Estrellita Salazar vs Philippine Duplicators, Inc.

and Leonora Fontanilla

GR No. 154628
December 6, 2006

FACTS:
Petitioner Estrellita Salazar became Sales Representative of respondent company,
Philippine Duplicators, Inc., under the direct supervision respondent Leonora
Fontanilla. Respondent Fontanilla went over the three (3) accounts of
Salazar. Consequently, respondent Fontanilla asked Salazar whether she went to the
clients and the latter answered in the affirmative. However, upon verification, the
said clients alleged that they neither knew nor met the latter; but Salazar stood firm
on her declaration. Respondent Fontanilla directed Salazar, through a
memorandum to explain, why no disciplinary action should be taken against her in
violation of Section 8, Category V of the companys Handbook on Constructive
Discipline for falsifying company records, but petitioner refused to receive the
memorandum. Hence, it was sent through registered mail to Salazars residence.
Consequently, she did not report to work anymore and readily filed a complaint for
illegal dismissal against the respondents. Respondent company sought the
dismissal of Salazars complaint of illegal dismissal, claiming it was Salazar who
abandoned work. Labor Arbiter Carpio dismissed the case without prejudice for lack
of interest to prosecute. Sometime thereafter, petitioner received the
memorandum which charged her with abandonment of work. On the other hand,
respondents averred that Mr. Melendres, Area Sales Manager of respondent
Fontanilla, sent a letter of termination addressed to Salazar through registered mail
for falsifying company records. Consequently, Salazar refiled the labor case. Labor
Arbiter Caday rendered his Decision finding that petitioners dismissal was for a just
cause, but respondent Duplicators breached the twin-notice requirement for
dismissal under Section 2 (c), Rule XXIII, Book V of the Implementing Rules and
Regulations of the Labor Code. Thus, Duplicators was ordered to pay an indemnity
of P10, 000.00 to petitioner Salazar. NLRC decided that there was actually no
termination of Salazars employment but considering that reinstatement was not
advisable due to the strained relationship between the parties, separation pay was
ordered paid to petitioner in lieu of reinstatement. CA ruled that the termination of
Salazars employment was legal and valid. The CA nonetheless awarded severance
pay pursuant to settled jurisprudence and in the interest of social justice. Lastly, it
ruled that there was no breach of the due process requirements prescribed for
dismissal from employment.

ISSUE:
Whether or not petitioner was afforded due process
Whether or not dismissal of petitioner was just and valid

HELD:
The procedure for terminating an employee is found in Book VI, Rule I, Section 2 (d)
of the Omnibus Rules Implementing the Labor Code:
For termination of employment based on just causes as defined in Article 282 of the
Code:
(a)
A written notice served on the employee specifying the ground or
grounds for termination, and giving to said employee reasonable opportunity
within which to explain his side;
(b)
A hearing or conference during which the employee concerned, with
the assistance of counsel if the employee so desires, is given opportunity to
respond to the charge, present his evidence or rebut the evidence presented
against him; and
(c)
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.
In case of termination, the foregoing notices shall be served on the employees last
known address.
The aforelisted requirements have been met.