CA reverses NLRC verdict

CEBU, Philippines - The Court of Appeals (CA) has overturned a National Labor Relations Commission (NLRC) decision dismissing a mechanical engineer of a power supply and distribution company.

In its July 25, 2013 decision, the CA 18th Division in Cebu City also ordered that Engr. Joselito Arenas be paid a separation pay equivalent to one month salary for every year of service instead of reinstatement due to strained relations of parties.

Associate Justices Pampio Abarintos, Gabriel Ingles and Marilyn Lagura-Yap signed the 18-page decision.

Arenas told The FREEMAN he has filed motion for clarificatory order following the decision.

He used to work as shift engineer from April 4, 1994 until his dismissal on September 2, 2010 of East Asia Utilities Corporation in Mactan Export Processing Zone I.

The company dismissed Arenas for alleged commission of fraud or willful breach of trust for the late reporting of a thief caught cutting a scrapped retainer ring on August 3, 2010.

It also suspended him for 15 days while the infraction was being investigated by the company’s Employee Behavior Action Review Panel, which recommended his dismissal.

This prompted Arenas to file a case for illegal dismissal and non-payment of salaries, 13th month pay and allowances, and retirement benefits before the Regional Arbitration Branch (RAB) No. VII. He also requested either reinstatement or the payment of separation pay, moral damages, exemplary damages, and attorney’s fees.

On December 15, 2010, Labor Arbiter Jose Gutierrez ordered Arenas’ reinstatement without loss of seniority rights and other privileges and for the company to pay him P336,128.  Arenas, though, was penalized with a one-month suspension.

Both he and the company appealed the RAB decision. Arenas argued that Gutierrez committed an error in favoring his suspension, failed to appreciate the evidence showing that his dismissal was tainted with malice and bad faith, and that his other claims were not awarded.

The company, on the other hand, said the arbitrator did not consider that the primary ground for dismissal was loss of trust and confidence.

On May 31, 2011, the NLRC overturned the RAB decision, declared the validity of the dismissal from service, and set that there is no more basis for the grant of reinstatement or separation pay and Arenas’ other claims.

That prompted Arenas to elevate the matter to the CA. (FREEMAN)