G.R. No. 153510; February 13, 2008
R.B. MICHAEL PRESS and ANNALENE REYES ESCOBIA, petitioners, vs. NICASIO C. GALIT, respondent.

FACTS

Respondent Nicasio C. Galit was employed as an offset machine operator by petitioner R.B. Michael Press. During his employment, he accumulated 190 instances of tardiness and 9.5 days of absence without leave. On February 22, 1999, he refused a directive to render overtime work to meet a job deadline. The following day, he was served a memorandum accusing him of habitual tardiness, discourtesy, refusal to work overtime, and insubordination, and summoning him to a hearing that same afternoon. After the hearing, he was terminated on February 24, 1999. Galit filed a complaint for illegal dismissal.
The Labor Arbiter ruled the dismissal illegal, ordering reinstatement with full backwages. The NLRC affirmed this decision. The Court of Appeals modified the computation of backwages but sustained the finding of illegal dismissal, noting the dubious time frame for due process and that the refusal to work overtime appeared to be the proximate cause for termination.

ISSUE

The primary issues were: (1) whether there was just cause for Galit’s dismissal and whether due process was observed; and (2) the propriety of the awarded backwages and benefits.

RULING

The Supreme Court reversed the lower tribunals and declared the dismissal valid but procedurally defective. On substantive just cause, the Court found that Galit’s refusal to work overtime on February 22, 1999, constituted willful disobedience under Article 282 of the Labor Code. The order was lawful, reasonable, and made known to the employee, and his refusal was attended by a wrongful or perverse attitude. His extensive record of habitual tardiness and absenteeism further supported the existence of just cause for termination based on neglect of duties and willful disobedience.
However, the employer failed to comply with the twin-notice requirement of procedural due process. The notice of charge and the notice of termination were given in an unreasonably compressed timeframe—within two days—which did not afford the employee a real opportunity to be heard and prepare an adequate defense. Following the doctrine in Agabon v. NLRC, where dismissal is for a just cause but procedural due process is violated, the dismissal remains valid but the employer is liable for nominal damages. Consequently, the Court ordered petitioners to pay Galit nominal damages in the amount of PhP 30,000 for the due process violation. The awards for reinstatement and backwages were set aside.