The Supreme Court dismissed a petition filed by ABC-RMO Security & Investigation Agency, Inc. and its General Manager Jaime J. Juadines, and affirmed with modification a Court of Appeals ruling that a security guard, Louejie G. Bautista, was constructively dismissed from service. The Court ordered the agency to pay Bautista full backwages, separation pay, and moral and exemplary damages, while deleting the award of attorney's fees.
The Case
The dispute stems from consolidated cases for constructive dismissal, non-payment and underpayment of salary, service incentive leave pay, night shift differential pay, rest day pay, 13th month pay, moral and exemplary damages, and attorney's fees filed by Bautista, Angie A. Guiritan, Red L. Morallos, and Christopher B. Balmadres against ARSIA and Juadines. The complainants worked as security guards for ARSIA, a business entity engaged in providing security services, while Juadines is ARSIA's General Manager.
Bautista alleged that he was hired by ARSIA as a security guard on October 4, 2017 and was previously assigned to the old Seedling Bank Foundation in Quezon City. After January 31, 2021, the complainants no longer rendered service to ARSIA. On February 1, 2021, ARSIA informed Bautista that it failed to secure a bid for another contract at his original assignment. When they inquired about their employment, Juadines told them to resign since ARSIA no longer had available work for them.
On March 1, 2021, Guiritan lodged a Request for Assistance under the Single-Entry Approach (SEnA) with the National Labor Relations Commission (NLRC). On July 8, 2021, Guiritan, Morallos, and Balmadres filed a case for constructive illegal dismissal, full backwages, and non-payment of other money claims. Bautista followed on July 12, 2021. These cases were later consolidated.
For their part, ARSIA and Juadines averred that Bautista was reassigned on March 30, 2021 to High Street South Corporate Plaza Towers, but did not show up and was absent without leave (AWOL) since March 31, 2021. They maintained the complainants were not illegally dismissed but were dismissed based on just cause for abandonment of work.
The Issue
The Court resolved whether Bautista was constructively dismissed and, if so, what monetary awards were due to him, as well as whether the General Manager could be held personally liable.
The Ruling
The Court dismissed the petition. Its final disposition reads: "ACCORDINGLY, the Petition for Certiorari filed by petitioners ABC-RMO Security & Investigation Agency, Inc. and Jaime J. Juadines is DISMISSED. The Decision dated April 14, 2025 Decision in CA-G.R. SP No. 176572 is AFFIRMED with MODIFICATION."
ABC-RMO Security & Investigation, Inc. was ordered to pay Louiejie G. Bautista full backwages, inclusive of allowances and other benefits or their monetary equivalent, computed from the date when Bautista was constructively dismissed until finality of the Decision; separation pay equivalent to one month pay for every year of service, with a fraction of at least six months considered as one whole year; moral damages in the amount of PHP 25,000.00; and exemplary damages in the amount of PHP 25,000.00.
The agency was also held liable for legal interest at 6% per annum of the monetary awards, computed from the date of finality of the Decision until full satisfaction. The case was remanded to the arbitration branch a quo for a detailed computation of the amounts due to Bautista and for the execution of the Decision.
By the Numbers
- October 4, 2017 — date Bautista was hired as a security guard.
- January 31, 2021 — after this date, complainants no longer rendered service to ARSIA.
- March 30, 2021 — date ARSIA claimed Bautista was reassigned to High Street South Corporate Plaza Towers.
- PHP 25,000.00 — moral damages.
- PHP 25,000.00 — exemplary damages.
- 6% per annum — legal interest from finality until full satisfaction.
- April 14, 2025 — date of the affirmed CA Decision in CA-G.R. SP No. 176572.
The Court's Reasoning
The Court held that while reinstatement is a normal consequence of illegal dismissal, separation pay equivalent to one month for every year of service is awarded as an alternative when reinstatement is no longer viable, such as when the employer-employee relationship has been strained or when considerable time has lapsed. Considering the lapse of five years since Bautista's filing of his complaint and his prayer for separation pay in view of strained relations with ARSIA, the award of separation pay in lieu of reinstatement was proper.
The Court affirmed the award of moral and exemplary damages, noting that the circumstances of the constructive dismissal were attended by bad faith and that ARSIA's actions were oppressive to labor. ARSIA tried to mask the constructive dismissal as a dismissal for just cause by accusing Bautista of abandoning his post, justifying this through an Office Order, Delinquency Report, and Notices to Report later revealed to be not sent to Bautista at all, or belatedly sent as an afterthought after a SEnA request was lodged by his co-complainant Guiritan.
The award of attorney's fees was deleted for lack of legal basis, as the filing of the petition did not compel Bautista to litigate with third persons under Article 2208(2) of the Civil Code. The Court also absolved Juadines from liability, explaining that corporate officers are solidarily liable with the corporation only if the termination is done with malice or in bad faith, and there was no showing that he acted with malice toward Bautista.
Source: Supreme Court Decision, G.R. No. E-00411.
This report summarizes a public Supreme Court decision and is not legal advice.