Case Summary (G.R. No. 188711)
Factual Background
Edna R. Escudero was employed by Tan Brothers Corporation since July 1991 as a bookkeeper. Starting July 2003, her salary payments became irregular and eventually ceased. In 2004, following the remodeling of the office space she occupied, Tan Brothers allegedly ceased giving her work assignments and rented out her office area. Escudero stopped reporting to work due to her dire financial situation and subsequently filed a complaint for illegal dismissal, underpayment of wages, cost of living allowance, and 13th month pay in September 2004.
Petitioner's Defense and Counterclaims
Tan Brothers contended that Escudero was paid on a daily wage basis and abandoned her employment in July 2003 when she ceased reporting to work. The corporation claimed that Escudero took with her payrolls, vouchers, and an Olivetti typewriter worth P15,000 without consent. The company lodged a complaint with local barangay authorities related to these alleged acts.
Labor Arbiter and NLRC Findings
The Labor Arbiter found Tan Brothers guilty of constructive dismissal, rejecting the abandonment claim due to the employer's failure to comply with due process and continued withholding of salary. The Labor Arbiter ordered payment of separation pay and backwages to Escudero. The National Labor Relations Commission affirmed this decision and dismissed the abandonment claim as unsupported by evidence and the typewriter issue as retaliatory and untimely.
Court of Appeals Ruling
The Court of Appeals affirmed the NLRC’s decision, ruling that abandonment was not established in the absence of proof of clear intent to sever the employer-employee relationship. Mere absence from work is insufficient to prove abandonment, especially when the employee files a complaint for illegal dismissal, which implies intent to continue employment. The Court also disregarded the claim regarding the typewriter and corporate records due to lack of evidence and due process afforded to Escudero.
Issues Presented
The main issue raised by Tan Brothers was whether Escudero abandoned her employment and whether such abandonment excuses the employer from liability for illegal dismissal and payment of benefits. The petitioner further challenged the award of backwages and separation pay.
Supreme Court’s Analysis on Abandonment
The Court emphasized that abandonment is a question of fact and must be established by substantial evidence, consisting of two elements: (1) failure to report for work without justifiable cause, and (2) a clear and deliberate intent to sever the employer-employee relationship, evidenced by overt acts. The burden of proving abandonment rests on the employer.
Evaluation of Evidence and Intent
The petitioner’s claim relied largely on allegations without adequate proof that Escudero intended to abandon her job. The Court noted that the employee continuously reported for work despite irregular salary payments until May 2004 when salary ceased entirely. The absence thereafter was attributed to the employer’s failure to pay wages, not to a voluntary abandonment. The Court also highlighted that no formal notice was issued directing her to return to work, which is typically required in abandonment cases.
On Constructive Dismissal
The Court found that Escudero was constructively dismissed when Tan Brothers deprived her of office space, work assignments, and salary payments. Constructive dismissal occurs when the employer’s actions make continued employment intolerable, compelling the employee to resign. The Court utilized the reasonable person standard to assess whether the employer’s conduct justified resignation.
On the Appropriation of Property Allegation
The Supreme Court agreed with the CA’s dismissal of the employer’s accusations regarding the unauthorized taking of the typewriter an
...continue readingCase Syllabus (G.R. No. 188711)
Background and Procedural History
- Petitioner Tan Brothers Corporation employed respondent Edna R. Escudero as a bookkeeper beginning in July 1991.
- On September 1, 2004, Escudero filed a complaint for illegal dismissal, underpayment of wages, cost of living allowance, and 13th month pay before the National Labor Relations Commission (NLRC), docketed as NLRC Case No. RAB-09-09-00255-2004.
- Escudero alleged irregular payment of wages beginning July 2003 and cessation of employment following the rental of her office space and withholding of work assignments.
- Tan Brothers contended that Escudero abandoned her employment in July 2003, taking corporate payrolls, vouchers, and a typewriter without consent.
- Labor Arbiter Joselito B. De Leon found Tan Brothers guilty of constructive dismissal on November 24, 2004, awarding separation pay and backwages totaling ₱117,229.60.
- The NLRC affirmed the Labor Arbiter’s decision on November 30, 2005, ruling that abandonment was not established and that the employer's claims of loss were retaliatory.
- The Court of Appeals (CA) denied Tan Brothers’ petition for certiorari on February 16, 2009, holding that Escudero’s constructive dismissal claim was valid and abandonment was not proven.
- Tan Brothers’ motion for reconsideration was denied by the CA on June 26, 2009.
- The petition for review on certiorari filed before the Supreme Court contested the factual findings on abandonment and illegal dismissal.
Issues Presented
- Whether Escudero abandoned her employment and thus forfeited her right to claim illegal dismissal.
- Whether Tan Brothers’ claims regarding the alleged theft of corporate materials by Escudero substantiated abandonment and justified dismissal.
- Whether the award of backwages and separation pay to Escudero was legally tenable, considering the asserted abandonment.
- The appropriateness of the CA and NLRC rulings affirming constructive dismissal and denying abandonment.
Definition and Elements of Abandonment of Employment
- Abandonment is the deliberate and unjustified refusal by an employee to resume work, constituting neglect of duty.
- It is recognized as a just cause for termination under Article 282(b) of the Labor Code.
- Two elements must coexist to establish abandonment: (1) failure to report for work without justifiable cause, and (2) a clear and deliberate intention to sever the employer-employee relation