Duty Free Philippines v.

Rossano Mojica,
GR No. 166365, 30 September 2005, First Division, Ynares-Santiago

Principles of law: Complaints of civil service employees come under the jurisdiction of the CSC
and not NLRC; any decision of the Labor Arbiter involving a CS employee is void for want of
jurisdiction

I. Facts

Mojica was an employee of Duty Free Philippines who was charged with neglect resulting to
considerable damage to or loss of materials, assets and properties of DFP;

Hence, the discipline committee of Duty Free considered her resigned with forfeiture of all
benefits except salary and accrued leave credits;

As a result a complaint for illegal dismissal with prayer of full back wages and reinstatement
was filed by Mojica before the NLRC;

The Labor Arbiter awarded the back wages including an order for reinstatement; this was,
however, reversed by NLRC;

A motion for reconsideration was likewise dismissed by NLRC;

A petition for Certiorari under Rule 65 was filed by Mojica before the CA, which court
granted the reliefs prayed for; Duty Free petitioned before the SC;

II. Issue

1. Whether the filing by Mojica of the complaint before the NLRC was proper
2. What is the nature of DFP?

III. Held
1. No, DFP being a government agency attached with DOT, complaints against it are not
cognizable by NLRC.

DFP was created under Executive Order (EO) No. 46 on September 4, 1986 primarily to
augment the service facilities for tourists and to generate foreign exchange and revenue
for the government. In order for the government to exercise direct and effective control
and regulation over the tax and duty free shops, their establishment and operation was
vested in the Ministry, now Department of Tourism (DOT), through its implementing
arm, the Philippine Tourism Authority (PTA). All the net profits from the merchandising
operations of the shops accrued to the DOT.
2. EO No. 292 or The Administrative Code of 1987 empowered the Civil Service
Commission to hear and decide administrative cases instituted by or brought before it
directly or on appeal, including contested appointments, and review decisions and actions
of its offices and of the agencies attached to it.