High court explains ‘strained relations’ in labor

The Supreme Court has clarified “the doctrine of strained relations” between employers and their workers in labor cases and when such may merit the payment of separation pay in lieu of reinstating an employee.

In a resolution recently made available online, the court made the clarification in a case where it denied the petition filed by a plumber, Daniel Candelaria against his employer, air conditioning and industrial ventilation firm Kalayaan Engineering Co. Inc. (KECI).

The SC’S Second Division upheld a Court of Appeals ruling, saying the latter did not err in directing Candelaria’s reinstatement to his former position “without back wages, there being neither dismissal nor abandonment” and deleting the award of separation pay of P59,940 by the National Labor Relations Commission.

The SC said under the doctrine of strained relations, the payment of separation pay is considered an alternative to reinstatement only when the latter option is no longer desirable or viable.

“(T)he doctrine of strained relations should not be used recklessly or applied loosely nor be based on impression alone. It cannot be applied indiscriminately,” the court said.

“Strained relations must be demonstrated as a fact. It must be adequately supported by substantial evidence showing that the relationship between the employer and the employee is indeed strained” the court added, noting that in Candelaria’s case, there was neither a dismissal by the employer nor an abandonment by the employee.

Candelaria had been a project employee in KECI until 2018 when he was asked to reapply following his transfer to another project of the firm in Laguna. Candelaria claimed that he need not reapply because he had been a regular employee continuously for nine years. He then filed a complaint for illegal dismissal.

The employer, for its part, said Candelaria’s employment was co-terminus with the project and when the last project neared completion and his services were no longer needed, he was transferred to its other construction project in Laguna but the latter went on leave without informing KECI.

The SC said under the present circumstances, the CA’s directive ordering KECI to accept Candelaria to his former position without payment of back wages and deleting the award of separation pay is proper.