Title
Odango vs. National Labor Relations Commission
Case
G.R. No. 147420
Decision Date
Jun 10, 2004
Employees claimed wage differentials due to underpayment; courts ruled against them, citing procedural flaws and lack of legal basis, affirming "no work, no pay" principle.

Case Summary (G.R. No. 147420)

Antecedent Facts

The petitioners are monthly-paid employees of ANTECO and worked from Monday to Friday with a half day on Saturday. The Department of Labor and Employment (DOLE) discovered that ANTECO had underpaid its employees and ordered the cooperative to pay wage differentials amounting to P1,427,412.75 on 10 September 1989. When ANTECO failed to comply, the employees filed complaints with the NLRC in 1995, leading to the Labor Arbiter's decision on 29 November 1996, which awarded them P1,017,507.73 in wage differentials plus attorney’s fees. ANTECO appealed this decision to the NLRC, which reversed the ruling on 27 November 1997. The petitioners then sought review from the Court of Appeals.

The Labor Arbiter's Ruling

The Labor Arbiter ruled in favor of the petitioners stating ANTECO had not sufficiently countered their argument that monthly-paid employees should be compensated for all days in a month which included unworked days such as half-Saturdays and Sundays. The Arbiter concluded that since ANTECO was using a divisor of 304 days to calculate leave credits, this indicated it was accounting for only 304 days of work per year, leaving a deficit of 61 days of wage payments.

The NLRC's Ruling

In reversing the Labor Arbiter's decision, the NLRC argued that the daily wage rates of ANTECO's employees surpassed the minimum wage requirements. It noted that the lowest employee wage of P3,788 monthly translated to a daily rate of P124.54, which was above the legal minimum. The NLRC criticized the Labor Arbiter's conclusion as inconsistent with his own calculations and stated that using a divisor of 304 was more favorable to the employees.

The Ruling of the Court of Appeals

The Court of Appeals deemed the petition deficient for failing to adequately assert claims of abuse of discretion by the NLRC, thus leading to its dismissal. The appellate court criticized the petitioners for not articulating specific instances of alleged abuse, characterizing their allegations as too broad.

The Issues

The petitioners raised two primary issues: whether the Court of Appeals was correct in dismissing the case and whether they were entitled to the claimed wage differentials.

The Ruling of the Court

The Supreme Court found no merit in the petition. The Court analyzed the grounds outlined in the Court of Appeals' dismissal and clarified that the procedural deficiencies were independent and distinct from prior rulings. The petitioners’ failure to specify where the NLRC abused its discretion was a critical error. The Court further acknowledged that the extraordinary remedy of certiorari is reserved for instances of grave abuse of discretion or lack of jurisdiction, affirming the NLRC's interpretation of the wage calculations.

Petitioners' Claim for Wage Differentials

Petitioners anchored their claims for wage differentials on a prov

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