Philippine Supreme Court Jurisprudence


Philippine Supreme Court Jurisprudence > Year 1996 > February 1996 Decisions > G.R. No. 118120 February 23, 1996 - JAIME SALONGA v. NATIONAL LABOR RELATIONS COMMISSION:




PHILIPPINE SUPREME COURT DECISIONS

THIRD DIVISION

[G.R. No. 118120. February 23, 1996.]

JAIME SALONGA, ET AL., Petitioners, v. NATIONAL LABOR RELATIONS COMMISSION, NEWFOUNDLAND PAPER PRODUCTS, INC. (now LUMINAIRE PRINTING & PUBLISHING CORP.), ET AL., Respondents.

Cabio Rabanes Law Offices for Petitioner.

The Solicitor General for public Respondent.

Escueta Tan Acut & Madrid for Private Respondent.


SYLLABUS


1. LABOR AND SOCIAL LEGISLATION; LABOR CODE; EMPLOYMENT; TERMINATION; HEAVY BUSINESS LOSSES, VALID GROUND; BURDEN IS ON EMPLOYER TO PROVE JUST CAUSE. — While Art. 283 of the Labor Code allows termination of employment due to heavy business losses, such business reverses must be adequately proven by the employer. Art. 277 of the same code states that" (t)he burden of proving that the termination was for a valid or authorized cause shall rest on the employer." This Court reiterated the same principle in a recent case of Golden Donuts, Inc. v. NLRC, February 21, 1991.

2. ID.; ID.; ID.; ID.; EXECUTION OF QUITCLAIMS, NOT SUFFICIENT TO SHOW VALID TERMINATION AND NOT A BAR TO CLAIMS FOR ILLEGAL DISMISSAL. — Contrary to private respondents’ contention, the quit-claims executed by the petitioners are not sufficient to show valid terminations. It is the employer’s duty to prove that such quitclaims were voluntary. The respondent NLRC’s ruling that it is the employees who must show evidence of fraud or trickery is misplaced. Indeed, quitclaims will not bar or estop laborers from pursuing claims for illegal dismissal.

3. ID.; ID.; LABOR DISPUTES; LABOR ARBITER; MAY DECIDE CASE ON PLEADINGS AND POSITION PAPERS; TRIAL, DISCRETIONARY. — The labor arbiter did not err in deciding the case on the basis of pleadings and position papers. The holding of a trial is discretionary on the labor arbiter and cannot be demanded as a matter of right by the parties. And unless such discretion is imprudently exercised (which is not the case here), this Court will not interfere with the arbiter’s decision to dispense with a hearing.


D E C I S I O N


PANGANIBAN, J.:


On January 20, 1993, petitioners filed with the labor arbiter their Complaint for illegal dismissal and non-payment of service incentive leave pay. For their part, private respondents countered merely with a Motion to Dismiss alleging that petitioners "have voluntarily executed quitclaims and were already paid their separation pay and all claims due them from the company." On February 16, 1993, petitioners filed an Amended Complaint/Position Paper with Joint Affidavit basically saying that they were inveigled by management to receive their separation pay and to sign quitclaims because the company was "losing heavily", only to reopen "in the same location . . . this time using entirely new employees . . ." To this, private respondents filed their opposition alleging that the amendment was "procedurally improper" because of the pendency of the unresolved motion to dismiss.

Although private respondents called for a trial on the merits, the labor arbiter dispensed with the necessity of a hearing but nevertheless ordered that the motion to dismiss would be treated as their position paper unless within ten (10) days from notice, said private respondents submitted one. Not having received any more pleadings from the parties, the labor arbiter decided the case on the basis of the aforementioned submissions.

In her decision dated January 7, 1994, Labor Arbiter Nieves V. de Castro found a case of illegal dismissal and awarded reinstatement, full backwages (minus separation pay already paid), service incentive leave benefits and 10.% attorney’s fees in favor of petitioners. On appeal, the NLRC Second Division — on a vote of 2-to 1 (Comm. Rogelio I. Rayala, ponente; concurred in by Comm. Domingo H. Zapanta; Presiding Comm. Edna Bonto-Perez, dissenting) reversed the labor arbiter and "remand(ed) (the) case to the Arbitration Branch of origin for further proceedings." The NLRC held that the labor arbiter erred in deciding the case on the basis of the pleadings and position papers only.

In their Comment filed on February 28, 1995, private respondents alleged that petitioners manifested willingness to accept separation pay after management informed them on January 4, 1993 that the company had decided to close down its operations. The company also advised the Social Security System and the Department of Labor and Employment of such decision. The private respondents further averred that thereafter, the company retained only four (4) employees "for purposes of winding-up", but that "sometime in May 1993, several investors decided to infuse capital to revive private respondent company." Finally, it supported public respondent NLRC’s Resolution that the case should be remanded for a "full-blown trial" .

In his "Manifestation and Motion In Lieu of Comment" filed on May 4, 1995, the Solicitor General sided with petitioners, arguing that a remand "would serve no useful purpose but would cause undue delay in the resolution of the case."cralaw virtua1aw library

Private respondents submitted their reply to the manifestation of the Solicitor General, while Public Respondent NLRC filed its comment thru its de parte counsel.

Acting on the above submissions of the parties, the Court Resolved to give due course to the petition and to deliberate upon and decide the case without requiring the parties to submit memoranda, as it noted that the issues are relatively simple.

We agree with the Solicitor General. While Art. 283 of the Labor Code allows termination of employment due to heavy business losses, such business reverses must be adequately proven by the employer. Art. 277 of the same code states that" (t)he burden of proving that the termination was for a valid or authorized cause shall rest on the employer." This Court reiterated the same principle in a recent case:jgc:chanrobles.com.ph

"The employer carries the burden of proof in showing just cause for terminating the services of an employee." 1

Contrary to private respondents’ contention, the quitclaims executed by the petitioners are not sufficient to show valid terminations. It is the employer’s duty to prove that such quitclaims were voluntary. The respondent NLRC’s ruling that it is the employees who must show evidence of fraud or trickery is misplaced. Indeed, quitclaims will not bar or estop laborers from pursuing claims for illegal dismissal. As held in Loadstar Shipping Co., Inc. v. Gallo 2 :jgc:chanrobles.com.ph

"Under prevailing jurisprudence, a deed of release or quitclaim cannot bar an employee from demanding benefits to which he is legally entitled (citing Fuentes v. NLRC, 167 SCRA 767 [November 24, 1988] Similarly, employees who received their separation pay are not barred from contesting the legality of their dismissal and . . . the acceptance of such benefits would not amount to estoppel (citing Mercury Drug Co., .Inc. v. Court of Industrial Relations, 56 SCRA 694 [April 30, 1974]; De Leon v. NLRC, 100 SCRA 691 [October 30, 1980])."cralaw virtua1aw library

The labor arbiter did not err in deciding the case on the basis of pleadings and position papers. The holding of a trial is discretionary on the labor arbiter and cannot be demanded as a matter of right by the parties.

"Due process requirements are satisfied where the parties are given the opportunity to submit position papers (see Odin Security Agency v. De la Serna, Et Al., G.R. No. 87439, February 21, 1990, 182 SCRA 472, 479). Besides, the National Labor Relations Commission and the Labor Arbiter have authority under the Labor Code to decide a case based on the position papers and documents submitted without resorting to the technical rules of evidence (Cagampan. Et. Al. v. NLRC, Et Al., (G.R. Nos. 85122-24, March 22, 1991, 195 SCRA 533, 539)." 3

And unless such discretion is imprudently exercised (which is not case here), this Court will not interfere with the arbiter’s decision to dispense with a hearing.

WHEREFORE, the assailed Resolution of the respondent NLRC is hereby SET ASIDE. The decision of the labor arbiter dated January 7, 1994 is REINSTATED and AFFIRMED.

SO ORDERED.

Narvasa, C.J., Davide, Jr., Melo and Francisco, JJ., concur.

Endnotes:



1. Golden Donuts, Incorporated v. NLRC, 230 SCRA 153, 162 (February 21, 1994) citing Samahang Manggagawa ng Rizal Park v. NLRC, 198 SCRA 480 (June 21, 1991); Offshore Industries, Inc. v. NLRC, 177 SCRA 50 (August 29, 1989); Hernandez v. NLRC, 176 SCRA 267 (August 10, 1989); Philippine Associated Smelting and Refining Corp. v. NLRC, 174 SCRA 550 (June 29, 1989).

2. 229 SCRA 654, 662 (February 4, 1994).

3. Lawrence v. National Labor Relations Commission, 205 SCRA 737, 750 (February 4, 1992). See also Pacific Timber Export Corp. v. NLRC, 224 SCRA 860, 862 (July 30, 1993); Commando Security Agency v. NLRC, 211 SCRA 645, 649 (July 20, 1992); Robusta Agro Marine Products, Inc. v. Gorombalem, 175 SCRA 93, 98. (July 5, 1989).




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






February-1996 Jurisprudence                 

  • Adm. Case No. 3825 February 1, 1996 - REYNALDO HALIMAO v. DANIEL VILLANUEVA, ET AL.

  • G.R. No. 79688 February 1, 1996 - PLEASANTVILLE DEVELOPMENT CORPORATION v. COURT OF APPEALS

  • G.R. Nos. 85248-49 February 1, 1996 - PEOPLE OF THE PHIL. v. SGT. JERRY BALANON

  • G.R. No. 88345 February 1, 1996 - FIRST PHILIPPINE HOLDINGS CORPORATION v. SANDIGANBAYAN, ET AL.

  • G.R. No. 90856 February 1, 1996 - ARTURO DE GUZMAN v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. Nos. 100453-54 February 1, 1996 - PEOPLE OF THE PHIL. v. VIRGILIO BATULAN, ET AL.

  • G.R. No. 103635 February 1, 1996 - CATALINA BUAN VDA. DE ESCONDE v. COURT OF APPEALS, ET AL.

  • G.R. No. 107493 February 1, 1996 - NATIVIDAD CANDIDO v. COURT OF APPEALS, ET AL.

  • G.R. No. 107735 February 1, 1996 - PEOPLE OF THE PHIL. v. RICARDO O. SAN GABRIEL

  • G.R. No. 111836 February 1, 1996 - KAPATIRAN NG MGA ANAK PAWIS SA FORMEY v. SECRETARY OF LABOR, ET AL.

  • G.R. No. 112830 February 1, 1996 - JERRY ONG v. COURT OF APPEALS, ET AL.

  • G.R. No. 113166 February 1, 1996 - ISMAEL SAMSON v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 113357 February 1, 1996 - BENJAMIN PAREDES v. COURT OF APPEALS

  • G.R. No. 113928 February 1, 1996 - PEARSON & GEORGE, (S.E. ASIA), INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 116058 February 1, 1996 - PEOPLE OF THE PHIL. v. ROLAND DANAO

  • G.R. No. 116311 February 1, 1996 - PEOPLE OF THE PHIL. v. IMELDA P. VILLANUEVA

  • G.R. No. 116662 February 1, 1996 - ANGELITO PAGUIO, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 84680 February 5, 1996 - SUMMA INSURANCE CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 107653 February 5, 1996 - FELIPA GARBIN v. COURT OF APPEALS, ET AL.

  • G.R. No. 115004 February 5, 1996 - PEOPLE OF THE PHIL. v. ANAGARIO Y. SUBIDO

  • G.R. Nos. 115786-87 February 5, 1996 - PHILIPPINE PORTS AUTHORITY, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118552 February 5, 1996 - PHILIPPINE BANK OF COMMUNICATIONS v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. P-96-1178 February 6, 1996 - ANICETO A. LIRIOS v. SALVADOR P. OLIVEROS

  • G.R. No. 107109 February 6, 1996 - PHILIPPINE NATIONAL BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 112176 February 6, 1996 - PEOPLE OF THE PHIL. v. SANTOS CAÑADA

  • G.R. No. 105688 February 7, 1996 - PEOPLE OF THE PHIL. v. CAYETANO OBAR, JR.

  • G.R. Nos. 115024 & 117944 February 7, 1996 - MA. LOURDES VALENZUELA v. COURT OF APPEALS

  • Adm. Matter No. CA-94-7-P February 8, 1996 - CLEMENTE SY v. JAIME B. YERRO

  • G.R. No. 113029 February 8, 1996 - PEOPLE OF THE PHIL. v. APOLONIO V. MELIVO

  • Adm. Matter No. MTJ-94-998 February 9, 1996 - SEGUNDO B. PAZ v. ANTONIO V. TIONG

  • Adm. Matter No. MTJ-95-1063 February 9, 1996 - ALFONSO C. CHOA v. ROBERTO S. CHIONGSON

  • G.R. No. 102833 February 9, 1996 - LOLITA AMIGO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 105944 February 9, 1996 - ROMULO AND SALLY EDUARTE v. COURT OF APPEALS, ET AL.

  • G.R. No. 109717 February 9, 1996 - WESTERN SHIPPING AGENCY v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 109946 February 9, 1996 - DEVELOPMENT BANK OF THE PHILIPPINES v. COURT OF APPEALS

  • G.R. Nos. 111277-78 February 9, 1996 - PEOPLE OF THE PHIL. v. CLEMENTE QUINDIPAN, ET AL.

  • G.R. No. 111692 February 9, 1996 - ALEJANDRO FUENTES v. COURT OF APPEALS, ET AL.

  • G.R. No. 113162 February 9, 1996 - LT. DATU AND CO., INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 113345 February 9, 1996 - PEOPLE OF THE PHIL. v. LEONARDO G. GAGTO

  • G.R. Nos. 115121-25 February 9, 1996 - NATIONAL FOOD AUTHORITY, ET AL. v. COURT OF APPEALS

  • G.R. No. 116100 February 9, 1996 - CRISTINO CUSTODIO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 116419 February 9, 1996 - MAURICE C. FLORES v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 116945 February 9, 1996 - ROMULO DELA ROSA v. COURT OF APPEALS, ET AL.

  • G.R. No. 117209 February 9, 1996 - REPUBLIC OF THE PHIL. v. JOSE R. HERNANDEZ, ET AL.

  • G.R. No. 117499 February 9, 1996 - VICTOR WARLITO V. YBANEZ, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 117680 February 9, 1996 - FIRST LEPANTO CERAMICS v. COURT OF APPEALS, ET AL.

  • P.E.T. Case No. 001 February 13, 1996 - MIRIAM DEFENSOR-SANTIAGO v. FIDEL VALDEZ RAMOS

  • Adm. Matter No. RTJ-94-1209 February 13, 1994

    REYMUALDO BUZON v. TIRSO D.C. VELASCO

  • G.R. No. 113597 February 13, 1996 - HEIDI M. GESLANI v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 112069 February 14, 1996 - INDUSTRIAL TIMBER CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 114726 February 14, 1996 - ARTURO SANTOS, ET AL. v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. P-96-1180 February 16, 1996 - BENJAMIN B. BERNARDINO v. ARMANDO B. IGNACIO

  • Adm. Matter No. P-94-1025 February 20, 1996 - MIGUELA VDA. DE TISADO v. PROSPERO V. TABLIZO, ET AL.

  • G.R. No. 101809 February 20, 1996 - PEOPLE OF THE PHIL. v. ROGER LARAY, ET AL.

  • G.R. No. 104392 February 20, 1996 - RUBEN MANIAGO v. COURT OF APPEALS

  • G.R. No. 104630 February 20, 1996 - PEOPLE OF THE PHIL. v. ALEJANDRO A. OCSIMAR

  • G.R. No. 107383 February 20, 1996 - CECILIA ZULUETA v. COURT OF APPEALS, ET AL.

  • G.R. No. 109957 February 20, 1996 - ANTONIO NAVALE, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 110898 February 20, 1996 - PEOPLE OF THE PHIL. v. ANTONIO C. EVANGELISTA

  • G.R. Nos. 111563-64 February 20, 1996 - PEOPLE OF THE PHIL. v. ALBINO S. GALIMBA

  • G.R. No. 111708 February 20, 1996 - PEOPLE OF THE PHIL. v. FLORENCIO DEL PRADO

  • G.R. No. 111732 February 20, 1996 - NEW DURAWOOD CO. v. COURT OF APPEALS

  • G.R. No. 114936 February 20, 1996 - PEOPLE OF THE PHIL. v. ROMY ANDRES

  • G.R. No. 115690 February 20, 1996 - PEOPLE OF THE PHIL. v. REY SALISON

  • G.R. Nos. 116259-60 February 20, 1996 - SALVADOR P. SOCRATES v. SANDIGANBAYAN, ET AL.

  • G.R. No. 117195 February 20, 1996 - DANNY T. RASONABLE v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 113483 February 22, 1996 - PEOPLE OF THE PHIL. v. CARMELO G. FAIGANO

  • G.R. No. 95845 February 21, 1996 - WILLIAM L. TIU v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 113791 February 22, 1996 - PEOPLE OF THE PHIL. v. ROLANDO MENDOZA

  • G.R. No. 115233 February 22, 1996 - PEOPLE OF THE PHIL. v. WILSON GUTUAL, ET AL.

  • G.R. No. 116025 February 22, 1996 - SUNSHINE TRANSPORTATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 119454 February 22, 1996 - BPI DATA SYSTEMS CORPORATION v. COURT OF APPEALS

  • G.R. No. 104461 February 23, 1996 - PEOPLE OF THE PHIL. v. ROMEO R. MENDOZA

  • G.R. Nos. 115035-36 February 23, 1996 - PEOPLE OF THE PHIL. v. PERCIVAL O. GECOMO

  • G.R. No. 118120 February 23, 1996 - JAIME SALONGA v. NATIONAL LABOR RELATIONS COMMISSION

  • G.R. No. 107631 February 26, 1996 - NATIONAL POWER CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 112877 February 26, 1996 - SANDIGAN SAVINGS and LOAN BANK, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 116727 February 27, 1996 - PEOPLE OF THE PHIL. v. FELIX ESQUILA

  • Adm. Matter No. P-94-1043 February 28, 1996 - ARTURO Q. BAUTISTA v. MARGARITO C. COSTELO

  • Adm. Matter No. RTJ-93-964 February 28, 1996 - LEOVIGILDO U. MANTARING v. MANUEL A. ROMAN, ET AL.

  • Adm. Matter No. 95-95-RTJ February 28, 1996 - NICOLAS L. LOPEZ v. REYNALDO M. ALON

  • G.R. No. 102784 February 28, 1996 - ROSA LIM v. COURT OF APPEALS, ET AL.

  • G.R. No. 108855 February 28, 1996 - METROLAB INDUSTRIES v. MA. NIEVES ROLDAN-CONFESOR, ET AL.

  • G.R. Nos. 112164-65 February 28, 1996 - PEOPLE OF THE PHIL. v. SOLOMON O. VILLANUEVA