Guidelines on Awarding Moral and Exemplary Damages

April 20, 2001NLRC MEMORANDUM CIRCULAR NO. 4-01-01 TO :All Executive/Labor Arbiters      FROM :The Chairman      SUBJECT :Guidelines on Awarding Moral and Exemplary Damages  For a long time now, our clientele, especially from the employer sector has been complaining about the supposed wanton disregard by our Labor Arbiters of the law on damages in their disposition of cases. Principally, complaints about the lack of legal and factual bases with which moral and exemplary damages are being awarded were raised. Worse, it has been alleged that damages are being awarded in unconscionable amounts. To address said concerns and to avoid the impression that awards were being secured "through fraud or . . . graft and corruption" (Art. 223, Labor Code); the Commission, in its en banc session of October 12, 2000, adopted a Resolution providing the following guidelines in awarding moral and exemplary damages: DHacTCI. Statutory Bases of Moral and Exemplary Damages.Article 2197 of the Civil Code provides that "damages" may be "moral" and "exemplary".On the matter of moral damages, the Civil Code provides that:a) "ART. 2217. Moral...