SALAFRANCA V. PHILAMLIFE

FACTS: In 1981, Enrique Salafranca was hired as an administrative officer by the Philamlife Village Homeowners Association, Inc. (HOA). Salafranca was tasked to manage the village’s day to day activities. His employment was originally for 6 months only but he was reappointed to his position multiple times until his employment expired 1983.  But even after the expiration and without renewal, he still continued to work. Then, in 1987, the HOA the amended its by-laws. Among the amendment was a provision that the administrative officer (Salafranca) shall have a tenure which is co-terminus with the Board of Directors which appointed him. Furthermore, until he submits a medical certificate showing his state of health, his employment shall be on a month-to-month basis. Notwithstanding the failure of Salafranca to submit the requirements, he continued working until his termination in December 1992 which is the expiration of the tenure of the Board of Directors.

Therefore, Salafranca filed a complaint for illegal dismissal with money claims and for damages.

Respondents contention is that  the term of employment was co-terminus with the term of the BOD. The Labor Arbiter rendered a decision in favor of Salafranca stating that the Amendment of the By-Laws would not be applicable to the case because Salafranca had become a regular employee long time before the Amendment took place. Moreover, the Amendment should be applied prospectively and not retroactively.

NLRC reversed the decision of the Labor Arbiter. The reason of the NLRC is that the fact that he continued to work did not in any way make his employment permanent because he was reminded of the nature of his position.

Hence, this petition.

ISSUE: Whether or not Salafranca was illegally dismissed.

HELD: Yes. At that time, Salafranca already enjoys security of tenure because he is already a  regular employee. While the HOA has the right to amend its by-laws but such amendment must not impair existing contracts or rights. In this case, the provision that Salafranca’s position shall be co-terminus with the appointing Board impairs his right to security of tenure which has already vested even prior to the amendment of the by-laws in 1987.

The security of tenure which is granted to an employee who was become regular after working for more than 1 year. Such regular employee cannot be dismissed without just or authorized cause under the Labor Code.

ADDTNL NOTES:

PROOF OF E-E RELATIONSHIP

1. He was extended successive appointments by respondents.

2. The HOA paid petitioner a fixed salary for his services.

3. The HOA had the power of dismissal over Salafranca

4. The HOA controlled the work of the petitioner not only with respect to  the ends to be achieved but also the means to be used.

PROOF OF EMPLOYMENT REGULARITY

There is no dispute that the petitioner already attained the status of a regular employee because he had rendered service to the responded for 11 years.

DEFENSES OF THE HOA

1. Gross negligence and serious misconduct.

2. They did not proceed to a full blown investigation to save the petitioners reputation.

3. Petition was filed out of time. (3 months applies, not 60 days, because the revised rules on the petition of certiorari was not yet in effect)