San Miguel Corp. vs. CA.

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Topic MUSLIM HOLIDAY

Case No. G.R. No. 146775 / January 30, 2002


Case Name SAN MIGUEL CORPORATION vs. CA
Ponente KAPUNAN, j.

RELEVANT FACTS
 Oct. 17, 1992 – DOLE Iligan District Office, conducted a routine inspection in the premises of San Miguel
Corporation (SMC) in Sta. Filomena, Iligan City. It was discovered that there was underpayment by SMC
of regular Muslim holiday pay to its employees.
 DOLE sent a copy of the inspection result to SMC and it was received by and explained to its personnel
officer Elena dela Puerta.
 SMC contested the findings and so DOLE conducted summary hearings on different dates.
 Still, SMC failed to submit proof that it was paying regular Muslim holiday pay to its employees.
 Hence, the Regional Director Alan Macaraya issued a compliance order directing SMC to consider
Muslim holidays as regular holidays and to pay both its Muslim and non-Muslim employees holiday
pay within 30 days from receipt of the order.
 SMC appealed to the DOLE main office in Manila  Dismissed for lack of merit.
 SMC appealed to the SC via Rule 65, which it referred to the CA. CA modified the compliance order
issued by the Regional Director with regards the payment of Muslim holiday pay from 200% to 150% of
the employee’s basic salary.
 SMC filed MR but it was denied by the CA.
 Hence, this petition via Rule 65.

ISSUE AND RATIO DECIDENDI

Issue Ratio
W/N the petition under Rule NO.
65 is proper? 1. SC held that the proper remedy for SMC is to file a petition for review
under Rule 45.
2. Well-settled is the rule that certiorari cannot be availed of as a
substitute for a lost appeal. For failure of petitioner to file a timely
appeal, the questioned decision of the Court of Appeals had already
become final and executory.

W/N SMC’s non-Muslim YES.


employees are also entitled 1. Muslim holidays are provided under Articles 169 and 170, Title I, Book
to Muslim holiday pay? V, of Presidential Decree No. 1083, otherwise known as the Code of
Muslim Personal Laws. (see Notes)
2. SC stated that these provisions must be read in conjunction with Art.
94 of the Labor Code which provides:
 Art. 94. Right to holiday pay. –
(a) Every worker shall be paid his regular daily wage during
regular holidays, except in retail and service establishments
regularly employing less than ten (10) workers;
(b) The employer may require an employee to work on any
holiday but such employee shall be paid a compensation
equivalent to twice his regular rate; x x x.
3. SMC argues that according to Art. 3 (3) of PD 1083 (see Notes), the
provisions of the Code shall be applicable only to Muslims. However,
the Court held that there should be no distinction between Muslims
and non-Muslims as regards payment of benefits for Muslim
holidays.
 Assuming arguendo that SMC’s position is correct, then Muslims
throughout the Philippines are also not entitled to holiday pays
on Christian holidays declared by law as regular holidays.
 Wages and other emoluments granted by law to the working man
are determined on the basis of the criteria laid down by laws not
on the basis of the worker’s faith or religion.
 The said Art. 3(3) also provides that nothing herein shall be
construed to operate to the prejudice of a non-Muslim.
4. Moreover, in the the 1999 Handbook on Workers Statutory Benefits,
approved by then DOLE Secretary Bienvenido E. Laguesma, it was said
that both Muslim and Christians working within the Muslim areas
may not report for work on the days designated by law as Muslim
holidays.

W/N the Regional Director YES.


has the jurisdiction and 1. By virtue of Art. 128 of the Labor Code, the RD acted as the duly
authority to issue the authorized representative of the SOLE and it was within his power to
compliance order? issue the compliance order to SMC.
W/N SMC was accorded due YES.
process? 1. SMC was furnished a copy of the inspection order and it was received
by and explained to its Personnel Officer.
2. Further, a series of summary hearings were conducted by DOLE.
3. Thus, SMC could not claim that it was not given an opportunity to
defend itself.

RULING

WHEREFORE, in view of the foregoing, the petition is DISMISSED.


NOTES

PD 1083
Art. 169. Official Muslim holidays. - The following are hereby recognized as legal Muslim holidays: (a) Amun
Jadīd (New Year), which falls on the first day of the first lunar month of Muharram;

(b) Maulid-un-Nabī (Birthday of the Prophet Muhammad), which falls on the twelfth day of the third lunar
month of Rabi-ul-Awwal;

(c) Lailatul Isrā Wal Mirāj (Nocturnal Journey and Ascension of the Prophet Muhammad), which falls on the
twenty-seventh day of the seventh lunar month of Rajab;
(d) I ̄d-ul-Fitr (Hari Raya Puasa), which falls on the first day of the tenth lunar month of Shawwal,
commemorating the end of the fasting season; and

(e) I ̄d-ūl-Adhā (Hari Raya Haji),which falls on the tenth day of the twelfth lunar month of Dhūl-Hijja.

Art. 170. Provinces and cities where officially observed. - (1) Muslim holidays shall be officially observed in the
Provinces of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato, Iligan, Marawi, Pagadian,
and Zamboanga and in such other Muslim provinces and cities as may hereafter be created;

(2) Upon proclamation by the President of the Philippines, Muslim holidays may also be officially observed in
other provinces and cities.

PD 1083

Article 3. Conflict of provisions.


(3) The provisions of this Code shall be applicable only to Muslims and nothing herein shall be construed to
operate to the prejudice of a non-Muslim.

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