G.R. No. 138961 - Liyao, Jr. vs. Tanhoti-Liyao

The instant controversy arose from a complaint filed on October 18, 2016 by Carlito Torres Abergos against Del Monte Land Transport Bus Company (DLTB Co.) and Narciso O. Morales for constructive dismissal, payment of damages, and attorney’s fees.
Abergos, employed as a bus driver since September 12, 2011 with a daily income of PhP1,800.00, was involved in an incident on August 28, 2016 when he drove the company bus to Matnog Port, Sorsogon.
A scheduling confusion occurred when a FastCat Ferry trip scheduled at 3:00 a.m. was unexpectedly altered by a company fixer, forcing passengers to take an earlier trip via Star Ferry due to ensuing discontent.
On August 31, 2016, following the incident, Abergos was summoned to explain the delay in ferry operations and, after submitting a written explanation, he was suspended for fifteen (15) days (September 1–15, 2016).
When Abergos reported back on September 16, 2016, he was informed by his supervisor, Mr. Sabino, that his employment had been terminated.

The Labor Arbiter rendered a decision on October 19, 2016 declaring Abergos’ dismissal illegal and ordered DLTB Co. and Morales to pay him backwages, separation pay, and attorney’s fees while dismissing other claims on merit.
Abergos filed a partial appeal with the National Labor Relations Commission (NLRC) contesting the award of separation pay in lieu of reinstatement.
On February 28, 2017, the NLRC modified the Labor Arbiter’s ruling by deleting the award of separation pay and ordering Abergos’ reinstatement without loss of seniority or privileges.

Petitioners (DLTB Co. and Morales) submitted various pieces of evidence to demonstrate Abergos’ numerous infractions during his employment, including:

Failure to stop for inspection shortly after hiring and subsequent warnings.
Incidents of arrogance and non-assistance of passengers dating from June 12, 2012, January 21, 2013, and multiple other dates, including reckless driving and confrontations with inspectors.
A specific incident on August 27, 2016, where Abergos allegedly violated company rules by insisting on loading passengers onto the FastCat Ferry rather than allowing the earliest arriving Star Ferry passengers to board.

Petitioners contended that due to his record of infractions and misconduct, reinstatement was not in the best interest of the parties, thereby justifying the award of separation pay instead.
Evidence regarding “strained relations” was belatedly introduced by petitioners when the NLRC modified the earlier Labor Arbiter decision.

Abergos, notwithstanding the submission of his claims and the NLRC’s subsequent modification ordering his reinstatement, failed to file a necessary motion for reconsideration of the NLRC Resolution prior to filing his petition for certiorari with the Court of Appeals (CA).
Petitioners argued that the NLRC erred by changing from separation pay to reinstatement, contending that the established company rules and Abergos’ conduct warranted the original award of separation pay in lieu of reinstatement.
The CA ultimately had to address whether belated evidence and procedural lapses, specifically the failure to file a proper motion for reconsideration, affected the propriety of the petition for certiorari.

Whether the CA erred in entertaining Abergos’ petition for certiorari despite his failure to file a motion for reconsideration of the NLRC Resolution dated May 24, 2017.
Whether the CA erred in reversing the NLRC’s award of separation pay in lieu of reinstatement, especially when the Labor Arbiter had originally awarded separation pay and petitioners had not formally appealed on that issue.
Whether there exists a supervening event that rendered the CA’s directive of reinstatement impossible or inapplicable, given the temporal sequence and finality of the NLRC Resolution.