Title
Supreme Court
St. Theresa's School of Novaliches Foundation vs. National Labor Relations Commission
Case
G.R. No. 122955
Decision Date
Apr 15, 1998
Contractual employee Reyes’ dismissal upheld as valid; SC deleted backwages award, affirming fixed-term employment contract legality.

Case Summary (G.R. No. 122955)

Background Facts

Adoracion Roxas hired Esther Reyes on a contract basis, initially from June 1, 1991, to March 31, 1992. Reyes commenced work earlier, on May 2, 1991. During her employment, she took approved leave due to illness but was unable to return to her position due to perceived replacement. On March 25, 1992, Roxas sent Reyes a termination letter indicating that her contract would not be renewed. This letter followed Reyes's filing of a complaint against Roxas and St. Theresa's School, claiming unfair labor practices and illegal dismissal.

Series of Proceedings

On November 12, 1993, the Labor Arbiter ruled in favor of Reyes, declaring her dismissal illegal and ordering her reinstatement with backwages and damages. The petitioners appealed this decision to the NLRC on December 7, 1993. Interim to the appeal, Reyes sought immediate execution of the reinstatement order, but her motions remained unresolved due to staff changes within the NLRC. Eventually, the NLRC sided with the petitioners on November 29, 1994, declaring Reyes's separation from service legal, but also ordering the payment of backwages from the time of dismissal until the NLRC's decision.

Award of Backwages

This case presents a crucial point regarding the appropriateness of backwages when dealing with a legally validated dismissal. Backwages are typically awarded as a remedy for illegal terminations. However, the Court recognized that since Reyes's dismissal had been deemed valid and lawful, the previous ruling granting her backwages contradicted legal principles and established jurisprudence.

Legal Rationale

The Court highlighted that contracts of employment, including those with fixed terms, must be adhered to if entered into voluntarily and are compliant with public policy. Although Reyes's contract stipulated a fixed duration, the nature of her duties did not prohibit such an agreement under Article 280 of the Labor Code. Furthermore, the special requirements for permanent employment of private teachers necessitate satisfactory se

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