Intel Technology v. NLRC - Cabiles

7/21/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 715
G.R. No. 200575. February 5, 2014.*

INTEL TECHNOLOGY PHILIPPINES, INC., petitioner, vs.
NATIONAL LABOR RELATIONS COMMISSION AND
JEREMIAS CABILES, respondents.
Remedial Law; Civil Procedure; Appeals; Petition for Review on

Certiorari; Supreme Court; As a general rule, the Supreme Court is not a
trier of facts and a petition for review on certiorari under Rule 45 of the
Rules of Court must exclusively raise questions of law.—As a general rule,
this Court is not a trier of facts and a petition for review on certiorari under
Rule 45 of the Rules of Court must exclusively raise questions of law.
Nevertheless, this Court will not hesitate to deviate from what are clearly
procedural guidelines and disturb and strike down the findings of the CA
and those of the labor tribunals if there is a showing that they are
unsupported by the evidence on record or there was a patent misappreciation
of facts. Indeed, that the impugned decision of the CA is consistent with the
findings of the labor tribunals does not per se conclusively demonstrate its
correctness. By way of exception to the general rule, this Court will
scrutinize the facts if only to rectify the prejudice and injustice resulting
from an incorrect assessment of the evidence presented.
Labor Law; Termination of Employment; Resignation; Resignation is
the formal relinquishment of an office, the overt act of which is coupled with
an intent to renounce.—Resignation is the formal relinquishment of an
office, the overt act of which is coupled with an intent to renounce. This
intent could be inferred from the acts of the employee before and after the
alleged resignation.
Same; Employer-Employee Relationship; The continuity, existence or
termination of an employer-employee relationship in a typical secondment
contract or any employment contract for that matter is measured by the
following yardsticks: 1. the selection and engagement of the employee; 2.
the payment of wages; 3. the power of dismissal; and 4. the employer’s
power to control the employee’s con-
_______________
* THIRD DIVISION.
515
www.central.com.ph/sfsreader/session/0000016c10974944082388c6003600fb002c009e/t/?o=False 1/16
duct.—The continuity, existence or termination of an employer-employee

relationship in a typical secondment contract or any employment contract
for that matter is measured by the following yardsticks: 1. the selection and
engagement of the employee; 2. the payment of wages; 3. the power of
dismissal; and 4. the employer’s power to control the employee’s conduct.
As applied, all of the above benchmarks ceased upon Cabiles’ assumption
of duties with Intel HK on February 1, 2007. Intel HK became the new
employer. It provided Cabiles his compensation. Cabiles then became
subject to Hong Kong labor laws, and necessarily, the rights appurtenant
thereto, including the right of Intel HK to fire him on available grounds.
Lastly, Intel HK had control and supervision over him as its new Finance
Manager. Evidently, Intel Phil. no longer had any control over him.
Same; Transfers; No permanent transfer can take place unless the
officer or employee is first removed from the position held, and then
appointed to another position.—Although in various instances, his move to
Hong Kong was referred to as an “assignment,” it bears stressing that it was
categorized as a “permanent transfer.” In Sta. Maria v. Lopez, 31 SCRA 637
(1970), the Court held that “no permanent transfer can take place unless the
appointed to another position.” Undoubtedly, Cabiles’ decision to move to
Hong Kong required the abandonment of his permanent position with Intel
Phil. in order for him to assume a position in an entirely different company.
Clearly, the “transfer” was more than just an assignment. It constituted a
severance of Cabiles’ relationship with Intel Phil., for the assumption of a
position with a different employer, rank, compensation and benefits.
PETITION for review on certiorari of the resolutions of the Court of

Appeals.
The facts are stated in the opinion of the Court.
Quisumbing, Torres for petitioner.
Laguesma, Magsalin, Consulta & Gastardo Law Offices for
respondent.
516

MENDOZA, J.:
This is a petition for review on certiorari under Rule 45 of the
Rules of Court filed by petitioner Intel Technology Philippines, Inc.
(Intel Phil.). It assails the October 28, 2011[1] and February 3,
2012[2] Resolutions of the Court of Appeals (CA) in CA-G.R. SP
No. 118880, which dismissed the petition for certiorari filed by Intel
Phil. thereby affirming the September 2, 2010 Decision[3] of the
National Labor Relations Commission (NLRC) and its February 9,
2011 Resolution. The NLRC decision modified the March 18, 2010
Decision[4] of the Labor Arbiter (LA), and held Intel Phil. solely
liable for the retirement benefits of respondent Jeremias Cabiles
(Cabiles).

The Facts
This case concerns the eligibility of Cabiles to receive retirement
benefits from Intel Phil. granted to employees who had complied
with the ten (10)-year service period requirement of the company.
Cabiles was initially hired by Intel Phil. on April 16, 1997 as an
Inventory Analyst. He was subsequently promoted several times
over the years and was also assigned at Intel Arizona and Intel
Chengdu. He later applied for a position at Intel Semiconductor
Limited Hong Kong (Intel HK).
_______________
[1] Rollo, pp. 69-71. Penned by Associate Justice Normandie B. Pizarro, with
Associate Justice Amelita G. Tolentino and Associate Justice Rodil V. Zalameda,
concurring.
[2] Id., at pp. 73-74.
[3] Id., at pp. 113-123. Penned by Commissioner Angelo Ang Palaña, with
Commissioners Herminio V. Suelo and Numeriano D. Villena, concurring.
[4] Id., Position Paper, pp. 267-272. Penned by Labor Arbiter Enrico Angelo C.
Portillo.
517
In a letter,[5] dated December 12, 2006, Cabiles was offered the

position of Finance Manager by Intel HK. Before accepting the
offer, he inquired from Intel Phil., through an email, the
consequences of accepting the newly presented opportunity in Hong
Kong, to wit:
Are there any clearance requirements I need to fulfil as I move as a local

hire to Hong Kong starting February 1?? I am still on my expat assignment
in Chengdu till it ends January 31. Then immediately I become a HK local
employee so I don’t technically repatriate and work back to my home site
Philippines at all. Nevertheless, I still need to close I think my employment
there and so that all my ES benefits and clearance will be closed like
conversion of my vacation leaves to cash, carry over of my service tenure in
CV to HK etc. Please do let me know what process I need to go through or
would an email notification be enough?
Another issue I would like to clarify is with regard to my retirement
benefits. I will celebrate my 10th year of service with Intel on April 16,
2007. However, because I will be moving to Hong Kong as a local hire
starting February 1, would I still be entitled to retirement benefits?? Do we
roundup the years of service if its close enough to 10 years?? If not, what
other alternatives I have or do I just lose my years of service at Intel
Philippines? Any possibility that I keep my 9.5 years and start from there
when I work in the Philippines again in the future??[6]
On January 23, 2007, Intel Phil., through Penny Gabronino

(Gabronino), replied as follows:
Jerry – you are not eligible to receive your retirement benefit given
that you have not reached 10 years of service at the time you moved to
Hong Kong. We do not round up the years of service.
_______________
[5] Rollo, pp. 368-369.
[6] Id., at p. 581.
518
There will [be] no gap in your years of service. So in case that you move
back to the Philippines your total tenure of service will be computed less on
the period that you are out of Intel Philippines.[7] [Emphasis supplied]
On January 31, 2007, Cabiles signed the job offer.[8]

On March 8, 2007, Intel Phil. issued Cabiles his “Intel Final Pay
Separation Voucher” indicating a net payout of P165,857.62. On
March 26, 2007, Cabiles executed a Release, Waiver and Quitclaim
(Waiver)[9] in favor of Intel Phil. acknowledging receipt of
P165,857.62 as full and complete settlement of all benefits due him
by reason of his separation from Intel Phil.
On September 8, 2007, after seven (7) months of employment,
Cabiles resigned from Intel HK.
About two years thereafter, or on August 18, 2009, Cabiles filed
a complaint for non-payment of retirement benefits and for moral
and exemplary damages with the NLRC Regional Arbitration
Branch-IV. He insisted that he was employed by Intel for 10 years
and 5 months from April 1997 to September 2007 — a period which
included his seven (7) month stint with Intel HK. Thus, he believed
he was qualified to avail of the benefits under the company’s
retirement policy allowing an employee who served for 10 years or
more to receive retirement benefits.

The Labor Arbiter’s Decision
On March 18, 2010, the LA ordered Intel Phil. together with
Grace Ong, Nida delos Santos, Gabronino, and Pia Viloria, to pay
Cabiles the amount of HKD 419,868.77 or its peso equivalent as
retirement pay with legal interest and
_______________
[7] Id., at p. 582.
[8] Id., at p. 369.
[9] Id., at p. 211.
519
attorney’s fees. The LA held that Cabiles did not sever his
employment with Intel Phil. when he moved to Intel HK, similar to
the instances when he was assigned at Intel Arizona and Intel
Chengdu. Despite the clarification made by Intel Phil. regarding his

ineligibility to receive retirement benefits, the LA stated that Cabiles
could not be faulted if he was made to believe his non-entitlement to
retirement benefits. Thus, it should not prevent him from asserting
his right to receive them. Finally, the Waiver executed by Cabiles
when he left Intel Phil., was treated by the LA as no bar for claiming
his retirement pay because it merely covered the last salary and
commutation of sick leaves and vacation leaves to the exclusion of
retirement benefits. The dispositive portion of the LA decision
reads:
WHEREFORE, premises considered, Respondents are hereby ordered

to pay complainant the amount of Four Hundred Nineteen Thousand Eight
Hundred Sixty-Eight and 77/100 Hong Kong Dollars (HKD419,868.77) or
its Peso equivalent as retirement pay with legal interest until satisfied, and to
pay attorney’s fees equivalent to ten percent (10%) of the judgment award.
SO ORDERED.[10]

The NLRC Ruling
On appeal, the NLRC affirmed with modification the LA
decision. In its September 2, 2010 Decision, the NLRC held Intel
Phil. solely liable to pay Cabiles his retirement benefits. It
determined that his decision to move to Intel HK was not definitive
proof of permanent severance of his ties with Intel Phil. It treated his
transfer to Hong Kong as akin to his overseas assignments in
Arizona and Chengdu. As to the email exchange between Cabiles
and Intel Phil., the NLRC considered the same as insufficient to
diminish his right over re-
_______________
[10] Id., at p. 272.
520
tirement benefits under the law. Meanwhile, the NLRC disregarded

the Waiver because at the time it was signed, the retirement pay due
him had not yet accrued. Hence:
WHEREFORE, the appealed Decision is MODIFIED. Respondent-

appellant Intel Technology Phil., Inc. is ordered to pay complainant-appellee
Jeremias Cabiles the sum [xx] of Four Hundred Nineteen Thousand Eight
Hundred Sixty Eight and 77/100 Hong Kong Dollars (HKD419,868.77) or
its equivalent in Philippine peso as retirement pay together with legal
interest thereon and attorney’s fees computed at ten percent (10%) of the
award.
The individual respondents-appellants Grace Ong, Nida delos Santos,
Penny Gabronino and Pia Viloria are RELIEVED from any personal
liability resulting from the foregoing.
SO ORDERED.[11]
Intel Phil. moved for reconsideration but its motion was denied in
the NLRC Resolution,[12] dated February 9, 2011.

The CA Decision
Aggrieved, Intel Phil. elevated the case to the CA via a petition
for certiorari with application for a Temporary Restraining Order
(TRO) on April 5, 2011. The application for TRO was denied in a
Resolution, dated July 5, 2011. A motion for reconsideration, dated
July 27, 2011, was filed, but it was denied in a Resolution, dated
October 28, 2011, which also dismissed the petition for certiorari.
[13]
On December 1, 2011, Intel Phil. filed a motion for
reconsideration.
_______________
[11] Id., at p. 122.
[12] Id., at pp. 125-137.
[13] Id., at pp. 69-71.
521
Earlier, on September 19, 2011, pending disposition of the

petition before the CA, the NLRC issued a writ of execution[14]
against Intel Phil.:
NOW, THEREFORE, you are commanded to proceed to the premises

of respondent INTEL TECHNOLOGY PHILIPPINES,
INCORPORATED located at Gateway Business Park, Javalera, General
Trias, Cavite or anywhere in the Philippines where it could be located to
collect the amount of Three Million Two Hundred One Thousand Three
Hundred Ninety Eight Pesos and Sixty Centavos (P3,201,398.60) and turn
over the same to this Office for appropriate disposition.
You are likewise directed to collect from the respondents the amount of
Thirty One Thousand Five Hundred Ten Pesos (P31,510.00) representing
the execution fees pursuant to the provisions of the NLRC Manual of
Execution of Judgment.
In case you fail to collect the said amount in cash, you are directed to
cause the satisfaction of the same out of the respondents’ chattels or
movable goods or in the absence thereof, out of the immovable properties
not exempt from execution and return this Writ of Execution to the
undersigned not more than five (5) years from receipt hereof together with
the report not later than thirty (30) days from receipt and every thirty (30)
days thereafter pursuant to Section 12, Rule XI of the 2001 NLRC Rules of
Procedures.[15]
As ordered by the NLRC, Intel Phil. satisfied the judgment on

December 13, 2011 by paying the amount of P3,201,398.60 which
included the applicable withholding taxes due and paid to the
Bureau of Internal Revenue. Cabiles received a net amount of
P2,485,337.35, covered by the Bank of the Philippine Islands
Manager’s Check No. 0000000806.[16]
_______________
[14] Id., at pp. 789-790.
[15] Id., at p. 790.
[16] Id., at p. 792.
522
By reason thereof, Intel Phil. filed on December 21, 2011 a

Supplement to the Petition for Certiorari[17] praying, in addition to
the reliefs sought in the main, that the CA order the restitution of all
the amounts paid by them pursuant to the NLRC’s writ of execution,
dated September 19, 2011.
In its February 3, 2012 Resolution,[18] the CA noted without
action the supplement to the petition for certiorari of Intel Phil. and
denied the December 21, 2011 motion for reconsideration.
Hence, this petition.
ISSUES
I
The Court of Appeals committed serious error in dismissing the
Petition for Certiorari without expressing clearly and distinctly the facts
and the law on which its decision was based.
II
The Court of appeals committed serious and reversible error in not
finding that respondent NLRC gravely abused its discretion when it
ruled that private respondent was entitled to retire under Intel
Philippines’ retirement plan.
III
The Court of Appeals committed serious and reversible error in not
finding that respondent NLRC gravely abused its discretion in
annulling private respondent’s quitclaim.
_______________
[17] Id., at pp. 794-799.
[18] Id., at p. 73.
523
IV
The Court of Appeals committed serious and reversible error in not
finding that Cabiles has the legal obligation to return all the amounts
paid by Intel pursuant to the writ of execution.[19]
Intel Phil. insists as serious error the CA’s affirmation of the

NLRC decision holding it liable for the retirement benefits claimed
by Cabiles. It contends that he is disqualified to receive the benefits
for his failure to complete the required minimum ten (10) years of
service as he resigned to assume new responsibilities with Intel HK
effective February 1, 2007.

Respondent’s Position
In his Comment,[20] Cabiles submits (1) that the petition presents
questions of fact which cannot be reviewed via Rule 45; and (2) that
the CA did not err when it affirmed the NLRC ruling:
(a) for his entitlement to retirement pay as he was under the
employ of Intel Phil. for more than ten (10) years in
accordance with the prevailing retirement policy;
(b) for the nullity of the quitclaim as he was misled to believe
that he was disqualified to receive retirement benefits; and
(c) for his right to receive legal interest, damages and
attorney’s fees.
Cabiles views his employment with Intel HK as a continuation of
his service with Intel Phil. alleging that it was but an assignment by
his principal employer, similar to his assign-
_______________
[19] Id., at pp. 31-32.
[20] Id., at pp. 820-850.
524
ments to Intel Arizona and Intel Chengdu. Having rendered 9.5

years of service with Intel Phil. and an additional seven months with
Intel HK, he claims that he had completed the required 10 year
continuous service[21] with Intel Phil., thus, qualifying him for
retirement benefits.
In its Reply, Intel Phil. reiterates the arguments contained in its
petition.

The Court’s Ruling

Review of Factual Findings
As a general rule, this Court is not a trier of facts and a petition
for review on certiorari under Rule 45 of the Rules of Court must
exclusively raise questions of law.[22] Nevertheless, this Court will
not hesitate to deviate from what are clearly procedural guidelines
and disturb and strike down the findings of the CA and those of the
labor tribunals if there is a showing that they are unsupported by the
evidence on record or there was a patent misappreciation of facts.
Indeed, that the impugned decision of the CA is consistent with the

findings of the labor tribunals does not per se conclusively
demonstrate its correctness. By way of exception to the general rule,
this Court will scrutinize the facts if only to rectify the preju-
_______________
[21] Intel Philippines Retirement Policy provides:
Section 7. Resignation Retirement Benefit.—
A participant who, with 60 days prior notice to the Company, resigns from the
Company with the completion of at least ten (10) years of Plan Service, but
without having entitlement to the benefit mentioned in Section 2 to Section 6 of
this Article, shall be entitled to a lump sum benefit of Pensionable Salary per
year of Pensionable Service. x x x
[22] Cirtek Employees Labor Union-Federation of Free Workers v. Cirtek
Electronics, Inc., G.R. No. 190515, January 6, 2011, 650 SCRA 656.
525
dice and injustice resulting from an incorrect assessment of the

evidence presented.[23]
It is in this wise that the Court agrees with Intel Phil. that the CA
seriously erred in affirming the findings of the NLRC on the face of
substantial evidence showing Cabiles’ disqualification to receive the
retirement benefits. The Court, therefore, reverses the ruling of the
CA for the reasons hereinafter discussed.

Cabiles Resigned from Intel Philippines
Cabiles calls the attention of the Court to the lack of evidence
proving his resignation. On the contrary, he states that no severance
of relationship was made upon his transfer to Intel HK.
The Court is not convinced.
Resignation is the formal relinquishment of an office,[24] the
overt act of which is coupled with an intent to renounce. This intent
could be inferred from the acts of the employee before and after the
alleged resignation.[25]
In this case, Cabiles, while still on a temporary assignment in
Intel Chengdu, was offered by Intel HK the job of a Finance
Manager.
In contemplating whether to accept the offer, Cabiles wrote Intel
Phil. providing details and asking as follows:
Are there any clearance requirements I need to fulfil as I move as a local

hire to Hong Kong starting Feb-
_______________
[23] Timoteo H. Sarona v. NLRC, Royale Security Agency and
Cesar S. Tan, G.R. No. 185280, January 18, 2012, 663 SCRA 394, 415.
[24] Go v. Court of Appeals, G.R. No. 158922, May 28, 2004, 430 SCRA 358, 367.
[25] San Miguel Properties Philippines, Inc. v. Gucaban, G.R. No. 153982, July 18, 2011,
654 SCRA 18, 28-29.
526
ruary 1?? I am still on my expat assignment in Chengdu till it ends January

31. Then immediately I become a HK local employee so I don’t
technically repatriate and work back to my home site Philippines at all.
Nevertheless, I still need to close I think my employment there and so that
all my ES benefits and clearance will be closed like conversion of my
vacation leaves to cash, carry over of my service tenure in CV to HK etc.
Please do let me know what process I need to go through or would an email
notification be enough?
Another issue I would like to clarify is with regard to my retirement
benefits. Will celebrate my 10th year of service with Intel on April 16, 2007.
However, because I will be moving to Hong Kong as a local hire starting
February 1, would I still be entitled to retirement benefits?? Do we roundup
the years of service if its close enough to 10 years?? If not, what other
alternatives I have or do I just lose my years of service at Intel Philippines?
Any possibility that I keep my 9.5 years and start it from there when I work
in the Philippines again in the future??[26] [Emphases supplied]
This communication manifested two of his main concerns: a)

clearance procedures; and b) the probability of getting his retirement
pay despite the non-completion of the required 10 years of
employment service. Beyond these concerns, however, was his
acceptance of the fact that he would be ending his relationship with
Intel Phil. as his employer. The words he used — local hire, close,
clearance — denote nothing but his firm resolve to voluntarily
disassociate himself from Intel Phil. and take on new responsibilities
with Intel HK.
Despite a non-favorable reply as to his retirement concerns,
Cabiles still accepted the offer of Intel HK.
His acceptance of the offer meant letting go of the retirement
benefits he now claims as he was informed through email
correspondence that his 9.5 years of service with Intel
_______________
[26] Rollo, p. 581.
527
Phil. would not be rounded off in his favor. He, thus, placed himself
in this position, as he chose to be employed in a company that would
pay him more than what he could earn in Chengdu or in the
Philippines.
The choice of staying with Intel Phil. vis-à-vis a very attractive
opportunity with Intel HK put him in a dilemma. If he would wait to
complete ten (10) years of service with Intel Phil. (in about 4
months) he would enjoy the fruits of his retirement but at the same
time it would mean forfeiture of Intel HK’s compensation offer in
the amount of HK $942,500.00, an amount a lot bigger than what he
would receive under the plan. He decided to forfeit and became Intel
HK’s newest hire.
All these are indicative of the clearest intent of Cabiles to sever
ties with Intel Phil. He chose to forego his tenure with Intel Phil.,
with all its associated benefits, in favor of a more lucrative job for
him and his family with Intel HK.
The position of Cabiles that he was being merely assigned leads
the Court to its next point.

No Secondment Contract Exists
Cabiles views his employment in Hong Kong as an assignment
or an extension of his employment with Intel Phil. He cited as
evidence the offer made to him as well as the letter, dated January 8,
2007,[27] both of which used the word “assignment” in reference to
his engagement in Hong Kong as a clear indication of the alleged
continuation of his ties with Intel Phil.
The foregoing arguments of Cabiles, in essence, speak of the
“theory of secondment.”
The Court, however, is again not convinced.
_______________
[27] Id., at p. 853.
528
The continuity, existence or termination of an employer-

employee relationship in a typical secondment contract or any
employment contract for that matter is measured by the following
yardsticks:
1. the selection and engagement of the employee;
2. the payment of wages;
3. the power of dismissal; and
4. the employer’s power to control the employee’s conduct.
[28]
As applied, all of the above benchmarks ceased upon Cabiles’

assumption of duties with Intel HK on February 1, 2007. Intel HK
became the new employer. It provided Cabiles his compensation.
Cabiles then became subject to Hong Kong labor laws, and
necessarily, the rights appurtenant thereto, including the right of
Intel HK to fire him on available grounds. Lastly, Intel HK had
control and supervision over him as its new Finance Manager.
Evidently, Intel Phil. no longer had any control over him.
Although in various instances, his move to Hong Kong was
referred to as an “assignment,” it bears stressing that it was
categorized as a “permanent transfer.” In Sta. Maria v. Lopez,[29] the

Court held that “no permanent transfer can take place unless the
appointed to another position.” Undoubtedly, Cabiles’ decision to
move to Hong Kong required the abandonment of his permanent
position with Intel Phil. in order for him to assume a position in an
entirely different company. Clearly, the “transfer” was more than
just an assignment. It constituted a severance of Cabiles’
relationship
_______________
[28] Victor Meteoro v. Creative Creatures, Inc., G.R. No. 171275, July 13, 2009,
592 SCRA 481, 492.
[29] G.R. No. L-30773, 18 February 1970, 31 SCRA 637.
529
with Intel Phil., for the assumption of a position with a different

employer, rank, compensation and benefits.
Hence, Cabiles’ theory of secondment must fail.
The NLRC, however, was of the view that the transfer of Cabiles
to Intel HK was similar to his assignments in Intel Chengdu and
Intel Arizona.
The Court finds this conclusion baseless.
What distinguishes Intel Chengdu and Intel Arizona from Intel
HK is the lack of intervention of Intel Phil. on the matter. In the two
previous transfers, Intel Phil. remained as the principal employer
while Cabiles was on a temporary assignment. By virtue of which, it
still assumed responsibility for the payment of compensation and
benefits due him. The assignment to Intel HK, on the other hand,
was a permanent transfer and Intel Phil. never participated in any
way in the process of his employment there. It was Cabiles himself
who took the opportunity and the risk. If it were indeed similar to
Intel Arizona and Intel Chengdu assignments, Intel Philippines
would have had a say in it.

Release, Waiver and Quitclaim
Valid Terms Are Clear
Contrary to the conclusion affirmed by the CA, the Waiver
executed by Cabiles was valid.
In Goodrich Manufacturing Corporation v. Ativo,[30] the Court
reiterated the standards that must be observed in determining
whether a waiver and quitclaim had been validly executed:
_______________
[30] G.R. No. 188002, February 1, 2010, 611 SCRA 261, citing Periquet v. NLRC,
264 Phil. 1115, 1122; 186 SCRA 724, 730-731 (1990).
530
Not all waivers and quitclaims are invalid as against public policy. If the
agreement was voluntarily entered into and represents a reasonable
settlement, it is binding on the parties and may not later be disowned simply
because of a change of mind. It is only where there is clear proof that the
waiver was wangled from an unsuspecting or gullible person, or the
terms of settlement are unconscionable on its face, that the law will step
in to annul the questionable transaction. But where it is shown that the
person making the waiver did so voluntarily, with full understanding of
what he was doing, and the consideration for the quitclaim is credible and
reasonable, the transaction must be recognized as a valid and binding
undertaking.
In Callanta v. National Labor Relations Commission,[31] this

Court ruled that:
It is highly unlikely and incredible for a man of petitioner’s position and

educational attainment to so easily succumb to private respondent
company’s alleged pressures without even defending himself nor demanding
a final audit report before signing any resignation letter. Assuming that
pressure was indeed exerted against him, there was no urgency for petitioner
to sign the resignation letter. He knew the nature of the letter that he was
signing, for as argued by respondent company, petitioner being “a man of
high educational attainment and qualification, x x x he is expected to know
the import of everything that he executes, whether written or oral.”[32]
Here, the NLRC concluded in its February 9, 2011 Resolution[33]

that the Waiver was executed merely to allow Intel Phil. to escape its
obligation to pay the retirement benefits, thus, violative of law,
morals, and public policy. The Court, how-
_______________
[31] G.R. No. 105083, August 20, 1993, 225 SCRA 526.
[32] Id., at p. 535.
[33] Rollo, pp. 403-415.
531
ever, sees no clear evidence in the records showing that Cabiles was
constrained into signing the document. Also, it cannot be said that
Cabiles did not fully understand the consequences of signing the
Waiver. Being a person well-versed in matters of finance, it would
have been impossible for him not to have comprehended the
consequences of signing a waiver. Failing to see any evidence to
warrant the disregard of the Waiver, the Court is unable to affirm the
CA and, hence, declares it as valid and binding between Cabiles and
Intel Phil.
Assuming the Waiver was valid, the NLRC contended that it

could not be construed to cover the claims for the retirement pay
because it had not yet accrued at the time the document was signed
by Cabiles.
The Court finds Itself unable to agree.
The terms of the Waiver are clear:
I, Jeremias P. Cabiles, Filipino, of legal age and a resident of x x x

hereby acknowledge receipt from Intel Technology Philippines, Inc.
(the Company) the amount of x x x, in full and complete settlement
of all benefits due me by reason of my lawful separation from the
Company effective February 1, 2007.
In consideration of the foregoing:
1. I release, remise and forever discharge the Company, its

successors-in-interest, its stockholders, its officers, directors,
agents or employees from any action, sum of money, damages,
claims and demands whatsoever, which in law or in equity I
ever had, now have, or which I, my heirs, successors and
assigns hereafter may have by reason of any matter, cause or
thing whatsoever, up to the time of these presents, the intention
thereof being to completely and absolutely release the Company,
its successors-in-interest, x x x from
532
all liabilities arising wholly, partially, or directly from my

employment with the Company.
x x x x x x x x x
5. I acknowledge that I have received all amounts that are now or
in the future may be due me from the Company. I also
acknowledge that during the entire period of my employment
with the Company, I received or was paid all compensation,
benefits and privileges, to which I am entitled under all laws and
policies of the Company by reason of my past employment
and/or engagement therewith, and if I hereafter be found in any
manner to be entitled to any amount, the aforementioned
monetary amount is a full and final satisfaction of any and all
such undisclosed claims. (Emphasis supplied)[34]

Suffice it to state that nothing is clearer than the words used in
the Waiver duly signed by Cabiles — that all claims, in the present
and in the future, were waived in consideration of his receipt of the
amount of P165,857.62. Because the waiver included all present and
future claims, the non-accrual of benefits cannot be used as a basis
in awarding retirement benefits to him.
Lastly, even if the Court assumes that the Waiver was invalid,
Cabiles nonetheless remains disqualified as a recipient of retirement
benefits because, as previously discussed, the ten-year minimum

requirement was not satisfied on account of his early resignation.

Cabiles is not entitled to the
Retirement Benefits
Having effectively resigned before completing his 10th year
anniversary with Intel Phil. and after having validly waived
_______________
[34] Id., at p. 211.
533
all the benefits due him, if any, Cabiles is hereby declared ineligible
to receive the retirement pay pursuant to the retirement policy of
Intel Phil.
For that reason, Cabiles must return all the amounts he received
from Intel Phil. pursuant to the Writ of Execution issued by the
NLRC, dated September 19, 2011.
WHEREFORE, the petition is GRANTED. The assailed
October 28, 2011 and February 3, 2012 Resolutions of the Court of
Appeals are hereby REVERSED and SET ASIDE.
Respondent Jeremias P. Cabiles is ordered to make restitution to
petitioner Intel Technology Philippines, Inc. for whatever amounts
he received pursuant to the Writ of Execution issued by the National
Labor Relations Commission, dated September 19, 2011.
SO ORDERED.
Velasco, Jr. (Chairperson), Peralta, Abad and Leonen, JJ.,

concur.
Petition granted, resolutions reversed and set aside.
Notes.—Reassignments made by management pending

investigation of violation of company policies and procedure
allegedly committed by an employee fall within the ambit of
management prerogative. (Endico vs. Quantum Foods Distribution
Center, 577 SCRA 299 [2009])
Cessation from office by virtue of her intervening resignation did
not warrant the dismissal of the administrative complaint against her,
for the act complained of had been committed when she was still in
the service. (Concerned Citizen vs. Catena, 701 SCRA 255 [2013])
——o0o——
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7/21/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 715

G.R. No. 200575. February 5, 2014.*

Remedial Law; Civil Procedure; Appeals; Petition for Review on

duct.—The continuity, existence or termination of an employer-employee

PETITION for review on certiorari of the resolutions of the Court of

In a letter,[5] dated December 12, 2006, Cabiles was offered the

Are there any clearance requirements I need to fulﬁl as I move as a local

On January 23, 2007, Intel Phil., through Penny Gabronino

On January 31, 2007, Cabiles signed the job offer.[8]

Chengdu. Despite the clariﬁcation made by Intel Phil. regarding his

WHEREFORE, premises considered, Respondents are hereby ordered

tirement beneﬁts under the law. Meanwhile, the NLRC disregarded

WHEREFORE, the appealed Decision is MODIFIED. Respondent-

Earlier, on September 19, 2011, pending disposition of the

NOW, THEREFORE, you are commanded to proceed to the premises

As ordered by the NLRC, Intel Phil. satisﬁed the judgment on

By reason thereof, Intel Phil. ﬁled on December 21, 2011 a

paid by Intel pursuant to the writ of execution.[19]

Intel Phil. insists as serious error the CA’s afﬁrmation of the

ments to Intel Arizona and Intel Chengdu. Having rendered 9.5

Indeed, that the impugned decision of the CA is consistent with the

dice and injustice resulting from an incorrect assessment of the

Are there any clearance requirements I need to fulﬁl as I move as a local

ruary 1?? I am still on my expat assignment in Chengdu till it ends January

This communication manifested two of his main concerns: a)

The continuity, existence or termination of an employer-

As applied, all of the above benchmarks ceased upon Cabiles’

categorized as a “permanent transfer.” In Sta. Maria v. Lopez,[29] the

with Intel Phil., for the assumption of a position with a different

In Callanta v. National Labor Relations Commission,[31] this

It is highly unlikely and incredible for a man of petitioner’s position and

Here, the NLRC concluded in its February 9, 2011 Resolution[33]

Assuming the Waiver was valid, the NLRC contended that it

I, Jeremias P. Cabiles, Filipino, of legal age and a resident of x x x

In consideration of the foregoing:

1. I release, remise and forever discharge the Company, its

all liabilities arising wholly, partially, or directly from my

beneﬁts because, as previously discussed, the ten-year minimum

Velasco, Jr. (Chairperson), Peralta, Abad and Leonen, JJ.,

Petition granted, resolutions reversed and set aside.

Notes.—Reassignments made by management pending

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