G.R. No. 113911 January 23, 1998
VINTA MARITIME CO., INC. and ELKANO SHIP MANAGEMENT, INC., petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and LEONIDES C. BASCONCILLO, respondents.

FACTS

On February 13, 1987, private respondent Leonides C. Basconcillo, a licensed Marine Engineer, was hired by petitioner Vinta Maritime Co., Inc. through its agent Elkano Ship Management, Inc. as Chief Engineer for M/V Boracay under a one-year contract with a monthly salary of US$1,787.50. He boarded the vessel on February 18, 1987. On April 2, 1987, he was informed by the ship’s Master that he was relieved of his duties due to poor performance per the recommendation of Marine Superintendent Peter Robinson, following a verbal altercation regarding crew discipline. He was disembarked at Oslo, Norway, and repatriated. No inquiry, investigation, notice, or memorandum regarding the cause of his dismissal was furnished to him. His Seamen’s Book contained entries of “Very good” for conduct and ability and “Highly Recommended.” On April 20, 1987, Basconcillo filed a complaint for illegal dismissal with the POEA. Petitioners alleged dismissal was for just cause due to gross negligence and incompetent performance, citing specific incidents: closing a “DO NOT CLOSE” air valve during maneuvering; failure to change sea suctions leading to engine overheating; mismanagement of fuel levels causing unscheduled bunkering; failure to properly test fire alarms; and failure to instill discipline among engine room personnel. Basconcillo rebutted each allegation, denied being given a chance to explain, and stated he was surprised by his dismissal. The POEA rendered a decision based on position papers and documents, finding illegal dismissal and ordering payment of salaries for the unexpired portion of the contract. The NLRC affirmed the POEA decision. Petitioners filed a motion for reconsideration, which was denied.

ISSUE

Whether the National Labor Relations Commission gravely abused its discretion in affirming the POEA’s finding of illegal dismissal, particularly concerning: (1) the rendering of a decision without a full-blown trial, and (2) disregarding petitioners’ evidence and ruling that Basconcillo was illegally dismissed.

RULING

The petition is bereft of merit. The NLRC did not commit grave abuse of discretion.
On the first issue, a trial is not indispensable in administrative due process. Administrative agencies exercising quasi-judicial powers are free from the rigidity of certain procedural requirements. Due process in such proceedings requires only an opportunity to explain one’s side. In labor cases, due process does not necessarily require a hearing but simply an opportunity to be heard, which is satisfied when parties are given the opportunity to submit position papers. The holding of an adversarial trial is discretionary on the labor arbiter. The POEA Rules allow for summary judgments where pleadings and evidence submitted are sufficient. In this case, the parties submitted their position papers and supporting documents, and Basconcillo’s unopposed motion for a hearing remained unacted upon. The POEA considered the case submitted for resolution by mutual agreement. Thus, no hearing was necessary, and due process was observed.
On the second issue, petitioners failed to prove the two essential elements for a valid dismissal: just cause and due process. Regarding just cause, the burden of proof rests on the employer. Petitioners’ allegations of gross negligence were not substantiated by substantial evidence. Basconcillo provided detailed rebuttals to each incident, and petitioners failed to refute these rebuttals in their subsequent position paper. The entries in Basconcillo’s Seamen’s Book indicating “Very good” performance further contradicted the claim of incompetence. Regarding due process, the twin requirements of notice and hearing were not complied with. Basconcillo was not furnished a written notice stating the causes for termination, nor was he given an opportunity to be heard and defend himself. He was summarily dismissed and repatriated. Consequently, the dismissal was illegal.
As an illegally dismissed worker employed under a fixed-term contract, Basconcillo is entitled to payment of his salaries corresponding to the unexpired portion of his contract. The NLRC correctly affirmed the POEA’s award.