MILAN vs.

NLRC, 2015
Leonen, J.
SOCIAL UTILITY THEORY

Our laws provide for a clear preference for labor. This is in recognition of the asymmetrical power of those
with capital when they are left to negotiate with their workers without the standards and protection of
law. In cases such as these, the collective bargaining unit of workers are able to get more benefits and in
exchange, the owners are able to continue with the program of cutting their losses or wind down their
operations due to serious business losses. The company in this case did all that was required by law.

The preferential treatment given by our law to labor, however, is not a license for abuse.84 It is not a signal
to commit acts of unfairness that will unreasonably infringe on the property rights of the company. Both
labor and employer have social utility, and the law is not so biased that it does not find a middle ground to
give each their due.

Clearly, in this case, it is for the workers to return their housing in exchange for the release of their
benefits. This is what they agreed upon. It is what is fair in the premises.

The National Labor Relations

Commission may preliminarily
determine issues related to rights
arising from an employer-employee
relationship

The National Labor Relations Commission has jurisdiction to determine, preliminarily, the parties’ rights over
a property, when it is necessary to determine an issue related to rights or claims arising from an employer-
employee relationship.

Article 217 provides that the Labor Arbiter, in his or her original jurisdiction, and the National Labor
Relations Commission, in its appellate jurisdiction, may determine issues involving claims arising from
employer-employee relations.

ART. 217. JURISDICTION OF LABOR ARBITERS AND THE COMMISSION. – (1) Except as otherwise provided
under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide within
thirty (30) calendar days after the submission of the case by the parties for decision without extension, even
in the absence of stenographic notes, the following cases involving workers, whether agricultural or non-
agricultural:

1. Unfair labor practice cases;

2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages,
rates of pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-
employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality
of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all
other claims, arising from employer-employee relations including those of persons in domestic or
household service, involving an amount exceeding five thousand pesos (P5,000.00), regardless of
whether accompanied with a claim for reinstatement.

(2) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
(Emphasis supplied)
Petitioners’ claim that they have the right to the immediate release of their benefits as employees separated
from respondent Solid Mills is a question arising from the employer-employee relationship between the
parties.

Claims arising from an employer-employee relationship are not limited to claims by an

employee. Employers may also have claims against the employee, which arise from the same relationship.

In Bañez v. Valdevilla,74 this court ruled that Article 217 of the Labor Code also applies to employers’ claim
for damages, which arises from or is connected with the labor issue. Thus: chanRoblesvi rtua lLawl ibra ry

Whereas this Court in a number of occasions had applied the jurisdictional provisions of Article 217 to claims
for damages filed by employees, we hold that by the designating clause “arising from the employer-
employee relations” Article 217 should apply with equal force to the claim of an employer for actual
damages against its dismissed employee, where the basis for the claim arises from or is necessarily
connected with the fact of termination, and should be entered as a counterclaim in the illegal dismissal
case.75

Bañez was cited in Domondon v. National Labor Relations Commission.76 One of the issues in Domondon is
whether the Labor Arbiter has jurisdiction to decide an issue on the transfer of ownership of a vehicle
assigned to the employee. It was argued that only regular courts have jurisdiction to decide the issue.77 chanroble svi rtual lawlib rary

This court ruled that since the transfer of ownership of the vehicle to the employee was connected to his
separation from the employer and arose from the employer-employee relationship of the parties, the
employer’s claim fell within the Labor Arbiter’s jurisdiction.78 chanroble svirtual lawlib rary

As a general rule, therefore, a claim only needs to be sufficiently connected to the labor issue raised and
must arise from an employer-employee relationship for the labor tribunals to have jurisdiction.

PRINCIPLE OF THE STRONG ARM OF EQUITY

The RTC’s issuance of the writ of preliminary injunction to enjoin the petitioner from proceeding withthe
foreclosure of the mortgages was plainly erroneous and unwarranted.

A preliminary injunction is an order granted at any stage of an action prior to the judgment or final order
requiring a party or a court, agency or a person to refrain from a particular act or acts. 27 It is the "strong arm
of equity," an extraordinary peremptory remedy that must be used with extreme caution, affecting as it does
the respective rights of the parties.28 The requirements for the issuance of a writ of preliminary injunction or
TRO are enumerated in Section 3, Rule 58 of the Rules of Court, to wit:

Section 3. Grounds for issuance of preliminary injunction. - A preliminary injunction may be granted when it
is established:

(a) That the applicant is entitled to the relief demanded, and the whole or part of such relief consists
in restraining the commission or continuance of the act or acts complained of, or in requiring the
performance of an act or acts, eitherfor a limited period or perpetually;

(b) That the commission, continuance or non-performance of the act or acts complained of during
the litigation would probably work injustice to the applicant; or
 (c) That a party, court, agency or a person is doing, threatening, or is attempting to do, or is
procuring or suffering to be done, some act or acts probably in violation of the rights of the
applicant respecting the subject of the action or proceeding, and tending to render the judgment
ineffectual.

In City Government of Butuan v. Consolidated Broadcasting System (CBS), Inc.,29 the Court restated the
nature and concept of a writ of preliminary injunction, as follows:

A preliminary injunction is an order granted at any stage of an action or proceeding prior to the judgment
orfinal order requiring a party or a court, an agency, or a person to refrain from a particular act or acts. It may
also require the performance of a particular act or acts, in which case it is known as a preliminary mandatory
injunction. Thus, a prohibitory injunction is one that commands a party to refrain from doing a particular act,
while a mandatory injunction commands the performance of some positive act to correct a wrong in the
past.