Case Digest: Labadan vs Forest Hills Academy

LILIA P. LABADAN

VS

FOREST HILLS ACADEMY
575 SCRA 262 (2008)

While in cases of illegal dismissal, the employer bears the burden of proving that the dismissal is for a valid or authorized cause, the employee must first establish by substantial evidence the fact of dismissal.

Lilian L. Labadan (Labadan) was hired by Forest Hills Mission Academy (Forest Hills) as an elementary school teacher in 1989. After one year of employment, she was made registrar and secondary school teacher. In 2003, Labadan filed a complaint against Forest Hills for illegal dismissal, non-payment of overtime pay, holiday pay, allowances, 13th month pay, service incentive leave, illegal deductions, and damages. She alleged that she was allowed to go on leave, and albeit she had exceeded her approved leave period, its extension was impliedly approved by the school principal because Labadan received no warning or reprimand, and was in fact retained in the payroll. Labadan further alleged that since 1990, tithes to the Seventh Day Adventist church, of which she was a member, have been illegally deducted from her salary; and she was not paid overtime pay for overtime service, 13th month pay, five days service incentive leave pay, and holiday pay; and that her SSS contributions have not been remitted.

Forest Hills claims that Labadan was permitted to go on leave for two weeks but did not return for work after the expiration of the period granted. Because of Labadan’s failure to report to work despite promises to do so, Forest Hills hired a temporary employee to accomplish the needed reports. When Labadan did return for work, classes for the school year were already underway. With regard to the charge for illegal deduction, Forest Hills claimed that the Seventh Day Adventist church requires its members to pay tithes equivalent to 10% of their salaries, and that Labadan never questioned the deduction of the tithe from her salary. As regards the non-payment of overtime pay, holiday pay, and allowances, Forest Hills noted that petitioner proffered no evidence to support the same.

The Labor Arbiter decided in favor of Labadan, and found that she was illegally dismissed, and dismissed her claims for overtime pay, holiday pay, allowances, 13th month pay, service incentive leave. The National Labor Relations Commission (NLRC) reversed and set aside the Labor Arbiter’s decision with regard to the finding of illegal dismissal. Labadan then filed a Petition for Certiorari with the Court of Appeals, which was dismissed by the same. Hence, this Petition for Review on Certiorari.

ISSUES:
Whether or not Labadan was illegally dismissed by Forest Hills

HELD:
While in cases of illegal dismissal, the employer bears the burden of proving that the dismissal is for a valid or authorized cause, the employee must first establish by substantial evidence the fact of dismissal.

The records do not show that petitioner was dismissed from the service. They in fact show that despite petitioner’s absence from July 2001 to March 2002 which, by her own admission, exceeded her approved leave, she was still considered a member of the Forest Hills faculty which retained her in its payroll.

Labadan argues, however, that she was constructively dismissed when Forest Hills merged her class with another “so much that when she reported back to work, she has no more claims to hold and no more work to do.”

Labadan, however, failed to refute Forest Hills’ claim that when she expressed her intention to resume teaching, classes were already ongoing for School Year 2002-2003. It bears noting that petitioner simultaneously held the positions of secondary school teacher and registrar and, as the NLRC noted, she could have resumed her work as registrar had she really wanted to continue working with Forest Hills.

Labadan’s affidavit and those of her former colleagues, which she attached to her Position Paper, merely attested that she was dismissed from her job without valid cause, but gave no particulars on when and how she was dismissed.

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