Title
Musahamat Workers Labor Union-1-ALU vs. Musahamat Farms, Inc., Farm 1
Case
G.R. No. 240184
Decision Date
Jul 6, 2022
Watchmen dismissed for alleged banana chopping; Supreme Court ruled no just cause, due process observed, awarded backwages and separation pay.

Case Digest (G.R. No. 240184)

Facts:

  • Parties and Employment
    • Ernesto Suril, Jr., Elvin Suril, Jhonel Suril, Nanding Abana, and Nonito Cabillon (collectively, the watchmen) were employed as watchmen by Musahamat Farms, Inc. Farm 1 (respondent), a banana plantation and export corporation based in Davao City.
  • Reassignment and Incident
    • On February 14, 2016, Anthony R. Pablo, respondent's Security Officer, announced the reassignment of all watchmen to farm operations starting February 15, 2016.
    • The watchmen protested, asserting they were children of the landowners who leased farms to respondent and should not be assigned production work.
    • On February 15, 2016, respondent discovered that several banana bunches were chopped down at Blocks 6A and 7A of HKJ 2 Farm.
  • Investigation and Suspension
    • Respondent initiated an investigation into the banana chopping incident.
    • On March 3, 2016, respondent issued a preventive suspension notice for 15 days to the watchmen, effective from March 8 to 24, 2016.
    • A grievance meeting was scheduled for March 22, 2016, attended only by Ernesto.
    • Another preventive suspension notice was issued on March 23, 2016, effective from March 26 to April 13, 2016.
  • Termination and Grievance
    • After concluding the investigation, respondent terminated the watchmen on April 12, 2016, effective April 14, 2016.
    • A second grievance meeting was held on April 15, 2016, where parties agreed to elevate the dispute to a third party.
  • Contentions and Voluntary Arbitrator's Decision
    • The watchmen claimed lack of due process and that the dismissal was based on hearsay evidence.
    • Respondent maintained the dismissal was legal, grounded on serious misconduct and loss of trust and confidence.
    • The Voluntary Arbitrator found the dismissal illegal, reasoning:
      • The employer failed to prove allegations by substantial evidence; affidavits relied on were from witnesses with unestablished credibility and no personal acquaintance with the watchmen.
      • The alleged February 19, 2016 meeting where a witness purportedly identified the watchmen was unsubstantiated.
      • The preventive suspension notices did not specify charges, depriving the watchmen of the chance to defend themselves.
    • The Voluntary Arbitrator ordered reinstatement or, if not feasible, payment of back wages, separation pay, damages, and attorney’s fees.
  • Court of Appeals Decision
    • The CA reversed the Voluntary Arbitrator’s decision.
    • It found the February 19, 2016 meeting occurred and that testimonies could serve as circumstantial evidence.
    • The CA held respondent substantially complied with procedural due process.
    • It declared the dismissal valid and legal.
  • Petition for Review
    • The watchmen filed a Petition for Review on Certiorari before the Supreme Court.

Issues:

  • Whether the dismissal of the watchmen was for a just and valid cause.
  • Whether procedural due process was observed in the dismissal of the watchmen.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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