Wensha vs Yung Case Digest

G. R. No. 185122 August 16, 2010 WENSHA SPA CENTER, INC. and/or XU ZHI JIE, Petitioners, vs. LORETA T. YUNG, Respondent. A petition for review on certiorari under discover 45 of the Rules of Court filed by an employer who was charged before the National wear Relations Commission (NLRC) for dismissing an employee upon the advice of a Feng Shui master. Facts Wensha Spa Center, Inc. (Wensha) in Quezon City is in the business of sauna bath and massage services. Xu Zhi Jie a. k. a. Pobby Co (Xu) is its president,3 respondent Loreta T. Yung (Loreta) was its administrative manager at the time of her termination from function.Loreta recounted that on August 10, 2004, she was asked to come forth her office because Xu and a Feng Shui master were exploring the premises. Later that twenty-four hour period, Xu asked Loreta to go on conk with pay for one month. She did so and returned on September 10, 2004. Upon her return, Xu and his wife asked her to liberate from Wensha because, accordin g to the Feng Shui master, her aura did non match that of Xu. Loreta refused but was apprised that she could no longer continue working at Wensha. That same afternoon, Loreta went to the NLRC and filed a faux pas for il jural dismissal against Xu and Wensha.Labor Arbiter (LA) Francisco Robles dismissed Loretas complaint for omit of merit. He found it more probable that Loreta was dismissed from her employment over receivable to Wenshas loss of trust and confidence in her. NLRC affirmed in its Resolution,9 citing its observation that Wensha was st mishap considering the proper action to take on the day Loreta left Wensha and filed her complaint. CA reversed the ruling of the NLRC on the ground that it severely abused its discretion in appreciating the factual bases that led to Loretas dismissal. The CA noted that there were irregularities and inconsistencies in Wenshas position.Issue Whether or not suppliant Xu Zhi Jie is solidarily credible with Wensha. Ruling Loretas secur ity of tenure is guaranteed by the make-up and the Labor Code. Under the security of tenure guarantee, a worker quarter only be terminated from his employment for cause and after due bear upon. The records are bereft of evidence that Loreta was duly informed of the charges against her and that she was given the prospect to respond to those charges prior to her dismissal. If there were indeed charges against Loreta that Wensha had to investigate, then it should have informed her of those charges and required her to explain her side.Wensha should also have kept records of the investigation conducted go Loreta was on leave. The law requires that two notices be given to an employee prior to a valid termination the first notice is to inform the employee of the charges against her with a example that she may be terminated from her employment and giving her reasonable hazard within which to explain her side, and the second notice is the notice to the employee that upon due devotion of all the circumstances, she is being terminated from her employment. This is a requirement of due process and clearly, Loreta did not receive whatever of those required notices.Nevertheless, the Court finds merit in the argument of petitioner Xu that the CA erred in ruling that he is solidarily liable with Wensha. Elementary is the rule that a corporation is invested by law with a personality separate and distinct from those of the persons composing it and from that of any other legal entity to which it may be related. Mere ownership by a single(a) stockholder or by another corporation of all or nearly all of the capital stock of a corporation is not of itself sufficient ground for disregarding the separate corporate personality. In compass cases, corporate directors and ships officers may be held solidarily liable with the corporation for the termination of employment only if done with malice or in bad cartel. no-count faith does not connote bad judgment or scorn it impor ts a dishonest purpose or some moral deceptiveness and conscious doing of wrong it means breach of a known craft through some motive or interest or ill will it fractionakes of the nature of fraud. In the subject ending, the CA concluded that petitioner Xu and Wensha are jointly and severally liable to Loreta.We have read the decision in its entirety but simply failed to come across any finding of bad faith or malice on the part of Xu. There is, therefore, no justification for such a ruling. To sustain such a finding, there should be an evidence on record that an officer or director acted maliciously or in bad faith in terminating the services of an employee. Moreover, the finding or indication that the dismissal was effectuate with malice or bad faith should be stated in the decision itself.