Labor Law Digest: JHORIZALDY UY V. CENTRO CERAMICA CORPORATION et al [G.R. No. 174631, October 19, 2011]

Topic: Illegal Dismissal, Backwages

JHORIZALDY UY V. CENTRO CERAMICA CORPORATION et al

 [G.R. No. 174631, October 19, 2011]

Facts:

Jhorizaldy Uy is a regular employee, working as a sales executive in respondent’s Centro Ceramica Corporation. He filed a complaint for illegal dismissal against the company, its president and VP respectively. Petitioner alleged that he was dismissed without just cause by the company’s president when he refused to assume a new position in the marketing department. On the same day, the president, thru a closed door meeting, charged Uy of insubordination, terminated his services and was directed to turn over samples and files immediately. Petitioner returned the same and thereafter did not report to work. On the other hand, respondent company denied dismissing petitioner.

For his illegal termination, petitioner asserted that he is entitled to his unpaid commission, tax refund, back wages and reinstatement.

Labor Arbiter found no illegal dismissal finding petitioner voluntarily resigned. NLRC reversed the same. CA meantime reversed NLRC’s finding, stating that it was petitioner who informally severed the employment relationship.

Issues:

1)    If the employee was illegally dismissed or he voluntarily resigned.

2)    If the employee was entitled to reinstatement.

Ruling:

1)    He was illegally dismissed. The evidence on record suggests that petitioner did not resign; He was orally dismissed by Sy. It is this lack of clear, valid and legal cause, not to mention due process that made his dismissal illegal, warranting reinstatement and the award of back wages.

2)    Yes, he was entitled for reinstatement however the doctrine of strained relations applies here. Under the doctrine of strained relations, the payment of separation pay has been considered an acceptable alternative to reinstatement when the latter option is no longer desirable or viable. Separation pay in lieu of reinstatement equivalent to one month salary for every year of service, computed from the time of his engagement by respondents on March 21, 1999 up to the finality of this decision.

Petitioner is likewise entitled to the payment of full back wages, inclusive of allowances, and other benefits or their monetary equivalent, computed from the date of his dismissal on February 19, 2002 up to the finality of this decision.