8/9/2019 55, Jaka vs. Pacot,

1/2

JAKA FOOD PROCESSING CORP VS. PACOT

G.R. No. 151378. March 28, 2005

Garcia, J.:

FACTS:

Darwin Pacot, Robert Parohinog, David Bisnar, Maron Do!ingo, Rhoe "escano and Jonathan

Cagabcab were earier hired b# $etitioner JA%A Foods Processing Cor$oration &JA%A, 'or short(

)nti the atter ter!inated their e!$o#!ent on A)g)st *+, ++- beca)se the cor$oration was in

dire 'inancia straits.

/t is not dis$)ted, however, that the ter!ination was e''ected witho)t JA%A co!$#ing with the

re0)ire!ent )nder Artice *12 o' the "abor Code regarding the service o' a written notice )$on

the e!$o#ees and the De$art!ent o' "abor and 3!$o#!ent at east one &( !onth be'ore the

intended date o' ter!ination.

Res$ondents se$arate# 'ied with the regiona Arbitration Branch o' the 4ationa "abor

Reations Co!!ission &4"RC( co!$aints 'or iega dis!issa, )nder$a#!ent o' wages and

non$a#!ent o' service incentive eave and 2th

!onth $a# against JA%A and its 5RD Manager

Rosana Casteo.

A'ter d)e $roceedings, the "abor Arbiter rendered a decision627

decaring the ter!ination iega

and ordering JA%A and its 5RD Manager to reinstate res$ondents with ') bac8 wages, and

se$aration $a# i' reinstate!ent is not $ossibe.

JA%A went on a$$ea to the 4"RC, which, in a decision dated A)g)st 29, +++,67

a''ir!ed in

toto that o' the "abor Arbiter.

JA%A 'ied a !otion 'or reconsideration. Acting thereon, the 4"RC ca!e o)t with another

decision !odi'#ing its earier decision.

/SS;3:

8/9/2019 55, Jaka vs. Pacot,

2/2

Present Case

Dis!issa was based on a ?)st ca)se Res$ondents were dis!issed d)e to

retrenchment, which is one o' the

a)thori@ed ca)ses )nder Artice *12 o' the

sa!e Code.

A dis!issa 'or !st ca!se )nder Artice

*1* i!$ies that the e!$o#ee concerned

has co!!itted, or is g)it# o', so!e

vioation against the e!$o#er Does not

re0)ire se$aration $a#

Dis!issa 'or an a!thor"#e$ ca!se )nder

Artice *12 does not necessari# i!$#

dein0)enc# or c)$abiit# on the $art o'

the e!$o#ee. /nstead, the dis!issa

$rocess is initiated b# the e!$o#ers

eercise o' his !anage!ent $rerogative

re0)ires se$aration $a#

The sanction sho)d be in the nat)re o'

inde!ni'ication or $enat# and sho)d

de$end on the 'acts o' each case, ta8ing

into s$ecia consideration the gravit# o' the

d)e $rocess vioation o' the e!$o#er.

/t convincing# showed that the res$ondenta$$eant cor$oration was in dire 'inancia

straits, which the co!$ainantsa$$eees 'aied to dis$)te. The osses inc)rred b# the

res$ondenta$$eant cor$oration are cear# s)bstantia and s)''icient# $roven with

cear and satis'actor# evidence. "i8ewise, it is estabished that JA%A 'aied to co!$# with the notice re0)ire!ent )nder

the sa!e Artice. The r)e, there'ore, is that in a cases o' b)siness cos)re or cessation o' o$eration or

)nderta8ing o' the e!$o#er, the a''ected e!$o#ee is entited to se$aration $a#

%&C%P'()N: when the cos)re o' b)siness or cessation o' o$erations is d)e to serio)s

b)siness osses or 'inancia reversesE d)# $roved, in which case, the right o' a''ected

e!$o#ees to se$aration $a# is ost 'or obvio)s reasons. According#, the res$ondents were ordered to $a# 'or the da!ages inc)rred b# the

res$ondents.