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FACTS:
ISSUE:
RULING:
FACTS:
1. TPMA was a legitimate labor organization of all regular rank and file
employees of Asia Brewery, Inc.
2. The parties have been negotiating for a new CBA for the year 2003-2006
since the old expired last July 2003. After 18 negotiations, parties are still
unable to reconcile differences particularly on wages and other
economic benefits. Because of this, TPMA declared a deadlock and filed
a notice of strike with the NCMB. After which, conducted a strike vote,
favoring the holding of strike.
3. Asia Brewery petitioned the Secretary of DOLE to assume jurisdiction in
accordance with Article 263 (g) of Labor Code, but was opposed by
TPMA, alleging that the business was not indispensable to national interest,
but was denied.
4. Parties were directed to submit their position papers and required Asia
Brewery to submit complete audited financial statements for 5yrs and
other documents.
5. In the meantime, Secretary of Labor resolved the deadlock between
parties and granted arbitral awards. TPMA moved for reconsideration and
petition for review on certiorari in the Court of Appeals, where the arbitral
award was modified and the issue on salary increases was remanded to
the Secretary of Labor.
ISSUE:
Whether or not the modification of CA and remanding the issue on salary
increases to the Secretary of Labor proper.
RULING:
1. YES. The Secretary of Labor’s expertise in the study and settlement of labor
disputes under his power of compulsory arbitration is recognized by the
court.
2. It is well settled that factual findings of labor administrative officials, if
supported by substantial evidence are not only entitled to great respect
but finality. The court held that Secretary of Labor gravely abused his
discretion when he relied on the unaudited financial statements of the
corporation in determining awards.
3. Not only did this violate the December 19, 2003 Order of the Secretary of
Labor herself to petitioner corporation to submit its complete audited
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financial statements, but this may have resulted to a wage award that is
based on an inaccurate and biased picture of petitioner corporation's
capacity to pay — one of the more significant factors in making a wage
award.
4. Petitioner Corporation has offered no reason why it failed and/or refused
to submit its audited financial statements for the past five years relevant to
this case. This only further casts doubt as to the veracity and accuracy of
the unaudited financial statements it submitted to the Secretary of Labor.
Verily, the court cannot countenance this procedure because this could
unduly deprive labor of its right to a just share in the fruits of production
and provide employers with a means to understate their profitability in
order to defeat the right of labor to a just wage.
5. Lastly, in cases of compulsory arbitration before Secretary of Labor
pursuant to Article 263 (3), financial statements of employer must be
properly audited by external and independent auditor in order to be
admissible in evidence for purposes of determining the proper wage
award.
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FACTS:
ISSUE:
RULING:
1. YES. In the present case, petitioners flatly claim that Bengson's illness is not
compensable on the sole basis of its company-designated physician
Agbayani's declaration that such illness is not work-related.
2. Having worked for petitioners since 1988 under employment contracts
that were continuously renewed, it can be said that respondent spent
much of his productive years with petitioners; his years of service certainly
took a toll on his body, and he could not have contracted his illness
elsewhere except while working for petitioners. It was also shown that prior
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barding, Bengson was declared “fit for sea duty” by the company’s own
physicians, and if contracted illness while on board, it can only be caused
by his work and the conditions he was subjected to during his
employment.
3. To be sure, the Court has ruled that "the list of illnesses/diseases in Section
32-A does not preclude other illnesses/diseases not so listed from being
compensable. The POEA-SEC cannot be presumed to contain all the
possible injuries that render a seafarer unfit for further sea duties." And
equally significant, "it is not the injury which is compensated, but rather it is
the incapacity to work resulting in the impairment of one's earning
capacity."
4. In Alpha Ship Management Corporation v. Calo, an employee's disability
becomes permanent and total when so declared by the company-
designated physician, or, in case of absence of such a declaration either
of fitness or permanent total disability, upon the lapse of the 120 or 240-
day treatment period under Article 192 (c) (1) of the Labor Code and Rule
X, Section 2 of the Amended Rules on Employees' Compensation
Commission, while the employee's... disability continues and he is unable
to engage in gainful employment during such period, and the company-
designated physician fails to arrive at a definite assessment of the
employee's fitness or disability
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FACTS:
ISSUE:
Whether or not the court committed grave abuse of discretion when it based its
conclusion in the motion, alleged to be filed out of time.
RULING:
FACTS:
1. Susan Capili was the Assistant Vice President - Systems and Methods
Division (AVP-SMD) of the Philippine National Bank (PNB). In 2005, the
President of PNB received information from Hyung Duk Cho, that Capili
was engaged in anomalous transactions.
2. Because of this, PNB created a Fact Finding Committee to verify the
matter, which reported that Capili in fact owned a private company
named Sandino Builders, and the NBI showed that Capili’s name was
listed for liabilities and violations of B.P No. 22.
3. Notice was given to Capili wherein she explained that she met Hyung Duk
Cho during work days, but were made during her personal time during
lunch breaks, and that there were cases against her for BP 22 in Makati
and Bulacan. But according to her, the Makati case was already
dismissed with finality.
4. From PND’s decision, it declared that Hyun’s accusations were without
basis. That the issue on her reasonable integrity lost basis when the Makati
case was already dismissed. However, with respect to the Bulacan case,
decision therein would be necessary in resolving the issue on her
character.
5. Months later, Capili asked that she be excluded from the list of employees
with pending administrative cases and the benefits due to her be paid,
but was denied. Capili now files a complaint against PNB for illegal
dismissal, non-payment of wages and other claims. That her termination
was without cause since all her charges supporting PNB’s loss of
confidence had been dismissed.
ISSUE:
Whether or not Capili’s dismissal on the ground of loss of trust and confidence is
valid.
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RULING:
1. NO. The court ruled that PNB’s assertion that because of the BP 22 cases,
PNB lost its trust and confidence is a mere afterthought considering that in
its decision, PNB resolved that the issue on her questionable character lost
its basis, as regards to Makati Case, and the only matter remaining was
the Bulacan case. When PNB issued its second decision, the Bulacan case
was also dismissed with finality. Thus, PNB’s loss of confidence is simulated
because all the while it represented that the administrative case of Capili
will be contingent on the resolution of the Bulacan case. PNB unjustifiably
changed its position to the detriment and eventual illegal dismissal of
Capili.
2. Capili presented valid defenses for the misconduct imputed against her.
For one, the complaint of Hyun was indeed a personal transaction that
does not involve PNB. For another, her interest in Sandino Builders was, in
fact disclosed, considering her having a PNB bank account for it.
Regarding the BP 22 cases, she already settled them with the parties
involved and these cases were already dismissed with finality by the
courts. Certainly, she did not breach PNB’s trust and confidence on her.
3. In the same vein, the court is unconvinced that PNB lost its confidence in
Capili. As properly pointed out by the LA, PNB gave Capili a “very good”
rating in her work performance. During this time, PNB was well aware of
the BP 22 cases against her, and the administrative case was also then
pending investigation. When PNB gave Capili a very satisfactory rating in
her work performance, it did not consider the pendency of the
administrative case as sufficient to prevent her from performing well in her
work; in the process, she continually enjoyed the trust and confidence of
PNB.
4. As also held in General Bank & Trust Company, “managerial employees
should enjoy the confidence of top management x x x especially x x x in
banks where its officers handle large sum of money and engage in
confidential x x x transactions. However, loss of confidence must not be
simulated. It must not be used as subterfuge x x x for improper, illegal, or
unjustified causes. It must not be arbitrarily asserted in the face of
overwhelming evidence to the contrary. Lastly, it must be genuine and
not a mere afterthought to justify earlier action taken in bad faith.” (Del
Castillo, J.; SC 2nd Division, Susan D. Capili vs. Philippine National Bank,
G.R. No. 204750, July 11, 2016).
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FACTS:
ISSUE:
Whether or not Angus is entitled to both retirement pay and Separation pay.
RULING:
1. YES. The court ruled that Angus is entitled to both early Retirement benefit
and Separation Pay, due to the absence of a specific provision in the CBA
prohibiting the recovery of both.
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FACTS:
ISSUE:
Whether or not Pedroso who had been retrenched or separated from service
due to financial losses entitled to Separation Pay.
RULING:
1. YES. Under Article 283 of the Labor Code, an employer may terminate the
employment of any employee due to:
a. Installation of labor-saving devices;
b. Redundancy;
c. Retrenchment to prevent losses; and
d. Closing or cessation of operation of establishment or undertaking.
Employer must serve written notice on the workers and DOLE within 1
month before the intended date thereof.
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FACTS:
2. The grounds for her dismissal were for dishonesty, loss of confidence based
on the collusion in defrauding company finances and for abandonment of
work. Essencia filed a complaint for illegal dismissal, non-payment of OT pay,
holiday pay, SIL and other damages.
3. Believing that her dismissal was without just cause, Essencia prayed for
reinstatement and the award of separation pay with back wages. However, TPI
alleged that the requisite notices of business closure to government authorities
and employees were complied, notwithstanding TPI’s continued operations.
Petitioner was found to have committed infraction resulting to loss of
confidence which was the ground for the termination of her employment.
4. In the LA, it was declared that Essencia was illegally dismissed. It was
affirmed by NLRC. However, CA reversed the same, ruling that Essencia was
validly dismissed.
ISSUE:
HELD: Yes.
1. Essencia was dismissed without just or authorized cause and that the
announced cessation of business operations was a mere subterfuge for
getting rid of the petitioner. CA’s decision finding serious business losses
is not born by the evidence on record.
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FACTS:
ISSUE:
HELD: Yes.
1. The court ruled that the respondents were illegally dismissed because
no valid cause for dismissal was shown and no compliance with the
two-notice-rule.
2. Grounds of termination of employment are provided under the Labor
Code and the just causes for termination are provided for under Article
282. Abandonment was not included in the enumeration, but court
held such as a form of neglect of duty. And to prove such, two
elements must concur:
a. Failure to report for work or absence without valid or justifiable
reason; and
b. Clear intention to severe the employer – employee relationship.
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FACTS:
1. Paquito Villegas is an employee at the Hacienda Leddy as early as
1960. During his employment, up to the time of his dismissal, Villegas
performed sugar farming jobs 8 hours a day, 6 days a week for not less
than 302 days a year, and for such services he was paid P15 a day. He
likewise worked in petitioner’s coconut lumber business where he was
paid P34 a day for 8 hours.
2. On June 19, 1993, Gamboa, the owner went to Villegas’ house and
told him that his services were no longer needed, without prior notice
or valid reason. Hence, Villegas filed a complaint for illegal dismissal.
Gamboa on the other hand, denied having dismissed Villegas and
admitted that Villegas indeed worked in the farm owned by his father,
doing odd jobs until the latter’s death. And that he was given the
benefit of occupying a portion of the land were his house was
erected.
3. Petition disputed that there exists an employer-employee relationship
between him and Villegas. He claimed that Villegas was paid on a
piece-rate basis without supervision. That since his job was not
necessary/ desirable in the usual business/ trade of the hacienda, he
cannot be considered as a regular employee.
4. Gamboa further alleged that Villegas filed the complaint to gain
leverage so he would not be evicted from the land he is occupying. LA
found that there is indeed an illegal dismissal, but the NLRC reversed
and set aside the same. On the appellate court, CA reinstated the LA’s
decision that there was illegal dismissal.
ISSUE:
WON Villegas was a regular employee of the petitioner and was illegally
dismissed.
HELD: Yes.
1. Records show that respondent, having been employed in the
Hacienda while the same was still being managed by petitioner’s
father until the latter’s death is undisputed as the same was even
admitted by Gamboa in his earlier pleadings. He failed to
categorically deny Villegas was indeed employed in their hacienda,
instead he insisted that Villegas was merely a casual employee doing
odd jobs.
2. Villegas’ length of service is an indication of regularity of his
employment. Even assuming that he was doing odd jobs around the
farm, such long period is indicative that the same was either necessary
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