SECOND DIVISION

December 6, 2017

G.R. No. 211892

INNODATA KNOWLEDGE SERVICES, INC., Petitioner
vs.
SOCORRO D'MARIE T. INTING, ISMAEL R. GARAYGAY, EDSON S. SOLIS, MICHAEL A. REBATO, JAMES HORACE BALONDA, STEPHEN C. OLINGAY, DENNIS C. RIZON, JUNETH A. RENTUMA, HERNAN ED NOEL I. DE LEON, JR., JESS VINCENT A. DELA PENA, RONAN V. ALAMILLO, ENNOH CHENTIS R. FERNANDEZ, FRITZ J. SEMBRINO, DAX MATTHEW M. QUIJANO, RODOLFO M. VASQUEZ, MA. NAZELLE B. MIRALLES, MICHAEL RAY B. MOLDE, WENDELL B. QUIBAN, ALDRIN O. TORRENTIRA, and CARL HERMES CARSKIT, Respondents

D E C I S I O N

PERALTA, J.:

This is a petition for review seeking the reversal of the Decision1 of the Court of Appeals (CA), Cebu, Twentieth (20th) Division, dated August 30, 2013 and its Resolution2 dated March 12, 2014 in CA-G.R. CEB-SP No. 06443 which reversed and set aside Decision3 of the National Labor Relations Commission (NLRC) on May 31, 2011.

The factual and procedural antecedents, as evidenced by the records of the case, are the following:

Petitioner Innodata Knowledge Services, Inc. (IKSI) is a company engaged in data processing, encoding, indexing, abstracting, typesetting, imaging, and other processes in the capture, conversion, and storage of data and information. At one time, Applied Computer Technologies (ACT), a company based in the United States of America, hired IKSI to review various litigation documents. Due to the nature of the job, ACT required IKSI to hire lawyers, or at least, law graduates, to review various litigation documents, classify said documents into the prescribed categories, and ensure that outputs are delivered on time. For this purpose, IKSI engaged the services of respondents Socorro D’Marie Inting, Ismael R. Garaygay, Edson S. Solis, Michael A. Rebato, James Horace Balonda, Stephen C. Olingay, Dennis C. Rizon, Juneth A. Rentuma, Hernan Ed Noel I. de Leon, Jr., Jess Vincent A. dela Pefia, Ronan V. Alamillo, Ennoh Chentis R. Fernandez, Wendell B. Quiban, Aldrin 0. Torrentira, Michael Ray B. Molde, Fritz J. Sembrino, Dax Matthew M. Quijano, Rodolfo M. Vasquez, Ma. Nazelle B. Miralles and Carl Hennes Carskit as senior and junior reviewers with a contract duration of five (5) years.

On January 7, 2010, however, respondents received a Notice of Forced Leave from IKSI informing them that they shall be placed on indefinite forced leave effective that same day due to changes in business conditions, client requirements, and specifications. Hence, respondents filed a complaint for illegal dismissal, reinstatement or payment of separation pay, backwages, and damages against IKSI.

Subsequently, IKSI sent respondents separate notices dated May 27, 2010 informing them that due to the unavailability of new work related to the product stream and uncertainties pertaining to the arrival of new workloads, their project employment contracts would have to be terminated.

On November 10, 2010, the Labor Arbiter (LA), in the consolidated cases of NLRC RAB VII Case No. 01-0159-10, NLRC RAB VII Case No. O 1-0182-10, and NLRC RAB VII Case No. 02-0301-10, declared that there was no illegal dismissal, thus:

WHEREFORE, in view of the foregoing, a decision is hereby rendered declaring that complainants were not constructively dismissed but were placed on forced leave as a cost-saving measure. Consequently, herein respondents are directed to recall complainants back to work as soon as work becomes available. Complainants are likewise directed to report back to work within ten (10) days from receipt of the order of respondents to report back to work, otherwise, their failure to do so would be construed as an abandonment. In the event that reinstatement is no longer feasible, in lieu thereof, separation pay is granted equivalent to one (1) month salary for every year of service, a fraction of six (6) months is considered as one (1) whole year, sans backwages.

The claim for moral and exemplary damages as well as attorney’s fees are DISMISSED for lack of merit.

SO ORDERED.4

WHEREFORE, the Decision of the Labor Arbiter is hereby AFFIRMED WITH MODIFICATION, in that in lieu of reinstatement, to pay the twelve (12) complainants-appellants namely: Michael A. Rebato, Hernan Ed Noel L. de Leon, Jr., Wendell B. Quiban, Fritz Sembrino, Ismael R. Garaygay III, Edson S. Solis, Stephen Olingay, Ronan Alamillo, Jess Vincent A. dela Pena, Dax Matthew M. Quijano, Juneth A. Rentuma and Socorro D'Marie T. Inting, the total amount of Php563,500.00.

SO ORDERED.5

Undaunted, the employees elevated the matter to the CA Cebu, alleging grave abuse of discretion on the NLRC’s part. On August 30, 2013, the CA granted their petition and reversed the assailed NLRC ruling, thus:

WHEREFORE,
premises considered, this petition is GRANTED. The assailed Decision dated May 31, 2011 and Resolution dated August 26, 2011 of public respondent in NLRC Case No. VAC-01-000042-2011 are REVERSED and SET ASIDE. Petitioners Socorro D'Marie Inting, Ismael R. Garaygay, Edson S. Solis, Michael A. Rebato, James Horace Balonda, Stephen C. Olingay, Dennis C. Rizon, Juneth A. Rentuma, Hernan Ed Noel I. de Leon, Jr., Jess Vincent A. dela Pena, Ronan V. Alamillo, Ennoh Chentis R. Fernandez, Wendell B. Quiban, Aldrin 0. Torrentira, Michael Ray B. Molde, Fritz J. Sembrino, Dax Matthew M. Quijano, Rodolfo M. Vasquez, Ma. Nazelle B. Miralles and Carl Hermes Carskit are declared to have been illegally dismissed by Innodata and hence, each of them is entitled to the payment of the following:

(a) Backwages reckoned from the start of their employment up to the finality of this Decision with interest as six percent (6%) per annum, and 12% legal interest thereafter until fully paid;

(b) Separation pay equivalent to one (1) month salary for every year of service, with a fraction of at least six (6) months to be considered as one (1) whole year, to be computed from the date of their employment up to the finality of this decision;

(d) Attorney's fees equivalent to 10 percent (10%) of the total award.

The case is hereby ordered REMANDED to the labor arbiter for the computation of the amounts due each petitioner.

Costs on private respondent Innodata.