Title
Electruck Asia, Inc. vs. Meris
Case
G.R. No. 147031
Decision Date
Jul 27, 2004
Employees dismissed for alleged misconduct; court ruled illegal due to lack of evidence and due process, awarding separation pay and backwages.

Case Summary (G.R. No. 210308)

Factual Background

On December 12, 1995, a warning letter signed by the petitioner's Works Manager and General Manager was issued to all night shift workers, emphasizing the expectation for improved output. Following this, a second warning was sent to the fabrication staff on January 4, 1996, citing absenteeism and subpar work quality. Eventually, on January 20, 1996, the respondents received termination letters outlining their dismissal due to violations of company rules concerning sleeping on duty, performance inefficiency, and unauthorized schedule changes.

Legal Action and Claims

On February 1, 1996, the dismissed employees filed a complaint for illegal dismissal with a request for reinstatement, full backwages, and retention of seniority rights. They contended that their termination did not follow due process and that they were unfairly accused of wholesale violations of the company's regulations. The petitioner claimed that the dismissals were justified based on serious misconduct, alleging that the employees were caught sleeping on duty.

Labor Arbiter's Decision

Labor Arbiter Emiliano T. De Asis ruled in favor of the petitioner, asserting that the respondents' actions constituted dishonesty that warranted their dismissal. However, the Labor Arbiter acknowledged that the dismissal process lacked adherence to due process and ordered compensation of P1,000.00 to each dismissed employee.

Appeal to the National Labor Relations Commission (NLRC)

The respondents appealed the Labor Arbiter's decision to the NLRC, arguing that the mass dismissal was arbitrary and that their rights were violated. The NLRC ultimately upheld the Labor Arbiter's decision, concluding that the dismissal was valid.

Court of Appeals' Review and Ruling

The respondents then filed a petition for certiorari in the Court of Appeals. On July 31, 2000, the appellate court reversed the NLRC's decision, declaring that the employer failed to provide substantial evidence supporting just cause for the respondents' termination. The court held that the burden of proof lies with the employer to demonstrate that the dismissal was justified. It also emphasized that in any doubts concerning evidence, the scales must tilt in favor of the employees.

Supreme Court Decision

Electruck Asia filed a petition with the Supreme Court challenging the Court of Appeals' ruling. The Supreme Court affirmed the appellate court's decision, reiterating that the employer did not substantiate its claims through adequate evidence. The Court found that the lack of any sworn statements, along with the mere existence of warning letters, did not suffi

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