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ERWIN H. REYES, Petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, COCA-COLA BOTTLERS PHILS. and/or ROTAIDA TAGUIBAO, Respondents.
FACTS
Petitioner Erwin H. Reyes filed a Complaint for illegal dismissal with claims for damages and attorney’s fees against respondents Coca-Cola Bottlers Philippines (CCBP) and its Human Resource Manager, Rotaida Taguibao. Petitioner alleged he was first employed by CCBP through an agency in 1988, and was later directly hired as a Route Salesman on September 15, 2000. He was terminated on September 15, 2001. He asserted he was a regular employee dismissed without due process. Respondents contended his employment was for a fixed period under a “mini-bodega project” that was discontinued after being found unviable, and his contract simply expired. The Labor Arbiter ruled in favor of petitioner, ordering reinstatement, full backwages, and attorney’s fees, noting respondents failed to present a copy of the employment contract to prove fixed-term employment. Respondents reinstated petitioner but appealed the monetary award. The NLRC modified the Labor Arbiter’s decision by deleting the reinstatement order (due to the confidential nature of the salesman position), reducing the backwages (computing from the filing of the complaint instead of dismissal due to petitioner’s delay in filing), and deleting the attorney’s fees. Petitioner filed a Petition for Certiorari before the Court of Appeals. The CA dismissed the petition for failure to provide a written explanation why service of the petition was not done personally upon respondents’ counsel, as required by Section 11, Rule 13 of the Rules of Court. Petitioner’s motion for reconsideration was denied for being filed out of time. Petitioner then filed the present Special Civil Action for Certiorari before the Supreme Court.
ISSUE
1. Whether the Court of Appeals gravely abused its discretion in not excusing petitioner’s procedural lapses.
2. Whether the NLRC gravely abused its discretion in reducing the amount of backwages awarded, computed from the time the complaint for illegal dismissal was filed.
3. Whether the NLRC gravely abused its discretion in ordering the payment of separation pay in lieu of reinstatement.
4. Whether the NLRC gravely abused its discretion in deleting the award for attorney’s fee.
RULING
1. On the procedural lapse: The Supreme Court ruled in favor of the petitioner. While the requirement for a written explanation for non-personal service is mandatory, the Court held that rules of procedure should be liberally construed to promote substantial justice, especially in labor cases where the constitutional policy is to afford protection to labor. The negligence of petitioner’s former counsel should not bind the client under the circumstances, as the issues raised were meritorious and dismissal on a technicality would defeat substantial justice. The Court excused the procedural lapses.
2. On the reduction of backwages: The NLRC committed grave abuse of discretion. The Court held that backwages in illegal dismissal cases should be computed from the time of dismissal until actual reinstatement. The NLRC’s reduction of backwages, reckoning it only from the filing of the complaint due to petitioner’s alleged delay, had no legal basis. The filing of the complaint is not a controlling factor for computing backwages. The Labor Arbiter’s computation from the date of dismissal was reinstated.
3. On separation pay in lieu of reinstatement: The NLRC committed grave abuse of discretion. The Court held that the NLRC’s deletion of the reinstatement order, citing the confidential nature of the salesman position, was not a valid ground. Loss of trust and confidence must be based on willful breach of trust by an employee charged with fiduciary functions. Mere access to company property or funds does not automatically make a position confidential. The Labor Arbiter’s order of reinstatement was reinstated.
4. On the deletion of attorney’s fees: The NLRC committed grave abuse of discretion. The Court held that in illegal dismissal cases, the award of attorney’s fees is proper under Article 111 of the Labor Code, as the employee was forced to litigate to secure his rightful compensation. The Labor Arbiter’s award of attorney’s fees equivalent to 10% of the total monetary award was reinstated.
The Supreme Court granted the petition, reversed and set aside the Resolutions of the Court of Appeals, and reinstated the Decision of the Labor Arbiter with modification that the monetary awards be recomputed if necessary.
