Title
Carvajal vs. Luzon Development Bank
Case
G.R. No. 186169
Decision Date
Aug 1, 2012
Probationary employee dismissed for chronic tardiness, unauthorized absences, and unsatisfactory performance; SC upheld termination as valid, denying backwages and reinstatement.
illegal dismissal
backwages
probationary employment

Case Summary (G.R. No. 186169)

Factual Background

Petitioner was engaged by respondent bank as a trainee‑teller on probation for six months at a monthly salary of P5,175.00, effective October 28, 2003. During the first months of employment petitioner incurred numerous instances of tardiness documented by memoranda listing specific dates in November and December 2003. Petitioner submitted written explanations and received a written reprimand and a three‑day suspension without pay. On January 22, 2004 the memorandum lifting suspension also notified petitioner that her employment would be terminated effective January 23, 2004. Other cited infractions included two days of absence without leave, an incident involving the clearing of a check that later bounced, and a performance evaluation rating of 2.17 on a four‑point scale.

Labor Arbiter Proceedings and Ruling

Petitioner filed a complaint for illegal dismissal before the Labor Arbiter. The Labor Arbiter found the dismissal illegal for lack of due process, concluding that petitioner was not sufficiently notified of the charges to be answered in writing. The Labor Arbiter ordered reinstatement or, if reinstatement was not feasible, payment of backwages computed until the end of the probationary period in the amount of P20,070.38, plus ten percent attorneys’ fees. Respondents were held solidarily liable for monetary claims.

NLRC Proceedings and Ruling

Petitioner filed a partial appeal to the NLRC, contesting the Labor Arbiter’s computation of backwages and asserting regular employment status. The NLRC affirmed the Labor Arbiter’s decision with modification. The NLRC ordered reinstatement without loss of seniority and directed respondents to pay full backwages from the date of dismissal until the date of actual reinstatement. The NLRC expressly observed that reinstatement was not synonymous with regularization and affirmed petitioner’s probationary status.

Court of Appeals Proceedings and Ruling

Respondents filed a petition for certiorari with the Court of Appeals. The Court of Appeals reversed the NLRC and Labor Arbiter rulings and dismissed the complaint for illegal dismissal. The Court of Appeals concluded that petitioner was validly dismissed for failure to meet employment standards, that the termination complied with due process applicable to probationary employment, and that monetary liabilities adjudged below were therefore unwarranted.

Issues on Review Before the Supreme Court

Petitioner raised two principal grounds in the petition for review on certiorari: first, that the Labor Arbiter’s finding of illegal dismissal had become final and executory because respondents did not appeal the Labor Arbiter’s decision; and second, that the Court of Appeals decided issues that were not raised before the NLRC. Petitioner also invoked Art. 279, Labor Code, and Book VI, Rule I, Sec. 6(d) of the Implementing Rules to assert regular employment status.

Parties’ Contentions

Petitioner contended that the illegality of dismissal had been finally determined by the Labor Arbiter and that respondents’ challenge of the dismissal at the Court of Appeals exceeded the allowable issues on appeal. Petitioner further argued that she had become a regular employee under the rule deeming probationary employees regular where no standards were made known. Respondents asserted that petitioner was a probationary employee who failed to qualify for regularization for cause, specifically chronic tardiness, unauthorized absence, an error in check handling, and unsatisfactory performance, and that the bank had made its standards known in writing.

Supreme Court Ruling and Disposition

The Supreme Court denied the petition. The Court concluded that the matter was properly subject to plenary review because conflicting findings of fact existed among the tribunals, thereby invoking exceptions to the general limitation of Rule 45 to questions of law. The Court upheld the Court of Appeals’ reversal of the NLRC and Labor Arbiter rulings. The Court determined that petitioner was validly dismissed during probation for failure to meet reasonable standards previously made known to her and that due process applicable to probationary employment was observed. Accordingly, the Court affirmed that petitioner was not entitled to backwages.

Legal Basis and Reasoning

The Court first applied the settled exception to Rule 45 that permits review of factual findings where those findings conflict, are contrary to admissions, or are otherwise untenable, citing authorities relied upon in the record. On the merits the Court analyzed probationary employment law. The Court observed that the appointment letter expressly described petitioner’s status as probationary for six months, set out the conditions for possible extension or immediate termination for below‑satisfactory performance and serious disregard of company rules, and advised that performance review would precede renewal. Under Book VI, Rule I, Sec. 6(d) the employer satisfied the obligation of making reasonable standards known at engagement. The Court treated punctuality and satisfactory performance as reasonable standards that need not be specifically spelled out when adherence is a matter of common sense. T

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