Title
Maranaw Hotel Resort Corp. vs. National Labor Relations Commission
Case
G.R. No. 110027
Decision Date
Nov 16, 1994
Probationary employee dismissed; NLRC ordered payroll reinstatement despite valid dismissal. SC ruled NLRC abused discretion, no writ issued, no obligation to pay.

Case Summary (G.R. No. 4277)

Factual Background

On June 16, 1990, Gina G. Castro was employed on a probationary basis. Her employment was terminated on November 10, 1990, citing her failure to meet the requirements outlined in her probationary contract. Subsequently, on November 13, 1990, Castro lodged a complaint for illegal dismissal against the hotel and its general manager at the NLRC. The Labor Arbiter ruled in her favor on December 23, 1991, declaring her dismissal illegal and ordered her reinstatement, along with back wages and other benefits.

NLRC's Decision

The petitioner filed an appeal to the NLRC, contesting the Labor Arbiter's decision. On March 25, 1993, the NLRC overturned the Arbiter's ruling, asserting that Castro had not met the standards for permanent employment and that her dismissal was thus not illegal. However, the NLRC also indicated that Castro should be reinstated on the payroll from the date she filed a motion for execution of the Labor Arbiter’s decision until the NLRC’s pronouncement.

Legal Arguments by the Petitioner

In its certiorari action, the petitioner contended that the NLRC acted with grave abuse of discretion by ordering payroll reinstatement without a writ of execution being issued. The petitioner argued that the motion for execution, which Castro filed, was not resolved, leading to an absence of any formal order necessitating her payroll reinstatement. This situation raised concerns about the principle of "no work, no pay," where salaries cannot be disbursed for periods during which an employee did not perform work.

Private Respondent's Position

Castro argued that the failure to take action on her motion for execution contravened her rights and that the NLRC's resolution should not be declared void. She claimed that the appeal by the hotel was improperly perfected, asserting that the case be remanded for execution of the Labor Arbiter’s decision.

Court's Analysis and Conclusion

The Supreme Court scrutinized whether the NLRC had overstepped its authority in ordering payroll reinstatement. Article 223 of the Labor Code clearly outlines that reinstatement decisions from the Labor Arbiter concerning dismissal are immediately executory pending appeal. However, for reinstatement to take effect, there must be an issuance of a writ of execution, which the Labor Arbiter fai

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