[G.R. No. 212054. March 11, 2015.]

ST. LUKE'S MEDICAL CENTER, INC vs. MARIA THERESA V. SANCHEZ

Facts:

Sanchez is a Staff Nurse at St. Luke's Meica! "enter, #nc.

#nc. $SLM"%. Recors re&ea! that

at the en of her shift on Ma 2(, 2011, Sanchez )asse throu*h the SLM" "entra!ization
+ntrance+-it here she as su/ecte to the stanar ins)ection )roceure / the securit
 )ersonne!. he Securit Guar onut, notice a )ouch in her /a* an aske her to o)en the
sa3e.
sa3 e. he sai )ouc
)ouchh cont
contain
aine
e assort
assort3en
3entt of 3eica
3eica!! sto
stocks
cks hich
hich er
eree su/
su/se
seuent
uent!
!
confiscate
confiscate.. Sanchez as /rou*ht to the SLM" #nous
#nousee Securit
Securit 6e)art3en
6e)art3entt $#S6% here
she co3)!ie ith the irecti&e to rite an #ncient Re)ort an a!so su/3itte an unate
hanritten !etter of a)o!o*.

7n initia! in&esti*ation as a!so conucte / the SLM" 6i&ision of Nursin* hich
thereaf
thereafter
ter ser&e
ser&e San
Sanchez
chez a notice
notice to e-)!ain
e-)!ain.. "onse
"onseuent
uent!
!,, Sanchez
Sanchez as )!ace
)!ace
 un
uner 
er 
 )re&enti&e sus)ension effecti&e 8une 9, 2011 unti! the conc!usion of the in&esti*ation / SLM"'s
+3)!oee an La/or Re!ations 6e)art3ent $+LR6% hich, thereafter, reuire her to e-)!ain
h she shou! not /e ter3inate fro3 ser&ice for acts of ishonest ue to her )ossession of the
uestione ite3s in &io!ation of Section
Section 1, Ru!e # of the SLM" "oe of 6isci6isci)!ine.
)!ine. #n res)onse,
she su/3itte a !etter, hich 3ere! reiterate her c!ai3s in her )re&ious !etter. She !ikeise
reueste for a case conference, hich
hich SLM" *rante. 7fter hearin* her sie, SLM", on 8u! 4,
2011,, infor3e
2011 infor3e Sanchez of its ecision to ter3i
ter3inate
nate her e3)!o
e3)!o3ent
3ent effecti&e
effecti&e c!osi
c!osin*
n* hours of 
8u! :, 2011. his )ro3)te her to fi!e a co3)!aint for i!!e*a! is3
is3issa!
issa! /efore the NLR".

#n her )ositi
)osition
on )a)er,
)a)er, Sanchez
Sanchez 3ai
3ainta
ntaine
ine
 her inn
innoce
ocence,
nce, c!a
c!ai3i
i3in*
n* that
that she ha no
intent
intention
ion of /ri
/rin*i
n*in*
n* outsi
outsiee the SLM
SLM"'s
"'s )re3is
)re3ises
es the ues
uestio
tione
ne ite3s
ite3s since
since she 3er
3ere!
e!
ina&ertent! !eft the )ouch containin* the3 in her /a* as she *ot cau*ht u) in ork that a.
She further asserte that she cou! not /e foun *ui!t of )i!fera*e since the uestione ite3s

foun in her )ossession ere neither SLM"'s nor its e3)!oees' )ro)ert. She a!so stresse the
fact that SLM" i not fi!e an cri3ina!
cri3ina! char*es a*ainst her. 7nent
7nent her su))os
su))ose
e a3is
a3ission
sion in
her hanritten !etter, she c!ai3e that she as unassiste / counse! hen she e-ecute the
sa3e an, thus, as ina3issi/!e for /ein* unconstitutiona!.

;or its )art, SLM" contene that Sanchez as &a!i! is3isse for ust cause as she
ha co33itte
co33itte theft in &io!
&io!ation
ation of Section
Section 1, Ru!e # of the SLM" "oe of 6isci
6isci)!ine,
)!ine, hich
 )unishes acts of ishonest, i.e.
i.e.,, ro//er, theft, )i!fera*e, an 3isa))ro)riation of funs, ith
ter3ination fro3 ser&ice.

he La/or 7r/iter $L7% ru!e that Sanchez as &a!i! is3isse for intentiona!! takin*
the )ro
)ro)er
)ert
t of SLM
SLM"'s
"'s c!i
c!ient
entss for her on )er
)erson
sona!
a! /en
/enefi
efit,
t, hi
hich
ch con
consti
stitut
tutes
es an act of 
ishonest as )ro&ie uner SLM"'s "oe of 6isci)!ine. he NLR" re&erse an set asie the
 

L7 ru!in*, an he! that Sanchez as i!!e*a!! is3isse. "7 u)he! the NLR", ru!in* that the
!atter i not *ra&e! a/use its iscretion in finin* that Sanchez as i!!e*a!! is3isse.

Issue:

<hether or not res)onent Sanchez as i!!e*a!! is3isse / SLM".

Held:

7rtic!e 2(: $for3er! 7rtic!e 2=2% of the La/or "oe )ro&ies that an e3)!oer 3a
ter3inate an e3)!o3ent for an of the fo!!oin* causes> $a$ a% serious 3isconuct or wll!ul
ds"#ede$ce #% t&e e(l"%ee "! t&e law!ul ")de)s "! &s e(l"%e) ") &s )e()ese$tat*e $
c"$$ect"$ wt& &s w")+ ? ---

 Note that for an e3)!oee to /e &a!i! is3isse on this *roun, the e3)!oer's orers,
re*u!ations, or instructions 3ust /e> $1% )eas"$a#le a$d law!ul, $2% su!!ce$tl% +$"w$ t" t&e
e(l"%ee, an $9% $ c"$$ect"$ wt& t&e dutes w&c& t&e e(l"%ee &as #ee$ e$aed t"
dsc&a)e.

he "ourt fins that Sanchez as &a!i! is3isse / SLM" for her i!!fu! isre*ar
an iso/eience of Section 1, Ru!e # of the SLM" "oe of 6isci)!ine, hich reasona/!
 )unishes acts of ishonest, i.e.i.e.,, @theft, )i!fera*e of hos)ita! or coe3)!oee )ro)ert, . . . or its
at
atte
tempt
mpt in anyany form
form or mannmanner er fro
fro3
3 the hos)it
hos)ita!,
a!, co
coe3)
e3)!o
!oees
ees,, oct
octors
ors,, &isito
&isitors,
rs, [an]
[an]
custo3ers
custo3 ers $e-terna
$e-terna!! an interna!%@
interna!%@ ith ter3ination
ter3ination fro3 e3)!o3ent. Such act is o/&ious!
connecte ith Sanchez's ork, ho, as a staff nurse, is taske ith the )ro)er stearshi) of 
3eica! su))!ies. Si*nificant!,
Si*nificant!, recors sho tthat hat Sanchez 3ae a cate*orica! a3ission in her 
hanritten
hanr itten !ett
!etter
er A i.e.
i.e.,, "[k]a
"[k]ahihitt alam
alam kong
kong bawa
bawall ay nanagaw
gawaa kong
kong [maka
[makapapag-u
g-uwi
wi]] ng 
 gamit"   A that es)ite her kno!e*e of its e-)ress )rohi/ition uner the SLM" "oe of 

6isci)!ine,
that SLM"she sti!! knoin*!
cannot /e fau!te /rou*ht out the the
in construin* su/ect 3eica!
takin* of theite3s ith her.ite3s
uestione #t is a)t to c!arif
as an act of 
ishonest $)articu!ar!, as theft, )i!fera*e, or its atte3)t in an
an for3 or 3anner% consierin* that
the intent to *ain 3a /e reasona/! )resu3e fro3 the furti&e takin* of usefu! )ro)ert
a))ertainin* to another.

 Note that Section 1, Ru!e 1 of the SLM" "oe of 6isci)!ine is further su))!e3ente /
the co3)an
co3)an )o!ic
)o!ic re
reuir
uirin*
in* the turno
turno&er
&er of e-cess
e-cess 3e
3eica
ica!! su)
su))!i
)!ies
esite
ite3s
3s for )ro
)ro)er 
)er 
han!i
han!in*
n* an )ro
)ro&i
&iin*
in* a restr
restrict
iction
ion on takin*
takin* an /ri
/rin*i
n*in*
n* such
such ite3s
ite3s out of the SLM
SLM""
 )re3ises ithout the )ro)er authorization or @)ass@ fro3 the officia! concerne, hich Sanchez
as eua!! aare thereof. 7s it is c!ear that the co3)an )o!icies su/ect of this case are
reasona/!e an !afu!, sufficient! knon to the e3)!oee, an e&ient! connecte ith the
!atter's ork, the "ourt conc!ues that SLM" is3isse Sanchez for a ust cause.
 

;ina!!, the "ourt fins it inconseuentia! that SLM" has not suffere an actua! a3a*e.
<hi!e a3a*e a**ra&ates the char*e, its a/sence oes not 3iti*ate nor ne*ate the e3)!oee's
!ia/i!it
!ia/i!it.. Neither is SLM"'
SLM"'ss nonfi
nonfi!in*
!in* of the a))ro)
a))ro)riate
riate cri3ina! char*es re!e&ant to this
ana!s
ana! sis.
is. 7n e3)
e3)!o
!oee'
ee'ss *ui
*ui!t
!t or inn
innoce
ocence
nce in a cri3in
cri3ina!a! cas
casee is not eter3
eter3ina
inati&
ti&ee of the
e-istence of a ust or authorize
authorize cause for his or her is3issa!.
is3issa!. #t is e!!sett!
e!!sett!e
e that con&iction
in a cri3i
cri3ina!
na! case is not necessar to fin ust cause for ter3inat
ter3ination
ion of e3)!o3ent,
e3)!o3ent, as in this
case. "ri3ina! an !a/or cases in&o!&in* an e3)!oee arisin* fro3 the sa3e infraction are
se)arate an istinct )roceein*s hich shou! not arrest an u*3ent fro3 one to the other.

[G.R. No. 1B12=2. No&e3/er 2B, 2019.]

 

SKM ART CRAFT C-R-RATI-N *s. /AUCA

Facts:
he 29 res)onents here ere e3)!oe / )etitioner SCM 7rt "raft "or)oration hich
is en*a*e in the hanicraft /usiness. Dn 7)ri! 1=, 2000, aroun 1>12 a.3., a fire occurre at the
ins)ection an recei&in*re)air)ackin* area of )etitioner's )re3ises in #ntra3uros, Mani!a. he
fire in&esti*ati
in&esti*ation
on re)ort
re)ort 0 state that the structure an the /each ru//er /ui!in* ere tota!!
a3a*e.. 7!so /urne ere four container
a3a*e container &ans an a trai!
trai!er
er truck. he esti3
esti3ate
ate a3a*e as
E22 3i!!ion.

Dn Ma =, 2000, )etitioner infor3e res)onents that it i!! sus)en its o)erations for 
si- 3onths, effecti&e Ma (, 2000. Dn Ma 1:, 2000, on! ei*ht as after recei&in* notice of 
the sus)ension of )etitioner's o)erations, the 29 res)onents $an other coorkers% fi!e a
co3)!aint for i!!e*a! is3issa! in NLR". he a!!e*e that there as iscri3ination in choosin*
the orkers to /e !ai off an that )etitioner ha isco&ere that 3ost of the3 ere 3e3/ers of 
a ne!or*anize union.

Eetitioner enie the c!ai3 of i!!e*a! is3issa!

Eetitioner is3issa! an sai that 7rtic!e
7rtic!e 2=: of the La/or 
"oe a!!os the bona
the bona fide sus)ension
fide sus)ension of a /usiness or unertakin* for a )erio not e-ceein* si-
3onths. Eetitioner c!ai3e that the fire cost it 3i!!ions in !osses an that it is i3)ossi/!e to
resu3e its nor3a! o)erations for a si*nificant )erio of ti3e. 1

he La/or 7r/iter ru!e that res)onents ere i!!e*a!! is3isse an orere )etitioner 
to reinstate the3 an )a the3 /ack a*es. he Nationa! La/or Re!ations "o33ission set asie
the La/or 7r/iter's 6ecision an ru!e that there as no i!!e*a! is3issa!. he "7 set asie the
 NLR" 6ecision an Reso!ution an reinstate the La/or 7r/iter's
7r/iter's 6ecision.

Issue:
<hether or not the res)onents ere i!!e*a!! is3isse.

Held:
7rtic!e 2=: of the La/or "oe )ro&ies that Fthe bona
Fthe bona fide sus)ension
fide sus)ension of the o)erations
of a /usiness or unertakin* for a )erio not e-ceein* si- $:% 3onths, or the fu!fi!!3ent / the
e3)!oee of a 3i!itar or ci&ic ut sha!! not ter3inate e3)!o3ent. #n a!! such cases, the
e3)!oer sha!! reinstate the e3)!oee to his for3er )osition ithout !oss of seniorit ri*hts if he
inicates his esire to resu3e his ork not !ater than one $1% 3onth fro3 the resu3)tion of 
o)erations of his e3)!oer or fro3 his re!ief fro3 the 3i!itar or ci&ic ut.

he NLR" correct! note that the co3)!aint for i!!e*a! is3issa! fi!e / res)onents
as )re3ature since it as fi!e on! ei*ht as
a s after )etitioner announce that it i!! sus)en its
o)erations for si- 3onths. #n Nippon
#n  Nippon Housing Phil., In. !. eynes,
eynes , e sai that a co3)!aint for 
 

i!!e*a! is3issa! fi!e )rior to the !a)se of sai si- 3onths is *enera!! consiere as )re3ature!
fi!e.

#n this case, hoe&er, e a*ree ith the La/or 7r/iter an the "7 that res)onents ere
a!rea consiere i!!e*a!! is3isse since )etitioner fai!e to reca!! the3 after si- 3onths,
hen its bona
its bona fide sus)ension
fide sus)ension of o)erations !a)se. <e str
stress
ess that uner 7rtic!e 2=: of the La/or 
"oe, the e3)!o3ent i!! not /e ee3e ter3inate if the  bona fide sus)ension
fide sus)ension of o)erations
oess not e-cee si- 3onths
oe 3onths.. Hut if the sus)ensi
sus)ension
on of o)er
o)erati
ations
ons e-cees si- 3onths
3onths,, the
e3)!o3ent i!! /e consiere ter3inate.

Eetitioner c!ai3s no that es)ite its !i/era!it an *esture of *ooi!!, none of the
res)onents re)orte for ork, an that asie fro3 res)onents' se!fser&in* c!ai3s 3ae in the
for3
for3 of 3anif
3anifest
estati
ations
ons fi!e
fi!e /ef
/efore
ore the La/or
La/or 7r 7r/it
/iter
er,, not
nothin
hin*
* on recor
recor i!!
i!! sho
sho
 tha
thatt
res)onents actua!! )resente the3se!&es to )etitioner for reinstate3ent.

<e serious!
serious! ou/t )etitioner's !i/era!it or *ooi!!. #n its 3anifestation, )etitioner e&en
o))ose
o))ose  the 3otion fi!e / res)onents
res)onents for e-ecution of the reinstate3ent
reinstate3ent as)ect of the La/or 
7r/it
7r/ iter'
er'ss 6ec
6ecisi
ision.
on. 7n he
henn the La/or
La/or 7r/iter
7r/iter *ra
*rante
nte
 the 3ot
3otion
ion for e-ecution
e-ecution of the
reinstate3ent as)ect of her ecision, )etitioner fi!e a 3anifestation an 3otion to uash the rit
of e-ecution. #n this 3otion to uash, )etitioner c!ai3e
c!ai3e that none of the res)onents inicate
their esire to return to ork either throu*h the office of the La/or 7r/iter or throu*h their 
counse!, / fi!in* the a))ro)riate notice or 3anifestation. Nota/!, )etitioner ante the La/or 
7r/iter to /e!ie&e that no 3anifestation as fi!e / res)onents. Hut no, )etitioner a3its that
3anifestations ere in fact fi!e / res)onents /efore the La/or 7r/iter. Eetitioner's !ack of 
canor to the La/or 7r/iter is unfair. Eetitioner's ec!aration that it is i!!in* to reinstate
res)onents a!so !acks creence /ecause it as in fact o))osin* such reinstate3ent.

 No, )etitioner
)etitioner an a!3ost a!! of the res)onents ha&e a*ree to sett!e this case.
#n su3, hi!e e a*ree ith the "7 in settin*
settin* asie the NLR" 6ecisi
6ecision
on an Reso!ution
Reso!ution an in
reinstatin* the La/or 7r/iter's 6ecision, the "7 an La/or 7r/iter's 6ecisions i!! no /e

su/ect to the sett!e3ent a*ree3ents entere into / )etitioner

) etitioner an a!3ost a!! of the res)onents.
 

[G.R. No. 1(0059. March 24, 2014.]

NAV-TAS SHI2ARD C-R-RATI-N a$d 3ESUS VILLAFL-R  vs

 vs. INN-CENCI-
M-NTALLANA

Facts:

he Res)on
Res)onent
entss fi!e
fi!e a co3)!a
co3)!aint
int for i!
i!!e*a
!e*a!! $co
$const
nstruc
ructi&
ti&e%
e% is
is3i
3issa
ssa!,
!, it
ith
h 3on
3onee
c!
c!ai
ai3
3s, a*ai
a*ains
nstt the )eti )etiti
tion
oner
erss, Na
Na&o
&ottas Shi)
Shi) ar
ar "or)
"or)or
orat
atiion #ompany$
#ompany$  an its
EresientGenera! Mana*er, 8esus Ii!!af!or. he res)onents a!!e*e that on Dcto/er 20, 2009,
the co3)an's e3)!oees $a/out 100% ere ca!!e to a 3eetin* here Ii!!af!or to! the3>
@ %agsasara na ako ng negosyo, babayaran ko na lang kayo ng separation pay dahil wala na
akong pangsweldo sa inyo. %arami akong mga utang sa krudo, yelo, at iba pa.@ pa .@ Since then, the
ere not a!!oe to re)ort for ork /ut Ii!!af!or's )ro3ise to *i&e the3 se)aration )a ne&er 
3ateria!ize es)ite their )ersistent e3ans an fo!!ou)s.

he )etitioners, on the other han, c!ai3e that ue to the @seasona! !ack of fish cau*ht
an unco!!ecte recei&a/!es, the co3)an suffere financia! re&erses. #t as thus constraine to
te3)orari! cease o)erat
te3)orari! o)erations.
ions. he )roecte
)roecte that the co3)an cou! resu3e o)erations
o)erations /efore
thee en
th en of si-
si- 3ont
3onths
hs or on 7)ri!
)ri! 22, 2004.
2004. #t re)or
re)orte
te
 the
the te3)
te3)or
orar
ar shuto
shuton
n to the
the
6e)art
6e) art3en
3entt of La/
La/or
or an +3)!o
+3)!o3ent
3ent,, Nation
Nationa!
a! "a)it
"a)ita!
a! Re*
Re*ion
ion #&'(-N)*$
#&'(-N)*$ an
 an fi!e an
+sta/!ish3ent er3ination
er3ination Re)ort.

he La/or 7r/iter is3isse the co3)!aint for !ack of 3erit, /ut aare the res)onen
res)onents
ts
19th 3onth )a an ser&ice incenti&e !ea&e )a for the ear 2009. L7 ru!e that the res)onents
cou! not ha&e /een i!!e*a!! is3isse. he NLR" is3isse the a))ea! for !ack of 3erit an
affir3e the L7.

he "7 foun 3erit in the res)onents' su/3ission that the co3)an's shuton as not
te3)or
te3)orar
ar,, /ut )er3
)er3anen
anent.
t. <hi!e
<hi!e it ackno
ackno!e
!e*e
*e that
that initia
initia!!
!!,, the shu
shuto
ton
n as on!
te3)orar, it @has ri)ene into a c!osure or cessation of o)erations@ after it e-ceee the si-
3onthss a!!oa/!e )erio
3onth )erio uner 7rtic!e
7rtic!e 2=: of the La/or "oe. #t thus /eca3e a is3 is3issa!
issa!,, it
 )ointe out that, / o)eration of !a, hen the )etitioners fai!e to reinstate
reinstate the res)onents after 
the !a)se of si- 3onths. #t note that @urin* the )roceein*s [/efore] the L7 co&erin* a )erio
in e-cess of si- 3onths, there is no shoin* on recor that notices to return to ork ere *i&en
to the )etitioners or that o)erations ha&e resu3e.@ he "7 ec!are that the NLR" co33itte
*ra&e a/use of iscretion in u)ho!in* L7Js ru!in* that no i!!e*a! is3issa! took )!ace as the L7
isre*are
isre*are the o/tainin* facts an the a))!ica/!e )ro&is
)ro&isions
ions of !a.
!a. #t set asie the cha!!
cha!!en*e
en*e
 NLR" ecision
ec ision an *rante the res)onents' c!ai3s for ser&ice incenti&e !ea&e )a, 19th 3onth
 )a, se)aration
se)aration )a an /acka*es.

he )etitioners no seek re!ief fro3 this "ourt throu*h the )resent Ru!e 45 a))ea! on the
*roun that the "7 co33itte a re&ersi/!e error of !a w&e$ t awa)ded se(a)at"$ (a% a$d

#ac+waes $"twt&sta$d$ t&e cl"su)e "! t&e c"(a$%'s #us$ess "(e)at"$s . he ar*ue
that uner the circu3stances, the res)onents are not entit!e to /acka*es, )ursuant to 7rtic!e
 

2=9 of the La/or "oe. he 3aintain that a!thou*h the @suffere /usiness !osses that !e to the
is)osition of their fishin* &esse!s in orer to )a their e/ts, iese!, sa!aries an others, the
*a&e the se)aration )as of their e3)!oees.@

Issues:

4 <hether 7rtic!e
7rtic!e 2=9 of the La/or "oe on retrench3ent or 7rtic!e 2=: of the La/or
"oe on te3)orar shuton is a))!ica/!e in this case.

2 <hether
<hether or not the
the res)onent
res)onentss ere
ere i!!e*a!!
i!!e*a!! is3i
is3isse
sse an
an enti
entit!e
t!e "
"7
7 aar.

Held:

1.

7ccorin* to the "7, the @)etitioners anchor their ar*u3ents 3ain! on 7rtic!e 2=9 of 
the La/or "oe, statin* that )ri&ate res)onents resorte to retrench3ent an )er3anent c!osure
of /usiness, hi!e )ri&ate res)onents 3aintain that hat is a))!ica/!e is 7rtic!e 2=: . . . as the
c!osure of /usiness as 3ere! te3)orar.
te3)orar.@@

he )etitioners unertook a te3)orar shuton. #n fact, the co3)an notifie the 6DL+
of the shuton an fi!e an +sta/!ish3ent er3ination Re)ort containin* the na3es of the
affecte e3)!oees. he )etitioners e-)ecte the co3)an to reco&er /ef/efore
ore the en of the si-
3onth shuton )erio, /ut unfortunate!, no reco&er took )!ace. hus, the shuton /eca3e
 )er3anent. 7ccorin* to the )etitioners, the *a&e the co3)an's e3)!oees their se)aration
 )a.

<e isa*ree ith the co3)an's )osition that it resorte to a retrench3ent uner 7rtic!e
2=9 of the La/or "oe? it as a te3)orar shuton uner 7rtic!e 2=: here the e3)!oees are
consiere on f!oatin* status or hose e3)!o3ent is te3)orari! sus)ene. "itin* +ebuguero
"itin*  +ebuguero
!. National abor *elations )ommission,
)ommission , the "7 as correct
correct hen it sai that @[t]here is no
s)ecific )ro&ision of !a hich treats of a te3)orar retrencSh3ent or !aoff.@ 54
5.

U$de) t&e c)custa$ces, we ca$$"t sa% t&at t&e c"(a$%'s e(l"%ees we)e lleall%
dsssed6 )at&e), t&e% l"st t&e) e(l"%e$t #ecause t&e c"(a$% ceased "(e)at"$s  after 
fai!in*
fai!in* to reco&er fro3 their financia!
financia! re&erses. he "7 itse!f reco*nize hat ha))ene to the
co3)an hen it o/ser&e> @he te3)orar shuton has ri)ene into a c!osure or cessation of 
o)erations. #n this situation[,] )ri&ate res)onents are efinite! entit!e to the corres)onin*
 /enefits of se)aration.@ 55 +&en the res)onents ha an ink!in* of the co3)an's fate hen the
c!ai3e /efore the L7 that on Dcto/er 20, 2009, the ere ca!!e, to*ether ith a!! the other 
e3)!oees of the co3)an, / Ii!!af!or? the !atter a!!e*e! to! the3 that he ou! /e c!osin*
the co3)an, /ut ou! *i&e the3 their se)aration )a. e a!so isc!ose to the3 the reason A 
 

he cou! no !on*er )a their sa!aries ue to the co3)an's unsett!e financia! o/!i*ations on fue!
an ice an other ine/teness.

he res)onents' &er/a! account of hat ha))ene urin* the 3eetin*, )articu!ar! the
co3)a
co3 )an
n's
's i3
i33i3ine
nent
nt c!
c!os
osur
ure,
e, to our
our 3in
3in,, conf
confir
ir3e
3e the
the co3)
co3)an
an's
's ire
ire si
situ
tuat
atio
ion.
n. he
he
te3)orar shuton, it a))ears, as a !ast itch effort on the )art of Ii!!af!or to 3ake the
co3)an's o)erations &ia/!e /ut, as it turne out, the effort )ro&e futi!e. he shuton /eca3e
 )er3anent asa s the "7 itse!f ackno!e*e. he "7 3isa))reciate the fac facts
ts hen it o)ine that
the res)onents ere i!!e*a!! is3isse /ecause the ere not reinstate / the )etitioners after 
the !a)se of the co3)an's te3)orar shuton. #t !ost si*ht of the fact that the co3)an i not
resu3e o)erations an3ore, a situation the "7 itse!f reco*nize. he res)onents, therefore, ha
no 3ore o/s to *o /ack to? hence, their nonreinstate3ent.

#n thes
thesee !i*ht
!i*hts,
s, the
the "7 as not
not on!
on! inco
incorr
rrect
ect fro3
fro3 the
the )o
)oin
intt of !a?
!a? it !ike
!ikeis
isee
isre*are, or at the &er !east, *ross! 3isa))reciate the e&ience on recor A that the
 )etitioner as in istress an &ad te(")a)l% sus(e$ded ts "(e)at"$s , an u! ref!ecte
these circu3stances to the 6DL+. ;ro3 this )ers)ecti&e, there as no *ra&e a/use of iscretion
to ustif the "7's re&ersa! of the NLR"'s finin*s an conc!usions.

S$ce t&e)e was $" lleal dsssal, t&e )es("$de$ts a)e $"t e$ttled t" #ac+waes . he
e&ience on han su/stantia!! shos that the co3)an c!ose on ue to serious /usiness
re&erses, an authorize cause for ter3ination of e3)!o3ent.
e3)!o 3ent. ;ai!ure to notif the res)onents in
ritin* of the c!osure of the co3)an i!! not in&a!iate the ter3ination of their e3)!o3ent,
 /ut the co3)an has to )a the3 no3ina! a3a*es for the &io!ation of their ri*ht to )roceura!
ue )rocess. C"$sde)$ t&at t&e c"(a$%'s cl"su)e was due t" se)"us !$a$cal )e*e)ses,
t s $"t leall% #"u$d t" *e t&e se(a)ated e(l"%ees se(a)at"$ (a% .
 

[G.R. No. 204B:1. 7)ri! 2, 2014.]

EMERITUS SECURIT2 AND MAINTENANCE S2STEMS, INC.  vs. 3ANRIE C. DAILI7

Facts:

#n 7u*ust 2000, )etitioner hire res)onent as one of its securit *uars. 6urin* his
e3)!o3ent, res)onent as assi*ne to )etitioner's &arious c!ients. Dn 10 6ece3/er 2005,
res)onent as re!ie&e fro3 his )ost.

Dn 14 8u! 200:, res)onent fi!e a co3)!aint for i!!e*a! is3issa!, uner)a3ent of 
sa!aries an non)a3ent of fu!! /acka*es /efore the NLR". Res)onent c!ai3e that on
&arious ates in 6ece3/er 2005 an fro3 8anuar to Ma 200:, he ent to )etitioner's office to
fo!!o
fo!!ou)
u) his ne-t
ne-t assi*n
assi*n3ent
3ent.. 7f
7fter
ter 3ore
3ore than
than si- 3onths
3onths since
since his !ast
!ast ass
assi*n
i*n3ent
3ent,, sti!!
sti!!
res)onent as not *i&en a ne assi*n3ent. Res)onent ar*ue that if an e3)!oee is on
f!oatin* status for 3ore than si- 3onths, such e3)!oee is ee3e i!!e*a!! is3isse.

Eetitioner enie is3issin* res)onent. Eetitioner a3itte that it re!ie&e res)onent

fro3 his !ast assi*n3ent on 10 6ece3/er 2005? hoe&er, )etitioner reuire res)onent to
re)ort to the hea office ithin 4= hours fro3 recei)t of the orer of re!ief. Res)onent a!!e*e!
fai!e to co3)!. Eetitioner further a!!e*e that it ha infor3e res)onent that he ha /een
a/sent ithout officia! !ea&e for the 3onth of 8anuar 200:, an that his fai!ure to re)ort ithin
B2 hours fro3 recei)t of the notice ou! 3ean that he as no !on*er intereste to continue his
e3)!o3ent. Eetitioner a!so c!ai3e that there as no shoin* that res)onent as )re&ente
fro3 returnin* to his ork an that it ha consistent! 3anifeste its i!!in*ness to reinstate hi3
to his for3er )osition. #n aition, the fact that there as no ter3ination !etter sent to res)onent
 )ur)orte! )ro&e that res)onent as not is3isse.

he La/or 7r/iter ru!e that co3)!ainant as i!!e*a!! is3isse. Eetitioner a))ea!e /efore the
 NLR", hich is3isse the a))a))ea!
ea! for !ack of 3erit. he "ourt of 7))ea!s affir3e the finin*
of the La/
La/or
or 7r/it
7r/iter
er an the NLR
NLR" " that
that res)on
res)onent
ent as i!!e*a!
i!!e*a!!
! is
is3is
3isse
se / )etiti
)etitioner
oner..
oe&er, the "ourt of 7))ea!s set asie the La/or 7r/iter an the NLR"'s reinstate3ent orer.
#nstea, the "ourt of 7))ea!s orere the )a3ent of se)aration )a, in&okin* the octrine of 
straine re!ations /eteen the )arties.

Issues:

1 <hethe
<hetherr res
res)on
)onent
ent 6a
6ai!
i!e*
e* as i!!
i!!e*a!
e*a!!! is3i
is3isse
sse.
.
2 #f he as,
as, hether
hether re
res)one
s)onent
nt is eentit!
ntit!e
e to se)
se)arati
aration
on )a
)a,, instea
instea o
off rein
reinstate
state3ent.
3ent.
 

Held:

1.

Eetitioner a3its re!ie&in* res)onent fro3 his )ost as securit *uar on 10 6ece3/er 
2005. here is a!so no is)ute that res)onent re3aine on f!oatin* status at the ti3e he fi!e his
co3)!aint for i!!e*a! is3issa! on 1: 8une 200:. #n other ors, res)onent as on f!oatin*
status fro3 10 6ece3/er 2005 to 1: 8une 200: or 3ore than si- 3onths. Eetitioner's a!!e*ation
of senin* res)onent a notice so3eti3e in 8anuar 200:, reuirin* hi3 to re)ort for ork, is
unsu/stanti
unsu/s tantiate,
ate, an thus, se!fser
se!fser&in*.
&in*. he "ourt a*rees ith the ru!i
ru!in*
n* of the La/or 7r/iter
7r/iter,,
 NLR" an "ourt of 7))ea!s that a f!oatin* status of a securit *uar, such as res)onent, for 
3ore than si- 3onths
3on ths constitutes constructi&e is3issa!.

2.

Reinstate3ent is the *enera! ru!e, hi!e the aar of se)aration )a is the e-ce)tion.

#n this case, )etitioner c!ai3s that it co3)!ie ith the reinstate3ent orer of the La/or 
7r/iter. Dn 29 8anuar 200=, )etitioner sent res)onent a notice infor3in* hi3 of the La/or 
7r/iter's ecision to reinstate hi3. Res)onent a3its recei&in* a reinstate3ent notice fro3
 )etitioner. hereafter, res)onent as assi*ne to one of )etitioner's c!ients. oe&er,
res)onent )oints out that he as not reinstate / )etitioner +3eritus Securit an Maintenance
Sste3s, #nc. /ut as e3)!oe / another co3)an, +33e Securit an Maintenance Sste3s,
#nc. $+33e%. hus, accorin* to res)onent, he as not reinstate at a!!. Eetitioner counters that
+3eritus an +33e are sister co3)anies ith the sa3e Hoar of 6irectors an officers, ar*uin*
that +3eritus an +33e are in effect one an the sa3e cor)oration.

"onsierin* )etitioner's unis)ute c!ai3 that +3eritus an +33e are one an the sa3e,
there is no /asis in res)onent's a!!e*ation that he as not reinstate to his )re&ious e3)!o3ent.
Hesie
Hes ies,
s, res
res)on
)onent
ent ass
assai!
ai!ss the cor
cor)or
)orate
ate )erson
)ersona!i
a!itie
tiess of +3e
+3erit
ritus
us an +33e
+33e on! in his
"o33en
"o3 3entt fi!e
fi!e /efore
/efore thi
thiss "ourt.
"ourt. ;urthe
;urther,
r, res)on
res)onent
ent i not a))e
a))ea!
a! the La/o
La/orr 7r/it
7r/iter'
er'ss

reinstate3ent orer.
"ontrar to the "ourt of 7))ea!s' ru!in*, there is nothin* in the recors shoin* an
straine re!ations /eteen the )arties to arrant the aar of se)aration )a. here is neither 
a!!e*ation nor )roof that such ani3osit e-iste /eteen )etitioner an res)onent. #n fact,
 )etitioner co3)!ie ith the La/or 7r/iter's reinstate3ent orer. hus, consierin* that $1%
 )etitioner reinstate res)onent in co3)!iance ith the La/or 7r/iter's ecision, an $2% there is
no *roun, )articu!ar! straine re!ations /eteen the )arties, to ustif the *rant of se)aration
 )a, the "ourt of 7))ea!s erre in orerin* the )a3ent thereof, in !ieu of rei
reinstate3ent.
nstate3ent.
 

[G.R. No. 20B259. 7u*ust 20, 2014.]

CRISIN /. L-EZ vs. IRVINE C-NSTRUCTI-N C-R. a$d T-MAS S2 SANT-S

Facts:

Res)onent #r&ine "onstruction "or). $#r&ine% is a construction hich initia!! hire

 )etitioner Lo)ez as !a/orer in No&e3/er 1((4 an, thereafter, esi*nate hi3 as a *uar at its
arehouse in the ear 2000, ith a orkin* hours fro3 B o'c!ock in the 3ornin* unti! 4 o'c!ock 
in the
the afte
aftern
rnoon
oon.. Dn 6ece3
6ece3/er/er 1=,
1=, 2005,
2005, Lo)ez
Lo)ez a ass )u
)ur)
r)or
orte
te!
! ter3
ter3in
inat
ate
e fro3
fro3 his
his
e3)!o3ent, hereu)on he as to! "Ikaw ay lay-off muna." hus, on 8anuar 10, 200:, he
fi!e a co3)!aint for i!!e*a! is3issa! ith )raer for the )a3ent of se)aration /enefits a*ainst
#r&ine /efore the NLR".

;or its )art, res)onent #r&ine enie Lo)ez's c!ai3s, a!!e*in* that he as e3)!oe on!
as a !a/orer ho, hoe&er, so3eti3es ou/!e as a *uar. 7s !a/orer, Lo)ez's ut as to /rin*
construction 3ateria!s fro3 the su))!iers' &ehic!es to the co3)an arehouse hen there is a
constructi
const ruction
on )roect
)roect in "a&ite. 7s e&ience / an +sta/!ish3
+sta/!ish3ent
ent er3inati
er3ination
on Re)ort
Re)ort ate

6ece3/er 2=, 2005 hich #r&ine )re&ious! su/3itte /efore the 6e)art3ent of La/or an
+3)!o3ent $6DL+%, Lo)ez as, hoe&er, te3)orari! !aioff on 6ece3/er 2B, 2005 after the
"a&ite )roect as finishe. +&entua!!, Lo)ez as aske to return to ork throu*h a !etter ate
8une 5, 200: $return to ork orer%, a!!e*e! sent to hi3 ithin the si- $:% 3onth )erio uner 
7rtic!e 2=: of the La/or "oe hich )ertinent! )ro&ies that @[t]he bona-fide sus)ension of the
o)eration of a /usiness or unertakin* for a )erio not e-ceein* si- $:% 3onths . . . sha!! not
ter3inate e3)!o3ent.@ 7s such, #r&ine ar*ue that Lo)ez's fi!in* of the co3)!aint for i!!e*a!
is3issa! as )re3ature.

he La/or 7r/iter ru!e that Lo)ez as i!!e*a!! is3isse. NLR" u)ho! the L7's
ru!in*. he "7 *rante #r&ine's ertiorari
ertiorari )etition
 )etition in a 6ecision ate Se)te3/er 14, 2012,
there/ re&ersin* the NLR". #t he! that Lo)ez's co3)!aint for i!!e*a! is3issa! as )re3ature!
fi!e since there as no indiia that Lo)ez as actua!! )re&ente / #r&ine fro3 returnin* to
ork or as e)ri&e of an ork assi*n3ents or uties. Dn the contrar, the "7 foun that
Lo)ez as aske to return to ork ithin the si-3onth )erio uner 7rtic!e 2=: of the La/or 
"oe. 7ccorin*!, it conc!ue that Lo)ez as 3ere! te3)orari! !ai off, an, thus, he cou!
not ha&e /een is3isse.

Issue:

<hether or not )etitioner Lo)ez as i!!e*a!! is3isse.

 

Held:

Ru!in* on the )ro)riet of #r&ine's course of action in this case )re!i3inari! ca!!s for a
eter3ination of Lo)ez's e3)!o3ent status A that is, hether Lo)ez as a )roect or a re*u!ar 
e3)!oee. he NLR" foun that no su/stantia! e&ience ha /een )resente / #r&ine to sho
that Lo)ez ha /een assi*ne to carr out a @s)ecific )roect or unertakin*,@ ith its uration
an sco)e s)ecifie at the ti3e of en*a*e3ent. #n &ie of the ei*ht accore / the courts to
factua! finin*s of !a/or tri/una!s such as the NLR", the "ourt, a/sent an co*ent reason to ho!
otherise, concurs ith its ru!in* that Lo)ez as not a )roect /ut a re*u!ar e3)!oee. his
conc!usion is /o!stere / the unis)ute fact that Lo)ez ha /een e3)!oe / #r&ine since
 No&e3/er 1((4, or 3ore than 10 ears fro3 the ti3e he as !ai off on 6ece3/er 2B, 2005.
7rtic!e 2=0 of the La/or "oe )ro&ies that an e3)!oee ho has renere at !east one ear of 
ser&ice, hether such ser&ice is continuous or /roken, sha!! /e consiere a re*u!ar e3)!oee.
7s a re*u!ar
re*u!ar e3)!oee, Lo)ez is entit
entit!e
!e to secur
securit
it of tenur
tenure,
e, an, hence, is3i
is3issi/!
ssi/!ee on! if a
 ust or authorize cause e-ists therefor. 73on* the authorize causes for ter3ination uner 
7rtic!e 2=9 of the La/or "oe is retrench3ent, or hat is so3eti3es referre to as a @!aoff@>

#n the case at /ar, #r&ine asserts that it on! te3)orari! !aioff Lo)ez fro3 ork on
6ece3/er 2B, 2005 for the reason that its )roect in "a&ite ha a!rea /een finishe. #t is
reai! a))arent that the su))ose !aoff of Lo)ez as har! ustifie consierin* the a/sence
of an causa! re!ation /eteen the cessation of #r&ine's )roect in "a&ite ith the sus)ension of 
Lo)ez's ork. o re)eat, Lo)ez is a re*u!ar an not a )roect e3)!oee. ence, the continuation
of his en*a*e3ent ith #r&ine, either in "a&ite, or )ossi/!, in an of its /usiness !ocations,
shou! not ha&e /een affecte / the cu!3ination of the "a&ite )roect a!one.

#n !i*ht of the e!!entrenche ru!e that the /uren to )ro&e the &a!iit an !e*a!it of 
the ter3ination of e3)!o3ent fa!!s on the e3)!oer, #r&ine shou! ha&e esta/!ishe the bona
 fide sus
sus)en
)ensio
sion
n of its /usine
/usiness
ss o)erat
o)eration
ionss or unert
unertaki
akin*
n* that
that ou
ou!
! ha&e res
resu!t
u!te
e in the
te3)orar !aoff of its e3)!oees for a )erio not e-ceein* si- $:% 3onths in accorance ith
7r
7rti
tic!
c!ee 2=:
2=: of the
the La/or
La/or "o
"oe.e. #n this
this case
case,, #r
#r&i
&ine
ne fai!
fai!e
e to )r
)ro&e
o&e co3
co3)!
)!ia
iance
nce iith
th the
the
 )ara3eters of 7rtic!e 2=: of the La/or "oe. 7s the recors ou! sho, it 3ere! co3)!ete
one of its nu3erous construction )roects hich oes not, / an of itse!f, a3ount to a bona
 fide sus)ension of /usiness o)erations or unertakin*. #n in&okin* 7rtic!e 2=: of the La/or 
"oe, t&e (a)a"u$t c"$sde)at"$ s&"uld #e t&e d)e e8e$c% "! t&e #us$ess "! t&e
e(l"%e) t&at c"(els t t" (ut s"e "! ts e(l"%ees te(")a)l% "ut "! w")+ . his 3eans
that the e3)!oer shou!
shou! /e a/!e to )ro&e that it is face ith a c!ear an co3)e!!i
co3)e!!in*
n* econo3ic
reason hich reasona/! forces it to te3)orari! shut on its /usiness o)erations or a )articu!ar 
unertakin*, incienta!! resu!tin* to the te3)orar !aoff of its e3)!oees. 6ue to the *ri3
econo3ic conseuences to the e3)!oee, case !a states that the e(l"%e) s&"uld als" #ea) t&e
#u)de$ "! ()"*$ t&at t&e)e a)e $" ("sts a*ala#le t" w&c& t&e e(l"%eee(l"%ee te(")a)l% "ut
"! w")+ ca$ #e ass$ed. 
 

he sa3e can /e sai of the e3)!oee in this case as no e&ience as su/3itte / #r&ine
to sho an ire e-i*enc hich renere it inca)a/!e of assi*nin* Lo)ez to an of its )roects.
7 to this the fact that #r&ine i not )roffer an sufficient ustification for sin*!in* out Lo)ez
for !aoff a3on* its other three hunre e3)!oees, there/ castin* a c!ou of ou/t on #r&ine's
*oo faith in )ursuin* this course of action. Ieri!, #r&ine cannot con&enient! sus)en the ork 
of an of its e3)!oees in the *uise of a te3)orar !aoff hen it has not shon co3)!iance
ith the !e*a! )ara3eters uner 7rtic!e 2=: of the La/or "oe. <ith #r&ine fai!in* to )ro&e such
co3)!iance, the resu!tin* !e*a! conc!usion is that Lo)ez ha /een constructi&e! is3isse? an
since the sa3e as effecte ithout an &a!i cause an ue )rocess, the NLR" )ro)er!
affir3e the L7's ru!in* that Lo)ez's
Lo)e z's is3issa! as i!!e*a!.
 

[G.R. No. 1(=59=. Se)te3/er 2(, 2014.]

E9-CET SECURIT2 AND ALLIED SERVICES C-R-RATI-N a$d") MA. TERESA

MARCEL- vs. ARMAND- D. SERRAN-

Facts:

Eetitioner +-ocet Securit an 7!!ie Ser&ices "or)oration $+-ocet% is en*a*e in the
 )ro&ision of securit )ersonne! to its &arious c!ients or )rinci)a!s. Eetitioner assi*ne res)onent
7r3ano 6. Serrano $Serrano% as @c!osein@ securit )ersonne! to its c!ients startin* Se)te3/er 
24, 1((4. Dn 7u*ust 15, 200:, Serrano as re!ie&e / 8G Su33it fro3 his uties. ;or 3ore
than si- 3onths after he re)orte /ack to +-ocet, Serrano as ithout an reassi*n3ent. Dn
March 15, 200B, Serrano fi!e a co3)!aint for i!!e*a! is3issa! a*ainst +-ocet ith the Nationa!
La/or Re!ations "o33ission. $NLR"%.

;or its efense, +-ocet enie is3issin* Serrano a!!e*in* that, after 7u*ust 15, 200:,

Serrano no !on*er re)orte for ut assi*n3ent as I#E securit for 8G Su33it, an that on
Se)te3/er 200:, he as e3anin* for I#E Securit etai! to another c!ient. oe&er, since, at
that
that ti3e
ti3e,, +-
+-oce
ocett i
i not ha&e
ha&e c!
c!ie
ient
ntss in nee
nee of I#
I#E
E se
secu
curi
rit
t assi
assi*n3
*n3ent
ent,, Ser
Serra
rano
no as
as
te3)orari! assi*ne to *enera! securit ser&ice. ; +-ocet 3aintaine that it as Serrano ho
ec!ine the assi*n3ent on the *roun that he is not use to /ein* a re*u!ar securit *uar.
Serrano, +-ocet ae, e&en refuse to re)ort for i33eiate ut, as he as not *i&en a I#E
securit assi*n3ent.

he La/or 7r/iter foun that Serrano, hi!e not actua!! is3isse, as )!ace on a
f!oatin* status for 3ore than si- 3onths an so, as ee3e constructi&e! is3isse. Not
satisfie ith the aar, Serrano a))ea!e
a))e a!e the La/or 7r/iter's 6ecision to the NLR". he NLR"
ru!e that Serrano as not constructi&e! is3isse, as his ter3ination as ue to his on fau!t,
stu//orn refusa!, an e!i/erate fai!ure to acce)t a reassi*n3ent. he a))e!!ate court renere a
6ecision in Serrano's fa&or an orerin* +-ocet to )a Serrano se)aration )a an /acka*es.

Issue:

<hether or not res)onent Serrano as constructi&e!

con structi&e! is3isse.

Held:

he cru- of the contro&ers !ies on the conseuence of the !a)se of the si-3onth )erio,
urin* hich res)onent Serrano as )!ace on a @f!oatin* status@ an )etitioner +-ocet cou!
not
not assi
assi*n
*n hi3
hi3 to a )osit
)ositio
ion
n he an
antsts.. <hi!
<hi!ee ther
theree is no s)
s)ec
ecif
ific
ic )r
)ro&i
o&isi
sion
on in the
the La
La/o
/or 
r 
"oe hich *o&erns the @f!oatin* status@ or te3)orar @offetai!@ of securit *uars e3)!oe
 

 / )ri&ate securit a*encies, this situation as consiere / this "ourt in se&era! cases as a
for3 of te3)orar retrench3ent
retrench3ent or !aoff
!aoff.. Since it in&o!&es a circu3
circu3stance
stance that is *enera!!
outsie the contro! of the securit a*enc or the e3)!oer, the "ourt has ru!e that w&e$ a
secu)t% ua)d s (laced "$ a <!l"at$ status,< &e ") s&e d"es $"t )ece*e a$% sala)% ")
!$a$cal #e$e!t ()"*ded #% law.

#t 3ust /e e3)hasize, hoe&er, that a!thou*h )!acin* a securit *uar on @f!oatin*

status@ or a te3)orar @offetai!@ is consiere a te3)orar retrench3ent 3easure, there is
si3i!ar! no )ro&ision in the La/or "oe hich treats of a te3)orar retrench3ent or !aoff.
 Neither is there an )ro&ision hich )ro&ies for its reuisites or its uration. Ne&erthe!ess,
since an e3)!oee cannot /e !aioff inefinite!, the "ourt has a))!ie 7rtic!e 2(2 $)re&ious!
7rtic!e 2=:% of the La/or "oe #% a$al"% to set the s)ecific )erio of te3)orar !aoff to a
3a-i3u3 of si- $:% 3onths. his "ourt has he!  he!  that the )!ace3ent of the e3)!oee on a
f!oatin* status shou! not !ast for 3ore than si- 3onths. 7fter si- 3onths, the e3)!oee shou!
 /e reca!!e for ork, or for a ne assi*n3ent? otherise, he is ee3e ter3inate.

Kner the 6e)art3ent Drer No. 14, Series of 2001 $6D 1401%, the !ack of ser&ice
assi*n3ent for a continuous )erio of si- $:% 3onths is an authorize cause for the ter3ination

of the e3)!oee, ho is then entit!e to a se)aration )a eui&a!ent to ha!f 3onth )a for e&er
ear of ser&ice. o &a!i! ter3inate a securit *uar for !ack of ser&ice assi*n3ent for a
continuous )erio of si- 3onths uner 6D 1401, the securit a*enc 3ust co3)! ith the
 )ro&isions of 7rtic!e 2=( $)re&ious! 7rt.
7rt. 2=9% of the La/or "oe, hich 3anates that a ritten
notice shou! /e ser&e on the e3)!oee on te3)orar offetai! or f!oatin* status a$d to the
6DL+ one $1% 3onth /efore the intene
intene  ate of ter3ination.

#n e&er case, the "ourt has ec!are that the /uren of )ro&in* that there are no )osts
a&ai!a/!e to hich the securit *uar 3a /e assi*ne rests on the e3)!oer.

#n the contro&ers no /efore the "ourt, there is no uestion that the securit *uar,
Serrano, as )!ace on f!oatin* status after his re!ief fro3 his )ost as a I#E securit / his
securit a*enc's c!ient. et,
et, there is no shoin* that his securit a*enc,
a *enc, )etitioner +-ocet, acte
in /a faith hen it )!ace Serrano on such f!oatin* status. <hat is 3ore, t&e ()ese$t case s $"t
a stuat"$ w&e)e E8"cet dd $"t )ecall Se))a$" t" w")+ wt&$ t&e s8="$t& (e)"d as
)e>u)ed #% law a$d ?u)s()ude$ce. E8"cet dd, $ !act, a+e a$ "!!e) t" Se))a$" t" " #ac+ 
t" w")+. #t is ust that the assi*n3ent A a!thou*h it oes not in&o!&e a e3otion in rank or 
i3inution in sa!ar, )a, /enefits or )ri&i!e*es A as not the securit etai! esire / Serrano.
"!ear!, Serrano's !ack of assi*n3ent for 3ore than si- 3onths cannot /e attri/ute to )etitioner 
+-ocet.

he securit *uar's ri*ht to securit of tenure oes not *i&e hi3 a &este ri*ht to the
 )osition as ou! e)ri&e the co3)an of its )rero*ati&e to chan*e the assi*n3ent of, or transfer 
the securit *uar to, a station here his ser&ices ou! /e 3ost /eneficia! to the c!ient.

hus, it is 3anifest! unfair an unacce)ta/!e to i33eiate! ec!are the 3ere !a)se of 
the si-3onth )erio of f!oatin* status as a case of constructi&e is3issa!, ithout !ookin* into
 

the )ecu!iar circu3stances that resu!te in the securit *uar's fai!ure to assu3e another )ost.
his is es)ecia!! true in the )resent case here the securit *uar's on refusa! to acce)t a non
I#E etai! as the reason that he as not *i&en an assi*n3ent ithin the si-3onth )erio. he
securit a*enc, +-ocet, shou! not then /e he! !ia/!e.

#nee, Serrano as *ui!t of i!fu! iso/eience to a !afu! orer of his e3)!oer in
connection ith his ork, hich is a ust cause for his ter3ination uner 7rt. 2== $)re&ious!
7rt. 2=2% of the La/or "oe. Nonethe!ess
Nonethe!ess,, +-ocet i not take Serrano's i!f
i!fu!
u! iso/eience
iso/eience
a*ainst hi3. ence, +-ocet is consiere to ha&e ai&e its ri*ht to ter3inate Serrano on such
*roun.

#n thi
thiss fac
factua
tua!! 3i!ieu
3i!ieu,, since
since res)on
res)onent
ent Ser
Serran
ranoo as not actua!
actua!!
! or con
constr
struct
ucti&e
i&e!
!
is3isse fro3 his e3)!o3ent / )etitioner +-ocet, it is /est that )etitioner +-ocet irect hi3
to re)ort for ork, if an securit assi*n3ent is sti!! a&ai!a/!e to hi3. #f res)onent Serrano sti!!
refuses to /e assi*ne to an a&ai!a/!e *uar )osition, he sha!! /e ee3e to ha&e a/anone his
e3)!o3ent ith )etitioner.
)e titioner.

#f no securit assi*n3ent is a&ai!a/!e for res)onent, )etitioner +-ocet shou! co3)!

ith the reuire3ents of 6D 1401, in re!ation to 7rt. 2=( of the La/or "oe, an ser&e a ritten
notice on Serrano an the 6DL+ one $1% 3onth /efore the intene ate of ter3ination, an )a
Serrano se)aration )a eui&a!ent to ha!f 3onth )a for e&er ear of his actua! ser&ice.
 

[G.R. No. 202((:. 8une 1=, 2014.]

MARL- A. DE-FERI-  vs. INTEL TECHN-L-72 HILIINES, INC. a$d") MIKE

DE-FERI-
@ENTLIN7

Facts:

Dn ;e/ruar 1, 1((:, res)onent #nte! echno!o*

echno!o* Ehi!i))i
Ehi!i))ines,
nes, #nc. #Intel$
#Intel$ e3)!oe
 e3)!oe
6eoferio as a )rouct ua!it an re!ia/i!it en*ineer. #n 8u! 2001, #nte! assi*ne hi3 to the
Knite States as a &a!iation en*ineer for an a*ree )erio of to ears. Dn 8anuar 2B, 2002,
6eoferio as re)atriate to the Ehi!i))ines after /ein* confine at Ero&ience St. Iincent
Meica! "enter for 3aor e)ression
e)ression ith )schosis. #n the Ehi!i))ines, he orke as a )rouct
en*ineer.

6eoferio unerent a series of 3eica! an )schiatric treat3ent at #nte!'s e-)ense after 

his confine3ent
re)ort in the
ate 8anuar 1B,Knite States. 7fter
200: conc!uin* anse&era!
statin* consu!tations,
that 6eoferio's6r. Lee issue
)schotic a )schiatric
s3)to3s are not
cura/!e ithin a )erio of si- 3onths an @i!! ne*ati&e! affect his ork an socia! re!ation
ith his coorker[s].@ Eursuant to these finin*s, #nte! issue
issue 6eoferio a notice of ter3ination
on March 10, 200:.

6eoferio res)one to his ter3ination of e3)!o3ent / fi!in* a co3)!aint for i!!e*a!

is3i
s3issa! ith )ra aeer for 3onene c!ai3s a*ain ainst res)onneents #nte! an Mike
<ent!in* #respondents$
#respondents$.. e e
eni
nie
e th
that
at he e&
e&er
er ha
ha
 3ent
3enta!
a! i!!n
i!!nes
esss an
an
 insi
insist
ste
e that
that he
satisfactori! )erfor3e his uties as a )rouct en*ineer. e ar*ue that #nte! &io!ate his
statutor ri*ht to )roceura! ue )rocess hen it su33ari! issue a notice of ter3ination. e
further c!ai3e that he as entit!e to a sa!ar ifferentia! eui&a!ent to the )reter3inate
 )erio of his assi*n3ent in the Knite States 3inus the /ase )a that he ha a!rea recei&e.
6eoferio a!so )rae for /acka*es, se)aration
6eoferio se)aration )a, 3ora! an e-e3)!
e-e3)!ar
ar a3a*es, as e!! as
attorne's fees.

Res)onents ar*ue that 6eoferio's is3issa! as /ase on 6r. Lee's certification that>
$1% his schizo)hrenia as not cura/!e ithin a )erio of si- 3onths e&en ith )ro)er 3eica!
treat3ent? an $2% his continue e3)!o3ent ou! /e )reuicia! to his an to the other 
e3)!oees'
e3)!o ees' hea!th. he res)onents a!so insiste that 6eofer
6eoferio's
io's )resence at #nte!
#nte!'s
's )re3ises
)re3ises
ou! )ose an actua! har3 to his coe3)!oees as shon / his )re&ious acts. he res)onents
further asserte that the tinnotice reuire3ent in is3issa!s oes not a))! to ter3inations
uner 7rtic!e
7rtic!e 2=4 of the La/or "oe. he e3)hasize that the La/or "oe's i3)!e3enti
i3)!e3entin*n*
ru!es #I**$
#I**$  on! re
reuir
uires
es a co3)ete
co3)etentnt )u/!ic
)u/!ic hea!th
hea!th aut
author
horit
it's
's cer
certif
tifica
icatio
tion
n to eff
effect
ecti&e
i&e!
!
ter3inate the ser&ices of an e3)!oee.
 

he La/or 7r/iter #$

#$ ru!e
 ru!e that 6eoferio ha /een &a!i! is3isse. he L7 *a&e
ei*ht to 6r. Lee's certification that 6eoferio ha /een sufferin* fro3 schizo)hrenia an as not
fit for e3)!o3ent. he e&ience on recor shos that 6eoferio's continue e3)!o3ent at #nte!
ou! )ose a threat to the hea!th of his coe3)!oees. he L7 further he! that the La/or 
"oe an its #RR o not reuire the e3)!oer to co3)! ith the tinnotice reuire3ent in
is3issa!s ue to isease. he Nationa! La/or Re!ations "o33ission #N*)$ #N*)$ ho!!
 ho!! affir3e

the L7's ru!in*. he "7 affir3e the NLR" ecision

 ecision

Issues:

1 <hethe
<hetherr )etit
)etitione
ionerr 6eofe
6eoferio
rio as suff
sufferi
erin*
n* fro3 schizo
schizo)hr
)hreni
eniaa an hether
hether his
continue e3)!o3ent as )reuicia! to his hea!th, as e!! as to the hea!th of his
coe3)!oees?
2 <he
<hethe
therr the tin
tinnot
notice
ice reu
reuire
ire3en
3entt in is3is
is3issa!
sa!ss a))!i
a))!ies
es to ter3inat
ter3ination
ionss ue to
isease? an 7s )art of the secon issue, the fo!!oin* issues are raise>

$a% <hether 6eoferio is entit!e to no3ina! a3a*es for &io!ation of his

ri*ht to statutor )roceura! ue )rocess? an

$/% <hether the res)onents are so!iari! !ia/!e to 6eoferio for no3ina!
a3a*es.

9 <hethe
<hetherr 6eofer
6eoferio
io is ent
entit!
it!e
e to sa!
sa!ar
ar if
iffer
ferent
entia!
ia!,, /acka
/acka*es
*es,, se)ara
se)aratio
tion
n )a
)a,,
3ora! an e-e3)!ar a3a*es, as e!! as attorne's fees.

Held:

1.

#nte! ha an authorize cause to is3iss 6eoferio fro3 e3)!o3ent.

he )resent case in&o!&es ter3ination ue to isease A an authorize cause for is3issa!
uner
uner 7rtic
rtic!e
!e 2=4 of the the La/o
La/orr "o
"oe.
e. 7s su#sta$t
su#sta$t*e
*e )e>u
)e>u)ee$ ts, the La/or
)ee$ts La/or "o
"oee an
its #RR   reuire the )resence of the fo!!oin* e!e3ents> $1% 7n e3)!oer n has /een foun to
 /e sufferin* fro3 an isease. $2% is continue e3)!o3ent is )rohi/ite / !a or )reuicia!
to his hea!th, as e!! as to the hea!th of his coe3)!oees. $9% 7 co3)etent )u/!ic hea!th
authorit certifies that the isease is of such nature or at such a sta*e that it cannot /e cure
ithin
hin a )erio of si- 3on ontths e&en i itth )ro)e
)err 3eicica! treat3ent.
nt. he thirhir
e!e3ent substantiates the contention that the e3)!oee has inee /een sufferin* fro3 a isease
that> $1% is )reuicia! to his hea!th as e!! as to the hea!th of his coe3)!oees? an $2% cannot /e
cure ithin a )erio of si- 3onths e&en ith )ro)er 3eica! treat3ent. <ithout the 3eica!
certificate, there can be no authorized cause  for the e3)!oee's
e3)!oee's is3issa!.
is3issa!. he a/senc
a/sencee of this
e!e3ent thus reners the is3issa! void an illegal .
 

Si3)! state, this reuire3ent s $"t e)el% a ()"cedu)al )e>u)ee$t, /ut a su/stanti&e one.

#n the current
current case, e a*ree ith the "7 that 6r. Lee's )schiatric
)schiatric re)ort su/stant
su/stantia!!
ia!!
 )ro&es that 6eoferio as sufferin* fro3 schizo)hrenia, that his isease as not cura/!e ithin a
 )erio of si- 3onths e&en ith )ro)er 3eica! treat3ent, an that his continue e3)!o3ent
ou! /e )reuicia! to his 3enta! hea!th. his conc!usion is further su/stantiate / the unusua!
an /izarre acts that 6eoferio co33itte hi!e at #nte!'s e3)!o.

2.

he tinnotice reuire3ent a))!ies to ter3inations uner 7rtic!e 2=4 of the La/or "oe.
he La/or
La/or "oe an
an its ##RR
RR are si!ent on the ()"cedu)al due ()"cess reuire in ter3inations
u
uee to i
ise
seas
ase.
e. 6e
6es)
s)it
itee th
thee se
see3
e3in
in*
* *a
*a)
) in th
thee !a
!a, Sect
Sectio
ion
n 2, Ru!e
Ru!e 1, HoHook
ok I# of 
the #RR e-)ress! states that the e3)!oee shou! /e affore )roceura! ue )rocess in all cases
of is3issa!s.

$a% #nte!'s &io!ation of 6eoferio's ri*ht to statutor )roceura! ue )rocess arrants the
 )a3ent of ine3nit in the for3 of no3ina! a3a*es.

$/% #nte! sha!! /e so!e! !ia/!e to 6eoferio for the satisfaction of no3ina! a3a*es.
<ent!in*, as a cor)orate officer, cannot /e he! !ia/!e for acts one in his officia! ca)acit
 /ecause a cor)oration, / !e*a! fiction, has a )ersona!it se)arate an istinct fro3 its officers,
stockho!ers, an 3e3/ers. here is a!so no *roun for )iercin* the &ei! of cor)orate fiction
 /ecause <ent!in*
<ent!in* acte in *oo faith an 3ere! re!ie on 6r. Lee's )schiatric
)schiatric re)ort in carrin*
out the is3issa!.

9.

6eoferio's c!ai3 for sa!ar ifferentia! is a!rea /arre / )rescri)tion. Kner 7rtic!e
2(1 of the La/or "oe, a!! 3one c!ai3s arisin* fro3 e3)!oere3)!oee re!ations sha!! /e fi!e
ithin three ears fro3 the ti3e the cause of action accrue. #n the current case, 3ore than four 
ears ha&e e!a)se fro3 the )reter3ination of his assi*n3ent to the Knite States unti! the fi!in*
of his co3)!aint a*ainst the res)onents. <e thus see no )oint in further iscussin* this 3atter.
is c!ai3 for /acka*es, se)aration )a, 3ora! an e-e3)!ar a3a*es, as e!! as attorne's
fees 3ust a!so necessari! fai! as a conseuence of our finin* that his is3issa! as for an
authorize cause an that the res)onents acte in *oo faith hen the ter3inate his ser&ices.
 

[G.R. No. 2005B5. ;e/ruar 5, 2014.]

INTEL TECHN-
INTEL TECHN-L-7
L-72 2 HILI
HILIIN
INES, INC.. vs. NA
ES, INC NAT
TI-N
I-NAL
AL LA/
LA/-R
-R REL
RELAT
ATI-N
I-NS
S
C-MMISSI-N AND 3EREMIAS CA/ILES

Facts:

"a/i!es as initia!! hire / #nte! Ehi!. on 7)ri! 1:, 1((B as an #n&entor 7na!st. e
as su/seuent! )ro3ote se&era! ti3es o&er the ears an as a!so assi*ne at #nte! 7rizona
an #nt
#nte!
e! "hen
"hen*u
*u.. e !at
!ater
er a))
a))!ie
!ie
 for a )osit
)osition
ion at #nt
#nte!
e! Se3
Se3ico
iconuc
nuctor
tor Li3ite
Li3ite on
on**
Con* #Intel H$.
H$. #n a !etter, ate 6ece3/er 12, 200:, "a/i!es as offere the )osition of 

;inance Mana*er / #nte! C. Hefore acce)tin* the offer, he inuire fro3 #nte! Ehi!., throu*h
an e3ai!, the conseuences of acce)tin* the ne! )resente o))ortunit in on* Con*. Dn
8anuar 29, 200B, #nte! Ehi!.
Ehi!. Re)!ie that "a/i!es is $"t el#le t" )ece*e %"u) )et)ee$t
#e$e!t *e$ t&at %"u &a*e $"t )eac&ed 4B %ea)s "! se)*ce  at the ti3e ou 3o&e to on*
Con*, that it i!! not roun u) the ears of ser&ice.

Dn 8anuar 91, 200B, "a/i!es si*ne the o/ offer. Dn March =, 200B, #nte! Ehi!. issue
"a/i!es his @#nte! ;ina! Ea Se)aration Ioucher.@ Dn March 2:, 200B, "a/i!es e-ecute a
Re!ease, <ai&er an uitc!ai3 #ai!er$
#ai!er$ in
 in fa&or of #nte! Ehi!. ackno!e*in* recei)t of the
a3ount in the sai &oucher as fu!! an co3)!ete sett!e3ent
sett!e3ent of a!! /enefits ue hi3 / reaso
reason
n of 
his se)aration fro3 #nte! Ehi!. Dn Se)te3/er =, 200B, after se&en $B% 3onths of e3)!o3ent,
"a/i!es resi*ne fro3 #nte! C. 7/out to ears thereafter, or on 7u*ust 1=, 200(, "a/i!es fi!e
a co3)!aint for non)a3ent of retire3ent /enefits an for 3ora! an e-e3)!ar a3a*es ith
the NLR" Re*iona! 7r/itration Hranch#I. e insiste that he as e3)!oe / #nte! for 10
ears an 5 3onths fro3 7)ri! 1((B to Se)te3/er 200B A a )erio hich inc!ue his se&en $B%
3onth stint ith #nte! C. hus, he /e!ie&e he as ua!ifie to a&ai! of the /enefits uner the
co3)an's retire3ent )o!ic a!!oin* an e3)!oee ho ser&e for 10 ears or 3ore to recei&e
retire3ent /enefits.

#n a )etition /efore the "ourt, #nte! Ehi!. insists as serious error the "7's affir3ation of 
the NLR" ecision ho!in* it !ia/!e for the retire3ent /enefits c!ai3e / "a/i!es. #t contens
that he is isua!ifie to recei&e the /enefits for his fai!ure to co3)!ete the reuire 3ini3u3 ten
$10% ears of ser&ice as he resi*ne to assu3e ne res)onsi/i!ities ith #nte! C effecti&e

;e/ruar 1, 200B.
ser&ice ith <hi!e
#nte! Ehi!. "a/i!es
a!!e*in* &ies
that hi
hiss/ut
it as e3)!o3ent ith/
an assi*n3ent #nte!
hisC as a continuation
)rinci)a! of his
e3)!oer, si3i!ar 
 

to his assi*n3ents to #nte! 7rizona an #nte! "hen*u. a&in* renere (.5 ears of ser&ice ith
#nte! Ehi!. an an aitiona! se&en 3onths ith #nte! C, he c!ai3s that he ha co3)!ete the
reuire
reui re 10 ear continuous ser&ice 54 ith #nte! Ehi!., thus, ua!ifin* hi3 for retire3ent
 /enefits.

Issues:

1 <het
<hetheherr or not )ri&
)ri&at
atee re
res)
s)on
one
ent
nt "a/i
"a/i!e
!ess as entit
entit!e
!e
 to ret
retir
iree un
uner
er #nt
#nte!
e!
Ehi!i))ineJs retire3ent )!an.
2 <hethe
<hetherr or no
nott )ri
)ri&at
&atee res)on
res)onent
entJs
Js ui
uitc!
tc!ai3
ai3 isis &oi
&oi.
.
9 <het
<hetheherr or not )ri
)ri&a
&atete res
res)on
)one
ent
nt has the !e*!e*a!
a! o/!i*
o/!i*at
atio
ion
n to ret
retur
urn
n a!!
a!! the
the
a3ounts )ai / #nte! )ursuant to the rit of e-ecution.

Held:

1.

Eri&ate res)onent "a/i!es as not entit!e to retire3ent )a uner #nte! Ehi!i))ineJs
retire3ent )!an. ere, he resi*ne fro3 #nt#nte!
e! Ehi!i))ines. "a/i!es ca!!s the attention of the
the "ourt
to the !ack of e&ience )ro&in* his resi*nation. e states that no se&erance of re!ationshi) as
3ae u)on his transfer to #nte! C. he "ourt is not con&ince. Resi*nation is the for3a!
re!inuish3ent of an office, the o&ert act of hich is cou)!e ith an intent to renounce. his
intent cou! /e inferre fro3 the acts of the e3)!oee /efore an after the a!!e*e resi*nation.

#n this case, "a/i!es, hi!e sti!! on a te3)orar assi*n3ent in #nte! "hen*u, as offere
 / #nte! C the o/ of a ;inance Mana*er. #n conte3)!atin* hether to acce)t the offer, "a/i!es
r
rot
otee #n
#nte
te!! Ehi!i
Ehi!i))i
))ine
nes,
s, in hic
hichh he 3a3aninife
fest
ste
e t
to
o of his
his 3ain
3ain conce
concern
rns>
s> a% c!ea
c!eara
rance
nce
 )roceures? an /% the )ro/a/i!it of *ettin* his retire3ent )a es)ite the nonco3)!etion of the
reuire 10 ears of e3)!o3ent ser&ice. Heon these concerns, hoe&er, as his acce)tance
of the fact that he ou! /e enin* his re!ationshi) ith #nte! Ehi!. as his e3)!oer. he ors he
use A loal hire, lose, learane
learane A A enote nothin* /ut his fir3 reso!&e to &o!untari!
isass
isassoci
ociate
ate hi3se!
hi3se!ff fro3
fro3 #nte!
#nte! Ehi!.
Ehi!. an taktakee on ne res)on
res)onsi/
si/i!
i!iti
ities
es it
ith
h #nt
#nte!
e! C. is
acce)tance of the offer 3eant !ettin* *o of the retire3ent /enefits he no c!ai3s as he as
infor3e throu*h e3ai! corres)onence that his (.5 ears of ser&ice ith #nte! Ehi!. ou! not /e
roune off in his fa&or.

"a/i!es &ies his e3)!o3ent in on* Con* as an assi*n3ent or an e-tension of his

e3)!o3ent ith #nte! Ehi!. e cite as e&ience the offer 3ae to hi3 as e!! as the !etter,
ate 8anuar =, 200B, /oth of hich use the or @assi*n3ent@ in reference to his en*a*e3ent
in on* Con* as a c!ear inication of the a!!e*e continuation of his ties ith #nte! Ehi!. he

"ourt, hoe&er, is a*ain not con&ince. he continuit, e-istence or ter3ination of an e3)!oer
e3)!oee re!ationshi) in a t)ica! secon3ent contract or an e3)!o3ent contract for that
 

3atter is 3easur
3atter 3easure
e / the fo!!o
fo!!oin*
in* arst
arstick
icks>
s> $1% the se!
se!ect
ection
ion an en*a
en*a*e3
*e3ent
ent of the
e3)!oee? $2% the )a3ent of a*es? $9% the )oer of is3issa!? an $4% the e3)!oer's )oer to
contro! the e3)!oee's conuct.

7s a))!ie, a!! of the a/o&e /ench3arks cease u)on "a/i!es' assu3)tion of uties ith
#nte! C on ;e/ruar 1, 200B. #nte! C /eca3e the ne e3)!oer. #t )ro&ie "a/i!es his

co3)ensation. "a/i!es
a))urtenant thereto, then /eca3e
inc!uin* su/ect
the ri*ht to on*
of #nte! C toCon* !a/or
fire hi3 on!as, an necessari!,
a&ai!a/!e the ri*hts
*rouns. Last!, #nte!
C ha contro! an su)er&ision o&er hi3 as its ne ;inance Mana*er. +&ient!, #nte! Ehi!. no
!on*er ha an contro! o&er hi3.

2.

he <ai&er e-ecute / "a/i!es as &a!i. he NLR" conc!ue in its ;e/ruar (, 2011
Reso!ution that the <ai&er as e-ecute 3ere! to a!!o #nte! Ehi!. to esca)e its o/!i*ation to
 )a the retire3ent /enefits, thus, &io!ati&e of !a, 3ora!s, an )u/!ic )o!ic.
)o!ic. he "ourt, hoe&er,
sees no c!ear e&ience in the recors shoin* that "a/i!es as constraine into si*nin* the
ocu3ent. 7!so, it cannot /e sai that "a/i!es i not fu!! unerstan the conseuences of 
si*nin* the <ai&er. Hein* a )erson e!!&erse in 3atters of finance, it ou! ha&e /een
i3)ossi/!e
i3)os si/!e for hi3 not to ha&e co3)rehene
co3)rehene the conseuences
conseuences of si*nin* a ai&er
ai&er.. ;ai!in* to
see an e&ience to arrant the isre*ar of the <ai&er, it as &a!i an /inin* /eteen "a/i!es
an #nte! Ehi!.

7ssu3in* the <ai&er as &a!i, the NLR" contene that it cou! not /e construe to
co&er the c!ai3s for the reti
retire3ent
re3ent )a /ecause it ha not et accrue at the ti3e the ocu3ent
as si*ne / "a/i!es. he "ourt isa*rees. Nothin* is c!earer than the o
ors
rs use in the <a
<ai&er 
i&er 
u! si*ne / "a/i!es A that a!! c!ai3s, in the )resent an in the future, ere ai&e in
consieration of his recei)t of the a3ount of E1:5,=5B.:2. Hecause the ai&er inc!ue a!!
 )resent an future c!ai3s, the nonaccrua! of /enefits cannot /e use as a /asis in aarin*
retire3ent /enefits to hi3. Last!, e&en if the "ourt assu3es that the <ai&er as in&a!i, "a/i!es

nonethe!ess re3ains isua!ifie as a reci)ient of retire3ent /enefits /ecause, as )re&ious!

i
isc
scus
usse
se,
, the
the ten
tene
ear
ar 3ini3
3ini3u3
u3 re
reui
uire
re3e
3ent
nt a
ass no
nott sa
sati
tisf
sfie
ie
 on acc
accou
ount
nt of his
his ear!
ear!

resi*nation.

9.

a&in* effecti&e! resi*ne /efore co3)!etin* his 10th ear anni&ersar ith #nte! Ehi!.
an after ha&in* &a!i! ai&e a!! the /enefits ue hi3, if an, "a/i!es is here/ ec!are
ine!i*i/!e
ine!i*i/!e to recei
recei&e
&e the retire3ent
retire3ent )a )ursuant to the retire3ent
retire3ent )o!ic of #nte
#nte!! Ehi!. hus,
"a/i!e
"a/ i!ess 3us
3ustt ret
return
urn a!! the a3ounts
a3ounts he recei&e
recei&e
 fro
fro3
3 #nte!
#nte! Ehi
Ehi!.
!. )ur
)ursua
suant
nt to the <rit
<rit of 
+-ecution issue / the NLR", ate Se)te3/er 1(, 2011.
 

[G.R. No. 1(910B. March 24, 2014.]

SUTHERLAND 7L-/AL SERVICES &l(($es, INC. a$d 3ANETTE 7. LA7AZ-  vs .

LARR2 S. LA/RAD-R 

Facts:

Eetitioner Suther!an G!o/a! Ser&ices $Ehi!i))ines%, #nc. #+utherland$

#+utherland$ is
 is en*a*e in the

 /usiness of )rocess outsourcin* an techno!o* consu!tin* ser&ices for internationa! c!ients. #n
7u*u
7u *ust
st 20
200:
0:,, Suth
Suther
er!a
!an
n hire
hire
 La/ra
La/rao
orr as one
one of its
its ca!!
ca!! cent
center
er a*ent
a*entss i
ith
th the
the 3ai
3ain
n
res)onsi/i
res)onsi/i!it
!it of anse
anserin*
rin* &arious ueries an co3)!aints
co3)!aints throu*h )honein ca!!s. #n his to
ears of orkin* at Suther!an,
Suther!an, La/raor co33itte se&era! infr
infractions.
actions. Hut it as on! on 88une
une
1B,
1B, 200=
200= that
that La
La/r
/ra
aor
or a
ass fi
fina
na!!
!!
 char*
char*e
e i
ith
th &io!
&io!at
atio
ionn for
for tran
trans*
s*re
ress
ssin
in*
* the
the @N
@Non
on
"o3)!iance Sa!e 7ttri/ute@ )o!ic c!ause state in the +3)!oee an/ook.

Kner Suther!an's +3)!oee an/ook, La/raor's action is c!assifie as an act of 

ishonest or frau. Dn Ma 24, 200=, Suther!an sent La/raor a Notice to +-)!ain in ritin*
h he shou! not /e he! a3inistrati&e! !ia/!e.

Dn Ma 2=, 200=, an a3inistr

a3inistrati&e
ati&e hearin* as conucte that took into consier
consieration
ation
La/raor's )ast infractions. 7fter in&esti*ation, a reco33enation as issue finin* La/raor 
*ui!t of &io!atin* the +3)!oee an/ook ue to *ross or ha/itua! ne*!ect of ut. Dn 8une 1B,
200=,
200 =, La/ra
La/raoror su/3it
su/3itte
te his resi*n
resi*nati
ation
on !et
!etter
ter.. Dn Dcto/e
Dcto/err 2B, 200
200=,
=, La/raor
La/raor fi!e
fi!e
 a
co3)!aint for constructi&ei!!e*a! is3issa! /efore the NLR".

Dn ;e/ruar 2B, 200(, La/or 7r/iter

7r/iter #$
#$ Rena!o
 Rena!o 7/on is3isse the co3)!aint for 
!ack of 3erit. e foun ust cause to ter3inate La/raor's e3)!o3ent, an that his resi*nation
!etter ha /een &o!untari! e-ecute. NLR" re&erse the L7's ru!in*. he he "7 a!so affir3e
the NLR"'s finin* that La/raor ha /een i!!e*a!! is3isse. he "7 ru!e that Suther!an's
ecisio
eci sion
n to ter
ter3in
3inate
ate La/r
La/rao
aor's
r's ser&ic
ser&ices
es as the )ro
)ro-i3
-i3ate
ate cau
cause
se of his resi*n
resi*nati
ation?
on? the
resi*nation !etter as su/3itte so!e! for the )ur)ose of a&oiin* an ero*ator recor that
ou! a&erse! affect his future e3)!o3ent. #n effect, he cannot /e ee3e to ha&e &o!untari!

resi*ne /ecause he as force to re!inuish his )osition in orer to a&oi the ine&ita/!e
ter3ination of e3)!o3ent.
 

Issues:

1. <hethe
<hetherr or not res)onent
res)onent La/ra
La/raorJs
orJs offense
offense constit
constitutes
utes *ros
*rosss ne*!i*e
ne*!i*ence
nce as to arrant
his is3issa! fro3 the ser&ice, an hether he &o!untari! resi*n.

Held:

7rtic!e 2=2 of the La/or "oe )ro&ies

7rtic!e )ro&ies ust causes of ter3inati
ter3ination
on of an e3)!oee
e3)!oee fro3
the ser&ice hich inc!ue )"ss a$d &a#tual $elect #% t&e e(l"%ee "! &s dutes ? an other 
causes analogous to the foregoing .

he fai!ure to faithfu!! co3)! ith the co3)an ru!es an re*u!ations is consiere to
 /e a ust cause in ter3inatin* one's e3)!o3ent, e)enin* on the nature, se&erit an
circu3stances of nonco3)!iance. @7n e3)!oer 'has the ri*ht to re*u!ate, accorin* to its
iscretion an /est u*3ent, a!! as)ects of e3)!o3ent, inc!uin* ork assi*n3ent, orkin*
3ethos
3etho s,, )r
)roc
oces
esse
sess to /e fo
fo!!
!!oe
oe,
, ork
orkinin*
* rere*u!
*u!at
atio
ions
ns,, trans
transfe
ferr of e3)!o
e3)!oe
ees
es,, o
ork 
rk 
su)er&ision, !aoff of orkers an the isci)!ine, is3issa! an reca!! of orkers.

hus, it as ithin Suther!an's )rero*ati&e to ter3inate La/raor's e3)!o3ent hen

he co33itte a serious infraction an, es)ite a )re&ious arnin*, re)eate it. o reiterate, he
o)ene another c!ient account ithout the !etter's consent, ith farreachin* an cost! effects on
the co3)an. ;or one, the re)eate )ast infractions ou! ha&e resu!te in ne*ati&e fee/acks on
Suther!an's
Suther !an's )erfor3ance
)erfor3ance an re)ut
re)utation.
ation. #t ou! !ike
!ikeise
ise entai! aitiona! a3inist
a3inistrati&e
rati&e
e-)ense since Suther!an ou! ha&e to aress the co3)!aints A an effort that ou! entai!
in&esti*ation costs an the return of the ou/!e!i&ere 3erchanise. 7s a ru!e, @an e3)!oer 
cannot /e co3)e!!e to continue ith the e3)!o3ent of orkers hen continue e3)!o3ent

i!! )ro&e ini3ica! to the e3)!oer's interests.@

o Suther!an's creit, it u! co3)!ie ith the )roceura! reuire3ent in is3issin* an
e3)!oee? it c!ear! o/ser&e /oth su/stanti&e an )roceura! ue )rocess. #ts action as /ase
on a ust an authorize cause, an the is3issa!
is3issa! as effecte aft
after
er ue notice an hearin*. 7fter 
La/raor's su/seuent infraction, Suther!an sent hi3 a Notice to +-)!ain an an a3inistrati&e
hearin* as thereafter conucte. 6urin* the hearin*, La/raor hi3se!f a3itte his fau!ts.
hes
h esee inci
incie
ent
ntss e
ere
re )ro)e
)ro)er!
r!
 re
reco
cor
re
e an
an ere
ere )r )ro)
o)er
er!
! isc
iscus
usse
se
 in SuSuth
ther
er!a
!an'
n'ss
reco33enation. Hut /efore Suther!an cou! fina!! )ronounce its &erict, La/raor su/3itte
his resi*nation !etter, i3)e!!e no ou/t, as Suther!an a!!e*e, / the nee to )rotect his
re)utation an his future e3)!o3ent chances. o /e sure, Suther!an's e-)!anation as not
re3ote, farfetche or un/e!ie&a/!e *i&en the unis)uta/!e e&ience on recor of infractions.
 

  ;ina!!, e fin the issue of hether the resi*nation !etter as &o!untari! e-ecute
3oot. +&en if La/raor ha
h a not su/3itte his resi*nation !etter, Suther!an cou! sti!! not /e he!
!ia/
!ia/!e
!e fo
forr cons
constr
truc
ucti
ti&e
&e is3
is3is
issa
sa!! *i&en
*i&en the
the e-ist
e-istin
in*
* ust
ust caus
causee to ter3
ter3in
inat
atee La
La/r
/rao
aor'
r'ss
e3)!o3ent.

[G.R. No. 1=(45:. 7)ri! 2, 2014.]

CHIAN7 KAI SHE

CHIAN7 SHEK
K C-L
C-LLE7
LE7E
E a$d CAR
CARMEL
MELIT
ITA
A ESIN-  vs. R-
ESIN- R-SA
SALI
LIND
NDA
A M.
T-RRES

Facts:

Eetitioner
Eetitioner "hian*
"hian* Cai Shek
Shek "o!
"o!!e*
!e*ee is a )ri&at
)ri&atee eu
eucat
cation
iona!
a! ins
insti
titut
tution
ion that
that off
offers
ers
e!e3entar to co!!e*e eucation to the )u/!ic. #ni&iua! )etitioner "ar3e!ita +s)ino is the Iice
Eresient of the schoo!. Res)onent ha /een e3)!oe as a *rae schoo! teacher of the schoo!
fro3 8u! 1(B0 unti! 91 Ma 2009. he 3anner of her se&erance fro3 e3)!o3ent is the 3atter 
at han. Res)onent as accuse of !eakin* a co) of a s)ecia! uiz *i&en to Grae 5 stuents
of H(+I
of H(+I #H(+I /$. 7n a3inistrati&e hearin* as conucte herein res)onent an Mrs.
7nuan ere aske uestions / the #n&esti*atin* "o33ittee re!ati&e to the !eaka*e of test
 )a)er.   he #n&esti*atin* "o33ittee he! a 3eetin* an foun res)onent an Mrs. 7nuan
 )a)er.
*ui!t of co33ittin* a *ra&e offense of the schoo! )o!icies /
/  !eakin* a s)ecia! uiz.

7ccorin* to )etitioners, their #n&esti*atin* "o33ittee ha actua!! ecie to ter3inate

res)onent an ha in fact )re)are a 3e3oranu3 of ter3ination, /ut res)onent a!!e*e!
 )!eae for a chan*e of )unish3ent in a short !etter ate 5 Se)te3/er 2002
2002,, here res)onent
reuest for chan*e of )unish3ent fro3 ter3ination to sus)ension an that she i!! resi*n at the
en of the schoo! ear. 
ear.   Eetitioners accee to the reuest an sus)ene res)onent an Mrs.
7nuan effecti&e 1: Se)te3/er to Dcto/er 2002. he uo as irecte to re)ort to ork on 4
 No&e3/er 2002. Res)onent continue her e3)!o3ent fro3 4 No&e3/er 2002 unti! the en of 
the schoo! ear on 2: March 2009.

Dn 10 8une 2009, res)onent fi!e a co3)!aint for constructi&e is3issa! an i!!e*a!
sus)ens
sus)ension
ion it
ithh the La/
La/or
or 7r
7r/it
/iter
er.. She a!s
a!so
o sou
sou*ht
*ht )a3
)a3ent
ent of un)a
un)ai
i sa!ar
sa!ar,, /acka*
/acka*es,
es,
ho!ia )a, ser&ice incenti&e !ea&e )a, 19th 3onth )a, se)aration )a, retire3ent /enefits,
a3a*es an attorne's fees. Res)onent a!!e*e that she as force an )res
)ressure
sure to su/3it the
ritten reuest for a chan*e of )ena!t an co33it3ent to resi*n at the en of the schoo! ear.
 

She as threatene / the schoo! 3ana*e3ent ith i33eiate is3issa! fro3 ser&ice if she i
not su/3it the rittens state3ent. She c!ai3e that she as not for3a!! char*e ith an
offense an she as not ser&e a co) of the notice of the schoo!'s ecision to ter3inate her 
ser&ices.

<hi!e Eetitioners insiste that res)onent &o!untari! resi*ne. Eetitioners a&erre that

res)onent as
as conucte
conuct e accore
ur
urin* herch
in* hich
hi ri*ht
resto
res)onue
)onent)rocess
ent )rior
as *i&en
*i&entothe
hero))
ter3ination.
o))ort
ortuni
unit 7 for3a!
t to efenin&esti*ation
efen her
herse!
se!ff an
confront her accusers.

he La/or 7r/iter he! that there as no constructi&e is3issa! /ecause res)onent as
not coerce nor )ressure to rite her resi*nation !etter. he NLR" affir3s the La/or 7r/iter's
finin
finin*s
*s /ut oreri
orerin*
n* )etiti
)etitioner
onerss to )a res
res)on
)onent
ent se)
se)ara
aratio
tion
n )a.
)a. he "ourt
"ourt of 7)
7))ea!
)ea!ss
re&er
re&erse
se
 the
the NLR"
NLR" eci
ecisi
sion
on st
stat
atin
in*
* that
that )eti
)etiti
tion
oner
er i
i not &o!un
&o!unta
tari
ri!
! resi
resi*n
*n /ut as
as
constructi&e! is3isse.

Issue:

<hethe
<het herr or not
not the
the sc
scho
hoo!
o!'s
's act
act of i3
i3)o
)osi
sin*
n* the
the )e
)ena!
na!t
t of su
sus)
s)en
ensi
sion
on inst
instea
ea
 of 
i33eiate is3issa! fro3 ser&ice at the /ehest of the errin* e3)!oee, in e-chan*e for the
e3)!oee's resi*nation at the en of the schoo! ear, constitutes constructi&e is3issa!.

Held:

Resi*nation is the &o!untar act of an e3)!oee ho is in a situation here one /e!ie&es
that )ersona! reasons cannot /e sacrifice for the fa&or of e3)!o3ent, an o)ts to !ea&e rather 
than sta e3)!oe. #t is a for3a! )ronounce3ent or re!inuish3ent of an office, ith the
intention
intention of re!in
re!inuishi
uishin*
n* the office acco3)ani
acco3)anie
e //
 the act of re!i
re!inuis
nuish3ent.
h3ent. 7s the intent to

re!inuish 3ust concur ith the o&ert act of re!inuish3ent, the acts of the e3)!oee /efore an
after the a!!e*e resi*nation 3ust /e consiere in eter3inin* hether, he or she, in fact,
intene to se&er his or her e3)!o3ent.

Res)onent ha a3itte to !eakin* a co) of the H(+I

the  H(+I / s)ecia!
/ s)ecia! uiz. She re!uctant!
3ae the a3ission an a)o!o*ize to Mrs. Coo hen the !atter confronte her. She a3itte
urin* the 2= 7u*ust 2002 hearin* of e-ecutin* to $2% contraictor state3ents. Dn 90 7u*ust
2002, the #n&esti*atin* "o33ittee foun res)onent *ui!t of !eakin* a co) of the s)ecia! uiz.
Hase on this infraction a!one, "hian* Cai Shek "o!!e*e ou! ha&e /een ustifie to &a!i!
ter3inate res)onent fro3 ser&ice. 7cae3ic ishonest is the orst offense a teacher can 3ake
 /ecause teachers cau*ht co33ittin* acae3ic
aca e3ic ishonest !ose the
their
ir crei/i!it as eucators an
cease to /e ro!e 3oe!s for their stuents. More so that uner "hian* Cai Shek "o!!e*e ;acu!t
 

Manua!, !eakin* an se!!in* of test uestions is c!assifie as a *ra&e offense )unisha/!e /
is3issa!ter3ination.

<e o not fin anthin* irre*u!ar ith res)onent's hanritten !etter. he !etter ca3e
a/out /ecause res)onent as face ith an i33inent is3issa! an o)te for an honora/!e
se&erance fro3 e3)!o3ent. hat res)onent &o!untari! resi*ne is a !o*ica! conc!usion. #t as

correct! o/ser&e that res)onent's infraction an the ine&ita/!e an ustifia/!e conseuence of 
that infraction, i.e.
i.e.,, ter3ination of e3)!o3ent, inuce her to resi*n or )ro3ise to resi*n / the
en of the schoo! ear.

Gi&en the inications of &o!untar resi*nation, e ru!e that there is no constructi&e

is3issa!
is3 issa! in this case. here is constructi&e
constructi&e is3issa
is3issa!! hen there is cessation of ork, /ecause
continue e3)!o3ent is renere i3)ossi/!e, unreasona/!e or un!ike!, as an offer in&o!&in* a
e3otion in rank or a i3inution in )a an other /enefits. 7)t! ca!!e a is3issa! in is*uise
or an act a3ountin* to is3issa! /ut 3ae to a))ear as if it ere not, constructi&e is3issa! 3a,
!ikeise, e-ist if an act of c!ear iscri3ination, insensi/i!it, or isain / an e3)!oer /eco3es
so un/eara/!e on the )art of the e3)!oee that it cou! forec!ose an choice / hi3 e-ce)t to
fore*o
fore* o his continue e3)!o3ent.
e3)!o3ent. here as here no iscr iscri3ina
i3ination
tion co33itte / )etit
)etitioners
ioners..
<hi!e res)onent i not tener her resi*nation ho!ehearte!, circu3stances of her on
3akin* i not *i&e her an other o)tion. <ith ue )rocess, she as foun to ha&e co33itte
the *ra
*ra&e
&e off
offens
ensee of !ea
!eakin
kin*
* test
test uestio
uestions.
ns. 6is3is
6is3issa!
sa! fro3
fro3 e3)!o
e3)!o3ent
3ent as the us
ustif
tifie
ie
eui&a!ent )ena!t.
 

[G.R. No. 1=544(. No&e3/er 12, 2014.]

7--D2EAR HILIINES, INC. a$d REME7I- M. RAM-S  vs. MARINA L. AN7US

Facts:

7n*us as e3)!oe / Gooear on No&e3/er 1:, 1(:: an occu)ie the )osition of 
Secretar to the Mana*er of ua!it an echno!o*. #n orer to 3aintain the &ia/i!it of its
o)erations in the 3ist of econo3ic re&ersa!s, Gooear i3)!e3ente costsa&in* 3easures
hich inc!ue the strea3!inin* of its orkforce. "onseuent!, on Se)te3/er 1(, 2001, 7n*us
recei&e fro3 Ra3os, the u3an Resources 6irector of Gooear, a !etter hich states that she
i!! /e ter3inate effecti&e Dcto/er 1=, 2001 ue to reunanc or retrench3ent.

Dn ;e/ruar 5, 2002, 7n*us fi!e ith the La/or 7r/iter a co3)!aint for i!!e*a! is3issa!
ith c!ai3s for se)aration )a, a3a*es an attorne's fees a*ainst )etitioners. 7n*us c!ai3e
that her ter3ination / reason of reunanc as effecte in &io!ation of the La/or "oe for it
as not ti3e! re)orte to the 6DL+ an no se)aration )a as *i&en to her? that the se)aration
 )a to hich she is entit!e / !a is entire! ifferent fro3 the retire3ent /enefits that she
recei&e? that nothin* in the co3)an's Retire3ent E!an uner the "H7, the "H7 itse!f or the
+3)!o3ent "ontract )rohi/its the *rant of 3ore than one kin of se)aration )a? an, that she
as on! force to si*n a uitc!ai3
u itc!ai3 after acce)tin* her retire3ent /enefits.

Dn the other han, )etitioners asse&erate in their Eosition Ea)er that 7n*us as &a!i!
is3isse for an authorize cause? that she &o!untari! acce)te her ter3ination /enefits an
free!
free! e-ecute
e-ecute the corres
corres)on
)onin
in*
* ui
uitc!
tc!ai3
ai3?? tha
thatt her rec
recei)
ei)tt of ear!
ear! retir
retire3en
e3entt /en
/enefi
efits
ts
eui&a!ent to 4B as' )a for e&er ear of ser&ice, hich a3ount is hi*her than the re*u!ar 
se)aration )a, ha effecti&e! /arre her fro3 reco&erin* se)aration )a ue to reunanc?
 

an, that the fo!!oin* Section 1, 7rtic!e # of the !ast co3)an "H7 su))orts the *rant of on!
one /enefit. #n her Reoi
Reoiner,
ner, 7n*us is)ut
is)ute
e the e-istence
e-istence of the aforesai
aforesai
 )ro&i
)ro&ision
sion in the
co3)an's "H7.

he La/or 7r/iter u)he! the &a!iit of 7n*us' ter3ination fro3 e3)!o3ent. #t he!
that the *rant of /oth is not a!!oe uner the Retire3ent E!an"H7. Moreo&er, it as he! that

her c!ai3 of &itiate consent in si*nin* the uitc!ai3 is unorth of creence consierin* that
she fair! ne*otiate the 3atter ith the 3ana*e3ent an that the consieration for its e-ecution
is hi*her than hat she is 3anate to recei&e.

he NLR" affir3e the ru!in* of the L7. <hi!e the "7 ru!e that res)onentJs is3issa!
as &a!i in /oth su/stance an )roceura! as)ects, /ut it ec!are her entit!e to se)aration )a
in aition to the retire3ent )a she a!rea
a !rea recei&e.

Issues:

1 <hethe
<hetherr or not res
res)on
)onent
ent 7
7n*u
n*uss is enti
entit!e
t!e to th
thee )a3ent
)a3ent of se)
se)ara
aratio
tion
n )a on
to) of the retire3ent )a.
2 <hethe
<hetherr or not )etitio
)etitioner
ner Gooear
Gooear is !ia/!e
!ia/!e to )a se)aration
se)aration )
)a
a es)ite
es)ite tthe
he fac
factt

that res)onent e-ecute a &a!i an /inin* uitc!ai3.

Held:

1.

Res)onent 7n*us is entit!e to /oth se)aration

Res)onent se)aration )a an ear! retire3ent
retire3ent /enefit ue to
the a/sence of a s)ecific )ro&ision in the "H7 )rohi/itin* reco&er of /oth.

#n
#n 0uino
 0uino !. National abor *elations )ommission
)ommission,, the "ourt he! that an e3)!oee is
entit!e to reco&er /oth se)aration )a an retire3ent /enefits in the a/sence of a s)ecific
 )rohi/ition in the Retire3ent E!an or "H7. "onco3itant!, the "ourt ru!e that an e3)!oee's
ri*ht to recei&e se)aration )a in aition to retire3ent /enefits e)ens u)on the )ro&isions of 

the co3)an's Retire3ent E!an anor "H7.

ere, )etitioners a!!e*e that there is a )ro&ision in the !ast "H7 a*ainst the reco&er of 
 /oth retire3ent /enefits an se)aration )a. o su))ort their c!ai3, )etitioners su/3itte a co)
of hat a))ears to /e a )ortion of the co3)an "H7 entit!e @Retire3ent E!an, Life #nsurance,
Ehsica! 6isa/i!it Ea an Resi*nation Ea.@ Section 1, 7rtic!e # thereof )ro&ies that the
a&ai!3ent of retire3ent /enefits )rec!ues entit!e3ent to an se)aration )a. he sa3e, hoe&er,
can har! /e consiere as su/stantia! e&ience /ecause it oes not a))ear to /e an inte*ra! )art
of Gooear's "H7. +&en assu3in* that it is, it ou! sti!! not suffice as there is no shoin* if 
the "H7 uner hich the sai )ro&ision is foun as the one in force at the ti3e 3ateria! to this
case. Dn the other han, 7n*us )resente the )arties' 20012004 "H7 an u)on e-a3ination of 
the sa3e, the "ourt a*rees ith her that it oes not contain an restriction on the a&ai!3ent of 
 /enefits uner the co3)an's Retire3ent E!an an of se)aration )a. #nee, the La/or 7r/iter 
 

an the NLR" erre in i*norin* this 3ateria! )iece of e&ience hich is ecisi&e of the issue
 )resente /efore the3. he "7, thus, co33itte no n o error in re&ersin* the 6ecisions of the !a/or 
tri/una!s hen it ru!e in fa&or of 7n*us' entit!e3ent to /oth retire3ent /enefits an se)aration
 )a. Moreo&er, the "ourt a*rees ith the "7 that the a3ount 7n*us recei&e fro3 )etitioners
re)resente on! her retire3ent )a an not se)aration )a.

Eetitioners further ar*ue that 7n*us is not entit!e to retire3ent )a /ecause she oes not
3eet the reuire3ents enu3erate in the Retire3ent E!an )ro&ision of the "H7. he "ourt
isa*rees. <hi!e it is o/&ious that 7n*us is not entit!e to co3)u!sor retire3ent as she has not
et reache the a*e of :0, there is no enin*, hoe&er, that she is ua!ifie for ear! retire3ent.
Kner the )ro&ision of the Retire3ent E!an of the "H7 as ear!ier uote, a orker h ho o is at !east
50 ears o! an ith at !east 15 ears of ser&ice, an ho has /een reco33ene / the
Eresient of the Knion for ear! retire3ent an u! a))ro&e / the u3an Resources 6irector,
sha!! /e entit!e to !u3) su3 retire3ent /enefits. 7t the ti3e of her ter3ination, 7n*us as
a!rea 5B ears of a*e an ha /een in the ser&ice for 3ore than 94 ears. he e-chan*e of 
corres)onence /eteen 7n*us an Ra3os a!so shos that the !atter, as Gooear's u3an
Resources 6irector, offere, reco33ene an a))ro&e the *rant of ear! retire3ent in fa&or of 
the for3er. "!ear!, a!! the reuire3ents for 7n*us' a&ai!3ent of ear! retire3ent uner the
Retire3ent E!an of "H7 ere su/stantia!! co3)!ie ith.

#t is orth to 3ention at this )oint that retire3ent /enefits an se)aration )a are not
3utua!! e-c!usi&e. Retire3ent /enefits are a for3 of rear for an e3)!oee's !oa!t an
ser&ice to an e3)!oer an are earne uner e-istin* !as, "H7s, e3)!o3ent contracts an
co3)an )o!icies. Dn the other han, se)aration )a is that a3ount hich an e3)!oee recei&es
at the ti3e of his se&erance fro3 e3)!o3ent, esi*ne to )ro&ie the e3)!oee ith the
hereitha! urin* the )erio that he is !ookin* for another e3)!o3ent an is reco&era/!e on!
in instances enu3erate uner 7rtic!es 2=9 an 2=4 of theLa/or "oe or in i!!e*a! is3issa!
cases hen reinstate3ent is not feasi/!e. #n the case at /ar, 7rtic!e 2=9 c!ear! entit!es 7n*us to
se)aration )a a)art fro3 the retire3ent /enefits she recei&e fro3 )etitioners.

2.

Re!ease an uitc!ai3 si*ne / res)onent 7n*us is in&a!i.

he re!ease an uitc!ai3 si*ne / 7n*us cannot /e use / )etitioners to !e*a!ize the
enia! of 7n*us' ri*htfu! c!ai3s. 7s a)t! o/ser&e / the "7, the ter3s of the uitc!ai3
auth
author
oriz
izes
es 7n*us
n*us to rerecei
cei&e
&e !e
!ess
ss than
than hat
hat shshee is !e*a!
!e*a!!
! entit
entit!e
!e
 to.
to. @K
@Kne
nerr )r
)re&
e&ai
ai!i
!in*
n*
 uris)ruence, . . . a uitc!ai3 cannot
canno t /
/ar
ar an e3)!oee fro3 e3anin* /enefits to hich he is
!e*a!!
!e*a!! entit!e.@
entit!e.@ #t as he! to /e @inef
@ineffect
fecti&e
i&e in /arrin* c!ai3
c!ai3ss for the fu!! 3eas
3easure
ure of the
orker's ri*hts an the acce)tance of /enefits therefro3 oes not a3ount to esto))e!@. Moreo&er,
re!ease an uitc!ai3s are often !ooke u)on ith isfa&or hen the ai&er as not one
&o!untari! / e3)!oees ho ere )ressure into si*nin* the3 / unscru)u!ous e3)!oers
seekin* to e&ae their o/!i*ations.