Title
DORELCO Employees Union-ALU-TUCP vs. Don Orestes Romualdez Electric Cooperative, Inc.
Case
G.R. No. 240130
Decision Date
Mar 15, 2021
A union challenged a voluntary arbitrator’s ruling on employees’ salary adjustments, disputing the appeal period after quitclaims were signed. The Supreme Court clarified the appeal timeframe and remanded the case for merit resolution.

Case Summary (G.R. No. 202086)

Antecedents of the Case

In September 2012, the NCMB's voluntary arbitrator ruled in favor of the employees' entitlement to salary adjustments for the years 2010 and 2011, leading DORELCO to pay retirement benefits to employees who did not sign quitclaims. However, in 2017, the voluntary arbitrator decided that employees who had executed quitclaims upon retirement, including Epigenio S. Lumbre and others, were not entitled to the salary increases, prompting the Union to seek reconsideration of this decision. The motion for reconsideration was subsequently denied, leading to an appeal being filed with the Court of Appeals (CA) in December 2017.

Legal Issues Raised

The primary legal issue pertains to the timeliness of the appeal lodged by the Union against the decision of the voluntary arbitrator. According to the CA, appeals must be filed within ten calendar days from receipt of the arbitrator's decision, which the Union failed to comply with, resulting in a dismissal of their petition for being late. The Union argued for a fifteen-day period in accordance with Rule 43 of the Rules of Court, asserting the right to appeal the denial of their motion for reconsideration.

Court of Appeals' Resolution

On March 8, 2018, the CA dismissed the Union's petition on the grounds that the appeal was filed beyond the ten-day limit specified under Article 276 of the Labor Code. The CA emphasized that the decision of the voluntary arbitrator becomes final and executory if not appealed within the specified timeframe, and that a motion for reconsideration is excluded based on existing guidelines articulated in Department Order No. 40, series of 2003.

Argument by the Union

In its motion for reconsideration of the CA's dismissal, the Union invoked a past Supreme Court ruling, Teng v. Pahagac, which suggested that parties may seek reconsideration within the 10-day period as a necessary measure before proceeding with an appeal. However, this plea was again denied by the CA on May 21, 2018, which held firm to the position that the appeal had not been filed timely as mandated.

Supreme Court Ruling

In ruling on the case, the Supreme Court clarified disparities regarding the appeal periods. The Court concluded that under Article 276 of the Labor Code, the 10-day period serves to allow parties to file a motion for reconsideration, and only upon resolving such motion can the aggrieved party file a subsequent appeal within a 15-day timeframe as per Rule 43. This interpretation aligns with the principle of exhausting administrat

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