The Supreme Court granted the petition of a group of textile workers and ruled that they were constructively dismissed by Fibertextile Manufacturing Corp. (FMC), reversing the Court of Appeals. The Court ordered FMC to pay the affected workers full backwages, separation pay, and other monetary awards.
The Case
The petitioners were Andro T. Bacani, Ronald F. Cabrera, Camesoro T. Cabatuan, Jr., Jayson D. Delara, Raule R. Arguel, Re-ann D. Rivero, Crizaldy N. Waje, Ariel Y. Sua, and Charlie R. Sebolino. The respondents were Fiber Textile Manufacturing Corp. (FMC), Sherly Que, Judy Que, and Jason Que. Sherly is the president while Judy and Jason are the human resource manager and plant manager, respectively, of FMC.
FMC is engaged in textile manufacturing, with its factory located at Meycauayan, Bulacan and its administrative office and warehouse formerly located at Valenzuela City. On June 16, 2017, the petitioners were employed by FMC in roles such as folding operator, chemical mixer, color man, receiver, and dyeing operator, with a salary of PHP 380.00 per day. They initially had a six-day workweek, which was later reduced to two to three days per week, prompting them to seek the assistance of the Department of Labor and Employment (DOLE), Malolos.
According to the decision, on July 27, 2018, the petitioners went to FMC's premises but Judy angrily told some of them to look for another job while telling others to resign. FMC, on the other hand, said its Valenzuela City compound became the subject of a pending ejectment case, that access to its warehouse raw materials was denied, and that production in Bulacan was gravely affected. As a remedy, FMC said it issued Company Memo - 81 on July 16, 2018, implementing a temporary work rotation schedule until raw materials could be delivered. FMC argued that no illegal dismissal occurred and that the petitioners abandoned their posts.
The Labor Arbiter found that Bacani, Cabrera, Delara, Arguel, Waje, Sua, and Sebolino were constructively dismissed, while the complaints of Cabatuan, Jr. and Rivero were dismissed for failure to file their position papers. The National Labor Relations Commission (NLRC) reversed and dismissed the complaint for constructive dismissal, and the Court of Appeals affirmed the NLRC.
The Issue
The question before the Court was whether the petitioners were constructively dismissed by FMC.
The Ruling
The Court held that the petitioners were constructively dismissed. It disposed: "ACCORDINGLY, the Petition is GRANTED. The Decision dated April 28, 2023 and Resolution dated January 17, 2024 of the Court of Appeals in CA-G.R. SP No. 165065 are REVERSED. Respondent Fibertextile Manufacturing Corp. is liable for the constructive dismissal of petitioners Andro T. Bacani, Ronald F. Cabrera, Jayson D. Delara, Raule R. Arguel, Crizaldy N. Waje, Ariel Y. Sua, and Charlie R. Sebolino."
FMC was ordered to pay these petitioners full backwages inclusive of allowances and all other benefits from the time of their dismissal up to the 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, computed from the date they were constructively dismissed up to the finality of the Decision; and attorney's fees equivalent to 10% of the total monetary awards. The total monetary awards shall earn 6% legal interest per annum from the finality of the Decision until fully paid.
By the Numbers
- Daily salary: PHP 380.00 per day
- Date of employment: June 16, 2017
- Workweek reduced from six days to two to three days per week
- Company Memo - 81 issued: July 16, 2018
- Attorney's fees: 10% of the total monetary awards
- Legal interest: 6% per annum from finality until fully paid
- CA Decision reversed: April 28, 2023; Resolution: January 17, 2024
- G.R. No. 271518; CA-G.R. SP No. 165065
The Court's Reasoning
The Court explained that constructive dismissal exists when continued employment is rendered impossible, unreasonable, or unlikely; when there is a demotion in rank or diminution in pay or both; or when a clear discrimination, insensibility, or disdain by an employer becomes unbearable to the employee. Here, the petitioners suffered a decrease in their pay due to the adoption by FMC of rotation of workers and reduction of work days, rendering their continued employment unreasonable or unlikely. The petitioners were quick to seek assistance from DOLE regarding the reduction of their workweek.
The Court noted that the petitioners were shunned from work on July 27, 2018 after they sought assistance from the DOLE. It said it was incumbent upon FMC to prove that the termination was for a valid or authorized cause, but it did not. The Court rejected FMC's claim of abandonment, holding that apart from bare allegations, FMC did not submit evidence of the petitioners' intent to sever their employment, and that an employee who takes steps to protest a dismissal cannot be said to have abandoned work.
The Court affirmed the dismissal of the complaint with respect to Cabatuan, Jr. and Rivero for failure to file their position papers. Because of strained relations found by the labor arbiter, separation pay was awarded in lieu of reinstatement. The Court also reinstated the awards of proportionate 13th month pay, service incentive leave pay, and attorney's fees.
Source: Supreme Court Decision in G.R. No. 271518, penned by Justice Lazaro-Javier.
This report summarizes a public Supreme Court decision and is not legal advice.