ASSOCIATED ANGLO-AMERICAN TOBACCO CORPORATION AND/OR NGO CHING, PETITIONERS, VS. HON. MANUEL M. LAZARO, PRESIDENTIAL ASSISTANT FOR LEGAL AFFAIRS; MINISTER OF LABOR AND EMPLOYMEN…

The issue in this case is whether the backwages
of a reinstated employee should be limited to three (3) years.

Jaime Sambajon worked for Associated
Anglo?American Tobacco Corporation as driver-agent at P300 a month for
the period from October, 1968 to September 1973. On October 1,1973, he was
promoted to promo­tional dealer at P740 a month. Due to an alleged shortage in
his accounts in the sum of P2,536.25, the firm on February 11, 1974 filed with the
Department of Labor an application to dismiss him. (p. 19, Rollo).

Sambajon on March 11, 1974 filed a complaint against the firm for
reinstatement, backwages and overtime pay. The Labor Arbiter of Regional Branch No. V at Legaspi City
in a decision dated October 30, 1975
ordered the firm to reinstate Sambajon with backwages from March
1, 1974 at the rate of P740 a month (p. 22, Rollo).
The National Labor Relations Commission in its resolution of March 22, 1976 dismissed the firm’s appeal from
that decision because it was not under oath as required by section 3, Rule IX
of the NLRC rules (p. 24, Rollo).

The firm appealed to the Secretary of Labor. Acting Secretary Amado G. Inciong in his order of December 13, 1976 directed the
dismissal of Sambajon because of the shortage in his
account (p. 27, Rollo).

Sambajon appealed to the Office of the
President of the Philippines
which in a decision dated December
22, 1982 held Acting Secretary Inciong’s
order to be a nullity and affirmed the Labor Arbiter’s decision (p. 33, Rollo).

The Executive Labor Arbiter issued a writ of execution for P106,064.20 as backwages,
thirteenth-month pay and living allowances as of March 31, 1983, as computed by its socio-economic
analyst (p. 34, Rollo). To stay execution, the firm
posted a super­sedeas bond in the sum of P162,000 (p. 65, Rollo).

The firm in its petition four certiorari does not assail
the reinstatement. It simply prayed that the backwages
be limited to three (3) years.

We hold, following the settled rule on the matter and the
recommendation of the Solicitor General, that in the interest of pragmatic and
expeditious justice the backwages should be
limited to three years only (Insular Life Assurance Co., Ltd. Employees
Association vs. Insular Life Assurance Co., Ltd., L-25291, March 10, 1977, 76
SCRA 50; Yucoco vs. Inciong,
L-49061, March 29, 1982, 113 SCRA 245; National Labor Union vs. Court of
Industrial Relations, L-31276, September 9, 1982, 116 SCRA 417).

WHEREFORE, the decision under review is modified. In
addition to reinstatement, Sambajon is entitled to backwages equivalent to three years’ pay. No costs.

SO ORDERED.

Makasiar, (Chairman), Guerrero, Abad Santos, and Escolin, JJ., concur.

Concepcion, and De Castro, JJ., on leave.