PINE CITY EDUCATIONAL CENTER and EUGENIO BALTAO, vs. THE NATIONAL LABOR RELATIONS COMMISSION (THIRD DIVISION) and DANGWA BENTREZ, ROLAND PICART, APOLLO RIBAYA, SR., RUPERTA RIBAYA, VIRGINIA BOADO, CECILIA EMOCLING, JANE BENTREZ, LEILA DOMINGUEZ, ROSE ANN BERMUDEZ and LUCIA CHAN.
- G.R. Number: G.R. No. 96779
- Promulgated: 1993-11-10
- Ponente: Nocon, J.
Doctrine
Article 280 should be read to prevent agreements made to circumvent security of tenure, and does not apply to fixed-term employment knowingly agreed upon where not intended to deny tenure.
Where unjust dismissal occurs after the effectivity of Rep. Act No. 6715, backwages must be awarded from dismissal until actual reinstatement; the statute contains no provision authorizing deduction of income earned during that period (per separate opinion advocating no deduction).
Facts
Private respondents (employees) were dismissed; Labor Arbiter ruled for their reinstatement and backwages (case involves multiple named employees listed in the award).
The computation of backwages in the award initially covered the period up to 31 January 1990 (10 months) and did not include backwages from that date up to actual reinstatement.
The Court considered the meaning and scope of Article 280 of the Labor Code regarding regular employment and applicability of written/fixed-term agreements.
A separate opinion addresses whether backwages should be subject to deduction for income earned during the dismissal period, discussing Rep. Act No. 6715 and unjust enrichment.
Issues
Whether private respondents should be reinstated with full backwages and other benefits without qualification.
Whether backwages are to be computed only up to 31 January 1990 or extend until actual reinstatement, and whether deductions for income earned during dismissal are allowable.
Whether Article 280's prohibition on agreements contrary to regular employment applies to knowingly fixed-term contracts not intended to circumvent security of tenure.
Ruling
Respondents are ordered to reinstate the complainants immediately to their former positions and to pay their full backwages and other benefits and privileges without qualification and deduction from the time they were dismissed up to their actual reinstatement.
The NLRC resolution of 29 November 1990 is modified: Roland Picart and Lucia Chan are ordered reinstated without loss of seniority and to be paid full backwages inclusive of allowances, subject only to deduction of income earned elsewhere during the dismissal period (for them).
The initial computation in the award covered only up to 31 January 1990 (10 months) and did not include backwages thereafter; the Court's judgment extends backwages to actual reinstatement per the first ruling.
Keywords
G.R. No. 96779, petition for certiorari, National Labor Relations Commission (THIRD DIVISION), NLRC Case No. 01-04-0056-89, Labor Arbiter, illegal dismissal, probationary basis, contracts of employment for a fixed duration, due process, reinstatement, backwages, indemnity pay, premium pay for holidays and rest days, illegal deduction, 13th month pay, underpayment, Article 280 (of the Labor Code), temporary restraining order, prima facie evidence of grave abuse, months