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submitted the report to Captain Buton, the latter allegedly smelled a faint odor of
whisky and asked respondent if he had been drinking, to which respondent truthfully
replied that he drank a little whisky and was willing to take an alcohol test. Respondent
claimed that Captain Buton shrugged off his offer to take an alcohol test; but as soon
as he left respondent, Captain Buton made a logbook entry dated September 7, 2010,
recommending respondent's immediate replacement.[11]
For their part, petitioners averred that respondent was dismissed for just cause. The
Free Lady Crew Behavior Report[12] (Crew Behavior Report) dated September 8, 2010
prepared by Captain Buton showed that respondent was grossly negligent as he failed
to observe the safety precautions during the mooring and unmooring operations;
displayed arrogance towards his co-employees on board; and was caught intoxicated,
in violation of the company policies, instructions, and stipulations of the Philippine
Overseas Employment Administration (POEA) contract. Thus, fearing that the safety of
the vessel and/or crew may be at risk with the continued presence of respondent,
petitioners were constrained to ask that respondent be relieved invoking Section 33 of
the POEA Standard Employment Contract (POEA-SEC).[13]
The Labor Arbiter's Ruling
In a Decision[14] dated January 31, 2011, the Labor Arbiter (LA) dismissed
respondent's complaint for lack of merit. The LA found that petitioners had discharged
the burden to prove the existence of just cause for respondent's termination with the
submission of the Crew Behavior Report duly attested by three officers reflecting
respondent's unjustified failure to perform his duties and adhere to company policy
against intoxication.[15] The LA also ruled that the petitioners were justified in not
furnishing respondent a notice of dismissal considering that there was a clear and
existing danger to the safety of the crew and the vessel.[16]
Aggrieved, respondent appealed to the NLRC. [17]
The NLRC Ruling
On September 15, 2011, the NLRC rendered a Decision,[18] the dispositive portion of
which reads:
WHEREFORE, premises considered, the Decision dated December 21, 2010
is MODIFIED to the effect that nominal damages is awarded in
complainant's favor in the amount of Fifty Thousand Pesos (P50,000.00).
SO ORDERED.[19]
While the NLRC affirmed the existence of just cause in terminating respondent's
employment,[20] it found petitioners remiss in their duty to afford respondent the
requisite notice and hearing prior to his dismissal.[21] According to the NLRC, the
issuance of a notice and the observance of a hearing would have been prudent as it
was disputable whether respondent posed a clear and imminent danger to the safety of
elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/63428
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