Title
Silliman University vs. National Labor Relations Commission
Case
G.R. No. 92789
Decision Date
Sep 2, 1992
Silliman University unilaterally canceled a faculty salary agreement, leading to complaints of unfair labor practices. The Labor Arbiter ruled for the faculty, awarding damages and fees. Silliman’s late appeal was dismissed by NLRC and Supreme Court, affirming the decision’s finality.
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Case Summary (G.R. No. 92789)

Background of the Case

The genesis of the conflict dates back to 1981 when negotiations about a standardized salary system, termed the Faculty Salary Administration Scheme (FSAS), began. Led by Engineer Isagani Lepiten, the faculty members of the College of Engineering expressed their discontent with the FSAS, believing it to be detrimental to their interests. A revised compensation formula was proposed and agreed upon in July 1982, which took effect from June 1, 1982, and continued until May 31, 1987. However, on June 1, 1987, the University unilaterally repudiated the FSAS without the knowledge of Lepiten and his colleagues.

Proceedings before Labor Arbiter and NLRC

The engineering faculty then lodged a complaint alleging unfair labor practices and breach of contract, claiming that the University violated their rights under the previously agreed FSAS. The Labor Arbiter eventually rendered a decision ordering the University to pay the complainants their rightful salaries and damages, including moral damages amounting to P20,000.00 and attorney’s fees equivalent to 10% of the total monetary awards.

Silliman University subsequently filed a partial appeal with the NLRC, contesting the appropriateness of the damage award and the attorney's fees imposed by the Labor Arbiter.

NLRC Resolution and Petitioner’s Claims

On February 15, 1990, the NLRC dismissed the appeal for lack of merit and affirmed the Labor Arbiter's decision. The petitioner’s appeal was deemed time-barred; it was filed beyond the ten-day reglementary period after the receipt of the Labor Arbiter's decision. The petitioner had received the decision on March 2, 1989, but filed the appeal on March 15, 1989, exceeding the allowed timeframe under Section 223 of the Labor Code.

Discussion on Jurisdiction and Service of Documents

The petitioner argued that the appeal was not timely due to what it claimed was incomplete service of the NLRC's decision—an assertion that was dismissed by the Court. The petitioner's counsel contended that service was only complete upon his personal receipt. However, the Court upheld the principle that service via registered mail is complete when received by an authorized representative, which in

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