!"#"$"% '()(* +,,-% !,.) /0 1".

2, 345567

Celebes, exporLer of Luna, conLracLed wlLh enLa Manpower for manpower servlces, wlLh Lhe laLLer
recrulLlng respondenLs. 8espondenLs were refused enLrance aL Lhe uavao llsh orL Complex as Lhey
were LermlnaLed vla memo lssued by Celebes' offlce manager. 8espondenLs flled a complalnL for lllegal
dlsmlssal. 1he LA declded ln favor of respondenLs, on Lhe basls LhaL Lhe laLLer were employees of
Celebes performlng work necessary Lo Lhe buslness of processlng Luna, LhaL Lhey were regular
employees enLlLled Lo SecurlLy of 1enure, LhaL enLa was a labor-only conLracLor noL havlng subsLanLlal
caplLal, LhaL Celebes had conLrol over respondenLs, LhaL Lhe dlsmlssal was wlLhouL cause and due
process. nL8C reversed on Lhe basls LhaL Celebes was noL accorded due process. 8espondenLs flled a
peLlLlon for cerLlorarl wlLh Lhe CA, whlch awarded Lhem 30k each as nCMlnAL uAMACLS lC8
vlCLA1lCn Cl S1A1u1C8? uuL 8CCLSS. Powever Lhe CA found LhaL Lhe dlsmlssal of respondenLs was
for auLhorlzed cause, Lhe cessaLlon of operaLlon for prolonged lack of supply of Luna.

PLLu: SC afflrmed award of 30k nomlnal damages. 1houghL Lhe dlsmlssal was for Au1PC8lZLu cause,
procedural due process was noL observed ln Lhe LermlnaLlon of respondenLs slnce Lhe laLLer were noL
served Lhe requlred noLlce.

Celebes clalmed LhaL Lhe employer's flnanclal condlLlon musL be Laken lnLo accounL ln flxlng Lhe nomlnal
damages. Whlle peLlLloner ln Lhls case lncurred a caplLal lmpalrmenL whlch was much hlgher Lhan lLs
sLockholders' equlLy, Lhe same should noL be Lhe only basls for deLermlnlng Lhe amounL of nomlnal
damages LhaL should be awarded. 1he gravlLy of Lhe due-process vlolaLlon should be Laken lnLo speclal
conslderaLlon, and, [usL llke ln !aka, Lhe sancLlon should be sLlffer, because Lhe dlsmlssal process was
lnlLlaLed by Lhe employer's exerclse of lLs managemenL prerogaLlve. 1here was no bona flde aLLempL on
Lhe parL of peLlLloner Lo comply wlLh Lhe noLlce requlremenLs under ArLlcle 283 of Lhe Labor Code.
8espondenLs learned of Lhe exlsLence of such memorandum, whlch was posLed only ln Lhe guardhouse
on Lhe day Lhey were refused enLrance Lo Lhe gaLe. 1here was lndeed no noLlce aL all Lo respondenLs.
noLably, Lhere was noL even any reason sLaLed ln Lhe memorandum why Lhey were belng LermlnaLed.
We cannoL overemphaslze Lhe lmporLance of Lhe requlremenL of Lhe noLlce of LermlnaLlon, for we have
ruled ln a number of cases LhaL non-compllance LherewlLh ls LanLamounL Lo deprlvaLlon of Lhe
employee's rlghL Lo due process.

1he vlolaLlon of Lhe peLlLloners' rlghL Lo sLaLuLory due process by Lhe prlvaLe respondenL warranLs Lhe
paymenL of lndemnlLy ln Lhe form of nomlnal damages. 1he amounL of such damages ls addressed Lo
Lhe sound dlscreLlon of Lhe courL, Laklng lnLo accounL Lhe relevanL clrcumsLances. x x x We belleve Lhls
form of damages would serve Lo deLer employers from fuLure vlolaLlons of Lhe sLaLuLory due process
rlghLs of employees. AL Lhe very leasL, lL provldes a vlndlcaLlon or recognlLlon of Lhls fundamenLal rlghL
granLed Lo Lhe laLLer under Lhe Labor Code and lLs lmplemenLlng 8ules."13

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nomlnal damages are ad[udlcaLed ln order LhaL a rlghL of Lhe plalnLlff LhaL has been vlolaLed or lnvaded
by Lhe defendanL may be vlndlcaLed or recognlzed, and noL for Lhe purpose of lndemnlfylng Lhe plalnLlff
for any loss suffered by hlm.