Title
Deoferio vs. Intel Technology Philippines, Inc.
Case
G.R. No. 202996
Decision Date
Jun 18, 2014
Employee dismissed for schizophrenia, certified incurable within six months; employer violated procedural due process, awarded nominal damages; claims for backwages, damages denied.
A

Case Digest (G.R. No. 202996)

Facts:

  • Employment and assignment history
    • Petitioner Marlo A. Deoferio was employed by Intel Technology Philippines, Inc. (Intel) on February 1, 1996 as a product quality and reliability engineer with a monthly salary of P9,000.00.
    • In July 2001, Intel assigned Deoferio to the United States as a validation engineer for an agreed period of two years with a monthly salary of US$3,000.00.
    • On January 27, 2002, Deoferio was repatriated to the Philippines after confinement at Providence St. Vincent Medical Center for major depression with psychosis.
    • In the Philippines, Deoferio worked as a product engineer with a monthly salary of P23,000.00.
  • Medical findings and treatment
    • Deoferio underwent medical and psychiatric treatment at Intel's expense following his confinement in the United States.
    • In 2002, Dr. Elizabeth Rondain of Makati Medical Center diagnosed *mood disorder, major depression, and auditory hallucination*.
    • Deoferio was referred to Dr. Norieta Balderrama, Intel's forensic psychologist, and to Dr. Cynthia Leynes, who confirmed his mental condition.
    • On August 8, 2005, Dr. Paul Lee, consultant psychiatrist of the Philippine General Hospital, concluded that Deoferio was suffering from *schizophrenia*.
    • On January 17, 2006, Dr. Lee issued a psychiatric report stating that Deoferio's psychotic symptoms were not curable within six months and would negatively affect his work and social relations.
  • Termination and administrative actions
    • Pursuant to Dr. Lee's findings, Intel issued Deoferio a notice of termination on March 10, 2006.
    • Deoferio had prior incidents and absences cited by Intel: a May 8, 2003 email with an unusual message; January 18, 2005 acts of cutting mouse cables, stepping on keyboards, and disarranging desks; absences from January 31 to February 28, 2002; August to September 2002; May to July 2003; and administrative leave with pay from January 2005 until December 2005.
  • Administrative and civil claims arising from termination
    • On termination, Deoferio filed a complaint for illegal dismissal with money claims against Intel and Mike Wentling; he denied any mental illness and asserted satisfactory performance.
    • Deoferio alleged violation of his statutory right to procedural due process, claimed salary differential for his U.S. assignment, and prayed for backwages, separation pay, moral and exemplary damages, and attorneys fees.
    • Intel and Wentling defended that dismissal was justified based on Dr. Lee's certification that the disease was non-curable within six months and that continued employment would be prejudicial to Deoferio and co-employees.
    • Intel contended that the twin-notice requirement did not apply to terminations under Article 284 of the Labor Code and that the Labor Code IRR required only a competent public health authority's certification; Intel also asserted that separation and retirement payments of P247,517.35 had been offset by a company car loan of P448,132.43.
    • Intel maintained that it relied in good faith on Dr. Lee and denied liability for moral and exemplary damages and attorneys fees.
  • Labor tribunal proceedings and appellate history
    • The Labor Arbiter rendered a decision dated March 6, 2008 ruling that Deoferio was validly dismissed, giving weight to Dr. Lee's certification and holding that the twin-notice requirement did not apply to disease dismissals.
    • The National Labor Relations Commission (NLRC) wholly affirmed the Labor Arbiter's decision and denied Deoferio's motion for reconsideration....(Subscriber-Only)

Issues:

  • Factual and substantive grounds for dismissal
    • Whether Deoferio was suffering from schizophrenia and whether his continued employment was prejudicial to his health and to the health of his co-employees.
  • Procedural due process in disease-based dismissals and related remedies
    • Whether the twin-notice requirement applies to terminations under Article 284 of the Labor Code.
    • Whether Deoferio is entitled to nominal damages for violation of his right to statutory procedural due process.
    • Whether Intel and Mike Wentling are solidarily liable to Deoferio for nominal...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

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