Title
Philippine American Management Employees Association vs. Court of Industrial Relations
Case
G.R. No. L-37206
Decision Date
Apr 15, 1988
The case involves a dispute over the conversion of casual employees to regular employees and the determination of their monthly salaries and overtime pay, with the court ruling in favor of the petitioners and holding that the converted casual employees should retain their previous rates as the basis for their monthly salaries and be entitled to the same treatment as regular employees.
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Case Digest (G.R. No. L-37206)

Facts:

  • The case is titled "Philippine American Management Employees Association v. Court of Industrial Relations" (G.R. No. L-37206) and was decided on April 15, 1988.
  • Petitioners were members of the Philippine American Management Employees Association (FFW), represented by Francisco A. Torpigoza and Liberto Laureano.
  • Respondents included the Court of Industrial Relations and the Philippine American Management and Financing Company, Inc.
  • The dispute involved the conversion of casual employees to regular status and its impact on their salaries and overtime pay.
  • Prior to conversion, casual employees earned wages above the statutory minimum.
  • Upon conversion, their salaries were adjusted to the minimum wage using a different calculation method.
  • Petitioners contended that their previous higher wages should remain to avoid discrimination against them compared to other regular employees.
  • The lower court dismissed their claims, stating the issue was not properly litigated and that the employer should not be penalized for previously exceeding minimum wage requirements.
  • Petitioners appealed for reconsideration of the case.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court ruled in favor of the petitioners.
  • The monthly salary of converted casual employees should be based on their actual rates at the time of conversion, calculated over 30 calendar days.
  • The Court reversed the lower court's decis...(Unlock)

Ratio:

  • The Court reasoned that converted casual employees should receive the same treatment and benefits as regular employees, including salary and compensation.
  • Reducing their salaries to the minimum wage upon conversion would effectively ...continue reading

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