Austria v. NLRC G.R. No.

124382 August 16, 1999

Austria v. NLRC
G.R. No. 124382

August 16, 1999

Facts:
The Seventh Day Adventists(SDA) is a religious corporation under Philippine law. The petitioner
was a pastor of the SDA for 28 years from 1963 until 1991, when his services were terminated.
On various occasions from August to October 1991, Austria received several communications
form Ibesate, the treasurer of the Negros Mission, asking him to admit accountability and
responsibility for the church tithes and offerings collected by his wife, Thelma Austria, in his
district and to remit the same to the Negros Mission.
The petitioner answered saying that he should not be made accountable since it was Pastor
Buhat and Ibesate who authorized his wife to collect the tithes and offerings since he was very
ill to be able to do the collecting.
A fact-finding committee was created to investigate. The petitioner received a letter of dismissal
citing:
1) Misappropriation of denominational funds;
2) Willful breach of trust;
3) Serious misconduct;
4) Gross and habitual neglect of duties; and
5) Commission of an offense against the person of employer's duly authorized representative
as grounds for the termination of his services.
Petitioner filed a complaint with the Labor Arbiter for illegal dismissal, and sued the SDA
for reinstatement and backwages plus damages. Decision was rendered in favor of petitioner.
SDA appealed to the NLRC. Decision was rendered in favor of respondent.

Issue:
1. Whether or not the termination of the services of the petitioner is an ecclesiastical affair, and,
as
such,
involves
the
separation
of
church
and
state.
2. Whether or not the Labor Arbiter/NLRC has jurisdiction to try and decide the complaint filed
by petitioner against the SDA.

Held/Ratio:
1. No. The matter at hand relates to the church and its religious ministers but what is involved
here is the relationship of the church as an employer and the minister as an employee, which
is purely secular because it has no relationship with the practice of faith, worship or
doctrines. The grounds invoked for petitioners dismissal are all based on Art. 282 of Labor
Code.
2. Yes. SDA was exercising its management prerogative (not religious prerogative) to fire an
employee which it believes is unfit for the job. It would have been a different case if Austria was
expelled or excommunicated from the SDA.