Case Summary (G.R. No. 173169)
Factual Background
Numeriano Mallen, Jr. was employed as a waiter at VIPS Coffee Shop and Restaurant. He initiated a series of leaves, including sick leave for tonsillitis and subsequent vacation and paternity leaves. Upon taking sick leave in April 1998, the management awarded him an extended leave of three months citing concerns about his health due to his prior absences. This decision prompted Mallen to file a complaint with the Department of Labor and Employment (DOLE) in May 1998 for underpayment of wages and other claims. Upon returning to work, Mallen was refused employment, leading to a complaint for illegal dismissal.
Labor Arbiter's Ruling
The Labor Arbiter ruled in favor of Mallen, determining that his dismissal was illegal, primarily linked to his prior action of filing a complaint with the DOLE. The Decision mandated Mallen's reinstatement, back wages totaling P88,000.00, and additional damages, leading to a total monetary award of P99,350.90, including moral and exemplary damages.
NLRC's Ruling
The National Labor Relations Commission (NLRC) modified the Labor Arbiter’s ruling, declaring the complaint for illegal dismissal premature because the three-month leave given to Mallen had not yet expired when he filed his complaint. Nevertheless, the NLRC acknowledged the closure of VIPS Coffee Shop and ordered a financial settlement for Mallen, limiting the relief to separation pay and denying moral and exemplary damages.
Court of Appeals' Ruling
The Court of Appeals reinstated the Labor Arbiter's decision, ruling that the extended leave granted to Mallen amounted to constructive dismissal. It emphasized the undue nature of the leave he received compared to his original request, thus justifying the findings of illegal dismissal.
Supreme Court's Ruling on Petitioner's Liability
The central issue before the Supreme Court was whether Irene Martel Francisco, as Vice-President of VIPS Coffee Shop and Restaurant, was personally liable for the monetary awards due to Mallen’s alleged illegal termination. The Court reiterated the doctrine of corporate entity and personal liability. It identified the need for dual elements: the complainant must allege that the corporate officer acted in bad faith or assented to unlawful acts, and there must be clear evidence of such conduct.
In reference to previous cases, the Court highlighted that mere employment positions do not automatically imbue personal lia
...continue readingCase Syllabus (G.R. No. 173169)
The Case
- This petition for review challenges the decision of the Court of Appeals dated 16 September 2005, which overturned the National Labor Relations Commission (NLRC) ruling from 21 December 2001.
- The Court of Appeals reinstated the Labor Arbiter's decision dated 25 August 1999, in favor of the respondent, Numeriano Mallen, Jr.
The Facts
- Numeriano Mallen, Jr. was employed as a waiter at VIPS Coffee Shop and Restaurant from 5 April 1994.
- He availed himself of various leaves: sick leave from 30 January to 1 February 1998, vacation leave on 15 February 1998, and subsequently paternity leave.
- Mallen suffered from tonsillitis on 18 April 1998, which led him to take a three-day sick leave. However, he was granted a three-month leave instead, as documented in a memorandum dated 28 April 1998.
- The memorandum indicated concerns about Mallen's physical fitness due to his previous leaves and required him to provide a medical certificate confirming his fitness to work upon return.
- On 5 May 1998, Mallen filed a complaint with the Department of Labor and Employment (DOLE) for underpayment of wages and non-payment of holiday pay.
- Despite returning to work with a medical certificate in June 1998, he was refused employment, prompting him to file a complaint for illegal dismissal on 23 July 1998.
The Ruling of the Labor Arbiter
- On 25 A