THE PHILIPPINE Supreme Court (SC) said a dismissed employee of Smart Communications, Inc. can keep his P15.89 million in salaries and benefits, reversing a 2012 decision of the Court of Appeals (CA) ordering him to refund the amount to his former employer.
“Employees are entitled to their accrued salaries, allowances, benefits, incentives, and bonuses from the date they received the labor arbiter’s decision ordering reinstatement until the NLRC’s (National Labor Relations Commission) reversal of the labor arbiter’s order of reinstatement becomes final and executory, as shown in the entry of judgment,” the decision penned by Justice Ramon Paul L. Hernando read.
The SC First Division reversed the November 2012 decision of the CA, which ordered Jose Leni Z. Solidum to refund his wages and benefits as his claim for this was filed late.
“The re-computation of his accrued salaries and wages was essential. Therefore, the amount of PHP 15,889,871.04 claimed in the 10th Alias Writ representing his accrued earnings from before August 10, 2009, rightfully belongs to Solidum,” the ruling stated.
The High Court said Mr. Solidum’s unpaid salary and benefits were the result of Smart’s refusal to reinstate him and that the labor arbitrator’s order for Smart to do so was immediately executory even pending appeal.
“The records of the instant case reveal Smart’s blatant defiance to comply with the July 3, 2006 Decision of the arbiter mandating Solidum’s actual reinstatement,” the SC said.
“It is crucial to reiterate that Article 223, paragraph 3, of the Labor Code, mandates the employer to promptly reinstate the dismissed employee, either by actual reinstatement under the conditions prevailing before the dismissal or through his or her inclusion in the payroll,” it added.
Smart was issued with seven alias writs by the labor arbiter, but it filed several motions to quash them, resulting in eventual non-compliance.
“The delay in implementing Solidum’s reinstatement pending appeal was due to Smart’s unjustified acts,” the decision read.
Following the issuing of the eighth and ninth alias writs of execution in October 2010 and May 2011, respectively, Mr. Solidum was first paid P2.88 million reflecting his pay and benefits from Jan. 21, 2009, to Aug. 10, 2009.
He then requested a recalculation of the entire sum owed to him and was granted P15.89 million based on a 10th alias writ.
Mr. Solidum sued Smart for wrongful termination, and in July 2006, the labor arbitrator reinstated him. However, the labor arbitrator’s ruling was overturned by the NLRC in 2009. — Chloe Mari A. Hufana