- Petitioner
- Equitable Banking Corporation
- Respondent
- Sadac
- Citation
- G.R. No. 164772
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Chico-Nazario, J.
- Decided
- June 8, 2006
Computation of full backwages for illegally dismissed employee, specifically whether general salary increases, benefits, attorney's fees, and…
Summary
Ricardo Sadac, Vice President and General Counsel of Equitable Banking Corporation, was illegally dismissed in 1989 after nine lawyers complained about his conduct. The Supreme Court previously ruled the dismissal illegal in 1997. This case concerned the proper computation of backwages. Sadac claimed P6,030,456.59 including prospective salary increases and various benefits, while the bank claimed only P2,981,442.98 was due. The Supreme Court held that full backwages should be computed at the wage rate at time of dismissal, excluding prospective salary increases as these are mere expectancy without vested right. However, the Court affirmed the award of attorney's fees (10% of monetary award) and 12% annual interest from 1997. The decision clarifies that salary increases, unlike allowances and benefits explicitly mentioned in Article 279 of the Labor Code, cannot be included in backwages computation as they depend on various contingencies and represent no assured entitlement.