Labor Law Cases 12
Labor Law Cases 12
Labor Law Cases 12
PALAD
SECOND DIVISION
DECISION
CARPIO, J.:
The Case
This is a petition for review1 of the Decision2 dated 12 November 2001 and the
Resolution dated 5 April 2002 of the Court of Appeals in CA-G.R. SP No. 60379.
The Facts
Palad then filed a complaint for illegal dismissal, underpayment of wages, and
non-payment of pro-rated 13th month pay for the year 1997.
On 25 February 1999, the Labor Arbiter dismissed the complaint for lack of merit
but ordered petitioner to pay Palad her last salary and her pro-rated 13th month
pay. The dispositive portion of the Labor Arbiter’s decision reads:
SO ORDERED.6
SO ORDERED.7
Upon denial of Palad’s motion for reconsideration, Palad filed a special civil action
for certiorari with the Court of Appeals. On 12 November 2001, the Court of
Appeals rendered a decision, the dispositive portion of which reads:
SO ORDERED.8
The Court of Appeals also held that petitioner illegally dismissed Palad. The Court
of Appeals ruled that petitioner failed to show that Palad was properly apprised of
the required standard of performance. The Court of Appeals likewise held that
Palad was not afforded due process because petitioner did not comply with the
twin requirements of notice and hearing.
The Issues
Based on the evidence before us, petitioner did not comply with the requirements
of the law. It is mandated that apprenticeship agreements entered into by the
employer and apprentice shall be entered only in accordance with the
apprenticeship program duly approved by the Minister of Labor and
Employment.
The act of filing the proposed apprenticeship program with the Department of
Labor and Employment is a preliminary step towards its final approval and does
not instantaneously give rise to an employer-apprentice relationship.
Article 57 of the Labor Code provides that the State aims to "establish a national
apprenticeship program through the participation of employers, workers and
government and non-government agencies" and "to establish apprenticeship
standards for the protection of apprentices." To translate such objectives into
existence, prior approval of the DOLE to any apprenticeship program has to be
secured as a condition sine qua non before any such apprenticeship agreement
can be fully enforced. The role of the DOLE in apprenticeship programs and
agreements cannot be debased.
Republic Act No. 779615 (RA 7796), which created the TESDA, has transferred
the authority over apprenticeship programs from the Bureau of Local Employment
of the DOLE to the TESDA.16 RA 7796 emphasizes TESDA’s approval of the
apprenticeship program as a pre-requisite for the hiring of apprentices. Such
intent is clear under Section 4 of RA 7796:
xxx
In this case, the apprenticeship agreement was entered into between the parties
before petitioner filed its apprenticeship program with the TESDA for approval.
Petitioner and Palad executed the apprenticeship agreement on 17 July 1997
wherein it was stated that the training would start on 17 July 1997 and would end
approximately in December 1997.17 On 25 July 1997, petitioner submitted for
approval its apprenticeship program, which the TESDA subsequently approved on
26 September 1997.18 Clearly, the apprenticeship agreement was enforced even
before the TESDA approved petitioner’s apprenticeship program. Thus, the
apprenticeship agreement is void because it lacked prior approval from the
TESDA.
The requisite TESDA approval of the apprenticeship program prior to the hiring of
apprentices was further emphasized by the DOLE with the issuance of
Department Order No. 68-04 on 18 August 2004. Department Order No. 68-04,
which provides the guidelines in the implementation of the Apprenticeship and
Employment Program of the government, specifically states that no enterprise
shall be allowed to hire apprentices unless its apprenticeship program is
registered and approved by TESDA.20
Under Article 27922 of the Labor Code, an employer may terminate the services of
an employee for just causes23 or for authorized causes.24 Furthermore, under
Article 277(b)25 of the Labor Code, the employer must send the employee who is
about to be terminated, a written notice stating the causes for termination and
must give the employee the opportunity to be heard and to defend himself. Thus,
to constitute valid dismissal from employment, two requisites must concur: (1) the
dismissal must be for a just or authorized cause; and (2) the employee must be
afforded an opportunity to be heard and to defend himself.26
In this case, the Labor Arbiter held that petitioner terminated Palad for habitual
absenteeism and poor efficiency of performance. Under Section 25, Rule VI, Book
II of the Implementing Rules of the Labor Code, habitual absenteeism and poor
efficiency of performance are among the valid causes for which the employer may
terminate the apprenticeship agreement after the probationary period.
However, the NLRC reversed the finding of the Labor Arbiter on the issue of the
legality of Palad’s termination:
The only conclusion We can infer is that this evaluation was made belatedly,
specifically, after the filing of the case and during the progress thereof in
the Arbitral level, as shown that nothing thereon indicate that complainant
was notified of the results. Its authenticity therefor, is a big question mark,
and hence lacks any credibility. Evidence, to be admissible in administrative
proceedings, must at least have a modicum of authenticity. This, respondents
failed to comply with. As such, complainant is entitled to the payment of her
wages for the remaining two (2) months of her apprenticeship agreement.27
(Emphasis supplied)
Indeed, it appears that the Labor Arbiter’s conclusion that petitioner validly
terminated Palad was based mainly on the performance evaluation allegedly
conducted by petitioner. However, Palad alleges that she had no knowledge of
the performance evaluation conducted and that she was not even informed of the
result of the alleged performance evaluation. Palad also claims she did not
receive a notice of dismissal, nor was she given the chance to explain. According
to petitioner, Palad did not receive the termination notice because Palad allegedly
stopped reporting for work after being informed of the result of the evaluation.
Under Article 227 of the Labor Code, the employer has the burden of proving that
the termination was for a valid or authorized cause.28 Petitioner failed to
substantiate its claim that Palad was terminated for valid reasons. In fact, the
NLRC found that petitioner failed to prove the authenticity of the performance
evaluation which petitioner claims to have conducted on Palad, where Palad
received a performance rating of only 27.75%. Petitioner merely relies on the
performance evaluation to prove Palad’s inefficiency. It was likewise not shown
that petitioner ever apprised Palad of the performance standards set by the
company. When the alleged valid cause for the termination of employment is not
clearly proven, as in this case, the law considers the matter a case of illegal
dismissal.29
Furthermore, Palad was not accorded due process. Even if petitioner did conduct
a performance evaluation on Palad, petitioner failed to warn Palad of her alleged
poor performance. In fact, Palad denies any knowledge of the performance
evaluation conducted and of the result thereof. Petitioner likewise admits that
Palad did not receive the notice of termination30 because Palad allegedly stopped
reporting for work. The records are bereft of evidence to show that petitioner ever
gave Palad the opportunity to explain and defend herself. Clearly, the two
requisites for a valid dismissal are lacking in this case.
SO ORDERED.
ANTONIO T. CARPIO
Associate Justice
Footnotes
1
Under Rule 45 of the 1997 Rules of Civil Procedure.
2
Penned by Associate Justice Elvi John S. Asuncion with Associate
Justices Romeo A. Brawner and Juan Q. Enriquez, Jr., concurring.
3
CA rollo, pp. 57-58.
4
Id. at 63.
5
Id. at 59.
6
Id. at 32-33.
7
Id. at 42.
8
Rollo, p. 29.
9
G.R. No. 114337, 29 September 1995, 248 SCRA 654.
10
Rollo, p. 70.
11
Article 58(b) of the Labor Code.
12
Article 57(3) of the Labor Code.
13
Supra note 9.
14
Id. at 660-661.
15
Otherwise known as the TESDA Act of 1994.
16
Sections 5 and 18 of RA 7796 provide:
B. Definition of Terms
xxxx
The enterprise shall register its apprenticeship program with any of the
TESDA Provincial Offices. It shall submit the following:
1. Letter of Application;
H. Apprenticeship Agreement
(c) Fraud or willful breach by the employee of the trust reposed in him
by his employer or duly authorized representative;
GLORIA C. PALAD
105 LOT 1 BLK. 6, PRK. 7
B. TANYAG, TAGUIG, METRO MANILA
NINA B. LLAGAS
Recruitment/Benefits Supervisor
Noted by:
THIRD DIVISION
G.R. No. 187320 January 26, 2011
DECISION
BRION, J.:
For resolution is the petition for review on certiorari1 assailing the decision2 and
the resolution3 of the Court of Appeals (CA) rendered on November 4, 2008 and
March 25, 2009, respectively, in CA-G.R. SP. No. 99340.4
The Antecedents
The complaints were consolidated and were raffled to Labor Arbiter Daniel Cajilig,
but were later transferred to Labor Arbiter Dominador B. Medroso, Jr.
The complainants alleged that they had attained regular status as they were
allowed to work with Atlanta for more than six (6) months from the start of a
purported apprenticeship agreement between them and the company. They
claimed that they were illegally dismissed when the apprenticeship agreement
expired.
In defense, Atlanta and Chan argued that the workers were not entitled to
regularization and to their money claims because they were engaged as
apprentices under a government-approved apprenticeship program. The company
offered to hire them as regular employees in the event vacancies for regular
positions occur in the section of the plant where they had trained. They also
claimed that their names did not appear in the list of employees (Master List)5
prior to their engagement as apprentices.
On May 24, 2005, dela Cruz, Magalang, Zaño and Chiong executed a Pagtalikod
at Pagwawalang Saysay before Labor Arbiter Cajilig.
The Compulsory Arbitration Rulings
On April 24, 2006, Labor Arbiter Medroso dismissed the complaint with respect to
dela Cruz, Magalang, Zaño and Chiong, but found the termination of service of
the remaining nine to be illegal.6 Consequently, the arbiter awarded the dismissed
workers backwages, wage differentials, holiday pay and service incentive leave
pay amounting to ₱1,389,044.57 in the aggregate.
On December 29, 2006,8 the NLRC rendered a decision, on appeal, modifying the
ruling of the labor arbiter, as follows: (1) withdrawing the illegal dismissal finding
with respect to Sagun, Mabanag, Sebolino and Pedregoza; (2) affirming the
dismissal of the complaints of dela Cruz, Zaño, Magalang and Chiong; (3)
approving the compromise agreement entered into by Costales, Ramos,
Villagomez, Almoite and Alegria, and (4) denying all other claims.
Sebolino, Costales, Almoite and Sagun moved for the reconsideration of the
decision, but the NLRC denied the motion in its March 30, 20079 resolution. The
four then sought relief from the CA through a petition for certiorari under Rule 65
of the Rules of Court. They charged that the NLRC committed grave abuse of
discretion in: (1) failing to recognize their prior employment with Atlanta; (2)
declaring the second apprenticeship agreement valid; (3) holding that the
dismissal of Sagun, Mabanag, Sebolino and Melvin Pedregoza is legal; and (4)
upholding the compromise agreement involving Costales, Ramos, Villagomez,
Almoite and Alegria.
The CA Decision
The petitioners themselves admitted that Costales and Almoite were initially
planned to be a part of the compromise agreement, but their employment has
been regularized as early as January 11, 2006; hence, the company did not
pursue their inclusion in the compromise agreement.12
The CA faulted the NLRC for failing to appreciate the evidence regarding the
respondents’ prior employment with Atlanta. The NLRC recognized the prior
employment of Costales and Almoite on Atlanta’s monthly report for December
2003 for the CPS Department/Section dated January 6, 2004.13 This record
shows that Costales and Almoite were assigned to the company’s first shift from
7:00 a.m. to 3:00 p.m. The NLRC ignored Sebolino and Sagun’s prior
employment under the company’s Production and Work Schedule for March 7 to
12, 2005 dated March 3, 2004,14 as they had been Atlanta’s employees as early
as March 3, 2004, with Sebolino scheduled to work on March 7-12, 2005 at 7:00
a.m. to 7:00 p.m., while Sagun was scheduled to work for the same period but
from 7:00 p.m. to 7:00 a.m. The CA noted that Atlanta failed to challenge the
authenticity of the two documents before it and the labor authorities.
Atlanta and Chan moved for reconsideration, but the CA denied the motion in a
resolution rendered on March 25, 2009.15 Hence, the present petition.
The Petition
Atlanta seeks a reversal of the CA decision, contending that the appellate court
erred in (1) concluding that Costales, Almoite, Sebolino and Sagun were
employed by Atlanta before they were engaged as apprentices; (2) ruling that a
second apprenticeship agreement is invalid; (3) declaring that the respondents
were illegally dismissed; and (4) disregarding the compromise agreement
executed by Costales and Almoite. It submits the following arguments:
First. The CA’s conclusion that the respondent workers were company employees
before they were engaged as apprentices was primarily based on the Monthly
Report16 and the Production and Work Schedule for March 7-12, 2005,17 in total
disregard of the Master List18 prepared by the company accountant, Emelita M.
Bernardo. The names of Costales, Almoite, Sebolino and Sagun do not appear as
employees in the Master List which "contained the names of all the persons who
were employed by and at petitioner."19
Atlanta faults the CA for relying on the Production and Work Schedule and the
Monthly Report which were not sworn to, and in disregarding the Master List
whose veracity was sworn to by Bernardo and by Alex Go who headed the
company’s accounting division. It maintains that the CA should have given more
credence to the Master List.
Second. In declaring invalid the apprenticeship agreements it entered into with the
respondent workers, the CA failed to recognize the rationale behind the law on
apprenticeship. It submits that under the law,20 apprenticeship agreements are
valid, provided they do not exceed six (6) months and the apprentices are paid
the appropriate wages of at least 75% of the applicable minimum wage.
Further, the apprenticeship agreements, entered into by the parties, complied with
the requisites under Article 62 of the Labor Code; the company’s authorized
representative and the respondents signed the agreements and these were
ratified by the company’s apprenticeship committee. The apprenticeship program
itself was approved and certified by the TESDA.22 The CA, thus, erred in
overturning the NLRC’s finding that the apprenticeship agreements were valid.
Third. There was no illegal dismissal as the respondent workers’ tenure ended
with the expiration of the apprenticeship agreement they entered into. There was,
therefore, no regular employer-employee relationship between Atlanta and the
respondent workers.
The respondents posit that the CA committed no error in holding that they were
already Atlanta’s employees before they were engaged as apprentices, as
confirmed by the company’s Production and Work Schedule.24 They maintain that
the Production and Work Schedule meets the requirement of substantial evidence
as the petitioners failed to question its authenticity. They point out that the
schedule was prepared by Rose A. Quirit and approved by Adolfo R. Lope, head
of the company’s PE/Spiral Section. They argue that it was highly unlikely that the
head of a production section of the company would prepare and assign work to
the complainants if the latter had not been company employees.
The respondent workers reiterate their mistrust of the Master List25 as evidence
that they were not employees of the company at the time they became
apprentices. They label the Master List as "self-serving, dubious and even if
considered as authentic, its content contradicts a lot of petitioner’s claim and
allegations,"26 thus -
1. Aside from the fact that the Master List is not legible, it contains only the
names of inactive employees. Even those found by the NLRC to have been
employed in the company (such as Almoite, Costales and Sagun) do not
appear in the list. If Costales and Almoite had been employed with Atlanta
since January 11, 2006, as the company claimed,27 their names would have
been in the list, considering that the Master List accounts for all employees
"as of May 2006" – the notation carried on top of each page of the
document.
3. The fact that Atlanta presented the purported Master List instead of the
payroll raised serious doubts on the authenticity of the list.
In sum, the respondent workers posit that the presentation of the Master List
revealed the "intention of the herein petitioner[s] to perpetually hide the fact of
[their] prior employment."28
Costales, Almoite, Sebolino and Sagun resolutely maintain that they were illegally
dismissed, as the reason for the termination of their employment – notice of the
completion of the second apprenticeship agreement – did not constitute either a
just or authorized cause under Articles 282 and 283 of the Labor Code.
The respondent workers ask that the petition be dismissed outright for the
petitioners’ failure to attach to the petition a copy of the Production and Work
Schedule and a copy of the compromise agreement Costales and Almoite
allegedly entered into — material portions of the record that should accompany
and support the petition, pursuant to Section 4, Rule 45 of the Rules of Court.
First. Based on company operations at the time material to the case, Costales,
Almoite, Sebolino and Sagun were already rendering service to the company as
employees before they were made to undergo apprenticeship. The company itself
recognized the respondents’ status through relevant operational records – in the
case of Costales and Almoite, the CPS monthly report for December 200344 which
the NLRC relied upon and, for Sebolino and Sagun, the production and work
schedule for March 7 to 12, 200545 cited by the CA.
Under the CPS monthly report, Atlanta assigned Costales and Almoite to the first
shift (7:00 a.m. to 3:00 p.m.) of the Section’s work. The Production and Work
Schedules, in addition to the one noted by the CA, showed that Sebolino and
Sagun were scheduled on different shifts vis-à-vis the production and work of the
company’s PE/Spiral Section for the periods July 5-10, 2004;46 October 25-31,
2004;47 November 8-14, 2004;48 November 16-22, 2004;49 January 3-9, 2005;50
January 10-15, 2005;51 March 7-12, 200552 and March 17-23, 2005.53
Second. The Master List54 (of employees) that the petitioners heavily rely upon as
proof of their position that the respondents were not Atlanta’s employees, at the
time they were engaged as apprentices, is unreliable and does not inspire belief.
The list, consisting of several pages, is hardly legible. It requires extreme effort to
sort out the names of the employees listed, as well as the other data contained in
the list. For this reason alone, the list deserves little or no consideration. As the
respondents also pointed out, the list itself contradicts a lot of Atlanta’s claims and
allegations, thus: it lists only the names of inactive employees; even the names of
those the NLRC found to have been employed by Atlanta, like Costales and
Almoite, and those who even Atlanta claims attained regular status on January
11, 2006,55 do not appear in the list when it was supposed to account for all
employees "as of May 6, 2006." Despite the "May 6, 2006" cut off date, the list
contains no entries of employees who were hired or who resigned in 2005 and
2006. We note that the list contains the names of employees from 1999 to 2004.
We cannot fault the CA for ignoring the Master List even if Bernardo, its head
office accountant, swore to its correctness and authenticity.56 Its substantive
unreliability gives it very minimal probative value. Atlanta would have been better
served, in terms of reliable evidence, if true copies of the payroll (on which the list
was based, among others, as Bernardo claimed in her affidavit) were presented
instead.1âwphi1
Third. The fact that Costales, Almoite, Sebolino and Sagun were already
rendering service to the company when they were made to undergo
apprenticeship (as established by the evidence) renders the apprenticeship
agreements irrelevant as far as the four are concerned. This reality is highlighted
by the CA finding that the respondents occupied positions such as machine
operator, scaleman and extruder operator - tasks that are usually necessary and
desirable in Atlanta’s usual business or trade as manufacturer of plastic building
materials.57 These tasks and their nature characterized the four as regular
employees under Article 280 of the Labor Code. Thus, when they were dismissed
without just or authorized cause, without notice, and without the opportunity to be
heard, their dismissal was illegal under the law.58
SO ORDERED.
Footnotes
1
Rollo, pp. 12-34; filed pursuant to Rule 45 of the Rules of Court.
2
Id. at 42-63; penned by Associate Justice Pampio A. Abarintos, and
concurred in by Associate Justice Edgardo F. Sundiam and Associate
Justice Sesinando E. Villon.
3
Id. at 65-66.
4
Aprilito R. Sebolino, Khim V. Costales, Alvin V. Almoite and Joseph S.
Sagun v. National Labor Relations Commission, Atlanta Industries, Inc.
and/or Robert Chan.
5
Rollo, pp. 192-216.
6
Id. at 89-99; Petition, Annex "N."
7
CA rollo, pp. 286-287.
8
Rollo, pp. 100-110; Petition, Annex "O."
9
Id. at 115-118; Petition, Annex "P."
10
Supra note 2.
11
Article 61 of the Labor Code, and its Implementing Rules and
Regulations, Book II, Rule VI, Section 18.
12
CA rollo, p. 323; petitioners’ Comment, p. 31, last paragraph.
13
CA rollo, p. 78.
14
Id. at 92.
15
Supra note 3.
16
Supra note 13.
17
Supra note 14.
18
Supra note 5.
19
Rollo, p. 22; Petition, p. 11, par. 1.
20
Article 61 of the Labor Code.
21
Rollo, pp. 27-28; Petition, pp. 16-17.
22
CA rollo, p. 354; Annex "4" of Atlanta’s Comment.
23
Rollo, pp. 125-139.
24
Supra note 14.
25
Supra note 5.
26
Rollo, p. 127; respondents’ Comment, p. 3, par. 5.
27
Rollo, p. 189.
28
Id. at 151.
29
Id. at 130; Respondent’s Comment, p. 6, par. 12.
30
Ibid.
31
CA rollo, pp. 129-148 and 152-153.
32
Id. at 162, Annex "H."
33
Id. at 85-92-A; Petition for Certiorari, Annexes "JJ" to "RR."
34
Id. at 286, Annex "RRR."
35
G.R. No. 162253, August 13, 2008, 562 SCRA 80, citing Atillo v. Bombay,
404 Phil. 179 (2001).
36
SEC. 2. Form and contents. – The petition shall be filed in seven (7)
legible copies, with the original copy intended for the court being indicated
as such by the petitioner, and shall (a) state the full names of the parties to
the case, without impleading the lower courts or judges thereof either as
petitioners or respondents; (b) indicate the specific material dates showing
that it was filed on time; (c) set forth concisely a statement of the matters
involved, the issues raised, the specification of errors of fact or law, or both,
allegedly committed by the Regional Trial Court, and the reasons or
arguments relied upon for the allowance of the appeal; (d) be accompanied
by clearly legible duplicate originals or true copies of the judgments or final
orders of both lower courts, certified correct by the clerk of court of the
Regional Trial Court, the requisite number of plain copies thereof and of the
pleadings and other material portions of the record as would support the
allegations of the petition.
37
Supra note 35, at 87.
38
Supra note 2.
39
Supra note 3.
40
Rollo, pp. 89-99; Petition, Annex "N."
41
Id. at 100-110; Petition, Annex "O."
42
Ibid.
43
Supra note 40.
44
Supra note 13.
45
Supra note 14.
46
CA rollo, p. 86.
47
Id. at 87.
48
Id. at 88.
49
Id. at 89.
50
Id. at 90.
51
Id. at 91.
52
Id. at 92.
53
Id. at 92-A.
54
Supra note 5.
55
Supra note 5, caption of each page of the list’s last line.
56
Rollo, p. 217; Bernardo’s Affidavit dated May 25, 2006.
57
Id. at 60; CA Decision, p. 19, par. 1.
58
Articles 279 & 277 (b) of the Labor Code.
59
Rollo, pp. 67-82; copies of the second apprenticeship agreements.
60
Section 18, Rule VI, Book II of the Implementing Rules and Regulations of
the Labor Code.
61
CA rollo, pp. 286-287.
62
Supra note 12.
63
Rollo, p. 61; CA Decision, p. 20, last paragraph.