Professional Documents
Culture Documents
Labor Digests
Labor Digests
SCRA 52 (2004)
1)
2)
3)
4)
(1993)
-
Almodiel
v.
NLRC,
223
SCRA
341
(a)
(b)
(c)
(d)
a)
b)
c)
a.
b.
c.
-
(1989)
-
Payrolls
3)
4)
5)
Power of control
Held:
Yes. Art. 2 of the PD 1083 provides that the provisions of
this Coude shall be applicable only to Muslims xxx. However,
there should be no distinction between Muslims and nonMuslims as regards payment of benefits for Muslim holiday.
We must remind the respondent-appellant (employer) that
wages and other emoluments granted by law to the working
man are determined on the basis of the criteria laid down by
laws and certainly not on the basis of the workers faith or
religen. Art. 3 also declares that nothing herein shall be
construed to operate to the prejudice of a non-Muslim.
But the Court here did not apply the Eagle case
because the petitioner is equally guilty by not
abiding to the law in the subsequent change of
contract even when the WO6 was already
implemented.
they did not render services at the Kalibo office during the
stated period.
Bankard Employers Union v. NLRC, 423 SCRA 148
(2004)
Facts:
Petitioners questioning the new salary increase to new
employees which were higher than the regular employees.
They claim that there was wage distortion, thus the request
for an across-the-board increase.
Held: No wage distortion.
Wage distortion: a situation where an increase in prescribed
wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates
between and among employee groups in an establishment as
to effectively obliterate the distinctions embodied in such
wage structure based on skills, length of service, or other
logical bases of differentiation.
to
increase
the
An
existing
hierarchy
of
positions
with
corresponding salary rates
A significant change in the salary rate of a lower pay
class without a concomitant increase in the salary
rate of a higher ones
The elimination of the distinction between the two
levels and
The existence of the distortion in the same region of
the country.
Apart from the finding of fact of the NLRC and Ca that some
of the elements of wage distortion are absent, the petitioner
cannot legally obligate Bankard to correct the alleged wage
distortion as the increase in the salaries of the newly-hired
was not due to a prescribed law or wage order.
2.
3.
Discussion:
1.
2.
3.
The
non-impairment
clause
of
the
Constitution, invoked by the petitioner, must
yield to the loftier purposes targetted by the
Government. Freedom of contract and enterprise,
like all other freedoms, is not free from restrictions,
more so in this jurisdiction, where laissez faire has
never been fully accepted as a controlling economic
way of life.
4.
5.
a.
Constitution
b.
Article
136
explicitly
prohibits
discrimination merely by reason of the
marriage of a female employee.
c.
Issues:
On appeal to the SC, PTTC argues that it did not discriminate
on married women. PTTC said that Grace was fired because
she concealed information regarding her status, not because
of the status itself. She also mishandled company funds,
which she herself admitted.
Decision: The Court upheld the NLRCs reasoning, i.e,,
Grace was a victim of discrimination.
1. It is recognized that a company can set regulations
and rules for its employees in the exercise of its
management prerogatives; however, the same
should not result in discrimination and violation of
the law.2
2. The Supreme Court noted that the Constitution,
international conventions, statutes, and the Labor
Code have provided for the protection of women in
the labor force. Nowhere has that prejudice against
womankind been so pervasive as in the field of
labor, especially on the matter of equal employment
opportunities and standards. In the Philippine
setting,
women
have
traditionally
been
considered as falling within the vulnerable
groups or types of workers who must be
safeguarded with preventive and remedial
social legislation against discriminatory and
exploitative practices in hiring, training,
benefits, promotion and retention.
3.
The State recognizes the role of women in nationbuilding, and shall ensure the fundamental equality
before the law of women and men (Sec.14, Art. II).
4
The Court cited several examples: RA 6727 (1989)explicitly prohibits discrimination against women with
respect to terms and conditions of employment, promotion,
and training opportunities. RA 6955 (1990) - which bans the
"mail-order-bride" practice for a fee and the export of female
labor to countries that cannot guarantee protection to the
rights of women workers. RA 7192, The Women in NationBuilding Act (1992) - affords women equal opportunities
with men to act and to enter into contracts, and for
appointment, admission, training, graduation, and
commissioning in all military or similar schools of the Armed
Forces of the Philippines and the Philippine National Police;
Republic Act No. 7322 15 increasing the maternity benefits
granted to women in the private sector. RA 7322 (1995) increasing the maternity benefits granted to women in the
private sector. RA 7877 (1995) which outlaws and punishes
sexual harassment in the workplace and in the education and
training environment. RA 8042, The Migrant Workers and
Overseas Filipino Act of 1995.
4.
2.
Decision: CA upheld.
Discussion:
1.
2.
There
was
no
constructive
dismissal.
Constructive dismissal is defined as a quitting, an
involuntary resignation resorted to when continued
employment
becomes
impossible,
unreasonable, or unlikely; when there is a
demotion in rank or diminution in pay; or when a
clear discrimination, insensibility or disdain by an
employer becomes unbearable to the employee.
None of these conditions are present in the instant
case.
basic wage
living allowance
non-payment of
holiday pay
ER-EE relationship
Held: There is such relationship because in the application of
the four-fold test, it was found that petitioners had control
over the respondents not only as to the result but also as to
the means and method by which the same is to be
accomplished. Such control is proven by a memorandum
which enumerates procedures and instructions regarding job
orders, alterations, and their behavior inside the shop.
Minimum Wage
Held: No dispute that entitled to minimum wage but court
dismissed case for lack of sufficient evidence to support
claim that there was in fact underpayment which was ruled
by the LA and which the private resp did not appeal to in the
NLRC nor in the SC. Well-settled is the rule that an appellee
who has not himself appealed cannot obtain from the
appellate court any affirmative relief other than the ones
granted in the decision of the court below.
COLA
Held: Entitled. They are regular employees. IRR of Wage No.
1, 2, and 5 provide that all workers in the private sector,
regardless of their position, designation of status, and
irrespective of the method by which their wages are
paid are entitled to such allowance.
Illegal dismissal
Held: Dismissed for justifiable ground based on Article 283
(a) and (c). Inimical to the interest of the employer. Not
dismissed just because of union activities.
or
Facts:
Victora Abril was employed by PFCCI which was engaged in
organizing services to credit and cooperative entities as
Auditor/Field Examiner and thereafter held position in
different capacities as office secretary and cashier-designate
from 1982 to 1988.
She gave birth and upon her return in November 1989, a
certain Vangie Santos had been permanently appointed to
her former position. She accepted then a position as Regional
Field Officer on a probationary basis for 6 months. Period
elapsed but respondent was given another employment
contract for one year until 1991 after which period, her
employment was terminated.
Illegal dismissal was filed. LA dismissed her file but NLRC
reversed and ordered reinstatement.
Issue: WON she was illegally dismissed and WON she was a
regular employee.
Held: Yes. She was illegally dismissed and YES she was a
regular employee.
Art. 281 of the LC allows the employer to secure services of
an employee on a probi basis which allows him to terminate
the latter for just cause or upon failure to qualify in
accordance with reasonable standards.
Probationary Employee: one who is on trial by an
employer during which the employer determines whether or
nor he is qualified for permanent employment. A
probationary employment is made to afford the employer an
opportunity to observe the fitness of a probationer while at
work, and to ascertain whether he will become a proper and
efficient employee. Probationary employees, notwithstanding
their limited tenure, are also entitled to security of tenure.
Except for just cause or under employment contract, a probi
employee cannot be terminated.
Petitioner alleged that she has abandoned her work for 8
months (due to childbirth) and the position she applied for as
RFO was fixed for a specific period thus she is considered as
a casual or contractual employee under Art. 280.
Three kinds of employees:
Facts:
De Leon was an employee of La Tondena Inc in 1981 in the
Maintenance Section of the Engineering Department. His
work consisted mainly of painting company building and
equipment and other odd jobs relating to maintenance. He
was paid on a daily basis thru petty cash vouchers.
After 1 year, he requested that he be included in the payroll
of regular workers and upon this request he was dismissed.
LA: He was a regular employee. Emiliano Tanque Jr who was
regularly employed by the company as a maintenance job
doing same jobs that of De Leon who was also working with
the former. He rendered service for more than one year
continuously.
NLRC: Reversed. Reasoned that he was hired only as a
painter and to repaint specifically the Mama Rosa building at
the comps Tondo compound. It was made clear to him that
he would be so engaged on a casual basis so much so that
he was not required to accomplish an application form or to
comply with the usual requirements for employment and that
he was never paid his salary through the regular payroll and
always in petty cash vouchers.
SOLGEN: The dismissal of the petitioner after he demanded
to be regularized was a subterfuge to circumvent the law on
regular employment. He further recommends that the
questioned decision and resolution of the NLRC be annulled
and that the order of the LA directeing the reinstatement and
payment of backwages and other benefits be upheld.
SC: NLRC decision should be reversed.
An employment is deemed regular when the activities
performed by the employee are usually necessary or
desirable in the usual business or trade of the employer.
Not considered regular are the so-called project
employment the completion of termination of which is
more or less determinable at the time of employment, such
as those employed in connection with a particular
construction project and seasonal employment which by its
nature is only desirable for a limited period of time.
However, an employee who has rendered at least one year of
service, whether continuous or intermittent, is deemed
regular with respect to the activity he performed and while
such activity actually exists.
Also, if the employee has been performing the job for at least
a year, even if the performance is not continuous or merely
intermittent, the law deems the repeated and continuing
need for its performance as sufficient evidence of the
necessity if not indispensability of that activity to the
business. Hence, the employment is also considered regular,
but only with respect to such activity and while such activity
exists.
The law demands that the nature and entirety of the
activities performed by the employee be considered. If his
job was truly only to paint a building, there would have been
no basis for giving him other work assignments in between
painting activities.
It is not tenable to argue that the painting and maintenance
work of petitioner are not necessary in resps business of
manufacturing liquors and wines just as it cannot be said
that only those who are directly involved in the process of
producing wines and liquors may be considered as necessary
employees. Otherwise, there would have been no need for
regular Maintenance Section of resp companys Engg
Department, manned by Tanque whom petitioner worked
with.
He was even rehired by the company through a labor agency
was returned to his post with the same activities.
It is not the will and word of the employer, or the procedure
of hiring, or the manning of paying his salary. It is the nature
of the activities performed in relation to the particular
business or trade considering all circumstances and in some
cases, the length of time of its performance and its continued
existence.
Facts:
Facts:
RATIO:
FACTS:
1.
2.
3.
2.
3.
4.
5.
CHUA V. CA
FACTS:
1.
2.
3.
4.
2.
3.
4.
ISSUES:
WON an employer-employee relationship existed
between petitioners and Viva
WON petitioners are project employees of associate
producers who are in turn independent contractors
HELD: YES. NO.
RATIO:
MARAGUINOT V. NLRC
FACTS:
1.
Project
employees
are
those
whose
employment has been fixed for a specific
project or undertaking the completion or
termination of which has been determined at
the time of the engagement of the employee or
where the work or services to be performed is
seasonal in nature and the employment is for
the duration of the season
Here, the petitioner did not specify the duration
and scope of the project when it hired Acedillo.
It failed to present an employment contract
showing that Acedillo was engaged only for a
specific project. It is not even clear if Acedillo
signed an employment contract
Acedillos work as helper-electrician was an
activity necessary and desirable in the usual
August 6, 1986
Nature: Petition to review the decision of the NLRC.
FACTS:
(2)
Held:
(1) YES A review of the records clearly shows that Catenza
was dismissed without valid cause. The reason why she was
dismissed was because of the alleged immoral conduct of
her husband. However, her husband was never investigated
nor was he ever convicted of the serious act alluded to him.
(2)
NO
Although Catenza was found to be illegally
dismissed, her reinstatement is not proper. Her continued
presence in the school may be met antipathy and
antagonism by the Catholic school community.
Held: NO
CISP did not have any retirement plan for its
employees. Thus, Sec. 13 Book IV of the Omnibus Rules shall
apply. This rule provides that in the absence of a retirement
plan, an employee may be retired upon reaching the age of
60 years. This provision has been construed to mean that an
employee may retire, or may be retired by his employer,
upon reaching sixty.
Thus, Espejo cannot be reinstated anymore because he was
already sixty years old at the time the decision was
rendered.
FACTS:
2.
No. The SC do not agree that to disregard the notice
requirement by an employer renders the dismissal of
employment null and void. Such a stance is actually a
reversion to the discredited pre-Wenphil rule ordering an
employee to be reinstated and paid backwages when it is
shown that he has not given notice and hearing although his
dismissal or layoff is later found to be a just or authorized
cause. Such rule is abandoned in Wenphil because it is really
unjust to require an employer to keep in his service one who
is guilty, for example, of an attempt on the life of the
employer or the latters family, or when the employer is
precisely retrenching in order to prevent losses. Rather, the
remedy is to order the payment to the employee of full
backwages from the time of his dismissal until the court finds
that the dismissal was for a just cause. But, otherwise, his
dismissal must be upheld and he should not be reinstated.
This is because his dismissal is ineffectual.
The cases cited by both Justice Puno and Panganiban refer,
however, to the denial of due process by the State, which is
not the case here. There are three reasons why, on the other
hand, violation of the employer of the notice of requirement
cannot be considered a denial of due process resulting in the
nullity of the employees dismissal or layoff.
a)
The Due Process Clause of the Constitution is a
limitation to the governmental powers. It does not apply to
the exercise of private power, such as termination of
employment under the labor code.
FACTS:
Petitioner was hired by private respondent Isetann as a
security checker to apprehend shoplifters and prevent
pilferage of merchandise. Initially hired on Oct 1984 on
contractual basis, eventually became regular on 1985 and on
1988 became head of the Security Checkers Section. In
1991, as a cost-cutting measure, Isetann decided to phase
out its entire security section and engage the services of an
independent security agency. Serrano was given a
memorandum terminating his services effective on that
same day on Oct 11, 1991.
Serrano filed a complaint for illegal dismissal, illegal layoff,
unfair labor practice, underpayment of wages, and
nonpayment of salary and overtime pay. The Labor Arbiter
ruled for Serrano. On appeal the NLRC reversed the decision
of the Labor Arbiter.
Issues:
1.
WON hiring an independent security agency by Isetann
to replace its current security section as a valid ground.
2.
WON the denial of the right to be given a written notice
is tantamount to an illegal dismissal.
Held:
1.
No. Absent proof that management acted in a malicious
or arbitrary manner, the court will not interfere with exercise
of the judgment by an employer. The only bare assertion is
that Isetanns real purpose is to avoid payment to the
security checkers of the wage increases provided, such
assertion is not a sufficient basis. Indeed, that the phase-out
of the security section constituted a legitimate business
decision is a factual finding of an administrative agency
which must be accorded respect and even finality by this
court. Accordingly, SC held that the termination of the
petitioners services was for an authorized cause
redundancy. Hence, pursuant to Art. 283 of the Labor Code,
petitioner should be given separate pay at the rate of one
month pay for every year of service.
b)
Notice and hearing are required under the Due Process
Clause before the power of organized society are brought to
bear upon the individual. This is obviously not the case of
termination of employment under Art 283. Here the
employee is not faced with an aspect of the adversary
system. The purpose is requiring for a 30-day written notice
before an employee is laid off is not to afford him an
opportunity to be heard on any charge against him, for there
is none. The purpose rather is to give him time to prepare for
the eventual loss of his job and the DOLE an opportunity to
determine whether economic causes do exist justifying the
termination of his employment.
c)
Another reason why the notice requirement under Art
283 can not be considered a requirement of the Due Process
Clause is that the employer cannot really be expected to be
entirely an impartial judge of his own cause. This is also the
cause under Art 282.
Lack of notice only makes termination Ineffectual
Not all notice requirements are requirements of due process.
Some are simply part of the procedure to be followed before
a right granted to a party can be exercised. Others are
simply an application of the Justinian precept, embodied in
the Civil Code, to act with justice, give everyone his due, and
observe honesty and good faith toward ones fellowmen.
Such is the notice of requirement in Art 282-283. The
consequence of the failure either of the employer or the
employee to live up to this precept is to make him liable in
damages, not to render his act (dismissal or resignation, as
the case may be) void.
In sum, we hold that in proceedings for reinstatement under
Art 283, it is shown that the termination of employment was
due to an authorized cause, then the employee concerned
should not be ordered reinstated even though there is failure
to comply with the 30-day notice requirement. Instead, he
must be granted separation pay and backwages from the
time his employment was terminated until it is determined
that the termination of employment is for a just cause
because the failure to hear him before he is dismissed
renders the termination of his employment without effect.
Puno, Dissenting
c.
superiors were aware: petitioner told Assistant manager
Grulla who assured her that such is alright
a.
no bad faith
b.
3.
The right of employer to freely select or discharge his
employees is regulated by the state because the
preservation of the lives of the citizens is a basic duty of the
state, more vital than the preservation of corporate profit.
4.
Security of tenure is a right of paramount value
guaranteed by the consti and should not be denied on mere
speculation.
Employer has a standing policy prohibiting the encashment
of checks of its employees and officials even if endorsed by
top executives of the company. Employee herein was
terminated for such encashment after she was assured that
the executive VP approved of it. However, it is found that
such prohibition policy has been relaxed and that respondent
employer was informed of such encashment but only acted
upon it when checks bounced. They are thus estopped from
imposing the penalty of termination. An alleged just cause
for termination cannot be used as a shield to dismiss an
employee arbitrarily. (Llosa Tan v. Silahis International Hotel)
Interorient Maritime Enterprises Inc. v. NLRC, 235 SCRA 268
(1994)
FACTS:
Captain Tayog was hired by Trenda World Shipping
and Sea Horse Hip Management Inc thru petitioner as Master
of the M/V Oceanic Mindoro.
He was given the instruction to assume the
command of the vessel at Port of Hongkong where he was to
replenish bunker and diesel fuel and to sail forthwith to
Richard Bay, South Africa in order to load 120,000 metric
tons of coal.
Upon hearing that storm Gordon was
to hit Hongkong, Tayog followed up the request for oxygen
and acetylene which were necessary for the repaid of the
turbo-charger and the economizer.
The ships agent
however informed them that the supplies could be delivered
only at 0800 hours, 7 hours after the ETD from the port to
Africa.
Tayog waited for the supplies and voyage
was delayed. Upon arriving at Richard bay, he was instructed
to turn-over his post to a new captain and thereafter was
repatriated to the Philippines. He was not informed of
charges.
POEA: validly dismissed NLRC: illegal: no
opportunity to be heard, no evidence to prove loss of trust or
confidence
Issue: WON he was validly dismissed
Held: NO
1.
Confidential employees cannot be arbitrarily dismissed
at any time, and without cause as reasonably established in
an investigation.
never informed of charges
not accorded opportunity to hear
he had valid and justifiable reasons for causing the delay
2.
Captains are confidential employees who perform both
management and fiduciary functions
a.
b.
c.
representative of the country under whose flag he
navigates
Azcor Manufacturing v. NLRC, 303 SCRA 26 (1999)
FACTS:
Capulso worked with Azcor for more than 2 years as a
ceramics worker. He verbally requested to go on sick leave
because of bronchial asthma. Capulsos supervisor approved
his request but when he reported to work, he was told that
only the owner could allow him to resume his employment.
Capulso filed a complaint for constructive illegal dismissal
when he was not reinstated even after going to Azcor 5 times
to follow up his employment. Azcor averred that there was no
employer-employee relationship as Capulso was a former
employee who resigned. Azcor presented a contract of
employment and 2 resignation letters as evidence. Labor
Arbiter dismissed the complaint for illegal dismissal but
ordered Azcor to pay Capulso P200. NLRC modified the LAs
decision by declaring Capulsos dismissal as illegal and
ordering reinstatement and payment of backwages.
ISSUE/HELD:
WON Azcor was able to prove that Capulsos termination was
valid No in cases of illegal dismissal, burden of proof
that the dismissal was for a valid and authorized cause rests
on the employer
failure to prove the same would mean that the
dismissal is not justified and is, therefore, illegal
in this case, the pieces of evidence presented by Azcor
was not enough to establish the validity of the dismissal
The contract of employment stipulated that it was for
a period of 6 months, but it was proven that Capulso
continued working after the lapse of such period
2 resignation letters, purportedly executed by Capulso,
were presented but disregarded because
a.
they were exactly worded tend to show that they
were prepared by Azcor
b.
they were written in English, a language that Capulso
was not conversant with
c.
they were pre-drafted with blank spaces such that
details, like the dates of effectivity, were only filled in after
HELD: No.
- The Labor Code created both the NWPC and the RTWPB and
defined their respective powers.
- NWPC - Art 121 (c) To prescribe rules for the determination
of minimum wage, (d) To review regional wage levels set by
the RTWPB to determine if these are in accordance with
prescribed guidelines and national development plans
- RTWPB - Art 122 (b) To fix minimum wage rates in their
region, and to issue corresponding wage orders, subject to
guidelines issued by the NWPC
- Clearly, NWPC, not RTWPB, has power to prescribe rules
and guidelines for the determination of minimum wage;
whatever wage orders RTWPB can issue are subject to such
guidelines, and whatever exemptions are subject to review
by the NWPC.
- NWPC only provides for exemption by establishment, not by
industry, the criterion being (i.e. accumulated losses should
impair at least 25% of paid-up capital). This criterion, Nasipit
failed to meet.
- Further, by exempting all establishments in a distressed
industry, RTWPB takes away the mandated increase in
minimum wage awarded to affected workers, which is
against declared State policy to rationalize fixing of minimum
wage.
-Thus, Guideline No. 3 is void, not only because it lacks NWPC
approval and contains an arbitrarily inserted exemption, but
also because it is inconsistent with avowed Sate policies
protective of labor.