G.R. No. 71459 . July 30, 1986.
D. M. CONSUNJI, INC., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, HON. ALCESTIS A. MANGAHAS and APOLINARIO AGBAYANI, respondents.

FACTS

Petitioner D.M. Consunji, Inc. employed private respondent Apolinario Agbayani as Camp Administrator for its Brunei project under a two-year contract with a monthly salary of US$800. Agbayani commenced work in December 1981. In May 1982, he was recalled to Manila to report on camp incidents. After submitting his report, his return flight was canceled, and he was instructed to await further orders. On his own initiative, Agbayani secured a re-entry visa and a return ticket to Brunei. While in Manila, he was assigned to the security department but continued receiving his overseas salary. His employment was terminated on June 30, 1982.
Agbayani filed a complaint for illegal dismissal with the Philippine Overseas Employment Administration (POEA), which ruled in his favor. The POEA ordered the petitioner to pay salaries for the unexpired contract, reimburse the visa and plane ticket expenses, ship his personal belongings (including a car purchased in Brunei), and pay attorney’s fees. The National Labor Relations Commission (NLRC) affirmed the decision in toto.

ISSUE

Whether or not respondent Apolinario Agbayani was illegally dismissed.

RULING

Yes, Agbayani was illegally dismissed. The Supreme Court affirmed the finding of illegal dismissal but modified the awarded remedies. The petitioner argued that Agbayani, as a managerial employee, could be dismissed for loss of confidence due to alleged failure to meet job standards. The Court recognized Agbayani as a managerial employee, which permits termination for just causes like loss of confidence. However, the employer’s prerogative must be exercised without abuse of discretion and with due process.
The Court found no substantial evidence proving Agbayani’s inefficiency or any act justifying a loss of confidence. A memorandum directing him to prioritize rest and recreation programs was merely an instruction, not proof of incompetence. His recall to Manila and subsequent termination, without being afforded a chance to explain or rectify any perceived shortcomings, constituted illegal dismissal. Consequently, he is entitled to payment of salaries for the unexpired portion of his contract, amounting to US$14,400.
However, the Court disallowed the reimbursement for the re-entry visa and plane ticket, as these were procured by Agbayani on his own initiative without the company’s inducement. The order to ship his car or pay its equivalent was also deleted, as the vehicle was purchased without company approval and was unnecessary for his duties. Finally, the attorney’s fees were reduced from 10% of the award to P4,000.00, deemed commensurate with the services rendered. The decision was modified accordingly.