GR 105538; (September, 1994) (Digest)
G.R. No. 105538 September 5, 1994
FERROCHROME PHILIPPINES, INC., REINHOLD SCHOLSNAGEL and ENGR. WELHELM WEBER, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION (FIFTH DIVISION) and HORST BARTSCH, respondents.
FACTS
Private respondent Horst Bartsch was initially employed under a three-month consultancy contract with petitioner Ferrochrome Philippines, Inc., from February 15 to May 15, 1988, extendible by mutual agreement. After the contract expired, Bartsch continued working without a new written agreement. Following a period of hospitalization for a psychological disorder and a subsequent vacation leave, Bartsch resumed work on October 1, 1988. His services were terminated by Ferrochrome via a letter dated January 30, 1989, stating his consultancy was “no longer needed” but expressing an intent to rehire him for future projects. Bartsch filed a complaint before the NLRC for various monetary claims. The Labor Arbiter dismissed the complaint, ruling his post-contract employment was on a monthly basis and terminable at Ferrochrome’s discretion.
ISSUE
Whether the National Labor Relations Commission committed grave abuse of discretion in ruling that Horst Bartsch was illegally dismissed.
RULING
The Supreme Court ruled that the NLRC did not commit grave abuse of discretion. The legality of dismissal was properly in issue as Bartsch’s monetary claims were contingent upon it, and he explicitly raised the issue in his position paper. On the merits, the Court affirmed the NLRC’s finding of illegal dismissal. Bartsch, having been engaged continuously without a fixed term after his original contract, became a regular employee entitled to security of tenure. The termination letter cited redundancy, but Ferrochrome later alleged his psychological illness as the “real” reason during proceedings. This vacillating stance demonstrated bad faith and a failure to comply with substantive and procedural due process. The employer must notify the employee of the true cause and provide an opportunity to be heard. Consequently, Bartsch was entitled to reinstatement, backwages, and other awarded benefits. The NLRC resolutions were affirmed.