Title
Millares vs. National Labor Relations Commission
Case
G.R. No. 110524
Decision Date
Mar 14, 2000
Two long-term seafarers, deemed regular employees, were illegally dismissed without due process; entitled to reinstatement, backwages, and retirement benefits.

Case Summary (G.R. No. 5013)

Employment and Dismissal History

Douglas Millares began his employment with Esso International on November 16, 1968, serving as a machinist before being promoted to Chief Engineer in 1975, while Rogelio Lagda was hired in June 1969 and similarly promoted in 1980. Millares applied for a leave of absence which was approved, and later expressed his desire for optional retirement based on over twenty years of service. However, his retirement was denied, and he was subsequently removed from the crew roster for alleged abandonment of his position. Lagda's circumstances were nearly identical; he also sought leave and retirement, but his request was similarly denied, leading to his termination.

Initial Proceedings and NLRC Decision

On October 5, 1989, both petitioners filed a complaint with the POEA against their employers for illegal dismissal and non-payment of benefits. The POEA dismissed their complaint on July 17, 1991. Upon appeal, the NLRC affirmed this dismissal on June 1, 1993, leading to the petition for certiorari by Millares and Lagda, alleging grave abuse of discretion in determining their employment status and the validity of their termination.

Employment Status

Petitioners argued they should be recognized as regular employees under Article 280 of the Labor Code, asserting that their long-term service and the nature of their work indicated a regular employment relationship. They contended that their dismissal was unlawful due to a lack of just cause and failure to comply with due process, as they were not given notice or an opportunity to be heard.

Grounds for Petition

In their appeal, the petitioners raised several issues, emphasizing that the NLRC erred in its classification of their employment, the validity of their dismissals, their entitlement to retirement benefits, and damages incurred due to their improper termination. Millares specifically highlighted the unlawful inclusion of his name on the POEA watchlist, which allegedly disrupted his employment opportunities.

Legal Standards of Regular Employment

Article 280 states that employment is deemed regular when the worker performs activities necessary or desirable in the employer's business, irrespective of any written contract stipulations to the contrary. This definition supports the argument for recognizing petitioners as regular employees given their extensive tenure and continued service in essential positions.

Court's Analysis of Employment Status

The Court affirmed that petitioners had been regular employees due to their long-term service and the essential nature of their roles within Esso International. Their repeated reengagement by the employer, despite the conclusion of successive contracts, underscored their status as regular employees protected from termination without just cause.

Examination of Alleged Abandonment

The Court found that there was no sufficient evidence to substantiate claims of abandonment against Millares and Lagda. For abandonment to be valid, both the failure to report for work and the intent to sever the employment relationship must be demonstrated, which was not proven in this instance. The actions taken by the petitioners, including filing a complaint for illegal dismissal promptly, contradicted any claims of abandonment.

Findings on Retirement Benefits

The petitioners sought retirement benefits under an optional retirement policy they believed was corroborated by company practices, yet the NLRC had denied this claim. The Supreme Court noted that the evidence presented by the petitioners regarding the announcement of such a policy was insufficiently substantiated, which limited their ability to assert entitlement under the alleged retirement scheme.

Court's Conclusion on Termination and Entitlements

The Court

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