Title
Genesis Transport Service, Inc. vs. Unyon ng Malayang Manggagawa ng Genesis Transport
Case
G.R. No. 182114
Decision Date
Apr 5, 2010
Driver dismissed for reckless driving after due process; illegal toll fee deductions refunded; no nominal damages awarded; res judicata inapplicable.

Case Summary (G.R. No. 182114)

Applicable Law

The legal framework applicable in this case is governed by the 1987 Philippine Constitution and the Labor Code of the Philippines, particularly focusing on the provisions regarding employment termination, due process in disciplinary actions, and the legality of salary deductions without consent.

Employment Background and Termination

Juan Taroy was engaged as a driver on a commission basis beginning February 2, 1992. He was terminated on May 10, 2002, following an accident on April 20, 2002, where he was held responsible for reckless driving. Contesting his dismissal, Taroy filed a complaint on June 7, 2002, asserting that he was targeted for termination due to his union activities, which he argued was unfair labor practice, alongside claims for service incentive leave and illegal tollgate fee deductions.

Respondent's Position

Genesis Transport countered Taroy’s claims by asserting that his termination was justified based on multiple violations of company rules, including incidents of reckless driving, tardiness, and substance use. The company maintained that due process was followed as Taroy was given prior notice and opportunity to respond to the charges against him.

Labor Arbiter's Decision

The Labor Arbiter, in a decision dated June 30, 2004, ruled in favor of Genesis Transport in relation to the unlawful dismissal claim, concluding that the dismissal was for a valid cause and processed in accordance with due process requirements. However, concerning the tollgate fee deductions, the Arbiter sided with Taroy, considering the deductions were made without written consent, thus entitling him to a refund.

Appeal to the National Labor Relations Commission

Following the Arbiter's decision, both parties appealed to the National Labor Relations Commission (NLRC). The NLRC upheld the Arbiter's dismissal of the illegal dismissal claim and revised the decision by eliminating the award for attorney's fees while addressing Taroy's preventive suspension issue, which had been raised for the first time on appeal.

Court of Appeals Ruling

The Court of Appeals later affirmed the NLRC’s ruling but found that Genesis Transport had violated Taroy’s statutory rights by imposing a preventive suspension exceeding thirty days without proper resolution. As a result, nominal damages were awarded to Taroy, and the refund order for underpayment was reinstated.

Supreme Court's Review

Upon review, the Supreme Court considered whether Taroy had a valid claim regarding the refund of underpayment and whether his due process rights had been violated. The Court determined that the claims regarding res judicata due to prior NLRC cases lacked finality and that the allegations of practice in the transportation industry r

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