Case Summary (G.R. No. 220399)
Employment Background
Enrique Y. Sagun was employed at Hongkong and Shanghai Banking Corporation Electronic Data Processing (Philippines), Inc. (HSBC-EDPI) and subsequently applied for a position at ANZ Global Services and Operations (Manila), Inc. Upon successful completion of an interview and examination, ANZ offered him the position of Customer Service Officer on June 8, 2011. The offer included conditions regarding pre-employment screening, which stated that employment was contingent upon satisfactory results from various background checks.
Withdrawal of Job Offer
On July 11, 2011, the day Sagun was instructed to report for work, he was handed a letter retracting the job offer due to material inconsistencies found during a background check. Specifically, discrepancies arose regarding his previous employment at Siemens, including misrepresentations about his job title and the nature of his departure from the company. Sagun contended that a contract of employment had already been perfected upon his acceptance of the offer on June 8, 2011, entitling him to the rights of an employee under Philippine labor laws.
Labor Arbiter's Decision
The Labor Arbiter (LA) ruled on April 23, 2012, that no valid employment contract existed since the offer was conditional and was rightfully withdrawn based on Sagun's material misrepresentation. This ruling was based on the premise that an employer-employee relationship could not be affirmed given the circumstances leading to the withdrawal of the job offer.
NLRC Ruling
Sagun appealed to the National Labor Relations Commission (NLRC), which upheld the LA’s finding in a decision rendered on July 31, 2012. The NLRC confirmed that the employment relationship never took effect as Sagun failed to report to work by the stipulated date, and the withdrawal of the job offer was justified based on his misrepresentations.
Court of Appeals' Decision
Sagun pursued a petition for certiorari in the Court of Appeals (CA), which ruled on May 25, 2015. The CA concluded that there was no grave abuse of discretion by the NLRC. It confirmed that while a contract was perfected upon mutual agreement, the employment relationship was contingent upon Sagun's satisfactory completion of background checks—conditions which were not fulfilled due to his discrepa
...continue readingCase Syllabus (G.R. No. 220399)
Background and Parties Involved
- Petitioner Enrique Y. Sagun was employed at HSBC Electronic Data Processing (Philippines), Inc. before applying online for a position at ANZ Global Services and Operations (Manila), Inc. (ANZ).
- ANZ is a domestic corporation engaged in various banking services.
- Petitioner applied for the Payments and Cash Processing Lead position but was offered a different position: Customer Service Officer, Payments and Cash Resolution.
- The offer was made by Gay Cruzada, ANZ’s Senior Vice President for Operations.
- Paula Alcaraz is Human Resources Business Partner for ANZ and was involved in the withdrawal of the job offer.
Employment Offer and Agreement
- Petitioner accepted the job offer on June 8, 2011.
- The employment agreement was confirmed in a letter, including conditions such as a satisfactory pre-employment screening.
- Pre-employment screening included police record checks, bankruptcy checks, sanctions screening, and reference checks, with possible use of external providers.
- Employment was conditional on: (a) satisfactory background and police record checks; (b) meeting necessary visa and immigration requirements; and (c) successful reporting for work no later than July 11, 2011.
- The employment status at commencement was probationary for six months.
Petitioner's Actions and Company’s Response
- Petitioner resigned from HSBC on June 11, 2011, and submitted required pre-employment documents to ANZ.
- On July 11, 2011, petitioner was instructed to report for work but instead received a letter retracting the job offer.
- The retraction was due to material inconsistencies found following a background check concerning his previous employment at Siemens.
- Discrepancies included misrepresenting his job level (Level 2 vs. Level 1 Technical Support Representative) and the nature of his separation (terminated for cause rather than resignation).
Legal Claims and Defenses
- Petitioner claimed a perfected employment contract upon acceptance of the offer a