Title
Asia Fancy Plywood Corp. vs. National Labor Relations Commission
Case
G.R. No. 113099
Decision Date
Jan 20, 1999
Employees claimed illegal dismissal; employer denied termination. Labor Arbiter ruled no dismissal, no backwages; NLRC reversed, awarding backwages. Supreme Court reinstated Arbiter’s decision, finding no illegal dismissal or basis for backwages.
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Case Digest (G.R. No. 113099)

Facts:

Employment and Complaint Filing:

  • Private respondents (Roberto Mananap, Jose Rubio, Avelina Natalio, Gerardo Anover, Elizabeth Celis, and Editha Retez) were regular employees of petitioner Asia Fancy Plywood Corporation, a company engaged in plywood lamination.
  • On March 7, 1991, private respondents filed a complaint with the Office of the Labor Arbiter against petitioner for unfair labor practice, illegal dismissal, harassment, violation of labor standards, and underpayment of wages.
  • The complaint was amended on April 17, 1991, to include more complainants, and further amended on June 25, 1991, limiting the case to illegal dismissal only.

Petitioner’s Defense:

  • On July 23, 1991, petitioner filed its answer, asserting that private respondents were not dismissed or terminated but had voluntarily stopped reporting for work.

Labor Arbiter’s Decision:

  • On December 3, 1991, the Labor Arbiter ruled that private respondents should report for work, and petitioner should re-accept them to their former or substantially equal positions without backwages.

Appeal to NLRC:

  • On December 27, 1991, private respondents appealed the Labor Arbiter’s decision to the National Labor Relations Commission (NLRC).
  • On September 30, 1993, the NLRC modified the Labor Arbiter’s decision, ordering petitioner to reinstate private respondents and pay them backwages not exceeding two (2) years.

Issue:

  1. Whether private respondents were illegally dismissed by petitioner.
  2. Whether the NLRC gravely abused its discretion in ordering petitioner to pay backwages to private respondents.

Ruling:

The Supreme Court granted the petition and set aside the NLRC’s decision. The Court reinstated the Labor Arbiter’s decision, which did not award backwages to private respondents.

Ratio:

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