G.R. No. 202542, December 09, 2020
Angono Medics Hospital, Inc., Petitioner, vs. Antonina Q. Agabin, Respondent.

FACTS

Respondent Antonina Agabin was a staff midwife at petitioner Angono Medics Hospital, Inc. (AMHI). Her approved leave of absence for school requirements ended on September 15, 2007, and she reported back for duty, being included in the work schedule. However, on September 19, 2007, AMHI’s former president, Andres Villamayor, berated her and ordered her not to report for work anymore. Agabin was thus effectively dismissed. She filed a complaint for illegal dismissal. AMHI denied dismissal, claiming abandonment.
The Executive Labor Arbiter ruled Agabin was illegally dismissed, awarding full backwages and separation pay in lieu of reinstatement. The NLRC affirmed the illegal dismissal but modified the award, limiting backwages and separation pay only until January 16, 2008, the date AMHI allegedly offered reinstatement during a hearing, which Agabin rejected. The Court of Appeals reversed the NLRC’s modification, reinstating the Labor Arbiter’s award of full backwages until finality of the decision and separation pay computed up to the same point.

ISSUE

Whether the Court of Appeals erred in awarding full backwages and separation pay computed until the finality of the decision, despite Agabin’s alleged rejection of a reinstatement offer during the proceedings.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals. The legal logic is anchored on the consequences of illegal dismissal under Article 279 of the Labor Code and the nature of a valid offer of reinstatement. An employee illegally dismissed is entitled to reinstatement without loss of seniority rights and to full backwages computed from the time compensation was withheld until actual reinstatement. When reinstatement is no longer viable, separation pay is awarded in lieu thereof.
For an offer of reinstatement to toll the continuing accrual of backwages, it must be actual and unqualified, not a mere pro forma offer made during litigation. The Court found AMHI’s alleged offer during the January 16, 2008 hearing was not a bona fide offer of reinstatement. It was made in the context of a compulsory conference, not accompanied by a clear written order or any concrete steps to return Agabin to work. AMHI never actually readmitted her. Furthermore, the strained relations between the parties, exacerbated by the dismissal, made reinstatement impracticable. Agabin’s acceptance of separation pay in her pleadings constituted a valid election of this relief in lieu of reinstatement. Consequently, her backwages rightfully accrued until the finality of the decision, and separation pay was correctly computed up to that same point, as the employment relationship is deemed to have continued until the case’s final resolution.