In the Philippines, employers have discretion in granting sabbatical leaves, which are not considered an employee’s right. This case clarifies that denying such leave, even if delayed, does not automatically constitute bad faith unless proven otherwise, emphasizing the importance of due process and established procedures within organizations like the University of the Philippines.

When a Professor’s Sabbatical Dreams Meet University Realities: Was There an Abuse of Discretion?

Elizabeth L. Diaz, a long-time associate professor at the University of the Philippines (U.P.), found herself in a legal battle after her application for a sabbatical leave was denied. This denial led to a dispute over unpaid salaries and allegations of bad faith against university officials. The central question before the Supreme Court was whether the actions of U.P. officials, in denying the sabbatical and withholding Diaz’s salary, constituted an abuse of their rights and a breach of their duties under the Civil Code.

The heart of Diaz’s complaint rested on Articles 19 and 20 of the Civil Code, which emphasize acting with justice, giving everyone their due, observing honesty and good faith, and the obligation to indemnify for damages caused willfully or negligently. Article 19 is crucial because it sets a “primordial limitation on all rights,” requiring that every person act with justice and good faith in exercising their rights and performing their duties. To establish an abuse of right under Article 19, it must be shown that there was a legal right or duty, that it was exercised in bad faith, and that the sole intent was to prejudice or injure another. The Supreme Court needed to determine whether the U.P. officials acted in bad faith when they denied Diaz’s sabbatical leave and subsequently withheld her salaries.

To understand bad faith, the Supreme Court has consistently held that it involves more than just bad judgment or simple negligence. Instead, it necessitates a dishonest purpose, moral wrongdoing, a breach of a known duty, or ill will that resembles fraud. This requires proving that the actions were driven by malice or an intention to do unjustifiable harm. In this case, Diaz needed to demonstrate that the university officials had acted with a dishonest motive or ill will to prove her claims under Articles 19 and 20.

The Supreme Court emphasized that granting a sabbatical leave is not a right but a privilege, subject to the employer’s discretion and the exigencies of the service. It highlighted that the Ombudsman had previously found no manifest partiality, evident bad faith, or gross inexcusable negligence on the part of the U.P. officials. This prior finding was crucial, as it indicated that the denial was based on legitimate reasons rather than malicious intent. The Court of Appeals echoed this sentiment, stating that the denial was a “collegial decision based on U.P.’s established rules,” influenced by factors such as a shortage of teaching staff.

The Court also pointed out that Diaz was given the opportunity to provide additional information to support her application, indicating that the officials were open to considering her request. This contradicted any claim of deliberate intent to deny her leave. While the Regional Trial Court (RTC) initially ruled in favor of Diaz, it did so based on the delay in resolving her application, not the denial itself. It’s also important to note that Diaz never questioned that specific aspect in her appeal, meaning the focus was on the delay and alleged damages resulting from it.

Regarding the delay in the resolution of Diaz’s sabbatical leave application, the Supreme Court found no evidence of bad faith. The Court acknowledged that good faith is presumed, and the burden of proving bad faith rests on the party alleging it. The delay, according to the Court, was partly due to Diaz’s failure to follow the usual procedure, which prolonged the processing of her application. She failed to provide sufficient evidence that the delay was intentional or meant to harm her. Further, the Supreme Court clarified that the rule requiring sabbatical leave applications to be filed at least one semester before its intended effectivity was imposed in 1990, and therefore should not be counted against Diaz as she applied in 1988.

The Supreme Court then addressed the issue of Diaz’s unpaid salaries. The Court found that the denial of her salaries during the first semester of Academic Year (AY) 1988-1989 was due to the university removing her name from the teaching schedule without her prior knowledge, under the presumption that her sabbatical leave would be approved. As such, this unilateral action by the university entitled Diaz to her salary for that period. However, the Court also acknowledged that Diaz refused to submit the necessary Report for Duty form, which was a standard requirement for all U.P. employees to receive their salaries, and she was still expected to comply with this reasonable requirement.

The Court ruled that she was entitled to her withheld salaries from July 1, 1988, to October 31, 1988 (the semester where her name was unilaterally removed from the teaching schedule), but she must comply with the Report for Duty form requirement to receive payment for other periods of service. The Court also affirmed the principle of damnum absque injuria, meaning that damages resulting from an act that does not amount to a legal wrong are not compensable. Because there was no abuse of rights by the respondents, they were not liable for moral or exemplary damages, nor for attorney’s fees. The Court then cited Nacar v. Gallery Frames in dictating the legal interest due.

FAQs

What was the key issue in this case?	The key issue was whether the University of the Philippines officials acted in bad faith by denying Elizabeth Diaz’s sabbatical leave application and withholding her salaries, thus violating her rights under the Civil Code.
Is a sabbatical leave a right in the Philippines?	No, a sabbatical leave is considered a privilege, not a right. Its grant is subject to the employer’s discretion and the needs of the organization.
What is needed to prove an abuse of rights under Article 19 of the Civil Code?	To prove an abuse of rights, it must be shown that there was a legal right or duty, that it was exercised in bad faith, and that the sole intent was to prejudice or injure another.
What constitutes bad faith in this context?	Bad faith involves a dishonest purpose, moral wrongdoing, a breach of a known duty, or ill will that resembles fraud, rather than mere negligence or poor judgment.
Why were Diaz’s salaries withheld?	Diaz’s salaries were initially withheld because she did not teach during the first semester of AY 1988-1989, and later due to her refusal to comply with the university’s requirement to submit a Report for Duty form.
Was Diaz completely denied her salaries?	No, the Supreme Court ruled that Diaz was entitled to her salary for the semester where her name was unilaterally removed from the teaching schedule. However, for other periods, she needed to comply with the Report for Duty form requirement.
What is damnum absque injuria?	Damnum absque injuria means damage without injury. It refers to a situation where damages result from an act that does not amount to a legal wrong, and therefore, are not compensable.
Did the Court award moral and exemplary damages?	No, the Court did not award moral and exemplary damages because it found that the university officials had not acted in bad faith or with malicious intent.

This case underscores the importance of balancing employee rights with employer discretion, particularly in the context of academic institutions. While employees are expected to fulfill their duties and comply with established procedures, employers must also act in good faith and ensure fair treatment. This decision reinforces the principle that privileges like sabbatical leaves are subject to institutional needs and regulations, but also highlights the need for transparency and procedural fairness in handling employee benefits and compensation.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Elizabeth L. Diaz vs. Georgina R. Encanto, et al., G.R. No. 171303, January 20, 2016