Title
Montoya vs. Escayo
Case
G.R. No. 82211-12
Decision Date
Mar 21, 1989
Former employees sued employer for unpaid wages and illegal dismissal; SC ruled barangay conciliation under P.D. 1508 inapplicable to labor disputes, remanding case for resolution.
A

Case Digest (G.R. No. 82211-12)

Facts:

Teresita Montoya filed a petition for certiorari seeking the annulment of a resolution dated August 20, 1987 of the National Labor Relations Commission (NLRC), Third Division that reversed and set aside the dismissal issued on September 27, 1985 by Labor Arbiter Ethelwoldo R. Ovejera of NLRC Regional Arbitration Branch No. VI in Bacolod City. The controversy stemmed from the private respondents—Teresita Escayo, Joy Escayo, Aida Ganancial, Mary Ann Cape, Cecilia Correjado, Erlinda Paypon, and Rosalie Verde—who had previously worked as salesgirls in Terry’s Dry Goods Store owned by petitioner in Bacolod City. On different dates, the private respondents separately filed complaints for collection of unpaid overtime pay, holiday pay, thirteenth month pay, ECOLA, and service leave pay; and for alleged violations of the minimum wage law, illegal dismissal, and attorney’s fees. Although treated as separate cases, the complaints were consolidated due to their similar nature. Petitioner moved for dismissal on August 1, 1984, arguing that the private respondents failed to refer the dispute to the Lupon ng Tagapayapa for possible settlement and to secure the certification required from the Lupon Chairman before filing with the Labor Arbiter, which she asserted violated P.D. No. 1508 (the Katarungang Pambarangay Law). The Labor Arbiter granted the motion and dismissed the complaints on September 27, 1985. On appeal, the NLRC reversed and remanded the case for further proceedings in its August 20, 1987 resolution, and petitioner’s motion for reconsideration was denied on October 28, 1987, prompting the present petition.

Issues:

Whether the Katarungang Pambarangay Law (P.D. No. 1508) requires parties in labor disputes to first submit the controversy to the barangay Lupon ng Tagapayapa for conciliation and obtain the required certification, such that non-compliance divests the Labor Arbiter and the NLRC of jurisdiction.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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