Title
Umali vs. Hobbywing Solutions, Inc.
Case
G.R. No. 221356
Decision Date
Mar 14, 2018
Petitioner, hired without a contract, worked beyond probationary period, attained regular status. Probation extension invalid; dismissed without cause or due process. SC ruled illegal dismissal, ordered reinstatement with backwages.

Case Digest (G.R. No. 221356)
Expanded Legal Reasoning Model

Facts:

  • Employment and Initial Hiring
    • Maria Carmela P. Umali (petitioner) started working for Hobbywing Solutions, Inc. (respondent), an online casino gaming establishment, on June 19, 2012, as a Pitboss Supervisor.
    • Her primary duties included supervising online casino dealers and the operations of the entire gaming area or studio.
    • She did not sign any employment contract at the start of her employment but regularly received monthly salary payments.
  • Signing of Employment Contracts
    • Seven months after starting work, in January 2013, the petitioner was asked to sign two employment contracts:
      • The first covering June 19, 2012, to November 19, 2012 (5 months).
      • The second covering November 19, 2012, to February 18, 2013 (3 months).
    • She signed both contracts on January 19, 2013, despite them covering prior periods of employment.
  • Termination and Exit Process
    • On February 18, 2013, the petitioner was informed by the respondent that her employment had ended.
    • She was instructed to wait for advice on rehire or regularization and was required to sign an exit clearance to clear her from any accountabilities.
    • She was not allowed to continue working thereafter.
  • Petitioner’s Allegation and Respondent’s Position
    • Petitioner filed a complaint for illegal dismissal, alleging she was terminated without just cause and after having attained regular employee status by working beyond the probationary period.
    • The respondent admitted to hiring her on a probationary basis from June 19, 2012, to November 18, 2012, with her probation extended by agreement for three months until February 18, 2013.
    • Respondent claimed that after a commendable performance rating at the end of the extended probation, they offered to retain her services regularly, but the petitioner declined due to the non-retention of a best friend.
    • The petitioner then voluntarily processed her exit clearance and requested related documents, including a waiver of a non-competition agreement and a certificate of employment.
  • Proceedings Below
    • Labor Arbiter dismissed the illegal dismissal complaint, ruling the petitioner failed to prove she was dismissed and that she voluntarily ceased employment.
    • The NLRC reversed the Labor Arbiter, ruling she became a regular employee by operation of law after the probationary period elapsed and that she was illegally dismissed without just cause or due process.
    • The respondent’s motion for reconsideration was denied, and on appeal, the Court of Appeals reversed the NLRC’s ruling, reinstating the Labor Arbiter’s dismissal of the complaint.
    • The CA found no evidence of dismissal, that the petitioner refused an offer of regular employment, and that the exit clearance was voluntarily processed.
    • Petitioner filed the present petition for review on certiorari before the Supreme Court challenging the CA decision.

Issues:

  • Whether the petitioner attained regular employee status by working beyond six months of probationary employment without a valid contract executed at the time.
  • Whether the termination or severance of petitioner’s employment amounted to illegal dismissal under Article 281 of the Labor Code.
  • Whether the purported extension of the probationary period was valid and properly executed to delay the acquisition of regular status.
  • Whether the petitioner voluntarily resigned or was illegally dismissed by the respondent.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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