Serrano v. Ambassador Hotel

JR., J.:

Before Us is a Petition for Review on Certiorari under Rule 45 assailing and seeking to set aside the Decision 1 and Resolution2 dated March 26, 2010 and May I9, 20 II, respectively, of the Court of Appeals ( CA) in CA-G.R. SP No. 100612, affirming with modification the May 24, 2007 Resolution3 of the National Labor Relations Commission (NLRC), Third Division, in NLRC Case No. 040480-04 (NCR Case No. 00-04-04580-03 ). Records yield the following facts: Petitioner Nerie C. Serrano (Serrano) was hired by respondent Ambassador Hotel, Inc. (AI-II) in 1969 as an accountant4 when the hotel was still under construction. When hotel operations began in I971, AI-II installed Serrano as the head of the accounting department.5 In I972, Serrano was tasked to assist in the canvass and purchase of merchandise, as well as handle the random checking of foodstuff and bar stock inventories, as additional duties.6 Sometime in 1998, an intra-corporate controversy erupted within AHI.

At the time, respondent Yolanda Chan (Chan), then the general cashier of AHI, brought to the attention of AHI's President, her father Simeon Nicolas Chan (Simeon), the alleged commission by Serrano of acts of misappropriation.7 Thereafter, the AHI board met and passed several resolutions, namely: (1) Resolution No. 6, Series of 1998, dismissing Simeon as the President and declaring all executive positions vacant and abolished; (2) Resolution No. 7, Series of 1998, designating Chan as the new president of AHI; and (3) Resolution No. 10, Series of 1998, dismissing Serrano for insubordination and loss of trust and confidence.8 Simeon, however, refused to honor the foregoing resolutions and instead barred Yolanda Chan from entering the hotel premises.9 Chan, in turn, invoked her right as a stockholder of AHI and demanded to be given the right to inspect the books and records of the hotel. Upon the order of Simeon, Serrano resisted Chan's demand,10 prompting the latter to file a case before the Securities and Exchange Commission (SEC).

Chan's right to inspect the books was sustained by the SEC and finally by this Court in G.R. No. 156574, entitled Nerie Serrano v. Yolanda Chan , on March 17, 2003.11 In the meantime, the Regional Trial Court of Manila, Branch 46, issued a Decision sustaining the legality of AHI's Board Resolutions.12 On April 10, 2001, Chan assumed the presidency of, and brought her own staff to work in AHI. Soon after, she issued Memo No. YCC-2001-2002 dated April 16, 2001, directing Serrano to prepare a detailed account report of AHI's assets, to turn over all of AHI's cash and bank accounts to Chan, and to stop dealing and/or transacting for and in behalf of the hotel.13 Other than the preparation of the account report, Serrano alleged that she was not given any job assignment but was told to report directly and daily to Chan. Due to this new working arrangement, Serrano, so she claimed, was forced to file her retirement on July 31, 2001, 30 days before its effectivity.

Thereafter, she prepared all the necessary accounting documents for a smooth turnover.14 On August 7, 2001, Serrano received a letter from Chan stating that the former can no longer avail of her retirement pay from AHI, since she had already received a lump sum amount of PhP 137,205.07, and has been receiving monthly pensions, from the Social Security System (SSS) for retiring in May 2000.15 Serrano claimed that she was not paid her 13th month pay for the years 1999, 2000, and 2001.16 Even her salary from March 1, 2000 up to August 31, 2001, she added, was not paid, together with allowances from May 16, 2000 to February 28, 2001, service charge from August 2000 to April 2001, and service incentive leave pay for the year 2001.17 It is upon the foregoing factual backdrop that Serrano had filed a complaint against AHI and/or Chan for the nonpayment of salaries, 13th month pay, separation pay, retirement benefits, and damages before the labor arbiter.18 Finding that AHI failed to discharge the burden to prove that Serrano had been paid her salaries and other monetary benefits19 inclusive of her retirement pay,20 Labor Arbiter Fatima Jambaro-Franco ruled for Serrano.

By a Decision dated April 28, 2004, the labor arbiter awarded Serrano the total amount of PhP 1,323,693.36 representing her retirement benefits and other monetary awards,21 viz:

WHEREFORE , premises considered, judgment is hereby rendered ordering the respondents Ambassador Hotel, Inc. and/or Yolanda Chan to jointly and severally pay complainant Nerie C. Serrano the amount of ONE MILLION THREE HUNDRED TWENTY THREE THOUSAND SIX HUNDRED NINETY THREE PESOS & 36/100 (₱1,323,693.36) representing her retirement benefits and other monetary award as earlier computed plus attorney's fees. On appeal, the NLRC modified the labor arbiter's Decision by deleting the award representing Serrano's retirement pay, thereby reducing the award to only PhP 324,680.40. The NLRC gave credence to respondents' claim that the SSS had already paid Serrano her retirement pay so that she is no longer entitled to receive the same monetary benefit awarded by the labor arbiter. 22 The dispositive portion of the NLRC Decision provided, thus: PREMISES CONSIDERED, the Decision of May 7, 2004 is hereby MODIFIED by deletion of the award representing retirement pay. Respondents are directed to pay complainant the following: 13th month pay 1999 2000 2001 ₱98,388.00 Unpaid salary 3/1/01 - 8/31//01 = 6 months ₱32,796 x 6 mos. ₱295,164.00