Title
Leonardo vs. National Labor Relations Commission
Case
G.R. No. 125303
Decision Date
Jun 16, 2000
Employees contested illegal termination; NLRC ruled Fuerte’s demotion justified, Leonardo’s job abandonment valid; Supreme Court upheld reinstatement without back wages.

Case Summary (G.R. No. 125303)

Employment Background

Aurelio Fuerte was employed by Reynaldo's Marketing Corporation on August 11, 1981, as a muffler specialist with a daily wage that increased upon his appointment as a supervisor in 1988. Conversely, Danilo Leonardo joined the company on March 4, 1988, as an auto-aircon mechanic and subsequently received a pay increase after attaining regular status. Both petitioners claim they were unjustly terminated from their roles, prompting their respective complaints.

Alleged Termination Events

Fuerte contends that he was involuntarily transferred to another plant on January 3, 1992, due to alleged underperformance in relation to his sales quota, accompanied by the withdrawal of his supervisor's allowance. Leonardo, on the other hand, claims he was informed on April 22, 1991, by the personnel manager that his services were no longer necessary, which he interpreted as illegal termination.

Labor Arbiter's Decision

After hearing the complaints, Labor Arbiter Emerson C. Tumanon favored the petitioners on December 15, 1994, ordering their reinstatement and the payment of back wages and other benefits. This decision demonstrated an initial acknowledgment of the petitioners' claims regarding their rights under labor law.

NLRC Modification and Subsequent Appeals

On appeal, the NLRC modified the Labor Arbiter's decision, reinstating Fuerte without back wages and dismissing Leonardo's complaint for lack of merit. The NLRC asserted that the initial finding of illegal termination lacked substantive support.

Allegations and Defense from Respondents

Reynaldo's Marketing Corporation contested the claims, arguing that Fuerte's transfer was a legitimate consequence of his failure to meet sales quotas and that Leonardo effectively abandoned his job after failing to report when asked to explain his alleged unauthorized work. They provided evidence to demonstrate that Fuerte had indeed underperformed and that Leonardo's absence was voluntary.

Constructive Dismissal Assessment

Fuerte contended that the transfer amounted to constructive dismissal. However, it was held that an employer may exercise management prerogatives, such as transferring employees or imposing productivity standards, as long as such actions do not entail demotion or salary reduction. The evidence showed that Fuerte failed to fulfill his sales obligations over a significant period, justifying the decision to transfer him.

Abandonment Claim Regarding Leonardo

The NLRC found Leonardo had abandoned his position, as he did not return to work after being questioned regarding his work conduct. The significant absence of proactive communication on Leonardo's part undermined his claims of illegal termination; instead, it indicated an intentional withdrawal from his employment.

Procedural Due Process Considerations

Both petitioners argued they were denied due process in the investigation and decisions leading to their employment status. However, it was determined that procedural due diligence had been observe

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