Tag - labor case

Backwages and the Earnings Elsewhere

The monetary award known as Backwages is one of the items usually granted to the illegally dismissed employee. It is provided under Article 294 of the Labor, as amended. This provision of the Labor Code states that an employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent computed from the time his [...]

Employee Benefits in Case of “Bankruptcy” or Liquidation of the Company

“Bankruptcy” is a commonly terms by business owners in the event of non-viability of their business. Such term is not used in Philippine setting although there is an equivalent concept which is insolvency. However, Article 110 of the Labor Code recognizes the scenario of “bankruptcy” is so claimed by the employer. This is discussed in the context of liquidation. Technically, bankruptcy in the US contemplates three different scenarios. They are found in Chapters 7, 11, and 13 of the United States [...]

Legal Consequences of Refusal to Accept the Resignation

Acquire Mastery of HR/Labor Doctrines, Rules and Principles with Atty. Elvin’s HR Bundle Books at Discounted Rate Resignation is the voluntary act of an employee who is in a situation where one believes that personal reasons cannot be sacrificed in favor of the exigency of the service, and one has no other choice or is otherwise compelled to dissociate oneself from employment. [Dela Fuente vs. Gimenez, G.R. No. 214419, November 17, 2021] It is a formal pronouncement or relinquishment of an [...]

Directing Employee to Resign than to Face Termination

An employee may have committed serious offense within the company thus, the employer decides to save the employee from incurring bad record and asks the employee to resign instead of being terminated. As a rule, resignation should be voluntary pursuant to paragraph a, Article 300 of the Labor Code, as amended. However, there are instances when different circumstances arise surrounding resignation. These are the resignation due to severe abuses, inhumane treatment, etc. as set forth in paragraph b of Article 300. [...]

Exemplary Damages in Labor Cases

Exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages. [Article 2229, Civil Code] Further, the Civil Code provides for the rules concerning the award of exemplary damages. In Article 2229 it states that exemplary or corrective damages are imposed, by way of example or correction for the public good, in addition to the moral, temperate, liquidated or compensatory damages. While in Article 2232 it [...]

Indemnity in the Form of Nominal Damages as Award in a Labor Case

Nominal damages are adjudicated in order that a right of a plaintiff which has been violated or invaded by another may be vindicated or recognized without having to indemnify the plaintiff for any loss suffered by him. [Article 2221, Civil Code] Nominal damages may likewise be awarded in every obligation arising from law, contracts, quasi-contracts, acts or omissions punished by law, and quasi-delicts, or where any property right has been invaded. [Agabon vs. NLRC, G.R. No. 158693, November 17, 2004] In [...]

Computation of Backwages in Labor Case where Reinstatement is not Possible

It is settled that the twin reliefs that should be given to an illegally dismissed employee are full backwages and reinstatement. (Peak Ventures Corp. vs. Heirs of Villareal, 747 Phil. 320-337 (2014) citing St. Luke’s Medical Center, Inc. v. Notario, 648 Phil. 285 (2010).) Backwages restore the lost income of an employee and is computed from the time compensation was withheld up to actual reinstatement. Anent reinstatement, only when it is not viable is separation pay given. The computation of backwages [...]

Employee ID Issued may not be Competent to Prove Employment Relationship

One of the usual ways to prove employer-employee relationship is the presentation of employee ID. However, there can be an instance where an ID card bearing the label “Employee Name” may not be competent to prove employment relationship. In a dispute over the existence of employer-employee relationship, the Court examines the circumstances surrounding the parties or the complainant and the respondents. The rule in a claim of existence of employer-employee relationship is that the claimant has the burden of proof. It [...]

Employer Employee Relationship Issue in a Labor Dispute

While the Labor Arbiter (LA) has no jurisdiction over dispute that does not arise from employer-employee relationship, the determination of whether such relationship exists lies with the LA also. In the case of Atok Big Wedge Company, Inc. vs. Gison (G.R. No. 169510, August 8, 2011), the Supreme Court (SC) held that well-entrenched is the doctrine that the existence of an employer-employee relationship is ultimately a question of fact and that the findings thereon by the Labor Arbiter and the [...]

Illegal Wage Deductions from Employee’s Salary Should be Reimbursed by Employer

There are employers who deduct from the wages of their employees. Some of these are illegal. In one case, the employer deduct from the wage constituting penalties for deliveries outside of the delivery hours, cell phone plans, bad orders and liquidation shortage. [Marby Food Ventures Corporation vs. Dela Cruz, G.R. No. 244629, July 28, 2020] It is clearly stated in Article 113 of the Labor Code that no employer, in his own behalf or in behalf of any person, shall make [...]

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