Title
Oscar Ledesma and Co. vs. National Labor Relations Commission
Case
G.R. No. 110930
Decision Date
Jul 13, 1995
Security guard Orlando Ondon was dismissed after advocating for land distribution under CARP, leading to a labor dispute. The Supreme Court ruled his transfer to laborer as constructive illegal dismissal, awarding separation pay and modified back wages.

Case Summary (G.R. No. 110930)

Background Facts

Orlando Ondon actively campaigned for actual land distribution after a meeting conducted by the Department of Agrarian Reform on February 8, 1992. Tensions escalated when he led a walkout on February 9, 1992, protesting against the management's insistence that workers from a different hacienda be included in a referendum. Subsequently, he was barred from reporting to work, leading to a conversation with Arturo Ledesma on February 18, during which Ledesma stated he no longer wanted Ondon employed due to perceived disloyalty. Ondon filed a complaint for illegal dismissal, underpayment of wages, and non-payment of entitlements on February 27, 1992.

Labor Arbiter Decision

The Labor Arbiter's initial ruling on November 3, 1992, concluded that Ondon was not dismissed but rather given a new assignment, and his refusal to accept this assignment constituted abandonment of work. The Arbiter justified the reassignment as reasonable, citing a breach of trust due to Ondon's opposing stance to management. The Arbiter denied the claims for overtime and night shift premium but awarded service incentive leave and salary differential payments.

NLRC Ruling

Upon appeal, the National Labor Relations Commission (NLRC) reversed the Labor Arbiter's decision, declaring that Ondon was unlawfully dismissed. The NLRC found that the petitioners could not adequately counter Ondon’s assertion of dismissal, particularly given Ledesma's failure to provide an affidavit to contest the claim. The NLRC recognized the reassignment from security guard to laborer as a demotion, amounting to constructive dismissal, thus invalidating the employers' claim of good faith in the transfer. Citing the strained relationship, the NLRC opted for separation pay rather than reinstatement and required the payment of back wages and increased service leave compensation.

Petition for Certiorari

The petitioners contended that the NLRC committed grave abuse of discretion in reversing the Labor Arbiter's findings and awarding excessive back wages. The NLRC emphasized that while employers have the right to transfer employees for the efficient operation of business, such rights are limited if exercised in bad faith or for discriminatory reasons, particularly in relation to union activities.

Supreme Court Analysis

The Supreme Court ruled that the NLRC did not exhibit grave abuse of discretion. It applied established jurispr

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