- Petitioner
- Venancio S. Reyes
- Respondent
- Rp Guardians Security Agency
- Citation
- G.R. No. 193756
- Court
- Supreme Court
- Decided
- April 10, 2013
Whether placing security guards on floating status for more than 6 months after contract termination constitutes constructive dismissal, and proper…
Summary
Seven security guards filed a constructive dismissal case against their security agency after being placed on floating status for more than six months following the termination of their client contract. The Labor Arbiter and NLRC found constructive dismissal and awarded backwages and separation pay. The Court of Appeals initially affirmed but later modified the decision, reducing the separation pay computation and deleting backwages. The Supreme Court reversed the CA's amended decision, holding that floating status beyond six months constitutes constructive dismissal, and illegally dismissed employees are entitled to both backwages and separation pay of one month per year of service. The Court distinguished between illegal dismissal cases and authorized causes under DOLE regulations, emphasizing that constitutional security of tenure protects workers from unjust dismissal.
Focus of dispute
Whether placing security guards on floating status for more than 6 months after contract termination constitutes constructive dismissal, and proper computation of backwages and separation pay
Legal facts
Petitioners were security guards employed by RP Guardians Security Agency and deployed to Banco Filipino branches. In September 2006, the security contract with Banco Filipino was terminated. Petitioners were placed on floating status through memoranda dated September 21 and 29, 2006, but were not given new assignments for several months. On April 10, 2007, petitioners filed a complaint for constructive dismissal after waiting without assignment beyond the reasonable period.
Judgement and reasoning
Court of Appeals (CA): Initially dismissed respondent's petition on February 26, 2010, affirming the NLRC decision. However, in an Amended Decision dated May 18, 2010, modified the award by reducing separation pay computation from one month to one-half month per year of service under DOLE D.O. No. 14, reduced trust fund refund from P60 to P30, and deleted backwages and attorney's fees.
Labor Arbiter (LA): Rendered decision on August 20, 2007 in favor of petitioners, finding constructive dismissal and ordering respondent to pay separation pay, backwages, refund of trust fund, moral and exemplary damages, and attorney's fees.
National Labor Relations Commission (NLRC): On April 9, 2008, sustained the LA's finding of constructive dismissal and the monetary awards, but deleted the award of moral and exemplary damages.
Supreme Court (SC): Reversed and set aside the CA's Amended Decision, reinstating the NLRC decision. Held that floating status beyond 6 months constitutes constructive dismissal, and illegally dismissed employees are entitled to both backwages and separation pay of one month per year of service. Distinguished DOLE D.O. No. 14 provisions which apply to authorized causes, not illegal dismissal cases.