G.R. No. 85519 - University of Sto. Tomas vs. National Labor Relations Commission

Dr. Basilio E. Borja was first appointed as “affiliate faculty” in the UST Faculty of Medicine and Surgery on September 29, 1976.
Subsequent appointments were as follows:

During the second semester of 1976–77, he was appointed as an instructor with a load of 12 hours per week.
For the school year 1977–78, he was reappointed as instructor with a teaching load of 9 hours per week in the first semester and 2 hours per week in the second semester.
On June 10, 1978, he was appointed as Instructor III for the school year 1978–79 with 8 hours per week in the first semester and 7 hours per week in the second semester.
On July 27, 1979, amid negative evaluations yet a critical shortage of staff, he was reappointed as Instructor III for the school year 1979–80 with a load of 6 hours per week in both semesters.

In March 1979, the Dean observed that Dr. Borja’s performance was sub-standard and inefficient based on evaluation sheets.
Despite being informed of negative feedback and promising improvement, his performance did not meet the required standards over the succeeding academic periods.

In July 1982, after his reappointment lapsed due to unsatisfactory performance, Dr. Borja filed a complaint for illegal dismissal before the National Labor Relations Commission (NLRC).
The labor arbiter rendered a decision on July 19, 1984, ordering the immediate reinstatement of Dr. Borja along with full backwages, moral damages, and attorney’s fees.
Later, on September 30, 1988, the NLRC modified this decision by limiting backwages to three years and altering the awards for actual/compensatory, moral, and exemplary damages, as well as attorney’s fees.

The University of Sto. Tomas (UST) and its officers filed a petition challenging the NLRC’s decisions.
Their arguments were centered on three primary allegations:

That the NLRC erred in finding that Dr. Borja had acquired tenure, which they argued was contrary to the actual evidence and law.
That NLRC committed reversible error by holding that his services were constructively terminated when his appointment simply lapsed as stipulated by its terms.
That the award of moral and exemplary damages was excessive, unjust, and amounted to grave abuse of discretion.

The NLRC’s findings indicated that Dr. Borja rendered only eight semesters (four academic years) of professional services; however, his status failure to meet the criteria for full-time teaching was crucial.
The Manual of Regulations for Private Schools requires:

The teacher must be full-time.
The teacher must render three consecutive years of satisfactory service.
Full-time is defined as having the entire working day devoted solely to the institution, having no other regular remunerative employment, and receiving a regular monthly salary regardless of the number of teaching hours.

Evidence established that Dr. Borja also maintained a private medical practice (serving as a psychiatrist) and was not paid on a regular monthly basis, with an average teaching load far below the requisite 18 hours per week for full-time status.

Based on these findings, it was determined that Dr. Borja did not qualify as a full-time teacher and, consequently, did not acquire tenure.
As his appointment was temporary and governed by the discretion of the university, not extending or renewing it was legally permissible.

Was Dr. Borja considered a full-time teacher who had met the prerequisites for acquiring tenure under the Manual of Regulations for Private Schools?
Did Dr. Borja satisfy the requirement of rendering three consecutive years of satisfactory service under the conditions for regularization?
Is the characterization of his employment as part-time versus full-time appropriate given his additional remunerative engagements?
Was the non-renewal of his appointment tantamount to illegal dismissal or constructive termination?
Were the awards of backwages, compensatory damages, moral damages, exemplary damages, and attorney’s fees correctly computed and legally warranted by the NLRC?