The document discusses a case between PAL and PALEA regarding the rights and privileges of four employees who were dismissed but later reinstated. The CIR ruled that the employees were entitled to bonuses, transportation allowances, sick leave, and passes during their period of layoff except for certain qualifications.
The document discusses a case between PAL and PALEA regarding the rights and privileges of four employees who were dismissed but later reinstated. The CIR ruled that the employees were entitled to bonuses, transportation allowances, sick leave, and passes during their period of layoff except for certain qualifications.
The document discusses a case between PAL and PALEA regarding the rights and privileges of four employees who were dismissed but later reinstated. The CIR ruled that the employees were entitled to bonuses, transportation allowances, sick leave, and passes during their period of layoff except for certain qualifications.
The document discusses a case between PAL and PALEA regarding the rights and privileges of four employees who were dismissed but later reinstated. The CIR ruled that the employees were entitled to bonuses, transportation allowances, sick leave, and passes during their period of layoff except for certain qualifications.
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PAL vs PALEA (1967)
Employees who ceased to work but are still deemed employees
FACTS: 4 Employees (members of PALEA) were dismissed by PAL in May 1950. In 1954, CIR en banc ordered the reinstatement of the employees to their former or equivalent position in the company with back wages from their date of reinstatement without prejudice to their seniority or other rights and privileges. On Nov 1960, PALEA moved for the execution of the CIR as regards the other rights and privileges specifically to: (1) Christmas bonus from 1950 to 1958; (2) accumulated sick leave; (3)transportation allowance during lay-off period; and (4) accumulated free trip passes, both domestic and international. By an order dated October 8, 1962, the CIR granted this motion, except as regards the sick leave of Onofre Grio and Bernardino Abarrientos, and the transportation allowance, which were denied. PAL maintains that the CIR has erred in acting as it did, because: (1) the aforementioned privileges were not specifically mentioned in the CIR resolution of July 13, 1954; (2) the order of the CIR dated October8, 1962, had, allegedly, the effect of amending said resolution; and (3) the clause therein "without prejudice to their seniority or other rights and privileges" should be construed prospectively, not retroactively. ISSUE: WON the reinstated employees were entitled to the other rights and privileges during the period of their lay-off HELD: Yes. CIR treated said employees as if they had not been absent from work and had been uninterruptedly working during the lay-off period. As a consequence, the employees involved in the case at bar are entitled to the Christmas bonus that PAL had given to all of its employees during said period, for said bonus, having been paid regularly, has become part of the compensation of the employees. Said employees are, likewise, entitled to transportation allowance and the corresponding sick leave privileges. These sick leave privileges are subject, however, to the following qualifications, namely: (1) that the accumulated sick leave cannot exceed 140 days, pursuant to the collective bargaining agreement between the PAL and the PALEA, effective in 1959; and (2) that, pursuant to the same agreement, which denies sick leave privileges to retired employees, Onofre Grio and Bernardino Abarrientos, who have retired, are not entitled to said privileges. The PAL's appeal as regards the free trip passes is, however, well taken, for the employees had no absolute right thereto, even if they had actually rendered services during the lay-off period. The free trip passes were given, neither automatically, nor indiscriminately. The employees had to apply therefore and their applications were subject PAL's approval.