Title
Sutherland Global Services , Inc. vs. Labrador
Case
G.R. No. 193107
Decision Date
Mar 24, 2014
Employee repeatedly violated company policies, including dishonesty and gross negligence, leading to termination. Resignation deemed moot as just cause for dismissal existed; procedural due process was followed.

Case Summary (G.R. No. 193107)

Antecedent Facts

Sutherland Global Services (Philippines), Inc., engaged in process outsourcing and technology consulting, hired Larry S. Labrador as a call center agent in August 2006. Throughout his employment, Labrador committed several infractions, culminating in a formal charge on June 17, 2008, for violating company policy, specifically for dishonesty involving customer account management. This charge arose from an incident in which Labrador misrepresented the purpose of requesting a credit card and consequently created multiple accounts for a single customer, resulting in double billing. Following an internal investigation and administrative hearing, the company issued a recommendation for Labrador's resignation as an alternative to termination. Labrador submitted his resignation on June 17, 2008, but later filed a complaint for constructive or illegal dismissal with the National Labor Relations Commission (NLRC) on October 27, 2008.

NLRC Proceedings and Findings

The Labor Arbiter dismissed Labrador's complaint for lack of merit, adjudging that there were justifiable grounds for his termination and that his resignation was voluntary. Despite formal procedural deficiencies in Labrador's appeal to the NLRC, the Commission admitted the appeal, providing a liberal interpretation of the rules and ordering Labrador's reinstatement with back wages, asserting that his resignation was involuntary. The NLRC justified this by concluding that Labrador's submission of the resignation letter was made to avoid a negative employment record.

Court of Appeals Ruling

Sutherland challenged the NLRC's decision through a petition for certiorari before the Court of Appeals, which ultimately dismissed Sutherland's petition and upheld the NLRC's findings. The CA determined that neither technical deficiencies in the appeal nor the legitimacy of Labrador's resignation negated the claim of illegal dismissal, asserting that Sutherland's actions effectively forced Labrador into resignation.

Issues Presented

Sutherland raised the following issues for judicial review:

  1. The CA’s acceptance of Labrador's appeal despite procedural defects.
  2. Whether Labrador’s dismissal constituted illegal termination or if he voluntarily resigned.
  3. Whether the infractions committed by Labrador warranted dismissal for gross negligence.

Court's Review and Ruling

The Supreme Court found merit in Sutherland's appeal, emphasizing the overarching principle that procedural rules, while generally applicable, can be overridden in labor cases to favor the employee. However, the Court disagreed with the NLRC and CA’s conclusion regarding the illegality of Labrador's dismissal. The Court underscored that the NLRC failed to acknowledge the pattern of repeated infractions by Labrador, which warranted dismissal under the Labor Code, specifically Article 282, which articulates acceptable grounds for termination including gross and habitual neglect of duty.

Findings on Dismissal Justification

The

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