G.R. No. 102969. April 4, 1995.
GENERAL TEXTILE, INC. and EDGAR TOLENTINO, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION, LABOR ARBITER MANUEL P. ASUNCION and RODOLFO M. LOPEZ, respondents.

FACTS

Private respondent Rodolfo Lopez was employed by petitioner General Textiles, Inc. (Gentex) as a machine operator. In July 1988, he was diagnosed with moderately advanced pulmonary tuberculosis and went on a company physician-advised sick leave, receiving SSS sickness benefits until September 30, 1988. In December 1988, when Lopez attempted to return to work, the company physician instructed him to extend his leave. He was later confined at the Quezon Institute from May to July 1989, a fact known to Gentex as its personnel manager, petitioner Edgar Tolentino, assisted in processing his Medicare forms.
Despite this knowledge, Gentex, through Tolentino, sent Lopez a Notice of Termination dated August 2, 1989, dismissing him effective immediately for alleged absence without official leave (AWOL) or abandonment since September 17, 1988. Lopez filed a complaint for illegal dismissal. The Labor Arbiter ruled in his favor, ordering reinstatement with full back wages, a decision modified by the NLRC on appeal. The NLRC affirmed the illegality of the dismissal but limited back wages to six months and awarded separation pay in lieu of reinstatement, opining that his tuberculosis had likely become incurable.

ISSUE

Whether the NLRC committed grave abuse of discretion in its modified ruling on the illegal dismissal of Rodolfo Lopez.

RULING

Yes, the NLRC committed grave abuse of discretion. The Supreme Court held that Lopez was illegally dismissed. The cause stated in the termination notice—abandonment—was false and non-existent, as the company was fully aware of his medical condition and approved sick leave. Abandonment requires a clear, deliberate, and unjustified refusal to resume employment, which was not present given the documented medical absences. An illegal dismissal warrants reinstatement and full back wages under Article 279 of the Labor Code.
The NLRC erred in unilaterally concluding that Lopez’s disease was incurable and in modifying the award. The law requires a certification from a competent public health authority to establish that a disease is incurable within six months to justify termination under Article 284. No such certification existed. Therefore, the NLRC’s limitation of back wages to six months and its grant of separation pay were baseless. The Supreme Court reinstated the Labor Arbiter’s award of full back wages and ordered Lopez’s reinstatement, subject to a fitness-to-work certification from a competent public health authority. Should he be certified unfit, he is entitled to separation pay under Article 284 in addition to full back wages.