Unreasonable change of mind

Can employees who already signed waivers and quitclaims later on still file a complaint for illegal dismissal? This is the issue raised in this case of Lina and her ten other co-employees (Lina’s group) in the machine and maintenance operations of a multi-national tire manufacturing company (GMC).

Sometime in 2004, on account of lingering financial constraints, GMC gave all its employees the option to voluntarily resign from the company. Several employees, including Lina’s group, decided to avail of the voluntary resignation option. Thus, on December 29, 2004, GMC paid Lina’s group their separation pay including the 13th month pay for 2002 and 2003 which they had already received. Then on January 3, 2005, Lina’s group voluntarily executed their respective waivers and quitclaims.

But the very next day, Lina and her co-employees filed complaints for illegal dismissal before the NLRC with a prayer for payment of their full monetary benefits. While they admitted that they were not coerced to sign the quitclaims, they maintained that they were deceived into signing them when they learned that they were not paid their full monetary benefits and after discovering that the company did not really close shop, but instead only assumed a different company name.

On November 22, 2005, the Labor Arbiter (LA) rendered a decision declaring that there was no illegal dismissal since the quitclaims were voluntarily signed without coercion. But the LA held that GMC was still liable to Lina’s group for their unpaid Emergency Cost of Living Allowance, 13th month pay and Service incentive leave pay.

On appeal the NLRC itself set aside the LA’s decision regarding the monetary claims of Lina’s group. The NLRC said that Lina’s group had not shown that they signed the deeds of waiver and quitclaims involuntarily, without understanding the implications and consequences thereof. So to allow them to recover their monetary claims would render nugatory the legal consequences of a valid quitclaim which set aside all other claims that employees may be entitled to. Was the NLRC correct?

Yes. Quitclaims and waivers executed by employees are valid if employer is able to prove that (1) the employees executed the deed voluntarily; (2) there is no fraud or deceit on the part of any parties; (3) the consideration of the quitclaim is credible and reasonable; and (4) it is not contrary to law, public order, public policy, morals or good customs, or prejudicial to third persons with a right recognized by law.

In this case, Lina’s group executed the quitclaims absent any coercion from GMC following their voluntary resignation from the company. The contents of the quitclaim documents signed by them are simple, clear and unequivocal. There is no proof to show that they did not know they were relinquishing their right short of what they had expected to receive and contrary to what they have declared. At the time they signed the quitclaims, they honestly believed that the amounts received by them were fair and reasonable settlements of the amounts they would have received had they refused to voluntarily resign from GMC. Indeed the considerations received by Lina’s group do not appear to be grossly inadequate vis a vis what they should receive in full. It even included the 13th month pay for the years 2002 and 2003 which they already received prior to the filing of their complaints.

Their claim that they were deceived because GMC did not really terminate its business was not proven and was based only on their surmises and speculations which can never be used as a valid and legal ground to repudiate their quitclaims (Goodrich Manufacturing Corp. etc vs. Ativo et. al. G.R. 188002, February 1, 2010).

Note: Books containing compilation of my articles on Labor Law and Criminal Law (Vols. I and II) are now available. Call tel. 7249445. –Jose C. Sison (The Philippine Star)