AMA COMPUTER COLLEGE, respondents. G.R. No. 107234 August 24, 1998 Facts: Alfredo R. Bongar filed a complaint for illegal dismissal against AMA Computer College claiming that he had acquired the status of a permanent employee, and is entitled for tenurial security after having served for more than three years, which is the probationary period for teachers as provided for by the Manual of Regulations for Private Schools. AMA, however, maintained otherwise. It argued that petitioner’s severance from employment was due to the expiration of his contract. Another version proffered for the petitioner’s dismissal was his unsatisfactory performance. AMA asserted that the petitioner was hired on a contractual basis, and upon the termination of said contract without the same being renewed, the latter’s employment ceased. Hence, petitioner could not be considered to have been dismissed. Furthermore, AMA contented that petitioner could not be classified as a regular employee since he has served only for two years and nine and a half months, short of the three-year requirement. In a complaint filed by the petitioner against AMA, Labor Arbiter ricardo C. Nora, dated April 2, 1991, ordered respondents AMA Computer College and/or Amable r. Aguiluz V to pay complainant the aggregate sum of FIFTY THOUSAND FOUR HUNDRED (P50,400.00) PESOS representing complainant’s separation pay and backwages. All other issues are dismissed for lack of merit. AMA appealed the same with regard to the finding of illegal dismissal. Petitioner, on the other hand, argued that the labor arbiter erred, not only when he denied the prayer for reinstatement but also when he failed to award moral and exemplary damages. The National Labor Relations Commission, affirmed the decision by the labor arbitrer, dismissing the appeals of both parties for lack of merit. Issue: Whether or not there is illegal dismissal of the petitioner. Held: The supreme court granted the petition. AMA’s contention that the cause of petitioner’s dismissal was the alleged expiration of his contract was negated by the fact that the latter had rendered service for nearly four (4) years. Therefore, the contention that petitioner could not qualify as a regular employee for failure to comply with the three-year requirement is unavailing. Moreover, AMA’s allegation that petitioner’s employment was terminated due to the students’ evaluation of the latter lacks factual basis. What is evident is that the petitioner was not afforded the twin requirements of notice and hearing which constitute the essential elements of due process. Thus, for having been illegally dismissed, petitioner shall be entitled, not only to separation pay and full backwages, but additionally, to his retirement benefits pursuant to any collective bargaining agreement in the workplace or, in the absence thereof, as provided in Section 14, Book VI 8 of the Implementing Rules of the Labor Code.