"e" must be
reasonabl0 imminent8
'c( 2%e retrenc%ment must be reasonabl0 necessar0 an"
liel0 to eKectivel0 $revent t%e e5$ecte" losses8 an"
'"( 2%e allege" losses! i& alrea"0 incurre"! an" t%e
e5$ecte" imminent losses soug%t to be &orestalle" must
be $rove" b0 su3cient an" convincing evi"ence*
Lrom t%e case itsel&! t%e -ourt conclu"e" t%at t%e bur"en o&
$roo& o& Legen" to $rove t%at t%e "ismissal was &or a vali" or
aut%oriJe" cause was not given b0 Legen"! as it "i" not
submit evi"ence o& t%e losses to its business o$erations an"
t%e economic c%aos it woul" imminentl0 suKer* 2%e
statements regar"ing Realu0os termination "ue to <$resent
businessF)nancial con"ition> were consi"ere" as insu3cient
to s%ow a vali" retrenc%ment* As a result! t%e -ourt cannot
allow t%e termination o& Realu0o "ue to retrenc%ment*
Aowever! t%e la$se o& time since t%e retrenc%ment ma0 %ave
ma"e a return to t%e #ob as un&easible! t%ere&ore t%e -ourt
or"ere" Legen" to $a0 se$aration $a0 at t%e rate o& 1 mont%
$a0 &or ever0 0ear o& service ren"ere"! as well as &ull
bacwages*
;avi#' v. Fl* A(# C)'+.
-ebruary 17% 2012
Ponente: (endo8a% #.
5igested by: #( Arci!!a
10
SUMMARY:
Havier )le" a case &or illegal "ismissal against Ll0 Ace be&ore
t%e BLR-! alleging t%at %e was a regular em$lo0ee woring
as a steve"oreFpahinante w%en %e was terminate" wit%out
notice* Ll0 Ace "enie" t%at Havier was its em$lo0ee because
%e was onl0 contracte" on a <$a0aw> basis*
DOCTRINE:
+e&ore a case &or illegal "ismissal can $ros$er! an em$lo0er/
em$lo0ee relations%i$ must )rst be establis%e" b0 t%e
$etitioner b0 substantial evi"ence*
2%e bur"en lies on t%e $etitioner to $ass t%e well/settle"
tests to "etermine t%e e5istence o& an em$lo0er/em$lo0ee
relations%i$! viJ7 '1( t%e selection an" engagement o& t%e
em$lo0ee8 '2( t%e $a0ment o& wages8 '9( t%e $ower o&
"ismissal8 an" '4( t%e $ower to control t%e em$lo0ees
con"uct* 4& t%ese elements! t%e most im$ortant criterion is
w%et%er t%e em$lo0er controls or %as reserve" t%e rig%t to
control t%e em$lo0ee not onl0 as to t%e result o& t%e wor
but also as to t%e means an" met%o"s b0 w%ic% t%e result is
to be accom$lis%e"*
FACTS:
Havier )le" a com$laint be&ore t%e BLR- &or un"er$a0ment o&
salaries an" ot%er labor stan"ar" bene)ts*
Havier allege" t%at7
a( %e was an em$lo0ee o& Ll0 Ace since Se$tember 200N!
$er&orming various tass at t%e res$on"ents ware%ouse
e5ce$t w%en %e woul" be or"ere" to accom$an0 t%e
com$an0s "eliver0 ve%icles! as pahinante8
b( %e re$orte" &or wor &rom =on"a0 to Satur"a0 &rom NA=
to CP=8
c( %e was never issue" an i"enti)cation car" an" $a0sli$s b0
t%e com$an08
"( on =a0 D! 200@! %e re$orte" &or wor but %e was no
longer allowe" to enter t%e com$an0 $remises b0 t%e
securit0 guar" u$on t%e instruction o& Ruben 4ng! %is
su$erior* Ae later &oun" out t%at it was relate" to =r* 4ng
courting %is "aug%ter*
e( t%erea&ter! Havier was terminate" &rom %is em$lo0ment
wit%out notice*
Havier $resente" an a3"avit! subscribe" be&ore t%e labor arbiter!
o& one +engie ValenJuela w%o allege" t%at Havier was a steve"ore
or pahinante o& Ll0 Ace &rom Se$tember 200N to Hanuar0 200@*
Ll0 Ace averre" t%at
a( it was engage" in t%e business o& im$ortation an" sales o&
groceries*
b( 6n December 200N! Havier was contracte" em$lo0ee =r*
4ng! as e5tra %el$er on a pakyaw basis at an agree" rate
$er tri$*
c( =r* 4ng contracte" Havier roug%l0 C to D times onl0 in a
mont% w%enever t%e ve%icle o& its contracte" %auler!
=ilmar Aauling Services! was not available* 4n A$ril 90!
200@! Ll0 Ace no longer nee"e" t%e services o& Havier*
Ll0 Ace "enie" t%at Havier was its em$lo0ee an" insiste" t%at
t%ere was no illegal "ismissal* 6t submitte" a co$0 o& its
agreement wit% =ilmar Aauling Services an" co$ies o&
acnowle"gment recei$ts evi"encing $a0ment to Havier &or %is
contracte" services bearing t%e wor"s! <"ail0 man$ower
'pakyawF$iece rate $a0(> an" t%e latters signaturesFinitials*
2%e LA "ismisse" t%e com$laint an" sai" t%at Havier &aile" to
$resent $roo& '6D! "ocument o& %is recei$t o& bene)ts accor"e" to
regular em$lo0ees( t%at %e was a regular em$lo0ee o& Ll0 Ace!
an" t%at since t%ere is a regular %auler to "eliver Ll0 Aces
$ro"ucts! more weig%t was given to t%e claim t%at Havier was
contracte" on <$a0aw> basis*
11
2%e BLR- rule" &or Havier an" sai" t%at a $a0aw/basis
arrangement "i" not $reclu"e t%e e5istence o& em$lo0er/
em$lo0ee relations%i$! an" t%at Havier was a regular em$lo0ee o&
Ll0 Ace because t%ere was reasonable connection between t%e
$articular activit0 %e $er&orme" as a pahinante in relation to t%e
usual business or tra"e o& t%e em$lo0er*
-A annulle" t%e BLR- ruling an" sai" t%at it is incumbent u$on
Havier to $rove t%e em$lo0ee/em$lo0er relations%i$ b0
substantial evi"ence! but %e &aile" to "isc%arge %is bur"en* 2%e
non/issuance o& a com$an0/issue" i"enti)cation car" to Havier
su$$orts Ll0 Aces contention t%at Havier was not its em$lo0ee*
ISSUES/HELD:
4* ,4B Havier was a regular em$lo0ee o& Ll0 Ace* B4*
RATIO:
+e&ore a case &or illegal "ismissal can $ros$er! an
em$lo0er/em$lo0ee relations%i$ must )rst be establis%e"* 2%e
$etitioner nee"s to s%ow b0 substantial evi"ence t%at %e was
in"ee" an em$lo0ee o& t%e com$an0 against w%ic% %e claims
illegal "ismissal* P,%oever claims entitlement to t%e bene)ts
$rovi"e" b0 law s%oul" establis% %is or %er rig%t t%eretoP* Havier
&aile" to a""uce substantial evi"ence as basis &or t%e grant o&
relie&*
All t%at Havier $resente" were %is sel&/serving statements
$ur$orte"l0 s%owing %is activities as an em$lo0ee o& Ll0 Ace*
-learl0! Havier &aile" to $ass t%e substantialit0 reIuirement to
su$$ort %is claim*
2%e lone a3"avit e5ecute" b0 one +engie ValenJuela was
unsuccess&ul in strengt%ening Haviers claim t%at %e was a regular
em$lo0ee* 6n sai" "ocument! all ValenJuela atteste" to was t%at
%e woul" &reIuentl0 see Havier at t%e wor$lace w%ere t%e latter
was also %ire" as steve"ore*
2%e -ourt is o& t%e consi"erable view t%at on Havier lies
t%e bur"en to $ass t%e well/settle" tests to "etermine t%e
e5istence o& an em$lo0er/em$lo0ee relations%i$! viJ7 '1( t%e
selection an" engagement o& t%e em$lo0ee8 '2( t%e $a0ment o&
wages8 '9( t%e $ower o& "ismissal8 an" '4( t%e $ower to control
t%e em$lo0ees con"uct* 4& t%ese elements! t%e most im$ortant
criterion is w%et%er t%e em$lo0er controls or %as reserve" t%e
rig%t to control t%e em$lo0ee not onl0 as to t%e result o& t%e wor
but also as to t%e means an" met%o"s b0 w%ic% t%e result is to
be accom$lis%e"*
Havier coul" not submit com$etent $roo& t%at Ll0 Ace engage" %is
services as a regular em$lo0ee8 t%at Ll0 Ace $ai" %is wages as an
em$lo0ee! or t%at Ll0 Ace coul" "ictate w%at %is con"uct s%oul"
be w%ile at wor* 6n ot%er wor"s! Haviers allegations "i" not
establis% t%at %is relations%i$ wit% Ll0 Ace %a" t%e attributes o&
an em$lo0er/em$lo0ee relations%i$ on t%e basis o& t%e above/
mentione" &our/&ol" test* All t%at Havier lai" "own were bare
allegations wit%out corroborative $roo&*
Ll0 Ace "oes not "is$ute %aving contracte" Havier an" $ai"
%im on a P$er tri$P rate as a steve"ore! albeit on a pakyaw basis*
2%e -ourt cannot &ail to note t%at Ll0 Ace $resente" "ocumentar0
$roo& t%at Havier was in"ee" $ai" on a pakyaw basis $er t%e
acnowle"gment recei$ts a"mitte" as com$etent evi"ence b0
t%e LA* En&ortunatel0 &or Havier! %is mere "enial o& t%e signatures
a35e" t%erein cannot automaticall0 swa0 us to ignore t%e
"ocuments because P&orger0 cannot be $resume" an" must be
$rove" b0 clear! $ositive an" convincing evi"ence an" t%e
bur"en o& $roo& lies on t%e $art0 alleging &orger0*P
ABEE MININC CO. v. NLRC
22 Apri! 1&&1
#ustice 3ancayco
Lindain
12
SUMMARY: Sinclitica -an"i"o was em$lo0e" b0 A$e5 =ining
-om$an0 to $er&orm laun"r0 services at its staK %ouse* 4n
December 1@! 1?@N! w%ile s%e was atten"ing to %er assigne" tas
an" s%e was %anging %er laun"r0! s%e acci"entall0 sli$$e" an" %it
%er bac on a stone* -an"i"os imme"iate su$ervisor oKere" %er
C!000 $esos to Iuit %er #ob! but s%e re&use" t%e oKer* S%e was
subseIuentl0 "ismisse"* -an"i"o )le" a reIuest &or assistance wit%
t%e D4L.* 2%e Su$reme -ourt sai" t%at -an"i"o is not a <%ouse
%el$er> or <"omestic servant> un"er Rule R666! Section 1 'b(! +oo 9
o& t%e Labor -o"e* S%e was an em$lo0ee o& t%e com$an0 entitle"
to t%e $rivileges o& a regular em$lo0ee*
DOCTRINE: 2%e criteria is t%e $ersonal com&ort an" en#o0ment o&
t%e &amil0 o& t%e em$lo0er in t%e %ome o& sai" em$lo0er* ,%ile it
ma0 be true t%at t%e nature o& t%e wor o& a %ouse%el$er! "omestic
servant or laun"r0woman in a %ome or in a com$an0 staK%ouse
ma0 be similar in nature! t%e "iKerence in t%eir circumstances is
t%at in t%e &ormer instance t%e0 are actuall0 serving t%e &amil0
w%ile in t%e latter case! w%et%er it is a cor$oration or a single
$ro$rietors%i$ engage" in business or in"ustr0 or an0 ot%er
agricultural or similar $ursuit! service is being ren"ere" in t%e
staK%ouses or wit%in t%e $remises o& t%e business o& t%e em$lo0er*
6n suc% instance! t%e0 are em$lo0ees o& t%e com$an0 or em$lo0er
in t%e business concerne" entitle" to t%e $rivileges o& a regular
em$lo0ee*
FACTS:
Sinclitica -an"i"o '-ABD6D4( was em$lo0e" '=a0 1?N9(
b0 A$e5 =ining -om$an0 to $er&orm laun"r0 services at A$e5s
staK %ouse locate" at =asara! Davao Del Borte* 6n t%e beginning!
s%e was $ai" on a $iece rate basis* SubseIuentl0! s%e was $ai"
on a mont%l0 basis*
4n December 1?@N! w%ile s%e was %anging %er laun"r0!
s%e acci"entall0 sli$$e" an" %it %er bac on a stone* S%e
re$orte" t%e inci"ent to %er imme"iate su$ervisor an" to t%e
$ersonnel o3cer* -ABD6D4 was $ermitte" to go on leave &or
me"ication* 2%e 6mme"iate su$ervisor oKere" -ABD6D4 C!000
$esos to $ersua"e %er to Iuit %er #ob* -ABD6D4 re&use" t%e oKer*
A$e5 =ining "i" not allow %er to return to wor* S%e was
"ismisse" in Lebruar0 1?@@* -ABD6D4 )le" a reIuest &or
assistance wit% D4L.* 2%e labor arbiter 'LA( reIuire" t%e two
$arties to submit a $osition $a$er*
LA DECISION: Rule" in &avor o& -ABD6D4* 'Ase" A$e5 to $a0
salar0 "iKerential! emergenc0 living allowance! 19
t%
mont% $a0
"iKerential! se$aration $a0 one mont% &or ever0 0ear o& service
&rom 1?N9 to 1?@@*(
NLRC DECISION: A3rme" LA ruling*

ISSUE: 6s t%e %ouse%el$er in t%e staK %ouses o& an in"ustrial
com$an0 a "omestic %el$er or a regular em$lo0ee o& t%e sai"
)rmG 193:LA1 9(PL;<99
RATIO:
1* 2%e "e)nition un"er Rule R666! Section 1'b(! +oo 9
9
o& t%e
Labor -o"e "oes not inclu"e %ouse%el$ or laun"r0women
woring in staK%ouses o& a com$an0! lie -ABD6D4 w%o atten"s
to t%e nee"s o& t%e com$an0s guests* Also! t%e "e)nition! b0 t%e
same toen! "oes not inclu"e t%e "river! %ousebo0! or gar"ener
e5clusivel0 woring in t%e com$an0! t%e staK%ouses an" its
$remises*
2%e sai" "e)nition contem$lates suc% %ouse%el$er or
"omestic servant w%o is em$lo0e" in t%e em$lo0ers %ouse to
minister e5clusivel0 to t%e $ersonal com&ort an" en#o0ment o&
t%e em$lo0ers &amil0*
9 2%e term P%ouse%el$erP as use" %erein is s0non0mous to t%e term P"omestic
servantP an" s%all re&er to an0 $erson! w%et%er male or &emale! w%o ren"ers
services in an" about t%e em$lo0erOs %ome an" w%ic% services are usuall0
necessar0 or "esirable &or t%e maintenance an" en#o0ment t%ereo&! an" ministers
e5clusivel0 to t%e $ersonal com&ort an" en#o0ment o& t%e em$lo0erOs &amil0*
19
2%e criterion is t%e $ersonal com&ort an" en#o0ment o& t%e
&amil0 o& t%e em$lo0er in t%e %ome o& sai" em$lo0er* ,%ile it
ma0 be true t%at t%e nature o& t%e wor o& a %ouse%el$er!
"omestic servant or laun"r0woman in a %ome or in a com$an0
staK%ouse ma0 be similar in nature! t%e "iKerence in t%eir
circumstances is t%at in t%e &ormer instance t%e0 are actuall0
serving t%e &amil0 w%ile in t%e latter case! w%et%er it is a
cor$oration or a single $ro$rietors%i$ engage" in business or
in"ustr0! service is being ren"ere" in t%e staK%ouses or wit%in
t%e $remises o& t%e business o& t%e em$lo0er* 6n suc% instance!
t%e0 are em$lo0ees o& t%e com$an0 or em$lo0er in t%e business
concerne" entitle" to t%e $rivileges o& a regular em$lo0ee*
2* 2%e mere &act t%at t%e %ouse%el$er or "omestic servant is
woring wit%in t%e $remises o& t%e business o& t%e em$lo0er an"
in relation to or in connection wit% its business! as in its
staK%ouses &or its guest! warrants t%e conclusion t%at suc%
%ouse%el$er or "omestic servant is an" s%oul" be consi"ere" as
a regular em$lo0ee o& t%e em$lo0er an" not as a mere &amil0
%ouse%el$er or "omestic servant as contem$late" in Rule R666!
Section l'b(! +oo 9 o& t%e Labor -o"e! as amen"e"*
RULINC: ,A.R.L4R.! t%e $etition is D6S=6SS.D an" t%e
a$$eale" "ecision an" resolution o& $ublic res$on"ent BLR- are
%ereb0 ALL6R=.D* Bo $ronouncement as to costs*
R#ing!)n Indus!'ial Sal#s
C)'+)'a!i)n v E'linda
Cas!aF#da
.o+eber 20 200'
Ponente: Puno% #.
Leigh 0ia8on
SUMMARY: -asta;e"a allege" t%at s%e was illegall0
"ismisse" as a coo* Remington allege" t%at s%e was not a
regular em$lo0ee7 s%e onl0 cooe" meals &or t%e ot%er
em$lo0ees! an" s%e was actuall0 t%e "omestic %el$er o&
Antonio 2an 'managing "irector(* S- rule" t%at s%e was an
em$lo0ee w%o was illegall0 "ismisse"* 2%at s%e wors
wit%in com$an0 $remises! an" t%at s%e "oes not cater
e5clusivel0 to t%e $ersonal com&ort o& 2an! is reWective o&
t%e e5istence o& t%e Remingtons rig%t o& control over %er
&unctions! w%ic% is t%e $rimar0 in"icator o& t%e e5istence o&
an em$lo0er/em$lo0ee relations%i$*
DOCTRINE: 2%e mere &act t%at t%e %ouse%el$er or
"omestic servant is woring wit%in t%e $remises o& t%e
business o& t%e em$lo0er an" in relation to or in connection
wit% its business! as in its staK%ouses &or its guest or even
&or its o3cers an" em$lo0ees! warrants t%e conclusion t%at
suc% %ouse%el$er or "omestic servant is a regular
em$lo0ee o& t%e em$lo0er an" not as a mere &amil0
%ouse%el$er or "omestic servant*
FACTS:
- -asta;e"a institute" a com$laint &or illegal "ismissal $lus
several monetar0 claims against Remington! a com$an0
engage" in business o& tra"ing in construction materials* 2%e
com$laint im$lea"e" Antonio 2an in %is ca$acit0 as =anaging
Director o& Remington* S%e allege" t%at7
o S%e starte" woring in August 1?@9 as com$an0 coo wit%
a P4!000 salar0
o S%e wore" D "a0s a wee! starting at D700am until
C790$m or later
o 4n Hanuar0 1C 1??@ s%e re$orte" &or wor at t%e new site
w%ere Remington relocate" in -aloocan -it0! onl0 to be
in&orme" t%at %er services were no longer nee"e"*
- Remington "enie" t%at it illegall0 "ismisse" -asta;e"a!
alleging t%at
14
o S%e was a "omestic %el$er an" not a regular em$lo0ee*
S%e wore" as a coo! w%ic% %as not%ing to "o wit%
Remingtons business
o Aer "ut0 was merel0 to coo lunc% an" merien"a! a&ter
w%ic% %er time was %ers to s$en"
o Remington "i" not e5ercise an0 "egree o& control an"
su$ervision over %er wor
o S%e was t%e one w%o re&use" to re$ort &or wor w%en
Remington move" to -aloocan
- Labor Arbiter7 "ismisse" com$laint* -asta;e"a was a
"omestic %el$er un"er t%e $ersonal service o& Antonio 2an*
Aer wor was not usuall0 necessar0 an" "esirable in t%e
or"inar0 course o& tra"e an" business o& Remington! an" t%e
latter "i" not e5ercise control over %er &unctions* Also! it was
s%e w%o re&use" to go to -aloocan w%en Remington
trans&erre" o3ces8 t%ere&ore! s%e coul" not %ave been
illegall0 "ismisse"*
- BLR-7 reverse" LA "ecision* -asta;e"a was an em$lo0ee7 %er
wor as coo inure" not &or t%e bene)t o& 2ans &amil0! but
solel0 &or t%e Remington em$lo0ees*
o Aer em$lo0ment is bolstere" b0 a certi)cation issue" b0
t%e cor$orate secretar0! certi&0ing t%at s%e is t%eir
bona)"e em$lo0ee*
o As to t%e illegal "ismissal7 -asta;e"as re&usal to #oin t%e
wor&orce "ue to $oor e0esig%t coul" not be consi"ere"
aban"onment o& wor or voluntar0 resignation*
o En"er Art* 2@N o& t%e Labor -o"e! an em$lo0ee w%o
reac%es t%e age o& D0 %as t%e o$tion to retire or to
se$arate &rom t%e service wit% $a0ment o& se$aration
$a0Fretirement bene)t* ,%en -asta;e"a )le" t%e
com$laint! s%e was alrea"0 D0 0ears ol"* S%e is t%us
entitle" to be $ai" %er se$aration $a0Fretirement bene)t
eIuivalent to 1F2 mont% &or ever0 0ear o& service*
o 4r"ere" t%e $a0ment o&7 Salar0 "iKerential / P12!021*12*
Service 6ncentive Leave Pa0 / 2!DC0*00* 19t% =ont% Pa0
"iKerential / 1!001*ND Se$aration Pa0Fretirement bene)t /
9D!0NC*00 '2otal PC1!N4N*@@(
- +ot% $arties )le" =R* -asta;e"as was grante"! an" t%e
awar" o& retirement $a0 was increase"! to PD2!49N*C0*
Remington )le" Petition &or -ertiorari! w%ic% t%e -A
"ismisse"* Remington )le" $etition &or review*
ISSUES/HELD: 'not inclu"ing $roce"ural issues(
,4B -asta;e"a is Remingtons regular em$lo0ee7 R.MELAR
.=PL4S..
,4B -asta;e"a was illegall0 "ismisse"7 6LL.MALLS D6S=6SS.D
RATIO:
L6RS2 6SSE.7
Remington conten"s t%at -asta;e"a is Antonio 2ans "omestic
%el$er an" not a regular em$lo0ee o& t%e com$an08 t%at it "i" not
e5ercise control an" su$ervision over %er &unctions8 an" t%at
-asta;e"as wor as a coo was not necessar0 or "esirable in its
usual line o& business* 2%e S- re#ecte" t%is! citing A$e5 =ining
-om$an0 6nc* v BLR-7
En"er Rule R666! Section 1'b(! +oo 9 o& t%e Labor -o"e! as amen"e"! t%e
terms P%ouse%el$erP or P"omestic servantP are "e)ne" as &ollows7
2%e term 1%ouse%el$er is s0non0mous to 1"omestic servant an" s%all
re&er to an0 $erson w%o ren"ers services in an" about t%e em$lo0ers
%ome an" w%ic% services are usuall0 necessar0 or "esirable &or t%e
maintenance an" en#o0ment t%ereo&! an" ministers e5clusivel0 to t%e
$ersonal com&ort an" en#o0ment o& t%e em$lo0ers &amil0*
5 5 5 5 5 5 5 5 5
2%e criteria is t%e $ersonal com&ort an" en#o0ment o& t%e &amil0 o& t%e
em$lo0er in t%e %ome o& sai" em$lo0er* ,%ile it ma0 be true t%at t%e
nature o& t%e wor o& a %ouse%el$er! "omestic servant or laun"r0woman
in a %ome or in a com$an0 staK%ouse ma0 be similar in nature! t%e
"iKerence is t%at in t%e &ormer! t%e0 are actuall0 serving t%e &amil0!
w%ile in t%e latter! w%et%er it is a cor$oration or a single $ro$rietors%i$!
service is being ren"ere" in t%e staK%ouses or wit%in t%e $remises o& t%e
business o& t%e em$lo0er* 6n suc% instance! t%e0 are em$lo0ees o& t%e
1C
com$an0 or em$lo0er in t%e business concerne" entitle" to t%e
$rivileges o& a regular em$lo0ee*
2%e mere &act t%at t%e %ouse%el$er or "omestic servant is woring
wit%in t%e $remises o& t%e business o& t%e em$lo0er an" in relation to or
in connection wit% its business! as in its staK%ouses &or its guest or even
&or its o3cers an" em$lo0ees! warrants t%e conclusion t%at suc%
%ouse%el$er or "omestic servant is an" s%oul" be consi"ere" as a
regular em$lo0ee o& t%e em$lo0er an" not as a mere &amil0 %ouse%el$er
or "omestic servant as contem$late" in Rule R666! Section 1'b(! +oo 9 o&
t%e Labor -o"e! as amen"e"*
2%e situs an" nature o& -asta;e"as wor as a coo! w%o caters
to t%e nee"s o& Remingtons em$lo0ees! maes %er &all sIuarel0
wit%in t%e "e)nition o& a regular em$lo0ee un"er t%e "octrine in
t%e A$e5 =ining case* 2%at s%e wors wit%in com$an0 $remises!
an" t%at s%e "oes not cater e5clusivel0 to t%e $ersonal com&ort o&
2an an" %is &amil0! is reWective o& t%e e5istence o& Remingtons
rig%t o& control over %er &unctions! w%ic% is t%e $rimar0 in"icator
o& t%e e5istence o& an em$lo0er/em$lo0ee relations%i$*
6t is also wrong to sa0 t%at i& t%e wor is not "irectl0 relate" to
t%e em$lo0erOs business! t%en t%e $erson $er&orming suc% wor
coul" not be consi"ere" an em$lo0ee o& t%e latter* 2%e
"etermination o& t%e e5istence o& an em$lo0er/em$lo0ee
relations%i$ is "e)ne" b0 law accor"ing to t%e &acts o& eac% case!
regar"less o& t%e nature o& t%e activities involve"* 6t woul" be
un#ust i& we were to %ol" t%at "es$ite t%e &act t%at -asta;e"a
was ma"e to coo &or t%e Remington em$lo0ees! s%e was merel0
a "omestic worer o& 2an*
S.-4BD 6SSE.
Remington conten"s t%at t%ere was aban"onment w%en
-asta;e"a re&use" to re$ort &or wor w%en t%e0 trans&erre" to
-aloocan! claiming t%at %er $oor e0esig%t woul" mae long
"istance travel a $roblem8 t%us! it cannot be %el" guilt0 o& illegal
"ismissal* 2%e S- also re#ecte" t%is*
A regular em$lo0ee en#o0s t%e rig%t to securit0 o& tenure un"er
Article 2N? an" ma0 onl0 be "ismisse" &or a #ust or aut%oriJe"
cause! ot%erwise t%e "ismissal becomes illegal an" t%e em$lo0ee
becomes entitle" to reinstatement an" &ull bacwages*
Aban"onment is a #ust cause &or termination o& em$lo0ment b0
t%e em$lo0er un"er Article 2@2* 2wo &actors s%oul" be $resent7 1(
t%e &ailure to re$ort &or wor or absence wit%out vali" or
#usti)able reason8 an" 2( a clear intention to sever em$lo0er/
em$lo0ee relations%i$! mani&este" b0 overt acts &rom w%ic% it
ma0 be "e"uce" t%at t%e em$lo0ee %as no more intention to
wor* 2%e intent to "iscontinue t%e em$lo0ment must be s%own
b0 clear $roo& t%at it was "eliberate an" un#usti)e"! w%ic%
Remington &aile" to "o* 6n termination cases! t%e bur"en o& $roo&
rests u$on t%e em$lo0er to s%ow t%at t%e "ismissal is &or a #ust
an" vali" cause* "oubt e5ists between t%e evi"ence $resente" b0
t%e em$lo0er an" t%e em$lo0ee! t%e scales o& #ustice must be
tilte" in &avor o& t%e latter*
Petition "enie"*
San Migu#l :'#3#'* Sal#s
F)'(# Uni)n <BTC/O= v. O+l#
-ebruary $ %1&$&
Ponente: 3ri=o>A?uino% ##.
A! (ohaadsa!i
SUMMARY:
S=- im$lemente" a new "istribution s0stem w%ere its beer
$ro"ucts were sol" to w%olesalers "irectl0 &rom t%e sales
o3ces* 2%e labor union conteste" t%is on t%e groun" t%at it
aKects t%e tae/%ome $a0 o& salesmen an" t%eir truc
%el$ers* =4L. "ismisse" t%e com$laint* S- a3rmes =4L.*
DOCTRINE:
=anagement $rerogatives are vali" w%en t%e0 e5ercise" in
goo" &ait% &or t%e a"vancement o& t%e em$lo0erOs interest
an" not &or t%e $ur$ose o& "e&eating or circumventing t%e
rig%ts o& t%e em$lo0ees un"er s$ecial laws or un"er vali"
1D
agreements*
FACTS:
San =iguel -or$oration 'S=-( an" San =iguel +rewer0
Sales Lorce Enion 'Enion( %a" an e5isting -+A 'eKective
=a0 1! 1?N@ until Hanuar0 91! 1?@1( w%ere t%is clause is
incor$orate"7 <Art* 6V! Section 1* .m$lo0ees wit%in t%e
a$$ro$riate bargaining unit s%all be entitle" to a basic
mont%l0 com$ensation $lus commission base" on t%eir
res$ective sales*>
6n Se$tember 1?N?! t%e com$an0 intro"uce" a mareting
sc%eme nown as t%e P-om$lementar0 Distribution
S0stemP '-DS( w%ereb0 its beer $ro"ucts were oKere" &or
sale "irectl0 to w%olesalers t%roug% San =iguelOs sales
o3ces*
2%e Enion )le" a com$laint &or ELP in t%e =inistr0 o&
Labor! wit% a notice o& strie! on t%e groun" t%at t%e -DS
was contrar0 to t%e e5isting mareting sc%eme w%ereb0
t%e Route Salesmen were assigne" s$eci)c territories
wit%in w%ic% to sell t%eir stocs o& beer! an" w%olesalers
%a" to bu0 beer $ro"ucts &rom t%em! not &rom t%e
com$an0* 2%e0 argue t%at -DS violates t%e -+A because
t%e intro"uction o& t%e -DS woul" re"uce t%e tae/%ome
$a0 o& t%e salesmen an" t%eir truc %el$ers! as t%e
com$an0 woul" be com$eting wit% t%em*
=4L. "ismisse" t%e com$laint wit% notice o& strie* Ae
sai" t%at S=-s actions were $art o& its overall $lan to
im$rove e3cienc0 an" econom0 an" at t%e same time
gain $ro)t to t%e %ig%est* 2%is was not to "iscourage
union organiJation or "iminis% its inWuence*
Aence! t%e $etitioners recourse to t%e S-*
ISSUES/HELD:
,4B S=-s -DS mareting sc%eme violates t%e -+AG Bo*
RATIO:
6t is not a violation o& t%e -+A because it is a vali"
e5ercise o& management $rerogatives*
.5ce$t as limite" b0 s$ecial laws! an em$lo0er is &ree to
regulate! accor"ing to %is own "iscretion an" #u"gment! all
as$ects o& em$lo0ment! inclu"ing %iring! wor
assignments! woring met%o"s! time! $lace an" manner
o& wor! tools to be use"! $rocesses to be &ollowe"!
su$ervision o& worers! woring regulations! trans&er o&
em$lo0ees! wor su$ervision! la0/oK o& worers an" t%e
"isci$line! "ismissal an" recall o& wor*
.ven as t%e law is solicitous o& t%e wel&are o& t%e
em$lo0ees! it must also $rotect t%e rig%t o& an em$lo0er
to e5ercise w%at are clearl0 management $rerogatives*
2%e &ree will o& management to con"uct its own business
aKairs to ac%ieve its $ur$ose cannot be "enie"*
So long as a com$an0Os management $rerogatives are
e5ercise" in goo" &ait% &or t%e a"vancement o& t%e
em$lo0erOs interest an" not &or t%e $ur$ose o& "e&eating
or circumventing t%e rig%ts o& t%e em$lo0ees un"er
s$ecial laws or un"er vali" agreements! t%e0 will be
u$%el"*
S=-s oKer to com$ensate t%e members o& its sales &orce
w%o will be a"versel0 aKecte" b0 t%e im$lementation o&
t%e -DS b0 $a0ing t%em a so/calle" Pbac a"#ustment
commissionP to mae u$ &or t%e commissions t%e0 mig%t
1N
lose as a result o& t%e -DS $roves t%e com$an0Os goo"
&ait% an" lac o& intention to bust t%eir union*
Si# Da'4* Bili+inas v NLRC
and Si# Da'4* Sala'i#d
E+l)*##s Ass)(ia!i)n <ALU-
TUCB=
Apri! 17% 1&&$
Ponente: 2e!!osi!!o% #.
@itty
SUMMARY: Sime Darb0 issue" a memoran"um w%ic%
c%ange" t%e wor sc%e"ule o& its em$lo0ees an" eliminate"
t%eir $ai" <on call> lunc% brea* 2%e union )le" a case &or
ELP! "iscrimination! an" evasion o& liabilit0* LA "ismisse"*
BLR- reverse"* S- rule" in &avor o& $etitioner! stating t%at
t%e $etitioner was not guilt0 o& committing ELP but was
merel0 e5ercising its management $rerogative*
DOCTRINE: =anagement is &ree to regulate! accor"ing to
its own "iscretion an" #u"gment! all as$ects o& em$lo0ment!
inclu"ing %iring! wor assignments! woring met%o"s! time!
$lace an" manner o& wor! $rocesses to be &ollowe"!
su$ervision o& worers! woring regulations! trans&er o&
em$lo0ees! wor su$ervision! la0 oK o& worers an"
"isci$line! "ismissal an" recall o& worer*
FACTS:
Sime Darb0 Pili$inas! $etitioner! is engage" in t%e
manu&acture o& automotive tires! tubes an" ot%er rubber
$ro"ucts* 2%e res$on"ent! Sime Darb0 Salarie" .m$lo0ees
Association 'ALE/2E-P( is an association o& t%e mont%l0
salarie" em$lo0ees o& t%e $etitioner at its =ariina
&actor0*
Prior to t%e controvers0! t%e worers in t%e &actor0 wore"
&rom N74Cam to 974C$m wit% a 90/minute $ai" <on call>
lunc% brea*
August 14! 1??27 Petitioner issue" a memoran"um
a"vising t%e em$lo0ees t%at e5ce$t &or t%ose in t%e
,are%ouse an" Xualit0 Assurance De$artment! a c%ange
in wor sc%e"ule woul" become eKective on Se$tember
14! 1??2*
o N74Cam to 474C$m8 =on"a0 to Lri"a08 Lunc% brea
12700nn to 9790$m
o N74Cam to 1174C$m8 Satur"a0
o Bo more $ai" <on call> lunc% brea
Res$on"ent )le" a case in be%al& o& its members wit% t%e
Labor Arbiter &or ELP! "iscrimination an" evasion o&
liabilit0 $ursuant to t%e resolution o& t%e S- in Sime Darb0
6nternational 2ire -o* 6nc* v BLR-*
LA "ismisse" t%e com$laint on t%e groun" t%at t%e c%ange
in sc%e"ule an" t%e elimination o& t%e $ai" lunc% brea
constitute" a vali" e5ercise o& management $rerogative*
2%e LA also sai" t%e bene)ts grante" to t%e worers "i"
not %ave t%e eKect o& "iminis%ing bene)ts $reviousl0
grante" as t%e woring time remaine" at @ %ours* Ae also
%el" t%at t%e em$lo0ees woul" be un#ustl0 enric%e" i&
t%e0 continue" to be $ai" &or t%eir lunc% brea even
t%oug% t%e0 were no longer <on call*>
Private res$on"ent a$$eale" to t%e BLR- w%ic% sustaine"
t%e LAs "ecision an" "ismisse" t%e a$$eal*
E$on res$on"ents =R! t%e BLR- reverse" its $revious
"ecision* 6t consi"ere" t%e S- "ecision in t%e
a&orementione" Sime Darb0 case o& 1??0 as t%e law o&
t%e case w%erein t%e $etitioner was or"ere" to $a0 <t%e
mone0 value o& t%ese covere" em$lo0ees "e$rive" o&
lunc% an"For woring time breas*>
1@
Petitioner went u$ to t%e S- alleging t%at t%e $ublic
res$on"ent committe" grave abuse o& "iscretion
amounting to lac or e5cess o& #uris"iction*
SolMen )le"! in lieu o& comment! a mani&estation an"
motion recommen"ing t%at t%e $etition be grante"!
alleging t%at t%e August 14 memo was not "iscriminator0
o& t%e union members! nor "i" it constitute ELP on t%e
$art o& t%e $etitioner*
ISSUES/HELD:
C* Di" t%e $etitioner commit un&air labor $racticeG B4*
RATIO:
2%e rig%t to )5 t%e wor sc%e"ules o& t%e em$lo0ees rests
$rinci$all0 on t%eir em$lo0er* 6n t%is case! t%e em$lo0er
cite" as reason &or t%e a"#ustment t%e e3cient con"uct o&
its business o$erations an" its im$rove" $ro"uction* Since
t%e em$lo0ees are no longer reIuire" to wor "uring t%is
new one/%our lunc% brea! t%ere is no more nee" &or t%em
to be com$ensate" &or t%is $erio"* S- agree" wit% LA t%at
t%e new wor sc%e"ule &ull0 com$lie" wit% t%e "ail0 wor
$erio" o& @ %ours wit%out violating t%e Labor -o"e*
o Also! t%e new sc%e"ule a$$lie" to all em$lo0ees in
t%e &actor0 an" not #ust union members*
As s%own b0 t%e recor"s! t%e c%ange
eKecte" b0 management wit% regar" to
woring time is ma"e to a$$l0 to all &actor0
em$lo0ees engage" in t%e same line o&
wor! w%et%er or not t%e0 are members o&
t%e res$on"ent union* 2%ere is no $re#u"ice
to t%e rig%t o& sel&/organiJation*
2%e ruling in t%e earlier Sime Darb0 case is not a$$licable
%ere as t%e issue t%ere involve" t%e matter o& granting
lunc% breas to certain em$lo0ees w%ile "e$riving ot%ers
o& t%e same brea*
.ver0 business enter$rise en"eavors to increase its
$ro)ts* 6n t%e $rocess! it ma0 "evise means to attain t%at
goal* .ven as t%e law is solicitous o& t%e wel&are o& t%e
em$lo0ees! it must also $rotect t%e rig%t o& an em$lo0er
to e5ercise w%at are clearl0 management $rerogatives*
o =anagement is &ree to regulate! accor"ing to its
own "iscretion an" #u"gment! all as$ects o&
em$lo0ment! inclu"ing %iring! wor assignments!
woring met%o"s! time! $lace an" manner o& wor!
$rocesses to be &ollowe"! su$ervision o& worers!
woring regulations! trans&er o& em$lo0ees! wor
su$ervision! la0 oK o& worers an" "isci$line!
"ismissal an" recall o& worers* =anagement
retains t%e $rerogative! w%enever e5igencies o& t%e
service so reIuire! to c%ange t%e woring %ours o&
its em$lo0ees*
In!#'+"il E+l)*##s Uni)n
vs. In!#'+"il La4)'a!)'i#s
5ec. 1&% 2001
Ponente: @apunan% #.
Ange!o Aantua
1?
SUMMARY:
.m$lo0ees wor sto$$age a&ter t%e com$an0s re&usal to
"iscuss t%e $erio" o& t%e new -+A* 2%e0 allege" t%at t%ere
was no illegal strie as t%e0 sto$$e" woring a&ter
ren"ering wor &or @ %ours! w%ic% was t%e state" wor
sc%e"ule in t%e -+A* 2%e S- rule" t%at t%e long stan"ing
12/%r s%i&t %as eKectivel0 c%ange" t%e -+As $rovision on
wor sc%e"ule*
DOCTRINE:
2%e woring %ours 'even i& state" in t%e -+A( ma0 be
c%ange" b0 management $rerogative* 2%e com$an0
im$lemente" t%e 12/%r s%i&t "ue to t%e nature o& t%e
business an" "eman"s o& t%e clients* 2%e uneIuivocal
a"%erence to t%is b0 t%e em$lo0ees is "eeme" as waiver o&
t%e @/%r s%i&t*
FACTS:
6L.E/LL, is t%e sole an" e5clusive bargaining agent o& t%e ran/
an"/)le em$lo0ees o& t%e $%armaceutical com$an0* =ont%s
be&ore t%e e5$iration o& t%e -+A! 2 union o3cers met wit% t%e
VP/ARD regar"ing maing t%e new -+A eKective &or 2 0ears but
were "enie"*
2%e ne5t "a0! t%e em$lo0ees sto$$e" woring! leaving t%e
containers an" raw materials unseale"* 2%e Dam/D$m worers
le&t at 2$m w%ile t%e D$m/Dam worers le&t at 2am* A&ter tol" to
wait &or t%e &ormal negotiations! t%e0 continue" t%e overtime
bo0cott an" even engage" in wor slow"own*
-om$an0 )le" a case wit% BLR- illegal strie* Preventive
me"iation at B-=+ &aile"* Enion )le" notice o& strie* D4L. Sec
issue" an assum$tion or"er R2, or"er to worers w%ile t%e
com$an0 will acce$t all striing worers* D4L. Secs )n"ing!
a"o$ting t%e LAs "ecision t%ere was illegal strie* =R "enie"*
-ertiorari an" =R wit% -A "enie"* Petition &or review on certiorari
wit% t%e S-*

ISSUES/HELD:
1* ,4B t%e -A an" D4L. Sec committe" erre" in
"isregar"ing t%e $arol evi"ence rule in t%e evaluation o&
evi"ence*
RATIO:
2%e union sai" t%at t%e -A an" LA "isregar"e" t%e $arole vi"ence
rule w%en t%e0 u$%el" t%e com$an0s allegation t%at t%e wor
sc%e"ule was Dam/D$m an" D$m/Dam* 2%e -A an" LA s%oul" not
%ave a"mitte" an0 evi"ence contrar0 to w%at t%e -+A states!
Section 1* Regular ,oring Aours : A normal wor"a0 s%all
consist o& not more t%an eig%t '@( %ours* 2%e regular woring
%ours &or t%e -om$an0 s%all be &rom N790 A*=* to 4790 P*=* 2%e
sc%e"ule o& s%i&t wor s%all be maintaine"8 %owever t%e com$an0
ma0 c%ange t%e $revailing wor time at its "iscretion! s%oul"
suc% c%ange be necessar0 in t%e o$erations o& t%e -om$an0* All
em$lo0ees s%all observe suc% rules as %ave been lai" "own b0
t%e com$an0 &or t%e $ur$ose o& eKecting control over woring
%ours*
S- / 2%e reliance on t%e $arol evi"ence rule is mis$lace"* 6n labor
cases be&ore t%e BLR- or LA! t%e rules o& evi"ence $revailing in
courts o& law or eIuit0 are not controlling* Rules o& $roce"ure an"
evi"ence are not a$$lie" in a ver0 rigi" an" tec%nical sense in
labor cases* Aence! t%e LA is not $reclu"e" &rom acce$ting an"
evaluating evi"ence ot%er t%an! an" even contrar0 to! w%at is
state" in t%e -+A*
=oreover! t%e latter $art o& Sec*1 states t%at t%e woring %ours
ma0 be c%ange" at t%e "iscretion o& t%e com$an0 i& it is
necessar0 &or its o$erations* 2%e 24/%r "ail0 wor sc%e"ule! in
$lace since 1?@@! is in $lace "ue to t%e nature o& t%e business
an" "eman"s o& its clients*
2%e em$lo0ees are "eeme" to %ave waive" t%e @/%r sc%e"ule
since t%e0 &ollowe"! wit%out an0 Iuestion or com$laint! t%e 12/%r
s%i&t be&ore an" "uring t%e eKectivit0 o& t%e -+A* 2%e 12/%r s%i&t
eKectivel0 c%ange" t%e -+As state" woring %ours* As t%e
em$lo0ees assente" b0 $ractice to t%is! t%e0 cannot claim now
t%at t%e overtime bo0cott is #usti)e" because t%e0 were not
oblige" to wor be0on" eig%t %ours*
20
4t%er issues7 2%e D4L. Secs #uris"iction was u$%el" A2D9'g( o&
t%e Labor -o"e* 6llegal strie was committe" b0 t%e union*
A'i(a vs. NLRC
5ate: -ebruary 2$% 1&$&
Ponente: -roesse!% #.
(ara 6.
SUMMARY: ,orers Arica et* al )le a case against
StanP%il-o so t%at t%e latter woul" $a0 &or t%e 90 minute
waiting time t%e0 s$en" at t%e com$an0 $re$aring &or wor*
2%e -ourt cites t%at t%is $ractice o& t%e worers were long
un$ai" b0 custom an" t%e "ecision o& t%e =inistr0 o& Labor
in anot%er case involving t%eir labor union against t%e
com$an0 o$erates as a bar to t%e litigation o& t%is one b0
virtue o& res #u"icata*
DOCTRINE: </ai!ing Ti#=
2%e t%irt0 '90(/minute assembl0 is a "ee$l0/ roote"!
routinar0 $ractice o& t%e em$lo0ees! an" t%e $rocee"ings
atten"ant t%ereto are not in&ecte" wit% com$le5ities as to
"e$rive t%e worers t%e time to atten" to ot%er $ersonal
$ursuits* 2%e0 are not new em$lo0ees as to reIuire t%e
com$an0 to "eliver long brie)ngs regar"ing t%eir res$ective
wor assignments* 2%eir %ouses are situate" rig%t on t%e
area w%ere t%e &arm are locate"! suc% t%at a&ter t%e roll
call! w%ic% "oes not necessaril0 reIuire t%e $ersonal
$resence! t%e0 can go bac to t%eir %ouses to atten" to
some c%ores* 6n s%ort! t%e0 are not sub#ect to t%e absolute
control o& t%e com$an0 "uring t%is $erio"! ot%erwise! t%eir
&ailure to re$ort in t%e assembl0 time woul" #usti&0 t%e
com$an0 to im$ose "isci$linar0 measures* 2%e -+A "oes
not contain an0 $rovision to t%is eKect8 t%e recor" is also
bare o& an0 $roo& on t%is $oint* 2%is! t%ere&ore!
"emonstrates t%e in"ubitable &act t%at t%e t%irt0 '90(/
minute assembl0 time was not $rimaril0 inten"e" &or t%e
interests o& t%e em$lo0er! but ultimatel0 &or t%e em$lo0ees
to in"icate t%eir availabilit0 or non/availabilit0 &or wor
"uring ever0 woring "a0*
FACTS:
Arica et al )le" a case against Stan"ar" P%il Lruits
-or$oration wit% t%e Labor Arbiter to %ave t%e 90 minutes
assembl0 time '&rom C790 /D700a am(b0 t%e worers consi"ere"
as com$ensable on t%e &ollowing groun"s7
1* 6t is a roll call! &ollowe" b0 "istribution o& wor
assignments*
2* 6t is time s$ent &or t%em to accom$lis% t%e Laborers Dail0
Accom$lis%ment Re$ort*
9* 6t is time s$ent b0 worers to get t%e woring materials
&rom t%e stocroom*
4* 6t is t%e time s$ent b0 worers travelling &rom t%e
stocroom wit% t%e tools to get to t%e )el"s*
StanP%il-o on t%e ot%er %an" avers t%at t%e same case
%as alrea"0 been rule" u$on b0 t%e BLR- in t%e case o&
Associate" Labor Enion vs* Stan"ar" Lruit -or$ w%ere t%e
=inister o& Labor %el" 'an" s%oul" be consi"ere" res Budicata(
t%at7
<2%e t%irt0 '90(/minute assembl0 time long
$ractice" an" institutionaliJe" b0 mutual consent o& t%e
$arties un"er Article 6V! Section 9! o& t%e -ollective
+argaining Agreement cannot be consi"ere" as waiting
time wit%in t%e $urview o& Section C! Rule 6! +oo 666 o& t%e
Rules an" Regulations 6m$lementing t%e Labor -o"e*>
Public res$on"ent BLR-! on Hanuar0 90! 1?@N! issue" a
resolution "en0ing &or lac o& merit $etitionersO motion &or
reconsi"eration* Aence t%is $etition &or review on certiorari )le"
on =a0 N! 1?@N*
ISSUES/HELD:
D* ,4B t%e 90 minute assembl0 time long $ractice can be
consi"ere" waiting time or wor time an" t%ere&ore
com$ensableG Bo*
RATIO:
21
1* 6t is clear t%at %erein $etitioners are merel0 reiterating t%e
ver0 same claim w%ic% t%e0 )le" t%roug% t%e ALE an"
w%ic% recor"s s%ow %a" alrea"0 long been consi"ere"
terminate" an" close" b0 t%is -ourt in M*R* Bo* L/4@C10*
2%ere&ore! t%e BLR- can not be &aulte" &or ruling t%at
$etitionersO claim is alrea"0 barre" b0 res>Budicata.
2* =oreover! as a rule! t%e )n"ings o& &acts o& Iuasi/#u"icial
agencies w%ic% %ave acIuire" e5$ertise because t%eir
#uris"iction is con)ne" to s$eci)c matters are accor"e"
not onl0 res$ect but at times even )nalit0 i& suc% )n"ings
are su$$orte" b0 substantial evi"ence
Rada v. NLRC
0& #anuary 1&&2
Ponente: #. 1ega!ado
1oe Anuncio
SUMMARY:
Petitioner was %ire" b0 Res$on"ent &or a $ro#ect as a "river*
Ais contract was renewe"Fe5ten"e" &or a &ew times until it
)nall0 e5$ire" wit%out %aving been &urt%er renewe"* Ae
)le" &or non/$a0ment o& se$aration $a0! as well as &or
un$ai" overtime $a0* Ae claims overtime $a0 &or t%e time
%e s$ent "riving &or t%e ot%er em$lo0ees to an" &rom wor*
S- sa0s sai" travel time constitutes com$ensable wor
%ours an" s%oul" %erein be accor"ingl0 consi"ere" as
overtime wor*
DOCTRINE:
2ravel time s$ent b0 an em$lo0ee &or t%e bene)t o& t%e
em$lo0er is com$ensable*
FACTS:
PetitionerOs initial em$lo0ment wit% t%is Res$on"ent was
un"er a P-ontract o& .m$lo0ment &or a De)nite Perio"P
w%ereb0 Petitioner was %ire" as P5ri+erP &or t%e
construction su$ervision $%ase o& t%e =anila Bort%
.5$resswa0 .5tension! Secon" Stage &or a term o& Pabout
24 mont%s eKective Hul0 1! 1?NN*
PetitionerOs )rst contract o& em$lo0ment e5$ire" on Hune
90! 1?N?* =eanw%ile! t%e main $ro#ect! =B.. Stage 2!
was not )nis%e" on account o& various constraints*
A secon" -ontract o& .m$lo0ment &or a De)nite Perio" o&
10 mont%s was e5ecute" between Petitioner an"
Res$on"ent*
Res$on"ent renewe" Petitioners contract o& em$lo0ment
Accor"ingl0! a t%ir" contract o& em$lo0ment was
e5ecute"*
2%is t%ir" contract o& em$lo0ment was subseIuentl0
e5ten"e" &or a number o& times! t%e last e5tension being
&or a $erio" o& 9 mont%s! t%at is! until December 91! 1?@C*
E$on t%e e5$iration o& t%e contract! Petitioner a$$lie" &or
PPersonnel -learanceP wit% Res$on"ent* Petitioner also
release" Res$on"ent &rom all obligations an"For claims!
etc* in a PRelease! ,aiver an" Xuitclaim*>
Petitioner )le" a -om$laint &or non/$a0ment o& se$aration
$a0 an" overtime $a0! alleging t%at %e was illegall0
"ismisse" an" t%at %e was not $ai" overtime $a0 alt%oug%
%e was ma"e to ren"er t%ree %ours overtime wor &orm*
LA '#nd#'#d a d#(isi)n: com$an0 to reinstate t%e
com$lainant to %is &ormer $osition wit%out loss o& seniorit0
rig%ts an" ot%er $rivileges wit% &ull bacwages &rom t%e
time o& %is "ismissal to %is actual reinstatement8
()+an* !) +a* !"# ()+lainan! )v#'!i# +a* 1)'
!'av#l !i# in !'ans+)'!ing )!"#' #+l)*##s !) and
1') 3)'D.
NLRC '#v#'s#d !"# LA d#(isi)n.
ISSUES/HELD:
N* ,4B t%e time s$ent b0 Petitioner "riving ot%er em$lo0ees
to an" &rom wor constitutes wor time an" s%oul" be
com$ensate" as overtime wor7 S.S
RATIO:
Re t%e claim &or overtime com$ensation! $etitioner is
entitle"*
22
2%e &act t%at %e $ics u$ em$lo0ees o& P%ilnor at certain
s$eci)e" $oints along .DSA in going to t%e $ro#ect site
an" "ro$s t%em oK at t%e same $oints on %is wa0 bac
&rom t%e )el" o3ce going %ome to =ariina! =etro =anila
is not merel0 inci"ental to $etitionerOs #ob as a "river* 4n
t%e contrar0! sai" trans$ortation arrangement %a" been
a"o$te"! not so muc% &or t%e convenience o& t%e
em$lo0ees! but $rimaril0 &or t%e bene)t o& t%e em$lo0er!
%erein $rivate res$on"ent*
=emo o& Res$on"ent com$an07
2%e %erein Res$on"ent resorte" to t%e above trans$ort
arrangement because &rom its $revious $ro#ect
construction su$ervision e5$eriences! Res$on"ent &oun"
out t%at $ro#ect "ela0s an" ine3ciencies resulte" &rom
em$lo0eesO tar"iness8 an" t%at t%e $roblem o& tar"iness!
in turn! was aggravate" b0 trans$ortation $roblems! w%ic%
varie" in "egrees in $ro$ortion to t%e "istance between
t%e $ro#ect site an" t%e em$lo0eesO resi"ence* So t%e
com$an0 o$te" to allow em$lo0ees to use t%e $ro#ect
ve%icle &or convenient trans$ortation*
2%e assigne" tas o& &etc%ing an" "elivering em$lo0ees is
in"is$ensable an" conseIuentl0 man"ator0! t%en t%e time
reIuire" o& an" use" b0 $etitioner in going &rom %is
resi"ence to t%e )el" o3ce an" bac! t%at is! &rom C790
a*m* to N700 a*m* an" &rom 4700 $*m* to aroun" D700 $*m*!
w%ic% t%e labor arbiter roun"e" oK as averaging t%ree
%ours eac% woring "a0! s%oul" be $ai" as overtime wor*
REMERCO vs. Minis!#' )1
La4)'
5ate: -ebruary 2$% 2&$7
Ponente: Cue+as #.
(ara 6.
SUMMARY: Private res$on"ents Yenai"a +ustamante! LuJ
Ra0mun"o an" Rut% -or$uJ were t%e em$lo0ees o&
Remerco Marments =anu&acturing! w%o re&use" to ren"er
overtime wor an" was summaril0 "ismisse" b0 t%e
com$an0* Bow t%e0 )le" a case o& illegal "ismissal against
t%e com$an0* S- rules in t%eir &avor*
DOCTRINE: </##Dl* R#s! B#'i)ds=
2%e Bew Labor -o"e is clear on t%is $oint* 6t is t%e "ut0 o&
ever0 em$lo0er! w%et%er o$erating &or $ro)t or not! to
$rovi"e eac% o& %is em$lo0ees a rest $erio" o& not less t%an
twent0 &our '24( %ours a&ter ever0 si5 'D( consecutive
normal wor "a0s*
0.
.ven i& t%ere reall0 e5iste" an urgenc0
to reIuire wor on a rest "a0! 'w%ic% is not in t%e instant
case( outrig%t "ismissal &rom em$lo0ment is so severe a
conseIuence! more so w%en #usti)able groun"s e5ist &or
&ailure to re$ort &or wor*
FACTS:
Petitioner Remerco Marments =anu&acturing sees t%e
nulli)cation o& t%e "ecision 1 o& t%e =inister o& Labor an"
.m$lo0ment "ate" Hanuar0 21! 1?@1! "eclaring t%e "ismissal o&
Yenai"a +ustamante! LuJ Ra0mun"o an" Rut% -or$uJ! 'its
em$lo0ees( illegal! an" or"ering t%eir reinstatement to t%eir
&ormer $ositions wit%out loss o& seniorit0 rig%ts an" $rivileges
an" wit% &ull bacwages* 2%e sai" "ecision set asi"e! on a$$eal!
t%e or"er 2 o& Acting Director! Bational -a$ital Region! =4L.!
"ate" =arc% D! 1?N@! granting $etitionerOs clearance a$$lication
to terminate t%e em$lo0ment o& its t%ree '9( em$lo0ees*
6t a$$ears t%at LuJ Ra0mun"o was reIuire" to wor on
4ctober 1C! 1?N@! a Sun"a0! "es$ite %er reIuest &or e5em$tion
to wor on t%at Sun"a0! %er rest "a0* Aer reIuest was
"isa$$rove"* Lor &ailure to re$ort &or wor "es$ite "enial o& %er
reIuest! s%e was noti)e" o& %er "ismissal eKective u$on
e5$iration o& %er sus$ension* 2%erea&ter or more s$eci)call0 on
4ctober 1D! 1?N@! $etitioner )le" a clearance a$$lication to
"ismiss %er on groun"s o& insubor"ination* Ra0mun"o o$$ose"
29
sai" a$$lication b0 )ling a com$laint &or illegal "ismissal an" &or
mone0 claims*
,it% res$ect to Yenai"a +ustamante! s%e &aile" to re$ort
&or wor "es$ite t%e e5$iration o& %er sus$ension on 4ctober 29!
1?N@* Petitioner conten"s t%at sai" &ailure constitutes
aban"onment w%ic% it later invoe as groun" &or clearance
a$$lication to "ismiss %er &rom em$lo0ment )le" on Bovember
10! 1?N@* Lie Ra0mun"o! Yenai"a +ustamante o$$ose" t%e
clearance a$$lication b0 )ling a com$laint &or illegal "ismissal
claiming t%at %er allege" &ailure to re$ort &or wor was "ue to
illness! as in &act! s%e was treate" b0 one Dr* LorenJo Suson &or
&ever an" severe stomac% ac%e on 4ctober 1C! 1?N@* Rut%
-or$uJ! lie t%e two a&orename" co/res$on"ents o& %ers! was also
given a warning &or re&usal to ren"er overtime wor on anot%er
"ate! August 90! 1?N@* S%e was subseIuentl0 "ismisse" on
4ctober 4! 1?N@ &or %aving written a c%al mar on a n0lon #acet
&or e5$ort allege"l0 a violation o& Rule 2D o& $etitionerOs rules an"
regulations! w%ic% $rovi"es7 P.m$lo0ees are strictl0 $ro%ibite"
&rom "e&acing or writing on walls o& t%e &actor0! toilets or an0
ot%er com$an0 $ro$ert0*P 2%e clearance a$$lication &or %er
"ismissal was )le" onl0 on 4ctober C! 1?N@ w%ic% s%e also
o$$ose" b0 )ling a com$laint &or illegal "ismissal*
4n =arc% D! 1?N?! t%e Acting Director o& Bational -a$ital
Region! =4L.! issue" an or"er granting $etitionerOs a$$lication
&or clearance to terminate t%e em$lo0ment o& $rivate
res$on"ents an" "ismissing t%eir com$laints &or lac o& merit* 4n
Hanuar0 20! 1?@1! t%e =inister o& Labor ren"ere" a "ecision
reversing t%e a$$eale" or"er an" "irecte" $etitioner to reinstate
$rivate res$on"ents LuJ Ra0mun"o! Yenai"a +ustamante an"
Rut% -or$uJ to t%eir &ormer $ositions wit%out loss o& seniorit0
rig%ts an" $rivileges an" wit% &ull bacwages*
ISSUES/HELD:
@* ,4B t%ere are su3cient groun" to u$%ol" t%e "ismissal o&
t%e 9G Bo*
RATIO:
1* ,%ile it is true t%at it is t%e sole $rerogative o& t%e
management to "ismiss or la0/oK an em$lo0ee! t%e
e5ercise o& suc% a $rerogative! %owever! must be ma"e
wit%out abuse o& "iscretion! &or w%at is at stae is not onl0
$rivate res$on"entsO $ositions but also t%eir means o&
liveli%oo"*
2* 6n t%e case o& LuJ Ra0mun"o! s%e was c%arge" o&
insubor"ination &or allege"l0 re&using to wor on a
Sun"a0! 4ctober 1C! 1?N@! w%ic% was %er rest "a0* 6n &act!
s%e was grante" a clearance sli$* 2%e "isa$$roval o& %er
reIuest b0 to$ management reasonabl0 creates t%e
im$ression o& a %ostile attitu"e* Petitioner %as not s%own
t%at LuJ Ra0mun"oOs &ailure to re$ort &or wor on t%at
Sun"a0! 4ctober 1C! 1?N@! constitutes one o& t%e #ust
causes &or termination un"er Article 2@9 o& t%e Bew Labor
-o"e*
9* Yenai"a +ustamante allege"l0 aban"one" %er
em$lo0ment b0 &ailing to re$ort &or wor a&ter t%e
e5$iration o& %er sus$ension on 4ctober 29! 1?N@* Lie LuJ
Ra0mun"o! %er one wee sus$ension arose &rom %er
&ailure to re$ort &or wor on a Sun"a0* 6t is a recogniJe"
$rinci$le t%at aban"onment o& wor b0 an em$lo0ee is
inconsistent wit% t%e imme"iate )ling o& a com$laint &or
illegal "ismissal*
0$
6t woul" be illogical &or Yenai"a
+ustamante to aban"on %er #ob an" t%en imme"iatel0 )le
an action seeing %er reinstatement* At t%at time*
4* 2%e lac o& s0m$at%etic un"erstan"ing o& t%e un"erl0ing
reasons &or t%eir absence aggravate" b0 t%e in"ecent
%aste atten"ant to t%e eKorts o& $etitioner to terminate
t%e services o& $rivate res$on"ents $ortra0 a total
"isregar" o& t%e constitutional man"ate o& Psecurit0 o&
tenureP an" P#ust an" %umane con"itions o& worP w%ic%
t%e State is man"ate" to $rotect* 2%e Bew Labor -o"e is
clear on t%is $oint* 6t is t%e "ut0 o& ever0 em$lo0er!
w%et%er o$erating &or $ro)t or not! to $rovi"e eac% o& %is
em$lo0ees a rest $erio" o& not less t%an twent0 &our '24(
%ours a&ter ever0 si5 'D( consecutive normal wor "a0s*
.ven i& t%ere reall0 e5iste" an urgenc0 to reIuire wor on
24
a rest "a0! 'w%ic% is not in t%e instant case( outrig%t
"ismissal &rom em$lo0ment is so severe a conseIuence!
more so w%en #usti)able groun"s e5ist &or &ailure to re$ort
&or wor*
C* 2%e ob#ections raise" groun"e" on $roce"ural
tec%nicalities "evoi" o& merit* 2%e mere &ailure to &urnis%
co$0 o& t%e a$$eal memoran"um to a"verse $art0 is not a
&atal "e&ect* ,e %ave consistentl0 a"%ere" to t%e $rinci$le
clearl0 %el" in A!onso +s. 6i!!aor

t%at Ptec%nicalit0 w%en
it "eserts its $ro$er o3ce as an ai" to #ustice an"
becomes its great %in"rance an" c%ie& enem0! "eserves
scant consi"eration &rom court*P 6n a more &orce&ul
language! =r* -%ie& Hustice .nriIue =* Lernan"o! s$eaing
&or t%e -ourt! in (eracap +s. 4nternationa! Ceraics
(anufacturing Co.% 4nc.
0>
state" P&or t%e strictl0 #uri"ical
stan"$oint! it cannot be too strongl0 stresse"! to &ollow
Davis in %is masterl0 wor! Discretionar0 Hustice! t%at
w%ere a "ecision ma0 be ma"e to rest on in&orme"
#u"gment rat%er t%an rigi" rules! all t%e eIuities o& t%e
case must be accor"e" t%eir "ue weig%t* Linall0! labor law
"eterminations! to Iuote &rom +ultmann! s%oul" be not
onl0 secundu retione but also secundu caritate. P
San Migu#l C)'+. vs. CA
#anuary C0% 2002
#. @apunan
#eroe (arce!o
SUMMARY: S=- "i" not $a0 non/=uslim em$lo0ees t%eir
regular =uslim %oli"a0 $a0 '&actor0 was in 6ligan -it0(* Regional
Director =acara0a issue" a com$liance or"er "irecting S=- to
consi"er =uslim %oli"a0s as regular %oli"a0s an" to $a0 bot%
its =uslim an" non/=uslim em$lo0ees %oli"a0 $a0 o& 200Q o&
basic salar0* DOLE Main O2(#7 Regional Director 4r"er
a3rme"* CA7 =o"i)e" t%e %oli"a0 $a0 &rom 200Q to 1C0Q* SC7
-A a3rme"*
DOCTRINE: 2%ere is no "istinction between =uslims an" non/
=uslims as regar"s $a0ment o& bene)ts &or =uslim %oli"a0s*
,ages an" ot%er emoluments grante" b0 law to t%e woring man are
"etermine" on t%e basis o& t%e criteria lai" "own b0 laws an" certainl0
not on t%e basis o& t%e worers &ait% or religion*
FACTS: 4n 1N 4ctober 1??2! t%e D4L. 6ligan District 43ce!
con"ucte" a routine ins$ection in t%e $remises o& San =iguel
-or$oration 'S=-( in Sta* Lilomena! 6ligan -it0* 6t was "iscovere"
t%at t%ere was un"er$a0ment b0 S=- o& regular =uslim %oli"a0
$a0 to its em$lo0ees* S=- conteste" t%e )n"ings so D4L.
con"ucte" summar0 %earings* Still! S=- &aile" to submit $roo&
t%at it was $a0ing regular =uslim %oli"a0 $a0 to its em$lo0ees*
Alan =acara0a! Director 6V o& D4L. 6ligan District 43ce issue" a
com$liance or"er "irecting S=- to consi"er =uslim %oli"a0s as
regular %oli"a0s an" to $a0 bot% its =uslim an" non/=uslim
em$lo0ees %oli"a0 $a0 wit%in 90 "a0s &rom recei$t o& or"er*
2%e S=- a$$eal to t%e D4L. main o3ce was "ismisse" &or
%aving been )le" late* 2%is "ismissal o& t%e a$$eal was later on
reconsi"ere" in t%e or"er o& 1N Hul0 1??@ a&ter it was &oun" t%at
t%e a$$eal was )le" wit%in t%e reglementar0 $erio"* Aowever!
t%e a$$eal was still "ismisse" &or lac o& merit an" t%e or"er o&
Director =acara0a was a3rme"* S=- went to t%e S- &or
relie& +ia a $etition &or certiorari* 2%e S- re&erre" t%e $etition to
t%e -A*
S=- "i" not "en0 t%at it was not $a0ing =uslim %oli"a0 $a0 to its
non/=uslim em$lo0ees* S=- merel0 conten"s t%at its non/=uslim
em$lo0ees are not entitle" to =uslim %oli"a0 $a0*
CA Ruling: 2%e or"er "ate" 1N December 1??9 o& Director
=acara0a an" 4r"er "ate" Hul0 1N! 1??@ o& En"ersecretar0
.s$a;ol is %ereb0 =4D6L6.D wit% regar"s t%e $a0ment o& =uslim
%oli"a0 $a0 &rom 200Q to 1C0Q o& t%e em$lo0eeOs basic salar0*
2C
Let t%is case be reman"e" to t%e Regional Director &or t%e $ro$er
com$utation o& t%e sai" %oli"a0 $a0*
ISSUE/HELD
1* ,4B non/=uslim em$lo0ees are entitle" to =uslim
%oli"a0 $a0* YES
RATIO
=uslim %oli"a0s are $rovi"e" un"er Articles 1D? an" 1N0! 2itle 6!
+oo V! o& BD 0?G- <C)d# )1 Musli B#'s)nal La3s=7
Art. 169. Ofcial Muslim holidays. > Dhe fo!!owing are hereby
recogni8ed as !ega! (us!i ho!idays:
EaF GAun #adHd E.ew <earF% which fa!!s on the *rst day of the
*rst !unar onth of (uharra;
EbF (au!id>un>.abH E2irthday of the Prophet (uhaadF% which
fa!!s on the twe!fth day of the third !unar onth of 1abi>u!>
Awwa!;
EcF Lai!atu! 4srI Ja! (iKrIB E.octurna! #ourney and Ascension of
the Prophet (uhaadF% which fa!!s on the twenty>se+enth day
of the se+enth !unar onth of 1aBab;
EdF GLd>u!>-itr EMari 1aya PuasaF% which fa!!s on the *rst day of the
tenth !unar onth of 0hawwa!% coeorating the end of the
fasting season; and
EeF GLd>N!>AdhI EMari 1aya MaBiF%which fa!!s on the tenth day of
the twe!fth !unar onth of 5hNK!>MiBBa.
Art. 10. !ro"i#ces a#d cities $here ofcially o%ser"ed. &
E1F (us!i ho!idays sha!! be oOcia!!y obser+ed in the Pro+inces
of 2asi!an% Lanao de! .orte% Lanao de! 0ur% (aguindanao% .orth
Cotabato% 4!igan% (arawi% Pagadian% and Aaboanga and in such
other (us!i pro+inces and cities as ay hereafter be created;
E2F :pon proc!aation by the President of the Phi!ippines%
(us!i ho!idays ay a!so be oOcia!!y obser+ed in other
pro+inces and cities.
2%e &oregoing $rovisions s%oul" be rea" in con#unction wit% A'!.
6. )1 !"# La4)' C)d#! w%ic% $rovi"es7
Art. 9'. Right to holiday (ay. )
EaF 9+ery worker sha!! be paid his regu!ar dai!y wage during
regu!ar ho!idays% e)cept in retai! and ser+ice estab!ishents
regu!ar!y ep!oying !ess than ten E10F workers;
EbF Dhe ep!oyer ay re?uire an ep!oyee to work on any
ho!iday but such ep!oyee sha!! be paid a copensation
e?ui+a!ent to twice his regu!ar rate; ) )
S=- argues t%at Art* 9'9( o& PD 10@9 $rovi"es t%at PEtFhe
pro+isions of this Code sha!! be app!icab!e on!y to (us!is ) ) ).P
Aowever! t%ere s%oul" be no "istinction between =uslims an"
non/=uslims as regar"s $a0ment o& bene)ts &or =uslim %oli"a0s*
2%e -A "i" not err in sustaining En"ersecretar0 .s$a;ol w%o
state"7 <Assuming t%at t%e res$on"ents $osition is correct! t%en b0 t%e
same toen! =uslims t%roug%out t%e P%ili$$ines are also not entitle" to
%oli"a0 $a0s on -%ristian %oli"a0s "eclare" b0 law as regular %oli"a0s*
,e must remin" t%e res$on"ent/a$$ellant t%at wages an" ot%er
emoluments grante" b0 law to t%e woring man are "etermine" on t%e
basis o& t%e criteria lai" "own b0 laws an" certainl0 not on t%e basis o&
t%e worers &ait% or religion*>
At an0 rate! A'!. -<-= )1 BD 0?G- "eclares t%at P) ) ) nothing
herein sha!! be construed to operate to the preBudice of a non>(us!i.P
Also! t%e 1999 *a#d%oo+ o# ,or+ers- .tatutory /e#e0ts!
a$$rove" b0 t%en D4L. Sec* Laguesma categoricall0 state"7
<Considering that a!! pri+ate corporations% oOces% agencies% and entities
or estab!ishents operating within the designated (us!i pro+inces and
cities are re?uired to obser+e (us!i ho!idays% both (us!i and
Christians working within the (us!i areas ay not report for work on
the days designated by !aw as (us!i ho!idays.Q
Regar"ing t%e #uris"iction o& t%e Director =acara0a! Article 12@!
Section + o& t%e Labor -o"e! as amen"e" b0 RA NN90 $rovi"es7
Article 128. 1isitorial a#d e#2orceme#t (o$er. >
) ) )
EbF .otwithstanding the pro+isions of Artic!e 12& and 21, of this
Code to the contrary% and in cases where the re!ationship of
ep!oyer>ep!oyee sti!! e)ists% the 0ecretary of Labor and
9p!oyent or his du!y authori8ed representati+es sha!! ha+e
the power to issue cop!iance orders to gi+e eRect to the !abor
standards pro+isions of this Code and other !abor !egis!ation
based on the *ndings of !abor ep!oyent and enforceent
oOcers or industria! safety engineers ade in the course of the
2D
inspection. Dhe 0ecretary or his du!y authori8ed representati+e
sha!! issue writs of e)ecution to the appropriate authority for the
enforceent of their orders% e)cept in cases where the ep!oyer
contests the *ndings of the !abor ep!oyent and enforceent
oOcer and raises issues supported by docuentary proofs which
were not considered in the course of inspection.
Aere! Director =acara0a acte" as t%e "ul0 aut%oriJe"
re$resentative o& t%e Secretar0 o& Labor an" .m$lo0ment an" it
was wit%in %is $ower to issue t%e com$liance or"er to S=-* 6n
a""ition! t%e S- agrees wit% t%e Solicitor Meneral t%at S=- "i"
not "en0 t%at it was not $a0ing =uslim %oli"a0 $a0 to its non/
=uslim em$lo0ees* 6n"ee"! S=- merel0 conten"s t%at its non/
=uslim em$lo0ees are not entitle" to =uslim %oli"a0 $a0* Aence!
t%e issue coul" be resolve" even wit%out "ocumentar0 $roo&s* 6n
an0 case! t%ere was no in"ication t%at Director =acara0a &aile" to
consi"er an0 "ocumentar0 $roo& $resente" b0 S=- in t%e course
o& t%e ins$ection*
RULINC: ,A.R.L4R.! in view o& t%e &oregoing! t%e $etition is
D6S=6SS.D*
;)s# Ri5al C)ll#g# v. NLRC H
Na!Al Allian(# )1
T#a("#'s/O2(# /)'D#'s
5ec. 1% 1&$,
Ponente: Paras% #.
L. Ag!ia
SUMMARY:
Petitioner HR- sees to annul t%e BLR- "ecision "eclaring
t%at $rivate res$on"ents BA24, '%ourl0 $ai" &acult0
members( are entitle" to %oli"a0 $a0* ,%ile S- e5em$te"
$etitioner &rom $a0ing $rivate res$on"ents t%eir $a0 &or
regular %oli"a0s! it or"ere" $etitioner to $a0 $rivate
res$on"ents on "a0s "eclare" as s$ecial %oli"a0s &or some
reason classes are calle" oK or s%ortene" &or t%e %ours t%e0
are su$$ose" to %ave taug%t! w%et%er e5tensions o& class
"a0s be or"ere" or not*
DOCTRINE: 'Aoli"a0 Pa0(
Regular %oli"a0s s$eci)e" b0 law are nown to bot% sc%ool
an" &acult0 members as no class "a0s8 an" so! t%e latter "o
not e5$ect $a0ment &or sai" unwore" "a0s* +ut w%en a
s$ecial $ublic %oli"a0 is "eclare"! t%e &acult0 member $ai"
b0 t%e %our is "e$rive" o& e5$ecte" income! an" so t%e0
must be $ai"! w%et%er or not e5tensions 'i*e* mae/u$
classes( are or"ere"*
FACTS:
Petitioner is a non/stoc! non/$ro)t e"ucational institution
"ul0 organiJe" an" e5isting un"er t%e laws o& t%e
P%ili$$ines* 6t %as 9 grou$s o& em$lo0ees7
1( $ersonnel on mont%l0 basis / wit% uni&orm mont%l0
salar0 t%roug%out t%e 0ear! irres$ective o& t%e
actual number o& woring "a0s in a mont% wit%out
"e"uction &or %oli"a0s8
2( $ersonnel on "ail0 basis / $ai" on actual "a0s
wore" an" t%e0 receive unwore" %oli"a0 $a08
an"!
9( collegiate &acult0 / $ai" on t%e basis o& stu"ent
contract %our* +e&ore t%e start o& t%e semester
t%e0 sign contracts wit% t%e college un"ertaing to
meet t%eir classes as $er sc%e"ule*
Res$on"ents BA24, )le" wit% t%e =inistr0 o& Labor a
com$laint against HR- &or allege" non/$a0ment o& %oli"a0
$a0 &rom 1?NC to 1?NN*
2N
Labor Arbiter "ecision7
1( mont%l0 $ai" em$lo0ees / $resume" to be alrea"0
$ai" t%e 10 $ai" legal %oli"a0s an" are no longer
entitle" to se$arate $a0ment &or t%e regular
%oli"a0s8
2( "ail0 $ai" em$lo0ees / entitle" to be $ai" t%e 10
unwore" regular %oli"a0s accor"ing to t%e
$ertinent $rovisions o& t%e Rules an" Regulations
6m$lementing t%e Labor -o"e
9( -ollegiate &acult0 $ai" b0 t%e stu"ent contract
%our / B42 entitle" to unwore" regular %oli"a0
$a0 consi"ering t%at t%ese regular %oli"a0s %ave
been e5clu"e" in t%e $rogramming o& t%e stu"ent
contact %ours
BLR- "ecision7 mo"i)e" above Z9 "ecision8 "eclare" t%at
teac%ing $ersonnel $ai" b0 t%e %our are .B262L.D to
%oli"a0 $a0
ISSUES/HELD:
,4B t%e sc%ool &acult0 w%o accor"ing to t%eir contracts are $ai"
$er lecture %our are entitle" to unwore" %oli"a0 $a0 'B4 to
regular %oli"a0 $a08 S.S to s$ecial %oli"a0 $a0(
RATIO:
2%e $etitioner is un"er obligation to give $a0 even on
unworked regular %oli"a0s to %ourl0 $ai" &acult0 members
sub#ect to t%e terms an" con"itions $rovi"e" in t%e
&ollowing $rovisions7
1( Art* ?4 o& t%e Labor -o"e $rovi"es7
Art. &4. 1ight to ho!iday pay S EaF 9+ery worker sha!! be
paid his regu!ar dai!y wage during regu!ar ho!idays%
e)cept in retai! and ser+ice estab!ishents regu!ar!y
ep!oying !ess than ten E10F workers;
EbF Dhe ep!oyer ay re?uire an ep!oyee to work on
any ho!iday but such ep!oyee sha!! be paid a
copensation e?ui+a!ent to twice his regu!ar rate; T
2( 6m$lementing Rules an" Regulations!! Rule 6V! +oo
666! $rovi"es7
09C. $. Mo!iday pay of certain ep!oyees. S EaF
Pri+ate schoo! teachers% inc!uding facu!ty ebers of
co!!eges and uni+ersities% ay not be paid for the
regu!ar ho!idays during seestra! +acations. Dhey
sha!!% howe+er% be paid for the regu!ar ho!idays during
Christas +acations. ...
1egu!ar %oli"a0s s$eci)e" b0 law are nown to bot%
sc%ool an" &acult0 members as no class "a0s8 an" so! t%e
latter "o not e5$ect $a0ment &or sai" unwore" "a0s*
Aowever! bot% t%e law an" t%e 6RR governing %oli"a0 $a0
are silent as to $a0ment on S$ecial Public Aoli"a0s*
2%e "eclare" $ur$ose o& t%e %oli"a0 $a0 is t%e $revention
o& "iminution o& t%e mont%l0 income o& t%e em$lo0ees on
account o& wor interru$tions* 6t is "e&eate" w%en a
regular class "a0 is cancelle" on account o& a s$ecial
$ublic %oli"a0 an" class %ours are %el" on anot%er
woring "a0 to mae u$ &or time lost in t%e sc%ool
calen"ar*
,%en a s$ecial $ublic %oli"a0 is "eclare"! t%e &acult0
member $ai" b0 t%e %our is "e$rive" o& e5$ecte" income!
an" it "oes not matter t%at t%e sc%ool calen"ar is
e5ten"e" in view o& t%e "a0s or %ours lost! &or t%eir
income t%at coul" be earne" &rom ot%er sources is lost
"uring t%e e5ten"e" "a0s*
Similarl0! w%en classes are calle" oK or s%ortene" on
account o& t0$%oons! Woo"s! rallies! an" t%e lie! t%ese
&acult0 members must liewise be $ai"! w%et%er or not
e5tensions are or"ere"*
Uni)n )1 Fili+') E+l)*##s v
Viva'
#anuary 20% 1&&2
Ponente: 3uttiere8 #r% #.
5e Leon
2@
FACTS:
1* Lili$ro! 6nc* 'now Bestle( )le" wit% t%e BLR- a $etition &or "eclarator0
relie& seeing a ruling on its rig%ts an" obligations res$ecting claims
o& its mont%l0 $ai" em$lo0ees &or %oli"a0 $a0 in t%e lig%t o& t%e
-ourtOs "ecision in Chartered 2ank 9p!oyees Association +* ;p!e.
2* Arbitrator Vivar ren"ere" a "ecision "irecting Lili$ro to $a0 its
mont%l0 $ai" em$lo0ees %oli"a0 $a0 $ursuant to Article ?4 o& t%e
-o"e! sub#ect onl0 to t%e e5clusions an" limitations s$eci)e" in
Article @2 an" suc% ot%er legal restrictions as are $rovi"e" &or in t%e
-o"e*
9* Lili$ro )le" a motion &or clari)cation seeing '1( t%e limitation o& t%e
awar" to t%ree 0ears! '2( t%e e5clusion o& salesmen! sales
re$resentatives! truc "rivers! merc%an"isers an" me"ical
re$resentatives '%ereina&ter re&erre" to as sales $ersonnel( &rom t%e
awar" o& t%e %oli"a0 $a0! an" '9( "e"uction &rom t%e %oli"a0 $a0
awar" o& over$a0ment &or overtime! nig%t "iKerential! vacation an"
sic leave bene)ts "ue to t%e use o& 2C1 "ivisor*
a* 2%e Enion answere" t%at t%e awar" s%oul" be ma"e eKective
&rom t%e "ate o& eKectivit0 o& t%e Labor -o"e! t%at t%eir sales
$ersonnel are not )el" $ersonnel an" are t%ere&ore entitle" to
%oli"a0 $a0! an" t%at t%e use o& 2C1 as "ivisor is an establis%e"
em$lo0ee bene)t w%ic% cannot be "iminis%e"*
b* 2%e arbitrator issue" an or"er "eclaring7
[ t%at t%e eKectivit0 o& t%e %oli"a0 $a0 awar" s%all retroact to
Bovember 1! 1?N4! t%e "ate o& eKectivit0 o& t%e Labor -o"e
[ t%at t%e com$an0Os sales $ersonnel are )el" $ersonnel an"! as
suc%! are not entitle" to %oli"a0 $a0*
[ wit% t%e grant o& 10 "a0sO %oli"a0 $a0! t%e "ivisor s%oul" be
c%ange" &rom 2C1 to 2D1 an" or"ere" t%e reimbursement o&
over$a0ment &or overtime! nig%t "iKerential! vacation an" sic
leave $a0 "ue to t%e use o& 2C1 "a0s as "ivisor*
c* 2%e $etitioner insists t%at res$on"entOs sales $ersonnel are not
)el" $ersonnel un"er Article @2 o& t%e Labor -o"e*
"* 2%e res$on"ent com$an0 asserts t%at un"er Article @2! )el"
$ersonnel are not entitle" to %oli"a0 $a0* Sai" article "e)nes
)el" $ersonnel as Pnon/agritultural em$lo0ees w%o regularl0
$er&orm t%eir "uties awa0 &rom t%e $rinci$al $lace o& business or
branc% o3ce o& t%e em$lo0er an" w%ose actual %ours o& wor in
t%e )el" cannot be "etermine" wit% reasonable certaint0*P
4* 6t is un"is$ute" t%at t%ese sales $ersonnel start t%eir )el" wor at
@700 a*m* a&ter %aving re$orte" to t%e o3ce an" come bac to t%e
o3ce at 4700 $*m* or 4790 $*m* i& t%e0 are =aati/base"*
C* 2%e $etitioner maintains t%at t%e $erio" between @700 a*m* to 4700
or 4790 $*m* com$rises t%e sales $ersonnelOs woring %ours w%ic%
can be "etermine" wit% reasonable certaint0*
ISSUES/HELD:
1* ,%et%er or not t%e sales $ersonnel are entitle" to %oli"a0 $a08
2* ,%et%er or not! concomitant wit% t%e awar" o& %oli"a0 $a0! t%e
"ivisor s%oul" be c%ange" &rom 2C1 to 2D1 "a0s an" w%et%er or not
t%e $revious use o& 2C1 as "ivisor resulte" in over$a0ment &or
overtime! nig%t "iKerential! vacation an" sic leave $a0*
RATIO:
1* Bo* 2%e sales $ersonnel are )el" worers an" t%us not entitle" to
%oli"a0 $a0*
[ 2%e law reIuires t%at t%e actual %ours o& wor in t%e )el" be
reasonabl0 ascertaine"* 2%e com$an0 %as no wa0 o& "etermining
SUMMARY:
[ 2%is labor "is$ute stems &rom t%e e5clusion o& sales $ersonnel
&rom t%e %oli"a0 $a0 awar" an" t%e c%ange o& t%e "ivisor in t%e
com$utation o& bene)ts &rom 2C1 to 2D1 "a0s*
DOCTRINE:
[ 2%e law reIuires t%at t%e actual %ours o& wor in t%e )el" be
reasonabl0 ascertaine"* 2%e reIuirement t%at Pactual %ours o&
wor in t%e )el" cannot be "etermine" wit% reasonable
certaint0P must be rea" in con#unction wit% Rule 6V! +oo 666 o&
t%e 6m$lementing Rules
[ 2%e criteria &or granting incentive bonus are7 '1( attaining or
e5cee"ing sales volume base" on sales target8 '2( goo"
collection $er&ormance8 '9( $ro$er com$liance wit% goo" maret
%0giene8 '4( goo" merc%an"ising wor8 'C( minimal maret
returns8 an" 'D( $ro$er truc maintenance*
[ 2%e "ivisor assumes an im$ortant role in "etermining w%et%er
or not %oli"a0 $a0 is alrea"0 inclu"e" in t%e mont%l0 $ai"
em$lo0eeOs salar0 an" in t%e com$utation o& %is "ail0 rate*
2?
w%et%er or not t%ese sales $ersonnel! even i& t%e0 re$ort to t%e
o3ce be&ore @700 a*m* $rior to )el" wor an" come bac at 4790
$*m! reall0 s$en" t%e %ours in between in actual )el" wor*
[ =oreover! t%e reIuirement t%at Pactual %ours o& wor in t%e )el"
cannot be "etermine" wit% reasonable certaint0P must be rea" in
con#unction wit% Rule 6V! +oo 666 o& t%e 6m$lementing Rules
> EeF -ie!d personne! and other ep!oyees whose tie and
perforance is unsuper+ised by the ep!oyer . . .
- 2%e a&orementione" rule "i" not a"" anot%er element to t%e Labor
-o"e "e)nition o& )el" $ersonnel* 2%e clause Pw%ose time an"
$er&ormance is unsu$ervise" b0 t%e em$lo0erP "i" not am$li&0 but
merel0 inter$rete" an" e5$oun"e" t%e clause Pw%ose actual %ours
o& wor in t%e )el" cannot be "etermine" wit% reasonable
certaint0*>
[ 2%e $etitioner claims t%at t%e &act t%at t%ese sales $ersonnel are
given incentive bonus ever0 Iuarter base" on t%eir $er&ormance is
$roo& t%at t%eir actual %ours o& wor in t%e )el" can be "etermine"
wit% reasonable certaint0*
/ 2%e -ourt t%ins ot%erwise* 2%e criteria &or granting incentive
bonus are7 E1F attaining or e)ceeding sa!es +o!ue based on sa!es
target; E2F good co!!ection perforance; ECF proper cop!iance
with good arket hygiene; E4F good erchandising work; E7F
inia! arket returns; and E'F proper truck aintenance.
/ Sales $ersonnel are given incentive bonuses $recisel0 because o&
t%e "i3cult0 in measuring t%eir actual %ours o& )el" wor* 2%ese
em$lo0ees are evaluate" b0 t%e result o& t%eir wor an" not b0 t%e
actual %ours o& )el" wor w%ic% are %ar"l0 susce$tible to
"etermination*
2* 2%e "ivisor to be use" in com$uting %oli"a0 $a0 s%all be 2C1 "a0s*
[ 2%e arbitrator rule" t%at7
/ t%e "ivisor s%oul" be c%ange" &rom 2C1 to 2D1 "a0s to inclu"e t%e
a""itional 10 %oli"a0s an" t%e em$lo0ees s%oul" reimburse t%e
amounts over$ai" b0 Lili$ro "ue to t%e use o& 2C1 "a0sO "ivisor*
/ ,%en t%e claim o& t%e Enion &or $a0ment o& ten %oli"a0s was
grante"! t%ere was a conseIuent nee" to aban"on t%at 2C1 "ivisor*
2o maintain it woul" create an im$ossible situation w%ere t%e
em$lo0ees woul" bene)t wit% a""itional ten "a0s wit% $a0 but
woul" simultaneousl0 en#o0 %ig%er bene)ts b0 "iscar"ing t%e same
ten "a0s &or $ur$oses o& com$uting overtime an" nig%t time
services an" consi"ering sic an" vacation leave cre"its*
2%ere&ore! reimbursement o& suc% over$a0ment wit% t%e use o&
2C1 as "ivisor arises concomitant wit% t%e awar" o& ten %oli"a0s
wit% $a0*
[ 2%e "ivisor assumes an im$ortant role in "etermining w%et%er or not
%oli"a0 $a0 is alrea"0 inclu"e" in t%e mont%l0 $ai" em$lo0eeOs
salar0 an" in t%e com$utation o& %is "ail0 rate*
/ 6n t%e $etitionerOs case! its com$utation o& "ail0 ratio since
Se$tember 1! 1?@0! is as &ollows7
mont%l0 rate 5 12 mont%s
:::::::::::
2C1 "a0s
/ 2%e use o& 2C1 "a0sO "ivisor b0 res$on"ent Lili$ro in"icates t%at
%oli"a0 $a0 is not 0et inclu"e" in t%e em$lo0eeOs salar0! ot%erwise
t%e "ivisor s%oul" %ave been 2D1*
[ 2%e "ail0 rate! assuming t%ere are no intervening salar0 increases! is
a constant )gure &or t%e $ur$ose o& com$uting overtime an" nig%t
"iKerential $a0 an" commutation o& sic an" vacation leave cre"its*
Becessaril0! t%e "ail0 rate s%oul" also be t%e same basis &or
com$uting t%e 10 un$ai" %oli"a0s*
[ 2%e res$on"ent arbitratorOs or"er to c%ange t%e "ivisor &rom 2C1 to
2D1 "a0s woul" result in a lower "ail0 rate w%ic% is violative o& t%e
$ro%ibition on non/"iminution o& bene)ts &oun" in Article 100 o& t%e
Labor -o"e* 2o maintain t%e same "ail0 rate i& t%e "ivisor is a"#uste"
to 2D1 "a0s! t%en t%e "ivi"en"! w%ic% re$resents t%e em$lo0eeOs
annual salar0! s%oul" corres$on"ingl0 be increase" to incor$orate
t%e %oli"a0 $a0*
[ 2%ere is t%us no merit in res$on"ent BestleOs claim o& over$a0ment
o& overtime an" nig%t "iKerential $a0 an" sic an" vacation leave
bene)ts! t%e com$utation o& w%ic% are all base" on t%e "ail0 rate!
since t%e "ail0 rate is still t%e same be&ore an" a&ter t%e grant o&
%oli"a0 $a0*
/ BestleOs invocation o& so!utio indebiti "ue to its use o& 2C1 "a0s as
"ivisor must &ail* >All "oubts in t%e im$lementation an"
inter$retation o& t%is -o"e! inclu"ing its im$lementing rules an"
regulations! s%all be resolve" in &avor o& labor*>
/ A""itionall0 t%e com$an0 was on a D/"a0 woring sc%e"ule! t%e
"ivisor use" b0 t%e com$an0 was 909! in"icating t%at t%e 10
%oli"a0s were not $ai"* ,%en Lili$ro s%i&te" to a C/"a0 woring
90
sc%e"ule it %a" t%e c%ance to recti&0 its error! i& ever t%ere was one
but "i" not "o so* 6t is now too late to allege $a0ment b0 mistae*
[ Bestle insists t%at t%e reconing $erio" &or t%e a$$lication o& t%e
%oli"a0 $a0 awar" is 1?@C w%en t%e Chartered 2ank "ecision
became )nal an" e5ecutor0! an" not &rom t%e "ate o& eKectivit0 o&
t%e Labor -o"e* Alt%oug% t%e -ourt "oes not entirel0 agree wit%
Bestle! we )n" its claim meritorious*
/ 6n 42AA9: +* 4nciong! t%e -ourt "eclare" t%at Section 2! Rule 6V!
+oo 666 o& t%e im$lementing rules an" Polic0 6nstruction Bo* ?!
issue" b0 t%e t%en Secretar0 o& Labor on Lebruar0 1D! 1?ND an"
A$ril 29! 1?ND! res$ectivel0! an" w%ic% e5clu"e" mont%l0 $ai"
em$lo0ees &rom %oli"a0 $a0 bene)ts! are null an" voi"*
/ 2%e Po$erative &actP "octrine realiJes t%at in "eclaring a law or rule
null an" voi"! un"ue %ars%ness an" resulting un&airness must be
avoi"e"* A$$l0ing t%e "octrine! it is not &ar/&etc%e" t%at Bestle!
rel0ing on t%e im$licit vali"it0 o& t%e im$lementing rule an" $olic0
instruction be&ore t%is -ourt nulli)e" t%em! an" t%ining t%at it was
not oblige" to give %oli"a0 $a0 bene)ts to its mont%l0 $ai"
em$lo0ees! ma0 %ave been move" to grant ot%er concessions to
its em$lo0ees! es$eciall0 in t%e collective bargaining agreement*
/ 2%e grant o& %oli"a0 $a0 be eKective! not &rom t%e "ate o&
$romulgation o& t%e -%artere" +an case nor &rom t%e "ate o&
eKectivit0 o& t%e Labor -o"e! but &rom 4ctober 29! 1?@4! t%e "ate
o& $romulgation o& t%e 6+AA case*
VIVIAN Y. IM:UIDO& +#!i!i)n#'&
vs. NATIONAL LA:OR RELATIONS
COMMISSION& INTERNATIONAL
INFORMATION SERVICES& INC.
and CA:RIEL LI:RANDO&
'#s+)nd#n!s
=arc% 91! 2000
Ponente7 +uena! H*
Paula Parungao
SUMMARY: 6mbui"o! a $ro#ect em$lo0ee! was allege"l0
illegall0 "ismisse" b0 6SS6 &or $artici$ating in )ling a
$etition &or certi)cation election wit% t%e +LR* S- %el" t%at
6mbui"o obtaine" t%e status o& a regular em$lo0ee! an"
t%us! was illegall0 "ismisse"*
DOCTRINE: ;nce a proBect or work poo! ep!oyee has
been: E1F continuous!y% as opposed to interittent!y% re>
hired by the sae ep!oyer for the sae tasks or nature
of tasks; and E2F these tasks are +ita!% necessary and
indispensab!e to the usua! business or trade of the
ep!oyer% then the ep!oyee ust be deeed a regu!ar
ep!oyee% under Art. 2$0% LC.
FACTS:
Vivien 6mbui"o was em$lo0e" as a "ata enco"er b0
6nternational 6n&ormation Services! 6nc*! '66S6( a "omestic
cor$oration engage" in t%e business o& "ata enco"ing an"
e0$unc%ing! &rom August 2D! 1?@@ until 4ctober 1@! 1??1
w%en %er services were terminate"*
Lrom 2D August 1?@@ until 1@ 4ctober 1??1! 6mbui"o
entere" into 19 se$arate em$lo0ment contracts wit% 6SS6!
91
eac% contract lasting onl0 9 mont%s* Asi"e &rom t%e basic
%ourl0 rate! s$eci)c #ob contract number an" $erio" o&
em$lo0ment! eac% contract contains t%e &ollowing terms
an" con"itions7
Pa* 2%is -ontract is &or a s$eci)c $ro#ectF#ob contract onl0
an" s%all be eKective &or t%e $erio" covere" as above/
mentione" unless sooner terminate" w%en t%e #ob contract
is com$lete" earlier or wit%"rawn b0 client! or w%en
em$lo0ee is "ismisse" &or #ust an" law&ul causes $rovi"e"
b0 law* 2%e %a$$ening o& an0 o& t%ese events will
automaticall0 terminate t%is contract o& em$lo0ment*
Sl5mis
Pb* Sub#ect s%all abi"e wit% t%e -om$an0s rules an"
regulations &or its em$lo0ees attac%e" %erein to &orm an
integral $art %ereo&*
Pc* 2%e nature o& 0our #ob ma0 reIuire 0ou to ren"er
overtime wor wit% $a0 so as not to "isru$t t%e -om$an0s
commitment o& sc%e"ule" "eliver0 "ates ma"e on sai" #ob
contract*P
6n Se$tember 1??1! 6mbui"o an" 12 ot%er em$lo0ees o&
6SSE allege"l0 agree" to t%e )ling o& a $etition &or
certi)cation election involving t%e ran/an"/)le em$lo0ees
o& 6SS6 un"er Laas =anggagawa sa Pili$inas 'LA\AS(*
@ 4ctober 1??1! t%e $etition was )le" wit% t%e +LR*
SubseIuentl0! 6mbui"o receive" a termination letter &rom
."na \asilag! 6SS6 A"ministrative 43cer! allege"l0 P"ue to
low volume o& worP
6mbui"o )le" a com$laint &or illegal "ismissal wit% service
incentive leave $a0 an" 19t% mont% "iKerential $a0 wit%
t%e BLR- Arbitration +ranc%*
LA AIuino rule" in &avor o& 6mbui"o an" or"ere" %er
reinstatement wit%out loss o& seniorit0 rig%ts an" $rivileges
an" t%e $a0ment o& bacwages an" service incentive leave
$a0*
4n a$$eal! BLR- reverse" t%e LA! ruling t%at 6mbui"o was a
regular em$lo0ee un"er Art* 2@0! L- #u"ging &rom t%e
&unction an" wor &or w%ic% s%e was %ire"* 2%e BLR- %el"
t%at 1Vt%e com$lainant T6mbui"oU! w%ile %ire" as a regular
worer! is statutoril0 guarantee"! in %er tenurial securit0!
onl0 u$ to t%e time t%e s$eci)c $ro#ect &or w%ic% s%e was
%ire" is com$lete"*P Aence! t%e BLR- conclu"e" t%at
PTwUit% t%e s$eci)c $ro#ect Pat R-+- 014P a"mitte"l0
com$lete"! t%e com$lainant T$etitioner %ereinU %as
t%ere&ore no vali" basis in c%arging illegal "ismissal &or %er
concomittant 'sic( "islocation*P
ISSUES/HELD:
1* ,4B 6mbui"o is a $ro#ect em$lo0ee* S.S*
RATIO:
92
6mbui"o is a $ro#ect em$lo0ee*
2%e $rinci$al test &or "etermining w%et%er an em$lo0ee is
a $ro#ect em$lo0ee or a regular em$lo0ee is w%et%er t%e
$ro#ect em$lo0ee was assigne" to carr0 out a s$eci)c
$ro#ect or un"ertaing! t%e "uration an" sco$e o& w%ic%
were s$eci)e" at t%e time t%e em$lo0ee was engage" &or
t%at $ro#ect* A $ro#ect em$lo0ee is one w%ose em$lo0ment
%as been )5e" &or a s$eci)c $ro#ect or un"ertaing! t%e
com$letion or termination o& w%ic% %as been "etermine" at
t%e time o& t%e engagement o& t%e em$lo0ee or w%ere t%e
wor or service to be $er&orme" is seasonal in nature an"
t%e em$lo0ment is &or t%e "uration o& t%e season*
6n t%e recent case o& =araguinot! Hr* vs* BLR-! S- %el" t%at
PTaU $ro#ect em$lo0ee or a member o& a wor $ool ma0
acIuire t%e status o& a regular em$lo0ee w%en t%e
&ollowing concur7
1( 2%ere is a continuous re%iring o& $ro#ect em$lo0ees even
a&ter Tt%eU cessation o& a $ro#ect8 an"
2( 2%e tass $er&orme" b0 t%e allege" P$ro#ect em$lo0eeP
are vital! necessar0 an" in"is$ensable to t%e usual
business or tra"e o& t%e em$lo0er*P
2%e evi"ence on recor" reveals t%at 6mbui"o was em$lo0e"
b0 6SS6 as a "ata enco"er! $er&orming activities w%ic% are
usuall0 necessar0 or "esirable in t%e usual business or
tra"e o& %er em$lo0er! continuousl0 &or a $erio" o& more
t%an 9 0ears! &rom August 2D! 1?@@ to 4ctober 1@! 1??1
an" contracte" &or a total o& 19 successive $ro#ects*
PTAUowever! t%e lengt% o& time "uring w%ic% t%e em$lo0ee
was continuousl0 re/%ire" is not controlling! but merel0
serves as a ba"ge o& regular em$lo0ment*P +ase" on t%e
&oregoing! 6mbui"o %as attaine" t%e status o& a regular
em$lo0ee o& 6SS6*
S- notes t%e &ollowing7
2%e "ecision "oes not bur"en an em$lo0er t%e "ut0 o& re/
%ring a $ro#ect em$lo0ee even a&ter t%e com$letion o& t%e
$ro#ect* ,%at t%is "ecision merel0 accom$lis%es is a
#u"icial recognition o& t%e em$lo0ment status o& a $ro#ect or
wor $ool em$lo0ee in accor"ance wit% w%at is &ait
accom$li! i*e*! t%e continuous re/%iring b0 t%e em$lo0er o&
$ro#ect or wor $ool em$lo0ees w%o $er&orm tass
necessar0 or "esirable to t%e em$lo0erOs usual business or
tra"e*
All t%at we %ol" to"a0 is t%at once a $ro#ect or wor $ool
em$lo0ee %as been7 '1( continuousl0! as o$$ose" to
intermittentl0! re/%ire" b0 t%e same em$lo0er &or t%e same
tass or nature o& tass8 an" '2( t%ese tass are vital!
necessar0 an" in"is$ensable to t%e usual business or tra"e
o& t%e em$lo0er! t%en t%e em$lo0ee must be "eeme" a
regular em$lo0ee! $ursuant to Article 2@0 o& t%e Labor
-o"e an" #uris$ru"ence* 2o rule ot%erwise woul" allow
circumvention o& labor laws in in"ustries not &alling wit%in
t%e ambit o& Polic0 6nstruction Bo* 20FDe$artment 4r"er Bo*
1?! %ence allowing t%e $revention o& acIuisition o& tenurial
securit0 b0 $ro#ect or wor $ool em$lo0ees w%o %ave
99
alrea"0 gaine" t%e status o& regular em$lo0ees b0 t%e
em$lo0erOs con"uct*P
+eing a regular em$lo0ee! 6mbui"o is entitle" to securit0 o&
tenure an" coul" onl0 be "ismisse" &or a #ust or aut%oriJe"
cause! as $rovi"e" in Article 2N?! L-! as amen"e"7
PArt. 2,&. 0ecurity of Denure S 4n cases of regu!ar
ep!oyent% the ep!oyer sha!! not terinate the ser+ices
of an ep!oyee e)cept for a Bust cause or when authori8ed
by this Dit!e. An ep!oyee who is unBust!y disissed fro
work sha!! be entit!ed to reinstateent without !oss of
seniority rights and other pri+i!eges and to his fu!!
backwages% inc!usi+e of a!!owances% and to his other
bene*ts or their onetary e?ui+a!ent coputed fro the
tie his copensation was withhe!d fro hi up to the
tie of his actua! reinstateent.P
2%e allege" causes o& 6mbui"os "ismissal 'low volume o&
wor an" belate"l0! com$letion o& $ro#ect( are not vali"
causes &or "ismissal un"er Articles 2@2 an" 2@9! L-* 2%us!
s%e is entitle" to reinstatement wit%out loss o& seniorit0
rig%ts an" ot%er $rivileges! an" to %er &ull bacwages!
inclusive o& allowances! an" to %er ot%er bene)ts or t%eir
monetar0 eIuivalent com$ute" &rom t%e time %er
com$ensation was wit%%el" &rom %er u$ to t%e time o& %er
actual reinstatement*
,it% regar" to claim &or service incentive leave $a0!
6mbui"o is entitle" to service incentive leave $a0! as
$rovi"e" in Article ?C! L-7
PArtic!e &7 U 1ight to ser+ice incenti+e !ea+e U
EaF 9+ery ep!oyee who has rendered at !east one year of
ser+ice sha!! be entit!ed to a year!y ser+ice incenti+e !ea+e
of *+e days with pay.
))) ))) ))).P
F#'nand#5 v. NLRC
2$ #anuary 1&&$
#ustice Panganiban
Lindain
SUMMARY: 2%e eleven $etitioners in t%is case )le" a com$laint &or
illegal "ismissal against Agencia -ebuana/A* L%uillier an"F or
=argueritte L%uillier* 2%e Agencia -ebuana is a sole $ro$rietors%i$
o$erate" b0 =argueritte L%uillier* 2%e $etitioners "eman"e" an
increase in t%eir salaries since L%uilliers business was maing
goo"* 2%e $etitioners also allege" t%at =argueritte L%uillier was
eva"ing $a0ment o& ta5es b0 maing &alse entries in %er recor"s o&
account* L%uillier t%reatene" t%em t%at somet%ing woul" %a$$en to
t%eir em$lo0ment i& t%e0 woul" re$ort %er to t%e +6R*
SubseIuentl0! L%uillier sus$ecte" t%em o& stealing #ewelr0 &rom t%e
$awns%o$ an" verball0 in&orme" t%em not to re$ort &or wor as
t%eir em$lo0ment %a" been terminate"* 2%e $etitioners "i" not
re$ort &or wor* 2%e Labor Arbiter %el" t%at t%ere was illegal
"ismissal* 6t or"ere" L%uillier to $a0 se$aration $a0! service
incentive leave $a0 wit% &ull bacwages wit%out Iuali)cation* 2%e
BLR- reman"e" t%e case &or &urt%er $rocee"ings* 2%e Su$reme
-ourt rule" in &avor o& t%e $etitionersF em$lo0ees*
94
DOCTRINE: 2%e clear $olic0 o& t%e Labor -o"e is to grant service
incentive leave $a0 to worers in all establis%ments! sub#ect to a
&ew e5ce$tions* Sec* 2! Rule V! +oo 666 o& t%e 6RR $rovi"es t%at
ever0 em$lo0ee s%all be entitle" to a 0earl0 service incentive leave
o& )ve "a0s wit% $a0* 6t is a rig%t w%ic% accrues to ever0 em$lo0ee
w%o %as serve" <wit%in 12 mont%s! w%et%er continuous or broen
recone" &rom t%e "ate t%e em$lo0ee starte" woring! inclu"ing
aut%oriJe" absences an" $ai" regular %oli"a0s unless t%e woring
"a0s in t%e establis%ment as a matter o& $ractice or $olic0! or t%at
$rovi"e" in t%e contract! is less t%an 12 mont%s! in w%ic% case sai"
$erio" s%all be consi"ere" as one 0ear* 6t is also <commutable to its
mone0 eIuivalent i& not use" or e5%auste" at t%e en" o& t%e 0ear*>
FACTS:
Petitioners are em$lo0e" b0 Agencia -ebuana/A* L%uillier an"
=argueritte L%uillier* 2%e0 )le" a com$laint &or illegal "ismissal against
L%uillier* 2%e )rst set o& $etitioners 'Lernan"eJ an" ot%ers( allege" t%at
$rior to an" "uring earl0 Hul0 1??0! t%e0 "eman"e" &rom L%uillier an
increase in t%eir salaries since L%uilliers business was maing goo" an"
t%at s%e was eva"ing $a0ment o& ta5es b0 maing &alse entries in %er
recor"s o& account* SubseIuentl0! L%uillier sus$ecte" t%em o& stealing
#ewelr0* L%uillier verball0 in&orme" t%em not to re$ort &or wor as t%eir
em$lo0ment %a" been terminate"* A&ter 4 "a0s! t%e0 )le" t%e instant
com$laint*
Petitioners =aril0n Lim an" Hose$% -anonigo 'secon" set o&
$etitioners( allege" t%at t%e0 "eman"e" increases in t%eir salaries since
t%e0 note" t%at L%uilliers business was $ro)table* 2%e0 also in&orme"
L%uillier t%at t%e0 inten"e" to #oin t%e Associate" Labor Enion* L%uillier
subseIuentl0 a"vise" t%em to resign as t%e0 were re$orte"l0
res$onsible &or some anomalies at t%e Agencia -ebuana/A L%uillier*
L%uilliers $osition7 a( L%uillier receive" a re$ort t%at Lim sol" to
a com$an0 consumer %er own #ewelr0! in violation o& t%e %ouse rules8
Lim a"mitte" %aving committe" t%e violation com$laine" o&8 s%e
ten"ere" an irrevocable letter o& resignation8 in eKect! t%ere was no
illegal "ismissal8 b( As to t%e ot%er $etitioners! t%e $awns%o$ was &oun"
to %ave lost t%e amount o& 1N4!000 $esos because t%e $etitioners over/
"eclare" t%e weig%ts an" values o& certain items o& #ewelr0 $awne" to
t%e com$an08 sai" $etitioners "i" not re$ort &or wor 2 "a0s a&ter
L%uillier &oun" out about t%e over/"eclaration*
'Proce"ural( 2rial on t%e merits ensue" an" %earings were
sc%e"ule" on Hul0 C! @! an" 12! 1??1* 4n Hul0 @! counsel &or L%uillier
&aile" to a$$ear to cross/e5amine =aril0n Lim*
LA DECISION: Rule" in &avor o& t%e em$lo0ees8 or"ere" L%uillier to $a0
se$aration $a0! service incentive leave $a0 wit% &ull bacwages wit%out
Iuali)cation! moral "amages 'P 100!000(! e5em$lar0 "amages 'P
100!000(! $lus attorne0s &ees '10Q o& t%e total awar"( an" P 90! 000 &or
litigation e5$enses
NLRC DECISION: Reman"e" t%e case to t%e labor arbiter &or &urt%er
$rocee"ings* 2%is was to allow L%uillier to &ormall0 $resent %er evi"ence
an" to allow $etitioners to cross/e5amine L%uilliers witnesses*

ISSUES:
1* Di" t%e BLR- acIuire #uris"iction over t%e a$$eal notwit%stan"ing t%e
allege" insu3cienc0 o& t%e a$$eal bon"G S.S
2* ,ere $rivate res$on"ents 'L%uillier( "e$rive" o& t%e "ue $rocess o&
law b0 law arbiterG B4
9* TR.L.VAB2U ,ere $etitioners illegall0 "ismisse"G S.S 'Aowever! Lim
an" -anonigo were vali"l0 "ismisse"(
4* TR.L.VAB2U Assuming $etitioners were illegall0 "ismisse"! was t%e
com$utation o& bacwages! service incentive leave $a0 an" "amages
vali" an" correctG S.S
RATIO:
4ssue 1
Lhui!!ierV ep!oyer: Alt%oug% t%e total monetar0 awar" in t%eir &avor
was P1!0N@!200*CC! L%uillier $oste" a cas% bon" in t%e amount
o& PNC2!1@9*00 onl0* 6n com$uting t%e monetar0 awar" &or t%e $ur$ose
o& $osting an a$$eal bon"! L%uillier relie" on Rule V6! Section D
4
! o& t%e
4 Section D* +on"* 6n case o& t%e "ecision o& a Labor Arbiter involves a monetar0
awar"! an a$$eal b0 t%e em$lo0er s%all be $er&ecte" onl0 u$on t%e $osting o& a
cas% or suret0 bon" issue" b0 a re$utable bon"ing com$an0 "ul0 accre"ite" b0
t%e -ommission or t%e Su$reme -ourt in an amount eIuivalent to t%e monetar0
awar"*
2%e -ommission ma0! in meritorious cases an" u$on =otion o& t%e A$$ellant!
re"uce t%e amount o& t%e bon"* Aowever! an a$$eal is "eeme" $er&ecte" u$on
t%e $osting o& t%e bon" eIuivalent to t%e monetar0 awar" e5clusive o& moral an"
e5em$lar0 "amages as well as attorne0s &ees*
9C
1??0 Bew Rules o& Proce"ure o& t%e BLR- an" e5clu"e" t%e awar" &or
"amages! litigation e5$enses an" attorne0s &ees*
PetitionersV ep!oyees7 2%e sai" rule cannot $revail over Article 229
C
o&
t%e Labor -o"e! w%ic% "oes not $rovi"e &or suc% e5clusion*
Su+'## C)u'!7 2%ere is no conWict between t%e two
$rovisions* Article 229 la0s "own t%e reIuirement t%at an a$$eal bon"
s%oul" be )le"* 2%e im$lementing rule! on t%e ot%er %an"! e5$lains %ow
t%e a$$eal bon" s%all be com$ute"* 2%e rule e5$licitl0 e5clu"es moral
an" e5em$lar0 "amages an" attorne0s &ees &rom t%e com$utation o&
t%e a$$eal bon"*
2%e rule reIuiring t%e em$lo0er to $ost a cas% or suret0 bon" to
$er&ect %is a$$eal assures t%e worers t%at t%e0 will receive t%e mone0
#u"gment awar"e" to t%em u$on t%e "ismissal o& t%e em$lo0ers
a$$eal* 6t also "iscourages em$lo0ers &rom using an a$$eal to "ela0 or
even eva"e t%eir obligation to satis&0 t%e #ust an" law&ul claims o& t%eir
em$lo0ees*
Aence! "e"ucting &rom t%e total monetar0 awar"
o& P1!0N@!200*CC t%e amount o& P200!000*00 &or moral an" e5em$lar0
"amages! P?@!01@*2C &or attorne0s &ees an" P90!000*00 &or litigation
e5$enses! t%e amount o& t%e bon" s%oul" be PNC0!1@2*CC* 2%us! t%e
a$$eal bon" actuall0 $oste" in t%e amount o& PNC2!1@9 is even more
t%an t%e amount o& a$$eal bon" t%at ma0 be reIuire" &rom $rivate
res$on"ents un"er Res$on"ent BLR-s rules*
4ssue 2
Lhui!!ierV ep!oyer: Labor arbiter erre" in stating t%at t%e absence o&
t%eir counsel "uring t%e Hul0 @ an" Hul0 12 %earings resulte" in t%e
waiver o& t%eir rig%t to cross/e5amine t%e ot%er $art0s witness an" t%eir
rig%t to $resent evi"ence*
PetitionersV ep!oyees7 L%uillier was able to submit its $osition $a$er
wit% su$$orting a3"avits an" "ocuments* L%uillers counsels &ailure to
a$$ear on Hul0 @ an" Hul0 12 %earings! wit%out an0 #usti)cation or motion
C 6n case o& a #u"gment involving a monetar0 awar"! an a$$eal b0 t%e em$lo0er
ma0 be $er&ecte" onl0 u$on t%e $osting o& a cas% or suret0 bon" issue" b0 a
re$utable bon"ing com$an0 "ul0 accre"ite" b0 t%e -ommission in t%e amount
eIuivalent to t%e monetar0 awar" in t%e #u"gment a$$eale" &rom*
&or $ost$onement! warrante" t%e submission o& t%e case &or "ecision
$ursuant to Sec* 11! Rule V
D
o& t%e 1??0 Bew Rules o& Proce"ure o& BLR-*
.u(reme 3ourt4 L%uillier was able to )le $osition $a$ers an" t%e
"ocuments in su$$ort t%ereo&! an" all t%ese were "ul0 consi"ere" b0 t%e
labor arbiter* 6n"ee"! t%e reIuirements o& "ue $rocess are satis)e"
w%ere t%e $arties are given t%e o$$ortunit0 to submit $osition $a$ers*
6n an0 event! Res$on"ent BLR- an" t%e labor arbiter are
aut%oriJe" un"er t%e Labor -o"e to "eci"e a case on t%e basis o& t%e
$osition $a$ers an" "ocuments submitte"* 2%e %ol"ing o& an a"versarial
trial "e$en"s on t%e "iscretion o& t%e labor arbiter! an" t%e $arties
cannot "eman" it as a matter o& rig%t* 2%e )ling o& $osition $a$ers an"
su$$orting "ocuments &ul)lle" t%e reIuirements o& "ue $rocess*
2%e essence o& "ue $rocess is sim$l0 an o$$ortunit0 to be %ear"!
to e5$lain ones si"e! or to see a reconsi"eration o& t%e action or ruling
com$laine" o&* 6n t%e case at bar! L%uillier was given am$le o$$ortunit0
to "o #ust t%at but &aile"
4ssue C
Lhui!!ierV ep!oyer: 2%ere was no illegal "ismissal* Petitioners
aban"one" t%eir em$lo0ment* 2%e0 "i" not re$ort &or wor wit%out an0
e5cuse*
PetitionersV ep!oyees: L%uillier tol" t%em not to re$ort &or wor
because t%eir em$lo0ment %a" been terminate"* 2%us! t%e0 "i" not
re$ort &or wor t%e &ollowing "a0* 2%en! t%e0 )le" t%eir res$ective
com$laints be&ore t%e Regional Arbitration +oar" o& BLR-*
0upree Court: 2%ere was no aban"onment* 2o succee" in $lea"ing
aban"onment as a vali" groun" &or "ismissal! t%e em$lo0er must $rove
'1( t%e intention o& an em$lo0ee to aban"on %is or %er em$lo0ment an"
'2( an overt act &rom w%ic% suc% intention ma0 be in&erre"8 i.e.! t%e
em$lo0ee s%owe" no "esire to resume %is wor* =ere absence is not
su3cient* 2%e em$lo0er must $rove a "eliberate an" un#usti)e" re&usal
o& t%e em$lo0ee to resume %is em$lo0ment wit%out an0 intention o&
returning*
D 'c( 6n case o& two '2( successive un#usti)e" non/a$$earances b0 t%e
res$on"ent "uring %is turn to $resent evi"ence! "es$ite "ue notice! t%e case s%all
be consi"ere" submitte" &or "ecision on t%e basis o& t%e evi"ence so &ar
$resente"*>
9D
L%uillier &aile" to $rove t%e two elements* 2%e claim o&
aban"onment was inconsistent wit% t%e imme"iate )ling o& $etitioners
com$laint &or illegal "ismissal an" $ra0er &or reinstatement* Sai"
$etitioners were illegall0 "ismisse"! wit% neit%er #ust cause nor "ue
$rocess*
As regar"s =aril0n Lim an" Hose$% -anonigo! t%ere was no illegal
"ismissal* =aril0n Lims a"mission o& t%e oKense c%arge" 'see &acts(
s%ows t%at s%e was not coerce" to resign* +esi"es! t%e &act t%at %er
com$laint &or illegal "ismissal was )le" long a&ter %er resignation on
Lebruar0 24! 1??0 suggests t%at it was a mere a&tert%oug%t* Lie
Petitioner Lim! Hose$% -anonigo "i" not imme"iatel0 )le a com$laint &or
illegal "ismissal! "oing so onl0 on Hul0 29! 1??0* Ae voluntaril0 ten"ere"
%is resignation on t%e assurance o& se$aration $a0*
4ssue 4
0o!icitor genera!: 2%e awar" o& service incentive leave s%oul" be limite"
to 9 0ears! base" on Art* 2?1
N
o& t%e Labor -o"e*
PetitionersV ep!oyees: Art* 2?1 o& t%e L- s$eas o& t%e $rescri$tion o&
)ling an action u$on monetar0 claims wit%in 9 0ears &rom t%e time t%e
cause o& action accrue"! but it is not a $rescri$tion o& a $erio" o& time &or
t%e com$utation o& monetar0 claims*
0upree Court: Service incentive leave is a rig%t w%ic% accrues to ever0
em$lo0ee w%o %as serve" <wit%in 12 mont%s! w%et%er continuous or
broen recone" &rom t%e "ate t%e em$lo0ee starte" woring! inclu"ing
aut%oriJe" absences an" $ai" regular %oli"a0s unless t%e woring "a0s
in t%e establis%ment as a matter o& $ractice or $olic0! or t%at $rovi"e" in
t%e em$lo0ment contracts! is less t%an 12 mont%s! in w%ic% case sai"
$erio" s%all be consi"ere" as one 0ear*> TSec* 9! Rule V! +oo 666! 6RR o&
t%e Labor -o"eU
6t is also <commutable to its mone0 eIuivalent i& not use" or
e5%auste" at t%e en" o& t%e 0ear*>TSec* C! Rule V! +oo 666! 6RR o& t%e
Labor -o"eU 6n ot%er wor"s! an em$lo0ee w%o %as serve" &or one 0ear is
entitle" to it* Ae ma0 use it as leave "a0s or %e ma0 collect its
N AR2* 2?1* (oney C!ais* // All mone0 claims arising &rom em$lo0er/em$lo0ee
relations accruing "uring t%e eKectivit0 o& t%is -o"e s%all be )le" wit%in t%ree '9(
0ears &rom t%e time t%e cause o& action accrue"8 ot%erwise t%e0 s%all be &orever
barre"*
monetar0 value* 2o limit t%e awar" to t%ree 0ears! as t%e solicitor
general recommen"s! is to un"ul0 restrict suc% rig%t* 2%e law in"ee"
"oes not $ro%ibit its commutation*
Since a service incentive leave is clearl0 "eman"able a&ter one
0ear o& service // w%et%er continuous or broen // or its eIuivalent
$erio"! an" it is one o& t%e <bene)ts> w%ic% woul" %ave accrue" i& an
em$lo0ee was not ot%erwise illegall0 "ismisse"! its com$utation s%oul"
be u$ to t%e "ate o& reinstatement as $rovi"e" un"er Section 2N?
@
o& t%e
Labor -o"e*
Aowever! t%e 6RR clearl0 state t%at entitlement to <bene)t
$rovi"e" un"er t%is Rule s%all start December 1D! 1?NC! t%e "ate t%e
amen"ator0 $rovision o& t%e TLaborU -o"e too eKect*> Aence!
$etitioners! e5ce$t Lim an" -anonigo! s%oul" be entitle" to service
incentive leave $a0 &rom December 1D! 1?NC u$ to t%eir actual
reinstatement*
As to t%e reinstatement an" bacwages! t%e Su$reme -ourt %as
%el" t%at illegall0 "ismisse" em$lo0ees are entitle" to reinstatement an"
&ull bacwages* 6& reinstatement is not $ossible! t%e em$lo0ees are
entitle" to se$aration $a0 an" &ull bacwages* Accor"ingl0! t%e awar"
to $etitioners o& bacwages &or t%ree 0ears s%oul" be mo"i)e" in
accor"ance wit% Article 2N?
?
o& t%e Labor -o"e! as amen"e" b0 R*A*
DN1C! b0 giving t%em &ull bacwages wit%out con"itions an" limitations!
t%e "ismissals %aving occurre" a&ter t%e eKectivit0 o& t%e amen"ator0
law on =arc% 21! 1?@?*
@ AR2* 2N?* Securit0 o& 2enure* // An em$lo0ee w%o is un#ustl0 "ismisse" &rom
wor s%all be entitle" to reinstatement wit%out loss o& seniorit0 rig%ts an" ot%er
$rivileges an" to %is &ull bacwages! inclusive o& allowances! an" to %is ot%er
bene)ts or t%eir monetar0 eIuivalentcom$ute" &rom t%e time %is com$ensation is
wit%%el" &rom %im u$ to t%e time o& %is actual reinstatement*>
? Article 2N?* Securit0 o& 2enure* Tas amen"e" b0 Section 94 o& RA DN1CU* // 6n
cases o& regular em$lo0ment! t%e em$lo0er s%all not terminate t%e services o& an
em$lo0ee e5ce$t &or a #ust cause or w%en aut%oriJe" b0 t%is 2itle* An em$lo0ee
w%o is un#ustl0 "ismisse" &rom wor s%all be entitle" to reinstatement wit%out
loss o& seniorit0 rig%ts an" ot%er $rivileges an" to %is &ull bacwages! inclusive o&
allowances! an" to %is ot%er bene)ts or t%eir monetar0 eIuivalent com$ute" &rom
t%e time %is com$ensation was wit%%el" &rom %im u$ to t%e time o& %is actual
reinstatement*
9N
RULINC: ,A.R.L4R.! t%e $etition is %ereb0 31A.D95 an" t%e assaile"
Decision an" Resolution are 19691095 an" 09D A0459* 2%e labor
arbiters "ecision is 194.0DAD95 wit% (;54-4CAD4;.0! suc% t%at t%e
awar" o& se$aration $a0 is "elete" an" t%e service incentive leave $a0 is
com$ute" &rom December 1D! 1?NC u$ to $etitioners actual
reinstatement* Lull bacwages! inclu"ing t%e accrue" t%irteent% mont%
$a0! are also awar"e" to t%e nine $etitioners // Lei"en Lernan"eJ!
+ren"a Ma"iano! Mloria A"riano! .melia Bega$atan! Hesus 2omong%a!
.leonor Xui;anola! Asteria -am$o! Llori"a Villaceran an" Llori"a 2alle"o
// &rom t%e "ate o& t%eir illegal "ismissal to t%e time o& t%eir actual
reinstatement* Petitioners Lim an" -anonigo! w%om we )n" to %ave
voluntaril0 resigne"! are not entitle" to an0 bene)t*
;BL Ma'D#!ing B'))!i)ns v
CA& NLRC& N)#l C)n5al#s&
Ra)n A4#sa III& and
Faus!in) Anini+)!
#u!y $ 2007
Ponente: Dinga% #.
Leigh 0ia8on
SUMMARY: HPL! in t%e business o& recruitment! assigne"
$rivate res$on"ents to wor in -=-* HPL noti)e" $rivate
res$on"ents t%at -=- was going to close "own! but t%at HPL
woul" reassign t%em* Private res$on"ents got ot%er #obs
t%en )le" a case against HPL* S- rule" t%at t%e $rivate
res$on"ents were not entitle" to se$aration $a0 as t%e0
were never "ismisse"* Aowever! HPL %a" to $a0 19t% mont%
$a0 an" service incentive leave $a0* Sai" bene)ts are
man"ate" b0 law an" s%oul" be given to em$lo0ees as a
matter o& rig%t*
DOCTRINE: Service incentive leave is a 0earl0 leave
bene)t o& C "a0s wit% $a0! en#o0e" b0 an em$lo0ee w%o
%as ren"ere" at least one 0ear o& service* Enless
s$eci)call0 e5ce$te"! all establis%ments are reIuire" to
grant service incentive leave* <At least one 0ear o& service>
s%all mean service wit%in 12 mont%s! w%et%er continuous or
broen recone" &rom t%e "ate t%e em$lo0ee starte"
woring* ,%ile com$utation &or t%e 19t% mont% $a0 s%oul"
begin &rom t%e )rst "a0 o& em$lo0ment! t%e service
incentive leave $a0 s%oul" start a 0ear a&ter
commencement o& service! &or it is onl0 t%en t%at t%e
em$lo0ee is entitle" to sai" bene)t*
FACTS:
- HPL is engage" in t%e business o& recruitment an" $lacement
o& worers* MonJales! Abesa an" Anini$ot '$rivate
res$on"ents( were em$lo0e" b0 HPL as merc%an"isers an"
assigne" at "iKerent establis%ments as atten"ants to t%e
"is$la0 o& -ali&ornia =areting -or$oration '-=-(*
- 4n August 19 1??D! HPL noti)e" $rivate res$on"ents t%at -=-
woul" sto$ its merc%an"ising activit0! eKective August 1C
200D* 2%e0 were a"vise" to wait &or &urt%er notice as t%e0
woul" be trans&erre" to ot%er clients* Aowever! on 4ctober 1N
200D! $rivate res$on"ents )le" be&ore t%e BLR- com$laints
&or illegal "ismissal! $ra0ing &or se$aration $a0! 19
t%
mont%
$a0! service incentive leave $a0 an" $a0ment &or moral
"amages*
- Labor Arbiter "ismisse" t%e com$laints7
o MonJales an" Abesa were em$lo0e" even be&ore t%e la$se
o& t%e D/mont% $erio" given b0 law to HPL to $rovi"e
$rivate res$on"ents a new assignment* 2%e0 unilaterall0
severe" t%eir relation wit% HPL*
9@
o 6t was incumbent u$on $rivate res$on"ents to wait until
t%e0 were reassigne" b0 HPL* 6& a&ter D mont%s t%e0 were
not reassigne"! t%e0 can )le an action &or se$aration $a0
but not &or illegal "ismissal*
o 2%e claim &or 19t% mont% $a0 an" service incentive leave
$a0 was "enie" since $rivate res$on"ents were $ai" wa0
above t%e minimum wage "uring t%eir em$lo0ment
- BLR- a3rme" LA t%at $rivate res$on"ents were not illegall0
"ismisse"* Aowever! because HPL was not able to reassign
t%em! t%e0 were entitle" to se$aration $a0*
- HPL )le" $etition &or certiorari wit% -A* -A "ismisse" $etition*
o Bo illegal "ismissal! but -A #usti)e" t%e awar" o&
se$aration $a0 on t%e groun"s o& eIuit0 an" social #ustice
o Re#ecte" HPLs argument t%at t%e "iKerence in t%e
amounts o& $rivate res$on"ents salaries an" t%e
minimum wage s%oul" be consi"ere" t%e service incentive
leave an" 19t% mont% $a0
- HPL )le" $etition &or review*
o 2%e case "oes not &all un"er an0 o& t%e instances w%ere
se$aration $a0 is "ue
o Assuming arguen"o t%at t%e0 are entitle" to t%e bene)ts
awar"! t%e com$utation s%oul" onl0 be &rom t%eir )rst "a0
o& em$lo0ment wit% HPL 'August 1C 1??D( u$ to t%e "ate
o& termination o& -=-s contract! an" not u$ to t%e )nalit0
o& t%e BLR- resolution 'Hul0 2N 2000(*
o .rroneous to com$ute service incentive leave $a0 &rom
t%e )rst "a0 o& t%eir em$lo0ment u$ to t%e )nalit0 o& t%e
BLR- resolution! since an em$lo0ee %as to ren"er at least
1 0ear o& service be&ore %e is entitle" to t%e same* 2%us!
service incentive leave $a0 s%oul" be counte" &rom t%e
secon" 0ear o& service*
- Private res$on"ents also allege" t%at t%e0 were "e$rive" o&
"ue $rocess because t%e notice o& termination was sent to
t%em onl0 2 "a0s be&ore actual termination* 2o t%is! HPL
re$lie" t%at t%e0 merel0 sent a memo noti&0ing $rivate
res$on"ents about t%e en" o& merc%an"ising o& -=-*
ISSUES/HELD:
1( ,4B $rivate res$on"ents are entitle" to se$aration $a0! 19
t%

mont% $a0! an" service incentive leave $a0G 4nl0 to 19
t%
mont%
an" service incentive
2( Mranting t%at t%e0 are so entitle"! w%at s%oul" be t%e
reconing $oint &or com$uting sai" awar"s7 &or 0-!" )n!" +a*
)rst "a0 o& em$lo0ment* Lor s#'vi(# in(#n!iv# l#av# +a* 1
0ear a&ter commencement o& service

RATIO:
AS 24 S.PARA264B PAS
Se$aration $a0 is aut%oriJe" onl0 in cases o& "ismissals "ue to
t%ese reasons7
- En"er arts* 2@9 an" 2@4 o& t%e Labor -o"e7
'a( 6nstallation o& labor saving "evices
'b( Re"un"anc0
'c( Retrenc%ment
'"( -essation o& t%e em$lo0erOs business8 an"
'e( ,%en t%e em$lo0ee is suKering &rom a "isease an" %is continue"
em$lo0ment is $ro%ibite" b0 law or is $re#u"icial to %is or %is co/
em$lo0ees %ealt%
- As a measure o& social #ustice in t%ose cases w%ere t%e em$lo0ee is
vali"l0 "ismisse" &or causes ot%er t%an serious miscon"uct or t%ose
reWecting on %is moral c%aracter! but onl0 w%en %e was illegall0
"ismisse"*
- Sec* 4'b(! Rule 6! +oo V6 o& t%e 6m$lementing Rules to 6m$lement
t%e Labor -o"e $rovi"es &or t%e $a0ment o& se$aration $a0 to an
em$lo0ee entitle" to reinstatement! but is no longer &easible
6n all t%ese instances! t%e em$lo0ee was "ismisse" b0 t%e
em$lo0er* 6n t%e instant case! $rivate res$on"ents were not
"ismisse"! w%et%er legall0 or illegall0* ,%at t%e0 receive" &rom
was not a notice o& termination o& em$lo0ment! but a memo
in&orming t%em o& t%e termination o& -=-s contract wit% HPL*
2%e0 were also a"vise" t%at t%e0 were to be reassigne"*
Lurt%ermore! Art* 2@D allows t%e bona )"e sus$ension o& t%e
o$eration o& a business &or a $erio" not e5cee"ing D mont%s!
9?
w%erein em$lo0ees are $lace" on t%e so/calle" <Woating status*>
,%en t%at <Woating status> lasts &or more t%an D mont%s! %e ma0
be consi"ere" to %ave been illegall0 "ismisse" &rom t%e service!
entitling %im to se$aration $a0* Aowever! in t%is case! $rivate
res$on"ents soug%t em$lo0ment &rom ot%er establis%ments even
be&ore t%e e5$iration o& t%e D/mont% $erio"* HPL "i" not terminate
t%eir em$lo0ment8 t%e0 t%emselves severe" t%eir relations wit%
HPL* 2%us! t%e0 are not entitle" to se$aration $a0*

AS 24 19
2A
=4B2A ABD S.RV6-. 6B-.B26V. L.AV. PAS
HPL cannot esca$e t%e $a0ment o& 19t% mont% $a0 an" service
incentive leave $a0* Sai" bene)ts are man"ate" b0 law an"
s%oul" be given to em$lo0ees as a matter o& rig%t* PD @C1! as
amen"e"! reIuires an em$lo0er to $a0 its ran an" )le
em$lo0ees a 19t% mont% $a0 not later t%an 24 December o&
ever0 0ear* 4n t%e ot%er %an"! service incentive leave! as
$rovi"e" in Art* ?C o& t%e Labor -o"e! is a 0earl0 leave bene)t o&
C "a0s wit% $a0! en#o0e" b0 an em$lo0ee w%o %as ren"ere" at
least one 0ear o& service* Enless s$eci)call0 e5ce$te"! all
establis%ments are reIuire" to grant service incentive leave to
t%eir em$lo0ees* 2%e term <at least one 0ear o& service> s%all
mean service wit%in 12 mont%s! w%et%er continuous or broen
recone" &rom t%e "ate t%e em$lo0ee starte" woring*
Private res$on"ents were not given t%eir 19t% mont% $a0 an"
service incentive leave $a0* 6nstea"! HPL $rovi"e" salaries w%ic%
were over an" above t%e minimum wage* 2%e -ourt rules t%at
t%e "iKerence between t%e minimum wage an" t%e actual salar0
receive" b0 $rivate res$on"ents cannot be "eeme" as t%eir 19t%
mont% $a0 an" service incentive leave $a0 as suc% "iKerence is
not eIuivalent to or o& t%e same im$ort as t%e sai" bene)ts
contem$late" b0 law*
,%ile com$utation &or t%e 19t% mont% $a0 s%oul" $ro$erl0 begin
&rom t%e )rst "a0 o& em$lo0ment! t%e service incentive leave $a0
s%oul" start a 0ear a&ter commencement o& service! &or it is onl0
t%en t%at t%e em$lo0ee is entitle" to sai" bene)t* 4n t%e ot%er
%an"! t%e com$utation &or bot% bene)ts s%oul" onl0 be u$ to 1C
August 1??D! or t%e last "a0 t%at $rivate res$on"ents wore" &or
HPL* 2%ese bene)ts are given b0 law on t%e basis o& t%e service
actuall0 ren"ere" b0 t%e em$lo0ee* 2%ere is no cause &or
granting sai" incentive to one w%o %as terminate" %is
relations%i$ wit% t%e em$lo0er*

Petition is MRAB2.D 6B PAR2* -A "ecision =4D6L6.D* 2%e awar" o&
se$aration $a0 is "elete"* HPL is or"ere" to $a0 $rivate
res$on"ents t%eir 19t% mont% $a0 commencing &rom t%e "ate o&
em$lo0ment u$ to 1C August 1??D! as well as service incentive
leave $a0 &rom t%e secon" 0ear o& em$lo0ment u$ to 1C August
1??D*
Sugu# v. T'iu+"
In!#'na!i)nal <B"ils.=& In(.
#anuary C0% 200&
Ponente: Leonardo>5e Castro% #.
A! (ohaadsa!i
SUMMARY:
2wo em$lo0ees were absent &rom wor an" t%is absence
was c%arge" against t%eir vacation leave cre"its* 2%e0 also
)le" a$$lications &or leave w%ic% were "enie" to "ue to non/
com$liance wit% im$ose" con"itions* 2%e S- eventuall0
rule" t%at t%e con"itions im$ose" were vali"*
DOCTRINE:
6n t%e grant o& vacation an" sic leave $rivileges to an
em$lo0ee! t%e em$lo0er is given leewa0 to im$ose
con"itions on t%e entitlement to t%e same as it is not a
stan"ar" o& law! but a $rerogative o& management* 6t is a
mere concession or act o& grace o& t%e em$lo0er an" not a
matter o& rig%t on t%e $art o& t%e em$lo0ee* 2%us! it is well
wit%in t%e $ower an" aut%orit0 o& an em$lo0er to "en0 an
em$lo0ees a$$lication &or leave an" t%e same cannot be
$erceive" as "iscriminator0 or %arassment*
40
FACTS:
Virgina Sugue was res$on"ents Assistant =anager &or
=areting an" Renato Val"errama was one o&
res$on"ents Direct Sales =anager* 6n 1???! res$on"ents
sales "ecline"* Sales target! w%ic% were set b0 Val"errama
%imsel& ! were not met* 2%e low sales $er&ormance was
t%e sub#ect o& corres$on"ence between Val"errama an"
t%e to$ management!
Sugue an" Val"errama )le" a com$laint wit% t%e BLR-
against 2rium$% &or $a0ment o& mone0 claims arising &rom
allege"l0 un$ai" vacation an" sic leave cre"its! birt%"a0
leave an" 14t% mont% $a0 &or t%e $erio" 1???/2000*
4n 1? Hune 2000! Sugue an" Val"errama atten"e" a
$reliminar0 con&erence o& t%e case t%e0 )le"* 2%e0 "i" not
)le a leave an" use" com$an0 car an" "river* 2%e0 were
ase" to e5$lain w%ere t%e0 were in t%e morning o& 1?
Hune 2000* Sugue an" Val"errama sai" t%e0 went to t%e
$reliminar0 con&erence o& t%e case an" t%oug%t t%at t%e0
coul" use com$an0 time*
2rium$% c%arge" Sugue an" Val"erramas one/%al& "a0
absence to t%eir vacation leave cre"its*
Val"errama was absent &rom Hul0 9 to Hul0 C* Ae )le" an
a$$lication &or sic leave! w%ic% was "enie" because
Val"errama &aile" to $resent a me"ical certi)cate* 2%e
com$an0 $olic0 reIuires suc% a certi)cate &or sic leave
&or more t%an one "a0*
Val"errama a$$lie" &or leave &or %is e5ecutive c%ec/u$*
2%is was "enie" because o& t%e arrival o& t%e com$an0s
regional manager 'international region(*
Sugue )le" an a$$lication &or leave &or Hul0 14 an" 1C! but
t%e a$$roval o& t%e same was con"itione" on %er
submission o& t%e 2001 =areting Plan*
Sugue also a$$lie" &or leave &or %is e5ecutive c%ec/u$*
2%is was also "enie" because o& t%e arrival o& t%e
com$an0s regional manager 'international region(*
,%en Val"errama le&t 'claiming constructive "ismissal(!
Sugue com$laine" t%at s%e was ase" to re$ort to
2embliIue! w%o s%e claims was %er assistant an"
t%ere&ore s%e is being "emote"*
Val"errama an" Sugue t%en )le" anot%er com$laint &or
constructive "ismissal*
LA rule" in t%eir &avor* 4n a$$eal to t%e BLR-! t%e LA was
reverse"* 4n certiorari to t%e -A! t%e LAs "ecision was
reinstate" wit% t%e mo"i)cation o& "eletion o& t%e
attorne0s &ees an" re"uction o& moral "amages*
Sugue an" Val"erammas %eirs 'Val"errama "ie"
sometime "uring t%e $en"enc0 o& t%e case( a$$eale" to
t%e S- to Iuestion t%e mo"i)cation o& t%e LA "ecision*
2rium$% a$$eale" to Iuestion t%e BLR- reversal an"
reinstatement o& t%e LA "ecision*
ISSUES/HELD:
1* ,4B Sugue an" Val"errama were constructivel0
"ismisse"G Bo*
2* ,4B Sugue an" Val"errama a$$lication &or leaves were
vali"l0 "enie"G Ses*
9* ,4B t%e cre"iting o& t%eir %al&/"a0 absence to t%eir leave
cre"its was vali"G Ses*
RATIO:
Sugue an" Val"errama were not constructivel0 "ismisse"*
2%e circumstances "o not warrant a )n"ing o&
constructive "ismissal*
.5$laine" below are t%e e5$lanation &or 2rium$%s actions*
Anent Sugues claims t%at s%e was "emote"! t%is was
&oun" to be un&oun"e" b0 t%e -ourt* 2%e $erson to w%om
s%e was to re$ort to was not un"er Sugue! but %e was in
t%e same level as Val"errama 'Sugues boss(*
Sugue an" Val"errama wante" to %ave t%eir e5ecutive
c%ec/u$s w%en t%eir regional manager 'o3cer &rom
abroa"( was in town* 6t was &air &or t%e com$an0 to reIuire
t%em to be $resent because o& t%eir &unction* 2%e0 %a" to
coor"inate an" meet wit% t%e regional manager* 2%e0
41
were not $reclu"e" to %ave t%eir c%ec/u$ a&ter t%e
regional manager leaves*
Val"erramas re#ecte" sic leave a$$lication are also vali"*
6t was s%own t%at %e "i" not com$l0 wit% t%e com$an0
$olic0 on t%e a$$lication &or sic leave* Ae &aile" to
$resent a me"ical certi)cate*
Sugues re#ecte" a$$lication was also vali" consi"ering
t%at w%at was reIuire" o& %er was actuall0 $art o& %er
&unctions* 2%e $re$aration an" submission o& t%e
mareting $lan was a vali" con"ition to be im$ose"*
6n t%e grant o& vacation an" sic leave $rivileges to an
em$lo0ee! t%e em$lo0er is given leewa0 to im$ose
con"itions on t%e entitlement to t%e same as it is not a
stan"ar" o& law! but a $rerogative o& management* 6t is a
mere concession or act o& grace o& t%e em$lo0er an" not a
matter o& rig%t on t%e $art o& t%e em$lo0ee* 2%us! it is well
wit%in t%e $ower an" aut%orit0 o& an em$lo0er to "en0 an
em$lo0ees a$$lication &or leave an" t%e same cannot be
$erceive" as "iscriminator0 or %arassment*
Sugue an" Val"erramas absence &rom wor to go to t%e
$reliminar0 con&erence o& t%eir )rst case was not
com$ensable time* 2rium$% was #usti)e" in c%arging t%e
absence to t%eir vacation leave cre"its*
2%e age/ol" rule governing t%e relation between labor an"
ca$ital or management an" em$lo0ee is t%at a P&air "a0Os
wage &or a &air "a0Os labor*P 6& t%ere is no wor $er&orme"
b0 t%e em$lo0ee t%ere can be no wage or $a0! unless o&
course! t%e laborer was able! willing an" rea"0 to wor but
was illegall0 loce" out! "ismisse" or sus$en"e"*
Ma*)n H)!#l H R#s!au'an!&
Ba(i!a O. B)& and/)' ;)s#1a
B) La v R)land) Adana&
C")na :uala*& R)g#'
:u'(#& Edua'd) Ala'#s&
#!.al.
0?
Apri! 17% 1&&$
Ponente: 2e!!osi!!o% #.
10 Ma*)n H)!#l H R#s!au'an!& Ba(i!a O. B)& and/)' ;)s#1a B) La v
R)land) Adana& C")na :uala*& R)g#' :u'(#& Edua'd) Ala'#s& Aad)
Ala#s& Edga'd) T)''#1an(a& L)u'd#s Caigla& T#d)') Lau'#na'ia&
/#n#1'#d) L)v#'#s& Luis Caud#s& Aad) Ma(and)g& Ba!#'n) Lla'#na&
C'#g)'i) Ni(#'i)& ;)s# A!!'a(!iv)& Migu#l T)''#1'an(a and San!)s
:')n)la=
42
@itty
SUMMARY: =a0on Aotel an" Restaurant initiall0 o$erate"
at RiJal Street wit% 1D em$lo0ees* 6n A$ril 1??N! t%eir
o$erations cease" an" t%e0 move" to a new location* 4nl0
? o& t%e 1D were em$lo0e" at t%e new location* 2%e 1D
em$lo0ees )le" com$laints &or un"er$a0ment o& wages an"
ot%er mone0 claims wit% t%e LA* LA rule" in &avor o& t%e
$etitioner* BLR- reverse"* Res$on"ents )le" an =R wit% t%e
BLR- w%ic% was "enie"* 2%e0 t%en went u$ to t%e -A on
certiorari* -A rule" in &avor o& t%e res$on"ents* Petitioners
=R was "enie" an" t%e0 went u$ to t%e S-* S- rule" in
&avor o& t%e res$on"ents* 2%ere was illegal "ismissal in t%is
case an" t%e res$on"ents were entitle" to t%eir mone0
claims*
DOCTRINE: 'in relation to s0llabus to$ic( A $ro)t s%are is in
t%e nature o& a service c%arge w%en t%e amounts receive"
are not )5e" an" t%e same are not $ai" on a mont%l0 basis*
FACTS:
Petitioner =a0on Aotel ] Restaurant is a single $ro$rietor
business registere" in t%e name o& t%e $etitioner Pacita
Po! w%ose mot%er! $etitioner Hose&a Po Lam! manages t%e
establis%ment* 2%e %otel an" restaurant em$lo0e" aroun"
1D em$lo0ees*
=arc% 91! 1??N7 Aotel o$erations o& t%e business were
sus$en"e" "ue to t%e e5$iration an" non/renewal o& t%e
lease contract &or t%e rente" s$ace occu$ie" b0 sai" %otel
an" restaurant at RiJal Street* 6t continue" its o$erations
at a new location on .liJon"o Street! LegaJ$i -it0* 4nl0 ?
o& t%e 1D em$lo0ees continue" woring t%ere*
A$ril to =a0 1??N7 2%e 1D em$lo0ees )le" com$laints &or
un"er$a0ment o& wages an" ot%er mone0 claims against
$etitioners*
Hul0 14! 20007 .5ecutive Labor Arbiter Melacio Rivera
ren"ere" a Hoint Decision in &avor o& t%e em$lo0ees w%o
awar"e" substantiall0 all o& t%e mone0 claims o& t%e
res$on"ents an" %el" t%at res$on"ents Loveres!
=acan"og! an" Llarena were entitle" to se$aration $a0!
w%ile reson"ents Mua"es! Bicerio! an" Alamares were
entitle" to retirement $a0*
BLR- reverse" t%e LA* Res$on"ents )le" an =R wit% t%e
BLR- w%ic% was "enie"*
Res$on"ents )le" a $etition &or certiorari wit% t%e -A
w%ic% ren"ere" t%e now assaile" "ecision*
Petitioners )le" an =R wit% t%e -A w%ic% was "enie"*
Petitioners went u$ to t%e S-*
ISSUES/HELD:
?* ,ere res$on"ents Loveres! Mua"es! =acan"og! Atractivo!
Llarena an" Bicerio illegall0 "ismisse"G S.S*
10* Are res$on"ents entitle" to mone0 claims "ue to
un"er$a0ment o& wages! an" non$a0ment o& %oli"a0 $a0!
rest "a0 $remium! SL6P! -4LA! overtime $a0! an" nig%t
s%i&t "iKerential $a0G S.S*
RATIO:
4n illegal "ismissal
o 2%e cessation o& em$lo0ment &or more t%an si5
mont%s was $atet an" t%e em$lo0er %a" t%e
bur"en o& $roving t%at t%e termination was &or a
#ust or aut%oriJe" cause! $ursuant to Art* 2@D o&
t%e Labor -o"e*
o Petitioners initiall0 claime" wit% t%e LA t%at it coul"
not be illegal "ismissal because t%e la0/oK was
merel0 tem$orar0 an" "ue to t%e e5$iration o& t%e
lease contract over t%e ol" $remises o& t%e %otel*
A&ter t%e LA rule" t%at t%ere was alrea"0 illegal
"ismissal w%en t%e la0/oK %a" e5cee"e" D mont%s!
it raise" a new argument stating t%at t%e &ailure to
reinstate t%e em$lo0ees coul" not be attribute" to
t%e $etitioners as t%e &act t%at t%e em$lo0ees were
out o& wor was "ue to circumstances be0on" t%e
$etitioners control*
o ,%ile t%e closure o& %otel o$erations in A$ril 1??N
ma0 %ave been tem$orar0! t%e evi"ence on recor"
belie an0 claim o& t%e $etitioners t%at t%e la0/oK
49
was merel0 tem$orar0* Rat%er! t%e S- %el" t%at
evi"ence s%owe" t%at $etitioners meant &or it to be
$ermanent*
2%e illegal "ismissal com$laints were )le"
imme"iatel0 a&ter t%e closure o& o$erations
on RiJal Street*
Petitioners ma"e no mention in t%eir
$osition $a$er wit% t%e LA t%at t%e0 %a"
an0 intent to recall t%e res$on"ents to wor
u$on t%e com$letion o& t%e new $remises*
Petitioners ma"e allegations in various
$lea"ings t%at t%e res$on"ents were
res$onsible &or mismanagement o& t%e
establis%ment an" &or abuse o& trust an"
con)"ence* 2%ese accusations are
inconsistent wit% a "esire to recall t%em to
wor*
Petitioners memoran"um on a$$eal also
averre" t%at t%e case was )le" <not
because o& t%e business being o$erate" b0
t%em or t%at t%e0 were su$$ose"l0 not
receiving bene)ts! but because o& t%e &act
t%at t%e source o& t%eir liveli%oo"! w%et%er
legal or immoral! was sto$$e" on =arc% 91!
1??N*>
Petitioners! in t%e same $lea"ing! allege"
t%at t%ere was onl0 tem$orar0 cessation or
sus$ension o& o$erations but also state" t%e
se$aration was "ue to severe )nancial
losses an" reverses lea"ing to closure o&
t%e business an" t%at $etitioner Po %a" to
close s%o$*
2%e LA %a" t%e uncontroverte" )n"ing t%at
t%e $etitioner terminate" all t%e oter
res$on"ents b0 not em$lo0ing t%em w%en
t%e establis%ment relocate" to t%eir new
si"e on Penaran"a Street*
o ,%ile t%e a&orementione" &actors ma0 be
inconclusive in"ivi"uall0! w%en taen toget%er!
t%e0 lea" to t%e conclusion t%at $etitioners reall0
inten"e" to "ismiss all res$on"ents
o .ven assuming t%at t%e closure was "ue to a
reason be0on" t%e control o& t%e em$lo0er! it still
%a" to accor" to its em$lo0ees some relie& in t%e
&orm o& severance $a0*
o En"er t%ese circumstances! t%e awar" o& "amages
was $ro$er* As a rule! moral "amages are
recoverable w%ere t%e "ismissal o& t%e em$lo0ee
was atten"e" b0 ba" &ait% or &rau" or constitute"
an act o$$ressive to labor! or was "one in a
manner contrar0 to morals! goo" customs or $ublic
$olic0*
4n mone0 claims*
o S- agree" wit% t%e -A an" LA t%at t%e res$on"ents
%ave set out wit% $articularit0 in t%eir com$laint!
$osition $a$er! a3"avits! an" ot%er "ocuments t%e
labor stan"ar" bene)ts t%e0 are entitle" to! an"
w%ic% t%e0 allege" t%e $etitioners &aile" to $a0
t%em* 2%us! t%e bur"en was on t%e $etitioners to
$rove t%at t%e0 %ave $ai" t%ese mone0 claims*
o Des$ite re$eate" or"ers &rom t%e LA $etitioners
&aile" to submit t%e $ertinent em$lo0ee )les!
$a0rolls! recor"s! remittances an" ot%er similar
"ocuments w%ic% woul" s%ow t%at res$on"ents
ren"ere" wor entitling t%em to $a0ment &or
overtime wor! nig%t s%i&t "iKerential! $remium
$a0 &or wor on %oli"a0s an" rest "a0! an"
$a0ment o& t%ese as well as t%e -4LA an" t%e S6LP
"ocuments w%ic% are not in res$on"ents
$ossession but in t%e custo"0 an" absolute control
o& $etitioners
+0 c%oosing not to &ull0 an" com$letel0
"isclose in&ormation an" $resent t%e
necessar0 "ocuments to $rove $a0ment o&
labor stan"ar" bene)ts "ue to res$on"ents!
44
$etitioners &aile" to "isc%arge t%e bur"en o&
$roo&
o Petitioners claime" t%at t%e cost o& &oo" an"
snacs $rovi"e" &acilities to res$on"ents s%oul"
%ave been inclu"e" in reconing t%e $a0ment o&
res$on"ents wages* 2%e0 claime" t%at t%ese
bene)ts ma"e u$ &or w%atever ina"eIuacies t%ere
ma0 %ave been in com$ensation*
2%e0 s$eci)call0 invoe" Sec* C an" D o&
Rule 66/A w%ic% allowe" t%e "e"uction o&
&acilities $rovi"e" b0 t%e em$lo0er t%roug%
an a$$ro$riate Lacilit0 .valuation 4r"er
issue" b0 t%e Regional Director o t%e D4L.*
o Petitioners also averre" t%at t%e0 give CQ o& t%e
gross income eac% mont% as incentives*
o S- rule" t%at t%e cost o& meals an" snacs
$ur$orte"l0 $rovi"e" to res$on"ents cannot be
"e"ucte" as $art o& res$on"ents minimum wage*
,%ile $etitioners submitte" Lacilit0
.valuation 4r"ers issue" b0 t%e D4L.
Regional 43ce! t%e cost o& meals in t%e
4r"er cannot be consi"ere" as a$$licable to
t%e res$on"ents* 2%e latter were never
interviewe" b0 t%e D4L. as to t%e Iualit0
an" Iuantit0 o& t%e &oo"! nor was it s%own
t%at t%e res$on"ents voluntaril0 acece$te"
t%em*
o .ven granting t%at meals an" snacs were
$rovi"e" an" in"ee" constitute" &acilities! suc%
&acilities coul" not be "e"ucte" wit%out com$liance
wit% certain legal reIuirements*
As state" in =abeJa v BLR-! t%e em$lo0er
sim$l0 cannot "e"uct t%e value &rom t%e
em$lo0eeOs wages wit%out satis&0ing t%e
&ollowing7 'a( $roo& t%at suc% &acilities are
customaril0 &urnis%e" b0 t%e tra"e8 'b( t%e
$rovision o& "e"uctible &acilities is
voluntaril0 acce$te" in writing b0 t%e
em$lo0ee8 an" 'c( t%e &acilities are c%arge"
at &air an" reasonable value*
2%ere was also uncontroverte" testimon0 o&
res$on"ents on recor" t%at t%e0 were
reIuire" to eat in t%e %otel an" restaurant
so t%at t%e0 will not go %ome an" t%ere is
no interru$tion in t%e services o& =a0on
Aotel ] Restaurant*
o 2%e S- also "i" not agree wit% t%e $etitioners t%at
t%e CQ gross income o& t%e establis%ment can be
consi"ere" as $art o& t%e res$on"ents wages*
LA7 <,%ile com$lainants! w%o were
em$lo0e" in t%e %otel! receiveT"U various
amounts as $ro)t s%are! t%e same cannot
be consi"ere" as $art o& t%eir wages in
"etermining t%eir claims &or violation o&
labor stan"ar" bene)ts* T2%eU Tso/Ucalle"
$ro)t s%are is in t%e nature o& s%are &rom
service c%arges c%arge" b0 t%e %otel* 2%is
is e5$laine" b0 Tres$on"entsU w%en t%e0
testi)e" t%at w%at t%e0 receive" are not
)5e" amounts an" t%e same are $ai" not
on a mont%l0 basis* Also! T$etitionersU &aile"
to submit evi"ence t%at t%e amounts
receive" b0 Tres$on"entsU as $ro)t s%are
are to be consi"ere" $art o& t%eir wages
an" %a" been agree" b0 t%em $rior to t%eir
em$lo0ment* Lurt%er! %ow can t%e
amounts receiveT"U b0 Tres$on"entsU be
consi"ere" as $ro)t s%are w%en t%e same
TareU base" on t%e gross recei$t o& t%e
%otelTGU Bo $ro)t can as 0et be "etermine"
out o& t%e gross recei$t o& an enter$rise*
Pro)ts are realiJe" a&ter e5$enses are
"e"ucte" &rom t%e gross income.
4C
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