San Miguel Corp. v. Teodosio G.R. No. 163033 | October 2, 2009

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San Miguel Corp. v. Teodosio

G.R. No. 163033 | October 2, 2009

THIRD DIVISION, PERALTA, J.

 

When Reinstatement is No Longer Possible 

Although the instant case calls for the reinstatement of the respondent to his former position as forklift operator or any equivalent position, the fact that his former position was already given to another regular employee; the length of time that this case has been pending; and the likely possibility that the protracted litigation may have seriously marred the relationship of the parties beyond reconciliation, may well have rendered reinstatement impossible. Accordingly, petitioner shall be awarded separation pay in lieu of reinstatement, if the latter is no longer possible. 

Eduardo L. Teodosio was hired by San Miguel Corporation (SMC) in 1991 as a forklift operator under multiple short-term contracts until he signed an Employment with a Fixed Period contract in 1993. Despite working continuously for four years, he was transferred to the bottling section in 1995 and later terminated, with his position as forklift operator given to another regular employee. He challenged his dismissal, arguing he had attained regular status and that his termination was illegal. The Labor Arbiter and NLRC ruled in favor of SMC, but the Court of Appeals (CA) reversed the decision, ordering Teodosio’s reinstatement with full backwages and benefits.

 

Whether an illegally dismissed employee should be reinstated if his former position has been permanently filled and no substantially equivalent position is available. 

No. The Supreme Court ruled that reinstatement was no longer possible and awarded separation pay instead, holding that, Teodosio was a regular employee – his repeated short-term contracts were a ploy to circumvent security of tenure, and he was engaged in an essential and continuous role in SMC’s business. But, reinstatement was not feasible. His former position had already been taken over by another regular employee, and no substantially equivalent position was available. Thus, separation pay was the proper remedy. In cases where reinstatement is impossible, separation pay must be awarded in addition to full backwages.

 


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