​Supra Multi-Services vs. Tambunting, August 3, 2016

Facts:
Petitioner SMSI is a domestic corporation engaged in furnishing its clients with manpower, such as janitors, drivers, messengers, and maintenance personnel. Petitioners Tambunting and Dabu are the President and Vice-President for Administration, respectively, of petitioner SMSI.
 
Respondent was hired as a rank and file employee of petitioner SMSI on March 13, 1994. When respondent's employment was terminated on December 21, 2005, she was holding the position of Accounting Supervisor with a monthly salary of PI 3,000.00.
 
On June 15, 2006, respondent filed before the Labor Arbiter a complaint for illegal dismissal against petitioners, seeking reinstatement and payment of backwages, overtime pay, holiday pay, premium pay for holiday and rest day, separation pay, unused leave pay, damages, and attorney's fees. Her complaint was docketed as NLRC-NCR Case No. 00-06-05066-06.
 
Issue:
Whether breach of trust did not merit the ultimate dismissal penalty of dismissal.

​Held:
For a valid dismissal of an employee, it is fundamental that the employer observe both substantive and procedural due process - the termination of employment must be based on a just or authorized cause and the dismissal can only be effected, after due notice and hearing. Petitioners' compliance with procedural due process in dismissing respondent is no longer being challenged in the present Petition; the issues for review of the Court herein essentially involve substantive due process.