GR 79182; (September, 1991) (Digest)
G.R. No. 79182 September 11, 1991
PNOC-ENERGY DEVELOPMENT CORPORATION, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION and DANILO MERCADO, respondents.
FACTS
Petitioner PNOC-EDC, a government-owned and controlled corporation, dismissed private respondent Danilo Mercado from his employment on June 30, 1985. The dismissal was based on alleged serious acts of dishonesty, including appropriating portions of company funds for personal use from transactions involving nipa shingles and rubber stamps, and violations of company rules regarding absences and leaves. Mercado filed a complaint for illegal dismissal and monetary claims before the NLRC. The Labor Arbiter ruled in favor of Mercado, ordering his reinstatement with full backwages, payment of his savings, proportionate 13th month pay, and awards for moral and exemplary damages and attorney’s fees. The NLRC affirmed this decision on appeal.
ISSUE
The primary issue is whether the Labor Arbiter and the NLRC had jurisdiction over the employment dispute involving PNOC-EDC, a government-owned and controlled corporation. A secondary issue is the correctness of the finding of illegal dismissal and the awarded remedies.
RULING
The Supreme Court denied the petition and affirmed the NLRC resolution with modifications to the damages awarded. On jurisdiction, the Court held that PNOC-EDC, lacking an original charter, falls under the jurisdiction of the Labor Arbiter and NLRC pursuant to the 1987 Constitution and prevailing jurisprudence, specifically citing PNOC-EDC vs. Leogardo. The constitutional provision placing government-owned or controlled corporations with original charters under the Civil Service does not apply to PNOC-EDC. On the merits, the Court found no grave abuse of discretion in the NLRC’s affirmation of the illegal dismissal finding. The accusations of dishonesty and rule violations were sufficiently rebutted by Mercado’s evidence, including an affidavit from the supplier, and were not substantiated by the petitioner. Loss of trust as a ground for dismissal requires a factual basis, which was absent. The findings of the Labor Arbiter and NLRC, being supported by evidence and accorded respect and finality, stand. However, the moral damages were reduced to P10,000.00 and exemplary damages to P5,000.00.