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Question 15

2024 Bar · Labor Law · 1 sub-question

15. Thalia, the owner of Quinn Karaoke Club (QKC), hired Darrence as an accountant. On January 19, 2023, QKC’s owner verbally informed Darrence to look for another job and banned him from the club. Darrence filed against QKC a complaint for illegal dismissal. Meantime, Darrence was hired as an accountant in another company on February 14, 2023. In its answer, QKC countered that Darrence abandoned his work in favor of a better paying job. On June 22, 2024, QKC ceased business. In due course, the Labor Arbiter declared Darrence unjustly dismissed from work and awarded him full backwages computed from January 19, 2023, when he was verbally dismissed, until June 22, 2024, when QKC stopped operations. Thalia sought reconsideration and invoked the principles of “no work no pay” and “unjust enrichment.” Thalia argued that Darrence’s salaries earned from another employer should be deducted from the award of backwages. The Labor Arbiter granted the motion and recomputed backwages from January 19, 2023, Darrence’s date of illegal dismissal, until February 14, 2023, when another employer hired him. Is the Labor Arbiter correct in limiting the period for computing the award of backwages? Explain.

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