Title
Aris Inc. vs. National Labor Relations Commission
Case
G.R. No. 90501
Decision Date
Aug 5, 1991
Aris (Phil.) Inc. challenged the constitutionality of R.A. No. 6715's immediate reinstatement provision, claiming due process violation and retroactive application. SC upheld the law, affirming its validity as a labor protection measure and procedural retroactivity.

Case Digest (G.R. No. 90501)
Expanded Legal Reasoning Model

Facts:

  • Background and Statutory Framework
    • The case involves ARIS (PHIL.) INC. as petitioner challenging the constitutionality of amendments to the Labor Code of the Philippines and the implementing rules of the National Labor Relations Commission (NLRC).
    • The specific provisions at issue are:
      • Section 12 of Republic Act No. 6715, which amended Article 223 of the Labor Code to provide that the decision of a Labor Arbiter reinstating a dismissed or separated employee becomes immediately executory, even pending appeal.
      • Section 2 of the NLRC Interim Rules on Appeals under R.A. No. 6715, which mirrors the reinstatement provision.
      • The Transitory Provision contained in Section 17 of the same Interim Rules concerning the application of the rules to appeals filed between March 21, 1989, and their effectivity.
    • Petitioner argues that these provisions are oppressive and unreasonable as they mandate execution pending appeal without affording the employer the customary opportunity to confront or protect its interests.
  • Chronology of Events and Procedural History
    • In April 1988, private respondents, who were employees of petitioner, faced hazardous working conditions. Their initial grievance and subsequent protest led them to stage a rally at the management’s office.
    • On April 12, 1988, management issued memoranda summoning the most active participants to explain their conduct and later dismissed them for violations of company rules relating to security, public order, and participation in unauthorized strikes.
    • Private respondents filed a complaint for illegal dismissal against the petitioner with the NLRC (docketed as NLRC-NCR-00-04-01630-88).
    • On June 22, 1989, Labor Arbiter Felipe Garduque III rendered a decision ordering the immediate reinstatement of most of the complainants with certain limitations on backwages.
    • Following the decision, on July 19, 1989, the complainants filed a motion for the issuance of a writ of execution based on the new reinstatement provision under Section 12 of R.A. No. 6715.
    • Subsequently, petitioner filed its appeal on July 21, 1989, while partial appeals were also filed by some complainants on July 26 and August 10, 1989.
    • On August 29, 1989, petitioner opposed the motion for execution, arguing that the new law should not be applied retroactively to pending cases and that its immediate execution provision burdens the employer unjustly.
    • Despite the opposition, on October 5, 1989, the Labor Arbiter granted the motion for execution as consistent with Section 2 of the Interim Rules.
    • Petitioner then filed the present petition on October 26, 1989, challenging both the substantive and retroactive application aspects of the contested provisions.
  • Contentions Regarding the Provisions
    • Petitioner’s Contention:
      • The immediate execution of a reinstatement order pending appeal is claimed to be constitutionally infirm as it violates due process by being oppressive and unreasonable.
      • The retroactive application of these provisions imposes additional burdens on the employer and undermines the right to a full and undiluted appeal since it forces execution of decisions even before a final judgment.
    • Respondents’ and Solicitor General’s Position:
      • The contested provisions are a valid exercise of the state’s police power aimed at protecting labor rights and ensuring that dismissed employees regain employment without undue delay.
      • The retroactive application is justified on a procedural basis since no vested rights exist in rules of procedure.

Issues:

  • Constitutional Validity
    • Is the amendment introduced by Section 12 of Republic Act No. 6715, which mandates the immediate execution of a reinstatement order pending appeal, a violation of the due process clause in the Constitution by being oppressive and unreasonable?
    • Does the immediate execution provision unfairly prejudice the rights of the employer by impinging on its right to self-protection and a proper appellate review?
  • Retroactive Application of Procedural Rules
    • Can Section 12 of R.A. No. 6715 and the corresponding provisions under Section 2 of the NLRC Interim Rules be applied retroactively to pending labor cases, or must they be restricted only to cases decided after their effectivity?
    • Is the inclusion of Section 17 of the Interim Rules, which deals with appeals filed between March 21, 1989, and their effectivity, constitutionally sound and procedurally acceptable?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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