Case Digest (G.R. No. 189851)
Facts:
- Intec Cebu, Inc. and its officials filed a petition for certiorari against the Court of Appeals regarding a decision made on June 22, 2016.
- Intec Cebu, Inc. manufactures mechanical systems and printed circuit boards for electronic devices.
- The respondents were production workers employed by Intec from 1997 to 1998.
- In 2005, Intec reduced employee working days from six to between two and four days weekly, citing a lack of job orders.
- The respondents discovered that Intec hired around 188 contractual employees to perform tasks typically assigned to regular workers.
- On May 17, 2006, the respondents claimed they were effectively terminated, as noted in the Establishment Termination Report submitted to the Department of Labor and Employment (DOLE).
- They filed a complaint for illegal dismissal against Intec.
- Intec argued that the reduction of working days was necessary due to financial losses after Kenwood Precision Corporation ceased operations.
- The Labor Arbiter ruled in favor of the respondents, declaring their dismissal constructive and ordering Intec to pay separation pay and back wages.
- The National Labor Relations Commission (NLRC) reversed this decision, justifying the reduction of working days due to Intec’s financial losses.
- The Court of Appeals reinstated the Labor Arbiter's decision, leading Intec to file a petition for certiorari.
Issue:
- (Unlock)
Ruling:
- The Supreme Court dismissed Intec Cebu, Inc.'s petition for certiorari.
- The Court affirmed the Court of Appeals' decision, which reinstated the Labor Arbiter's ruling of constructive dismissal.
- Intec's reduction of working days was ...(Unlock)
Ratio:
- Management has the prerogative to regulate employment aspects, but this must be done in good faith and respect for labor rights.
- Intec did not prove that the reduction of working days was necessary to address financial losses, as their...continue reading
Case Digest (G.R. No. 189851)
Facts:
The case of Intec Cebu, Inc. v. Court of Appeals (G.R. No. 189851) involves a petition for certiorari filed by Intec Cebu, Inc. and its officials, Akihiko Kambayashi and Wataru Sato, against the Court of Appeals, with the decision rendered on June 22, 2016. Intec Cebu, Inc. is engaged in the manufacture and assembly of mechanical systems and printed circuit boards for electronic devices. The respondents in this case were production workers who had been employed by Intec from 1997 to 1998. In 2005, Intec reduced the working days of its employees from six to between two and four days a week, citing a lack of job orders as the reason for this decision. The respondents later discovered that Intec had hired approximately 188 contractual employees to perform tasks that were typically handled by the regular workers. On May 17, 2006, the respondents asserted that they were effectively terminated, as reflected in the Establishment Termination Report submitted to the Department of Labor and Employment (DOLE). Consequently, they filed a complaint for illegal dismissal against Intec. Intec contended that the reduction of working days was necessary due to significant financial losses following the cessation of operations by Kenwood Precision Corporation, which adversely impacted their business. The Labor Arbiter ruled in favor of the respondents, declaring their dismissal as constructive and ordering Intec to pay separation pay and back wages. However, the National Labor Relations Commissi...