Dear Atty. Kathy,
I filed an illegal dismissal complaint against Company X. Fortunately, I won the case before the labor courts, which directed Company X to reinstate me to my former position without loss of seniority rights and other privileges. However, Company X is claiming that due to its continuing financial distress brought about by the Covid-19 pandemic, it underwent downsizing and organizational restructuring in 2020, as a result of which, my former position is no longer available. Company X is also claiming that there are no other available equivalent positions. Can Company X still be ordered to reinstate me? If no, do I have any other remedy?
Theodore
Dear Theodore,
According to jurisprudence (Traveloka Philippines Inc., et al. vs Poncevic Capino Ceballos Jr. (GR 254697, 14 February 2022), reinstatement means restoration to a state or condition from which one had been removed or separated. The person reinstated assumes the position he had occupied prior to his dismissal. Reinstatement presupposes that the previous position from which one had been removed still exists, or that there is an unfilled position which is substantially equivalent or of similar nature as the one previously occupied by the employee. In the event that reinstatement is no longer possible, separation pay is awarded to the employee. The separation pay is equivalent to one month salary for every year of service, with a fraction of at least six months to be considered as one whole year, to be computed from the date of employment up to finality of the resolution or decision of the court.
Based on your narration, subject to proof, it appears that your former position is no longer existing in Company X, due to the downsizing and organizational restructuring it underwent, as a result of its financial distress brought about by the Covid-19 pandemic. Also subject to proof, it appears that there are no other available equivalent positions to which Company X can reinstate you. Since your reinstatement is no longer viable, as ruled by the Supreme Court in the Traveloka case, then the payment of separation pay in lieu of reinstatement is warranted.
Atty. Kathy Larios
