G.R. No. 75751 October 17, 1990
Atlas Consolidated Mining and Development Corporation, petitioner, vs. National Labor Relations Commission and Rodolfo S. Caballo, respondents.

FACTS

Private respondent Rodolfo S. Caballo, a junior engineer for petitioner Atlas, took an approved 10-day leave starting May 27, 1981. Upon its expiration, he wired for an extension due to a pending bank loan. He subsequently fell ill, diagnosed with acute pyelonephritis and later hepatitis, and was medically advised to rest for months. On August 5, 1981, Caballo received a company letter dated July 22, 1981, giving him ten days to return or explain his prolonged absence. Two days later, on August 7, he received a copy of Atlas’s application for clearance to dismiss him, filed with the Ministry of Labor on August 8. Caballo, believing his sister’s August 5 telegram informing the company of his illness sufficed, did not oppose the clearance application.
Atlas, noting no opposition within the reglementary period, effected his dismissal. On January 14, 1982, Caballo reported for work with medical certificates but was refused reinstatement. His request for separation benefits was denied, prompting a complaint for illegal dismissal.

ISSUE

Whether the National Labor Relations Commission correctly affirmed the Labor Arbiter’s finding that Caballo’s dismissal was illegal.

RULING

The Supreme Court upheld the NLRC ruling, finding the dismissal illegal. The Court rejected Atlas’s claim that Caballo’s prolonged absence constituted abandonment. Abandonment requires a deliberate and unjustified refusal to resume work, clearly shown by overt acts. Here, Caballo’s absence was due to a serious, medically attested illness, communicated to the company via telegram. His eventual report for work with medical certificates negated any intent to abandon. The Court noted Atlas’s procedural haste, as its application for clearance to dismiss was prepared just one day after the letter giving Caballo a 10-day grace period, indicating a pre-decided intent to terminate.
The Court also dismissed Atlas’s jurisdictional argument, stating that a granted clearance does not preclude a dismissed employee from contesting the dismissal’s legality in a separate complaint. However, the Court found Caballo partially at fault for not updating Atlas on his health status over six months. Consequently, while ordering reinstatement without loss of seniority rights and benefits with three years’ backwages, the moral damages award was reduced from P10,000 to P5,000. Attorney’s fees of P2,000 were affirmed.