G.R. No. 106831 - Pepsi-Cola Distributors of the Philippines, Inc. vs. National Labor Relations Commission

Private respondent, Pedro B. Batin, was employed by petitioner Pepsi-Cola Distributors of the Philippines, Inc. as a salesman since 1978.
In March 1985, he was promoted to Field Sales Manager and assigned to the Warehouse in Urdaneta, Pangasinan.

In May 1988, private respondent received various memoranda from the petitioner suspending him from work due to several alleged acts:

Negligence in performance and incomplete, improper accomplishment of the Route Sales Report.
Failure to achieve sales commitments.
Unauthorized extension of credit (IOUas) to customers.

A three-day suspension on May 9, 10, and 24, 1988 as per two separate memoranda.
An additional suspension effective May 25, 1988 for an unspecified duration.

Restated the charges previously levied against private respondent.
Announced the commencement of an administrative investigation set for June 10, 1988, with the understanding that failure or refusal to appear would result in waiver of his opportunity to be heard.

On May 23, 1988, salesmen and helpers at the Urdaneta Warehouse signed a letter addressed to the Regional Sales Manager alleging:

Private respondent was sleeping in the route truck during rides rather than attending to customers.
He compelled his subordinates to pay for his meals and required them to submit receipts for reimbursements.
He facilitated fictitious purchases of 2,000 cases of assorted Pepsi products for personal benefit by making them appear as transactions for other accounts.
He displayed inhuman treatment toward subordinates.

Petitioner’s internal administrative investigation culminated in allegations that private respondent:

Committed grave abuse of authority, gross misbehavior, and conduct unbecoming of a managerial employee by neglecting duties and mistreating subordinates.
Engaged in conflict of interest and dishonesty by personally acquiring 2,000 cases of Pepsi products at a lower price, selling them at an adjusted price, and misusing company resources.
Had been previously penalized with suspensions for infractions like sleeping while on duty and failing to complete reports, with the present charges adding to his disciplinary record.

A subsequent notice from the Regional Sales Manager informed him of the decision to terminate his employment effective October 7, 1988.

Private respondent filed a complaint before the Labor Arbiter declaring his dismissal illegal and seeking:

Reinstatement to his former or substantially equivalent position.
Backwages, 13th month pay, unused vacation and sick leave pay, and reimbursement for uniform expenses.

Declared the termination illegal and ordered reinstatement with full benefits.
Awarded various monetary compensations including backwages computed for the period of dismissal and suspension.

Petitioner, whose juridical personality ceased on July 24, 1989, appealed to the NLRC, which affirmed the Labor Arbiter’s decision.
Petitioner’s Motion for Reconsideration was denied, prompting the filing of a petition for certiorari with this Court.

The petitioner alleged grave abuse of discretion by the NLRC on two primary grounds:

Assessment centered on whether the opportunity to be heard was genuinely afforded.
Consideration of whether the written notices and preventive suspension mechanism sufficed under administrative due process.

The inquiry focused on whether the dismissal met the requirements prescribed by Article 282 of the Labor Code.
Evaluation of the evidence surrounding allegations of grave abuse of authority, gross misbehavior, conflict of interest, and dishonesty.