Leiden Fernandez, Et. Al. vs. National Labor Relations Commission G.R. No. 105892 January 28, 1998
Leiden Fernandez, Et. Al. vs. National Labor Relations Commission G.R. No. 105892 January 28, 1998
Leiden Fernandez, Et. Al. vs. National Labor Relations Commission G.R. No. 105892 January 28, 1998
Facts:
The case stems from a consolidated complaint against private respondents Agencia
Cebuana-H. Lhuillier and/or Margueritte Lhuillier (Lhuillier) for illegal dismissal. The petitioners,
Fernandez, et.al alleged that prior to and during early July 1990, they ‘demanded’ from the private
respondent an increase in their salaries since her business was making good and that she was
evading the payment of taxes by declaring false items in her account. For Lim and Canonigo
however, they alleged that they also “demanded” for an increase in their salaries due to the progress
of the business, the false statement of the private respondent in her account and they informed the
latter that they were going to join the Associated Labor Union. The private respondent contends
that the petitioners were not illegally dismissed but they abandoned their employment and some
of the petitioners were alleged by the private respondent to have committed anomalies against the
company. It was eventually proven that some of the petitioners were in fact illegally dismissed by
the private respondent to which they are entitled to their back wages inclusive of allowances and
other benefits or their monetary equivalent. However, upon recommending that the labor arbiter’s
decision be reinstated substantially, the solicitor general recommended that the award of service
incentive leave be limited to three years.
Issue:
Whether or not the petitioner’s back wages inclusive of allowances and other benefits such
as service incentive leave should only be limited to three years.
Ruling:
No, the back wages, allowances and service incentive leave due to the petitioners
should not be limited to three years.
Section 2, Rule V, Book III of the Implementing Rules and Regulations, provides that
“every employee who has rendered at least one year of service shall be entitled to a yearly service
incentive leave of five days with pay.” Service incentive leave is a right which accrues to ever
employee who has served for 12 months or 1 year. It is also commutable to its money equivalent
if not used or exhausted at the end of the year. He may use it as leave days or he may collect its
monetary value. To limit the award to three years, as the solicitor general recommends, is to
impair the rights of the petitioners to the service incentive leave. Regarding the illegal dismissal
of the petitioners, they are entitled to reinstatement without loss of seniority rights and other
privileges and to their full backwages, inclusive of allowances, and to their other benefits or their
monetary equivalent computed from the time their compensation was withheld from them up to
the time of their actual reinstatement, in accordance with Article 279 of the Labor Code.