G.R. No. L-44360 March 31, 1977
REGINA S. BIBOSO, NENITA B. BISO, FE CUBIN, MAGELENDE H. DEMEGILLDO, EMERITA O. PANALIGAN, NILDA P. TAYO, NELDA TORMON, ARDE M. VALENCIANO, MA. LINDA E. VILLA and the VICMICO SUPERVISORY EMPLOYEES ASSOCIATION (VICSEA), petitioners, vs. VICTORIAS MILLING COMPANY, INC. and the OFFICE OF THE PRESIDENT OF THE PHILIPPINES, respondents.

FACTS

The petitioners, nine teachers employed at the St. Mary Mazzarello School operated by private respondent Victorias Milling Company, were notified in April 1973 that they would not be rehired for the upcoming school year. Their services were terminated effective June 30, 1973. The petitioners, who had all signed employment contracts specifying their status as “temporary as and when required” with a definite expiration date of June 30 of the relevant school year, filed a complaint for reinstatement. They alleged that their dismissal constituted an unfair labor practice, as it was motivated by their membership in the petitioner union, VICSEA, which they had joined in January 1973. The case progressed through the labor arbitration machinery, with decisions favorable to the petitioners being rendered by the Arbitrator, the National Labor Relations Commission, and the Secretary of Labor. Private respondent appealed to the Office of the President.

ISSUE

The decisive issue is whether the constitutional guarantee of security of tenure applies to the petitioners, whose employment was on a fixed-term, year-to-year basis, and whether their dismissal constituted an unfair labor practice.

RULING

The Supreme Court dismissed the petition, upholding the order of the Presidential Executive Assistant. The legal logic is clear: security of tenure, while constitutionally mandated, protects only employees whose employment is permanent or for an indefinite period. The petitioners were employed under contracts with a definitive end date, expiring each June 30. They were aware their tenure was limited and that renewal was contingent on the school’s discretion. The Court recognized the official policy, as affirmed by the Department of Labor, setting the maximum probationary period for teachers at three years, which is distinct from a fixed-term contract. On the claim of unfair labor practice, the Court deferred to the factual finding of the Office of the President, which, after evaluating conflicting evidence, found the accusation untenable. The Court emphasized that its certiorari jurisdiction is limited to correcting grave abuse of discretion characterized by arbitrariness or caprice. No such abuse was present, as the Office of the President’s decision was based on the contractual nature of the employment and its assessment of the evidence regarding union membership. The termination resulted from the natural expiration of the fixed-term contracts, not from an unfair labor practice.