G.R. No. 197384 - Sampaguita Auto Transport Corp. vs. National Labor Relations Commission

Sampaguita Auto Transport Corporation — Petitioner; employer; alleged to have employed respondent as a bus driver.
Efren I. Sagad — Respondent; charged petitioner with illegal dismissal and damages; alleged to have been hired as a regular bus driver.
Other individuals named in the complaint — Andy Adagio (President and General Manager), Monina Ariola Adagio (Vice-President and Finance Manager), Virgilio Olunan/Olonan (Operations Manager), Gerry Dimate (HRO Officer); all respondents in the primary labor complaint.

Petitioner contended it hired Sagad as a probationary bus driver from May 14, 2006 to October 14, 2006, evidenced by a probationary employment contract admitted in evidence.
Sagad denied executing the probationary contract and disowned the signature on the document, asserting the signature was a forgery.
Petitioner submitted other employment papers and relied on a letter dated October 16, 2006 from Sagad requesting another chance as evidence that Sagad acknowledged probationary status; Sagad denied authorship of that letter and its signature.

Petitioner described company policies requiring probationary employees to be evaluated, including deployment of an undercover evaluator aboard buses.
On September 21, 2006, a company evaluator reported that Sagad drove recklessly, engaged in racing and jostling for position, picked up passengers in the middle of the road, and otherwise endangered passengers.
Sagad disputed the evaluator’s observations but admitted once chasing an Everlasting bus to warn its driver and occasionally speeding to make up lost time.
Conductors A. Hemoroz and Israel Lucero allegedly reported that Sagad proposed schemes to cheat the company by making unreported early trips; Dispatcher E. Castillo submitted a negative evaluation recommending termination; Castillo’s October 13, 2006 evaluation cited low revenue, failure to make scheduled trips, and bringing his wife on trips.
Petitioner alleged Sagad was involved in a hit-and-run accident on September 9, 2006 involving bus Plate No. NYK-216, Body No. 3094, which he allegedly failed to report; traffic investigation report and sworn statements by other drivers, and an insurance letter demanding reimbursement, were submitted.

Petitioner alleged it terminated Sagad on October 15, 2006 at the conclusion of his probationary evaluation, citing failure to qualify for regular employment.
Sagad claimed he worked until November 4, 2006 and was dismissed on November 5, 2006 for alleged connivance with a conductor in issuing tickets outside assigned routes.
Petitioner did not refute Sagad’s claim that he remained in employment until early November 2006; payroll and payslips submitted by Sagad suggested payment through at least one payroll period in the first week of November.

Sagad filed a complaint dated August 10, 2007 for illegal dismissal, damages, and attorney’s fees before the Labor Arbiter.
Labor Arbiter Marita...(Subscriber-Only)

Whether Sagad was illegally dismissed by Sampaguita Auto Transport Corporation.
Whether Sagad was a probationary employee at the time of dismissal or had attained regular status.
Whether Sagad is entitled to backwages and separation pay totaling P604,050.00.

Petitioner’s contentions: the probationary employment contract and other employment papers, including Sagad’s October 16, 2006 letter, proved probationary status; petitioner acted in good faith; petitioner properly terminated a probationary employee and thus need not follow dismissal procedures for regular employees; the NLRC’s backwages and separation pay award is excessive and unsupported.
Sagad’s contentions: the signatures on the probationary...(Subscriber-Only)