G.R. No. L-1557; January 29, 1948
MANILA HOTEL COMPANY, petitioner, vs. COURT OF INDUSTRIAL RELATIONS and THE MANILA HOTEL EMPLOYEES’ ASSOCIATION, respondents.

FACTS

The Manila Hotel Company, a government corporation, dismissed employee Francisco David, a long-time employee and active union leader, for alleged misconduct. The dismissal was initially upheld by a judge of the Court of Industrial Relations (CIR). However, upon reconsideration, the same judge ordered David’s reinstatement, finding his prolonged suspension sufficient punishment and the post-liberation charges against him unsubstantiated or trivial. This order was affirmed by the CIR en banc. The Manila Hotel filed this certiorari petition to challenge the CIR’s decision ordering David’s reinstatement.

ISSUE

Whether the factual findings and conclusions of the Court of Industrial Relations, which justified the revocation of David’s dismissal and ordered his reinstatement, are supported by the evidence.

RULING

The petition is dismissed. The Supreme Court upheld the decision of the Court of Industrial Relations. The Court ruled that while an employer has the basic right to freely select or dismiss employees, this right is subject to state regulation under the police power. The CIR is the proper instrument to protect laborers from dismissals that are capricious, unjustified, or otherwise illegal. After reviewing the records, the Supreme Court found no compelling reason to overturn the CIR’s factual conclusions, as they were based on evidence presented during hearings. The Court declined to substitute its judgment for that of the CIR, absent a clear showing of abuse or a complete lack of evidence to support its decision. The charges against David after liberation (unauthorized use of a jeep as a mere passenger and disposal of spoiled canned goods) were correctly found insufficient to justify dismissal.

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