G.R. No. 172295 , December 23, 2008
LILIA P. LABADAN, petitioner, vs. FOREST HILLS ACADEMY/NAOMI CABALUNA and PRESIDING COMMISSIONER SALIC B. DUMARPA, COMMISSIONER PROCULO T. SARMEN, COMMISSIONER NOVITO C. CAGAYAN, respondents.

FACTS

Petitioner Lilia P. Labadan was hired by Forest Hills Academy in July 1989 as an elementary school teacher and later served as registrar and secondary school teacher from 1990 to 2002. On August 18, 2003, she filed a complaint for illegal dismissal, non-payment of overtime pay, holiday pay, allowances, 13th month pay, service incentive leave, illegal deductions (specifically tithes to the Seventh Day Adventist church), and damages. She claimed her leave of absence, though extended beyond the approved period, was impliedly approved as she received no reprimand and was retained in the payroll until 2002. She also alleged non-remittance of SSS contributions. Forest Hills countered that petitioner failed to return to work after her approved leave in July 2001 and only attempted to return when classes for the next school year were ongoing, necessitating the hiring of a temporary replacement. It asserted that tithe deductions were with her consent as a church member and that she provided no evidence for other monetary claims. The Labor Arbiter ruled in favor of Labadan, declaring illegal dismissal and awarding monetary benefits. The NLRC reversed, dismissing the complaint. The Court of Appeals dismissed Labadan’s Petition for Certiorari on technical grounds (deficient docket fee, non-attachment of Affidavit of Service, lack of written explanation for service by registered mail, and non-attachment of Complaint and Answer). Labadan elevated the case to the Supreme Court via a Petition for Review on Certiorari.

ISSUE

1. Whether the Court of Appeals erred in dismissing the petition on technicalities.
2. Whether the NLRC committed grave abuse of discretion in reversing the Labor Arbiter’s finding of illegal dismissal.
3. Whether petitioner is entitled to her money claims (holiday pay, service incentive leave, 13th month pay, overtime pay, allowances, refund of illegal deductions, and remittance of SSS contributions).

RULING

1. The Supreme Court set aside the Court of Appeals’ dismissal on technicalities, ruling that non-payment of the full docket fee does not automatically warrant dismissal if paid within the reglementary period. Although petitioner paid the deficiency after the 60-day period for certiorari, the Court, in the interest of substantial justice, brushed aside the technicalities and decided the case on the merits.
2. The NLRC did not commit grave abuse of discretion. Petitioner failed to substantiate the fact of dismissal, whether actual or constructive. The records showed she was absent beyond her approved leave from July 2001 to March 2002 but was still considered a faculty member and retained in the payroll. Her claim of constructive dismissal—that her class was merged—was refuted by Forest Hills’ showing that classes for the next school year had already begun when she attempted to return, and she could have resumed her registrar duties. Her affidavits and those of colleagues lacked particulars on when and how she was dismissed. Thus, she was not illegally dismissed and is not entitled to separation pay or backwages.
3. Petitioner’s money claims were partially granted:
* Holiday Pay and Service Incentive Leave: Granted. Under Article 94 of the Labor Code, a worker is entitled to regular holiday pay even if not required to work. Under Article 95, she is entitled to service incentive leave of five days with pay after one year of service.
13th Month Pay: Granted under Presidential Decree No. 851.
Overtime Pay and Allowances: Denied for lack of concrete proof.
* Illegal Deductions (Tithes): Granted. The deduction of 10% tithe from her salary was illegal under Article 113 of the Labor Code and its implementing rules, as there was no written authorization from petitioner.
* Non-remittance of SSS Contributions: Granted. The burden of proving payment or remittance rests on the employer (Forest Hills), which failed to address this claim.
* Attorney’s Fees: Granted equivalent to 10% of the final judgment award, as petitioner was compelled to litigate.
The Supreme Court granted the petition in part, ordering Forest Hills to refund the illegal deductions, pay holiday pay, service incentive leave pay, 13th month pay, remit SSS contributions, and pay attorney’s fees. The case was remanded to the Labor Arbiter for computation of the monetary awards.