GR No, 220302. June 20,2018 tspan~ CONSOLIDATED DISTILLERS OF THE FAR EAST, INC. P=ttioner, v ROGELN. ZARAGOZA Resooncent spare CAGUIOA J: ‘span> FACTS: ‘span~ Roge! Zaregoce (Zeragocs) was dismissed by Consoligates Distilers of the Far Eas, Inc. (Cones) in 2007. Zaragoza fled a case against Conais for illegal ciemesal ‘span ‘The Lebor Arbiter LA) ruled favor of Zaragoza eno cirected Conais to pay cachwagec/reinstatemert salaries, inclusingellowences, fram the date of Zarogozeilegn clsmissal, up to August 3, 2013, the dete of the LA resoluson. Such resolution became final and executory, span> \When Zaragoza flee for ine execution of juagement, Conaie opcosed ar arguee that its execution of tne Accet Purchase Agreement with Emoeracor Diebler, Inc. (ED!) was @ supervering event that mace it impezsibie to remnctate Zarapozs tonic former positon However, upon Conais/span® fling of a petition for extraordinary remedy, the LA resolution was declares null enc void by the National Labor Relations ‘Commission (NLRC). NLRC directed the payment of separacion pay in leu of reinstatement. held thet zhe reinstatement was indeed rendered impossicle because of te Asset Purchase Agreement, Cut thar baclwages should be computed only unt the finality of the Court's Resolution in the legal Dismissat Case on March 30, 2012 pan> “The Court of Appeals (CA) affemed tne NLRC bur witn masification thac ne bacawages cnaula be compute from & ‘ext of ilagal ciemiccal unc ¢ne finslty of ne decision ofthe CA. ana separation pay computed from tne cate of employment unt finaly of ane CA Decision. CConcis argues thet ft should only be lable for backwoges and separation poy unl the yeor 2007. fe claims thot the execution of the Assec Purchase ‘Agreement end the termination of the subsequent Service Agreement wih EDI made Zara ‘postion co wnicn Zaragoze coulo be reinstates into. 2a postion inexistent as of 2007 ard thet there is no ‘span ISSUE Whether or not the CA erred in averding Zaragoze bachvoges anc seperation pay beyond the occurrence of the supervening event spon HELD: The aacision ofthe CAs frmes win maciicatons, repan~ LABOR LAW: backwages and separation pay Pepa When there isa supervening event thet rencers reinstatement impossible, eckwages is computed fram the tine of ciamisealuntl he finality ofthe ‘cecision oreering separation pay. ‘span When separation pay s ordered sfter tne finality of me decision ordering the reinstatement by reason of a supervening event that makes tne awarc of reinszatemert ro longer possible bachweges is computed from the time of dismissal until the finality ofthe cecision ordering separation pay. The reason for aris s mat when there is an orcer of separation pay in ieu of reinstacement or when the reinstarement aspects waived or subsequently orcered in lignt ofa supervening event making ine awara of reinstatement no longer possible, me employment relationship is terminates only uzon sre Fnality of the decision ordering the separation pay. (Bani Rural Bank Ine. v. De Guzman, GR. No.170904, November 13, 2013) span Inthis case, the enard of separation payin eu of reinstatement, which Cons does net question, was made subsequent to the finaly ofthe Dec’ ‘he llega! Dismissal Case. Concis cannot merefore evade ts latiity 10 Zaragnzs for bsckwages and separation pay computes untl tne nalty ofthis, Decision which affirms the orcer granting separation pay. Thus, Cordis should pay Zaragoza backwages from the aate ne was legally Gisissed on 20,2007 unc che fnalty of cis Decision. Novem epan> span ‘spans