MARANAW HOTELS AND RESORTS CORPORATION (CENTURY PARK SHERATON MANILA), vs. COURT OF APPEALS, HON. SANTIAGO O. TAÑADA (Voluntary Arbitrator) and GREGORIO GALE.
- G.R. Number: G.R. No. 103215
- Promulgated: 1992-11-06
- Ponente: Bellosillo, J.
Doctrine
Where an illegal dismissal transpired before the effectivity of R.A. 6715 (21 March 1989), the award of backwages is generally limited to three years inclusive of allowances and benefits.
In assessing damages for illegal dismissal, courts should consider mitigation by determining whether the dismissed employee, exercising due diligence, obtained or could have obtained income from suitable employment.
Facts
Private respondent Gregorio Gale, a roomboy at petitioner Century Park Sheraton Manila (owned/operated by petitioner Maranaw Hotels and Resorts Corporation), blurted offensive remarks about his supervisors in their absence and promptly reported to them, for which he was dismissed for gross misconduct (discourtesy and disrespectful language toward a superior).
Gregorio Gale filed a complaint for illegal dismissal which, pursuant to the parties' collective bargaining agreement, was submitted to retired Judge Santiago O. Tañada for voluntary arbitration.
The Court considered mitigation of damages, including whether the dismissed employee, with due diligence, might have obtained income from suitable remunerative employment.
Because the illegal dismissal occurred on 4 December 1987, before R.A. 6715 took effect on 21 March 1989, the award of backwages in his favor is limited to three years inclusive of allowances and benefits, without deduction for remunerations from other employment.
Issues
Whether petitioner unlawfully dismissed private respondent for his offensive remarks.
Whether backwages should be awarded in full from dismissal to present or limited to three years under the law applicable at the time of dismissal.
Whether the damages awarded to the dismissed employee should be mitigated by income he might have obtained with due diligence.
Ruling
The Court affirmed the Decision of 24 October 1991 and Resolution of 4 December 1991 of the Court of Appeals, except as modified, and ordered no costs.
Because the illegal dismissal occurred on 4 December 1987 (before R.A. 6715's effectivity), private respondent is entitled only to three years' backwages inclusive of allowances and benefits, without deduction for remunerations from other employment.
In mitigation of damages, the Court noted that account should be taken whether the dismissed employee, exercising due diligence, might have obtained income from suitable remunerative employment.
Keywords
G.R. No. 103215, illegal dismissal, voluntary arbitration, collective bargaining agreement, gross misconduct, discourtesy, disrespectful and impolite language, grave abuse of discretion, certiorari, final and unappealable decisions, due process, denial of substantial justice, erroneous interpretation of the law, penalty of dismissal, Almira v. B.F. Goodrich Philippines, Inc., Foodmine, Incorporated v. NLRC, Rubberworld (Phil.), Inc. v. NLRC, PT&T v. NLRC, doctrine of strained relations, Globe-Mackay Cable and Radio Corporation v. NLRC