Case Summary (G.R. No. L-17750)

Case Overview

• Case Citation: 116 Phil. 242 [G.R. No. L-17750. August 31, 1962]
• Parties: A. L. Ammen Transportation Company Inc. and Consolidated Auto Lines, Inc. (Petitioners) vs. Jose Borja (Respondent)
• Nature of Appeal: Appeal by certiorari from an Order of the Court of Industrial Relations.

Background

• Employment Details: Jose Borja was employed as Supervising Inspector from January 1, 1952, to March 10, 1957, with a basic salary of P180.00, daily per diems of P3.00, and a monthly bonus of P30.00.
• Initial Claim: On April 15, 1958, Borja filed an action for overtime compensation and damages in the Court of First Instance of Albay (Civil Case No. 1905).
• Subsequent Proceedings: Following the dismissal of his claim with the Department of Labor, Borja initiated proceedings in the Court of Industrial Relations.

Court of Industrial Relations Order

• Findings: The Court ordered the respondents to pay Borja for services rendered beyond eight hours a day from January 1, 1952, to March 10, 1957.
• Compensation Calculation:
  • A Chief Examiner was appointed to compute the exact amount owed, based on inspection records.
  • A 30-minute lunch break will be deducted from the total hours.
  • Sundays and holidays worked will not be considered compensable overtime.

Legal Arguments of Petitioners

• Prescription: Petitioners argued that Borja’s claim had prescribed as it was filed more than three years after the cause of action accrued.
  • Legal Reference: Cited Republic Act 1994, which mandates actions under Commonwealth Act No. 444 must be commenced within three years.
• Jurisdiction: Claimed the Court of Industrial Relations lacked jurisdiction as Borja's primary claim was for overtime wages.
• Company Memorandum: Asserted the validity of a company directive prohibiting work beyond eight hours.

Court's Rulings

• On Prescription:

  • The Court found Borja's action commenced before the effective date of Republic Act No. 1994, thus exempting it from the three-year prescription period.
  • Borja’s claim was initiated with the Department of Labor on May 29, 1957.

• On Jurisdiction:

  • The Court ruled that because Borja also sought reinstatement, the case fell within its jurisdiction beyond just claiming overtime wages.

• On Company Memorandum:

  • The Court concluded that sufficient evidence indicated Borja had received verbal instructions to work overtime despite the memorandum.

Key Legal Principles

• Labor Rights: The Court emphasized the liberal interpretation of labor laws in favor of employees (Article 1702, New Civil Code).
• Jurisdiction of the Court of Industrial Relations: Extends to claims involving employment reinstatement and wage disputes.

Key Takeaways

• The Court upheld the ruling of the Court of Industrial Relations, affirming Borja's right to claim compensation for overtime work.
• The decision highlighted the im

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Case Syllabus (G.R. No. L-17750)

Case Overview

• The case involves an appeal by A. L. Ammen Transportation Co., Inc. and Consolidated Auto Lines, Inc. from an Order of the Court of Industrial Relations dated May 9, 1960, and its subsequent Resolution on August 27, 1960.
• The respondent, Jose Borja, was employed as a Supervising Inspector and claimed compensation for overtime work rendered from January 1, 1952, to March 10, 1957, when he was dismissed.

Background of the Case

• Jose Borja was employed by the petitioners with a monthly salary of P180.00, daily per diems of P3.00, and a monthly bonus of P30.00.
• Borja filed an action for overtime compensation in the Court of First Instance of Albay, which was dismissed with prejudice after he had filed a similar claim with the Department of Labor.
• The petitioners contested Borja's claims on the grounds of prescription, jurisdiction, and adherence to company policy regarding work hours.

Court's Findings on Prescription

• The petitioners argued that Borja's claims had prescribed since his action

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