FACTS:
Respondents, who were carpenters working for petitioner D.M. Consunji, Inc., were hired for various construction projects and were considered project employees. Their termination from each project was reported to the Department of Labor and Employment (DOLE) in accordance with the applicable policy instruction and department order. Respondents filed a complaint against petitioner for illegal dismissal and non-payment of benefits. Petitioner argued that respondents' termination was justified as their services were terminated upon completion of the phases of work or the projects themselves. Respondents claimed they were illegally dismissed for lack of procedural due process. The Labor Arbiter dismissed respondents' complaint, and the NLRC affirmed the decision. Respondents filed a petition for certiorari with the Court of Appeals, which affirmed the NLRC's decision with the modification that petitioners pay nominal damages to respondents for lack of advance notice of their termination. Petitioner filed a motion for reconsideration, arguing that the award of nominal damages should be deleted. The motion was denied by the Court of Appeals.
ISSUES:
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Whether or not project employees are entitled to nominal damages for lack of advance notice of their dismissal.
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Whether Agabon v. NLRC is applicable to this case.
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Whether the lack of prior notice of termination constitutes a violation of procedural due process when the termination is brought about by the completion of the contract or phase thereof for which the employee was engaged.
RULING:
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No, project employees are not entitled to nominal damages for lack of advance notice of their dismissal. The Court held that project employees, upon completion of the phases of work for which they were engaged, may be terminated without prior notice of termination under Section 2 (III), Rule XXIII, Book V of the Omnibus Rules Implementing the Labor Code. The termination of project employees due to the completion of the project or phase thereof automatically terminates their employment, and the employer is only obligated to render a report to the DOLE on the termination of employment.
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No, Agabon v. NLRC is not applicable to this case. The Court distinguished this case from Agabon, which involved the dismissal of regular employees for abandonment of work. Unlike in Agabon, the respondents in this case were not terminated for just cause under Article 282 of the Labor Code. Their termination was due to the completion of the phases of work for which their services were engaged. Agabon required the employer to observe procedural due process for termination of employment based on just causes, which include notice and hearing. Since the respondents were not dismissed for just cause, the procedural due process requirements of notice and hearing are not applicable in their case.
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No, the lack of prior notice of termination does not constitute a violation of procedural due process when the termination is brought about by the completion of the contract or phase thereof for which the employee was engaged. The employer is not obligated to give advance notice in such cases.
PRINCIPLES:
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Project employees, upon completion of the project or phase thereof, may be terminated without prior notice of termination.
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The provision on termination of project employment in Section 1 (c), Rule XXIII, Book V of the Omnibus Rules Implementing the Labor Code applies to the termination of project employees.
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Agabon v. NLRC only applies to dismissals of regular employees for just cause under Article 282 of the Labor Code. The procedural due process requirements of notice and hearing in Agabon are not applicable to the termination of project employees.
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An employee cannot be dismissed by the contractor unless there is a just or authorized cause and the requirements of due process are followed, unless the dismissal is brought about by the completion of the project or contract for which the employee was engaged.
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A written notice specifying the grounds for termination must be served on the employee, along with a reasonable opportunity for the employee to explain his side, a hearing or conference wherein the employee can respond to the charges and present evidence, and a written notice of termination indicating that grounds have been established to justify termination.
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If the termination is brought about by the completion of the contract or phase thereof, no prior notice is required.