Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1988 > September 1988 Decisions > G.R. No. 76768 September 12, 1988 - CARLOS KENG SENG v. LORENZO DE LA CRUZ, ET AL.:




PHILIPPINE SUPREME COURT DECISIONS

SECOND DIVISION

[G.R. No. 76768. September 12, 1988.]

CARLOS KENG SENG, Petitioner, v. LORENZO DE LA CRUZ, ELVIRA SEVERO, ALICE UBERAS, CRISTINA BULADRAN, ELVIRA CATALUNA, DANNY ORTEGA, JOSE ESCALARES, EVELYN SEVERO, ROBERTO CALAMBA, Respondents.

Villamor & Torrecampo Law Offices for Petitioner.

The Solicitor General for public Respondent.

Geocadin, Vinco, Geolingo, Guance & Associates for Private Respondents.


SYLLABUS


1. LABOR AND SOCIAL LEGISLATIONS; LABOR CODE; EMPLOYMENT; TERMINATION OF EMPLOYMENT; VOLUNTARY RESIGNATION AND EXECUTION OF RELEASE OF CLAIMS DO NOT BAR REINSTATEMENT; EMPLOYEES IN CASE AT BAR WERE ILLEGALLY DISMISSED. — The Assistant Regional Director and the Minister of Labor that indeed petitioner promised to rehire or reinstate private respondents once his movie house resumes operation. "In ruling that complainants were illegally dismissed, the Director below gave credence to their assertions that because of their loyalty to their employer they acceded to the request of their employer to tender their resignation as part of the scheme of the Cinema Operators to close or shut down their (Cinema Operators) operations in protest or defiance of the City Government’s strict imposition of taxes on the promise that as soon as the cinemas reopen complainants would be reinstated. To bolster his ruling, the Director cited the cases of People’s Bank and Trust Company v. People’s Bank and Trust Company Employees Union (69 SCRA 10) where the Supreme Court held that acceptance of separation pay does not bar the workers from questioning the validity of their dismissal, and the case of Firestone Filipinas Employees Association v. Firestone Tire end Rubber Co. of the Phil., G.R. No. L-37952, December 10, 1974) where the same Court ruled that acceptance of separation pay by laborers did not estopped them from questioning the legality of their separation." it is not disputed that petitioner’s moviehouse has already resumed operation. On this score, reinstatement is proper.

2. ID.; ID.; ID.; ID.; ID.; EMPLOYEES WHO HAD EARLIER SETTLED THEIR CLAIMS ARE NO LONGER ENTITLED TO BACKWAGES. — We agree with the Solicitor General that while reinstatement is proper, private respondents after receiving amounts due then pursuant to their settlement are not entitled to backwages because this would be tantamount to unjust enrichment of private respondents at the expense of petitioner.


D E C I S I O N


PARAS, J.:


This is an appeal from the Order dated November 20, 1986 of the then Minister of Labor Augusto S. Sanchez denying petitioner’s Motion for Reconsideration. The said motion was filed against the Order of Deputy Minister Vicente Leogardo, Jr., the dispositive portion of which states:jgc:chanrobles.com.ph

"WHEREFORE, premises considered, the contested Order is hereby affirmed subject to the modification that the backwages of the complainants shall be fixed for three years without qualification or reduction, and their money claims dismissed for lack of merit." (p. 6, Rollo)

Hereunder are the pertinent background facts:chanrob1es virtual 1aw library

The herein private respondents, nine in all, were employees of petitioner Carlos Keng Seng in his moviehouse business in Bacolod City.

Sometime in the first week of July 1980 petitioner made known to his workers his intention to temporarily close its business due to the City government’s strict imposition of taxes. As a result of which, private respondents, on July 21, 1980 executed individual releases of claims before a labor conciliator of the Bacolod District Office stating among other things that they had tendered their resignations and had received their 13th month pay, living allowance, overtime pay and other benefits in accordance with the Labor Code. Then on July 24, 1980, private respondents signed individual cash vouchers attesting to their having received the said benefits and on July 31, 1980, petitioner filed a report of termination of the private respondents before the Bacolod District Office on the ground of voluntary resignation effective July 21, 1980.

However, on September 2,1980, private respondents filed a complaint for illegal dismissal with prayer for reinstatement with backwages, violation of P.D.’s 525, 1123, 1614, and 1678, under payment, overtime pay, 10% night shifts differential, 30% holiday pay and rest day and service incentive leave pay. They alleged that because of their loyalty to their employer, they acceded to his request to tender their resignations as part of the scheme of the Cinema Operators to close or shut down their operations in protest of the City government’s strict imposition of taxes, on the promise that as soon as the moviehouse reopens, they would be reinstated to their former positions.

Petitioner (then the respondent) vehemently denied that he promised reinstatement. He claims that private respondents (then the complainants) are not entitled to be reinstated to their work and neither are they entitled to backwages because they voluntarily resigned from their employment and have accepted their separation pay and all other benefits per agreement which was even ironed out before the Labor Conciliator of the Ministry of Labor and Employment, Regional Office No. VI, Bacolod City.

On December 15, 1980, the Assistant Regional Director issued an Order in favor of the private respondents, the dispositive portion of which reads:jgc:chanrobles.com.ph

"WHEREFORE, respondent is ordered to pay complainants the following:chanrob1es virtual 1aw library

Name of Employees ECOLA INCENTIVE

LEAVE

1. LORENZO DE LA CRUZ P5,480.10 P 230.38

2. ELVIRA SEVERO 5,480.10 176.75

3. ALICE UBERAS 5,370.10 184.38

4. CRISTINA BULADRAN 5,480.10 172.88

5. ELVIRA CATALUNA 5,480.10 192.00

6. DANNY ORTEGA 5,480.10 176.75

7. JOSE ESCALARES 2,366.06 106.96

8. EVELYN SEVERO 5,480.10 192.00

9. ROBERTO CALAMBA 5,480.10 192.00

_______ _______

TOTAL P46,066.10 P1,624.10

Respondent is further ordered to reinstate the nine (9) aforementioned complainants to their work with backwages, from the date of termination to date of actual reinstatement, without loss of seniority rights and other privileges." (p. 16, Rollo)

On appeal, the Deputy Minister of Labor affirmed the decision with modification. The pertinent portion of the said decision reads —

"We are in accord with the ruling of the Director below insofar as complainants’ reinstatement effective 4 August 1980 with back wages is concerned. While there may have been an agreement by the parties that complainants would resign and accept separation pay, there was also the promise to reinstate them as soon as the cinemas reopen for business. We disagree, however, with the award of money claims. In this regard, they agreed to compromise their claims and the same was made before an official in the District Office. They cannot now renege from their word. To obviate, however, claims and counter claims on possible earnings elsewhere, the back wages shall be limited to three years.

"WHEREFORE, premises considered, the contested Order is hereby affirmed subject to the modification that the backwages of the complainants shall be fixed for three years without qualification or reduction, and their money claims dismissed for lack of merit.

"SO ORDERED." (pp. 18-19, Rollo)

Petitioner moved to reconsider the aforesaid decision but the same was denied, hence, this petition. It is the contention of petitioner that the Labor Minister committed reversible error in ordering the reinstatement, with three years backwages, of herein private respondents, notwithstanding the undisputed fact that the latter had voluntarily chosen to resign from their employment and executed individual releases of claims after receiving from petitioner the amounts due them pursuant to the settlement they arrived at before a labor conciliator of the Ministry of Labor and Employment.

We would have gone along with petitioner were it not for the finding of the Assistant Regional Director and affirmed by the Minister of Labor that indeed petitioner promised to rehire or reinstate private respondents once his movie house resumes operation.

"In ruling that complainants were illegally dismissed, the Director below gave credence to their assertions that because of their loyalty to their employer they acceded to the request of their employer to tender their resignation as part of the scheme of the Cinema Operators to close or shut down their (Cinema Operators) operations in protest or defiance of the City Government’s strict imposition of taxes on the promise that as soon as the cinemas reopen complainants would be reinstated. To bolster his ruling, the Director cited the cases of People’s Bank and Trust Company v. People’s Bank and Trust Company Employees Union (69 SCRA 10) where the Supreme Court held that acceptance of separation pay does not bar the workers from questioning the validity of their dismissal, and the case of Firestone Filipinas Employees Association v. Firestone Tire end Rubber Co. of the Phil., G.R. No. L-37952, December 10, 1974) where the same Court ruled that acceptance of separation pay by laborers did not estopped them from questioning the legality of their separation." (pp. 17-18, Rollo)

It is not disputed that petitioner’s moviehouse has already resumed operation. On this score, reinstatement is proper. We however agree with the Solicitor General that while reinstatement is proper, private respondents are not entitled to backwages because this would be tantamount to unjust enrichment of private respondents at the expense of petitioner.

WHEREFORE, with the modification as above indicated, the order appealed from is hereby AFFIRMED.

SO ORDERED.

Melencio-Herrera, Padilla, Sarmiento and Regalado, JJ., concur.




Back to Home | Back to Main




















chanrobles.com





ChanRobles On-Line Bar Review

ChanRobles Internet Bar Review : www.chanroblesbar.com

ChanRobles MCLE On-line

ChanRobles Lawnet Inc. - ChanRobles MCLE On-line : www.chanroblesmcleonline.com






September-1988 Jurisprudence                 

  • G.R. No. 76001 September 5, 1988 - PRODUCERS BANK OF THE PHILIPPINES v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-31600 September 12, 1988 - PRUDENTIAL BANK & TRUST CO. v. COMMUNITY BUILDERS CO., INC., ET AL.

  • G.R. No. L-48762 September 12, 1988 - REPUBLIC OF THE PHIL. v. SEGUNDO M. ZOSA

  • G.R. No. 76768 September 12, 1988 - CARLOS KENG SENG v. LORENZO DE LA CRUZ, ET AL.

  • G.R. No. 80228 September 12, 1988 - PEOPLE OF THE PHIL. v. NESTOR FERNANDEZ

  • G.R. No. L-57519 September 13, 1988 - DELFIN ORODIO v. COURT OF APPEALS, ET AL.

  • G.R. No. L-46881 September 15, 1988 - PEOPLE OF THE PHIL. v. MARIANO CASTAÑEDA, JR.

  • G.R. No. L-47821 September 15, 1988 - BENITO ROSALES, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 77090 September 16, 1988 - DIOSDADO ESPADERA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-29320 September 19, 1988 - FELIPE SEGURA, ET AL. v. NICOLAS SEGURA, ET AL.

  • G.R. No. L-44264 September 19, 1988 - HEDY Y. GAN v. COURT OF APPEALS, ET AL.

  • G.R. No. L-45388 September 19, 1988 - TACIANA B. ESPEJO v. WORKMEN’S COMPENSATION COMMISSION, ET AL.

  • G.R. No. L-47646 September 19, 1988 - PEOPLE OF THE PHIL. v. CESAR R. MARAVILLA, ET AL.

  • G.R. Nos. L-48728-29 September 19, 1988 - PEOPLE OF THE PHIL. v. ALBERTO RAMOS

  • G.R. No. L-60764 September 19, 1988 - PEOPLE OF THE PHIL. v. ROBERTO BARDON, ET AL.

  • G.R. No. 71142 September 19, 1988 - PEOPLE OF THE PHIL. v. LOPE MARALIT, ET AL.

  • G.R. No. 73794 September 19, 1988 - ETERNAL GARDENS MEMORIAL PARKS CORPORATION v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 74711 September 19, 1988 - NATIONAL STEEL CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 75395 September 19, 1988 - ESTELITO BAGADIONG, ET AL. v. PLACIDA VDA. DE ABUNDO

  • G.R. No. 77210 September 19, 1988 - MARCOPPER MINING CORPORATION v. LIWANAG PARAS BRIONES, ET AL.

  • G.R. Nos. 78535-36 September 19, 1988 - MANUEL DY v. MATILDE SACAY

  • G.R. No. L-32684 September 20, 1988 - RAMON TUMBAGAHAN v. COURT OF APPEALS, ET AL.

  • G.R. No. L-59097 September 20, 1988 - PEOPLE OF PHIL. v. ARSENIO D. TOLENTINO

  • G.R. No. 73418 September 20, 1988 - PELICULA SABIDO, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 80006 September 21, 1988 - APOLONIA BAUTISTA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 80294-95 September 21, 1988 - CATHOLIC VICAR APOSTOLIC OF THE MOUNTAIN PROVINCE v. COURT OF APPEALS, ET AL.

  • G.R. No. 80992 September 21, 1988 - EDWIN REANO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-36413 September 26, 1988 - MALAYAN INSURANCE CO., INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-39910 September 26, 1988 - CECILIA TEODORO DAYRIT, ET AL. v. FERNANDO A CRUZ

  • G.R. Nos. L-49762-64 September 26, 1988 - RANULFO PAMPARO v. COURT OF APPEALS, ET AL.

  • G.R. No. L-68357 September 26, 1988 - SAMAHAN NG MGA NANGUNGUPAHAN SA AZCARRAGA TEXTILE, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-68992 September 26, 1988 - PEOPLE OF THE PHIL. v. FAUSTINO PACNIS

  • G.R. No. L-68993 September 26, 1988 - PEOPLE OF THE PHIL. v. RUDY DOMINGO, ET AL.

  • G.R. Nos. L-69205-06 September 26, 1988 - NUWHRAIN-BONANZA RESTAURANT CHAPTER v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-69934 September 26, 1988 - PEOPLE OF THE PHIL. v. MARIANITO INTINO

  • G.R. No. 73488 September 26, 1988 - PEOPLE OF THE PHIL. v. TEODORO BALARES

  • G.R. No. 73859 September 26, 1988 - JUAN DE CASTRO, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 73876 September 26, 1988 - PEOPLE OF THE PHIL. v. LAURO G. CARIÑO, ET AL.

  • G.R. Nos. 74123-24 September 26, 1988 - PEOPLE OF THE PHIL. v. RONILO L. PINLAC

  • G.R. No. 75816 September 26, 1988 - PEOPLE OF THE PHIL. v. GAVINO AGUINALDO

  • G.R. No. 75877 September 26, 1988 - SANTOS BERNARDO, ET AL. v. BALTAZAR R. DIZON

  • G.R. No. 76132 September 26, 1988 - PEOPLE OF THE PHIL. v. FERNANDO CLAVO, JR.

  • G.R. No. 76711 September 26, 1988 - PEOPLE OF THE PHIL. v. MARVIN H. TORRES, ET AL.

  • G.R. No. 77201 September 26, 1988 - AVENTINO C. SASAN, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 77290 September 26, 1988 - DIVINA JABALLAS v. CONSTRUCTION & DEVELOPMENT CORPORATION OF THE PHILIPPINES

  • G.R. No. 77951 September 26, 1988 - COOPERATIVE RURAL BANK OF DAVAO CITY, INC. v. PURA FERRER-CALLEJA, ET AL.

  • G.R. No. 78606 September 26, 1988 - GELACIO V. SAMULDE v. RAMON M. SALVANI, JR.

  • G.R. No. 79891 September 26, 1988 - AURELIO M. DE VERA v. C. F. SHARP & CO., INC., ET AL.

  • G.R. No. L-80383 September 26, 1988 - EMMANUEL LABAJO v. PUREZA V. ALEJANDRO, ET AL.

  • G.R. No. 81163 September 26, 1988 - EDUARDO S. BARANDA, ET AL. v. TITO GUSTILO, ET AL.

  • G.R. No. 81969 September 26, 1988 - JOCELYN RULONA-AL AWADHI v. ABDULMAJID J. ASTIH

  • G.R. No. 82833 September 26, 1988 - 3M PHILIPPINES, INC. v. COMMISSIONER OF INTERNAL REVENUE

  • G.R. No. L-52034 September 27, 1988 - SALVADOR LACORTE v. AMADO G. INCIONG, ET AL.

  • G.R. No. L-60935 September 27, 1988 - ANTONIO GARCIA, JR. v. SANTIAGO RANADA, JR., ET AL.

  • G.R. No. L-75880 September 27, 1988 - BERNARDO M. CORDIAL v. PEOPLE OF THE PHIL., ET AL.

  • G.R. No. L-45447 September 28, 1988 - CARLITO V. SEMBRANO v. PEDRO A. RAMIREZ, ET AL.

  • G.R. No. L-54287 September 2, 1988 - REPUBLIC PLANTERS BANK v. CONRADO M. MOLINA, ET AL.

  • G.R. No. L-75569 September 28, 1988 - BOARD OF LIQUIDATORS v. COURT OF APPEALS, ET AL.

  • G.R. No. L-80380 September 28, 1988 - CARLOS BELL RAYMOND, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. L-82173 September 28, 1988 - EDGAR S. ASUNCION v. COURT OF APPEALS, ET AL.

  • G.R. No. L-37079 September 29, 1988 - HEIRS OF ZOILO LLIDO v. PAULINO S. MARQUEZ, ET AL.

  • G.R. No. L-41322 September 29, 1988 - MUNICIPALITY OF KAPALONG, ET AL. v. FELIX L. MOYA, ET AL.

  • G.R. No. L-44347 September 29, 1988 - VICENTE TAN v. CITY OF DAVAO

  • G.R. No. L-49731 September 29, 1988 - ALFREDO SERING v. RESTITUTO PLAZO, ET AL.

  • G.R. No. L-70987 September 29, 1988 - GREGORIO Y. LIMPIN, ET AL. v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-75736 September 29, 1988 - ASSOCIATED LABOR UNIONS (ALU-TUCP), ET AL. v. ANTONIO V. BORROMEO, ET AL.

  • G.R. No. L-80457 September 29, 1988 - PEOPLE OF THE PHIL. v. CASIANO ROSE, SR., ET AL.

  • G.R. No. L-80737 September 29, 1988 - PHILIPPINE GRAPHIC ARTS, INC., ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-81760 September 29, 1988 - EDGARDO L. STO. DOMINGO v. SEDFREY A. ORDOÑEZ, ET AL.

  • G.R. No. L-82542 September 29, 1988 - BARRY JOHN PRICE, ET AL. v. UNITED LABORATORIES

  • G.R. No. L-40218 September 30, 1988 - REPUBLIC OF THE PHIL. v. ALEJANDRO E. SEBASTIAN, ET AL.

  • G.R. No. L-50168 September 30, 1988 - HEIRS OF GAVINO SABANAL v. BENJAMIN K. GOROSPE, ET AL.

  • G.R. No. L-65935 September 30, 1988 - FILINVEST CREDIT CORPORATION v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-69136 September 30, 1988 - COMMISSIONER OF INTERNAL REVENUE v. MEGA GENERAL MERCHANDISING CORPORATION, ET AL.

  • G.R. Nos. L-74610-11 September 30, 1988 - ALGA MOHER INTERNATIONAL PLACEMENT SERVICES v. DIEGO P. ATIENZA, ET AL.

  • G.R. No. L-74811 September 30, 1988 - CHUA YEK HONG v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. L-77032 September 30, 1988 - EXCEL AGRO-INDUSTRIAL CORPORATION v. JUAN T. GOCHANGCO, ET AL.

  • G.R. No. L-79488 September 30, 1988 - REPUBLIC PLANTERS BANK v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. L-80040 September 30, 1988 - ISMAEL AMORGANDA, ET AL. v. COURT APPEALS, ET AL.

  • G.R. No. L-81381 September 30, 1988 - EFIGENIO S. DAMASCO v. HILARIO L. LAQUI, ET AL.