GR 214291; (January, 2018) (Digest)
G.R. No. 214291 . January 11, 2018.
AMERICAN POWER CONVERSION CORPORATION, ET AL., Petitioners, v. JAYSON YU LIM, Respondent.
FACTS
Respondent Jayson Yu Lim was hired in 1998 as Country Manager for the unregistered American Power Conversion Philippine Sales Office, a liaison office for the American corporation APCC. His payroll was administered by the SEC-registered affiliate, APCPI, which was later acquired by petitioner APCP B.V. In 2004, Lim was promoted to Regional Manager for APC North ASEAN, reporting directly to an officer of the foreign APCC. In 2005, Lim and a colleague reported alleged irregularities by their new superior, petitioner George Kong. Shortly after, the colleague was terminated by a different corporate entity, APCS. Lim was then informed by Kong that his position was redundant due to a restructuring. He received a termination letter from APCP B.V. and was paid severance pay. A DOLE certification confirmed no notice of termination for redundancy was filed by any petitioner.
ISSUE
Whether respondent Jayson Yu Lim was illegally dismissed.
RULING
Yes, the Supreme Court ruled that Lim was illegally dismissed. The legal logic centered on the petitioners’ failure to substantiate the claimed redundancy and their disregard for procedural due process. For a redundancy termination to be valid, the employer must prove the superfluity of the position through concrete evidence, such as a reorganization plan or a new staffing pattern, and that it was done in good faith. Here, petitioners presented no such evidence. The Court found the timing of the termination, immediately following Lim’s report of irregularities, highly suspect, indicating a retaliatory motive rather than a bona fide business decision. Furthermore, the employer failed to comply with the procedural requirement under Article 283 of the Labor Code to serve a written notice on the DOLE at least one month before termination, as confirmed by the official certification. The payment of separation pay does not cure the illegality of a dismissal not based on a just or authorized cause. Consequently, the dismissal was declared illegal, and Lim was entitled to reinstatement and full backwages.