Title
ABS-CBN Employees Union vs. National Labor Relations Commission
Case
G.R. No. 111211
Decision Date
Jul 24, 1997
Employee dismissed for working with a competitor while employed; NLRC upheld dismissal for disloyalty but fined employer for procedural lapses in termination process.
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Case Digest (G.R. No. 111211)

Facts:

Employment Details: Petitioner Jose Entradicho was employed by ABS-CBN Broadcasting Corporation (ABS-CBN) as a cameraman from September 7, 1987, until his dismissal on August 4, 1989.

Incident of July 15, 1989: On July 15, 1989, Entradicho failed to report for the taping of an ABS-CBN production titled "Kris at 18." He claimed he had to bring his sick daughter to the hospital and borrowed funds to cover medical expenses. Fernando Morales, ABS-CBN's TV Engineering Director, accepted his explanation but warned against future absences.

Discovery of Work for Competitor: On July 16, 1989, Personnel Manager Hermilindo P. Ocampo discovered Entradicho’s name in the credits of "Supermodels," a program aired on People's Television 4 (PTV4), a rival network. Entradicho admitted working for PTV4 late on July 15, 1989, citing financial necessity due to his daughter’s illness.

Termination: On August 2, 1989, Entradicho was terminated for acts constituting disloyalty.

Labor Arbiter’s Decision: The Labor Arbiter ruled Entradicho’s dismissal as illegal, ordered his reinstatement, and awarded back wages, suspension pay, and attorney’s fees.

NLRC’s Decision: The NLRC reversed the Labor Arbiter’s decision, dismissing the case for lack of merit but ordered ABS-CBN to pay P1,000 as indemnity for non-observance of due process in termination.

Petition for Certiorari: Entradicho filed a petition for certiorari without first filing a motion for reconsideration with the NLRC.

Issue:

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Ruling:

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Ratio:

Procedural Defect: The petition for certiorari was procedurally defective because Entradicho failed to file a motion for reconsideration with the NLRC before resorting to the special civil action. A motion for reconsideration is essential to allow the NLRC to correct any errors and is a jurisdictional requirement.

Valid Grounds for Dismissal: The NLRC correctly found that Entradicho’s act of rendering services to a business rival (PTV4) constituted disloyalty, serious misconduct, and willful breach of trust. These are valid grounds for termination under the Labor Code and the ABS-CBN Collective Bargaining Agreement.

Non-Observance of Due Process: ABS-CBN failed to observe due process in terminating Entradicho. The memorandum sent to him did not explicitly state the grounds for dismissal, violating the Labor Code’s procedural requirements. However, the lack of due process did not entitle Entradicho to reinstatement or back wages. Instead, ABS-CBN was ordered to pay P1,000 as indemnity for its procedural lapse.


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