Case Digest For ADEL

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ABRAHAM RAZON VS. HON. AMADO G.

INCIONG as Deputy Minister


of Labor; NLRC; and PHILIPS ELECTRICAL LAMPS, INC.,
GR. NO. L-51809 December 19, 1980

FACTS:
 Philips Electrical Lamps, Inc. employed Abraham Razon as Supervisor
of its Cathode Ray Tube (CRT) Department. Sometime on January 1976, the
company filed with the Ministry of Labor an application to terminate his
services because of alleged animosities and for alleged misrepresentation as
to his qualifications, i.e. he posed as an experienced electronic expert but
could not troubleshoot on his own even minor CRT problems; and for alleged
weird disposition in that he challenged his subordinates to fistfights, shouted
at them and even padlocked the CRT doors.
Petitioner filed with the DOLE a complaint for illegal dismissal. The
case proceeded to compulsory arbitration since conciliation proceedings
were unavailing. Labor Arbiter ruled that Razon was not guilty of the charges
against him but did not order his reinstatement instead ordered the payment
of separation pay equivalent to its salary from the date of his dismissal to the
date of the decision.
The company appealed to NLRC contending that Razon was not
entitled to reinstatement he was likewise not entitled to separation pay.
NLRC modified the appealed decision. It ruled that Razon "is entitled to
separation pay equivalent to one-half month pay for every year of service."
Dissatisfied because the amount awarded to him was reduced, Razon
appealed to the Secretary of Labor but this was dismissed by the Deputy
Minister of Labor. Hence, the present appeal to SC.

ISSUE/S:
Is it not an error in law, or a grave abuse of discretion amounting to
lack of jurisdiction to merely award the employee who is not guilty of the
charges imputed against him by his employer a separation pay and not to
reinstate him with back wages as provided by law?

RULING:
The law, in protecting the rights of the laborer, authorizes neither
oppression nor self-destruction of the employer. Where, therefore, it could be
shown that the result would be neither oppressive nor self- destructive, it
cannot be asserted dogmatically that an outright termination of employment
is justified (PAL. v. PALEA, 57 SCRA 489, 493). In the case at bar, respondent
company failed to demonstrate, and there was no finding by either the Labor
Arbiter or the NLRC, that the continued employment of petitioner, even in his
managerial position, would result in the company's oppression or self-
destruction. As a matter of fact, there was no finding that as a proximate
result of petitioner's employment, the company suffered business reverses.
The SC agreed with the Solicitor General. SC noted that the only
serious charge against petitioner which would have justified his dismissal is
his alleged incompetence and yet private respondent appears to have
discovered it only after almost two years from petitioner's employment.
It is true that the petitioner did not appeal the ruling of the Labor
Arbiter that he was not entitled to reinstatement but he did raise the
question in his appeal to the Secretary of Labor. Under the circumstances
the principle of res judicata may not be invoked considering that labor
relations proceedings are I non-litigation and summary in nature, without
regard to legal technicalities obtaining in courts of law. The private
respondent is ordered to reinstate the petitioner with backwages from the
time of dismissal to the time of its reinstatement

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