Title
C.P. Reyes Hospital vs. Geraldine M. Barbosa
Case
G.R. No. 228357
Decision Date
Apr 16, 2024
C.P. Reyes Hospital terminated Barbosa's probationary employment. The Court ruled her dismissal illegal, awarding her backwages and separation pay due to lack of just cause and due process.

Case Summary (G.R. No. 228357)

Summary of Facts

On January 22, 2014, Geraldine M. Barbosa filed a complaint against the C.P. Reyes Hospital for illegal dismissal, seeking reinstatement, back wages, damages, and attorney's fees. Barbosa was hired on a probationary basis on September 4, 2013, with specified training roles and a requirement to average a satisfactory score of 80% during her probation period. Following several evaluations, despite receiving passing grades, she was informed of her non-regularization due to attendance issues and performance ratings. Her employment was formally terminated on November 29, 2013.

Innitial Ruling by Labor Arbiter (LA)

The LA ruled in favor of Barbosa in June 2014, declaring her dismissal illegal and granting her back wages and separation pay. The LA relied on her satisfactory performance based on her evaluations and noted her explanations for absences.

National Labor Relations Commission (NLRC) Ruling

The NLRC reversed the LA's ruling in September 2014. It determined that Barbosa failed to meet the standards set by her evaluators, asserting that the LA did not properly consider the evaluators' feedback. The NLRC contended that Barbosa's dismissal was lawful due to her alleged frequent absenteeism.

Court of Appeals (CA) Ruling

In April 2016, the CA granted Barbosa’s petition for certiorari, reinstating the LA’s decision and modifying the monetary awards to include separation pay and back wages calculated from the time of dismissal until the decision's finality. The CA asserted that Barbosa was not prior informed adequately about her evaluation concerns before her termination and that not all absences should count against her in light of the start dates of her employment.

Issues for the Supreme Court Resolution

The crucial issues before the Supreme Court were:

  1. Whether the CA rightly found the NLRC's decision to constitute grave abuse of discretion in declaring Barbosa’s termination as legal.
  2. Whether the CA correctly awarded back wages and the proper reckoning period for such an award in the context of illegal dismissal.

Supreme Court Ruling

The Supreme Court denied the petition filed by C.P. Reyes Hospital, affirming the CA's decision. It sided with the CA's finding of grave abuse of discretion on the part of the NLRC, concluding that Barbosa's termination was improper. The Court emphasized that the NLRC's ruling lacked substantial evidence to support the claim that Barbosa failed to meet the required standards. Furthermore, the Court reasoned that since Barbosa was a probationary employee, her employment could only be terminated for just causes defined in the Labor Code or failure to meet reasonable standards made known to her at the time of engagement.

Employment Status Determination

The Court clarified that Barbosa's employment during the probationary period was indeed probationary in nature as defined under Article 296 of the Labor Code. However, her subsequent ratings, which did not reflect significant failing marks, indicated compliance with the employer's performance standards for regularization.

Findings on Dismissal Grounds

The Court concluded that Barbosa's absences were either explained, excused, or did not reflect habitual neglect or misconduct as required to justify her dismissal. It further confirmed procedur

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