Title
American Express Philippines Local Employees Association vs. Leogardo, Jr.
Case
G.R. No. 75906
Decision Date
May 18, 1993
Employees dismissed due to office closure accepted separation pay, signed quitclaims; SC ruled their reinstatement claim barred, affirmed termination clearance.
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Case Digest (G.R. No. 75906)

Facts:

Employment and Termination:

  • Petitioners Ella Blanco and Elizabeth Zingalaoa were employees of American Express International, Inc. (AMEXCO), assigned to the Clark Air Force Base Tour Extension Office, Travel Division.
  • On May 12, 1981, Cresencio Datu, AMEXCO's Personnel Manager, informed petitioners via letters that their employment would be terminated due to the closure of the Tour Extension Office. They were advised to collect their separation pay, which they did a week later.

Clearance Application and Complaint:

  • On May 28, 1981, AMEXCO filed a clearance application with the Ministry of Labor and Employment (MOLE) to terminate petitioners' services.
  • On August 5, 1981, the American Express Philippines Local Employees Association (AMEXPLEA) and petitioners filed a complaint against AMEXCO and Datu, alleging unfair labor practice and illegal dismissal.

Regional Director’s Order:

  • On July 28, 1982, Regional Director Severo M. Pucan denied AMEXCO's clearance application, finding AMEXCO guilty of illegal dismissal. He ordered the reinstatement of petitioners with full backwages.

Motion for Reconsideration and Appeal:

  • AMEXCO filed a Motion for Extension of Time to File a Motion for Reconsideration on August 18, 1982, which was granted. The Motion for Reconsideration was filed on August 25, 1982.
  • On December 29, 1982, petitioners filed a Motion to Implead PCI Travel Corporation (PCI) as AMEXCO's Travel Division was sold to PCI effective January 1, 1983.

Writ of Execution and Supersedeas Bond:

  • On March 26, 1984, a Writ of Execution was issued against AMEXCO. AMEXCO filed a Motion to Lift the Writ on April 11, 1984, posting a supersedeas bond. Petitioners opposed, arguing the bond was filed too late.

Public Respondent’s Order:

  • On August 12, 1986, Deputy Minister of Labor Vicente Leogardo, Jr. set aside the July 28, 1982 Order, granting clearance to terminate petitioners but ordering payment of separation pay.

Issue:

  1. Whether public respondent had jurisdiction over the case, given AMEXCO’s alleged failure to file its motion for reconsideration or appeal within the reglementary period.
  2. Whether the acceptance of separation pay by petitioners barred their claim for reinstatement.
  3. Whether PCI Travel Corporation should be impleaded as a party and held liable for petitioners’ reinstatement.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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