SM Agri and General Machineries vs. NLRC

Where the last day of the 10-day appeal period under Article 223 of the Labor Code falls on a Sunday or legal holiday, the appeal may be filed on the next business day under Section 31, Article VIII of the Revised Administrative Code; the rule that the 10-day period consists of calendar days does not preclude this exception. A Saturday not legally declared a holiday remains a business day, so the exception applies only when the last day is a Sunday or legal holiday.

Vivencio Abo was employed by SM Industries, later renamed SM Agricultural and General Machineries, as Officer-in-Charge of a branch office. The statutory backdrop includes Article 223 of the Labor Code, which fixes a 10-day period to appeal a Labor Arbiter's decision to the NLRC, and Section 31, Article VIII of the Revised Administrative Code, which provides that when the last day for doing an act required by law falls on a holiday, the act may be done on the next succeeding business day.

Vivencio Abo was first employed on August 2, 1976, by SM Industries as Officer-in-Charge (OIC) of a branch office. In 1981, SM Industries changed its business name to SM Agricultural and General Machineries, where Abo remained as OIC until his termination from employment on May 31, 1982. Abo filed a complaint with the Ministry of Labor and Employment, docketed as Case No. RAB-V-No. 0891-82, charging petitioner with unlawful dismissal and praying for an award of damages. Petitioner's defense was that Abo had willfully disobeyed orders by refusing to report sales, collection reports, and monthly allowance since his appointment as OIC in January 1981, which, according to petitioner, rendered the termination lawful.

The Labor Arbiter rendered a decision on March 29, 1984, in favor of private respondent. A copy of the decision was received by petitioner on April 10, 1984. The dispositive portion ordered petitioner to reinstate Abo with backwages without loss of seniority rights and other privileges from June 1982 for a limited period of three years; to pay unpaid salary for two years in the amount of P10,000.00; emergency allowances of P7,920.00 covering July 1980 to June 1982; 13th month pay for the last three years in the sum of P1,350.00; service incentive leave of five days in the sum of P257.96; moral damages of P30,000.00; exemplary damages of P15,000.00; and attorney's fees equivalent to 10% of the total claim.

From the Labor Arbiter's decision, petitioner filed an appeal by registered mail on April 23, 1984, raising serious errors in the findings of fact, excessive award of money claims, and lack of authority to award damages. The 10-day period under Article 223 of the Labor Code began from petitioner's receipt of the decision on April 10, 1984, making April 20, 1984 the 10th calendar day and the last day to appeal. April 20, 1984 was Good Friday, a legal holiday, and April 21, 1984, a Saturday, was also declared a non-working public holiday by Presidential Proclamation No. 2353. The next business day was April 23, 1984, a Monday, and petitioner filed the appeal on that date.

The NLRC dismissed the appeal as late, and after reconsideration was denied, petitioner filed the present petition for certiorari. The records show that petitioner actually received the Labor Arbiter's decision on April 10, 1984, and that the appeal was filed on April 23, 1984.

• Computation of the 10-Day Period: Petitioner argued that the appeal was filed within the reglementary 10-day period under Article 223 of the Labor Code because it was physically impossible to file on April 20, 1984, Good Friday, a legal holiday, and it filed on April 23, 1984, Monday, the first business day after the legal holiday.
• Non-Strict Application: Petitioner admitted that the appeal was filed on the 13th day but maintained that the computation of the 10-day period should not be strictly applied to the case.
• Grave Abuse of Discretion: Petitioner assailed the NLRC resolutions and contended that the NLRC committed grave abuse of discretion in dismissing the appeal as tardy.
• Merits of the Appeal: Petitioner's appeal raised serious errors in the findings of fact, excessive award of money claims, and lack of authority to award damages.

• Tardiness: Public respondent NLRC maintained that the appeal was filed out of time because petitioner received the Labor Arbiter's decision on April 10, 1984 but filed the appeal only on April 23, 1984, or 13 days later.
• Calendar Days under Article 223: Public respondent argued that under Article 223, as interpreted in Vir-Jen Shipping, the 10-day period consists of 10 calendar days, not 10 working days, so Saturdays, Sundays, and legal holidays are included in the computation.
• Last Day Not Extended: Public respondent contended that April 20, 1984 remained the last day to appeal and that the fact it was a legal holiday did not move the deadline to the next business day.

• Grave Abuse of Discretion: Whether the NLRC committed grave abuse of discretion in dismissing petitioner's appeal on the ground of tardiness or late filing.
• Computation of the 10-Day Appeal Period: Whether the 10-day period under Article 223 of the Labor Code, counted in calendar days, may be extended to the next business day when the 10th day falls on a legal holiday.
• Effect of Non-Working Saturday: Whether the next business day for filing was April 23, 1984, given that April 20, 1984 was Good Friday and April 21, 1984 was declared a non-working public holiday by Presidential Proclamation No. 2353.

• Grave Abuse of Discretion: Yes. The NLRC erred in dismissing the appeal as out of time because the last day to appeal fell on a legal holiday and the appeal was filed on the next business day.
• Computation of the 10-Day Appeal Period: The 10-day period under Article 223 consists of calendar days, but where the 10th day falls on a Sunday or legal holiday, the appeal may be filed on the next business day under Section 31, Article VIII of the Revised Administrative Code.
• Effect of Non-Working Saturday: April 23, 1984 was the next business day. April 20, 1984 was Good Friday, and April 21, 1984 was declared a non-working public holiday; a Saturday not declared a holiday would otherwise remain a business day.

• Grave Abuse of Discretion: The Labor Arbiter's decision was received on April 10, 1984. Under Article 223 of the Labor Code, the appeal had to be filed within 10 days, making April 20, 1984 the 10th calendar day and the last day to appeal. Because April 20, 1984 was Good Friday, a legal holiday, and April 21, 1984, a Saturday, was also declared a non-working public holiday by Presidential Proclamation No. 2353, the next business day was April 23, 1984, a Monday. Petitioner filed the appeal on that date. Section 31, Article VIII of the Revised Administrative Code provides that where the day, or the last day, for doing any act required or permitted by law falls on a holiday, the act may be done on the next succeeding business day. The NLRC therefore erred in dismissing the appeal as late, and the Court did not reach the merits of the appeal.
• Computation of the 10-Day Appeal Period: The Court reiterated Vir-Jen Shipping that the 10-day period under Article 223 refers to 10 calendar days, not 10 working days, so Saturdays, Sundays, and legal holidays are included in counting the period. That rule, however, does not govern where the legal holiday is the 10th or last day to appeal. Vir-Jen Shipping contemplates a holiday falling within the period between receipt of the decision and the last day; it does not address the situation where the 10th day itself is a Sunday or legal holiday. In the latter case, Section 31, Article VIII of the Revised Administrative Code applies, and the appeal may be filed on the next business day. The Court recognized this as an exception to the general rule. A Saturday, unless legally declared a holiday, is considered a business day; if the last day to appeal falls on a Saturday, the act is still due on that day and not on the next succeeding business day. Here, April 21, 1984 was declared a non-working public holiday, so the appeal filed on Monday, April 23, 1984, was timely.
• Effect of Non-Working Saturday: April 21, 1984 was declared a non-working public holiday by Presidential Proclamation No. 2353. Because April 20, 1984 was Good Friday and April 21, 1984 was a non-working public holiday, the next business day was April 23, 1984. The Court noted that Saturday, unless legally declared a holiday, is considered a business day; if the last day to appeal falls on a Saturday, the act is due on that day. The proclamation made April 21 a non-working holiday, so the filing on April 23 was timely.

• Pretermission of Holiday under Section 31, Article VIII of the Revised Administrative Code — When the day, or the last day, for doing any act required or permitted by law falls on a holiday, the act may be done on the next succeeding business day. The Court applied this provision to allow an appeal from a Labor Arbiter's decision to the NLRC to be filed on the next business day when the 10th day of the appeal period fell on Good Friday.
• 10-Day Appeal Period under Article 223 of the Labor Code — Decisions, awards, or orders of Labor Arbiters are final and executory unless appealed to the NLRC within 10 days from receipt. The period is counted in calendar days, not working days, so Saturdays, Sundays, and legal holidays are included in the computation. The Court reaffirmed this rule from Vir-Jen Shipping.
• Exception to the Calendar-Day Rule — Where the 10th or last day to appeal falls on a Sunday or legal holiday, the appeal may be filed on the next business day. This exception does not apply where a holiday merely falls within the 10-day period; in that case, the holiday is included in the count. The Court distinguished Vir-Jen Shipping on this basis.
• Saturday as a Business Day — A Saturday, unless legally declared a holiday, is considered a business day. If the last day to appeal falls on a Saturday, the act is still due on that day and not on the next succeeding business day. In this case, April 21, 1984 was declared a non-working public holiday, so the next business day was Monday, April 23, 1984.

• "We sustain petitioner's argument that when the last day for filing an appeal falls on a legal Holiday, the same can be filed on the next business day following said Legal Holiday." — States the core ruling that excuses filing on the next business day when the last day falls on a legal holiday.
• "Sec. 31. Pretermission of Holiday. — Where the day, or the last day, for doing any act required or permitted by law falls on a holiday, the act may be done on the next succeeding business day." — Sets out the statutory basis for the Court's ruling.
• "Therefore, while upholding the interpretation made in the Vir-Jen Shipping case that the 10-day period fixed by Art. 223 of the Labor Code contemplates calendar days and not working days, the court recognizes an exception to this general rule, i.e., where the 10th day is a Sunday or a Legal Holiday, in which event, the appeal can be filed on the next business day." — Defines the exception to the calendar-day rule and distinguishes Vir-Jen Shipping.
• "To be noted is the fact that Saturday (unless legally declared a holiday) is considered a business day and therefore if the last day to appeal falls on a Saturday, the act is still due on that day and not on the next succeeding business day." — Clarifies the treatment of Saturdays and explains why the declared non-working Saturday in this case made Monday the next business day.

• Vir-Jen Shipping Corporation and Marine Services vs. National Labor Relations Commission, G.R. No. 58011, 115 SCRA 347 (July 20, 1982) — The Court reiterated the doctrine that the 10-day period under Article 223 of the Labor Code refers to 10 calendar days, not 10 working days, but distinguished the case because there the legal holiday was the 10th or last day to appeal, not merely a holiday within the period.

• Article 223, Labor Code of the Philippines — Provides that decisions, awards, or orders of Labor Arbiters or compulsory arbitrators are final and executory unless appealed to the Commission within 10 days from receipt. The Court held the period is 10 calendar days, subject to the exception when the last day falls on a Sunday or legal holiday.
• Section 31, Article VIII, Revised Administrative Code — Provides for pretermission of holiday: where the day, or the last day, for doing any act required or permitted by law falls on a holiday, the act may be done on the next succeeding business day. The Court applied this to allow the appeal filed on April 23, 1984.

Melencio-Herrera (Chairperson), Paras, Sarmiento, and Regalado, JJ., concur.