Facts:

• Reynaldo G. Cabigting worked as an inventory controller at San Miguel Corporation's Feeds and Livestock Division (B-Meg) since February 16, 1984.
• On June 26, 2000, he received a termination letter from President Arnaldo Africa, stating his position as a sales office coordinator was redundant, effective July 31, 2000.
• Cabigting was surprised by the termination as he was not a sales office coordinator.
• He declined an early retirement package offered by the company.
• At the time of his dismissal, Cabigting was an active union officer.
• Supported by his union, Cabigting filed a complaint against San Miguel Foods, Inc., claiming his dismissal was illegal due to the mischaracterization of his position.
• The Labor Arbiter ruled in favor of Cabigting, declaring his dismissal illegal and ordering backwages and separation pay.
• The National Labor Relations Commission (NLRC) partially upheld this decision, ordering reinstatement.
• The Court of Appeals reversed the reinstatement order, citing strained relations, prompting Cabigting to file a petition for review with the Supreme Court.

Issue:

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Ruling:

• The Supreme Court ruled in favor of Reynaldo G. Cabigting, affirming the finding of illegal dismissal.
• The Court ordered his immediate reinstatement to his previous position without loss of seniority rights.
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Ratio:

• The Supreme Court emphasized that under Article 279 of the Labor Code, an unjustly dismissed employee is entitled to reinstatement unless clear evidence shows that reinstatement would worsen strained relations.
• The Court noted that both the Labor Arbiter and the Court of Appeals lacked substantial evidence to support claims of strained relations.
• It highlighted that hostility from litigation is common and...continue reading