Title
Philippine National Oil Co.-Energy Development Corp. vs. Buenviaje
Case
G.R. No. 183200-01
Decision Date
Jun 29, 2016
Employee's co-terminous status changed to regular; later dismissed for unsatisfactory performance. Courts ruled illegal dismissal, awarded backwages, separation pay, and reduced damages.

Case Summary (G.R. No. 183200-01)

Applicable Law

The decision in this case is primarily based on the provisions of the Labor Code of the Philippines, alongside the principles of regular employment and security of tenure as outlined within it.

Employment Background

Buenviaje was hired as the Assistant to the Chairman/President of PNOC-EDC, Sergio A.F. Apostol, who is also her father. Her contract stipulated a term of employment that was co-terminus with Apostol’s tenure or until June 30, 2004. Following the establishment of a new Marketing Division, Buenviaje assumed the role of Marketing Division Manager and was appointed as Senior Manager for the Marketing Division effective February 1, 2004.

Performance Appraisals

Initial performance evaluations yielded satisfactory ratings; however, a subsequent appraisal indicated unsatisfactory performance, leading to assertions by PNOC-EDC that Buenviaje did not qualify for regular employment, ultimately resulting in her dismissal. On July 31, 2004, Buenviaje was informed in writing of her non-confirmation as a regular employee and her separation from PNOC-EDC.

Labor Arbiter's Decision

The Labor Arbiter ruled that Buenviaje was a regular employee from the onset of her permanent status on July 1, 2001, as indicated in her appointment letter. The Arbiter held that there was no substantial basis for her termination and deemed Buenviaje's dismissal illegal, awarding back wages and damages due to what was deemed manifest bad faith on the part of PNOC-EDC’s management.

National Labor Relations Commission's Ruling

The NLRC affirmed Buenviaje's status as a regular employee but modified the decision regarding her dismissal, ruling that she lacked security of tenure due to the performance appraisal clauses in her appointment. It considered that her unsatisfactory performance led to her non-confirmation and thus ruled against the claim of illegal dismissal, while awarding financial assistance and back wages.

Court of Appeals' Findings

The Court of Appeals corrected the NLRC's decision, stating that the conditions under which Buenviaje was employed and the nature of her duties classified her as a regular employee. The CA further held that her dismissal did not adhere to the necessary procedural requirements. It ordered the payment of separation pay instead of reinstatement, confirming back wages and asserting that Buenviaje was entitled to attorney’s fees and moral damages due to bad faith on the employer's part.

Supreme Court's Ruling

The Supreme Court ultimately affirmed the Court of Appeals' decision while modifying the awards granted. It reaffirmed Buenviaje's status as a permanent employee and underscored that her dismissal, being based on arbitrary evaluations lacking s

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