107 Bustamante vs. NLRC, G.R. No.

111651, November 28, 1996

Facts:

Bustamante and the other petitioners were laborers in the Evergreen Farms Inc. They

started working in the company from 1985 to 1989. In 1990 they signed contracts of

employment for a period of 6 months. When the contracts were about to expire on July 2, 1990

they were terminated on June 25, 1990 on account of poor performance due to age of above 40

years old.

They filed a case for illegal dismissal and the LA ordered Evergreen to reinstate

complainants to position with backwages . If reinstatement is not possible , additional 1 month

salary shall be awarded as separation pay. Upon appeal, the NLRC affirmed its resolution but

deleted the award of backwages on the ground that the termination was not attended by bad

faith

Issue:

Whether the NLRC was correct in removing the backwages in its second resolution.

Ruling:

No, the NLRC was incorrect. If there is no valid cause for dismissal and the employees

have not warranted termination of employment, they are entitled to backwages and other

benefits from the time their compensation was withheld up to the time of actual reinstatement.
Backwages shall be paid to complainatns from the time of dismillsal on June 25, 1990 up to

date of their reinstatement. If reinstatement is not feasible, a month salary shall be paid.