Supreme Court Ruled Fewer Money Claims Against Sari Sari Stores

Written by Nestor Lim
Edited by Rich Tijam

The Supreme Court has ruled that sari-sari stores earning minuscule profits should be meted with fewer money claim awards for equity than larger enterprises.

In the recent case of Cabug-os vs. Espina, the National Labor Relations Commission (NLRC) awarded a total of PhP 678,804.69, inter alia, to Teresita Espina, who was proven to be illegally dismissed as a 'tindera' or sales lady of the sari-sari store of Dominga Cabug-os. The NLRC computed the amount as follows:

Backwages: Php 298,539.15
Separation Pay: Php 62,100.00
Salary Differential: Php 256,524.45
13th Month Pay: Php 29,317.06
Attorney’s Fees (5% of the monetary award): Php 32,324.03
Total: Php 678,804.69

Cabug-os raised that this amount is six times her store's inventory and would likely bankrupt her.

Court found this award excessive.

The High Court said that the State recognizes the societal ubiquity and informal nature of the sari-sari stores and that they are micro retail enterprises operated mainly by family members and are established on a very meager capital. While the informal sector employees deserve all the protection given to their counterparts working in the formal sector, "the protection should not come at the expense of impoverishing those who rely on minuscule profits to get by."

Furthermore, the NLRC cannot expect a sari-sari store / 'tindahan' with such minuscule profits to apply the same labor conditions as a multinational corporation.

Hence, the Court has ordered that Dominga Cabug-os pay Teresita Espina her salaries from November 18, 2012, to December 19, 2014, at a rate of PhP 3,500.00 per month (or around PhP 84,000, more or less) as well as separation pay of one month salary for every year of service. All other awards such as salary differential, 13th month pay, and attorney's fees were deleted.

𝐃𝐨𝐦𝐢𝐧𝐠𝐚 𝐏. 𝐂𝐚𝐛𝐮𝐠-𝐎𝐬, 𝐝𝐨𝐢𝐧𝐠 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐮𝐧𝐝𝐞𝐫 𝐭𝐡𝐞 𝐧𝐚𝐦𝐞, 𝐊𝐞𝐦’𝐬 𝐒𝐭𝐨𝐫𝐞, 𝐏𝐞𝐭𝐢𝐭𝐢𝐨𝐧𝐞𝐫, 𝐯𝐬. 𝐓𝐞𝐫𝐞𝐬𝐢𝐭𝐚 𝐉𝐨𝐫𝐭𝐚 𝐄𝐬𝐩𝐢𝐧𝐚, 𝐑𝐞𝐬𝐩𝐨𝐧𝐝𝐞𝐧𝐭. (𝐆.𝐑. 𝐍𝐨. 𝟐𝟐𝟖𝟕𝟏𝟗, 𝐀𝐮𝐠𝐮𝐬𝐭 𝟖, 𝟐𝟎𝟐𝟐)

Read the full text of the case here: https://bit.ly/SariSariStoreCase