- Petitioner
- Angelito Olaybar
- Respondent
- National Labor Relations Commission
- Citation
- G.R. No. 108713
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Bellosillo, J.
- Decided
- October 28, 1994
Summary
Ten employees dismissed due to retrenchment filed illegal dismissal complaints. After receiving separation pay pursuant to Labor Arbiter's decision, they executed settlement affidavits withdrawing their appeal. However, when NLRC unknowingly ruled in their favor ordering reinstatement and back wages, petitioners attempted to pursue execution while denying the validity of their settlement. The Supreme Court upheld the binding effect of the voluntary settlement, emphasizing that compromise agreements in labor disputes have res judicata effect under Labor Code Art. 227 and Civil Code Art. 2037. The Court criticized petitioners' opportunism in trying to backtrack on their voluntary settlement after receiving a favorable decision, establishing that reasonable voluntary settlements cannot be later disowned due to change of mind.