Title
Unirock Corp. vs. Court of Appeals
Case
G.R. No. 192113
Decision Date
Sep 7, 2020
Employee refused transfer due to personal circumstances, contested dismissal; court ruled termination illegal, transfer unreasonable, awarded separation pay.

Case Summary (G.R. No. 192113)

Factual Background

Eduardo Pajarito began his employment with Unirock Corporation on March 9, 1999. On March 14, 2005, he was issued a transfer order by Roberto Ignacio, the vice-president for Human Resources Development, indicating he needed to relocate to a work site in Davao starting March 17, 2005. The transfer included additional benefits, which Pajarito declined to receive due to personal circumstances. Following this, he filed a request for mediation with the National Labor Relations Commission (NLRC) and expressed his concerns regarding the transfer. Subsequently, on March 31, 2005, Unirock issued a memorandum terminating Pajarito's employment, citing willful disobedience and abandonment of work.

Initial Rulings and Appeals

The Labor Arbiter dismissed Pajarito’s complaint for illegal dismissal, holding that the termination was valid based on his alleged insubordination. Pajarito appealed this decision to the NLRC, which initially reversed the Arbiter's decision, ordering his reinstatement but was later amended to declare him as retrenched from service. This situation prompted Pajarito to elevate his case to the Court of Appeals, which reinstated the earlier NLRC decision with modifications, awarding him separation pay rather than reinstatement.

Court of Appeals Decision

In its decision dated October 16, 2009, the Court of Appeals annulled the NLRC's second decision and reinstated its original decision from March 28, 2007, asserting that Pajarito's act of seeking additional time to comply with the transfer order did not indicate malicious intent or willful disobedience. The appellate court also found that the procedural due process was not followed in his dismissal.

Unirock's Arguments

Unirock Corporation contended that the Court of Appeals erred in its finding of illegal dismissal, asserting that retrenchment had been a valid ground for termination and that Pajarito’s refusal to report for work constituted abandonment. They also disputed the appropriateness of the separation pay awarded following the appellate court's decision.

Supreme Court's Analysis

The Supreme Court evaluated the legality of Pajarito's dismissal under Article 297 of the Labor Code, which allows termination for serious misconduct or willful disobedience. The Court concluded that Pajarito’s request for time to prepare his family for the transfer did not amount to willful disobedience. Furthermore, the Court held that Pajarito's actions should not be interpreted as abandonm

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