EN BANC

JENNY M. AGABON and VIRGILIO C. AGABON, Petitioners, G.R. No. 158693 Present: Davide, Jr., C.J., Puno, Panganiban, Quisumbing, nares!"antiago, "andova#!Gutierre$, %ar&io, 'ustria!(artine$, %orona, %ar&io!(ora#es, %a##e)o, "r., '$*una, +inga, %,i*o!Na$ario, and Gar*ia, JJ.

! versus !

NATIONAL LABOR RELATIONS COMMISSION (NLRC), RIVIERA HOME IMPROVEMENTS, INC. Promu#gated: and VICENTE ANGELES, Res&ondents. November 1-, .//0 x ---------------------------------------------------------------------------------------- x

DECISION
YNARES-SANTIAGO, J.:
+,is &etition 1or revie2 see3s to reverse t,e de*ision 415 o1 t,e %ourt o1 '&&ea#s dated Januar6 .3, .//3, in %'!G.R. "P No. 63/1-, modi16ing t,e de*ision o1 Nationa# 7abor Re#ations %ommission 8N7R%9 in N7R%!N%R %ase No. /.300.!//.

Private res&ondent Riviera :ome ;m&rovements, ;n*. is engaged in t,e business o1 se##ing and insta##ing ornamenta# and *onstru*tion materia#s. ;t em&#o6ed &etitioners <irgi#io 'gabon and Jenn6 'gabon as g6&sum board and *orni*e insta##ers on Januar6 ., 199.4.5 unti# =ebruar6 .3, 1999 2,en t,e6 2ere dismissed 1or abandonment o1 2or3. Petitioners t,en 1i#ed a *om&#aint 1or i##ega# dismissa# and &a6ment o1 mone6 *#aims435 and on De*ember .8, 1999, t,e 7abor 'rbiter rendered a de*ision de*#aring t,e dismissa#s i##ega# and ordered &rivate res&ondent to &a6 t,e monetar6 *#aims. +,e dis&ositive &ortion o1 t,e de*ision states:
>:?R?=@R?, &remises *onsidered, >e 1ind t,e termination o1 t,e *om&#ainants i##ega#. '**ording#6, res&ondent is ,ereb6 ordered to &a6 t,em t,eir ba*32ages u& to November .9, 1999 in t,e sum o1: 1. .. Jenn6 (. 'gabon <irgi#io %. 'gabon ! ! P56, .31.93 56, .31.93

and, in #ieu o1 reinstatement to &a6 t,em t,eir se&aration &a6 o1 one 819 mont, 1or ever6 6ear o1 servi*e 1rom date o1 ,iring u& to November .9, 1999. Res&ondent is 1urt,er ordered to &a6 t,e *om&#ainants t,eir ,o#ida6 &a6 and servi*e in*entive #eave &a6 1or t,e 6ears 1996, 199- and 1998 as 2e## as t,eir &remium &a6 1or ,o#ida6s and rest da6s and <irgi#io 'gabonAs 13 t, mont, &a6 di11erentia# amounting to +>@ +:@B"'ND @N? :BNDR?D =;=+ 8P.,15/.//9 Pesos, or t,e aggregate amount o1 @N? :BNDR?D +>?N+ @N? +:@B"'ND ";C :BNDR?D "?<?N+ ?;G:+ D 93E1// 8P1.1,6-8.939 Pesos 1or Jenn6 'gabon, and @N? :BNDR?D +>?N+ +:R?? +:@B"'ND ?;G:+ :BNDR?D +>?N+ ?;G:+ D 93E1// 8P1.3,8.8.939 Pesos 1or <irgi#io 'gabon, as &er atta*,ed *om&utation o1 Ju#ieta %. Ni*o#as, @;%, Resear*, and %om&utation Bnit, N%R. "@ @RD?R?D.405

@n a&&ea#, t,e N7R% reversed t,e 7abor 'rbiter be*ause it 1ound t,at t,e &etitioners ,ad abandoned t,eir 2or3, and 2ere not entit#ed to ba*32ages and se&aration &a6. +,e ot,er mone6 *#aims a2arded b6 t,e 7abor 'rbiter 2ere a#so denied 1or #a*3 o1 eviden*e.455 B&on denia# o1 t,eir motion 1or re*onsideration, &etitioners 1i#ed a &etition 1or *ertiorari 2it, t,e %ourt o1 '&&ea#s.

+,e %ourt o1 '&&ea#s in turn ru#ed t,at t,e dismissa# o1 t,e &etitioners 2as not i##ega# be*ause t,e6 ,ad abandoned t,eir em&#o6ment but ordered t,e &a6ment o1 mone6 *#aims. +,e dis&ositive &ortion o1 t,e de*ision reads:
>:?R?=@R?, t,e de*ision o1 t,e Nationa# 7abor Re#ations %ommission is R?<?R"?D on#6 inso1ar as it dismissed &etitionerAs mone6 *#aims. Private res&ondents are ordered to &a6 &etitioners ,o#ida6 &a6 1or 1our 809 regu#ar ,o#ida6s in 1996, 199-, and 1998, as 2e## as t,eir servi*e in*entive #eave &a6 1or said 6ears, and to &a6 t,e ba#an*e o1 &etitioner <irgi#io 'gabonAs 13 t, mont, &a6 1or 1998 in t,e amount o1 P.,15/.//. "@ @RD?R?D.465

:en*e, t,is &etition 1or revie2 on t,e so#e issue o1 2,et,er &etitioners 2ere i##ega##6 dismissed.4-5 Petitioners assert t,at t,e6 2ere dismissed be*ause t,e &rivate res&ondent re1used to give t,em assignments un#ess t,e6 agreed to 2or3 on a pakyaw basis 2,en t,e6 re&orted 1or dut6 on =ebruar6 .3, 1999. +,e6 did not agree on t,is arrangement be*ause it 2ou#d mean #osing bene1its as "o*ia# "e*urit6 "6stem 8"""9 members. Petitioners a#so *#aim t,at &rivate res&ondent did not *om&#6 2it, t,e t2in reFuirements o1 noti*e and ,earing.485 Private res&ondent, on t,e ot,er ,and, maintained t,at &etitioners 2ere not dismissed but ,ad abandoned t,eir 2or3.495 ;n 1a*t, &rivate res&ondent sent t2o #etters to t,e #ast 3no2n addresses o1 t,e &etitioners advising t,em to re&ort 1or 2or3. Private res&ondentAs manager even ta#3ed to &etitioner <irgi#io 'gabon b6 te#e&,one sometime in June 1999 to te## ,im about t,e ne2 assignment at Pa*i1i* P#a$a +o2ers invo#ving 0/,/// sFuare meters o1 *orni*e insta##ation 2or3. :o2ever, &etitioners did not re&ort 1or 2or3 be*ause t,e6 ,ad sub*ontra*ted to &er1orm insta##ation 2or3 1or anot,er *om&an6. Petitioners a#so demanded 1or an in*rease in t,eir 2age to P.8/.// &er da6. >,en t,is 2as not granted, &etitioners sto&&ed re&orting 1or 2or3 and 1i#ed t,e i##ega# dismissa# *ase.41/5 ;t is 2e##!sett#ed t,at 1indings o1 1a*t o1 Fuasi!)udi*ia# agen*ies #i3e t,e N7R% are a**orded not on#6 res&e*t but even 1ina#it6 i1 t,e 1indings are su&&orted

b6 substantia# eviden*e. +,is is es&e*ia##6 so 2,en su*, 1indings 2ere a11irmed b6 t,e %ourt o1 '&&ea#s.4115 :o2ever, i1 t,e 1a*tua# 1indings o1 t,e N7R% and t,e 7abor 'rbiter are *on1#i*ting, as in t,is *ase, t,e revie2ing *ourt ma6 de#ve into t,e re*ords and eGamine 1or itse#1 t,e Fuestioned 1indings.41.5 '**ording#6, t,e %ourt o1 '&&ea#s, a1ter a *are1u# revie2 o1 t,e 1a*ts, ru#ed t,at &etitionersA dismissa# 2as 1or a )ust *ause. +,e6 ,ad abandoned t,eir em&#o6ment and 2ere a#read6 2or3ing 1or anot,er em&#o6er. +o dismiss an em&#o6ee, t,e #a2 reFuires not on#6 t,e eGisten*e o1 a )ust and va#id *ause but a#so en)oins t,e em&#o6er to give t,e em&#o6ee t,e o&&ortunit6 to be ,eard and to de1end ,imse#1.4135 'rti*#e .8. o1 t,e 7abor %ode enumerates t,e )ust *auses 1or termination b6 t,e em&#o6er: 8a9 serious mis*ondu*t or 2i##1u# disobedien*e b6 t,e em&#o6ee o1 t,e #a21u# orders o1 ,is em&#o6er or t,e #atterAs re&resentative in *onne*tion 2it, t,e em&#o6eeAs 2or3H 8b9 gross and ,abitua# neg#e*t b6 t,e em&#o6ee o1 ,is dutiesH 8*9 1raud or 2i##1u# brea*, b6 t,e em&#o6ee o1 t,e trust re&osed in ,im b6 ,is em&#o6er or ,is du#6 aut,ori$ed re&resentativeH 8d9 *ommission o1 a *rime or o11ense b6 t,e em&#o6ee against t,e &erson o1 ,is em&#o6er or an6 immediate member o1 ,is 1ami#6 or ,is du#6 aut,ori$ed re&resentativeH and 8e9 ot,er *auses ana#ogous to t,e 1oregoing. 'bandonment is t,e de#iberate and un)usti1ied re1usa# o1 an em&#o6ee to resume ,is em&#o6ment.4105 ;t is a 1orm o1 neg#e*t o1 dut6, ,en*e, a )ust *ause 1or termination o1 em&#o6ment b6 t,e em&#o6er.4155 =or a va#id 1inding o1 abandonment, t,ese t2o 1a*tors s,ou#d be &resent: 819 t,e 1ai#ure to re&ort 1or 2or3 or absen*e 2it,out va#id or )usti1iab#e reasonH and 8.9 a *#ear intention to sever em&#o6er!em&#o6ee re#ations,i&, 2it, t,e se*ond as t,e more determinative 1a*tor 2,i*, is mani1ested b6 overt a*ts 1rom 2,i*, it ma6 be dedu*ed t,at t,e em&#o6ees ,as no more intention to 2or3. +,e intent to dis*ontinue t,e em&#o6ment must be s,o2n b6 *#ear &roo1 t,at it 2as de#iberate and un)usti1ied.4165 ;n =ebruar6 1999, &etitioners 2ere 1reFuent#6 absent ,aving sub*ontra*ted 1or an insta##ation 2or3 1or anot,er *om&an6. "ub*ontra*ting 1or anot,er *om&an6 *#ear#6 s,o2ed t,e intention to sever t,e em&#o6er!em&#o6ee re#ations,i& 2it, &rivate res&ondent. +,is 2as not t,e 1irst time t,e6 did t,is. ;n Januar6 1996, t,e6 did not re&ort 1or 2or3 be*ause t,e6 2ere 2or3ing 1or anot,er *om&an6. Private

res&ondent at t,at time 2arned &etitioners t,at t,e6 2ou#d be dismissed i1 t,is ,a&&ened again. Petitioners disregarded t,e 2arning and eG,ibited a *#ear intention to sever t,eir em&#o6er!em&#o6ee re#ations,i&. +,e re*ord o1 an em&#o6ee is a re#evant *onsideration in determining t,e &ena#t6 t,at s,ou#d be meted out to ,im.41-5 ;n Sandoval Shipyard v. Clave,4185 2e ,e#d t,at an em&#o6ee 2,o de#iberate#6 absented 1rom 2or3 2it,out #eave or &ermission 1rom ,is em&#o6er, 1or t,e &ur&ose o1 #oo3ing 1or a )ob e#se2,ere, is *onsidered to ,ave abandoned ,is )ob. >e s,ou#d a&&#6 t,at ru#e 2it, more reason ,ere 2,ere &etitioners 2ere absent be*ause t,e6 2ere a#read6 2or3ing in anot,er *om&an6. +,e #a2 im&oses man6 ob#igations on t,e em&#o6er su*, as &roviding )ust *om&ensation to 2or3ers, observan*e o1 t,e &ro*edura# reFuirements o1 noti*e and ,earing in t,e termination o1 em&#o6ment. @n t,e ot,er ,and, t,e #a2 a#so re*ogni$es t,e rig,t o1 t,e em&#o6er to eG&e*t 1rom its 2or3ers not on#6 good &er1orman*e, adeFuate 2or3 and di#igen*e, but a#so good *ondu*t 4195and #o6a#t6. +,e em&#o6er ma6 not be *om&e##ed to *ontinue to em&#o6 su*, &ersons 2,ose *ontinuan*e in t,e servi*e 2i## &atent#6 be inimi*a# to ,is interests.4./5 '1ter estab#is,ing t,at t,e terminations 2ere 1or a )ust and va#id *ause, 2e no2 determine i1 t,e &ro*edures 1or dismissa# 2ere observed. +,e &ro*edure 1or terminating an em&#o6ee is 1ound in Ioo3 <;, Ru#e ;, "e*tion .8d9 o1 t,e Omnibus Rules Implementing the Labor Code:
Standards o due pro!ess" re#uirements o noti!e. J ;n a## *ases o1 termination o1 em&#o6ment, t,e 1o##o2ing standards o1 due &ro*ess s,a## be substantia##6 observed: ;. =or termination o1 em&#o6ment based on )ust *auses as de1ined in 'rti*#e .8. o1 t,e %ode: 8a9 ' 2ritten noti*e served on t,e em&#o6ee s&e*i16ing t,e ground or grounds 1or termination, and giving to said em&#o6ee reasonab#e o&&ortunit6 2it,in 2,i*, to eG&#ain ,is sideH 8b9 ' ,earing or *on1eren*e during 2,i*, t,e em&#o6ee *on*erned, 2it, t,e assistan*e o1 *ounse# i1 t,e em&#o6ee so desires, is given o&&ortunit6 to

res&ond to t,e *,arge, &resent ,is eviden*e or rebut t,e eviden*e &resented against ,imH and 8*9 ' 2ritten noti*e o1 termination served on t,e em&#o6ee indi*ating t,at u&on due *onsideration o1 a## t,e *ir*umstan*es, grounds ,ave been estab#is,ed to )usti16 ,is termination. ;n *ase o1 termination, t,e 1oregoing noti*es s,a## be served on t,e em&#o6eeAs #ast 3no2n address.

Dismissa#s based on )ust *auses *ontem&#ate a*ts or omissions attributab#e to t,e em&#o6ee 2,i#e dismissa#s based on aut,ori$ed *auses invo#ve grounds under t,e 7abor %ode 2,i*, a##o2 t,e em&#o6er to terminate em&#o6ees. ' termination 1or an aut,ori$ed *ause reFuires &a6ment o1 se&aration &a6. >,en t,e termination o1 em&#o6ment is de*#ared i##ega#, reinstatement and 1u## ba*32ages are mandated under 'rti*#e .-9. ;1 reinstatement is no #onger &ossib#e 2,ere t,e dismissa# 2as un)ust, se&aration &a6 ma6 be granted. Pro*edura##6, 819 i1 t,e dismissa# is based on a )ust *ause under 'rti*#e .8., t,e em&#o6er must give t,e em&#o6ee t2o 2ritten noti*es and a ,earing or o&&ortunit6 to be ,eard i1 reFuested b6 t,e em&#o6ee be1ore terminating t,e em&#o6ment: a noti*e s&e*i16ing t,e grounds 1or 2,i*, dismissa# is soug,t a ,earing or an o&&ortunit6 to be ,eard and a1ter ,earing or o&&ortunit6 to be ,eard, a noti*e o1 t,e de*ision to dismissH and 8.9 i1 t,e dismissa# is based on aut,ori$ed *auses under 'rti*#es .83 and .80, t,e em&#o6er must give t,e em&#o6ee and t,e De&artment o1 7abor and ?m&#o6ment 2ritten noti*es 3/ da6s &rior to t,e e11e*tivit6 o1 ,is se&aration. =rom t,e 1oregoing ru#es 1our &ossib#e situations ma6 be derived: 819 t,e dismissa# is 1or a )ust *ause under 'rti*#e .8. o1 t,e 7abor %ode, 1or an aut,ori$ed *ause under 'rti*#e .83, or 1or ,ea#t, reasons under 'rti*#e .80, and due &ro*ess 2as observedH 8.9 t,e dismissa# is 2it,out )ust or aut,ori$ed *ause but due &ro*ess 2as observedH 839 t,e dismissa# is 2it,out )ust or aut,ori$ed *ause and t,ere 2as no due &ro*essH and 809 t,e dismissa# is 1or )ust or aut,ori$ed *ause but due &ro*ess 2as not observed. ;n t,e 1irst situation, t,e dismissa# is undoubted#6 va#id and t,e em&#o6er 2i## not su11er an6 #iabi#it6.

;n t,e se*ond and t,ird situations 2,ere t,e dismissa#s are i##ega#, 'rti*#e .-9 mandates t,at t,e em&#o6ee is entit#ed to reinstatement 2it,out #oss o1 seniorit6 rig,ts and ot,er &rivi#eges and 1u## ba*32ages, in*#usive o1 a##o2an*es, and ot,er bene1its or t,eir monetar6 eFuiva#ent *om&uted 1rom t,e time t,e *om&ensation 2as not &aid u& to t,e time o1 a*tua# reinstatement. ;n t,e 1ourt, situation, t,e dismissa# s,ou#d be u&,e#d. >,i#e t,e &ro*edura# in1irmit6 *annot be *ured, it s,ou#d not inva#idate t,e dismissa#. :o2ever, t,e em&#o6er s,ou#d be ,e#d liable or non$!omplian!e with the pro!edural re#uirements o due pro!ess. +,e &resent *ase sFuare#6 1a##s under t,e 1ourt, situation. +,e dismissa# s,ou#d be u&,e#d be*ause it 2as estab#is,ed t,at t,e &etitioners abandoned t,eir )obs to 2or3 1or anot,er *om&an6. Private res&ondent, ,o2ever, did not 1o##o2 t,e noti*e reFuirements and instead argued t,at sending noti*es to t,e #ast 3no2n addresses 2ou#d ,ave been use#ess be*ause t,e6 did not reside t,ere an6more. Bn1ortunate#6 1or t,e &rivate res&ondent, t,is is not a va#id eG*use be*ause t,e #a2 mandates t,e t2in noti*e reFuirements to t,e em&#o6eeAs #ast 3no2n address. 4.15 +,us, it s,ou#d be ,e#d liable or non$!omplian!e with the pro!edural re#uirements o due pro!ess. ' revie2 and re!eGamination o1 t,e re#evant #ega# &rin*i&#es is a&&ro&riate and time#6 to *#ari16 t,e various ru#ings on em&#o6ment termination in t,e #ig,t o1 Serrano v. %ational Labor Relations Commission.4..5 Prior to 1989, t,e ru#e 2as t,at a dismissa# or termination is i##ega# i1 t,e em&#o6ee 2as not given an6 noti*e. ;n t,e 1989 *ase o1 &enphil Corp. v. %ational Labor Relations Commission,4.35 2e reversed t,is #ong!standing ru#e and ,e#d t,at t,e dismissed em&#o6ee, a#t,oug, not given an6 noti*e and ,earing, 2as not entit#ed to reinstatement and ba*32ages be*ause t,e dismissa# 2as 1or grave mis*ondu*t and insubordination, a )ust ground 1or termination under 'rti*#e .8.. +,e em&#o6ee ,ad a vio#ent tem&er and *aused troub#e during o11i*e ,ours, de16ing su&eriors 2,o tried to &a*i16 ,im. >e *on*#uded t,at reinstating t,e em&#o6ee and a2arding ba*32ages Kma6 en*ourage ,im to do even 2orse and 2i## render a

mo*3er6 o1 t,e ru#es o1 dis*i&#ine t,at em&#o6ees are reFuired to observe.L 4.05 >e 1urt,er ,e#d t,at:
Bnder t,e *ir*umstan*es, t,e dismissa# o1 t,e &rivate res&ondent 1or )ust *ause s,ou#d be maintained. :e ,as no rig,t to return to ,is 1ormer em&#o6ment. :o2ever, t,e &etitioner must nevert,e#ess be ,e#d to a**ount 1or 1ai#ure to eGtend to &rivate res&ondent ,is rig,t to an investigation be1ore *ausing ,is dismissa#. +,e ru#e is eG&#i*it as above dis*ussed. +,e dismissa# o1 an em&#o6ee must be or 'ust or authori(ed !ause and a ter due pro!ess . Petitioner *ommitted an in1ra*tion o1 t,e se*ond reFuirement. +,us, it must be im&osed a san*tion 1or its 1ai#ure to give a 1orma# noti*e and *ondu*t an investigation as reFuired b6 #a2 be1ore dismissing &etitioner 1rom em&#o6ment. %onsidering t,e *ir*umstan*es o1 t,is *ase &etitioner must indemni16 t,e &rivate res&ondent t,e amount o1 P1,///.//. +,e measure o1 t,is a2ard de&ends on t,e 1a*ts o1 ea*, *ase and t,e gravit6 o1 t,e omission *ommitted b6 t,e em&#o6er.4.55

+,e ru#e t,us evo#ved: 2,ere t,e em&#o6er ,ad a va#id reason to dismiss an em&#o6ee but did not 1o##o2 t,e due &ro*ess reFuirement, t,e dismissa# ma6 be u&,e#d but t,e em&#o6er 2i## be &ena#i$ed to &a6 an indemnit6 to t,e em&#o6ee. +,is be*ame 3no2n as t,e &enphil or Ie#ated Due Pro*ess Ru#e. @n Januar6 .-, .///, in Serrano, t,e ru#e on t,e eGtent o1 t,e san*tion 2as *,anged. >e ,e#d t,at t,e vio#ation b6 t,e em&#o6er o1 t,e noti*e reFuirement in termination 1or )ust or aut,ori$ed *auses 2as not a denia# o1 due &ro*ess t,at 2i## nu##i16 t,e termination. :o2ever, t,e dismissa# is ine11e*tua# and t,e em&#o6er must &a6 1u## ba*32ages 1rom t,e time o1 termination unti# it is )udi*ia##6 de*#ared t,at t,e dismissa# 2as 1or a )ust or aut,ori$ed *ause. +,e rationa#e 1or t,e re!eGamination o1 t,e &enphil do*trine in Serrano 2as t,e signi1i*ant number o1 *ases invo#ving dismissa#s 2it,out reFuisite noti*es. >e *on*#uded t,at t,e im&osition o1 &ena#t6 b6 2a6 o1 damages 1or vio#ation o1 t,e noti*e reFuirement 2as not serving as a deterrent. :en*e, 2e no2 reFuired &a6ment o1 1u## ba*32ages 1rom t,e time o1 dismissa# unti# t,e time t,e %ourt 1inds t,e dismissa# 2as 1or a )ust or aut,ori$ed *ause. Serrano 2as *on1ronting t,e &ra*ti*e o1 em&#o6ers to Kdismiss no2 and &a6 #aterL b6 im&osing 1u## ba*32ages. >e be#ieve, ,o2ever, t,at t,e ru#ing in Serrano did not *onsider t,e 1u## meaning o1 'rti*#e .-9 o1 t,e 7abor %ode 2,i*, states:

'R+. .-9. "e*urit6 o1 +enure. J ;n *ases o1 regu#ar em&#o6ment, t,e em&#o6er s,a## not terminate t,e servi*es o1 an em&#o6ee eG*e&t 1or a )ust *ause or 2,en aut,ori$ed b6 t,is +it#e. 'n em&#o6ee 2,o is un)ust#6 dismissed 1rom 2or3 s,a## be entit#ed to reinstatement 2it,out #oss o1 seniorit6 rig,ts and ot,er &rivi#eges and to ,is 1u## ba*32ages, in*#usive o1 a##o2an*es, and to ,is ot,er bene1its or t,eir monetar6 eFuiva#ent *om&uted 1rom t,e time ,is *om&ensation 2as 2it,,e#d 1rom ,im u& to t,e time o1 ,is a*tua# reinstatement.

+,is means t,at t,e termination is i##ega# on#6 i1 it is not 1or an6 o1 t,e )usti1ied or aut,ori$ed *auses &rovided b6 #a2. Pa6ment o1 ba*32ages and ot,er bene1its, in*#uding reinstatement, is )usti1ied on#6 i1 t,e em&#o6ee 2as un)ust#6 dismissed. +,e 1a*t t,at t,e Serrano ru#ing *an *ause un1airness and in)usti*e 2,i*, e#i*ited strong dissent ,as &rom&ted us to revisit t,e do*trine. +o be sure, t,e Due Pro*ess %#ause in 'rti*#e ;;;, "e*tion 1 o1 t,e %onstitution embodies a s6stem o1 rig,ts based on mora# &rin*i&#es so dee&#6 imbedded in t,e traditions and 1ee#ings o1 our &eo&#e as to be deemed 1undamenta# to a *ivi#i$ed so*iet6 as *on*eived b6 our entire ,istor6. Due &ro*ess is t,at 2,i*, *om&orts 2it, t,e dee&est notions o1 2,at is 1air and rig,t and )ust. 4.65 ;t is a *onstitutiona# restraint on t,e #egis#ative as 2e## as on t,e eGe*utive and )udi*ia# &o2ers o1 t,e government &rovided b6 t,e Ii## o1 Rig,ts. Due &ro*ess under t,e 7abor %ode, #i3e Constitutional due pro!ess) ,as t2o as&e*ts: substantive, i.e., t,e va#id and aut,ori$ed *auses o1 em&#o6ment termination under t,e 7abor %odeH and &ro*edura#, i.e., t,e manner o1 dismissa#. Pro*edura# due &ro*ess reFuirements 1or dismissa# are 1ound in t,e ;m&#ementing Ru#es o1 P.D. 00., as amended, ot,er2ise 3no2n as t,e 7abor %ode o1 t,e P,i#i&&ines in Ioo3 <;, Ru#e ;, "e*. ., as amended b6 De&artment @rder Nos. 9 and 1/.4.-5 Irea*,es o1 t,ese due pro!ess reFuirements vio#ate t,e 7abor %ode. +,ere1ore statutory due pro!ess s,ou#d be di11erentiated 1rom 1ai#ure to *om&#6 2it, !onstitutional due pro!ess. Constitutional due pro!ess &rote*ts t,e individua# 1rom t,e government and assures ,im o1 ,is rig,ts in *rimina#, *ivi# or administrative &ro*eedingsH

2,i#e statutory due pro!ess 1ound in t,e 7abor %ode and ;m&#ementing Ru#es &rote*ts em&#o6ees 1rom being un)ust#6 terminated 2it,out )ust *ause a1ter noti*e and ,earing. ;n Sebuguero v. %ational Labor Relations Commission ,4.85 t,e dismissa# 2as 1or a )ust and va#id *ause but t,e em&#o6ee 2as not a**orded due &ro*ess. +,e dismissa# 2as u&,e#d b6 t,e %ourt but t,e em&#o6er 2as san*tioned. +,e san*tion s,ou#d be in t,e nature o1 indemni1i*ation or &ena#t6, and de&ends on t,e 1a*ts o1 ea*, *ase and t,e gravit6 o1 t,e omission *ommitted b6 t,e em&#o6er. ;n %ath v. %ational Labor Relations Commission ,4.95 it 2as ru#ed t,at even i1 t,e em&#o6ee 2as not given due &ro*ess, t,e 1ai#ure did not o&erate to eradi*ate t,e )ust *auses 1or dismissa#. +,e dismissa# being 1or )ust *ause, albeit 2it,out due &ro*ess, did not entit#e t,e em&#o6ee to reinstatement, ba*32ages, damages and attorne6As 1ees. (r. Justi*e Jose %. <itug, in ,is se&arate o&inion in *++ *arine Servi!es) In!. v. %ational Labor Relations Commission ,43/5 2,i*, o&inion ,e reiterated in Serrano, stated:
%. >,ere t,ere is )ust *ause 1or dismissa# but due &ro*ess ,as not been &ro&er#6 observed b6 an em&#o6er, it 2ou#d not be rig,t to order eit,er t,e reinstatement o1 t,e dismissed em&#o6ee or t,e &a6ment o1 ba*32ages to ,im. ;n 1ai#ing, ,o2ever, to *om&#6 2it, t,e &ro*edure &res*ribed b6 #a2 in terminating t,e servi*es o1 t,e em&#o6ee, t,e em&#o6er must be deemed to ,ave o&ted or, in an6 *ase, s,ou#d be made #iab#e, 1or t,e &a6ment o1 se&aration &a6. ;t mig,t be &ointed out t,at t,e noti*e to be given and t,e ,earing to be *ondu*ted genera##6 *onstitute t,e t2o!&art due &ro*ess reFuirement o1 #a2 to be a**orded to t,e em&#o6ee b6 t,e em&#o6er. Nevert,e#ess, &e*u#iar *ir*umstan*es mig,t obtain in *ertain situations 2,ere to underta3e t,e above ste&s 2ou#d be no more t,an a use#ess 1orma#it6 and 2,ere, a**ording#6, it 2ou#d not be im&rudent to a&&#6 t,e res ipsa lo#uitur ru#e and a2ard, in #ieu o1 se&aration &a6, nomina# damages to t,e em&#o6ee. G G G.4315

'1ter *are1u##6 ana#6$ing t,e *onseFuen*es o1 t,e divergent do*trines in t,e #a2 on em&#o6ment termination, 2e be#ieve t,at in *ases invo#ving dismissa#s 1or *ause but 2it,out observan*e o1 t,e t2in reFuirements o1 noti*e and ,earing, t,e better ru#e is to abandon t,e Serrano do*trine and to 1o##o2 &enphil b6 ,o#ding t,at t,e dismissa# 2as 1or )ust *ause but im&osing san*tions on t,e em&#o6er. "u*, san*tions, ,o2ever, must be sti11er t,an t,at im&osed in &enphil. I6 doing so, t,is %ourt 2ou#d be ab#e to a*,ieve a 1air resu#t b6 dis&ensing )usti*e not )ust to em&#o6ees, but to em&#o6ers as 2e##.

+,e un1airness o1 de*#aring i##ega# or ine11e*tua# dismissa#s 1or va#id or aut,ori$ed *auses but not *om&#6ing 2it, statutor6 due &ro*ess ma6 ,ave 1ar! rea*,ing *onseFuen*es. +,is 2ou#d en*ourage 1rivo#ous suits, 2,ere even t,e most notorious vio#ators o1 *om&an6 &o#i*6 are re2arded b6 invo3ing due &ro*ess. +,is a#so *reates absurd situations 2,ere t,ere is a )ust or aut,ori$ed *ause 1or dismissa# but a &ro*edura# in1irmit6 inva#idates t,e termination. 7et us ta3e 1or eGam&#e a *ase 2,ere t,e em&#o6ee is *aug,t stea#ing or t,reatens t,e #ives o1 ,is *o!em&#o6ees or ,as be*ome a *rimina#, 2,o ,as 1#ed and *annot be 1ound, or 2,ere serious business #osses demand t,at o&erations be *eased in #ess t,an a mont,. ;nva#idating t,e dismissa# 2ou#d not serve &ub#i* interest. ;t *ou#d a#so dis*ourage investments t,at *an generate em&#o6ment in t,e #o*a# e*onom6. +,e *onstitutiona# &o#i*6 to &rovide 1u## &rote*tion to #abor is not meant to be a s2ord to o&&ress em&#o6ers. +,e *ommitment o1 t,is %ourt to t,e *ause o1 #abor does not &revent us 1rom sustaining t,e em&#o6er 2,en it is in t,e rig,t, as in t,is *ase.43.5 %ertain#6, an em&#o6er s,ou#d not be *om&e##ed to &a6 em&#o6ees 1or 2or3 not a*tua##6 &er1ormed and in 1a*t abandoned. +,e em&#o6er s,ou#d not be *om&e##ed to *ontinue em&#o6ing a &erson 2,o is admitted#6 gui#t6 o1 mis1easan*e or ma#1easan*e and 2,ose *ontinued em&#o6ment is &atent#6 inimi*a# to t,e em&#o6er. +,e #a2 &rote*ting t,e rig,ts o1 t,e #aborer aut,ori$es neit,er o&&ression nor se#1!destru*tion o1 t,e em&#o6er.4335 ;t must be stressed t,at in t,e &resent *ase, t,e &etitioners *ommitted a grave o11ense, i.e., abandonment, 2,i*,, i1 t,e reFuirements o1 due &ro*ess 2ere *om&#ied 2it,, 2ou#d undoubted#6 resu#t in a va#id dismissa#. 'n em&#o6ee 2,o is *#ear#6 gui#t6 o1 *ondu*t vio#ative o1 'rti*#e .8. s,ou#d not be &rote*ted b6 t,e "o*ia# Justi*e %#ause o1 t,e %onstitution. "o*ia# )usti*e, as t,e term suggests, s,ou#d be used on#6 to *orre*t an in)usti*e. 's t,e eminent Justi*e Jose P. 7aure# observed, so*ia# )usti*e must be 1ounded on t,e rec !n"#" n $ #%e nece&&"#' $ "n#erde(endence a) n! d"*er&e +n"#& $ a & c"e#' and $ #%e (r #ec#" n #%a# &% +,d -e e.+a,,' and e*en,' ex#ended # a,, !r +(& a& a c )-"ned $ rce "n +r & c"a, and ec n )"c ,"$e , *onsistent 2it, t,e 1undamenta# and &aramount ob)e*tive o1 t,e state o1 &romoting t,e ,ea#t,, *om1ort, and Fuiet o1 a## &ersons, and o1 bringing about Kt,e greatest good to t,e greatest number.L4305

T%"& "& n # # &a' #%a# #%e C +r# /a& /r n! /%en "# r+,ed #%e /a' "# d"d "n Wenphil, Serrano and re,a#ed ca&e&. S c"a, 0+&#"ce "& n # -a&ed n r"!"d $ r)+,a& &e# "n &# ne. I# %a& # a,, / $ r c%an!"n! #")e& and c"rc+)&#ance&. Justi*e ;sagani %ru$ strong#6 asserts t,e need to a&&#6 a ba#an*ed a&&roa*, to #abor!management re#ations and dis&ense )usti*e 2it, an even ,and in ever6 *ase:
>e ,ave re&eated#6 stressed t,at so*ia# )usti*e J or an6 )usti*e 1or t,at matter J is 1or t,e deserving, 2,et,er ,e be a mi##ionaire in ,is mansion or a &au&er in ,is ,ove#. ;t is true t,at, in *ase o1 reasonab#e doubt, 2e are to ti#t t,e ba#an*e in 1avor o1 t,e &oor to 2,om t,e %onstitution 1itting#6 eGtends its s6m&at,6 and *om&assion. Iut never is it )usti1ied to give &re1eren*e to t,e &oor sim&#6 be*ause t,e6 are &oor, or re)e*t t,e ri*, sim&#6 be*ause t,e6 are ri*,, 1or )usti*e must a#2a6s be served 1or t,e &oor and t,e ri*, a#i3e, a**ording to t,e mandate o1 t,e #a2.4355

Justi*e in ever6 *ase s,ou#d on#6 be 1or t,e deserving &art6. ;t s,ou#d not be &resumed t,at ever6 *ase o1 i##ega# dismissa# 2ou#d automati*a##6 be de*ided in 1avor o1 #abor, as management ,as rig,ts t,at s,ou#d be 1u##6 res&e*ted and en1or*ed b6 t,is %ourt. 's interde&endent and indis&ensab#e &artners in nation! bui#ding, #abor and management need ea*, ot,er to 1oster &rodu*tivit6 and e*onomi* gro2t,H ,en*e, t,e need to 2eig, and ba#an*e t,e rig,ts and 2e#1are o1 bot, t,e em&#o6ee and em&#o6er. >,ere t,e dismissa# is 1or a )ust *ause, as in t,e instant *ase, t,e #a*3 o1 statutor6 due &ro*ess s,ou#d not nu##i16 t,e dismissa#, or render it i##ega#, or ine11e*tua#. :o2ever, t,e em&#o6er s,ou#d indemni16 t,e em&#o6ee 1or t,e vio#ation o1 ,is statutor6 rig,ts, as ru#ed in Reta v. %ational Labor Relations Commission.4365 +,e indemnit6 to be im&osed s,ou#d be sti11er to dis*ourage t,e ab,orrent &ra*ti*e o1 Kdismiss no2, &a6 #ater,L 2,i*, 2e soug,t to deter in t,e Serrano ru#ing. +,e san*tion s,ou#d be in t,e nature o1 indemni1i*ation or &ena#t6 and s,ou#d de&end on t,e 1a*ts o1 ea*, *ase, ta3ing into s&e*ia# *onsideration t,e gravit6 o1 t,e due &ro*ess vio#ation o1 t,e em&#o6er.

Bnder t,e %ivi# %ode, nomina# damages is ad)udi*ated in order t,at a rig,t o1 t,e &#ainti11, 2,i*, ,as been vio#ated or invaded b6 t,e de1endant, ma6 be vindi*ated or re*ogni$ed, and not 1or t,e &ur&ose o1 indemni16ing t,e &#ainti11 1or an6 #oss su11ered b6 ,im.43-5 's enun*iated b6 t,is %ourt in ,iernes v. %ational Labor Relations Commissions,4385 an em&#o6er is #iab#e to &a6 indemnit6 in t,e 1orm o1 nomina# damages to an em&#o6ee 2,o ,as been dismissed i1, in e11e*ting su*, dismissa#, t,e em&#o6er 1ai#s to *om&#6 2it, t,e reFuirements o1 due &ro*ess. +,e %ourt, a1ter *onsidering t,e *ir*umstan*es t,erein, 1iGed t,e indemnit6 at P.,59/.5/, 2,i*, 2as eFuiva#ent to t,e em&#o6eeAs one mont, sa#ar6. +,is indemnit6 is intended not to &ena#i$e t,e em&#o6er but to vindi*ate or re*ogni$e t,e em&#o6eeAs rig,t to statutor6 due &ro*ess 2,i*, 2as vio#ated b6 t,e em&#o6er.4395 +,e vio#ation o1 t,e &etitionersA rig,t to statutor6 due &ro*ess b6 t,e &rivate res&ondent 2arrants t,e &a6ment o1 indemnit6 in t,e 1orm o1 nomina# damages. +,e amount o1 su*, damages is addressed to t,e sound dis*retion o1 t,e *ourt, ta3ing into a**ount t,e re#evant *ir*umstan*es.40/5 C n&"der"n! #%e (re*a","n! c"rc+)&#ance& "n #%e ca&e a# -ar, /e dee) "# (r (er # $"x "# a# P12,222.22. >e be#ieve t,is 1orm o1 damages 2ou#d serve to deter em&#o6ers 1rom 1uture vio#ations o1 t,e statutor6 due &ro*ess rig,ts o1 em&#o6ees. 't t,e ver6 #east, it &rovides a vindi*ation or re*ognition o1 t,is 1undamenta# rig,t granted to t,e #atter under t,e 7abor %ode and its ;m&#ementing Ru#es. Private res&ondent *#aims t,at t,e %ourt o1 '&&ea#s erred in ,o#ding t,at it 1ai#ed to &a6 &etitionersA ,o#ida6 &a6, servi*e in*entive #eave &a6 and 13t, mont, &a6. >e are not &ersuaded. >e a11irm t,e ru#ing o1 t,e a&&e##ate *ourt on &etitionersA mone6 *#aims. Private res&ondent is #iab#e 1or &etitionersA ,o#ida6 &a6, servi*e in*entive #eave &a6 and 13t, mont, &a6 2it,out dedu*tions. 's a genera# ru#e, one 2,o &#eads &a6ment ,as t,e burden o1 &roving it. ?ven 2,ere t,e em&#o6ee must a##ege non!&a6ment, t,e genera# ru#e is t,at t,e burden rests on t,e em&#o6er to &rove &a6ment, rat,er t,an on t,e em&#o6ee to &rove non!&a6ment. +,e reason 1or t,e ru#e is t,at t,e &ertinent &ersonne# 1i#es, &a6ro##s, re*ords, remittan*es and ot,er simi#ar do*uments J 2,i*, 2i## s,o2 t,at overtime, di11erentia#s, servi*e in*entive #eave and ot,er *#aims o1 2or3ers ,ave

been &aid J are not in t,e &ossession o1 t,e 2or3er but in t,e *ustod6 and abso#ute *ontro# o1 t,e em&#o6er.4015 ;n t,e *ase at bar, i1 &rivate res&ondent indeed &aid &etitionersA ,o#ida6 &a6 and servi*e in*entive #eave &a6, it *ou#d ,ave easi#6 &resented do*umentar6 &roo1s o1 su*, monetar6 bene1its to dis&rove t,e *#aims o1 t,e &etitioners. Iut it did not, eG*e&t 2it, res&e*t to t,e 13t, mont, &a6 2,erein it &resented *as, vou*,ers s,o2ing &a6ments o1 t,e bene1it in t,e 6ears dis&uted. 40.5 '##egations b6 &rivate res&ondent t,at it does not o&erate during ,o#ida6s and t,at it a##o2s its em&#o6ees 1/ da6s #eave 2it, &a6, ot,er t,an being se#1!serving, do not *onstitute &roo1 o1 &a6ment. %onseFuent#6, it 1ai#ed to dis*,arge t,e onus probandi t,ereb6 ma3ing it #iab#e 1or su*, *#aims to t,e &etitioners. 'nent t,e dedu*tion o1 """ #oan and t,e va#ue o1 t,e s,oes 1rom &etitioner <irgi#io 'gabonAs 13t, mont, &a6, 2e 1ind t,e same to be unaut,ori$ed. +,e evident intention o1 Presidentia# De*ree No. 851 is to grant an additional in!ome in t,e 1orm o1 t,e 13t, mont, &a6 to em&#o6ees not a#read6 re*eiving t,e same 4035 so as Kto urther prote!t the level o real wages rom the ravages o world$wide in lation.L4005 %#ear#6, as additiona# in*ome, t,e 13 t, mont, &a6 is in*#uded in t,e de1inition o1 2age under 'rti*#e 9-819 o1 t,e 7abor %ode, to 2it:
819 K>ageL &aid to an6 em&#o6ee s,a## mean t,e remuneration or earnings, ,o2ever designated, *a&ab#e o1 being eG&ressed in terms o1 mone6 2,et,er 1iGed or as*ertained on a time, tas3, &ie*e , or *ommission basis, or ot,er met,od o1 *a#*u#ating t,e same, 2,i*, is &a6ab#e b6 an em&#o6er to an em&#o6ee under a 2ritten or un2ritten *ontra*t o1 em&#o6ment 1or 2or3 done or to be done, or 1or servi*es rendered or to be rendered and in*#udes t,e 1air and reasonab#e va#ue, as determined b6 t,e "e*retar6 o1 7abor, o1 board, #odging, or ot,er 1a*i#ities *ustomari#6 1urnis,ed b6 t,e em&#o6er to t,e em&#o6eeML

1rom 2,i*, an em&#o6er is &ro,ibited under 'rti*#e 113 4055 o1 t,e same %ode 1rom ma3ing an6 dedu*tions 2it,out t,e em&#o6eeAs 3no2#edge and *onsent. ;n t,e instant *ase, &rivate res&ondent 1ai#ed to s,o2 t,at t,e dedu*tion o1 t,e """ #oan and t,e va#ue o1 t,e s,oes 1rom &etitioner <irgi#io 'gabonAs 13 t, mont, &a6 2as aut,ori$ed b6 t,e #atter. +,e #a*3 o1 aut,orit6 to dedu*t is 1urt,er bo#stered b6 t,e 1a*t t,at &etitioner <irgi#io 'gabon in*#uded t,e same as one o1 ,is mone6 *#aims against &rivate res&ondent. +,e %ourt o1 '&&ea#s &ro&er#6 reinstated t,e monetar6 *#aims a2arded b6 t,e 7abor 'rbiter ordering t,e &rivate res&ondent to &a6 ea*, o1 t,e &etitioners ,o#ida6 &a6 1or 1our regu#ar ,o#ida6s 1rom 1996 to 1998, in t,e amount o1

P6,5././/, servi*e in*entive #eave &a6 1or t,e same &eriod in t,e amount o1 P3,.55.// and t,e ba#an*e o1 <irgi#io 'gabonAs t,irteent, mont, &a6 1or 1998 in t,e amount o1 P.,15/.//. 3HERE4ORE, in vie2 o1 t,e 1oregoing, t,e &etition is 5ENIE5. +,e de*ision o1 t,e %ourt o1 '&&ea#s dated Januar6 .3, .//3, in %'!G.R. "P No. 63/1-, 1inding t,at &etitionersA Jenn6 and <irgi#io 'gabon abandoned t,eir 2or3, and ordering &rivate res&ondent to &a6 ea*, o1 t,e &etitioners ,o#ida6 &a6 1or 1our regu#ar ,o#ida6s 1rom 1996 to 1998, in t,e amount o1 P6,5././/, servi*e in*entive #eave &a6 1or t,e same &eriod in t,e amount o1 P3,.55.// and t,e ba#an*e o1 <irgi#io 'gabonAs t,irteent, mont, &a6 1or 1998 in t,e amount o1 P.,15/.// is A44IRME5 2it, t,eMO5I4ICATION t,at &rivate res&ondent Riviera :ome ;m&rovements, ;n*. is 1urt,er OR5ERE5 to &a6 ea*, o1 t,e &etitioners t,e amount o1 P3/,///.// as nomina# damages 1or non!*om&#ian*e 2it, statutor6 due &ro*ess. No *osts. SO OR5ERE5. CONS6ELO YNARES-SANTIAGO 'sso*iate Justi*e 3E CONC6R:

HILARIO G. 5AVI5E, JR. %,ie1 Justi*e

REYNATO S. P6NO 'sso*iate Justi*e

ARTEMIO V. PANGANIBAN 'sso*iate Justi*e

LEONAR5O A. 76IS6MBING 'sso*iate Justi*e

ANGELINA SAN5OVAL-G6TIERRE8 'sso*iate Justi*e

ANTONIO T. CARPIO 'sso*iate Justi*e

MA. ALICIA A6STRIA-MARTINE8 'sso*iate Justi*e

RENATO C. CORONA 'sso*iate Justi*e

CONCHITA CARPIO-MORALES 'sso*iate Justi*e

ROMEO J. CALLEJO, SR. 'sso*iate Justi*e

A5OL4O S. A8C6NA 'sso*iate Justi*e

5ANTE O. TINGA 'sso*iate Justi*e

MINITA V. CHICO-NA8ARIO 'sso*iate Justi*e

CANCIO C. GARCIA 'sso*iate Justi*e

CERTIFICATION
Pursuant to "e*tion 13, 'rti*#e <;;; o1 t,e %onstitution, it is ,ereb6 *erti1ied t,at t,e *on*#usions in t,e above De*ision 2ere rea*,ed in *onsu#tation be1ore t,e *ase 2as assigned to t,e 2riter o1 t,e o&inion o1 t,e %ourt. HILARIO G. 5AVI5E, JR. %,ie1 Justi*e

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Penned b6 'sso*iate Justi*e (arina 7. Iu$on and *on*urred in b6 'sso*iate Justi*es Jose1ina Guevara!"a#onga and Dani#o I. Pine. 4.5 Ro##o, &. 01. 435 Id., &&. 13!10. 405 Id., &. 9.. 455 Id., &. 131. 465 Id., &. 1-3. 4-5 Id., &. ./. 485 Id., &&. .1!.3. 495 Id., &. 05. 41/5 Id., &&. 0.!03. 4115 Rosario v. <i*tor6 Ri*emi##, G.R. No. 10-5-., 19 =ebruar6 .//3, 39- "%R' -6/, -6-. 41.5 Re6es v. (aGimAs +ea :ouse, G.R. No. 10/853, .- =ebruar6 .//3, 398 "%R' .88, .98. 4135 "antos v. "an (igue# %or&oration, G.R. No. 109016, 10 (ar*, .//3, 399 "%R' 1-., 18.. 4105 %o#umbus P,i#i&&ine Ius %or&oration v. N7R%, 01- P,i#. 81, 1// 8.//19. 4155 De Pau#ENing P,i#i& %ustoms +ai#or v. N7R%, 360 P,i#. 91, 1/. 819999. 4165 "ta. %ata#ina %o##ege v. N7R%, G.R. No. 100083, 19 November .//3. 41-5 %osmos Iott#ing %or&oration v. N7R%, G.R. No. 111155, .3 @*tober 199-, .81 "%R' 106, 153!150. 4185 G.R. No. 7!098-5, .1 November 19-9, 90 "%R' 0-., 0-8. 4195 Jud6 P,i#i&&ines, ;n*. v. N7R%, 35. P,i#. 593, 6/6 819989. 4./5 P,i#i&&ine!"inga&ore +rans&ort "ervi*es, ;n*. v. N7R%, 303 P,i#. .80, .91 8199-9. 4.15 "ee "to#t!Nie#sen (arine "ervi*es, ;n*. v. N7R%, G.R. No. 1.8395, .9 De*ember 1998, 3// "%R' -13, -./. 4..5 G.R. No. 11-/0/, .- Januar6 .///, 3.3 "%R' 005. 4.35 G.R. No. 8/58-, 8 =ebruar6 1989, 1-/ "%R' 69. 4.05 Id. at -6. 4.55 Id. 4.65 "o#esbee v. Ia#3*om, 339 B.". 9, 16 8195/9 8=ran31urter, J., dissenting9. Due &ro*ess is vio#ated i1 a &ra*ti*e or ru#e Ko11ends some &rin*i&#e o1 )usti*e so rooted in t,e traditions and *ons*ien*e o1 our &eo&#e as to be ran3ed as 1undamenta#HL "n6der v. (assa*,usetts, .91 B.". 9-, 1/5 819309. 4.-5 De&artment @rder No. 9 too3 e11e*t on .1 June 199-. De&artment @rder No. 1/ too3 e11e*t on .. June 199-. 4.85 G.R. No. 115390, .- "e&tember 1995, .08 "%R' 535. 4.95 G.R. No. 1..666, 19 June 199-, .-0 "%R' 386. 43/5 G.R. No. 110313, .9 Ju#6 1996, .59 "%R' 699, -//. 4315 "errano, supra, <itug, J., "e&arate 8%on*urring and Dissenting9 @&inion, 3.3 "%R' 5.0, 5.9!53/ 8.///9. 43.5 %a&i#i v. N7R%, G.R. No. 11-3-8, .6 (ar*, 199-, .-/ "%R' 088, 095. 4335 =i#i&ro, ;n*. v. N7R%, G.R. No. 7!-/506, 16 @*tober 1986, 105 "%R' 1.3. 4305 %a#a#ang v. >i##iams, -/ P,i#. -.6, -35 8190/9. 4355 Ge#os v. %ourt o1 '&&ea#s, G.R. No. 86186, 8 (a6 199., ./8 "%R' 6/8, 616. 4365 G.R. No. 11.1//, .- (a6 1990, .3. "%R' 613, 618. 43-5 'rt. ...1, %ivi# %ode.

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G.R. No. 1/80/5. '&ri# 0, .//3 !iting N2i32a6 ?ngineering >or3s v. N7R%, G.R. No. 85/10, .. (ar*, 1991, 195 "%R' 5.6, 53.H 'ure#io v. N7R%, G.R. No. 99/30, 1. '&ri# 1993, ..1 "%R' 03., 003H and "am&aguita Garments %or&oration v. N7R%, G.R. No. 1/.0/6, 1June 1990, .33 "%R' .6/, .65. 4395 Id. !iting Ietter Iui#dings, ;n*. v. N7R%, G.R. No. 1/9-10, 15 De*ember 199-, .83 "%R' .0., .51H ;ran v. N7R%, G.R. No. 1.19.-, .. '&ri# 1998, .89 "%R' 033, 00.. 40/5 "ave##ano v. Nort,2est 'ir#ines, G.R. No. 151-83, 8 Ju#6 .//3. 4015 <i##ar v. N7R%, G.R. No. 13/935, 11 (a6 .///. 40.5 Ro##o, &&. 6/!-1. 4035 B"+ =a*u#t6 Bnion v. N7R%, G.R. No. 9/005, . @*tober 199/. 4005 K&hereasL *#auses, P.D. No. 851. 4055 K'rt. 113. >age dedu*tion. ! No em&#o6er, in ,is o2n be,a#1 or in be,a#1 o1 an6 &erson, s,a## ma3e an6 dedu*tion 1rom t,e 2ages o1 ,is em&#o6ees eG*e&t: 8a9 ;n *ases 2,ere t,e 2or3er is insured 2it, ,is *onsent b6 t,e em&#o6er, and t,e dedu*tion is to re*om&ense t,e em&#o6er 1or t,e amount &aid b6 ,im as &remium on t,e insuran*eH 8b9 =or union dues, in *ases 2,ere t,e rig,t o1 t,e 2or3er or ,is union to *,e*3 o11 ,as been re*ogni$ed b6 t,e em&#o6er or aut,ori$ed in 2riting b6 t,e individua# 2or3er *on*ernedH and 8*9 ;n *ases 2,ere t,e em&#o6er is aut,ori$ed b6 #a2 or regu#ations issued b6 t,e "e*retar6 o1 7abor and ?m&#o6ment.