Son v. University of Santo Tomas

G.R. No. 211273 · 2018-04-18 · J. DEL CASTILLO, J.: · Primary: Labor; Secondary: Civil
REITERATION

Facts

The Antecedents: Petitioners Raymond A. Son, Raymond S. Antiola, and Wilfredo E. Pollarco were full-time probationary professors at the University of Santo Tomas (UST) and members of the UST Faculty Union. Their employment contracts stipulated that achieving tenure status was conditioned upon meeting requirements, including obtaining a prerequisite graduate degree within the probationary period. The Collective Bargaining Agreement (CBA) between UST and the faculty union also outlined tenure requirements, including a Master's degree, with a provision for tenure by default if a faculty member continued to serve despite not obtaining the degree within the specified timeframe. Petitioners did not possess the required Master's degree and failed to complete it within the stipulated period, yet continued to teach. Following a memorandum from the Commission on Higher Education (CHED) directing the strict implementation of faculty qualification standards, UST notified faculty members, including petitioners, of the university's decision to cease re-appointment for those who failed to complete their Master's degrees, unless they appealed. Procedural History: Petitioners did not submit a written appeal, believing they had acquired tenure by default under the CBA. Consequently, they received termination letters citing their failure to obtain the required Master's degree. They filed a labor case against UST and its officers, alleging illegal dismissal and unfair labor practice. The Labor Arbiter ruled in favor of the petitioners, finding illegal dismissal and unfair labor practice, and upholding the CBA provision on tenure by default. The National Labor Relations Commission (NLRC) initially affirmed this decision. However, upon reconsideration, a Special Division of the NLRC set aside the earlier ruling, holding that CHED Memorandum Order No. 40-08 superseded the CBA and rendered the tenure-by-default provision void. The NLRC, on further motion for reconsideration, reinstated the Labor Arbiter's decision, asserting the CBA's precedence and the directory nature of the CHED Memorandum. The respondents then filed a Petition for Certiorari with the Court of Appeals (CA). The Petition: The Court of Appeals granted the respondents' Petition for Certiorari, reversing the NLRC decisions that favored the petitioners and reinstating the NLRC's decision that dismissed the labor case. The CA found that the CBA provision on tenure by default was contrary to law and public policy, as it conflicted with CHED Memorandum Order No. 40-08, which mandated a Master's degree for undergraduate program faculty. The CA emphasized that the operation of educational institutions involves public interest and that government regulation, including faculty qualifications, takes precedence over CBA provisions. The CA concluded that petitioners' termination was valid as they failed to meet the minimum qualifications for regular employment. Petitioners are now before the Supreme Court via a Petition for Review on Certiorari, arguing that the CA erred in ruling they were not illegally dismissed, asserting the CBA's supremacy over the CHED Memorandum, claiming acquired tenure, and alleging bad faith and violation of due process by UST.

Issue(s)

Whether the Court of Appeals erred in ruling that the petitioners were not illegally dismissed, considering the CBA provision on tenure and CHED Memorandum Order No. 40-08. Whether the petitioners acquired tenure despite failing to obtain the required Master's degree. Whether the respondents are guilty of unfair labor practice, malice, and bad faith, and whether estoppel or waiver applies. Whether the twin-notice rule was violated. Whether academic freedom and management prerogative were properly exercised in the termination of the petitioners.

Ruling

The Supreme Court denied the petition and affirmed the decision of the Court of Appeals, holding that the termination of the petitioners' employment was valid and legal.

Ratio Decidendi

On the validity of the termination and the precedence of CHED Memorandum Order over the CBA: The Court held that the requirement of a Master's degree for faculty members in undergraduate programs, first established in the 1992 Revised Manual of Regulations for Private Schools (DECS Order 92), has the force and effect of law. This requirement was carried over by CHED Memorandum Order No. 40-08. Consequently, the CBA provision granting tenure by default to faculty members lacking a Master's degree, which was executed in 2006, was contrary to and violative of the prevailing regulations at the time. Such a provision is therefore null and void and produces no legal effect. The Court emphasized that while contracting parties have freedom to stipulate terms, these stipulations must not be contrary to law or public policy. The operation of educational institutions involves public interest, necessitating government regulation to ensure qualified teachers. The Court reiterated that a CBA must be read in conjunction with statutory and administrative regulations, and any provision therein that conflicts with law must yield. On the acquisition of tenure: The petitioners could not have acquired tenure because they failed to meet the minimum qualification of a Master's degree, as mandated by law and regulations. Their probationary appointments were subject to the condition of obtaining this degree. Despite being given ample opportunities and time to complete their Master's degrees since their initial hiring in 2004 or 2005, they failed to do so. The Court stressed that those seeking to be educators are presumed to know these mandated qualifications, and failure to meet them means they cannot legally attain permanent status. The fact that UST continued to hire faculty members without Master's degrees does not grant the petitioners tenure or make their dismissal illegal; rather, it indicates that UST itself was in violation of the regulations. The Court also found that both the petitioners and the respondents were in violation of the law under the pari delicto doctrine, where both parties are equally at fault, neither can seek relief from the courts. On unfair labor practice, malice, bad faith, estoppel and waiver: The Court ruled that the petitioners could not claim estoppel or waiver on the part of UST for continuing to hire faculty without Master's degrees. Such a waiver would be contrary to law and prejudicial to the rights of students and the public, who expect educational institutions to operate within legal bounds and provide quality education. The doctrine of estoppel cannot validate an act that is null and void or ultra vires. Similarly, the requirement to file an appeal letter did not constitute bad faith or malice, as there was no vested right to tenure to speak of in the first place. On the application of the twin-notice rule: The provided text does not contain any ratio decidendi specifically addressing the twin-notice rule. Therefore, no corresponding ratio can be provided for this issue based on the given information. This implies the court may not have found a violation, or the details were not included in the provided text. On academic freedom and management prerogative: The Court affirmed that academic freedom and management prerogative allow educational institutions to set standards for their teachers and determine if these standards are met. These rights, however, are not unbridled and must be exercised within the bounds of the law. In this case, the termination was based on a failure to meet a legally mandated qualification, which falls within the permissible exercise of these prerogatives, provided due process is observed. The Court noted that the petitioners were given ample opportunities to comply with the requirements, and their failure to do so justified the non-renewal of their appointments.

Main Doctrine

A Collective Bargaining Agreement (CBA) provision granting tenure by default to faculty members who have not obtained the required Master's degree is void and cannot be enforced if it contravenes statutory and administrative regulations, such as CHED Memorandum Order No. 40-08, which mandates a Master's degree as a minimum qualification for teaching in undergraduate programs. Both the employer and employee are considered in pari delicto when they violate such regulations.

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