FIRST DIVISION

[G.R. NO. 152777 December 9, 2005]

LOLITA R. LACUESTA, Petitioner, v. ATENEO DE MANILA UNIVERSITY, DR.

LEOVINO MA. GARCIA and DR. MARIJO RUIZ, Respondents.

DECISION

QUISUMBING, J.:

This Petition for Review on Certiorari assails the Decision1 dated October 12, 2001 of

the Court of Appeals in CA-G.R. SP No. 61173 and its Resolution2 dated February 21,
2002, denying the motion for reconsideration. The appellate court affirmed the
Decision3 dated February 24, 2000 of the National Labor Relations Commission (NLRC),
which had reversed the Decision dated March 20, 1998 of the Labor Arbiter.

The facts are undisputed.

Respondent Ateneo de Manila University (Ateneo) hired, on a contractual basis,

petitioner Lolita R. Lacuesta as a part-time lecturer in its English Department for the
second semester of school year 1988-1989. She was re-hired, still on a contractual
basis, for the first and second semesters of school year 1989-1990.

On July 13, 1990, the petitioner was first appointed as full-time instructor on probation,
in the same department effective June 1, 1990 until March 31, 1991. Thereafter, her
contract as faculty on probation was renewed effective April 1, 1991 until March 31,
1992. She was again hired for a third year effective April 1, 1992 until March 31, 1993.
During these three years she was on probation status.

In a letter dated January 27, 1993, respondent Dr. Leovino Ma. Garcia, Dean of
Ateneo's Graduate School and College of Arts and Sciences, notified petitioner that her
contract would no longer be renewed because she did not integrate well with the
English Department. Petitioner then appealed to the President of the Ateneo at the
time, Fr. Joaquin Bernas, S.J.

In a letter dated February 11, 1993, Fr. Bernas explained to petitioner that she was not
being terminated, but her contract would simply expire. He also stated that the
university president makes a permanent appointment only upon recommendation of the
Dean and confirmation of the Committee on Faculty Rank and Permanent Appointment.
He added that any appointment he might extend would be tantamount to a midnight
appointment.

In another letter dated March 11, 1993, Fr. Bernas offered petitioner the job as book
editor in the University Press under terms comparable to that of a faculty member.

On March 26, 1993, petitioner applied for clearance to collect her final salary as
instructor. Petitioner also signed a Quitclaim, Discharge and Release on April 16, 1993.4
Petitioner worked as editor in the University Press from April 1, 1993 to March 31, 1994
including an extension of two months after her contract expired. Upon expiry of her
contract, petitioner applied for clearance to collect her final salary as editor. Later, she
agreed to extend her contract from June 16, 1994 to October 31, 1994. Petitioner
decided not to have her contract renewed due to a severe back problem. She did not
report back to work, but she submitted her clearance on February 20, 1995.

On December 23, 1996, petitioner filed a complaint for illegal dismissal with prayer for
reinstatement, back wages, and moral and exemplary damages. Dr. Leovino Ma. Garcia
and Dr. Marijo Ruiz were sued in their official capacities as the previous and present
deans of the College of Arts and Sciences, respectively.

Labor Arbiter Manuel P. Asuncion held that petitioner may not be terminated by mere
lapse of the probationary period but only for just cause or failure to meet the
employer's standards. Moreover, said the Labor Arbiter, the quitclaim, discharge and
release executed by petitioner was not a bar to filing a complaint for illegal
dismissal.5 Thus, he ordered reinstatement with payment of full back wages.

The NLRC upon appeal of respondents reversed the Labor Arbiter's decision and ruled
that petitioner was not illegally dismissed, and that her quitclaim was valid. Petitioner
sought reconsideration but it was denied. She then filed a petition for certiorari before
the Court of Appeals assailing the NLRC decision. The appellate court dismissed the
petition saying there was no grave abuse of discretion and affirmed the NLRC decision.
It ruled:

WHEREFORE, the petition is hereby denied and accordingly DISMISSED.6

Hence, this instant petition where petitioner assigns the following as errors:

1. The Court of Appeals erred in ruling that it is the Manual of Regulations For Private
Schools, not the Labor Code, that determines the acquisition of regular or permanent
status of faculty members in an educational institution;

2. The Court of Appeals erred in upholding the Quitclaim that was signed by the
Petitioner and in taking that against her claims for illegal dismissal and for moral and
exemplary damages against the respondents.7

Simply put, the issue in this case is whether the petitioner was illegally dismissed.

Petitioner contends that Articles 280 and 281 of the Labor Code,8 not the Manual of
Regulations for Private Schools, is the applicable law to determine whether or not an
employee in an educational institution has acquired regular or permanent status. She
argues that (1) under Article 281, probationary employment shall not exceed six (6)
months from date of employment unless a longer period had been stipulated by an
apprenticeship agreement; (2) under Article 280, if the apprenticeship agreement
stipulates a period longer than one year and the employee rendered at least one year
of service, whether continuous or broken, the employee shall be considered as regular
employee with respect to the activity in which he is employed while such activity exists;
and (3) it is with more reason that petitioner be made regular since she had rendered
services as part-time and full-time English teacher for four and a half years, services
which are necessary and desirable to the usual business of Ateneo.9

Furthermore, the petitioner contends that her clearance was granted and completed
only after she signed the quitclaim on April 16, 1993. She contends also that the
respondents failed to show that her quitclaim was voluntary.

Respondents, for their part, contend that the Manual of Regulations for Private Schools
is controlling. In the Manual, full-time teachers who have rendered three consecutive
years of satisfactory service shall be considered permanent. Respondents also claim
that the petitioner was not terminated but her employment contract expired at the end
of the probationary period. Further, institutions of higher learning, such as respondent
Ateneo, enjoy the freedom to choose who may teach according to its standards.
Respondents also argue that the quitclaim, discharge and release by petitioner is
binding and should bar her complaint for illegal dismissal.

After considering the contentions of the parties in the light of the circumstances in this
case, we find for respondents.

The Manual of Regulations for Private Schools, and not the Labor Code, determines
whether or not a faculty member in an educational institution has attained regular or
permanent status.10 In University of Santo Tomas v. National Labor Relations
Commission the Court en banc  said that under Policy Instructions No. 11 issued by the
Department of Labor and Employment, "the probationary employment of professors,
instructors and teachers shall be subject to the standards established by the
Department of Education and Culture." Said standards are embodied in paragraph
7511 (now Section 93) of the Manual of Regulations for Private Schools.12

Section 9313 of the 1992 Manual of Regulations for Private Schools provides that full-
time teachers who have satisfactorily completed their probationary period shall be
considered regular or permanent.14 Moreover, for those teaching in the tertiary level,
the probationary period shall not be more than six consecutive regular semesters of
satisfactory service.15 The requisites to acquire permanent employment, or security of
tenure, are (1) the teacher is a full-time teacher; (2) the teacher must have rendered
three consecutive years of service; and (3) such service must have been satisfactory.16

As previously held, a part-time teacher cannot acquire permanent status.17 Only when

one has served as a full-time teacher can he acquire permanent or regular status. The
petitioner was a part-time lecturer before she was appointed as a full-time instructor on
probation. As a part-time lecturer, her employment as such had ended when her
contract expired. Thus, the three semesters she served as part-time lecturer could not
be credited to her in computing the number of years she has served to qualify her for
permanent status.

Petitioner posits that after completing the three-year probation with an above-average
performance, she already acquired permanent status. On this point, we are unable to
agree with petitioner.

Completing the probation period does not automatically qualify her to become a
permanent employee of the university. Petitioner could only qualify to become a
permanent employee upon fulfilling the reasonable standards for permanent
employment as faculty member.18 Consistent with academic freedom and constitutional
autonomy, an institution of higher learning has the prerogative to provide standards for
its teachers and determine whether these standards have been met.19 At the end of the
probation period, the decision to re-hire an employee on probation, belongs to the
university as the employer alone.

We reiterate, however, that probationary employees enjoy security of tenure, but only
within the period of probation. Likewise, an employee on probation can only be
dismissed for just cause or when he fails to qualify as a regular employee in accordance
with the reasonable standards made known by the employer at the time of his hiring.
Upon expiration of their contract of employment, academic personnel on probation
cannot automatically claim security of tenure and compel their employers to renew their
employment contracts.20 In the instant case, petitioner, did not attain permanent status
and was not illegally dismissed. As found by the NLRC, her contract merely expired.

Lastly, we find that petitioner had already signed a valid quitclaim, discharge and
release which bars the present action. This Court has held that not all quitclaims
are per se invalid or against public policy, except (1) where there is clear proof that the
waiver was wangled from an unsuspecting or gullible person, or (2) where the terms of
settlement are unconscionable on their face.21 In this case, there is no showing that
petitioner was coerced into signing the quitclaim. In her sworn quitclaim, she freely
declared that she received to her full satisfaction all that is due her by reason of her
employment and that she was voluntarily releasing respondent Ateneo from all claims
in relation to her employment.22 Nothing on the face of her quitclaim has been shown as
unconscionable.

WHEREFORE, the petition is DENIED for lack of merit. The Decision dated October 12,
2001 of the Court of Appeals in CA-G.R. SP No. 61173 and its Resolutiondated February
21, 2002 are AFFIRMED.

SO ORDERED.