According to CBMI, the placing of respondents in a "floating status" due to unavailability of work has long been recognized as a valid exercise of management prerogative. It must be noted that Fernandez was one of those who filed the Motion for Execution of Decision68 dated May 28, 2012, which prayed for the issuance of a writ of execution of the LA and NLRC’s rulings. Rules of procedure should be viewed as mere tools designed to facilitate the attainment of justice; their strict and rigid application, which would result in technicalities that tend to frustrate rather than promote substantial justice, must always be eschewed.59. SP No. 20 MegaForce Security and Allied Services, Inc v. Lactao. 30 Lopez v. Irvine Construction Corp., 741 Phil. 63 Pacquing v. Coca-Cola Philippines, Inc., 567 Phil. 169173) promulgated just last week, i.e., June 5, 2009. The court may order its submission or correction, or act on the pleading if the attending circumstances are such that strict compliance with the Rule may be dispensed with in order that the ends of justice may be served; 3) Verification is deemed substantially complied with when one who has ample knowledge to swear to the truth of the allegations in the complaint or petition signs the verification, and when matters alleged in the petition have been made in good faith or are true and correct; 4) As to certification against forum shopping, non-compliance therewith or a defect therein, unlike in verification, is generally not curable by its subsequent submission or correction thereof, unless there is a need to relax the Rule on the ground of substantial compliance or the presence of special circumstances or compelling reasons; 5) The certification against forum shopping must be signed by all the plaintiffs or petitioners in a case; otherwise, those who did not sign will be dropped as parties to the case. 60 Altres, et al. 24 Servidad v. NLRC, supra note 9, at 527. - The bona-fide suspension of the operation of a business or undertaking for a … 10 Price v. Innodata Phils., Inc., supra, at 580. EQUITY issued ALSONS et al., a "bearer" promissory note for P 2M with a one-year maturity date. It expounded that in spite of the report-to-work order, the security guard was still constructively dismissed because he was not given another detail or assignment. 3 Penned by Commissioner Gregorio O. Bilog III, with Commissioner Pablo C. Espiritu Jr. concurring and Presiding Commissioner Alex A. Lopez on leave; id. Pursuant to the Section 13, Article VIII of the Constitution and the Division Chairperson’s Attestation, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division. Nonetheless, when the floating status lasts for more than six (6) months, the employee may be considered to have been constructively dismissed. It added that respondent offered to reinstate petitioner during the proceedings before the LA, but the said offer was rejected by the latter. 286. Nevertheless, respondent Quimba allowed them to proceed and directed respondent Lagrana to assign Rodolfo Lilia, a utility man on floating status, to oversee the sorting, counting, and bundling of the bags. 18 Dacles v. Millenium Erectors Corporation, supra note 7, at 560-561. I will update this page to give our insights. Management has already utilized all available options, which include placing its project employees on forced leave. It makes no sense for an employee to file a resignation letter solely based on an alleged promise that said employee would be later reinstated by the company. 267 (2013), The Lawphil Project - Arellano Law Foundation. IKSI cannot simply rely solely on the alleged decline in the volume of work for the ACT Project to support the temporary retrenchment of respondents. Subsequently, IKSI sent respondents separate notices dated May 27, 2010 informing them that due to the unavailability of new work related to the product stream and uncertainties pertaining to the arrival of new workloads, their project employment contracts would have to be terminated. DE LEON, JR., JESS VINCENT A. DELA PENA, RONAN V. ALAMILLO, ENNOH CHENTIS R. FERNANDEZ, FRITZ J. SEMBRINO, DAX MATTHEW M. QUIJANO, RODOLFO M. VASQUEZ, MA. 498, 523 (2015). And unfortunately, it is allowed by law. 608, 621 (2015). This act by IKSI indubitably brought respondents outside the realm of the project employees category. Just causes 2. 3 Penned by Commissioner Aurelio D. Menzon, with Commissioners Julie C. Rendoque and Violeta Ortiz-Bantug, concurring; rollo, Vol II, pp. Respondent could not rely on its letter requiring petitioner to report back to work to refute a finding of constructive dismissal.1âwphi1 The letters, dated November 5, 2010 and February 3, 2011, which were supposedly sent to petitioner merely requested him to report back to work and to explain why he failed to report to the office after inquiring about his posting status. 20-21. 29 ; manila bulletin (august 01, 2016) republic act no. SOCORRO D'MARIE T. INTING, ISMAEL R. GARAYGAY, EDSON S. SOLIS, MICHAEL A. REBATO, JAMES HORACE BALONDA, STEPHEN C. OLINGAY, DENNIS C. RIZON, JUNETH A. RENTUMA, HERNAN ED NOEL I. Hearing C. Termination by employee 1. Here, the NLRC ruled that respondents were project employees. The date of signing, which is the date of the issuance of the appointment shall be indicated below the signature and the initials of the appointing authority. Torrentira, Michael Ray B. Molde, Rodolfo M. Vasquez, Ma. Indeed, closure or suspension of operations for economic reasons is recognized as a valid exercise of management prerogative. Retrenchment is the severance of employment, through no fault of and without prejudice to the employee, which management resorts to during the periods of business recession, industrial depression, or seasonal fluctuations, or during lulls caused by lack of orders, shortage of materials, conversion of the plant to a new production program or the introduction of new methods or more efficient machinery, or of automation. Thus, labor contracts are placed on a higher plane than ordinary contracts since these are imbued with public interest and, therefore, subject to the police power of the State.12, Project employment contracts, which fix the employment for a specific project or undertaking, are valid under the law. He was never assigned to a particular client. This consequently created an uncertain situation which necessarily discouraged, if not altogether prevented, the employees from reporting, or determining when or whether to report for work. 29 Jurisprudence has settled that the period of temporary off-detail must not exceed six (6) months. In all such cases, the employer shall reinstate the employee to his former position without loss of seniority rights if he indicates his desire to resume his work not later than one (1) month from the resumption of operations of his employer or from his relief from the military or civic duty. I, pp. 737, 747 (2002). The Supreme Court explained the rationale of this provision to safeguard the welfare of employees and to minimize unemployment. IKSI then filed a Motion for Reconsideration, but the same was denied in a Resolution dated March 12, 2014. The case is hereby ordered REMANDED to the labor arbiter for the computation of the amounts due each petitioner. A mortgage rate lock float down is a type of mortgage product that offers borrowers both security and flexibility when interest rates fluctuate. 10151, entitled "An Act Allowing the Employment of Night Workers, thereby Repealing Articles 130 and 131 of Presidential Decree Number Four Hundred Forty-Two, as amended, otherwise known as The Labor Code of the Philippines," July 26, 2010. v. DARAB, supra. II, pp. 01, Renumbering of the Labor Code of the Philippines, as Amended, Series of 2015; pursuant to Section 5 of Republic Act No. The Court cannot just turn a blind eye to IKSI’s manifest bad faith in terminating respondents under the guise of placing them on a simple floating status. 202830, June 20, 2016, citing Altres, et al. Consolidated Plywood Industries summarily required its employees to sign applications for forced leave deliberately crafted to be without an expiration date, like in this case. 31 Id., citing PT&T v. NLRC, 496 Phil. In his Reply, 15 dated January 31, 2017, petitioner contended that the lack of service assignment for a continuous period of six (6) months is an authorized cause for the termination of the employee, who is then entitled to separation pay; and that respondent's offer of reinstatement was meant to negate an otherwise consummated act of illegal dismissal. Bar Questions and Answers Labor Law 1994 to 2006. Respondents Socorro D'Marie Inting, Ismael R. Garaygay, Edson S. Solis, Michael A. Rebato, James Horace Balonda, Stephen C. Olingay, Dennis C. Rizon, Juneth A. Rentuma, Hernan Ed Noel I. de Leon, Jr., Jess Vincent A. dela Pefia, Ronan V. Alamillo, Wendell B. Quiban, Aldrin 0. l, p. 70. Due process a. Twin-notice requirement b. Securityguardon floating statusvis-à-vis constructive dismissal. 94 In support thereof, CBMI cites Article 286 [95 of the Labor Code, to wit: ART. Due to the grim economic repercussions to the employees, IKSI must likewise bear the burden of proving that there were no other available posts to which the employees temporarily put out of work could be possibly assigned.41 Unfortunately, IKSI was not able to fulfill any of the aforementioned duties. In addition to his/her basic pay, Management may grant an additional incentive pay should the Employee exceed the Project quota.14, IKSI argued that based on the contract, it is undeniable that respondents’ employment was fixed for a specific project or undertaking, with its completion or termination clearly determined at the time of the employee’s engagement. 348, 362 (2004). 6418 s. no. Jurisprudence later added a fifth (5th) kind, the fixed-term employee. However, the Court may take cognizance of factual issues when the findings of fact and conclusions of law of the LA and/or the NLRC are inconsistent with those of the CA,7 as in the case at bar. In the NLRC’s Decision, only the following petitioners were included: Michael A. Rebato, Hernan Ed Noel L. de Leon, Jr., Wendell B. Quiban, Fritz Sembrino, Ismael R. Garaygay III, Edson S. Solis, Stephen Olingay, Ronan Alamillo, Jess Vincent A. dela Pefia, Dax Matthew M. Quijano, Juneth A. Rentuma and Socorro D'Marie T. Inting. at 158-164. An employee is not entitled to separation pay when he or she resigns … This is exclusive of the one (1) hour lunch break. CEB-SP No. 01, Renumbering of the Labor Code of the Philippines, as Amended, Series of 2015; pursuant to Section 5 of Republic Act No. In cases, therefore, where it is highly impractical to require all the plaintiffs to sign the certificate of non-forum shopping, it is sufficient, in order not to defeat the ends of justice, for one of the plaintiffs, acting as representative, to sign the certificate, provided that the plaintiffs share a common interest in the subject matter of the case or filed the case as a "collective" raising only one common cause of action or defense.63 Thus, when respondents appealed their case to the NLRC and the CA, they pursued the same as a collective body, raising only one argument in support of their rights against the illegal dismissal allegedly committed by IKSI. The main issue in this case is whether or not the CA committed an error when it reversed the NLRC, which declared that respondent employees, as mere project employees, were validly placed on floating status and, therefore, were not illegally dismissed. Yes, provided it is permitted under circumstances for a period of not more than six (6) months. It floats (changes) since it changes in correspondence with the open position (s). The Lawphil Project - Arellano Law Foundation. Costs on petitioner Innodata Knowledge Services, Inc. ANTONIO T. CARPIOAssociate JusticeChairperson. 859, 869 (1998). In any business venture, there are two resources which must be considered: capital and labor. IKSI likewise fell short in proving that the duration of the project was reasonably determinable at the time respondents were hired. If respondents were truly project employees, as IKSI claims and as found by the NLRC, then the termination date would have been uniform for all of them. Undaunted, the employees elevated the matter to the CA Cebu, alleging grave abuse of discretion on the NLRC’s part. The Supreme Court had the opportunity of reiterating some well-known guidelines pertaining to dismissal due to loss of trust and confidence in the very recent case of M+W ZANDER PHILIPPINES, INC. and ROLF WILTSCHEK, versus TRINIDAD M. ENRIQUEZ, (G.R. "Extension of the floating status of workers beyond the six months maximum through a DO is illegal as it is tantamount to executive legislation," said … 01-0159-10, NLRC RAB VII Case No. - The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season. Therefore, such contracts are subject to special laws on labor unions, collective bargaining, strikes and lockouts, closed shops, wages, working conditions, hours of labor and similar subjects. Elements b. Trilateral relationship c. Solidary liability B. The November 29, 2011 Decision of theLabor Arbiter is REINSTATED. However, IKSI failed to discharge the burden of proof vested upon it. Call Center Agents on floating status is a scenario where a lot of people in our ranks see themselves in. It merely indicated changes in business conditions and client requirements and specifications as its basis for the implemented forced leave/lay-off.37, In light of the well-entrenched rule that the burden to prove the validity and legality of the termination of employment falls on the employer, IKSI should have established the bona fide suspension of its business operations or undertaking that could legitimately lead to the temporary layoff of its employees for a period not exceeding six (6) months, in accordance with Article 301.38 The LA severely erred when it sustained respondents' temporary retrenchment simply because the volume of their work would sometimes decline, thus, several employees at the ACT Project stream experienced unproductive time.39 Considering the grave consequences occasioned by retrenchment, whether permanent or temporary, on the livelihood of the employees to be dismissed, and the avowed policy of the State to afford full protection to labor and to assure the employee's right to enjoy security of tenure, the Court stresses that not every loss incurred or expected to be incurred by a company will justify retrenchment. There being no valid suspension of business operations, IKSI’s act amounted to constructive dismissal of respondents since it could not validly put the latter on forced leave or floating status pursuant to Article 301. 06443. WHEREFORE, IN VIEW OF THE FOREGOING, the Court DISMISSES the petition, and AFFIRMS with MODIFICATIONS the Decision of the Court of Appeals Cebu, Twentieth (20th) Division, dated August 30, 2013 and Resolution dated March 12, 2014 in CA-G.R. (e) Clause 5 on Termination of Employment provides: At any time during the Term of this Contract, or any extension thereof, the Company may terminate this Contract, upon thirty (30) days' prior notice to the Employee...in the following instances: a. the services contracted for by the Company under the Project is completed prior to the agreed upon completion date; or, b. the specific phase of the Project requiring the Employee’s services is sooner completed; or, c. substantial decrease in the volume of work for the Project; or. The DOLE Region VII Office was only informed on January 11, 201051 or four (4) days after the forced leave had already taken effect. The Court has previously set the guidelines pertaining to non-compliance with the requirements on, or submission of defective, verification and certification against forum shopping:58. In case of termination due to the installation of labor-saving devices or redundancy, the worker affected thereby shall be entitled to a separation pay equivalent to at least his one (1) month pay or to at least one (1) month pay for every year of service, whichever is higher. This is a petition for review seeking the reversal of the Decision1 of the Court of Appeals (CA), Cebu, Twentieth (20th) Division, dated August 30, 2013 and its Resolution2 dated March 12, 2014 in CA-G.R. 1700. However, a lay-off would amount to dismissal only if it is permanent. 13. Before you continue, understand that this post was written for the purpose of discussion only. In its Comment, 14 dated March 21, 2016, respondent averred that petitioner's claim of illegal dismissal could not overcome the evidence it presented to show that no dismissal took place; and that moral and exemplary damages could only be awarded only when there is a finding of illegal dismissal and such dismissal is borne out with malice and bad faith on the part of the employer. Generally, questions of fact are beyond the ambit of a petition for review under Rule 45 of the Rules of Court as it is limited to reviewing only questions of law. 10911, otherwise known as the “Anti-Age Discrimination in … However, reinstatement is no longer feasible in this case because of the palpable strained relations between the parties and the possibility that the positions previously held by respondents are already being occupied by new hires. No. Regular and casual employment. UPDATE: Here’s a comparative table of DO 174, 18A, 19 and the labor code for your guidance and reference Here’s a copy of DOLE DO 174 for your reference. Nevertheless, respondent Quimba allowed them to proceed and directed respondent Lagrana to assign Rodolfo Lilia, a utility man on floating status, to oversee the sorting, counting, and bundling of the bags. CEB-SP No. Respondent added that petitioner was endorsed to another client for re-assignment, which the latter refused because his license was due for renewal. Petitioner Consolidated Distillers of the Far East, Inc. (Condis) filed a Petition for Review on Certiorari 1 (Petition) under Rule 45 of the Rules of Court assailing the Decision 2 dated March 17, 2016 and Resolution 3 dated January 10, 2017 of the Court of Appeals (CA) in CA-G.R. Petitioner, however, argues that there was no dismissal to speak of as it had placed respondent on floating status when the contract with Meralco was terminated. Indeed, the application of technical rules of procedure may be relaxed in labor cases to serve the demand of substantial justice. Thus, to some degree, they are subject to the whims of clients who may suddenly decide to discontinue patronizing their services for a variety of reasons. 23 Brent School, Inc. v. Zamora, 260 Phil. FLOATING STATUS: NOT UNLAWFUL PER SE; Food and Drugs Administration of the Philippines Issuances; FORECLOSURE OF A REAL ESTATE MORTGAGE (REM) FORM OF TRUST RECEIPTS; Further Empowering Rights of Women: Highlights of Republic Act No. 33 Formerly Article 286, Department Advisory No. The NLRC likewise committed a grave error when it held that there was no basis for respondents' reliance on the case of Bontia v. NLRc48 on the sole ground that, in the present case, the employees were neither actually nor constructively dismissed. In effect, it sought to alternatively avail of project employment and employment for a fixed term so as to preclude the regularization of respondents' status. 638 286. Petitioner argues that he did not receive the letters requiring him to report back to work; that a perusal of the letters revealed that the same did not indicate a specific assignment; that respondent had no intention to reinstate him considering that he was placed on a floating status for a long period of time; and that he was entitled to moral damages, exemplary damages and attorney's fees. HOURS OF WORK OF EMPLOYEES Article 83 of the Labor Code enunciates that the normal hours of work of any employee shall not exceed eight (8) hours a day. WHEREFORE, the Decision of the Labor Arbiter is hereby AFFIRMED WITH MODIFICATION, in that in lieu of reinstatement, to pay the twelve (12) complainants-appellants namely: Michael A. Rebato, Hernan Ed Noel L. de Leon, Jr., Wendell B. Quiban, Fritz Sembrino, Ismael R. Garaygay III, Edson S. Solis, Stephen Olingay, Ronan Alamillo, Jess Vincent A. dela Pena, Dax Matthew M. Quijano, Juneth A. Rentuma and Socorro D'Marie T. Inting, the total amount of Php563,500.00. When employment not deemed terminated. Aware of the possibility of abuse in the utilization of fixed-term employment contracts, the Court has declared that where from the circumstances it is apparent that the periods have been imposed to preclude acquisition of tenurial security by the employee, they should be struck down as contrary to public policy or morals.23. When Employment not Deemed Terminated. vs. Indeed, records would disclose that respondents signed employment contracts specifically indicating the Content Supply Chain Project,15 also known as the ACT Project, as the project for which they were being hired, which was expected to be completed after a maximum of five (5) years. 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