Title
Fortuny Garments/Johnny Co vs. Castro
Case
G.R. No. 150668
Decision Date
Dec 15, 2005
Elena Castro, a 58-year-old sewer, was dismissed after caring for her daughter post-surgery. Employer claimed she resigned, but payroll records contradicted this. SC ruled her dismissal illegal, upholding CA's decision due to lack of proof of voluntary resignation.

Case Summary (G.R. No. 100127)

Background of the Case

On December 16, 1996, Elena's daughter underwent a caesarian section, prompting Elena to take a leave of absence. Upon her return to work on December 23, 1996, she was informed by Elsa Co, co-manager of Fortuny Garments, that she was considered 'too old' to continue working, followed by a claim of dismissal due to her absence. Elena contested this, arguing she was unlawfully terminated, not voluntarily resigned.

Legal Proceedings

Elena filed a complaint against Fortuny Garments and Johnny Co asserting her illegal dismissal and demanding unpaid salaries, overtime pay, and other benefits. The Labor Arbiter ruled against her, determining she had voluntarily resigned. This decision was grounded in the rationale that her leave of absence, motivated by family obligations, signified her resignation rather than dismissal.

Labor Arbiter’s Decision

The Labor Arbiter cited a cash voucher signed by Elena as evidence of her voluntary resignation, alongside claims of her well treatment during her employment. However, Elena contested the authenticity and circumstances of her signature, alleging that she was pressured into signing blank vouchers for different purposes. The Arbiter ultimately dismissed her claims for monetary compensation, asserting that resignation carries a forfeiture of entitlements unless specified otherwise in company policy.

Appeal to the NLRC and CA

Elena appealed the Arbiter's decision to the National Labor Relations Commission (NLRC), which upheld the Arbiter’s ruling. Frustrated, she sought a remedy from the Court of Appeals (CA), which subsequently ruled in her favor, asserting that the evidence presented did not substantiated claims of voluntary resignation.

Petitioner’s Arguments

Johnny Co filed a motion for reconsideration post-CA decision, arguing that the appellate court had displaced the factual findings of the lower courts with speculative assertions. He insisted that Elena's resignation was evidenced by the cash voucher, which indicated her acceptance of separation pay.

Court’s Analysis

The Supreme Court examined the validity of the resignation assertion, emphasizing that resignation must be an unconditional act coupled with an intent to relinquish employment. The Court noted discrepancies in the evidence

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