Case 2
Case 2
Case 2
Petitioners,
Present:
PUNO, C.J.,
QUISUMBING,
YNARES-SANTIAGO,
- versus -
CARPIO,
AUSTRIA-MARTINEZ,
CORONA,
CARPIO MORALES,
AZCUNA,
PHILIPPINE AIRLINES,
INC.,
Respondent.
TINGA,
CHICO-NAZARIO,
VELASCO, JR.,
NACHURA,
LEONARDO-DE CASTRO, and
BRION, JJ.
Promulgated:
DECISION
Further, the Genuino ruling not only disregards the social justice
principles behind the rule, but also institutes a scheme unduly favorable
to management. Under such scheme, the salaries dispensed pendente lite
merely serve as a bond posted in installment by the employer. For in the
event of a reversal of the Labor Arbiters decision ordering reinstatement,
the employer gets back the same amount without having to spend
ordinarily for bond premiums.
The Court reaffirms the prevailing principle that even if the order
of reinstatement of the Labor Arbiter is reversed on appeal, it is
obligatory on the part of the employer to reinstate and pay the wages of
the dismissed employee during the period of appeal until reversal by the
higher court. It settles the view that the Labor Arbiter's order of
reinstatement is immediately executory and the employer has to either readmit them to work under the same terms and conditions prevailing prior
to their dismissal, or to reinstate them in the payroll, and that failing to
exercise the options in the alternative, employer must pay the employees
salaries.
for
respondent
to
exercise
its
option
under
the
circumstances.
The spirit of the rule on reinstatement pending appeal animates the
proceedings once the Labor Arbiter issues the decision containing an
order of reinstatement. The immediacy of its execution needs no further
elaboration. Reinstatement pending appeal necessitates its immediate
execution during the pendency of the appeal, if the law is to serve its
noble purpose. At the same time, any attempt on the part of the employer
to evade or delay its execution, as observed in Panuncillo and as what
actually transpired in Kimberly, Composite, Air Philippines, and Roquero,
should not be countenanced.
The test is two-fold: (1) there must be actual delay or the fact that
the order of reinstatement pending appeal was not executed prior to its
reversal; and (2) the delay must not be due to the employers unjustified
act or omission. If the delay is due to the employers unjustified refusal,
the employer may still be required to pay the salaries notwithstanding the
reversal of the Labor Arbiters decision.
In Genuino, there was no showing that the employer refused to
reinstate the employee, who was the Treasury Sales Division Head,
during the short span of four months or from the promulgation on May 2,
1994 of the Labor Arbiters Decision up to the promulgation on
September 3, 1994 of the NLRC Decision. Notably, the former NLRC
Rules of Procedure did not lay down a mechanism to promptly effectuate
the self-executory order of reinstatement, making it difficult to establish
that the employer actually refused to comply.
In a situation like that in International Container Terminal
Services, Inc. v. NLRC where it was alleged that the employer was willing
to comply with the order and that the employee opted not to pursue the
execution of the order, the Court upheld the self-executory nature of the
reinstatement order and ruled that the salary automatically accrued from
notice of the Labor Arbiter's order of reinstatement until its ultimate
reversal by the NLRC. It was later discovered that the employee indeed
moved for the issuance of a writ but was not acted upon by the Labor
Arbiter. In that scenario where the delay was caused by the Labor
Arbiter, it was ruled that the inaction of the Labor Arbiter who failed to
act upon the employees motion for the issuance of a writ of execution
may no longer adversely affect the cause of the dismissed employee in
view of the self-executory nature of the order of reinstatement.
management may think this wise, the rehabilitation receiver may decide
otherwise, not to mention the subsistence of the injunction on claims.
SO ORDERED.
WE CONCUR:
REYNATO S. PUNO
Chief Justice
LEONARDO A. QUISUMBING
Associate Justice
ANTONIO T. CARPIO
Associate Justice
Associate Justice
RENATO C. CORONA
ADOLFO S. AZCUNA
Associate Justice
Associate Justice
DANTE O. TINGA
MINITA V. CHICO-NAZARIO
Associate Justice
Associate Justice
Associate Justice
Associate Justice
ARTURO D. BRION
Associate Justice
CERTIFICATION
REYNATO S. PUNO
Chief Justice
218-219; Garcia v. Philippine Airlines, Inc., G.R. No. 160798, June 8, 2005,
459 SCRA 768. The appellate court, by Decision of March 28, 2008 and
Resolution of July 11, 2008, dismissed the petition.
Garcia v. Philippine Airlines, Inc., G.R. No. 164856, August 29, 2007, 531
SCRA 574, 582-583. Penned by Justice Leonardo A. Quisumbing.
Rollo, pp. 250-257.
G.R. No. 148247, August 7, 2006, 498 SCRA 59.
G.R. Nos. 142732-33, December 4, 2007, 539 SCRA 342.
Supra note 10 at 72-73.
Roquero v. Philippine Airlines, 449 Phil. 437, 446 (2003).
Supra note 11 at 363-364. The Court therein sustained the NLRCs reversal of
the Labor Arbiters decision but cancelled the NLRCs award of salaries
accruing from the Labor Arbiters order of reinstatement pending appeal.
Composite Enterprises, Inc. v. Caparoso, G.R. No. 159919, August 8, 2007,
529 SCRA 470; Kimberly Clark (Phils), Inc. v. Facundo, G.R. No. 144885,
July 26, 2006 (Unsigned Resolution); Sanchez v. NLRC, G.R. No. 124348,
February 7, 2001 Unsigned Resolution; International Container Terminal
Services, Inc. v. NLRC, 360 Phil. 527 (1998).
Roquero v. Philippine Airlines, supra at 445 citing Aris (Phil.) Inc. v. NLRC,
200 SCRA 246 (1991).
LABOR CODE, Article 223, par. 3.
345 Phil. 1057 (1997) which established the doctrine that an order or award
for reinstatement is self-executory, meaning that it does not require a writ of
execution, much less a motion for its issuance.
G.R. No. 161305, February 9, 2007, 515 SCRA 323.
Supra, where the employer did not release the salaries despite agreeing on
payroll reinstatement, awaiting the resolution of its unmeritorious Motion to
be Allowed to pay Separation Pay in lieu of Reinstatement.
Supra, where the employer did not at all comply with the standing writ of
execution.
Supra, where the employer refused to comply with the writ of execution,
arguing that it filed a petition for review before the Court.
Supra.
International Container Terminal Services, Inc. v. NLRC, supra.
REVISED RULES OF PROCEDURE OF THE NLRC (2005), Rule V, Sec. 14
and Rule XI, Sec. 6.
Petitioners state that respondent ignored their letter of June 14, 1999,
prompting them to file a Motion for Issuance of Writ of Execution [of the
Labor Arbiters January 11, 1999] and to Cite the Respondents in Contempt
of November 11, 1999, rollo, pp. 78-85, 169.
Garcia v. Philippine Airlines, Inc., supra note 8.
Roquero v. Philippine Airlines, supra note 13.
PRES. DECREE No. 902-A, Sec. 6 (c), as amended.