Title
Philippine Airlines, Inc. vs. National Labor Relations Commission
Case
G.R. No. L-64809
Decision Date
Nov 29, 1983
Employees dismissed for pilfering wine from PAL's warehouse filed illegal dismissal case; SC upheld reinstatement but reduced backwages to 2.5 years, citing equitable policy and case delays.
A

Case Summary (G.R. No. L-64809)

Procedural History

The respondents were dismissed from their positions following the administrative investigation and were subsequently found guilty of misconduct. They contested their dismissal by filing a case for illegal dismissal, which was later assigned to Labor Arbiter Francisco Jose, Jr. On August 14, 1981, the Labor Arbiter ruled in favor of the respondents, ordering their reinstatement with full backwages from the date of their preventive suspension until their actual reinstatement.

Appeal to the NLRC

Dissatisfied with the Labor Arbiter's decision, Philippine Airlines filed an appeal with the NLRC on December 16, 1981. The NLRC affirmed the Labor Arbiter's ruling in its entirety on June 16, 1983. Following the denial of its motion for reconsideration, Philippine Airlines proceeded to file a petition for certiorari to challenge the NLRC's decision.

Points of Contention

Philippine Airlines no longer disputed the reinstatement of the respondents but argued that it should not be liable for the entire amount of backwages due to their good faith belief regarding the misconduct. The airline stressed that the case's lengthy duration was not attributable to its own fault.

Court's Reasoning on Backwages

The Court found merit in the petitioner’s arguments, referencing previous cases where it had set a precedent regarding the reasonable limitation of backwages. Specifically, it highlighted the policy of fixing backwages to a maximum period, generally not exceeding three years, to simplify the process of awarding backwages and mitigate delays caused by the need to prove alternative earnings for employees during the period.

Resolution of Backwages

Taking into account the lengthy pendency of this specific case, which had lasted for over five years, the Court ruled that an award of two and one-half years of backwages was just and equitable. It modified the lower court's decisions regarding payments, ordering Philippine

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