Petitioner vs. vs. Respondent: Second Division
Petitioner vs. vs. Respondent: Second Division
Petitioner vs. vs. Respondent: Second Division
DECISION
CARPIO , J : p
The Case
The Facts
On 5 March 2014, petitioner led a Complaint 3 for illegal dismissal against her
employer, Momentum Properties Management Corporation (respondent) and/or its
Chief Executive O cer, Steve Li (Li), before the National Capital Region (NCR)
Arbitration Branch of the National Labor Relations Commission (NLRC).
In her Position Paper, petitioner alleged that, on 26 June 2013, respondent hired
her as a probationary employee, with her designation being that of a Leasing Assistant.
She worked eight hours a day from 9:00 a.m. to 6:00 p.m. Six months after her
employment, speci cally on 27 December 2013, she was informed of her dismissal and
was advised to no longer report for work. According to petitioner, upon inquiring the
reason for her dismissal, respondent coldly ignored her query and thereafter, no longer
contacted her. She contended that respondent failed to provide any notice or justi able
cause as to why her employment was being severed. Because of respondent's failure to
comply with both substantive and procedural due process requirements, as mandated
by law, petitioner alleged that she was illegally dismissed. 4
In its defense, respondent denied the illegal dismissal allegation of petitioner.
Respondent acknowledged, however, that petitioner was hired by it as a probationary
employee, particularly as a Leasing Assistant. Petitioner's probationary employment
with respondent was for a period of six months, as indicated by the former's
Employment Agreement with the latter. Petitioner was assigned by respondent to
Solemare Parksuites, a condominium building in Bradco Avenue, Parañaque City, to
render clerical and secretarial services necessary in the leasing operations of the
building. As a Leasing Assistant, petitioner was required to report primarily at the
project site in Parañaque City, under the supervision of the Leasing Manager, Elizabeth
Tungol (Tungol). 5
According to respondent, in line with the provisions of their Employment
Agreement, petitioner was subjected to the respondent's evaluation procedure on the
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fth month of her employment. Hence, sometime in November 2013, petitioner's over-
all performance and capacity to meet the demands of her work were assessed by her
immediate superiors. 6 CAIHTE
The Labor Arbiter held that Li could not be held solidarily liable with respondent,
because no evidence was submitted to prove that the former was guilty of bad faith. 1 6
Aggrieved, respondent filed an appeal with the NLRC.
Backwages P124,280.00
Separation Pay 16,000.00
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140,280.00
Ten Percent (10%) Attorney's 14,028.00
Fees
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Total P154,308.00
In its Decision dated 22 March 2016, the Court of Appeals granted the petition
and annulled and set aside the Decision and Resolution of the NLRC dated 30
September 2014 and 18 November 2014, respectively. The dispositive portion of the
Decision of the Court of Appeals dated 22 March 2016 provides:
WHEREFORE, premises considered, the instant petition is hereby
GRANTED. The assailed Decision and Resolution of the Third Division of the
National Labor Relations Commission dated September 30, 2014 and November
18, 2014, respectively, are ANNULLED and SET ASIDE. However, for failure to
observe procedural due process, the petitioner is hereby directed to pay nominal
damages to private respondent in the amount of Php30,000.00.
SO ORDERED. 2 4
Respondent argued that petitioner failed to show through substantial evidence
that she was dismissed from work. It contended that the text messages purportedly
from Tungol were not veri ed or authenticated in accordance with the Rules on
Electronic Evidence. It averred that, while technical rules of procedure are not strictly
observed by the NLRC, the latter remains to have a duty to comply with certain
procedures, in order to determine the admissibility and probative value of the evidence
sought to be presented. It further alleged that, assuming arguendo, that such text
messages were from Tungol, the same cannot be regarded as a formal notice of
petitioner's termination, because the authority to do so fully resides with the HR
Department. 2 5
Respondent likewise argued that it was improper for the NLRC to consider the
payroll for December 2013 as basis for petitioner's dismissal. It averred that such
document was merely meant to negate her claim for payment of salary and was not to
be used as evidence to show that she remained under its employ beyond the covered
date. 2 6 aDSIHc
The Issue
The issue in this case is whether or not petitioner was illegally dismissed by
respondent.
Based on the abovementioned test results, respondent was only exercising its
statutory hiring prerogative when it refused to hire petitioner on a permanent basis,
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upon the expiration of her six-month probationary period. It is a well-established
principle that an employer has the right or is at liberty to choose who will be hired and
who will be denied employment. Accordingly, it is within the exercise of the right to
select one's employees that an employer may set or x a probationary period within
which the latter may test and observe the conduct of the former before the former is
hired on a permanent basis. 4 9 As long as the employer has made known to the
employee the regularization standards at the time of the employee's engagement, the
refusal of the former to regularize the latter, by reason of the latter's failure to comply
with the regularization standards, is within the ambit of the law. 5 0
All the same, while respondent had the right to terminate petitioner's
employment, and not to accord her the status of a regular employee, the manner by
which petitioner's dismissal was carried out was not in accordance with the standards
set forth under the law.
With respect to the termination of a probationary employee, a different
procedure is applied — the usual two-notice rule does not govern. 5 1 The aforesaid two-
notice rule is that which is found under Article 292 (b) of the Labor Code, as amended
by Section 33 of Republic Act No. 10151, viz.:
Article 292. Miscellaneous Provisions. —
xxx xxx xxx
(b) Subject to the constitutional right of workers to security of tenure and
their right to be protected against dismissal except for a just and authorized
cause and without prejudice to the requirement of notice under Article 283 (now,
Article 298) of this Code, the employer shall furnish the worker whose
employment is sought to be terminated a written notice containing a statement
of the cause for termination and shall afford the latter ample opportunity to be
heard and to defend himself with the assistance of his representative if he so
desires in accordance with company rules and regulations promulgated
pursuant to guidelines set by the Department of Labor and Employment. x x x.
The aforementioned procedure is also found in Section 2, Rule I, Book VI, as
amended by Department Order No. 147-15, of the Omnibus Rules Implementing the
Labor Code which states: SDHTEC
SO ORDERED .
Del Castillo, * Leonen *** and Caguioa, JJ., concur.
Perlas-Bernabe, ** J., is on official leave.
Footnotes
5. Id. at 142.
6. Id.
7. Id.
8. Id.
9. Id. at 143.
10. Id.
11. Id. at 34.
21. Id.
27. Id.
28. Id.
31. Id.
32. Id. at 40.
33. Enchanted Kingdom, Inc. v. Verzo, 775 Phil. 388, 400 (2015); Eastern Telecommunications,
Phils., Inc. v. Diamse, 524 Phil. 549, 555 (2006).
34. Rollo, p. 20.
36. Canadian Opportunities Unlimited, Inc. v. Dalangin, Jr., 681 Phil. 21, 33 (2012), citing
International Catholic Migration Commission v. NLRC, 251 Phil. 560 (1989).
37. Oyster Plaza Hotel v. Melivo, 796 Phil. 800, 813 (2016).
38. Canadian Opportunities Unlimited, Inc. v. Dalangin, Jr., supra note 36, at 34.
39. Philippine National Oil Company-Energy Development Corporation v. Buenviaje, 788 Phil.
508, 529 (2016).