[LABOR 2 | ATTY.
NOLASCO] 1
9. KING OF KINGS TRANSPORT v. MAMAC
G.R. No. 166208 June 29, 2007
Velasco, JR., J.
Digest by: Santos
TOPIC: Procedural Due Process AND Ample Opportunity to be Heard
PARTIES:
Employer: King of Kings Transport INC (KKTI)
Union A: Kaisahan ng mga Kawani sa King of Kings
DOCTRINE:
RECIT-READY:
Respondent herein was the president of the union Kaisahan ng mga Kawani
sa King of Kings (KKKK) whereby they had an agreement wherein KKKK
would a submit “Conductor’s Trip Report” after each trip. They were also
made to submit an “Irregularity Report” once an irregularity is discovered.
One day, the company noticed an irregularity in one of the trips of their bus
line. They immediately asked respondent to explain such discrepancy.
Respondent Mamac justified the report as a mere error because the bus
experienced an accident that day (broken windshield) and it was made to cut
its trip short. After such explanation, the company terminated the
employment of respondent. Respondent Mamac argued that he was not
given due process and that his dismissal was illegal. The Supreme Court
held that KKTI did not afford Respondent Mamac due process, it failed to
comply with the provisions of the Labor Code. There was no written notice
charging Respondent of committing an infraction.
FACTS:
 Respondent was the president of the union Kaisahan ng mga
Kawani sa King of Kings which was registered with the DOLE.
 Its employer, King of Kings Transport Inc., is a bus company
 Respondent was required to accomplish a “Conductor’s Trip Report”
and submit it to the company after each trip.
 The report indicates the ticket opening and closing for the particular
day of duty. After submission, the company audits the reports.
 Once an irregularity is discovered, the company issues an
"Irregularity Report" against the employee, indicating the nature and
details of the irregularity. Thereafter, the concerned employee is
asked to explain the incident by making a written statement or
countera=davit at the back of the same Irregularity Report. . After
considering the explanation of the employee, the company then
makes a determination of whether to accept the explanation or
impose upon the employee a penalty for committing an infraction.
That decision shall be stated on said Irregularity Report and will be
furnished to the employee.
 On October 28, 2001, the Conductor’s Report of respondent had an
irregularity.
 The company found that respondent declared several sold tickets as
returned tickets causing KKTI to lose an income of Php890. No
irregularity report was submitted.
 Nevertheless, the company asked respondent to explain
 According to the respondent:
o The erroneous report was unintentional
o During the trip, the windshield of the bus was smashed, and
they had to cut short the trip to make an immediate report to
the police
o Because of such accident, he got confused in making the trip
report
 A month later, respondent received a letter terminating his
employment – fraud on the part of respondent
 Respondent filed for illegal dismissal among other things and that his
dismissal was effected without due process
 LA: dismissed respondent’s complaint
 NLRC: modified the judgment, KKTI was made to pay respondent
Php10,000
 CA: Petitioner failed to comply with the required procedural due
process
 Arguments of the petitioner:
o KKTI admits that it had failed to provide respondent with a
"charge sheet." However, it maintains that it had
substantially complied with the rules, claiming that
"respondent would not have issued a written explanation had
he not been informed of the charges against him."
ISSUE/S:
1. WON the respondent was afforded due process AND the opportunity
to be heard
HELD: NO. The Supreme Court held that petitioner did not comply with the
procedural rules as regards to termination of employees as provided in the
Labor Code.
(GO2) 2018 - 2019

ANSWER:
To clarify the following should be considered in terminating the services of
employees:
(1) The first written notice to be served on the employees should contain
the specific causes or grounds for termination against them, and a directive
that the employees are given the opportunity to submit their written
explanation within a reasonable period. "Reasonable opportunity" under the
Omnibus Rules means every kind of assistance that management must
accord to the employees to enable them to prepare adequately for their
defense. This should be construed as a period of at least five (5) calendar
days from receipt of the notice to give the employees an opportunity to study
the accusation against them, consult a union official or lawyer, gather data
and evidence, and decide on the defenses they will raise against the
complaint. Moreover, in order to enable the employees to intelligently
prepare their explanation and defenses, the notice should contain a detailed
narration of the facts and circumstances that will serve as basis for the
charge against the employees. A general description of the charge will not
suffice. Lastly, the notice should specifically mention which company rules, if
any, are violated and/or which among the grounds under Art. 282 is being
charged against the employees.
(2) After serving the first notice, the employers should schedule and
conduct a hearing or conference wherein the employees will be given the
opportunity to: (1) explain and clarify their defenses to the charge against
them; (2) present evidence in support of their defenses; and (3) rebut the
evidence presented against them by the management. During the hearing or
conference, the employees are given the chance to defend themselves
personally, with the assistance of a representative or counsel of their choice.
Moreover, this conference or hearing could be used by the parties as an
opportunity to come to an amicable settlement.
(3) After determining that termination of employment is justified, the
employers shall serve the employees a written notice of termination
indicating that: (1) all circumstances involving the charge against the
employees have been considered; and (2) grounds have been established to
justify the severance of their employment.
IN THIS CASE:
First, respondent was not issued a written notice charging him of committing
an infraction. The law is clear on the matter. A verbal appraisal of the
[LABOR 2 | ATTY. NOLASCO] 2
charges against an employee does not comply with the first notice
requirement, consultations or conferences are not a substitute for the actual
observance of notice and hearing.
Second, even assuming that petitioner KKTI was able to furnish respondent
an Irregularity Report notifying him of his offense, such would not comply
with the requirements of the law. We observe from the irregularity reports
against respondent for his other offenses that such contained merely a
general description of the charges against him. The reports did not even
state a company rule or policy that the employee had allegedly violated.
Likewise, there is no mention of any of the grounds for termination of
employment under Art. 282 of the Labor Code. Thus, KKTI’s "standard"
charge sheet is not sufficient notice to the employee.
Third, no hearing was conducted. Regardless of respondent’s written
explanation, a hearing was still necessary in order for him to clarify and
present evidence in support of his defense. Moreover, respondent made the
letter merely to explain the circumstances relating to the irregularity in his
October 28, 2001 Conductor’s Trip Report. He was unaware that a dismissal
proceeding was already being effected. Thus, he was surprised to receive
the November 26, 2001 termination letter indicating as grounds, not only his
October 28, 2001 infraction, but also his previous infractions.
CONCLUSION: the Company failed to afford Respondent Mamac the due
process it deserves as provided in the Labor Code
DISPOSITIVE PORTION / RULING:
WHEREFORE, the petition is PARTLY GRANTED and the September 16,
2004 Decision of the CA is MODIFIED by deleting the award of backwages
and 13th-month pay. Instead, petitioner KKTI is ordered to indemnify
respondent the amount of thirty thousand pesos (PhP 30,000) as nominal
damages for failure to comply with the due process requirements in
terminating the employment of respondent.
(GO2) 2018 - 2019