In labor disputes, employees claiming illegal dismissal must first convincingly demonstrate they were indeed dismissed before the employer needs to justify the termination. This ruling underscores that the burden of proof initially lies with the employee to establish the fact of dismissal. Without sufficient evidence of dismissal, the employer isn’t obligated to prove just cause, ensuring a balanced approach in labor litigation.

When a Verbal Dismissal Is Not Enough: Proving Termination in Labor Disputes

This case, Froel M. Pu-od, Bombom L. Layaona, Danilo L. Orsal, Joseph B. Flores and Joel M. Pu-od v. Ablaze Builders, Inc./Rolando Pampolino, revolves around a complaint for illegal dismissal filed by several construction workers against their employer, Ablaze Builders, Inc. The workers claimed they were verbally dismissed by a project engineer, while the company argued they had abandoned their jobs. This dispute highlights a critical issue in labor law: what evidence is sufficient to prove that an employee was actually dismissed?

The petitioners, Froel M. Pu-od, Bombom L. Layaona, Danilo L. Orsal, Joseph B. Flores, and Joel M. Pu-od, were hired by Ablaze Builders, Inc. for a construction project in Quezon City. They alleged that on February 28, 2014, a project engineer informed them they were terminated due to lack of work. Aggrieved, they filed a complaint for illegal dismissal, seeking various monetary claims. The company, however, contended that the workers had abandoned their posts after the resignation of the project site engineer, Romeo Calma. To support their claim, Ablaze Builders presented affidavits from two project engineers denying the alleged verbal dismissal.

The Labor Arbiter (LA) initially dismissed the workers’ complaint, finding insufficient evidence of dismissal. The National Labor Relations Commission (NLRC) reversed this decision, awarding backwages and separation pay to the workers. This was then elevated to the Court of Appeals (CA), which sided with the company, reinstating the LA’s decision. The CA emphasized that the workers failed to adequately prove they were dismissed, prompting the workers to appeal to the Supreme Court.

The Supreme Court (SC) was asked to determine whether the CA erred in overturning the NLRC’s decision and whether the workers had indeed been illegally dismissed. The SC clarified the burden of proof in illegal dismissal cases, reiterating that employees must first establish the fact of dismissal with substantial evidence. The court emphasized that the evidence presented by the workers was speculative and inconsistent.

The SC cited the Labor Arbiter’s observations:

There would be no dismissal committed by respondents, actual, or constructive, as complainants have failed to substantiate their allegation that there was in fact a dismissal… whereas respondents substantiated their denial of any dismissal effected thru the Affidavits of their two project engineers… denying under oath of having told complainants on 2/28/2014 that they were already terminated.

Adding to the lack of credibility, the SC noted inconsistencies in the workers’ claims regarding the date of their alleged dismissal. The High Court found that the workers’ claim of verbal dismissal was unsupported and lacked specific details. Furthermore, there was no evidence preventing them from returning to work or depriving them of assignments.

Building on this principle, the SC contrasted the workers’ unsubstantiated claims with the company’s presentation of affidavits from project engineers denying the dismissal. This demonstrated a failure on the workers’ part to present clear, positive, and convincing evidence of their termination. Thus, the Court highlighted that without adequate proof of dismissal, the employer is not obligated to prove just cause for termination.

However, the SC also addressed the company’s claim that the workers had abandoned their jobs. It clarified that abandonment is a matter of intention and requires proof of unjustified failure to report for work and overt acts demonstrating a clear intent to sever employment ties. The Court determined that Ablaze Builders failed to provide sufficient evidence to prove abandonment, as the workers’ filing of an illegal dismissal complaint contradicted any intention to abandon their employment.

The Supreme Court referenced MZR Industries, et.al. v. Majen Colambot, stating:

These circumstances, taken together, the lack of evidence of dismissal and the lack of intent on the part of the respondent to abandon his work, the remedy is reinstatement but without backwages. However, considering that reinstatement is no longer applicable due to the strained relationship between the parties and that Colambot already found another employment, each party must bear his or her own loss, thus, placing them on equal footing.

Given the absence of both illegal dismissal and abandonment, the SC addressed the issue of backwages and separation pay. Citing John L. Borja and Aubrey L. Borja/Dong Juan v. Randy B. Miñoza and Alaine S. Bandalan, the Court determined that since the cessation of employment was neither due to abandonment nor illegal dismissal, and reinstatement was no longer feasible, neither party was entitled to monetary compensation. The SC reasoned that the burden of economic loss should not be shifted to the employer when the failure to work was not due to termination or abandonment.

FAQs

What was the key issue in this case?	The key issue was whether the employees were illegally dismissed and whether they presented sufficient evidence to prove their dismissal. The case also examined whether the employees had abandoned their employment.
What did the Labor Arbiter initially decide?	The Labor Arbiter initially dismissed the complaint, finding that the employees failed to substantiate their allegation of dismissal. The LA ruled that there was no actual or constructive dismissal committed by the employer.
How did the NLRC rule on the appeal?	The NLRC reversed the Labor Arbiter’s decision, ruling in favor of the employees and awarding them backwages and separation pay. The NLRC found the employer liable for illegal dismissal.
What was the Court of Appeals’ decision?	The Court of Appeals granted the employer’s petition, reversing the NLRC’s decision. The CA found that the employees failed to establish the fact of their dismissal and had abandoned their employment.
What did the Supreme Court decide?	The Supreme Court denied the employees’ petition, reversing the Court of Appeals’ decision in part. The SC found that while the employees failed to prove illegal dismissal, the employer also failed to prove abandonment. Thus, no monetary compensation was awarded.
What evidence did the employees present to prove dismissal?	The employees claimed they were verbally informed of their termination by a project engineer, but they did not provide specific details or the identity of the engineer. The court deemed this evidence speculative and inconsistent.
What is the significance of proving the fact of dismissal?	Proving the fact of dismissal is crucial because it shifts the burden to the employer to prove that the termination was for a valid or authorized cause. Without this initial proof, the employer has no obligation to justify the termination.
What constitutes abandonment of employment?	Abandonment requires proof that the employee failed to report for work without justifiable reason and that they had a clear intention to sever the employment relationship. Both elements must be present to constitute abandonment.
What is the remedy when there is no dismissal or abandonment?	In cases where there is no illegal dismissal by the employer and no abandonment by the employees, the typical remedy is reinstatement without backwages. However, if reinstatement is not feasible due to strained relations, neither party may be entitled to monetary compensation.

In conclusion, the Supreme Court’s decision reinforces the importance of providing substantial evidence in labor disputes. Employees claiming illegal dismissal must first establish that they were indeed terminated before the burden shifts to the employer to justify the termination. This ruling ensures a balanced approach to labor law, protecting the rights of both employees and employers.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: FROEL M. PU-OD, ET AL. v. ABLAZE BUILDERS, INC., G.R. No. 230791, November 20, 2017