Case Digest (G.R. No. 86693)
Facts:
Cosmopolitan Funeral Homes, Inc. v. Noli Maalat and National Labor Relations Commission, G.R. No. 86693, July 02, 1990, Supreme Court Third Division, Gutierrez, Jr., J., writing for the Court.The petitioner, Cosmopolitan Funeral Homes, Inc., engaged private respondent Noli Maalat in about 1962 as a "supervisor" to solicit mortuary arrangements, sales, and collections; his duties included arranging removal of the corpse, embalming, casketing, viewing and delivery. Maalat was paid on a commission basis of 3.5% of amounts actually collected and remitted.
On January 15, 1987, Cosmopolitan dismissed Maalat for alleged violations of company rules after prior warnings: understatement of reported contract prices, misappropriation/non-remittance of collections and non-issuance of official receipts, pocketing additional charges for medicines/linen/security, non-reporting of embalming/re-embalming charges, and engaging in tomb making and including its price without customers' or company knowledge. Maalat filed a complaint for illegal dismissal and non-payment of commissions before the Labor Arbiter.
Labor Arbiter Newton R. Sancho, on the parties' position papers, rendered a decision declaring Maalat's dismissal illegal and ordered Cosmopolitan to pay separation pay, commissions, interests and attorney's fee totaling P205,571.52. On appeal, the National Labor Relations Commission (NLRC), by decision dated May 31, 1988, reversed the Labor Arbiter, declared the dismissal justified, but, as equitable relief, ordered Cosmopolitan to pay separation pay equivalent to one-half month’s average income for every year of service (subject to offsets), allowed claims for accrued commissions subject to proof, fixed attorney’s fee at 2% of any final money award, and remanded the case to the Regional Arbitration Branch for further proceedings. The petitioner's motion for reconsideration before the NLRC was denied, and the petitioner brought this petition for review to the Court.
After remand, the Labor Arbiter computed recoverable amounts in a May 10, 1989 decision (separation pay P76,064.40; unpaid commissions P39,344.80; attorneys' fees 2% = P2,308.18), but neither ...(Subscriber-Only)
Issues:
- Did the NLRC err in ruling that an employment relationship existed between Cosmopolitan Funeral Homes, Inc. and Noli Maalat?
- Was there an equitable basis for awarding separation pay of one-half month per year of service to Maalat despite his dismissa...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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