Title
Bicol Isarog Transport System, Inc. vs. Relucio
Case
G.R. No. 234725
Decision Date
Sep 16, 2020
Bus driver dismissed for insubordination; employer failed procedural due process, awarded P30,000 nominal damages, other claims denied.

Case Summary (G.R. No. 234725)

Facts of the Case

Roy R. Relucio, the respondent, filed a complaint with the Labor Arbiter against Bicol Isarog Transport System, Inc., along with its officers, alleging illegal dismissal, suspension, wage underpayment, and other labor-related claims. Relucio claimed he was unlawfully dismissed on March 30, 2013, after being suspended without due process. Conversely, Bicol Isarog contended that Relucio was a probationary employee initially and later became a regular employee and had violated company policies relating to the submission of reports and compliance with operational directives.

Legal Proceedings Overview

The Labor Arbiter dismissed Relucio's complaint, affirming that Bicol Isarog had sufficient grounds for dismissal, citing insubordination and procedural compliance in the termination process. The National Labor Relations Commission (NLRC) upheld the Arbiter's ruling. Unsatisfied with the NLRC's decision, Relucio appealed to the Court of Appeals, which later ruled in his favor on March 30, 2017, determining that his dismissal was illegal due to Bicol Isarog's failure to establish just cause and adhere to procedural due process.

Court of Appeals Decision

The Court of Appeals concluded that Bicol Isarog failed to meet its burden of proof regarding the just causes for termination and did not properly serve the requisite memoranda to Relucio. The CA emphasized that the notices regarding dismissal did not reach him, thus failing to provide him a chance to respond adequately. Consequently, the CA ordered Relucio's reinstatement and the payment of back wages and benefits.

Issues Presented

Bicol Isarog petitioned for review, arguing that it complied with procedural requirements for dismissal under the Labor Code and contending that Relucio's failure to report for duty constituted a substantial ground for dismissal. Relucio responded by asserting that he did not disregard any instructions, maintaining he was unavailable to meet the company representatives in Manila upon his return.

Substantive and Procedural Due Process

The Supreme Court emphasized the need to distinguish between substantive due process, which pertains to the existence of a valid cause for termination, and procedural due process, which concerns the manner in which the termination is executed. The employer bears the onus of proving compliance with both aspects. The dismissal for insubordination must be predicated on willful disobedience of lawful orders that are reasonable and relevant to the employee's duties.

Findings on Just Cause and Due Process Compliance

The Court found that the directives given to

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