Reinstatement Pending Appeal: No Back Wages Without a Reinstatement Order

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TLDR: An employer is only required to pay back wages during the pendency of an appeal if the Labor Arbiter specifically ordered the employee’s reinstatement. If there’s no reinstatement order, or if the dismissal is deemed valid by the NLRC, the employer isn’t obligated to pay back wages during the appeal period.

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G.R. No. 115395, February 12, 1998 (FILFLEX INDUSTRIAL & MANUFACTURING CORPORATION vs. NATIONAL LABOR COMMISSION)

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Introduction

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Imagine being dismissed from your job, winning your case at the labor arbiter level, but then facing a lengthy appeal process. Are you entitled to receive wages while waiting for the final decision? This question often arises in labor disputes, and the answer isn’t always straightforward. The Supreme Court case of Filflex Industrial & Manufacturing Corporation v. National Labor Commission sheds light on this issue, clarifying the circumstances under which an employer must pay back wages during the pendency of an appeal.

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In this case, the central legal question revolves around whether an employee is entitled to back wages during the appeal before the National Labor Relations Commission (NLRC), especially when the labor arbiter’s decision didn’t explicitly order reinstatement. Furthermore, the Court tackles the issue of whether the NLRC can mandate back wages even when the employee’s dismissal was deemed legal.

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Legal Context

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The core legal principle at play here is found in Article 223 of the Labor Code, as amended, which governs appeals from decisions of the Labor Arbiter. This article stipulates the conditions under which a dismissed employee is entitled to reinstatement, even pending appeal.

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Article 223 of the Labor Code, as amended by Section 12 of RA 6715, states:

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In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to her dismissal or separation or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein.

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This provision essentially means that if the Labor Arbiter orders reinstatement, that order is immediately enforceable, even if the employer appeals the decision. The employer has the option of either physically reinstating the employee or simply keeping them on the payroll. However, this immediate enforceability hinges on the existence of an actual reinstatement order.

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Case Breakdown

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Salud Galing, a sewer at Filflex Industrial & Manufacturing Corporation, was dismissed for alleged abandonment of her job due to frequent absences. Galing filed a complaint for illegal dismissal, claiming her absences were due to chronic bronchitis, a condition she said the company was aware of.

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The Labor Arbiter initially ruled that Galing’s dismissal was