Son vs. University of Santo Tomas

A provision in a Collective Bargaining Agreement that grants tenure to faculty members who do not possess the required master's degree is void for contravening statutory and administrative regulations prescribing minimum qualifications for academic personnel, and probationary faculty members may be lawfully terminated for failure to obtain the requisite qualifications despite continued employment beyond the probationary period.

Petitioners Raymond A. Son, Raymond S. Antiola, and Wilfredo E. Pollarco were full-time professors at the University of Santo Tomas (UST) Colleges of Fine Arts and Design and Philosophy, hired in 2004 and 2005 on probationary status with the express condition that they obtain master's degrees before the expiration of the probationary period. Despite enrolling in master's programs, they failed to complete their degrees but continued teaching beyond the prescribed completion period. In March 2010, the Commission on Higher Education (CHED) issued a memorandum directing strict implementation of minimum faculty qualifications under Memorandum Order No. 40-08, which required master's degrees for undergraduate program faculty. Acting on this directive, UST notified affected faculty members of its decision to cease re-appointing those without master's degrees, allowing written appeals only from those due for thesis defense. Petitioners did not submit appeals, believing they had acquired tenure by default under the 2006-2011 UST Faculty Union CBA, which provided that faculty members made to serve despite lacking master's degrees shall be deemed to have attained tenure. On June 11, 2010, UST terminated petitioners' employment for failure to obtain the required degrees.

• Petitioners Raymond A. Son, Raymond S. Antiola, and Wilfredo E. Pollarco were full-time professors at the University of Santo Tomas (UST) Colleges of Fine Arts and Design and Philosophy, and members of the UST Faculty Union.
• Son and Antiola were hired in June 2005, while Pollarco was hired in June 2004, all on probationary status as "faculty member[s] on PROBATIONARY status" under appointment papers stating that accession to tenure was conditioned on meeting university requirements, including possession of a prerequisite graduate degree before expiration of the probationary period.
• The 2006-2011 UST-UST Faculty Union CBA provided in Article XV, Section 1 that a tenured faculty member is one given a tenure track appointment who has rendered six consecutive semesters of satisfactory service on a full-time basis carrying a fifteen-unit load or more.
• The same CBA provision stated that although a master's degree is an entry requirement, a faculty member admitted to serve without a master's degree shall finish the degree in five semesters, and if made to serve further despite lacking the degree, "he shall be deemed to have attained tenure."
• DECS Order No. 92 (Series of 1992) or the Revised Manual of Regulations for Private Schools, and subsequently CHED Memorandum Order No. 40-08 (Manual of Regulations for Private Higher Education of 2008), required that faculty in undergraduate programs must be holders of a master's degree to teach mainly in their major field.
• Petitioners did not possess the required master's degrees but were hired on the condition that they fulfill the requirement within the prescribed period; they enrolled in master's programs but were unable to finish.
• Despite their failure to obtain the required degrees, petitioners continued to teach beyond the period given for completion.
• On March 3, 2010, CHED Chairman Emmanuel Angeles issued a Memorandum directing strict implementation of minimum qualification requirements for faculty members, particularly the master's degree requirement under Memorandum Order No. 40-08.
• Acting on this directive, UST wrote petitioners and other affected faculty members informing them of the decision to cease re-appointment of those who failed to complete their master's degrees, but allowed written appeals from those due for thesis defense or completion.
• Petitioners did not make written appeals, operating under the belief that they had been vested tenure under the CBA provision for their continued employment despite failure to obtain the required degrees.
• On June 11, 2010, petitioners received termination letters signed by Dr. Cynthia Loza, Dean of the College of Fine Arts and Design, citing failure to obtain the required master's degree as the reason for non-renewal of appointments.

• Petitioners claimed they were illegally dismissed because they had already acquired tenure by default pursuant to the tenure provision in the CBA, which constitutes the law between the parties.
• They argued that the UST-UST Faculty Union CBA provisions should be observed and prevail over CHED Memorandum Order No. 40-08.
• They contended that they were terminated for their refusal to submit the prescribed appeal letter, which constituted an undue waiver of their tenurial rights and was against law and public policy.
• They asserted that respondents violated the "twin-notice rule" in terminating their employment.
• They claimed respondents were guilty of bad faith and unfair labor practice for discriminating against them while re-hiring other professors who also did not possess the required master's degrees.
• They argued that respondents should have allowed them to finish their master's degrees since they were only awaiting thesis defense, and that the true reason for removal was their refusal to waive their acquired tenure rights.
• They maintained that CHED did not direct the removal of faculty members but only the strict implementation of faculty development programs.

• Respondents argued that there was no unfair labor practice committed because the CBA provision adverted to is not an economic provision.
• They contended that CHED Memorandum Order No. 40-08 takes legal precedence over the parties' CBA because it is an administrative regulation equivalent to law that has the effect of abrogating the tenure provision of the CBA.
• They asserted that the CBA provision granting tenure by default has become illegal as it is contrary to law and cannot be the object of estoppel.
• They argued that petitioners could not have acquired tenure since they did not possess the minimum qualification of a master's degree prescribed under the administrative regulations.
• They maintained that in not renewing petitioners' probationary appointments, they observed due process and Article 281 of the Labor Code, which allows termination of probationary employees who fail to qualify as regular employees in accordance with reasonable standards made known at the time of engagement.
• They invoked academic freedom and management prerogative as guarantees protected by the Constitution, giving the school the right to determine who may teach and to set high standards of efficiency for its teachers.
• They argued that the requirement of a master's degree is a mandatory qualification that may not be the subject of agreement between the school and the professor, citing precedent establishing that this requirement is deemed impliedly written in employment contracts.

• Procedural Issues:
  • N/A
• Substantive Issues:
  • Whether the CBA provision granting "tenure by default" to faculty members without master's degrees prevails over CHED Memorandum Order No. 40-08 and DECS Order No. 92 (Series of 1992) requiring master's degrees as minimum qualifications for undergraduate faculty.
  • Whether petitioners were illegally dismissed when terminated for failure to obtain the required master's degrees despite continued employment beyond the probationary period.
  • Whether respondents are estopped from enforcing the master's degree requirement after allowing petitioners to continue teaching without said degrees.

• Procedural:
  • N/A
• Substantive:
  • The CBA provision on tenure by default is void ab initio for being contrary to law, specifically DECS Order No. 92 (Series of 1992) and CHED Memorandum Order No. 40-08, which mandate that faculty members in undergraduate programs must possess master's degrees; a void contract produces no civil effect and does not create juridical relations.
  • The requirement of a master's degree for undergraduate faculty has been in place since 1992 and is deemed impliedly written into every employment contract between private educational institutions and prospective faculty members; those seeking to be educators are presumed to know these mandated qualifications.
  • Petitioners remained probationary employees and could be validly terminated under Article 281 of the Labor Code for failure to qualify as regular employees in accordance with reasonable standards made known at the time of their engagement.
  • The doctrine of estoppel cannot operate to give effect to an act which is otherwise null and void or ultra vires; no estoppel can be predicated on an illegal act, and waiver of the master's degree requirement would prejudice the rights of students and the public.
  • Both parties stand in pari delicto as they both violated the law—respondents for maintaining professors without mandated qualifications, and petitioners for agreeing to be employed despite knowing they lacked necessary qualifications; under the pari delicto doctrine, neither party can recover from the other.
  • Academic freedom guaranteed under Section 5(2), Article XIV of the 1987 Constitution includes the right of the school to determine who may teach and to set reasonable standards for its teachers, which right is protected as long as the standards fixed are reasonable and not arbitrary.

• In pari delicto — A doctrine holding that when two parties are equally culpable or guilty of an illegal act, neither may recover from the other, and courts will leave the parties where it finds them; applied to bar petitioners' claims where both parties violated DECS and CHED regulations regarding faculty qualifications.
• Void contracts (Article 1409, Civil Code) — Contracts whose cause, object, or purpose is contrary to law are inexistent and void from the beginning, producing no civil effect; applied to invalidate the CBA provision granting tenure without master's degrees.
• Incorporation of law into contracts — An existing law enters into and forms part of a valid contract without the need for express reference; applied to hold that the master's degree requirement under DECS and CHED regulations is deemed written into petitioners' employment contracts.
• Academic freedom (constitutional and institutional) — The constitutional guarantee under Section 5(2), Article XIV of the 1987 Constitution protecting institutions of higher learning, which includes the freedom to determine who may teach, what may be taught, how it shall be taught, and who may be admitted to study; applied to uphold UST's right to set and enforce faculty qualification standards.
• Management prerogative — The right of an employer to regulate all aspects of employment, including hiring, work assignments, and dismissal, provided the standards fixed are reasonable and not arbitrary; applied to support UST's decision to terminate probationary employees who failed to meet qualification standards.
• Presumption of knowledge of mandated qualifications — Educators are presumed to know the academic qualifications mandated by law and administrative regulations for their positions; applied to reject petitioners' claim of lack of knowledge regarding the master's degree requirement.

• "While every individual has autonomy to enter into any contract, the contractual stipulations, however, must not be contrary to law, morals, good customs, public order, or public policy."
• "It is a fundamental postulate that however broad the freedom of contracting parties may be, it does not go so far as to countenance disrespect for or failure to observe a legal prescription. The statute takes precedence; a stipulation in a collective bargaining agreement must yield to it. That is to adhere to the rule of law."
• "Those who are seeking to be educators are presumed to know these mandated qualifications."
• "No estoppel can be predicated on an illegal act."
• "The doctrine of estoppel cannot operate to give effect to an act which is otherwise null and void or ultra vires."
• "Justice, fairness, and due process demand that an employer should not be penalized for situations where it had little or no participation or control."

• University of the East v. Pepanio — Controlling precedent establishing that the requirement of a master's degree for tertiary education teachers is not unreasonable but is in accord with public interest, and that CBA provisions must be read in conjunction with statutory and administrative regulations governing faculty qualifications.
• Herrera-Manaois v. St. Scholastica's College — Controlling precedent holding that full-time faculty status may be extended only to those who possess a master's degree in the field of instruction, and this requirement is neither subject to the prerogative of the school nor the agreement of the parties, but is deemed impliedly written in employment contracts.
• Escorpizo v. University of Baguio — Cited for the principle that a school CBA must be read in conjunction with statutory and administrative regulations governing faculty qualifications, and that while contracting parties may establish stipulations as they see fit, such right is subject to the limitation that the agreement must not be contrary to law or public policy.
• Lakas ng Manggagawang Makabayan (LMM) v. Abiera — Cited for the fundamental principle that a stipulation in a collective bargaining agreement must yield to statutory prescriptions.
• Peña v. National Labor Relations Commission — Cited for the principle that it is the prerogative of the school to set high standards of efficiency for its teachers since quality education is a mandate of the Constitution.
• Borromeo v. Mina — Cited for the definition that a void contract is equivalent to nothing and produces no civil effect.
• Constantino v. Heirs of Pedro Constantino, Jr. — Cited for the definition and application of the in pari delicto doctrine under Articles 1411 and 1412 of the Civil Code.
• Acebedo Optical Company, Inc. v. Court of Appeals and Eugenia v. Perdido — Cited for the principle that the doctrine of estoppel cannot operate to give effect to an act which is null and void or ultra vires, and that no estoppel can be predicated on an illegal act.

• Article 281 of the Labor Code — Provides that probationary employees may be terminated when they fail to qualify as regular employees in accordance with reasonable standards made known by the employer at the time of engagement; cited as the basis for valid termination of petitioners.
• Article 1409 of the Civil Code — Lists contracts that are inexistent and void from the beginning, including those whose cause, object, or purpose is contrary to law; cited to invalidate the CBA provision on tenure by default.
• Articles 1411 and 1412 of the Civil Code — Govern the in pari delicto doctrine, providing that when the nullity proceeds from illegality and both parties are in pari delicto, they shall have no action against each other; applied to bar petitioners' claims.
• Article 6 of the Civil Code — Provides that rights may be waived unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law; cited to invalidate any purported waiver of the master's degree requirement.
• Section 5(2), Article XIV of the 1987 Constitution — Guarantees academic freedom to institutions of higher learning; cited to uphold UST's right to determine who may teach and to set faculty qualification standards.
• Section 70 of Batas Pambansa Blg. 232 (Education Act of 1982) — Grants rule-making authority to the Minister of Education, Culture and Sports; cited as the basis for DECS Order No. 92 having the force and effect of law.
• DECS Order No. 92, Series of 1992 (Revised Manual of Regulations for Private Schools) — Specifically Article IX, Section 44, paragraph 1(a), requiring college faculty members to have a master's degree in their field of instruction as minimum qualification; cited as the controlling regulation predating the CBA.
• CHED Memorandum Order No. 40-08 (Manual of Regulations for Private Higher Education of 2008) — Requires holders of master's degrees for undergraduate program faculty; cited as carrying over the requirement from DECS Order No. 92.