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Republic of the Philippines

Department of Labor and Employment

National Capital Region
Quezon City

Complainant, NLRC-NCR-12345



Respondents, unto this Honorable Labor Arbitration Office, most respectfully submits
this position paper and states that:

This position paper is being submitted by the Respondents to the Honorable Labor
Arbiter in view of the failure of the parties to reach an amicable settlement of the instant case.


The Respondent XYZ is a corporation duly organized in accordance with law, with postal
address at Unit 2A, 2B, 2C 719 Mandaluyong City 1550 Metro Manila and Respondent JUANA
DE LA CRUZ is the President of the said Corporation at the same address where they could be
served with summons and other legal processes of this Honorable Office.
The Complainant in this case ABC, of legal age, married, with postal address at #509-E R.
Vicencio st. Mandaluyong City 1550 where she could be served with summons and other legal
processes of this Honorable Office.

1. In 2014, Respondent XYZ was already experiencing financial difficulty and employees
kept on resigning left and right because it can no longer pay the employees’ salaries
on time. Respondent XYZ were looking for other business opportunities when
Complainant’s wife, DEF then a retainer of Respondent XYZ and a very good friend of
Respondent Juana De la Cruz persuaded the latter to invest in a call center business.
DEF, as a supportive wife volunteered her husband/Complainant since he had an
experience in running a call center business and the Complainant has been jobless
for a year already. Respondent Juana De la Cruz asked DEF and the Complainant to
give her a computation of projected earnings of the said business. Since Respondent
XYZ was in dire need of income and the call center business seemed lucrative and
easy to put up based on the projected earnings given by the Complainant and his
wife, DEF, Respondent Juana De la Cruz tried looking for investors. The Complainant
expressed his desire to become a partner to the call center, however, at that time he
does not have any money so he decided to become an industrial partner.
Respondent XYZ will give him a share on the profits less all the expenses.
Complainant presented to Respondent Juana De la Cruz an array of product that the
company can sell or offer for the call center. Attached herewith is a copy of the
projected earning of the call center business as “Annex 1”;
2. Complainant became the Operations Manager. The call center business was put up
in Subic Bay Metropolitan Authority WOW Building to cut cost. A faithful
reproduction of the Sublease agreement is hereby attached as “Annex 2”;

3. Even before the call center business started to run, the cost of putting it up
ballooned to Five Million Forty-Four Thousand Three Hundred Forty-Four and Eighty-
Nine Centavos (Php 5,044,344.89) already;

4. Complainant as an operations manager was very hands on with the call center
business. Call center agents were screened, hand-picked and personally interviewed
by the Complainant. Those already hired were directly reporting to him. He has the
power to fire and promote the call center agents;

5. When the call center business started running, the sales were always low. The sales
was not enough to cover the overhead expenses such as the salaries of the agents,
water and electricity bills and monthly rental. To cut down expenses, Respondents
asked their staff in Manila who are living in Olongapo to transfer from the rented
staff house to the house of Respondent Juana De la Cruz’s father in Olongapo.
Complainant for a while stayed in that house however after several complaints and
emails stating that he was always getting sick at that house, Respondent Juana De la
Cruz gave in to his request to pay for his place so that he can concentrate and focus
on his work on the call center business. Since the call center business was not
yielding any profit, the Complainant quit as an industrial partner. However,
Complainant remained as the operations manager and became an employee of the
call center. Attached herewith as “Annex 3” is the computation of the overhead
expenses and the sales;

6. A lot of the agents were demoralized because the Complainant was not doing his job
properly. As an operations manager, he is expected to have a foresight meaning
when one account is not doing well he should have an available account to transfer
the team that it will continue to progress even if some accounts were not earning.
In addition to the fact that the Complainant is not doing his job properly, there were
rumors that he was having an affair with one of his call center agents. Since
Respondent Juana De la Cruz is a very good friend of the Complainant’s wife, she
called his attention and asked him about it. Complainant denied the rumors and told
Respondent Juana De la Cruz that the agents are just all gossipers. However, on July
20, 2015, Respondent Juana De la Cruz received an email letter from Ms. Gigi Reyes
informing Respondent Juana De la Cruz that the Complainant and one of his agent
were seen to have entered and locked themselves up in the comfort room of the
WOW building. A faithful reproduction of the email letter sent by Ms. Gigi Reyes to
respondent Juana De la Cruz dated July 20, 2015 is hereby attached as “Annex 4”;

7. On August 25, 2016, Respondent Juana De la Cruz sent an email to Ms. Gigi Reyes,
WOW World’s representative to inform the latter that Respondents can no longer
afford to pay the monthly rental and opted to cancel/pre-terminate the sublease
agreement. Since Respondent XYZ is not yet paid for the month of August 2015,
Wow World exercised a lien over the properties inside the premises of the subleased
property. A faithful reproduction of the email letter sent by Respondent Juana De la
Cruz to Ms. Gigi Reyes on August 25, 2015 is hereby attached as “Annex 5”;

8. On September 8, 2015, Respondent XYZ was able to pay the August 2015 monthly
rental to WOW World;

9. On September 14, 2015, Respondent XYZ entered into a contract of lease with PLDT
Subictel. From September 14 to October 15, 2015, Respondent XYZ was waiting for
the signed and notarized Contract of Lease by PLDT Head office in Manila but to no
avail. Due to this, Respondent XYZ was not able to renew the registration for tax
exemption from ICT department, BIR certificate of registration amendments, billing
of sublease share from the previous office (WOW bldg.) which continuously billed
the Respondents even if the call center has already been moved from WOW bldg. to
PLDT premises because the SBMA accounting department was not yet informed
about the transfer of office.

10. On October 16, 2015, PLDT Subictel sent a letter to Respondent Juana De la Cruz
terminating the twelve (12) months lease contract term. PLDT deactivated the I-gate
internet service due to non-payment. Respondent XYZ had no choice but to
temporarily stop the call-center operations. A faithful reproduction of the Letter of
Termination by PLDT Subictel is hereby attached as “Annex 6”;

11. On October 30, 2015, PLDT Subictel decided to close and padlock the Respondent
XYZ’s office;

12. Complainant asked Respondent Juana De la Cruz to continue the call center business
on a computer shop promising her that it will still generate income. After a week of
renting in a computer shop, the call center business completely shut down its

13. On January 18, 2016, Respondent Juana De la Cruz and the Complainant had a
meeting to reconcile the payments made by the Respondent XYZ and the payments
received by the Complainant. Based on the Respondents computation, the
remaining unpaid salary is Sixty Three Thousand One Hundred Thirty-Two pesos and
Thirty-Seven Centavos only. Complainant did not agree to the computation made by
Respondent XYZ and instead requested for a list of payments made and asked for
Three Thousand Pesos (Php 3,000.00) housing allowance from June 2015 and salary
for December 2015 reflected on the computation;

14. Respondent XYZ continued to experience loses and as a result it was not able to pay
the Complainant his salary outrightly. At present, Respondent XYZ only has two (2)
rank and file employees and all of its assets are padlocked inside their former office
due to nonpayment of monthly rentals. To show Respondent XYZ’s sincere
commitment in paying the Complainant’s salary it resorted to installment payments,
even paying as low as Five Hundred Pesos (Php 500.00). Paying not just through
bank deposits but also through remittance centers like LBC and Cebuana Lhuillier. A
copy of the Summary of payments is hereby attached as “Annex 7” and the faithful
reproduction of the deposit slips, vouchers and payment receipts is hereby attached
as “Annex 7-A” to “Annex 7-ZZ”;

15. On September 8, 2016, Respondent XYZ’s representative, Atty. Ganda Talaga went
to Flair Towers in Mandaluyong City to meet the Complainant and his wife DEF to
settle and pay the unpaid salaries and wages of the Complainant and the
Complainant’s husband amounting to One Hundred Fifty One Thousand Three
Hundred Twenty-Two Pesos and Seventy-Four Centavos (Php 151,322.74) and Sixty-
Three Thousand One Hundred Thirty-Two Pesos and Thirty-Seven Centavos (Php
63,132.47) respectively, in cash. The Complainant and her husband want to accept
the money however they do not want to sign the quitclaim and acknowledgment
receipt because there were differences with their computation and that of the
Respondent XYZ’s. Moreover, Complainant demands a complete list of all the
payments made to him by Respondent XYZ from September 2014. Furthermore, the
Complainant demands that Respondent XYZ should pay his December 2015 salary
because it was allegedly agreed upon by the Complainant and Respondent Juana De
la Cruz. Due to the additional demands, no settlement was made on that day;

16. The next day, September 9, 2016, Complainant and his wife sent text messages and
emails to Respondent Juana De la Cruz threatening her that they will continue to
pester her, her husband, neighbors, and the remaining employees of XYZ through
hate texts and electronic mails and even personal visits to their house if Respondent
Juana De la Cruz will not accede to their demands. Fearing that the Complainant and
her husband will act on their threats, Respondent Juana De la Cruz made a police
blotter before the Quezon City Police District Station (PS-7). A faithful reproduction
of the certification of the police blotter dated September 9, 2016 is hereby attached
as “Annex 8”. The original copy of the police blotter has been used already when the
Respondents filed their position paper against the Complainant’s wife;

17. Since then Respondent XYZ stopped paying in installments. The Complainant started
harassing Respondent Juana De la Cruz and her husband by sending hate text
messages and hate electronic mails (e-mails). Complainant even sent malicious e-
mails to Respondent XYZ’s former employees and Respondent Juana De la Cruz’s
churchmates including their Undershepherd Sumrall which were damaging to the
reputation of Respondents XYZ and Juana De la Cruz and her husband. A faithful
reproduction of the email thread sent by the Complainant and her husband to
Respondent XYZ’s former employees and churchmates is hereby attached as “Annex

18. On October 14, 2016, Respondent Juana De la Cruz, filed a police report before the
Quezon City Police Station (PS-7) for threats and extortion. A faithful reproduction of
the police report is hereby attached as “Annex 10”. The original copy of the police
report has been used already when the Respondents filed their position paper
against the Complainant’s wife; ;

19. The Complainant and her husband only stopped harassing Respondent Juana De la
Cruz and her husband when the Complainant and her husband received an email
from XYZ’s representative, Atty. Ganda Talaga, asking them to stop and refrain from
harassing, intimidating and threatening Respondent Juana De la Cruz and her
husband. A faithful reproduction of the above-mentioned electronic email is hereby
attached as “Annex 9”; and

20. After two (2) settlement meetings before the SENA, the parties failed to come up
with a settlement thus the filing of this position paper.


moral and exemplary damages
A dismissed employee is entitled to moral damages when the dismissal is attended by bad faith or fraud
or constitutes an act oppressive to labor, or is done in a manner contrary to good morals, good customs
or public policy; Exemplary damages may be awarded if the dismissal effected in a wanton, oppressive
or malevolent manner. (Kay Products, Inc., et al. v. Court of
Appeals, G.R. No. 162472, July 28, 2005, 464 SCRA 544)

In the case at bar, Complainant resigned from his work with Respondent XYZ because the Respondent
can no longer pay her salary on time. The delay in payment was due to the fact that Respondent XYZ
continue to suffer from severe loses and eventually the call center shut down its operations. At present,
there are only two employees left employed by Respondent XYZ. There was no bad faith or fraud to
speak of.

On Complainant’s claim for Attorney’s Fees

In RTG Construction, Inc. v. Facto G.R. No. 163872, December 21, 2009, 608 SCRA 615 and in Ortiz v.
San Miguel Corporation G.R. No. 151983-84, July 31, 2008, 560 SCRA 654 the Supreme Court specifically

“Settled is the rule that in actions for recovery of wages, or where an employee was forced to litigate
and, thus, incur expenses to protect his rights and interests, a monetary award by way of attorney's fees
is justifiable under Article Ill of the Labor Code; Section 8, Rule VIII, Book III of its Implementing Rules;
and paragraph 7, Article 208 of the Civil Code. The award of attorney's fees is proper, and there need
not be any showing that the employer acted maliciously or in bad faith when it withheld the wages.
There need only be a showing that the lawful wages were not paid accordingly.”

In the case at bar, the Complainant is not entitled to Attorney’s fees because Respondent XYZ
tried several times to pay the remaining balance of him his salary amounting to Sixty-Three
Thousand One Hundred Thirty-Two Pesos and Thirty-Seven Centavos (Php 63,132.47) but
Complainant refuse to accept it unless all his demands and claims will be paid including his
December 2015. Unfortunately, since the Complainant was asking for more, the settlement was
never realized. This case was filed not because Respondents does not want and refuse to pay
the Complainant, but rather it is based on Complainant’s desire to ask for more than what he is
entitled under the law.
There is no issue whether or not the Complainant is entitled to the monetary claims.
The only issue is the amount that he is entitled to receive. At present, the outstanding balance
is Sixty Three Thousand One Hundred Thirty-Two and Thirty-Seven Pesos (Php 63,132.37).
Respondents are very much willing to pay the above-mentioned amount because they
recognized Complainants’ hard work when he was still working for the Respondent XYZ.

On the payment of a month’s worth of salary without working for it

The Labor Code of the Philippines provides the benefits which an employee should receive,
however, some companies give benefits way more than what the law provides. The law and its
implementing rules prescribe only the minimum salary and benefits. Employer and employee is
given the freedom to reach a compromise which will serve and benefit their mutual interest.
However, these additional benefits must be written in the employment contract or if not stated
in the contract it must be a part of the company policy.

Obligations arising from contracts have the force and effect of law between the parties and
should be complied in good faith.
Complainant demands from the Respondents that his salary for the month of December
2015 must be paid is untenable. The call center shut down its operations first week of November
2015. Respondent XYZ paid the Complainant his whole salary for the month of November 2015
even though he only worked for a week. Such was an act of generosity on the part of Respondent
XYZ because it knew that the Complainant has to have money he is looking for another job.
However, to pay for another extra month is way too much already for a company that shut down
its operations. There was no agreement made that Respondents will pay for the December 2015
salary of the Complainant.
WHEREFORE, it is most respectfully prayed that the complaint be DISMISSED.
Respondents pray for other reliefs to which they may be entitled in law, and inequity.
Quezon City, February 14, 2017.

President of XYZ

I, Juana De la Cruz, after having been sworn to law, under oath
depose and state that:

1. I am the Respondent in the above-entitled case; I have caused the

preparation of the foregoing Position Paper;

2. I have read and understood the contents thereof and the same are true based
on my personal knowledge or authentic records; and

3. I further certify under the same oath that I have not filed a case involving
the same issue in any court, Tribunal or Agency; that there is no such case filed or
is pending before any court , Tribunal or agency ; that if there is case hereafter
filed or is pending before any Court , Tribunal or Agency, I undertake to report
such fact five (5) days therefrom to the Honorable Office.

IN WITNESS WHEREOF, I have hereunto affixed my signature this 14th day of February, 2017 at
Quezon City.

President of XYZ
Copy Furnished:
#509-E R. Mandaluyong City 1550



____________________________) SS.

BEFORE ME A NOTARY PUBLIC for and in the above jurisdiction personally appeared
JUANA DE LA CRUZ with passport number XXXXXXXX issued on July 18, 2014 at DFA NCR East
known to me and to be known to be the same person who executed the foregoing instrument
which he acknowledged to be his free act and deed

DOC. NO. _______ ;

PAGE NO._______;
BOOK NO._______;
Series of 2017.