Jenny Agabon et al vs National Labor Relations Commission

G.R. No. 158693 – 485 Phil. 248 – Labor Law – Labor Relations – Termination of Employment – Just Causes – Abandonment of Work – Agabon Doctrine

Post-Employment – Twin Notice Rule

Political Law – Constitutional Law – Bill of Rights – Constitutional Due Process vs Statutory Due Process

Spouses Jenny and Virgilio Agabon work as gypsum board and cornice installers for Riviera Home Improvements, Inc. They were negotiating for a salary increase but RHI was not giving any. In 1999, RHI directed the spouses to install cornice in a project at the Pacific Plaza Towers but the spouses failed to comply. When they were called by RHI, the spouses advised them that they were working on another project from another company.

RHI did not give any further projects to the spouses. Thereafter, the spouses sued RHI for illegal dismissal.

The Labor Arbiter ruled in favor of the spouses. The NLRC reversed the ruling of the LA. The CA affirmed the ruling of the NLRC.

ISSUE: Whether or not the spouses were illegally dismissed.

HELD: No. The findings of the NLRC that the spouses abandoned their work is proven by the fact that they worked on another project while employed by RHI. Such act is an indication of their intent to sever their employee-employer relationship with RHI. Abandonment of work is one of the just causes for an employer to terminate the services of an employee.

Social justice is only for the deserving. Abandonment of work is a grave offense and may be a ground for a valid dismissal.

Nevertheless, due process must be observed by an employer in firing an employee.

Under the Omnibus Rules Implementing the Labor Code, the procedure to be observed in firing an employee on just causes is as follows:

(a) A written notice served on the employee specifying the ground or grounds for termination, and giving to said employee reasonable opportunity within which to explain his [or her] side;

(b) A hearing or conference during which the employee concerned, with the assistance of counsel if the employee so desires, is given opportunity to respond to the charge, present his evidence or rebut the evidence presented against him [or her]; and

(c) A written notice of termination served on the employee indicating that upon due consideration of all the circumstances, grounds have been established to justify his [or her] termination.

This is the twin-notice rule. This was not observed by RHI as they simply stopped giving projects to the Agabon spouses without giving them any notice nor any opportunity to be heard.

Statutory due process, just like constitutional due process, has two aspects: substantive and procedural. In this case, the substantive aspect is the pertinent labor law which provided for the just causes of termination of employment. The procedural aspect is the twin-notice rule. Both must concur.

An employer who may have a just cause to fire an employee may still be penalized for violating the procedural rights of the employee. The SC ruled that an employer who failed to comply with the twin-notice rule in firing an employee for just causes is liable to pay the employee Php30, in damages.

In this case, the SC also differentiated constitutional due process from statutory due process: Constitutional due process protects the individual from the government and assures him / her of his / her rights in criminal, civil or administrative proceedings; while statutory due process found in the Labor Code and Implementing Rules protects employees from being unjustly terminated without just cause after notice and hearing.

Separate Opinion of Justice Tinga: The Bill of Rights affords protection against possible State oppression against its citizens, but not against an unjust or repressive conduct by a private party towards another.

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