Dumapis v. Lepanto Consolidated Mining Co.

Facts: In NLRC Case No. RAB-CAR-11-0607-00, LA Tabingan dismissed the complaint for illegal dismissal. NLRC reversed the decision insofar as to Dumapis, Tundagui, and Liagao. These three were illegally dismissed. The dismissal of the other 9 were affirmed as having committed highgrading. CA affirmed the decision. SC affirmed the decision in 2008 and in addition, required Lepanto to pay double costs. 

The LA issued the corresponding writ of execution. Petitioners thens ought a recomputation of this award. Lepanto moved to quash the writ of execution. Meantime, petitioners moved for another recomputation of the monetary award to include the salary increases allegedly granted them per the CBA. The LA recomputed the award of backwages and separation pay to include the incremental salary increase pursuant to the CBA but only until the date when the CA issued its decision. 

In their Partial Motion for Reconsideration/Memorandum of Appeal, petitioners asserted that the cut-off date for the computation of the award was when the SC’s decision  in 2008 became final and executory. NLRC directed LA to compute petitioners' backwages and separation pay from the date they were illegally dismissed up to the finality of SC’s decision. CA nullified the NLRC ruling and ordered the reinstatement of the earlier NLRC decision.

Issue: What is the correct formula for computing the award of separation pay and backwages to petitioners?

Held: In CICM Mission Seminaries, et al. v. Perez citing Bani Rural Bank, Inc. v. De Guzman, the Court through the Second Division laid down the rule that the award of separation pay and backwages for illegally dismissed employees should be computed from the time they got illegally dismissed until the finality of the decision ordering payment of their separation pay, in lieu of reinstatement. Plainly, it does not matter if the delay caused by an appeal was brought about by the employer or by the employee. The rule is, if the LA's decision, which granted separation pay in lieu of reinstatement, is appealed by any party, the employer-employee relationship subsists and until such time when decision becomes final and executory, the employee is entitled to all the monetary awards awarded by the LA.

The award shall be computed from September 22, 2000, when they were illegally dismissed up to November 25, 2008, when this Court's Decision dated August 13, 2008 in G.R. No. 163210 became final and executory. The amount of P75,000.00 which petitioners had already received shall be deducted from the total amount due them.