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EN BANC
[G.R. NO. 148208, DECEMBER 15, 2004]
CENTRAL BANK (NOW BANGKO SENTRAL NG
PILIPINAS)
EMPLOYEES
ASSOCIATION,
INC.,
PETITIONER, vs. BANGKO SENTRAL NG PILIPINAS AND
THE EXECUTIVE SECRETARY, RESPONDENTS.
FACTS:
On July 3, 1993, R.A. No. 7653 (the New Central Bank
Act) took effect. It abolished the old Central Bank of the
Philippines, and created a new BSP.
On June 8, 2001, almost eight years after the effectivity
of R.A. No. 7653, petitioner Central Bank (now BSP)
Employees Association, Inc., filed a petition for prohibition
against BSP and the Executive Secretary of the Office of
the President, to restrain respondents from further
implementing the last proviso in Section 15(c), Article II of
R.A. No. 7653, on the ground that it is unconstitutional.
Article II, Section 15(c) of R.A. No. 7653 provides:
Section 15, Exercise of Authority -In the exercise of its
authority, the Monetary Board shall:
(c) Establish a human resource management system
which shall govern the selection, hiring, appointment,
transfer, promotion, or dismissal of all personnel. Such
system shall aim to establish professionalism and
excellence at all levels of the Bangko Sentral in accordance
with sound principles of management.
A compensation structure, based on job evaluation
studies and wage surveys and subject to the Boards
approval, shall be instituted as an integral component of the
Bangko Sentrals human resource development program:
Provided, That the Monetary Board shall make its own
system conform as closely as possible with the principles
provided for under Republic Act No. 6758 [Salary
Standardization Act]. Provided, however, that compensation
and wage structure of employees whose positions fall
under salary grade 19 and below shall be in accordance
with the rates prescribed under Republic Act No. 6758. The
thrust of petitioners challenge is that the above proviso
makes an unconstitutional cut between two classes of
employees in the BSP, viz: (1) the BSP officers or those
exempted from the coverage of the Salary Standardization
Law (SSL) (exempt class); and (2) the rank-and-file (Salary
Grade [SG] 19 and below), or those not exempted from the
coverage of the SSL (non-exempt class). It is contended
that this classification is a classic case of class legislation,
allegedly not based on substantial distinctions which make
real differences, but solely on the SG of the BSP
personnels position.
Petitioner also claims that it is not germane to the
purposes of Section 15(c), Article II of R.A. No. 7653, the
most important of which is to establish professionalism and
excellence at all levels in the BSP. Petitioner offers the
following sub-set of arguments:
RULING:
HELD:
August 5, 2014
PONENTE: Leonen
TOPIC: Section 10 of RA 8042 vis-a-vis Section 7 of RA
10022
FACTS:
Petitioner, Sameer Overseas Placement Agency,
Inc., is a recruitment and placement agency.
Respondent Joy Cabiles was hired thus signed a
one-year employment contract for a monthly salary of
NT$15,360.00. Joy was deployed to work for Taiwan
Wacoal, Co. Ltd. (Wacoal) on June 26, 1997. She alleged
that in her employment contract, she agreed to work as
quality control for one year. In Taiwan, she was asked to
work as a cutter.
Sameer claims that on July 14, 1997, a certain
Mr. Huwang from Wacoal informed Joy, without prior notice,
that she was terminated and that she should immediately
report to their office to get her salary and passport. She
was asked to prepare for immediate repatriation.
Joy claims that she was told that from June 26 to July 14,
1997, she only earned a total of NT$9,000.15 According to
her, Wacoal deducted NT$3,000 to cover her plane ticket to
Manila.
On October 15, 1997, Joy filed a complaint for
illegal dismissal with the NLRC against petitioner and
Wacoal. LA dismissed the complaint. NLRC reversed LAs
decision. CA affirmed the ruling of the National Labor
Relations Commission finding respondent illegally
dismissed and awarding her three months worth of salary,
the reimbursement of the cost of her repatriation, and
attorneys fees
ISSUE:
Whether or not Cabiles was entitled to the
unexpired portion of her salary due to illegal dismissal.
HELD:
YES. The Court held that the award of the threemonth equivalent of respondents salary should be
increased to the amount equivalent to the unexpired term of
the employment contract.
In Serrano v. Gallant Maritime Services, Inc. and
Marlow Navigation Co., Inc., this court ruled that
the clause or for three (3) months for every year of the
unexpired term, whichever is less is unconstitutional for
violating the equal protection clause and substantive due
process.
A statute or provision which was declared
unconstitutional is not a law. It confers no rights; it imposes
no duties; it affords no protection; it creates no office; it is
inoperative as if it has not been passed at all.
The Court said that they are aware that
the clause or for three (3) months for every year of the
unexpired term, whichever is less was reinstated in
Republic Act No. 8042 upon promulgation of Republic Act
No. 10022 in 2010.
Ruling on the constitutional issue
166 Ind., 511; Stearns vs. Barre, 73 Vt., 281; Wheeling, etc.
R. R. Co. vs. Toledo, Ry. etc. Co., 72 Ohio St., 368.)
was necessary.
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