Case Summary (G.R. No. 163607)
Employment Background and Performance Issues
Prudencio J. Diasnes began his employment with Central Philippines Bandag Retreaders, Inc. and was recognized for his strong performance, receiving multiple awards. However, following his promotion to sales manager in 1995, his performance deteriorated. He was suspended for six days due to dishonored checks, and his tardiness and absences increased significantly.
Termination Process and Reasons
On January 2, 1996, Diasnes was relieved from his position. Following a meeting with the Employee Adjudication Committee, he was given several options, including relief for three months, a different position, or voluntary retirement with separation pay, none of which he opted for. Instead, he requested a transfer to Cebu City, where his performance remained poor, and he failed to report to work for 26 consecutive days.
Dismissal and Legal Proceedings
On November 11, 1996, Diasnes was dismissed from service for gross and habitual neglect of duty, with grounds including unexcused absenteeism and tardiness. Diasnes contested this dismissal and filed a complaint for illegal dismissal, seeking payment of salaries, allowances, and separation pay, which was initially awarded by the Labor Arbiter but later modified by the NLRC.
Appeals and NLRC Decisions
Both parties appealed the Labor Arbiter's decision. The NLRC affirmed the dismissal but later partially granted reconsideration, revoking the separation pay award due to the lack of evidence for an established policy regarding separation pay at Bandag. Diasnes subsequently filed a petition with the Court of Appeals, which initially restored his right to separation pay based on recommendations from the Employee Adjudication Committee and social justice considerations.
Supreme Court's Analysis and Ruling
Upon review, the Supreme Court held that the recommendation for separation pay was conditional and depended on Diasnes' voluntary resignation—circumstances which were not present at the time of his dismissal. The Court emphasized that separation pay is typically granted only upon fulfillment of specific conditions outlined in the Labor Code, which did not apply in this instance since Diasnes was dis
...continue readingCase Syllabus (G.R. No. 163607)
Case Background
- Respondent Prudencio J. Diasnes was employed by petitioner Central Philippines Bandag Retreaders, Inc. (Bandag) as a technical service representative, later promoted to sales manager/officer-in-charge in 1995.
- Diasnes' performance initially garnered recognition through awards and citations.
- Following his promotion, Diasnes' work performance began to decline, marked by a series of dishonored checks attributed to him and increased instances of tardiness and absenteeism.
Events Leading to Dismissal
- In January 1996, Diasnes received a memorandum relieving him of his duties as sales manager for Region VIII due to his declining performance.
- An Employee Adjudication Committee recommended a three-month relief from his position, with options to return to work or retire with separation pay.
- Diasnes opted for a transfer to Cebu City instead of accepting the committee's recommendations.
- His performance in Cebu City was poor, compounded by a lack of attendance, reporting to work only 25 out of 50 days from September to October 1996.
Show-Cause Letter and Dismissal
- On October 31, 1996, Bandag issued a show-cause letter addressing Diasnes' habitual tardiness and absenteeism, demanding a written explanation.
- Diasnes' explanation was deemed insu