Herrera-Manaois vs. St. Scholastica's College

A master's degree is a mandatory minimum qualification for attaining permanent full-time faculty status in tertiary private educational institutions, and this requirement is neither subject to the school's prerogative nor to agreement between the parties; it is deemed impliedly written in employment contracts, and failure to meet it prevents acquisition of permanent status even after completion of the probationary period.

St. Scholastica's College (SSC) is a private educational institution in the City of Manila offering elementary, secondary, and tertiary education. The case concerns the academic qualifications required for attaining permanent full-time faculty status in the tertiary level of a private educational institution. Private educational institutions must supplementarily refer to prevailing standards, qualifications, and conditions set by appropriate government agencies, including the Department of Education, the Commission on Higher Education, and the Technical Education and Skills Development Authority, in view of the public interest nature of educational institutions. The applicable guidebook at the time petitioner was engaged was the 1992 Manual of Regulations for Private Schools (1992 Manual), issued pursuant to Department of Education, Culture and Sports Order No. 92, S. 1992.

Jocelyn Herrera-Manaois graduated from St. Scholastica's College (SSC) in October 1992 with a degree in Bachelor of Arts in English. In 1994, she returned to her alma mater as a part-time English teacher. After taking a one-year leave of absence, she was rehired for the same position. Four years into her service, she was recommended by her Department Chairperson to become a full-time faculty member of the English Department.

Manaois applied for a position as full-time instructor for school year 2000-2001. In her application letter, she mentioned that she had been taking the course Master of Arts in English Studies, Major in Creative Writing, at the University of the Philippines, Diliman (UP); that she was completing her master's thesis; and that her oral defense was scheduled for June 2000. In a reply letter dated 17 April 2000, the Dean of Arts and Sciences informed her of the SSC Administrative Council's approval of her application, advising her to maintain the good performance she had shown and to submit the necessary papers pertaining to her master's degree. SSC hired her as a probationary full-time faculty member with the assigned rank of instructor for school year 2000-2001. Her probationary employment continued for three consecutive years, during which she received above-satisfactory ratings from both the Department Chairperson and the Dean of Arts and Sciences, with no derogatory record.

Because of the forthcoming completion of her third year of probationary employment, Manaois wrote the Dean requesting an extension of her teaching load for school year 2003-2004. She again mentioned that she was a candidate for a master's degree in English Studies, that her oral defense might materialize within the first academic semester of 2003, and that she intended to fully earn her degree that year. She furnished the school with a Certification from UP stating that she had finished her coursework. Manaois eventually received a letter from the Dean of College and Chairperson of the Promotions and Permanency Board officially informing her of the board's decision not to renew her contract. The letter stated that the institution had granted her request for a three-year extension to finish her master's degree, but she failed to comply with the terms she herself had requested, and that her specialization could not be maximized at SSC due to the college's curriculum changes and streamlining.

Manaois sought clarification and reconsideration, which SSC denied in a letter dated 11 July 2003. She then filed a complaint for illegal dismissal, payment of 13th month pay, damages, and attorney's fees. SSC explained that the Dean of Arts and Sciences wrote a notation at the bottom of her application letter — "APPROVED: on the basis that she finishes her MA" — and stressed that permanency may only be extended to full-time faculty members who fulfilled the criteria in the SSC Faculty Manual. SSC asserted that the Chair of the English Department did not endorse her application for permanency since she had not finished her master's degree within the three-year probationary period, and that her specialization was the subject of writing, not English Literature, which was the subject area they needed.

The Labor Arbiter found the dismissal illegal, ruling that the handwritten notation was not disclosed to Manaois at the start of her engagement, that the minimum requirement for the rank of instructor was only a bachelor's degree with at least 25% masteral units, and that the second reason — inability to maximize her specialization — was not a valid cause for dismissing a probationary employee. The NLRC affirmed in toto. The Court of Appeals reversed, ruling that Manaois was aware of the master's degree requirement based on her own acts and correspondence, that the employment contract incorporated the SSC Faculty Manual which explicitly required completion of a master's degree for permanency, and that what happened was merely the expiration of an employment contract and nonrenewal thereof.

• Lack of Notice of the Requirement: Petitioner argued that the alleged handwritten notation on her employment application — "APPROVED: on the basis that she finishes her MA" — was not disclosed or made known to her at the start of her engagement, and she was not given a copy of the approval until it was attached to SSC's position paper.

• Minimum Requirements for Instructor Rank: Petitioner argued that under the SSC Faculty Manual, the minimum requirement for the rank of instructor, for which she was hired, was a bachelor's degree with at least 25% masteral units completed, and that the master's degree requirement pertained only to the rank of assistant professor, a position she had not applied for.

• Inapplicability of the 1992 Manual: Petitioner argued that the Manual of Regulations for Private Schools was inapplicable to her employment status, as it merely referred to requirements for tertiary schools to be accredited, not to employment conditions of academic personnel.

• Invalid Ground for Dismissal: Petitioner argued that her failure to finish her master's degree could not be used as a ground for dismissing her or as basis for refusing to extend permanent teaching status, and that probationers may only be terminated for a just cause or for failure to qualify in accordance with reasonable standards made known at the time of engagement.

• Knowledge of the Requirement: Respondent argued that Manaois was aware and knowledgeable that possession of a master's degree was a criterion for permanency as a full-time faculty member at SSC, as evidenced by her application letter mentioning her master's studies and the exchange of correspondence in April 2000.

• Contractual Incorporation of the Faculty Manual: Respondent argued that Manaois's employment contract incorporated the conditions set in the SSC Faculty Manual, which explicitly stated that the criteria for permanency included the completion of a master's degree.

• Expiration of Contract: Respondent argued that what happened was merely the expiration of an employment contract and the nonrenewal thereof, since Manaois failed to finish her master's degree despite requests for extension and informed SSC that there was still no fixed schedule for her oral defense.

• Specialization Mismatch: Respondent asserted that Manaois's specialization was the subject of writing, not English Literature, which was the subject area they needed a faculty member for.

• Master's Degree Requirement for Permanency: Whether the completion of a master's degree is required in order for a tertiary level educator to earn the status of permanency in a private educational institution.

• Master's Degree Requirement for Permanency: Yes. The completion of a master's degree is required for a tertiary level educator to attain permanent full-time faculty status, both under the SSC Faculty Manual incorporated into the employment contract and under Sections 44(c) and 45 of the 1992 Manual of Regulations for Private Schools, which mandate this qualification regardless of whether it was made known to the employee at the time of engagement.

• Master's Degree Requirement for Permanency: The Court agreed with the Court of Appeals that the requirement to obtain a master's degree was made known to Manaois. Her employment contract clearly incorporated the rules, regulations, and employment conditions contained in the SSC Faculty Manual, which provided that the faculty member must have completed at least a master's degree as a criterion for permanency. Viewed against Manaois's statements and actions — references to obtaining a master's degree in her application letter, subsequent correspondences, her letter seeking extension of teaching load, and her submission of certifications from UP and her thesis adviser — there was substantial evidence proving she knew about the necessary academic qualifications.

The Court also agreed that the labor arbiter and NLRC gravely misinterpreted the section in the SSC Faculty Manual providing for lower academic requirements for the rank of instructor. The minimum requirements for the rank of instructor merely refer to how instructors are ranked, not to the academic qualifications required to attain permanency, since the section on ranking covers both probationary and permanent faculty. The sections on permanency and ranking must be read in conjunction with each other.

The Court reiterated that mere completion of the three-year probation, even with above-average performance, does not guarantee automatic acquisition of permanent employment status. In line with academic freedom and constitutional autonomy, an institution of higher learning has the discretion and prerogative to impose standards on its teachers and determine whether these have been met. Upon conclusion of the probation period, the employer has the sole prerogative to decide whether to re-hire the probationer.

Notwithstanding the SSC Faculty Manual, private educational institutions must supplementarily refer to prevailing standards set by government agencies. Under the 1992 Manual of Regulations for Private Schools, Section 44(c) requires that tertiary faculty for undergraduate courses be holders of a master's degree to teach largely in their major field, and Section 45 requires full-time academic personnel to possess at least the minimum academic qualifications prescribed by the Department. This minimum requirement is neither subject to the school's prerogative nor to agreement between the parties, and must be deemed impliedly written in employment contracts. The issue of whether probationers were informed of this requirement is no longer material, as those seeking to be educators are presumed to know these mandated qualifications.

Because Manaois failed to satisfy the academic requirements, she may only be considered a part-time instructor pursuant to Section 45 of the 1992 Manual. Citing Lacuesta vs. Ateneo de Manila University, the Court held that a part-time member of the academic personnel cannot acquire permanence of employment and security of tenure under the Manual of Regulations in relation to the Labor Code. The requisites to acquire permanent employment 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. Since Manaois could not legally be considered a full-time teacher without a master's degree, she could not acquire permanent status, and SSC had no legal obligation to reappoint her.

• Probationary Employment — Probationary employment refers to the trial stage or period during which the employer examines the competency and qualifications of job applicants and determines whether they are qualified to be extended permanent employment status. Under Article 281 of the Labor Code, the services of a probationary employee may be terminated for a just cause or when the employee fails to qualify as a regular employee in accordance with reasonable standards made known by the employer at the time of engagement. The Court applied this doctrine to hold that Manaois's failure to meet the master's degree requirement — a reasonable standard made known through her contract and correspondence — justified the nonrenewal of her contract.

• Academic Freedom and Constitutional Autonomy of Educational Institutions — An institution of higher learning has the discretion and prerogative to impose standards on its teachers and determine whether these have been met. Upon conclusion of the probation period, the college or university, being the employer, has the sole prerogative to make a decision on whether or not to re-hire the probationer. The probationer cannot automatically assert the acquisition of security of tenure and force the employer to renew the employment contract. The Court applied this doctrine to uphold SSC's decision not to renew Manaois's contract.

• Mandatory Minimum Faculty Qualifications Under the 1992 Manual — Under Section 44(c) of the 1992 Manual of Regulations for Private Schools, tertiary faculty for undergraduate courses must be holders of a master's degree to teach largely in their major field. Section 45 requires full-time academic personnel to possess at least the minimum academic qualifications prescribed by the Department. This minimum requirement is neither subject to the school's prerogative nor to agreement between the parties, and must be deemed impliedly written in employment contracts. The Court held that the issue of whether probationers were informed of this requirement is no longer material, as those seeking to be educators are presumed to know these mandated qualifications.

• Part-Time Faculty Cannot Acquire Permanent Status — A part-time member of the academic personnel cannot acquire permanence of employment and security of tenure under the Manual of Regulations in relation to the Labor Code. The requisites to acquire permanent employment 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. The Court applied this doctrine to hold that since Manaois failed to meet the master's degree requirement, she could only be considered a part-time instructor and thus could not acquire permanent status.

• "The contract she signed clearly incorporates the rules, regulations, and employment conditions contained in the SSC Faculty Manual." — This passage establishes that the employment contract incorporated the Faculty Manual's requirements, including the master's degree criterion for permanency, making the requirement binding on Manaois.

• "Thus, pursuant to the 1992 Manual, private educational institutions in the tertiary level may extend 'full-time faculty' status only to those who possess, inter alia, a master's degree in the field of study that will be taught. This minimum requirement is neither subject to the prerogative of the school nor to the agreement between the parties. For all intents and purposes, this qualification must be deemed impliedly written in the employment contracts between private educational institutions and prospective faculty members." — This passage articulates the controlling doctrine that the master's degree requirement is mandatory and cannot be waived by the parties, forming the ratio decidendi of the case.

• "The issue of whether probationers were informed of this academic requirement before they were engaged as probationary employees is thus no longer material, as those who are seeking to be educators are presumed to know these mandated qualifications." — This passage establishes the presumption of knowledge of mandated academic qualifications, rendering the notice requirement immaterial under the 1992 Manual.

• "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." — This passage, quoted from Lacuesta v. Ateneo de Manila University, reiterates the rule that completion of the probationary period alone does not confer permanent status.

• Lacuesta vs. Ateneo de Manila University, 513 Phil. 329 (2005) — Controlling precedent quoted extensively for the requisites to acquire permanent employment and the rule that a part-time teacher cannot acquire permanent status; also cited for the proposition that completing the probation period does not automatically qualify an employee for permanent status.

• Colegio del Santisimo Rosario vs. Rojo, G.R. No. 170388, 4 September 2013 — Cited for the definition of probationary employment and for the rule that private educational institutions must supplementarily refer to prevailing standards set by government agencies.

• Mercado vs. AMA Computer College-Parañaque City, Inc., G.R. No. 183572, 13 April 2010 — Cited for the definition of probationary employment and the supplementary reference to government standards.

• Magis Young Achievers' Learning Center vs. Manalo, G.R. No. 178835, 13 February 2009 — Cited for the definition of probationary employment and the supplementary reference to government standards.

• International Catholic Migration Commission vs. National Labor Relations Commission, 251 Phil. 560 (1989) — Cited for the definition of probationary employment.

• University of Santo Tomas vs. National Labor Relations Commission, 261 Phil. 483 (1990) — Cited for the rule that mere completion of probation does not guarantee permanent status and that part-time faculty cannot acquire permanent status.

• La Salette of Santiago, Inc. vs. National Labor Relations Commission, G.R. No. 82918, 11 March 1991 — Cited in the line of cases holding that probationers can only qualify upon fulfillment of reasonable standards for permanent employment.

• Cagayan Capitol College vs. National Labor Relations Commission, G.R. Nos. 90010-11, 14 September 1990 — Cited in the line of cases on probationary employment standards and part-time faculty status.

• Article 281, Labor Code, as amended — Governs probationary employment, providing that probationary employment shall not exceed six months unless covered by an apprenticeship agreement stipulating a longer period, and that services may be terminated for a just cause or when the employee fails to qualify as a regular employee in accordance with reasonable standards made known at the time of engagement. The Court applied this provision to determine whether Manaois's nonrenewal was justified.

• Section 44(c), 1992 Manual of Regulations for Private Schools — Sets the minimum faculty qualifications for tertiary level, requiring that faculty for undergraduate courses be holders of a master's degree to teach largely in their major field. The Court held this requirement is mandatory and deemed impliedly written in employment contracts.

• Section 45, 1992 Manual of Regulations for Private Schools — Defines full-time academic personnel as those who possess at least the minimum academic qualifications prescribed by the Department, among other requirements. The Court applied this provision to classify Manaois as a part-time instructor due to her failure to meet the master's degree requirement.

• Section 89, 1992 Manual of Regulations for Private Schools — Governs conditions of employment, providing that employment of teaching and non-teaching academic personnel shall be governed by rules promulgated by the Department of Education, Culture and Sports and the Department of Labor and Employment.

• Section 92, 1992 Manual of Regulations for Private Schools — Governs the probationary period for academic personnel, providing that the probationary period shall not be more than six consecutive regular semesters of satisfactory service for those in the tertiary level.

• Section 93, 1992 Manual of Regulations for Private Schools — Provides that those who have served the probationary period shall be made regular or permanent, and that full-time teachers who have satisfactorily completed their probationary period shall be considered regular or permanent. The Court interpreted this provision in conjunction with the full-time requirement under Section 45.

• Section 47, 1992 Manual of Regulations for Private Schools — Governs faculty classification and ranking at the tertiary level, providing that academic teaching positions shall be classified in accordance with academic qualifications, training, and scholarship.

• Associate Justice Teresita J. Leonardo-de Castro
• Associate Justice Lucas P. Bersamin
• Associate Justice Martin S. Villarama, Jr.
• Associate Justice Bienvenido L. Reyes