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    Magana v. CA, G.R. No. 174833, December 15, 2010

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    Digests Law
    The Supreme Court ruled that: 1) Magana was illegally dismissed by Medicard and was entitled to back wages. 2) Philippine labor law requires employers to immediately reinstate or pay dismissed employees who obtain favorable rulings, even if the ruling is later reversed on appeal. 3) In this case, Medicard was obligated to reinstate and pay Magana's wages from the date of the favorable ruling until the reversal, as per previous Supreme Court rulings.

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    Magana v. CA, G.R. No. 174833, December 15, 2010

    Uploaded by

    Digests Law
    58 views2 pages
    The Supreme Court ruled that: 1) Magana was illegally dismissed by Medicard and was entitled to back wages. 2) Philippine labor law requires employers to immediately reinstate or pay dismissed employees who obtain favorable rulings, even if the ruling is later reversed on appeal. 3) In this case, Medicard was obligated to reinstate and pay Magana's wages from the date of the favorable ruling until the reversal, as per previous Supreme Court rulings.

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    The Supreme Court ruled that: 1) Magana was illegally dismissed by Medicard and was entitled to back wages. 2) Philippine labor law requires employers to immediately reinstate or pay dismissed employees who obtain favorable rulings, even if the ruling is later reversed on appeal. 3) In this case, Medicard was obligated to reinstate and pay Magana's wages from the date of the favorable ruling until the reversal, as per previous Supreme Court rulings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    58 views2 pages

    Magana v. CA, G.R. No. 174833, December 15, 2010

    Uploaded by

    Digests Law
    The Supreme Court ruled that: 1) Magana was illegally dismissed by Medicard and was entitled to back wages. 2) Philippine labor law requires employers to immediately reinstate or pay dismissed employees who obtain favorable rulings, even if the ruling is later reversed on appeal. 3) In this case, Medicard was obligated to reinstate and pay Magana's wages from the date of the favorable ruling until the reversal, as per previous Supreme Court rulings.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    MAGANA v. MEDICARD PHIL., INC. (G.R. No.

    174833)
    December 15, 2010

    TOPIC:
    Police Power

    PONENTE:
    Ponente: Carpio, J.

    DOCTRINE:
    Mandatory order by law to execute reinstatement orders pending appeal, unheard of in ordinary civil proceedings, is a
    police power measure, grounded on the theory that the preservation of the lives of the citizens is a basic duty of the State,
    that is more vital than the preservation of corporate profits.

    Then, by and pursuant to the same power, the State may authorize an immediate implementation, pending appeal, of a
    decision reinstating a dismissed or separated employee since that saving act is designed to stop, although temporarily
    since the appeal may be decided in favor of the appellant, a continuing threat or danger to the survival or even the life of
    the dismissed or separated employee and its family.

    FACTS:
    • Myrna P. Magana was hired as a nurse by Medicard Philippines, Inc., a health maintenance organization.
    Medicard later assigned Magana as company nurse for one of its corporate clients, the Manila Pavilion Hotel.

    • Manila Pavilion replaced Magana with another nurse (not from Medicard). In lieu of a nursing-related position,
    Medicard offered Magana the position of liaison officer. Finding the offer unacceptable and with her continued
    non-assignment, Magana sued Medicard and the Pavilion Hotel in the NLRC for illegal dismissal and payment of
    benefits and damages.

    • Labor Arbiter ruled in favor of Magana. The arbiter found Medicard to be a mere labor contractor for the Pavilion
    Hotel which exercised control and termination powers over Magana. The arbiter considered the Hotel's summary
    replacement of Magana indicative of lack of cause for her dismissal and of bad faith. Consequently, the arbiter
    ordered the Hotel to reinstate Magana and, with Medicard, jointly and severally pay her backwages, 13th month
    pay, damages and attorney's fees.

    • Upon appeal, NLRC ruled that Mediacard, not the Hotel, as Magana's employer. As such, the CA found Medicard
    liable for constructive illegal dismissal, and hence, for the payment of separation pay, 13th month pay, attorney's
    fees, and reinstatement wages. The NLRC also awarded reinstatement wages to Magana for Medicard's failure
    to reinstate her pending appeal as required under the second paragraph of Article 223 [now 3rd paragraph of
    Art. 229] of the Labor Code.

    • CA reversed the NLRC ruling and deleted the award of reinstatement wages. The CA found Magana's dismissal
    as valid, noting that Medicard's failure to assign her to a suitable position within six months after her replacement
    is "analogous to a suspension of operations of an enterprise" entitling the employee to payment only of
    separation pay.

    ISSUE:
    W/N Magana was illegally dismissed?
    W/N Magana is entitled to draw wages under an arbiter's ruling ordering her reinstatement even though such order is
    subsequently reversed on appeal.

    RULING:

    • Magana was illegally dismissed and was entitled to draw wages under the arbiter’s ruling.
    • The requirement for employers to pay wages to employees obtaining favorable rulings in illegal dismissal suits
    pending appeal is statutorily mandated under the second paragraph of Article 223 [now third paragraph of Art.
    229] of the Labor Code. This article gives employers two options, namely, to:

    (1) actually reinstate the dismissed employees or,


    (2) constructively reinstate them in the payroll.

    Either way, this must be done immediately upon the filing of their appeal, without need of any executory writ.

    • In Roquero v. Philippine Airlines, Inc., the Court held that even if the order of reinstatement of the Labor Arbiter
    is reversed on appeal, it is obligatory on the part of the employer to reinstate and pay the wages of the dismissed
    employee during the period of appeal until reversal by the higher court. On the other hand, if the employee has
    been reinstated during the appeal period and such reinstatement order is reversed with finality, the employee is
    not required to reimburse whatever salary he received for he is entitled to such, more so if he actually rendered
    services during the period. This same ruling was reiterated in Air Philippines Corporation v. Zamora.

    • In another case, Genuino v. National Labor Relations Commission, a Division of the SC diverged from
    the Roquero ruling by requiring refund or set-off of salaries received post-reversal of the reinstatement order.
    However, in the subsequent case of Garcia v. Philippine Airlines, Inc., the ruling in Genuino was set aside and the
    Court reaffirmed the Roquero ruling. In Garcia v. PAL, the Court held that even if the order of reinstatement of
    the Labor Arbiter is reversed on appeal, it is obligatory on the part of the employer to reinstate and pay the wages
    of the dismissed employee during the period of appeal until reversal by the higher court. It settles the view that
    the Labor Arbiter's order of reinstatement is immediately executory and the employer has to either readmit them
    to work under the same terms and conditions prevailing prior to their dismissal, or to reinstate them in the
    payroll, and that failing to exercise the options in the alternative, employer must pay the employee's salaries.

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