Lim v. Hmr Philippines

MENDOZA, J.:

Before the Court is a petition for review on certiorari under Rule 45 of the Rules of Court assailing the March 30, 20121 Decision of the Court of Appeals (CA) in CA G.R. SP No. 112708, a case involving the computation of the back wages of an illegally dismissed employee. The Facts On February 8, 200 I, petitioner Conrado A. Lim (Lim) filed a case for illegal dismissal and money claims against respondents, HMR Philippines, Inc. (HMR)and its officers, Teresa G. Santos-Castro, Henry G. Bunag and Nelson S. Camiller. The Labor Arbiter (LA) dismissedthe complaint for lack of merit.

On April 11, 2003, the National Labor Relations Commission (NLRC)in NLRC NCR No. 02-00926-01, reversedthe LA and declared Lim to have been illegally dismissed. The dispositive portion of the NLRC decision reads: WHEREFORE, premises considered, judgment is hereby rendered declaring the appealed Decision REVERSED and SET ASIDE; that the dismissal of herein complainant-appellant was illegal and the respondent-appellee Company is hereby ordered to reinstate immediately the said employee to his former position without loss of seniority rights and other privileges. Furthermore, the respondent-appellee Company is hereby ordered to pay the complainant-appellant his full backwages, reckoned from his dismissal on February 3, 2001 up to the promulgation of this Decision.

All other claims are hereby DISMISSED for lack of merit. The Computation and Research Unit (CRU) of this Commission is hereby directed to compute the backwages and the 10% annual increase from 1998 to 2000. SO ORDERED.2 [Emphases supplied] Both Lim and HMR filed their respective petitions for certiorari before the CA, docketed as CA-G.R. SP No. 80379 and CA-G.R. SP No. 80630, respectively, which were consolidated.

Pending resolution of the petitions, the CA issued the Temporary Restraining Order (TRO)enjoining the execution of the NLRC decision. On November 15, 2005, the CA affirmed the NLRC decision with modification as follows: WHEREFORE, the Decision of the National Labor Relations Commission is AFFIRMED, with MODIFICATION by awarding moral damages and exemplary damages to Conrado A. Lim in the amount of ₱50,000.00 and ₱20,000.00, respectively, as well as attorney's fees equivalent to 10% of the total amount due him. SO ORDERED.3 On February 7, 2007, this Court, in G.R. No. 175950-51, dismissed the petition for certiorari4 filed by HMR assailing the November 15, 2005 CA decision.

Entry of judgment was ordered on July 27, 2007.5 On September 24, 2007, Lim moved for execution.6 On November 28, 2007, the Computation and Research Unit (CRU) of the NLRC computed the total award to amount to ₱2,020,053.46,7 which computed the backwages from February 3, 2001, the date of the illegal dismissal, up to October 31, 2007, the date ofactual reinstatement. HMR opposed the computation arguing that the backwages should be computed until April 11, 2003 only, the date of promulgation of the NLRC decision, as stated in the dispositive portion of the NLRC decision, which provided that backwages shall be "reckoned from his dismissal on February 3, 2001 up to the promulgation of this Decision." It also noted that the 10% annual increase was computed from 1998 to 2007, instead of only from 1998 to 2000 as decreed.8 In his Comment, Lim argued that the body of the NLRC decision explictly stated that he was entitled tofull backwages from the time he was illegally dismissed until his actual reinstatement, which was also in accord with Article 279 of the Labor Codeand all prevailing jurisprudence.9 Ruling of the LA On April 21, 2009, the LA issued the order10 granting the motion for execution filed by Lim.

Holding thatthe backwages should be reckoned until April 11, 2003 only in accordance with the NLRC decision, the LA disposed: Accordingly, in computing complainant's backwages, the following conditions must apply: 1) that the backwages cover the period February 3, 2001 up to April 11, 2003; 2) that the base rate applicable is his salary as of February 3, 2001 inclusive of the ten percent adjustment due at the time, or ₱12,500.00 plus ten percent (10%) or ₱13,750.00; 3) that the computation should include his 13th month pay; and 4) 15 days vacation pay in accordance with the personnel policy handbook, in lieu of 5 days service incentive leave pay. While complainant claims that he is entitled to 15 days sick leave pay, a perusal of the personnel policy handbook on the grant of said benefit shows that sick leave pay is availed of only upon notification of illness and conversion thereof to cash is subject to the discretion of management.

Accordingly, complainant's monetary award, which is the proper subject of enforcement through a writ of execution, in accordance with the Decision of the Commission as modified by the Court of Appeals, is computed as follows: A. Backwages: 2/3/01 to 4/11/03 = 26.26 ₱13,750.00 x 26.26 = ₱361,075.00 13th month pay (₱366,575.00/12) = 30,089.58 Vacation Leave (₱687.50 x 15 x 26.26/12) = 22,859.37 ₱414,023.95 B. Moral Damages = 50,000.00 C. Exemplary Damages = 20,000.00