Title
Philippine Clearing House Corp. vs. Magtaan
Case
G.R. No. 247775
Decision Date
Nov 10, 2021
Employee dismissed under redundancy claim; court ruled dismissal invalid due to lack of proof, upheld appeal despite procedural defects, and deemed quitclaim non-binding. Reinstatement and back wages awarded.

Case Digest (G.R. No. 247775)
Expanded Legal Reasoning Model

Facts:

In November 1998, Philippine Clearing House Corporation (the petitioner) hired Alicia O. Magtaan (the respondent) as a secretary, later assigning her to various offices. In January 2014, respondent was reassigned as Executive Assistant to VP Gil A. Lim. Soon after, due to rising manpower costs, the Board approved a recommendation to implement a Manpower Rationalization Study (MRS) aimed at determining the company’s actual manpower requirements. The MRS purportedly found that positions within the Operations Group, which included the respondent’s, were redundant; however, the Board deferred action pending further internal review. Following VP Lim’s voluntary resignation on January 1, 2015, petitioner served a termination notice on February 2, 2015, effective March 31, 2015, alleging redundancy. Petitioner's termination package included a redundancy pay, net terminal leave pay, and net severance benefit pay, which the respondent accepted by executing a quitclaim. Dissatisfied, respondent filed a complaint with the Labor Arbiter on May 22, 2015 alleging illegal dismissal. The Labor Arbiter initially ruled in favor of petitioner based on the alleged compliance with redundancy requirements and the quitclaim. However, after respondent pursued remedial actions through motions for reconsideration, the NLRC reversed the LA decision—highlighting that (1) VP Lim’s resignation could not justify redundancy; (2) the MRS submitted was unsigned and undated, thereby lacking probative value; (3) supporting affidavits were self-serving; and (4) the executed quitclaim did not bar the filing of an illegal dismissal complaint. The NLRC ordered the reinstatement of respondent with full backwages, moral and exemplary damages, and attorney’s fees, subject to a set-off for amounts already received. Petitioner, later submitting a signed MRS and Board Resolution only belatedly, contested this finding. The CA, however, affirmed the NLRC ruling, and subsequent petition for certiorari was raised by the petitioner assailing (1) the reinstatement of respondent’s appeal and (2) the sufficiency of evidence supporting redundancy, as well as arguing that the quitclaim barred respondent’s complaint.

Issues:

  • Whether the CA erred in upholding the NLRC’s decision to reinstate respondent’s appeal despite her belated submission of the Verification and Certificate of Non-Forum Shopping.
  • Whether the petitioner acted in bad faith by declaring the respondent’s position redundant without adequate, admissible evidence.
  • Whether the quitclaim executed by the respondent effectively barred her from filing an illegal dismissal complaint against the petitioner.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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