Cathay's Previous Dismissal
CATHAY PACIFIC AIRWAYS, LTD., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION and MARTHA Z. SINGSON, respondents.
Martha Z. Singson was surprised with the suddenness of the notification but nonetheless acknowledged it. Later, she met with Nipperess and inquired of possible employment that entailed only ground duties within the company. She was advised to meet with certain personnel who knew of the employment requirements in other departments in the company, and to await a possible offer from the company.
On 20 December 1991 Singson filed before the Labor Arbiter a complaint against CATHAY for illegal dismissal, with prayer for actual, moral and exemplary damages and attorney’s fees. Efforts on initial settlement having failed, trial followed.
Robert J. Nipperress and Dr. John G. Fowler appeared as witnesses for CATHAY. Nipperess confirmed that the decision to retire respondent was made upon the recommendation of Dr. Fowler. In turn, Dr. Fowler testified that the affliction of respondent with asthma rendered her unfit to fly as it posed aviation risks, i.e., asthma disabled her from properly performing her cabin crew functions, specifically her air safety functions.
On the other hand, Singson presented herself and Dr. Benjamin Lazo, a doctor in the country specializing in internal medicine and pulmonary diseases. She denied being afflicted with asthma at any point in her life, while Dr. Lazo confirmed the same declaring that at the time of his examination of Singson he found her to be of normal condition.
On the basis of the evidence presented before him, Labor Arbiter Pablo C. Espiritu Jr. declared CATHAY liable for illegal dismissal and ordered the airline to pay Singson HK$531,150.80 representing full back wages and privileges, HK$54,137.70 for undisputed benefits due her, HK$100,000.00 as actual damages, HK$500.00 as moral damages, HK$500.00 as exemplary damages, and HK$168,528.85 as attorney’s fees. Furthermore, CATHAY was ordered to reinstate Singson to her former position as airline stewardess without loss of seniority rights, benefits and privileges.
On 20 September 1999 the Court of Appeals reversed the ruling of the NLRC and reinstated the decision of the Labor Arbiter declaring Singson to have been illegally terminated. The appellate court anchored its judgment on the following findings: First, Dr. Fowler’s opinion about Singson’s medical condition was based on the personal examination of Dr. Fahy, and not his own. The appellate court held that a personal and prolonged examination of a patient was necessary and crucial before he or she could be properly diagnosed as afflicted with asthma,[7] and thus Dr. Fowler’s expert opinion was unreliable and mere hearsay. Second, CATHAY disregarded Sec. 8, Rule I, Book VI, of the Omnibus Rules Implementing the Labor Code[8] which requires a certification by a competent public health authority when disease is the reason for an employee’s separation from service, since it relied merely on the diagnosis of its company doctors, Dr. Fowler and Dr. Fahy. Third, the NLRC erroneously relied on the affidavit executed by Dr. Fahy since she was not personally presented as a witness to identify and testify on its contents. Fourth, respondent passed the medical examination required of prospective flight cabin attendants, the International Labor Organization’s Occupational Health and Safety in Civil Aviation examination, prior to her employment and found to be fit for flight-related service. Fifth, CATHAY failed to adequately prove the health standards required in aviation, particularly the non-qualification of flight attendants afflicted with asthma to flight-related service.[9]
Consequently, the appellate court awarded respondent full back wages with reinstatement, as well as moral exemplary damages, while deleting the award of actual damages reasoning that no undue damage inured to her since her husband nonetheless remained in Hongkong managing two (2) corporations. The appellate court however declared the option given to respondent to continue her employment as a ground stewardess with CATHAY to have been erroneously issued and consequently nullified the same.
CATHAY now argues that the Court of Appeals should have confined its inquiry to issues of want or excess of jurisdiction and grave abuse of discretion and not into the factual findings of the NLRC since the petition before it was made under Rule 65.
In the instant case, no certification by competent public health authority was presented by CATHAY. It dismissed Singson based only on the recommendation of its company doctors who concluded that she was afflicted with asthma. It did not likewise show proof that Singson’s asthma could not be cured in six (6) months even with proper medical treatment. On the contrary, when Singson returned to the company clinic on 3 September 1991 or five (5) days after her initial examination on 29 August 1991, Dr. Fahy diagnosed her condition to have vastly improved.
CATHAY could not take refuge in Clause 22 of the Conditions of Service it entered into with Singson. Although a certification by a competent public health authority is not required, still CATHAY is obliged to follow several steps under the Conditions of Service before terminating its employee. The pertinent part of Clause 22 thereof provides –
Clause 22. Sick Leave. – xxxx In case of serious illness the Company will grant sick leave with full pay for the first three months and with 2/3 of pay for the fourth month. Consideration will be given to granting the cabin crew further sick leave, either with pay or off pay up to a further two months, or retiring the cabin crew on medical ground xxxx
Thus, even on the assumption that asthma is a serious illness, this again would not excuse CATHAY from ignoring procedure specified in its employment contract with Singson. Under the contract, Cathay must first allow Singson to take a leave of absence and not to terminate her services right there and then. It is only after the employee has enjoyed four (4) months of sick leave that the option to retire the employee based on medical ground arises. In the instant case, Singson went to the company clinic on 29 August 1991. On 3 September 1991 she returned to the company clinic only to be told that “effective immediately” she was dismissed on medical grounds.
We agree with the Court of Appeals in its award of moral and exemplary damages to respondent. CATHAY summarily dismissed Singson from the service based only on the recommendation of its medical officers, in effect, failing to observe the provision of the Labor Code which requires a certification by a competent public health authority. Notably, the decision to dismiss Singson was reached after a single examination only. CATHAY’s medical officers recommended Singson’s dismissal even after having diagnosed her condition to have vastly improved. It did not make even a token offer for Singson to take a leave of absence as what it provided in its Contract of Service. CATHAY is presumed to know the law and the stipulation in its Contract of Service with Singson.
WHEREFORE, the Decision of the Court of Appeals dated 20 September 1999 declaring the dismissal of respondent Martha Z. Singson by petitioner CATHAY PACIFIC AIRWAYS, LTD. as illegal and ordering her reinstatement to her former or an equivalent position without loss of seniority rights, with full back wages and benefits, and to pay her HK$500.00 as moral damages, HK$500.00 as exemplary damages plus ten percent (10%) of the total monetary award as attorney’s fees, is AFFIRMED. The amounts received by respondent representing her six (6) months retirement gratuity and one (1) month pay in lieu of notice should be DEDUCTED from respondent’s computed back wages, with costs against petitioner.
SO ORDERED.
Mendoza, (Acting Chairman), Quisumbing, and De Leon, Jr., JJ., concur.
Buena, J., abroad on official business.