23.) Kiamco

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Kiamco vs.

NLRC, PNOC & PNOC-EDC


GRN 129449 June 29, 1999
J. Bellosillo
Facts:
Private respondent PHILIPPINE NATIONAL OIL COMPANY
(PNOC), through its PNOC-ENERGY DEVELOPMENT CORPORATION (PNOCEDC), hired petitioner Cisell Kiamco as a project employee in its Geothermal
Agro-Industrial Plant Project in Valencia, Negros Oriental. The Contract of
Employment was for a period of five (5) months from 1 July 1992 to 30
November 1992. After the termination of the contract, a second one was
entered into by the parties for the period starting 1 December 1992 to 30
April 1993. Thereafter, Kiamco was again re-hired for six (6) months
spanning 1 May 1993 to 30 November 1993.
However, on 28 October 1993, Kiamco was placed under preventive
suspension from 1 November 1993 to 30 November 1993 in connection with
certain infractions he allegedly committed pending further investigation
thereof.
On 1 December 1993 Kiamco reported back to work but was prevented
by security guards from entering the company premises. On 27 May 1994
private respondent PNOC-EDC reported to the DOLE that petitioner Kiamco
was terminated on 1 November 1993 due to the expiration of his
employment contract and the abolition of his position. Thus, on 25 April
1994, Kiamco filed before the NLRC Sub-Regional Arbitration Branch a
complaint for illegal suspension and dismissal against the PNOC. On 30 June
1995, the Labor Arbiter dismissed the complaint for lack of merit since
Kiamco could not question his dismissal because it was in accordance with
his employment contract.
Kiamco appealed the decision of the Labor Arbiter to public respondent
NLRC which eventually declared that complainant-appellant is a project
employee of the respondent and not a regular employee, ruling out the
reinstatement of the complainant with full back wages.
Thus, this petition for certiorari filed by Kiamco before this Court.
Issue:
Whether an illegally dismissed project employee may be
entitled to reinstatement and payment of back wages.
Ruling:
The normal consequences of a finding that an employee
has been illegally dismissed are that the employee becomes entitled to
reinstatement to his former position without loss of seniority rights and the

payment of back wages (Santos v. NLRC).


Reinstatement restores the employee who was unjustly dismissed to
the position from which he was removed, that is, to his status quo ante
dismissal; while the grant of back wages allows the same employee to
recover from the employer that which he had lost by way of wages as a
result of his dismissal.
These rights of an employee do not depend on the status of his
employment prior to his dismissal but rather to the legality and validity of his
termination. The fact that an employee is not a regular employee does not
mean that he can be dismissed any time, even illegally, by his employer.
In termination cases, the burden of proving just and valid cause for
dismissing an employee from his employment rests upon the employer, and
the latter's failure to do so results in finding that the dismissal is unjustified.
Due process in termination cases requires the employer to furnish the worker
or employee sought to be dismissed with two (2) written notices, i.e., a
notice which apprises the employee of the particular acts or omissions for
which his dismissal is sought, and a subsequent notice which informs the
employee of the employer's decision to dismiss him (De la Cruz v. NLRC).
The failure of herein private respondents to comply with the due
process requirement further tainted Kiamco's dismissal with irregularity.
Additionally, it is established that the complainant's service is needed
until the full completion of the so-called Geothermal Agroindustrial
Demonstration Project. It is unrefuted on record that when complainant's
service was terminated, work in the project was still going on.
Assailed Resolution MODIFIED. PNOC and PNOC-EDC are ORDERED to
REINSTATE petitioner Cisell A. Kiamco immediately to his former position
without loss of seniority rights and privileges with full back wages from the
date of his dismissal until his actual reinstatement.

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