NLRC-7 to HNU: Pay dismissed teacher P1.572-M in backwages

TAGBILARAN CITY, Philippines — The Holy Name University has been ordered by the National Labor Relations Commission (NLRC) to pay P1.572 million in backwages, including litigation costs, to Arlene Palgan, a former instructor of its College of Nursing, who the commission deemed "illegally dismissed," from service.

The NLRC-7th Division, in its ruling last month affirming an earlier resolution (March 27, 2013), also ordered the HNU to reinstate Palgan "to her previous position without loss of seniority rights, being illegally terminated," and that the payment of backwages shall be computed from the time she was dismissed up to her actual reinstatement.

The NLRC-7 resolution was penned by Commissioner Julie Rendoque, concurred by Commissioner Jose Gutierrez, but dissented upon by Presiding Commissioner Violeta Ortiz-Bantug. The HNU administration however has not made any action yet on the ruling.

Rendoque, in the resolution, cited Sections 92 and 93 of the Manual of Regulations for Private Schools, an earlier Supreme Court ruling and Article 281 of the Labor Code, about probationary employment:

"Probationary employment shall not exceed six months from the date the employee started working, unless it is covered by an apprenticeship agreement stipulating a longer period. The services of an employee who has been engaged on a probationary basis may be terminated for a just cause or when he fails to qualify as a regular employee in accordance with reasonable standards made known by the employer to the employee at the time of his engagement. An employee who is allowed to work after a probationary period shall be considered a regular employee."

The resolution said: "She (Palgan) has already attained the status of regular employment upon the lapse of her probationary period of employment."

At first, HNU had the NLRC's side in the November 29, 2012 ruling that affirmed the labor arbiter's finding that Palgan, "was not dismissed but that the cessation of her employment proceeded from the expiration of her fixed-term contract."

Palgan filed a motion for reconsideration on February 1 this year, pointing out some inconsistencies in the November resolution. She said that she served for six consecutive regular semesters and two summer semesters at the time HNU terminated her employment, when she already attained a regular status of employment.

The NLRC granted Palgan's plea and reviewed the November decision. "Article 281 of the Labor Code should assume primacy and the fixed-period character of the complainant's contracts must give way," it stated.

In summary, Palgan worked as full-time faculty of HNU from 1994 to 1998, then on part-time basis from 1998 to 2000. She returned to full-time teaching from 2000 to 2001. She did not work with HNU from 2001 to 2004 — when she was elected councilor of Carmen town. Again she returned as full-time faculty member from 2004 to 2007.

During the periods that Palgan worked full-time, HNU considered her on a probationary status. And in its reconsideration plea last May 3, it insisted that she never became a regular employee when she stopped teaching to serve for public office, and that she was then effectively resigned.

Palgan's work history showed that it was only on June 29, 2006 that HNU asked her to sign a fixed-term employment contract wherein the first contract covered June 1, 2006 to March 31, 2007.

The NLRC also noted that, in a letter dated February 28, 2007, Palgan was informed that her contract of term employment would not be renewed.

The NLRC said Palgan first went through the probationary period for four consecutive school years and that she must have attained the regular status after her third year of probationary employment considering that she worked on full-time basis for more than three consecutive years as confirmed by HNU.

The NLRC also found Palgan "was already on her 3rd year of this second phase of probationary employment when her employment was unceremoniously ended in the guise of expiration of contract."

HNU also explained that Palgan's employment record prior to 2004—when she resumed teaching full-time, could not be tacked to her employment history for purposes of computing the period of probationary employment. The university admitted though that Palgan has rendered more than three years of full-time employment but argued that her rise to regular employment status was not automatic and that she failed to meet certain standards laid down by the school, by certain regulations of the CHED/DepEd and the law.

HNU also further contend that the termination of Palgan's service was "brought about by the expiration of her employment contract and that was their management prerogative and discretion not to renew her contract."

However, Rendoque found that HNU failed to substantially established that it has set up specific standards which Palgan must meet for her "to attain regular employment or that her termination from employment is due to her failure to meet such standards."

The NLRC commissioner further emphasized that "the exercise of management prerogative and respondent school's academic freedom is not absolute but must be tempered by the dictates of reason and pertinent labor laws." (FREEMAN)