Case# 101 - GENERAL BAPTIST BIBLE COLLEGE vs.
NATIONAL LABOR
RELATIONS COMMISSION
219 SCRA 549
FACTS:
Basa was hired by the College as Academic Dean and was subsequently appointed as
President of the College by its Board of Trustees at the regular meeting of the Board of
Directors of the General Baptist Bible College. When his employment was terminated, hence,
Basa personally, without the assistance of counsel, filed a complaint for illegal dismissal, money
claims and damages, not only for the position of President but for the position of Academic
Dean as well. The reinstatement of appellee as Academic Dean and the payment of unpaid
salaries are in order. The backwages, however, is limited to the basic salary (excluding
allowance) of the position of Academic Dean considering that the pay as President already
included allowances which appellee received.
ISSUE:
Is the award with respect to back wages valid?
HELD:
Yes, the award with respect to back wages is valid.
There is no prohibition in the Manual of Regulations for Private Schools with respect to
one person holding the positions of president and dean concurrently. We also find nothing
repugnant per se in the situation, for there can be no contrariety nor antagonism that would
result in the attempt by one person to discharge the duties of both positions. It cannot be said
that the two offices are, by nature, incompatible. Besides, there is no evidence that there is such
prohibition in the articles of incorporation or by-laws of the College.
In the present case, Basa is entitled to the backwages which should be computed not
only the basic salary but also the emergency cost of living allowances and also transportation
allowances if the workers are entitled thereto.
COMPUTATION OF BACKWAGES – PERIOD COMPUTATION
TORRES vs. NLRC
FACTS:During a routinary meeting of the security guards of the agency assigned to the Philippine
Aerospace Development Corporation, the issue of granting a P25.00 pay increase pursuant to Republic
Act No. 6727 was taken up and questions were raised as to the date of implementation of the increase.
Petitioner Chona P. Torres stood up and uttered aloud at the presiding officer: "BAKIT ANG SASABIHIN
NINYO SA OPISINA AT DITO AY MAGKAIBA!" to which remark the presiding officer replied: "WALA
NAMAN PAGKAKAIBA, DI BA?". The presiding officer also asked: "BAKIT AYAW MO DOON SA
OPISINA?" Then petitioner shouted: "WALA NA AKONG TIWALA SA INYO AT SA AGENCY KASI
SINUNGALING KAYO. EH, KUNG LALAKI LANG AKO, BAKA KUNG ANO PA ANG NAGAWA KO SA
INYO NGAYON!"Torres filed with the Labor Arbiter an amended complaint charging respondent with
underpayment of wages under R.A. No. 6640 and harassment. NLRC declared that the dismissal of the
complainant was not in accordance with law; and ordered to immediately reinstate Torres with full
backwages.
ISSUE: Whether or not the award was valid.
HELD:The respondent agency contended that there has been a change in the situation of the parties
making execution inequitable because petitioner accepted employment from another agency without
resigning from it is patently without merit. However, the rule is that back wages awarded to an illegally
dismissed employee shall not be diminished or reduced by the earnings derived by him elsewhere during
the period of his illegal dismissal. WHEREFORE, the Court DIRECTS the Labor Arbiter to order the
immediate release of the balance of the judgment award to petitioner.
FINANCIAL ASSISTANCE – NOT ALLOWED
EASTERN PAPER MILLS INC., vs. NLRC
FACTS:Petitioner, after due notice, investigation, and hearing, dismissed the private respondent Eduardo
Malabanan, an accounts payable clerk, for having physically assaulted and verbally abused, within full
view and hearing of the other employees, a superior officer, Mariano Lopingco, who was then the
personnel and administrative manager of the company. The reason for the assault was private
respondent's resentment at being suspected of having stolen an ash tray from Lopingco's office and being
questioned about the matter by the security office. Hence, Private respondent filed a complaint for illegal
dismissal. But the Court dismissed Malabanan's complaint finding that his dismissal from employment
was for just and valid cause. However, the Labor Arbiter awarded him P 10,000 as "financial assistance".
On appeal, it awarded Malabanan separation or termination pay amounting to P 10,780, in lieu of financial
assistance.
ISSUE: Whether or not the award with financial assistance is valid.
HELD: Separation pay shall be allowed as a measure of social justice only in those instances where the
employee is validly dismissed for cause other than serious misconduct or those reflecting on his moral
character. Where the reason for the valid dismissal is, for example habitual intoxication or an offense
involving moral turpitude, like theft or illicit sexual relations with a fellow worker, the employer may not be
required to give the dismissed employee separation pay, or financial assistance, or whatever other name
it is called, on the ground of social justice.
The only cases when separation pay shall be paid, although the employee was lawfully dismissed, are
when the cause of termination was not attributable to the employee's fault but due to: (1) the installation
of labor-saving devices, (2) redundancy (3) retrenchment, (4) cessation of the employer's business, or (5)
when the employee is suffering from a disease and his continued employment is prohibited by law or is
prejudicial to his health and to the health of his co- employees. (Articles 283 and 284, Labor Code.) Other
than these cases, an employee who is dismissed for a just and lawful cause is not entitled to separation
pay even if the award were to be called by another nameDismissing the private respondent's complaint
for illegal dismissal is affirmed, but the award of separation pay or financial assistance to him is hereby
set aside for lack of legal basis.
