G.R. No. 160325; October 4, 2007
ROQUE S. DUTERTE, petitioner, vs. KINGSWOOD TRADING CO., INC., FILEMON LIM and NATIONAL LABOR RELATIONS COMMISSION, respondents.

FACTS

Petitioner Roque S. Duterte was a truck driver for respondent Kingswood Trading Co., Inc. (KTC). In November 1998, he suffered a heart attack, was hospitalized, and later returned to work with a medical certificate from the Philippine Heart Center attesting to his fitness. Respondents refused to allow him to work. After a second heart attack in February 1999, he attempted to return in June 1999 but was told he was unfit and to seek another job. Respondents promised but failed to give separation pay and instead presented a document for him to sign falsely acknowledging receipt of SSS benefits.
Petitioner filed a complaint for illegal dismissal. The Labor Arbiter ruled in his favor but applied Article 284 (Disease) of the Labor Code, awarding separation pay at one-half month per year of service, holiday pay, and service incentive leave. The NLRC reversed, dismissing the complaint, ruling Article 284 did not apply as petitioner failed to present a certification from a competent public health authority about his disease. The Court of Appeals affirmed the NLRC.

ISSUE

Whether petitioner was illegally dismissed, and if so, whether the proper remedy is reinstatement with backwages under Article 279, not separation pay under Article 284.

RULING

Yes, petitioner was illegally dismissed. The Supreme Court reversed the CA and NLRC. The legal logic is clear: the burden of proving a valid dismissal, including dismissal on the ground of disease under Article 284, rests solely on the employer. Article 284 requires the employer to secure a certification from a competent public health authority that the disease is incurable within six months even with treatment. Respondents failed to present any such certification. Their mere assertion of petitioner’s unfitness, despite his submission of a fitness-to-work certificate, does not satisfy this substantive requirement.
Consequently, the dismissal was illegal for lack of just cause. The Labor Arbiter erred in applying Article 284. The proper award is reinstatement with full backwages under Article 279. However, due to the strained relations, separation pay equivalent to one month’s salary per year of service, in lieu of reinstatement, plus full backwages, is warranted. Furthermore, as a regular driver with fixed hours, petitioner is entitled to holiday pay and service incentive leave. The case was remanded to the Labor Arbiter for computation of these monetary awards.