Title
Aguilera vs. Coca-Cola FEMSA Philippines, Inc.
Case
G.R. No. 238941
Decision Date
Sep 29, 2021
Employee dismissed for redundancy; Supreme Court ruled termination illegal due to bad faith, invalid quitclaim, and failure to meet redundancy criteria.

Case Digest (G.R. No. 238941)
Expanded Legal Reasoning Model

Facts:

  • Employment and Position History
    • Bernilo M. Aguilera was hired on July 1, 1995 by Coca-Cola Bottlers Philippines, Inc., later renamed Coca-Cola FEMSA Philippines, Inc. (CCFPI), as Refrigeration Technician assigned to the South Luzon Cold Drink Equipment Group.
    • He earned promotions to Trade Asset Controller, Maintenance Coordinator, and eventually Cold Drink Associate, where he supervised maintenance work of third-party service providers on electric coolers installed in customers' stores.
    • Aguilera had 18 years of service at CCFPI and was one of the senior employees receiving the highest monthly salary of ₱39,367.00, with merit increases and citations for excellent work.
  • Redundancy and Dismissal Process
    • In May 2013, a new management took over and initiated a review of positions and employee performance.
    • On August 6, 2013, Aguilera was informed by the HR Manager that he failed the assessment (results undisclosed). He received a notice of termination effective September 6, 2013, purportedly due to redundancy from organizational restructuring and abolition of his Cold Drink Associate position.
    • CCFPI split Aguilera’s former position into two new positions: Cold Drink Operation Supervisor and Cold Drink Equipment Analyst, both with lower salary scales but with similar duties.
    • Aguilera applied for available Cold Drink Equipment Analyst positions but was not hired; instead, CCFPI engaged new employees for those posts.
    • Due to economic necessity, Aguilera accepted a separation package and executed a Deed of Receipt, Waiver and Quitclaim on September 11, 2013.
  • Company's Position and Compliance
    • CCFPI argued compliance with Labor Code requirements on redundancy: timely notice to employee and DOLE, payment of separation pay exceeding statutory minimum, fair criteria based on performance, salary, location, and background.
    • Company asserted that outsourcing of non-core, non-manufacturing activities necessitated redundancy, including Aguilera’s abolished position.
    • CCFPI presented affidavit of HR Manager Marge Del Rosario attesting to assessment process involving management deliberations and terminating Aguilera’s employment in good faith.
    • Psychometric tests were submitted belatedly on appeal, showing Aguilera’s below-ideal IQ though without detailed interpretation or comparative analysis.
  • Labor Arbiter and NLRC Decisions
    • Labor Arbiter found Aguilera’s dismissal illegal, citing company’s bad faith in abolishing the position and lack of fair and reasonable criteria. Ordered reinstatement, backwages, and damages.
    • NLRC affirmed Labor Arbiter’s decision with modification; deleted moral and exemplary damages but granted attorney’s fees.
  • Court of Appeals’ Decision and Subsequent Ruling
    • COA reversed lower rulings, holding that CCFPI complied with redundancy requisites: timely notice, payment of separation pay, good faith, fair and reasonable criteria, and management prerogative exercised properly.
    • Held that Aguilera’s quitclaim barred further claims.
    • Denied Aguilera’s motion for reconsideration.
  • Petitioner’s Present Appeal to the Supreme Court
    • Aguilera contests validity of dismissal, asserting bad faith: abolished position simply renamed and recreated with one of the same functions, no genuine redundancy.
    • Points out he requested to be retained or transferred but was ignored, and accepted separation package out of economic duress.
    • Company reiterates lack of qualifications of petitioner for new positions and good faith under redundancy program, emphasizing restructuring goals and quitclaim as estoppel.

Issues:

  • Whether Aguilera was validly dismissed on the ground of redundancy.
  • Whether CCFPI complied with all legal requisites and exercised good faith in abolishing petitioner’s position.
  • Whether the quitclaim executed by Aguilera after separation bars him from claiming illegal dismissal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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