Title
Supreme Court
Mt. Carmel College vs. National Labor Relations Commission
Case
G.R. No. 117514
Decision Date
Oct 4, 1996
Teacher terminated for failing board exam; SC ruled no unexpired contract, reversing NLRC's ₱10,200 award, as probation ended in March 1992.

Case Digest (G.R. No. 117514)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • Petitioners:
      • Mt. Carmel College, represented by its president, Bishop Julio Labayen, and its vice president, Sister Mercedes Salud.
    • Respondents:
      • National Labor Relations Commission (NLRC) – the public respondent.
      • Private respondent, Mrs. Normita A. Baaez – a grade school teacher.
  • Terms of Employment
    • On June 1, 1989, Mt. Carmel College hired Normita A. Baaez under a written Contract of Probationary Employment.
    • The contract provided that:
      • Baaez was entitled to a monthly salary of P1,675.00.
      • Her employment was to be deemed valid "from SY 1989-1990 to SY 1991-1992 (day to day of month to month)."
      • The contract explicitly stated that her service could be terminated at any time if she failed to comply with the stipulated conditions, and no further liability (like separation pay) would be incurred upon termination.
  • Termination of Employment and Subsequent Proceedings
    • In March 1992, the petitioner school terminated Baaez's services because she did not pass the National Teachers Board Examination.
    • Private respondent then filed a complaint for illegal dismissal:
      • The Labor Arbiter ruled for reinstatement and full backwages as compensation.
      • Petitioners appealed the ruling to the NLRC.
  • NLRC's Decision
    • The NLRC reversed the Labor Arbiter’s decision, determining that Baaez’s dismissal was legal.
    • However, the NLRC ordered the petitioners to pay Baaez P10,200.00:
      • This amount was calculated as the salary for the unexpired portion of her probationary period.
      • NLRC assumed her employment should have lasted until June 1992.
  • Dispute on the Duration of Employment
    • The petitioners contested the NLRC’s decision arguing:
      • The probationary period was defined by the contract as running through the school year 1991-1992 (i.e., ending in March 1992).
      • There was no provision for extending employment (or a probationary period) beyond the school year standards.
    • Legal precedents cited included:
      • Espiritu Santo Parochial School vs. NLRC
      • Colegio San Agustin vs. NLRC
        • Both cases differentiated between a calendar year (12 months) and a school year (approximately 10 months).
  • Legal Argument Presented
    • The contractual stipulation and the Manual of Regulations for Private Schools were central:
      • The contract clearly stated the term of employment as beginning in June 1989 and ending in March 1992.
      • Under Section 48 of the Manual of Regulations for Private Schools, the school year is defined from the second Monday of June to March of the following year.
    • Petitioners argued that the NLRC erred by extending the probationary period to June 1992, thereby obligating them to pay salary for months (April, May, and June) during which the employment had already terminated.

Issues:

  • Main Issue Presented
    • Whether or not the NLRC gravely abused its discretion in:
      • Finding an “unexpired portion” in the probationary contract of private respondent Normita A. Baaez.
      • Holding petitioners liable to pay her salary for a period beyond the intended contractual term.
  • Sub-Issues and Interpretative Questions
    • The proper interpretation of the contractual clause defining the term of employment ("from SY 1989-1990 to SY 1991-1992").
    • Whether the definition of a school year within the Manual of Regulations for Private Schools supports a termination of employment in March, rather than June.
    • How the legal distinction between a calendar year and a school year should affect probationary employment calculations.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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