LUNA vs. ALLADO CONSTRUCTION CO., INC.

G.R. No. 175251

30 May 2011
Petition for review on certiorari of a CA decision & resolution
J. Leonardo-De Castro
F: o Petitioner Rodolfo Luna filed a complaint before the Executive Labor Arbiter against respondent
company, alleging that he was the latter’s employee, having been a party of the company’s pool
of personnel.
o He alleged that he continuously rendered services as a warehouseman & timekeeper in
respondent’s construction projects;
o That he was given a travel order to proceed to the main office in Davao City for
reassignment; but upon arrival, was told to sign several sets of “Contract of Project
Employment;”
o When he refused, he was no longer given a reassignment or any other work.

o Respondents alleged that petitioner Luna applied for a LOA, which was granted. Upon its expiry,
he was advised to report to the company’s project but refused to report for work.

o LA: dismissed the complaint for illegal dismissal, but ordered respondent to pay P18,000 as financial
assistance. Respondents appealed questioning the validity of the grant of financial assistance.

o NLRC: reversed & declared respondents guilty of illegal dismissal & to pay petitioner 1-month salary
for every year of service, computed at P170.00 per day, & full backwages up to the finality of the
decision. Respondents appealed.

o CA: granted & reinstated LA decision but deleted the award of financial assistance. It also held
that NLRC committed grave abuse of discretion when it ruled on the issue of illegal dismissal.
Petitioner filed an MR, which was denied.
I: Whether or not the NLRC, in the exercise of its inherent powers, review issues not brought during the
appeal.
H: NO.
R: o Section 4(c), Rule VI of the 2002 Rules of Procedure of the NLRC, which was in effect at the time
respondents appealed the LA’s decision, expressly provided that, on appeal, the NLRC shall limit
itself only to the specific issues that were elevated for review.

o In the case at bar, the NLRC evidently went against its own rules of procedure when it passed
upon the issue of illegal dismissal although the question raised by respondents in their appeal was
concerned solely with the legality of the LA’s award of financial assistance despite the finding
that petitioner was lawfully terminated.

o To reiterate, the clear import of the aforementioned procedural rule is that the NLRC shall, in
cases of perfected appeals, limit itself to reviewing those issues which are raised on appeal. As a
consequence thereof, any other issues which were not included in the appeal shall become final
and executory.

o Article 218(c) of the Labor Code grants the NLRC the authority to “correct, amend or waive any
error, defect or irregularity whether in substance or in form” in the exercise of its appellate
jurisdiction. However, a careful perusal of the body of jurisprudence wherein we upheld the
validity of the NLRC’s invocation of that prerogative would reveal that the said cases involved
factual issues and circumstances materially dissimilar to the case at bar.
o it is already settled in jurisprudence that the NLRC may not rely on Article 218(c) of the Labor
Code as basis for its act of reviewing an entire case above and beyond the sole legal question
raised.
o It was incorrect for the NLRC to conclude that doubt exists between the evidence of both
parties, thus, necessitating a ruling in favor of petitioner, because a careful examination of the
records of this case would reveal that there was no adequate evidentiary support for petitioner’s
purported cause of action – actual illegal dismissal.