RTG Construction, Inc. v. Facto
REITERATIONFacts
The Antecedents: Roberto Facto was employed by RTG Construction, Inc. (later Russet Construction and Development Corporation) as a helper mechanic in March 1982, and promoted to junior mechanic in 1985. Between April 1997 and May 1998, Facto was suspended on four occasions for infractions like absenteeism and creating disturbance. On June 7, 2000, he was suspended for 14 working days for reporting to work under the influence of intoxicating liquor. On August 10, 2000, Facto was terminated from employment, with the memorandum citing his repetition of the offense on August 9, 2000, despite the prior warning. Procedural History: Facto filed a complaint for illegal dismissal. The Labor Arbiter found the dismissal illegal and ordered payment of backwages, separation pay, service incentive leave pay, 13th month pay, and attorney's fees. The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter's decision. The Court of Appeals (CA) modified the decision, finding the dismissal legal but awarding backwages, 13th month pay, service incentive leave pay, and attorney's fees, remanding the case for computation. The CA denied petitioners' motion for reconsideration. The Petition: Petitioners RTG Construction, Inc., Rolito Go, and Russet Construction and Development Corporation filed a petition for review on certiorari with the Supreme Court, assailing the CA's decision and resolution.
Issue(s)
Whether the dismissal of respondent Roberto Facto was legal and whether procedural due process was observed in the dismissal of respondent Facto. Whether respondent Facto is entitled to backwages. Whether respondent Facto is entitled to service incentive leave pay, 13th month pay, and attorney's fees.
Ruling
The petition is partly granted. The Court of Appeals' decision is modified by deleting the award for backwages and, in lieu thereof, ordering petitioners to pay respondent nominal damages of P30,000.00. All other aspects of the CA's decision and resolution are affirmed.
Ratio Decidendi
On the legality of dismissal and procedural due process: The Court found that while the dismissal was for a just cause, procedural due process was not observed. Procedural due process requires two written notices: the first apprising the employee of the offense, and the second informing of the decision to dismiss. A hearing or an opportunity to be heard is also necessary. The memoranda issued between April 1997 and May 1998 did not satisfy the first notice requirement as they pertained to different offenses and suspensions. The June 7, 2000 memorandum, which led to the suspension, was based on an offense committed on June 3, 2000. The August 10, 2000 termination memorandum cited a different offense allegedly committed on August 9, 2000. Thus, Facto was never given a proper first notice of the specific act for which he was dismissed. Furthermore, there was no evidence that Facto was given an opportunity to explain his side or be heard regarding the charge that led to his dismissal, violating Section 2(d), Rule 1, Book VI of the Omnibus Rules Implementing the Labor Code. On the award of backwages: The Court held that the ruling in Serrano v. National Labor Relations Commission regarding backwages for denial of due process has been abandoned in favor of the doctrine in Agabon v. National Labor Relations Commission. Under Agabon, if dismissal is for a just cause but procedural due process is not observed, the dismissal is upheld, but the employer must pay nominal damages in the form of indemnity, set at P30,000.00. Therefore, the award of backwages was deleted and replaced with nominal damages. On the award of service incentive leave pay, 13th month pay, and attorney's fees: The Court affirmed the award of service incentive leave pay and 13th month pay, as Facto performed work as a regular employee and is entitled to these benefits. The employer bears the burden of proving payment of these benefits, which petitioners failed to do. The award of attorney's fees was also affirmed, as it is justifiable in actions for recovery of wages where the employee is forced to litigate to protect his rights.
Main Doctrine
While dismissal for a just cause may be upheld even if procedural due process was not observed, the employer must pay nominal damages to the employee in lieu of backwages. Monetary claims such as service incentive leave pay and 13th month pay are still awardable if not paid.