556 Phil. 466
CARPIO, J.:
Dismissal of a worker is no trifling matter; more so, of herein [Ayson] who had been employed with [Landtex] for seventeen years, more or less. The dismissal must be for a just cause, let alone with due process, and must be based on substantial evidence. Mere allegations will not suffice.
WHEREFORE, premises considered, judgment is hereby rendered ordering [Landtex Industries and William Go] to reinstate [Ayson] to his former position without loss of seniority rights with full backwages from the date his salary has been withheld until the actual date of reinstatement.
[Landtex Industries and William Go] are further ordered to pay ten (10%) percent of [Ayson's] total monetary award as attorney's fees.
Backwages | ||
6/30/96 - 8/31/97 = 14.0 mos. | ||
P165.00 x 30 x 14.00 mos. | = | P 69,300.00 |
13th Month Pay | = | 5,775.00 |
SILP | ||
5.833 days x P165.00 | = | 962.50 |
P 76,037.50 | ||
Attorney's Fees | = | 7,603.75 |
TOTAL | P 83,641.25 |
All other claims of [Ayson] are dismissed for lack of merit.Landtex and William Go appealed the labor arbiter's decision to the National Labor Relations Commission (NLRC). Landtex and William Go posted a bond in the amount of the total award in the labor arbiter's decision to perfect their appeal and to enjoin the execution of the decision. Landtex and William Go insisted that the labor arbiter had no jurisdiction over the parties and over the subject matter in the present case.
SO ORDERED.[13]
WHEREFORE, the decision appealed from is hereby SET ASIDE on the ground of lack of jurisdiction over the subject matter. The instant case is hereby referred to Voluntary Arbitration in accordance with the Collective Bargaining Agreement.The NLRC dismissed Ayson and the union's motion for reconsideration on 11 September 1998. Ayson and the union then filed a petition for certiorari before the appellate court.
SO ORDERED.[15]
WHEREFORE, premises considered, the petition is GRANTED- and the decision (promulgated on July 20, 1998) and the resolution (promulgated on September 11, 1998) of the public respondent (National Labor Relations Commission) in NLRC NCR Case No. 00-07-04492-92 is hereby REVERSED and SET ASIDE. The decision of the labor arbiter, which was rendered on September 30, 1997 is hereby REINSTATED-subject, however, to the MODIFICATION that separation pay shall be awarded to [Ayson] in lieu of reinstatement. No pronouncement as to costs.Landtex and William Go filed a motion for reconsideration of the appellate court's decision. Ayson and the union also contested the appellate court's award of separation pay in lieu of reinstatement. The appellate court dismissed both motions in a resolution promulgated on 16 October 2001.
SO ORDERED.[18]
- Whether the NLRC correctly ruled that jurisdiction over the subject matter of the instant case pertains exclusively to the voluntary arbitrator considering that
- The existing CBA provides that "a grievance is one that arises from the interpretation or implementation of this agreement, including disciplinary action imposed on any covered employee"; and
- The parties have undergone the grievance machinery of the collective bargaining agreement.
- Whether the instant case concerns enforcement and implementation of company personnel policy and that the issue therein was timely raised.
- Whether there is a valid ground for termination of the employment of [Ayson].
- Whether [Ayson] is entitled to backwages and separation pay.
- Whether [the appellate court] committed grave and patent abuse of discretion and errors of law in setting aside the decision of the NLRC.[20]
Grievance Machinery. - For purposes of this Agreement, a grievance is one that arises from the interpretation or implementation of this Agreement, including disciplinary action imposed on any covered employee. Any grievance, dispute, or complaint which a covered employee or UNION may have against the COMPANY: (a) relative to the meaning, interpretation and application of the terms of this agreement; or (b) arising out of the employment relationship, shall be submitted to the grievance machinery in accordance with the following procedure:
Step I | The employee shall present his grievance, dispute, or complaint in writing to the COMPANY's Section Head/In Charge and to the UNION's authorized representative, and thereupon the said Section Head and UNION representative shall endeavor to work out a settlement within four (4) working days from presentation. |
Step II | If, under Step I, no settlement is reached within four (4) working days from presentation, the grievance shall be taken up by the UNION representative with the General Manager. |
Step III | If, under Step II, no settlement is reached within four (4) working days, the grievance shall be referred by the parties to the Management-Employee Committee. |
Step IV | If under Step III, no settlement is reached within eight (8) working days, the grievance shall be referred by both parties to the National Conciliation and Mediation Board (NCMB) for submission to voluntary arbitration in accordance with NCMB's rules within ten (10) days from the date of the last meeting of the Management-Employee Committee. |
Where the grievance or complaint involves the UNION directly, Steps I and II of the foregoing procedure shall be dispensed with and only Steps III and IV shall be followed.[21]Articles 217, 261, and 262 of the Labor Code tackle the jurisdiction of labor arbiters and voluntary arbitration as follows:
Art. 217. Jurisdiction of the Labor Arbiters and the Commission. - (a) Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for decision without extension, even in the absence of stenographic notes, the following cases involving all workers, whether agricultural or non-agricultural:The labor arbiter, the appellate court, and the NLRC differed in their rulings on the matter of jurisdiction. The labor arbiter and the appellate court agreed with Ayson and the union's position. The labor arbiter assumed jurisdiction and emphasized that when the union met with Landtex on 8 July 1996, Ayson was no longer an employee because Landtex terminated him effective 30 June 1996. The manifestation of the union's desire to "refer the matter to a third party in accordance with law and the CBA" does not deviate from the fact that Ayson was already dismissed. On the other hand, the NLRC sustained Landtex and William Go's position. The NLRC asserted that the determination of whether Ayson's dismissal constitutes a "disciplinary action" within the scope of the CBA calls for an interpretation of the CBA. When the union called for a meeting with Landtex, the union effectively initiated the grievance procedure. Thus, Ayson's case should have been subjected to voluntary arbitration.(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
- Unfair labor practice cases;
- Termination disputes;
- If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates of pay, hours of work and other terms and conditions of employment;
- Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee relations;
- Cases arising from any violation of Article 264 of this Code, including questions involving the legality of strikes and lockouts; and
- Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other claims arising from employer-employee relations, including those of persons in domestic or household service, involving an amount exceeding five thousand pesos (P5,000.00) regardless of whether accompanied with a claim for reinstatement.
(c) Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be provided in said agreements.
Art. 261. Jurisdiction of Voluntary Arbitrators or panel of Voluntary Arbitrators. - The Voluntary Arbitrator or panel of Voluntary Arbitrators shall have original and exclusive jurisdiction to hear and decide all unresolved grievances arising from the interpretation or implementation of the Collective Bargaining Agreement and those arising from the interpretation or enforcement of company personnel policies referred to in the immediately preceding article. Accordingly, violations of a Collective Bargaining Agreement, except those which are gross in character, shall no longer be treated as unfair labor practice and shall be resolved as grievances under the Collective Bargaining Agreement. For purposes of this article, gross violations of Collective Bargaining Agreement shall mean flagrant and/or malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department of Labor and Employment shall not entertain disputes, grievances or matters under the exclusive and original jurisdiction of the Voluntary Arbitrator or panel of Voluntary Arbitrators and shall immediately dispose and refer the same to the Grievance Machinery or Voluntary Arbitration provided in the Collective Bargaining Agreement.
ART. 262. Jurisdiction over other labor disputes. - The Voluntary Arbitrator or panel of Voluntary Arbitrators, upon agreement of the parties, shall also hear and decide all other labor disputes including unfair labor practices and bargaining deadlocks.
We received your letter dated 19 June 1996 re: TERMINATION LETTER of MR. SALVADOR AYSON who happened to be [a] union officer of LANDTEX INDUSTRIES EMPLOYEE'S UNION.The CBA's provisions on grievance directly involving the union state that the grievance shall be referred by the parties to the Management-Employee Committee. The Management-Employee Committee shall be composed of three representatives each from the union and Landtex. According to the minutes of the meeting prepared by Landtex's counsel, when the union met with Landtex on 10 July 1996, there were seven union members and two Landtex representatives in attendance. The minutes of the meeting read:
In connection to [sic] this, we would like to request for a formal dialogue regarding the above matter at a [sic] soonest possible time.
We are hoping that the management is with us in resolving this termination of our officer.
May we have a continuous harmonious relationship.
Thank you.[23]
The mgt.'s position is that it will no longer reconsider the termination of Mr. Ayson. The union on the other hand opened discussion of other possibilities in lieu of reinstatement.The next meeting proceeded with the same number of representatives from both parties. The minutes of the meeting state that there was "[n]o settlement. Union will refer matter to third party in accordance with provision of law and CBA."[25]
The union requested for time to study possibilities. The mgt. will do likewise.
Reset 16 July 96[,] 5 pm at factory.[24]
Ipinagbigay-alam sa amin ng pamahalaang Landtex Industries and [sic] tungkol sa nangyaring insidente nuong ika-2 at 7 Marso 1996.Ayson's handwritten response reads:
Ayon sa isang saksi, ikaw ay nagkakalat ng mga balitang nakakasira sa aming personal na buhay. Bukod pa dito nuong ika-7 ng Marso ng ikaw ay hingan ng iyong ID pictures bilang isa sa mga regulasyon ng kompanya, ikaw ay sumungaw sa harap pa mismo ng nagmamay-ari ng kompanya na naging dahilan upang magkasagutan kayo.
Iyong nalalaman na ang ganitong gawain ay taliwas sa umiiral na patakaran ng kompanya. Bunga nito[,] ikaw ay hinihingan ng nakasulat na paliwanag 24 oras mula sa pagkakatanggap ng liham na ito. Ang hindi mo pagsunod ay nangangahulugan na maaari ng gumawa ng susunod na aksyong pang-disiplina and [sic] kompanya laban sa iyo.[30]
Ayon sa salaysay ng inyong saksi ako ay nagkakalat ng balitang nakakasira sa inyong personal na buhay.Landtex then summoned Ayson on 26 April 1996 to a meeting to investigate the 2 and 7 March 1996 incidents. The minutes of the 26 April 1996 meeting read:
Ipagpaumanhin po ninyo ang hindi ko pagtugon sa inyong sulat na nakasaad na ako ay nagkakalat ng balitang nakakasira ng inyong personal na buhay sa dahilan na wala naman pong nakasaad sa sulat kung anong balita na ipinagkakalat ko na nakakasira sa personal na buhay ninyo.
Noon po ika-7 ng Marso ako po ay hiningan ng ID picture bilang isa sa mga regulasyon ng kompanya at nakasaad po sa sulat na ako po ay "sumungaw" o "sumigaw" sa harap mismo ng may-ari ng kompanya. Hindi po ako sumigaw[,] ako po ay sumagot lamang sa tanong nila. Kung ang pagkasagot ko man ay medyo napakalakas ito po ay sa dahilan na nang mga oras na iyon ay may buhat-buhat akong tela na aming inaakyat. Kung ito po ay minamasama ninyo, ay ihinihingi ko na lamang ng paumanhin.[31]
Mr. Ayson was apprised of the incident that happened on March 2 & 7 wherein it was alleged that he is spreading some rumors involving [the] personal life of Mr. Go and his family. He was informed that there were witnesses who can testify on this.The next meeting was held on 5 June 1996. The minutes of the meeting read:
Mr. Ayson however requested that another investigaton be conducted wherein the alleged witnesses be presented since he cannot answer whether what was reported was true or not. He further denies allegations that he is spreading said rumors.
Mr. Ayson together with union officers requested that investigation be conducted instead at Mauban, Quezon City since they are being deducted everytime they attend investigations like this during office hours.
Mr. Ayson & union to be notified when another investigation [will] be scheduled.[32]
Mr. Ferdinand Samson, union Sgt. at Arms [and] Mr. Salvador Ayson appeared but refused to sign attendance or participate in [the] investigation. Accord. to them, they will consult FFW.[33]Landtex informed Ayson of its decision to terminate his services in a letter dated 19 June 1996. The letter, signed by Landtex's counsel, reads:
Ito ay hinggil sa insidenteng nangyari na kinasangkutan mo noong ika-2 at 7 ng Marso 1996. Hindi lingid sa iyong kaalaman na ikaw ay binigyan ng pamunuan ng Landtex ng lahat ng pagkakataon upang marinig ang iyong panig at maipagtanggol ang iyong sarili sa paraang naaayon sa batas ngunit, ikaw ay hindi nakiisa o nakipagtulungan.Landtex and William Go, in their appeal before the NLRC, stated that paragraphs (a) and (d) of Article 282[35] were applicable to Ayson. They added that the employer, exercising management prerogative, has the right to protect its interest by imposing the appropriate penalties on erring employees. However, upon reading the records of the case, we cannot deduce any proof of Landtex and William Go's accusations against Ayson. Moreover, the NLRC did not make any pronouncement as to whether Ayson was dismissed for a just cause. The appellate court and the labor arbiter were one in ruling that there was no just cause in Ayson's dismissal. We quote the labor arbiter's factual findings with approval:
Sa katunayan, noong nakaraang 16 Marso 1996 ikaw [ay] pinadalhan ng memo kung saan nakasaad ang nasabing insidente at kasama ang paghingi ng iyong nakasulat na paliwanag. Noong nakaraang 02 Abril 1996 isang sulat ang pinadala sa iyo kung saan ikaw ay inatasang dumalo sa isang pagsisiyasat. Sa nasabing imbestigasyon, iminungkahi mo at ng iyong mga kasama (mga opisyales ng unyon) na magsagawa ulit ng isa pang imbestigasyon at nais ninyong ito ay isagawa sa inyong pagawaan. Kaya't ito ay muling inskedyul noon 06 Mayo 1996 ngunit ikaw ay tumawag ng araw din yaon at sinabing kailangan mong umuwi ng maaga dahil walang magbabantay sa iyong anak.
Muli na naman nagtakda ng isa pang pagsisiyasat noong ika-05 Hunyo 1996 ngunit, sa nasabing imbestigasyon ikaw ay tumangging maimbestigahan at tumanggi ring pumirma sa attendance. Ilang pagkakataon na iyong pinalampas kung saan sana ay naipadinig mo ang iyong panig at naipagtanggol mo ang iyong sarili.
Kaugnay nito, ikinalulungkot na ipinababatid sa iyo ng pamunuan na batay sa akusasyon sa iyo, sa pagpatunay ng testigo laban sa iyo ikaw ay tinatanggal sa trabaho. Ang iyong paglilingkod sa Landtex Industries ay hanggang sa ika-30 ng Hunyo 1996 na lamang.[34]
We have painstakingly read the records of this case and, sadly, this Office finds no shred of evidence to show that indeed [Ayson] had been spreading "news and gossips" or that he ever shouted at Mr. Go and engaged Mr. Go in a heated argument.Procedural due process in the dismissal of employees requires notice and hearing. The employer must furnish the employee two written notices before termination may be effected. The first notice apprises the employee of the particular acts or omissions for which his dismissal is sought, while the second notice informs the employee of the employer's decision to dismiss him.[37] In the present case, Landtex more than complied with the two-notice rule.
No affidavit of either the security guard who claimed to be one of the drinking group who heard the alleged malicious news or gossips or that of Mr. and Mrs. Go who had been the subject of [Ayson's] alleged shouting has been presented if only to substantiate [Landtex and William Go's] self-serving claims.[36]
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;[29] The pertinent portion of Section 2(d), Rule 1, Book VI of the Implementing Rules of the Labor Code reads as follows:
(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 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.
(d) In all cases of termination of employment, the following standards of due process shall be substantially observed:[30] Rollo, p. 118.
For termination of employment based on just causes as defined in Article 282 of the Labor Code:
(i) A written notice served on the employee specifying the ground or grounds for termination, and giving said employee reasonable opportunity within which to explain his side.
(ii) A hearing or conference during which the employee concerned, with the assistance of counsel if he so desires is given the opportunity to respond to the charge, present his evidence, or rebut the evidence presented against him.
(iii) A written notice of termination served on the employee, indicating that upon due consideration of all the circumstances, grounds have been established to justify his termination.