Malicdem v. Marulas Industrial Corporation

MENDOZA, J.:

This petition for review on certiorari1 under Rule 45 of the Rules of Court filed by Macarthur Malicdem (Malicdem) and Hermenigildo Flores (Flores) assails the July 18, 2012 Decision2 and the November 12, 2012 Resolution3 of the Court of Appeals (CA) in CA-G.R. SP No. 1244 70, dismissing their petition for certiorari under Rule 65 in an action for illegal dismissal. The Facts: A complaint4 for illegal dismissal, separation pay, money claims, moral and exemplary damages, and attorney's fees was filed by petitioners Malicdem and Flores against respondents Marulas Industrial Corporation (Marulas) and Mike Mancilla (Mancilla), who were engaged in the business of manufacturing sacks intended for local and export markets. Malicdem and Flores were first hired by Marulas as extruder operators in 2006, as shown by their employment contracts.

They were responsible for the bagging of filament yarn, the quality of pp yarn package and the cleanliness of the work place area. Their employment contracts were for a period of one (1) year. Every year thereafter, they would sign a Resignation/Quitclaim in favor of Marulas a day after their contracts ended, and then sign another contract for one (1) year.

Until one day, on December 16, 2010, Flores was told not to report for work anymore after being asked to sign a paper by Marulas' HR Head to the effect that he acknowledged the completion of his contractual status. On February 1, 2011, Malicdem was also terminated after signing a similar document. Thus, both claimed to have been illegally dismissed.

Marulas countered that their contracts showed that they were fixed-term employees for a specific undertaking which was to work on a particular order of a customer for a specific period. Their severance from employment was due to the expiration of their contracts. On February 7, 2011, Malicdem and Flores lodged a complaint against Marulas and Mancilla for illegal dismissal.

On July 13, 2011, the Labor Arbiter (LA) rendered a decision5 in favor of the respondents, finding no illegal dismissal. He ruled that Malicdem and Flores were not terminated and that their employment naturally ceased when their contracts expired. The LA, however, ordered Marulas to pay Malicdem and Flores their respective wage differentials, to wit:

WHEREFORE, the complaints for illegal dismissal are dismissed for lack of merit. Respondent Marulas Industrial Corporation is, however, ordered to pay complainants wage differential in the following amounts: 1. Macarthur Malicdem ₱20,111.26 2/2/07 - 6/13/08 = None 6/14/08 - 8/27/08 = 2.47 mos. ₱377 - 362 = ₱15 x 26 days x 2.47 mos. = 963.30 8/28/08 - 6/30/10 = 22.06 mos. ₱382 - ₱362 = ₱20 x 26 days x 22.06 mos. = 11,471.20 7/1/10 - 2/2/11 = 7.03 mos. ₱404 - ₱362 = ₱42 x 26 days x 7.03 mos. = 7,676.76