Cited Laws
TL;DR — Ruling
WHEREFORE, premises considered judgment is hereby rendered ordering Waterfront Cebu City Hotel and Casino to pay the complainants as follows: 1. Maria Melanie P. Jimenez P53,020.00 2.
WHEREFORE, premises considered judgment is hereby rendered ordering Waterfront Cebu City Hotel and Casino to pay the complainants as follows: 1. Maria Melanie P. Jimenez P53,020.00 2. Josephine C. Baguio P56,286.00 3. Evangeline A. Balazuela P24,678.00 4. Sydel Agatha E. Binghay P54,782.00 5. Lovella V. Carillo P29,680.00 6. May T. Flores P29,650.00 7. Maila G. Roble P32,904.00 Attorneys fee P28,001.00 Total Award P309,002.00 The other claims and the case against individual respondents are dismissed for lack of merit. [7] Respondents appealed to the NLRC [8] which issued a Decision affirming the ruling of the Labor Arbiter. The NLRC observed that petitioner was able to substantiate the losses suffered by the Club through financial statements properly audited by an independent auditor. After the denial of respondents motion for reconsideration, they elevated the case to the Court of Appeals. Respondents argued that the NLRC should have considered the financial statements of the petitioner Hotel and not merely of the Club, which is only a division of the Hotel. According to respondents, the permanent closure of the Club resulted in retrenchment but petitioner failed to prove that it complied with the standards for retrenchment. On 5 July 2006, the Court of Appeals rendered a Decision reversing the findings and conclusions of the NLRC, thus: WHEREFORE, premises considered, the petition for certiorari is hereby GRANTED. The decision dated June 27, 2005 issued by the National Labor Relations Commission, Fourth Division, Cebu City in NLRC Case No. V-000482-2004 (RAB Case No. VII-06-1141-2003) is hereby VACATED and SET ASIDE. A new decision is hereby entered directing Waterfront Cebu City Hotel and Casino, Inc. to pay full backwages from date of illegal dismissal until date of reinstatement, plus 13th month pay, holidy pay, service incentive leave pay and moral damages equivalent to 10% of the compensable amount, to petitioners Ma. Melanie P. Jimenez, Jacqueline C. Baguio, Evangeline Balazuela, Sydel Agatha Binghay, Lovella Carillo, May T. Flores, Meila G. Roble. At the election of the petitioners, full backwages, 13th month pay, holiday pay, service incentive leave pay and separation pay at one month for every year of service, plus moral damages equivalent to 10% of the compensable amount. Attorneys fees of 10% of the total compensable amount is also awarded. The Labor Arbiter is directed to compute the amounts herein awarded. [9] The appellate court found that petitioner Hotel is the actual employer of respondents, thus the evidence of losses and closure of the Club is immaterial and irrelevant. The appellate court stated that there is no independent evidence on record that petitioner Hotel incurred losses sufficient to sustain the termination of respondents. Absent a clear, valid and legal cause for the termination of employment, the appellate court opined that there is illegal dismissal. The appellate court disregarded the audited financial state