In 1996, a guard was hired by a security agency and assigned at the National Power Corp. (NPC) in Toledo City. In 2003, he was suspended for one month effective 8 May 2003 for not wearing the proper uniform while on duty. During this period, the NPC informed the security agency that it was no longer interested in maintaining the guard’s services and asked for a replacement. Thus, when the period for suspension lapsed and the guard was informed that he was removed from his post, he filed a case of illegal dismissal, illegal suspension, and non-payment of monetary benefits against the agency with the labor arbiter.

The labor arbiter ruled that the security guard was indeed illegally dismissed from service. The National Labor Relations Commission (NLRC), however, found that no illegal dismissal took place -

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