VIII. LAW ON PUBLIC OFFICERS

H. Liabilities of Public Officers

2. Illegal Dismissal, Reinstatement, and Back Salaries

The liabilities of public officers regarding illegal dismissal, reinstatement, and back salaries are crucial matters under both Administrative Law and Political Law in the Philippines. Public officers are bound by the Constitution, Civil Service laws, local government laws, and administrative rules that prescribe the lawful exercise of authority, especially in relation to disciplinary actions, including dismissal from public service. Any deviation from these laws subjects the public officer to personal liability.

Below is a comprehensive breakdown of the key aspects of illegal dismissal, reinstatement, and back salaries for public officers:

A. Concept of Illegal Dismissal

1. Definition

Illegal dismissal refers to the unjust, arbitrary, or unauthorized termination of a public officer or employee from government service. This occurs when:
- The dismissal is executed without due process of law (procedural due process).
- The grounds for dismissal are not based on lawful causes (substantive due process).
- The official who carries out the dismissal lacks the authority or jurisdiction to do so.

2. Constitutional and Legal Framework

Section 2, Article IX-B of the 1987 Philippine Constitution provides that appointments in the civil service should be based on merit and fitness, secured by competitive examination (in cases where such is required).
Public officers and employees in the civil service, under Section 36 of Presidential Decree No. 807 (Civil Service Law) and Republic Act No. 7160 (Local Government Code), can only be removed from service for just or authorized causes as provided by law.
Due Process Clause: Public officers are entitled to procedural and substantive due process before being removed or dismissed. Failure to follow these processes constitutes illegal dismissal.

3. Procedural Due Process

This includes:
- Notice: The public officer must be informed of the charges against him/her.
- Hearing: There must be a reasonable opportunity to be heard and to present evidence.
- Decision: The decision must be rendered based on substantial evidence presented during the hearing.

4. Substantive Due Process

Grounds for dismissal must be lawful, such as:
- Dishonesty
- Misconduct
- Gross neglect of duty
- Conviction of a crime involving moral turpitude
- Other offenses enumerated under Civil Service Law or special laws governing specific government agencies.

B. Reinstatement

1. Definition

Reinstatement refers to the restoration of a public officer to his or her former position or the equivalent after an adjudicatory body, such as the Civil Service Commission (CSC), the courts, or the Ombudsman, finds that the dismissal was unlawful.

2. Right to Reinstatement

A public officer or employee who is illegally dismissed is generally entitled to reinstatement. Reinstatement is a right of the illegally dismissed employee, as established by jurisprudence (e.g., Aguinaldo v. Santos).
Reinstatement must be to the exact position or its equivalent, considering factors such as rank, compensation, and duties.

3. Effects of Reinstatement

Upon reinstatement, the public officer is deemed to have continuously served in the government, meaning:
- They retain their seniority and rank.
- They are entitled to receive back salaries and benefits corresponding to the period of illegal dismissal.

4. Exceptions to Reinstatement

Impossibility of Reinstatement: If reinstatement is no longer possible due to the abolition of the position, its reorganization, or other justifiable reasons, the public officer may instead be granted a separation pay in lieu of reinstatement.
Conviction in another case: If the dismissed public officer is convicted in another administrative or criminal case, reinstatement may no longer be possible.

C. Back Salaries

1. Definition

Back salaries refer to the wages or remuneration that a public officer or employee would have earned had they not been illegally dismissed. The computation of back salaries starts from the date of illegal dismissal until actual reinstatement or until such reinstatement becomes impossible.

2. Legal Basis

Under jurisprudence, notably Felix v. Personnel Board, when a public officer is illegally dismissed and subsequently reinstated, the employer (government agency or department) is obligated to pay back salaries.
Section 53 of the Civil Service Law: "When the judgment exonerating an officer or employee is final and executory, he/she shall be considered as having been in continuous service and is entitled to the payment of his/her back salaries and other benefits."

3. Computation of Back Salaries

General Rule: Back salaries should be paid from the time of dismissal until actual reinstatement, unless otherwise provided by law.
Limitations:
- In cases of reorganization or abolition of the position, back salaries may be computed up to the point when reinstatement is rendered impossible.
- Fault on the part of the employee: If the employee delays the process of reinstatement, the period of such delay may not be counted in the computation of back salaries.
Special rule on full back wages: Some cases require the payment of full back wages, especially when the dismissal is accompanied by malice or ill intent on the part of the dismissing authority.

4. Other Entitlements

The reinstated public officer is also entitled to other benefits, such as:
- Allowances,
- Bonuses,
- Leave credits, and
- Other monetary benefits they would have received had they not been illegally dismissed.

5. Limitations on Liability

If the public officer’s illegal dismissal was a result of a bona fide error (good faith belief that the dismissal was proper), only the government agency may be liable for back salaries. However, if malice, gross negligence, or deliberate disregard of the law is found, the individual responsible for the illegal dismissal may be held personally liable.

D. Jurisprudence on Illegal Dismissal, Reinstatement, and Back Salaries

1. Doctrine of "No Work, No Pay"

The general principle in the Philippines is "no work, no pay" unless an employee’s absence from work is not due to their fault, as in cases of illegal dismissal.
In Bustamante v. NLRC, the Supreme Court ruled that an illegally dismissed employee who was reinstated is entitled to back wages because the dismissal deprived him of his right to work and earn a living through no fault of his own.

2. Doctrine of Impossibility of Reinstatement

In Casibang v. Provincial Treasurer of Nueva Vizcaya, the Supreme Court ruled that where reinstatement becomes impossible due to the abolition of the position or for any valid reason, back salaries may still be awarded up to the date when reinstatement became impossible.

3. Personal Liability of Public Officials

Haro v. Court of Appeals held that public officers who act in bad faith, or with evident malice or gross negligence, in dismissing an employee may be held personally liable for damages, including back salaries.
In Rosales v. CA, the Supreme Court held that individual public officials can be personally liable for back wages if it is proven that they acted beyond the bounds of their authority or with malice.

Conclusion

Illegal dismissal, reinstatement, and back salaries of public officers are covered by stringent legal standards in the Philippines. The key elements include ensuring procedural and substantive due process, the right to reinstatement when a dismissal is found to be illegal, and the entitlement to back salaries covering the period of unjust separation from service. Courts and administrative bodies like the Civil Service Commission safeguard these rights by mandating the reinstatement of illegally dismissed employees and the payment of all wages lost due to the unlawful dismissal, subject to certain limitations and exceptions. Public officers who fail to adhere to these standards may be held personally accountable for any wrongful dismissal that occurs under their watch.