CASE DIGEST: Wilgen Loon v. Power Master Inc.

 


WILGEN LOON, JERRY ARCILLA, ALBERT PEREYE, ARNOLD PEREYE, EDGARDO OBOSE, ARNEL MALARAS, PATROCINO TOETIN, EVELYN LEONARDO, ELMER GLOCENDA, RUFO CUNAMAY, ROLANDO SAJOL, ROLANDO ABUCAYON, JENNIFER NATIVIDAD, MARITESS TORION, ARMANDO LONZAGA, RIZAL GELLIDO, EVIRDE HAQUE, MYRNA VINAS, RODELITO AYALA, WINELITO OJEL, RENATO RODREGO, NENE ABINA, EMALYN OLIVEROS, LOUIE ILAGAN, JOSE ENTIG, ARNEL ARANETA, BENJAMIN COSE, WELITO LOON and WILLIAM ALIPAO, petitioners vs. POWER MASTER INC., TRI-C GENERAL SERVICES, and SPOUSES HOMER and CARINA ALUMISIN, respondents
GR No. 189404                   |              December 11, 2013

TOPIC: Holidays, SIL, and Service Charge

FACTS:

Respondents Power Master, Inc. and Tri-C General Services employed and assigned the petitioners as janitors and leadsmen in various PLDT offices in Metro Manila. The petitioners alleged that they were not paid minimum wages, overtime, holiday, premium, service incentive leave, and 13th month pays. They further averred that respondents made them sign blank payroll sheets. On June 11, 2001, they amended their complaint and included illegal dismissal therein. They claimed that respondents relieved them from service in retaliation.

On March 15, 2002, the LA partially ruled in favor of the petitioners. The LA awarded the petitioners salary differential, service incentive leave, and 13th month pays. In awarding these claims, the LA stated that the burden of proving payment of these money claims rests with the employer. The LA also awarded attorney’s fees in favor of the petitioners. However, the petitioner’s claims for backwages, overtime, holiday, and premium pays were denied by the LA. The LA observed that the petitioners failed to show that they rendered overtime worked and worked on holidays and rest days without compensation. The LA further concluded that the petitioners cannot be declared to have been dismissed from employment because they did not show any notice of termination of employment nor were they barred from entering the respondents’ premises.

On appeal in the NLRC, the respondents claimed that they paid the petitioners minimum wages, service incentive leave and 13th month pays. As proofs, they attached photocopied and computerized copies of payroll sheets to their memorandum on appeal. They further argued that the petitioners were validly dismissed because their repeated defiance to their transfer to different workplaces and their violations of the company rules and regulations constituted serious misconduct and willful disobedience.

On January 3, 2003, the respondents filed an unverified supplemental appeal. They attached to it photocopied and computerized copies of list of employees with ATM cards. The list also showed the amounts allegedly deposited in the employees’ ATM cards.

The NLRC affirmed the LA’s awards of holiday pay and attorney’s fees. However, it overturned the LA’s awards of salary differential, 13th month and service incentive leave pays. In so ruling, it gave weight to the pieces of evidence attached to the memorandum on appeal and the supplemental appeal. It maintained that the absence of the petitioners’ signatures in the payrolls was not an indispensable factor for their authenticity. It pointed out that the payment of money claims was further evidenced by the list of employees with ATM cards. The NLRC further ruled that the petitioners were lawfully dismissed on grounds of serious misconduct. It found that the petitioners failed to comply with various memoranda directing them to transfer to other workplaces and to attend training seminars for the intended reorganization and reshuffling.

The CA affirmed the NLRC’s ruling and upheld the NLRC’s findings on the petitioners’ monetary claims.

ISSUE: 

Whether or not the petitioners are entitled to salary differential, overtime, holiday, premium, service incentive leave, and 13th month pay

RULING:

The Court reversed the NLRC’s finding that the petitioners are not entitled to salary differential, service incentive, holiday, and 13th month pays. The general rule is that the burden rests on the employer to prove payment rather on the plaintiff to prove nonpayment of these money claims. The rationale for this rule is that the pertinent personnel files, payrolls, records, remittances and other similar documents — which will show that differentials, service incentive leave and other claims of workers have been paid — are not in the possession of the worker but are in the custody and control of the employer.

However, the Court ruled that petitioners are not entitled to overtime and premium pays. The CA was correct in its finding that the petitioners failed to provide sufficient factual basis for the award of overtime, and premium pays for holidays and rest days. The burden of proving entitlement to overtime pay and premium pay for holidays and rest days rests on the employee because these are not incurred in the normal course of business. In the present case, the petitioners failed to adduce any evidence that would show that they actually rendered service in excess of the regular eight working hours a day, and that they in fact worked on holidays and rest days.


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