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The Court affirmed the decision of the NLRC with some modifications. It summarized that John McLeod filed a complaint against multiple parties for unpaid retirement benefits and other claims relating to his employment from 1980 to 1992. The NLRC found some defendants liable and awarded McLeod partial payment. The Court upheld most of the NLRC's decision but absolved one individual defendant of liability and removed awards for moral damages and attorney's fees.
The Court affirmed the decision of the NLRC with some modifications. It summarized that John McLeod filed a complaint against multiple parties for unpaid retirement benefits and other claims relating to his employment from 1980 to 1992. The NLRC found some defendants liable and awarded McLeod partial payment. The Court upheld most of the NLRC's decision but absolved one individual defendant of liability and removed awards for moral damages and attorney's fees.
The Court affirmed the decision of the NLRC with some modifications. It summarized that John McLeod filed a complaint against multiple parties for unpaid retirement benefits and other claims relating to his employment from 1980 to 1992. The NLRC found some defendants liable and awarded McLeod partial payment. The Court upheld most of the NLRC's decision but absolved one individual defendant of liability and removed awards for moral damages and attorney's fees.
McLeod v NLRC (2007) CA affirmed NLRC with modifications for
additional moral damages, exemplary damages,
Carpio and attorney’s fees. Topic: Past Practices II. ISSUES: I. FACTS: Relevant to the discussion: W/N McLeod was entitled Feb 2, 1995 – John McLeod filed a complaint for to any of the employee benefits in his money claim? retirement benefits, vacation and sick leave benefits, NO non-payment of unused airline tickets, holiday pay, III. RATIONALE: underpayment of salary and 13th month pay, moral and exemplary damages, attorney’s fees plus interest a. McLeod only an employee of PMI (not by any of the against Filipinas Synthetic Corporation (Filsyn), Far defendants) as acting VP and GM from June 20, 1980 Eastern Textile Mills, Inc. (FETMI), Sta. Rosa Textiles, to December 31, 1992 Inc. (SRTI), Patricio Lim and Eric Hu. b. PMI not renamed SRTI, SRTI merely acquired PMI’s John alleged that he was an expert in textile rights, title, and interest through a Dation in Payment manufacturing processes from 1956 to 1993 and as payment for its obligations due to SRTI worth Php worked with Universal Textiles Inc (UTEX) and Peggy 210M. Mills Inc., making P60,000 a month, along with other c. The Dation in Payment between PMI and SRTI did benefits listed above not expressly or impliedly agree to any of PMI’s debts. [Note: Sta Rosa Textiles eventually acquired Peggy Mills Inc. in 1992] 2.e PMI shall warrant that it will hold SRTC or its assigns, free and harmless from any Filsyn et al. counters that: liability for claims of PMI’s creditors, 1. Sta. Rosa Textiles non-operational laborers, and workers and for physical injury or injury to property arising from PMI’s custody, 2. John resigned his post with Sta. Rosa Textiles possession, care, repairs, maintenance, use or on Nov. 1992 operation of the Assets except ordinary wear 3. Filsyn and Far Eastern Textiles have no EE- and tear;” ER with John 4. And no cause of action with any of the d. Not entitled to vacation leave and sick leave as defendants. well as holiday pay With the attempts at a compromise failing, John filed Article 82, Title I, Book Three of the Labor Code, on the complaint with the Labor Arbiter. Working Conditions and Rest Periods, provides: Labor Arbiter ruled in favor of John, finding all respondents jointly and solidarily liable for the money “Coverage.—The provisions of this title shall apply to claims amounting to P5,528,996.55; as well as Unused employees in all establishments and undertakings whether for profit or not, but not to government Airline Tickets for 3 years amounting to $7,350.00 employees, managerial employees, field personnel, members of the family of the employer who are NLRC reversed and ordered Peggy Mills to pay dependent on him for support, domestic helpers, John 22.5 days for every year of service for his persons in the personal service of another, and twelve (12) years of service from 1980 to 1992 workers who are paid by results as determined by the based on a salary rate of P50,495.00 a month. MR Secretary of Labor in appropriate regulations. also denied. As used herein, “managerial employees” refer to those whose primary duty consists of the management of the establishment in which they are employed or of a department or subdivision thereof, and to other officers or members of the managerial staff.”
e. No Underpayment of 13th month for Dec. 1993
After the termination of the employer-employee
relationship between McLeod and PMI, SRTI hired McLeod as consultant and not as employee. Since McLeod was no longer an employee, he was not entitled to the 13th month pay.
f. PMI has no company policy granting its officers
and employees expenses for trips abroad.
To be considered a “regular practice,” the giving of the
benefits should have been done over a long period, and must be shown to have been consistent and deliberate.
In this case, no proof provided the PMI ever promised
McLeod that it continues to provide the airline tickets as a benefit, nor any proof that PMI and McLeod had expressly agreed upon the giving of that benefit. g. No Retirement Plan Since PMI has no retirement plan, Sec. 5, Rule II was applied, specifically 5.2.a
(a) Fifteen (15) days salary of the employee
based on his latest salary rate.
With McLeod having worked with PMI for 12 years,
from 1980 to 1992, he is entitled to a retirement pay equivalent to 1/2 month salary for every year of service based on his latest salary rate of P50,495 a month.
IV. DISPOSITIVE:
WHEREFORE, we DENY the petition and AFFIRM the
Decision of the Court of Appeals in CA-G.R. SP No. 55130, with the following MODIFICATIONS: (a) the retirement pay of John F. McLeod should be computed at 1/2 month salary for every year of service for 12 years based on his salary rate of P50,495 a month; (b) Patricio L. Lim is absolved from personal liability; and (c) the awards for moral and exemplary damages and attorney’s fees are deleted. No pronouncement as to costs.
Nancy Ebker, Cross-Appellee v. Tan Jay International, Ltd. and Peter J. Nygard, Tan Jay International, LTD., Cross-Appellant, 739 F.2d 812, 2d Cir. (1984)
G.R. No. 161921 July 17, 2013 Joyce V. Ardiente, Petitioner, Spouses Javier and Ma. Theresa Pastorfide, Cagayan de Oro Water District and Gaspar Gonzalez, JR., Respondents