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VOL. 290, JUNE 5, 1998                              603
                              Maneja vs. National Labor Relations Commission
                                                                                       *
                                          G.R. No. 124013. June 5, 1998.
                      ROSARIO MANEJA, petitioner, vs. NATIONAL LABOR
                      RELATIONS COMMISSION and MANILA MIDTOWN
                      HOTEL, respondents.
                           Labor Law; Jurisdiction; Labor Arbiters; Voluntary
                      Arbitration; Grievance Procedure;           Collective   Bargaining
                      Agreements; Dismissal of Employees; Termination cases fall under
                      the original and exclusive jurisdiction of the Labor Arbiters, not
                      voluntary arbitrators.—As can be seen from the aforequoted
                      Article, termination cases fall under the original and exclusive
                      jurisdiction of the Labor Arbiter. It should be noted, however, that
                      in the opening paragraph there appears the phrase: “Except as
                      otherwise provided under this Code x x x.” It is paragraph (c) of
                      the same Article which respondent Commission has erroneously
                      interpreted as giving the voluntary arbitrator jurisdiction over the
                      illegal dismissal case. However, Article 217(c) should be read in
                      conjunction with Article 261 of the Labor Code which grants to
                      voluntary arbitrators original and exclusive jurisdiction to hear
                      and decide all unresolved grievances
                      ________________
                          *   SECOND DIVISION.
                                                                                           604
                      604               SUPREME COURT REPORTS ANNOTATED
                                 Maneja vs. National Labor Relations Commission
                      arising from the interpretation or implementation of the collective
                      bargaining agreement and those arising from the interpretation
                      or enforcement of company personnel policies. Note the phrase
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                      “unresolved grievances.” In the case at bar, the termination of
                      petitioner is not an unresolved grievance.
                           Same; Same; Same; Same; Same; Same; Same; Where the
                      dispute is just in the interpretation, implementation or
                      enforcement stage, it may be referred to the grievance machinery
                      set up in the Collective Bargaining Agreement or by voluntary
                      arbitration, but where there is already actual termination, i.e.,
                      violation of rights, it is already cognizable by the Labor Arbiter.—
                      The stance of the Solicitor General in the Sanyo case is totally the
                      reverse of its posture in the case at bar. In Sanyo, the Solicitor
                      General was of the view that a distinction should be made
                      between a case involving “interpretation or implementation of
                      Collective Bargaining Agreement” or interpretation or
                      “enforcement” of company personnel policies, on the one hand and
                      a case involving termination, on the other hand, It argued that
                      the dismissal of the private respondents does not involve an
                      “interpretation or implementation” of a Collective Bargaining
                      Agreement or “interpretation or enforcement” of company
                      personnel policies but involves “termination.” The Solicitor
                      General further said that where the dispute is just in the
                      interpretation, implementation or enforcement stage, it may be
                      referred to the grievance machinery set up in the Collective
                      Bargaining Agreement or by voluntary arbitration. Where there
                      was already actual termination, i.e., violation of rights, it is
                      already cognizable by the Labor Arbiter. We fully agree with the
                      theory of the Solicitor General in the Sanyo case, which is
                      radically opposite to its position in this case.
                           Same; Same; Same; Same; Same; Same; Same; Only disputes
                      involving the union and the company shall be referred to the
                      grievance machinery or voluntary arbitrators.—Moreover, the
                      dismissal of petitioner does not fall within the phrase “grievances
                      arising from the interpretation or implementation of collective
                      bargaining agreement and those arising from the interpretation
                      or enforcement of company personnel policies,” the jurisdiction of
                      which pertains to the grievance machinery or thereafter, to a
                      voluntary arbitrator or panel of voluntary arbitrators. It is to be
                      stressed that under Article 260 of the Labor Code, which explains
                      the function of the grievance machinery and voluntary arbitrator,
                      “(T)he parties to a Collective Bargaining Agreement shall include
                      therein provisions that will ensure
                                                                                          605
                                         VOL. 290, JUNE 5, 1998                           605
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                                Maneja vs. National Labor Relations Commission
                      the mutual observance of its terms and conditions. They shall
                      establish a machinery for the adjustment and resolution of
                      grievances arising from the interpretation or implementation of
                      their Collective Bargaining Agreement and those arising from the
                      interpretation or enforcement of company personnel policies.”
                      Article 260 further provides that that parties to a CBA shall name
                      or designate their respective representative to the grievance
                      machinery and if the grievance is unsettled in that level, it shall
                      automatically be referred to the voluntary arbitrators designated
                      in advance by the parties to a CBA of the union and the company.
                      It can thus be deduced that only disputes involving the union and
                      the company shall be referred to the grievance machinery or
                      voluntary arbitrators.
                          Same; Same; Same; Same; Same; Same; Words and Phrases;
                      “Company Personnel Policies,” Explained.—It should be explained
                      that “company personnel policies” are guiding principles stated in
                      broad, long-range terms that express the philosophy or beliefs of
                      an organization’s top authority regarding personnel matters. They
                      deal with matters affecting efficiency and well-being of employees
                      and include, among others, the procedure in the administration of
                      wages, benefits, promotions, transfer and other personnel
                      movements which are usually not spelled out in the collective
                      agreement. The usual source of grievances, however, are the rules
                      and regulations governing disciplinary actions.
                           Same; Same; Pleadings and Practice; Estoppel; The issue of
                      jurisdiction is mooted by a party’s active participation in the
                      proceedings.—Clearly, estoppel lies. The issue of jurisdiction was
                      mooted by herein private respondent’s active participation in the
                      proceedings below. In Marquez vs. Secretary of Labor, the Court
                      said: “x x x. The active participation of the party against whom
                      the action was brought, coupled with his failure to object to the
                      jurisdiction of the court or quasi-judicial body where the action is
                      pending, is tantamount to an invocation of that jurisdiction and a
                      willingness to abide by the resolution of the case and will bar said
                      party from later on impugning the court or body’s jurisdiction.”
                           Same; Dismissals; Requisites for Valid Dismissal.—The
                      requisites of a valid dismissal are (1) the dismissal must be for
                      any of the causes expressed in Article 282 of the Labor Code, and
                      (2) the employee must be given an opportunity to be heard and to
                      defend himself. The substantive and procedural laws must be
                      strictly complied
                                                                                          606
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                      606               SUPREME COURT REPORTS ANNOTATED
                                Maneja vs. National Labor Relations Commission
                      with before a worker can be dismissed from his employment
                      because what is at stake is not only the employee’s position but
                      his livelihood.
                           Same; Same; Social Justice; Presumption of Good Faith; Our
                      norms of social justice demand that we credit employees with the
                      presumption of good faith in the performance of their duties.—
                      Given the factual circumstances of the case, we cannot deduce
                      dishonesty from the act and omission of petitioner. Our norms of
                      social justice demand that we credit employees with the
                      presumption of good faith in the performance of their duties,
                      especially petitioner who has served private respondent since
                      1985 up to 1990 without any tinge of dishonesty and was even
                      named “Model Employee” for the month of April, 1989.
                           Same; Same; Dismissal must be based on a clear and not on
                      an ambiguous or ambivalent ground—any ambiguity or
                      ambivalence on the ground relied upon by an employer in
                      terminating the services of an employee denies the latter his full
                      right to contest its legality.—Petitioner has been charged with a
                      very serious offense—dishonesty. This can irreparably wreck her
                      life as an employee for no employer will take to its bosom a
                      dishonest employee. Dismissal is the supreme penalty that can be
                      meted to an employee and its imposition cannot be justified where
                      the evidence is ambivalent. It must, therefore, be based on a clear
                      and not on an ambiguous or ambivalent ground. Any ambiguity or
                      ambivalence on the ground relied upon by an employer in
                      terminating the services of an employee denies the latter his full
                      right to contest its legality. Fairness cannot countenance such
                      ambiguity or ambivalence.
                           Same; Same; Due Process; Well-settled is the dictum that the
                      twin requirements of notice and hearing constitute the essential
                      elements of due process in the dismissal of employees.—Well-
                      settled is the dictum that the twin requirements of notice and
                      hearing constitute the essential elements of due process in the
                      dismissal of employees. It is a cardinal rule in our jurisdiction
                      that the employer must furnish the employee with two written
                      notices before the termination of employment can be effected: (a)
                      the first apprises the employee of the particular acts or omissions
                      for which his dismissal is sought; and, (b) the second informs the
                      employee of the employer’s decision to dismiss him. The
                      requirement of a hearing, on the other
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                                                                                          607
                                         VOL. 290, JUNE 5, 1998                           607
                                Maneja vs. National Labor Relations Commission
                      hand, is complied with as long as there was an opportunity to be
                      heard, and not necessarily that an actual hearing was conducted.
                           Same; Same; Same; Consultations or conferences may not be a
                      substitute for the actual holding of a hearing.—An examination of
                      the record reveals that no hearing was ever conducted by private
                      respondent before petitioner was dismissed. While it may be true
                      that petitioner submitted a written explanation, no hearing was
                      actually conducted before her employment was terminated. She
                      was not accorded the opportunity to fully defend herself.
                      Consultations or conferences may not be a substitute for the
                      actual holding of a hearing. Every opportunity and assistance
                      must be accorded to the employee by the management to enable
                      him to prepare adequately for his defense, including legal
                      representation. Considering that petitioner denied having
                      allegedly taken the second P500.00 deposit of the Japanese guest
                      which was eventually found; and, having made the alteration of
                      the date on the second RLDC merely to reflect the true date of the
                      transaction, these circumstances should have at least warranted a
                      separate hearing to enable petitioner to fully ventilate her side.
                      Absent such hearing, petitioner’s right to due process was clearly
                      violated.
                           Same; Same; Same; A worker’s employment is property in the
                      constitutional sense.—It bears stressing that a worker’s
                      employment is property in the constitutional sense. He cannot be
                      deprived of his work without due process of law. Substantive due
                      process mandates that an employee can only be dismissed based
                      on just or authorized causes. Procedural due process requires
                      further that he can only be dismissed after he has been given an
                      opportunity to be heard. The import of due process necessitates
                      the compliance of these two aspects.
                          Same; Same; Damages; Where the termination of the services
                      of an employee is attended by fraud or bad faith on the part of the
                      employer, as when the latter knowingly made false allegations of a
                      supposed valid cause when none existed, moral and exemplary
                      damages may be awarded in favor of the former.—The award of
                      moral and exemplary damages to petitioner is also warranted
                      where there is lack of due process in effecting the dismissal.
                      Where the termination of the services of an employee is attended
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                      by fraud or bad faith on the part of the employer, as when the
                      latter knowingly made false allegations of a supposed valid cause
                      when none existed, moral
                                                                                          608
                      608               SUPREME COURT REPORTS ANNOTATED
                                Maneja vs. National Labor Relations Commission
                      and exemplary damages may be awarded in favor of the former.
                      The anti-social and oppressive abuse of its right to investigate and
                      dismiss its employees constitute a violation of Article 1701 of the
                      New Civil Code which prohibits acts of oppression by either
                      capital or labor against the other, and Article 21 on human
                      relations. The grant of moral damages to the employees by reason
                      of such conduct on the part of the company is sanctioned by
                      Article 2219, No. 10 of the Civil Code, which allows recovery of
                      such damages in actions referred to in Article 21.
                      SPECIAL CIVIL ACTION in the Supreme Court.
                      Certiorari.
                      The facts are stated in the opinion of the Court.
                              Raissa H. Jajurie for petitioner.
                              Marasigan & Valerio-Padilla Law Office for private
                      respondent.
                      MARTINEZ, J.:
                      Assailed in this petition for certiorari under1 Rule 65 of the
                      Revised Rules of Court are the Resolution dated June 3,
                      1994 of the respondent National Labor Relations
                      Commission in NLRC NCR-00-10-05297-90, entitled
                      “Rosario Maneja, Complainant vs. Manila Midtown Hotel,
                      Respondent,” which dismissed the illegal dismissal case
                      filed by petitioner against private respondent company for
                      lack of jurisdiction
                                     2
                                           of the Labor Arbiter over the case; and
                      its Resolution dated October 20, 1995 denying petitioner’s
                      motion for reconsideration.
                          Petitioner Rosario Maneja worked with private
                      respondent Manila Midtown Hotel beginning January,
                      1985 as a telephone operator. She was a member of the
                      National Union of Workers in Hotels, Restaurants and
                      Allied Industries
                      _______________
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                         1    Penned by Presiding Commissioner Bartolome S. Carale and
                      concurred in by Commissioner Vicente S.E. Veloso and Commissioner
                      Alberto R. Quimpo (on leave), First Division.
                         2   Ibid.
                                                                                          609
                                       VOL. 290, JUNE 5, 1998                            609
                              Maneja vs. National Labor Relations Commission
                      (NUWHRAIN) with an existing Collective Bargaining
                      Agreement (CBA) with private respondent.
                         In the afternoon of February 13, 1990, a fellow telephone
                      operator, Rowena Loleng, received a Request for Long
                      Distance Call (RLDC) form and a deposit of P500.00 from a
                      page boy of the hotel for a call by a Japanese guest named
                      Hirota Ieda. The call was unanswered. The P500.00 deposit
                      was forwarded to the cashier. In the evening, Ieda again
                      made an RLDC and the page boy collected another P500.00
                      which was also given to the operator Loleng. The second
                      call was also unanswered. Loleng passed on the RLDC to
                      petitioner for follow-up. Petitioner monitored the call.
                         On February 15, 1990, a hotel cashier inquired about
                      the P1,000.00 deposit made by Ieda. After a search, Loleng
                      found the first deposit of P500.00 inserted in the guest folio
                      while the second deposit was eventually discovered inside
                      the folder for cancelled calls with deposit and official
                      receipts.
                         When petitioner saw that the second RLDC form was
                      not time-stamped, she immediately placed it inside the
                      machine which stamped the date “February 15, 1990.”
                      Realizing that the RLDC was filed 2 days earlier, she wrote
                      and changed the date to February 13, 1990. Loleng then
                      delivered the RLDC and the money to the cashier. The
                      second deposit of P500.00 by Ieda was later returned to
                      him.
                         On March 7, 3
                                        1990, the chief telephone operator issued a
                      memorandum to petitioner and Loleng directing the two to
                      explain the February 15 incident. Petitioner 4and Loleng
                      thereafter submitted their written explanation.
                                                                5
                         On March 20, 1990, a written report was submitted by
                      the chief telephone operator, with the recommendation that
                      the offenses committed by the operators concerned covered
                      violations of the Offenses Subject to Disciplinary Actions
                      (OSDA):
                      _______________
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                         3   Annex “D” of Respondent’s Memorandum; Rollo, p. 105.
                         4   Annex “E” of Complainant’s Position Paper; Rollo, p. 59; Annex “E” of
                      Respondent’s Memorandum; Rollo, p. 106.
                         5   Annex “F” of Respondent’s Memorandum; Rollo, pp. 107-108.
                                                                                              610
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                               Maneja vs. National Labor Relations Commission
                      (1) OSDA 2.01: forging, falsifying official document(s), and
                      (2) OSDA 1.11 culpable carelessness-negligence or failure
                      to follow specific instruction(s) or established procedure(s).
                          On March
                                 6
                                      23, 1990, petitioner was served a notice of
                      dismissal effective April 1, 1990. Petitioner refused to sign
                      the notice and wrote therein “under
                                                        7
                                                              protest.”
                          Meanwhile, a criminal case for Falsification of Private
                      Documents and Qualified Theft was filed before the Office
                      of the City Prosecutor of Manila by private respondent
                      against Loleng and petitioner. However, the resolution
                      recommending the filing of a case for estafa was reversed
                      by 2nd Asst. City Prosecutor Virgilio M. Patag.
                          On October 2, 1990, petitioner filed a complaint for
                      illegal dismissal against private respondent before the
                      Labor Arbiter. The complaint was later amended to include
                      a claim for unpaid wages, unpaid vacation leave conversion
                      and moral damages.
                          Position papers were filed by the parties. Thereafter, the
                      motion to set the case for hearing filed by private
                      respondent was granted by the Labor Arbiter and trial on
                      the merits ensued. 8
                          In his decision dated May 29, 1992, Labor Arbiter
                      Oswald Lorenzo found that the petitioner was illegally
                      dismissed. However, in the decision the Labor Arbiter
                      stated that:
                      “Preliminarily, we hereby state that on the face of the instant
                      complaint, it is one that revolves on the matter of the
                      implementation and interpretation of existing company policies,
                      which per the last par. of Art. 217 of the Labor Code, as amended,
                      is one within the jurisdictional ambit of the grievance procedure
                      under the CBA and thereafter, if unresolved, one proper for
                      voluntary arbitration. This observation is re-entrenched by the
                      fact, that complainant claims
                      _______________
                         6   Annex “F” of Complainant’s Position Paper; Rollo, p. 60.
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                          7   Entitled “Manila Midtown Hotel, Complainant, vs. Rowena Loleng y Sanares,
                      et al., Respondents.”
                          8   Annex “I” of Petition; Rollo, pp. 133-144.
                                                                                                    611
                                             VOL. 290, JUNE 5, 1998                                 611
                                    Maneja vs. National Labor Relations Commission
                      she is a member of NUWHRAIN with an existing CBA with
                      respondent hotel.
                         On this9
                                  score alone, this case should have been dismissed
                      outright.”
                      Despite the aforequoted preliminary statement, the Labor
                      Arbiter still assumed jurisdiction “since Labor Arbiters
                      under Article 217 of the same Labor Code, are conferred
                      original and exclusive jurisdiction of all termination case
                      (sic).” The dispositive portion of the decision states that:
                      “WHEREFORE, premises                      considered,   judgment    is   hereby
                      rendered as follows:
                              (1) Declaring complainant’s dismissal by respondent hotel as
                                  illegally effected;
                              (2) Ordering     respondent to   immediately    reinstate
                                  complainant to her previous position without loss of
                                  seniority rights;
                              (3) Ordering further respondent to pay complainant the full
                                  backwages due her, which is computed as follows:
                      3/23/90-10/31/90=7.26/mos.                                            
                      P2,540 x 7.26/mos.                                               P18,440.40
                      11/1/90-1/7/91=2.23/mos.                                              
                      P3,224.16 x 2.23/mos.                                             7,189.87
                      1/8/91-4/29/92=15.7/mos.                                              
                      P3,589.16 x 15.7/mos.                                            56,349.89
                                                                                       P81,980.08
                              (4) Moreover, respondent is ordered to pay the 13th month
                                  pay due the complainant in the amount of P6,831.67
                                  including moral and exemplary damages of P15,000.00
                                  and P10,000.00 respectively, as well as attorney’s fees
                                  equivalent to ten (10) percent of the total award herein in
                                  the amount of P11,381.17;
                              (5) Finally, all other claims are hereby dismissed for lack of
                                  merit.
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                          “SO ORDERED.”
                      _______________
                         9   Rollo, p. 136.
                                                                                          612
                      612             SUPREME COURT REPORTS ANNOTATED
                              Maneja vs. National Labor Relations Commission
                      Private respondent appealed the decision to the respondent
                      commission on the ground inter alia that the Labor Arbiter
                      erred in “assuming jurisdiction over the illegal dismissal
                      case after finding that the case falls within the
                      jurisdictional ambit of the grievance procedure under the   10
                      CBA, and if unresolved,
                                     11
                                                proper for voluntary arbitration.”
                      An Opposition was filed by petitioner.
                                                        12
                         In the assailed Resolution dated June 3, 1994,
                      respondent NLRC dismissed the illegal dismissal case for
                      lack of jurisdiction of the Labor Arbiter because the same
                      should have instead been subjected to voluntary
                      arbitration.                               13
                         Petitioner’s motion for reconsideration was denied by
                      respondent NLRC for lack of merit.
                         In this petition for certiorari, petitioner ascribes to
                      respondent NLRC grave abuse of discretion in—
                              1. Ruling that the Labor Arbiter was without
                                 jurisdiction over the illegal dismissal case;
                              2. Not ruling that private respondent is estopped by
                                 laches from questioning the jurisdiction of the
                                 Labor Arbiter over the illegal dismissal case;
                              3. Reversing the decision of the Labor Arbiter based
                                 on a technicality notwithstanding the merits of the
                                 case.
                      Petitioner contends that Article 217(a)(2) and (c) relied
                      upon by respondent NLRC in divesting the labor arbiter of
                      jurisdiction over the illegal dismissal
                                                       14
                                                              case, should be read
                      in conjunction with Article 261 of the Labor Code. It is the
                      view
                      _______________
                         10   Annex “J” of Petition; Rollo, pp. 145-155.
                         11   Annex “K” of Petition; Rollo, pp. 157-164.
                         12   See note 1; Annex “A” of Petition; Rollo, pp. 28-32.
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                         13   Annex “B” of Petition; Rollo, pp. 33-39.
                         14    Article 261. Jurisdiction of Voluntary Arbitrators or panel of
                      Voluntary Arbitrators.—The Voluntary Arbitrator or panel of Voluntary
                      Arbitrators shall have original and exclusive jurisdiction to hear and
                      decide all unresolved grievances arising from the interpretation or
                      implementation of the Collective Bargaining Agreement
                                                                                          613
                                        VOL. 290, JUNE 5, 1998                           613
                              Maneja vs. National Labor Relations Commission
                      of petitioner that termination cases arising from the
                      interpretation or enforcement of company personnel
                      policies pertaining to violations of Offenses Subject to
                      Disciplinary Actions (OSDA), are under the jurisdiction of
                      the voluntary arbitrator only if these are unresolved in the
                      plant-level grievance machinery. Petitioner insists that her
                      termination is not an unresolved grievance as there has
                      been no grievance meeting between the NUWHRAIN union
                      and the management. The reason for this, petitioner adds,
                      is that it has been a company practice that termination
                      cases are not anymore referred to the grievance machinery
                      but directly to the labor arbiter.
                         In its comment, private respondent argues that the
                      Labor Arbiter should have dismissed the illegal dismissal
                      case outright after finding that it is within the
                      jurisdictional ambit of the grievance procedure. Moreover,
                      private respondent states that the issue of jurisdiction may
                      be raised at any time and at any stage of the proceedings
                      even on appeal, and is not in estoppel by laches as
                      contended by the petitioner.
                         For its part, public respondent, through the Office of the
                      Solicitor General, cited the ruling of this Court in Sanyo15
                      Philippines Workers Union-PSSLU vs. Cañizares                in
                      dismissing the case for lack of jurisdiction of the Labor
                      Arbiter.
                         The legal issue in this case is whether or not the Labor
                      Arbiter has jurisdiction over the illegal dismissal case.
                         The respondent Commission, in holding that the Labor
                      Arbiter lacks jurisdiction to hear the illegal dismissal case,
                      cited as basis therefor Article 217 of the Labor Code, as
                      amended by Republic Act No. 6715. It said:
                      “While it is conceded that under Article 217(a), Labor Arbiters
                      shall have original and exclusive jurisdiction over cases involving
                      “termination disputes,” the Supreme Court, in a fairly recent case
                      ruled:
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                      _______________
                         and those arising from the interpretation or enforcement of company
                      personnel policies referred to in the immediately preceding article.
                         15   211 SCRA 361 [1992].
                                                                                             614
                      614            SUPREME COURT REPORTS ANNOTATED
                               Maneja vs. National Labor Relations Commission
                      ‘The procedure introduced in RA 6715 of referring certain grievances
                      originally and exclusively to the grievance machinery, and when not
                      settled at this level, to a panel of voluntary arbitrators outlined in CBAs
                      does not only include grievances arising from the interpretation or
                      implementation of the CBA but applies as well to those arising from the
                      implementation of company personnel policies. No other body shall take
                      cognizance of these cases. x x x.’ (Sanyo vs. Cañizares, 211 SCRA 361,
                              16
                      372)”
                      We find that the respondent Commission has erroneously
                      interpreted the aforequoted portion of our ruling in the
                      case of Sanyo, as divesting the Labor Arbiter of jurisdiction
                      in a termination dispute.
                         Article 217 of the Labor Code gives us the clue as to the
                      jurisdiction of the Labor Arbiter, to wit:
                      Article 217. Jurisdiction of Labor Arbiters and the Commission.—
                      a) Except as otherwise provided under this Code the Labor
                      Arbiters shall have original and exclusive jurisdiction to hear and
                      decide within thirty (30) calendar days after the submission of the
                      case by the parties for decision without extension even in the
                      absence of stenographic notes, the following cases involving all
                      workers, whether agricultural or non-agricultural:
                              1. Unfair labor practices cases;
                              2. Termination disputes;
                              3. If accompanied with a claim for reinstatement, those cases
                                 that workers may file involving wages, rates of pay, hours
                                 of work and other terms and conditions of employment;
                              4. Claims for actual, moral, exemplary and other forms of
                                 damages arising from the employer-employee relations;
                              5. Cases arising from any violation of Article 264 of this
                                 Code, including questions involving the legality of strikes
                                 and lockouts;
                              6. Except claims for Employees Compensation, Social
                                 Security, Medicare and maternity benefits, all other
                                 claims,
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                      _______________
                         16   Resolution of respondent commission dated June 3, 1994; Rollo, pp. 28-32.
                                                                                                      615
                                           VOL. 290, JUNE 5, 1998                                     615
                                   Maneja vs. National Labor Relations Commission
                                  arising from employer-employee relations, including those
                                  of persons in domestic or household service, involving an
                                  amount exceeding five thousand pesos (P5,000.00)
                                  regardless of whether accompanied with a claim for
                                  reinstatement.
                         b) The Commission shall have exclusive appellate jurisdiction
                      over all cases decided by Labor Arbiters.
                         c) Cases arising from the interpretation or implementation of
                      collective bargaining agreements and those arising from the
                      interpretation or enforcement of company personnel policies shall
                      be disposed of by the Labor Arbiter by referring the same to the
                      grievance machinery and voluntary arbitration as may be
                      provided in said agreements.”
                      As can be seen from the aforequoted Article, termination
                      cases fall under the original and exclusive jurisdiction of
                      the Labor Arbiter. It should be noted, however, that in the
                      opening paragraph there appears the phrase: “Except as
                      otherwise provided under this Code x x x.” It is paragraph
                      (c) of the same Article which respondent Commission has
                      erroneously interpreted as giving the voluntary arbitrator
                      jurisdiction over the illegal dismissal case.
                         However, Article 217(c) should be read in conjunction
                      with Article 261 of the Labor Code which grants to
                      voluntary arbitrators original and exclusive jurisdiction to
                      hear and decide all unresolved grievances arising from the
                      interpretation or implementation of the collective
                      bargaining agreement and those arising from the
                      interpretation or enforcement of company personnel
                      policies. Note the phrase “unresolved grievances.” In the
                      case at bar, the termination of petitioner is not an
                      unresolved grievance.
                         The stance of the Solicitor General in the Sanyo case is
                      totally the reverse of its posture in the case at bar. In
                      Sanyo, the Solicitor General was of the view that a
                      distinction should be made between a case involving
                      “interpretation or implementation of Collective Bargaining
                      Agreement” or interpretation or “enforcement” of company
                      personnel policies, on the one hand and a case involving
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                      termination, on the other hand. It argued that the
                      dismissal of the private respondents does not involve an
                      “interpretation or implementation” of a Collec-
                                                                                          616
                      616            SUPREME COURT REPORTS ANNOTATED
                             Maneja vs. National Labor Relations Commission
                      tive Bargaining Agreement or “interpretation or
                      enforcement” of company personnel policies but involves
                      “termination.” The Solicitor General further said that
                      where the dispute is just in the interpretation,
                      implementation or enforcement stage, it may be referred to
                      the grievance machinery set up in the Collective
                      Bargaining Agreement or by voluntary arbitration. Where
                      there was already actual termination, i.e., violation   17
                                                                                  of
                      rights, it is already cognizable by the Labor Arbiter. We
                      fully agree with the theory of the Solicitor General in the
                      Sanyo case, which is radically opposite to its position in
                      this case.
                         Moreover, the dismissal of petitioner does not fall within
                      the phrase “grievances arising from the interpretation or
                      implementation of collective bargaining agreement and
                      those arising from the interpretation or enforcement of
                      company personnel policies,” the jurisdiction of which
                      pertains to the grievance machinery or thereafter, to a
                      voluntary arbitrator or panel of voluntary arbitrators. It is
                      to be stressed that under Article 260 of the Labor Code,
                      which explains the function of the grievance machinery and
                      voluntary arbitrator, “(T)he parties to a Collective
                      Bargaining Agreement shall include therein provisions
                      that will ensure the mutual observance of its terms and
                      conditions. They shall establish a machinery for the
                      adjustment and resolution of grievances arising from the
                      interpretation or implementation of their Collective
                      Bargaining Agreement and those arising from the
                      interpretation or enforcement of company personnel
                      policies.” Article 260 further provides that that parties to a
                      CBA shall name or designate their respective
                      representative to the grievance machinery and if the
                      grievance is unsettled in that level, it shall automatically
                      be referred to the voluntary arbitrators designated in
                      advance by the parties to a CBA of the union and the
                      company. It can thus be deduced that only disputes
                      involving the union and the company shall be referred
                                                                         18
                                                                                  to
                      the grievance machinery or voluntary arbitrators.
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                      _______________
                         17   Sanyo, supra.
                         18   Ibid.
                                                                                              617
                                         VOL. 290, JUNE 5, 1998                              617
                               Maneja vs. National Labor Relations Commission
                      In the case at bar, the union does not come into the picture,
                      not having objected or voiced any dissent to the dismissal of
                      the herein petitioner. The reason for this, according to
                      petitioner is that “the practice in said Hotel in cases of
                      termination is that the latter cases are not referred
                      anymore to the grievance committee;” and that “the
                      terminated employee who wishes to question the legality of
                      his termination usually goes to the Labor Arbiter for
                      arbitration, whether the termination arose from the
                      interpretation or enforcement
                                             19
                                                        of the company personnel
                      policies or otherwise.”
                         As we ruled in Sanyo, “Since there has been an actual
                      termination, the matter falls within the jurisdiction of the
                      Labor Arbiter.” The aforequoted doctrine is applicable
                      foursquare in petitioner’s case. The dismissal of the
                      petitioner does not call for the interpretation or
                      enforcement of company personnel policies but is a
                      termination dispute which comes under the jurisdiction of
                      the Labor Arbiter.
                         It should be explained that “company personnel policies”
                      are guiding principles stated in broad, long-range terms
                      that express the philosophy or beliefs of an organization’s
                      top authority regarding personnel matters. They deal with
                      matters affecting efficiency and well-being of employees
                      and include, among others, the procedure in the
                      administration of wages, benefits, promotions, transfer and
                      other personnel movements which are usually not spelled
                      out in the collective agreement. The usual source of
                      grievances, however, are the   20
                                                           rules and regulations
                      governing disciplinary actions.                             21
                         The case of Pantranco North Express, Inc. vs. NLRC
                      sheds further light on the issue of jurisdiction where the
                      Court cited the Sanyo case and quoted the decision of
                      therein Labor Arbiter Olairez in this manner:
                      _______________
                         19   Petition, Rollo, p. 15.
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                         20   San Miguel Corp. vs. National Labor Relations Commission, G.R. No.
                      108001, March 15, 1996, 255 SCRA 133, 140; citing C.A. Azucena, The
                      Labor Code With Comments And Cases, Vol. II, 1993 ed., p. 272.
                         21   G.R. No. 95940, July 24, 1996, 259 SCRA 161, 167-168.
                                                                                            618
                      618            SUPREME COURT REPORTS ANNOTATED
                              Maneja vs. National Labor Relations Commission
                      “In our honest opinion we have jurisdiction over the complaint on
                      the following grounds:
                          First, this is a complaint of illegal dismissal of which original
                      and exclusive jurisdiction under Article 217 has been conferred to
                      the Labor Arbiters. The interpretation of the CBA or enforcement
                      of the company policy is only corollary to the complaint of illegal
                      dismissal. Otherwise, an employee who was on AWOL, or who
                      committed offenses contrary to the personnel policies (sic) can no
                      longer file a case of illegal dismissal because the discharge is
                      premised on the interpretation or enforcement of the company
                      policies (sic).
                          Second. Respondent voluntarily submitted the case to the
                      jurisdiction of this labor tribunal. It adduced arguments to the
                      legality of its act, whether such act may be retirement and/or
                      dismissal, and prayed for reliefs on the merits of the case. A
                      litigant cannot pray for reliefs on the merits and at the same time
                      attacks (sic) the jurisdiction of the tribunal. A person cannot have
                      one’s cake and eat it too. x x x.”
                      As to the second ground, petitioner correctly points out that
                      respondent NLRC should have ruled that private
                      respondent is estopped by laches in questioning the
                      jurisdiction of the Labor Arbiter.
                         Clearly, estoppel lies. The issue of jurisdiction was
                      mooted by herein private respondent’s active participation
                      in the22 proceedings below. In Marquez vs. Secretary of
                      Labor, the Court said:
                      “x x x. The active participation of the party against whom the
                      action was brought, coupled with his failure to object to the
                      jurisdiction of the court or quasi-judicial body where the action is
                      pending, is tantamount to an invocation of that jurisdiction and a
                      willingness to abide by the resolution of the case and will bar said
                      party from later on impugning the court or body’s jurisdiction.”
                      _______________
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                         22   171 SCRA 337, 346; cited in Stolt-Nielsen Marine Services (Phils.),
                      Inc. vs. NLRC, G.R. No. 105396, November 19, 1996, 264 SCRA 307, 319.
                                                                                             619
                                       VOL. 290, JUNE 5, 1998                               619
                              Maneja vs. National Labor Relations Commission
                                                              23
                      In the assailed Resolution, respondent NLRC     24
                                                                         cited La
                      Naval Drug Corporation vs. Court of Appeals in holding
                      that private respondent is not in estoppel. Thus,
                      “The operation of the principle of estoppel on the question of
                      jurisdiction seemingly depends upon whether the lower court
                      actually had jurisdiction or not. If it had no jurisdiction, but the
                      case was tried and decided upon the theory that it had
                      jurisdiction, the parties are not barred, on appeal, from assailing
                      such jurisdiction, for the same ‘must exist as a matter of law, and
                      may not be conferred by consent of the parties or by estoppel’ (5
                      C.J.S., 861-863). However, if the lower court had jurisdiction, and
                      the case was heard and decided upon a given theory, such, for
                      instance, as that the court had no jurisdiction, the party who
                      induced it to adopt such theory will not be permitted, on appeal, to
                      assume an inconsistent position-that the lower court had
                      jurisdiction. Here, the principle of estoppel applies. The rule that
                      jurisdiction is conferred by law, and does not depend upon the will
                      of the parties, has no bearing thereon.” (Italics ours)
                      Again, the respondent NLRC has erroneously interpreted
                      our ruling in the La Naval case. Under the said ruling,
                      estoppel lies in this case. Private respondent is estopped
                      from questioning the jurisdiction of the Labor Arbiter
                      before the respondent NLRC having actively participated
                      in the proceedings before the former. At no time before or
                      during the trial on the merits did private respondent assail
                      the jurisdiction of the Labor Arbiter. Private respondent
                      took the cue only from the preliminary statement in the
                      decision of the Labor Arbiter, which was a mere obiter, and
                      raised the issue of jurisdiction before the Commission. It
                      was then too late. Estoppel had set in.
                         Turning now to the merits of the case, We uphold the
                      ruling of the Labor Arbiter that petitioner was illegally
                      dismissed.
                         The requisites of a valid dismissal are (1) the dismissal
                      must be for any of the causes expressed in Article 282 of
                      the
                      _______________
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                         23   Annex “C” of Petition; Rollo, pp. 41-42.
                         24   236 SCRA 78.
                                                                                                       620
                      620             SUPREME COURT REPORTS ANNOTATED
                              Maneja vs. National Labor Relations Commission
                                         25
                      Labor Code, and (2) the employee must be given        26
                                                                                 an
                      opportunity to be heard and to defend himself. The
                      substantive and procedural laws must be strictly complied
                      with before a worker can be dismissed from his
                      employment because what is at stake    27
                                                                  is not only the
                      employee’s position but his livelihood.
                         Petitioner’s dismissal was grounded on culpable
                      carelessness, negligence and failure to follow specific
                      instruction(s) or established procedure(s) under OSDA
                      1.11; and, having forged or falsified official document(s)
                      under OSDA 2.01.
                         Private respondent blames petitioner for failure to follow
                      established procedure in the hotel on a guest’s request for
                      long distance calls. Petitioner, however, explained that the
                      usual or established procedures are not followed by the
                      operators and hotel employees when circumstances
                      warrant. For instance, the RLDC forms and the deposits
                      are brought by the page boy directly to the operators
                      instead of the cashiers if the
                      _______________
                         25   Article 282 of the Labor Code provides:
                      ART. 282. Termination by employer.—An employer may terminate an employment
                      for any of the following causes:
                          (a) Serious misconduct or willful disobedience by the employee of the lawful
                               orders of his employer or representative in connection with his work;
                          (b) Gross and habitual neglect by the employee of his duties;
                          (c) Fraud or willful breach by the employee of the trust reposed in him by his
                               employer or duly authorized representative;
                          (d) Commission of a crime or offense by the employee against the person of his
                               employer or any immediate member of his family or duly authorized
                               representative, and
                          (e) Other causes analogous to the foregoing.
                         26   Midas Touch Food Corp. vs. NLRC, G.R. No. 111639, July 29, 1996,
                      259 SCRA 652, 657; citing Mapalo vs. NLRC, 233 SCRA 266; Pizza
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                      Hut/Progressive Development Corp. vs. NLRC, G.R. No. 117059, January
                      29, 1996, 252 SCRA 531, 535 citing Mapalo vs. NLRC, supra.
                         27   Midas Touch Food Corp. vs. NLRC, supra., 657.
                                                                                          621
                                       VOL. 290, JUNE 5, 1998                            621
                              Maneja vs. National Labor Relations Commission
                      latter are busy and cannot attend to the same.
                      Furthermore, she avers that the telephone operators are
                      not conscious of the serial numbers in the RLDCs and at
                      times, the used RLDCs are recycled. Even the page boys do
                      not actually check the serial numbers of all RLDCs in one
                      batch, except for the first and the last.
                         On the charge of taking of the money by petitioner, it is
                      to be noted that the second P500.00 deposit made by the
                      Japanese guest Ieda was later discovered to be inserted in
                      the folder for cancelled calls with deposit and official
                      receipts. Thus, there exists no basis for personal
                      appropriation by the petitioner of the money involved.
                      Another28 reason is the alleged tampering of RLDC No.
                      862406. While petitioner and her co-operator Loleng
                      admitted that they indeed altered the date appearing
                      therein from February 15, 1990 to February 13, the same
                      was purposely made to reflect the true date of the
                      transaction without any malice whatsoever on their part.
                         As pointed out by Labor Arbiter Oswald B. Lorenzo,
                      thus:
                      “The specifics of the grounds relied by respondent hotel’s
                      dismissal of complainant are those stated in Annex ‘F’ of the
                      latter’s POSITION PAPER, which is the Notice of Dismissal,
                      notably:
                              1. OSDA 2.01—Forging, falsifying official document(s)
                              2. OSDA 1.11—Culpable negligence or failure to follow
                                 specific instruction(s) or established procedure(s)
                         On this score, we are persuaded by the complainant’s
                      arguments that under OSDA 1.11, infractions of this sort is not
                      without qualifications, which is, that the alleged culpable
                      carelessness, negligence or failure to follow instruction(s) or
                      established procedure(s), RESULTING IN LOSS OR DAMAGE
                      TO COMPANY PROPERTY. From the facts obtaining in this
                      case, there is no quantum of proof whatsoever, except the general
                      allegations in respondent’s POSITION PAPER and other
                      pleadings that loss or damage to company property resulted from
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                      the charged infraction. To our mind, this is where labor tribunals
                      should come in and help correct
                      _______________
                         28   Annex “C” of Private Respondent’s Position Paper; Rollo, p. 90.
                                                                                                622
                      622                 SUPREME COURT REPORTS ANNOTATED
                                   Maneja vs. National Labor Relations Commission
                      interpretation of company policies which in the enforcement
                      thereof wreaks havoc to the constitutional guarantee of security of
                      tenure. Apparently, the exercise of little flexibility by complainant
                      and co-employees which is predicated on good faith should not be
                      taken against them and more particularly against the
                      complainant herein. In this case, to sustain the generalized
                      charge of respondent hotel under OSDA 1.11 would unduly be
                      sanctioning the imposition of too harsh a penalty—which is
                      dismissal.
                         In the same tenor, the respondent’s charge under OSDA 1.11
                      on the alleged falsification of private document is also with a
                      qualification, in that the alleged act of falsification must have
                      been done ‘IN SUCH A WAY AS TO MISLEAD THE USER(S)
                      THEREOF, Again, based on the facts of the complained act, there
                      appeared on one to have been misled on the change of date from
                      RLDC #862406 FROM 15 TO 13 February 1990.
                         As a matter of fact, we are in agreement with the
                      jurisprudence cited by VIRGILIO M. PATAG, the 2nd Asst. City
                      Prosecutor of the City of Manila, who exculpated complainant
                      MANEJA from the charges of falsification of private documents
                      and qualified theft under IS No. 90-11083 and marked Annex ‘H’
                      of complainant’s POSITION PAPER, when he ruled that an
                      altercation which makes the document speak the truth cannot be
                      the foundation of a criminal action. As to the charge of qualified
                      theft, we too are of the finding, like the city prosecutor above-
                      mentioned that there was no evidence on the part of MANEJA to
                      have unlawfully taken the P500.00 either from the hotel or from
                      guest IEDA on 13 February 1990 and moreover, we too, find no
                      evidence that complainant MANEJA had the intention to         29
                                                                                       profit
                      thereby nor had misappropriated the P500.00 in question.”
                      Given the factual circumstances of the case, we cannot
                      deduce dishonesty from the act and omission of petitioner.
                      Our norms of social justice demand that we credit
                      employees with the presumption
                                                  30
                                                          of good faith in the
                      performance of their duties, especially petitioner who has
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                      served private respondent since 1985 up to 1990 without
                      any tinge of dishonesty
                      _______________
                         29   Decision of Labor Arbiter; Rollo, pp. 140-141.
                         30   Pizza Hut/Progressive Development Corp. vs. NLRC, supra., 539.
                                                                                               623
                                        VOL. 290, JUNE 5, 1998                             623
                              Maneja vs. National Labor Relations Commission
                      and was even31
                                        named “Model Employee” for the month of
                      April, 1989.
                         Petitioner has been charged with a very serious offense
                      —dishonesty. This can irreparably wreck her life as an
                      employee for no employer will take to its bosom a dishonest
                      employee. Dismissal is the supreme penalty that can be
                      meted to an employee and its imposition32
                                                                   cannot be justified
                      where the evidence is ambivalent. It must, therefore, be
                      based on a clear and not on an ambiguous or ambivalent
                      ground. Any ambiguity or ambivalence on the ground relied
                      upon by an employer in terminating the services of an
                      employee denies the latter his full right to contest its
                      legality. Fairness
                                     33
                                            cannot countenance such ambiguity or
                      ambivalence.
                         An employer can terminate the services of an employee
                      only for valid and just causes which must be supported by
                      clear and convincing evidence. The employer has the
                      burden of proving 34
                                           that the dismissal was indeed for a valid
                      and just cause. Failure to do   35
                                                         so results in a finding that
                      the dismissal was unjustified.
                         Finding that there was no just cause for dismissal of
                      petitioner, we now determine if the rudiments of due
                      process have been duly accorded to her.
                         Well-settled is the dictum that the twin requirements of
                      notice and hearing constitute the essential elements of due
                      process in the dismissal of employees. It is a cardinal rule
                      in our
                      _______________
                         31   Rollo, pp. 91-92.
                         32   Pizza Hut/Progressive Development Corp. vs. NLRC, supra., 540.
                         33   Pantranco North Express, Inc. vs. NLRC, G.R. No. 114333, January
                      24, 1996, 252 SCRA 237, 243-244.
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                         34   Philippine Long Distance Telephone Company vs. NLRC, et al., G.R.
                      No. 99030, July 31, 1997.
                         35   Uy vs. National Labor Relations Commission, G.R. No. 117983,
                      September 6, 1996, 261 SCRA 505, 512; citing Labor Code, Article 277(b);
                      Golden Donuts, Inc. vs. National Labor Relations Commission, 230 SCRA
                      153 [1994]; Reyes & Lim Co., Inc. vs. National Labor Relations
                      Commission, 201 SCRA 772, 775 [1991].
                                                                                           624
                      624            SUPREME COURT REPORTS ANNOTATED
                              Maneja vs. National Labor Relations Commission
                      jurisdiction that the employer must furnish the employee
                      with two written notices before the termination of
                      employment can be effected: (a) the first apprises the
                      employee of the particular acts or omissions for which his
                      dismissal is sought; and, (b) the second informs the
                      employee of the employer’s decision to dismiss him. The
                      requirement of a hearing, on the other hand, is complied
                      with as long as there was an opportunity to be heard,  36
                                                                                and
                      not necessarily that an actual hearing was conducted.
                         In the case at bar, petitioner and her co-operator Loleng
                      were issued a memorandum on March 7, 1990. On March
                      11, 1990, they submitted their written explanation thereto.
                      On March 20, 1990, a written report was made with a
                      recommendation that the offenses committed by them were
                      covered by OSDA 1.11 and 2.01. Thereafter, on March 23,
                      1990, petitioner was served with a notice of dismissal for
                      said violations effective April 1, 1990.
                         An examination of the record reveals that no hearing
                      was ever conducted by private respondent before petitioner
                      was dismissed. While it may be true that petitioner
                      submitted a written explanation, no hearing was actually
                      conducted before her employment was terminated. She was
                      not accorded the opportunity to fully defend herself.
                         Consultations or conferences may not be a substitute for
                      the actual holding of a hearing. Every opportunity and
                      assistance must be accorded to the employee by the
                      management to enable him to prepare 37adequately for his
                      defense, including legal representation. Considering that
                      petitioner denied having allegedly taken the second
                      P500.00 deposit of the Japanese guest which was
                      eventually found; and, having made the alteration of the
                      date on the second RLDC merely to reflect the true date of
                      the transaction, these circumstances should have at least
                      warranted a separate hearing to enable petitioner to fully
                      ventilate her side. Absent
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                      _______________
                         36   Pono vs. NLRC, et al., G.R. No. 118860, July 17, 1997.
                         37   Ibid.
                                                                                             625
                                        VOL. 290, JUNE 5, 1998                              625
                              Maneja vs. National Labor Relations Commission
                      such hearing,
                               38
                                      petitioner’s right to due process was clearly
                      violated.
                         It bears stressing that a worker’s employment is
                      property in the constitutional sense. He cannot be deprived
                      of his work without due process of law. Substantive due
                      process mandates that an employee can only be dismissed
                      based on just or authorized causes. Procedural due process
                      requires further that he can only be dismissed after he has
                      been given an opportunity to be heard. The import of due
                      process necessitates the compliance of these two aspects.
                         Accordingly, we hold that the labor arbiter did not err in
                      awarding full backwages in view of his finding that
                      petitioner was dismissed without just cause and without
                      due process.                                       39
                         We ruled in the case of Bustamante vs. NLRC that the
                      amount of backwages to be awarded to an illegally
                      dismissed employee must be computed from the time he
                      was dismissed to the time he is actually reinstated, without
                      deducting the earnings he derived elsewhere pending the
                      resolution of the case.
                         Petitioner is likewise entitled to the thirteenth-month
                      pay. Presidential Decree No. 851, as amended by
                      Memorandum Order No. 28, provides that employees are
                      entitled to the thirteenth-month pay benefit regardless of
                      their designation and40 irrespective of the method by which
                      their wages are paid.
                         The award of moral and exemplary damages to
                      petitioner is also warranted where there is lack of due
                      process in effecting the dismissal.
                      ______________
                         38   Ibid.
                         39   G.R. No. 111651, November 28, 1996, cited in the case of Philippine
                      Long Distance Telephone Company vs. NLRC, et al., G.R. No. 99030, July
                      13, 1997; Mabeza vs. NLRC, Hotel Supreme, et al., G.R. No. 118506, April
                      18, 1997.
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                         40   Jackson Building Condominium Corporation vs. National Labor
                      Relations Commission, G.R. No. 111515, July 14, 1995, 246 SCRA 329,
                      333.
                                                                                              626
                      626            SUPREME COURT REPORTS ANNOTATED
                              Maneja vs. National Labor Relations Commission
                      Where the termination of the services of an employee is
                      attended by fraud or bad faith on the part of the employer,
                      as when the latter knowingly made false allegations of a
                      supposed valid cause when none existed, moral and
                      exemplary
                              41
                                   damages may be awarded in favor of the
                      former.
                         The anti-social and oppressive abuse of its right to
                      investigate and dismiss its employees constitute a violation
                      of Article 1701 of the New Civil Code which prohibits acts
                      of oppression by either capital or labor against the other,
                      and Article 21 on human relations. The grant of moral
                      damages to the employees by reason of such conduct on the
                      part of the company is sanctioned by Article 2219, No. 10 of
                      the Civil Code, which allows recovery
                                                        42
                                                             of such damages in
                      actions referred to in Article 21.
                         The award of attorney’s fees amounting to ten percent
                      (10%) of the total award by the labor arbiter is justified
                      under Article 111 of the Labor Code.
                         WHEREFORE, premises considered, the petition is
                      GRANTED and the assailed resolutions of the respondent
                      National Labor Relations Commission dated June 3, 1994
                      and October 20, 1995 are hereby REVERSED AND SET
                      ASIDE. The decision dated May 29, 1992 of the Labor
                      Arbiter is therefore REINSTATED.
                         SO ORDERED.
                                   Regalado (Chairman) and Puno, JJ., concur.
                                   Melo, J., On leave.
                                   Mendoza, J., In the result.
                        Petition granted, resolutions reversed and set aside.
                      Decision of Labor Arbiter reinstated.
                      _______________
                         41   Lirag Textile Mills, Inc. vs. Court of Appeals, et al., 63 SCRA 374,
                      385, April 14, 1975.
                         42   Philippine Refining Co., Inc. vs. Garcia, 81 SCRA 107, September 27,
                      1966.
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                                                                                          627
                                        VOL. 290, JUNE 5, 1998                           627
                                                   People vs. Feloteo
                         Notes.—A meeting merely for the purpose of informing
                      an employee about her questionable “work report,” and to
                      serve her a written notice detailing her infractions in her
                      “work sheet” is not the hearing contemplated by law. (Pono
                      vs. National Labor Relations Commission, 275 SCRA 611
                      [1997])
                         While it is true that the essence of due process is simply
                      an opportunity to be heard or, as applied in administrative
                      proceedings, an opportunity to explain one’s side, meetings
                      in the nature of consultation and conferences, however,
                      may not be valid substitutes for the proper observance of
                      notice and hear-ing. (Equitable Banking Corporation vs.
                      National Labor Relations Commission, 273 SCRA 352
                      [1997])
                                                        ——o0o——
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