Title
Supreme Court
BPI Employees Union-Metro Manila vs. Bank of the Philippine Islands
Case
G.R. No. 178699
Decision Date
Sep 21, 2011
Bank teller Zenaida Uy was illegally dismissed; Supreme Court ordered reinstatement with back wages based on pre-dismissal salary, excluding post-dismissal benefits, and imposed 12% interest.

Case Summary (G.R. No. 178699)

Factual Antecedents

Zenaida Uy was terminated from her position as a bank teller at BPI's Escolta Branch on December 14, 1995, under claims of gross disrespect, insubordination, and absence without leave. Following her dismissal, Uy, with the assistance of the Union, filed a case for illegal dismissal against BPI. On December 31, 1997, a Voluntary Arbitrator ruled that her dismissal was illegal and ordered reinstatement along with full back wages and attorney’s fees. However, the Court of Appeals modified this decision in 1998, allowing instead a fixed amount of back wages for three years, alongside separation pay, in lieu of reinstatement. The matter escalated further as both parties appealed to the Supreme Court.

Ruling of the Voluntary Arbitrator and Court of Appeals

Upon receiving the Supreme Court’s March 31, 2005 decision, which ordered BPI to pay Uy back wages from her illegal dismissal until actual reinstatement, Uy and the Union filed a Motion for Writ of Execution to determine the amount owed. In calculating the back wages, Uy included current wage rates and benefits received during the period of her dismissal. BPI disputed this computation, asserting that Uy’s back wages should be based solely on her salary at the time of dismissal.

The Voluntary Arbitrator, in December 2005, sided with Uy’s interpretation, determining that full back wages should encapsulate all wage increases and benefits. This order prompted BPI to file a petition questioning the computation, alleging that the Voluntary Arbitrator had varied the terms of the Supreme Court order.

Court of Appeals' Amended Decision

The Court of Appeals initially issued a Temporary Restraining Order (TRO) preventing the execution of the Voluntary Arbitrator’s order. The subsequent May 24, 2006, decision recognized BPI's appeal as appropriate. However, it reversed the Voluntary Arbitrator's comprehensive wage computation, ordering that back wages must reflect Uy’s salary and regular allowances only as of the time of her dismissal, while further benefits granted post-dismissal should not be included.

This led to the July 4, 2007 Amended Decision, affirming the CA’s ruling that Uy’s back wages should be based on her salary at dismissal and specific benefits proven to be received before her termination.

Supreme Court's Ruling

Both parties submitted petitions to the Supreme Court for revision, which consolidated the cases. The Supreme Court, upholding the CA's stance, asserted that the March 31, 2005 decision did not reinstate the Voluntary Arbitrator’s earlier decision awarding extensive benefits. It clarified that "full back wages" referred only to wages without any deductions or considerations for subsequent increases or benefits.

The ruling emphasized the criteria that back wages should not be influenced by awards such as CBA benefits, reaffirming the legal principle that

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