Case Digest (G.R. No. 69870)
Facts:
National Service Corporation (NASECO) and Arturo L. Perez employed Eugenia C. Credo from 18 July 1975 and promoted her to Chief of Property and Records on 10 March 1980. In November 1983 Credo was administratively charged for alleged discourtesy and insubordination, placed on a fifteen-day "Forced Leave" effective 8 November 1983, and thereafter served a Notice of Termination dated 24 November 1983 effective 1 December 1983.
Credo filed complaints with the Arbitration Branch and a supplemental illegal dismissal complaint; the labor arbiter dismissed her complaint but awarded separation pay, while the National Labor Relations Commission reversed on 28 November 1984 ordering reinstatement with six months' backwages and denying attorney's fees and moral/exemplary damages, and denied motions for reconsideration on 16 January 1985, prompting these consolidated certiorari petitions to the Court.
Issues:
- Did the NLRC act with grave abuse of discretion in ordering Credo's reinstatement and backwages?
- Did the NLRC err in dismissing Credo's claims for attorney's fees, moral and exemplary damages and in limiting backwages to six months?
Ruling:
The Court affirmed the NLRC decision with modifications. The Court ordered reinstatement of Credo to her former or substantially equivalent position and awarded three years backwages from 1 December 1983, P5,000 for moral damages and P5,000 for attorney's fees, and directed payment of separation pay if reinstatement proved impossible.
The Court denied exemplary damages but increased the backwages and granted moral damages and attorney's fees because NASECO failed to afford Credo due process and the dismissal was not justified by proved causes.
Ratio:
The Court found that NASECO failed to comply with the statutory and regulatory safeguards for termination, notably the requirement of notice and an ample opportunity to be heard under Rule XIV, Book V, Implementing Rules and Regulations, rendering the hearing perfunctory and the Notice of Termination predated the supposed opportunity to defend. The alleged acts of misconduct were insufficiently proved and, where shown, were evidently condoned by prior employer inaction and favorable performance ratings, so dismissal was disproportionate. Jurisdiction of the NLRC was affirmed on the ground that NASECO, as a subsidiary without an original charter, is not embraced by the Civil Service under Constitution (1987), Art. IX-B, Sec. 2(1) and thus labor remedies under the Labor Code, Art. III apply. Exemplary damages were denied for lack of wanton or malicious conduct, but moral damages and attorney's fees were awarded because the employee was compelled to litigate due to the unlawful dismissal.
Doctrine:
- An employer must give two written notices and afford an employee an ample opportunity to be heard before lawful dismissal, as required by Rule XIV, Book V, Implementing Rules and Regulations.
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