Ymbong v. ABS-CBN Broadcasting Corporation
REITERATIONFacts
The Antecedents: Petitioner Ernesto G. Ymbong worked as a talent for ABS-CBN Broadcasting Corporation (ABS-CBN) from 1993. In 1996, ABS-CBN issued Policy No. HR-ER-016, requiring employees intending to run for public office to resign at least 30 days prior to filing their certificate of candidacy. In March 1998, Dante Luzon, Assistant Station Manager, issued a memorandum stating that employees running for office would have to file a leave of absence, suspending their services temporarily. Luzon later clarified that the policy required resignation for those running, not just leave for campaigning. Petitioner Ymbong claimed he informed Luzon of his intention to take a leave of absence to campaign, while Luzon stated Ymbong approached him saying he would leave radio for a couple of months to campaign, but later ran for councilor. Leandro Patalinghug also informed Luzon of his intention to run for councilor and submitted a resignation letter citing company policy. Both Ymbong and Patalinghug lost the elections. Procedural History: Ymbong and Patalinghug filed illegal dismissal complaints. The Labor Arbiter found their dismissal illegal, ordering reinstatement and backwages, ruling that an employer-employee relationship existed and the company policy was not made known or was superseded by Luzon's memorandum. The NLRC modified this, ordering reinstatement and backwages for Ymbong but finding Patalinghug had voluntarily resigned. ABS-CBN appealed to the Court of Appeals (CA), arguing no employer-employee relationship existed and the NLRC gravely abused its discretion. The CA reversed the NLRC, declaring Ymbong resigned and not illegally dismissed, upholding Policy No. HR-ER-016 and finding Luzon's memorandum void. The Petition: Ymbong filed a petition for review on certiorari, arguing the CA erred in upholding Policy No. HR-ER-016, the validity of his termination, and reversing the NLRC decision. He contended the policy violated his right to suffrage and due process, and that Luzon's memorandum superseded the policy. ABS-CBN countered that the policy was valid, justified by the need for neutrality and credibility, and that Ymbong's act of running for office was a voluntary resignation.
Issue(s)
Whether Policy No. HR-ER-016 is valid. Whether the March 25, 1998 Memorandum issued by Luzon superseded Policy No. HR-ER-016. Whether Ymbong, by seeking an elective post, is deemed to have resigned and not dismissed by ABS-CBN.
Ruling
The petition is denied for lack of merit. Policy No. HR-ER-016 is valid and was not superseded by the March 25, 1998 Memorandum. Ymbong is deemed to have resigned when he ran for councilor.
Ratio Decidendi
On the validity of Policy No. HR-ER-016: The Court affirmed the validity of Policy No. HR-ER-016, which requires employees intending to run for public office to resign. This policy is justified by the need for ABS-CBN to maintain its objectivity, neutrality, and credibility, thereby protecting it from public misconceptions and preserving the public's trust. The Court cited Manila Broadcasting Company v. NLRC as precedent, holding that while laws might only require a leave of absence, companies can validly require resignation as a matter of policy to avoid conflicts of interest and maintain impartiality. This exercise of management prerogative is upheld as long as it is exercised in good faith and for the advancement of the employer's interest, without defeating employees' rights. The Court also noted that R.A. No. 9006 (Fair Election Act) later codified this principle by stating media practitioners who are candidates are deemed resigned if required by their employer. On whether the March 25, 1998 Memorandum superseded Policy No. HR-ER-016: The Court ruled that the March 25, 1998 Memorandum issued by Dante Luzon did not supersede Policy No. HR-ER-016. Luzon, as Assistant Station Manager, had policy-making powers but these must be in accord with the general rules set by the Head Office. The memorandum, which only required a leave of absence for those running for office, directly contradicted Policy No. HR-ER-016's requirement of resignation. Therefore, the memorandum was issued beyond Luzon's authority and was void. Luzon himself admitted, in a sworn statement, that his recollection of the policy was inaccurate and that the Head Office policy required resignation for those running for elections to maintain company independence. This admission further invalidated the memorandum as a basis for Ymbong's actions. On whether Ymbong is deemed resigned: As Policy No. HR-ER-016 was the subsisting and valid company policy, Ymbong's act of running for councilor was considered a voluntary resignation. The Court found no merit in Ymbong's argument that his termination was a disregard of his right to due process. Since he was deemed to have resigned by his own overt act of seeking elective office, he was not terminated by ABS-CBN. Consequently, the requirement of due process, which applies to dismissal cases, was not applicable to Ymbong. The Court also noted that Ymbong failed to provide proof of his claim that he had informed Luzon of his intention to run via a letter, and that his alleged Annex 'A' was actually the September 14, 1998 memorandum terminating his services, not a prior notice of his candidacy.
Main Doctrine
A company policy requiring employees who intend to run for public office to resign is valid, provided it is exercised in good faith for the advancement of the employer's interest and not to defeat employees' rights. An employee's act of running for public office, in violation of such a policy, is considered a voluntary resignation, not an illegal dismissal, and thus does not require due process afforded in termination cases.