Case Summary (G.R. No. L-28870)
Key Dates and Procedural Milestones
Notable employment and disciplinary chronology: Tolentino’s various appointments and promotions (pre-1961 through 1965); formal charges filed May 23–24, 1966; preventive suspension effective July 6, 1966; investigating committee hearings July 12–September 7, 1966; SSC Resolution No. 1003 promulgated September 15, 1966 (dismissing Tolentino).
Litigation chronology: Tolentino filed a petition with the CFI on November 10, 1966; CFI dismissed for lack of jurisdiction June 5, 1967 (motion for reconsideration denied December 1, 1967); Prosecution Division of CIR filed ULP complaint May 7, 1968 (CIR decision finding unfair labor practice and ordering reinstatement rendered March 5, 1974; CIR en banc denied reconsideration August 13, 1974). The Supreme Court consolidated the related appeals and issued the subject decision in the Regular course of review.
Applicable Law and Constitutional Framework
Statutory framework relied upon in the decision: Social Security Act (R.A. No. 1161), as amended by R.A. No. 2658; Civil Service Act of 1959 (R.A. No. 2260) and Civil Service Rules (including Section 33 of R.A. 2260 governing disciplinary jurisdiction); Republic Act No. 6040 (amending R.A. 2260, enacted August 4, 1969). Jurisdictional source for the CIR: Commonwealth Act No. 103 (establishing the CIR). Constitutional provision referenced in the decision: Article XII(B), Section 1(1) of the 1973 Constitution (declaring the civil service to embrace every branch, agency, subdivision and instrumentality of government, including government-owned or controlled corporations).
Factual Background
Tolentino had a long tenure with the SSS and held progressively higher positions culminating in designation as Technical Assistant (Executive Assistant) with a corresponding salary increase. In May 1966 the SSS Administrator filed charges of dishonesty and electioneering against Tolentino. After Tolentino’s answers were deemed unsatisfactory, he was placed on preventive suspension and an investigating committee conducted hearings from July 12 to September 7, 1966. The SSC, through Resolution No. 1003 dated September 15, 1966, affirmed the Administrator’s finding of dishonesty and imposed dismissal from the service.
Procedural Posture Before Trial and Industrial Courts
Tolentino sought relief from the CFI via a petition for a writ of prohibition with preliminary mandatory injunction contesting the jurisdiction of the SSC to decide administrative disciplinary charges against civil service employees, arguing that exclusive disciplinary jurisdiction lay with the Commissioner of Civil Service under R.A. 2260. The CFI dismissed Tolentino’s petition for lack of jurisdiction to issue the requested writs against the SSC, reasoning that the SSC in its quasi-judicial capacity was of the same rank as the CFI. Tolentino then participated in a CIR unfair labor practice proceeding initiated by the CIR’s Prosecution Division on behalf of the SSS Employees’ Labor Union and himself; the CIR later found the SSS and Administrator guilty of unfair labor practice and ordered reinstatement with back wages.
Central Legal Issue
Whether, at the time of the disciplinary proceedings (1966–1968) and at the time the CIR unfair labor practice case was filed (May 7, 1968), the Social Security Commission, the SSS Administrator, or the Court of Industrial Relations had jurisdiction to investigate, adjudicate, and impose disciplinary sanctions (including removal) upon SSS employees; and whether subsequent statutory changes (notably R.A. 6040) or constitutional provisions affected the jurisdictional analysis.
Governing Principles on Jurisdiction
The Court reiterated settled jurisdictional principles: jurisdiction is conferred by statute in effect when an action commences; it is not created by consent, acquiescence, or unilateral assumption. Once vested, jurisdiction persists until final termination of the case. The Court thus examined the statutes and rules that governed disciplinary jurisdiction at the time the contested actions were initiated and decided (mid-1960s).
Analysis under the Civil Service Act (R.A. 2260) and Pre–R.A. 6040 Law
Under R.A. 2260 (Civil Service Act of 1959), Section 33 (as then worded) vested exclusive authority to impose disciplinary sanctions on civil service personnel in the Commissioner of Civil Service. Department heads or agency heads had recommendatory roles and limited original jurisdiction only as later provided by amendment. The Civil Service Rules and Section 27 reinforced that administrative disciplinary records were to be forwarded to the Civil Service Commissioner for decision. The Court, following Mendoza v. Social Security Commission, concluded that, at the time of Tolentino’s charges and the SSC’s Resolution No. 1003 (1966), the SSC and its Administrator lacked authority to impose final disciplinary sanctions falling within the purview reserved to the Civil Service Commissioner.
Effect of Civil Service Circulars and Exempt Service Claims
The SSC had sought to evade Civil Service jurisdiction by invoking Civil Service memorandum circulars (January 1964) classifying certain GOCC employees as part of the exempt service when they were covered by collective bargaining agreements. The Court found serious doubts as to the validity of those circulars, noting that the statutory definition of the exempt service (Section 6, R.A. 2260, and interpretive Civil Service Rules) limited the exempt class and did not permit administrative expansion by circular. Thus, those circulars could not properly deprive civil service employees of the protections and disciplinary mechanisms established by law.
Temporal Effect of R.A. 6040 and Non‑Retroactivity
The Legislature subsequently enacted R.A. 6040 (August 4, 1969), which broadened the exempt service to include employees of GOCCs primarily performing proprietary functions who were covered by collective bargaining agreements, and added provisos to Section 33 granting original disciplinary jurisdiction to heads of departments and agencies, with limited appealability. The Court held that R.A. 6040 could not be applied retroactively to validate SSC disciplinary action taken in 1966–1968 because the statute became effective after the events and litigation were already pending and because R.A. 6040 expressly preserved preexisting rights and privileges under the prior Civil Service law. Consequently, the pre‑R.A. 6040 legal regime (exclusive jurisdiction of the Commissioner of Civil Service) governed Tolentino’s case.
Constitutional Consistency of R.A. 6040
Separately, the Court evaluated the constitutionality of R.A. 6040 under the 1973 Constitution’s provision that the civil service embraces every branch, agency, subdivision, and instrumentality of the government, including GOCCs. The Court found that insofar as R.A. 6040 insulated GOCCs with collective bargaining agreements from the reach of the Civil Service Commission, that legislative change conflicted with the constitutional mandate and was therefore void to the extent of the inconsistency.
Disposition — CFI Appeal (G.R. No. L‑28870)
The Supreme Court affirmed that Resolution No. 1003 and the SSC’
...continue readingCase Syllabus (G.R. No. L-28870)
Citation and Panel
- Reported at 223 Phil. 46, Second Division; G.R. No. L-28870 and G.R. No. L-39149, promulgated September 6, 1985.
- Decision penned by Makasiar, C.J.
- Concurrence: Concepcion, Jr., Escolin, Cuevas, and Alampay, JJ.
- Aquino (Chairman) and Abad Santos, J., were on leave.
Parties and Consolidation
- Petitioner-appellant in G.R. No. L-28870: Amado D. Tolentino.
- Respondents-appellees in G.R. No. L-28870: Social Security Commission (SSC), Gilberto Teodoro, and Angel Penano.
- Petitioners in G.R. No. L-39149: Social Security System (SSS) and Gilberto Teodoro.
- Respondents in G.R. No. L-39149: Court of Industrial Relations (CIR), SSS Employees' Labor Union - NLU, and Amado Tolentino.
- On January 13, 1975 this Court issued a resolution consolidating the two appeal cases because they involved the same parties and substantially the same issues.
Central Question Presented
- Whether the Social Security Commission (and its Administrator) had jurisdiction to hear, investigate, decide and impose disciplinary sanctions on administrative charges filed against its own employees at the time Resolution No. 1003 (dated September 15, 1966) was promulgated and implemented.
- Whether the Court of Industrial Relations had jurisdiction to hear and decide the unfair labor practice case (Case No. 5042-ULP) filed May 7, 1968, which sought reinstatement and back wages for Tolentino.
Relevant Procedural History — G.R. No. L-28870 (CFI Petition)
- November 10, 1966: Amado Tolentino filed with the Court of First Instance (CFI) of Rizal (Branch IX, Quezon City) a petition for prohibition with preliminary mandatory injunction challenging the validity of Resolution No. 1003 of the Social Security Commission.
- Respondents filed an answer (dated December 8, 1966) raising, among other defenses, lack of jurisdiction of the CFI over the Social Security Commission on the ground that the Commission was of the same rank as the CFI.
- June 5, 1967: The CFI rendered an order dismissing Tolentino’s petition for lack of jurisdiction over the Commission, following the decision in Poblete Construction Co., et al. v. Social Security Commission, et al. (G.R. No. L-17605, January 22, 1964).
- August 12, 1967: Tolentino filed a motion for reconsideration within the reglementary period.
- December 1, 1967: The CFI denied the motion for reconsideration.
- Tolentino elevated the matter to this Court (G.R. No. L-28870); the petition was submitted for decision on January 21, 1969.
Relevant Procedural History — G.R. No. L-39149 (CIR Case)
- May 7, 1968: The Prosecution Division of the Court of Industrial Relations filed, on motion of the SSS Employees' Labor Union - NLU and Amado Tolentino, a complaint charging the SSS and Gilberto Teodoro with unfair labor practices; docketed as Case No. 5042-ULP.
- May 16, 1968: SSS answered, denied the unfair labor practice charges, and asserted that Tolentino had been dismissed after being charged and found guilty of dishonesty following formal investigation.
- March 5, 1974: The CIR rendered a decision declaring SSS and Gilberto Teodoro guilty of unfair labor practice, ordering cease and desist, reinstatement of Tolentino with back wages from date of dismissal up to actual reinstatement, and without loss of seniority and other privileges.
- March 12, 1974: SSS filed motion for reconsideration.
- August 13, 1974: CIR en banc denied SSS’s motion for reconsideration.
- Petition for review on certiorari filed by SSS and Gilberto Teodoro to this Court (G.R. No. L-39149).
Facts Pertinent to the Administrative Action Against Tolentino
- Tolentino’s employment and appointments:
- Employed as Editorial Assistant in SSS before April 14, 1961 with salary P2,400.00 per annum; appointment approved by Civil Service Commission.
- April 14, 1961: Promotion in salary from P2,400 to P2,580 per annum effective March 1, 1961; approved by Civil Service Commission (Annex “A”).
- March 16, 1962: Designation changed from Editorial Assistant to Credit Analyst; appointment approved by Civil Service Commission (Annex “B”).
- Tolentino had resigned from SSS to run in 1961 municipal elections; on June 15, 1964 was appointed reinstating him to Credit Analyst (Annex “C”); took Oath of Office on June 16, 1964 (Annex “D”).
- May 11, 1965: Designation changed from Credit Analyst to Technical Assistant (Executive Assistant), effective January 1, 1965, with salary increase from P2,580 to P4,200 per annum (Annex “E”).
- Position held at time of disciplinary action: Technical Assistant (Executive Assistant).
- Charges and investigation:
- May 23 and 24, 1966: Administrator filed charges against Tolentino for dishonesty and electioneering.
- July 2, 1966: Tolentino answered and denied charges in two letters to the Administrator.
- July 6, 1966: Tolentino received a memorandum signed by Reynaldo Gregorio as Acting Administrator informing him that his answer was unsatisfactory and that his case would be formally investigated by a committee (Attys. Ernesto D. Duran (Chairman), Fabiana J. Patag, and Florencio Ongkingko) constituted by Personnel Order 52-G; memorandum placed Tolentino on preventive suspension effective July, 1966.
- July 12, 1966 — September 7, 1966: Committee conducted and terminated investigation.
- September 20, 1966: Administrator sent letter (received by Tolentino on September 30, 1966) informing him of his dismissal by virtue of Resolution No. 1003 of the Social Security Commission, which found Tolentino guilty of dishonesty and imposed dismissal effective on the first day of his preventive suspension (July 6, 1966) with prejudice to reinstatement.
Claims and Theories Advanced by Tolentino (G.R. No. L-28870)
- Tolentino’s principal contention: Resolution No. 1003 and the decision of the Administrator affirmed by the Commission are null and void for lack of jurisdiction because the power to decide administrative cases against civil service employees is vested exclusively in the Civil Service Commissioner under the Civil Service Act of 1959 and Civil Service Rules.
- Tolentino sought annulment and setting aside of the CFI orders dismissing his petition and denying reconsideration, and relief by writs challenging the administrative adjudication.
Claims and Defenses Advanced by Respondents (SSS/Commission/CIR)
- Commission’s/district respondents’ defense in the CFI: affirmative defense of lack of jurisdiction of the CFI over the Social Security Commission because the Commission is of the same rank as the CFI.
- SSS’s defense in the CIR: Denial of unfair labor practice allegation; asserted Tolentino’s dismissal resulted from charges of dishonesty sustained after formal investigation.
- Commission invoked section 5 of the Social Se