CPLANAS VS NLRC

GR # 121696. Feb 11, 1999

FACTS: C Planas Commercial, a business entity engaged in merchandising and retailing of plastic and
fruits roducts was charged by Ramile de Los Reyes with illegal dismissal and non payment of basic wages
and certain monetary benefits. He claimed that he started working as deliveryman of Planas in 1988 and
later tasked with selling fruits until June 4, 1988 when he was llegedly dismissed.
The petitioner claimed that they did not dismiss de los Reyes. He was the one who abandoned his
work after he was confronted by Marcial Cohu, the manager regarding the reports that when Cohu was
not around he would sell the fruits at their stall at a higher price then pocket the difference. Accdg to
Cohu, de los Reyes admitted that the reports about overpricing were true and that after his admission
he did not report for work anymore, instead, he tendedd the fruit stall of another employer.

ISSUE: 1. WHETHER OR NOT CPLANAS IS EXEMPTED FROM GIVING HOLIDAY PAY AND SERVICE
INCENTIVE LEAVE PAY IT HAS LESS THAN 10 EMPLOYEES.
2. WHETHER DE LOS REYES IS ENTITLED TO BACKWAGES, OVERTIME PAY, NIGHT DIFFERENTIAL
PAY AND OTHER BENEFITS.

HELD: 1. Petitioners claim exemption under the law. However, the best proof that they could adduced
was their approved apllication for exemption in accordance with applicable guidelines issued by the
Commission under Sec4 sub par © of RA 6727. The petitioner was not able to substantiate by showing
compliance with the afoerecited provisions of the law.
Thus, if was well within Cohu’s means to refute any monetary claim allged to be unpaid. His
inability to produce the payrolls from their files without any satisfactory explanation can be interpreted
no less as suppression of vital evidence adverse to Planas.

2. The SC sustained the Labor Arbiter’s grant of back wages and order of reinstatement in favor of de los
Reyes. Since de los Reyes was illegally dismissed on June 4, 1993 after the effectivity of RA 6715 on
March 21, 1989, he is entitled to full backwages, inclusive of allowances and other benefits comouted
from the date of his dismissaluntil he is actually reinstated. If reinstatement shall no longer feasible, he
shall be entitled to separation pay in accordance with law. He is entitled to back wages, 13th month pay.
service incentive pay and salary differentials.