G.R. No. 117963 February 11, 1999
AZCOR MANUFACTURING INC., FILIPINAS PASO and/or ARTURO ZULUAGA/Owner, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION (NLRC) AND CANDIDO CAPULSO, respondents.

FACTS

Petitioners Azcor Manufacturing, Inc. (AZCOR), Filipinas Paso, and Arturo Zuluaga filed a petition for certiorari to assail the Decision of the National Labor Relations Commission (NLRC) which reversed the Labor Arbiter’s dismissal of the complaint filed by respondent Candido Capulso. Capulso filed a complaint for constructive illegal dismissal and illegal salary deductions against AZCOR and Arturo Zuluaga, later amending it to include Filipinas Paso. Capulso’s evidence showed he worked for AZCOR as a ceramics worker from April 3, 1989, to June 1, 1991, receiving a daily wage of P118.00 plus benefits, with P50.00 per day deducted from his salary from April to September 1989 without explanation. In February 1991, due to bronchial asthma caused by his work, he requested and was approved for sick leave. Upon his return on June 1, 1991, he was not allowed to resume work and was told only the owner, Arturo Zuluaga, could permit it. After being refused reinstatement multiple times, he filed the complaint. His documentary evidence included an affidavit, an AZCOR identification card, SSS documents, and payslips from AZCOR. Petitioners alleged Capulso resigned from AZCOR on February 28, 1990, joined Filipinas Paso on March 1, 1990, and later resigned from Filipinas Paso on March 1, 1991, due to failing health. Their evidence included a sworn statement from supervisor Emilia Apolinaria, a contract of employment with Filipinas Paso, resignation letters, and BIR forms. The Labor Arbiter dismissed the illegal dismissal complaint but ordered a refund of P200.00 in illegal deductions. On appeal, the NLRC reversed, declaring the dismissal illegal, ordering reinstatement with back wages, and holding petitioners jointly and solidarily liable. During the pendency of the case before the Supreme Court, Capulso died.

ISSUE

Whether the NLRC committed grave abuse of discretion in declaring that private respondent Candido Capulso was illegally dismissed and in holding petitioners jointly and solidarily liable for back wages.

RULING

The Supreme Court dismissed the petition, finding no grave abuse of discretion by the NLRC. The NLRC’s factual findings, supported by substantial evidence, were entitled to respect. The Court held that Capulso’s actions of seeking to resume work after his illness and pursuing the illegal dismissal case negated any intention to relinquish his job, thus the alleged resignations were not valid. The resignation letters were suspicious, being identically worded and containing inconsistent dates, indicating bad faith by the petitioners to circumvent labor laws. The Court found that AZCOR and Filipinas Paso were engaged in labor-only contracting, making them solidarily liable as employers. However, since Capulso died during the pendency of the case, reinstatement was no longer feasible. The NLRC decision was modified: petitioners AZCOR Manufacturing, Inc., Filipinas Paso, and Arturo Zuluaga were ordered to pay, jointly and solidarily, the heirs of Candido Capulso back wages (computed from his illegal dismissal until his death) and separation pay.