Monica T.

Buenaventura
11880201

JENNIFER M. AGABON and VIRGILIO C. AGABON v NATIONAL LABOR RELATIONS COMMISSION

and RIVIERA HOME IMPROVEMENTS, INC.
G.R. 158693, November 17, 2004

Jennifer M. Agabon and Virgilio C. Agabon filed a case against Riviera Home Improvements, Inc. for
illegal dismissal.

FACTS:
1) Riviera Home Improvements Inc. (Riviera Home) is a company engaged in the business of selling
and installing ornamental and construction materials. Petitioners Agabon were employees of
this company until they were dismissed for not reporting to work.
2) Petitioners Agabon were only given work on a “pakyaw” basis but they did not agree with this
arrangement because it would mean losing benefits as Social Security System (SSS) members.
They demanded an increase of their daily wage but was not granted by Riviera Home. This
prompted the petitioners to stop reporting for work. Later, they filed an illegal dismissal case.
3) Respondent Riviera Home sent letters to the last known address of the petitioners advising them
to report for work and their manager talked to petitioner Virgilio C. Agabon by telephone
informing him of an installation project. However, petitioners still did not report for work
because they have already subcontracted to perform installation work for another company.
4) The Labor Arbiter rendered a decision declaring the dismissals illegal and ordered respondent
Riviera Home to pay the monetary claims. On appeal, the NLRC reversed the decision of the
Labor Arbiter because it found that the petitioners had abandoned their work and therefore
were not entitled to back wages and separation pay.

Petitioner’s Argument/s Respondent’s Argument/s

1) They were illegally dismissed by Riviera
Home Improvements, Inc.
2) Respondent Riviera Home did not comply
with the twin requirements of notice and
hearing.
1) Petitioners abandoned their work.
2) Sending notices to the last known
address would have been useless
because they no longer reside there.

RULING:
1) Petitioners’ dismissal was for a just cause. They had abandoned their employment and were
already working for another employer. However, Riviera Home should be held liable for non-
compliance with statutory due process.
2) Abandonment is the deliberate and unjustified refusal of an employee to resume his
employment. For a valid finding of abandonment, these two (2) factors should be present: (1)
the failure to report for work or absence without a valid or justifiable reason; and (2) a clear
intention to sever employee-employer relationship with private respondent, with the second as
the more determinative factor which is manifested by overt acts from which it may be deduced
that the employee/s has no more intention to work for the employer. The intent to discontinue
the employment must be shown by clear proof that it was deliberate and unjustified.
3) The petitioners were frequently absent having subcontracted for an installation work for
another company. An employee who deliberately absented from work without leave or
permission from his employer, for the purpose of looking for a job elsewhere, is considered to
Monica T. Buenaventura
11880201

have abandoned his job. This gives the employer a just and valid cause to terminate the
employee.
4) After establishing the valid termination, the procedures observed for the dismissal must be
evaluated. Under the Labor Code, if the dismissal is based on a just cause, the employer must
give the employee two (2) written notices and hearing or opportunity to be heard: a notice
specifying the grounds for which dismissal is sought a hearing or opportunity to be heard and
after, a notice of the decision to dismiss.
5) Private respondent Riviera Home did not follow the notice requirements and instead argued
that sending notices to the last known addresses would have been useless because they did not
reside there anymore. Unfortunately for Riviera Homes, this is not a valid excuse because the
law mandates the twin notice requirements to the employee’s last known address. Thus, it
should be held liable for non-compliance with the procedural requirements of due process.
6) An employer is liable to pay indemnity in the form of nominal damages to an employee who has
been dismissed if, in effecting such dismissal, the employer fails to comply with the
requirements of due process.
7) WHEREFORE, petitioners Agabon were found to have been dismissed based on just and valid
causes for the reason of abandonment. However, private respondent is ordered to pay the
petitioners the money claims.

Doctrine:
Dismissal of employees for a just cause requires employers to observe the procedural due process of
serving twin notices to the employee: one specifying the grounds for dismissal and another for the
decision of dismissal.