Title
Philippine Airlines, Inc. vs. National Labor Relations Commission
Case
G.R. No. 55159
Decision Date
Dec 22, 1989
Pilot trainee dismissed after failing psychological exam; NLRC ordered back pay, but SC ruled it invalid, upholding dismissal as justified.

Case Summary (G.R. No. 55159)

Facts of the Case

Armando Dolina was enrolled in the Philippine Airlines aviation school for pilot training beginning January 16, 1973. The training agreement assured him regular employment upon completion of the course, which he completed on January 25, 1974. After fulfilling additional qualification courses, his employment timeline included various extensions due to a lack of sufficient flying hours, culminating in a situation where, after multiple assessments, he was deemed not qualified for regular employment due to unacceptable psychological test results. Following a recommendation for termination, Dolina filed a complaint for illegal dismissal and was subsequently placed under preventive suspension. His reinstatement was ordered, and a resolution was sought through arbitration.

Procedural Posture

The Labor Arbiter ultimately ruled in favor of PAL's application for clearance to terminate Dolina, which meant his dismissal was deemed valid. Dolina appealed this decision to the NLRC, which affirmed the Labor Arbiter's ruling but also mandated that Dolina be restored to the payroll with back wages effective April 1, 1979, citing an agreement between the parties that mandated his inclusion on the payroll until the case was definitively resolved.

Issue Raised

The central issue examined by the Supreme Court was whether the NLRC had committed grave abuse of discretion by ordering the continued payment of Dolina’s salaries despite affirming the Labor Arbiter's dismissal ruling. PAL contested this decision, asserting that the NLRC should not have ordered compensation since Dolina was validly dismissed.

Contractual Interpretation

The Supreme Court discussed the interpretation of the agreement between Dolina and PAL regarding his payroll status pending the resolution of the case. The court identified that the intentions of the parties should be ascertained in light of the context of the agreement. The term “pending final resolution of the case by arbitration” was interpreted to encompass only proceedings before the Labor Arbiter, concluding that any appeals were separate from that arbitration process.

NLRC's Error Reviewed

The Supreme Court highlighted the inconsistency in NLRC's decision, which affirmed the validity of Dolina's dismissal yet mandated salary payments. It clarified that awarding salaries post-dismissal contradicts established legal principles of compensation tied to work actually rendered, reinforcing the doctrine that an employee cannot receive pay without performing

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