755 Phil. 287; 111 OG No. 47, 6833 (November 23, 2015)
VILLARAMA, JR., J.:
WHEREFORE, premises considered, judgment is rendered finding the dismissal of complainant [Hilongo] as illegal and ordering the respondents [herein petitioners] to pay complainant [Hilongo] his backwages from the date of dismissal to the date of this decision and separation pay of one month pay per year of service, plus 10% thereof as attorney’s fees as all hereunder computed:On appeal, the National Labor Relations Commission (NLRC) reversed the ruling of the Labor Arbiter in its Decision[5] dated September 30, 2010 and Resolution dated November 23, 2010.[6]SO ORDERED.[4]
I. Backwages: A. Basic Salary 9/5/09 – 4/30/09 (sic) = 7.83 P382 x 26 x 7.83 P77,767.56B. 13th Month Pay P77,767.56/12 6,480.63C. Service Incentive Leave 1,246.27 P85,494.46II. Separation Pay 10/25/01 – 4/30/10 = 7 yrs. P 69,524.00P382 x 26 x 7 years P155,018.46III. 10% Attorney’s fees 15,501.85 P170,520.31
Consistent with what we discussed above, we hold that under the terms of the decision under execution, no essential change is made by a re-computation as this step is a necessary consequence that flows from the nature of the illegality of dismissal declared in that decision. A re-computation (or an original computation, if no previous computation has been made) is a part of the law – specifically, Article 279 of the Labor Code and the established jurisprudence on this provision – that is read into the decision. By the nature of an illegal dismissal case, the reliefs continue to add on until full satisfaction, as expressed under Article 279 of the Labor Code. The re-computation of the consequences of illegal dismissal upon execution of the decision does not constitute an alteration or amendment of the final decision being implemented. The illegal dismissal ruling stands; only the computation of monetary consequences of this dismissal is affected and this is not a violation of the principle of immutability of final judgments.[16]After the corresponding entry of judgment was issued on June 11, 2013, the case was remanded to the Labor Arbiter. On July 9, 2013, respondent Hilongo filed a motion for issuance of writ of execution alleging that the June 11, 2013 CA Resolution had confirmed that the amount of P170,520.31 awarded by the Labor Arbiter is not sufficient, and that there is a need to compute additional monetary awards reckoned from May 1, 2010 up to April 26, 2013 or the date Hilongo presumed as the date of finality of the decision.[17]
WHEREFORE, in view of the foregoing, the petition is GRANTED. The Decision dated November 29, 2013 and Resolution dated January 16, 2014 of public respondent National Labor Relations Commission, Second Division, in NLRC LER N[o]. 11-322-13/NLRC LAC N[o]. 07-001-485-10 (NLRC NCR-10-14411-09) are hereby REVERSED and SET ASIDE.The CA held that it is already settled that the computation of the monetary awards due to the illegally dismissed employee must continue to run until the final termination of the case on appeal. The CA ruled that the Labor Arbiter should have been guided by the CA Resolution dated June 11, 2013 which had clarified that a re-computation of Hilongo’s award is necessary.[22] The CA also ruled that the re-computation of the monetary awards is a necessary consequence that flows from the nature of the illegality of Hilongo’s dismissal. The CA further noted that since the Labor Arbiter’s Decision dated April 30, 2010 had ordered the payment of separation pay, in lieu of reinstatement, the finality of said decision on June 11, 2013 effectively declares that Hilongo’s employment relationship with petitioners has ended on said date. Hence, separation pay and back wages must be computed up to that point to account for the time the illegally dismissed employee should have been paid his salary and benefit entitlements.[23]
The case is hereby REMANDED to the Labor Arbiter for the RE-COMPUTATION of the total monetary benefits due to petitioner [Hilongo]. The Labor Arbiter is further DIRECTED to incorporate the following in the re-computation:(1) Additional backwages and separation pay from May 1, 2010 to June 11, 2013, or the date when the April 30, 2010 Decision of Labor Arbiter Macam became final and executory;
(2) Interest of twelve percent (12%) per annum of the total monetary awards, computed from June 11, 2013 to June 30, 2013 and six percent x x x (6%) per annum from July 1, 2013 until their full satisfaction.
SO ORDERED.[21]
x x x no essential change is made by a recomputation as this step is a necessary consequence that flows from the nature of the illegality of dismissal declared by the Labor Arbiter in that decision. A recomputation (or an original computation, if no previous computation has been made) is a part of the law – specifically, Article 279 of the Labor Code and the established jurisprudence on this provision – that is read into the decision. By the nature of an illegal dismissal case, the reliefs continue to add up until full satisfaction, as expressed under Article 279 of the Labor Code. The recomputation of the consequences of illegal dismissal upon execution of the decision does not constitute an alteration or amendment of the final decision being implemented. The illegal dismissal ruling stands; only the computation of monetary consequences of this dismissal is affected, and this is not a violation of the principle of immutability of final judgments.Nacar reiterated the Court’s ruling in the earlier cases of Session Delights and Gonzales.
WHEREFORE, in view of the foregoing, the petition is GRANTED. The Decision dated November 29, 2013 and Resolution dated January 16, 2014 of public respondent National Labor Relations Commission, Second Division, in NLRC LER N[o]. 11-322-13/NLRC LAC N[o]. 07-001-485-10 (NLRC NCR-10-14411-09) are hereby REVERSED and SET ASIDE.SO ORDERED.
The case is hereby REMANDED to the Labor Arbiter for the RE-COMPUTATION of the total monetary benefits due to petitioner [Hilongo]. The Labor Arbiter is further DIRECTED to incorporate the following in the re-computation:(1) Additional backwages and separation pay from May 1, 2010 to April 26, 2013, or the date when the April 30, 2010 Decision of Labor Arbiter Macam became final and executory;
(2) Interest of twelve percent (12%) per annum of the total monetary awards, computed from April 26, 2013 to June 30, 2013 and six percent x x x (6%) per annum from July 1, 2013 until their full satisfaction.
SO ORDERED.