GR 113081; (May, 1995) (Digest)
G.R. No. 113081 May 12, 1995
WORLDWIDE PAPERMILLS, INC. and/or HONORIO POBLADOR, III, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and EDWIN P. SABUYA, respondents.
FACTS
Edwin Sabuya was employed as a packer by Worldwide Papermills, Inc. (WPI) from 1982 until his termination in 1991. From 1986 to 1989, he incurred excessive unauthorized absences and absences without official leave (AWOL), for which he was repeatedly admonished, warned, and suspended. In 1988, he executed a promissory note stating that exceeding his allowed leaves or incurring another AWOL would be grounds for termination. Despite this, Sabuya continued his pattern of absences in 1991. Furthermore, during an approved sick leave in August 1991, a company nurse discovered he was not at home but was reportedly moonlighting as a pedicab driver. WPI issued a memorandum requiring him to explain his absences. After receiving his explanation, WPI terminated his employment.
ISSUE
Whether the dismissal of Edwin Sabuya was valid, considering both the substantive and procedural aspects of termination.
RULING
The Supreme Court ruled that the dismissal was substantively valid but procedurally defective. On substantive grounds, Sabuya’s habitual absenteeism constituted willful disobedience and gross neglect of duties, which are just causes for termination under Article 282 of the Labor Code. His repeated infractions persisted despite multiple warnings and a final written agreement in 1988 where he accepted termination as a consequence for future violations. The discovery of his moonlighting during sick leave further eroded the trust inherent in the employment relationship. The Court emphasized that while labor law tilts towards the worker’s welfare, it cannot sanction injustice to the employer when just cause exists.
However, the employer failed to comply with procedural due process. While WPI issued a notice to explain, it did not conduct a hearing or conference before effecting the dismissal, violating the twin-notice rule. Consequently, while the dismissal was for a just cause, WPI was ordered to pay Sabuya indemnity for the procedural violation. The Court modified the NLRC decision, upholding the dismissal but ordering the payment of separation pay of one-half month’s salary per year of service for equitable and humanitarian reasons, and increasing the indemnity for procedural due process violation to P5,000.00.