G.R. No. 124617 - Phil. Aeolus Auto-Motive United Corp. vs. National Labor Relations Commission

Petitioner Philippine Aeolus Automotive United Corporation (PAAUC) is a corporation organized under Philippine laws; Francis Chua is its President.
Respondent Rosalinda C. Cortez was employed as a company nurse by PAAUC until her termination on November 7, 1994.

On October 5, 1994, PAAUC issued a memorandum to Cortez requiring her to explain within 48 hours why disciplinary action should not be taken on three charges:

Throwing a stapler at Plant Manager William Chua and uttering invectives on August 2, 1994.
Losing P1,488.00 entrusted to her for transmittal on August 23, 1994.
Having a co-employee punch-in her time card on the morning of September 6, 1994, to falsely show attendance.

Cortez refused to receive the memorandum and did not timely submit an explanation.
While investigation was pending, she was placed under a 30-day preventive suspension from October 9 to November 7, 1994.
On October 20, 1994, another memorandum required Cortez to explain why no disciplinary action should be taken for allegedly failing to process ATM card applications for nine co-employees with Allied Banking Corporation.
Again, Cortez refused to receive the memorandum but a copy was sent to her by registered mail.
Cortez submitted a written explanation regarding the lost money and time card punching.
On November 3, 1994, a third memorandum informed her of termination effective November 7, 1994 on grounds of gross and habitual neglect of duties, serious misconduct, and fraud or willful breach of trust.

On December 6, 1994, Cortez filed a complaint for illegal dismissal and non-payment of benefits with the Labor Arbiter.
On July 10, 1995, the Labor Arbiter ruled in favor of petitioners, finding the dismissal valid and legal, and dismissed claims for damages.
The NLRC reversed the Labor Arbiter’s decision on February 15, 1996, ruling dismissal illegal and ordering reinstatement with back wages.
Petitioners’ motion for reconsideration was denied on March 28, 1996.
Petitioners filed this petition for certiorari seeking to set aside the NLRC decisions.

August 2, 1994: gross disrespect to superior for throwing stapler and invectives.
August 23, 1994: loss of entrusted money of P1,488.00 not recovered.
September 6, 1994: instructing another employee to punch-in her time card while she was absent.
July 28, 1994 to September 24, 1994: failure to process ATM card applications and deposits for nine employees; deposits were delayed by about a month.

Regarding the first charge, Cortez alleged persistent sexual harassment and abusive advances by Plant Manager William Chua spanning four years, which she refused; later the plant manager harassed and threatened her with termination if she did not comply.
On the second charge, she claimed the money was handed to the responsible company personnel for transmittal as evidenced by a signed receipt.
On the third charge, she admitted asking a co-employee to punch her time card because she was running a company officer's errand with permission from Plant Manager Chua, and that the practice was apparently tolerated.
On the fourth charge, she denied knowledge and responsibility for processing ATM cards as it was not part of her duties as a nurse.

Whether the NLRC gravely abused its discretion in declaring the dismissal of Rosalinda C. Cortez illegal.
Whether Rosalinda C. Cortez is entitled to moral and exemplary damages for the circumstances surrounding her dismissal.