G.R. No. 79596 February 10, 1989
C.W. TAN MFG., FEDERICO JAVIER, and JAIME SO, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION, ASSOCIATED LABOR UNIONS (ALU) and ANGELINO BRIMON, respondents.

FACTS

Petitioners C.W. Tan Mfg., its Plant Superintendent Federico Javier, and Plant Manager Jaime So dismissed employee Angelino Brimon on March 4, 1982. The termination memorandum cited several violations, including coercion of co-workers to reduce output, gross negligence causing P800 in damages, and loss of respect towards superiors. The immediate catalyst was an incident on March 2, 1982, concerning a leave of absence. Petitioners alleged Brimon lied about seeking permission, while Brimon claimed his half-day leave was approved by his supervisor and Jaime So, and that he was summarily handed his salary and termination papers the next day without being asked to explain.
Labor Arbiter Porfirio E. Villanueva dismissed Brimon’s complaint for illegal dismissal, finding the dismissal was for a just cause and with due process. Brimon appealed to the NLRC. His memorandum of appeal was filed within the reglementary period but he failed to furnish a copy to the adverse party (petitioners) and failed to pay the required appeal fee on time. The NLRC initially dismissed the appeal for being filed out of time due to lack of proof of service. Upon reconsideration, the NLRC reversed itself, gave due course to the appeal, and set aside the Labor Arbiter’s decision, ordering Brimon’s reinstatement with backwages.

ISSUE

Whether the failure to furnish a copy of the appeal memorandum to the adverse party and to pay the docketing fee within the reglementary period are jurisdictional defects that render the Labor Arbiter’s decision final and executory.

RULING

The Supreme Court ruled that neither defect is jurisdictional. The failure to furnish a copy of the appeal memorandum to the adverse party is a mere formal lapse, not a jurisdictional defect. This requirement was subsequently complied with by Brimon. Regarding the non-payment of the appeal fee on time, the Court held that while the payment is an essential requirement for perfecting an appeal, the power to dismiss for non-payment is directory, not mandatory, and must be exercised with sound discretion considering all circumstances. The Court emphasized that under Article 221 of the Labor Code, technical rules of procedure are not binding, and every reasonable means should be used to ascertain the facts speedily and objectively without regard to technicalities. Considering Brimon as a pauper litigant, the nominal fee involved (P25.00 at the time), the substantial merits of his appeal regarding his arbitrary dismissal without a formal investigation, and the broader interest of justice, the NLRC correctly gave due course to the belatedly perfected appeal. The petition was dismissed and the NLRC decision was affirmed with modification limiting backwages to three years.