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XIII - 5. Reliefs; Remedies in Illegal Dismissal - Coggle Diagram

- - - - Effect of Failure to ask Relief - Only a procedural lapse. Will not prevent reinstatement, which is a substantive right. So long sa there is a finding of illegal dismissal. (Pheschem)
        
        Exception - Reinstatement is a general rule. Thus, exceptions of grant of separation pay in lieu of reinstatement only in very specific circumstances. (Pheschem v. Moldez)
        
        Closure of Business- Backwages are computed from the time of illegal termination up to cessation of business operations. (Retuya v. Hon. Dumarpa)
        
        Economic Business Conditions - Remedy of reinstatement must be adapted to economic business conditions. (NATU v. SOLE)
        
        Employee's Retirement/Overage - Backwages here computed from time of illegal dismissal up to compulsory retirement (The New Phil. Skylanders, Inc. v. Dakila).
        
        Antipathy/Antagonism-Strained Relations
        
        2 more items...
        
        Retirement Pay - Here however, entitled.
        
        Substantial Change in Structure - Not equivalent to closure. Still entitled to reinstatement to previous position or substantially equivalent. (NATU v. SOLE)
        
        Pheschem v. Moldez
        
        **Reasons exist**- which are not attributable to the fault or beyond the control of the employer, such as, when the employer, who is in severe financial strait and has suffered serious business losses, has ceased operations, implemented retrenchment, or abolished the position due to the installation of labor-saving devices;
        
        **Disease** - when the illegally dismissed employee has contracted a disease and his reinstatement will endanger the safety of his co-employees; or,
        
        **Strained Relationship -** where strained relationship exists between the employer and the dismissed employee
        
        Fernandez Jr. v. MERALCO
        
        when reinstatement can no longer be effected in view of the passage of a long period of time or because of the realities of the situation;
        
        reinstatement is inimical to the employer's interest;
        
        reinstatement is no longer feasible;
        
        reinstatement does not serve the best interests of the parties involved;
        
        the employer is prejudiced by the workers' continued employment;
        
        facts that make execution unjust or inequitable have supervened; or
        
        strained relations between the employer and employee
        
        Other Employment - If an employee is illegally dismissed, backwages due to them should not be reduced if they work at another company during the period of the judicial proceedings. (Retuya v. Dumarpa)
      - When Applicable - to all employees that have security of tenure i.e. everyone, even contractual, fixed-term, etc. Security of tenure within the period of employment cannot be dismissed without just or authorized causes.
      - If Position no Longer Exists - must be given a substantially equivalent position in the same establishment.
        
        Separation Pay - Only if reinstatement not allowable. (LC 297, Just Causes)
        
        Amount
        
        REDUNDANCY: 1 month sep pay OR 1 month/year of service
        
        RETRENCHMENT: 1 month sep pay OR ½ month/year of service
        
        No Separation Pay - if closure due to business losses.
        
        XCPN - Retrenchment - If reinstatement is no longer feasible, separation pay is same amount as redundancy. (Anias v. NLRC)
        
        Salaries - Employees are entitled to salaries pending final disposition of the case, if there is an initial order of reinstatement.
    - - Payroll Reinstatement - Either admitted back to work OR at the option of the employer, merely reinstate in the payroll pending appeal. (LC 229)
        
        No Refund Doctrine - Even if order of reinstatement is reversed on appeal, obligation of employee to reinstate pending appeal. Thus, no refund can be claimed from wages paid during that time period. (Pfizer v. Velasco)
        
        Reinstatement as an Interim Relief - Applicable when there is a decision of reinstatement of LA/NLRC. This is reinstatement pending appeal.
        
        Reinstatement Backwages - Duty of employee to reinstate as it is a matter of right so long as there is a decision of reinstatement.
  - - - Liability of Backwages, Tempered (La Consolacion)
        
        Effect of Failure to claim - Backwages is a substantive right. Thus, claim for reinstatement and backwages cannot be waived due to failure to claim. (De la Cruz v. NLRC)
        
        Effect of Failure to order - Failure of LA and NLRC to award backwages. Even if the backwages not ordered by the lower courts, they are still entitled as a matter of right. This is because plain error not specified.(Aurora v. NLRC)
        
        Exception - SC can rule on unassigned errors:
        
        Plain errors, not specified
        
        Clerical Errors
        
        Errors affecting the lower court's jurisdiction over the subject matter.
        
        General Rule - A party who has not appealed is not entitled to affirmative relief other than the ones granted in the decision of the lower court.
        
        Backwages not an alternative to reinstatement. Note classes of separation pay.
        
        Computation of Backwages - By the very nature of Illegal Dismissal, computation reliefs continue to add up until full satisfaction.
        
        Fringe Benefit - All benefits, inclusive of CBA benefits provided that they were benefits prior to the termination. (United Coconut Chemicals v. Valmores)
        
        Dismissal with Just Cause (Villarama v. National Labor Relations Commission) - Case involved dismissal for just cause. SC held that Petitioner is entitled, however, to his unused vacation/sick leave and proportionate 13th month pay, as held by the labor arbiter. These are monies already earned by petitioner and should be unaffected by his separation from the service
        
        Recomputation - Recomputation of backwages will be up to the final resolution of the case if there has been no prior reinstatement.
        
        Proof of Date - There must be a specific date alleged as to when the employee tried to come back. Int he absence of this, computation is dated from the time the complaint was filed up to finality of decision. (Protective Maximum Security Agency v. Fuentes)
        
        Basis for Computation (U-Bix v. NLRC)
        
        1. When reinstatement is ordered - computes the backwages from the time of dismissal until the employee's reinstatement. The computation of backwages (and similar benefits considered part of the backwages) can even continue beyond the decision of the labor arbiter or NLRC and ends only when the employee is actually reinstated.
        
        Separation pay is ordered instead of reinstatement (this aspect in the case is disputed) or reinstatement is waived by the employee (separation pay is not disputed) - backwages is computed from the time of dismissal until the finality of the decision ordering separation pay.
        
        3. Separation pay is ordered after the finality of the decision ordering the reinstatement by reason of a supervening event that makes the award of reinstatement no longer possible - backwages is computed from the time of dismissal until the finality of the decision ordering separation pay.
        
        Good Faith - when termination in good faith and circumstances such as prohibitive financial conditions warrant a reduction of backwages.
      - Dismissal would be too harsh a penalty;
        
        Employer was in good faith in terminating the employee i.e. there is basis to terminate.
        
        Penalty - This implies that employee has prior infraction but not sufficient to warrant dismissal.
  - - - c1. When proper - In all other circumstances of dismissal save LC 297.
        
        a. Legal Termination due to Authorized Causes; Exception
        
        b. In lieu of reinstatement - Separation pay here covers illegal dismissal where reinstatement cannot anymore be allowed. (LC 297)
        
        c. Financial Assistance as Separation; Social Justice (PLDT v. NLRC) - Only if the dismissal is under analogous causes under LC 297. Otherwise, no separation pay. This can cover inefficiency, etc.
        
        d. As an employment benefit under CBA or Company Policy (Paz v. Tobacco) - Here, separation pay calculated based on the
        
        Amount of Monthly Salary
        
        Years of Service
        
        Computation - 1/2 of monthly wage for last year of service multiplied by number of years of service. (LC 283-284)
        
        Serious Misconduct -
        
        Covers theft. (Reno Foods v. NLRC)
        
        RELAXATION - Digital Telecom v. Ayapana - It has been held that dismissal due to willful breach of trust peculiar circumstances may allow a grant of separation pay if no evidence of moral depravity.
        
        Possible Reasons (Jordan v. Grandeur)
        
        Strained Relations
        
        Employee opted not to be reinstated
        
        Position no longer available
        
        Other similar reasons established by law
        
        General Rule - Choice falls upon the employee to opt for separation pay. Reinstatement is a matter of right; Separation pay is an exception which must qualify with the above situations or other analogous circumstances.
        
        Exception - If employer opts they have burden of proving any of the above reasons.
        
        Legitimate Closure of Business due to losses - No Separation pay to be given.(NFL)
        
        c2. When Not Proper - When the dismissal is due to any of the circumstances enumerated under LC 297.
        
        c3. Computation/Rationale of Separation Pay Where reinstatement is no longer viable as an option, separation pay equivalent to one (1) month salary for every year of service should be awarded as an alternative. The payment of separation pay is in addition to payment of backwages. (NACAR v. Gallery)
        
        c4. Effect of Acceptance - The recognized and accepted doctrine is that a dismissed employee who has accepted separation benefits is not necessarily estopped from challenging the validity of his or her dismissal. Neither does it relieve the employer of legal obligations (Anino v. NRC)
        
        Applicable Amounts-
        
        REDUNDANCY: 1 month sep pay OR 1 month/year of service
        
        RETRENCHMENT: 1 month sep pay OR ½ month/year of service
        
        CLOSURE DUE TO LOSSES - No separation pay.
      - d. Indemnity - Violation of procedural due process gives right to indemnity in the form of nominal damages. (Agabon v. NLRC)
        
        e. Interest at 6% on total monetary awards - Payment of Interest - Basis of the interest rate as well as the accrual thereof: (NACAR v. Gallery)
        
        Stipulation of the parties
        
        In the absence of stipulation, 6% interest per annum to be computed from default
        
        When the judgment of the court awarding a sum of money becomes final and executory, the rate of legal interest shall be 6% per annum from such finality until its satisfaction
        
        f. Liability of Corporate Officers -
        
        General Rule: A corporation being a juridical entity, may act only through its directors, officers and employees. Obligations incurred by them, acting as such corporate agents are not theirs but the direct accountabilities of the corporation they represent.
        
        Exception: However,in certain exceptional situations, solidary liability may be incurred by corporate officers. In labor cases for instance, this Court has held corporate directors and officers solidarily liable with the corporation for the termination of employment of employees done with malice or bad faith. (Manarpis)
        
        Requisites - To hold a director or officer personally liable for corporate obligations, the 2 requisites must concur:
        
        It must be alleged in the complaint that the director or officer
        assented to patently unlawful acts of the corporation or that
        the officer was guilty of gross negligence or bad faith; and
        
        There must be proof that the officer acted in bad faith
    - - Extraordinary Attorney's Fees - LC 111 refer to these kind of fees, given to the worker. Payment to lawyer is ordinary attorney's fees.
      - Moral Damages - moral damages when the employer acted: (Montinola v. PAL)
        
        a) in bad faith or fraud - this can cover circumstances where there is damage to property/pecuniary loss
        
        b) in a manner oppressive to labor; or
        
        Manner of Termination - must be in an insulting or humiliating manner.
        
        c) in a manner contrary to morals, good customs, or public policy
        
        Attorney's Fees - Attorney's fees may be awarded only when the employee is illegally dismissed in bad faith and is compelled to litigate or incur expenses to protect his rights by reason of the unjustified acts of his employer.
        
        Exemplary Damages - In labor cases, the court may award exemplary damages if the dismissal was effected in a wanton, oppressive or malevolent manner(Montinola v. PAL)
        
        Proof - Must be proved by clear and convincing evidence, and that it must be attended by any of the above circumstances.