Title
Jordan vs. Grandeur Security and Services, Inc.
Case
G.R. No. 206716
Decision Date
Jun 18, 2014
Employee reassigned, not dismissed; reinstatement ordered but misinterpreted. NLRC's backwages ruling nullified; employee must return to work, no monetary claims.

Case Digest (G.R. No. 206716)

Facts:

Ruben C. Jordan v. Grandeur Security & Services, Inc., G.R. No. 206716, June 18, 2014, Supreme Court Second Division, Brion, J., writing for the Court.

On May 23, 2007, Ruben C. Jordan, together with co-complainants Valentino Galache and Ireneo Esguerra, filed individual complaints for money claims against Grandeur Security and Services Corporation and its officer Nicolas Pablo, alleging unpaid minimum wages, holiday and premium pay, service incentive leave, thirteenth month pay, cost-of-living allowance and unlawful annual insurance premium deductions; Galache also claimed overtime. Jordan amended his complaint on May 28, 2007 to add illegal dismissal; the matter was docketed as NLRC‑NCR Case No. 05‑05003‑07.

In defense, Grandeur Security denied dismissal and contended it only reassigned Jordan from Quezon City to Taguig City; it further alleged Jordan abandoned his work and denied the unpaid-money claims. The Labor Arbiter (LA), by decision dated May 27, 2008, found there was no illegal dismissal, held that Jordan remained in the employment of Grandeur Security and did not abandon his job, ordered Jordan to physically return to work (acceptance by employer “without any backwages”), and awarded monetary differentials and other money claims to the three complainants. The LA’s dispositive portion nevertheless used the terms “reinstatement” and “payroll,” language later characterized as inconsistent with the body of the decision.

Grandeur Security partially appealed before the NLRC only as to monetary awards and did not contest the return‑to‑work order; it also mailed Jordan a return‑to‑work letter dated July 11, 2008, with an accompanying registry receipt and registry return card bearing a recipient’s signature. The LA decision became final and executory on January 20, 2010 after the NLRC denied the employer’s appeal and motion for reconsideration. Execution followed and Grandeur Security paid Jordan P80,000 on March 3, 2010, whereupon Jordan executed a quitclaim of his money claims but noted that the reinstatement issue remained pending.

On December 15, 2010, the LA declared the proceedings closed and terminated because of the complainants’ quitclaims and Jordan’s alleged waiver of reinstatement; Jordan appealed to the NLRC on January 10, 2011, asserting non‑receipt of the July 11, 2008 letter (submitting specimen signatures and a post office letter) and seeking backwages and separation pay in lieu of reinstatement. The NLRC, by decision dated February 21, 2011, set aside the LA’s December 15, 2010 order and ordered Grandeur Security to pay Jordan P977,255.20 plus 10% attorneys’ fees; the NLRC denied reconsideration on March 28, 2011.

Grandeur Security sought relief from the Court of Appeals (CA) by petition under Rule 65. The CA, in a decision promulgated April 22, 2013 (CA‑G.R. SP No. 119715), nullified the NLRC’s rulings, holding the NLRC gravely abused its discretion in ordering backwages and separation pay despite the finality of the LA decision and that, under the 2011 NLRC Rules of Procedure, the proper consequence of refusal to reinstate is citation for contempt, not conversion of the return...(Pro-only)

Issues:

  • Whether an employee who is not terminated from employment may be reinstated to work.
  • Whether the Court of Appeals correctly nullified the NLRC rulings dated February 21 and March 28, 2011, specifically:
2.a Whether the NLRC had jurisdiction over Jordan’s memorandum of appeal dated January 10, 2011; and 2.b Whether the NLRC gravely abused its discretion in substantially altering the May 27, 2008 Labor Arbiter decision.
  • Whether Jordan waived his righ...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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