Title
1st Glory Philippines, Inc. vs. Lumantao
Case
G.R. No. 237166
Decision Date
Mar 6, 2019
FGPI dismissed employees for RFID manipulation; SC upheld dismissal for fraud but ruled Lumantao’s termination illegal due to disproportionate penalty and procedural lapses.

Case Summary (G.R. No. 237166)

Procedural History

The case came before the Supreme Court through a Petition for Review on Certiorari under Rule 45, challenging the Decision dated April 27, 2017, and the Resolution dated November 20, 2017, from the Court of Appeals (CA), which reversed the National Labor Relations Commission's (NLRC) previous ruling that upheld the dismissal of the respondents for just cause.

Background of Dismissals

On August 16, 2013, FGPI issued memoranda to the respondents, outlining several alleged misconducts regarding the manipulation of performance ratings through the RFID system. The respondents were placed under preventive suspension for thirty days, during which they failed to respond to the allegations or appear for investigation on multiple occasions. They eventually filed complaints of unfair labor practice and illegal dismissal after their employment was terminated on September 13, 2013.

Labor Arbiter and NLRC Decisions

The Labor Arbiter dismissed the respondents' complaints, concluding that their termination was valid due to just cause and proper procedural due process. The NLRC affirmed this decision, rejecting the claim of union discrimination as speculative and emphasizing the respondents’ failure to effectively counter the allegations brought against them, which deviated from their expectations as union officials.

Court of Appeals Ruling

Upon appeal by the respondents, the CA reversed the NLRC's ruling, articulating that FGPI failed to provide adequate proof that the dismissals were proportionate to the offenses committed. The CA acknowledged that while there was no evidence of union busting, the failure to present specific copies of the RFID directives weakened FGPI's case for just cause.

Supreme Court's Ruling and Findings

The Supreme Court noted that it generally respects the findings of fact made by the Labor Arbiter and the NLRC but recognized exceptions where factual conclusions diverge significantly from established precedence. During its review, the High Court found that FGPI sufficiently demonstrated that the respondents had violated company policies through their manipulations of the RFID performance metrics.

Discrepancies and Just Cause for Dismissals

The Court elucidated that the respondents (excluding Lumantao) engaged in fraudulent acts by misrepresenting their efficiency, which amounted to severe breaches of trust justifying their termination under Article 297 of the Labor Code. The Court emphasized the evidence presented by FGPI regarding this manipulation and the respondents’ lack of counter-evidence to refute the claims.

Decision Regarding Lumantao

In contrast, the Court agreed with the CA regarding Lumantao’s case, wh

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