Labor Law Cases

June 15, 2016 | Author: Sai Tolentino-de Leon | Category: N/A
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[ G.R. No. 177114, April 13, 2010 ]  MANOLO A. PEÑAFLOR, PETITIONER, PETITIONER, VS. OUTDOOR OUTDOOR CLOTHING MANUFACTURING MANUFACTURING CORPORATION,, NATHANIEL T. SYFU, PRESIDENT, MEDYLENE M. DEMOGENA, CORPORATION  FINANCE MANAGER, MANAGER, AND PAUL PAUL LEE, CHAIRMAN, CHAIRMAN, RESPONDENTS. RESPONDENTS.  R E S O L U T I O N  BRI ON,J. :

Peñaflor I no urDe ci s i o no fJ an ua r y2 1,2 01 0,weg r a n t e dp et i t i o ne rMa no l oPe ña flo r ' s( )p et i t i onf orr ev i ew er t i or ar i CA)d onc   a ndr e v e r s e dt h eCo ur to fAp pe al s( ec i s i o no fDe c emb er2 9,2 00 6a ndr e s ol u t i o no fMa r c h1 4, 2 00 7.Wef o un dt h atPe ña fl orh adbe enc on s t r u c t i v e l ydi s mi mi s s e df r o mh i se mp mp l o y me me ntwi t hr e s po nd en tOu t d oo r Ou t d oo rCl o t h i n g) Cl ot hi ngMa Manuf ac t ur i ngCor por a t i o n( .Out doorCl o t hi ngno ws eek sar ec ons i de r a t i onoft hi sr u l i ng. FACTUALBACKGROUND

Pe ña fl o rwa sh i r e dasp r o ba t i o na r yHRDMa na g ero fOu t d o orCl o t h i n gonSe p t e mb mb er2 ,1 99 9 .OnMa Ma r c h1 3,2 0 00 , mo r et h ans i xmo mo nt h sf r o mt h et i mehewa sh i r e d,Pe ña flo rl e ar n edt h atOu t d oo rCl o t h i n g' sPr e si d en t ,Na t h an i e lSy f u Sy f u) Buenaobr a)a ( ,a pp oi n t e dEd wi nBu en ao br a( st h ec o nc u r r e ntHRDa ndAc c o un t i n gMa na ge r .Af t e re nd ur i n g wh ath ec l a i me da sd i s c r i mi n at o r yt r e at me nta two r k , Pe ña flo rc o ns i d er e dt h ea pp oi n t me nto fBu en ao br at ohi s pos i t i onast hel as ts t r aw,andt husfil edhi si r r e voc abl er es i gnat i onf r om Out doorCl ot hi ngeff ec t i v eatt hec l os eof offic ehour sonMar c h15,2000.Het her eaf t erfi l edani l l eg al di s mi mi s s al c ompl ai ntwi t ht hel aborar bi t erc l ai mi ngt ha the hadbeencons t r uc t i v el ydi s mi mi s s ed.Thel abo ra r bi t e ra gr ee dwi t hPeñafl orandi s s uedade ci s i oni nhi sf a v oro n Au gu s t1 5,2 0 01 .

NLRC)r Onap pe al ,t h eNa t i o na lL ab orRe l a t i o nsCo mmi mm s s i o n( ev er s edt hel aborar bi t er ' sr u l i ngi ni t sSept ember24, 2 00 2d ec i s i o n.Wh enPe ña fl orq ue s t i o ne dt h eNL RC' sd ec i s i o nb ef o r et h eCA,t h ea pp el l a t ec ou r ta ffir ffir me dt h e er t i or ar i NL RC' sde ci s i o n.He nc e,Pe ña flo rfi l e dap et i t i o nf o rr e v i e wo nc   wi t ht heCour t .

TheCourt ' sJanuar y21,2010Deci si on

whet herPeñaflor ' sr esi gnat i onf r om Out door Ou rJ a nu ar y21 ,2 01 0d ec i s i o nf o cu se do nr e so l v i n gt h ei s s ueof

hel at t ermak i ngi tac ons t r uc t i v edi s mi mi s sal equi v al entt oani l l egal Cl ot hi ngwasvol unt ar yoraf orcedone ,t t he rPe ña florfil e dhi sr e s i gna t i onl e t t e rb ef or eora f t e rt he di s mi mi s sal .Wef oundi tc r u c i al t odet er mi newhe appoi nt mentofBuenaobr aasconcur r entHRDandAccount i ngManager .I ft her es i gnat i onwas b e f o r e  s ubmi t t ed Sy f u' sappoi nt mentofBuenaobr a,l i t t l es uppor twoul de xi s tf orPeñafl or ' sal l egat i onofc ons t r uc t i v e

di s mi mi s s al ,ast h eappoi n t mentwoul dme mer el ybei n t endedt oc ov ert hev ac anc yc r eat edbyPeñafl or ' sr es i gnat i on.I f h o we v e rt h er e s i g n at i o nwa sma ma dea   t h ea pp oi n t me nto fBu en ao br a ,t h enf a ct u al b as i sex i s t st oc on si d erPe ña flo r f t e r a sc on st r u ct i v e l ydi s mi mi s s edb yOu t d oo rCl o t h i n g,a st h er e si g na t i o nwo ul db ear e sp on set ot h eu na cc ep t a bl e app oi nt me ntofano t h erper s ont oapos i t i onhes t i l l oc c upi ed.

nd at e d  Pe ña flo rc l a i me dt h ath efi l e dh i su r es i g nat i onl e t t eront hev er ys amedat ehema madehi sr es i gna t i o neff ec t i v eMa r c h15 ,2 00 0.Ont h eo t h erh an d,Ou t d oo rCl o t h i n gc on t e nd edt h att h el e t t e rwa ss ub mi mi t t e do nMa r c h1,2 00 0.I n s up po r t o ft h i sal l e ga t i o n,Ou t d oo rCl o t h i n gp r e se nt e dt h r e eme mo mo r a nd a: a.

t heMa Mar ch1, 2000me memo mor andum f r om Syf ut oBuenaobr aappoi nt i ngt hel at t erast heconcur r entHRDand Account i ngManager ;

b.

t heMa Mar ch3, 2000me memo mor andum f r om Buenaobr at oSyf uac cept i ngt heappoi nt ment ;and

c.

t heMa Mar ch10,2000officeme memo mor andum f r om Syf ui nf or mi ngal l conc er nedofBuenaobr a' snewappoi nt ment .

Ouranal ysi soft her ecor dsl edust oconcl udet hatPeñaflorsubmi t t edhi sr esi gnat i ononMar ch15,2000asa r esponset ot heappoi nt mentofBuenaobrat ohi spost .

Weconsi der edsuspi ci ousOut doorCl ot hi ng' saboveme memo mor andabecauset hesewer eonl ypr esent edt ot he NLRCona ppe al ,butnotbe f or et hel a bora r b i t e r .   Th eywe r eno te v enme me nt i o ne di nOu Ou t d oo rCl o t h i n g' spo si t i o n

paperfi l edwi t ht hel aborar bi t er .Thef ai l ur et opr es entt hem andt oj us t i f yt hi sf ai l ur ear es i gni fi cantc ons i der i ngt hat t hes ear ec l i nc hi ngpi ec esofev i denc et hatal l owedt heNLRCt oj us t i f yt her e ver s al oft hel aborar bi t er ' sdec i s i on.

Thesur r oundi ngci r cumst ancesoft hei ssuanceoft heseme memo mor andaal socastdoubt sont hei r aut hent i ci t y . Al t h ou ght h eme mo mo r a nd ad i r e ct l yc on ce r n e dPe ña flo r ,h ewa sne v eri n f o r me do ft h ei rc on t e nt sn org i v e n

c o pi e s .Wh i l et h eMa r c h10 ,2 00 0me mo mo r a nd um b or es i g na t u r e sofi t sr e c i p i e nt s ,t h er ewe r enoma ma r k so nt h eMa r c h1 and3,20 00me memor andai n di c at i ngt hatt hei ri nt en dedr ec i p i ent sac t ual l yr e ce i v edt hem ont hedat et he ywer ei s s ue d. I twa sl i k e wi s es t r a ng et h atPe ña flo r ' sr e si g na t i o na ndBu en ao br a ' sap po i n t me ntwo ul dbek ep tu nd erwr a psf r o mt h e s up po se dfi l i n go fPe ña flo r ' sr e si g na t i o nl e t t e ro nMa Ma r c h1 ,2 00 0u pt oSy f u ' si s s ua nc eoft h eMa r c h1 0,2 00 0o ffic ffic e me mo mo r a nd um,s i n cet h et u r n o v ero fr e sp on si b i l i t i e san dwo r kl o adal o net oas uc c es s ori nas ma ma l l c omp an ys uc has Ou t d oo rCl o t h i n gwo ul dh av ep r e v en t e dt h er e si g na t i o nf r o mb ei n gk e ptas ec r e t .

I twa shi ghl yunl i k e l yf orPe ña flort or e si gnonMa r c h Weal s oc ons i der edt het i mel i nes sofPeñafl or ' sr es i gnat i on . 1,2000,ascl ai medbyOu Out doorCorpor at i on,consi der i ngt hathewoul dhavebecomear egul aremp mpl oyeeby t hatt i me. I td i dno ta pp ea rl o gi c al t h ata ne mp mp l o y eewo ul dt e nd erh i sr e si g na t i o no nt h ev e r ys a meda me yhewa s

e nt i t l e db yl a wt obec on si d er e dar e gu l a re mp mp l o y ee ,e sp ec i a l l ywh endo wn si z i n gwa st a ki n gp l a cean dh ec ou l dha v e a v ai l edofi t sbenefi t si fs epar at edf r o mt hes er v i c esasar egul arempl o y ee .

Cons i de r i ngt hea bo v ec i r c ums t a nc e s,a nda ppl y i ngba si cl a borl a w pr i nc i pl e s,t heCour tr ul e dt ha tPe ña flor

Wet h usr e v e r s e dt h eCA' sde c i s i o n wasconst r uct i vel ydi smi mi ssedf r om hi semp mpl oymentwi t hOu Out doorCl ot hi ng. andr es ol ut i onandr e i ns t at edt hedec i s i onoft hel aborar bi t erwhi c hf ou ndt her e sp ondent s( Ou t doorCl o t hi ngandi t s c or por at eoffic er s )j oi nt l yandsev er al l yl i abl et opa yPeñafl orbac kwages ,i l l egal l ydeduc t eds al ar i es ,pr opor t i onat e t h

13  mo mo nt hpa y , a t t o r n ey ' sf e es ,mo r a la ndex e mp mp l a r yd ama ge s . THEMO MOTI ONFORRECONSI DERATI ON

Out do orCl ot hi ngno w mo v esf o rt h er ec ons i der a t i onoft heCour t ' sJ an uar y21,2010Dec i s i on.I tal l eg est ha tt he Co ur te r r e di nd ec l a r i n gt h atPe ña flo rwa sc on s t r u ct i v e l ydi s mi mi s s edf r o mh i semp l o y me me ntd es pi t eh i ss ub mi mi s s i o no fa n " i r r ev oc abl er es i gnat i on"l et t er .I tal s oc l ai mst hatt heCour t er r edi nhol di ngal l t her es pondent sj oi nt l yands ev er al l y l i a bl et opa yPe ña flo rt h es al a r i e sa ndd ama ge sa wa r d e di nhi sf a v or .

Ou t d oo rCl o t h i n gma i n t a i n st h atPe ña flo r ' sr e si g na t i o nwa sv o l u nt a r y ; Pe ña flo rr e si g ne db ec au sehewa nt e dt o d i s as s oc i a t eh i ms el ff r o m ac omp an yt h atwa se x pe r i e nc i n gs e v er efi na nc i a ld i ffic ul t yan dt of o cu so nh i st e ac hi n gj o b. r r e vocabl y  r e s i gn  I ndeed,Peñafl or ' sownl et t ers t at i nghi sdec i s i ont oi f r o mh i semp l o y me me ntwi t hOu t d oo rCl o t h i n g

wa sac l e ari n di c at i o nt h ath ewa sn otf o r c edt ol e av et h ec omp an y .

Ou t d oo rCl o t h i n ga l s or e l i e sh ea v i l yont h et h r e eme mo mo r a n dai tp r e se nt e db ef o r et h eNL RCt os up po r t i t sc l a i mo f Peñafl or ' sv ol unt ar yr es i gnat i on.Al t houghbel at edl yfi l ed,Out doorCl ot hi ngcl ai mst her ei snot hi ngi nt her u l eswhi c h d i s al l o wst h efi l i n go fn ewd oc ume nt sbe f o r et h eNL RC." Su bmi s s i o no fa dd i t i o na ld oc ume nt s ,a l b ei tb el a t e dl ydo ne , s houl dal wa y sbel oo keduponwi t hl i ber al i t yes pec i al l ywhent hesamewasi mpor t antf oran yf ac t ual de t er mi nat i onof [ 1]

t hecas e. "

Ouranal ysi soft her ecor dsl edust oconcl udet hatPeñaflorsubmi t t edhi sr esi gnat i ononMar ch15,2000asa r esponset ot heappoi nt mentofBuenaobrat ohi spost .

Weconsi der edsuspi ci ousOut doorCl ot hi ng' saboveme memo mor andabecauset hesewer eonl ypr esent edt ot he NLRCona ppe al ,butnotbe f or et hel a bora r b i t e r .   Th eywe r eno te v enme me nt i o ne di nOu Ou t d oo rCl o t h i n g' spo si t i o n

paperfi l edwi t ht hel aborar bi t er .Thef ai l ur et opr es entt hem andt oj us t i f yt hi sf ai l ur ear es i gni fi cantc ons i der i ngt hat t hes ear ec l i nc hi ngpi ec esofev i denc et hatal l owedt heNLRCt oj us t i f yt her e ver s al oft hel aborar bi t er ' sdec i s i on.

Thesur r oundi ngci r cumst ancesoft hei ssuanceoft heseme memo mor andaal socastdoubt sont hei r aut hent i ci t y . Al t h ou ght h eme mo mo r a nd ad i r e ct l yc on ce r n e dPe ña flo r ,h ewa sne v eri n f o r me do ft h ei rc on t e nt sn org i v e n

c o pi e s .Wh i l et h eMa r c h10 ,2 00 0me mo mo r a nd um b or es i g na t u r e sofi t sr e c i p i e nt s ,t h er ewe r enoma ma r k so nt h eMa r c h1 and3,20 00me memor andai n di c at i ngt hatt hei ri nt en dedr ec i p i ent sac t ual l yr e ce i v edt hem ont hedat et he ywer ei s s ue d. I twa sl i k e wi s es t r a ng et h atPe ña flo r ' sr e si g na t i o na ndBu en ao br a ' sap po i n t me ntwo ul dbek ep tu nd erwr a psf r o mt h e s up po se dfi l i n go fPe ña flo r ' sr e si g na t i o nl e t t e ro nMa Ma r c h1 ,2 00 0u pt oSy f u ' si s s ua nc eoft h eMa r c h1 0,2 00 0o ffic ffic e me mo mo r a nd um,s i n cet h et u r n o v ero fr e sp on si b i l i t i e san dwo r kl o adal o net oas uc c es s ori nas ma ma l l c omp an ys uc has Ou t d oo rCl o t h i n gwo ul dh av ep r e v en t e dt h er e si g na t i o nf r o mb ei n gk e ptas ec r e t .

I twa shi ghl yunl i k e l yf orPe ña flort or e si gnonMa r c h Weal s oc ons i der edt het i mel i nes sofPeñafl or ' sr es i gnat i on . 1,2000,ascl ai medbyOu Out doorCorpor at i on,consi der i ngt hathewoul dhavebecomear egul aremp mpl oyeeby t hatt i me. I td i dno ta pp ea rl o gi c al t h ata ne mp mp l o y eewo ul dt e nd erh i sr e si g na t i o no nt h ev e r ys a meda me yhewa s

e nt i t l e db yl a wt obec on si d er e dar e gu l a re mp mp l o y ee ,e sp ec i a l l ywh endo wn si z i n gwa st a ki n gp l a cean dh ec ou l dha v e a v ai l edofi t sbenefi t si fs epar at edf r o mt hes er v i c esasar egul arempl o y ee .

Cons i de r i ngt hea bo v ec i r c ums t a nc e s,a nda ppl y i ngba si cl a borl a w pr i nc i pl e s,t heCour tr ul e dt ha tPe ña flor

Wet h usr e v e r s e dt h eCA' sde c i s i o n wasconst r uct i vel ydi smi mi ssedf r om hi semp mpl oymentwi t hOu Out doorCl ot hi ng. andr es ol ut i onandr e i ns t at edt hedec i s i onoft hel aborar bi t erwhi c hf ou ndt her e sp ondent s( Ou t doorCl o t hi ngandi t s c or por at eoffic er s )j oi nt l yandsev er al l yl i abl et opa yPeñafl orbac kwages ,i l l egal l ydeduc t eds al ar i es ,pr opor t i onat e t h

13  mo mo nt hpa y , a t t o r n ey ' sf e es ,mo r a la ndex e mp mp l a r yd ama ge s . THEMO MOTI ONFORRECONSI DERATI ON

Out do orCl ot hi ngno w mo v esf o rt h er ec ons i der a t i onoft heCour t ' sJ an uar y21,2010Dec i s i on.I tal l eg est ha tt he Co ur te r r e di nd ec l a r i n gt h atPe ña flo rwa sc on s t r u ct i v e l ydi s mi mi s s edf r o mh i semp l o y me me ntd es pi t eh i ss ub mi mi s s i o no fa n " i r r ev oc abl er es i gnat i on"l et t er .I tal s oc l ai mst hatt heCour t er r edi nhol di ngal l t her es pondent sj oi nt l yands ev er al l y l i a bl et opa yPe ña flo rt h es al a r i e sa ndd ama ge sa wa r d e di nhi sf a v or .

Ou t d oo rCl o t h i n gma i n t a i n st h atPe ña flo r ' sr e si g na t i o nwa sv o l u nt a r y ; Pe ña flo rr e si g ne db ec au sehewa nt e dt o d i s as s oc i a t eh i ms el ff r o m ac omp an yt h atwa se x pe r i e nc i n gs e v er efi na nc i a ld i ffic ul t yan dt of o cu so nh i st e ac hi n gj o b. r r e vocabl y  r e s i gn  I ndeed,Peñafl or ' sownl et t ers t at i nghi sdec i s i ont oi f r o mh i semp l o y me me ntwi t hOu t d oo rCl o t h i n g

wa sac l e ari n di c at i o nt h ath ewa sn otf o r c edt ol e av et h ec omp an y .

Ou t d oo rCl o t h i n ga l s or e l i e sh ea v i l yont h et h r e eme mo mo r a n dai tp r e se nt e db ef o r et h eNL RCt os up po r t i t sc l a i mo f Peñafl or ' sv ol unt ar yr es i gnat i on.Al t houghbel at edl yfi l ed,Out doorCl ot hi ngcl ai mst her ei snot hi ngi nt her u l eswhi c h d i s al l o wst h efi l i n go fn ewd oc ume nt sbe f o r et h eNL RC." Su bmi s s i o no fa dd i t i o na ld oc ume nt s ,a l b ei tb el a t e dl ydo ne , s houl dal wa y sbel oo keduponwi t hl i ber al i t yes pec i al l ywhent hesamewasi mpor t antf oran yf ac t ual de t er mi nat i onof [ 1]

t hecas e. "

Si nc ei twasPeñafl orwhofi l edt her e si gnat i onl e t t e r ,Out doo rCl o t hi ngpos i t st hatt h ebur denofpr o vi n gt hatt he r e si g na t i o nwa si n v ol u nt a r yr e s t sonPe ña flo r .Th ee v i d en cep r e se nt e db yPe ña flo rs i mp l yf a i l e dt oo v er c omet h i s bur de nan dt h us ,hi sr e si gnat i onshoul dbedeemedv ol un t ar yandsho ul dabs ol v eOu Ou t doo rCl o t hi ngofan yl i abi l i t yf o r i l l egal di s mi mi s s al .

Addi t i onal l y ,Out doorCl ot hi ngas ser t st hatt heCour ter r edi nr ei ns t at i ngt hel abora r b i t er ' sdec i s i onwhi c hor der edal l  j nt l yands e v er al l y t h er e s po nd en t soi   l i a bl ef ort hesu msduet ms oPeñafl or .Ther ewasno t hi ngi nt hedec i s i o noft he Co ur to re v e nt h os eo ft h eCAa ndt h ea dmi n i s t r a t i v eb od i e sfi nd i n gOu t d oo rCl o t h i n g' sc or p or at eo ffic ffic er sSy f u , Demog en a) Lee)t Medy l eneDemo mogena( ,a ndPa ul L ee( oha veper s onal l yac t edi nbadf ai t horwi t hmal i c ewi t h r es pec tt oPeñafl or ' sr es i gnat i on.As sumi ngOut doorCl ot hi ngi si ndeedl i abl et oPeñafl orf ori l l egal di s mi mi s sal ,i twoul d bel egal l youtofl i net oc ons i deri t scor por at eoffic er ssol i dar i l yl i abl ewi t ht hec ompan ywi t houtafi ndi ngofbadf ai t hor mal i c eont hei rpar t . THECOU OURT' SRULI NG

Ot hert hant h ei s s ueofs ol i dar yl i abi l i t yoft her es ponden t si nt hepr es entc as e,Ou t doorCl o t hi ngr ai s esnone w mat t er t h atwoul dme mer i tar ec ons i der at i onoft heCour t ' sJ anuar y21,2010Dec i s i on.

Peñafl or ' sr es i gnat i onl et t err ead: Mr .Nat hani el Y.Sy f u Ch i e fCo r p or a t eOffic e r Ou t d oo rCl o t h i n gMa nu f a ct u r i n gCo r p o r a t i o n

Si r : Pl e as eac c ep tmyi r r e v oc ab l er e si g na t i o ne ffe ct i v eatt h ec l o seofo ffic ffic eonMa Ma r c h1 5,2 00 0.

Thanky ou.

Ver yt r ul yyour s ,

[ 2]

Manol oA.Peñaflor

Whi l et hel e t t e rs t a t e st ha tPe ña flor ' sr e si gna t i onwa si r r e voc abl e ,i tdoe snotne ce ss ar i l ysi gni f yt ha ti twa s a l s ov ol unt a r i l ye x ec ut e d.   Pr ec i s el ybec aus eoft heat t enda nthos t i l eanddi s c r i mi nat or ywor k i ngen vi r onment ,

Peña flo rd ec i dedt oper manent l yse v erhi st i eswi t hOut do orCl ot hi ng.Thi sf a l l ssq uar e l ywi t hi nt hec on ce ptof c ons t r uc t i v edi s mi mi s sal t hatj ur i s pr udenc edefi nes ,amongot her s ,asi n vol unt ar i l yr e s i gnat i onduet ot hehar s h,hos t i l e, andunf av or abl ec ondi t i onssetb yt heempl oy er .I tar i s eswhenac l eardi s cr i mi nat i on,i ns ens i bi l i t y ,ordi s dai nb yan [ 3]

e mp mp l o y e re x i s t sa ndha sbe c o meun me be ar a bl et ot h ee mp mp l o y e e .  Thega ugef orc ons t r uc t i v edi s mi mi s s al i swhe t hera r e as on ab l ep er s oni nt h ee mp mp l o y ee ' spo si t i o nwo ul df e el c omp el l e dt og i v eu ph i semp l o y me me ntu nd ert h ep r e v ai l i n g [ 4]

c i r c ums t a nc es .  Wi Wi t ht heappoi n t mentofBue naobr at ot hepos i t i onhet hens t i l l oc c upi ed,Pe ñafl orf el tt ha thewa s b ei n ge as e do uta ndt h i sp er c e pt i o nma dehi md ec i d et ol e av et h ec o mp mp an y .

Thef ac toffi l i ngar e si gnat i onl et t eral onedoesnots hi f tt hebur denofpr o vi ngt hatt heempl o yee' sdi s mi mi s sal wasf ora [ 5]

r av .Av e s c o  j us tandv al i dc aus ef r om t heempl oy ert ot heempl oy ee.I nMo ,  wer u l e dt h ats ho ul dt h ee mp mp l o y er i nt er pos et hedef ens eofr es i gnat i on,i ti ss t i l l i nc umbentupont heempl o yert opr ov et hatt heempl o yeev ol unt ar i l y r e si g ne d.T oo urmi n d,Ou t d oo rCl o t h i n gd i dn otd i s c ha r g et h i sbu r d e nb yb el a t e dl ypr e se nt i n gt h et h r e eme mo mo r a nd ai t r e l i e do n.I ft h es eme mo mo r a nd awe r eau t h en t i c ,t h eywo ul dha v es ho wnt h atPe ña flo r ' sr e si g na t i o np r e ce de dt h e

a pp oi n t me nto fBu en ao br a .Th us ,t h eywo ul db ee v i d en cesu pp or t i n gt h ec l a i mo fv o l u nt a r i n es sofPe ña flo r ' s r e si g na t i o na nds ho ul dha v eb ee np r e se nt e de ar l yoni nt h ec as e-a nyl a wy e ro rl a y ma ma nb ys i mp l el o gi cc anbe e x p ec t e dt ok no wt h i s .Ou t d oo rCl o t h i n gh owe v e rr a i s e dt h em o nl yb ef o r et h eNL RCwh ent h eyha dl o s tt h ec a s e bef or et hel aborar bi t erandnowc onv eni ent l yat t r i but est hef ai l ur et odos ot oi t sf or merc ouns el .Out ddorCl ot hi ng' s bel at ede xpl anat i onasex pr e ss edi ni t smo mo t i onf orr e co ns i der at i on,t oourmi nd,i sas ub mi mi s s i onwec anno tac c ep tf or s er i ou scons i der at i on.Wefi ndi ts i gni fi c an tt hatPeñafl orat t ac k edt hebe l at edpr es ent at i onoft hes eme memo r a nd ai nhi s An s we rt oOu Ou t d oo rCl o t h i n g' sMe Me mo mo r a nd ao fAp pe al wi t ht h eNL RC,b utr e c or d sdono ts h owt h atOu t d oo rCl o t h i n g e vers at i s f ac t or i l ycount er edPeñafl or ' sar gument s .I twasnotunt i l wepoi nt edoutOut doorCl ot hi ng' sf ai l ur et oe xpl ai n i t sbe l a t e dp r e se nt a t i o no ft h eme mo mo r a n dai nou rJ a nu ar y21 ,2 01 0d ec i s i o nt h atOu t d oo rCl o t h i n go ffe r e da  j us t i fi c at i on.

What ev erdoubt st hatr emai ni nourmi ndsont hec r edi bi l i t yoft hepar t i es 'e vi denc es houl d,b yt hel a w' sdi c t at e,be s et t l edi nf a v oroft hewor k i ngma man.Ourr ul i n gt hatPeñ afl orwasc ons t r uc t i v el ydi s mi mi s s edf r om hi sempl o yme ntwi t h Out do orCl ot hi ngt her e f or est ands .

Wemo modi f y ,howev er ,ourr ul i ngont heex t entofl i abi l i t yofOut doorCl ot hi ngandi t sc or es pondent s .Ac or por at i on,as aj ur i di c al ent i t y ,ma yac tonl yt hr oughi t sdi r ec t or s ,offic er sandempl o yees .Obl i gat i onsi nc ur r edasar es ul toft he di r ec t or s 'andoffic er s 'ac t sascor por at eagent s ,ar enott hei rper s onal l i abi l i t ybutt hedi r ec tr es pons i bi l i t yoft he c or por at i ont heyr e pr es ent .Asar ul e,t heyar eonl ysol i dar i l yl i abl ewi t ht hec or por at i onf ort hei l l egal t er mi nat i onof s er v i c eso fe mpl mp o y eesi ft he yac t edwi t hmal i c eorbadf ai t h.I nt hepr e se ntc as e,mal i c eorb adf ai t hont h epa r to ft he Sy f u ,De mo mo ge na ,a ndL ee ,a sc or p or a t eo ffic ffic er sofOu t d oo rCl o t h i n g,wa sn ots uffic i e nt l ypr o v ent oj u s t i f yar u l i n g [ 6]

hol di ngt hem s ol i dar i l yl i abl ewi t hOut doorCl ot hi ng.

WHEREFORE,wePARTI ALLYGRANT  FY  r es pond ent s ' mo t i onf orr ec ons i d er at i ona ndMODI o urDe ci s i o nd at e d

J an ua r y21 ,2 01 0.Re sp on de ntOu t d oo rCl o t h i n gi she r e byor d er e dt op aype t i t i o ne rt h ef o l l o wi n g: a.

backwages   c omput edf r om t h et i meo fc o ns t r uc t i v edi s mi mi s s al upt ot het i meo ft hefi nal i t yoft heCour t ' s

Re so l ut i on; b.

s epa r a t i onpa y ,duet ot hes t r ai nedr el at i onsbet weent hepar t i es ,equi v al entt ot hepet i t i oner ' sonemont h' s

s al ar y ; c .

,a sc omput edb yt h el aborar bi t er ; i l l e ga l l yde duc t e ds al a r yf ors i xda ys

d.

pr opor t i onat e1 3  mont mo hpay;

e.

at t or ney' sf ees,mor al andexempl ar ydama magesi nt heamo mountofP100, 000. 00;and

f .

cos t sagai nst t her espondent cor por at i on.

t h

SOOR ORDERED.

[ G.R. No. 126703, December 29, 1998 ] GANDARA MILL SUPPLY AND MILAGROS SY, PETITIONERS, VS. THE NATIONAL LABOR  RELATIONS COMMISSION AND SILVESTRE GERMANO, RESPONDENTS.  D E C I S I O N  PURI SI MA,J. : [ 1]

Atbari sas pec i al c i v i l ac t i onf orCer t i or ar i underRul e65oft heRev i s edRul esofCour t ,as sai l i ngt heRes ol ut i onof [ 2]

[ 3]

NLRC)p t h eNa t i o na lL ab orRe l a t i o nsCo mmi s s i o n( r o mu l g a t e donMa y2 2 ,1 99 6,a n dNL RCRe s o l u t i o ndat edJ ul y 2 3,1 99 6,d en y i n gp et i t i o ne r ’ smo t i o nf o rr e co ns i d er a t i o ni nNL RCNCR0 00 21 65 39 4.

F r o mt h er e co r d sonh an d,i ta pp ea r st h at :

Mi l a gr o sSy , o wn ero fGa nd ar aMi l l Su pp l y , a tNo .7 08Ga nd ar aSt . ,Bi n on do ,Ma ni l a ,wa st h er e s po nd en ti nNL RC n owt h ep r i v a t er e s po nd en t Ca s eNo .0 20 16 53 9 4i n s t i t u t e db ySi l v e s t r eGe r ma no( ) .

OnFebr uar y6,1995,t hepr i v at er es pondent ,wi t houtnot i f y i nghi sempl o yer ,Mi l agr osSy ,di dnotr epor tf orwor kunt i l Fe br u ar y11 ,1 99 5.L i k ea nyex pe ct a ntf a t h er ,h ec ho set ob en ea rh i swi f ewh owa st h ena bo utt od el i v e r .Th ewi f e g av ebi r t honFe br u ar y12 ,1 99 5.Up onpr i v a t er e sp on de nt ’ sr e qu es t ,Mi l a gr o sSye x t e nd edso mefin an ci a la ss i s t a nc e t ot h eGe r ma noc o up l e .

Thep et i t i ona v er si nt eral i at hatGandar aMi l l Suppl yi sas mal l bus i nes se nt er pr i s ewi t honl yt wo( 2)empl o y ees , i n cl u di n gt h eh er e i np r i v a t er e sp on de nt ,t od oma nu al wo r k . Wi t hi n ad eq ua t ema np owe r ,t h ea bs en ceofj u s to ne wor k erc anspel l unt ol ddi ffic ul t i esi ni t soper at i ons .Mat t er sbec ameev enwor s ewhenpr i v at er e s pon dent ,wi t ho ut i n f or mi nghi semp l o y er ,wasabs entf oral ongt i me,s omuc hs ot hatt hef or meri n cu r r edt hei r eoft hel at t er .T wo( 2) week saf t er ,p r i v at er es ponden tr e t ur nedt odut y ,andt ohi ssur pr i s e,h ewasme tb yhi sempl o y ert op er s onal l yt el l hi m t h ats o me on eh adbe enhi r e dt ot a k eh i spl a c e.Hewa sa dv i s e d,h owe v e r ,t h ath ewa st ober e a dmi t t e di nJ u ne1 99 6.

OnF eb r u ar y27 ,1 99 5,ac a s eo fi l l e ga ld i s mi s s a lwa sc o mme nc e db yt h ep r i v a t er e s po nd en twi t ht h eDe pa r t me nto f LaborandEmpl oyment .

T ob uype ac e,p et i t i o ne ro ff er e dP5 , 0 00 . 0 0b utt on oa v ai l .Th eo ffe rwa sfl at l yr e j e ct e db yp r i v a t er e sp on de nt .Wh en c onc i l i at i oneffor t spr o vedf ut i l e,t heLaborAr bi t erd i r ec t edt hepar t i est os ubmi tt hei rp os i t i onpaper sonorb ef or eApr i l 2 8,1 99 5,wh i c hde ad l i n ewa sex t e nd edt oMa y5,1 99 5.I nhi sOr d ero fMa y9,1 99 5,L ab orAr b i t e rF ac u nd oL .L ed a l as toppor t uni t yt ofi l e/ s ubmi tt hei r( s i c )Pos i t i onPaperwi t hi ns ev en( 7)d ay sf r om r ec ei pther eof ga vepet i t i onera" o t her wi s et hei r( s i c )r i ghtt obehear da r e( s i c )d eeme dwai v edandt hi sc as ewi l l bedec i dedont hebas i soft he [ 4]

d oc u me nt so nfi l e . "

Des pi t er ec ei ptoft heaf or es ai dOr der ,howev er ,pet i t i oners t i l l f ai l edt oc ompl yt her ewi t h,pr ompt i ngt heLaborAr bi t er t oh an dd ownad ec i s i o no nJ a nu ar y29 ,1 99 6,d i s p os i n g,t h us : "   de ci s i o ni she r e byr e nd er e do r d er i n gr e sp on de nt / sGa nd ar aMi l l Su pp l yan d/ o rMi l a gr o sSyt op ay WHEREFORE, c o mp l a i n an tSi l v e s t r eGe r ma not h es u mo f SI XTYFI VETHOUSAND SI XHUNDREDEI GHTYFI VEPESOSAND   r e pr e se nt i n gs ep ar a t i o np ay , b ac k wa ge s,SL I Pa ndat t o r n ey ’ sf e ea si s c us s edan dc omp ut e d 9 0/ 1 00( P6 5, 6 85 . 9 0) a bo v e. " OnMa r c h4,1 99 6,p et i t i o ne ra pp ea l e ds ai dde ci s i o nt ot h eNL RC.T ot h ea pp ea l ,a nOp po si t i o nwa si n t e r p o se do n Mar ch15,1996.

OnMa y2 2,1 99 6,t h eNL RCd i s mi s s edp et i t i o ne r ’ sap pe al f o rf a i l u r et op os tac as ho rs u r e t ybo nd .

Theappeal wa spr edi c at edont hesubmi s s i ont hatpe t i t i on er ’ sbus i nes si ss mal l ,onwhi c hi n v ok edgr oundpet i t i one r s ou gh te x emp t i o nf r o mp os t i n gab on d.Sh ou l di t spr a y erf o re x e mp t i o no fab on db ed en i e d,p et i t i o ne ra s k edf o ra t l e as tt we nt y( 2 0)d ay st opu tu ps uc hb on d.

Thep et i t i onat t ac k st heJ ul y23 ,1996Res ol ut i onofpubl i cr es ponde nt ,affir mi ngt hedec i s i onoft heL aborAr bi t er d at e dJ a nu ar y2 9,1 99 6.OnAu gu s t1 4,1 99 6,aMo t i o nf o rEx e c u t i o nwa spr e s en t e db ypr i v a t er e s po nd en t .NL RC e nt e r e di t sj u dg me nto nAu gu s t2 6,1 99 6.

OnSe pt e mb er6 ,1 99 6,p r i v a t er e sp on de nts en ti nanEx p ar t eMo t i o nf o rEx e c ut i o n,wh i c hwa sgr a nt e d.Th e c o r r e s po nd i n gWr i to fEx e c u t i o ni s s u edonSe pt e mb er1 3,1 99 6.

Thei s suespos i t edf orr es ol ut i on:

FI RST,   di dt hepubl i cr es pondentac twi t hgr av eabus eofdi s cr et i oni ndi s mi s si ngpet i t i oner ’ sappeal andi nnotgi v i ng

pe t i t i onerac ha nc et opr o v et hatt hepr i v at er e spo ndentwasno ti l l eg al l ydi s mi s s edbutwasmer el ys us pe ndedf or a ba nd on i n gh i sj o b? ;a nd

SECOND,   di dt hepubl i cr es pondentac twi t hg r a v eabu seofdi s c r e t i oni na war di ngt ot hepr i v at er es ponden tt he XTYFI VETHOUSANDSI XHUNDRED EI GHTYFI VE AND90/ 00( P65, 685 . 90) , amountofSI   whi chamount

pet i t i onera s sai l sase x ces si v e?

T obesur e,t hep et i t i one rwasaff or dedac ha nc et os howt h att hepr i v at er e s po ndentwasno ti l l eg al l ydi s mi s s ed. Unf or t unat el y ,pet i t i onerf ai l edt odi s char gei t sbur denofpr oof .

I nal ongl i neofc as es ,t heCour thasc ons i s t ent l yr u l edt hat ,fi ndi ngsoff ac tb yquas i j udi c i al agenc i esl i k et heNLRC ar ec onc l us i v eupont hec our ti nt heabs enc eofpr oofofgr a veer r ori nt heappr ec i at i onoff ac t s .Pet i t i oner ’ sbar e al l eg at i ont ha ti twasdeni edt her i gh tt obeh ear di sneg at e db yt heLa borAr bi t er ’ sex t ens i onofmuc hl e ni enc yt o pe t i t i onerb yal l o wi ngt hel at t ert os ubmi tapos i t i onpaperonAp r i l 28,1995,t henonMa y5 ,1995,an dfi nal l y ,s ev en ( 7)da y sf r om r ec ei p toft heOr derda t edMa y9,1 995.Ge ner a l l y ,r eg l ement a r yp er i odsar est r i c t l yobs er v edt ot heend t h ator der l yadmi ni s t r at i onofj us t i c ebes af egua r d ed.I nt h ec as eund erc ons i de r a t i on,t hepubl i cr es ponde nthadbeen qui t el i ber al i nobs er v i ngandenf or c i ngt her ul es .Cons equent l y ,pet i t i oner ’ spr ot es t at i onofdeni al ofoppor t uni t yt obe hea r di sbar r eno fan yf a ct ual bas i s .Thepr i nc i pl eofl ac hesfi nd sawi der oom f orappl i c at i onh er e .Lac hes ,i na gen er al s ens e,i sf ai l u r eorn egl ec tf oranunr eas onabl el engt hoft i met odot hatwh i c hb ye x er c i s i ngdu edi l i gen ce c oul dors houl dha v ebeendon eear l i er ;i ti snegl i genc eo ro mi s s i ont oas s er tar i ghtwi t hi nar eas ona bl et i me war r ant i ngapr es umpt i ont hatt hepar t yent i t l edt oas ser ti thasei t herabandonedordec l i nedt or ai s ei t .Thedoc t r i ne ofl ac hesor" s t a l edemands "i sbas edupongr oundsofpubl i cpol i c ywhi c hr equi r ef ort hepeac eofs oc i e t y , di s cour agementofs t al ec l ai ms .Andunl i k et hes t at ut eofl i mi t at i ons ,i ti snotamer eques t i onoft i mebuti spr i nc i pal l y T j a mv . Si b on gh an oy , aques t i onofi nequi t yorunf ai r nes sorper mi t t i ngar i ghtorc l ai mt obeenf or c edoras ser t ed. (i  23SCRA29 ) .Soal s o,i nt h eOr d er ,d at e dMa y9,1 99 5,r e sp on de ntCo mmi s s i o nd ec l a r e di nc l e ara ndun eq ui v o ca l t er mst hat" f ai l ur et ofi l eapos i t i onpape ri sdeemedawai v eroft her i ghtt ob ehe ar dandt h atdec i s i on swi l l b eba sed ont hep os i t i onp apers ubmi t t ed. "Ev i dent l y ,f ormak i n ggo odhi ssai dOr de r ,t heLab orAr bi t erc anno tb ef aul t edf or ac t i ngar b i t r a r i l y.

Nei t herc angr a v ee r r orbeas c r i bedt or es pond entNLRCf orhandi n gdo wni t sde ci s i onwi t ho utpe t i t i oner ’ sPos i t i on Paper .Byi t si nac t i on,pet i t i onerwaspr oper l yc ons i der edt ohav ewai v edorf or f ei t edt her i ghtt or ef ut epr i v at e r es ponden t ’ ss t anc e.I ndeed,pe t i t i onerc anno tno w beper mi t t e dt obel at ed l yc ompl ai nofadeni al ofduepr oc es s .

Thatpe t i t i onerwasno tr epr es ent edb yal a wy eri nal l t heaf or es ai dpr oc ee di ngswass ol el yat t r i but a bl et oi t sown neg l i genc eori nat t ent i ont ot hec as e.Wh i l et hec our tha shel dt h atr e pr es en t at i onb yal a wy eri saf undament al r i ght ofl i t i gant s ,p et i t i onerhasnobodyt obl amebuti t s el ff ori t sf ai l ur et os ec ur et hes er v i c esofc ouns el r es ul t i ngt ot he di s mi s s al ofi t sc as e.I nt hecas eunders c r u t i n y ,p et i t i one rwasr epr es ent edbyanonl a wy e r ,RamonFl or es ,whowas pr es entf r o mt hebe gi nni ngoft hec as ebutf ai l edt oeffic i ent l yf ol l o wupt hec as eunt i l t hepr omul g at i onofj udgment . Whi l et her i ghtt oduepr oc es si sav ai l abl et oal l t hepar t i es ,i tdoesnotc ount enanc es el f s er v i ngex c us esdev i s edt o under mi neor der l yadmi ni s t r at i onofj us t i c e.

Af t eracar ef ul s t udy , andat hor oughex ami nat i ono ft hepl ead i ngsandsupp or t i ngdoc ument s ,i tap pear sdec i s i v el y c l ea rt ha tpr i v at er e s pondentSi l v es t r eGer manowasi l l eg al l ydi s mi s s ed.Whi l eapr ol ongedabs enc ewi t houtl ea v e ma yc ons t i t ut easaj us tc aus eofdi s mi s s al ,i t si l l eg al i t ys t emsf r o mt h eno nobs er v anc eofduepr oc es s .Appl y i ngt he We nPh i l Do ct r i n eb yan al o gy , wh er edi s mi s s al wa sn otp r e c ed edb yt h et wi nr e q ui r e me nto fn ot i c ea ndh ea r i n g,t h e l egal i t yoft hedi s mi s sal i nques t i on,i sunderhea vycl oudsandt her ef or ei l l egal .Whi l ei tc annotbededuc eduner r i ngl y f r om t her e cor dsonhandt hatpr i v at er e spondentwasr eal l ydi s mi s sed,t her ei snocl eari ndi c at i ont hatt hel at t erwas t ober ei ns t at e d.I nf ac t ,s i nc et hei nc ep t i onoft hec as e,whatpe t i t i on ermer el yendea v or edwa st oc ompr o mi s ef ora me as l ys um o fP5 , 0 00 . 0 0,a ndn ome nt i o no ft a k i n gr e s po nd en tb ac kt oh i sj o bwa se v e ro ff er e da sp ar to ft h ed ea lt o endt h ec ont r o v er s y .Whatc anbesu r mi s edf r o m pe t i t i oner s ’ soff ert or eadmi tt hepr i v at er es ponden t ,wasn ot hi ngbu t ap ol i t eg es t u r ec ou ch edi nwo r d si n t e nd edt oma k et h ei mp ac to fh i sso c a l l e ds us pe ns i o nl e ssse v er e .I n v ok i n gt h e p l i g hto fawo r k i n gma n,wh er e" n owo r k , n op ay "i st h er u l eo ft h umb ,t h ec ou r t c an no ts an ct i o na no v ere x t e nd ed s us pens i o n.TheLabo rCodee xpl i c i t l ypr o vi de s,t hat: " Nopr e vent i v es us pens i ons hal l l as tl ongert hant hi r t y( 3 0)da y s.Theempl o y ers hal l t her eaf t err ei ns t at et hewor k ert o hi sf or mero rs ubs t ant i al l yeq ui v al entpo si t i o nort heempl o y erma ye x t en dt heper i odofs us pens i onp r o v i d edt hat d ur i n gt h ep er i o do fe x t e ns i o n,h ep ay st h ewa ge sa ndo t h erb en efi t sdu et ot h ewo r k e r .I ns uc hc as e,t h ewo r k e rs h al l n otb eb ou ndt or e i mb ur s et h ea mo un tp ai dt oh i md ur i n gt h ee x t e ns i o ni ft h ee mp l o y erd ec i d esaf t e rc o mp l e t i o no ft h e  [ 5] hea r i ngt odi s mi s st hewor k er . "

I nt h i sc as e,t h es up po se ds us pe ns i o nwa se x pe ct e dt ol a s tf o rmo r et h ant h ep er i o da l l o we db yl a w,t h usma ki n gt h e s us pens i onc ons t i t ut i v eofani l l egal di s mi s sal .Ther ef or e,t heLaborAr bi t er ’ scont ent i oni suphel db yt heCour t .

Gr a nt i n ga r g ue nd ot h atp r i v a t er e sp on de nt ’ sa bs en ceen ge nd er e du nd uedi ffic ul t yt ot h es mo ot hop er a t i o nso f pe t i t i oner ’ sbus i nes s ,c ons i de r i ngt hepr e di c amentofr es ponden tSi l v es t r eGer ma no,hi sdi s mi s s al i sun war r ant ed.I n hol di ngt hec ons t i t u t i on al man dat eofpr o t ec t i ont ol abor ,t her i gi dr ul esofpr oc edur ema ys ome t i mesbedi s pens ed wi t ht ogi v er oom f orc omp as s i on.Th edoc t r i neof" c ompa ss i onat ej us t i c e"i sappl i c abl eun dert hepr emi s es ,pr i v at e r e sp on de ntb ei n gt h eb r e ad wi n ne ro fh i sf a mi l y . " Th eSo ci a lJ us t i c ep ol i c yma nd at e sac omp as s i o na t ea t t i t u det o wa r d t hewor k i ngc l as si ni t sr e l at i ont omanagement .I nc al l i ngf ort hepr ot ec t i ont ol abor ,t heCons t i t ut i ondoesnot c on do newr o ng do i n gb yt h ee mp l o y ee ,i tn ev e r t h el e ssur g esamo de r a t i o no ft h es an ct i o nst h atma ybeap pl i e dt ohi m [ 6]

i nt h el i ghtoft heman ydi s adv ant ag est hatwei g hhea vi l yonhi ml i k eanal bat r os so nhi snec k . "

Thet i mel i nes sofp et i t i one r ’ sappea li sani s s uewhi c ht hi sc our tendea v or st opas su pon.Wh i l et her ul ego v er ni n gt he i n st antPe t i t i ondoesno tfi xaper i odwi t hi nwhi c ht ofil eanappeal ," t h ey ar ds t i c kt ome as ur et hes ea son abl enes sofa Pet i t i onf orCer t i or ar i i st her e as onabl enes soft hedur at i onoft i met hate xpi r edf r om t hec ommi s si onoft heac t [ 7]

c ompl ai nedof ,t ot hei ns t i t ut i onoft hepr o ce edi ngst oannu lt hes ame. "  Th ec ou r t h adt h eo cc as i o nt oh ol dt h at wh er en ol a wc anb ea pp l i e d,r e so r t t ot h ef u nd ame nt a ll a wc anb eh ad .Th eCo ns t i t u t i o np r o v i d est h at: " Al l per s onsshal l hav et her i ghtt oas peedydi s pos i t i onoft hei rc as esbef or eal l j udi c i al ,quas i j udi c i al and [ 8]

admi ni s t r at i v ebodi es . "

T ak i ngi nt oac countt hei nt er v al oft i met hatel aps edf r om t her ec ei ptoft heas sai l edRes ol ut i onb ypet i t i oner ,t ot he t i met hec our tr ec ei v edt hepr es entpet i t i on,ani nt er r egnum ofal mos tt hr ee( 3)mont hs ,t hei r r es i s t i bl ec onc l us i oni s t h att h ePe t i t i onwasno tfi l e dont i me.

Al l t hi ngss t udi e dl yc ons i der e d,wear eoft hevi e wt hatpubl i cr es ponden tNLRCdi dno tac twi t hgr a v eabus eof di s c r e t i oni na war di ngt op r i v at er es pondentt heamountofP65, 685. 90whi c hi sno tatal l e x ce ss i v eunde rt hef a ct s andci r c ums t anc esoft hec as e.Ti meandag ai n,t hec our the l dt hatf ac t ua lfi nd i ngsbyt heLaborAr bi t erar et ot r eat ed asfinal abs entan ys ho wi ngt hatheer r edi nhi sev al uat i on.Thef ami l i ar i t ywi t ht hepar t i e s,c i r c ums t a nc esa nd opp or t uni t yt oo bs er v et hei rdemeanori ss ome t hi ngt hec our tdi dno tha v et hep r i v i l eget owi t nes s .

Un t e na bl ei spe t i t i o ne r ’ sco nt e nt i o nt h att h es ai da mo un ta wa r d e d,r e pr e se nt i n gb ac k wa ge s,s ep ar a t i o np aya nd at t or ne y’ sf eei sex c es s i v eandt ant amountt oadepr i v at i onofpe t i t i oner ’ spr oper t ywi t houtd uepr oc es sofl a w.Onc ea fi ndi ngofi l l e ga ldi s mi s s al i ses t abl i s hed ,anawar dofs epar at i onpa yan dbac k wagesi si nor derandbi ndi ngupont he c our t ,unl es st hecont r ar yi spr ov ed.Thecour ts har est heLaborAr bi t er ’ sobs er v at i onandr a t i oc i nat i ont hatt he amountoft heque st i oneda war di sno te x ces s i v ei nl i ghtofpr e v ai l i ngec onomi cc ondi t i ons .

WHEREFORE, SMI SSED    t hePet i t i onf orCer t i or ar i underc ons i der at i oni sher ebyDI ont hegr ounds ,t hat:( 1)I twas

fi l edoutoft i me;( 2)I ti sdev oi dofmer i t ;and( 3)i twasi nt er pos edf orpur pos esofdel a y .

nt ot o; RMEDi Ac c or d i n gl y , t h eNL RCRe so l u t i o no fJ ul y23 ,1 99 6i sAFFI   t h ewr i to fe x ec ut i o ni s s ue do nSe pt e mb er DENI ED. 13,1996uphel d;andpet i t i oner ’ spr a yerf orar es t r ai ni ngor der

Nop r o no un c e me nta st oc o s t s .

SOORDERED.

[ G.R. No. 163419, Februar 13, 2008 ] TSPIC CORPORATION, Petitioner, v. TSPIC EMPLOYEES UNION !FF"#, re$reentin%  MARIA FE FLORES, FE CAPISTRANO, AMY DURIAS, &'(  CLAIRE EVELYN VELE),  *ANICE OLAGUIR, *ERICO ALIPIT, GLEN BATULA, SER *OHN HERNANDE),  RACHEL NOVILLAS, NIMFA ANILAO, ROSE SUBARDIAGA, VALERIE CARBON, OLIVIA EDROSO, MARICRIS DONAIRE, ANALYN A)ARCON, ROSALIE RAMIRE),  *ULIETA ROSETE, *ANICE NEBRE, NIA ANDRADE, CATHERINE YABA,  DIOMEDISA ERNI, &+(  MARIO SALMORIN, LOIDA COMULLO, &(  MARIE ANN DELOS   SANTOS, &-(  *UANITA YANA, n/ SU)ETTE DULAY, Re$on/ent.  D E C I S I O N  VELASCO JR. ,J. :

Thepat ht o war dsi ndus t r i al peac ei sat wowa yst r ee t .Fun dament al f ai r nes sandpr o t ec t i ont ol abors ho ul dal wa y s g ov e r nd ea l i n gsb et we enl a bo ra ndma na ge me nt .Se emi n gl yc o nfl i c t i n gp r o v i s i o nss ho ul dbeha r mo ni z edt oar r i v eat ani nt er pr et at i ont hati swi t hi nt hepar amet er soft hel a w,c ompas si onat et ol abor ,y et ,f ai rt omanagement .

I nt hi sPe t i t i o nf orRe vi e w onCer t i or ar i unde rRul e45,pe t i t i onerTSPI CCor por at i on( TSPI C)s eek st oannul andse t [ 5]

[ 6]

a si d et h eOc t o be r2 2,2 00 3De ci s i o n  an dAp r i l 2 3,2 00 4Re so l u t i o n  o ft h eCo ur to fAp pe al s( CA)i nCAG. R.SP [ 7]

No .6 86 16 ,wh i c ha ffir me dt h eSe p t e mb er1 3,2 0 01De c i s i o n  ofAc c r edi t edVol un t ar yAr bi t r at orJ os ephusB. J i me ne zi nNa t i o na lCo nc i l i a t i o na ndMe di a t i o nBo ar dCa s eNo .J BJ AVA2 00 10 75 7.

TSPI Ci seng agedi nt h ebus i nes sofde si gni ng,man uf ac t ur i ng,andmar k et i ngi n t egr a t edci r c ui t st oser v et he c o mmu ni c a t i o n,a ut o mo t i v e ,d at ap r o c es s i n g,a nda er o s pa c ei n du s t r i e s .Re s po nd en tTSPI CEmp l o y e esUn i o n( FFW) ( Uni on ) , ont heot herhan d,i st her egi s t er edbar g ai ni ngage ntoft h er ank andfi l eempl o y eesofTSPI C.The r es ponden t s ,Mar i aFeFl or es ,FeCapi s t r ano ,AmyDur i as ,Cl ai r eEv el y nVel ez ,J ani c eOl agui r ,J er i c oAl i pi t ,Gl en Ba t u l a ,Se rJ o hnHe r n a nd ez ,Ra ch el No v i l l a s,Ni mf aAn i l a o,Ro seSu ba r d i a ga ,Va l e r i eCa r b o n,Ol i v i aEd r o so , Ma r i c r i sDo na i r e ,An al y nAz ar c on ,Ro sa l i eRa mi r e z,J ul i e t aRo se t e ,J an i c eNe br e ,Ni aAn dr a de ,Ca t h er i n eY ab a, Di o me di s aEr n i ,Ma r i oSa l mo r i n ,L oi d aCo mu l l o ,Ma r i eAn nDe l o sSa nt o s,J ua ni t aYa na ,a ndSu ze t t eDu l a y ,a r eal l member soft heUni on.

[ 8]

I n19 99 ,T SPI Ca ndt h eUn i o ne nt e r e di n t oaCo l l e c t i v eBa r g ai n i n gAg r e eme nt( CBA)  f o rt h ey e ar s20 00t o2 00 4. TheCBAi n cl udedap r o v i s i onony ear l ys al ar yi nc r e as ess t ar t i ngJanuar y2000unt i l J anuar y2002 .Se ct i on1,Ar t i c l e Xo ft h eCBAp r o v i d es ,a sf o l l o ws : Se c t i o n1 .Sa l a r y /Wa geI n c r e as e s . – –Emp l o y e esc ov e r e db yt h i sAg r e eme nts h al l b eg r a nt e ds a l a r y / wa gei n c r e as e s asf ol l ows :

a) Efective January 1, 2000, all employees on regular status and within the bargaining unit on or beore said date shall be granted a salary increase equivalent to ten percent 10!) o their basic monthly salary as o "ecember #1, 1$$$% b) Efective January 1, 2001, all employees on regular status and within the bargaining unit on or beore said date shall be granted a salary increase equivalent to twelve 12!) o their basic monthly salary as o "ecember #1, 2000% c) Efective January 1, 2002, all employees on regular status and within the bargaining unit on or beore said date shall be granted a salary increase equivalent to eleven percent 11!) o their basic monthly salary as o "ecember #1, 2001%

Th ewa ges al a r yi n cr e as eo ft h efi r s ty e aro ft h i sAg r e e me nts ha l l b eo v era nda bo v et h ewa ge / s al a r yi n cr e as e, i n c l u di n gt h ewa gedi s t o r t i o na dj u s t me nt ,g r a n t e db yt h eCOMP ANYo nNo v e mb er1 ,1 99 9a sp erWa geOr d e rNo .

NCR07 .

Th ewa ge / s a l a r yi n c r e a s esf o rt h ey e a r s20 0 1a n d2 0 02s h a l l b ed e eme di n c l u s i v eoft h ema n da t e dmi n i mu m wa ge i n c r e as e sun de rf u t u r eWa geOr d er s ,t h atma yb ei s s u edaf t e rWa geOr d erNo .NCR0 7,a nds ha l l b ec o ns i d er e da s c or r e ct i o no fa nywa gedi s t o r t i o nt h atma yha v eb ee nb r o ug hta bo utb yt h es ai df u t u r eWa geOr d er s .Th ust h e wa ge / s a l a r yi n c r e as e si n20 01an d2 00 2s h al l b ed ee me da sc omp l i a nc et of u t u r ewa geor d er sa f t e rWa geOr d erNo . NCR07 . Co ns eq ue nt l y ,o nJ an ua r y1 ,2 00 0,a l l t h er e gu l a rr a nk a nd fi l ee mp l o y ee so fTSPI Cr e ce i v e da1 0% i n cr e as ei nt h ei r s al a r y . Ac c or di ngl y , t hef ol l o wi ngni ne( 9 )r es pondent s( fi r s tgr oup)whower eal r ea dyr egul arempl o y eesr ec ei v edt he s ai di nc r eas ei nt hei rs a l ar y :Ma r i aFeFl or es ,FeCapi s t r a no,AmyDur i a s,Cl ai r eEv el y nVel ez ,J ani c eOl agui r ,J er i c o [ 9]

Al i p i t ,Gl e nBa t u l a ,Se rJ o hnHe r n a nd ez ,a ndRa ch el No v i l l a s.

Th eCBAa l s op r o v i d edt h ate mp l o y ee swh oa cq ui r er e gu l a re mp l o y me nts t a t u swi t h i nt h ey e arb uta f t e rt h ee ffe ct i v i t y ofapar t i c ul ars al ar yi nc r eas es hal l r ec ei v eapr opor t i onat epar toft hei nc r e as euponat t ai nmentoft hei rr egul ar s t a t u s.Se c.2oft h eCBAp r o v i d es : SECTI ON2 .Re gu l a r i z at i o nI n cr e as e. – –Ac o v er e dd ai l yp ai demp l o y eewh oa cq ui r e sr e gu l a rs t a t u swi t h i nt h ey e ar s ubs eque ntt ot h eeff ec t i v i t yofapar t i c ul ars al ar y / wag ei nc r eas ement i onedi nSec t i on1abo v es hal l begr ant eda s al a r y / wagei nc r eas ei npr opor t i on at ebas i sasf ol l o ws :

&egulari'ation (eriod

Equivalent ncrease

* 1st +uarter

100!

* 2nd +uarter

-!

* #rd +uarter

-0!

* .th +uarter

2-!

Th us ,ada i l yp ai demp l o y e ewh ob ec o me sar e gu l a re mp l o y e ec o v e r e db yt h i sAg r e eme nto nl yo nMa y1,2 00 0,i . e . , d ur i n gt h es e c on dq ua r t e ra n ds u bs e qu en tt ot h eJ a nu ar y1,2 00 0wa gei n c r e as eu nd ert h i sAg r e eme nt ,wi l l b e ent i t l edt oawagei nc r ea seequi v al e ntt os ev ent y fi v eper c ent( 7 5%)oft e npe r c e nt( 10%)o fhi sbas i cpa y .I nt he s a mema nn er ,a ne mp l o y e ewh oa c qu i r e sr e gu l a rs t a t u so nDe c emb er1 ,2 00 0wi l l b ee nt i t l e dt oas a l a r yi n c r e as e equ i v al entt ot went y fi v eper c ent( 25%)oft enper c ent( 10%)ofhi sl as tbas i cpa y .

Ont h eo t h erh an d,a nymo nt h l y p ai demp l o y eewh oa cq ui r e sr e gu l a rs t a t u swi t h i nt h et e r mo ft h eAg r e eme nts ha l l b e gr ant edr egul ar i z at i oni nc r e as eequi v al entt o10% ofhi sr egul arbas i cs al ar y . Th enonOc t o be r6 ,2 00 0,t h eRe gi o na lT r i p ar t i t eWa gean dPr o du ct i v i t yBo ar d ,Na t i o na lCa pi t a lRe gi o n,i s s ue dWa ge [ 1 0]

Or derNo.NCR08   ( WO No .8 )wh i c hr a i s e dt h eda i l ymi n i mu m wa gef r o m Ph P2 23 . 5 0t oPh P2 50e ffe c t i v e No v e mb er1 ,2 00 0.Co nf o r ma bl y , t h ewa ge sof1 7p r o ba t i o na r ye mp l o y e es ,n ame l y :Ni mf aAn i l a o,Ro s eSu ba r d i a ga , Va l er i eCar bo n,Ol i v i aEdr os o,Mar i c r i sDonai r e,Anal y nAz ar c on,Ros al i eRami r ez ,J ul i e t aRos et e,J ani c eNebr e,Ni a An dr a de ,Ca t h er i n eY ab a,Di o me di s aEr n i ,Ma r i oSa l mo r i n ,L oi d aCo mu l l o ,Ma r i eAn nDe l o sSa nt o s ,J u an i t aY an a, a ndSu z et t eDu l a y( s e c on dgr o up ) ,we r ei n c r e as e dt oPh P2 50 . 0 0eff ec t i v eNo v e mb er1 ,2 00 0.

[ 1 1 ]

Onv a r i o usd at e sd ur i n gt h el a s tq ua r t e ro f2 00 0,t h ea bo v en ame d1 7e mp l o y e esat t a i n edr e gu l a re mp l o y me ntand r ec ei v ed25% o f10% oft hei rs al ar i esasgr a nt edundert hepr o vi s i ononr egu l ar i z at i oni nc r eas eu nderAr t i c l eX,Sec . 2oft heCBA.

I nJ an u ar y2 0 01 ,T SPI Ci mp l e me n t e dt h en e w wa g er a t e sasma n da t e db yt h eCBA.Asar e s u l t ,t h en i n ee mp l o y e e s ( fi r s tgr oup) ,whower es eni ort ot heabo v el i s t edr ec ent l yr egul ar i z edempl o y ees ,r ec ei v edl es swages .

OnJ an ua r y1 9,2 00 1,af e w we ek sa f t e rt h es a l a r yi n c r e as ef o rt h ey e ar2 00 1b ec a meeff ec t i v e ,T SPI C’ sHu ma n [ 1 2]

Re s o ur c e sDe pa r t me ntn o t i fi e d2 4emp l o y e e s ,  na mel y :Mar i aFeFl or es ,J ani c eOl a gui r ,Rac hel No vi l l as ,Fe Ca pi s t r a no ,J e r i c oAl i p i t ,AmyDu r i a s,Gl e nBa t u l a ,Cl a i r eEv e l y nVe l e z,Se rJ o hnHe r n a nd ez ,Ni mf aAn i l a o,Ro se Subar di ag a,Va l er i eCar bon,Ol i v i aEdr os o,Mar i c r i sDonai r e,Ana l y nAz ar c on,Ros al i eRami r e z,J ul i e t aRo se t e, J a ni c eNe br e ,Ni aAn dr a de ,Ca t h er i n eY ab a,Di o me di s aEr n i ,Ma r i oSa l mo r i n ,L oi d aCo mu l l o ,a ndMa r i eAn nDe l o s Sa nt o s,t h atd uet oaner r o ri nt h ea ut o ma t e dp ay r o l l s y s t e m,t h eywe r eov e r p ai dan dt h eo v er p ay me ntwo ul dbe ded uc t edf r om t hei rs al ar i esi nas t agger edbas i s ,s t ar t i ngFebr uar y20 01.TSPI Ce x pl ai n edt hatt hec or r ec t i onoft h e e r r o ne ou sc omp ut a t i o nwa sb as edont h ec r e di t i n gp r o v i s i o no fSe c.1 ,Ar t .Xo ft h eCBA.

Th eUn i o n,o nt h eo t h erh an d,a ss er t e dt h att h er ewa sn oe r r o ra n dt h ed ed uc t i o no ft h ea l l e ge do v er pa y me ntf r o m e mp l o y ee sc on s t i t u t e dd i mi n ut i o no fp ay . Th ei s s uewa sb r o ug htt ot h eg r i e v an cema ch i n er y , b utTSPI Ca ndt h e Un i o nf a i l e dt or e ac hanag r e e me nt .

Co ns eq ue nt l y ,TSPI Ca ndt h eUn i o na gr e edt ou nd er g ov o l u nt a r yar b i t r a t i o no nt h es ol i t a r yi s s ueo fwh et h ero rn ot t h ea ct soft h ema na ge me nti nma ki n gd ed uc t i o nsf r o mt h es al a r i e so ft h ea ffe ct e de mp l o y ee sc on st i t u t e dd i mi n ut i o n ofp ay .

OnSe pt e mb er1 3,2 00 1,Ar b i t r a t o rJ i me ne zr e nd er e daDe ci s i o n,h ol d i n gt h att h eu ni l a t e r a ld ed uc t i o nma deb y [ 1 3]

a l l o  TSPI Cv i o l a t e dAr t .1 00   o ft h eL ab o rCo de .Th ef r e ad s : WHEREFORE,i nt h el i g hto ft h el a wo nt h ema t t e ra ndont h ef a c t sa dd uc e di nev i d en c e,j u dg me nti sh er e by r e nd er e di nf a v oro ft h eUn i o na ndt h en ame di n di v i d ua le mp l o y ee sa ndag ai n s tt h ec omp an y ,t h er e byor d er i n gt h e [ TSPI C]t opa yasf ol l o ws :

1) to the si/teen 1) newly regulari'ed employees named above, the amount o (12,.2%2. a month or a total o (11#,0%1 or nine $) months or (,111%2 or each o them as well as an additional (12,.2%2. or all), or ($0%1. or each), or every month ater #0 eptember 2001, until ull payment, with legal interests or every month o delay3

2) to the nine $) who were hired earlier than the si/teen 1)3 also named above, their respective amount o entitlements, according to the 4nion5s correct computation, ranging rom (110%22 per month or ($$1%$ or nine months) to (.-0%- a month or (.,0--%22 or nine months), as well as corresponding monthly entitlements ater #0 eptember 2001, plus legal interests until ull payment,

#) to u'ette "ulay, the amount o (0%1. a month or (-,.#%2), as well as corresponding monthly entitlements ater #0 eptember 2001, plus legal interest until ull payment,

.) 6ttorney5s ees equal to 10! o all the above monetary awards%

Th ec l a i mf o re x e mp l a r yd ama ge si sde ni e df o rwa nto ff a ct u al b as i s .

Thep ar t i esar ehe r e bydi r ec t edt ocompl ywi t ht hei rj o i ntv ol unt ar yc ommi t mentt oab i debyt hi sAwar dandt hus , s ubmi tt ot hi sOffic ej oi nt l y ,awr i t t enpr oofofv ol un t ar yc ompl i anc ewi t ht hi sDECI SI ONwi t hi nt e n( 1 0)da y saf t ert he

fi nal i t yher eof .

[ 1 4]

SOORDERED.

T SPI Cfi l e daMo t i o nf o rRe c on s i d er a t i o nwh i c hwa sde ni e di naRe s ol u t i o nd at e dNo v e mb er2 1,2 00 1.

Ag gr i e v e d,TSPI Cfi l e db ef o r et h eCAape t i t i o nf o rr e v i e wu nd erRu l e43do c k et e da sCAG. R.SPNo .6 86 16 .Th e i nt ot o  app el l at ecour t ,t hr oughi t sOc t obe r22,2 003Dec i s i on,di s mi s s edt hepe t i t i onandaffir med t hedec i s i onoft he v o l u nt a r ya r b i t r a t o r .Th eCAd ec l a r e dTSPI C’ sc omp ut a t i o na l l o wi n gPh P2 87a sd ai l ywa ge st ot h en ewl yr e gu l a r i z ed e mp l o y e est ob ec o r r e c t ,n ot i n gt h att h ec o mp ut a t i o nc o nf o r me dt oWO No .8a ndt h ep r o v i s i o nsoft h eCBA. Ac c or d i ngt ot heCA,TSPI Cf ai l edt oc on vi nc et heappel l at ecour tt hatt hededuc t i onwa sar e s ul tofasy s t em er r o ri n t h ea ut o ma t e dp a y r o l l s y s t e m.Th eCAe x p l a i n edt h atwh enWO No .8t o oke ff ec to nNo v e mb er1 ,2 00 0,t h e c o n c er n ede mp l o y e e swe r es t i l l p r o ba t i o na r yemp l o y e e swh owe r er e c e i v i n gt h emi n i mu m wa g eo fPh P2 23 . 5 0.Th e CAs a i dt h a te ff ec t i v eNo v e mb er1 ,2 00 0,s a i demp l o y e e ss ho ul dha v er e c e i v e dt h emi n i mu m wa geofPh P2 5 0.Th e CAh el dt h atwh enr e s p on de nt sb ec a mer e gu l a re mp l o y e e so nNo v e mb er2 9,2 00 0,t h e ys h o ul dbea l l o we dt h es a l a r y i n cr eas egr ant edt he m und ert h eCBAatt her a t eof25% of10% oft hei rbas i cs al ar yf ort hey ear2000;t her e af t er ,t he [ 1 5]

1 2% i n c r e as ef o rt h ey e ar2 00 1a ndt h e1 0% i n c r e as ef o rt h ey e ar2 00 2s h ou l dal s obema deap pl i c a bl et ot h em.

TSPI Cfi l e daMo t i o nf o rRe co ns i d er a t i o nwh i c hwa sd en i e db yt h eCAi ni t sAp r i l 2 3,2 00 4Re so l u t i o n.

TSPI Cfi l edt hei ns t antpe t i t i onwhi c hr a i s est hi sso l ei s s uef orourr es ol ut i on:Doe st heTSPI C’ sdec i s i ont odedu ctt he a l l e ge do v er pa y me ntf r o mt h es al a r i e so ft h ea ffe ct e dme mb er soft h eUn i o nc on st i t u t ed i mi n ut i o no fb en efi t si n v i ol at i ono ft heLab orCode ?

T SPI Cma i n t a i n st h att h ef o r mu l apr o po s edb yt h eUn i o n,a do pt e db yt h ea r b i t r a t o ra n da ffir me db yt h eCA,wa s fl awed,i n as muc hasi tc ompl e t el ydi s r eg ar dedt he“ c r edi t i ngpr o vi s i on”c ont ai n edi nt hel as tpar agr aphofSec .1,Ar t . Xoft heCBA.

Wefi n dT SPI C’ sc on t e nt i o nme r i t o r i o us . ACol l e ct i v eBa r g a i ni ngAgr e e me nti st hel a w be t we ent hepa r t i e s

I ti sf ami l i arandf undament al doc t r i n ei nl aborl a wt hatt heCBAi st hel a w be t wee nt hepar t i esandt he yar eobl i gedt o [ 1 6]

l s. ,I nc.v .SamahanngMal ay angManggagawasaHonda c ompl ywi t hi t spr o vi s i ons .  Wes a i ds oi nHondaPhi : Ac ol l ec t i v ebar g ai ni n gagr e eme ntorCBAr ef er st ot heneg ot i at e dc ont r ac tbe t weenal egi t i mat el aboror g an i z at i on a ndt h ee mp l o y erc on ce r n i n gwa ge s,h ou r so fwo r ka n da l l o t h ert e r msa ndc on di t i o nso fe mp l o y me nti nab ar g ai n i n g uni t .Asi nal l c ont r ac t s ,t hepar t i esi naCBAma yes t abl i s hs uc hs t i pul at i ons ,c l aus es ,t er msandcondi t i onsast he y ma ydeem c on v eni entpr o vi d edt hes ear eno tc ont r ar yt ol a w,mor al s ,goodc us t oms ,publ i cor d erorpubl i cpol i c y . Th us ,wh er et h eCBAi sc l e ara ndun amb i g uo us ,i tb ec o me st h el a wb et we ent h ep ar t i e san dc o mp l i a nc et h er e wi t hi s [ 1 7 ]

ma nd at e db yt h ee x pr e sspo l i c yoft h el a w.

Mor eo v er ,i ft het er msofac ont r ac t ,asi naCBA,a r ec l earandl ea v enodoubtupont h ei nt ent i onoft h ec ont r ac t i ng [ 1 8 ]

par t i es ,t hel i t er almeani ngoft hei rs t i pul at i onsshal l c ont r ol .  Ho we v er ,s ome t i me s,a si nt h i sc as e,t h ou ght h e pr o vi s i onsoft heCBAs eem c l eara ndunambi guous ,t hepar t i ess ome t i mesar r i v eatc onfl i c t i ngi nt er pr e t a t i o ns .He r e , T SPI Cwa nt st oc r e di tt h ei n c r e as egr a nt e db yWO No .8t ot h ei n c r e as egr a nt e du nd ert h eCBA.Ac c o r d i n gt oTSPI C, i ti sspec i fi c al l ypr o vi dedi nt heCBAt hat“ t hes al ar y / wagei nc r eas ef ort hey ear2001s hal l bedeemedi nc l us i v eo ft he ma nd at e dmi n i mu m wa gei n c r e as e su nd erf u t u r ewa geor d er st h atma yb ei s s u e da f t e rWa g eOr d erNo .7 . ”Th e Uni on,ont heot herhand,i ns i s t st hatt he“ c r edi t i ng”pr o vi s i onoft heCBAfi ndsnoappl i c at i oni nt hepr es entc as e,

s i n c ea tt h et i meWO No .8wa si s s u ed ,t h ep r o ba t i o na r ye mp l o y e es( s e c on dg r o up )we r eno ty e tc o v e r e db yt h eCBA, par t i c ul ar l ybyi t sc r edi t i ngpr ov i s i on.

[ 1 9]

t t er anec at Asagener al r ul e,i nt hei nt er pr et at i onofac ont r ac t ,t hei nt ent i onoft hepar t i esi st obepur s ued. Li s pi r i t usvi v i fi c at .Ani ns t r umentmus tbei nt er pr et edac cor di ngt ot hei nt ent i onoft hepar t i es .I ti st hedut yoft hec our t s t opl ac eapr ac t i c al andr eal i s t i ccons t r uc t i onuponi t ,gi v i ngduec ons i der at i ont ot hec ont ex ti nwhi c hi ti snegot i at ed [ 2 0 ]

andt h epur pos ewhi c hi ti si nt en dedt oser v e.   Abs ur dandi l l ogi c al i nt er pr et at i onsshoul dal s obeav oi ded. Co ns i d er i n gt h att h ep ar t i e sh av eu ne qu i v o ca l l ya gr e edt os ub st i t u t et h eb en efi t sgr a nt e du nd ert h eCBAwi t ht h os e g r a nt e du nd erwa geor d er s ,t h ea gr e eme ntmu stp r e v a i l a ndbegi v e nf u l l e ffe ct .

Par agr aph( b)ofSec .1ofAr t .Xoft heCBApr o vi desf o rt hegene r a lagr e eme ntt hat ,eff ec t i v eJa nuar y1,20 01,al l empl o y eesonr egul a rs t at usandwi t hi nt hebar g ai ni ngun i tonorb ef or es ai dda t es hal l begr a nt edas al ar yi nc r eas e e qu i v a l e ntt ot we l v e( 1 2 %)o ft h ei rb as i cmo nt h l ys al a r ya sofDe ce mb er3 1,2 00 0.Th e1 2% s al a r yi n cr e as ei s gr ant edt oal l emp l o y eeswho( 1 )ar er e gul aremp l o y eesand( 2 )ar ewi t hi nt hebar ga i ni nguni t .

Sec ondpar agr aphof( c )p r o vi dest hatt hes al ar yi n cr eas ef ort hey ear20 00s hal l no ti nc l udet h ei nc r eas ei ns al ar y g r a nt e du nd erWO No .7an dt h ec o r r e c t i o no ft h ewa gedi s t o r t i o nf o rNo v e mb er1 99 9.

Thel as tpar agr aph,ont heo t herhand,s t a t est hesp ec i fi ccondi t i ont h att h ewage/ s al ar yi nc r eas esf ort hey ear s2001 a nd2 00 2s ha l l b ede eme di n c l u s i v eo ft h ema nd at e dmi n i mu m wa gei n c r e as e su nd erf u t u r ewa geor d er s ,t h atma y b ei s s ue da f t e rWO No .7 ,a nds ha l l b ec on si d er e da sc or r e ct i o no ft h ewa ged i s t o r t i o nst h atma ybebr o ug hta bo utb y t h es a i df u t u r ewa geo r d er s .Th us ,t h ewa ge / s a l a r yi n c r e as e si n2 00 1a nd2 00 2s h al l b ed ee me da sc o mp l i a nc et o f u t u r ewa geor d er sa f t e rWO No .7 .

Par agr aph( b)i sage ner a lpr o vi s i onwhi c hal l o wsas al ar yi nc r eas et oal l t h os ewhoar equal i fi ed .I t ,ho we v er ,c l as hes wi t ht hel as tp ar ag r a phwhi c hs pe ci fi c al l ys t at e st hatt hes al ar yi nc r eas esf ort hey e ar s2001a nd2 002s ha l l be dee medi n cl us i v eofwagei nc r eas ess ub seq uentt ot hos eg r a nt edunderWO No.7.I ti saf a mi l i arr ul ei ni nt er pr e t at i on [ 2 1]

ofc ont r ac t st hatc onfl i c t i ngpr o vi s i onss houl dbehar moni z edt ogi v eeffec tt oal l .  L i k e wi s e ,wh enge ne r a la nd s pec i fi cpr o vi s i on sar ei nc ons i s t ent ,t h es pec i fi cpr o vi s i ons ha l l bepar a mou ntt oandgo v er nt hege ner a lpr o vi s i on. [ 2 2]

  Th us ,i tma yber e as on ab l yc on cl u de dt h atTSPI Cg r a n t e dt h es al a r yi n cr e as esun de rt h ec on di t i o nt h ata nywa ge

or dert hatma ybes ubs equent l yi s s ueds hal l bec r edi t edag ai ns tt hepr e vi ous l ygr an t edi nc r eas e.Th ei nt ent i onoft h e par t i esi sc l ea r : Asl onga sanempl o y eei squal i fi edt or ec ei v et he12% i nc r eas ei ns al ar y , t heempl o y ees hal l be g r a nt e dt h ei n cr e as e;a ndasl o ngasanemp l o y eei sg r a nt e dt h e1 2% i n cr e as e,t h ea mo un ts ha l l b ec r e di t e da ga i n st a n ywa geor d eri s s u e da f t e rWO No .7 .

Re sp on de nt ss ho ul dno tb ea l l o we dt or e ce i v ebe ne fit sf r o mt h eCBAwh i l eav o i d i n gt h ec ou nt e r p a r t c r e di t i n g pr o vi s i on.The yha v er ec ei v edt hei rr eg ul ar i z at i oni nc r eas esunderAr t .X,Sec .2oft heCBAa ndt hey e ar l yi nc r ea se f o rt h ey e ar2 00 1.Th eys ho ul dn ott h enb ea l l o we dt oa v oi dt h ec r e di t i n gp r o v i s i o nwh i c hi sana cc omp an y i n g c ondi t i on.

Re s po nd en t sa t t a i n edr e gu l a re mp l o y me nts t a t u sbe f o r eJ an ua r y1 ,2 00 1.WO No .8 ,i n c r e as i n gt h emi n i mu m wa ge , wa si s s ue da f t e rWO No .7 .Th us ,r e sp on de nt sr i g ht f u l l yr e ce i v e dt h e1 2% s al a r yi n cr e as ef o rt h ey e ar2 00 1g r a nt e d i nt h eCBA;a ndco ns eq ue nt l y , TSPI Cr i g ht f u l l yc r e di t e dt h at1 2% i n cr e as ea ga i n stt h ei n cr e as eg r a nt e db yWO No .8 .

Pr ope rf or mul af orc omput i ngt hesa l a r i e sf ort hey ea r2 0 0 1

Thus ,t hepr operc omput a t i o noft hes al ar i e sofi ndi v i dua lr es ponde nt si sasf ol l o ws :

( 1 )Wi t hr e ga r dt ot h efi r s tg r o upo fr e sp on de nt swh oa t t a i n edr e gu l a re mp l o y me nts t a t u sb ef o r et h ee ffe ct i v i t yofWO No.8,t hec omput at i oni sasf ol l o ws :

[ 2 3]

Forr es pond ent sJ er i c oAl i pi tan dGl enBat ul a :

7age rate beore 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 234.67

ncrease due to 78 9o%  setting the minimum wage at (h( 2-0 %%%%%%%%%%%%%%%%%%  :otal alary upon efectivity o 78 9o%  %%%%%%%%%%%

 

15.33

PhP 250.00

ncrease or 2001 12! o 2000 salary) %%%%%%%%%%%%%%

PhP 30.00

;ess the wage increase under 78 9o%  %%%%%%%%%%%%

____15.33

 :otal diference between the wage increase

PhP 14.67

or 2001 and the increase granted under 78 9o%  %%%%%%%%%%%%%

7age rate by "ecember 2000 %%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 250.00

(lus total diference between the wage increase or 2001 and the increase granted under 78 9o%  %%%%%%%%%%%

 

14.67

Total 7age rate range beginning January PhP 264.67 1, 2001)

[ 2 4 ] F orr e s p on d en t sSe rJ o hnHe r n an de zan dRa c h el No v i l l a s :

7age rate range beore 78 9o%  %%%%%%%%%%%%%%%%%%%%%

PhP 234.68

ncrease due to 78 9o%  setting the minimum wage at (h( 2-0 %%%%%%%%%%%%%%%%%%  :otal alary upon efectivity o 78 9o%  %%%%%%%%%%%

ncrease or 2001 12! o 2000 salary) %%%%%%%%%%%%%%

 

15.32

PhP 250.00

PhP 30.00

 

;ess the wage increase under 78 9o%  %%%%%%%%%%%%

15.32

 :otal diference between the wage increase or 2001 and the increase granted under 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%

7age rate by "ecember 2000 %%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 14.68

PhP 250.00

(lus total diference between the wage increase or 2001

_____14.68

and the increase granted under 78 9o%  %%%%%%%%%%%

Total 7age rate range beginning January 1, 2001) %%%%%%%%%%%%%%%%%%%%%%

PhP 264.68

[ 2 5]

Fo rr e sp on de nt sAmyDu r i a s,Cl a i r eEv e l y nVe l e z,a ndJ an i c eOl a gu i r :

7age rate range beore 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 240.26

ncrease due to 78 9o%  setting the minimum wage at (h( 2-0 %%%%%%%%%%%%%%%%%%%  :otal alary upon efectivity o 78 9o%  %%%%%%%%%%%%%%%%%%%%%%

ncrease or 2001 12! o 2000 salary) %%%%%%%%%%%%%%%%%%%%%%%%%%%%% ;ess the wage increase under 78 9o%  %%%%%%%%%%%%%%%%%%%

 

9.74

PhP 250.00

PhP 30.00 _____9.74

 :otal diference between the wage increase or 2001 and the increase granted under 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%%

7age rate by "ecember 2000 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 20.26

PhP 250.00

(lus total diference between the wage increase or 2001 and the increase granted under 78 9o%  %%%%%%%%%%%%%%%

Total 7age rate range beginning January 1, 2001) %%%%%%%

_____20.26 PhP 270.26

[ 2 6] F orr e s po nd en t sMa .F eFl o r e san dF eCa pi s t r a no :

7age rate range beore 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 245.85

ncrease due to 78 9o%  setting the minimum wage at (h( 2-0 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%  :otal alary upon efectivity o 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%%

 

4.15

PhP 250.00

ncrease or 2001 12! o 2000 salary) %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 30.00

;ess the wage increase under 78 9o%  %%%%%%%%%%%%

 

4.15

 :otal diference between the wage increase or 2001

PhP 25.85

and the increase granted under 78 9o%  %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

7age rate by "ecember 2000 %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

PhP 250.00

(lus total diference between the wage increase or 2001

_____25.85

and the increase granted under 78 9o%  %%%%%%%%%%%

Total 7age rate range beginning January 1, 2001) %%%%%%%%%%%%%%%%%%%

PhP 275.85

( 2 )Wi t hr e ga r dt ot h es ec on dg r o upofe mp l o y ee s,wh oa t t a i n edr e gu l a re mp l o y me nts t a t u sa f t e rt h ei mp l e me nt a t i o n o fWO No .8 ,n ame l y :Ni mf aAn i l a o,Ro seSu ba r d i a ga ,Va l e r i eCa r b o n,Ol i v i aEd r o so ,Ma r i c r i sDo na i r e ,An al y n Az ar c on ,Ro sa l i eRa mi r e z,J ul i e t aRo se t e ,J an i c eNe br e ,Ni aAn dr a de ,Ca t h er i n eY ab a,Di o me di s aEr n i ,Ma r i o Sa l mo r i n ,L oi d aCo mu l l o ,Ma r i eAn nDe l o sSa nt o s,J ua ni t aYa na ,a ndSu ze t t eDu l a y ,t h ep r o p erc omp ut a t i o no ft h e s al a r i esf ort h ey ear2001,i nac c or danc ewi t ht heCBA,i sasf ol l o ws :

Co mp ut et h ei n c r e as ei ns al a r ya f t e rt h ei mp l e me nt a t i o no fWO No .8b ys ub t r a c t i n gt h emi n i mu m wa gebe f o r eWO No .8f r o mt h emi n i mu m wa gepe rt h ewa geor d ert oar r i v eatt h ewa gei n c r e as e ,t h us :

atherine ?aba

20%-

2

12

1,2%00

"iomedisa Erni

20%-

2

12

1,2%00

amullo

20%-

2

12

1,2%00

laire Evelyn =ele'

20%2

2

12

.,#21%12

20%2

2

12

.,#21%12

apistrano

2-%-

2

12

,0-%20

 Juanita ?ana u'ette "ulay

 Janice 8laguir

MAI NTAI NED. Thea war df orat t or ne y’ sf eesoft enper c ent( 10%)oft h et o t al a war di s

SOORDERED.

[ G.R. No. 117040, !a"uar 27, 2000 ]

 RUBEN SERRANO, PETITIONER, VS. NATIONAL LABOR RELATIONS COMMISSION AND  ISETANN DEPARTMENT STORE, RESPONDENTS.  D E C I S I O N  MENDOZA,J. :

Thi si sape t i t i onseek i ngr e v i e w oft her e s ol u t i on s,dat edMa r c h30,1 994andAugus t26,19 94,oft h eNa t i o nal Labor Re l a t i o nsCo mmi s s i o n( NL RC)wh i c hr e v er s edt h ed ec i s i o no ft h eL ab orAr b i t e ra nddi s mi s s edpe t i t i o ne rRu be n Ser r ano ’ scompl ai ntf ori l l egal di s mi s sal anddeni edhi smot i onf orr ec ons i der at i on.Thef ac t sar easf ol l ows :

Pe t i t i onerwashi r edbypr i v at er e s pondentI s et a nnDe par t mentSt or easasec ur i t yc hec k ert oappr ehen ds hopl i f t er s [ 1]

a ndp r e v en tp i l f e r a geo fme r c ha nd i s e.  I ni t i al l yhi r edonOc t ober4,1984onc ont r ac t ual bas i s ,pet i t i onerev ent ual l y b ec a mear e gu l a re mp l o y e eo nAp r i l 4 ,1 98 5.I n19 88 ,h eb ec a mehe adoft h eSe c ur i t yCh ec k e r sSe c t i o no fp r i v a t e [ 2]

r e s po nd en t .

Some t i mei n1991,asacos t c ut t i ngmeas ur e,pr i v at er e s pondentd ec i dedt ophas eouti t sent i r ese cu r i t ys ec t i onand engaget heser v i c esofani ndependents ec ur i t yagenc y .Fort hi sr eas on,i twr ot epet i t i onert hef ol l owi ng [ 3]

memor an du m:

Oc t o be r1 1,1 99 1

MR.RUBEN SERRANO PRESENT

De a rMr .Se r r a no ,

I nvi ewoft her e t r enc hmentpr ogr am oft hecompan y ,weher eb yr ei t er at eourv er bal no t i c et oy ouofy ourt er mi n at i o n a sSe c ur i t ySe c t i o nHe adeff ec t i v eOc t o be r1 1 ,1 99 1.

Pl e as es e c ur ey o urc l e ar a nc ef r o mt h i soffic e . Ver yt r ul yy our s ,

[ Sgd. ]TERESI TAA.VI LLANUEVA HumanResour cesDi vi si onManager Thel os sofhi sempl o ymentpr omp t edp et i t i onert ofi l eac ompl ai ntonDec ember3,1991f ori l l eg al di s mi s s al ,i l l eg al [ 4]

l a y off ,u nf a i rl a bo rp r a ct i c e,u nd er p ay me nto fwa ge s,a ndno np ay me nto fs al a r ya ndov e r t i mep ay .

Thep ar t i eswer er e qui r edt os ubmi tt hei rpos i t i onpaper s ,o nt heb as i sofwhi c ht heLaborAr bi t erdefi nedt hei s s ues [ 5]

asf ol l ows :

Whe t herorno tt her ei sav al i dgr oundf ort hedi s mi s s al oft hec ompl a i nant .

Wh et h ero rn o tc omp l a i n an ti sen t i t l e dt oh i smo ne t a r yc l a i msf o ru nd er p ay me nto fwa ge s,n on pa y me nto fs al a r i e s, 1 3t hmo n t hpa yf o r1 99 1a ndov e r t i mep a y .

Whe t herorno tRes pondenti sgui l t yofunf ai rl aborpr a ct i c e. Ther eaf t er ,t hecas ewashear d.OnApr i l 3 0,1993,t heLaborAr bi t err end er edadec i s i onfindi n gpe t i t i onert oha v e beeni l l egal l ydi s mi s sed.Her ul edt hatpr i v at er es pondentf ai l edt oes t abl i s ht hati thadr et r enc hedi t ssec ur i t ysec t i on t opr e ventormi ni mi z el os sest oi t sbus i nes s;t hatpr i v at er es pondentf ai l edt oac cor dduepr oc es st opet i t i oner ;t hat

p r i v a t er e sp on de ntf a i l e dt ous er e as on ab l es t a nd ar d si ns el e ct i n ge mp l o y ee swh os eemp l o y me ntwo ul dbe t er mi na t ed;t hatpr i v at er es pondenth adn ots hownt hatpe t i t i onerandot herempl o y eesi nt hes ec ur i t ys ec t i onwe r es o i neffic i ents oast oj us t i f yt hei rr epl ac ementb yasec ur i t yagenc y ,ort hat" c os t s av i ngde vi c es[ s uc has ]s ec r e tv i deo c ame r a s( t omo ni t o ra ndpr e v en ts ho pl i f t i n g)a ndse cr e tc od et a gso nt h eme r c ha nd i s e"c ou l dno th av ebe en empl o y ed;i n st ead,t heda yaf t erp et i t i one r ’ sdi s mi s s al ,pr i v at er es pondente mpl o y edas af e t ya nds ec ur i t ys upe r v i s or wi t hdut i esandf unc t i onssi mi l art ot hos eofpet i t i oner .

[ 6]

Ac c or d i ngl y ,t heLaborAr bi t ero r der ed:

WHEREFORE,abovepr emi sesconsi der ed,j udgmenti sher ebydecr eed:

a) Cinding the dismissal o the complainant to be illegal and concomitantly, &espondent is ordered to pay complainant ull bacDwages without qualication or deduction in the amount o (.,.0%00 rom the time o his dismissal until reinstatement computed till promulgation only) based on his monthly salary o (.,0.0%00Fmonth at the time o his termination but limited to #) three years3 b) 8rdering the &espondent to immediately reinstate the complainant to his ormer position as security section head or to a reasonably equivalent supervisorial position in charges o security without loss o seniority rights, privileges and benets% :his order is immediately e/ecutory even pending appeal3 c) 8rdering the &espondent to pay complainant unpaid wages in the amount o ( 2,020%# and proportionate 1#th month pay in the amount o (#,1$%#03 d) 8rdering the &espondent to pay complainant the amount o (,$$-%$1, representing 10! attorney5s ees based on the total Gudgment award o ( $,$-$%12% Al l o t he rc l a i msoft hec ompl a i nantwhe t hermone t ar yoro t h er wi s ei sher eb ydi s mi s s edf orl a ckofmer i t .

SOORDERED. Pr i v at er e s pon dentappe al edt ot heNLRCwhi c h,i ni t sr es ol u t i o nofMar c h30,19 94,r e ve r s e dt hedec i s i o noft he Lab orAr bi t erandor der edpe t i t i onert ob egi v ensepar at i onpa yequi v al en tt oonemon t hpa yf ore v er yy earofs er v i c e, unp ai ds al ar y ,an dpr opor t i onat e13t hmon t hpa y .Pe t i t i o nerfi l e damo t i o nf orr ec ons i der at i on,buthi smot i onwas d en i e d.

TheNLRChe l dt hatt h ephas eoutofp r i v at er e s ponden t ’ ss ec ur i t ys ec t i onandt hehi r i n gofani ndepende nts ec ur i t y a ge nc yc on s t i t u t e da ne x er c i s eb ypr i v a t er e sp on de nto f" [ a ]l e gi t i ma t eb us i n es sde ci s i o nwh os ewi s do m wed on ot i n t endt oi nqui r ei n t oandf orwhi c hwec anno ts u bs t i t ut eourj udgment " ;t h att hedi s t i nc t i onma deb yt heLaborAr bi t er b et we en" r e t r e nc h me nt "a ndt h ee mp l o y me nto f" c o s t s a v i n gd ev i c e s "u n de rAr t .2 83oft h eL ab orCo dewa s i n si g ni fi c an tb e ca us et h ec omp an yo ffic i a lwh owr o t et h ed i s mi s s al l e t t e ra pp ar e nt l yus edt h et e r m" r e t r e nc hme nt "i n i t s" p l ai nandor di nar ys ens e:t ol a yofforr emov ef r om one’ sj ob,r egar dl es soft her eas ont her ef or " ;t hatt her ul eof " r eas onabl ecr i t er i a"i nt hesel ec t i onoft heempl o yeest ober e t r enc heddi dnotappl ybec aus eal l pos i t i onsi nt he s ec ur i t ys ec t i onhadbeenabol i s hed;andt hatt heappoi nt mentofas af e t yands ec ur i t ys uper v i s orr ef er r edt ob y p et i t i o ne rt op r o v eba df a i t ho np r i v a t er e sp on de nt ’ spa r t wa so fn omo me ntb ec au set h ep os i t i o nh adl o ngb ee ni n e xi s t enc eandwass epar at ef r om pe t i t i o ner ’ spos i t i onash eadoft heSec ur i t yChec k er sSec t i on.

Henc et hi spet i t i on.Pet i t i onerr ai s est hef ol l owi ngi s sue:

I STHEHI RI NG OFANI NDEPENDENTSECURI TYAGENCYBYTHEPRI VA TERESPONDENTTOREPLACEI TS CURRENTSECURI TYSECTI ONAVALI DGROUNDFORTHEDI SMI SSALOFTHEEMPLOYEESCLASSED [ 7]

UNDER THELA TTER?

Pe t i t i onerc ont endst hatabol i t i ono fpr i v at er e s pondent ’ sSec ur i t yChec k er sSec t i onandt h eempl o ymento fan i n dependen ts ec ur i t yagenc ydono tf al l unde ra n yo ft heaut h or i z edcaus esf ordi s mi s s al unde rAr t .283oft h eLabor Cod e. Pe t i t i one rLa i dOfff orCa us e

Pet i t i oner ’ scont ent i onhasnomer i t .Ar t .283pr ov i des : Cl os ur eofes t abl i s hmentandr educ t i onofper s onnel .   -Th ee mp l o y e rma ya l s ot e r mi n at et h ee mp l o y me nto fa ny empl o y eeduet ot hei ns t al l at i onofl a bor s av i ngde vi c es ,r e dundanc y ,r e t r e nc hmen tt opr e v entl o ss esort hec l os i ngor c es s at i onofoper at i onsoft hees t a bl i s hmentorund er t ak i ngunl es st hec l os i n gi sf ort hepu r p os eofc i r c umv ent i ngt h e p r o v i s i o nsoft h i sTi t l e ,b ys er v i n gawr i t t e nn ot i c eo nt h ewo r k e r san dt h eDe pa r t me nto fL ab ora ndEmp l o y me nta t l eas tone( 1)mont hbef or et hei nt endeddat et her eof .I nc as eoft er mi nat i onduet ot hei ns t al l at i onofl abor s av i ng de vi c esorr edun danc y ,t h ewor k era ffec t edt he r e byshal l beent i t l edt oas epa r a t i onpa yequ i v al entt oatl eas tone( 1) mont hp ayort oatl eas tone( 1 )mont hpa yf ore v er yy earofs er v i c e,whi c he v eri shi gh er .I ncas eofr e t r enc hmentt o pr e v entl os s esandi ncas esofc l os ur eorc es s at i o nofo per a t i o nsofes t abl i s hme ntoru nder t ak i ngno td uet os er i ous bus i nes sl os s esorfi nanc i al r e v er s es ,t hes epar at i onpa ys hal l beequi v al entt oatl eas tone( 1)mon t hpa yoratl ea st onehal f( 1/ 2)mont hpa yf orev er yy earofs er v i c e,whi c he veri shi gher .Af r ac t i onofatl eas ts i x( 6)mont hsshal l be c o ns i d er e da so ne( 1 )wh ol ey e a r . [ 8]

a mp ov .Na t i o na lL a bo rRe l a t i o n sCo mmi s s i o n I nDeOc ,  t hi sCour tu phel dt het er mi n at i o nofempl o yme ntoft hr ee me c ha ni c si nat r a ns p or t a t i o nc o mp an yan dt h ei rr e pl a c eme ntb yac o mp an yr e nd er i n gma i n t e na nc ean dr e pa i r s er v i c es .I thel d: I nc on t r a ct i n gt h es er v i c esofGe ma cMa ch i n er i e s,a sp ar to ft h ec omp an y ’ sco s t s a vi n gp r o gr a m,t h es er v i c es r e nd er e dbyt h eme c ha ni c sb ec a mer e du nd an ta nds up er fl u ou s ,a ndt h er e f o r ep r o pe r l yt e r mi n ab l e .Th ec omp an y me r e l ye x er c i s edi t sbu si n es sj u dg me nto rma na ge me ntp r e r o g at i v e .An di nt h ea bs en ceofa nyp r o o ft h att h e managementabus edi t sdi s cr et i onorac t edi namal i c i ousorar bi t r ar ymanner ,t hecour twi l l noti nt er f er ewi t ht he [ 9]

e x er c i s eofs uc hpr er og at i v e.

[ 1 0]

 A i anAl c ohol Cor por at i onv .Nat i onal LaborRel at i onsCommi s s i on,   I n s t heCour tl i k ewi s euphel dt het er mi nat i onof e mp l o y me nto fwa t e rp umpt e nd er san dt h ei rr e pl a ce me ntb yi n de pe nd en tc on t r a ct o r s . I tr u l e dt h ata ne mp l o y er ’ s goo df ai t hi ni mpl ement i ngar edundan cypr ogr am i sno tnec es s ar i l yputi ndoubtb yt heav ai l mentoft heser v i c esof a ni n de pe nd en tc o nt r a c t o rt or e pl a c et h es e r v i c e so ft h et e r mi n at e de mp l o y e est op r o mo t ee c on omyan de ffic i e nc y .

I n de ed ,a swepo i n t e do uti nan ot h erc as e,t h e" [ ma na ge me nto fac omp an y ]c an no tb ed en i e dt h ef a cu l t yo f pr omo t i ngeffic i enc yan dat t a i ni ngec onomybyas t ud yofwha tuni t sar ees s ent i a lf ori t soper at i on.T oi tbel on gst he ul t i mat ede t e r mi n at i onofwhe t h ers er v i c ess hou l dbepe r f or medbyi t sper s onnel orc on t r ac t edt oout s i de age nc i es...[ Whi l et he r e ]s houl dbemut ual c ons ul t at i on,e v ent ua l l ydef er enc ei st obepai dt owh atmanagement [ 1 1 ]

dec i des . "  Co ns eq ue nt l y , a bs en tp r o o ft h atma na ge me nta ct e di nama l i c i o usora r b i t r a r yma nn er ,t h eCo ur twi l l n ot [ 1 2]

i n t er f er ewi t ht hee x er c i s eofj udgmentb yane mpl o y er .

I nt hec as eatbar ,weha veonl yt hebar eas ser t i onofpet i t i onert hat ,i nabol i s hi ngt hes ec ur i t ys ec t i on,pr i v at e r e sp on de nt ’ sr e al p ur p os ewa st oa v oi dp ay me ntt ot h es ec ur i t yc he ck e r so ft h ewa gei n cr e as espr o v i d edi nt h e [ 1 3]

c ol l e ct i v eb ar g ai n i n ga gr e eme nta pp r o v edi n1 99 0.  Su chanas s er t i oni sno tas uffic i entbas i sf orc onc l udi n gt hatt he t e r mi n at i o no fp et i t i o ne r ’ se mp l o y me ntwa sn otabo nafi dede ci s i o no fma na ge me ntt oob t a i nr e as on ab l er e t u r nf r o m

[ 1 4 ]

i t si n v es t ment ,whi c hi sar i ghtgua r a nt e edt oempl o y er su ndert heCons t i t ut i on.  I ndeed,t hatt hephas eoutoft he s ec ur i t ys ec t i oncons t i t ut eda" l egi t i mat ebus i nes sdec i s i on"i saf ac t ual fi ndi ngofanadmi ni s t r at i v eagenc ywhi c h mus tbeac c or dedr e s pe cta ndev enfina l i t yb yt h i sCour ts i nc eno t hi ngcanbef oundi nt her e c or dwhi c hf ai r l yde t r ac t s [ 1 5]

f r o ms u c hfin di n g.

Ac cor di ngl y ,wehol dt hatt het er mi nat i onofpet i t i oner ’ sser v i c eswasf oranaut hor i z edc aus e,i . e. ,r edundanc y . He nc e,p ur s ua ntt oAr t .2 83o ft h eL ab orCo de ,p et i t i o ne rs h ou l db eg i v e ns ep ar a t i o np ayatt h er a t eo fo nemo nt hp ay f ore ver yy earofs er v i c e. Sa nc t i onsf orVi ol a t i onsoft he Not i ceRequi r ement

Ar t .2 83a l s op r o v i d est h att ot e r mi n at et h ee mp l o y me nto fa ne mp l o y eef o ra n yo ft h ea ut h or i z edc au se st h e e mp l o y e rmu s ts e r v e" awr i t t e nn ot i c eo nt h ewo r k e r san dt h eDe pa r t me nto fL ab ora ndEmp l o y me nta tl e as to ne( 1 ) mont hb ef or et hei nt ende ddat et her eof . "I nt hec as eatbar ,pe t i t i onerwasgi v enan ot i c eoft er mi nat i ono nOc t ober 1 1,1 99 1.Ont h es amed ay , h i ss er v i c eswe r et e r mi n at e d.Hewa st h usde ni e dh i sr i g htt ob eg i v e nwr i t t e nn ot i c e bef or et het er mi nat i onofhi sempl o yment ,andt heques t i oni st heappr opr i at es anc t i onf ort hev i ol at i onofpet i t i oner ’ s r i ght .

[ 1 6]

ov. NLRC,   T obes ur e,t hi si snott hefi r s tt i met hi sques t i onhasar i s en.I nSebuguer wo r k e r si nag ar me ntf a ct o r y we r et e mp or a r i l yl a i do ffd uet ot h ec an ce l l a t i o no fo r d e r san dag ar me nte mb ar g o.Th eL ab orAr b i t e rf o un dt h att h e wo r k e r sh adb ee ni l l e ga l l yd i s mi s s e dan dor d er e dt h ec o mp an yt opa ys e pa r a t i o np a yan db ac k wa ge s .Th eNL RC,o n t h eo t h erh an d,f o un dt h att h i swa sac as eo fr e t r e nc hme ntd uet obu si n es sl o ss esan do r d e r e dt h ep ay me nto f s e pa r a t i o np a ywi t h ou tb ac k wa ge s .Th i sCo ur ts u s t a i n edt h eNL RC’ sfi nd i n g.Ho we v er ,a st h ec o mp an ydi dno t c omp l ywi t ht h e3 0d aywr i t t e nn ot i c ei nAr t .2 83o ft h eL ab orCo de ,t h eCo ur to r d e r e dt h ee mp l o y ert op ayt h e wo r k e r sP2 , 0 00 . 0 0e ac hasi n de mn i t y .

Thed ec i s i onf ol l o we dt her u l i ngi nse v er al c as esi n vo l v i ngdi s mi s s al swhi c h,al t hou ghbas edona nyoft hej us tc aus es [ 1 7]

u nd erAr t .2 82 ,  we r ee ffe ct e dwi t h ou tn ot i c ean dh ea r i n gt ot h ee mp l o y eeasr e qu i r e db yt h ei mp l e me nt i n gr u l e s. [ 1 8]

  Ast hi sCour ts ai d:" I ti snows et t l edt hatwher et hedi s mi s sal ofoneempl o yeei si nf ac tf oraj us tandval i dcaus e

i . e . , andi ss opr o v ent obebuthei sno tac c or dedhi sr i ghtt oduepr oc es s ,   h ewa sn otf u r n i s he dt h et wi nr e q ui r e me nt s o fn ot i c ea ndo pp or t u ni t yt ob eh ea r d ,t h ed i s mi s s al s ha l l b eu ph el db utt h ee mp l o y ermu s tb es an ct i o ne df o rn on [ 1 9]

c ompl i anc ewi t ht her equi r e men t sof ,orf orf ai l ur et oobs er v e,duepr o ce ss . "

Ther ul er e v er s edal on gs t an di ngpol i c yt her e t of or ef ol l o wedt ha te v ent houg ht hedi s mi s s al i sba sedonaj us tc aus e ort het er mi nat i onofempl oy menti sf oranaut hor i z edc aus e,t hedi s mi s sal ort er mi nat i oni si l l egal i feff ec t edwi t hout [ 2 0]

n ph i l Co r p .v .NL RC.   no t i c et ot heempl o y ee.Thes hi f ti nd oc t r i net o okpl ac ei n1 989i nWe I na nn ou nc i n gt h e [ 2 1]

c hang e,t hi sCou r ts ai d:

TheCour thol dst hatt hepol i c yofor der i ngt her ei ns t at ementt ot hes er v i c eofane mpl o y eewi t hou tl os sofs eni or i t y andt h epa ymentofhi swagesdur i ngt hep er i odofhi ss epar at i onun t i l hi sac t ual r ei ns t at ementbutno te x c eedi ng t h r e e( 3 )y e ar swi t h ou tq u al i fi c at i o no rd ed uc t i o n,wh eni ta pp ea r sh ewa sn ota ffo r d e dd uep r o ce ss ,a l t h ou ghh i s di s mi s s al wasf oundt obef orj us tandaut h or i z edcau sei nanappr opr i at epr oc ee di ngi nt heMi ni s t r yofLab orand Empl o ymen t ,s houl dber ee x ami ned.I twi l l behi gh l ypr ej u di c i al t ot hei n t er es t soft heempl o y ert oi mpos eonhi mt he s er v i c eso fa ne mp l o y eewh oh asb ee ns ho wnt obegu i l t yo ft h ec ha r g est h atwa r r a nt e dh i sd i s mi s s al f r o m empl o yment .I ndeed,i twi l l demor al i z et her a nkandfil ei ft heundes er v i ng,i fnotundes i r abl e,r emai nsi nt heser v i c e.

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