G.R. No. 74806 . January 9, 1989.
SM AGRI AND GENERAL MACHINERIES, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (Third Division), EXECUTIVE LABOR ARBITER, REGION V, THE PROVINCIAL SHERIFF OF ALBAY, or any of his deputies, and VIVENCIO ABO, respondents.

FACTS

Private respondent Vivencio Abo was employed by petitioner SM Agri and General Machineries until his termination on May 31, 1982. He filed a complaint for illegal dismissal. The Labor Arbiter rendered a decision on March 29, 1984, ordering his reinstatement with backwages and awarding monetary claims. Petitioner received a copy of this decision on April 10, 1984.
Petitioner filed an appeal via registered mail on April 23, 1984. The National Labor Relations Commission (NLRC) dismissed the appeal in a resolution dated November 29, 1985, ruling it was filed out of time. The NLRC computed the ten-day reglementary period under Article 223 of the Labor Code from April 10, 1984, making the last day to appeal April 20, 1984. Since the appeal was filed on the 13th calendar day, it was deemed late. The NLRC cited the Vir-Jen Shipping doctrine, which holds that the ten-day period refers to calendar days, not working days. Petitioner’s motion for reconsideration was denied.

ISSUE

Whether the NLRC committed grave abuse of discretion in dismissing the appeal for being filed out of time.

RULING

Yes. The Supreme Court granted the petition, annulling the NLRC resolutions. The legal logic centers on the proper computation of the appeal period when the last day falls on a legal holiday. While the Court reaffirmed the Vir-Jen Shipping ruling that the ten-day period under Article 223 of the Labor Code refers to calendar days, it carved out a clear exception based on Section 31, Chapter VIII of the Revised Administrative Code. This provision states that when the last day for doing an act required by law falls on a holiday, the act may be performed on the next succeeding business day.
In this case, petitioner received the decision on April 10, 1984. The tenth calendar day was April 20, 1984, which was Good Friday, a legal holiday. The following day, April 21, was a Saturday declared a non-working public holiday. Therefore, the next business day was Monday, April 23, 1984, the date petitioner filed the appeal. The NLRC erred in strictly applying the calendar-day rule without considering the statutory exception for holidays coinciding with the deadline. The Vir-Jen doctrine applies when holidays fall within the ten-day period, not when the holiday is the last day itself. Consequently, the appeal was timely filed, and the NLRC should have resolved it on its merits. The case was remanded to the NLRC for proper proceedings.