G.R. No. 118860 July 17, 1997
ROLINDA B. PONO, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, RAFAELITO I. CASTILLO, and SANDOZ PHILS., INC., respondents.

FACTS

Petitioner Rolinda B. Pono was employed as a medical representative by respondent Sandoz Phils., Inc. She filed a complaint for illegal dismissal, unfair labor practices, separation pay, and damages against Sandoz and her immediate supervisor, Rafaelito I. Castillo. Pono alleged that on May 18, 1992, Castillo attempted to sexually harass her during a meeting called to discuss her alleged work infractions. She remained silent for five months but reported the incident on October 5, 1992, after being summoned again by Castillo. She reported the matter to the National Sales Manager, Godofredo Ruiz. A meeting was held where Castillo denied the incident. Pono was later asked to explain discrepancies in her work reports and an alleged forgery of a doctor’s signature. After submitting her handwritten explanation, her services were terminated on October 19, 1992. Private respondents contended that Pono was dismissed due to repeated violations of company policies, including absences, discrepancies in work reports, and non-liquidation of cash advances, and that the sexual harassment allegation was fabricated to preempt her dismissal. The Labor Arbiter dismissed the complaint, a decision affirmed by the National Labor Relations Commission (NLRC). Pono elevated the case to the Supreme Court, contending the NLRC acted with grave abuse of discretion.

ISSUE

Whether the National Labor Relations Commission acted with grave abuse of discretion in affirming the dismissal of Rolinda B. Pono’s complaint for illegal dismissal.

RULING

The Supreme Court dismissed the petition for lack of merit and affirmed the NLRC decision, with modification. The Court held that while Pono’s dismissal was for a just cause, the employer failed to observe procedural due process. On the substantive aspect, the Court upheld the finding that Pono was dismissed for just cause under Article 282 of the Labor Code, specifically for serious misconduct and gross neglect of duties, as evidenced by numerous written notices for infractions such as discrepancies in work reports and alleged forgery. The Court noted that the criminal complaint for attempted rape filed by Pono against Castillo had been dismissed by the prosecutor for lack of merit. On the procedural aspect, the Court found that Sandoz failed to conduct a hearing before effecting Pono’s dismissal. Although she was given written notices of the charges and an opportunity to explain, no actual hearing was conducted where she could fully ventilate her defense. Consequently, while the dismissal was valid for cause, Sandoz was liable for violating Pono’s right to due process. The Court modified the NLRC decision by ordering private respondent Sandoz to pay petitioner Pono the amount of P1,000.00 as damages for non-compliance with procedural due process.