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CORAZON C. SIM v. NLRC

FACTS:

Corazon Sim (petitioner) filed a case for illegal dismissal against Equitable PCI-Bank (respondent), claiming that she was initially employed by the respondent in 1990 as an Italian Remittance Marketing Consultant and was eventually promoted to Manager. In September 1999, she received a letter of dismissal from Remegio David, the Senior Officer and Managing Director of PCIB-Europe, citing loss of trust and confidence due to alleged mismanagement and misappropriation of funds. The respondent denied any employer-employee relationship and sought the dismissal of the complaint. The Labor Arbiter dismissed the case for lack of jurisdiction or merit, stating that the labor relations system in the Philippines has no extraterritorial jurisdiction and that the law governing the relationship should be the law of the place where the employment was executed and the place of work or assignment. The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter's decision, and the Court of Appeals (CA) dismissed petitioner's petition for certiorari for failure to file a motion for reconsideration. Petitioner filed a motion for reconsideration with the CA, but it was denied. Petitioner then filed a petition for review before the Supreme Court.

ISSUES:

  1. Whether the Labor Arbiter has jurisdiction over the case.

  2. Whether the National Labor Relations Commission (NLRC) correctly dismissed the petitioner's appeal.

  3. Whether the petitioner should have filed a motion for reconsideration with the NLRC before seeking certiorari from the Court of Appeals (CA).

  4. Whether a motion for reconsideration is necessary in filing a petition for certiorari under Rule 65 of the Rules of Court.

RULING:

  1. The Labor Arbiter does not have jurisdiction over the case due to lack of extra-territorial jurisdiction of Philippine labor laws.

  2. The NLRC correctly dismissed the petitioner's appeal.

  3. The petitioner should have filed a motion for reconsideration with the NLRC before seeking certiorari from the CA.

  4. A motion for reconsideration is necessary in filing a petition for certiorari under Rule 65 of the Rules of Court unless any of the exceptions apply.

PRINCIPLES:

  • The labor relations system in the Philippines has no extra-territorial jurisdiction and is limited to the relationship between labor and capital within the Philippines.

  • The basic premise for dismissal on the ground of loss of confidence is that the employee concerned holds a position of trust and confidence.

  • Filing a motion for reconsideration is an indispensable condition to the filing of a special civil action for certiorari, unless one of the exceptions applies.

  • A writ of certiorari is a prerogative writ, never demandable as a matter of right, and is only issued in the exercise of judicial discretion.