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361 Phil. 135

FIRST DIVISION

[ G.R. No. 113099, January 20, 1999 ]

ASIA FANCY PLYWOOD CORPORATION, PETITIONER, VS. NATIONAL LABOR RELATIONS COMMISSION, ROBERTO MANANAP, JOSE RUBIO, AVELINA NATALIO, GERARDO ANOVER, ELIZAZBETH CELIS AND EDITHA RETEZ, RESPONDENTS

D E C I S I O N

PARDO, J.:

The petition before the Court is for certiorari  to nullify a decision  of   the   National Labor   Relations  Commission   which modified   that   of   the   Labor   Arbiter  and  ordered  petitioner, in addition to reinstating  respondents, to pay them backwages not to exceed two (2) years.

The facts may be related as follows:

Private respondents were regular employees of petitioner, a company engaged in the business of plywood lamination with narra flitches as the principal raw material.

On March 7, 1991, private respondents filed with the Office of  the Labor Arbiter, National Capital Region, Manila,  a complaint against petitioner for unfair labor practice, illegal dismissal, harassment, violation of labor standards and underpayment of wages.

On April 17, 1991, respondent amended the complaint with the addition of more complainants.

On June 25, 1991, respondent further amended the complaint by limiting the case to illegal dismissal only.

On July 23, 1991, petitioner filed its answer to the amended complaint stating that respondents were not dismissed or terminated; however, they did not report for work.

On December 3, 1991, the Labor Arbiter rendered decision  ordering  respondents  to  report for work and petitioner to re-accept them to their former or substantially equal position without backwages.

On December 27, 1991, private respondents appealed the decision to the National Labor Relations Commission.

On September 30, 1993, the National Labor Relations Commission promulgated a decision modifying that of the Labor Arbiter. In addition  to  requiring  petitioner  to   reinstate   private  respondent,  the Commission directed petitioner to pay respondents back wages not to exceed two (2) years.

Hence, the present recourse.

We grant the petition.

As found by the Labor Arbiter, there was no evidence that private respondents were dismissed from employment. Nor were they prevented from returning to their work. It was only complainants’ unsubstantiated conclusion that they were dismissed. In fact, petitioner expressed willingness to accept back private respondents to their former positions. The payment of back wages will   be   required   only   if   an   employee   is  unjustly or illegally dismissed.[1]  Backwages are granted on grounds of equity to workers for earnings lost due to their illegal dismissal from work.[2]

Consequently, we find that the National Labor Relations Commission gravely abused its discretion in ordering backwages to be paid to private respondents.

WHEREFORE, the Court hereby  SETS ASIDE the decision of the  National  Labor  Relations  Commission  dated September 30, 1993, and  the  order  dated  December  2,  1993,  in   NLRC  NCR  Case   No. 002752-92. The decision of the Labor Arbiter dated December 3, 1991, in NLRC NCR Case No. 00-03-0483-91, is REINSTATED.

No costs.

SO ORDERED.

Davide, Jr., C.J., (Chairman), Melo, Kapunan, and Martinez, JJ., concur.




[1] Article 279 Labor Code; Chong Guan Trading vs. NLRC, 172 SCRA 831.

[2] Chong Guan Trading vs. NLRC, supra; Durabilt vs. NLRC, 152 SCRA 328.

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