A, B, and C were employees of XYZ Land Transport Bus Company (XYZ). They were dismissed from employment and subsequently filed complaints for illegal dismissal. The Labor Arbiter (LA) ruled that they were illegally dismissed and ordered their reinstatement. The National Labor Relations Commission (NLRC) initially reversed the LA’s decision but, upon the employees’ motion for reconsideration, reinstated the LA’s ruling. A, B, and C, thereafter sought execution of the reinstatement order. While the case was pending before the Court of Appeals (CA), A, B, and C received reinstatement wages pursuant to the LA’s order. The Court of Appeals (CA) eventually reversed the NLRC’s decision and declared the dismissal valid. XYZ argues that A, B, and C should return the reinstatement wages they received because they were ultimately found to have been legally dismissed.

Are A, B and C required to return the reinstatement wages they received? (Bar 2026 Syllabus)