G.R. No. 159625 ; January 31, 2008
Coca-Cola Bottlers Philippines, Inc., petitioner, vs. Valentina Garcia, respondent.

FACTS

Petitioner Coca-Cola Bottlers Philippines, Inc. hired respondent Valentina Garcia as a probationary Quality Control Technician in 1988, and she became a regular employee in 1989. Due to modernization programs that reduced workload, one position in her department became redundant. As the most junior employee, respondent was the redundant employee. Instead of termination, petitioner decided to transfer her to its Iloilo plant in 1990. Respondent refused the transfer and, through her union, initiated grievance proceedings. Petitioner proceeded with the transfer and, when respondent reported to her original station in Tacloban on the effective date, she was refused entry. Petitioner later served a notice of dismissal on the ground of abandonment.
Respondent filed a complaint for illegal dismissal. The Labor Arbiter ruled in her favor, but the NLRC reversed, finding the transfer valid under a mobility clause and holding that her refusal constituted abandonment. The Court of Appeals partially granted respondent’s petition, upholding the finding of abandonment as a just cause for dismissal but ruling that the dismissal was ineffectual due to petitioner’s failure to comply with the twin-notice requirement of procedural due process. The CA awarded full backwages under the Serrano doctrine.

ISSUE

Whether the Court of Appeals erred in: (1) finding a violation of procedural due process in respondent’s dismissal, and (2) retroactively applying the Serrano doctrine to award full backwages.

RULING

The Supreme Court granted the petition, modifying the CA decision. On the first issue, the Court affirmed the CA’s finding of a due process violation. For a dismissal based on a just cause like abandonment, the employer must serve two written notices: one specifying the grounds for dismissal and giving the employee an opportunity to explain, and another informing the employee of the decision to dismiss. The records showed petitioner sent only a notice of dismissal. The fact that prior notices may have been returned unserved did not excuse compliance; the law requires a meaningful opportunity to be heard.
On the second issue, the Court held that the Serrano doctrine, which mandated full backwages for a due process violation regardless of the validity of the dismissal, was no longer controlling. The Court abandoned Serrano in the subsequent case of Agabon v. NLRC. The Agabon ruling, which applies retroactively, held that where the dismissal is for a just or authorized cause but procedural due process is not observed, the employer is liable only for nominal damages, not full backwages. Consequently, the award of backwages was deleted. Respondent was instead awarded nominal damages in the amount of Thirty Thousand Pesos (P30,000.00) for the procedural infirmity in her dismissal.