Case Digest (G.R. No. 160827)
Facts:
Netlink Computer Incorporated v. Eric Delmo, G.R. No. 160827, June 18, 2014, the Supreme Court First Division, Bersamin, J., writing for the Court.
Petitioner Netlink Computer, Inc. employed respondent Eric S. Delmo on November 3, 1991 as an account manager tasked to canvass clients and generate sales; Delmo worked mostly in the field and was not required to punch time cards.
Delmo generated sales totaling roughly P35,000,000, from which he claimed commissions of P993,558.89 and US$7,588.30. Netlink paid only partial cash advances against those commissions, later issued memoranda alleging attendance and performance infractions, and on November 28, 1996 refused Delmo entry to company premises and cut off his access to personal belongings. Delmo filed a complaint for illegal dismissal.
The Labor Arbiter (September 23, 1998) found for Delmo: declared the dismissal illegal, ordered reinstatement with backwages and benefits, and awarded P993,558.89 unpaid commissions plus US$7,588.30 and 10% attorneys’ fees (reinstatement immediately executory; separation pay if reinstatement infeasible).
On appeal the National Labor Relations Commission (NLRC) set aside the reinstatement and backwages, finding valid and just causes for dismissal but procedural due process violations; it instead awarded P2,000 indemnity for lack of procedural due process, the unpaid commissions (P993,558.89 and US$7,588.30), P15,000 for 13th month pay for 1996–1998, and 10% attorneys’ fees.
Netlink sought certiorari in the Court of Appeals. The CA (May 9, 2003) affirmed the NLRC with modifications: it held that some commissions had not yet accrued because payment by Netlink’s client (Alcatel) was outstanding, deducted prior advances of P216,799.45 from the peso commissions and fixed P4,066.19 as unpaid accrued peso commissions, P776,779.44 payable upon collection of the underlying accounts, US$7,588.30 payable a...(Pro-only)
Issues:
- Should Delmo’s commissions be paid in US dollars (or converted at the exchange rate at time of payment) where there was no written agreement but the employer previously paid commissions in dollars?
- Was the award of attorneys’ fees to ...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
- (Pro-only)