Case Digest (G.R. No. L-30452)
Facts:
Mercury Drug Co., Inc. v. Nardo Dayao, et al., G.R. No. L-30452, September 30, 1982, First Division, Gutierrez, Jr., J., writing for the Court. Petitioner Mercury Drug Co., Inc. (the company) sought review of the Court of Industrial Relations' (CIR) decision of March 30, 1968 in Case No. 1926‑V and the CIR en banc Resolution of July 6, 1968 denying reconsideration. The verified petition below was filed March 17, 1964 (amended July 31, 1964 and January 6, 1966) by Nardo Dayao and 70 others seeking: (a) unpaid back wages for work on Sundays and legal holidays plus 25% additional compensation from date of employment to June 30, 1962; (b) extra compensation for night work; (c) reinstatement of two employees with back salaries; and (d) disestablishment of the employees’ association and refund of monies collected.Before the CIR, respondent management and the union moved to dismiss on multiple grounds; in its March 24, 1965 Order the CIR denied most grounds, dropped two claimants for lack of jurisdiction over their claims, and dismissed the union claims without prejudice to refiling as unfair labor practice. The CIR found the prescriptive period not to have run back three years from filing. Respondents answered and asserted defenses including that the company as a service enterprise was excluded from the Eight‑Hour Law’s coverage, that the alleged 25% premiums had been included in annual wages under written contracts, and that some claims had prescribed.
After trial the CIR rendered judgment (Mar. 30, 1968): it denied the petitioners’ claim for pay for the first four hours of every other Sunday and first four hours on legal holidays; ordered Mercury Drug to pay 69 petitioners (a) a 25% premium on basic salary for services rendered on Sundays and legal holidays (Mar. 20, 1961–June 30, 1962) and (b) a 25% premium for night work during the same period; denied conversion-to-monthly status; absolved Mariano Que (an officer) from personal liability; and directed the Chief Court Examiner to compute awards. The CIR en banc denied reconsideration July 6, 1968. Mercury Drug assigned errors contesting (1) the CIR’s ruling that contractual wages did not include the 25% Sunday/holiday premium and its finding tha...(Subscriber-Only)
Issues:
- Did the Court of Industrial Relations err in nullifying contractual provisions (or treating them as void insofar as they purported to waive statutory Sunday/holiday premiums) and awarding 25% Sunday/holiday premiums when the validity of the contracts was not directly pleaded?
- Did the CIR have jurisdiction to award additional compensation for regular night work despite the passage of Republic Act No. 875?
- Were the CIR’s factual findings — that the 25% premiums for Sunday/holiday and night work were not included in the employees’ monthly salaries — supported by substantial evidence and free from grave abuse of discretion?
- Could the CIR properl...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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