G.R. No. 112658 March 16, 1995
International School of Speech and/or Wilma Cruz Tapalla, petitioners, vs. National Labor Relations Commission and Ma. Corazon D. Mamuyac, respondents.

FACTS

Private respondent Ma. Corazon D. Mamuyac filed a complaint against petitioners International School of Speech and/or Wilma Cruz Tapalla for unfair labor practice, illegal deduction, non-payment of wages, overtime pay, legal holiday pay, premium pay for holiday and rest day, and violation of Presidential Decrees Nos. 525, 851 and 928. She was hired in June 1989 as an hourly-paid English teacher until March 15, 1990. Her allegations included preventing employee socialization to avoid union formation, not furnishing a contract copy, stiff penalties for tardiness, a 15-minute lunch break, prohibiting employees from eating in adjoining restaurants, and hitting a teacher. She cited unauthorized deductions: P1,000 cash bond, P460 for books, and P1,500 for tardiness. She claimed unpaid wages from March 15 to September 15, 1990, at P3,000 per month (P21,000 total), constructive dismissal by withdrawal of her subject loads, and non-payment for weekend and holiday work. Petitioners filed a counter-complaint for abandonment and violation of contract, seeking damages, alleging she failed to report for work in summer 1990. The labor arbiter found merit only in the claims for illegal deduction, 13th month pay, unpaid wages, and legal holiday pay, ordering petitioners to pay P11,335.96 plus attorney’s fees, and dismissed the counter-complaint. The arbiter ruled illegal dismissal was not pleaded, the acts did not constitute unfair labor practice, PD 525 and 928 were inapplicable, no overtime was rendered, but awarded P240 for holiday pay, P3,000 balance of unpaid wages for March 15 to April 12, 1990, reimbursement of P460 for books and P1,000 cash bond, and P6,635.96 as 13th month pay for 1989 and 1990. Both parties appealed to the NLRC, which affirmed the decision.

ISSUE

1. Whether the computation of the 13th month pay award was correct.
2. Whether petitioners are entitled to damages for alleged abandonment by private respondent.

RULING

1. The computation of the 13th month pay was incorrect. Following the Revised Guidelines on the Implementation of PD 851, the 13th month pay is one-twelfth (1/12) of the total basic salary earned within a calendar year. For 1989, where private respondent earned P7,319.00 for 6 months of service, her 13th month pay should be P610.00 (P7,319.00 / 12). For 1990, where she earned P10,205.00 for 3 months of service, her 13th month pay should be P850.00 (P10,205.00 / 12). The total correct award is P1,460.00, not P6,635.96. The Court rectified this palpable error.
2. Petitioners are not entitled to damages for abandonment. The NLRC upheld the labor arbiter’s finding that private respondent’s failure to report for work was due to petitioners’ failure to pay her salaries and their non-observance of labor standard laws, such as not keeping required payrolls and records. Applying the principle that “he who comes to court must do so with clean hands,” petitioners were not deserving of the remedial relief sought. The counter-complaint was correctly dismissed.
The assailed NLRC decision was AFFIRMED with MODIFICATION, reducing the 13th month pay award to P1,460.00.