Agabon vs NLRC

FACTS
Virgilio and Jenny Agabon worked for respondent Riviera Home Improvements, Inc. as gypsum and cornice installers
from January 1992 until Feb 1999. Their employment was terminated when they were dismissed for allegedly
abandoning their work. Petitioners Agabon then filed a case of illegal dismissal. /// The LA ruled in favor of the
spouses and ordered Riviera to pay them their money claims. The NLRC reversed the LA, finding that the Agabons
were indeed guilty of abandonment. The CA modified the LA by ruling that there was abandonment but ordering
Riviera to pay the Agabons money claims.///

The arguments of both parties are as follows:

The Agabons claim, among others that Riviera violated the requirements of notice and hearing when the latter did
not send written letters of termination to their addresses.
Riviera admitted to not sending the Agabons letters of termination to their last known addresses because the same
would be futile, as the Agabons do not reside there anymore. However, it also claims that the Agabons abandoned
their work. More than once, they subcontracted installation works for other companies. They already were warned
of termination if the same act was repeated, still, they disregarded the warning.

ISSUES
1. Whether the Agabons were illegally dismissed
2. Whether Riviera violated the requirements of notice and hearing
3. Is the violation of the procedural requirements of notice and hearing for termination of employees a violation of
the Constitutional due process?
4. What are the consequences of violating the procedural requirements of termination?

RULING: Valid dismissal but violation of statutory due process = payment of nominal damages (P30,000) & balance
of 13th month pay, etc.
1. No. There was just cause for their dismissal, i.e., abandonment. Art. 282 specifies the grounds for just dismissal,
to wit:
a. Serious misconduct or willful disobedience of the lawful orders of the employer or his duly authorized
representative in connection with the employees work
b. Gross and habitual neglect of the by the employee of his duties (includes abandonment)
c. Fraud or willful breach of the trust reposed by the employer or his duly authorized representative to the
employee
d. Commission of a crime or offense by the employee against the person of the employer or any member of
his immediate family or his duly authorized representative
e. Any other causes analogous to the foregoing.

To establish abandonment, two elements must be present:

a. The unjustified failure of the employee to report for work
b. A clear intention to sever e-e relationship, manifested by overt acts

Here, the Agabons were frequently absent from work for having performed installation work for another
company, despite prior warning given by Riviera. This clearly establishes an intention to sever the e-e relationship
between them, and which constitutes abandonment.

2. Yes. While the employer has the right to expect good performance, diligence, good conduct and loyalty from its
employees, it also has the duty to provide just compensation to his employees and to observe the procedural
requirements of notice and hearing in the termination of his employees.
Procedure of termination (Omnibus Rules Implementing the Labor Code):
a. A written notice to the employee specifying the grounds for termination and giving the employee
reasonable opportunity to be heard
 b. A hearing where the employee is given the opportunity to respond to the charges against him and present
evidence or rebut the evidence presented against him (if he so requests)
c. A written notice of termination indicating that grounds have been established to justify his termination
upon due consideration of all circumstances

In this case, Riviera failed to notify the Agabons of their termination to their last known addresses. Hence, they
violated the procedural requirement laid down by the law in the termination of employees.

3. No. Constitutional due process is that provided under the Constitution, which involves the protection of the
individual against governmental oppression and the assurance of his rights In civil, criminal and administrative
proceedings; statutory due process is that found in the Labor Code and its Implementing Rules and protects the
individual from being unjustly terminated without just or authorized cause after notice and hearing.

The two are similar in that they both have two aspects: substantive due process and procedural due process.
However, they differ in that under the Labor Code, the first one refers to the valid and authorized causes of
employment termination, while the second one refers to the manner of dismissal. A denial of statutory due
process is not the same as a denial of Constitutional due process for reasons enunciated in Serrano v. NLRC.

4. The dismissal is valid, but Riviera should pay nominal damages to the Agabons in vindication of the latter for
violating their right to notice and hearing. The penalty is in the nature of a penalty or indemnification, the amount
dependent on the facts of each case, including the nature of gravity of offense of the employer.