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Dumapis v. Lepanto

Labor Law Case Digest of Dumapis v. Lepanto

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joannevelayo
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121 views2 pages

Dumapis v. Lepanto

Labor Law Case Digest of Dumapis v. Lepanto

Uploaded by

joannevelayo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Case Title: MORENO DUMAPIS, FRANCISCO LIAGAO AND ELMO TUNDAGUI v.

LEPANTO CONSOLIDATED MINING COMPANY

Case Number: G.R. No. 204060

Ponente: Justice Lazaro – Javier

Fallo: Supreme Court granted the petition and ordered Lepanto to pay Dumapis, Liagao,
Tundagui, backwages and separation pay based on their salary rates at the time of
their dismissal inclusive of guaranteed increases and benefits under the law, CBA
and company policies from September 22, 2000 to November 25, 2008 less
Php75,000.00 already paid, plus legal interest.

Facts: Moreno Dumapis, Francisco Liagao and Elmo Tundagui were employees of Lepanto
Consolidated Mining Company.

They were illegally dismissed by Lepanto on September 22, 2000.

The labor arbiter dismissed their complaint for illegal dismissal but the NLRC
reversed this decision in favor of Dumapis, Liagao and Tundagui and awarded them
backwages and separation pay.

The Court of Appeals and the Supreme Court affirmed NLRC’s decision and held
that they were illegally dismissed.

There was a dispute on how to compute the backwages and separation pay,
specifically whether or not to include salary increases and benefits granted the time
of their dismissal.

Ruling: 1. On the issue of whether the award of backwages and separation pay to illegally
dismissed employees should include salary increases and benefits granted after their
dismissal, the court ruled in the affirmative. The award shall include salary increases
and benefits the employees would have received under the law, CBA and company
policies had they not been illegally dismissed except those that are contingent on
variables such as merit and the company’s financial status.

2. On the issue on the computation period for backwages and separation pay in case
of illegal dismissal, the court ruled that it should be computed from the date of illegal
dismissal until the finality of the Supreme Court’s decision finding illegal dismissal
and awarding separation pay in lieu of reinstatement.

3. The court also ruled that legal interest shall be imposed on the rate of 12% per
annum until the finality of SC’s decision until June 30, 2013 and 6% from July 1, 2013
until full satisfaction.
Doctrine/s: The award of backwages and/or separation pay due to illegally dismissed
employees shall include all salary increases and benefits granted under the
law, Collective Bargaining Agreement, employment contracts and established
company policies and practices and analogous sources which the employees
would have been entitled had they not been dismissed. However, salary
increases and other benefits which are contingent or dependent upon
variables such as employees merit increase based on performance or longevity
or the company’s financial status shall not be included in the award.

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