Title
Oyster Plaza Hotel vs. Melivo
Case
G.R. No. 217455
Decision Date
Oct 5, 2016
Errol Melivo, a regular employee, was illegally dismissed by Oyster Plaza Hotel. Despite claims of defective summons, the court upheld his reinstatement and back wages, holding only the corporation liable, not its officers.

Case Summary (G.R. No. 217455)

Background of the Case

The case revolves around a petition for review on certiorari filed by the petitioners, challenging the decision of the Court of Appeals which upheld the ruling of the National Labor Relations Commission (NLRC) regarding Melivo's illegal dismissal claim. Melivo had initiated proceedings after being allegedly dismissed from his position as a room boy at Oyster Plaza Hotel. He sought reinstatement and compensation for unpaid wages and benefits.

Procedural History

On October 22, 2009, Melivo filed a complaint for illegal dismissal against the petitioners. The summons and complaint were served via registered mail, but the petitioners failed to attend scheduled hearings. Eventually, the case was submitted for decision ex parte, leading the Labor Arbiter (LA) to rule in favor of Melivo, declaring his dismissal illegal, given that he had become a regular employee by virtue of the duration of his service.

Labor Arbiter's Decision

The LA ordered Melivo's reinstatement and awarded him back wages, 13th month pay, and attorney's fees. The LA concluded that Melivo’s employment status had transitioned from probationary to regular after his extended service, which necessitated a valid cause for dismissal—something the petitioners failed to provide.

NLRC's Ruling

Upon appeal, the NLRC affirmed the LA's decisions, asserting that the service of summons was valid and that Melivo was not a project employee as the petitioners claimed. The NLRC emphasized the failure to submit a termination report, further reinforcing Melivo's status as a regular employee and concluding that his dismissal lacked just cause.

Court of Appeals' Decision

The Court of Appeals upheld the NLRC's ruling, dismissing the objections of the petitioners regarding service of summons and asserting procedural errors did not invalidate the labor tribunals' jurisdiction. The appellate court found no merit in the arguments posed by the petitioners concerning Melivo's employment status and reaffirmed the findings of illegal dismissal.

Issues Raised by Petitioners

The petitioners contended that (1) they were deprived of due process due to defective summons service; (2) the Court of Appeals erred in finding Melivo was illegally dismissed; and (3) they should not be held solidarily liable for the actions leading to Melivo's alleged illegal dismissal.

Court's Findings on Due Process

The Supreme Court noted that in quasi-judicial contexts, particularly under labor laws, service of summons requires only substantial compliance. The service was undertaken via registered mail and thus, was deemed valid. The burden to prove any irregularity rested on the petitioners, who failed to establish their claims of improper service.

Ruling on Illegal Dismissal

The Court concurred with the NLRC's conclusion that Melivo was a regular employee and that there was no lawful termination of his employment. The petitioners did not present valid justifications for the dismissal nor did they follow the appropriate procedures for ending Melivo’s employment.

Solidary Liability o

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