Jenny and Virgilio Agabon V National Labor Relations Commission

FACTS:

1. Respondent Rivera Home Improvements – business of selling and installing ornamental and
construction materials
- The Petitioners were employees gypsum board and cornice installers.
- dismissed for abandonment of work
- They filed for illegal dismissal and payment for money claims which was granted
- It was declared illegal – the termination both paied 56k
2. Respondent was ordered to pay:
- Money claim
- Separation pay 1 every year from date of hiring
- Holiday pay and service incentive leave pay, rest days, 13 th month pay

Petitioners:

1. They were dismissed because refused to work because it is pakyaw basis, which would mean
losing their SSS benefits
2. Petitioners also claim that private respondent did not comply with the twin requirements of
notice and hearing.

Respondents:

1. They did not dismissed but they abandoned their work

- They even sent letters to remind to report for work, manager talked to petitioner by telephone
- Petitioners demanded for an increase of wage, which did not grant, they stopped reporting and
just filed a case before the court

Second Case – NLRC

1. Reversed because they found out that there was an abandonment of work
2. They ordered the respondents to pay, but not separation pay

Third Case – CA

1. Termination was not illegal but granted the money claims

2. just cause. They had abandoned their employment and were already working for another
employer.

Issues: Wether the Petitioners were illegaly dismissed

1. Procedure for dismissal was observed?

GROUNDS

Article 282 of the Labor Code enumerates the just causes for termination by the employer: (a)
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serious misconduct or willful disobedience by the employee of the lawful orders of his employer or
the latter's representative in connection with the employee's work; (b) gross and habitual neglect by
the employee of his duties; (c) fraud or willful breach by the employee of the trust reposed in him by
his employer or his duly authorized representative; (d) commission of a crime or offense by the
employee against the person of his employer or any immediate member of his family or his duly
authorized representative; and (e) other causes analogous to the foregoing.

Article 282 – Just cause in termination of employment

1. Written notice – with grounds and opportunity to explain his side
2. Hearing or conference to be heard and evidences
3. Written notice of termination that justifies his termination
4. In case of termination, the foregoing notices shall be served on the employee's last known
address.
- 2 written notices and opportunity to be heard

Article 283 and 284 ( HEALTH REASONS ) – authorized causes

- causes that allows the employer to terminate the employee

- employer must give employee and DOLE a notice 30 days prior to the effectivity of separation

Discussion:

1. Dismissal of employee – just and valid cause which enjoins the employee the opportunity to be
heard ( ART 282 OF LABOR CODE )
- Disobedience, habitual neglect of duties, fraud or willful breach, crime or offense against
employer or his family and others
- It includes due process - fused by substantive and procedural - dismissal procedure
2. Abandonment – deliberate refusal of employee to resume in his employment or neglect of duty
- Just cause- Neglect of duties:
A. failure to report for work without justifiable reason
- and clear intention to sever employer-employee relationship ( no more intention to work )
- There must be a clear proof that the discontinue of work was unjustified and deliberate
B. 1999- they work for another company – according to court there is an intention to sever the
EMREL - that they have no intention to work na
- Evidence: Without permission and they look for another job is abandonmenet
- Not first time 1996 they were warned to be dismissed
3. Law recognizes the Obligations and rights of both employee and employers
- Right to just compensation
- Right of employer to expect adequate work and performance from their employee
- Hence employer may not be compelled to employ such persons who will
 4. If termination is illegal – reinstatement and full backwages
- If not reinstatement – separation pay

KINDS OF DISMISSAL
5. If there are causes and due process was observed - valid and no liability
6. If there is no cause but due process is observed - employee reinstatement and full backwages
7. No cause and no due process - reinststament and full backwagaes
8. 4TH KIND OF DISMISSAL – the case falls in there where there is a just cause but no due process
9. No twin notice requirements hence employer should be held liable - GANTO NANGYARI SA CASE
NA TO USELESS DAW KASI D NA SILA NAG RERESIDE SA ADDRESS NA YUN
- Dismissal should be upheld
- liable for non-compliance with the procedural requirements of due process.
10. A. Wenphil or Belated Due Process Rule - The dismissal of an employee must be for just or
authorized cause and after due process. Otherwise the employer will be penalized
- Nominal damages - vindicate or recognize the employee's right to statutory due process which
was violated by the employer.39
- B. 2000- Serrano - the dismissal is ineffectual and the employer must pay full backwages from
the time of termination until it is judicially declared that the dismissal was for a just or
authorized cause.
- If no due process
- confronting the practice of employers to "dismiss now and pay later" by imposing full
backwages.PERO HINDI TO APPLICABLE
11. EMPLOYEE DISMISSED ILLEGALY OR WITHOUT JUST OR AUTHORIZED CAUSE - reinstatment and
backwagaes
12. Abandon the Serrano ruling and follow the wenphil
- Fair result
- Serrano ruling will lead to frivolus suits
13. constitutional policy to provide full protection to labor is not meant to be a sword to oppress
employers. Weigh and balance the rights and welfare of employees and emplyers
- It must be for the deserving party
14. In this case the petitioners committed a grave offense of neglicting duties
- An employee who is clearly guilty of conduct violative of Article 282 should not be protected by
the Social Justice Clause of the Constitution. Social justice, as the term suggests, should be used
only to correct an injustice.
- Justice Isagani Cruz strongly asserts the need to apply a balanced approach to labor-
management relations and dispense justice with an even hand in every case:
RULING

1. Due process

A. Substantive due process

- Just cause: Neglect of work is analogous to abandonement

- they refused to report without justifiable reason

- looked another employer

B. Failure to 2 notice rule

- useless

- Wenphil doctrine

- Law recognizes both the interest and right of employer and employee:

@ Right to just compensation

@Right of employer to expect adequate work and performance from their employee

C. Upheld with Nominal Damages