Serrano Separate Opinions
Serrano Separate Opinions
such as the general decline in the economy or merely part of its long
range plan for business profitability. Corollarily, in termination for a just
cause, the employee is not entitled to separation pay unlike in termination
for an authorized cause. In addition, the basis in computing the amount of
separation pay varies depending on whether the termination is due to the
installation of a labor saving device, or redundancy, in which case, the
BELLOSILLO, J., separate opinion;
employee is entitled to receive separation pay equivalent to at least one
(1) month pay or to at least one (1) month pay for every year of service.
We point out at the outset that this Petition for Review which was filed In case the termination is due to retrenchment in order to prevent losses
before the promulgation of St. Martin Funeral Home v. National Labor or in case of closure or cessation of operation of the establishment or
Relations Commission,1 is not the proper means by which NLRC undertaking not due to serious business losses or financial reverses, the
decisions are appealed to this Court. Before St. Martin Funeral Home, it separation pay is lower, i.e., equivalent to one (1) month pay or at least
was only through a Petition for Certiorari under Rule 65 that NLRC one-half month pay for every year of service, whichever is higher. As may
decisions could be reviewed and nullified by us on the ground of lack of be gleaned from the foregoing, where the cause of termination is for the
jurisdiction or grave abuse of discretion amounting to lack or excess of financial advantage or benefit of the employer, the basis in computing for
jurisdiction. After St. Martin Funeral Home, petitions like the one at bar separation pay is higher compared to termination dictated by necessity
are initially filed in the Court of Appeals for proper adjudication. with no appreciable financial advantage to the employer.
In the interest of justice, however, and in order to write finis to the instant In the instant case, we agree with the NLRC that the dismissal of
case which has already dragged on for so long, we shall treat the petitioner Serrano was for an authorized cause, i.e., redundancy, which
petition pro hac vice as one for certiorari under Rule 65 although it is exists where the services of an employee are in excess of what are
captioned Petition for Review on Certiorari; after all, it was filed within the reasonably demanded by the actual requirements of the enterprise. A
reglementary period for the filing of a petition for certiorari under Rule 65. position is redundant where it is superfluous, and the superfluity may be
the outcome of other factors such as overhiring of workers, decreased
volume of other business, or dropping of a particular product line or
Briefly, on 4 April 1985 private respondent Isetann Department Store, Inc.
service activity previously manufactured or undertaken by the enterprise.4
(ISETANN), employed petitioner Ruben Serrano as Security Checker until
his appointment as Security Section Head. On October 1991 ISETANN
through its Human Resource Division Manager Teresita A. Villanueva The hiring of an independent security agency is a business decision
sent Serrano a memorandum terminating his employment effective properly within the exercise of management prerogative. As such, this
immediately "in view of the retrenchment program of the company," and Court is denied the authority to delve into its wisdom although it is
directing him to secure clearance from their office.2 equipped with the power to determine whether the exercise of such
prerogative is in accordance with law. Consequently, the wisdom or
soundness of the management decision is not subject to the discretionary
Petitioner Serrano filed with the NLRC Adjudication Office a complaint for
review of the Labor Arbiter nor of the NLRC unless there is a violation of
illegal dismissal and underpayment of wages against ISETANN. Efforts at
law or arbitrariness in the exercise thereof, in which case, this Court will
amicable settlement proved futile. Ms. Cristina Ramos, Personnel
step in.5 Specifically, we held in International Harvester Macleod, Inc. v.
Administration Manager of ISETANN, testified that the security checkers
Intermediate Appellate Court6 that the determination of whether to
and their section head were retrenched due to the installation of a
maintain or phase out an entire department or section or to reduce
labor saving device, i.e., the hiring of an independent security
personnel lies with management. The determination of the need for the
agency.
phasing out of a department as a labor and cost saving device because it
is no longer economical to retain its services is a management
Finding the dismissal to be illegal, the Labor Arbiter ordered the prerogative.
immediate reinstatement of Serrano to his former or to an equivalent
position plus payment of back wages, unpaid wages, 13th month pay and
After having established that the termination of petitioner Ruben
attorney's fees.
Serrano was for an authorized cause, we now address the issue of
whether proper procedures were observed in his dismissal.
On appeal the NLRC reversed the Labor Arbiter and ruled that ISETANN
acted within its prerogative when it phased out its Security Section and
Since the State affords protection to labor under the
retained the services of an independent security agency in order to cut
Constitution,7 workers enjoy security of tenure and may only be
costs and economize. Upon denial of his motion for
removed or terminated upon valid reason and through strict observance
reconsideration3 Serrano filed the instant petition imputing grave abuse of
of proper procedure.8 Article 279 of the Labor Code specifically provides
discretion on the part of the NLRC.
Art. 282 of the Labor Code enumerates the just causes for the
Art. 279. Security of Tenure. In cases of regular
termination of employment by the employer: (a) serious misconduct or
employment, the employer shall not terminate the services of
willful disobedience by the employee of the lawful orders of his employer
an employee except for a just cause or when authorized by this
or the latter's representative in connection with the employee's work; (b)
Title. An employee who is unjustly dismissed from work shall be
gross and habitual neglect by the employee of his duties; (c) fraud or
entitled to reinstatement without loss of seniority rights and
willful breach by the employee of the trust reposed in him by his employer
other privileges and to his full backwages, inclusive of
or his duly authorized representative; (d) commission of a crime or
allowances, and to his other benefits or their monetary
offense by the employee against the person of his employer or any
equivalent computed from the time his compensation was
immediate member of his family or his duly authorized representative;
withheld from him up to the time of his actual reinstatement.
and, (e) other causes analogous to the foregoing.
In the instant case, Serrano was given his walking papers only on the
Non-observance of this procedural requirement before would cause the very same day his termination was to take effect. DOLE was not served
employer to be penalized by way of paying damages to the employee the any written notice. In other words, there was non-observance of the 30-
amounts of which fluctuated through the years. Thus, for just cause the day notice requirement to both Serrano and the DOLE. Serrano was thus
indemnity ranged from P1,000.00 to P10,000.00. 24 For authorized cause, terminated for an authorized cause but was not accorded his right to 30-
as distinguished from just cause, the award ranged from P2,000.00 to day notice. Thus, his dismissal being improper and irregular, he is entitled
P5,000.00.25 to separation pay and back wages the amounts of which to be
determined by the Labor Arbiter, plus P10,000.00 as disturbance
This Court has also sanctioned the ruling that a dismissal for a just or compensation which, from its very nature, must be paid immediately to
authorized cause but without observance of the mandatory 30-day notice cushion the impact of his economic dislocation.
requirement was valid although considered irregular. The Court
One last note. This Separate Opinion is definitely not advocating a new (a) Serious misconduct or willful disobedience by the
concept in imposing the so-called "disturbance compensation." employee of the lawful orders of his employer or
Since Wenphil Corporation v. NLRC 26 this Court has already recognized representative in connection with his work;
the necessity of imposing a sanction in the form of indemnity or even
damages, when proper, not specifically provided by any law, upon
(b) Gross and habitual neglect by the employee of
employers who failed to comply with the twin-notice requirement. At the
his duties;
very least, what is being proposed to be adopted here is merely a change
in the terminology used, i.e., from "sanction," "indemnity," "damages" or
"penalty," to "disturbance compensation" as it is believed to be the more (c) Fraud or willful breach by the employee of the
appropriate term to accurately describe the lamentable situation of our trust reposed in him by his employer or duly
displaced employees. authorized representative;
Indeed, from the time the employee is dismissed from the service without (d) Commission of the crime or offense by the
notice in this case since 11 October 1991 to the termination of his employee against the person of his employer or any
case, assuming it results in his reinstatement, or his being paid his back immediate member of his family or his duly
wages and separation pay, as the case may be, how long must he be authorized representative; and
made to suffer emotionally and bear his financial burden? Will reinstating
him and/or paying his back wages adequately make up for the entire
(e) Other causes analogous to the foregoing.
period that he was indistress for want of any means of livelihood?
Petitioner Serrano has been deprived of his only source of income his
employment for the past eight (8) years or so. Will his reinstatement The long established jurisprudence2 is that to justify dismissal of an
and/or the payment of his back wages and separation pay enable him to employee for a just cause, he must be given two kinds of notice by his
pay off his debts incurred in abject usury to which he must have employer, viz: (1) notice to apprise the employee of the particular acts or
succumbed during his long period of financial distress? Will it be omissions for which the dismissal is sought, and (2) subsequent notice to
adequate? Will it be just? Will it be fair? Thus, do we really and truly inform him of the employer's decision to dismiss him. Similarly, deeply
render justice to the workingman by simply awarding him full back wages ingrained is our ruling that these pre and post notice requirements are not
and separation pay without regard for the long period during which he mere technicalities but are requirements of due process.3
was wallowing in financial difficulty?
Then came the case of Wenphil Corporation vs. NLRC and Mallare in
FOR ALL THE FOREGOING, the Decision of respondent National Labor 1989.4 It is the majority view that Wenphil reversed the long standing
Relations Commission should be MODIFIED. The termination of policy of this Court on dismissal. This is too broad a reading of Wenphil. A
petitioner RUBEN SERRANO being based on an authorized cause careful statement of the facts of Wenphil and the ruling of this Court is
should be SUSTAINED AS VALID although DECLARED IRREGULAR for thus proper.
having been effected without the mandatory 30-day notice.
First, the facts. The private respondent Roberto Mallare is the assistant
ISETANN DEPARTMENT STORE INC. should PAY petitioner SERRANO head of the backroom department of petitioner Wenphil Corporation. At
back wages and separation pay the amounts of which to be determined about 2:30 pm on May 20, 1985, Mallare had an altercation with his co-
by the Labor Arbiter, plus P10,000.00 as disturbance compensation which employee, Job Barrameda, about tending the Salad Bar. He slapped
must be paid immediately. Consequently, except as regards the Barrameda's cap, stepped on his foot, picked up an ice scooper and
disturbance compensation, the case should be REMANDED to the Labor brandished it against the latter. He refused to be pacified by another
Arbiter for the immediate computation and payment of the back wages employee who reported the incident to Delilah Hermosura, assistant
and separation pay due petitioner. manager. Hermosura summoned Mallare but the latter refused to see the
former. It took a security guard to bring Mallare to Hermosura. Instead of
making an explanation, Mallare shouted profane words against
EXCEPT as herein stated, I concur with the majority.
Hermosura. He declared that their altercation should only be settled by
him and Barrameda.
The rule of audi alteram partem hear the other side, is the essence of Mallare filed with the Labor Arbiter a complaint for illegal suspension,
procedural due process. That a "party is not to suffer in person or in purse illegal dismissal and unfair labor practice. No hearing was conducted in
without an opportunity of being heard" is the oldest established principle view of the repeated absence of the counsel of Mallare. The parties
in administrative law.1 Today, the majority is relies that the all important submitted their respective position papers. On December 3, 1986, the
right of an employee to be notified before he is dismissed for a just or Arbiter denied the complaint as he found Mallare guilty of grave
authorized cause is not a requirement of due process. This is a blow on misconduct and insubordination, which are just causes for dismissal. The
the breadbasket of our lowly employees, a considerable erosion of their Arbiter also ruled that Mallare was not denied due process. On appeal,
constitutional right to security of tenure, hence this humble dissenting the NLRC reversed. It held that Mallare was denied due process before
opinion. he was dismissed. It ordered Mallare's reinstatement and the payment of
his one (1) year backwages.
xxx xxx xxx The stubborn refusal of the majority to appreciate the importance of pre-
dismissal notice is difficult to understand. It is the linchpin of an
employee's right against an illegal dismissal. The notice tells him the
Q: . . . What (is) this labor saving device that you are referring cause of his dismissal. It gives him a better chance to contest his
to? dismissal in an appropriate proceeding as laid down in the parties'
collective bargaining agreement or the rules of employment established
A: The labor saving device is that the services of a security by the employer, as the case may be. In addition, it gives to both the
agency were contracted to handle the services of the security employee and employer more cooling time to settle their differences
checkers of our company. amicably. In fine, the prior notice requirement and the hearing before the
employer give an employee a distinct, different and effective first level of
remedy to protect his job. In the event the employee is dismissed, he can
Q: Are you sure of what labor saving means, Madam witness? still file a complaint with the DOLE with better knowledge of the cause of
his dismissal, with longer time to prepare his case, and with greater
A: Yes, sir. opportunity to take care of the financial needs of his family pendente lite.
The majority has taken away from employees this effective remedy. This
is not to say that the pre-dismissal notice requirement equalizes the fight
Q: You said you installed a labor saving device, and you between an employee and an employer for the fight will remain unequal.
installed a security agency as a labor saving device? This notice requirement merely gives an employee a fighting chance but
that fighting chance is now gone.
A: We hired the services of a security agency.
It is equally puzzling why the majority believes that restoring the
Q: So according to you . . . a security agency is a labor saving employee's right to pre-dismissal notice will negate the right of an
device? employer to dismiss for cause. The pre-Wenphil rule simply requires that
before the right of the employer to dismiss can be exercised, he must
give prior notice to the employee of its cause. There is nothing strange
Atty. Salonga: nor difficult about this requirement. It is no burden to an employer. He is
bereft of reason not to give the simple notice. If he fails to give notice, he
Already answered, your Honor. can only curse himself. He forfeits his right to dismiss by failing to follow
the procedure for the exercise of his right. Employees in the public sector
cannot be dismissed without prior notice. Equal protection of law
Obviously, Ms. Ramos could not even distinguish between retrenchment demands similar treatment of employees in the private sector.
and redundancy. The Labor Arbiter thus ruled that petitioner's dismissal
was illegal. The NLRC, however, reversed. The majority affirmed the
NLRC ruling that ISETANN's phase out of its security employees is a THIRD. The case at bar specifically involves Article 283 of the Labor
legitimate business decision, one that is necessary to obtain reasonable Code which lays down four (4) authorized causes for termination of
return from its investment. To use the phrase of the majority, this is a employment.11 These authorized causes are: (1) installation of labor-
"bare assertion." Nothing in the majority decision shows how the return of saving devices; (2) redundancy; (3) retrenchment to prevent losses; and
ISETANN's investment has been threatened to justify its so-called (4) closing or cessation of operation of the establishment or undertaking
business decision as legitimate. unless the closing is for the purpose of circumventing the law. It also
provides that prior to the dismissal of an employee for an authorized
cause, the employer must send two written notices at least one month
SECOND. The majority holds that "the need is for a rule which, while before the intended dismissal one notice to the employee and another
recognizing the employee's right to notice before he is dismissed or laid notice to the Department of Labor and Employment (DOLE). We have
off, at the same time acknowledges the right of the employer to dismiss ruled that the right to dismiss on authorized causes is not an absolute
for any of the just causes enumerated in Art. 282 or to terminate prerogative of an employer.12 We explained that the notice to the DOLE is
employment for any of the authorized causes mentioned in Arts. 283-284. necessary to enable it to ascertain the truth of the cause of
If the Wenphil rule imposing a fine on an employer who is found to have termination.13 The DOLE is equipped with men and machines to
dismissed an employee for cause without prior notice is deemed determine whether the planned closure or cessation of business or
ineffective in deterring employer violations of the notice requirement, the retrenchment or redundancy or installation of labor saving device is
remedy is not to declare the dismissal void if there are just or valid justified by economic facts.14 For this reason too, we have held that notice
grounds for such dismissal or if the termination is for an authorized to the employee is required to enable him to contest the factual bases of
cause. That would be to uphold the right of the employee but deny the the management decision or good faith of the retrenchment or
right of the employer to dismiss for cause. Rather, the remedy is to
redundancy before the DOLE.15 In addition, this notice requirement gives an outsider, made to apply for the job, and given a stringent examination
an employee a little time to adjust to his joblessness.16 which he failed. Petitioner was booted out and given no chance to contest
his dismissal. Neither was the DOLE given the chance to check whether
the dismissal of petitioner was really for an authorized cause. All these
The majority insists that if an employee is laid off for an authorized cause
because ISETANN did not follow the notice and hearing requirement of
under Article 283 in violation of the prior notice requirement, his dismissal
due process.
should not be considered void but only ineffectual. He shall not be
reinstated but paid separation pay and some backwages. I respectfully
submit that an employee under Article 283 has a stronger claim to the FOURTH. The majority has inflicted a most serious cut on the job security
right to a pre-dismissal notice and hearing. To begin with, he is an of employees. The majority did nothing to restore the pre-Wenphil right of
innocent party for he has not violated any term or condition of his employees but even expanded the right to dismiss of employer by holding
employment. Moreover, an employee in an Article 283 situation may lose that the pre-dismissal notice requirement is not even a function of due
his job simply because of his employer's desire for more profit. Thus, the process. This seismic shift in our jurisprudence ought not to pass.
installation of a labor saving device is an authorized cause to terminate
employment even if its non-installation need not necessarily result in an
The key to the new majority ruling is that the "due process clause of the
over-all loss to an employer possessed by his possessions. In an Article
Constitution is a limitation on governmental powers. It does not apply to
283 situation, it is easy to see that there is a greater need to scrutinize
the exercise of private power such as the termination of employment
the allegations of the employer that he is dismissing an employee for an
under the Labor Code." The main reason alleged is that "only the State
authorized cause. The acts involved here are unilateral acts of the
has authority to take the life, liberty, or property of the individual. The
employer. Their nature requires that they should be proved by the
purpose of the Due Process Clause is to ensure that the exercise of this
employer himself. The need for a labor saving device, the reason for
power is consistent with settled usage of civilized society."
redundancy, the cause for retrenchment, the necessity for closing or
cessation of business are all within the knowledge of the employer and
the employer alone. They involve a constellation of economic facts and There can be no room for disagreement on the proposition that the due
factors usually beyond the ken of knowledge of an ordinary employee. process clause found in the Bill of Rights of the Constitution is a limitation
Thus, the burden should be on the employer to establish and justify these on governmental powers. Nor can there be any debate that acts of
authorized causes. Due to their complexity, the law correctly directs that government violative of due process are null and void. Thus, former Chief
notice should be given to the DOLE for it is the DOLE more than the lowly Justice Roberto Concepcion emphasized in Cuaycong
employee that has the expertise to validate the alleged cause in an v. Senbengco 17 that ". . . acts of Congress as well as those of the
appropriate hearing. In fine, the DOLE provides the equalizer to the Executive, can deny due process only under pain of nullity, and judicial
powers of the employer in an Article 283 situation. Without the equalizing proceedings suffering from the same flaw are subject to the same
influence of DOLE, the employee can be abused by his employer. sanction, any statutory provision to the contrary notwithstanding." With
due respect to the majority, however, I part ways with the majority in its
new ruling that the due process requirement does not apply to the
Further, I venture the view that the employee's right to security of tenure
exercise of private power. This overly restrictive majority opinion will sap
guaranteed in our Constitution calls for a pre-dismissal notice and
the due process right of employees of its remaining utility. Indeed, the
hearing rather than a post facto dismissal hearing. The need for an
new majority opinion limiting violations of due process to government
employee to be heard before he can be dismissed cannot be
action alone is a throwback to a regime of law long discarded by more
overemphasized. As aforestated, in the case at bar, petitioner was a
progressive countries. Today, private due process is a settled norm in
regular employee of ISETANN. He had the right to continue with his
administrative law. Per Schwartz, a known authority in the field, viz:18
employment. The burden to establish that this right has ceased is with
ISETANN, as petitioner's employer. In fine, ISETANN must be the one to
first show that the alleged authorized cause for dismissing petitioner is Private Due Process
real. And on this factual issue, petitioner must be heard. Before the
validity of the alleged authorized cause is established by ISETANN, the
As already stressed, procedural due process has proved of an
petitioner cannot be separated from employment. This is the simple
increasingly encroaching nature. Since Goldberg v. Kelly, the
meaning of security of tenure. With due respect, the majority opinion will
right to be heard has been extended to an ever-widening area,
reduce this right of our employees to a mere illusion. It will allow the
covering virtually all aspects of agency action, including those
employer to dismiss an employee for a cause that is yet to be
previously excluded under the privilege concept. The
established. It tells the employee that if he wants to be heard, he can file
expansion of due process has not been limited to the traditional
a case with the labor arbiter, then the NLRC, and then this Court. Thus, it
areas of administrative law. We saw how procedural rights
unreasonably shifts the burden to the employee to prove that his
have expanded into the newer field of social welfare, as well as
dismissal is for an unauthorized cause.
that of education. But due process expansion has not been
limited to these fields. The courts have extended procedural
The pernicious effects of the majority stance are self-evident in the case protections to cases involving prisoners and parolees, as well
at bar. For one, petitioner found himself immediately jobless and without as the use of established adjudicatory procedures. Important
means to support his family. For another, petitioner was denied the right Supreme Court decisions go further and invalidate prejudgment
to rely on the power of DOLE to inquire whether his dismissal was for a wage garnishments and seizures of property under replevin
genuine authorized cause. This is a valuable right for all too often, a lowly statutes where no provision is made for notice and hearing. But
employee can only rely on DOLE's vast powers to check employer the Court has not gone so far as to lay down an inflexible rule
abuses on illegal dismissals. Without DOLE, poor employees are preys to that due process requires an adversary hearing when an
the claws of powerful employers. Last but not the least, it was the individual may be deprived of any possessory interest, however
petitioner who was forced to file a complaint for illegal dismissal. To a brief the dispossession and however slight the monetary
jobless employee, filing a complaint is an unbearable burden due to its interest in the property. Due process is not violated where state
economic cost. He has to hire a lawyer and defray the other expenses of law requires, as a precondition to invoking the state's aid to
litigation while already in a state of penury. At this point, the hapless sequester property of a defaulting debtor, that the creditor
employee is in a no win position to fight for his right. To use a local adage, furnish adequate security and make a specific showing of
"aanhin pa ang damo kung patay na ang kabayo." probable cause before a judge.
In the case at bar, the job of the petitioner could have been saved if In addition, there has been an extension of procedural due
DOLE was given notice of his dismissal. The records show that petitioner process requirements from governmental to private action. In
worked in ISETANN as security checker for six (6) years. He served Section 5.16 we saw that Goldberg v. Kelly has been extended
ISETANN faithfully and well. Nonetheless, in a desire for more profits, to the eviction of a tenant from a public housing project. The
and not because of losses, ISETANN contracted out the security work of courts have not limited the right to be heard to tenants who
the company. There was no effort whatsoever on the part of ISETANN to have governmental agencies as landlords. Due process
accommodate petitioner in an equivalent position. Yet there was the requirements also govern acts by "private" landlords where
position of Safety and Security Supervisor where petitioner fitted like a there is sufficient governmental involvement in the rented
perfect T. Despite petitioner's long and loyal service, he was treated like premises. Such an involvement exists in the case of housing
aided by Federal Housing Administration financing and tax (b) Subject to the constitutional right of workers to
advantages. A tenant may not be summarily evicted from a security of tenure and their right to be protected
building operated by a "private" corporation where the against dismissal except for a just or authorized
corporation enjoyed substantial tax exemption and had cause and without prejudice to the requirement of
obtained an FHA-insured mortgage, with governmental notice under Article 283 of this Code, the employer
subsidies to reduce interest payments. The "private" shall furnish the worker whose employment is sought
corporation was so saturated with governmental incidents as to to be terminated a written notice containing a
be limited in its practices by constitutional process. Hence, it statement of the causes for termination and shall
could not terminate tenancies without notice and an opportunity afford the latter ample opportunity to be heard and to
to be heard. defend himself with the assistance of his
representative if he so desires in accordance with
company rules and regulations promulgated
But we need nor rely on foreign jurisprudence to repudiate the new
pursuant to the guidelines set by the Department of
majority ruling that due process restricts government alone and not
Labor and Employment. Any decision taken by the
private employers like ISETANN. This Court has always protected
employer shall be without prejudice to the right of the
employees whenever they are dismissed for an unjust cause by private
worker to contest the validity or legality of his
employers. We have consistently held that before dismissing an
dismissal by filing a complaint with the regional
employee for a just cause, he must be given notice and hearing by his
branch of the National Labor Relations Commission.
private employer. In Kingsize Manufacturing Corporation vs. NLRC,19 this
The burden of proving that the termination was for a
Court, thru Mr. Justice Mendoza, categorically ruled:
valid or authorized cause shall rest on the
employer. . . . .
. . . (P)etitioners failure to give notice with warning to the
private respondents before their services were terminated puts
Previous to the amendment, Article 277 (b) read:
in grave doubt petitioners' claim that dismissal was for a just
cause. Section 2 Rule XIV of the Rules implementing the Labor
Code provides: Art. 277. Miscellaneous provisions. (a) . . . .
An employer who seeks to dismiss a worker shall (b) With or without a collective agreement, no
furnish him a written notice stating the particular acts employer may shut down his establishment or
or omission constituting the ground for dismissal. In dismiss or terminate the employment of employees
case of abandonment of work, the notice shall be with at least one year of service during the last two
served on the worker's last known address. years, whether such service is continuous or broken,
without prior written authority issued in accordance
with the rules and regulations as the Secretary may
The notice required, . . ., actually consists of two parts to be
promulgate.
separately served on the employee, to wit: (1) notice to apprise
the employee of the particular acts or omissions for which the
dismissal is sought; and (2) subsequent notice to inform him of Rule XIV, Book V of the 1997 Omnibus Rules Implementing the Labor
the employer's decision to dismiss him. Code provides:
Next, the majority holds that "the requirement to hear an employee before
(c) A written notice of termination served on the he is dismissed should be considered simply as an application of the
employee indicating that upon due consideration of Justinian precept, embodied in the Civil Code, to act with justice, give
all the circumstance, grounds have been established everyone his due, and observe honesty and good faith toward one's
to justify his termination. fellowmen." It then rules that violation of this norm will render the
employer liable for damages but will not render his act of dismissal void.
In case of termination, the foregoing notices shall be served on Again, I cannot join the majority stance. The faultline of this ruling lies in
the employee's last known address. the refusal to recognize that employer-employee relationship is governed
by special labor laws and not by the Civil Code. The majority has
disregarded the precept that relations between capital and labor are
II. For termination of employment as based on authorized impressed with public interest. For this reason, we have the Labor Code
causes defined in Article 283 of the Code, the requirements of that specially regulates the relationship between employer-employee
due process shall be deemed complied with upon service of a including dismissals of employees. Thus, Article 279 of the Labor Code
written notice to the employee and the appropriate Regional specifically provides that "in cases of regular employment, the employer
Office of the Department at least thirty (30) days before the shall not terminate the services of an employee except for a just cause or
effectivity of the termination, specifying the ground or grounds when authorized by this Title. An employee who is unjustly dismissed
for termination.
from work shall be entitled to instatement without loss of seniority rights In effect, the majority view is that its new ruling puts at par both the
and other privileges and to his full backwages, inclusive of allowances, employer and the employee under Article 285, the failure of an
and to his other benefits or their monetary equivalent computed from the employee to pre-notify in writing his employer that he is terminating their
time his compensation was withheld from him up to the time of his actual relationship does not make his walk-out void; under its new ruling, the
reinstatement." This provision of the Labor Code clearly gives the failure of an employer to pre-notify an employee before his dismissal
remedies that an unjustly dismissed employee deserves. It is not the Civil does not also render the dismissal void. By this new ruling, the majority in
Code that is the source of his remedies. a short stroke has rewritten the law on dismissal and tampered its pro-
employee philosophy. Undoubtedly, Article 285 favors the employee as it
does not consider void his act of terminating his employment relationship
The majority also holds that lack of notice in an Article 283 situation
before giving the required notice. But this favor given to an employee just
merely makes an employee dismissal "ineffectual" but not illegal. Again,
like the other favors in the Labor Code and the Constitution are precisely
the ruling is sought to be justified by analogy and our attention is called to
designed to level the playing field between the employer and the
Article 1592, in relation to Article 1191 of the Civil Code. It is contended
employee. It cannot be gainsaid that employees are the special subject of
that "under these provisions, while the power to rescind is implied in
solicitous laws because they have been and they continue to be exploited
reciprocal obligations, nonetheless, in cases involving the sale of
by unscrupulous employers. Their exploitation has resulted in labor
immovable property, the vendor cannot rescind the contract even though
warfare that has broken industrial peace and slowed down economic
the vendee defaults in the payment of the price, except by bringing an
progress. In the exercise of their wisdom, the founding fathers of our
action in court or giving notice of rescission by means of a notarial
1935, 1973 and 1987 Constitutions as well as the members our past and
demand." The analogy of the majority cannot be allowed both in law and
present Congresses, have decided to give more legal protection and
in logic. The legal relationship of an employer to his employee is not
better legal treatment to our employees in their relationship with their
similar to that of a vendor and a vendee. An employee suffers from a
employer. Expressive of this policy is President Magsaysay's call that "he
distinct disadvantage in his relationship with an employer, hence, the
who has less in life should have more in law." I respectfully submit that
Constitution and our laws give him extra protection. In contrast, a vendor
the majority cannot revise our laws nor shun the social justice thrust of
and a vendee in a sale of immovable property are at economic par with
our Constitution in the guise of interpretation especially when its result is
each other. To consider an employer-employee relationship as similar to a
to favor employers and disfavor employees. The majority talks of high
sale of commodity is an archaic abomination. An employer-employee
nobility but the highest nobility it to stoop down to reach the poor.
relationship involves the common good and labor cannot be treated as a
mere commodity. As well-stated by former Governor General Leonard
Wood in his inaugural message before the 6th Philippine Legislature on IV. NO UNJUST RESULTS OF CONSIDERING DISMISSALS
October 27, 1922, "it is opportune that we strive to impress upon all the WITHOUT PRIOR NOTICE AS ILLEGAL
people that labor is neither a chattel nor a commodity, but human and
must be dealt with from the standpoint of human interests."
The majority further justifies its new ruling by holding:
Next, the majority holds that under the Labor Code, only the absence of a
The refusal to look beyond the validity of the initial action taken
just cause for the termination of employment can make the dismissal of
by the employer to terminate employment either for an
an employee illegal. Quoting Article 279 which provides:
authorized or just cause can result in an injustice to the
employer. For not having been given notice and hearing before
Security of Tenure. In cases of regular employment, the dismissing an employee, who is otherwise guilty of, say, theft,
employer shall not terminate the services of an employee or even of an attempt against the life of the employer, an
except for a just cause or when authorized by this Title. An employer will be forced to keep in his employ such guilty
employee who is unjustly dismissed from work shall be entitled employee. This is unjust.
to reinstatement without loss of seniority rights and other
privileges and to his full backwages, inclusive of allowances,
It is true the Constitution regards labor as "a primary social
and to his other benefits or their monetary equivalent computed
economic force." But so does it declare that it "recognizes the
from the time his compensation was withheld from him up to
indispensable role of the private sector, encourages private
the time of his actual reinstatement.
enterprise, and provides incentives to needed investment." The
Constitution bids the State to "afford full protection to labor."
it is then rationalized that "to hold that the employer's failure to give notice But it is equally true that "the law, in protecting the rights of the
before dismissing an employee . . . results in the nullity of the dismissal laborer, authorizes neither oppression nor self-destruction of
would, in effect, be to amend Article 279 by adding another ground, for the employer." And it is oppression to compel the employer to
considering a dismissal illegal." With due respect, the majority has continue in employment one who is guilty or to force the
misread Article 279. To start with, the article is entitled "Security of employer to remain in operation when it is not economically in
Tenure" and therefore protects an employee against dismissal not only for his interest to do so.
an unjust cause but also for an unauthorized cause. Thus, the phrase
"unjustly dismissed" refers to employees who are dismissed without just
With due respect, I cannot understand this total turn around of the
cause and to employees who are laid off without any authorized cause.
majority on the issue of the unjustness of lack of pre-dismissal notice to
As heretofore shown, we have interpreted dismissals without prior notice
an employee. Heretofore, we have always considered this lack of notice
as illegal for violating the right to due process of the employee. These
as unjust to the employee. Even under Article 302 of the Spanish Code of
rulings form part of the law of the land and Congress was aware of them
Commerce of 1882 as related by the majority, an employer who opts to
when it enacted the Labor Code and when its implementing rules and
dismiss an employee without any notice has to pay a mesada equivalent
regulations were promulgated especially the rule ordering employers to
to his salary for one month because of its unjustness. This policy was
follow due process when dismissing employees. Needless to state, it is
modified by our legislators in favor of a more liberal treatment of labor as
incorrect for the majority to urge that we are in effect amending Article
our country came under the influence of the United States whose major
279.
labor laws became the matrix of our own laws like R.A. 875, otherwise
known as the Industrial Peace Act. In accord with these laws, and as
In further explication of its ruling, the majority contends "what is more, it aforediscussed, we laid down the case law that dismissals without prior
would ignore the fact that under Art. 285, if it is the employee who fails to notice offend due process. This is the case law when the Labor Code was
give a written notice to the employer that he is leaving the service of the enacted on May 1, 1974 and until now despite its amendments. The 1935
latter, at least one month in advance, his failure to comply with the legal and the 1973 Constitutions did not change this case law. So with the
requirement does not result in making his resignation void but only in 1987 Constitution which even strengthened the rights of employees,
making him liable for damages." Article 285(a) states: "An employee may especially their right to security of tenure. Mr. Justice Laurel in his usual
terminate without just cause the employee-employer relationship by inimitable prose expressed this shift in social policy in favor of employees
serving a written notice on the employer at least one (1) month in as follows:
advance. The employer upon whom no such notice was served may hold
the employee liable for damages."
It should be observed at the outset that our Constitution was
adopted in the midst of surging unrest and dissatisfaction
resulting from economic and social distress which was
threatening the stability of governments the world over. Alive to
the social and economic forces at work, the framers of our
Constitution boldly met the problems and difficulties which
faced them and endeavored to crystallize, with more or less VITUG, J., separate (concurring and dissenting) opinion;
fidelity, the political, social and economic propositions of their
age, and this they did, with the consciousness that the political The lawful severance by an employer of an employer-employee
and philosophical aphorism of their generation will, in the relationship would require a valid cause. There are, under the Labor
language of a great jurist, "be doubted by the next and perhaps Code, two groups of valid causes, and these are the just causes under
entirely discarded by the third." (Chief Justice Winslow in Article 2821 and the authorized causes under Article 283 2 and Article
Gorgnis v. Falk Co., 147 Wis., 327; 133 N. W., 209). 284.3
Embodying the spirit of the present epoch, general provisions
were inserted in the Constitution which are intended to bring
about the needed social and economic equilibrium between An employee whose employment is terminated for a just cause is not
component elements of society through the application of what entitled to the payment of separation benefits. 4 Separation pay would be
may be termed as the justitia communis advocated by Grotius due, however, when the lay-off is on account of an authorized cause. The
and Leibnitz many years ago to be secured through the amount of separation pay would depend on the ground for the termination
counter-balancing of economic and social forces and of employment. A lay-off due to the installation of a labor saving device,
employers or landlords, and employees or tenants, redundancy (Article 283) or disease (Article 284), entitles the worker to a
respectively; and by prescribing penalties for the violation of separation pay equivalent to "one (1) month pay or at least one (1) month
the orders" and later, Commonwealth Act No. 213, entitled "An pay for every year of service, whichever is higher." When the termination
Act to define and regulate legitimate labor organizations."28 of employment is due to retrenchment to prevent losses, or to closure or
cessation of operations of an establishment or undertaking not due to
serious business losses or financial reverses, the separation pay is only
This ingrained social philosophy favoring employees has now been an equivalent of "one (1) month pay or at least one-half (1/2) month pay
weakened by the new ruling of the majority. For while this Court has for every year of service, whichever is higher." In the above instances, a
always considered lack of pre-dismissal notice as unjust to employees,
fraction of at least six (6) months is considered as one (1) whole year.
the new ruling of the majority now declares it is unjust to employers as if
employers are the ones exploited by employees. In truth, there is nothing
unjust to employers by requiring them to give notice to their employees Due process of law, in its broad concept, is a principle in our legal system
before denying them their jobs. There is nothing unjust to the duty to give that mandates due protection to the basic rights, inherent or accorded, of
notice for the duty is a reasonable duty. If the duty is reasonable, then it is every person against harm or transgression without an intrinsically just
also reasonable to demand its compliance before the right to dismiss on and valid law, as well as an opportunity to be heard before an impartial
the part of an employer can be exercised. If it is reasonable for an tribunal, that can warrant such an impairment. Due process guarantees
employer to comply with the duty, then it can never be unjust if non- against arbitrariness and bears on both substance and procedure.
compliance therewith is penalized by denying said employer his right to Substantive due process concerns itself with the law, its essence, and its
dismiss. In fine, if the employer's right to dismiss an employee is forfeited concomitant efficacy; procedural due process focuses on the rules that
for his failure to comply with this simple, reasonable duty to pre-notify his are established in order to ensure meaningful adjudications appurtenant
employee, he has nothing to blame but himself. If the employer is thereto.
estopped from litigating the issue of whether or not he is dismissing his
employee for a just or an authorized cause, he brought the consequence
In this jurisdiction, the right to due process is constitutional and statutory.
on to himself. The new ruling of the majority, however, inexplicably
considers this consequence as unjust to the employer and it merely winks
at his failure to give notice. Due process in the context of a termination of employment, particularly,
would be two-fold, i.e., substantive due process which is complied with
when the action of the employer is predicated on a just cause or an
V. A LAST WORD
authorized cause, and procedural due process which is satisfied when
the employee has the opportunity to contest the existence of the ground
The new ruling of the majority erodes the sanctity of the most important invoked by the employer in terminating the contract of employment and to
right of an employee, his constitutional right to security of tenure. This be heard thereon. I find it difficult to ascribe either a want of wisdom or a
right will never be respected by the employer if we merely honor the right lack of legal basis to the early pronouncements of this Court that sanction
with a price tag. The policy of "dismiss now and pay later" favors monied the termination of employment when a just or an authorized cause to
employers and is a mockery of the right of employees to social justice. warrant the termination is clearly extant. Regrettably, the Court in some of
There is no way to justify this pro-employer stance when the 1987 those pronouncements has used, less than guarded in my view, the term
Constitution is undeniably more pro-employee than our previous "due process" when referring to the notices prescribed in the Labor
fundamental laws. Section 18 of Article II (State Policies) provides that Code5 and its implementing rules6 that could, thereby, albeit unintendedly
"the State affirms labor as a primary social economic force. It shall protect and without meaning to, confuse the latter with the notice requirement in
the rights of workers and promote their welfare." Section 1, Article XIII adjudicatory proceedings. It is not seldom when the law puts up various
(Social Justice and Human Rights) calls for the reduction of economic conditions in the juridical relations of parties; it would not be accurate to
inequalities. Section 3, Article XIII (Labor) directs the State to accord full consider, I believe, an infraction thereof to ipso-facto raise a problem of
protection to labor and to guaranty security of tenure. These are due process. The mere failure of notice of the dismissal or lay-off does
constitutional polestars and not mere works of cosmetology. Our odes to not foreclose the right of an employee from disputing the validity, in
the poor will be meaningless mouthfuls if we cannot protect the general, of the termination of his employment, or the veracity, in
employee's right to due process against the power of the peso of particular, of the cause that has been invoked in order to justify that
employers. termination. In assailing the dismissal or lay-off, an employee is entitled to
be heard and to be given the corresponding due notice of the
proceedings. It would be when this right is withheld without cogent
To an employee, a job is everything. Its loss involves terrible reasons that, indeed, it can rightly be claimed that the fundamental
repercussions stoppage of the schooling of children, ejectment from demands of procedural due process have been unduly discarded.
leased premises, hunger to the family, a life without any safety net.
Indeed, to many employees, dismissal is their lethal injection. Mere
payment of money by way of separation pay and backwages will not I do appreciate the fact that the prescribed notices can have
secure food on the mouths of employees who do not even have the right consequential benefits to an employee who is dismissed or laid off, as the
to choose what they will chew. case may be; its non-observance by an employer, therefore, can verily
entitle the employee to an award of damage but, to repeat, not to the
extent of rendering outrightly illegal that dismissal or lay-off predicated on
I vote to grant the petition. valid grounds. I would consider the indemnification to the employee not a
penalty or a fine against the employer, the levy of either of which would
require an appropriate legislative enactment; rather, I take the grant of
indemnity as justifiable as an award of nominal damages in accordance strained employer-employee relationship (limited to managerial
with the provisions of Articles 2221-2223 of the Civil Code, viz: positions and contracts of employment predicated on trust and
confidence) or when the work or position formerly held by the
dismissed employee plainly has since ceased to be available.
Art. 2221. Nominal damages are adjudicated in order that a
right of the plaintiff, which has been violated or invaded by the
defendant, may be vindicated or recognized, and not for the C. Where there is just cause or an authorized cause for the
purpose of indemnifying the plaintiff for any loss suffered by dismissal or lay-off but the required written notices therefor
him. have not been properly observed by an employer, it would
neither be light and justifiable nor likely intended by law to
order either the reinstatement of the dismissed or laid-off
Art. 2222. The court may award nominal damages in every
employee or the payment of back salaries to him simply for the
obligation arising from any source enumerated in article 1157,
lack of such notices if, and so long as, the employee is not
or in every case where any property right has been invaded.
deprived of an opportunity to contest that dismissal or lay-off
and to accordingly be heard thereon. In the termination of
Art. 2223. The adjudication of nominal damages shall preclude employment for an authorized cause (this cause being
further contest upon the right involved and all accessory attributable to the employer), the laid-off employee is statutorily
questions, as between the parties to the suit, or their respective entitled to separation pay, unlike a dismissal for a just cause (a
heirs and assigns. cause attributable to an employee) where no separation pay is
due. In either case, if an employer fails to comply with the
requirements of notice in terminating the services of the
There is no fixed formula for determining the precise amount of nominal employee, the employer must be made to pay, as so
damages. In fixing the amount of nominal damages to be awarded, the hereinabove expressed, corresponding damages to the
circumstances of each case should thus be taken into account, such as, employee.
to exemplify, the
WHEREFORE, I vote to hold (a) that the lay-off in the case at bar is due
(a) length of service or employment of the dismissed employee; to redundancy and that, accordingly, the separation pay to petitioner
should be increased to one month, instead of one-half month, pay for
(b) his salary or compensation at the time termination of every year of service, and (b) that petitioner is entitled to his unpaid
employment vis-a-vis the capability of the employer to pay; wages, proportionate 13th-month pay, and an indemnity of P10,000.00 in
keeping with the nature and purpose of, as well as the rationale behind,
the grant of nominal damages.
(c) question of whether the employer has deliberately violated
the requirements for termination of employment or has
attempted to comply, at least substantially, therewith; and/or
(d) reasons for the termination of employment. PANGANIBAN, J., separate opinion;
I might stress the rule that the award of nominal damages is not for the In the case before us, the Court is unanimous in at least two findings: (1)
purpose of indemnification for a loss but for the recognition and petitioner's dismissal was due to an authorized cause, redundancy; and
vindication of a right. The degree of recovery therefor can depend, on the (2) petitioner was notified of his dismissal only on the very day his
one hand, on the constitution of the right, and, upon the other hand, on employment was terminated. The contentious issue arising out of these
the extent and manner by which that right is ignored to the prejudice of two findings is as follows: What is the legal effect and the corresponding
the holder of that right. sanction for the failure of the employer to give the employee and the
Department of Labor and Employment (DOLE) the 30-day notice of
termination required under Article 283 of the Labor Code?
In fine7
During the last ten (10) years, the Court has answered the foregoing
A. A just cause or an authorized cause and a written notice of question by ruling that the dismissal should be upheld although the
dismissal or lay-off, as the case may be, are required employee should be given "indemnity or damages" ranging from P1,000
concurrently but not really equipollent in their consequence, in to P10,000 depending on the circumstances.
terminating an employer-employee relationship.
The present ponencia of Mr. Justice Mendoza holds that "the termination
B. Where there is neither just cause nor authorized cause, the of his employment should be considered ineffectual and the [employee]
reinstatement of the employee and the payment of back should be paid back wages" from the time of his dismissal until the Court
salaries would be proper and should be decreed. If the finds that the dismissal was for a just cause.
dismissal or lay-off is attended by bad faith or if the employer
acted in wanton or oppressive manner, moral and exemplary
damages might also be a warded. In this respect, the Civil Reexamination of the "Indemnity Only" Rule
Code provides:
I am grateful that the Court has decided to reexamine our ten-year
Art. 2220. Willful injury to property may be a legal doctrine on this question and has at least, in the process, increased the
ground for awarding moral damages if the court monetary award that should go to the dismissed employee from a
should find that, under the circumstances, such nominal sum in the concept "indemnity or damages" to "full back wages."
damages are just due. The same rule applies to Shortly after my assumption of office on October 10, 1995, I already
breaches of contract where the defendant acted questioned this practice of granting "indemnity only" to employees who
fraudulently or in bad faith. were dismissed for cause but without due process. 1 I formally registered
reservations on this rule in my ponencia in MGG Marine Services v.
NLRC2 and gave it full discussion in my Dissents in Better Buildings
Art. 2232. In contracts and quasi-contracts, the court v. NLRC3 and in Del Val v. NLRC.4
may award exemplary damages if the defendant
acted in a wanton, fraudulent, reckless, oppressive,
or malevolent manner (Civil Code). Without in any way diminishing my appreciation of this reexamination and
of the more financially-generous treatment the Court has accorded labor,
I write to take issue with the legal basis of my esteemed colleague, Mr.
Separation pay can substitute for reinstatement if such Justice Mendoza, in arriving at his legal conclusion that "the employer's
reinstatement is not feasible, such as in case of a clearly failure to comply with the notice requirement does not constitute a denial
of due process but a mere failure to observe a procedure for the jurisdiction (Aducayen vs. Flores, L-30370, [May 25, 1973] 51
termination of employment which makes the termination of employment SCRA 78; Shell Co. vs. Enage, L-30111-12, 49 SCRA 416
merely ineffectual." In short, he believes that (1) the 30-day notice [Feb. 27, 1973]). Any judgment or decision rendered
requirement finds basis only in the Labor Code, and (2) the sanction for notwithstanding such violation may be regarded as a "lawless
its violation is only "full back wages." thing, which can be treated as an outlaw and slain at sight, or
ignored wherever it exhibits its head" (Aducayen vs.
Flores, supra).
With due respect, I submit the following counter-arguments:
In the earlier case Bacus v. Ople,13 this Court also nullified the then labor
(1) The notice requirement finds basis not only in the Labor
minister's clearance to terminate the employment of company workers
Code but, more important, in the due process clause of the
who had supposedly staged an illegal strike. The reason for this ruling
Constitution.
was the denial of sufficient opportunity for them to present their evidence
and prove their case. The Court explained:14
(2) Consequently, when the employee is dismissed without due
process, the legal effect is an illegal dismissal and the
A mere finding of the illegality of a strike should not be
appropriate sanction is full back wages plus reinstatement, not
automatically followed by a wholesale dismissal of the strikers
merely full back wages. It is jurisprudentially settled, as I will
from their employment. What is more, the finding of the
show presently, that when procedural due process is violated,
illegality of the strike by respondent Minister of Labor and
the proceedings in this case, the dismissal will be voided,
Employment is predicated on the evidence ascertained through
and the parties will have to be returned to their status quo ante;
an irregular procedure conducted under the semblance of
that is, the employee will have to be given back his old job and
summary methods and speedy disposition of labor disputes
paid all benefits as if he were never dismissed.
involving striking employees.
Without Due Process, the Proceedings Are Illegal In Philippine National Bank v. Apalisok,15 Primitivo Virtudazo, an
employee of PNB, was served a Memorandum stating the finding against
him of a prima facie case for dishonesty and violation of bank rules and
In the past, this Court has untiringly reiterated that there are two essential regulations. He submitted his Answer denying the charges and explaining
requisites for an employer's valid termination of an employee's services: his defenses.
(1) a just5 or authorized6 cause and (2) due process. 7 During the last ten
years, the Court has been quite firm in this doctrinal concept, but it has
been less than consistent in declaring the illegality of a dismissal when Later, two personnel examiners of the bank conducted a fact-finding
due process has not been observed. This is particularly noticeable in the investigation. They stressed to him that a formal investigation would
relief granted. Where there has been no just or authorized cause, the follow, in which he could confront and examine the witnesses for the
employee is awarded reinstatement or separation pay, and back bank, as well as present his own. What followed, however, was a
wages.8 If only the second requisite (due process) has not been fulfilled, Memorandum notifying him that he had been found guilty of the charges
the employee, as earlier stated, is granted indemnity or damages and that he was being dismissed. After several futile attempts to secure a
amounting to a measly P1,000 up to P10,000.9 copy of the Decision rendered against him, he instituted against PNB a
Complaint for illegal dismissal and prayed for reinstatement and
damages.
I respectfully submit that illegal dismissal results not only from the
absence of a legal cause (enumerated in Arts. 282 to 284 of the Labor
Code), but likewise from the failure to observe due process. Indeed, The trial court held that Virtudazo had been deprived of his rights to be
many are the cases, labor or otherwise, in which acts violative of due formally investigated and to cross-examine the witnesses. This Court
process are unequivocally voided or declared illegal by the Supreme sustained the trial court, stating resolutely: "The proceedings having been
Court. In Pepsi-Cola Bottling Co. v. NLRC,10 the Court categorically ruled conducted without according to Virtudazo the "cardinal primary rights of
that the failure of management to comply with the requirements of due due process" guaranteed to every party in an administrative or quasi-
process made its judgment of dismissal "void and non-existent." judicial proceeding, said proceedings must be pronounced null and
void."16
This Court in People v. Bocar 11 emphatically made the following
pronouncement, which has been reiterated in several cases:12 Also in Fabella v. Court of Appeals,17 this Court declared the dismissal of
the schoolteachers illegal, because the administrative body that heard the
charges against them had not afforded them their right to procedural due
The cardinal precept is that where there is a violation of basis process. The proceedings were declared void, and the orders for their
constitutional rights, courts are ousted of their jurisdiction. Thus dismissal set aside. We unqualifiedly reinstated the schoolteachers, to
the violation of the State's right to due process raises a serious whom we awarded all monetary benefits that had accrued to them during
jurisdictional issue (Gumabon vs. Director of the Bureau of the period of their unjustified suspension or dismissal.
Prisons, L-30026, 37 SCRA 420 [Jan. 30, 1971]) which cannot
be glossed over or disregarded at will. Where the denial of the
fundamental right of due process is apparent, a decision
rendered in disregarded of the right is void for lack of
In People v. San Diego,18 People v. Sola,19 People v. Dactrdao,20 People trouble during office hours. In an altercation with a co-employee, he
v. Calo Jr.21 and People v. Burgos,22this Court similarly voided the trial "slapped [the latter's] cap, stepped on his foot and picked up the ice
court's grant of bail to the accused upon a finding that the prosecution scooper and brandished it against [him]." When summoned by the
had been deprived of procedural due process. assistant manager, the employee "shouted and uttered profane words"
instead of giving an explanation. He was caught virtually in flagrante
delicto in the presence of many people. Under the circumstances action
In People v. Sevilleno,23 the Court noted that the trial judge "hardly
was necessary to preserve order and discipline, as well as to safeguard
satisfied the requisite searching inquiry" due the accused when he
the customers' confidence in the employer's business a fastfood chain
pleaded guilty to the capital offense he had been charged with. We thus
catering to the general public where courtesy is a prized virtue.
concluded that "the accused was not properly accorded his fundamental
right to be informed of the precise nature of the accusation leveled
against him." Because of the nonobservance of "the fundamental However, in most of the succeeding cases, including the present one
requirements of fairness and due process," the appealed Decision was before us in which the petitioner was dismissed on the very day he was
annulled and set aside, and the case was remanded for the proper served notice, there were ample opportunities for the employers to
arraignment and trial of the accused. observe the requisites of due process. There were no exigencies that
called for immediate response. And yet, Wenphil was instantly invoked
and due process brushed aside.
Recently, the Court vacated its earlier Decision 24 in People v.
Parazo25 upon realizing that the accused "a deaf-mute, a mental
retardate, whose mental age [was] only seven (7) years and nine (9) I believe that the price that the Court has set for the infringement of the
months, and with low IQ of 60 only" had not been ably assisted by a fundamental right to due process is too insignificant, too niggardly, and
sign language expert during his arraignment and trial. Citing People sometimes even too late. I believe that imposing a stiffer sanction is the
v. Crisologo,26 we ruled that the accused had been deprived of "a full and only way to emphasize to employers the extreme importance of the right
fair trial and a reasonable opportunity to defend himself." He had in effect to due process in our democratic system. Such right is too sacred to be
been denied his fundamental right to due process of law. Hence, we set taken for granted or glossed over in a cavalier fashion. To hold otherwise,
aside the trial proceedings and granted the accused a re-arraignment and as by simply imposing an indemnity or even "full back wages," is to allow
a retrial. the rich and powerful to virtually purchase and to thereby stifle a
constitutional right granted to the poor and marginalized.
Of late, we also set aside a Comelec Resolution disallowing the use by a
candidate of a certain nickname for the purpose of her election It may be asked: If the employee is guilty anyway, what difference would
candidacy. The Resolution was issued pursuant to a letter-petition which it make if he is fired without due process? By the same token, it may be
was passed upon by the Comelec without affording the candidate the asked: If in the end, after due hearing, a criminal offender is found guilty
opportunity to explain her side and to counter the allegations in said anyway, what difference would it make if he is simply penalized
letter-petition. In invalidating the said Resolution, we again underscored immediately without the trouble and the expense of trial? The absurdity of
the necessity of the observance of the twin requirements of notice and this argument is too apparent to deserve further discourse.34
hearing before any decision can be validly rendered in a case.27
Worker's Right to Notice Is Constitutional, Not Merely Statutory
Clearly deducible from our extant jurisprudence is that the denial of a
person's fundamental right to due process amounts to the illegality of the
According to the ponencia of Mr. Justice Mendoza, the "violation of the
proceedings against him. Consequently, he is brought back to his status
notice requirement cannot be considered a denial of due process
quo ante, not merely awarded nominal damages or indemnity.
resulting in the nullity of the employee's dismissal or lay-off." He argues
that the due process clause of the Constitution may be used against the
Our labor force deserves no less. Indeed, the State recognizes it as its government only. Since the Labor Code does not accord employees the
primary social economic force,28 to which it is constitutionally mandated to right to a hearing, ergo, he concludes, they do not have the right to due
afford full protection.29 Yet, refusing to declare the illegality of dismissals process.
without due process, we have continued to impose upon the erring
employer the simplistic penalty of paying indemnity only. Hence, I submit
I disagree. True, as pointed out by Mr. Justice Mendoza, traditional
that it is time for us to denounce these dismissals as null and void and to
doctrine holds that constitutional rights may be invoked only against the
grant our workers these proper reliefs: (1) the declaration that the
State. This is because in the past, only the State was in a position to
termination or dismissal is illegal and unconstitutional and (2) the
violate these rights, including the due process clause. However, with the
reinstatement of the employee plus full back wages. The present ruling of
advent of liberalization, deregulation and privatization, the State tended to
the Court is manifestly inconsistent with existing prudence which holds
cede some of its powers to the "market forces." Hence, corporate
that proceedings held without notice and hearing are null and void, since
behemoths and even individuals may now be sources of abuses and
they amount to a violation of due process, and therefore bring back the
threats to human rights and liberties. I believe, therefore, that such
parties to the status quo ante.
traditional doctrine should be modified to enable the judiciary to cope with
these new paradigms and to continue protecting the people from new
Exception: When Due Process Is Impractical and Futile forms of abuses.34-a
I am fully aware that in a long line of cases starting with Wenphil Indeed the employee is entitled to due process not because of the Labor
v. NLRC,30 the Court has held: where there is just cause for the dismissal code, but because of the Constitution. Elementary is the doctrine that
of an employee but the employer fails to follow the requirements of constitutional provisions are deemed written into every statute, contract
procedural due process, the former is not entitled to back wages, or undertaking. Worth noting is that "[o]ne's employment, profession,
reinstatement (or separation pay in case reinstatement is no longer trade or calling is a property right within the protection of the
feasible) or other benefits. Instead, the employee is granted an indemnity constitutional guaranty of due process of law."35
(or penalty or damages) ranging from P1,00031 to as much as
P10,000,32 depending on the circumstances of the case and the gravity of
In a long line of cases involving judicial, quasi-judicial and administrative
the employer's omission. Since then, Wenphil has perfunctorily been
proceedings, some of which I summarized earlier, the Court has held that
applied in most subsequent cases33 involving a violation of due process
the twin requirements of notice and hearing (or, at the very least, an
(although just cause has been duly proven), without regard for the
opportunity to be heard) constitute the essential elements of due process.
peculiar factual milieu of each case. Indemnity or damages has become
In labor proceedings, both are the conditio sine qua non for a dismissal to
an easy substitute for due process.
be validly effected.36 The perceptive Justice Irene Cortes has aptly stated:
"One cannot go without the other, for otherwise the termination would, in
Be it remembered, however, that the facts in Wenphil clearly showed the the eyes of the law, be illegal."37
impracticality and the futility of observing the procedure laid down by law
and by the Constitution for terminating employment. The employee
Even the Labor Code Grants the Right to a Hearing
involved therein appeared to have exhibited a violent temper and caused
Besides, it is really inaccurate to say that the Labor Code grants "notice In the final analysis, what is involved here is not simply the amount of
alone" to employees being dismissed due to an authorized cause. Article monetary award, whether insignificant or substantial; whether termed
277 (b)38 of the said Code explicitly provides that the termination of indemnity, penalty or "full back wages." Neither is it merely a matter of
employment by the employer is "subject to the constitutional right of respect for workers' rights or adequate protection of labor. The bottom
workers to security of tenure[;] . . . without prejudice to the requirement of line is really the constitutionally granted right to due process. And due
notice under Article 283 of this Code, the employer shall furnish the process is the very essence of justice itself. Where the rule of law is the
worker whose employment is sought to be terminated a written notice bedrock of our free society, justice is its very lifeblood. Denial of due
containing a statement of the causes for termination and shall afford the process is thus no less than a denial of justice itself.
latter ample opportunity to be heard . . . ." Significantly, the provision
requires the employer "to afford [the employee] ample opportunity to be
In Addition to Reinstatement and Back Wages, Damages May Be
heard" when the termination is due to a "just and authorized cause." I
Awarded
submit that this provision on "ample opportunity to be heard" applies to
dismissals under Articles 282, 283 and 284 of the Labor Code.
One last point. Justice Vitug argues in his Separate Opinion that the
nonobservance of the prescribed notices "can verily entitle the employee
In addition, to say that the termination is "simply ineffectual" for failure to
to an award of damages but . . . not to the extent of rendering outrightly
comply with the 30-day written notice and, at the same time, to conclude
illegal that dismissal or lay-off . . . ." I, of course, disagree with him insofar
that it has "legal effect" appears to be contradictory. Ineffectual means
as he denies the illegality of the dismissal, because as I already
"having no legal force." 39 If a dismissal has no legal force or effect, the
explained, a termination without due process is unconstitutional and
consequence should be the reinstatement of the dismissed employee
illegal. But I do agree that, where the employee proves the presence of
and the grant of full back wages thereto, as provided by law not the
facts showing liability for damages (moral, exemplary, etc.) as provided
latter only. Limiting the consequence merely to the payment of full back
under the Civil Code, the employee could be entitled to such award in
wages has no legal or statutory basis. No provision in the Labor Code or
addition to reinstatement and back wages. For instance, where the illegal
any other law authorizes such limitation of sanction, which Mr. Justice
dismissal has caused the employee "physical suffering, mental anguish,
Mendoza advocates.
fright, serious anxiety, besmirched reputation, wounded feelings, moral
shock, social humiliation and similar injury" due to the bad faith of the
The majority contends that it is not fair to reinstate the employee, employer, an award for moral damages would be proper, in addition to
because the employer should not be forces to accommodate an reinstatement and back wages.
unwanted worker. I believe however that it is not the Court that forces the
employer to rehire the worker. By violating the latter's constitutional right
Summary
to due process, the former brings this sanction upon itself. Is it unfair to
imprison a criminal? No! By violating the law, one brings the penal
sanction upon oneself. There is nothing unfair or unusual about this To conclude, I believe that even if there may be a just or an authorized
inevitable chain of cause and effect, of crime and punishment, of violation cause for termination but due process is absent, the dismissal
and sanction. proceedings must be declared null and void. The dismissal should still be
branded as illegal. Consequently, the employee must be reinstated and
given full back wages.
Due Process Begins With Each of Us