This document summarizes two consolidated labor cases regarding the termination of three teachers from their positions at Balayan Colleges. The teachers were initially placed on preventive suspension and later terminated. The labor arbiter ruled the dismissals were illegal and unjustified. On appeal, the NLRC affirmed but removed damages awards. The Supreme Court ultimately dismissed one petition and granted another in part, upholding the illegal dismissal ruling but modifying damages.

1. UNIVERSITY OF THE PHILIPPINES
DILIMAN, QUEZON CITY
TERMINATION
G.R. No. 101070, March 4, 1996
BALAYAN COLLEGES represented by LUIS N LOPEZ, President, petitioner vs.
National Labor Relations Commission, Elizabeth Consul, Divinagracia Chua and Eduardo
Lainez, respondents
GR No. 101289, March 14, 1996
ELIZABETH CONSUL, DIVINAGRACIA CHUA , and EDUARDO LAINEZ, petitioners,
vs. NATIONAL LABOR RELATIONS COMMISSION, BALAYAN COLLEGES,
respondents
EDUCATION ADMINSTRATION AND THE LAW
By:
JENNIFER J. LALUNA

2. PREVENTIVE SUSPENSION
• The preventive suspension be imposed without any
notice and hearing because its not penalty. It is
merely preliminary step in an administrative
investigation.
PERIOD OF PREVENTIVE SUPENSION
• The preventive suspension shall not last longer than
30 days. The employer shall thereafter reinstate the
worker in his previous position. The employer may
extend the period of suspension provided that during
the period of suspension , he pays the wages and other
benefits due to the worker (Rule 13, Book 5, Section
9 Labor Code as amended by Department Order.

3. JUST CAUSE TERMINATION
(Section 7. Rule I, Book VI, of the Omnibus Rules Implementing
the labor Code. )
There are only two necessary requisite for lawful
termination 1) substantive requirement 2) procedural
requirement.
Just Cause – refers to wrong doing committed by the
employee on the basis of which the aggrieved party may
terminate the employer-employee relationship.
1. Serious misconduct or willful refusal
by the employee to comply with lawful order of an
employer.

4. • 2. Breach of trust
3. Gross and habitual negligence of duty
4. Commission of crime against company
5. Analogous Causes such as
Insubordination -Labor Code states that “willful
disobedience to lawful orders” called “insubordination
ABANDONMENT
For constituted a valid cause of termination, there must be a deliberate,
unjustified refusal of the employee to resume his employment. Thus,
in order that a finding of abandonment may justly be made , there must
be a concurrence of two elements
1) the failure for work or absence without valid or justified reason
and
2) a clear intention to sever the employer-employee relationship.

5. In case of termination due to just cause, the
worker effected thereby shall not be entitled
to a separation pay.
• DOLE
• (If it is a case of just case termination, it
should be included in the monthly report to
the DOLE)
•

6. Example the termination due to authorized causes
a. redundancy due obsolescence of product ; is the excess
of people over what is required by the business
b. retrenchment to prevent losses
c. illness that cannot be cured in six months
d. cessation of business due to serious losses
Does the employer has the right to
terminate the employment even the
employee is not at fault?
yes, specifically in the case of termination
due to AUTHORIZED CAUSES

7. SEPERATION PAY
LAW – authorized cause
If the reason for the closure is loses, the company may
not obliged pay separation pay, if the employee is mindful, they can file claims
against the remaining assets of the corporation.
• In the cases of termination of employment due to authorized cause, the
employee affected thereby shall be entitled to payment of separation benefits.
• Redundancy – separation pay equivalent to one month pay of salary for
every year of service
• Retrenchment – separation pay equivalent to one – half month pay of salary
for every year of service.
WRITTEN NOTICE
For dismissal due to authorized causes such as closure or cessation of business
due to losses , the employer must serve written notice to the employee concerned
and to appropriate regional office of DOLE at least 30 before the effectivity date
of termination.

8. I: : Whether Balayan terminates the services
of the three teachers as department heads due to
just and authorized causes is illegal or not.
Whether Balayan placed the teachers under
preventive suspension is illegal or not.
F: The following two (2) cases were consolidated by
Honorable Court on February 3, 1992, before the
Department of Labor and Employment Sub-Regional
Arbitration Branch IV at San Pablo City.
1) GR no. 101070 of Balayan Colleges represented by
Luis Lopez petitioner vs. Laynez, Consul, Chua (as the
teachers and department
heads) respondents;

9. • 2) GR. No. 101289 of teachers as
petitioners vs. National Labor Relations
Commission (NLRC) , Balayan
Colleges, respondents – seeking to
revise the decision rendered by public
respondent NLRC, affirming with
modification the decision of the Labor
Arbiter, deleting the award of
damages and attorneys in favor for
the teachers.

10. F: This case arose sometime on February
1988 when the part-time teachers had a
verbal and written request to Balayan’s
Administrative Committee to increase
their compensation the same rate being
received by the full-time instructor.
No action made from the committee
despite repeated follow by the
teachers.
FEBRARUARY, 1988

11. • After nine months, the President instructed
the teachers to submit an individual
position papers on their requests for the
increase in teaching rates in the form of
Memorandum.
• Instead of complying with the aforesaid
memorandum. They informed the
Committee that they would no longer
submit their individual position papers
DECEMBER, 1988

12. • They would stop teaching in the College
Department effective, December 1, 1988.
Balayan’s President in a letter dated
December 4, 1988 terminated their
services as instructors and required them
answer the notice. At the same time, the
teachers were placed under preventive
suspension.

13. • They deny the charges and complained to the then
Department of Education Culture and Sports (DECS)
regarding the preventive suspension from Balayan’s
President.
• The recommendation of the DECS officials is to reinstate
the three teachers in their previous position and reconsider
the request of the department heads to make their per hour
rate from P14.00 to P20.00. The teachers asked for a
conference with the Administrative Committee with regard
to the decision about their case. But the request for
conference was not granted instead Balayan’s President,
Luis N. Lopez, terminated both of their services as
instructors and as department heads effective immediately
on January 17, 1989,
• 1988

14. Meanwhile after hearing on the merits, the labor arbiter
rendered a Decision on August 16, 1990
SCD:
• 1989
Declaring the dismissal of complainants Lainez,
Consul and Chua as illegal and unjustified;
reinstate the complainants to their former
positions as department heads without loss of
seniority rights and full backwages from January
17, 1989 to August 1990 and additional payment
for the moral damages and attorneys fees.

15. • JUSTIFICATION
• A valid dismissal of school teacher requires
due process , basic of which are the
opportunity to be heard and defend himself.
• Be mindful about the twin requirement of
due process, substantive and procedural
must be complied with , before a valid
dismissal exist – without which, the
dismissal becomes illegal.
•

16. But on appeal, the NLRC affirmed the decision with
modification. It deleted the award of damages and
attorney’s fees for the alleged failure of the teachers to
submit evidence to prove they were entitled to the same.
On the part of the Balayan, it manifested that its
collegiate courses were closed effective April 15, 1989
of the school year 1989-1990.
Dissatisfied with the NLRC decision, both parties filed
separate petitions before this Court, which were ordered
consolidated on February 3, 1992.
• 1990-1992

17. In G.R. No. 101070, Balayan alleges that the
NLRC erred when it awarded separation pay
to complainants who were separated from
work for Just and Lawful Causes. The
teachers’ refusal to submit the individual
position papers and their statement that they
will stop teaching was viewed as an act of
insubordination and abandonment of their
work.
• CONSOLIDATE PETITION
1990-1992

18. The teachers had no intention cut their employment since
they continue their function as department head. They just
discontinue their part time jobs in teaching because they
will violate the DECS and school policy and then the court
reminded the Balayan College terminate them first that’s
why they do not continue teaching and left their respective
position.
For alleged abandonment
Six month prior to the alleged teachers’ refusal to comply,
the teachers submitted the formal written request with
regard the reason for the increase in their hourly teaching
rates
For alleged insubordination

19. • Balayan further argues that the Labor
Arbiter ignored the fact of the forced
closure of the college department on April
15, 1989, and not April 15, 1990; and as
such, its liability for back wages shall be
computed only up to April 15, 1989.
In G.R. No. 101070,

20. • NLRC ordered the reinstatement of the
Principal since Balayan’s High School
Department is still in operation, but
Balayan is liable to pay separation pay for
two department heads in view of the
closure of the Balayan’s college
department.

21. • In. 101289, Consul, Chua, and Lainez argue in their petition
that the NLRC erred in deleting the award for damages and
attorney’s fees in their favor for the alleged of the teachers to
submit evidence to prove that they were entitled to the same.
Consul, Chua, and Lainez submitted their respective
affidavits before the Labor Arbiter, outlining in detail the
embarrassment and humiliation they suffered as a result of
their dismissal by Balayan.

22. • SCD: There was no legal ground to support
the dismissal of Consul and Lainez, as
department heads, the award of their
corresponding separation pays is in
order in view of the closure of
Balayan’s college department.
The teachers were dismissed
without due process of law.

23. • The Petition in G.R. No. 101070 is DISMISSED for
lack of merit, and the Petition in G.R. No.101289 is
GRANTED insofar as it prays for the reinstatement of
the award of 10% attorney’s fees and exemplary
damages of P20,000.00 and, for the reinstatement of
moral damages, subject to the modification that said
moral damages are reduced from P100,000.00 to
P50,000.00 for each of the teachers.

24. JUSTIFICATION
• In GR. No 101289. The following facts were found by the Labor
Arbiter and NLRC that do not support a case of insubordination
and abandonment:
1) The part time teachers submitted the formal written request with
regard the reason for the increase in their hourly teaching rates;
2) In the abandonment case, it is quite clear that the teachers never had
the intention to cut their employment from the school.
3) The court found out that the teachers were dismissed without due
process of law. The Balayan did not complied with the twin
requirement of due process.

25. Lessons Learned
• 1. In my own perspective, as an administrators and at same time
part time teachers before requesting to raise their teaching
hour rate they have to consider first the financial status of the
institution. They were not supposed to do part-time
teaching within office hours as admin heads. That’s why
Balayan gave them 14.00 hourly teaching rate instead of 20.00
comparable to other full time faculty.
2. The Balayan could have just approved the requested
conference by the complainants so to avoid disputes with
regard to the hourly teaching rate received by the
administrators
•
• 3. Be mindful about the twin requirement of due process,
substantive and procedural must be complied with , before a
valid dismissal exist – without which, the dismissal becomes
illegal.
•

26. • 1. For dismissal due to authorized causes such as
redundancy, retrenchment , cessation of business
due to serious losses , the employer must serve
written notice to the employee concerned and to
appropriate regional office of DOLE at least
____ before the effectivity of termination.
a. 7 days
b. 14 days
d. 60 days
e. I don’t know
c. 30 days

27. • 2. A valid dismissal of a school teacher requires
due process, basic of which are the opportunity
a. to be heard and resign before he/she will be
found guilty
b. to be placed under preventive suspension with
pay
c. to be placed under preventive suspension while
being investigated
e. I don’t know.
d. to be heard and defend himself

28. • 3. Can preventive suspension be imposed by the
employer without any notice and hearing?
b. No, notice and hearing will give them opportunity to
be heard and defend himself
c. No, notice and hearing will give the teacher a
complete idea of the nature of the accusation
d. b and c
e. I don’t know
a. Yes , since preventive suspension is not penalty.
It is merely preliminary step in an
administrative investigation.

29. • 4. Does the employer has the right to
terminate employment even if the
employee is not at fault.
• b. Definitely not
• c. Depends upon the situation
• d. a and b
a. Absolutely

30. • 5. Is an employee who terminated from
employment due to insubordination and/or
abandonment cases entitled to payment of
separation benefits?
• a. absolutely
• c. depends upon the decision of the
employer
• d. depends upon the decision of the court
• e. I don’t know
b. definitely not

31. • 6. The preventive suspension shall not last
longer than ____ days. The employer shall
thereafter reinstate the worker in his
previous position . (Adm. Code. Book V title I-A section 52)
b. 90 days
c. 7 days
d. 15 days
e. I don’t know
a. 30 days

32. • 7. The following cases of termination of
employment shall be entitled to a
separation benefits except
a. redundancy due obsolescence of product
b. retrenchment to prevent losses
c. illness that cannot be incurred in six
months
e. I don’t know
d. cessation of business due serious losses

33. • 8. Is an employee entitled to compensation
during the period of his preventive
suspension?
a. Absolutely
c. Depends upon the nature of
preventive suspension
d. Depends upon the decision of the
employer
e. I don’t know
b. Definitely not

34. • 9. In cases of termination with authorized cause such as
operational loss, redundancy, retrenchment and the like,
due process involves the following EXCEPT:
• a. Serving notice to the employee at least 30 days prior to
the date of dismissal
• b. Serving a similar notice of the employee to the
Department of Labor and Employment within the same
period of time.
• c. Payment of a separation pay in the amount required by
law.
• d. Serving notice to the employee immediately after the
investigation and approval by DOLE.