Title
Supreme Court
SPI Technologies, Inc. vs. Mapua
Case
G.R. No. 191154
Decision Date
Apr 7, 2014
Victoria Mapua was illegally dismissed by SPI Technologies, Inc., as redundancy claims were unproven, procedural due process violated, and job ads contradicted redundancy claims. Damages were awarded, but corporate officers were not personally liable.

Case Summary (G.R. No. 191154)

Applicable Law

This case is governed by the provisions of the Labor Code of the Philippines, particularly Article 283, which addresses the grounds for the termination of employment due to redundancy and outlines the requirements for lawful termination, including the necessity of notice and payment of separation pay.

Factual Background

Victoria K. Mapua was hired in 2003, serving as the Corporate Development Research/Business Intelligence Unit Head. Following the hiring of a new supervisor in 2006, Mapua faced issues, including a significant loss of work responsibilities and a growing animosity from colleagues. Despite her efforts to clarify her attendance records and seek a transfer, her position was declared redundant, leading to her immediate termination on March 21, 2007, without proper notice. SPI subsequently issued multiple termination letters, causing further confusion about her dismissal.

Labor Arbiter Decision

The Labor Arbiter ruled in favor of Mapua on June 30, 2008, finding her dismissal illegal due to the lack of factual basis for declaring her position redundant. The ruling awarded her back wages, separation pay, moral damages, exemplary damages, and attorney’s fees, totaling P2,915,332.62. The decision emphasized the employer's failure to properly establish the redundancy and to comply with the procedural requirements of termination.

NLRC Ruling

Upon appeal, the National Labor Relations Commission reversed the Labor Arbiter’s decision on October 24, 2008, declaring SPI not guilty of illegal dismissal based on its claim that the position was redundant, which the NLRC attributed to the discretion of management. The NLRC directed SPI to pay Mapua her separation benefits, thereby contradicting the earlier finding of illegal termination.

Court of Appeals Ruling

Mapua's petition for certiorari to the Court of Appeals led to the reinstatement of the Labor Arbiter's decision on October 28, 2009, albeit with a modification to reduce the awarded 13th month pay. The Court ruled that the NLRC had erred in holding SPI’s management prerogative and reiterated that the issue of redundancy must be substantiated by adequate evidence.

Supreme Court Decision

The Supreme Court upheld the Court of Appeals ruling. It recognized the procedural due process violation arising from the simultaneous notification and termination, affirming that SPI's reliance on redundancy was unfounded. The Court detailed the requirements under Article 283 of the Labor Code and emphasized the lack of good faith in abolishing Mapua’s position, particularly in light of subsequent hiring activities that directly contradicted SPI's redundancy claims.

Damages and Atto

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