Letran Calamba Faculty and Employees Association v.

NLRC and Colegio San Juan de

Letran Calamba (2008)

Facts:

Petitioner filed with the Arbitration Br. of the NLRC a Complaint against CSJL for
monetary claims due its members alleging:
o In computing the 13th month pay of its academic personnel, the school does
not include as basis their compensation for overloads Only takes into
account the pay the faculty receive for their teaching load not exceeding 18
units. The teaching overloads are rendered within 8hrs a day.
o Among other claims, and that the school has refused to pay without
justifiable reasons despite repeated demands.
Position papers were filed.
Prior to the filing of the above complaint, petitioner filed a separate complaints
against the respondent for money claims.
Also, pending resolution in the NLRC, the school filed a petition to declare as illegal a
strike staged by petitioner in 1994.
The 3 cases were consolidated.
LA: dismissed both complaints.
NLRC: affirmed LA. MR also denied.
CA: dismissed pa rin.

Issue + Ruling:

WON the pay of the faculty members for teaching overloads should be included as basis in
the computation of their 13th month. NO.

Petitioners contention:
o Under the 13th Month Pay Law, the basic pay of an employee includes
remunerations or earnings paid by his employer for services rendered, and
that excluded therefrom are the cash equivalents of unused VLs, SLs, OT,
premium, night diff, holiday pay, and COLA.
o They contend that since the pay for excess loads does not fall under any of
the enumerated exclusions, and considering that the said overloads are being
performed within the normal working period of 8 hrs a day, it only follows
that the overloads should be included.
o Also contended that the DOLE Order relied upon by the LA and NLRC cannot
be applied to this case because such was issued long after the
commencement of petitioners complaints for money claims, and that what
should be applied was the prevailing rule at the time of the commencement
of petitioners complaints.
Respondents contention:
o The DOLE Order must be applied as it is an administrative regulation which
interprets the 13-Month Pay Law, and is then mandatory for the LA and NLRC
to apply to the present case.
o The DOLE issued an opinion saying that remunerations for teaching in excess
of the regular load, which includes overload pay for work performed within
 an 8-hr work day, may not be included as part of the basic salary in the
computation of the 13th month pay.
o Also, that prior to the DOLE Order, the prevailing rule is to exclude excess
teaching load, which is akin to OT, in the computation of a teachers basic
salary.
Court if confronted with different interpretations:
o Opinion of Bureau of Working Conditions of the DOLE: If overload is
performed within a teachers normal 8-hr work per day, the remuneration
that the teacher will get from the additional teaching load will form part of
the basic wage.
o Explanatory Bulletin on the Inclusion of Teachers Overload: Affirmed the
above-stated Opinion.
o Opinion of Legal Services Department of DOLE: Remunerations for teaching in
excess of the regular load shall be excluded in the computation of 13-month
pay, unless, by school policy, the same are considered as part of the basic
salary. (ITO GINAMIT NG LA AND NRLC)
o The immediately preceding Opinion was used by the SC thus stating that
the GR is administrative rulings and circulars interpreting laws shall not be
given retroactive effect.
o Nevertheless, these are considered at best advisory as it is the courts that
finally determine what the law means.
o In this case, while the DOLE Order may not be applicable, the SC finds that
overload pay should be excluded from the computation of 13-month pay.
What is included and excluded in the basic salary:
o Basic salary is used as the basis in determining the 13th month pay. Any
compensations or remuneration deemed not part of the basic pay is excluded
as basis in the computation of the mandatory bonus.
o The ff compensations not deemed part of the basic salary:
COLA;
Profit sharing payments;
All allowances and monetary benefits not considered or integrated as
part of the regular basic salary of the employee.
OT Pay, earnings and other remunerations.
In the same manner that payment for OT work and work performed during special
holidays is considered compensation apart and distinct from an employees regular
wage or basic salary, an overload pay, may not be considered as part of the teachers
regular pay or basic salary, because it is being paid for additional work performed in
excess of the regular teaching load.