Caltex v. National Labor Relations Commission

AUSTRIA-MARTINEZ, J.:

Before us is a Petition for Review on Certiorari under Rule 45 filed by Caltex (Philippines) Inc., now Chevron Philippines, Inc. (petitioner) seeking to annul and set aside the Decision1 dated May 15, 2003, and the Resolution2 dated August 21, 2003 of the Court of Appeals (CA) in CA-G.R. SP No. 65405. Romeo T. Sto Tomas (private respondent) was a regular employee of petitioner since February 2, 1984. He was a Senior Accounting Analyst receiving a monthly salary of ₱29,860.00 at the time of his termination on July 31, 1997.

In a letter3 dated October 21, 1996, petitioner informed the Department of Labor and Employment (DOLE) of its plan to implement a redundancy program in its Marketing Division and some departments in its Batangas Refinery for the period starting October 1996 to December 1998. The letter alleged that the redundancy program is a response to the market situation which constrained petitioner to rationalize and simplify its business processes; that petitioner undertook a review, restructuring and streamlining of its organization which resulted in consolidation, abolition and outsourcing of certain functions and in the identification of certain redundant positions. The letter also states that petitioner will provide the DOLE a list of affected employees as it implements each phase of the redundancy program.

Petitioner, through a letter4 dated June 30, 1997, notified private respondent of his termination effective July 31, 1997 due to the redundancy of his position and awarded him a separation package in the amount of ₱559,458.90 consisting of the following: Regular separation/retirement benefits ₱352,721.25 under the New Retirement Plan; and Ex-gratia payment computed at ½ month's basic pay for every year of service 206,737.65 TOTAL