Title
Supreme Court
Sentinel Security Agency, Inc. vs. National Labor Relations Commission
Case
G.R. No. 122468
Decision Date
Nov 16, 1998
Security guards dismissed without cause; Sentinel held solely liable for illegal dismissal, Philam Life absolved from back wages but solidarily liable for unpaid service incentive leave.

Case Summary (G.R. No. 122468)

Decision Overview

The Supreme Court addressed two separate motions for reconsideration filed by the Agency and the Client concerning a decision rendered on September 3, 1998, which had affirmed the NLRC's findings. The Agency's motion largely reiterated arguments already considered and rejected by the Court. Consequently, it failed to provide sufficient grounds for a modification of the prior decision.

Liability Regarding Illegal Dismissal

The Court specifically noted that the illegal dismissal of the complainants by the Agency was unequivocally determined. It highlighted that there were no justifiable circumstances that would excuse the Agency's actions, clearly stating that the complainants were entitled to back wages due to their illegal dismissal.

Clarification of the Client's Liability

The motion submitted by the Client sought clarity regarding its liability for the claims of back wages and separation pay. The Court reiterated that the Client was not directly responsible for the illegal dismissal, thus absolving it from the payment of these amounts. However, the Client’s role as an indirect employer subjected it to joint and several liabilities for the service incentive leave pay due to the complainants, aligning with the provisions of Articles 106, 107, and 109 of the Labor Code.

Solidary Liability and Its Implications

The Court referenced the precedent established in Rosewood v. National Labor Relations Commission, affirming the principle that an indirect employer may be held liable for certain employee benefits if the direct employer fails in its obligations. In this case, the Service Incentive Leave pay accrued from 1991 to 1993 prior to the illegal dismissal and fell under the joint liability of both the Agency and the Client.

Conclusion of Reconsideration Motions

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