ALBURO ALBURO AND ASSOCIATES LAW OFFICES ALBURO ALBURO AND ASSOCIATES LAW OFFICES

contact

MON-SAT 8:30AM-5:30PM

June 1, 2022

WHEN SHOULD AN EMPLOYEE FILE ALL HIS MONEY CLAIMS ARISING FROM EMPLOYER-EMPLOYEE RELATIONSHIP?

Money of Philippines. Philippine peso bills. PHP banknotes. 50 pesos. Business, finance, news background.

After reading When should an Employee file all his Money Claims arising from Employer-Employee Relationship?, read also On Terms and Conditions of a Trust Fund under the Pre-Need Code of the Philippines

  • Money claims arising from employer-employee relations shall be filed within three (3) years from the time of entitlement

  • Money claims consequent to an illegal dismissal such as backwages shall be filed within four (4) years

  • An employee who clearly abandoned his employment is not entitled to backwages

When should an employee file all his money claims arising from employer-employee relationship?

For a better understanding, let us take the case of Arriola vs. Pilipino Star Ngayon Inc. G.R.No. 175689, August 13, 2014.

In this case, Pilipino Star Ngayon, Inc. employed Arriola as correspondent in July 1986. Arriola had held various positions in Pilipino Star Ngayon, Inc. before becoming a section editor and writer of its newspaper. He wrote “Tinig ng Pamilyang OFWs” until his column was removed from publication on November 15, 1999. Since then, Arriola never returned for work. 

On November 15, 2002, Arriola filed a complaint for illegal dismissal, non-payment of salaries/wages, moral and exemplary damages, actual damages, attorney’s fees, and full backwages with the National Labor Relations Commission. He alleged that he was arbitrarily dismissed on November 15, 1999. Arguing that he was a regular employee, Arriola contended that his rights to security of tenure and due process were violated when Pilipino Star Ngayon, Inc. illegally dismissed him. 

As for Pilipino Star Ngayon, Inc., they alleged that around third week of November 1999, Arriola suddenly absented himself from work and never returned despite calls and beeper messages sent by Pilipino Star Ngayon, Inc. After few months, they learned that Arriola transferred to a rival newspaper publisher, Imbestigador, to write “Boses ng Pamilyang OFWs.”

In his reply, Arriola denied that he abandoned his employment. He maintained that Pilipino Star Ngayon, Inc. ordered him to stop reporting for work and to claim his separation pay. To prove this, Arriola presented a statement of account allegedly faxed to him by Pilipino Star Ngayon, Inc.’s accounting head. This statement of account showed a computation of his separation pay as of November 30, 1999.

The Labor Arbiter found that Arriola abandoned his employment with Pilipino Star Ngayon, Inc. On Arriola’s money claims, the Labor Arbiter ruled that they have already prescribed, meaning, Arriola can no longer claim them as his complaint was filed out of time. 

When should an employee file all his money claims arising from employer-employee relationship?

The Supreme Court said:

Under Article 291 (now article 306) of the Labor Code of the Philippines, all money claims arising from employer-employee relations shall be filed within three (3) years from the time of entitlement; otherwise, they shall forever barred.   This means that an employee can no longer claim his money claims arising from employer-employee relations unless filed within the said three (3) years. 

Article 291 (now article 306) covers claims for overtime pay, holiday pay, service incentive leave pay, bonuses, salary differentials, and illegal deductions by an employer. 

The provision, however, does not cover “money claims’ consequent to an illegal dismissal such as backwages. It also does not cover claims for damages due illegal dismissal. These are governed by Article 1146 of the Civil Code of the Philippines which provides that such claims shall be filed within four (4) years from the time of entitlement. 

Is Arriola entitled to his claims for backwages and damages?

The Supreme Court said:

No. 

While Arriola filed his complaint three years and one day from his alleged illegal dismissal and therefore, filed his claims for backwages, actual, moral and exemplary damages, and attorney’s fees well within the four-year prescriptive period, he is not entitled to said claims as the Supreme Court ruled that Arriola was not illegally dismissed and that he abandoned his employment.


Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries regarding illegal dismissal, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.

All rights reserved.


[email-subscribers-form id=”4″]

Leave a Reply

Your email address will not be published. Required fields are marked *

0 Shares
Share
Tweet
Share