Title
Loon vs. Power Master, Inc.
Case
G.R. No. 189404
Decision Date
Dec 11, 2013
Workers filed claims for unpaid wages and illegal dismissal; SC ruled in their favor, awarding backwages, salary differentials, and attorney's fees, citing employer's failure to prove just cause and payment.

Case Summary (G.R. No. 189404)

Factual Antecedents

The petitioners, employed as janitors and leadsmen by Power Master, Inc. and Tri-C General Services, filed a complaint for money claims against the respondents, asserting violations of minimum wage laws, unpaid overtime, holiday pay, premium pay, service incentive leave, and thirteenth-month pay. They claimed to have been coerced into signing blank payroll sheets. Following these allegations, the petitioners amended their complaint to include claims of illegal dismissal after they were allegedly terminated for retaliatory reasons once they filed their claims. The respondents, however, largely abstained from participating in legal proceedings.

Labor Arbiter’s Ruling

On March 15, 2002, the Labor Arbiter ruled partially in favor of the petitioners, awarding them salary differentials, service incentive leave, and thirteenth-month pay. The Labor Arbiter held that the burden of proving payment of claims lay with the employer. However, the requests for backwages, overtime, holiday, and premium pays were denied due to lack of evidence to support claims of unpaid work. Furthermore, it was concluded that the petitioners had not been unlawfully dismissed since there was no evidence of a formal termination.

Proceedings Before the NLRC

Both parties appealed the Labor Arbiter’s decision to the National Labor Relations Commission (NLRC). The petitioners contested the denial of their claims for backwages and other payments, while the respondents alleged that the Labor Arbiter lacked jurisdiction. They provided payroll evidence as proof of payment which the NLRC later prolonged due to claims of procedural due process violations against the respondents. However, the NLRC ruled that the petitioners were dismissed for serious misconduct arising from their non-compliance with company directives.

NLRC Ruling

The NLRC issued a resolution on November 27, 2003, favoring the respondents, stating that they were validly dismissed and that the Labor Arbiter had jurisdiction over the case proceedings. The NLRC ruled that the evidence submitted by the respondents demonstrated compliance with due process in their defense. The absence of the petitioners' signatures in the payrolls was not deemed critical for authenticity, and the case highlighted that several individuals may possess multiple signatures.

The Court of Appeals (CA) Ruling

The CA sustained the NLRC’s decision, arguing that the petitioners were afforded due process. It held that the petitioners had not adequately justified their claims and that they had failed to comply with company policies. The CA also determined that the NLRC had properly admitted the respondents’ evidence on appeal.

The Petition

In their petition, the petitioners argued about the failure of the CA to recognize the NLRC's alleged grave abuse of discretion regarding the acceptance of the respondents' appeal and supplemental documents. They contended that the bond posted by the respondents was invalid, asserting it was not issued by an accredited surety company, and maintained that the NLRC should not have admitted the unverified supplemental appeal.

Respondents’ Position

The respondents countered that the petitioners' arguments regarding the bond's validity were raised for the first time on appeal, and reiterated that the NLRC and CA’s conclusions were justified and supported by evidence.

Issues Presented

  1. Validation of the CA's decisions concerning the NLRC's manner of processing the appeal
  2. Examination of the admissibility of the respondents' evidence
  3. Review of the petitioners' claims regarding illegal dismissal and monetary entitlements
  4. Dispute over the merits of awarded claims including backwages, salary differentials, and attorney's fees

Court’s Ruling

The Court found that the respondents had not correctly perfected their appeal due to non-compliance with the bonding requirements established by law. The subsequently re

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