San Miguel Corporation v. CA G.R. No.

146775 1 of 5

Republic of the Philippines

SUPREME COURT
Manila
FIRST DIVISION
G.R. No. 146775 January 30, 2002
SAN MIGUEL CORPORATION, petitioner,
vs.
THE HONORABLE COURT OF APPEALS-FORMER THIRTEENTH DIVISION, HON.
UNDERSECRETARY JOSE M. ESPAOL, JR., Hon. CRESENCIANO B. TRAJANO, and HON.
REGIONAL DIRECTOR ALLAN M. MACARAYA, respondents.
DECISION
KAPUNAN, J.:
Assailed in the petition bef
ore us are the decision, promulgated on 08 May 2000, and the resolution, promulgated on 18 October 2000, of the
Court of Appeals in CA G.R. SP-53269.
The facts of the case are as follows:
On 17 October 1992, the Department of Labor and Employment (DOLE), Iligan District Office, conducted a
routine inspection in the premises of San Miguel Corporation (SMC) in Sta. Filomena, Iligan City. In the course of
the inspection, it was discovered that there was underpayment by SMC of regular Muslim holiday pay to its
employees. DOLE sent a copy of the inspection result to SMC and it was received by and explained to its
personnel officer Elena dela Puerta. SMC contested the findings and DOLE conducted summary hearings on 19
November 1992, 28 May 1993 and 4 and 5 October 1993. Still, SMC failed to submit proof that it was paying
regular Muslim holiday pay to its employees. Hence, Alan M. Macaraya, Director IV of DOLE Iligan District
Office issued a compliance order, dated 17 December 1993, directing SMC to consider Muslim holidays as regular
holidays and to pay both its Muslim and non-Muslim employees holiday pay within thirty (30) days from the
receipt of the order.
SMC appealed to the DOLE main office in Manila but its appeal was dismissed for having been filed late. The
dismissal of the appeal for late filing was later on reconsidered in the order of 17 July 1998 after it was found that
the appeal was filed within the reglementary period. However, the appeal was still dismissed for lack of merit and
the order of Director Macaraya was affirmed.
SMC went to this Court for relief via a petition for certiorari, which this Court referred to the Court of Appeals
pursuant to St. Martin Funeral Homes vs. NLRC.
The appellate court, in the now questioned decision, promulgated on 08 May 2000, ruled, as follows:
WHEREFORE, the Order dated December 17, 1993 of Director Macaraya and Order dated July 17, 1998 of
Undersecretary Espaol, Jr. is hereby MODIFIED with regards the payment of Muslim holiday pay from 200% to
150% of the employee's basic salary. Let this case be remanded to the Regional Director for the proper
computation of the said holiday pay.
San Miguel Corporation v. CA G.R. No. 146775 2 of 5

SO ORDERED.
Its motion for reconsideration having been denied for lack of merit, SMC filed a petition for certiorari before this
Court, alleging that:
PUBLIC RESPONDENTS SERIOUSLY ERRED AND COMMITTED GRAVE ABUSE OF DISCRETION
WHEN THEY GRANTED MUSLIM HOLIDAY PAY TO NON-MUSLIM EMPLOYEES OF SMC-ILICOCO
AND ORDERING SMC TO PAY THE SAME RETROACTIVE FOR ONE (1) YEAR FROM THE DATE OF
THE PROMULGATION OF THE COMPLIANCE ORDER ISSUED ON DECEMBER 17, 1993, IT BEING
CONTRARY TO THE PROVISIONS, INTENT AND PURPOSE OF P.D. 1083 AND PREVAILING
JURISPRUDENCE.
THE ISSUANCE OF THE COMPLIANCE ORDER WAS TAINTED WITH GRAVE ABUSE OF DISCRETION
IN THAT SAN MIGUEL CORPORATION WAS NOT ACCORDED DUE PROCESS OF LAW; HENCE, THE
ASSAILED COMPLIANCE ORDER AND ALL SUBSEQUENT ORDERS, DECISION AND RESOLUTION OF
PUBLIC RESPONDENTS WERE ALL ISSUED WITH GRAVE ABUSE OF DISCRETION AND ARE VOID AB
INITIO.
THE HON. COURT OF APPEALS COMMITTED GRAVE ABUSE OF DISCRETION WHEN IT DECLARED
THAT REGIONAL DIRECTOR MACARAYA, UNDERSECRETARY TRAJANO AND UNDERSECRETARY
ESPAOL, JR., WHO ALL LIKEWISE ACTED WITH GRAVE ABUSE OF DISCRETION AND WITHOUT OR
IN EXCESS OF THEIR JURISDICTION, HAVE JURISDICTION IN ISSUING THE ASSAILED
COMPLIANCE ORDER AND SUBSEQUENT ORDERS, WHEN IN FACT THEY HAVE NO JURISDICTION
OR HAS LOST JURISDICTION OVER THE HEREIN LABOR STANDARD CASE.
At the outset, petitioner came to this Court via a petition for certiorari under Rule 65 instead of an appeal under
Rule 45 of the 1997 Rules of Civil Procedure. In National Irrigation Administration vs. Court of Appeals, the Court
declared:
x x x (S)ince the Court of Appeals had jurisdiction over the petition under Rule 65, any alleged errors committed
by it in the exercise of its jurisdiction would be errors of judgment which are reviewable by timely appeal and not
by a special civil action of certiorari. If the aggrieved party fails to do so within the reglementary period, and the
decision accordingly becomes final and executory, he cannot avail himself of the writ of certiorari, his predicament
being the effect of his deliberate inaction.
The appeal from a final disposition of the Court of Appeals is a petition for review under Rule 45 and not a special
civil action under Rule 65 of the Rules of Court, now Rule 45 and Rule 65, respectively, of the 1997 Rules of Civil
Procedure. Rule 45 is clear that decisions, final orders or resolutions of the Court of Appeals in any case, i.e.,
regardless of the nature of the action or proceeding involved, may be appealed to this Court by filing a petition for
review, which would be but a continuation of the appellate process over the original case. Under Rule 45 the
reglementary period to appeal is fifteen (15) days from notice of judgment or denial of motion for reconsideration.
xxx
For the writ of certiorari under Rule 65 of the Rules of Court to issue, a petitioner must show that he has no plain,
speedy and adequate remedy in the ordinary course of law against its perceived grievance. A remedy is considered
"plain, speedy and adequate" if it will promptly relieve the petitioner from the injurious effects of the judgment and
the acts of the lower court or agency. In this case, appeal was not only available but also a speedy and adequate
San Miguel Corporation v. CA G.R. No. 146775 3 of 5

remedy.
Well-settled is the rule that certiorari cannot be availed of as a substitute for a lost appeal. For failure of petitioner
to file a timely appeal, the questioned decision of the Court of Appeals had already become final and executory.
In any event, the Court finds no reason to reverse the decision of the Court of Appeals.
Muslim holidays are provided under Articles 169 and 170, Title I, Book V, of Presidential Decree No. 1083,
otherwise known as the Code of Muslim Personal Laws, which states:
Art. 169. Official Muslim holidays. - The following are hereby recognized as legal Muslim holidays:
(a) Amun Jadd (New Year), which falls on the first day of the first lunar month of Muharram;
(b) Maulid-un-Nab (Birthday of the Prophet Muhammad), which falls on the twelfth day of the third lunar
month of Rabi-ul-Awwal;
(c) Lailatul Isr Wal Mirj (Nocturnal Journey and Ascension of the Prophet Muhammad), which falls on
the twenty-seventh day of the seventh lunar month of Rajab;
(d) d-ul-Fitr (Hari Raya Puasa), which falls on the first day of the tenth lunar month of Shawwal,
commemorating the end of the fasting season; and
(e) d-l-Adh (Hari Raya Haji),which falls on the tenth day of the twelfth lunar month of Dhl-Hijja.
Art. 170. Provinces and cities where officially observed. - (1) Muslim holidays shall be officially observed in the
Provinces of Basilan, Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato, Iligan, Marawi, Pagadian,
and Zamboanga and in such other Muslim provinces and cities as may hereafter be created;
(2) Upon proclamation by the President of the Philippines, Muslim holidays may also be officially observed in
other provinces and cities.
The foregoing provisions should be read in conjunction with Article 94 of the Labor Code, which provides:
Art. 94. Right to holiday pay. -
(a) Every worker shall be paid his regular daily wage during regular holidays, except in retail and service
establishments regularly employing less than ten (10) workers;
(b) The employer may require an employee to work on any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; x x x.
Petitioner asserts that Article 3(3) of Presidential Decree No. 1083 provides that "(t)he provisions of this Code shall
be applicable only to Muslims x x x." However, there should be no distinction between Muslims and non-Muslims
as regards payment of benefits for Muslim holidays. The Court of Appeals did not err in sustaining Undersecretary
Espaol who stated:
Assuming arguendo that the respondents position is correct, then by the same token, Muslims throughout the
Philippines are also not entitled to holiday pays on Christian holidays declared by law as regular holidays. We must
remind the respondent-appellant that wages and other emoluments granted by law to the working man are
determined on the basis of the criteria laid down by laws and certainly not on the basis of the workers faith or
religion.
San Miguel Corporation v. CA G.R. No. 146775 4 of 5

At any rate, Article 3(3) of Presidential Decree No. 1083 also declares that "x x x nothing herein shall be construed
to operate to the prejudice of a non-Muslim."
In addition, the 1999 Handbook on Workers Statutory Benefits, approved by then DOLE Secretary Bienvenido E.
Laguesma on 14 December 1999 categorically stated:
Considering that all private corporations, offices, agencies, and entities or establishments operating within the
designated Muslim provinces and cities are required to observe Muslim holidays, both Muslim and Christians
working within the Muslim areas may not report for work on the days designated by law as Muslim
holidays.
On the question regarding the jurisdiction of the Regional Director Allan M. Macaraya, Article 128, Section B of
the Labor Code, as amended by Republic Act No. 7730, provides:
"Article 128. Visitorial and enforcement power. -
xxx
(b) Notwithstanding the provisions of Article 129 and 217 of this Code to the contrary, and in cases where the
relationship of employer-employee still exists, the Secretary of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance orders to give effect to the labor standards provisions of
this Code and other labor legislation based on the findings of labor employment and enforcement officers or
industrial safety engineers made in the course of the inspection. The Secretary or his duly authorized representative
shall issue writs of execution to the appropriate authority for the enforcement of their orders, except in cases where
the employer contests the findings of the labor employment and enforcement officer and raises issues supported by
documentary proofs which were not considered in the course of inspection.
xxx
In the case before us, Regional Director Macaraya acted as the duly authorized representative of the Secretary of
Labor and Employment and it was within his power to issue the compliance order to SMC. In addition, the Court
agrees with the Solicitor General that the petitioner did not deny that it was not paying Muslim holiday pay to its
non-Muslim employees. Indeed, petitioner merely contends that its non-Muslim employees are not entitled to
Muslim holiday pay. Hence, the issue could be resolved even without documentary proofs. In any case, there was
no indication that Regional Director Macaraya failed to consider any documentary proof presented by SMC in the
course of the inspection.
Anent the allegation that petitioner was not accorded due process, we sustain the Court of Appeals in finding that
SMC was furnished a copy of the inspection order and it was received by and explained to its Personnel Officer.
Further, a series of summary hearings were conducted by DOLE on 19 November 1992, 28 May 1993 and 4 and 5
October 1993. Thus, SMC could not claim that it was not given an opportunity to defend itself.
Finally, as regards the allegation that the issue on Muslim holiday pay was already resolved in NLRC CA No. M-
000915-92 (Napoleon E. Fernan vs. San Miguel Corporation Beer Division and Leopoldo Zaldarriaga), the Court
notes that the case was primarily for illegal dismissal and the claim for benefits was only incidental to the main
case. In that case, the NLRC Cagayan de Oro City declared, in passing:
We also deny the claims for Muslim holiday pay for lack of factual and legal basis. Muslim holidays are legally
observed within the area of jurisdiction of the present Autonomous Region for Muslim Mindanao (ARMM),
San Miguel Corporation v. CA G.R. No. 146775 5 of 5

particularly in the provinces of Maguindanao, Lanao del Sur, Sulu and Tawi-Tawi.1wphi1 It is only upon
Presidential Proclamation that Muslim holidays may be officially observed outside the Autonomous Region and
generally extends to Muslims to enable them the observe said holidays.
The decision has no consequence to issues before us, and as aptly declared by Undersecretary Espaol, it "can
never be a benchmark nor a guideline to the present case x x x."
WHEREFORE, in view of the foregoing, the petition is DISMISSED.
SO ORDERED.
Davide, Jr., C.J., (Chairman), Puno, Pardo, and Ynares-Santiago, JJ., concur.