Case Summary (G.R. No. 211273)
Petitioners
– Raymond A. Son
– Raymond S. Antiola
– Wilfredo E. Pollarco
All hired as probationary faculty (Son and Antiola in June 2005; Pollarco in June 2004), their appointments conditioned on completing a graduate degree and rendering satisfactory service.
Respondents
– University of Santo Tomas (UST)
– Fr. Rolando Dela Rosa, Dr. Clarita Carillo, Dr. Cynthia Loza, Fr. Edgardo Alaurin
– College of Fine Arts and Design Faculty Council
These officials and bodies implemented the non-renewal of the petitioners’ contracts for failure to complete a master’s degree.
Key Dates
– June 2004 & June 2005: Petitioners hired on probationary status
– March 3, 2010: CHED issues Memorandum directing strict implementation of master’s-degree requirement (Memo Order No. 40-08)
– June 11, 2010: Termination letters issued for non-renewal of appointments
– March 17, 2011: Labor Arbiter finds illegal dismissal and unfair labor practice
– August 10 & October 30, 2011; January 22, 2013: NLRC decisions vacillate between reinstating labor-arbiter ruling and dismissing complaints
– September 27, 2013 & January 29, 2014: Court of Appeals grants certiorari petition, upholds UST’s action
– April 18, 2018: Supreme Court resolves the petition
Applicable Law
– 1987 Philippine Constitution, Article XIV, Section 5(2) (academic freedom)
– Labor Code Article 281 (termination of probationary employees)
– DECS Order No. 92, Series of 1992 (Revised Manual of Regulations for Private Schools)
– CHED Memorandum Order No. 40-08 (Manual of Regulations for Private Higher Education, 2008)
– Civil Code Articles 1409, 1411–1412 (void contracts, pari delicto)
Factual Background
Petitioners were engaged as probationary faculty under a CBA provision that conferred tenure after six consecutive semesters of satisfactory full-time service, even without a master’s degree, so long as the degree was completed within five semesters. In 2010, CHED directed strict adherence to the master’s-degree requirement. UST then refused to renew appointments of those without the requisite degree who did not file a prescribed appeal. Petitioners, believing they had vested tenure under the CBA, did not appeal and received non-renewal letters citing failure to comply with degree requirements.
Labor Arbiter Decision
The Labor Arbiter ruled in favor of the petitioners, finding that the CBA’s tenure-by-default provision had vested tenure rights and that UST committed illegal dismissal and unfair labor practice by not observing due process and the twin-notice rule. Full reinstatement, backwages, damages, and attorney’s fees were awarded.
National Labor Relations Commission Decisions
– August 10, 2011: NLRC Special Division affirms labor-arbiter decision, upholding CBA over CHED Memorandum.
– March 26, 2012: A reconstituted NLRC Special Division reverses the August decision, holds CHED Memo Order No. 40-08 is equivalent to law and voids the CBA tenure provision.
– October 30, 2012: NLRC Second Division grants petitioners’ motion for reconsideration, reinstates the labor-arbiter decision on the same reasoning that the CBA supersedes CHED Memo and that the Memo is directory and non-retroactive.
– January 22, 2013: NLRC denies further reconsideration.
Court of Appeals Decision
The Court of Appeals granted the certiorari petition filed by UST, ruling that:
- The CBA provision granting tenure by default without a master’s degree was void as contrary to law and public policy.
- UST validly terminated probationary employees failing to meet published, reasonable standards (completion of requisite degree).
- The exercise of academic freedom and management prerogative permits an educational institution to set and enforce qualification standards for its faculty.
Accordingly, it reversed the NLRC decisions favorable to petitioners and reinstated the March 26, 2012 NLRC ruling dismissing the complaints.
Supreme Court Ruling
The Supreme Court denied the petition for review and affirmed the Court of Appeals’ judgment. It held that:
– The 1992 Revised Manual of Regulations for Private S
Case Syllabus (G.R. No. 211273)
Procedural History
- Petitioners filed a petition for review on certiorari under Rule 45 seeking to set aside:
• The Court of Appeals’ (CA) Decision of September 27, 2013 in CA-G.R. SP No. 128666 and its Resolution of January 29, 2014 denying motion for reconsideration.
• The National Labor Relations Commission’s (NLRC) Decision of March 26, 2012 (Special Division) reinstated by the CA. - The CA had earlier set aside the NLRC’s August 10, 2011 and October 30, 2012 NLRC Decisions and January 22, 2013 Resolution, reinstating the NLRC’s March 26, 2012 Decision.
- This Court, in a February 3, 2016 Resolution, gave due course to the Petition.
Factual Antecedents
- University of Santo Tomas (UST) is a CHED-regulated private educational institution; respondents include its administrators.
- Petitioners Son and Antiola were hired in June 2005, Pollarco in June 2004, all on probationary status under individual appointment papers.
- Probationary status required possession of a graduate degree (Master’s) within a prescribed probationary period plus satisfactory performance.
- UST and its Faculty Union had a Collective Bargaining Agreement (CBA) effective 2006–2011, with Article XV, Section 1 granting tenure upon six consecutive semesters of full-time service and fifteen-unit load, and deeming tenure attained if a faculty member continued beyond five semesters without completing the Master’s.
- Petitioners enrolled but failed to complete their Master’s degrees within the prescribed period yet continued teaching.
- On March 3, 2010 CHED issued a memorandum directing strict implementation of MO No. 40-08 (2008 Manual of Regulations for Private Higher Education) requiring Master’s degrees for undergraduate faculty.
- UST informed petitioners it would cease re-appointment of those without Master’s degrees unless a written appeal was filed; petitioners did not appeal, believing they had already vested tenure.
- On June 11, 2010, petitioners received non-renewal (termination) letters for failure to obtain the Master’s degree.
Collective Bargaining Agreement and Regulatory Framework
- The 2006–2011 UST–Faculty Union CBA, Article XV, Section 1: tenure track upon six semesters full-time, fifteen-unit load; master’s degree required within five semesters or tenure deemed acquired if service extended.
- 1992 Revised Manual of Regulations for Private Schools (DECS Order 92-08) and CHED Memorandum Order No. 40-08 (2008): require undergraduate faculty to hold a Master’s degree;