Azcor Manufacturing Inc. v. National Labor Relations Commission
REITERATIONFacts
The Antecedents: Candido Capulso filed a complaint for constructive illegal dismissal and illegal deduction against Azcor Manufacturing Inc. (AZCOR) and Arturo Zuluaga. He alleged that P50.00 was deducted daily from his salary from April to September 1989. Capulso claimed he worked for AZCOR as a ceramics worker for over two years, from April 3, 1989, to June 1, 1991. He took a sick leave due to bronchial asthma, allegedly caused by inhaling ceramic dust due to lack of safety gadgets. Upon recovery, he was denied reinstatement by his supervisors, who stated only the owner could allow his return. After repeated attempts to resume work failed, he filed the complaint. Capulso presented documentary evidence including an AZCOR ID, SSS premium payments, SSS Member Assistance Form, SSS Employee Contribution Certification, and payslips. Petitioners alleged Capulso resigned from AZCOR on February 28, 1990, and joined Filipinas Paso on March 1, 1990, submitting a contract of employment. They claimed he later resigned from Filipinas Paso due to ill health and submitted two resignation letters, one to AZCOR and one to Filipinas Paso, along with Apolinaria's sworn statement, BIR forms, and income tax returns. Procedural History: The Labor Arbiter dismissed the complaint for illegal dismissal but ordered AZCOR and/or Arturo Zuluaga to refund the P200.00 illegally deducted. On appeal, the NLRC modified the decision, declaring the dismissal illegal, ordering reinstatement, and payment of backwages. The NLRC found the resignation letters to be identically worded, pre-drafted, and denied by Capulso, indicating bad faith by the respondents. Petitioners' motion for reconsideration was denied. The Petition: Petitioners Azcor Manufacturing Inc., Filipinas Paso, and Arturo Zuluaga filed a petition for certiorari, assailing the NLRC decision for grave abuse of discretion.
Issue(s)
Whether the NLRC committed grave abuse of discretion in declaring that private respondent Capulso was illegally dismissed. Whether the NLRC committed grave abuse of discretion in holding petitioners jointly and solidarily liable to Capulso for back wages.
Ruling
The petition is DISMISSED. The NLRC Decision of September 12, 1994, is MODIFIED. Petitioners AZCOR MANUFACTURING, INC., FILIPINAS PASO, and ARTURO ZULUAGA are ORDERED to pay, jointly and solidarily, the heirs of private respondent Candido Capulso the amounts representing his back wages, inclusive of allowances and other benefits, and separation pay to be computed in accordance with law.
Ratio Decidendi
On the issue of illegal dismissal: The Court disagreed with the petitioners' contention that Capulso voluntarily resigned. To constitute a resignation, there must be an intention to relinquish accompanied by an act of relinquishment. Capulso's desire to resume his work after recuperating and his active pursuit of the illegal dismissal case negated any intention to relinquish his job. Furthermore, the resignation letters were identically worded, pre-drafted with blank spaces, and written in English, a language Capulso was not conversant with, indicating they were prepared by others without his consent. Even if the signatures were genuine, petitioners failed to prove Capulso understood the contents of the letters. The Labor Arbiter's view that Capulso's delayed filing weakened his claim was dismissed, as an action for illegal dismissal has a four-year prescriptive period, and his four-month delay was not unreasonable, especially considering his desire not to jeopardize his employment. On the issue of joint and solidary liability: The Court found no error in holding AZCOR and Filipinas Paso jointly and solidarily liable, despite their separate corporate personalities. The doctrine of corporate fiction can be disregarded when it is used to perpetrate social injustice or evade obligations. In this case, the confusion regarding Capulso's employer was petitioners' own making, evidenced by his continued use of the AZCOR ID, payslips bearing AZCOR's name, performance of the same job in the same area with the same supervisor, lack of employment gap, transfer of the casting department to Filipinas Paso, and the AZCOR personnel officer signing the employment contract for jobs with Filipinas Paso. These facts showed that Filipinas Paso was merely an instrumentality or adjunct of AZCOR, and the corporate fiction was used to confuse Capulso and evade obligations. The Court noted that AZCOR had ceased business operations, further supporting the view that Filipinas Paso was used as a conduit. The Court concluded that there was a veiled attempt to deprive Capulso of his earnings by taking advantage of his low education and confusing him about his employer.
Main Doctrine
The NLRC did not commit grave abuse of discretion in declaring the dismissal of respondent Capulso as illegal and in holding petitioners jointly and solidarily liable, as the evidence showed a scheme to evade obligations by disregarding corporate fiction and fabricating resignation letters.