Case Digest: Sebuguero v. NLRC, G.R. No. 115394, September 27, 1995

 Attorney's Fees | Art. 111

  • The petitioners, who were among the 38 regular employees of GTI Sportswear Corporation, were given "temporary lay-off" notices due to alleged lack of work and heavy losses. 
  • The employees filed complaints for illegal dismissal, unfair labor practice, underpayment of wages, and non-payment of benefits.
  • GTI denied the claim of illegal dismissal and asserted that it was its prerogative to lay-off its employees temporarily for a period not exceeding six months to prevent losses due to lack of work or job orders from abroad.
  • LA: Found GTI liable for constructive dismissal and ordered GTI to pay backwages, separation pay, 13th-month pay, and attorney's fees.
  • NLRC: Concurred with the findings of the Labor Arbiter that there was a valid lay-off of the petitioners due to lack of work but deleted the awards for backwages, 13th-month pay, and attorney's fees, and directed payment of separation pay to the employees.

WoN petitioners are entitled to an award for attorney's fees. YES

The petitioners are entitled to an award for attorney's fees pursuant to paragraph 7, Article 2208 of the Civil Code which must, however, be reasonable. The award of P120,618.87, which is equivalent to ten percent (10%) of the amounts recovered, as attorney's fees should be reduced to P 25,000.00, an amount we find to be reasonable. 

The ten percent (10%) attorney's fees provided for in Article 111 of the Labor Code and Section 11, Rule VIII, Book III of the Implementing Rules is the maximum; hence, any amount less than that may be awarded as the circumstances of the case may warrant.


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