Title
Maranaw Hotels and Resort Corp. vs. National Labor Relations Commission
Case
G.R. No. 123880
Decision Date
Feb 23, 1999
A hotel employee accused of theft was illegally dismissed; the Supreme Court ruled in his favor, citing insufficient evidence and awarding backwages and separation pay.

Case Summary (G.R. No. L-28298)

Key Dates and Procedural History

The incident in question occurred on April 2, 1992, when Eddie Damalerio was reported for allegedly being found with a guest's belongings in a suitcase. Following an administrative hearing on April 4, he was dismissed on April 13, 1992. Damalerio filed a complaint for illegal dismissal on May 19, 1992. The Labor Arbiter ruled in his favor on August 20, 1993. The National Labor Relations Commission (NLRC) later modified this decision, offering separation pay instead of reinstatement in November 1995. The petition for review was submitted to the Supreme Court on February 23, 1999.

Applicable Law

This case is examined under the provisions of the 1987 Philippine Constitution, particularly referencing labor standards concerning employee dismissal, due process, and rights related to employment benefits.

Summary of Events

On April 2, 1992, hotel guest Jamie Glaser observed Eddie Damalerio with his hand inside Glaser's suitcase. Although Damalerio claimed he was tidying up the room, Glaser reported the incident, leading to disciplinary action. An administrative hearing was held, where Damalerio denied wrongdoing, explaining he was attempting to organize scattered belongings. Subsequently, San Gabriel issued a memorandum confirming Damalerio’s termination for qualified theft based on the allegations.

Labor Arbiter's Decision

The Labor Arbiter, upon reviewing the evidence, deemed Damalerio’s dismissal illegal, citing insufficient grounds for termination and the necessity for employees to be treated fairly. He ordered Damalerio’s reinstatement and back wages from the date of his preventive suspension, alongside other benefits accrued during the suspension.

NLRC Review and Modification

Dissatisfied, the petitioner appealed to the NLRC, which modified the decision by allowing the option for separation pay instead of reinstatement. The NLRC found no conclusive evidence substantiating Damalerio's alleged qualified theft, indicating a lack of sufficient proof to justify the extreme measure of dismissal.

Issues Presented to the Supreme Court

The petitioner contested whether the NLRC committed grave abuse of discretion by failing to recognize claims of qualified theft supported by the incident in question. Another issue raised was whether the NLRC erred in its decision regarding Damalerio's entitlement to service charges during his suspension.

Supreme Court Ruling

The Supreme Court ruled that the petition lacked merit, emphasizing the petitioner’s failure to provide adequate evidence against Damalerio. The Court noted that unproven suspicions from an employer do not suffice to validate dismissal and reinforced the burden of proof resting with the employer to establish just cause for termination. Additionally, it ruled that Damalerio was entitled to his share of service charges given his

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