The Supreme Court (SC) upheld the ruling of Court of Appeals (CA) which stopped the labor arbiter to continue the proceedings of the illegal dismissal cases filed by two employees of the Uniwide Sales Warehouse Club Inc. (USWCI) while the proceedings of the Securities and Exchange Commission (SEC) for corporation’s rehabilitation is pending.

In a 12-page decision penned by Associate Justice Renato C. Corona, the SC Third Division affirmed the decision of CA rendered on February 9, 2005 which ruled that proceedings on the cases of illegal dismissal should remain suspended until further orders from the SEC regarding USWCI’s rehabilitation.

The SC denied the petition for review on certiorari of the February 9, 2005 decision and June 28, 2005 resolution of the CA filed by Gina M. Tiangco and Salvacion Jenny Manego.

The petitioners were employees of respondent USWCI, a domestic corporation. Respondent Jimmy N. Gow was the president of the corporation.

Tiangco was employed by USWCI on June 10, 1997 as concession manager.

In 1998, she was designated as group merchandising manager for the fashion and personal care department with a monthly salary of P45,000.

Manego was initially employed as buyer on January 16, 1984 but was promoted as senior category head with a monthly salary of P25,000

On July 5, 2001 and July 13, 2001, petitioners Tiangco and Manego respectively filed separate complaints for illegal dismissal, payment of separation pay as well as an award of moral and exemplary damages in the National Labor Relations Commission (NLRC). The complaints docketed as NLRC NCR Case Nos. 00-09-03512-2001 and 00-09-04757-2001 were consolidated.