The National Labor Relations Commission (NLRC) has upheld a settlement agreement reinstating Maria Kristine Mandigma as chief executive of Vibal Group Inc., rejecting a bid by majority shareholders to void the deal.

In a 6 April decision, the NLRC Fifth Division denied an appeal by the publishing company and affirmed a 29 January ruling by Labor Arbiter Raul M. Luna. The decision validates a compromise agreement signed 9 September 2025, between Mandigma and Gaspar "Gus" Vibal, who was then serves as the company's chairman and president.

Under the terms of the settlement reached during mandatory mediation, Vibal Group must reinstate Mandigma to her former post and pay P1 million in back wages.

Gus Vibal said the ruling vindicates his position that the settlement was a legitimate act of corporate governance.

"I signed that agreement as the chairman and the president of this company," Vibal said. "I was impleaded in the case. I appeared before the labor arbiter. The NLRC has now confirmed what was obvious from the start — I had the authority, and the agreement stands."

In its ruling, the commission applied the doctrine of apparent authority. The legal principle holds a corporation responsible for the acts of an officer who represents themselves as having the power to act, provided the other party relies on that representation in good faith.

The commission cited that at the time of the signing, Gus Vibal was the installed chairman and president and had appeared personally in his official capacity.

The board's subsequent move to remove him from office occurred only after the agreement was executed.

"Nothing on record indicates that the corporation had previously restricted or publicly repudiated Gaspar's authority as president to handle and settle labor disputes," the commission said.

The company’s majority shareholders — sisters Nila Vibal Mata, Aida Vibal Gutierrez, and Stella Vibal Lawson — had argued the deal was void because the board never authorized Gus Vibal to sign it. They cited company bylaws requiring express board approval for such contracts.

The NLRC rejected that defense, stating that allowing corporations to evade obligations through "undisclosed internal limitations" would be unfair to employees acting in good faith.

Mandigma characterized the legal win as a victory for the 73-year-old company rather than a personal one.

"The only thing I have ever wanted is to go back and do my job and to make sure the people responsible for what happened here are held accountable," Mandigma said.

The ruling is the second NLRC decision in Mandigma’s favor.

While a separate reinstatement order was enforced by a Department of Labor and Employment sheriff in March 2026, the majority shareholders reportedly resisted that action.

The Vibal sisters are currently facing additional legal challenges, including a syndicated estafa complaint before the Department of Justice and an enforcement action before the Securities and Exchange Commission.