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Exceptions to the Limited Liability Rule

It is a well-settled principle that the exception to the limited liability doctrine applies when the damage is due to the fault of the shipowner or to the concurrent negligence of the shipowner and the captain. Where the shipowner fails to overcome the presumption of negligence, the doctrine of limited liability cannot be applied. (Aboitiz Shipping Corporation v. Court of Appeals, G.R. No. 121833, October 17, 2008)

The Supreme Court decides: (1) If a taxpayer does not agree to a compromise, the compromise penalty cannot be enforced because mutual agreement is necessary for a compromise to be valid. (2) Deficiency interest and delinquency interest can be imposed at the same time.

· A compromise penalty cannot be enforced if the taxpayer does not agree to the compromise because a compromise must be mutually agreed upon.
· Deficiency interest and delinquency interest can be simultaneously imposed.

Permanent Status of Employment of a Private School Teacher

In case of private school teachers, those who have served the probationary period shall be made regular or permanent.

 

Full-time teachers who have satisfactorily completed their probationary period shall be considered regular or permanent. (Section 93, 1992 Manual of Regulations for Private Schools)

 

A part-time employee would not attain permanent status no matter how long he had served the school. (De La Salle Araneta University v. Juanito Bernardo, G.R. No. 190809, February 13, 2017)

Handbook for OFWs Act of 2018

The handbook for overseas Filipino workers shall be created and issued to every land-based and sea-based worker free of charge. It shall serve as a ready reference for migrant workers when they need to assert their rights and responsibilities. It shall also deal with key issues that they need to know in order to maintain decent employment conditions overseas. (Section 2, Republic Act No. 11227)

Prescription of Claims in Illegal Dismissal Cases and Money Claims

The prescriptive period to file a complaint for illegal dismissal is four years from the time the cause of action accrued.

An action for illegal dismissal or when one is arbitrarily and unjustly deprived of his job or means of livelihood is essentially a complaint for “injury of rights”, which falls under Article 1146 of the Civil Code of the Philippines. (Jimmy Gallego v. Wallem Maritime Service, Inc., G.R. No. 216440, February 19, 2020)

Under the Article 1146 of the Civil Code, an action upon injury to the rights of the plaintiff must be instituted within four (4) years. (Article 1146, Civil Code)

Dismissal with Just or Authorized Cause but Defective Due Process: Still a Valid Dismissal

· An employee’s removal for just or authorized cause but without complying with the proper procedure, on the other hand, does not invalidate the dismissal. (Distribution & Control Products, Inc. vs. Jeffrey Santos, G.R. No. 212616, July 10, 2017)

· The law and jurisprudence allow the award of nominal damages in favor of an employee in a case where a valid cause for dismissal exists but the employer fails to observe due process in dismissing the employee. (Libcap Marketing Corp. vs. Lanny Jean Baquial, G.R. No. 192011, June 30, 2014)

Employee’s Liability for Payment of Employment Bond

A resigning employee may be held accountable for the payment of an “employment bond” in accordance with the contractual obligations stipulated within the employment agreement. Such liability emanates from the breach of the minimum employment period clause delineated therein. (Comscenre Pidls, Inc. vs. Camille Rocio, G.R. No. 222212, January 22, 2020)