Title
Agabon vs. National Labor Relations Commission
Case
G.R. No. 158693
Decision Date
Nov 17, 2004
Employees dismissed for abandonment; employer failed procedural due process, awarded nominal damages despite valid dismissal.

Case Digest (G.R. No. 158693)
Expanded Legal Reasoning Model

Facts:

  • Employment and Dismissal
    • Petitioners Jenny M. Agabon and Virgilio C. Agabon were employed by Riviera Home Improvements, Inc. as gypsum-board and cornice installers from January 2, 1992.
    • On February 23, 1999, they ceased reporting for work. Riviera Home alleged abandonment; petitioners claimed they were refused regular assignments unless they agreed to work on a pakyaw basis.
  • Labor Arbiter Proceedings
    • Petitioners filed a complaint for illegal dismissal and money claims (backwages, separation pay, holiday pay, service-incentive leave pay, premium pay, 13th-month pay differential).
    • On December 28, 1999, Labor Arbiter Barcelona declared the dismissals illegal, ordered backwages up to November 29, 1999 (P56,231.93 each), separation pay in lieu of reinstatement, and additional money claims (aggregate P121,678.93 for Jenny; P123,828.93 for Virgilio).
  • NLRC Decision and Court of Appeals
    • The NLRC Second Division reversed the Labor Arbiter: found abandonment as just cause, denied backwages and separation pay, and dismissed other money claims for lack of evidence.
    • The petitioners appealed via certiorari to the Court of Appeals. On January 23, 2003, the CA affirmed abandonment but reinstated money claims: holiday pay for four regular holidays (1996–1998), service-incentive leave pay, and Virgilio’s 1998 13th-month pay balance (P2,150.00).
  • Supreme Court Petition
    • Petitioners sought review of the sole issue: whether their dismissal was illegal.
    • They also challenged Riviera Home’s compliance with notice/hearing requirements and sought affirmance of their money claims.

Issues:

  • Did petitioners abandon their employment, constituting just cause for dismissal under Article 282 of the Labor Code?
  • Did respondent Riviera Home comply with the statutory due-process requirements (twin notices and hearing) for just-cause dismissal?
  • What is the legal effect of failing to serve the required notice and grant a hearing on a just-cause dismissal?
  • Are petitioners entitled to their unpaid money claims (holiday pay, service-incentive leave pay, 13th-month pay) for 1996–1998?
  • Is respondent liable to pay nominal damages for non-compliance with statutory due process?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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