Title
Salaw vs. National Labor Relations Commission
Case
G.R. No. 90786
Decision Date
Sep 27, 1991
Employee dismissed for alleged misconduct; Supreme Court ruled dismissal illegal due to denial of due process, including right to counsel, ordering reinstatement with backwages.

Case Digest (G.R. No. 90786)
Expanded Legal Reasoning Model

Facts:

  • Employment Background
    • Petitioner Espero Santos Salaw was employed by Associated Bank in September 1967 as a credit investigator-appraiser.
    • His duties included inspecting and appraising foreclosed assets, valuing real properties, and verifying the genuineness and titles of mortgaged properties.
  • CIS Interrogation and Sworn Statement
    • On November 27, 1984, the Criminal Investigation Service (CIS) of the Philippine Constabulary extracted from Salaw, without counsel, a three-page Sworn Statement.
    • The Statement alleged that Salaw and a co-employee sold twenty sewing machines and electric generators foreclosed by the bank for ₱60,000, splitting the proceeds equally (₱30,000 each).
  • Bank Investigation and Termination
    • On December 5, 1984, Rollie Tuazon, bank manager, called Salaw to appear before the bank’s Personnel Discipline and Investigation Committee (PDIC).
    • A hearing was scheduled for February 28, 1985 at 11:00 a.m., “without counsel or representative.”
    • On April 1, 1985 (effective March 27, 1985), Salaw was dismissed for “serious misconduct or willful disobedience and fraud or willful breach of trust.”
  • Labor Proceedings
    • April 17, 1985: Salaw filed a complaint for illegal dismissal with the NLRC (NCR-4-1272-85), and recanted his CIS Sworn Statement.
    • March 29, 1988: Labor Arbiter Villarente declared the dismissal illegal and ordered reinstatement with backwages.
    • July 26, 1989: NLRC reversed the arbiter’s decision and dismissed the case for lack of merit.
    • October 31, 1989: NLRC denied petitioner’s motion for reconsideration.
    • Petitioner filed a petition for certiorari with the Supreme Court.

Issues:

  • Substantive Justification
    • Whether the petitioner’s dismissal was for a valid or authorized cause under the Labor Code.
  • Procedural Due Process
    • Whether the petitioner was afforded the twin requirements of notice and hearing, including the right to counsel, before dismissal.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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