G.R. No. 162035 - Cantoria vs. Commission on Elections

Petitioner King of Kings Transport, Inc. (KKTI) is a public transportation corporation managed by Claire Dela Fuente and Melissa Lim.
Respondent Santiago O. Mamac was hired as a bus conductor on April 29, 1999 by Don Mariano Transit Corporation (DMTC) and was later transferred to KKTI.
DMTC employees formed the Damayan ng mga Manggagawa, Tsuper at Conductor-Transport Workers Union; KKTI employees formed the Kaisahan ng mga Kawani sa King of Kings (KKKK) with Mamac as president.

Conductors must submit a “Conductor’s Trip Report” after each trip; KKTI audits these reports and issues an “Irregularity Report” for any discrepancy.
The Irregularity Report is supposed to detail the offense, allow the employee to explain in writing, and indicate KKTI’s final decision and penalty.

KKTI’s audit found that Mamac declared sold tickets as returned, causing an ₱890 loss; no formal Irregularity Report was issued but KKTI requested an explanation.
Mamac’s letter explained confusion due to a smashed windshield and an emergency police report, causing errors in his Trip Report.
On November 26, 2001, KKTI issued a termination letter effective November 29, 2001, citing fraud in the October 28 report and prior infractions since 1999.

December 11, 2001: Mamac filed a complaint for illegal dismissal, illegal deductions, nonpayment of 13th-month pay, service incentive leave, and separation pay, alleging anti-union bias and lack of due process.
April 3, 2002: KKTI’s position paper asserted just cause, claimed due process was observed, and argued Mamac was not entitled to benefits because he was paid on commission.
September 16, 2002: Labor Arbiter Reyes dismissed Mamac’s complaint for lack of merit.
August 29, 2003: NLRC modified the arbiter’s decision, ordering KKTI to indemnify Mamac ₱10,000 for due process violation; other findings were affirmed.
November 14, 2003: NLRC denied KKTI’s motion for reconsideration; KKTI petitioned the Court of Appeals (CA) for certiorari.
September 16, 2004: The CA affirmed just cause for dismissal, found procedural due process violation, and (applying Serrano v. NLRC) awarded full backwages and 13th-month pay.
December 2, 2004: The CA denied reconsideration of its decision.

Whether the CA erred in awarding full backwages despite the denial of KKTI’s certiorari petition.
Whether the CA erred in ruling that KKTI failed to comply with procedural due process before Mamac’s dismissal.
Whether the CA erred in awarding 13th-month pay contrary to Presidential Decree No. 851.