Reyes v. RP Guardians
Reyes v. RP Guardians
When the Coating status lasts for more than six (6) months, the employee may be considered
to have been constructively dismissed.
Facts
Petitioners Reyes, et al. were hired by respondent RP Guardians Security Agency as security
guards. They were deployed to Banco Filipino. On September 2006, Respondent’s security
contract with Banco Filipino expired. So, petitioners were informed of the fact in a letter. They
were directed to turnover their duties and were advised to be placed on a floating status while
waiting for available post. Petitioners waited but several months lapsed, they were not given
assignments.
Thus, on April 10, 2007, petitioners filed a complaint for constructive dismissal. Respondent
posited for its part that there was no dismissal because the termination was due to the
expiration of the service contract which was coterminus with their employment.
The LA, the NLRC and the CA were one in their conclusion that respondent was guilty of illegal
dismissal when it placed petitioners on Coating status beyond the reasonable six-month period
after the termination of their service contract with [Banco Filipino].
Settled is the rule that that an employee who is unjustly dismissed from work shall be entitled to
reinstatement without loss of seniority rights and other privileges, and to his full backwages,
inclusive of allowances and to his other benefits or their monetary equivalent computed from the
time his compensation was withheld up to the time of actual reinstatement. If reinstatement is
not possible, however, the award of separation pay is proper.
Disposition: Petition for constructive dismissal is GRANTED; The case is REMANDED to the
Labor Arbiter for further proceedings to make a detailed computation of the exact amount of
monetary benefits due petitioners.