Title
Supreme Court
Victory Liner, Inc. vs. Race
Case
G.R. No. 164820
Decision Date
Mar 28, 2007
A bus driver, injured on duty, was deemed resigned by his employer after recovery. He filed for illegal dismissal, with courts ruling in his favor, awarding separation pay instead of reinstatement due to physical limitations.

Case Summary (G.R. No. 164820)

Relevant Legal Proceedings

This Petition for Review under Rule 45 concerns the decision of the Court of Appeals dated April 26, 2004, which affirmed the ruling of the National Labor Relations Commission (NLRC) from July 30, 2002. The NLRC had reversed the Labor Arbiter's earlier decision that dismissed Race's complaint regarding illegal dismissal, effectively ordering his reinstatement with back wages.

Facts of the Case

Pablo M. Race commenced employment with Victory Liner, Inc. in June 1993 and had deposited a cash bond of P10,000. Following his accident in August 1994, Race underwent extensive medical treatment, necessitating two separate hospital admissions. By January 1998, still affected by his injuries, he attempted to return to work but was informed that he was considered to have resigned. Despite negotiations regarding financial compensation, Race declined, prompting him to initiate a formal complaint for various labor-related claims on September 1, 1999.

Labor Arbiter's Decision

Initially, Labor Arbiter Salimathar V. Nambi dismissed the complaint, concluding that Race's cause of action was barred by the four-year prescription period, as he had purportedly been dismissed in August 1994 and only filed his complaint five years later. Additionally, Nambi found no evidence substantiating claims of unfair labor practice or illegal dismissal and ruled that Race was a mere field personnel not entitled to the same protections and benefits as a regular employee.

NLRC's Reversal

Upon appeal, the NLRC reversed the Labor Arbiter's decision, ruling that Race’s cause of action did not accrue until January 1998 when he was denied reinstatement. Thus, filing in September 1999 was within the four-year limitation period for illegal dismissal claims. The NLRC concluded that Victory Liner had failed to provide Race due process, noting the absence of written notices regarding his dismissal.

Court of Appeals' Ruling

The Court of Appeals upheld the NLRC's findings, clarifying that the disputed computation of Race's back wages was simply a typographical error in its prior decision. The appellate court determined that Race continued to maintain his employee status and had not abandoned his job, establishing that his absences were due to hospitalization and recovery. Furthermore, the Court found that Victory Liner had not followed the required procedural safeguards for termination.

Petitioner’s Main Arguments

In furtherance of their petition, Victory Liner argued that Race's complaint had already prescribed and claimed that he had abandoned his job. The petitioner also contended that Race was no longer competent to fulfill his duties as a bus driver due to his physical condition and that reinstating him would amount to involuntary servitude.

Examination of the Abandonment Claim

The Supreme Court explained that mere absence does not indicate abandonment unless there is clear intent demonstrated by the employee to discontinue employment. In this instance, Race's actions reflected ongoing attempts to engage with his employer rather than an intention to sever ties. The lack of formal dismissal procedures further reinforced the argument against abandonment.

Due Process Requirements

It was established that for a lawful dismissal, both procedural and substantial due process must be observed. This includes providing clear grounds for termination and adequate opportunities for the employee to respond. Victory Liner failed in these respects, lacking both th

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