Title
Dosch vs. National Labor Relations Commission
Case
G.R. No. L-51182
Decision Date
Jul 5, 1983
An American manager refused a promotion-transfer due to family reasons; his employer deemed it resignation. SC ruled his dismissal unjust, ordering reinstatement with backwages.

Case Digest (G.R. No. 160792)
Expanded Legal Reasoning Model

Facts:

Employment Background: Petitioner Helmut Dosch, an American citizen married to a Filipina, was the Resident Manager of Northwest Airlines, Inc. (Northwest) in the Philippines. He had served the company for 11 years, including nine years as Manager in Manila.

Promotion and Transfer Order:
On August 18, 1975, Dosch received an inter-office communication from R.C. Jenkins, Northwest’s Vice President for the Orient Region, promoting him to Director of International Sales and transferring him to the company’s General Office in Minneapolis, U.S.A., effective immediately. The letter emphasized that Dosch’s assignment in the Philippines had exceeded the normal duration for overseas managers.

Refusal of Transfer:
On August 28, 1975, Dosch responded, expressing appreciation for the promotion but declining the transfer due to “personal reasons and reasons involving my family.” He stated his preference to remain as Manager-Philippines until his services were no longer required by Northwest.

Attempted Resumption of Duties:
On September 4, 1975, Dosch issued a memorandum to the Manila staff, announcing his resumption of duties as Manager-Philippines. He also sent telegrams to company officials, reiterating his desire to remain in his position.

Termination of Employment:
On September 9, 1975, Jenkins informed Dosch that his status as an employee ceased on August 31, 1975, and considered his August 28 letter a “resignation without notice.” Northwest filed a Report on Resignation of Managerial Employee with the Department of Labor on September 16, 1975.

Labor Arbitration Proceedings:
The case was certified for compulsory arbitration. The Labor Arbiter ruled in favor of Dosch, ordering his reinstatement with full backwages and benefits. Northwest appealed to the National Labor Relations Commission (NLRC), which reversed the Labor Arbiter’s decision, dismissing the case for lack of merit.

Issues:

  • Whether Dosch voluntarily resigned from his position.
  • Whether Dosch’s refusal to comply with the transfer order constituted just cause for dismissal.
  • Whether prior clearance was required to terminate Dosch, a managerial employee.
  • Whether reinstatement, backwages, and attorney’s fees were appropriate remedies.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court emphasized that labor cases should be decided not only based on reason (secundum rationem) but also with compassion (secundum caritatem). Dosch’s 11 years of loyal service were a significant factor in the Court’s decision to order his reinstatement.

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