G.R. No. 165282 . October 5, 2005.
ELECTRO SYSTEM INDUSTRIES CORPORATION, Petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION and NOEL BALTAZAR A. SUMACULUB, Respondents.

FACTS

Petitioner Electro System Industries Corporation employed private respondent Noel Baltazar A. Sumaculub as a driver. During his employment, Sumaculub figured in three separate vehicular accidents due to negligence in 1997 and 1998, causing the company to incur expenses for damages. On August 10, 1998, petitioner dismissed Sumaculub for repeated violation of company rules against reckless driving.
Sumaculub filed an illegal dismissal case. The Labor Arbiter and the NLRC found the dismissal invalid. On appeal, the Court of Appeals ruled there was just cause for dismissal based on repeated negligence. However, it found that petitioner failed to comply with the statutory due process requirements for termination. The appellate court thus ordered petitioner to pay backwages from the date of dismissal until the finality of its decision.

ISSUE

Whether petitioner observed the twin notice rule, a fundamental requirement of procedural due process, in dismissing private respondent.

RULING

No, petitioner did not comply with the due process requirements. The law mandates two written notices for termination based on a just cause: a first notice apprising the employee of the specific charges with an opportunity to explain, and a second notice informing the employee of the decision to dismiss. The Supreme Court found the first notice issued to Sumaculub deficient. It merely cited a violation of a company rule and summoned him to an investigation. Crucially, it failed to specify that the charges, if proven, could lead to his dismissal. As held in Tan v. NLRC and Maquiling v. Philippine Tuberculosis Society, Inc., the first notice must categorically state the penalty of dismissal to allow the employee to fully comprehend the gravity of the situation and prepare an adequate defense.
Furthermore, the Court found no concrete proof that Sumaculub was properly served these notices. The first notice lacked his signature, and a mere notation of refusal to sign on the second notice was insufficient to prove service. Petitioner’s bare allegations were not equivalent to proof. Consequently, the dismissal, though for a just cause, was ineffectual due to the denial of procedural due process. Following the precedent in Agabon v. NLRC, the award of backwages was deleted. Instead, nominal damages of P30,000.00 were awarded to Sumaculub to vindicate his statutory right to due process, serving as a deterrent against future violations by employers.