Friday, September 16, 2016

JGB & ASSOCIATES INC. vs. NLRC


This is such a lovely evening. Just listening to Bossa Nova sittin' on a Lazy Boy drinking cold shaked MP Combat.

And what a wonderful night of class lecture with Judge Villarosa in my Labor Review. The insights were relevant and worth pondering and note-taking, and the humor was fantastic. I think there's nothing more apt or appropriate but to post another labor case that coincides with the Judge's lecture. Good evening guys :)

This is one beautiful case decided by the 5th Division of the NLRC when it reversed the POEA decision on a complaint filed by herein private respondent, an OFW with a 2 year contract to work as a draftsman in Saudi Arabia.

Facts of the case states that private respondent Arturo Arrojado was hired by petitioner JGB and Associates, Inc. for its principal, Tariq Hajj Architects, to work as draftsman in Saudi Arabia.  The contract of employment was for two years with a monthly salary of US$500.00 

TERMINATED

Barely 10 months in the job before the expiration of his contract of employment, Arrejado was given notice by his employer that his employment was terminated for the reason that his performance both in productivity and efficiency was below average.  The termination of his employment took effect on the same day.  

So the guy was immediately scheduled to depart Saudi Arabia three days after his dismissal. Of course unexpectedly the poor guy found himself already back in the Philippines. Like “Damn it what happened?”

POEA COMPLAINT

So barely after 2 weeks of soul searching and introspection (haha I just added that sorry) private respondent filed with the POEA a complaint against JGB and Associates, Inc. and Tariq Hajj Architects alleging illegal dismissal and seeking payment of salaries corresponding to the unexpired portion of his employment contract, salary differential, refund of S.R. 1,000 which was withheld from him for telephone bills, moral damages and attorney’s fees. (‘attaboy!)

ARROJADO ALLEGED

Private respondent alleged in his complaint that he did his job conscientiously and that HE WAS EVEN ASKED TO MAKE SCALE MODELS, IN ADDITION TO HIS REGULAR DUTIES.  He claimed that he was never reprimanded nor informed of his alleged negligence and incompetence either by his immediate supervisor or by his employer.  He also complained that he was denied due process because his dismissal took effect on the same day he was given notice and claimed that, because he was immediately repatriated, he had no opportunity to challenge his arbitrary dismissal.  

Also private respondent admitted that he signed a waiver of claims but alleged that he did so under compulsion and that, in any event, he was not precluded from questioning the legality of his dismissal and from recovering monetary claims due him.

JGB INC. AVERRED

On the other hand, petitioner averred that private respondent was DISMISSED FOR NEGLECT OF DUTIES AND PERFORMANCE BELOW PAR.  Petitioner also alleged that although no prior notice of dismissal was given to private respondent, he was given in lieu thereof a “notice pay” equivalent to one month salary.  

Petitioner denied liability for salary differential on the ground that the employment contract stipulated that his monthly salary was US$500.00.  Petitioner invoked a quitclaim signed by private respondent as evidence that he had been paid all the monetary claims due him.

POEA DISMISSED ARROJADO COMPLAINT

The POEA dismissed private respondent’s complaint for illegal dismissal but ordered respondents to pay complainant jointly and severally the peso equivalent at the time of actual payment the amount of SR1,000 representing the refund of the telephone bills deducted from the latter. All other claims are dismissed for lack of merit.

NLRC APPEAL – REVERSED POEA DESCISION

Now here’s where the events turn..

Private respondent ARREJADO appealed to the NLRC, which found private respondent’s dismissal illegal and so the assailed POEA decision was SET-ASIDE hence, ordering respondents JGB INC. Et al. to pay complainant jointly and severally the peso equivalent at the time of payment US$7,875.00 representing the unexpired portion of the contract. US$225.00 representing salary differential for nine (9) months, and S.R. 1,000.00 representing refund for telephone bill.

There you go.. that’s what I’m sayin’.. huh? Ofcourse JGB petitioned the high court for certiorari but let’s see what happened?

JGB PETITION FOR CERTIORARI

Hence this petition. Petitioner alleges that the NLRC committed grave abuse of discretion.

ISSUE:

Did it? Did the 5th Division of the NLRC at that time gravely abused its discretion in reversing the decision of the POEA and ruling that private respondent was illegally dismissed?

RULING:

Here’s the court ruling..

NO. (aw!)

Court finds that JGB failed to prove that the NLRC committed grave abuse of discretion in holding that ARREJADO was illegally dismissed.  

BURDEN OF PROOF

You see the court said..

IN TERMINATION CASES, THE BURDEN OF PROVING JUST CAUSE FOR DISMISSAL IS ON THE EMPLOYER. 

Here’s the deciding factor in the POEA Decision why they came up with such decision, let’s take a look…

In this case, the grounds for the dismissal of ARREJADO were stated in two documents presented by JGB INC. et al. before the POEA: 

(1) the notice of termination given to private respondent and 
(2) the letter of the principal, Tariq Hajj addressed to the agent JGB Inc.

In the termination letter, the foreign employer stated that private respondent’s performance was below average.  The foreign employer stated in another succeeding letter that:

“ever since the early days of Mr. Arrojado with us, we were not fully satisfied with his performance and our expectations from him were much higher than we saw him actually producing. Nevertheless  to be very fare with Mr. Arrojado we gave him a lot of time to develop and to get acquainted with our work, system, environment and standards.  

However and for more than eight (8) months he spent with us, we have not witnessed any development in skills or abilities.  Moreover, we noticed a very evident neglect by Mr. Arrojado of the duties assigned to him. This combined with a very thorough evaluation of his performance which resulted from his continuous and repeated neglect throughout the period he spent with us, our decision was very natural.  We felt that Mr. Arrojado was causing our firm tangible financial lose and considerable technical difficulties due to his incompetent performance.”

Here’s a portion of the stipulated contract between the parties provided in pertinent part:

“D. Termination by Employer.  An Employer may terminate the contract of employment for any of the following causes:

       xxx                                  xxx                                  xxx

(c)     Gross and habitual neglect by the employee of his duties
(d)     Fraud or willful neglect by the employee of his duties”

Court stated..

1. Gross negligence connotes want of care in the performance of one’s duties. 
2. Habitual neglect implies repeated failure to perform one’s duties for a period of time, depending upon the circumstances.  
3. On the other hand, fraud and willful neglect of duties imply bad faith on the part of the employee in failing to perform his job to the detriment of the employer and the latter’s business.

Now here’s the court's findings..

None of these causes is stated in the two letters of the employer as reasons for dismissing private respondent.  None of the reasons there stated even approximates any of the causes provided in the contract of employment for the termination of employment by the employer.

Indeed, the grounds given for private respondent’s dismissal are NOTHING BUT GENERAL, VAGUE AND AMORPHOUS ALLEGATIONS.  

As the NLRC noted, the letters do not state PARTICULAR ACTS which show that private respondent was indeed negligent and that his performance was below par.  Nor did petitioner show the tangible financial loss which it claimed it suffered as a result of private respondent’s alleged neglect of duty.

IT IS NOTEWORTHY THAT WHEN PRIVATE RESPONDENT WAS GIVEN NOTICE OF THE TERMINATION OF HIS EMPLOYMENT, HE HAD ALREADY SERVED HIS EMPLOYER FOR NEARLY TEN MONTHS.  The letter of termination, expressed disappointment that despite the length of time he had been with the company he had not shown any “development in skills or abilities.” It may be assumed, however, that before private respondent was employed, he was tested for his skill and his ability.  WHY PETITIONER SUFFERED HIM SO LONG IN ITS EMPLOY IF HE DID NOT COME UP TO ITS EXPECTATIONS HAS NOT BEEN EXPLAINED.  

Onga naman, dapat fina-5 months nya nalang.. parang dito.. 5 months after work you’re drifting.. “eeeeeeeeeekkkkk!!!! broom!! broom!” And then the government announces ‘This administration have provided jobs.. blah! blah!”    

Here’s what irked the court..

On the other hand, what is clear from the record is that PETITIONER MADE PRIVATE RESPONDENT WORK ON SCALE MODELS, in addition to the latter’s regular work.  If private respondent’s performance was below average, it is difficult to understand why he should be given additional task to perform.

I vaguely understand what scale models are.. I should’ve been an architect but that didn’t happen so I really do not know if this requires excellent or above par design skills..but by the manner that the private respondent alleged this in his complaint and by the court’s judgment alone making due notice.. it must have been a task with considerable skills not to mention the amount of added work.. so..

Court said..

Indeed, the burden of proving JUST CAUSE for terminating an employee-employer relationship is on the employer.  THE EMPLOYEE HAS NO DUTY TO PROVE HIS COMPETENCE IN ORDER TO PROVE THE ILLEGALITY OF HIS DISMISSAL.  As the NLRC rightly held:

This is beautiful.. here’s that NLRC decision..

“What is worse, a finding was made that complainant has the burden of proving that he was not incompetent or inefficient.  This is a serious error and contrary to the well-settled rule that in termination cases it is the employer who has the burden of proof that the dismissal is for a just and valid cause.  Failure to do so would necessarily mean that the dismissal is illegal (PolymedicGeneral Hospital v. NLRC, 134 SCRA 420). 

Hence, there is no valid basis for the Administrator to conclude that there was a semblance of truth to the charges of incompetence or unsatisfactory performance when the complainant failed to rebut the same.  Thus, in the absence of any other evidence submitted by respondents to substantiate the general charges hurled against complainant, the documents, which comprise respondent’s evidence in chief, contain empty and self-serving statements insufficient to establish just and valid cause for the dismissal of complainant (Royal Crown International v. NLRC, 178 SCRA 569).  

For to allow an employer to terminate the employment of his worker merely based on pure allegations and generalities will place the latter on a dangerous situation as he will be at the sole mercy of the former and therefore, the right to security of tenure which were bound to protect will be unduly emasculated.”  Tsk tsk tsk… beautiful.. 

REGARDING QUITCLAIMS 

Court said..

Nor is the quitclaim signed by private respondent a bar to the filing of the complaint.  We have already held in a number of cases that a deed of release or quitclaim can not bar an employee from demanding what is legally due him.  

Oh yan ah.. malinaw yan ah.. (quitclaim kayo ng quitclaim.. that’s a court ruling and is now being applied in this case)

The reason for this is that the employee does not really stand on an equal footing with his employer.  In some cases he may be so penurious that he is willing to bargain even rights secured to him by law.  
And the poor guy was in a foreign country with no one to help him so the more the quitclaim ruling should be applied..

Listen to what the court said.. it’s beautiful.. (dang! I always say 'beautiful')

There is good reason for applying this ruling here because private respondent was made to sign the deed of quitclaim in this case on the same day he was dismissed.  He was in a foreign country and he had no one to help him. In three days he was due for repatriation to the Philippines.  He had no means of questioning his employer’s acts.  He had no choice but to accept what was being offered to him.  NECESSITOUS MEN ARE NOT FREE MEN.

Contemplate on the last previous sentence..

DUE PROCESS

Furthermore, as the NLRC noted, the fact that private respondent had to be granted by the POEA salary differential for nine months and ordered reimbursed in the amount of 1,000 Saudi Riyal belies the claim that private respondent had been paid everything legally due to him.

In the case at bar, private respondent was not only dismissed without cause but his dismissal was made without due process.  He was informed of the reason for his dismissal only at the time his employment was terminated.  Giving him “notice pay” equivalent to his one month salary in lieu of the notice in the contract of employment could not take the place of notice before dismissal as required by law.  The notice required is not a mere technicality but a requirement of due process to which every employee is entitled to insure that the employer’s prerogative to dismiss is not exercised in an arbitrary manner. 

As the employment contract in the case at bar is for a definite period, private respondent is entitled to the payment of his salaries corresponding to the unexpired portion of his contract.  The NLRC, therefore, correctly awarded private respondent the amount which is equivalent to the unexpired portion of his contract.  The “notice pay” given to private respondent should be deemed as indemnity for his dismissal without due process. 

The OFW Arrojado wins this case.  I think it was Justices Regalado, Romero and Puno who decided on this case. 

As I have said.. it’s a beautiful case where an administrative body in the person of the NLRC of which herein attached to the DOLE, spearheaded a concluding rightful decision concurred by I think a three man division of the Supreme Court.