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Section 8. The right of the people, including those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to law shall not be abridged.
3.2 The Labor Code of the Philippines and its Implementing Rules and Regulations
Article 284 of the Labor Code is the law applicable in this case. Art.284. Closure of establishment and
reduction of personnel. The employer may also terminate the employment of any employee due to the
installation of labor-saving devices, redundancy, retrenchment to prevent losses or the closing or
cessation of operation of the establishment or undertaking unless the closing is for the purpose of
circumventing the provisions of this title, by serving a written notice on the workers and the Ministry of
Labor and Employment at least month before the intended date thereof. In case of termination due to the
installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a
separation pay equivalent to at least his one month pay or to at least one month pay for every year of
service, whichever is higher. In case of retrenchment to prevent losses and in cases of closure or
cessation of operations of establishment or undertaking not due to serious business losses or financial
reverses, the separation pay shall be equivalent to one month pay or at least one-half month pay for
every year of service whichever is higher. A fraction of at least six months shall be considered one whole
year."
The purpose of the said article is obvious: the protection of the workers whose employment is terminated
because of the closure of establishment and reduction of personnel. Without said law, employees like
private respondents in the case at bar will lose the benefits to which they are entitled for the number of
years served. Although they were absorbed by the new management of the hacienda, in the absence of
any showing that the latter has assumed the responsibilities of the former employer, they will be
considered as new employees and the years of service behind them would amount to nothing. In any
event, it is well-settled that in the implementation and interpretation of the provisions of the Labor Code
and its implementing regulations, the workingmans welfare should be the primordial and paramount
consideration.
The instant petition is hereby dismissed and the decision of the Labor Arbiter and the Resolution of the
Ministry of Labor and Employment are hereby affirmed.
b.) Manaya v. Alabang Country Club 525 SCRA 144
His widow filed a claim for employees compensation under the Labor Code but thesame was denied by
GSIS on the ground that the ailments of her husband are not occupational diseases taking into
consideration the nature of his work and were not in the least causally related to his duties and
conditions.
Petitioner contended that the ailments of her husband were contracted in the courseof employment and
were aggravated by the nature of his work. Being a janitor of Ilocos Norte Skin Clinic, her husband
worked in direct contact with people suffering from different skin diseases and was exposed to
obnoxious dusts and other dirt which contributed to his ailment of Hansens disease.
The Employment Compensation Commission affirmed this denial of the claim by GSIS. It contended that
the decision of GSIS was anchored upon the findings that the ailments were not listed as occupation
diseases and that there was no substantial evidence of causal connections.
ISSUES
1.What is the quantum of proof required in claims for compensation?
2.Was the disease of the decedent occupation and thus compensable?
HELD
1.Strict rules of evidence are not applicable in claims for compensation. The degree of proof required
under PD 626 is merely substantial evidence, which means such relevant evidence as a reasonable mind
might accept as adequate to support a conclusion. The claimant must show, at least, by substantial
evidence that the development of the disease is brought largely by the conditions present in the nature of
the job. What the law requires is a reasonable work-connection and not a direct causal relation. It is
enough that the hypothesis on which the workmens claim is based is probable. Medical opinion to the
contrary can be disregarded especially where there is some basis in the facts for inferring a workconnection. Probability and not certainty is the touchstone.
2.YES. The major ailments of the deceased could be traced to bacterial and viral infections. In the case of
leprosy, it is known that the source of infection is the discharge from lesions of persons with active cases.
It is believed that the bacillus enters the body through the skin or through the mucous membrane of the
nose and throat.
The husband of the petitioner worked in a skin clinic. As a janitor of the skin clinic, he was exposed to
different carriers of viral and bacterial diseases. He had to clean the clinic itself where patients with
different illnesses come and go. He had to put in order the hospital equipments that had been used. He
had to dispose of garbage and wastes that accumulated in the course of each working day. He was the
employee most exposed to the dangerous concentration of infected materials and not being a medical
practitioner, least likely to known how to avoid infection. It is therefore not unreasonable to conclude that
Mr. Clementes working conditions definitely increased the risk of his contracting the diseases.
d.) Colgate Palmolive Philippines, Inc v. Ople GR No 73681
G.R. No. 73681 June 30, 1988
COLGATE PALMOLIVE PHILIPPINES, Inc., petitioners,
vs. HON. BLAS F. OPLE, COLGATE PALMOLIVE SALES UNION, respondents.
PARAS, J.:
Before Us is a Petition for certiorari seeking to set aside and annul the Order of respondent Minister of
Labor and Employment (MOLE) directly certifying private respondent as the recognized and dulyauthorized collective bargaining agent for petitioner's sales force and ordering the reinstatement of
three employees of petitioner.
On March 1, 1985, the respondent Union filed a Notice of Strike with the Bureau of Labor Relations (BLR)
on ground of unfair labor practice consisting of alleged refusal to bargain, dismissal of union
officers/members; and coercing employees to retract their membership with the union and restraining
non-union members from joining the union. After efforts at amicable settlement proved unavailing, the
Office of the MOLE, upon petition of petitioner assumed jurisdiction over the dispute pursuant to Article
264 (g) of the Labor Code.
Petitioner pointed out that the allegations regarding dismissal from employment due to union membership
were false. It also averred that the suspension and eventual dismissal of the three employees were
due to infractions committed by them and that the management reserves the right to discipline erring
employees. Petitioner also assailed the legality of the Union, among others.
The minister rendered its decision, ruling that there was no merit in the Unions complaint. It also ruled
that the three dismissed employees were not without fault but nonetheless ordered the reinstatement
of the same. At the same time, respondent Minister directly certified the respondent Union as the
collective bargaining agent for the sales force in petitioner company and ordered the reinstatement of
the three salesmen to the company on the ground that the employees were first offenders.
ISSUES
1. WON the Respondent Minister committed a grave abuse of discretion when he directly certified
the Union solely on the basis of the latter's self-serving assertion that it enjoys the support of the
majority of the sales force in petitioner's company.
2. WON the Respondent Minister committed a grave abuse of discretion when, notwithstanding his
very own finding that there was just cause for the dismissal of the three (3) salesmen, he
nevertheless ordered their reinstatement. (pp. 7-8, Rollo)
HELD:
1. HE committed grave abuse of discretion. (a) He has created havoc by impliedly establishing a
procedural short-cut to obtaining a direct certification-by merely filing a notice of strike. (b) By
creating such a short-cut, he has officially encouraged disrespect for the law. (c) By directly
certifying a Union without sufficient proof of majority representation, he has in effect arrogated
unto himself the right, vested naturally in the employees, to choose their collective bargaining
representative. (d) He has in effect imposed upon the petitioner the obligation to negotiate with a
union whose majority representation is under serious question. This is highly irregular because
while the Union enjoys the blessing of the Minister, it does not enjoy the blessing of the
employees. Petitioner is therefore under threat of being held liable for refusing to negotiate with a
union whose right to bargaining status has not been legally established
2. The Court held that the reinstatement of the three employees despite a clear finding of guilt on
their part is not in conformity with law. Ruling otherwise would only encourage unequal protection
of the laws with respect to the rights of the management and the employees.
The court rendered the decision of the minister reversed and set aside, ordering petitioners to
give the three employees their separation pay.
e.) Nicario v. NLRC et al, GR No. 125340 Sept 17 1998
EMELITA NICARIO, petitioner,
Facts: Nicario was employed as a salesgirl, later promoted to supervisor, with Mancao Supermarket.
She was terminated in 1989. Nicario filed a complaint for illegal dismissal with NLRC. The Labor Arbiter
dismissed the case. Nicario appealed to the NLRC. NLRC remanded the case back to the Labor Arbiter
for lack of due process. Labor Arbiter adjudged in favor of Nicario, ordering Mancao Supermarket to pay
unpaid service incentive leave, 13th month pay, overtime pay and rest day pay, but dismissed Nicarios
claims for holiday premium pay and unpaid salaries.
Nicario appealed to NLRC. It affirmed in toto the decision of the Labor Arbiter. In its motion for
reconsideration, NLRC deleted the award of overtime pay and ruled that Antonio Mancao is not jointly and
severally liable with Mancao Supermarket in paying Nicario. Hence, this certiorari proceeding.
Issue: Whether or not Antonio Mancao is solidarily liable with Mancao Supermarket as manager.
HELD: This Court, in previously evaluating the evidentiary value of daily time records, especially those
which show uniform entries with regard to the hours of work rendered by an employee, has ruled that
such unvarying recording of a daily time record is improbable and contrary to human experience. It is
impossible for an employee to arrive at the workplace and leave at exactly the same time, day in day
out. The uniformity and regularity of the entries are badges of untruthfulness and as such indices of
dubiety.[11] The observations made by the Solicitor General regarding the unreliability of the daily time
records would therefore seem more convincing. On the other hand, respondent company failed to present
substantial evidence, other than the disputed DTRs, to prove that petitioner indeed worked for only eight
hours a day.
It is a well-settled doctrine, that if doubts exist between the evidence presented by the employer and
the employee, the scales of justice must be tilted in favor of the latter. It is a time-honored rule that in
controversies between a laborer and his master, doubts reasonably arising from the evidence, or in the
interpretation of agreements and writing should be resolved in the formers favor. The policy is to extend
the doctrine to a greater number of employees who can avail of the benefits under the law, which is in
consonance with the avowed policy of the State to give maximum aid and protection of labor. [13]This rule
should be applied in the case at bar, especially since the evidence presented by the private respondent
company is not convincing. Accordingly, we uphold the finding that petitioner rendered overtime work,
entitling her to overtime pay.
As to the liability of private respondent Antonio Mancao, petitioner contends that as manager of
Mancao establishment, he should be jointly and severally liable with respondent corporation as to the
monetary award adjudged.
The general rule is that officers of a corporation are not personally liable for their official acts unless it
is shown that they have exceeded their authority. However, the legal fiction that a corporation has a
personality separate and distinct from stockholders and members may be disregarded if it is used as a
means to perpetuate fraud or an illegal act or as a vehicle for the evasion of an existing obligation, the
circumvention of statutes, or to confuse legitimate issues. [14]
In this case, there is no showing that Antonio Mancao, as manager of respondent company,
deliberately and maliciously evaded the respondent's company financial obligation to the
petitioner. Hence, there appearing to be no evidence on record that Antonio Mancao acted maliciously or
deliberately in the non-payment of benefits to petitioner, he cannot be held jointly and severally liable with
Mancao supermarket.
WHEREFORE, in view of the foregoing, the instant petition is hereby PARTIALLY
GRANTED. Accordingly, the resolution of the NLRC dated December 21, 1995 in NLRC NCR CA No. M002047-94 is hereby MODIFIED by awarding petitioner, Emelita Nicario her overtime pay and relieving
private respondent, Antonio Mancao, of any liability as manager of Mancao Supermarket and further
holding Mancao Supermarket solely liable. No costs
On March 25, 1992, petitioners sent private respondent a letter by registered mail, informing her that
her contract, due to expire on March 31, 1992, would not be renewed. Prior thereto, or on March 3, 1992,
to be precise, the private respondent instituted NLRC NCR Case No. 00-03-01481-92 [3] against the
herein petitioners for unfair labor practice based on harassment, illegal dismissal, 13 th month pay,
allowances, removal of desk and chair form place of work, and refusal to communicate, moral and
exemplary damages.[4] On November 12, 1993, absent any amicable settlement hammered out by the
parties, the Labor Arbiter came out with a decision, disposing, thus:
WHEREFORE, responsive to the foregoing, judgment is hereby ordered declaring complainant (sic)
dismissal from the service illegal. Respondent is hereby ordered to reinstate complainant to her former
position without loss of seniority rights and to pay for full backwages from the time of dismissal to her
actual reinstatement in the amount of Seventy Six Thousand Seven Hundred One (P76,701.00) Pesos.
Respondent is hereby ordered to pay complainant P25,000 as moral damages and P10,000 by way of
exemplary damages. Respondent (sic) are further assessed attorneys fees of 10% of the award.
On December 7, 1993, petitioners appealed the aforesaid decision to the NLRC.
On January 12, 1994, private respondent presented a Motion for Partial Execution of the
reinstatement aspect of the Labor Arbiters decision.
On November 29, 1994, petitioners appeal, docketed as NLRC NCR Case No. 006078-94, was
resolved in the assailed Resolution of the of the Second Division of the NLRC; disposing, as follows:
WHEREFORE, all premises considered, the decision of the Labor Arbiter below dated November 12,
1993 is hereby reversed and set aside and another one rendered, declaring the separation of Esther
Reyes from service legal and valid.
However, respondent is directed to pay the backwages of herein complainant from November 12,
1993 up to the date of the promulgation of this Resolution.
Therefrom, both parties moved for reconsideration; petitioners assailing the award of backwages in
favor of private respondent.
On November 29, 1995, the same Second Division of NLRC rendered its challenged Decision,
denying subject motions for reconsideration.
Unfortunately for private respondent, she never interposed any appeal from NLRCs ruling, upholding
the validity of her dismissal. It is therefore settled, beyond the reach of this courts power of review, that
private respondents employment was validly terminated.
On the part of petitioners, they have come here to question the award of backwages for the private
respondent, whose dismissal has been upheld with finality.
Article 280 of the Labor Code does not proscribe or prohibit an employment contract with a fixed
period provided the same is entered into by the parties, without any force, duress or improper pressure
being brought to bear upon the employee and absent any other circumstance vitiating consent. . There is
thus nothing essentially contradictory between a definite period of employment and the nature of the
employees duties It goes without saying that contracts of employment govern the relationship of the
parties. In this case, private respondents contract provided for a fixed term of nine (9) months, from June
1, 1991 to March 31, 1992. Such stipulation, not being contrary to law, morals, good customs, public order
and public policy, is valid, binding and must be respected. [6]
We now tackle the pivotal point of inquiry - the award of backwages in favor of private respondent. Is
it proper in light of the finding that her dismissal was valid?
The term backwages has been defined as that for earnings lost by a worker due to his illegal
dismissal.
Payment thereof is a form of relief that restores the income lost by reason of such unlawful dismissal.
Jurisprudence is filled to the brim with cases wherein backwages were awarded to an employee illegally
dismissed.[13] But where, as in this case of a pitiful employee rendered hapless by her lawyers inaction or
ignorance, the dismissal has been adjudged valid and lawful, the challenged award of backwages is
decidedly improper and contrary to law and jurisprudence.
WHEREFORE, the Petition is GRANTED; the Decision of the respondent NLRC rendered on
November 29, 1995 in NLRC NCR Case No. 00-6078-94 is hereby MODIFIED by deleting therefrom the
award of backwages in question. No pronouncement as to costs. SO ORDERED.