G.R. No. 90349 . March 5, 1993.
EDWIN GESULGON, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION and A. A. MARISCOR CORPORATION, respondents.

FACTS

Petitioner Edwin Gesulgon was hired by private respondent A.A. Mariscor Corporation as Chief Cook on board its fishing vessel “Susan II” on December 26, 1985. On October 7, 1986, he filed a complaint for illegal dismissal, non-payment of a 3-day incentive bonus, non-reimbursement of provident fund payments, and damages. He alleged he was dismissed on June 19, 1986, after questioning the computation of his incentive pay. Summons and hearing notices were served by registered mail to Mariscor’s President/Manager and were received by clerks in the office of Assistant Manager Artemio Hermosura. Mariscor failed to appear at the hearings. The Labor Arbiter allowed Gesulgon to present evidence ex parte and rendered a decision on March 11, 1987, declaring the dismissal illegal, ordering reinstatement with full backwages, and payment of the incentive bonus and provident fund contributions. A copy of this decision was received by a clerk in Hermosura’s office on March 27, 1987. Mariscor did not appeal, and the decision became final on April 6, 1987. On February 28, 1989, Mariscor filed a “Motion to Set Aside Judgment and Writ of Execution.” The NLRC initially dismissed this motion but later, in a Resolution dated September 29, 1989, set aside its prior resolution and the Labor Arbiter’s award, treating the motion as a petition for relief from judgment.

ISSUE

Whether the National Labor Relations Commission gravely abused its discretion in granting Mariscor’s Motion to Set Aside Judgment and Writ of Execution by treating it as a petition for relief from judgment despite being filed beyond the reglementary periods.

RULING

Yes, the NLRC gravely abused its discretion. The Court ruled that a petition for relief from judgment must be filed within sixty (60) days from knowledge of the judgment and not more than six (6) months from its entry. Mariscor received the Labor Arbiter’s decision on March 27, 1987, and it became final on April 6, 1987. The motion was filed only on February 28, 1989, which was not only beyond sixty days from notice but also one year and eleven months after the decision became final. The NLRC’s act of extending the reglementary period and setting aside a final and executory decision constituted a grave abuse of discretion. The service of summons and the decision upon a clerk in the office of Mariscor’s Assistant Manager was valid service upon the corporation. Furthermore, in termination cases, the burden of proving a valid cause for dismissal rests on the employer. Mariscor’s failure to present evidence due to its own negligence warranted a finding of illegal dismissal. The Supreme Court granted the petition, set aside the NLRC Resolution dated September 29, 1989, and reinstated the Labor Arbiter’s decision ordering Gesulgon’s reinstatement without loss of seniority rights, with three years backwages, payment of the incentive bonus and provident fund contributions, and attorney’s fees.