GR 166705; (July, 2009) (Digest)
G.R. No. 166705; July 28, 2009
MANTLE TRADING SERVICES, INCORPORATED AND/OR BOBBY DEL ROSARIO, Petitioners, vs. NATIONAL LABOR RELATIONS COMMISSIONS and PABLO S. MADRIAGA, Respondents.
FACTS
Respondent Pablo Madriaga was hired by petitioner Mantle Trading Services, Inc., a fishing business, in 1989 as a fish hauler and later as a “tagapuno” (filler of fish tubs). He worked nightly with a daily wage. In August 1999, two incident reports were filed alleging Madriaga received money from a fish trader to give him more fish. On September 11, 1999, Madriaga alleged he was barred from work by the payroll master. The company countered he abandoned his job to avoid investigation. Madriaga filed a complaint for illegal dismissal and monetary claims in 2001.
The Labor Arbiter ruled Madriaga was a regular employee, not a project worker, as his work was necessary to the company’s business. He found illegal dismissal due to the company’s failure to serve the required two written notices. The NLRC, while affirming his regular status, reversed the illegal dismissal finding. It held the payroll master had no authority to dismiss, and Madriaga merely heeded an unauthorized order not to work, constituting neither dismissal nor abandonment. The Court of Appeals reinstated the Labor Arbiter’s illegal dismissal ruling.
ISSUE
Was Madriaga illegally dismissed?
RULING
No, the Supreme Court ruled there was no illegal dismissal but a violation of procedural due process. The Court agreed with the NLRC’s factual finding that the payroll master’s act of barring Madriaga was not a company act of dismissal, as the payroll master lacked authority to terminate employment. Consequently, Madriaga was not dismissed. However, the company failed in its procedural duty. The twin-notice requirement under Article 282(b) of the Labor Code for termination due to willful disobedience or serious misconduct was triggered by the incident reports. The company’s failure to serve these notices, despite having grounds to investigate, violated Madriaga’s right to procedural due process.
Applying the doctrine in Agabon v. NLRC, where dismissal is for a just cause but procedural due process is not observed, the dismissal is upheld but the employer is liable for nominal damages. The Court affirmed Madriaga’s status as a regular employee and his monetary awards for underpayment, 13th month pay, and holiday pay. It deleted the award for backwages but ordered the company to pay Madriaga nominal damages of Thirty Thousand Pesos (₱30,000.00) for the procedural violation.