Tuesday, January 27, 2009

Serrano v. NLRC [G.R. No. 117040, May 4, 2000]



FACTS:
Respondent Isetann Department Store dismissed petitioner due to retrenchment. However instead of giving the required 30 day notice, respondents gave 30 days pay arguing that this is effective notice. They made the dismissed employees sign quitclaims so that there would be no more claims from them. The Labor Arbiter ruled that the employees were illegally dismissed because they were not afforded due process because they failed to prove retrenchment due to losses. The NLRC reversed the ruling saying that the dismissal was justified because it was due to redundancy and not retrenchment. The NLRC however did not rule on whether the 30 day pay was a sufficient substitute for the 30 day notice. The petitioner argues further that they should be given the chance to present his side.


ISSUE: Whether or not the 30 days pay is sufficient replacement for 30 day notice.


HELD: The Court ruled that since the dismissal is due to an authorized cause only notice is required and that the employee has no right to present his side. The 30 day notice is needed in order to afford the employee enough time to look for work and to give the DOLE time to look into the validity of the authorized cause. 30 days pay is not enough to replace the notice requirement because it would not serve the purpose of the notice. Additionally, backwages are not a severe punishment because it is a consequence of the employer’s failure to give notice and due process and the employee is therefore not deemed terminated so he should be compensated for that period.

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