Title
Wenphil Corp. vs. National Labor Relations Commission
Case
G.R. No. 80587
Decision Date
Feb 8, 1989
Employee dismissed for misconduct; due process violated but dismissal upheld as justified. No reinstatement or backwages; employer fined P1,000 for procedural lapse.

Case Summary (G.R. No. 80587)

Factual Background

Roberto Mallare was hired on January 18, 1984, and on May 20, 1985, he had an altercation with another employee, Job Barrameda. The altercation resulted in both employees being suspended the following morning. Mallare received a memorandum later that same day from the Operations Manager, indicating his dismissal in accordance with the company’s Personnel Manual. Subsequently, on May 25, 1985, he filed a complaint alleging illegal dismissal and unfair labor practice. A labor arbiter initially dismissed his complaint for lack of merit, but Mallare appealed this decision to the NLRC.

Decision by NLRC

On December 16, 1987, the NLRC overturned the labor arbiter's ruling, ordering Mallare's reinstatement with back wages and benefits. As a result, Wenphil Corporation filed a petition for certiorari questioning the NLRC's decision, arguing that the Commission had exercised grave abuse of discretion.

Petitioner’s Allegations

Wenphil Corporation asserted that Mallare waived his right to a formal investigation as stipulated in the Personnel Manual, which requires an investigation only if the employee requests it when faced with a penalty higher than suspension for fifteen days. They contended that Mallare's refusal to engage with management during the incident indicated his lack of interest in seeking an investigation.

Labor Arbiter’s Findings

Despite Mallare’s defiance, the Court determined that this attitude did not equate to a waiver of his right to due process. The lack of a proper investigation prior to his immediate suspension and subsequent dismissal constituted a violation of his constitutional rights to due process as outlined in the Labor Code. The minimum requirement of due process involves providing notice and an opportunity to be heard before a dismissal or determination of wrongdoing.

Court’s Ruling on Due Process

The Court ruled that the alleged justification for dismissing Mallare was not supported, as it was necessary for the employer to conduct an investigation even if several witnesses observed the incident. The principle of ‘hears before it condemns’ is fundamental to due process.

Review of NLRC’s Decision

Although the NLRC found that Mallare was not afforded due process, the Court acquired jurisdiction over the factual findings of the labor arbiter, which concluded that there was just cause for dismissal based on grave misconduct. Therefore, Mallare’s reinstatement with back wages, as ordered by the NLRC, was overturned.

Conclusion on Indemnification

While the petition was granted and the NLRC's order

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