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020 SMC vs Teodisio[G.R. 163033, Oct. 2, 2009 ]TOPIC : Dismissal of Employee with Bad FaithPONENTE : PERALTA, J.:

A T!OR : Kelsey NOTE :

"ACTS#

1. O! eptem"e# $, %&&%, #espo!de!t Ed'a#do Teodosio was hi#ed "y a! (i)'el *o#po#atio! + (* as a -as'al fo# liftope#ato# i! its Ba-olod *ity B#ewe#y. As a fo# lift ope#ato#, #espo!de!t was tas ed with loadi!) a!d '!loadi!) pallet of "ee# -ases withi! the "#ewe#y p#emises. Respo!de!t -o!ti!'o'sly wo# ed f#om eptem"e# $, %&&% '!til (a#-h %&&/, afte# whi-hhe was 0as ed to #est1 fo# a while.

2. A mo!th afte#, o# sometime i! Ap#il %&&/, #espo!de!t was #ehi#ed fo# the same positio!, a!d afte# se#2i!) fo# a"o't fi2e to si3mo!ths, he was a)ai! 0as ed to #est.1 Afte# th#ee wee s, he was a)ai! #ehi#ed as a fo# lift ope#ato#. 4e -o!ti!'ed to wo# ass'-h '!til A')'st %&&5.

3. ometime i! A')'st %&&5, #espo!de!t was made to si)! a! 0Employme!t with a Fi3ed Pe#iod1 -o!t#a-t "y (*, whe#ei! itwas stip'lated, amo!) othe# thi!)s, that #espo!de!t6s employme!t wo'ld "e 0f#om A')'st 7, %&&5 to A')'st 58, %&&$, o# 'po! -essatio! of the i!sta"ility9fl'-t'atio! of the ma# et dema!d, whi-he2e# -omes fi#st.1 The#eafte#, #espo!de!t wo# ed atthe pla!t witho't i!te##'ptio! as a fo# lift ope#ato#.

$. O! (a#-h /8, %&&$, #espo!de!t was t#a!sfe##ed to the pla!t6s "ottli!) se-tio! as a -ase pile#. ! a lette#;7< dated Ap#il %8,%&&$, #espo!de!t fo#mally i!fo#med (* of his oppositio! to his t#a!sfe# to the "ottli!) se-tio!. 4e asse#ted that he wo'ld

"e mo#e effe-ti2e as a fo# lift ope#ato# "e-a'se he had "ee! employed as s'-h fo# mo#e tha! th#ee yea#s al#eady. Respo!de!talso #e='ested that he "e t#a!sfe##ed to his fo#me# positio! as a fo# lift ope#ato#. 4owe2e#, (* did !ot a!swe# his lette#.

%. ! a! '!dated lette#, #espo!de!t i!fo#med (* that he was applyi!) fo# the 2a-a!t positio! of "ottli!) -#ew as he was

i!te#ested i! "e-omi!) a #e)'la# employee of (*.6. O! J'!e %, %&&$, (* !otified the #espo!de!t that his employme!t shall "e te#mi!ated o! J'ly %, %&&$ i! -omplia!-e withthe Employme!t with a Fi3ed Pe#iod -o!t#a-t. (* e3plai!ed that this was d'e to the #eo#)a!i>atio! a!d st#eamli!i!) of itsope#atio!s.

&. ! a lette# dated J'ly 5, %&&$, #espo!de!t e3p#essed his dismay fo# his dismissal. 4e i!fo#med (* that despite the fa-t thathe wo'ld "e -ompelled to #e-ei2e his sepa#atio! pay a!d wo'ld "e fo#-ed to si)! a wai2e# to that effe-t, this does !ot mea!that he wo'ld "e wai2i!) his #i)ht to ='estio! his dismissal a!d to -laim employme!t "e!efits as p#o2ided i! the *BA a!d-ompa!y poli-ies.

'. The#eafte#, #espo!de!t si)!ed a Re-eipt a!d Release do-'me!t i! fa2o# of (* a!d a--epted his sepa#atio! pay, the#e"y#eleasi!) all his -laims a)ai!st (*.

9. O! J'ly ?, %&&$, #espo!de!t filed a *omplai!t;%/< a)ai!st (* "efo#e the NLR*, fo# ille)al dismissal a!d '!de#payme!t of wa)es a!d othe# "e!efits.

10. Afte# the fili!) of the pa#ties6 #espe-ti2e pleadi!)s, the La"o# A#"ite# #e!de#ed a De-isio!;%5< dismissi!) the -omplai!t fo# la- of me#it. The La"o# A#"ite# -o!-l'ded that the -o!t#a-t of employme!t with a fi3 pe#iod si)!ed "y #espo!de!t was ale)itimate e3e#-ise of ma!a)eme!t p#e#o)ati2e.

11. Respo!de!t the! filed "efo#e the *A a petitio! fo# -e#tio#a#i, see i!) to a!!'l a!d set aside the said De-isio! a!d Resol'tio!of the NLR*, the *A #e!de#ed a De-isio! )#a!ti!) the petitio!.

ISS E(S) : % whethe# the #espo!de!t was a #e)'la# employee of (*@/ whethe# the #espo!de!t was ille)ally dismissed@ a!d5 whethe# the #espo!de!t is e!titled to his mo!eta#y -laims a!d dama)es.!E*+ : %. The *o'#t fi!ds the #espo!de!t to "e a #e)'la# employee/. es, 4e was ille)ally dismissed5. Not e!titled to mo#al a!d e3empla#y dama)esRATIO :

%. imply stated, #e)'la# employees a#e -lassified i!to +% #e)'la# employees "y !at'#e of wo# a!d +/ #e)'la# employees "yyea#s of se#2i-e. The fo#me# #efe#s to those employees who pe#fo#m a pa#ti-'la# a-ti2ity whi-h is !e-essa#y o# desi#a"le i! the's'al "'si!ess o# t#ade of the employe#, #e)a#dless of thei# le!)th of se#2i-e@ while the latte# #efe#s to those employees whoha2e "ee! pe#fo#mi!) the Co", #e)a#dless of the !at'#e the#eof, fo# at least a yea#.

Based o! the -i#-'msta!-es s'##o'!di!) #espo!de!t6s employme!t "y (*, this *o'#t is -o!2i!-ed that he has attai!ed thestat's of a #e)'la# employee lo!) "efo#e he e3e-'ted the employme!t -o!t#a-t with a fi3ed pe#iod. Altho')h #espo!de!t wasi!itially hi#ed "y (* as a -as'al employee, #espo!de!t has attai!ed the stat's of a #e)'la# employee. Respo!de!t wasi!itially hi#ed "y (* o! eptem"e# $, %&&% '!til (a#-h %&&/. 4e was #ehi#ed fo# the same positio! i! Ap#il %&&/ whi-hlasted fo# fi2e to si3 mo!ths. Afte# th#ee wee s, he was a)ai! #ehi#ed as a fo# lift ope#ato# a!d he -o!ti!'ed to wo# as s'-h'!til A')'st %&&5. Th's, at the time he si)!ed the Employme!t with a Fi3ed Pe#iod -o!t#a-t, #espo!de!t had al#eady "ee! i!the employ of (* fo# at least twe!ty th#ee +/5 mo!ths.

The La"o# *ode p#o2ides that a -as'al employee -a! "e -o!side#ed as a #e)'la# employee if said -as'al employee has

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#e!de#ed at least o!e yea# of se#2i-e #e)a#dless of the fa-t that s'-h se#2i-e may "e -o!ti!'o's o# "#o e!.(o#eo2e#, the !at'#e of #espo!de!t6s wo# is !e-essa#y i! the "'si!ess i! whi-h (* is e!)a)ed. (* is p#ima#ily e!)a)edi! the ma!'fa-t'#e a!d ma# eti!) of "ee# p#od'-ts, fo# whi-h p'#pose, it spe-ifi-ally mai!tai!s a "#ewe#y i! Ba-olod *ity.Respo!de!t, o! the othe# ha!d, was e!)a)ed as a fo# lift ope#ato# tas ed to lift a!d t#a!sfe# pallets a!d pile them f#om the

"ottli!) se-tio! to the pili!) a#ea. (* admitted that it hi#ed #espo!de!t as a fo# lift ope#ato# si!-e the thi#d ='a#te# of %&&%whe!, i! the a"se!-e of f'lly a'tomated palleti>e#s, ma!'al t#a!sfe#s of "ee# -ases a!d empties wo'ld "e e3te!si2e withi! the

"#ewe#y a!d its p#emises.

/. !do'"tedly, #espo!de!t is a #e)'la# employee of (*. *o!se='e!tly, the employme!t -o!t#a-t with a fi3ed pe#iod whi-h(* had #espo!de!t e3e-'te was mea!t o!ly to -i#-'m2e!t #espo!de!t6s #i)ht to se-'#ity of te!'#e a!d is, the#efo#e, i!2alid.

i!-e #espo!de!t was al#eady a #e)'la# employee mo!ths "efo#e the e3e-'tio! of the Employme!t with a Fi3ed Pe#iod-o!t#a-t, its e3e-'tio! was me#ely a ploy o! (*6s pa#t to dep#i2e #espo!de!t of his te!'#ial se-'#ity. 4e!-e, !o 2alid fi3edte#m -o!t#a-t was e3e-'ted. 4a2i!) )ai!ed the stat's of a #e)'la# employee, #espo!de!t is e!titled to se-'#ity of te!'#e a!d-o'ld o!ly "e dismissed o! C'st o# a'tho#i>ed -a'ses a!d afte# he has "ee! a--o#ded d'e p#o-ess.

Also, (* -a!!ot ta e #ef')e i! the Re-eipt a!d Release do-'me!t si)!ed "y the #espo!de!t. The "'#de! of p#o2i!) that the='it-laim o# wai2e# was 2ol'!ta#ily e!te#ed i!to #ests o! the employe#. (* failed to dis-ha#)e this "'#de!. This is

"'tt#essed "y the fa-t that "efo#e the #espo!de!t si)!ed the do-'me!t, he al#eady i!fo#med (* i! the lette# dated J'ly 5,%&&$, that e2e! if he wo'ld "e -ompelled to #e-ei2e his sepa#atio! pay a!d "e fo#-ed to si)! a wai2e# to that effe-t, he was !otwai2i!) his #i)ht to ='estio! his dismissal a!d to -laim employme!t "e!efits. This -lea#ly p#o2es that #espo!de!t did !otf#eely a!d 2ol'!ta#ily -o!se!t to the e3e-'tio! of the do-'me!t.

5. 4e#ei! #espo!de!t, ha2i!) "ee! '!C'stly dismissed f#om wo# , is e!titled to #ei!stateme!t witho't loss of se!io#ity #i)hts a!dothe# p#i2ile)es a!d to f'll "a- wa)es, i!-l'si2e of allowa!-es, a!d to othe# "e!efits o# thei# mo!eta#y e='i2ale!ts -omp'tedf#om the time -ompe!satio! was withheld 'p to the time of a-t'al #ei!stateme!t.

A!e!t the awa#ds fo# dama)es awa#ded "y the *A, t is Co- t /i ds t t es o de t is ot e tit ed to 4o de5e4 d 4 7es . (o#al dama)es a#e #e-o2e#a"le whe#e the dismissal of the employee was atte!ded "y "ad faith o# f#a'do# -o!stit'ted a! a-t opp#essi2e to la"o#, o# was do!e i! a ma!!e# -o!t#a#y to mo#als, )ood -'stoms o# p'"li- poli-y. O! theothe# ha!d, e3empla#y dama)es a#e p#ope# whe! the dismissal was effe-ted i! a wa!to!, opp#essi2e o# male2ole!t ma!!e#,a!d p'"li- poli-y #e='i#es that these a-ts m'st "e s'pp#essed a!d dis-o'#a)ed. ! the p#ese!t -ase, #espo!de!t failed tos'ffi-ie!tly esta"lish that his dismissal was do!e i! "ad faith@ was -o!t#a#y to mo#als, )ood -'stoms o# p'"li- poli-y@ a!d wasa#"it#a#y a!d opp#essi2e to la"o#, th's e!titli!) him to the awa#d of mo#al a!d e3empla#y dama)es.

As to the awa#d of atto#!ey6s fees, "y #easo! of his ille)al dismissal, #espo!de!t was fo#-ed to liti)ate a!d i!-'# e3pe!ses to p#ote-t his

#i)hts a!d i!te#est. (o#eo2e#, i! la"o# -ases, altho')h a! e3p#ess fi!di!) of fa-t a!d law is still !e-essa#y to p#o2e the me#it of theawa#d of atto#!ey6s fees, the#e !eed !ot "e a!y showi!) that the employe# a-ted mali-io'sly o# i! "ad faith whe! it withheld the wa)es.The#e !eed o!ly "e a showi!) that the lawf'l wa)es we#e !ot paid a--o#di!)ly.;?8< Th's, it is "'t C'st a!d p#ope# that the same sho'ld

"e awa#ded to #espo!de!t.

CASE *A8 +OCTRINE :

+ISSENTING CONC RRING OPINION(S) :