Case Summary (G.R. No. 175045-46)
Factual Background
On October 5, 2002, during the second shift (8:00 pm–5:00 am), Guard Altiche discovered respondents engaging in sexual intercourse on the factory floor’s Tool and Die section, using a piece of carton as a mattress. He reported the incident in writing to management, and Guard Ogana corroborated the account during a subsequent inspection. Respondents denied the charge, claiming they were merely sleeping and that others were present in the area.
Administrative Proceedings
Imasen issued inter-office memoranda (October 14 and 22, 2002) requiring respondents’ explanations and appearance at a formal hearing held on October 30, 2002. After hearing testimony, the company found respondents guilty of gross misconduct and terminated their services on December 4, 2002.
Labor Arbiter and NLRC Rulings
Respondents filed illegal dismissal complaints. On December 10, 2004, the Labor Arbiter dismissed their complaints, upholding dismissal for serious misconduct with due process. The National Labor Relations Commission affirmed on December 24, 2008, finding that petitioner established just cause under Article 282 (now Article 296) of the Labor Code and complied with procedural requirements.
Court of Appeals Ruling
On June 9, 2010, the Court of Appeals nullified the NLRC’s decision, agreeing that respondents committed the infraction and that due process was observed, but holding that the penalty of dismissal was disproportionate. It reduced the sanction to a three-month suspension, ordered reinstatement without loss of seniority, and granted backwages from December 4, 2002, less the suspension period.
Issue
Whether respondents’ conduct—engaging in sexual intercourse inside company premises during work hours—constitutes serious misconduct under Article 282 (now Article 296) of the Labor Code, justifying their dismissal.
Applicable Law
• 1987 Constitution: guarantees security of tenure (Art. 18, Sec. 3).
• Labor Code, Article 293 (formerly 279): prohibits termination except for just or authorized causes and requires due process.
• Labor Code, Article 296 (formerly 282): defines just causes for dismissal, including serious misconduct—an aggravated, willful transgression of established rules, related to employment duties, and committed with wrongful intent.
Court’s Analysis
The Court balanced workers’ tenurial security against the employer’s prerogative to maintain workplace standards. Serious misconduct requires (1) grave and aggravated character, (2) relation to employment duties, and (3) wrongful intent. Sexual intercourse between consenting adults is generally priva
...continue readingCase Syllabus (G.R. No. 175045-46)
Factual Antecedents
- Imasen Philippine Manufacturing Corporation is a domestic company producing auto seat-recliners and slide-adjusters.
- Respondents Ramonchito T. Alcon and Joann S. Papa were hired as manual welders in 2001.
- On October 5, 2002, during the 8:00 pm–5:00 am shift, security guard Cyrus A. Altiche heard a running industrial fan and discovered the respondents having sexual intercourse on the floor of the “Tool and Die” section, using a piece of carton as a mattress.
- Altiche returned to the guardhouse, reported his observation to fellow guard Danilo S. Ogana, who corroborated the account and saw the respondents replace the carton before leaving.
- Altiche submitted a handwritten incident report to the company’s Finance and Administration Manager.
Disciplinary Proceedings
- October 14, 2002: Imasen issued separate inter-office memoranda directing each respondent to explain Altiche’s report.
- Respondents claimed they were merely sleeping and argued that other employees’ proximity made sexual intercourse impossible.
- October 22, 2002: Imasen scheduled a formal hearing by inter-office memorandum for October 30, 2002.
- At the hearing, Altiche and Ogana reiterated their narratives; respondents maintained their denial.
- December 4, 2002: Imasen issued termination memoranda, finding respondents guilty of gross misconduct under company rules.
Labor Arbiter’s Decision
- December 5, 2002: Respondents filed a complaint for illegal dismissal before the Labor Arbiter.
- December 10, 2004 decision: The Labor Arbiter dismissed the complaint for lack of merit, holding that dismissal was for just cause (gross misconduct) and complied with due process.
- The Labor Arbiter gave credibility to the guards’ testimonies over respondents’ unsubstantiated explanations and found no ill motive on the part of Altiche and Ogana.
NLRC Ruling
- December 24, 2008 decision: The National Labor Relations Commission (NLRC) dismissed respondents’ appeal and affirmed the Labor Arbiter’s decision, finding just cause and du