Title
Calleon vs. HZSC Realty Corp.
Case
G.R. No. 228572
Decision Date
Jan 27, 2020
Employees alleged illegal dismissal and unpaid wages after a business shutdown; Supreme Court ruled their motion for reconsideration was timely, remanding the case to the CA for merits review.

Case Summary (G.R. No. 229106)

Applicable Laws

The relevant laws pertain to the labor regulations outlined in the Labor Code of the Philippines. Specifically, Article 283 (now Article 298) addresses illegal (constructive) dismissal and procedural requirements for termination due to business closures or redundancy.

Background of the Dispute

Respondents filed complaints for illegal (constructive) dismissal against HZSC and its president, petitioner Calleon, due to the failure to rehire them after more than six months of inactivity following a temporary shutdown. The Labor Arbiter’s decision on April 29, 2016, found HZSC and Calleon liable for illegal dismissal, ordering the payment of unpaid salaries, separation pay, nominal damages, and attorney's fees.

Procedural History

Following the Arbiter's decision, Calleon and HZSC appealed to the National Labor Relations Commission (NLRC), which upheld the Labor Arbiter’s ruling in a decision dated June 30, 2016. Their subsequent motions for reconsideration were denied by the NLRC. Petitioner then filed a petition for certiorari with the Court of Appeals (CA), which was subsequently dismissed on September 23, 2016, for failure to comply with procedural requisites.

Motion for Reconsideration

Petitioner filed a motion for reconsideration on October 26, 2016, claiming that he received notice of the CA's September 23 resolution on October 11, 2016, which he argued made his filing within the required timeframe. The CA, however, deemed the motion belatedly filed in its subsequent November 28, 2016 resolution.

Supreme Court Examination

The Supreme Court examined whether the CA erred in dismissing the motion for reconsideration. It noted the procedural distinction that for parties represented by counsel, service of notice upon the counsel is required for it to have legal effect. Thus, even though the attorney received notice, the CA miscalculated the timeliness based on the petitioner's personal receipt of the CA resolution rather than the attorney's receipt.

Findings on Procedural Compliance

The Supreme Court found that the CA failed to properly consider the timeline concerning the registered letter notifying Atty. Santos. The petitioner had until October 26, 2016, to file his motion for reconsideration, which was timely based on the factual circumstances surrounding notice.

Resolution Context

Upon determining that the CA e

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