G.R. No. 178524 , January 30, 2009
Panfilo Macasero, Petitioner, vs. Southern Industrial Gases Philippines and/or Neil Lindsay, Respondents.

FACTS

Petitioner Panfilo Macasero was engaged by respondent Southern Industrial Gases, Philippines as a Carbon Dioxide Bulk Tank Escort since September 1995, earning ₱200 for every 24-hour work plus allowances. On January 5, 1999, he filed a complaint for illegal dismissal, alleging that in September 1998, he was advised his services were no longer needed and was prevented from entering company premises. Respondents contended no employer-employee relationship existed, claiming petitioner was an occasional “unsupervised pakiaw or task worker” who worked only 287 days over three years and was not under their control. The Labor Arbiter held petitioner was a regular employee but not illegally dismissed due to lack of particulars on the dismissal, awarding separation pay. Both parties appealed to the NLRC, which affirmed petitioner was a regular employee with no illegal dismissal but modified the separation pay computation. The Court of Appeals affirmed the NLRC’s modified decision, citing petitioner’s failure to prove the fact of dismissal. Petitioner filed the present recourse, arguing the employer bears the burden of proving dismissal was not illegal and that he is entitled to backwages and reinstatement or full separation pay.

ISSUE

Whether petitioner was illegally dismissed.

RULING

Yes, the Supreme Court granted the petition, declaring the dismissal illegal. The Court held that in illegal dismissal cases, the burden of proving the employee was not dismissed or that the dismissal was legal rests on the employer. Respondents’ claim that a business slump prevented them from giving petitioner assignments was unsubstantiated by any documentary evidence. The Court found incongruous the lower tribunals’ acceptance of this unsubstantiated claim while requiring petitioner to prove dismissal with particularity. The award of separation pay by the lower tribunals was inconsistent with a finding of no illegal dismissal, as separation pay is a relief granted when reinstatement is no longer viable following an illegal dismissal. The Court ruled petitioner was dismissed without just cause. Respondent company was ordered to reinstate petitioner without loss of seniority rights and pay full backwages and benefits from September 1998 until actual reinstatement, plus attorney’s fees of 10% of the monetary award. If reinstatement is no longer possible due to strained relations, respondent must pay separation pay of one month per year of service from 1995-1998.