Seventh Fleet Security Services v. Loque
REITERATIONFacts
The Antecedents: Respondent Rodolfo B. Loque was hired as a security guard by petitioner Seventh Fleet Security Services, Inc. in May 2006. In September 2013, Loque filed a complaint for underpayment of wages and other money claims against Seventh Fleet and its president, Medy Lastica. Loque alleged that following this complaint, he was subjected to hostility. On December 25, 2013, he was relieved from his post at the request of Seventh Fleet's client, Second Midland Offices Condominium Corp., and subsequently received a 10-day suspension. Upon the expiration of his suspension on January 7, 2014, Loque was informed he was placed on "floating status" and advised to await further instruction. Procedural History: Loque filed a complaint for constructive dismissal, separation pay, and backwages on July 28, 2014, asserting that being on floating status for over six months constituted constructive dismissal. The Labor Arbiter ruled in favor of Loque, finding Seventh Fleet and Lastica guilty of illegal constructive dismissal and ordering them to pay separation pay, backwages, and attorney's fees. The National Labor Relations Commission (NLRC) reversed this decision, holding that Loque's floating status was a valid exercise of management prerogative and that Loque did not report for work as directed. Loque's motion for reconsideration was denied. Subsequently, the Court of Appeals (CA) granted Loque's petition for certiorari, annulling the NLRC resolutions and reinstating the Labor Arbiter's decision with modifications, absolving Lastica from liability. Seventh Fleet's motion for reconsideration of the CA decision was denied, leading to the present petition. The Petition: Petitioner Seventh Fleet Security Services, Inc. filed a Petition for Review on Certiorari under Rule 45 of the Rules of Court, assailing the Decision and Resolution of the Court of Appeals. The core issue is whether Loque was constructively dismissed. Seventh Fleet argues that Loque failed to report for work despite directives to do so, and therefore, he cannot claim constructive dismissal. Conversely, Loque maintains that his placement on floating status for more than six months, without being deployed to a specific client, constitutes constructive dismissal. The petition questions the CA's determination that the NLRC committed grave abuse of discretion in reversing the Labor Arbiter's ruling.
Issue(s)
Whether Loque was constructively dismissed from employment. Whether Loque is entitled to his money claims (separation pay and full backwages).
Ruling
The Petition is denied. The Court of Appeals Decision dated September 22, 2016, and Resolution dated February 16, 2017, are affirmed with modification. Seventh Fleet Security Services, Inc. is ordered to pay Rodolfo B. Loque full backwages, separation pay, and attorney's fees, subject to legal interest.
Ratio Decidendi
On the issue of constructive dismissal: The Court affirmed the CA's finding that Loque was constructively dismissed. It reiterated that while 'floating status' is recognized in the security industry, it must not exceed six months, applying Article 301 of the Labor Code by analogy as a form of temporary retrenchment. The Court noted that Loque was on floating status for six months and 21 days when he filed his complaint, exceeding the six-month limit. The burden of proving the unavailability of posts rests on the employer, but the mere lapse of six months does not automatically result in constructive dismissal; the peculiar circumstances must be inquired into. Seventh Fleet's assertion that it directed Loque to report for posting via letters dated May 14 and May 28, 2014, was deemed insufficient. The Court found Loque's claim of being barred from entering Seventh Fleet's premises credible, as Seventh Fleet offered only bare denials and failed to prove Loque was not prevented from entering. Furthermore, the Court emphasized that jurisprudence requires not just a recall to the agency's office but deployment to a specific client within six months. The letters from Seventh Fleet were general return-to-work orders and did not indicate reassignment to a specific client, distinguishing the case from those where an employee refused a specific reassignment. Therefore, Seventh Fleet was guilty of constructive dismissal because it never attempted to redeploy Loque to a definite assignment or security detail. The Court also ruled that Loque was not guilty of abandonment. Abandonment requires a deliberate and unjustified refusal to resume work coupled with a clear intention to sever the employer-employee relationship, evidenced by overt acts. The Court found no such intention on Loque's part. His actions, such as reporting for work after his suspension, sending letters expressing readiness to report and inquiring about his status, and promptly filing a complaint after the six-month floating period, indicated a desire to return to work, not to abandon his employment. His eight years of service also negated any intention to abandon his work. The totality of these circumstances clearly negated the existence of a clear intention to sever the employer-employee relationship. On entitlement to money claims: Having been illegally dismissed, Loque is entitled to full backwages and reinstatement. However, considering the strained relations between Loque and Seventh Fleet, reinstatement was deemed no longer appropriate. Thus, the award of backwages and separation pay in lieu of reinstatement was proper. The Court also found the award of attorney's fees proper, as Loque was impelled to litigate to protect his interests. The monetary award is to be computed from the date of constructive dismissal until the finality of the decision, with legal interest at six percent (6%) per annum from finality until full payment.
Main Doctrine
A security guard placed on 'floating status' for more than six months without being deployed to a specific client is deemed constructively dismissed, as a general return-to-work order without a specific assignment does not suffice to absolve the employer.