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Marcopper vs. NLRC

Three employees of Marcopper Mining Corp. died after working for the company for 17, 12, and 18 years respectively. The heirs of the deceased employees received payments from the company per the collective bargaining agreement, but the union demanded severance pay as well. The Labor Arbiter and NLRC both ruled in favor of the heirs, finding that death is an involuntary separation from employment like illness, and severance pay should not be denied to those who die through no fault of their own. The Supreme Court affirmed this decision, dismissing Marcopper's petition and finding the heirs were entitled to severance pay, with some modifications due to debts owed by two of the deceased employees.

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244 views1 page

Marcopper vs. NLRC

Three employees of Marcopper Mining Corp. died after working for the company for 17, 12, and 18 years respectively. The heirs of the deceased employees received payments from the company per the collective bargaining agreement, but the union demanded severance pay as well. The Labor Arbiter and NLRC both ruled in favor of the heirs, finding that death is an involuntary separation from employment like illness, and severance pay should not be denied to those who die through no fault of their own. The Supreme Court affirmed this decision, dismissing Marcopper's petition and finding the heirs were entitled to severance pay, with some modifications due to debts owed by two of the deceased employees.

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Rio Tolentino
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Marcopper Mining Corp. vs.

NLRC

G.R. No. 83207 : Aygust 05, 1991

Cruz, J.

Facts:

Three employees of the petitioner’s company died after serving therein for 17, 12, and 18 years
respectively. Pursuant to the CBA, the petitioners paid the heirs of the deceased employees the
proceeds of the group life insurance plan and the cash value of their unused vacation and sick leaves,
and waived certain amounts owing to it by the 2 deceased employees. After the receipt of the foregoing
payments, the heirs executed separate quit-claims-releases in favor of the petitioner.

Subsequently, the National Mines and Allied Workers Union demanded a severance pay from the
petitioner pursuant with Article XII, Sec.1, of the CBA. However, the demand was rejected, and the
union thereupon filed a complaint on behalf of the heirs for the recovery of the said claim. The Labor
Arbiter rendered a decision in favor of the respondents. Petitioners Marcopper appealed to the NLRC
which affirmed the decision of the LA. Hence, this petitioner for certiorari.

Issue:

Whether the heirs of the deceased are entitled for the severance pay.

Held:

Yes. According to Art. XII, Sec. 1, severance pay is awarded to employees who voluntarily resigns and
served at least served 10 years in the company. Resignation is a voluntary mode of separation, dismissal
on the ground of illness is also provided for in the same Section 1 of Article XII although it is an
involuntary mode of separation. Obviously, the word "leave" is used in its generic sense. To grant
severance pay to an employee who is dismissed on the ground of illness and to exclude one who dies is
to them "a myopic and constricted view." The provision should be interpreted under the spirit that gives
life and not the letter that killeth. If a worker who willingly leaves the company is entitled to severance
pay under the CBA, the same benefit should not be denied one, who, through no choice of his own, is
separated from employment by reason of death.

Death, is an involuntary mode of separation. Therefore, the petition is dismissed. The heirs are entitled
of the severance pay with modification due to the money owed by the two deceased to the company.
However, the severance pay owing to Calixto Gamboa (one of the deceased) shall be paid in full.

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