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AT A GLANCE:
In the case of PAL v. Ahmee et al. and Ahmee et al., v. PAL, the Supreme Court held that the submission by the employer of the payroll or bank advisory or the acknowledgment receipt by the bank constitutes substantial evidence of payment of the employees’ salaries and monetary benefits.
The petitioners worked as pilots for PAL. They were all members of the Airline Pilots’ Association of the Philippines (ALPAP), the sole and exclusive bargaining agent of PAL pilots.
The controversy stemmed from the notice of strike filed by ALPAP with the DOLE on December 9, 1997, imputing unfair labor practice against PAL. On December 23, 1997, the DOLE Secretary issued an order assuming jurisdiction over the labor dispute. While the labor dispute was still in the process of being settled, ALPAP went on strike. Return-to-Work Order was issued by the DOLE Secretary, but the petitioners failed to report for work despite efforts by PAL to reach them. PAL then considered them as strikers, and consequently, terminated their employment.
In 2001, petitioners filed a complaint for illegal dismissal, ULP, payment of certain monetary benefits, damages, and attorney’s fees with the NLRC.
The LA dismissed the claims of illegal dismissal and unfair labor practice. As for the monetary claims, PAL presented payroll documents to prove payment, which were accepted by both the LA and the NLRC. However, the CA reversed this, stating that the documents were not sufficient proof of payment.
Issue: Whether or not submission by the employer of the payroll or bank advisory constitutes substantial evidence of payment of the employees’ salaries.
The Supreme Court’s decision
The submission by the employer of the payroll or bank advisory or the acknowledgment receipt by the bank constitutes substantial evidence of payment of the employees’ salaries and monetary benefits. Such document showing the receipt by the bank of the payroll or bank advisory will lead a reasonable person to conclude that payment has been made by the employer of the salaries and monetary benefits of the employees. Once the employer submits valid proof of the employer’s submission and corresponding receipt by the bank of the payroll or advisory, the burden of evidence will shift to the employees who will then refute the claim of payment and prove that their respective bank accounts were not credited with any amounts during the applicable periods.
Inelectably, the payrolls submitted by PAL failed to substantially prove that it paid the subject salaries and 13th month pay. Such documents only constitute substantial evidence that PAL had prepared the payrolls for the salaries. These payrolls cannot be treated as substantial evidence of payment because they failed to reflect that the same had been submitted to the bank, or that the latter had received them.
Thus, to prove payment, employers must show evidence that they transmitted a copy of the payroll or advisory to the bank, and the bank received it.
Here, the documents indicated payroll preparation but did not show submission to or receipt by the bank, failing to demonstrate actual payment.
Source:
Philippine Airlines, Inc. vs. Romeo N. Ahmee, et. al.
G.R. No. 221065 and 221164 | April 07, 2025
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