Miyerkules, Hulyo 27, 2016

Labor Law Digest: NIPPON HOUSING PHIL. INC. V. MAIAH ANGELA LEYNES [G.R. No. 177816, August 3, 2011]

NIPPON HOUSING PHIL. INC. V. MAIAH ANGELA LEYNES
[G.R. No. 177816, August 3, 2011]
Perez, J.

Facts:
Maiah Leynes was hired as Property Manager for respondent NHPI’s building maintenance business. She handled the project for their only client, Bay Gardens Condominium. She was also responsible for the hiring and deployment of manpower, salary and position determination as well as the assignment of the schedules and responsibilities of employees. In one incident, Leynes had a misunderstanding with Engr.  Cantuba, the Building Engineer assigned at the Project, regarding the extension of the latters working hours.  NHPIs Vice President went on to issue a memorandum, attributing the incident to simple personal differences and directing Leynes to allow Engr. Cantuba to report back for work.

Disappointed with the foregoing management decision,  Leynes  submitted  to  NHPIs President, a letter asking for an emergency leave of absence for the supposed purpose of coordinating with her lawyer regarding her resignation letter. While
NHPI offered the Property Manager position to Engr. Carlos Jose as a consequence Leynes signification of her intention to resign, it also appears that Leynes sent another letter to NHPI on the same day, expressing her intention to return to work on and to call off her planned resignation upon the advice of her lawyer. Leynes was constrained to send out a written protest regarding the verbal information she supposedly received from Reyes that a substitute has already been hired for her position. Leynes was further served by petitioner with a letter and memorandum relieving her from her position and directing her to report to NHPIs main office while she was on floating status.

Aggrieved, Leynes lost no time in filing against NHPI and its above­named officers the complaint for illegal dismissal, unpaid salaries, benefits, damages and attorney’s fees docketed before the NLRC. She claimed that her being relieved from her position without just cause and replacement by one Carlos Jose amounted to an illegal dismissal from employment.

NHPI and its officers asserted that the management exercise of the prerogative to put an employee on floating status for a period not exceeding six months was justified in view of her threatened resignation from her position and BGCCs request for her replacement. 

During the pendency of the case, however, Reyes eventually served the DOLE Leynes with the 8 August 2002 notice terminating her services effective 22 August 2002, on the ground of redundancy or lack of a posting commensurate to her position at the Project.  Leynes was offered by NHPI the sum of P28,188.16 representing her unpaid wages, proportionate 13th month pay, tax refund and service incentive leave pay (SILP).

Issue:
1)         Whether or not placing an employee on floating status is tantamount to constructive dismissal.
2)         Was the complaint for illegal dismissal proper?
3)         Was the dismissal valid on the ground of redundancy?
4)         Was there a violation on the 30 day notice requirement?
5)         Was Leynes entitled to separation pay, and other monetary awards?

Held:

1)         NO. Acting on Leynes letter protesting against the hiring of her replacement and reiterating her lack of intention to resign from her position, the record, moreover, shows that NHPI simply placed her on floating status until such time that another project could be secured for her.

The rule is settled, however, that "off­detailing" is not equivalent to dismissal, so long as such status does not continue beyond a reasonable time and that it is only when such a "floating status" lasts for more  than  six  months  that  the  employee  may  be  considered  to  have  been  constructively dismissed.  

 In constructive dismissal cases, the employer is, concededly, charged with the burden of proving that its conduct and action or the transfer of an employee are for valid and legitimate grounds such as genuine business necessity.

Article 286 of the Labor Code has been applied to other industries when, as a consequence of the bona  fide  suspension  of  the  operation  of  a  business  or  undertaking,  an  employer  is constrained to put employees on floating status for a period not exceeding six months.

2)         NO. A complaint for illegal dismissal filed prior to the lapse of said six­month and/or the actual dismissal of the employee is generally considered as prematurely filed.

3)         YES. With no other client aside from BGCC for the building management side of its business, we find that NHPI was acting well within its prerogatives when it eventually terminated Leynes services on  the  ground  of  redundancy.  One  of  the  recognized  authorized  causes  for  the termination of employment, redundancy exists when the service capability of the workforce is in excess of what is reasonably needed to meet the demands of the business enterprise.

4)         YES. Where  dismissal  is  for  an  authorized  cause  like  redundancy,  the employer is, instead, required to serve a written notice of termination on the worker concerned and the DOLE, at least one month from the intended date thereof. Here, NHPI specifically made  Leynes  termination  from  service  effective  22  August  2002,  but  only  informed  said employee  of  the  same  on  8  August  2002 and  filed  with  the  DOLE  the  required Establishment Termination Report only on 16 August 2002.  For its failure to comply strictly with the 30­day minimum requirement for said notice and effectively violating Leynes right to due process, NHPI should be held liable to pay nominal damages in the sum of P50,000.00. The penalty should understandably be stiffer because the dismissal process was initiated by the employer's exercise of its management prerogative.

5)         YES, AND NO. Having been validly terminated on the ground of redundancy, Leynes is entitled to separation pay equivalent to one month salary for every year of service but not to the backwages adjudicated in her favor by the Labor Arbiter. For lack of showing of bad faith, malice or arbitrariness on the part of NHPI, there is, however, no justifiable ground for an award of moral and exemplary damages. For lack of factual or legal bases, we find no cause to award attorneys fees in favor of Leynes. In the absence of the same showing insofar as NHPIs corporate officers are concerned, neither is there cause to hold them jointly and severally liable for the monetary awards.


Petition granted.

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