Lu v. Capada

DEL CASTILLO, J.:

We reiterate in this petition the settled view that employees are entitled to their accrued salaries during the period between the Labor Arbiter's order of reinstatement pending appeal and the resolution of the National Labor Relations Commission (NLRC) overturning that of the Labor Arbiter. Otherwise stated, even if the order of reinstatement of the Labor Arbiter is reversed on appeal, the employer is still obliged to reinstate and pay the wages of the employee during the period of appeal until reversal by a higher court or tribunal. In this case, respondents are entitled to their accrued salaries from the time petitioner received a copy of the Decision of the Labor Arbiter declaring respondents' termination illegal and ordering their reinstatement up to the date of the NLRC resolution overturning that of the Labor Arbiter.

This Petition for Review on Certiorari assails the Decision1 dated March 18, 2005 of the Court of Appeals (CA) in CA-G.R. SP No. 84744 which dismissed the petition for certiorari before it, as well as the Resolution2 dated June 16, 2005 which denied the motion for reconsideration thereto. Factual Antecedents Respondents Efren Capada, Lauro Licup, Norberto Nigos and Godofredo Magnaye were drivers while respondents Ronnie Abel, Arnel Siberre, Edmundo Capada, Nomerlito Magnaye and Alberto Dela Vega3 for illegal dismissal and non-payment of overtime pay, holiday pay, rest day pay, allowances and separation pay against petitioner on August 9, 2000 before the Labor Arbiter. On his part, petitioner imputed abandonment of work against respondents.

Proceedings before the Labor Arbiter and the NLRC On December 21, 2001, Labor Arbiter Waldo Emerson R. Gan (Gan) rendered a Decision4 in this wise: WHEREFORE, premises considered, judgment is hereby rendered as follows: 1. Declaring respondent ISLRIZ TRADING guilty of illegal dismissal. 2.

Ordering respondent to reinstate complainants to their former positions without loss of seniority rights and the payment of full backwages from date of dismissal to actual reinstatement which are computed as follows: (As of date of decision); 1. EFREN CAPADA ₱ 102,400.00 (6,400.00X16) 2. LAURO LICUP 87,040.00 (5,440.00X16) 3.

NORBERTO NIGOS 87,040.00 (5,440.00X16) 4. RONNIE ABEL 76,800.00 (4,800.00X16) 5. GODOFREDO MAGNAYE 102,400.00 (6,400.00X16) 6.

ARNEL SIBERRE 51,200.00 (3,200.00X16) 7. EDMUNDO CAPADA 76,800.00 (4,800.00X16) 8. NOMERLITO MAGNAYE 76,800.00 (4,800.00X16) 9.

ALBERTO DELA VEGA 51,200.00 (3,200.00X16) 3. Ordering respondent to pay complainants 10% of the total monetary award as attorney's fees. All other claims are dismissed for lack of merit.

SO ORDERED.5 Aggrieved, petitioner appealed6 to the NLRC which granted the appeal. The NLRC set aside the Decision of Labor Arbiter Gan in a Resolution7 dated September 5, 2002. Finding that respondents' failure to continue working for petitioner was neither caused by termination nor abandonment of work, the NLRC ordered respondents' reinstatement but without backwages.

The dispositive portion of said Resolution reads as follows: WHEREFORE, premises considered, the appeal is GRANTED and the Decision dated 21 December 2001 is hereby ordered SET ASIDE. A New Decision is hereby rendered finding that the failure to work of complainants-appellees is neither occasioned by termination (n)or abandonment of work, hence, respondents-appellants shall reinstate complainants-appellees to their former positions without backwages within ten (10) days from receipt of this Resolution.

SO ORDERED.8 Respondents filed a Motion for Reconsideration9 thereto but same was likewise denied in a Resolution10 dated November 18, 2002. This became final and executory on December 7, 2002.11 On December 9, 2003, however, respondents filed with the Labor Arbiter an Ex-Parte Motion to Set Case for Conference with Motion . 12 They averred therein that since the Decision of Labor Arbiter Gan ordered their reinstatement, a Writ of Execution13 dated April 22, 2002 was already issued for the enforcement of its reinstatement aspect as same is immediately executory even pending appeal.

But this notwithstanding and despite the issuance and subsequent finality of the NLRC Resolution which likewise ordered respondents' reinstatement, petitioner still refused to reinstate them. Thus, respondents prayed that in view of the orders of reinstatement, a computation of the award of backwages be made and that an Alias Writ of Execution for its enforcement be issued. The case was then set for pre-execution conference on January 29, February 24 and March 5, 2004.

Both parties appeared thereat but failed to come to terms on the issue of the monetary award. Hence, the office of the Labor Arbiter through Fiscal Examiner II Ma. Irene T. Trinchera (Fiscal Examiner Trinchera) issued an undated Computation14 of respondents' accrued salaries from January 1, 2002 to January 30, 2004 or for a total of 24.97 months in the amount of ₱1,110,665.60 computed as follows: Accrued Salary from January 1, 2002 to January 30, 2004 = 24.97 months 1.

Efren Capada ₱ 6,400.00 x 24.97 months ₱ 159,808.00 2. Lauro Licup ₱ 5,440.00 x 24.97 months ₱ 135,836.80 3. Norberto Nigos ₱ 5,440.00 x 24.97 months ₱ 135,836.80 4.

Ronnie Abel ₱ 4,800.00 x 24.97 months ₱ 119,856.00 5. Godofredo Magnaye ₱ 6,400.00 x 24.97 months ₱ 159,808.00 6. Arnel Siberre ₱ 3,200.00 x 24.97 months ₱ 79, 904.00 7.

Edmundo Capada ₱ 4,800.00 x 24.97 months ₱ 119, 856.00 8. Nomerlito Magnaye ₱ 4,800.00 x 24.97 months ₱ 119, 856.00 9. Alberto de la Vega ₱ 3,200.00 x 24.97 months ₱ 79, 904.00