GR 106771; (November, 1994) (Digest)
G.R. No. 106771 November 18, 1994
ALHAMBRA INDUSTRIES, INC., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION and DANILO RUPISAN, respondents.
FACTS
Petitioner Alhambra Industries, Inc. employed private respondent Danilo C. Rupisan as a salesman. From December 9-12, 1989, Alhambra conducted a surprise audit of Rupisan’s records. On January 3, 1990, Rupisan was called to the Head Office where alleged violations of company rules were brought to his attention. On January 8, 1990, he was placed under a one-month preventive suspension for serious violations. On February 6, 1990, a day before the end of his suspension, Alhambra wrote Rupisan terminating his services effective February 8, 1990. Rupisan sued for illegal dismissal. The Labor Arbiter found the termination was for a just cause but ruled there was a violation of Rupisan’s right to due process, particularly the failure to furnish him a copy of the audit report. The Labor Arbiter awarded backwages, unpaid salary, separation pay, and commissions. Both parties appealed to the NLRC, which affirmed the lack of due process but ordered reinstatement instead of separation pay, reasoning Rupisan could have explained the charges if given the chance. Alhambra filed the present petition.
ISSUE
Whether the National Labor Relations Commission committed grave abuse of discretion in sustaining the finding of illegal dismissal due to lack of due process and ordering reinstatement, despite the Labor Arbiter’s finding of a just cause for termination.
RULING
Yes. The NLRC committed grave abuse of discretion. The Court held that a termination without just cause entitles a worker to reinstatement. However, termination for a just cause, even without procedural due process, does not warrant reinstatement; the employer incurs liability for damages instead. Since the Labor Arbiter found a valid ground for dismissal based on the evidence, which finding was not set aside by the NLRC, the NLRC erred in directing reinstatement. To order reinstatement would be circuitous, as the issue of the validity of the dismissal would inevitably be brought back to the Labor Arbiter. Following the precedent in Wenphil Corporation v. NLRC, an otherwise justly grounded termination without procedural due process only sanctions payment of damages. The decision of the Labor Arbiter was reinstated, except for the award of separation pay, which was deleted. Petitioner was additionally ordered to pay private respondent P10,000.00 for having been denied procedural due process.