Title
Gadia vs. Sykes Asia, Inc.
Case
G.R. No. 209499
Decision Date
Jan 28, 2015
The Supreme Court upheld the employer's valid termination of project-based employees, affirming adherence to due process and rejecting illegal dismissal claims.
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Case Digest (G.R. No. 209499)

Facts:

  • Ma. Charito C. Gadia and 25 others filed a petition for review against Sykes Asia, Inc. and its executives.
  • Sykes Asia entered into a service contract with Alltel Communications, Inc. on September 2, 2003, to provide customer service support.
  • The petitioners were employed as customer service representatives, team leaders, and trainers for the Alltel Project.
  • Alltel terminated support services related to the project on August 7 and September 9, 2009.
  • Sykes Asia issued end-of-life notices to the petitioners, informing them of their termination.
  • The petitioners claimed their dismissal lacked substantive and procedural due process.
  • Respondents argued that the petitioners were project-based employees, making their termination valid.
  • The Labor Arbiter ruled in favor of the respondents, confirming the petitioners as project-based employees.
  • The NLRC modified the decision, declaring the petitioners as regular employees but validly terminated due to redundancy.
  • The NLRC awarded separation pay and nominal damages for procedural lapses.
  • Sykes Asia filed a petition for certiorari with the Court of Appeals, which annulled the NLRC's decision and reinstated the Labor Arbiter's ruling.
  • The petitioners sought a review from the Supreme Court.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court denied the petition, affirming the Court of Appeals' decision and resolution.
  • The Court held that the Court of Appeals correctly classified the petitioners as project-based emp...(Unlock)

Ratio:

  • The Supreme Court emphasized that to justify certiorari, petitioners must show grave abuse of discretion by the lower court or quasi-judicial authority.
  • The Court found that the NLRC gravely abused its discretion by declaring the petitioners as regular employees despite substantial evidence indicating they were project-based employees.
  • The distinction between regular and project-based employees is outlined in Article 294 of the Labor Code, which defines project-based employees as those engaged for a specific project with a ...continue reading

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