Abbott Laboratories vs. Alcaraz
Abbott Laboratories vs. Alcaraz
* mistaken notion: it is not the probationary employee’s job description but the
ABBOTT LABORATORIES, PHILIPPINES, CECILLE A. TERRIBLE, adequate performance of his duties and responsibilities which constitutes the
EDWIN D. FEIST, MARIA OLIVIA T. YABUTMISA, TERESITA C. inherent and implied standard for regularization. To echo the fundamental point
BERNARDO, and ALLAN G. ALMAZAR, petitioners, vs. PEARLIE ANN F. of the Decision, if the probationary employee had been fully apprised by his
ALCARAZ, respondent. employer of these duties and responsibilities, then basic knowledge and common
sense dictate that he must adequately perform the same, else he fails to pass the
Labor Law; Probationary Employees; Termination of Employment; As the probationary trial and may therefore be subject to termination. The determination
Supreme Court observed, an employee’s failure to perform the duties and of “adequate performance” is not, in all cases, measurable by quantitative
responsibilities which have been clearly made known to him constitutes a specification, such as that of a sales quota in Alcaraz’s example. It is also hinged
justifiable basis for a probationary employee’s non-regularization.—A careful on the qualitative assessment of the employee’s work; by its nature, this largely
perusal of the questioned Decision will reveal that the Court actually resolved the rests on the reasonable exercise of the employer’s management prerogative.
controversy under the above-stated framework of analysis. Essentially, the Court While in
found the CA to have committed an error in holding that no grave abuse of 27some instances the standards used in measuring the quality of work may
discretion can be ascribed to the NLRC since the latter arbitrarily disregarded the be conveyed — such as workers who construct tangible products which follow
legal implication of the attendant circumstances in this case which should have particular metrics, not all standards of quality measurement may be reducible to
simply resulted in the finding that Alcaraz was apprised of the performance hard figures or are readily articulable in specific pre-engagement descriptions. A
standards for her regularization and hence, was properly a probationary good example would be the case of probationary employees whose tasks involve
employee. As the Court observed, an employee’s failure to perform the duties the application of discretion and intellect, such as — to name a few — lawyers,
and responsibilities which have been clearly made known to him artists, and journalists. In these kinds of occupation, the best that the employer
_______________ can do at the time of engagement is to inform the probationary employee of his
* EN BANC. duties and responsibilities and to orient him on how to properly proceed with the
26constitutes a justifiable basis for a probationary employee’s non- same. The employer cannot bear out in exacting detail at the beginning of the
regularization. engagement what he deems as “quality work” especially since the probationary
Remedial Law; Civil Procedure; Appeals; Petition for Review on employee has yet to submit the required output. In the ultimate analysis, the
Certiorari; The Supreme Court’s analysis of the National Labor Relations communication of performance standards should be perceived within the context
Commission (NLRC’s) interpretation of the environmental principles and of the nature of the probationary employee’s duties and responsibilities.
concepts of labor law is not completely prohibited in —as it is complementary to Same; Same; Same; Managerial Employees; Given that a managerial role
— a Rule 45 review of labor cases.—At this juncture, it bears exposition that essentially connotes an exercise of discretion, the quality of effective
while NLRC decisions are, by their nature, final and executory and, hence, not management can only be determined through subsequent assessment.—It is
subject to appellate review, the Court is not precluded from considering other hardly possible for the employer, at the time of the employee’s engagement, to
questions of law aside from the CA’s finding on the NLRC’s grave abuse of map into technical indicators, or convey in precise detail the quality standards by
discretion. While the focal point of analysis revolves on this issue, the Court may which the latter should effectively manage the department. Factors which gauge
deal with ancillary issues — such as, in this case, the question of how a the ability of the managerial employee to either deal with his subordinates (e.g.,
probationary employee is deemed to have been informed of the standards of his how to spur their performance, or command respect and obedience from them),
regularization — if only to determine if the concepts and principles of labor law or to organize office policies, are hardly conveyable at the outset of the
were correctly applied or misapplied by the NLRC in its decision. In other engagement since the employee has yet to be immersed into the work itself.
words, the Court’s analysis of the NLRC’s interpretation of the environmental Given that a managerial role essentially connotes an exercise of discretion, the
principles and concepts of labor law is not completely prohibited in — as it is quality of effective management can only be determined through subsequent
complementary to — a Rule 45 review of labor cases. assessment. While at the time of engagement, reason dictates that the employer
Labor Law; Probationary Employees; Termination of Employment; If the can only inform the probationary managerial employee of his duties and
probationary employee had been fully apprised by his employer of these duties responsibilities as such and provide the allowable parameters for the same.
and responsibilities, then basic knowledge and common sense dictate that he Verily, as stated in the Decision, the adequate performance of such duties and
must adequately perform the same, else he fails to pass the probationary trial responsibilities is, by and of itself, an implied standard of regularization.
and may therefore be subject to termination.—The Court must correct Alcaraz’s
Same; Same; Same; Judicial Notice; The Supreme Court takes judicial its jurisdiction, or with grave abuse of discretion amounting to lack or excess of
notice of the fact that not all employers, such as simple busi- jurisdiction.
28nesses or small-scale enterprises, have a sophisticated form of human Remedial Law; Civil Procedure; Appeals; Petition for Review on
resource management, so much so that the adoption of technical indicators as Certiorari; View that Montoya v. Transmed Manila Corporation, 597 SCRA 334
utilized through “comment cards” or “appraisal” tools should not be treated as (2009), instructs us that in a Rule 45 review (of the Court of Appeals [CA]
a prerequisite for every case of probationary engagement.—It bears mentioning decision rendered under Rule 65), the question of law that confronts the Court is
that the performance standard contemplated by law should not, in all cases, be the legal correctness of the CA decision — i.e., whether the CA correctly
contained in a specialized system of feedbacks or evaluation. The Court takes determined the presence or absence of grave abuse of discretion in the National
judicial notice of the fact that not all employers, such as simple businesses or Labor Relations Commission (NLRC) decision before it, and not on the basis of
small-scale enterprises, have a sophisticated form of human resource whether the NLRC decision on the merits of the case was correct.—Montoya v.
management, so much so that the adoption of technical indicators as utilized Transmed Manila Corporation, 597 SCRA 334 (2009), instructs us that in a Rule
through “comment cards” or “appraisal” tools should not be treated as a 45 review (of the CA decision rendered under Rule 65), the question of law that
prerequisite for every case of probationary engagement. In fact, even if a system confronts the Court is the legal correctness of the CA decision — i.e., whether
of such kind is employed and the procedures for its implementation are not the CA correctly determined the presence or absence of grave abuse of discretion
followed, once an employer determines that the probationary employee fails to in the NLRC decision before it, and not on the basis of whether the NLRC
meet the standards required for his regularization, the former is not precluded decision on the merits of the case was correct. As applied in the present
from dismissing the latter. The rule is that when a valid cause for termination case, the Court should simply determine the legal correctness of the CA’s
exists, the procedural infirmity attending the termination only warrants the finding that the NLRC ruling had basis in fact and law, not the question of
payment of nominal damages. This was the principle laid down in the landmark whether it was or was not correct.
cases of Agabon v. NLRC, 442 SCRA 573 (2004), (Agabon) and Jaka Food Same; Special Civil Actions; Certiorari; View that certiorari is different
Processing Corporation v. Pacot, 454 SCRA 119 (2005), (Jaka). In the assailed from appeal.—Certiorari is different from appeal. In an appellate proceeding,
Decision, the Court actually extended the application of the Agabon and Jaka the original suit is continued on appeal. In a certiorari proceeding, the certiorari
rulings to breaches of company procedure, notwithstanding the employer’s petition is an original and independent action that was not part of the trial that
compliance with the statutory requirements under the Labor Code. Hence, had resulted in the rendition of the judgment or order complained of. “[T]he
although Abbott did not comply with its own termination procedure, its non- higher court uses its original jurisdiction in accordance with its power of control
compliance thereof would not detract from the finding that there subsists a valid and supervision over the proceedings of lower courts.”
cause to terminate Alcaraz’s employment. Abbott, however, was penalized for its 30
contractual breach and thereby ordered to pay nominal damages. Same; Same; Same; View that error of jurisdiction is one where the act
complained of was issued by the court without or in excess of jurisdiction. This
Brion, J., Dissenting Opinion: is the province of the writ of certiorari.—Error of jurisdiction is one where the
Labor Law; Judgments; Final Judgments; Certiorari; View that when a act complained of was issued by the court without or in excess of jurisdiction.
labor case reaches the judicial system, courts must proceed based on two basic This is the province of the writ of certiorari. The writ of certiorari will not be
premises: first, the ruling of the National Labor Relations Commission (NLRC) issued to cure errors in the appreciation of the evidence of the parties, and its
is declared by law to be a final ruling that is no longer appealable; and second, conclusions anchored on the said findings and its conclusions of law. If the
the only remedy left to set aside or modify this ruling is through a Rule 65 review CA finds that the NLRC committed no error of jurisdiction, the Court’s task is to
by the Court of Appeals (CA) that is narrowly grounded on jurisdictional errors only determine the legal correctness of this CA finding — and not to supplant
— i.e., whether the NLRC acted without or in excess of its jurisdiction, the NLRC and the CA’s conclusion with what the Court thinks should be the
29or with grave abuse of discretion amounting to lack or excess of correct interpretation of the law, in utter disregard of the different levels of
jurisdiction.—When a labor case reaches the judicial system, courts must review the case underwent. If the Court will undertake a review of the “ancillary
proceed based on two basic premises: first, the ruling of the National Labor issues” suggested by the ponencia, the Court will in effect create a right of
Relations Commission (NLRC) is declared by law to be a final ruling that is no appeal from the NLRC ruling when the law confers none.
longer appealable; and second, the only remedy left to set aside or modify this Same; Same; Same; View that a Rule 65 petition requires the presence of
ruling is through a Rule 65 review by the CA that is narrowly grounded grave abuse of discretion — and not mere abuse of discretion — before courts
on jurisdictional errors — i.e., whether the NLRC acted without or in excess of may issue the corrective writ of certiorari in labor cases not only because the
ruling under review is already final; but, more importantly, because the probationary basis; 2. The employer must convey to the probationary employee
appreciation of the evidence and its legal effects carries with it discretion within the reasonable standards to qualify for regularization; 3. The probationary status
the bounds of the law.—Too, a Rule 65 petition requires the presence of grave of the newly-hired employee must be communicated to him prior to the
abuse of discretion — and not mere abuse of discretion — before courts may commencement of his employment; 4. The employer must convey these
issue the corrective writ of certiorari in labor cases not only because the ruling reasonable standards at the time of the probationary employee’s engagement; 5.
under review is already final; but, more importantly, because the appreciation of The employer must evaluate the performance of the probationary employee vis
the evidence and its legal effects carries with it discretion within the bounds of the duly communicated reasonable standards; and 6.
the law. The discretion granted to the NLRC to affirm or reverse the LA, on one 32The employee fails to comply with these reasonable standards before
hand, and the discretion granted to the CA to determine whether grave abuse of the completion of the probationary period.
discretion attended the NLRC’s ruling, on the other hand, are discretions within Same; Same; Security of Tenure; View that Article 281 of the Labor Code
legal bounds that the Court cannot supplant at will, much less via mere merely proceeded from the premise that security of tenure is not merely a
assumption. statutory but a constitutionally guaranteed right; The law employed a qualitative
Labor Law; Termination of Employment; Security of Tenure; View that an and quantitative measurement of one’s performance by requiring a probationary
employer cannot terminate his employee’s employment (whether actual or employee’s performance to be measured on the basis of reasonable standards.—
constructive) or otherwise suspend him without any just or authorized cause and In employing its present terms, Article 281 of the Labor Code merely proceeded
without complying with the due process requirements mandated by law.—The from the premise that security of tenure is not merely a statutory but a
Constitution decrees constitutionally guaranteed right. To consider an employee’s regularization on
31that all workers are entitled to security of tenure. This means that an the overly broad basis of “adequacy of performance” alone would practically
employer cannot terminate his employee’s employment (whether actual or negate the constitutional guarantee. Rather, the law employed a qualitative and
constructive) or otherwise suspend him without any just or authorized cause and quantitative measurement of one’s performance by requiring a probationary
without complying with the due process requirements mandated by law. This employee’s performance to be measured on the basis of reasonable standards.
constitutional and statutory guarantee seeks, in the ultimate, to prevent the These standards or measurement of performance serve as a statutory limitation to
capricious exercise by the employer of his power to dismiss. Aside from the just the employer’s prerogative to dismiss an employee, consistent with the
and authorized causes provided by law, the law also allows the employer to constitutional right to security of tenure.
dismiss a probationary employee if he “fails to qualify as a regular employee in Same; Same; View that the probationary period of employment is not
accordance with reasonable standards made known by the employer to the exclusively for the benefit of the employer but of both the employer and the
employee at the time of his engagement.” The inclusion of this phrase in Article employee.—The reason for requiring the existence of reasonable standards that
281 of the Labor Code and the manner by which it is phrased indicate that: first, are duly communicated to the employee is not hard to discern. The
a probationary employment is not a default mode of an employment contract; probationary period of employment is not exclusively for the benefit of the
and second, inadequate performance of one’s duties and failure to comply with employer but of both the employer and the employee: on one hand, the
reasonable standards cannot actually mean the same thing. employer observes the fitness, propriety and efficiency of a probationary
Same; Probationary Employees; View that regardless of the kind of employee to ascertain whether she is qualified for permanent employment; the
employment arrangement between the parties, an employer has the right to put a probationary employee, on the other hand, seeks to prove to the employer that
newly-hired employee under a probationary period or it may choose not to do she has the qualifications to meet the reasonable standards duly communicated
so, as part and parcel of its power to hire.—Regardless of the kind of by the employer for permanent employment. In the same manner that the
employment arrangement between the parties, an employer has the right to put a probationary period of employment (or trial period) is meant to serve the
newly-hired employee under a probationary period or it may choose not to do so, interests of both the employer and the employee, the requirement of reasonable
as part and parcel of its power to hire. If the employer opts for the latter, standards seeks to protect the rights of both the employer (to his management
however, he may not easily sever the relationship without proving the existence prerogative) and the employee (since his employment is in a sense a property
of a just or authorized cause and without complying with procedural due process. right).
If the employer opts to hire an employee on a probationary basis, valid severance 33
of the employer-employee relationship — outside of the just and authorized Same; Same; View that based on Article 281 of the Labor Code and
causes — presupposes that the employer had accomplished the following things: Section 6(d) of the Implementing Rules of Book VI, Rule I of the Labor Code, a
1. The employer must communicate to the employee that he is being hired on a valid probationary employment presupposes the concurrence of two
requirements; Failing in one or both, the employee, even if initially hired as a this manner, compliance with the twin requirements of a valid probationary
probationary employee, should be considered a regular employee.—Based on employment may require the employer to lay down a quantitative or qualitative
Article 281 of the Labor Code and Section 6(d) of the Implementing Rules of standard (or both) in measuring the performance of a probationary employee.
Book VI, Rule I of the Labor Code, a valid probationary employment Same; Same; Regular Employees; Moral Damages; Exemplary Damages;
presupposes the concurrence of two requirements: First, the employer shall View that since Abbott failed to comply with the requisites for valid probationary
make known to the employee the reasonable standard (performance standard) employment, then Alcaraz should be deemed a regular employee who can be
that the probationary employee must comply with to qualify as a regular removed only with just or authorized causes; The abrupt and oppressive manner
employee. Second, the employer shall inform the employee of the applicable by which the petitioners dismissed Alcaraz from her employment justified the
performance standard at the time of his/her engagement. Failing in one or both, award of moral and exemplary damages and attorney’s fees.—Since Abbott
the employee, even if initially hired as a probationary employee, should be failed to comply with the requisites for valid probationary employment, then
considered a regular employee. Alcaraz should be deemed a regular employee who can be removed only with
Same; Same; Performance Standards; View that performance standards just or authorized causes. In the present case, the petitioners failed to show that
are the specific expectations of the employer on how the probationary employee Alcaraz’s dismissal was for a valid cause. The petitioners also failed to comply
should perform.—For emphasis, performance standards are the specific with the two-written notice requirement under Section 2, Rule XXIII, Book V of
expectations of the employer on how the probationary employee should perform. the Omnibus Rules Implementing the Labor Code, in violation of Alcaraz’s
These specific expectations cannot be equated with the duties and responsibilities procedural due process rights under the law. In addition, the abrupt and
attached to the position. While the “specific expectations” inhere in an employer oppressive manner by which the petitioners dismissed Alcaraz from her
and, accordingly, vary from one employer to another, the duties and employment justified the award of moral and exemplary damages and attorney’s
responsibilities inhere in the peculiarities of the particular job itself. Due to the fees.
difference between the two, proof of the existence of one does not necessarily
prove the existence of the other and vice versa. MOTION FOR RECONSIDERATION of a decision of the Supreme Court.
Same; Same; Same; View that the communication of a performance 35
standard is a requirement imposed by law — on top of the practical requirement The facts are stated in the resolution of the Court.
of describing the job and communicating, expressly or impliedly, this description Laguesma, Magsalin, Consulta and Gastardo for petitioners.
to the employee — unless the nature of the job falls within the exceptions.— Dionela, Jimenez, Baroque, So & Salazar for respondent.
While all jobs, regardless of their nature, would necessitate a description of what RESOLUTION
they entail, not all jobs would legally require the employers to set and PERLAS-BERNABE, J.:
communicate a performance standard applicable to them, as enunciated under the For resolution is respondent Pearlie Ann Alcaraz’s (Alcaraz) Motion for
exceptions. The legal requirement for the employer to lay down and Reconsideration dated August 23, 2013 of the Court’s Decision dated July 23,
communicate the performance standards to the employee at the time of his 2013 (Decision).1
engagement arises from the nature of the probationary employment as a trial At the outset, there appears to be no substantial argument in the said motion
period. A trial period presupposes the existence of a standard against which the sufficient for the Court to depart from the pronouncements made in the initial
probationary em- ruling. But if only to address Alcaraz’s novel assertions, and to so placate any
34ployee’s performance would be tried and measured. Accordingly, the doubt or misconception in the resolution of this case, the Court proceeds to shed
communication of a performance standard is a requirement imposed by law — light on the matters indicated below.
on top of the practical requirement of describing the job and communicating, A. Manner of review.
expressly or impliedly, this description to the employee — unless the nature of Alcaraz contends that the Court should not have conducted a re-weighing of
the job falls within the exceptions. evidence since a petition for review on certiorari under Rule 45 of the Rules of
Same; Same; Same; View that the more complex the job is (like that of Court (Rules) is limited to the review of questions of law. She submits that since
managerial employee) the more it becomes necessary to specify what the what was under review was a ruling of the Court of Appeals (CA) rendered via a
employer’s specific expectations are vis-à-vis the duties and responsibilities that petition for certiorari under Rule 65 of the Rules, the Court should only
the job entails.—The more complex the job is (like that of managerial employee) determine whether or not the CA properly determined that the National Labor
the more it becomes necessary to specify what the employer’s specific Relations Commission (NLRC) committed a grave abuse of discretion.
expectations are vis-à-vis the duties and responsibilities that the job entails. In The assertion does not justify the reconsideration of the assailed Decision.
_______________ Considering the foregoing incidents which were readily observable from the
1 Abbot Laboratories, Philippines v. Alcaraz, G.R. No. 192571, July 23, records, the Court reached the conclusion that the NLRC committed grave abuse
2013, 701 SCRA 682. of discretion, viz.:
[I]n holding that Alcaraz was illegally dismissed due to her status as a regular
36 and not a probationary employee, the Court finds that the NLRC committed a
A careful perusal of the questioned Decision will reveal that the Court grave abuse of discretion.
actually resolved the controversy under the abovestated framework of analysis. To elucidate, records show that the NLRC based its decision on the premise
Essentially, the Court found the CA to have committed an error in holding that that Alcaraz’s receipt of her job description and Abbott’s Code of Conduct and
no grave abuse of discretion can be ascribed to the NLRC since the latter Performance Modules was not equivalent to being actually informed of the
arbitrarily disregarded the legal implication of the attendant circumstances in this performance standards upon which she should have been evaluated on. It,
case which should have simply resulted in the finding that Alcaraz was apprised however, overlooked the legal implication of the other attendant circumstances
of the performance standards for her regularization and hence, was properly a as detailed herein which should have warranted a contrary finding that Alcaraz
probationary employee. As the Court observed, an employee’s failure to perform was indeed a probationary and not a regular employee — more particularly the
the duties and responsibilities which have been clearly made known to him fact that she was well-aware of her duties and responsibilities and that her failure
constitutes a justifiable basis for a probationary employee’s non-regularization. to adequately perform the
As detailed in the Decision, Alcaraz was well-apprised of her duties and _______________
responsibilities as well as the probationary status of her employment: 2 Id., at pp. 708-709.
(a) On June 27, 2004, [Abbott Laboratories, Philippines (Abbott)] caused
the publication in a major broadsheet newspaper of its need for a Regulatory 38same would lead to her non-regularization and eventually, her termination. 3
Affairs Manager, indicating therein the job description for as well as the duties
and responsibilities attendant to the aforesaid position; this prompted Alcaraz to Consequently, since the CA found that the NLRC did not commit grave
submit her application to Abbott on October 4, 2004; abuse of discretion and denied the certiorari petition before it, the reversal of its
(b) In Abbott’s December 7, 2004 offer sheet, it was stated that Alcaraz ruling was thus in order.
was to be employed on a probationary status; At this juncture, it bears exposition that while NLRC decisions are, by their
(c) On February 12, 2005, Alcaraz signed an employment contract which nature, final and executory4 and, hence, not subject to appellate review, 5 the
specifically stated, inter alia, that she was to be placed on probation for a period Court is not precluded from considering other questions of law aside from the
of six (6) months beginning February 15, 2005 to August 14, 2005; CA’s finding on the NLRC’s grave abuse of discretion. While the focal point of
(d) On the day Alcaraz accepted Abbott’s employment offer, Bernardo sent analysis revolves on this issue, the Court may deal with ancillary issues — such
her copies of Abbott’s organizational structure and her job description through e- as, in this case, the question of how a probationary employee is deemed to have
mail; been informed of the standards of his regularization — if only to determine if the
(e) Alcaraz was made to undergo a pre-employment orientation where concepts and principles of labor law were correctly applied or misapplied by the
[Allan G. Almazar] informed her that she had to implement Abbott’s Code of NLRC in its decision. In other words, the Court’s analysis of the NLRC’s
37Conduct and office policies on human resources and finance and that she interpretation of the environmental principles and concepts of labor law is not
would be reporting directly to [Kelly Walsh]; completely prohibited in — as it is complementary to — a Rule 45 review of
(f) Alcaraz was also required to undergo a training program as part of her labor cases.
orientation; Finally, if only to put to rest Alcaraz’s misgivings on the manner in which
(g) Alcaraz received copies of Abbott’s Code of Conduct and Performance this case was reviewed, it bears pointing out that no “factual appellate review”
Modules from [Maria Olivia T. Yabut-Misa] who explained to her the procedure was conducted by the Court in the Decision. Rather, the Court proceeded to
for evaluating the performance of probationary employees; she was further interpret the relevant rules on probationary employment as applied to settled
notified that Abbott had only one evaluation system for all of its employees; and factual findings. Besides, even on the assumption that a scrutiny of facts was
(h) Moreover, Alcaraz had previously worked for another pharmaceutical undertaken, the Court is not altogether barred from conducting the same. This
company and had admitted to have an “extensive training and background” to was explained in the case of Career Philippines Shipmanagement, Inc. v.
acquire the necessary skills for her job.2 Serna,6 wherein the Court held as follows:
_______________
3 Id., at p. 710.
4 See Article 223 of the Labor Code, as amended. management prerogative. While in some instances the standards used in
5 See St. Martin Funeral Home v. NLRC, 356 Phil. 811; 295 SCRA 494 measuring the quality of work may be conveyed — such as workers who
(1998). construct tangible products which follow particular metrics, not all standards of
6 G.R. No. 172086, December 3, 2012, 686 SCRA 676. quality measurement may be reducible to hard figures or are readily ar-
_______________
39 8 Section 2, Rule I, Book VI of the Implementing Rules of the Labor Code
Accordingly, we do not re-examine conflicting evidence, reevaluate the provides that “[i]f the termination is brought about by the x x x failure of an
credibility of witnesses, or substitute the findings of fact of the NLRC, an employee to meet the standards of the employer in case of probationary
administrative body that has expertise in its specialized field. Nor do we employment, it shall be sufficient that a written notice is served the employee,
substitute our “own judgment for that of the tribunal in determining where the within a reasonable time from the effective date of termination.” To this end, the
weight of evidence lies or what evidence is credible.” The factual findings of the Court in the assailed Decision pronounced that:
NLRC, when affirmed by the CA, are generally conclusive on this Court. Verily, basic knowledge and common sense dictate that the adequate
Nevertheless, there are exceptional cases where we, in the exercise of our performance of one’s duties is, by and of itself, an inherent and implied
discretionary appellate jurisdiction may be urged to look into factual issues standard for a probationary employee to be regularized; such is a
raised in a Rule 45 petition. For instance, when the regularization standard which need not be literally spelled out or mapped
petitioner persuasively alleges that there is insufficient or insubstantial evidence into technical indicators in every case. In this regard, it must be observed
on record to support the factual findings of the tribunal or court a quo, as Section that the assessment of adequate duty performance is in the nature of a
5, Rule 133 of the Rules of Court states in express terms that in cases filed before management prerogative which when reasonably exercised — as Abbott
administrative or quasi-judicial bodies, a fact may be deemed established only if did in this case — should be respected. This is especially true of a
supported by substantial evidence.7 (Emphasis supplied) managerial employee like Alcaraz who was tasked with the vital
B. Standards for regularization; responsibility of handling the personnel and important matters of her
conceptual under pinnings. department. (Abbot Laboratories, Philippines v. Alcaraz, supra note 1 at
Alcaraz posits that, contrary to the Court’s Decision, one’s job description pp. 709-710.)
cannot by and of itself be treated as a standard for regularization as a standard 41ticulable in specific pre-engagement descriptions. A good example would be
denotes a measure of quantity or quality. By way of example, Alcaraz cites the the case of probationary employees whose tasks involve the application of
case of a probationary salesperson and asks how does such employee achieve discretion and intellect, such as — to name a few — lawyers, artists, and
regular status if he does not know how much he needs to sell to reach the same. journalists. In these kinds of occupation, the best that the employer can do at the
The argument is untenable. time of engagement is to inform the probationary employee of his duties and
First off, the Court must correct Alcaraz’s mistaken notion: it is not the responsibilities and to orient him on how to properly proceed with the same. The
probationary employee’s job description but the adequate performance of his employer cannot bear out in exacting detail at the beginning of the engagement
duties and responsibilities which constitutes the inherent and implied standard what he deems as “quality work” especially since the probationary employee has
for regulariza- yet to submit the required output. In the ultimate analysis, the communication of
_______________ performance standards should be perceived within the context of the nature of
7 Id., at pp. 684-685. the probationary employee’s duties and responsibilities.
40tion. To echo the fundamental point of the Decision, if the probationary The same logic applies to a probationary managerial employee who is tasked
employee had been fully apprised by his employer of these duties and to supervise a particular department, as Alcaraz in this case. It is hardly possible
responsibilities, then basic knowledge and common sense dictate that he must for the employer, at the time of the employee’s engagement, to map into
adequately perform the same, else he fails to pass the probationary trial and may technical indicators, or convey in precise detail the quality standards by which
therefore be subject to termination.8 the latter should effectively manage the department. Factors which gauge the
The determination of “adequate performance” is not, in all cases, measurable ability of the managerial employee to either deal with his subordinates (e.g., how
by quantitative specification, such as that of a sales quota in Alcaraz’s example. to spur their performance, or command respect and obedience from them), or to
It is also hinged on the qualitative assessment of the employee’s work; by its organize office policies, are hardly conveyable at the outset of the engagement
nature, this largely rests on the reasonable exercise of the employer’s since the employee has yet to be immersed into the work itself. Given that a
managerial role essentially connotes an exercise of discretion, the quality of terminate Alcaraz’s employment. Abbott, however, was penalized for its
effective management can only be determined through subsequent assessment. contractual breach and thereby ordered to pay nominal damages.
While at the time of engagement, reason dictates that the employer can only As a final point, Alcaraz cannot take refuge in Aliling v. Feliciano12 (Aliling)
inform the probationary managerial employee of his duties and responsibilities as since the same is not squarely applicable to the case at bar. The employee
such and provide the allowable parameters for the same. Verily, as stated in the in Aliling, a sales executive, was belatedly informed of his quota requirement.
Decision, the adequate performance of such duties and responsibilities is, by and Thus, considering the nature of his position, the fact that he was not informed of
of itself, an implied standard of regularization. his sales quota at the time of his engagement changed the complexion of his
42 employment. Contrarily, the nature of Alcaraz’s duties and responsibilities as
In this relation, it bears mentioning that the performance standard Regulatory Affairs Manager negates the application of the foregoing. Records
contemplated by law should not, in all cases, be contained in a specialized show that Alcaraz was terminated because she (a) did not manage her time
system of feedbacks or evaluation. The Court takes judicial notice of the fact that effectively; (b) failed to gain the trust of her staff and to build an effective
not all employers, such as simple businesses or small-scale enterprises, have a rapport with them; (c) failed to train her staff effectively; and (d) was not able to
sophisticated form of human resource management, so much so that the adoption obtain the knowledge and ability to make sound judgments on case processing
of technical indicators as utilized through “comment cards” or “appraisal” tools and article review which were necessary for the proper performance of her
should not be treated as a prerequisite for every case of probationary duties.13 Due to the nature and variety of these managerial functions, the best that
engagement. In fact, even if a system of such kind is employed and the Abbott could have done, at the time of Alcaraz’s engagement, was to inform her
procedures for its implementation are not followed, once an employer determines of her duties and responsibilities, the adequate performance of which, to repeat,
that the probationary employee fails to meet the standards required for his is an inherent and implied standard for regularization; this is unlike the
regularization, the former is not precluded from dismissing the latter. The rule is circumstance in Aliling where a quantitative regularization standard, in the term
that when a valid cause for termination exists, the procedural infirmity attending of a sales quota, was readily articulable to the employee at the outset. Hence,
the termination only warrants the payment of nominal damages. This was the since the reasonableness of Alcaraz’s assessment clearly appears from the
principle laid down in the landmark cases of Agabon v. NLRC9 (Agabon) records, her termination was justified. Bear in mind that the quantum of proof
and Jaka Food Processing Corporation v. Pacot 10 (Jaka). In the assailed which the employer must discharge is only substantial evidence
Decision, the Court actually extended the application of the Agabon and Jaka _______________
rulings to breaches of company procedure, notwithstanding the employer’s with Article 2221 of the Civil Code.” (Abbot Laboratories, Philippines v.
compliance with the statutory requirements under the Labor Code. 11 Hence, Alcaraz, supra note 1 at pp. 715-716.)
although Abbott 12 G.R. No. 185829, April 25, 2012, 671 SCRA 186.
_______________ 13 Rollo, pp. 19-21, 78 and 80-81.
9 G.R. No. 158693, November 17, 2004, 442 SCRA 573.
10 G.R. No. 151378, March 28, 2005, 454 SCRA 119. 44which, as defined in case law, means that amount of relevant evidence as a
11 “Evidently, the sanctions imposed in both Agabon and Jaka proceed from reasonable mind might accept as adequate to support a conclusion, even if other
the necessity to deter employers from future violations of the statutory due minds, equally reasonable, might conceivably opine otherwise. 14 To the Court’s
process rights of employees. In similar regard, the Court deems it proper to apply mind, this threshold of evidence Abbott amply overcame in this case.
the same principle to the case at bar for the reason that an employer’s contractual All told, the Court hereby denies the instant motion for reconsideration and
breach of its own company procedure — albeit not statutory in source — has the thereby upholds the Decision in the main case.
parallel effect of violating the laborer’s rights. Suffice it to state, the contract is WHEREFORE, the motion for reconsideration dated August 23, 2013 of the
the law between the parties and thus, breaches of the same impel recompense to Court’s Decision dated July 23, 2013 in this case is hereby DENIED.
vindicate a right that has been violated. Consequently, while the Court is wont to SO ORDERED.
uphold the dismissal of Alcaraz because a valid cause exists, the payment of Sereno (CJ.), Carpio, Velasco, Jr., Leonardo-De Castro, Peralta,
nominal damages on account of Abbott’s contractual breach is warranted in Bersamin, Del Castillo, Abad, Villarama, Jr., Perez, Mendoza and Reyes, JJ.,
accordance concur.
Brion, J., See: My Dissent.
43did not comply with its own termination procedure, its non-compliance Leonen, J., I join the Dissent of J. Brion.
thereof would not detract from the finding that there subsists a valid cause to
DISSENTING OPINION 3 Id., at p. 9.