Title
Philippine Rabbit Bus Lines, Inc. vs. National Labor Relations Commission
Case
G.R. No. 98137
Decision Date
Sep 15, 1997
Bus conductor dismissed for negligence in ticket issuance and freight handling; SC ruled dismissal valid but awarded separation pay and indemnity for due process violation.

Case Summary (G.R. No. 122166)

Factual Background

Reynato B. Aguinaldo served as a bus conductor for the Philippine Rabbit Bus Lines, Inc. His responsibilities included issuing tickets and collecting payments. On September 18, 1988, Aguinaldo was on duty for a scheduled trip from Baguio City to Manila. Upon arrival at the terminal, he allegedly failed to ensure that all freight and passenger tickets were properly issued, leading to an inspection that uncovered discrepancies involving undeclared cargo and unissued tickets. Following the incident, Aguinaldo was placed under preventive suspension and subsequently faced termination.

Labor Arbiter’s Decision

On December 20, 1989, the Labor Arbiter ruled in favor of Aguinaldo, finding that he had been illegally dismissed and denying him due process. The Arbiter ordered reinstatement along with the payment of back wages totaling P29,547.00, along with potential separation pay if reinstatement was no longer viable. Attorney's fees for Aguinaldo's legal counsel were also awarded.

NLRC Ruling

Upon appeal to the NLRC, the Arbiter's ruling was upheld, although the NLRC modified the decision by deleting the awards for separation pay and attorney's fees, reinstating Aguinaldo with back wages for one year. The NLRC found the dismissal was a harsh penalty given Aguinaldo’s record and the nature of the violations.

Petitioner’s Arguments

The petitioner contended that Aguinaldo's dismissal conformed to legal requirements, asserting just cause and due process were adequately demonstrated. They argued that Aguinaldo was notified of the charges against him with a memorandum and had the opportunity for a formal investigation. Petitioner claimed previous violations warranted the dismissal and objected to the characterization of the dismissals as harsh or unreasonable by the NLRC.

Evaluation of Due Process

The petitioner emphasized the necessity of fulfilling procedural requirements as defined under the Labor Code, suggesting that Aguinaldo did not demonstrate sufficient awareness of the severity of consequences regarding his violations. The initial memorandum had put Aguinaldo on preventive suspension without explicitly indicating that dismissal was a potential outcome, which raised issues regarding adequate notices and opportunities for defense.

Assessment of Violations

Aguinaldo had a history of violations concerning ticket issuance that included multiple reprimands prior to the incident. Despite acknowledging his failures, the tribunals evaluated whether the cumulative effect of these actions justified the termination. The argument centered on whether these were isolated incidents or indicative of gross negligence.

Final Ruling

The Supreme Court ultimately set aside the NLRC’s decision, recogniz

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