774 Phil. 211
SERENO, C.J.:
Petitioner Danilo H. Lazaro (Lazaro) joined respondent Solidbank Corporation on December 21, 1992. He rose from the ranks until he became Vice President, Head of the Branch Banking Group, Region 6 (Southern Luzon branches).
On August 21, 1995, the Imus branch, one of the bank's branches under Lazaro, was audited for the first time by the bank's internal auditors, known as the Audit and Credit Examination Services (ACES). The audit uncovered certain irregularities committed by the branch manager and the accountant involving loan releases without proper documentation and approval of the Region Head and other appropriate approving bodies. Respondent bank was allegedly defrauded in the amount of P43 million through the fraudulent acts and/or activities allegedly committed by some officers of the said branch office, in connivance with some individual borrowers.
Lazaro immediately tendered his resignation effective February 15, 1996, out of delicadeza, when his name was dragged by the ACES Audit Report into the Imus branch loan anomaly with a sweeping allegation "that he has given blanket authority to all the Branch Managers in his region to commit loans up to P1 Million subject to his confirmation." He was not however included among those criminally charged by the bank.
Lazaro's resignation was not accepted by respondent bank president Vistan who categorically cleared him of any liability on the Imus case with the assurance that he (Vistan) personally, does not believe that petitioner Lazaro has anything to do with the said irregularity. Respondent Vistan persuaded Lazaro to stay and help resolve the Imus case. Thus was then assigned in a special project attached to the office of the legal counsel.
Pursuant to respondent Vistan's instruction to concentrate on the Imus branch loans, Lazaro worked and coordinated closely with the bank's legal counsel. The bank filed criminal charges against several persons including the Imus Branch Manager, the accountant and four borrowers.
Petitioner's Christmas bonus which was credited to his account on November 13, 1996 was ordered reversed by a debit memo from respondent's bank Human Resource Department (HRD) on November 15, 1996. Aggrieved, Lazaro wrote a letter to respondent Vistan seeking clarification. There was no response from respondent Vistan.
On December 13, 1996, petitioner Lazaro was told by Ed Buenaventura of the Motorpool Section to surrender his service car. Later, Lazaro found out that his payroll for December 1-15, 1996 was not credited to his payroll account. He thus wrote another letter to respondent Vistan reiterating his earlier request for clarification. Again, there was no answer.
Lazaro requested for a meeting with respondent Vistan. On January 7, 1997, they met together with respondent SVP Jazmines at the latter's office. Ten (10) months and twenty two (22) days after Lazaro was assigned to special projects, respondent bank president Vistan verbally dismissed petitioner Lazaro upon the recommendation of and after consultation with respondent Senior Vice President Jazmines because his (Lazaro's) continued presence "might be used as a basis to accuse the bank of abetting a senior officer who has been implicated by a "customer" in a case of public inquiry." The dismissal was made retroactive November 30, 1996, more that [sic] a month before he was informed of his dismissal.
On April 24, 1997, petitioner Lazaro filed a complaint for illegal dismissal, non-payment of earned wages and bonus, reinstatement, backwages including moral and exemplary damages and attorney's fees.[4]
WHEREFORE, premises considered, judgment is hereby rendered dismissing the complaint for illegal dismissal.Both parties appealed to the National Labor Relations Commission (NLRC), for which a Decision[7] promulgated on 17 April 2002 was issued. The NLRC affirmed with modifications the Decision rendered by LA Bartolabac, by deleting the award of moral and exemplary damages, as follows:
Respondent Solid Bank Corporation is, however, ordered to pay complainant Danilo H. Lazaro the following:All other claims are also dismissed for lack of merit.
1. Separation pay From 12/21/92-6/30/2000 (sic): (including the imputed service) P53,962.64 x 8 years = P431,701.122. Compensatory benefit: From 11/30/96-6/30/2000 (temporary date) P53,962.64 x 42 months/2 = 1,133,215.40(But not less than P1 million nor more than P1.5 Million) 3. 1996 Christmas bonus: 53,962.644. Moral and exemplary damages for arbitrary reversal of 1996 Christmas bonus. 200,000.00 TOTAL P1,818,879.12
SO ORDERED. (Emphasis in the original)
WHEREFORE, in the light of the foregoing, the two (2) appeals assailing the Decision in this case are hereby, DISMISSED for lack of merit.Both parties moved for the reconsideration of the April 2002 Decision, but the motions were denied by the NLRC in a Resolution[8] promulgated on 22 August 2002, as follows:
The appealed Decision is hereby, AFFIRMED with MODIFICATION by deleting the award of moral and exemplary damages.
SO ORDERED.
Accordingly, the motion for reconsideration filed by complainant-appellant and partial motion for reconsideration filed by respondents-appellants are denied for lack of merit.
No further motion for reconsideration shall be entertained.
SO ORDERED.
WHEREFORE, the petition is GRANTED. The NLRC resolution and decision dated August 22, 2002 and April 17, 2002, respectively, are hereby SET ASIDE. Finding petitioner Danilo Lazaro illegally dismissed, the November 8, 2001 decision of the Labor Arbiter is hereby MODIFIED. Respondent Solidbank Corporation is hereby ordered to pay petitioner Lazaro the following:On 3 February 2004 and 5 May 2004, Solidbank filed its Motion for Reconsideration[10] and Supplemental Motion for Reconsideration[11] respectively. Lazaro also filed his Motion for Clarification and/or Partial Motion for Reconsideration[12] on 27 January 2004.SO ORDERED. (Emphasis in the original)
1. Separation pay for every year of service starting December 21, 1992 up to the promulgation of this decision to be computed based on 150% of the gross monthly pay for every year of service per Category 2 of the Solidbank-Metrobank Merger (11 years) P80,943.96x11 = P890,383.56 2. Backwages computed from the time of illegal dismissal P53,962.64x 6 years = 323,775.84 3. Compensatory benefit computed from November 1996 up to June 2000 at the rate of P53,962.64x 42 months/2 = 1,133,215.40 4. Payment of 1996 Christmas bonus = 53,962.64 5. Payment of unpaid salary for December 1996 = 53,962.64 6. Moral and exemplary damages = 200,000.00 TOTAL = 2,655,300.08 7. Attorneys fees equivalent to ten percent (10%) of the sum of all the above = 265,530.00 GRAND TOTAL = P2,920,830.08
[On separation pay]Lazaro filed another Motion for Reconsideration/Clarification[14] on 26 July 2004, which the CA partially granted in a Resolution[15] promulgated on 14 January 2005. The appellate court again corrected the amount of separation pay, backwages and unpaid salary for December 1996 by reviewing Lazaro's gross monthly pay, including all allowances and benefits due to him:
However, We agree with Solidbank's assertion that petitioner is no longer entitled to an increase in the original award for separation pay given by the NLRC considering that petitioner did not question the same in his petition. Hence, the amount of P890,383.56 shown in Item No. 1 (decretal portion of our January 19, 2004 Decision) representing petitioner's separation pay starting December 21, 1992 up to the promulgation of this decision is hereby corrected and reverted to the sum awarded by the NLRC in the total amount of P431,701.12.
x x x x
[On backwages]
We hold that petitioner was illegally dismissed and is therefore entitled to backwages. However, We admit error in the computation of the same (Item No. 2, decretal portion, January 19, 2004 Decision) due to inadvertence. This Court multiplied his monthly salary of P53,962.64 by 6 years instead of 43 months, thus awarding only P323,775.84. To arrive at the correct amount of petitioner's backwages, we have to multiply his monthly salary by 43 months, viz: P53,962.64 x 43 = P2,320,993.52 less P40,375.10 = P2,280,018.42. This answers petitioner's motion for clarification and/or partial motion for reconsideration.
[On the unpaid salary for December 1996]
This Court also noticed a typographical error in encoding the amount of petitioner's unpaid salary for December 1996 as P53,962.64 when it should only be P40,375.10 representing his basic salary, as prayed for in the petitioner before Us. (Emphasis in the original)
We are taking cognizance of the oversight committed in the computation of the separation pay and backwages. However, considering that the Court cannot determine the other benefits allegedly enjoyed regularly by the petitioner to come up with his gross monthly salary, We based the gross monthly salary of petitioner in the amount of P53,962.64 according to the submitted evidence which were not contested by the private respondent. It is also noted that petitioner never questioned the computation of his monthly salary at P53,962.64 as contained in the decisions and resolutions of the Labor Arbiter, NLRC and this Court. Hence, in Our Amended Decision dated July 1, 2004, a re-computation of the separation pay and backwages due petitioner was made.Below is a summary of the fallo of the Decision, Amended Decision and Resolution issued by the appellate court:
x x x x
Petitioner correctly argues that in the computation of the separation pay and backwages, the whole amount of his salaries plus benefits, bonuses and general increases to which he would have been entitled shall be included. However, the record is bereft of any evidence showing the other monthly benefits, bonuses, etc., aside from his monthly salary of P53,962.64 which is not contested by both parties.
With respect to the 150% gross monthly salary pay for every year of service as separation pay based on the Solidbank-MetroBank Merger Agreement, We believe that the petitioner is not entitled to such benefit. He did not apply for the same and he was not offered said separation benefits by the respondent bank.
The computation of the separation pay should be based on the petitioner's proven monthly salary (P53,962.64) from December 21, 1992 up to the promulgation of this resolution or for such additional years upon final execution. Likewise, petitioner's backwages should be computed based on petitioner's proven monthly salary (P53,962.64) from the time of his illegal dismissal on November 30, 1996 up to the promulgation of this resolution. (Emphasis in the original)
Hence, these petitions.
19 January 2004 Decision 1 July 2004 Amended Decision 14 January 2005 Resolution Separation pay For every year of service starting December 21, 1992 up to the promulgation of this Decision to be computed based on 150% of the gross monthly pay for every year of service per Category 2 of the Solidbank-Metrobank Merger at the rate of P80,943.96x 11 years From December 21, 1992 up to June 30, 2000 (including the imputed service) P5 3,962.64 x 8 years = From December 21, 1992 up to the promulgation of this Decision (January 2005) to be computed by multiplying the monthly salary (P53,962.64) by 12 years P53,962.64 x 12 =P890,383.56 P431,701.12 P647,551.68 Backwages Computed from the time of illegal dismissal at the rate of P53,962.64 x 6 years Computed from the time of illegal dismissal on November 30, 1996 up to June 30, 2000 P53,962.64 x 43 mos. -P40,375.10 (representing December 1996 basic salary as prayed and awarded) Computed by multiplying the monthly salary (P53,962.64) by the number of months from his illegal dismissal on November 30, 1996 up to the promulgation of this decision P53,962.64 x 98 monthsP323,755.84 P2,280,018.42 P5,288,338.70 Compensatory benefitComputed from November 1996 up to June 2000 at the rate of P53,962.64 x 42 months/2 Computed from November 1996 up to June 2000 at the rate of P53,962.64 x 42 months/2 Computed from November 1996 up to June 2000 at the rate of P53,962.64 x 42 months/2 P1,133,215.40 P1,133,215.40 P1,133,215.40 Payment of 1996 Christmas bonus P53,962.64 P53,962.64 P53,962.64 Payment of unpaid salary for December 1996
P53,962.64
P40,375.10
NoneMoral and exemplary damages P200,000.00 P200,000.00 P200,000.00 TOTAL P2,655,300.08 P4,139,272.68 P7,323,068.42 Attorney's fees equivalent to ten percent (10%) of the sum of all the above
P265,530.00
P413,927.26
P732,306.84GRAND TOTAL P2,920,830.08 P4,553,199.94 P8,055,375.26
(1) | separation pay computed from the time of his employment in 21 December 1992 up to the cessation of Solidbank's business in 31 July 2000 or 7.64 years, multiplied by his gross monthly pay of P53,962.64 increased by 150%, or atotal of P618,411.85; |
(2) | backwages computed from the time of his illegal dismissal in 30 November 1996 up to 31 July 2000 (the date Solidbank ceased operations) or 91.67 months, multiplied by his gross monthly pay of P53,962.64, or atotal of P4,946,755.21; |
(3) | payment of 1996 Christmas bonus in the amount of P53,962.64; and |
(4) | compensatory benefit computed from November 1996 up to June 2000 or 42 months/2, multiplied by his gross monthly pay of P53,962.64, or a total of P1,133,215.40. |
[21] Id. at 57. Total Gross Monthly Pay
Basic Salary P28,330.00Representation/Cost of Living Allowance 25,633.00Other Benefits: Gasoline 2,000.00Car Maintenance (P8,000.00/12 mos.) 670.00Medicine Allowance (P2,000.00/12 mos.) 167.00Mid Year Bonus (P53,953.00 x 2 mos./12) 8,994.00Christmas Bonus (P53,963.00 x 2.25 mos./12) 10,118.00Total Gross Monthly Pay P75,912.00 P75,912.00 x 12 years P910,944.00
[22] G.R. No. 186332, 23 October 2013, 708 SCRA 481, 492-493, citing Magdalena Estate, Inc. v. Caluag, 120 Phil. 338, 341 (1964); See Lee v. Trocino, 607 Phil. 690, 696 (2009).
Add Other Benefits: Accrued Sick/Vacation Leave P431,704.00Car Benefits at P600,000.00 every five (5) years from 1996 and 2005 P1,800,000.00Profit Sharing (guaranteed 2 months) 971,334.00Unpaid 1996 Christmas Bonus 67,453.30Grand Total Separation Pay P3,270,491.00(1.25 mos. differential) (as of January 2005, the promulgation date)