CASE DIGEST
Salazar v. Simbajon
G.R. No. 202374, [June 30, 2021]
SECOND, LOPEZ, M.
Appeals in Labor cases; NLRC rules of procedure; Right to Appeal; Posting of Bond
Compliance with the bond requirement for
appeals involving monetary awards is not only mandatory but also
jurisdictional. Failure to comply with this requirement may result in the
dismissal of the appeal and render the decision final and executory. However,
the court acknowledges that in meritorious cases, the bond requirement may be
relaxed if there is substantial compliance with the rules governing appeals.
Simbajon, et al. filed a Complaint against Q.S.O. Disco Pub & Restaurant and/or Abelardo Salazar, Quirino Ortega, and Lucia Bayang before the Labor Arbiter. They alleged unfair labor practices, illegal dismissal, underpayment of salaries, and non-payment of benefits. Simbajon, et al. claimed to have worked in various capacities for the restaurant for several years. They asserted that after forming a union, they were harassed by the management, leading to their alleged dismissal under the pretext of business closure due to bankruptcy. However, they disputed the financial stability of the restaurant.
Abelardo denied any employment relationship with Simbajon, et al., claiming that Lucia and Quirino were the owners of the restaurant and he was merely the lessor of the building. The Labor Arbiter held Abelardo, Lucia, and Quirino liable for illegal dismissal and monetary claims. Abelardo appealed to the National Labor Relations Commission (NLRC) and posted bonds to secure the appeal. The NLRC later exonerated Abelardo. Simbajon, et al. appealed to the Court of Appeals (CA), alleging that Abelardo's appeal was not perfected due to non-compliance with the bond requirement.
Whether or not Abelardo Salazar's
appeal to the NLRC was properly perfected.
YES. The Supreme Court held that Abelardo Salazar's appeal was properly perfected. It emphasized that the right to appeal is a statutory privilege, subject to compliance with the requirements of the law. In labor cases, Article 223 of the Labor Code and NLRC rules mandate the posting of a cash or surety bond for appeals involving monetary awards. Compliance with this requirement is not only mandatory but jurisdictional as well. However, the Court recognized that the bond requirement may be relaxed in meritorious cases, provided there is substantial compliance with the rules.
In this case, Abelardo substantially
complied with the bond requirement by posting a total of P3,600,000.00 out of
the total monetary award of P3,683,394.45, within the reglementary period. The
Court also examined the employment relationship between Abelardo and Simbajon,
et al. applying the four-fold test: selection and engagement, payment of wages,
power to dismiss, and power to control. It found no substantial evidence
supporting an employment relationship between Abelardo and Simbajon, et al.
Abelardo's evidence, including contracts, tax returns, and other documents,
supported his claim of being the lessor of the restaurant rather than the
employer. Therefore, the Court reversed the CA's decision and reinstated the
NLRC's ruling, exonerating Abelardo Salazar from liability.
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