Title
Supreme Court
Phimco Industries, Inc. vs. National Labor Relations Commission
Case
G.R. No. 118041
Decision Date
Jun 11, 1997
Employee resigned, company delayed response, terminated him post-departure; SC ruled termination unjust, awarded reduced separation pay per company policy.

Case Digest (G.R. No. 118289)
Expanded Legal Reasoning Model

Facts:

  • Employment History: Renato Carpio was hired by PHIMCO Industries, Inc. on April 1, 1983, as a log and lumber grader. He was promoted to documentation assistant in 1987 and later to handling the company's export of selective lumber in 1990.
  • Resignation: On August 14, 1991, Carpio submitted a resignation letter, effective August 30, 1991, citing plans to seek better opportunities in the United States. He continued working until the effective date of his resignation.
  • Company Inaction: PHIMCO did not act on Carpio's resignation until September 4, 1991, when he was asked to explain his failure to serve a 30-day advance notice and seek approval for a shorter notification period. By then, Carpio had already left for the U.S.
  • Clarification and Request: On September 12, 1991, Carpio, through his wife, clarified his resignation and requested separation pay. PHIMCO denied his request, citing violations of company rules (Rules 7, 7.1, and 7.2 of the company Handbook) and terminated him on November 4, 1991.
  • Labor Complaint: Carpio filed a complaint for non-payment of separation pay on June 16, 1993. The Labor Arbiter ruled in his favor, awarding separation benefits equivalent to one month's salary for every year of service. The NLRC affirmed the decision.

Issues:

  • Whether Carpio’s termination was valid based on his alleged violation of company rules regarding resignation.
  • Whether Carpio is entitled to separation pay despite his resignation and subsequent termination.
  • Whether the NLRC gravely abused its discretion in awarding separation pay and attorney’s fees to Carpio.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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