Serrano v.

NLRC, GR 117040
Due Process

FACTS: Petitioner was hired by the Respondent Isetann Department Store as a

security checker to apprehend shoplifters. As a cost-cutting measure, private
respondent decided to phase out its security section engage the services of an
independent security agency. Petitioner was then terminated prompting him to file a
complaint for illegal dismissal. NLRC ordered petitioner to be given separation pay
holding that the phase-out of the security section was a legitimate business decision.
However, respondent was denied the right to be given written notice before termination
of his employment.

ISSUE: Whether the violation of notice requirements is a denial of due process.

RULING: No. The violation of notice requirements is not a denial of due process as
the purpose is not to afford the employee an opportunity to be heard on any charge
against him for there is none. The purpose is to give him time to prepare for the
eventual loss of his job and the DOLE to determine whether economic causes do exist
justifying the termination of his employment. The employer’s failure to comply with the
notice requirement does not constitute a denial of due process but a mere failure to
observe a procedure for the termination of employment which makes the termination
of employment merely ineffectual.