Title
Cagayan Capitol College vs. National Labor Relations Commission
Case
G.R. No. 90010-11
Decision Date
Sep 14, 1990
Probationary instructors Villegas and Pagapong, denied contract renewal due to unsatisfactory performance, claimed illegal dismissal. Supreme Court ruled non-renewal valid, upholding employer's prerogative to evaluate probationary employees.

Case Summary (G.R. No. 90010-11)

Employment Background

Villegas was employed as an instructor in the Nautical Science Department on a series of contractual agreements spanning ten months, ending in 1984. Following his last contract, which included an extension for a summer session, his application for re-employment was rejected due to complaints regarding his teaching performance. Pagapong, similarly a probationary instructor, faced non-renewal based on evaluations of her performance and attendance.

Legal Proceedings at the NLRC

Villegas filed a complaint for illegal dismissal with the National Labor Relations Commission (NLRC), seeking reinstatement, back wages, moral damages, and attorney's fees, alongside claims related to underpayment and allowances. Pagapong filed a similar complaint also asserting illegal dismissal. The cases were jointly heard, with both respondents alleging violations of their right to due process and security of tenure.

Decisions by Labor Arbiter and NLRC

The Labor Arbiter dismissed the complaints on the grounds that Villegas and Pagapong were still within their probationary periods and thus management had the discretion not to renew their contracts. Upon appeal, the NLRC modified the Labor Arbiter's decision, asserting that both respondents had fulfilled the requirements for permanent employment as per the Manual of Regulations for Private Schools, thereby ruling their non-renewal as illegal dismissal.

Petitioner’s Grounds for Appeal

In seeking a review of the NLRC decision, the petitioners contended that the NLRC erred in interpreting the Manual of Regulations and existing labor laws. They argued that the respondents did not acquire permanent status due to unsatisfactory performance during probation, thus entitling the petitioners to terminate the employment contracts lawfully.

Court’s Analysis of Probationary Employment

The Supreme Court evaluated the definitions and criteria surrounding probationary employment, acknowledging the control that an employer holds in determining the satisfactory performance of a probationary employee. The Court outlined the necessity for probationary employees to not only work for a specified time but also meet performance standards to transition to permanent status.

Specific Findings on Employee Performance

In Villegas’s case, evidence of student complaints led to an official investigation that identified performance issues, justifying the petitioners’ de

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