Title
Pondoc vs. National Labor Relations Commission
Case
G.R. No. 116347
Decision Date
Oct 3, 1996
NLRC overstepped jurisdiction by allowing set-off of unrelated debt, annulled by SC; Labor Arbiter's award reinstated with interest.

Case Summary (G.R. No. 116347)

Factual Background

Andres Pondoc worked for Eulalio Pondoc from October 1990 until December 1991, earning a daily wage of P20.00 but did not receive premium pay for work performed during holidays and rest days. Natividad Pondoc filed a complaint on May 14, 1992, seeking total claims for salary differentials, overtime, holiday pay, and other monetary benefits, which the Labor Arbiter later ruled in favor of, determining the existence of an employer-employee relationship.

Labor Arbiter's Decision

On June 17, 1993, Labor Arbiter Esteban Abecia ordered Eulalio Pondoc to pay Natividad Pondoc P44,118.00, covering the claims filed. Eulalio Pondoc filed a motion for a set-off against this award, which the Labor Arbiter denied, issuing a writ of execution instead.

NLRC Involvement

Eulalio Pondoc then obtained a restraining order from the NLRC and filed a petition for "Injunction and Damages," where he sought to offset a claimed debt he asserted against Natividad Pondoc. On February 28, 1994, the NLRC vacated the Labor Arbiter's order, allowing the set-off and determining Natividad Pondoc's alleged indebtedness.

Petitioner’s Argument

Natividad Pondoc challenged the NLRC's decision, asserting the Labor Arbiter had rendered a final and executory ruling. She claimed the NLRC lacked jurisdiction to entertain the independent petition for injunction and damages, and that the asserted claim for set-off had not been raised adequately prior to the final ruling.

Legal Findings

The Supreme Court ruled in favor of Natividad Pondoc, stating that the NLRC had overstepped its jurisdiction by entertaining the petition for injunction, which was essentially a ploy to evade the Labor Arbiter’s execution order. The Court highlighted that the NLRC had no jurisdiction over claims not under their original jurisdiction.

Jurisdictional Errors

The Court emphasized that the NLRC lacked both original and appellate jurisdiction over Eulalio Pondoc's claim for set-off, which constituted an independent claim that had not been prop

...continue reading

Analyze Cases Smarter, Faster
Jur is a legal research platform serving the Philippines with case digests and jurisprudence resources.