GR 77205; (May, 1991) (Digest)
G.R. No. 77205 ; May 27, 1991
VALENTINO TORILLO, petitioner, vs. VICENTE LEOGARDO, JR., in his official capacity as Deputy Minister of Labor; the HONORABLE MINISTER OF LABOR AND EMPLOYMENT; and ABERDEEN COURT, INC., respondents.
FACTS
Petitioner Valentino Torillo was employed as an organist by Aberdeen Court, Inc. On July 2, 1978, he celebrated his birthday despite management’s request for employees not to attend, as the next day was a workday. He reported for work on July 3 but was dismissed on July 4 for defying the order. Torillo filed a complaint for illegal dismissal. The Labor Regional Director found the dismissal illegal, ordering reinstatement with full backwages. On appeal, the Deputy Minister of Labor affirmed the illegality but modified the award, granting separation pay in lieu of reinstatement, as reinstatement was no longer feasible after years of litigation.
Subsequently, a writ of execution was issued for backwages and separation pay. However, the Deputy Minister later issued a clarifying order stating the affirmative relief did not include backwages, quashing the writ. The Minister of Labor denied Torillo’s motion for reconsideration, prompting this petition.
ISSUE
Whether an employee who is illegally dismissed and awarded separation pay in lieu of reinstatement is also entitled to an award of backwages.
RULING
Yes. The Supreme Court granted the petition, ruling that an illegally dismissed employee is entitled to both backwages and separation pay when reinstatement is no longer viable. The legal logic is grounded in the distinct purposes of the two awards. Backwages are granted to compensate for earnings lost due to the illegal dismissal from the date of termination until the finality of the decision. Separation pay, when awarded in lieu of reinstatement, is intended to provide financial assistance to help the employee during the period of transition and loss of employment. These remedies are not mutually exclusive but are complementary.
The Court clarified that the award of separation pay does not negate the right to backwages. To hold otherwise would unjustly enrich the employer who committed the illegal act. The ruling is consistent with the constitutional mandate to afford full protection to labor. Consequently, the Court computed the total monetary award due to Torillo, encompassing backwages (limited to three years without qualification or deduction), separation pay, holiday pay, and unpaid wages. The decision was modified to order private respondent to pay petitioner the total sum of P146,255.37.