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BARON REPUBLIC THEATRICAL,
MAJOR CINEMA, WILSON PASCUAL and RODRIGO SALAZAR, Petitioners, - versus - NORMITA P. PERALTA and EDILBERTO H. AGUILAR, Respondents. |
G.R.
No. 170525 Present:
YNARES-SANTIAGO, J., Chairperson,
CHICO-NAZARIO, VELASCO, JR., NACHURA, and PERALTA, JJ. Promulgated: October 2,
2009 |
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PERALTA, J.:
Before the Court is a petition for
review on certiorari under Rule 45 of the Rules of Court which seeks the
reversal of the Decision[1]
of the Court of Appeals (CA) dated
The factual and procedural
antecedents, as narrated by the CA, are as follows:
Petitioner [herein respondent], Normita P. Peralta
(“PERALTA”) was hired by BARON REPUBLIC THEATRICAL (“BARON”) sometime in 1983
as a ticket seller and was later on promoted as General Manager. As General
Manager she received a salary of Four Thousand Pesos (P4,000.00) a
month.
On
As to petitioner [herein respondent]
Edilberto H. Aguilar (“AGUILAR”), he was hired as electrician/air-conditioner
operator at MAJOR CINEMA (“MAJOR”) sometime in January of 1983. AGUILAR
received a salary of NINETY-SEVEN PESOS (P97.00) per day and his salary
was not increased even after the statutory minimum salary was increased.
In May 1994, he was informed by the owner-operator of MAJOR, [herein petitioner] Wilson Pascual (“PASCUAL”), that his employment was terminated effective that day. No explanation was given to AGUILAR why his service was being terminated. Hence, he filed a complaint against his employers, PASCUAL/MAJOR for illegal dismissal, payment of wage differentials as a result of underpayment, overtime pay, holiday and rest day/pay and service incentive leave pay.[6]
On
WHEREFORE, judgment is hereby rendered:
1. Ordering respondent Rodrigo D. Salazar to pay complainant NORMITA P. PERALTA, the following amounts:
13th month pay
.........................................
P12,000.00
Service incentive leave pay ..................... 1,999.95
One month pay in lieu of notice ............... 4,000.00
Separation pay (P2,000.00 x 4
years -
5% attorney's fees
.......................................
1,300.00
TOTAL AWARD ............ P 27,299.95
2. Declaring the dismissal of complainant EDILBERTO H. AGUILAR by respondent WILSON PASCUAL to be illegal and ordering the latter to reinstate the former to his former position without loss of seniority rights and other privileges and pay him the following amount:
Backwages until reinstatement, computed
as of P149,158.50
13th month pay (P140,158.50 over 12) ........ 11,679.90
Salary differentials (underpayment) ............ 2,740.40
13th month pay for the underpayment .......... 228.40
5 day per year SILP for 3 years .................... 1,860.00
5% attorney's fees
......................................... 7,833.75
TOTAL AWARD
FOR AGUILAR P164,501.25
All other claims are DISMISSED for insufficiency of evidence and/or lack of merit.
SO ORDERED.[7]
The
Labor Arbiter ruled that Peralta's dismissal was not illegal as the
establishment where she was working closed due to business losses and closure
of business or establishment is one of the authorized causes recognized by law
in dismissing an employee. On the other hand, the Labor Arbiter held that
Aguilar's dismissal was illegal for failure of Pascual to present evidence that
the former's dismissal was for a just cause.
On
appeal, the NLRC modified the Decision of the Labor Arbiter. The decretal
portion of the NLRC Decision reads as follows:
WHEREFORE, premises considered, the Decision of the Labor Arbiter is hereby modified and a new one entered:
1. Ordering respondent Rodrigo D. Salazar to pay complainant NORMITA P. PERALTA, the following amounts:
One month pay in lieu of notice
P 4,000.00
Separation pay (P2,000.00 x 4
yrs.
Nov.21, 1998 to
--------------
TOTAL AWARD
P12,000.00
2. Declaring that complainant EDILBERTO H. AGUILAR has voluntarily terminated his employment with respondent WILSON PASCUAL but ordering the latter to pay the former:
Salary differentials (underpayment)
P 2,740.40
13th month pay for the underpayment 228.40
-------------
TOTAL AWARD FOR AGUILAR P
2,968.80
SO ORDERED.[8]
In its Decision, the NLRC reversed the Labor Arbiter's ruling
that Aguilar was illegally dismissed. Instead, it gave credence to Pascual's
representation that it was Aguilar who refused to return or report for work and
was guilty of abandonment. The NLRC held that it is against logic for Pascual
to terminate Aguilar on the spot without any substitute because his services
are essential to Pascual's business. The NLRC ruled that, aside from his
self-serving statements, Aguilar failed to show proof that he was indeed
terminated.
Herein
respondents filed a Motion for Reconsideration,[9]
but the NLRC denied it in its Resolution[10]
dated
Respondents then filed a petition for certiorari with the CA assailing the abovementioned Decision and Resolution of the NLRC.[11]
On
WHEREFORE, except as to the order deleting the award of Service Incentive Leave pay to PERALTA and AGUILAR, the decision of the NLRC dated April 16, 1999 is hereby SET ASIDE and the Decision of Labor Arbiter Ernesto S. Dinopol dated August 15, 1996 is REINSTATED with the MODIFICATION that the award of service incentive leave pay in favor of PERALTA and AGUILAR is DELETED and should the order reinstating AGUILAR be not feasible, MAJOR CINEMA and/or PASCUAL is hereby ORDERED to pay separation pay at the rate of one month for every year of service, with a fraction of at least six (6) months of service considered as one (1) year.
SO ORDERED.[12]
The
CA held that as to Peralta, Salazar failed to discharge his burden of proving
that he paid the former her 13th month pay. In the same manner, the
appellate court ruled that Pascual failed to prove that Aguilar was guilty of
abandonment. Moreover, the CA reinstated the award of attorney's fees holding
that Peralta and Aguilar were both forced to litigate in order to protect their
rights and interests. On the other hand, the CA affirmed the ruling of the NLRC
which deleted the award of service incentive leave pay to Peralta and Aguilar.
Aggrieved,
herein petitioners filed a Motion for Partial Reconsideration,[13]
but it was denied by the CA in its Resolution[14]
dated
Hence,
this petition for review raising the following issues as grounds:
I
WHETHER OR NOT THE EMPLOYER HAS THE BURDEN OF PROVING THAT THE EMPLOYEE WAS DISMISSED FOR A JUST CAUSE ABSENT ANY SHOWING OF AN OVERT OR POSITIVE ACT PROVING THAT THE EMPLOYER HAD DISMISSED THE EMPLOYEE
II
WHETHER OR NOT
THE COURT OF APPEALS ERRED IN REINSTATING THE AWARD OF ATTORNEY'S FEES IN FAVOR
OF PERALTA AND AGUILAR IN THE ABSENCE OF BAD
As to
the first issue, petitioners contend that the CA erred in ruling that Pascual
has the burden of proving that the dismissal of Aguilar was for a just cause;
that the CA proceeded on the wrong premise that Aguilar was in fact dismissed
from his employment; that petitioners' burden of proving the validity of
Aguilar's dismissal comes only after the latter is able to prove that his
alleged dismissal from employment was made through some overt or positive act
on the part of petitioner Pascual indicating such dismissal; that Aguilar, in fact,
refused to work and abandoned his job.
The
Court is not persuaded.
It is a
basic principle that in illegal dismissal cases, the burden of proof rests upon
the employer to show that the dismissal of the employee is for a just cause and
failure to do so would necessarily mean that the dismissal is not justified.[16]
In addition, in claims of abandonment by an employee, the settled rule is that the employer
bears the burden of showing a deliberate and unjustified refusal by the
employee to resume his employment without any intention of returning.[17]
Moreover, in evaluating a charge of abandonment, the jurisprudential
rule is that abandonment is a matter of intention that cannot be lightly
presumed from equivocal acts.[18]
To constitute abandonment, two elements must concur: (1) the failure to report
for work or absence without valid or justifiable reason, and (2) a clear
intent, manifested through overt acts, to sever the employer-employee
relationship.[19]
In the
present case, petitioner
Pascual consistently denies that Aguilar was terminated from his employment and
that, instead, he abandoned his work and never returned after his request for
salary increase was rejected. However, denial, in this case, does not suffice;
it should be coupled with evidence to support it.[20] In the
instant case, the Court finds no error in the ruling of the CA that petitioners
failed to adduce evidence to prove abandonment and rebut Aguilar's claim of
dismissal.
Contrary
to petitioners' asseveration that Aguilar is guilty of abandoning his job, the
Court finds no error in the finding of the Labor Arbiter, as affirmed by the
CA, that there was no clear intention on Aguilar’s part to sever the
employer-employee relationship. Considering that “intention” is a mental state,
petitioners must show that respondent Aguilar’s overt acts point unerringly to
his intent not to work anymore. In this regard, petitioners failed.
In fact, Aguilar’s filing of a complaint for illegal dismissal the day following his termination, as well as his subsequent prayer for reinstatement in his Position Paper,[21] are indications which strongly speak against the petitioners' charge of abandonment. An employee who loses no time in protesting his layoff cannot by any reasoning be said to have abandoned his work for it is illogical for an employee to abandon his employment and, thereafter, file a complaint for illegal dismissal and pray for reinstatement.[22]
In a long line of cases, this Court has held that abandonment is negated where the immediate filing of a complaint for illegal dismissal was coupled with a prayer for reinstatement and that the filing of the complaint for illegal dismissal is proof enough of the desire to return to work.[23] The prayer for reinstatement, as in this case, speaks against any intent to sever the employer-employee relationship.[24]
In
addition, the Court takes note of the fact established by respondents that
Aguilar has been in-charge of the air-conditioning system of Major Cinema since
1983, or a total of more than 11 years. No evidence was shown that he had any
record of infraction of company rules. Hence, the Court finds it difficult to
accept petitioner Pascual’s allegation that Aguilar simply walked away with the
intent to abandon his job when his request for increase of wage was not granted.
The Court agrees with the Labor Arbiter that abandonment after Aguilar’s long
years of service and the consequent surrender of benefits earned from years of
hard work are highly unlikely.
Furthermore,
the Court agrees with respondents when they argued in their petition filed with
the CA that if an employee's aim is to secure the benefits due him from his
employer, abandonment would surely be an illogical and impractical recourse,
especially for simple laborers such as respondent Aguilar. Considering the
difficult times in which our country is in it is illogical and even suicidal
for an employee like Aguilar to abandon his work, knowing fully well of the
widespread unemployment and underemployment problems as well as the difficulty
of looking for a means of livelihood, simply because his employer rejected his
demand for salary increase. Under the given facts, no basis in reason exists
for the petitioners' theory that Aguilar abandoned his job.
With respect to the second issue,
petitioners argue that attorney's fees are due only in cases where the
plaintiff or complainant is compelled to litigate and that there must be a finding to this effect. Petitioners also
assert that the totality of evidence does not support the claims of herein
respondents that they were compelled to litigate.
The Court does not agree.
It is settled that in actions for
recovery of wages or when the employee is illegally dismissed in bad faith or
where an employee was forced to litigate and incur expenses to protect his rights
and interests by reason of the unjustified acts of his employer, he is entitled
to an award of attorney's fees.[25] This award is justifiable under Article 111 of
the Labor Code,[26]
Section 8, Rule VIII, Book III of its Implementing Rules;[27]
and paragraph 7, Article 2208 of the Civil Code.[28]
Moreover,
in cases for recovery of wages, the award of attorney's fees is proper and
there need not be any showing that the employer acted maliciously or in bad
faith when it withheld the wages.[29]
There need only be a showing that the lawful wages were not paid accordingly.[30]
As to Peralta, it was established that
she was denied her 13th month pay. Moreover, both the Labor Arbiter and the
NLRC are in agreement that she was unceremoniously dismissed from her
employment when her employer, Salazar, failed to serve her a written notice of
her dismissal from employment at least 30 days prior to the supposed date of
her termination. This is a clear
evidence of bad faith on the part of Salazar. Hence, this circumstance, coupled
with the denial of her benefits, prompted her to seek representation for the
enforcement of her rights and the protection of her interests against the
unjustified acts of her employer. Thus, the CA committed no grave abuse of
discretion in sustaining the award of attorney's fees to Peralta.
With respect to Aguilar, it is clear
that he was illegally terminated from his employment and that his wages and
other benefits were withheld from him without any valid and legal basis.
As a
consequence, he is compelled to file an action for illegal dismissal and for
the recovery of his lawful wages and other benefits and, in the process,
incurred expenses. On these bases, the Court also finds that the CA did not
commit grave abuse of discretion in upholding the grant of attorney's fees to
Aguilar.
WHEREFORE, the instant petition is DENIED.
The Decision of the Court of Appeals, dated
SO
ORDERED.
DIOSDADO M. PERALTA
Associate
Justice
WE CONCUR:
CONSUELO YNARES-SANTIAGO
Associate Justice
Chairperson
MINITA V. CHICO-NAZARIO
PRESBITERO J. VELASCO, JR.
Associate Justice Associate
Justice
ANTONIO EDUARDO B. NACHURA
Associate Justice
ATTESTATION
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court’s Division.
CONSUELO
YNARES-SANTIAGO
Associate
Justice
Third
Division, Chairperson
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the
Division Chairperson’s Attestation, I certify that the conclusions in the above
Decision were reached in consultation before the case was assigned to the
writer of the opinion of the Court’s Division.
REYNATO
S. PUNO
Chief Justice
[1] Penned by Associate Justice Regalado E. Maambong, with Associate Justices Martin S. Villarama, Jr. and Lucenito N. Tagle, concurring; rollo, pp. 24-38.
[2]
[3] CA rollo, p. 368.
[4] Id. at 20.
[5] Id. at 38.
[6] Id. at 323-324.
[7]
[8]
[9]
[10]
[11]
[12]
[13]
[14]
[15] Rollo, p. 17.
[16] Harbor View Restaurant v. Reynaldo
Labro, G.R. No. 168273,
[17] Pentagon Steel Corporation v. Court
of Appeals, et al.,G.R. No. 174141,
[18]
[19]
[20] Padilla Machine Shop v. Javilgas,
G.R. No. 175960,
[21] CA rollo, pp. 73-74.
[22] Aliten v. U-Need Lumber & Hardware, G.R. No. 168931, September 12, 2006, 501 SCRA 577, 589; New Ever Marketing, Inc. v. Court of Appeals, G.R. No. 140555, July 14, 2005, 463 SCRA 284, 296.
[23] South Davao Development Co., Inc., et al. v. Sergio L. Gamo, et al., G.R. No. 171814, May 8, 2009; Megaforce Security and Allied Services, Inc. v. Lactao, G.R. No. 160940, July 21, 2008, 559 SCRA 110, 118; Mame v. Court of Appeals, G.R. No. 167953, April 4, 2007, 520 SCRA 552, 563; Remington Industrial Sales Corporation v. Castaneda, G.R. Nos. 169295-96, November 20, 2006, 507 SCRA 391, 413.
[24] Pentagon Steel Corporation v. Court of Appeals, supra note 17.
[25] M+W Zander Philippines, Inc, et al.. v. Trinidad M. Enriquez, G.R. No. 169173, June 5, 2009; Placewell International Services Corporation v. Camote, G.R. No. 169973, June 26, 2006, 492 SCRA 761, 770.
[26] ART. 111. Attorney's fees. — (a) In cases of unlawful withholding of wages the culpable party may be assessed attorney's fees equivalent to ten percent of the amount of wages recovered; (b) It shall be unlawful for any person to demand or accept, in any judicial or administrative proceedings for the recovery of the wages, attorney's fees which exceed ten percent of the amount of wages recovered.
[27] SEC. 8. Attorney's fees. — Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not exceed 10% of the amount awarded. The fees may be deducted from the total amount due the winning party.
[28] ART. 2208. In the absence of
stipulation, attorney's fees and expenses of litigation, other than judicial
costs, cannot be recovered, except:
x
x x x
(7)
In actions for the recovery of wages of household helpers, laborers and skilled
workers;
x
x x x
[29] Norkis Trading Co., Inc. v. Genilo, G.R. No. 159730, February 11, 2008, 544 SCRA 279, 296.
[30]