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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
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June-1997 Jurisprudence                 

  • G.R. No. 92462 June 2, 1997 - SANTIAGO GOKING v. ROLANDO R. VILLARAZA, ET AL.

  • G.R. No. 97896 June 2, 1997 - TEKNIKA SKILLS & TRADE SERVICES, INC. v. SECRETARY OF LABOR, ET AL.

  • G.R. No. 116748 June 2, 1997 - PEOPLE OF THE PHIL. v. MARJORIE CASTILLO

  • G.R. No. 121434 June 2, 1997 - ELENA F. UICHICO, ET AL. v. NLRC, ET AL.

  • G.R. No. 120880 June 5, 1997 - FERDINAND R. MARCOS II v. COURT OF APPEALS, ET AL.

  • G.R. No. 76969 June 9, 1997 - INLAND REALTY INVESTMENT SERVICE, INC., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 89369 June 9, 1997 - PEOPLE OF THE PHIL. v. ROLANDO BERGONIA, ET AL.

  • G.R. No. 107259 June 9, 1997 - RAYMUNDO M. DAPITON, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 108475 June 9, 1997 - GAMALIEL DINIO, ET AL. v. BIENVENIDO E. LAGUESMA, ET AL.

  • G.R. No. 115944 June 9, 1997 - ELVIRA C. GONZALES v. NLRC, ET AL.

  • G.R. No. 118536 June 9, 1997 - LAWIN SECURITY SERVICES, INC., ET AL. v. NLRC, ET AL.

  • G.R. Nos. 119362 & 120269 June 9, 1997 - PEOPLE OF THE PHIL. v. RICARDO O. RABOSA

  • G.R. No. 123905 June 9, 1997 - MARIA CRISTINA FERTILIZER CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 124280 June 9, 1997 - FLORA S. REYES v. COURT OF APPEALS, ET AL.

  • Bar Matter No. 730 June 10, 1997 - NEED THAT LAW STUDENT PRACTICING UNDER RULE 138-A BE SUPERVISED

  • G.R. No. 96999 June 10, 1997 - CARLOS O. YSMAEL v. COURT OF APPEALS, ET AL.

  • G.R. No. 106812 June 10, 1997 - TAGAYTAY-TAAL TOURIST DEV. CORP. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 107302, 107306 & 108559-60 June 10, 1997 - INDUSTRIAL TIMBER CORP. v. NLRC, ET AL.

  • G.R. No. 120074 June 10, 1997 - LEAH P. ADORIO v. LUCAS P. BERSAMIN

  • G.R. No. 120594 June 10, 1997 - ALFONSO TAN, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 123639 June 10, 1997 - ANTONIO M. GARCIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 113713 June 11, 1997 - ORIENT EXPRESS PLACEMENT PHIL. v. NLRC, ET AL.

  • G.R. No. 116940 June 11, 1997 - PHIL-AM GENERAL INSURANCE CO., INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 117561 June 11, 1997 - JULIO MARCO v. COURT OF APPEALS, ET AL.

  • G.R. No. 118041 June 11, 1997 - PHIMCO INDUSTRIES, INC. v. NLRC, ET AL.

  • G.R. Nos. 118921-22 June 11, 1997 - ERNESTO AUSTRIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 120956 June 11, 1997 - PEOPLE OF THE PHIL. v. DOMINGO MORENO, ET AL.

  • Adm. Matter No. P-97-1248 June 13, 1997 - MARIEL ECUBE-BADEL v. DAVID DE LA PEÑA BADEL

  • G.R. Nos. 100513 & 111559 June 13, 1997 - SEVERINO ANTONIO v. COURT OF APPEALS, ET AL.

  • G.R. No. 102467 June 13, 1997 - EQUITABLE BANKING CORP., ET AL. v. NLRC, ET AL.

  • G.R. Nos. 110817-22 June 13, 1997 - PEOPLE OF THE PHIL. v. MARCELINO A. BUGARIN

  • G.R. No. 111088 June 13, 1997 - C & M TIMBER CORP. v. ANGEL C. ALCALA, ET AL.

  • G.R. Nos. 113103 & 116000 June 13, 1997 - NAPOCOR, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 114764 June 13, 1997 - WILFREDO T. PADILLA v. NLRC, ET AL.

  • Adm. Case No. 4244 June 17, 1997 - BUHANGIN RESIDENTS & EMPLOYEES ASSN., ETC. v. CORAZON NUÑEZ-MALANYAON

  • G.R. No. 100920 June 17, 1997 - PEOPLE OF THE PHIL. v. NOLI SALCEDO, ET AL.

  • G.R. No. 109311 June 17, 1997 - ZENAIDA ASUNCION v. NLRC, ET AL.

  • G.R. Nos. 110974-81 June 17, 1997 - PEOPLE OF THE PHIL. v. DANTE MANANSALA

  • G.R. No. 111357 June 17, 1997 - TRADERS ROYAL BANK v. INTERMEDIATE APPELLATE COURT, ET AL.

  • G.R. No. 113799 June 17, 1997 - PEOPLE OF THE PHIL. v. BIENVENIDO BAYDO

  • G.R. No. 119337 June 17, 1997 - BAYVIEW HOTEL, INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 120030 June 17, 1997 - ATLAS FERTILIZER CORP., ET AL. v. NLRC, ET AL.

  • G.R. No. 120553 June 17, 1997 - PHILTRANCO SERVICE ENTERPRISES, INC., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 120802 June 17, 1997 - JOSE T. CAPILI v. NLRC, ET AL.

  • G.R. No. 121787 June 17, 1997 - PEOPLE OF THE PHIL. v. EDGARDO GREFALDIA

  • G.R. No. 121964 June 17, 1997 - ABDULIA RODRIGUEZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 122932 June 17, 1997 - JOY BROTHERS, INC. v. NWPC

  • Adm. Case No. 4431 June 19, 1997 - PRISCILLA CASTILLO VDA. DE MIJARES v. ONOFRE A. VILLALUZ

  • Adm. Matter No. P-96-1221 June 19, 1997 - ADORACION G. ANGELES v. PABLO C. GERNALE, JR.

  • Adm. Matter No. P-97-1240 June 19, 1997 - WILFREDO C. BANOGON v. FELIPE T. ARIAS

  • Adm. Matter No. P-97-1242 June 19, 1997 - ESTHER P. MAGLEO v. ARISTON G. TAYAG

  • G.R. Nos. 93100 & 97855 June 19, 1997 - ATLAS FERTILIZER CORP. v. SECRETARY OF DAR

  • G.R. No. 102612 June 19, 1997 - MANUEL L. QUEZON UNIVERSITY, ET AL. v. NLRC, ET AL.

  • G.R. Nos. 102723-24 June 19, 1997 - PEOPLE OF THE PHIL. v. EDUARDO CABALLES, ET AL.

  • G.R. No. 103493 June 19, 1997 - PHILSEC INVESTMENT CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 106583 June 19, 1997 - PEOPLE OF THE PHIL. v. VICTORIANO CASTRO

  • G.R. No. 108107 June 19, 1997 - PEOPLE OF THE PHIL. v. SUSAN PANTALEON

  • G.R. No. 108616 June 19, 1997 - PEOPLE OF THE PHIL. v. RODOLFO PATAWARAN

  • G.R. No. 109224 June 19, 1997 - MEGASCOPE GENERAL SERVICES v. NLRC, ET AL.

  • G.R. No. 110226 June 19, 1997 - ALBERTO S. SILVA, ET AL. v. NLRC, ET AL.

  • G.R. No. 112687 June 19, 1997 - PEOPLE OF THE PHIL. v. ABNER B. EUBRA

  • G.R. No. 113685 June 19, 1997 - PEOPLE OF THE PHIL. v. THEODORE BERNAL, ET AL.

  • G.R. No. 114812 June 19, 1997 - PEOPLE OF THE PHIL. v. RODEL Z. SAHAGUN, ET AL.

  • G.R. No. 115968 June 19, 1997 - RUBIN FERRER, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 116394 June 19, 1997 - PEOPLE OF THE PHIL. v. TEODORO BONOLA

  • G.R. No. 116918 June 19, 1997 - PEOPLE OF THE PHIL. v. BONFILO MARTINEZ

  • G.R. No. 117005 June 19, 1997 - CARLITO D. CORPUZ v. COURT OF APPEALS, ET AL.

  • G.R. No. 117228 June 19, 1997 - RODOLFO MORALES, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 118335-36 June 19, 1997 - PEOPLE OF THE PHIL. v. ROSELLER ALAS, ET AL.

  • G.R. No. 119071 June 19, 1997 - PEOPLE OF THE PHIL. v. ROGELIO ANTIPONA

  • G.R. No. 121429 June 19, 1997 - MARCIA TUMBIGA v. NLRC, ET AL.

  • G.R. No. 122368 June 19, 1997 - BERNARDO NAZAL, ET AL. v. NLRC, ET AL.

  • G.R. No. 122389 June 19, 1997 - MIGUEL SINGSON v. NLRC, ET AL.

  • G.R. No. 122806 June 19, 1997 - TIMES BROADCASTING NETWORK v. COURT OF APPEALS, ET AL.

  • G.R. No. 122866 June 19, 1997 - MELVA NATH v. NLRC, ET AL.

  • G.R. No. 123073 June 19, 1997 - PEOPLE OF THE PHIL. v. BENJAMIN CAYABYAB

  • G.R. No. 123673 June 19, 1997 - PEDRO C. CALUCAG v. COMELEC, ET AL.

  • G.R. No. 123708 June 19, 1997 - CSC, ET AL. v. RAFAEL M. SALAS

  • G.R. No. 124050 June 19, 1997 ccc zz

    MAYER STEEL PIPE CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 125008 June 19, 1997 - COMMODITIES STORAGE & ICE PLANT CORP., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 125221 June 19, 1997 - REYNALDO M. LOZANO v. ELIEZER R. DE LOS SANTOS, ET AL.

  • G.R. No. 125347 June 19, 1997 - EMILIANO RILLO v. COURT OF APPEALS, ET AL.

  • G.R. No. 125798 June 19, 1997 - HADJI HAMID LUMNA PATORAY v. COMELEC, ET AL.

  • G.R. No. 125955 June 19, 1997 - WILMER GREGO v. COMELEC, ET AL.

  • G.R. No. 126361 June 19, 1997 - VICTOR R. MIRANDA, ET AL. v. JESSIE B. CASTILLO, ET AL.

  • G.R. No. 127311 June 19, 1997 - CONRADO LINDO v. COMELEC, ET AL.

  • G.R. No. 127623 June 19, 1997 - DOMINADOR VERGEL DE DIOS v. COURT OF APPEALS, ET AL.

  • G.R. No. 116216 June 20, 1997 - NATALIA S. MENDOZA v. COURT OF APPEALS, ET AL.

  • G.R. No. 116695 June 20, 1997 - VICTORIA G. GACHON, ET AL. v. NORBERTO C. DEVERA, JR., ET AL.

  • G.R. No. 118435 June 20, 1997 - PEOPLE OF THE PHIL. v. MARIO SERZO, JR.

  • G.R. No. 119178 June 20, 1997 - LINA LIM LAO v. COURT OF APPEALS, ET AL.

  • G.R. No. 119745 June 20, 1997 - POWER COMMERCIAL AND INDUSTRIAL CORP. v. COURT OF APPEALS, ET AL.

  • G.R. No. 122079 June 27, 1997 - ANTONIO CONCEPCION, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 100935 June 30, 1997 - PEOPLE OF THE PHIL. v. VICENTE ZABALLERO

  • G.R. No. 102316 June 30, 1997 - VALENZUELA HARDWOOD AND INDUSTRIAL SUPPLY v. COURT OF APPEALS, ET AL.

  • G.R. No. 112260 June 30, 1997 - JOVITA YAP ANCOG, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 115689 June 30, 1997 - PEOPLE OF THE PHIL. v. LINO ARTIAGA

  • G.R. No. 121793 June 30, 1997 - PEOPLE OF THE PHIL. v. ADONIS BALAD

  •  





     
     

    G.R. No. 122932   June 17, 1997 - JOY BROTHERS, INC. v. NWPC

     
    PHILIPPINE SUPREME COURT DECISIONS

    SECOND DIVISION

    [G.R. No. 122932. June 17, 1997.]

    JOY BROTHERS, INC., Petitioner, v. NATIONAL WAGES AND PRODUCTIVITY COMMISSION, Respondent.


    R E S O L U T I O N


    ROMERO, J.:


    The instant petition for certiorari requires an interpretation of the exemption provisions pertinent to Wage Order No. NCR-03 and a determination of whether or not petitioner corporation falls within the exemption for distressed establishments. The assailed Decision is that of the National Wages and Productivity Commission promulgated August 29, 1995 in NWPC Case No. E-95-065, "In Re: Application for Exemption from Wage Order No. NCR-03, Joy Brothers Inc., Applicant, Joy Brothers Inc. Monthly Employees Chapter, Oppositor."cralaw virtua1aw library

    Wage Order No. NCR-03, providing for a twenty-seven peso wage increase for all private sector workers and employees in the National Capital Region receiving one hundred fifty-four pesos (P154.00) and below daily, was approved November 29, 1993. 1 On February 14, 1994, petitioner applied for exemption from said wage order on the ground that it was a distressed establishment.

    On June 7, 1994, the Regional Tripartite Wages and Productivity Board (hereinafter referred to as the Board) denied petitioner’s application for exemption after holding that the corporation accumulated profits amounting to P38,381.80 for the period under review. 2 Petitioner’s motion for reconsideration was likewise denied by the Wages and Productivity Board on January 5, 1995. 3

    On appeal to the National Wages and Productivity Commission, (the NWPC or respondent Commission) petitioner was again denied relief. In its Decision dated August 29, 1995 the Commission held that "a careful evaluation of the financial statements and other pertinent documents submitted on record revealed that the appellant registered accumulated profits of P38,381.80 for the years ending 31 December 1991 and 1992 and interim period January to September 1993." 4 Consequently, the earlier Orders of the Board were affirmed.chanroblesvirtuallawlibrary

    Hence, this petition for certiorari where an exemption as a distressed establishment is insisted upon. More specifically, petitioner contends that the interim period to be reckoned with is from January 1, 1993 to December 15, 1993 and not merely up to September 30, 1993 as held by respondent Commission. Significantly, the period up to December 31, 1993 will reflect losses in petitioner corporation’s books, but not if the covered interim period is only up to September 30, 1993.

    Under Section 5 of Wage Order No. NCR-03, distressed firms, as defined in the NWPC Revised Guidelines on Exemption may be exempted from the provisions of the Order upon application with and due determination of the Board. 5 NWPC Guidelines No. 01, Series of 1992, providing for the Revised Guidelines on Exemption indicate the criteria to qualify for exemption as follows:jgc:chanrobles.com.ph

    "3. For Distressed Establishments:chanrob1es virtual 1aw library

    a. In the case of a stock corporation, partnership, single proprietorship, non-stock, non-profit organization or cooperative engaged in a business activity or charging fees for its services —

    a.1 When accumulated losses for the last 2 full accounting periods and interim period, if any, immediately preceding the effectivity of the Order have impaired by at least 25 percent the:chanrob1es virtual 1aw library

    — Paid-up capital at the end of the last full accounting period preceding the effectivity of the Order, in the case of corporations:chanrob1es virtual 1aw library

    — Total invested capital at the beginning of the last full accounting period preceding the effectivity of the Order in the case of partnerships and single proprietorships.

    a.1.1 Establishments operating for less than two (2) years may be granted exemption when accumulated losses for said period have impaired by at least 25% the paid-up capital or total invested capital, as the case may be." 6

    Section 8, paragraph a, of the Rules Implementing Wage Order No. NCR-03 provides that exemption from compliance with the wage increase may be granted to distressed establishments whose paid-up capital has been impaired by at least twenty-five percent (25%) or which registers capital deficiency or negative net worth.

    The last two full accounting periods here are 1991 and 1992, for which years petitioner incurred net profits of P53,607.00 and P60,188.00, respectively. 7 If, as petitioner maintains, the unaudited financial figures for the entire 1993 (up to December 31, 1993) are taken into consideration, all of a sudden petitioner incurs a net loss of P5,260,273.00. Said loss impairs its paid-up capital for the year 1993 (P15,142,531.00) by 34% or more than the 25% required by the exemption provisions aforequoted. However, respondent Commission and the Board held that using September 30, 1993 as the cut-off date for the interim period, petitioner even realizes a profit amounting to P38,381.80.

    Since Wage Order No. NCR-03 was published on December 1, 1993 and thus became effective on December 16, 1993, 8 the coverage of the interim period for the year 1993 is the time frame at issue herein. Petitioner suggests that since the wage order took effect on December 16, 1993, the interim period referred to by the implementing rules ends on December 15, 1993. 9 Initially, however, petitioner contended that said interim period ends on December 31, 1993. 10 Petitioner adds that "interim period" has been misinterpreted to mean "partial accounting period," i.e. from January 1, 1993 to September 30, 1993.

    The Revised Guidelines on Exemption further provides that the following documents shall be submitted in support of the corporation’s application:jgc:chanrobles.com.ph

    "For Distressed Establishments:chanrob1es virtual 1aw library

    b. Available audited financial statements (together with the notes thereto) for the last 2 full accounting periods preceding the effectivity of the Order filed with and stamped "received" by the BIR and SEC.

    Interim quarterly financial statements (together with the notes thereto) for the period immediately preceding the effectivity of the Order.

    Income tax returns for the last 2 taxable periods filed with and stamped "received" by the BIR." 11

    The Guidelines expressly require interim quarterly financial statements for the period immediately preceding December 16, 1993. It is clear that the financial statements worthy of consideration are those of the three quarters prior to December 16, 1993, the third quarter ending on September 30, 1993. Thus, petitioner manifestly errs in claiming that said interim period is up to December 15, 1993 or December 31, 1993.

    Consequently, respondent Commission did not commit grave abuse of discretion in issuing the assailed Decision.

    WHEREFORE, the instant petition is hereby DISMISSED. Costs against petitioner.

    SO ORDERED.

    Regalado, Puno, Mendoza and Torres, Jr., JJ., concur.

    Endnotes:



    1. More particularly, a seventeen-peso wage increase was to be granted fifteen days after publication of the wage order and another ten-peso increase was due on April 1, 1994.

    2. Rollo, pp. 39-40.

    3. Rollo, pp. 52-55.

    4. Chairman Jose S. Brillantes, Vice-Chairman Cielito F. Habito, Carmelita M. Pineda, Labor Sector Members Cedric R. Bagtas and Vicente S. Bate voted to dismiss petitioner’s appeal while Employer Sector members Francisco R. Floro and Eduardo T. Rondain dissented, with the following note "I dissent. I want to include the whole of 1993 where consequently the impairment will be 31.4%." Rollo, p. 21.

    5. The Rules Implementing Wage Order No. NCR-03 define "Distressed Establishment" as referring to establishments which meet the criteria enumerated in Section 3(3) of the NWPC Guidelines on Exemption as well.

    6. Revised Guidelines on Exemption From Compliance with the Prescribed Wage/Cost of Living Allowance Increases Granted by the Regional Tripartite Wages and Productivity Boards, September 15, 1992.

    7. Audited figures.

    8. Published in the Philippine Daily Inquirer.

    9. Petition, p. 8. Rollo, p. 10.

    10. NWPC Decision, p. 2, Rollo, p. 19; Appeal Memorandum to NWPC, p. 3, Rollo, p. 25.

    11. Section 2, number 1 B.

    G.R. No. 122932   June 17, 1997 - JOY BROTHERS, INC. v. NWPC


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