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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
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
May-2010 Jurisprudence                 

  • [G.R. No. 21924, May 12, 2010] SING JUCO, PLAINTIFF AND APPELLANT, VS. BENJAMIN CUAYCONG, AGATON TONGOY AND MARIANO RAMOS, DEFENDANTS AND APPELLEES.

  • [G.R. No. 47864 : May 12, 2010] GAUDENCIO C. HIQUIANA ET AL., PETITIONERS-APPELLEES, VS. ISMAEL L. VELOSO, ETC., RESPONDENT-APPELLANT.

  • [G.R. No. 174719 : May 05, 2010] HEIRS OF MARIO PACRES, NAMELY: VALENTINA VDA. DE PACRES, JOSERINO, ELENA, LEOVIGILDO, LELISA, AND LOURDES ALL SURNAMED PACRES, AND VEÑARANDA VDA. DE ABABA, PETITIONERS, VS. HEIRS OF CECILIA YGOÑA, NAMELY BAUDILLO YGOÑA YAP, MARIA YAP DETUYA, JOSEFINA YAP, EGYPTIANA YAP BANZON, AND VICENTE YAP[1] AND HILARIO RAMIREZ, RESPONDENTS.

  • [G.R. No. 164703 : May 04, 2010] ALLAN C. GO, DOING BUSINESS UNDER THE NAME AND STYLE "ACG EXPRESS LINER," PETITIONER, VS. MORTIMER F. CORDERO, RESPONDENT. [G.R. No. 164747] MORTIMER F. CORDERO, PETITIONER, VS. ALLAN C. GO, DOING BUSINESS UNDER THE NAME AND STYLE "ACG EXPRESS LINER," FELIPE M. LANDICHO AND VINCENT D. TECSON, RESPONDENTS.

  • [G.R. No. 175200 : May 04, 2010] NATIONAL HOUSING AUTHORITY, PETITIONER, VS. THE DEPARTMENT OF AGRARIAN REFORM ADJUDICATION BOARD AND MATEO VILLARUZ, SUBSTITUTED BY HIS HEIRS, NAMELY, SONIA VILLARUZ, MARGARITA VILLARUZ AND CARLOS H. VILLARUZ, RESPONDENTS.

  • [G.R. No. 181068 : May 04, 2010] PEOPLE'S AIR CARGO AND WAREHOUSING CO., INC, PETITIONER, VS. HONORABLE FRANCISCO G. MENDIOLA, IN HIS CAPACITY AS PRESIDING JUDGE OF THE REGIONAL TRIAL COURT OF PASAY CITY, BRANCH 115, AND CATHAY PACIFIC AIRWAYS, LTD., RESPONDENTS.

  • [G.R. No. 187049 : May 04, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. LITO MACAPANAS Y ECIJA, ACCUSED-APPELLANT.

  • [G.R. No. 191550 : May 04, 2010] HENRY "JUN" DUEÑAS, JR., PETITIONER, VS. HOUSE OF REPRESENTATIVES ELECTORAL TRIBUNAL AND ANGELITO "JETT" P. REYES, RESPONDENTS.

  • [G.R. No. 180062 : May 05, 2010] GOVERNMENT SERVICE INSURANCE SYSTEM, PETITIONER, VS. BOARD OF COMMISSIONERS (2ND DIVISION), BOARD OF COMMISSIONERS OF THE HOUSING AND LAND USE REGULATORY BOARD (HLURB) HLURB NATIONAL CAPITAL REGION FIELD OFFICE, SPOUSES MARCELINO H. DE LOS REYES AND ALMA T. DE LOS REYES, AND NEW SAN JOSE BUILDERS, INC., RESPONDENTS.

  • [G.R. No. 141508 : May 05, 2010] ROBERTO S. BENEDICTO AND TRADERS ROYAL BANK, PETITIONERS, VS. MANUEL LACSON, A & A MONTELIBANO HIJOS, INC., ROBERTO ABELLO, DOMINADOR AGRAVANTE, LUISA ALANO, ALEXANDER FARMS, INC., ANGELA ESTATE, INC., GUILLERMO AND DOROTHY ARANETA, LETECIA ARANETA, ARCEO RAMOS & SONS, INC., SPOUSES GEORGE & LOURDES ARGUELLES, ASOSACION DE HACENDEROS DE SILAY-SARAVIA, INC. (AHSSI), SALVADOR BAUTISTA, BJB AGRO-INDUSTRIAL CORP., EUGENIO BAUTISTA, LUZ RAMOS BAYOT, CYNTHIA BENEDICTO, EVA BENEDICTO, LEOPOLDO BENEDICTO, MARY JANE BENEDICTO, FLORO BONGCO, FRANCISCO BONGCO, GERARDO BONGCO, MAXCY BORROMEO, QUIRICO CAMUS, CELSO AGRO INDUSTRIAL CORP., JULIA SO DE UYCHIAT, ARTURO UYCHIAT, LUIS UYCHIAT, ELISE UYCHIAT, CIRO LOCSIN AGRICULTURAL CORPORATION, CLAMONT FARMS, INC., SAGRARIO CLAPAROLS, JAIME CLAPAROLS, CLAUDIO LOPEZ, INC., RAMON CLEMENTE, SPOUSES ROMY CONLU AND ASUCENA DIASATA, SPOUSES CORNELIO AND DOLORES CONSING, LOPE CONSING, SPOUSES RAFAEL AND JULIETA CONSOLACION, BALCONER CORDOVA, CONSOLING CORDOVA, RAFAEL COSCULLUELA, CLK AGRO DEVELOPMENT CORP., EMILIO CUAYCONG, JR., SPOUSES JOSE ROBERTO AND PATRICIO CUAYCONG, ROMELI CUAYCONG, SONYA CUAYCONG, FELIPE DALIMO-OS, UBERTA DALIMO-OS, DELARICA REALTY, DOLL AGRICULTURAL CORP., DR. ANTONIO LIZARES CO., INC., SPOUSES BONIFACIO AND URBANA DUJON, ELAR AGRO INDUSTRIAL CORP., ELCEE FARMS, INC., ESTATE OF FERNANDO ERENETA, SPOUSES BENJAMIN AND TERESITA ESTACIO, EUSEBIO INCORPORATED, FARMLAND INCORPORATED, FELICIA AGRI DEVELOPMENT CORP., FELISA AGRI CORPORATION, SPOUSES ROLANDO AND NELLY FERMIN, FERTI-ACRES AGRI-CULTURAL CORPORATION, FRANCISCO JAVIER LACSON Y HERMANOS, GAMBOA HERMANOS, INC., HONORATO GAMBOA, ESTATE OF REMEDIOS GAMBOA, ANTONIO GASTON, HEIRS OF GERARDO GASTON, ESTATE OF JOSE MA. GASTON, VICTOR MA. GASTON, JOSE MA. GASTON, JOSE MA. GOLEZ, ANTONIO GONZAGA, ERNESTO GONZAGA, JESUS GONZAGA, LUIS GONZAGA, GONZAGA REAL ESTATE ENTERPRISES, INC., ROBERT GONZAGA, GREEN SOILS AGRICULTURE, INC., ESTATE OF REMEDIOS L. VDA. DE GUINTO, WARLITO USTILO, G.V. & SONS, INC., ENCARNACION HERNAEZ, SPOUSES MIGUEL AND CECILIA MAGSAYSAY, ADELINO HERNANDEZ, SPOUSES ABELARDO AND EMILY HILADO, SPOUSES ALFREDO AND TERESITA HILADO, RAMON HILADO, SPOUSES REMO AND ELSIE HINLO, SPOUSES DANILO AND NIMFA HINLO, MA. CRISTINA HOJILLA, DIOSDADO AND DIONISIO HOSALLA, JALIMONT REALTY, INC., ALBERTO AND BENJAMIN JALANDONI, DANIEL JALANDONI, JALKK CORPORATION, LEONOR JAVELLANA, ERIBERTO JESENA, PISON JESUSA AND SISTERS, JISARA AGRI DEVELOPMENT CORPORATION, J.H. TAMPINCO AGRICULTURAL CORP., LILIA LOPEZ DE JISON, ROBERTO JISON, JOMILLA AGRO INDUSTRIAL VENTURES, INC., BENIGNA JONOTA, JOSEFINA RODRIGUEZ AGRICULTURAL CORP., JT ALUNAN AGRI. CORP., ANTONIO JUGO, SPOUSES JUANITO JUMILLA AND SANTAS DALIMO-OS, ESTATE OF CASILDA JUSTINIANI, SPOUSES ALEJANDRO AND ANTONIO KANA- AN, AGUSTIN KILAYCO, SPOUSES RODOLFO AND EMMA LACSON, EMMANUEL LACSON, ESTATE OF ERNESTO LACSON, LACSON HERMANOS, INC., ESTATE OF FELIPE LACSON, MANUEL LACSON, ESTATE OF MANUELA VDA. DE LACSON, PEDRO LACSON, RAMON LACSON, SR., TERESA LACSON, RODRIGO LACSON, LACTOR ESTATE DEVELOPMENT CORP., LIBERTINO AGUTANG, CARMEN CONSING LA'O, JOSE LA'O, JULIA LA'O, LA SALVACION AGRICULTURAL CORP., ENRIQUE LEDESMA, LEDESMA HERMANOS, INC., JESUS LEDESMA, SPOUSES JOSE MA. AND EVA LEDESMA, LEGA FARMS, CORP., ESTATE OF ANASTACIO LEGARDE, LIMJAP-ALUNAN AGRI, JESUS LIZARES, JOSE LIZARES, LUIS LIZARES, NILO LIZARES, SR. AND JR., SPOUSES JOSE AND PERLA LIZARES, ROBERTO LIZARES, ANTONIO LOCSIN, FEDERICO LOCSIN, JR., SPS. ROBERT AND JEAN MARIE WINEBURGER, ESTATE OF JOSE LOCSIN, OSCAR LOCSIN, SPOUSES JOSE MA. AND MARGARITA LOCSIN, VICENTE LOCSIN, LONOY AGRICULTURAL CORP., DOLORES LOLITA VDA. DE LOPEZ, FORTUNATO LOPEZ, NER LOPEZ, ESTATE OF NIEVES LOPEZ, POMPEYO LOPEZ, ROSENDO LOPEZ, ARTURO DE LUZURIAGA, CLAUDIO DE LUZURIAGA, CATALINA VDA. DE MAKILAN, BENITO MALAN, BASILIO MANALO, MANCY & SONS, INC., MANILAC AGRO COMMERCIAL CORP., SPOUSES MANUEL AND LUISA MANOSA, JULIO AND GENEVIEVE MAPA, MAPLE AGRI-CORP., INC., MARLAND AGRICULTURAL CORP., MARVIA & CO., INC., ANTONIO MENDOZA, BERNARDO MENDOZA, JR., SPOUSES BERNARDO AND ROSARIO MENDOZA, MALAURIE AGRICULTURAL DEVELOPMENT CORP., HEIRS OF MANUEL AND CEFERINO MONFORT, ESTATE OF MANUEL MONFORT, JR., SPOUSES EMILIO AND LINDA MONTALVO, MONTILLA SISTERS AGRICULTURAL CORP., ANTONIO MONTINOLA, NIEVES AGRO-INDUSTRIAL DEVELOPMENT CORP., MAMERTO DE OCA, O. LEDESMA & CO., INC., HEIRS OF MERCEDES PABIANA, TEODULO PABIANA, ESTATE OF ROSARIO PALENZUELA, ESTATE OF ENCARNACION PANLILIO, JOSE PASCUAL, JOHNNY DE LA PENA, ANICETA PERDIGUEROS, AQUILES PERDIGUEROS, LUISA PEREZ, CRISTINA PERTIERRA, PHISON FARMS, INC., ESTATE OF JOSEFINA PICCIO, PISON-LOCSIN KAUTURAN, NICOLAS POLINARIO, PUYAS AGRO, INC., ESTATE OF LEONOR DE LA RAMA, LUIS RAMA, RAMON DE LA RAMA AGRO DEVELOPMENT CORP., REMO RAMOS, BENJAMIN RAMOS, MARIANO RAMOS, SPOUSES ENRIQUE AND TERESITA REGALADO, SPS. JOSE MA. AND AMELIA REGALADO, MANUEL REGALADO, AQUILINO REONIR, RHE & SONS AGRO INDUSTRIAL CORP., ROAM AGRICULTURAL CORP., AMANDO ROBILLO, ROMALUX AGRI FARMS, INC., LETECIA DEL ROSARIO, MANUEL DEL ROSARIO, EULALIA ROSELLO, ROSENDO H. DE LA RAMA & CO., BIBIANO SABINO, SPOUSES REINHARDT AND CORAZON SAGEMULLER, PEDRO SAJO, SPOUSES AQUILES AND MA. CRISTINA SAJO, SAN ANTONIO FARMS, JOSE MA. SANTOS, MARCELINO SAUSI, STA. CLARA ESTATE, INC., SPOUSES FRANCISCO AND JULITA SERRIOS, ANTONIO SIAN, SIASON- DITCHING AGRO INDUSTRIAL CORP., SPOUSES LUCRECIO SORIANO AND LIBERATA DALIMO- OS, IMELDA TAMPINCO, T. GENSOLI & CO., TINIHABAN AGRICULTURAL CORP., SPOUSES LINO AND THELMA TOLEDO, FRANCISCO TORIANO, GODOFREDO TORIANO, LUCRECIO TORIANO, MOISES TORIANO, TOTA, INC., DEMOCRITO TRECHO, JESUSA TRECHO, PABIO TRECHO, RUFINO TRECHO, ESTATE OF FLORENTINO TREYES, ESTATE OF VICTOR TREYES, FERNANDO TREYES, LILIA TREYES, SOCORRO TUVILLA, FRANCIS TUVILLA, SPS. JOE MARIE AND VICTORIA TUVILLA, JOSE URBANOZO, JR., ESTATE OF ROSARIO VALENCIA, EDUARDO DE VENECIA, VICTORIAS MILLING, CO., INC., SPOUSES EDSEL AND RITA VILLACIN, JOSEFA VILLAERA, VILLALAYA AGRO DEVELOPMENT, SERAFIN VILLANUEVA, IRVING VILLASOR, DOMINICIANO VINARTA, ROSENDO AND CANDIDO VINARTA, BERNARD YBIERNAS, ESTRELLA YBIERNAS, SPOUSES CARLOS AND EDITH YLANAN, BENITO YOUNG, SPOUSES RENATO AND VICTORIA YULO, AND JESUS YUSAY, RESPONDENTS.

  • [G.R. No. 143591 : May 05, 2010] TEODORO C. BORLONGAN, JR., CORAZON M. BEJASA, ARTURO E.MANUEL, JR., ERIC L. LEE, P. SIERVO H. DIZON, BENJAMIN DE LEON, DELFIN C. GONZALES, JR., AND BEN YU LIM, JR., PETITIONERS, VS. MAGDALENO M. PEÑA AND HON. MANUEL Q. LIMSIACO, JR., AS JUDGE DESIGNATE OF THE MUNICIPAL TRIAL COURT IN CITIES, BAGO CITY, RESPONDENTS.

  • [G.R. No. 163267 : May 05, 2010] TEOFILO EVANGELISTA, PETITIONER, VS. THE PEOPLE OF THE PHILIPPINES, RESPONDENT.

  • [G.R. No. 172708 : May 05, 2010] PEOPLE OF THE PHILIPPINES, APPELLEE, VS. JOSEPH AMPER Y REPASO, APPELLANT.

  • [G.R. No. 178087 : May 05, 2010] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. KUDOS METAL CORPORATION, RESPONDENT.

  • [G.R. No. 184800 : May 05, 2010] WONINA M. BONIFACIO, JOCELYN UPANO, VICENTE ORTUOSTE AND JOVENCIO PERECHE, SR., PETITIONERS,VS. REGIONAL TRIAL COURT OF MAKATI, BRANCH 149, AND JESSIE JOHN P. GIMENEZ, RESPONDENTS.

  • [G.R. No. 181847 : May 05, 2010] PUBLIC ESTATES AUTHORITY NOW PHILIPPINE RECLAMATION AUTHORITY, PETITIONER,VS. ESTATE OF JESUS S. YUJUICO, REPRESENTED BY BENEDICTO V. YUJUICO AND EDILBERTO V. YUJUICO; AND AUGUSTO Y. CARPIO, RESPONDENTS.

  • [G.R. No. 187556 : May 05, 2010] PLANTERS DEVELOPMENT BANK, PETITIONER, VS. JAMES NG AND ANTHONY NG, RESPONDENTS.

  • [G.R. No. 187200 : May 05, 2010] GOLDEN ACE BUILDERS AND ARNOLD U. AZUL, PETITIONERS,VS. JOSE A. TALDE, RESPONDENT.

  • [G.R. No. 148892 : May 06, 2010] LAND BANK OF THE PHILIPPINES, PETITIONER, VS. LUZ L. RODRIGUEZ, RESPONDENT.

  • [A.M. No. 09-9-163-MTC : May 06, 2010] RE: CASES SUBMITTED FOR DECISION BEFORE HON. TERESITO A. ANDOY, FORMER JUDGE, MUNICIPAL TRIAL COURT, CAINTA, RIZAL.

  • [G.R. No. 170515 : May 06, 2010] MARMOSY TRADING, INC. AND VICTOR MORALES, PETITIONERS, VS. COURT OF APPEALS, NATIONAL LABOR RELATIONS COMMISSION, HON. LABOR ARBITER ELIAS H. SALINAS AND JOSELITO HUBILLA, RESPONDENTS.

  • [G.R. Nos. 180772 and 180776 : May 06, 2010] LAND BANK OF THE PHILIPPINES [LBP], PETITIONER, VS. DOMINGO AND MAMERTO SORIANO, RESPONDENTS.

  • [G.R. No. 179038 : May 06, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. JOSEPH SERRANO AND ANTHONY SERRANO,ACCUSED-APPELLANTS.

  • [G.R. No. 186134 : May 06, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. JOEL ROA Y VILLALUZ, ACCUSED-APPELLANT.

  • [G.R. No. 189402 : May 06, 2010] LIGAYA SANTOS AND ROBERT BUNDA, PETITIONERS, VS. DOMINGO I. ORDA, JR., RESPONDENT.

  • [G.R. No. 189602 : May 06, 2010] HEIRS OF ALFREDO ZABALA, REPRESENTED BY MENEGILDA ZABALA, ROLANDO ZABALA, MANUEL ZABALA, MARILYN ZABALA, AND ADELINA ZABALA, PETITIONERS, VS. HON. COURT OF APPEALS, VICENTE T. MANUEL AND/OR HEIRS OF VICENTE T. MANUEL, RESPONDENTS.

  • [G.R. No. 191771 : May 06, 2010] LIBERAL PARTY, REPRESENTED BY ITS PRESIDENT MANUEL A. ROXAS II AND SECRETARY GENERAL JOSEPH EMILIO A. ABAYA, PETITIONER, VS. COMMISSION ON ELECTIONS, NACIONALISTA PARTY, REPRESENTED BY ITS PRESIDENT MANUEL B. VILLAR AND NATIONALIST PEOPLE'S COALITION, ALLEGEDLY REPRESENTED BY ITS CHAIRMAN FAUSTINO S. DY, JR., RESPONDENTS.

  • [G.R. No. 191846 : May 06, 2010] TEOFISTO GUINGONA, JR., BISHOP LEO A. SORIANO, FE MARIA ARRIOLA, ISAGANI R. SERRANO, AND ENGR. RODOLFO LOZADA, CORONA, VS. COMMISSION ON ELECTIONS, RESPONDENT.

  • [G.R. No. 160718 : May 12, 2010] ANUNCIO C. BUSTILLO, EMILIO SUMILHIG, JR., AND AGUSTIN BILLEDO, JR., PETITIONERS, VS. PEOPLE OF THE PHILIPPINES, RESPONDENT.

  • [G.R. No. 170956 : May 12, 2010] FELISA R. FERRER, PETITIONER, DOMINGO CARGANILLO, SERGIO CARGANILLO, SOLEDAD AGUSTIN AND MARCELINA SOLIS, RESPONDENTS.

  • [G.R. No. 180050 : May 12, 2010] RODOLFO G. NAVARRO, VICTOR F. BERNAL, AND RENE O. MEDINA, PETITIONERS, VS. EXECUTIVE SECRETARY EDUARDO ERMITA, REPRESENTING THE PRESIDENT OF THE PHILIPPINES; SENATE OF THE PHILIPPINES, REPRESENTED BY THE SENATE PRESIDENT; HOUSE OF REPRESENTATIVES, REPRESENTED BY THE HOUSE SPEAKER; GOVERNOR ROBERT ACE S. BARBERS, REPRESENTING THE MOTHER PROVINCE OF SURIGAO DEL NORTE; GOVERNOR GERALDINE ECLEO VILLAROMAN, REPRESENTING THE NEW PROVINCE OF DINAGAT ISLANDS, RESPONDENTS.

  • [G.R. No. 178202 : May 14, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. NORMAN SITCO AND RAYMUNDO BAGTAS (DECEASED), ACCUSED-APPELLANTS.

  •  





     
     

    [G.R. No. 187200 : May 05, 2010]   GOLDEN ACE BUILDERS AND ARNOLD U. AZUL, PETITIONERS,VS. JOSE A. TALDE, RESPONDENT.

     
    FIRST DIVISION

    [G.R. No. 187200 : May 05, 2010]

    GOLDEN ACE BUILDERS AND ARNOLD U. AZUL, PETITIONERS,VS. JOSE A. TALDE, RESPONDENT.

    D E C I S I O N


    CARPIO MORALES, J.:

    Jose A. Talde (respondent) was hired in 1990 as a carpenter by petitioner Golden Ace Builders of which its co-petitioner Arnold Azul (Azul) is the owner-manager. In February 1999, Azul, alleging the unavailability of construction projects, stopped giving work assignments to respondent, prompting the latter to file a complaint[1] for illegal dismissal.

    By Decision[2] of January 10, 2001, the Labor Arbiter ruled in favor of respondent and ordered his immediate reinstatement without loss of seniority rights and other privileges, and with payment of full backwages, which at that time was computed at P144,382.23, and the amount of P3,236.37 representing premium pay for rest days, service incentive leave pay and 13th month pay.

    Pending their appeal to the National Labor Relations Commission (NLRC) and in compliance with the Labor Arbiter's Decision, petitioners, through counsel, advised respondent to report for work in the construction site within 10 days from receipt thereof. Respondent submitted, however, on May 16, 2001 a manifestation[3] to the Labor Arbiter that actual animosities existed between him and petitioners and there had been threats to his life and his family's safety, hence, he opted for the payment of separation pay. Petitioners denied the existence of any such animosity.

    Meanwhile, the NLRC dismissed petitioners' appeal by Resolution[4] of April 22, 2002, holding that respondent was a regular employee and not a project employee, and that there was no valid ground for the termination of his services. Petitioners' motion for reconsideration was denied by Resolution[5] of August 6, 2002.

    Petitioners' appeal to the Court of Appeals was dismissed by Decision[6] of August 12, 2004 which attained finality on September 15, 2004.

    As an agreement could not be forged by the parties on the satisfaction of the judgment, the matter was referred to the Fiscal Examiner of the NLRC who recomputed at P562,804.69 the amount due respondent, which was approved by the Labor Arbiter by Order[7] of July 5, 2005. A writ of execution[8] dated July 8, 2005 was thereupon issued.

    Finding the amount exorbitant, petitioners filed a motion for reconsideration with the NLRC, contending that since respondent refused to report back to work, he should be considered to have abandoned the same, hence, the recomputation of the wages and benefits due him should not be beyond May 15, 2001, the date when he manifested his refusal to be reinstated.

    By Resolution[9] of March 9, 2006, the NLRC granted petitioners' motion and accordingly vacated the computation. It held that since respondent did not appeal the Decision of the Labor Arbiter granting him only reinstatement and backwages, not separation pay in lieu thereof, he may not be afforded affirmative relief; and since he refused to go back to work, he may recover backwages only up to May 20, 2001, the day he was supposed to return to the job site. Respondent's motion for reconsideration was denied by the NLRC by Resolution[10] of June 30, 2006, hence, he filed a petition for certiorari with the Court of Appeals.

    By Decision[11] of September 10, 2008, the appellate court set aside the NLRC Resolutions, holding that respondent is entitled to both backwages and separation pay, even if separation pay was not granted by the Labor Arbiter, the latter in view of the strained relations between the parties. The appellate court disposed:

    WHEREFORE, in view of all the foregoing premises, judgment is hereby rendered by us GRANTING the petition filed in this case. The assailed RESOLUTIONS dated 30, 2006 and March 9, 2006 of the NLRC are hereby SET ASIDE.

    Thus, the full backwages and separation pay to be awarded to the petitioner shall be computed as follows:

    Full Backwages as of June 30, 2005 = P562,804.69
    Separation Pay:
    P220.00 x 26 days = P5,720,00
    P5,720/month x 8 years = 45,760.00

    P608,564.69


    We also award an additional 10% of the total monetary award by way of attorney's fees for the expenses incurred by the petitioner to protect his rights and interests. Furthermore, when the decision of this Court as to the monetary award becomes final and executory, the rate of legal interest shall be imposed at 12% per annum from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to a forbearance of credit.

    SO ORDERED. (emphasis in the original)

    Petitioners' motion for reconsideration was denied by Resolution[12] of March 12, 2009, hence, the present petition for review on certiorari.

    Petitioners assail the appellate court's award of separation pay. They assailed too as contrary to prevailing jurisprudence the computation of backwages from the time of dismissal up to actual reinstatement. They contend that, in effect, the appellate court modified an already final and executory decision.

    The petition fails.

    The basis for the payment of backwages is different from that for the award of separation pay. Separation pay is granted where reinstatement is no longer advisable because of strained relations between the employee and the employer. Backwages represent compensation that should have been earned but were not collected because of the unjust dismissal. The basis for computing backwages is usually the length of the employee's service while that for separation pay is the actual period when the employee was unlawfully prevented from working.[13]

    As to how both awards should be computed, Macasero v. Southern Industrial Gases Philippines[14] instructs:

    [T]he award of separation pay is inconsistent with a finding that there was no illegal dismissal, for under Article 279 of the Labor Code and as held in a catena of cases, an employee who is dismissed without just cause and without due process is entitled to backwages and reinstatement or payment of separation pay in lieu thereof:

    Thus, an illegally dismissed employee is entitled to two reliefs: backwages and reinstatement. The two reliefs provided are separate and distinct.In instances where reinstatement is no longer feasible because of strained relations between the employee and the employer, separation pay is granted. In effect, an illegally dismissed employee is entitled to either reinstatement, if viable, or separation pay if reinstatement is no longer viable, and backwages.

    The normal consequences of respondents' illegal dismissal, then, are reinstatement without loss of seniority rights, and payment of backwages computed from the time compensation was withheld up to the date of actual reinstatement. Where reinstatement is no longer viable as an option, separation pay equivalent to one (1) month salary for every year of service should be awarded as an alternative. The payment of separation pay is in addition to payment of backwages. (emphasis, italics and underscoring supplied)

    Velasco v. National Labor Relations Commission emphasizes:

    The accepted doctrine is that separation pay may avail in lieu of reinstatement if reinstatement is no longer practical or in the best interest of the parties. Separation pay in lieu of reinstatement may likewise be awarded if the employee decides not to be reinstated. (emphasis in the original; italics supplied)

    Under the doctrine of strained relations, the payment of separation pay is considered an acceptable alternative to reinstatement when the latter option is no longer desirable or viable. On one hand, such payment liberates the employee from what could be a highly oppressive work environment. On the other hand, it releases the employer from the grossly unpalatable obligation of maintaining in its employ a worker it could no longer trust.[15]

    Strained relations must be demonstrated as a fact, however, to be adequately supported by evidence[16] — substantial evidence to show that the relationship between the employer and the employee is indeed strained as a necessary consequence of the judicial controversy.[17]

    In the present case, the Labor Arbiter found that actual animosity existed between petitioner Azul and respondent as a result of the filing of the illegal dismissal case. Such finding, especially when affirmed by the appellate court as in the case at bar, is binding upon the Court, consistent with the prevailing rules that this Court will not try facts anew and that findings of facts of quasi-judicial bodies are accorded great respect, even finality.

    Clearly then, respondent is entitled to backwages and separation pay as his reinstatement has been rendered impossible due to strained relations. As correctly held by the appellate court, the backwages due respondent must be computed from the time he was unjustly dismissed until his actual reinstatement, or from February 1999 until June 30, 2005 when his reinstatement was rendered impossible without fault on his part.

    The Court, however, does not find the appellate court's computation of separation pay in order. The appellate court considered respondent to have served petitioner company for only eight years. Petitioner was hired in 1990, however, and he must be considered to have been in the service not only until 1999, when he was unjustly dismissed, but until June 30, 2005, the day he is deemed to have been actually separated (his reinstatement having been rendered impossible) from petitioner company or for a total of 15 years.

    WHEREFORE, the Court of Appeals Decision dated September 10, 2008 and its Resolution dated March 12, 2009 in C.A. G.R. SP No. 961082 are AFFIRMED with the MODIFICATION that the amount of separation pay due respondent is, in light of the discussion in the immediately foregoing paragraph, computed at P85,800.00.

    SO ORDERED.

    Puno, (Chairperson), Leonardo-De Castro, Bersamin, and Villarama, Jr., JJ., concur.

    Endnotes:


    [1] Annex "C" of Petition; rollo, p. 87.

    [2] Annex "D" of Petition, id. at 88-100. Penned by Labor Arbiter Joselito Villarosa.

    [3] Annex "G" of Petition, id. at 109.

    [4] Annex "I" of Petition, id. at 115-120. Penned by Commissioner (now Associate Justice of the Court of Appeals) Angelita A. Gacutan and concurred in by Presiding Commissioner Raul T. Aquino and Commissioner Victoriano R. Calaycay.

    [5] Annex "K" of Petition, id. at 139-1140. Penned by Commissioner (now Associate Justice of the Court of Appeals) Angelita A. Gacutan and concurred in by Presiding Commissioner Raul T. Aquino and Commissioner Victoriano R. Calaycay.

    [6] Annex "L" of Petition, id. at 142-149. Penned by Associate Justice Fernanda Lampas-Peralta and concurred in by Associate Justices Conrado M. Vasquez and Josefina Guevara-Salonga.

    [7] Annex "M" of Petition, id. at. 150-151. Penned by Labor Arbiter Cresencio G. Ramos.

    [8] Annex "N" of Petition, id. at 152-154. Penned by Labor Arbiter Cresencio G. Ramos.

    [9] Annex "P" of Petition, id. at 163-170. Penned by Commissioner (now Associate Justice of the Court of Appeals) Angelita A. Gacutan and concurred in by Presiding Commissioner Raul T. Aquino and Commissioner Victoriano R. Calaycay.

    [10] Annex "R" of Petition, id. at 182-183. Penned by Commissioner (now Associate Justice of the Court of Appeals) Angelita A. Gacutan and concurred in by Presiding Commissioner Raul T. Aquino and Commissioner Victoriano R. Calaycay.

    [11] Id. at 70-81. Penned by Associate Justice Isaias P. Dicdican and concurred in by Associate Justices Juan Q. Enriquez, Jr. and Marlene Gonzales-Sison.

    [12] Id. at. 82-86. Penned by Associate Justice Pampio A. Abarintos and concurred in by Associate Justices Amelita T. Tolentino and Myrna Dimaranan-Vidal.

    [13] Equitable v. Sadac, G.R. No. 164772, June 8, 2006, 490 SCRA 380.

    [14] G.R. No. 178524, January 30, 2009.

    [15] Coca Cola v. Daniel, G.R. No. 156893, June 21, 2005, 460 SCRA 494.

    [16] Paguio Transport Corporation v. National Labor Relations Commission, 356 Phil. 158, 171 (1998).

    [17] Coca-Cola v. Daniel, supra.

    [G.R. No. 187200 : May 05, 2010]   GOLDEN ACE BUILDERS AND ARNOLD U. AZUL, PETITIONERS,VS. JOSE A. TALDE, RESPONDENT.


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