G.R. No. 123880 - Maranaw Hotels and Resort Corp. vs. National Labor Relations Commission

On April 2, 1992, Eddie Damalerio, a room attendant of Century Park Sheraton Hotel operated by Maranaw Hotel and Resort Corporation, was observed by hotel guest Jamie Glaser with his left hand inside Glaser’s suitcase.
Upon confrontation, Damalerio explained that he was merely tidying up the room.
Glaser, unsatisfied with the explanation and recalling previous instances when Damalerio had solicited souvenirs, cassettes, and other giveaways, lodged a written complaint with the hotel’s shift-in-charge of security, William D. Despuig.

The complaint was subsequently brought to the attention of Major Eddie Buluran, the hotel’s chief of security.
On April 3, 1992, Damalerio was issued a Disciplinary Action Notice (DAN).
An administrative hearing was conducted on April 4, 1992, where several witnesses testified:

During the hearing, Damalerio testified on his own behalf, explaining that while cleaning Glaser’s room, he noted scattered personal belongings (e.g., socks, T-shirts) and began tidying by placing these items in his luggage when Glaser unexpectedly entered the room; the two even engaged in casual conversation thereafter.

On April 13, 1992, Damalerio received a memorandum issued by Alfredo San Gabriel, Sr., Floor Supervisor, with the approval of Nicolas R. Kirit, Executive Housekeeper.
The memorandum charged him with committing qualified theft in violation of House Rule No. 1, Section 3 of the Hotel Rules and Regulations.
The same memorandum served as a notice of termination, effectively ending Damalerio’s employment.

On May 19, 1992, Damalerio filed a complaint for illegal dismissal before the Labor Arbiter.
On August 20, 1993, after the submission of position papers by both parties, Labor Arbiter Ceferina J. Diosana rendered a decision:

The dismissal was found to be illegal.
Damalerio was ordered to be reinstated to his former or equivalent position with full backwages (from the commencement of his preventive suspension on April 15, 1992), seniority rights, and other benefits including his share of service charges and tips.

The petitioner (Maranaw Hotels and Resort Corporation) appealed the Labor Arbiter’s decision to the National Labor Relations Commission (NLRC), which modified the decision:

Instead of reinstatement, the petitioner was given the option of paying Damalerio a separation pay at the rate of one (1) month’s pay for every year of service.

The petitioner’s motion for reconsideration before the NLRC was denied on January 30, 1996.
Subsequently, the petitioner elevated the case to the Supreme Court via a special civil action for certiorari under Rule 65, contesting the NLRC’s finding of insufficient conclusive evidence and the decision regarding service charge benefits.

Whether the NLRC committed grave abuse of discretion amounting to lack of jurisdiction by holding that the petitioner failed to adduce conclusive evidence in support of its version of the incident, particularly in light of allegations that Damalerio was caught in flagrante delicto.

Analysis required the examination of the evidentiary basis for asserting that Damalerio committed qualified theft.
The incident was appraised against the backdrop of Damalerio’s plausible explanation of merely cleaning and tidying the hotel room.

Whether the NLRC committed grave abuse of discretion amounting to lack of jurisdiction by not reversing the Labor Arbiter’s decision ordering the petitioner to pay Damalerio his share in the service charges collected during his preventive suspension.

This issue involved the proper computation of Damalerio’s earnings and benefits during the period of his alleged preventive suspension.
It necessitated an evaluation of whether such service charges formed an integral part of his remuneration.