Facts: In 1995, Petitioner Tropical Biological Phils., Inc. (Tropical, a subsidiary of Lakpue Group of Companies, hired respondent Ma. Lourdes Belga (Belga) as bookkeeper and later promoted as Assistant Cashier.
In 2001, Belga brought her daughter to the Philippine General Hospital (PGH) for treatment of bronchopneumonia. On her way to the hospital, she dropped by the house of Ms. Vegafria, Technical Manager of Tropical and handed documents worked on and gave notice of her emergency leave.
While in the hospital, Belga, who is pregnant experienced labor pains and gave birth on the same day. Two days after giving birth, the company summoned her to report for work but failed to comply. A follow up memorandum was given to her informing of the scheduled clarificatory conference. When the respondent attended the conference, she was terminated and dismissed that day.
Belga thus filed a complaint with the Public Assistance and Complaint Unit (PACU) of the Department of Labor and Employment (DOLE). Attempts to settle the case failed, hence the parties brought the case before the NLRC-NCR.
Tropical alleged that the work of Belga was not merely clerical; concealed her pregnancy from the company; did not apply for leave and her absence disrupted Tropicals financial transactions.
The petitioner terminated her employment on the grounds of: (1) Absence without official leave for 16 days; (2) Dishonesty, for deliberately concealing her pregnancy; and (3) Insubordination, for her deliberate refusal to heed and comply with companys memoranda.
The LA ruled in favour Belga and found that she was illegally dismissed.
Tropical appealed to the NLRC, which reversed and set aside the findings of the LA.
Issue: Whether the respondent was illegally dismissed by the petitioner on the ground of serious misconduct.
Ruling: We have defined misconduct as a transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, wilful in character, and implies wrongful intent and not mere error in judgment. The misconduct to be serious must be of such grave and aggravated character and not mere error in judgment. The misconduct to be serious must be of such grave and aggravated character and not merely trivial and unimportant. Such misconduct, however serious, must, nevertheless, be in connection with the employees work to constitute just cause for his separation.
Belgas failure to formally inform Tropical of her pregnancy can not be considered as grave misconduct directly connected to her work as to constitute just cause for her separation. Thus, Belga is entitled to be reinstated to her former or equivalent position and to the payment of full backwages.
The instant petition is Denied.
422 Coca-Cola Bottlers, Phils., Inc. v. Kapisanan ng Malayang Manggagawa sa Coca- Cola-FFW 452 SCRA 480 Serious Misconduct/Dishonesty
Facts: The Petitioner Coca-Cola Bottlers Phil., Inc. is a domestic corporation engaged in the manufacture, sale and distribution of softdrinks, with plants in Southern parts of the country.
In 1982, the petitioner hired Florentino Ramirez as driver-helper. He became a member of the respondent Kapisanan ng Malayang Manggagawa Sales Force Union, the bargaining representative of the rank-and-file employees.
In 1996, he was the shop steward of the union at the companys Batangas Sales Office. This time the route of the salesman was unavailable, thus temporarily substituted by Ramirez for routes M11, AMC and LPR. Thereafter, the OIC of Batangas Sales Office informed the OIC of DDS-District 44, that a review of the copies of invoices related to the transactions of the respondent revealed discrepancies as to the number of cases, empty bottles, and the amounts in selected Sales Invoices.
Ramirez and the Union filed a Complaint for unfair labor practice and illegal dismissal against the company for the alleged shortage in the bodega and violations in his official functions and designation.
He claimed that he was terminated by the respondents in utter bad faith, as the decision on the said termination was arrived without just and valid cause.
The petitioner company alleged that the dismissal of Ramirez was based on facts unearthed during the formal investigation, and that he was guilty of serious misconduct, a valid ground for his termination.
Issue: Whether the respondent was legally dismissed by the petitioner on the ground of dishonesty.
Ruling: The Court ruled that an employer enjoys a wide latitude of discretion in the promulgation of policies, rules, and regulations on work-related activities of the employees so long as they are exercised in good faith for the advancement of the employers interest and not for the purpose of defeating or circumventing the rights of the employees under special laws or under valid agreements. Company policies and regulations are generally valid and binding on the parties and must be complied with until finally revised or amended, unilaterally or preferably through negotiation, by competent authority. For misconduct or improper behaviour to be a just cause for dismissal, the same must related to the performance of the employees duties and must show that he has become unfit to continue working for the employer.
The designation of the respondent, who was employed as driver-helper, but temporarily assigned as route salesman for a period of three (3) days, did not automatically make him an employee on whom the petitioner reposed trust and confidence. Despite his additional duties, the respondent remained a driver-helper of the petitioner. Thus respondent cannot be dismissed pursuant to Article 282 of the Labor Code.
We agree with the CA. As the Court ruled in Pepsi-Cola Distributors of the Philippines, Inc. V. NLRC ...Moreover, private respondent was already penalized with suspension in some of the infractions imputed to him in this case, like sleeping while on route rides, incomplete accomplishment of sales report and his failure to achieve sales commitments. He cannot again be penalized for those misconduct. The foregoing acts cannot be added to support the imposition of the ultimate penalty of dismissal which must be based on clear and not on ambiguous and ambivalent ground.
Considering the factual backdrop in this case, the Court find and rule that for his infractions, the respondent should be meted a suspension of two (2) months.
423 Genuino Ice Company v. Magpantay G.R. No. 147790 Serious Misconduct
Facts: Alfonso Magpantay (respondent) was employed by Genuino Ice Co., Inc. (petitioner) as machine operator.
In 1996, the respondent filed against petitioner a Complaint for illegal dismissal for the alleged valid ground for he led an illegal strike at its sister company, Genuino Agro Industrial Development Corporation which brought losses. This act was tantamount to serious misconduct or willful disobedience, gross and habitual neglect of duties, and breach of trust. Subsequently included insubordination among the grounds.
Respondent appealed from the LA. The NLRC, in its Decision dated June 30, 1999, sustained the findings of the LA. All appeals are denied.
Issue: Whether the respondents actions on holding a strike, four-day absences a habitual and neglect of duty and insubordination be valid grounds for his dismissal.
Ruling: On the issue of illegal dismissal, both the Labor Arbiter and the NLRC were one in concluding that petitioner had just cause for dismissing respondent, as his act of leading a strike at petitioners sister company.
Under Article 282 of the Labor Code, as amended, an employer may terminate an employment for serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work. The employer has the burden of proving that the dismissal was for a just cause; failure to show this would necessarily mean that dismissal was unjustified and, therefore, illegal.
Neglect of duty, to be a ground for dismissal, must be both gross and habitual. Gross negligence connotes want of care in the performance of ones duties for a period of time, depending upon the circumstances. On the other hand, fraud and wilful neglect of duties imply bad faith on the employee of in failing to perform his job to the detriment of the employer and the latters business. Thus, the single or isolated act of negligence does not constitute a just cause for the dismissal of the employee.
Thus, the Court agrees with the CA that respondents four-day absence is not tantamount to a gross and habitual neglect of duty. His absences did not contribute to the detriment of GICIs operations and caused it irreparable damage.
On the issue of illegal strike, the petitioners memorandum showed glaring violations of his right to substantive and procedural due process and reveal the true circumstances of his dismissal as failure to abide with the managements decision to transfer him. The rule is that the transfer of an employee ordinarily lies within the ambit of the employers prerogatives and exercises it for a valid reason and according to the requirement of its business, provided such transfer does not result in demotion in rank or diminution of the employees salary, benefits, and other privileges.
The Court cannot accept the proposition that when an employee opposes his employers decision to transfer him to another work place, there being no bad faith or underhanded motives on the part of either party, it is the employees wishes that should be made to prevail.
Willful disobedience, or insubordination as otherwise branded in this case, as a just cause fro dismissal of an employee, necessitates the concurrence of; (1) the employees assailed conduct must have been willful, as shown by a wrongful and perverse attitude; and (2) the order violated must have been reasonable, lawful, made known to the employee and must pertain to duties which he had been engaged to discharge.
Being the case, respondent cannot adamantly refuse to abide by the order of transfer without exposing himself the risk of being dismissed. Hence, his dismissal was for a just cause and in accordance with Article 282 (a) of the Labor Code and is not entitled to reinstatement and benefits.
424 Premiere Dev. Bank v. Mantal G.R. No. 167716 485 SCRA 234 (2006) Serious Misconduct
Facts: Respondent is a regular employee of petitioners Cubao branch, as accounting clerk since 1996.
In 2000, the branch manager, Rosario Detalla, instructed respondent on the confirmation of bank guarantee of GIA Fuel and Lubricant Dealer who has a credit line and account with petitioner bank. However, upon verification from the head office, Crisostomo was informed that the bank guarantee was spurious.
On the same day, Elsie Escudero Mantal was summoned and required to write down all she knew on the above-mentioned bank guarantee. Respondent also received memorandum placing her under preventive suspension effective immediately for 30 days. During the investigation, Detalla admitted issuing the falsified bank guarantee.
Detalla tendered her irrevocable resignation. Respondent was asked to execute a resignation letter but declined. The following day, she received Notice of Termination of her employment.
Mantal filed a Complaint for illegal suspension, dismissal and unpaid salary and other benefits.
In 2002, the LA hold the petitioner liable for illegal suspension and dismissal and ordered for the reinstatement of the respondent.
The NLRC reversed the LAs decision and dismissed the complaint for lack of merit.
Issue: Whether respondent was validly suspended and dismissed from her position as accounting clerk.
Ruling: Misconduct is improper or wrongful conduct. It is the transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, wilful in character, and implies wrongful intent and not mere error in judgment. Under Article 282 of the Labor Code, the misconduct, to be a just cause for termination, must be of such grave and aggravated character, not merely of a trivial or unimportant nature. For serious misconduct to warrant the dismissal of an employee, it (1) must be serious; (2) must relate to the performance of the employees duty; and (3) must show that the employee has become unfit to continue working for the employer.
In JGB and Associates, Inc. v NLRC, the Court held that gross negligence connotes want of care in the performance of ones duties for a period of time, depending upon the circumstances. Fraud and wilful neglect of duties imply bad faith of the employee in failing to perform his job to the detriment of the employer and the latters business.
In the case at bar, respondent cannot be held liable for serious misconduct or gross negligence. No independent evidence was presented to prove her willful conspiracy with Detalla. Petitioner even admitted that there is no direct evidence that respondent benefited from the falsified bank guarantee. Liability for the incident lay solely with Detalla, who patently breached the trust and confidence of petitioner. Respondent merely followed the orders of the bank manager which appeared to be regular. Further, the nature of respondents job does not include processing of bank loans and guarantees. Her work as accounting clerk refers only to the opening of deposits and processing of withdrawals. The alleged infraction was not within the scope of her job function.
The decision and resolution of the Court of Appeals are Affirmed.
425 Molina v. Pacific Plans, Inc. 484 SCRA 498 (2008) Serious Misconduct
Facts: Pacific Plans, Inc. (PPI) is a domestic corporation engaged in the business of selling pre-need plans nationwide. Its Metro Manila regional offices were divided into two sales division; the North and South.
In 1994, PPI hired Agripino Molina as REhional Manager for the Metro Manila VI, where he performed both administrative and marketing functions. Later he was promoted as Assistant VP.
In 2000, there was a considerable decrease in the sales output production of PPIs Metro Manila VI. This was due to the alleged of recruiting and pirating activities of the petitioner among the companys associates to join in Caritas; solicited contributions from them for the bill and later ask for reimbursement from the company; and acts of misdemeanour on several occasions, such as coming to the office under the influence of liquor, initiating smear campaign against PPI, and other conflicting interests. PPIs upon knowledge of such, ask the petitioner for the written explanation of his unbecoming of an officer and was issued a preventive suspension.
Molina denied all allegations to him. Complaint was filed against PPI and its executives for his illegal suspension and dismissal with claim for monetary benefits.
Molina admitted having had drinking sessions but only after office hours.
According to the NLRC, the charges of coming to the office under the influence of liquor and making PPI reimbursement paid by his co-employees were not supported by the records.
In this case, the LA declared that there as substantial evidence on record warranting the dismissal of petitioner as Assistant VP for serious misconduct in office. The NLRCs disagreed with LA and reversed its decision. CA concurred with the findings of LA. In view of the discordance between the findings of LA and CA and NLRC. There is a need for the Court to review the factual findings and the conclusions based on findings.
Issue: Whether the petitioner was validly dismissed from his employment on the grounds of serious misconduct.
Ruling: As the Court ruled in Diamond Motors Corporation vs. Court of Appeals; Misconduct has been defined as improper or wrong conduct the transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, unlawful in character and implies wrongful intent and not mere error of judgment.
The misconduct to be serious must be of such grave and aggravated character and not merely trivial and unimportant. Such misconduct, however, serious must nevertheless, be in connection with employers work to constitute just cause for separation. The petitioner does not deny having had heated exchange of words with his Regional Manager.
In this case, the Court are not persuaded that Caritas is a business competitor of respondent.
The Court finds, however that the evidence adduced by respondent insufficient to warrant the petitioners dismissal from employment.
There is no evidence on record to prove that respondent expressly prohibited its Sales Associates from selling for Caritas. Neither is there evidence on record to prove that Caritas prohibited its sales associates from selling pre-need plans of respondent.
426 Aris (Phil.), Inc. V. NLRC G.R. No. 97817 233 SCRA 59 (1994) Serious Misconduct
Facts: In 1988, Arnel Santos, when questioned by Eufemia Bautista, a canteen helper, for his use of somebodys identification card (ID), flared up and shouted invectives (wala kang pakialam! Kung gusto mo, itapon ko itong mga pagkain ninyo) at her. When he noticed that some people were staring at him rather menacingly and he acted rude towards them and slapped Eufemia which cause her to fall and suffer slight contusions. The guard on duty submitted report to company officials. Eufemia then filed a Complaint with Jesus Perez, the personnel manager of Aris, against Santos.
A memorandum was issued to Santos requiring him to explain. He admitted his misconduct due to drunkenness.
In 1988, the personnel manager issued a letter of termination from employment of Santos for gross misconduct seriously violative of the company rules and regulations.
Eufemia filed with the Lupong Tagapayapa her complaint against Santos. Eventually filed to MTC for slight physical injuries.
Santos and the Confederation of Filipino Workers-Aris Philippines Workers Union filed complaint for the illegal dismissal. The LA order for the reinstate complainant Santos to his position without backwages.
The NLRC further observed: the slapping/punching incident happened in the canteen. The misconduct of the complainant, therefore, was not connected with his employment. As a matter of fact, said incident did not, in any way, disrupt the operations of respondent. Consequently, the ultimate penalty of dismissal is too severe.
Issue: Whether the petitioner was illegally dismissed on the ground of serious misconduct.
Ruling: It is not disputed that private respondent has done, indeed he has admitted to having committed, a serious misconduct. In order to constitute a just cause for dismissal, however, the act complained of must be related to the performance of the duties of the employee such as would show him to be thereby unfit to continue working for the employer. The Court condone the guilt of private respondent, we, nevertheless, are concluded by the factual finding of the NLRC that his misconduct is not work-related and did not disrupt the operations of the company. The petition is Dismissed, and the temporary restraining order issued by the Court is Lifted. 427 NLRC v. Salgarino G.R. No.164376 497 SCRA 361, 375-376 July 31, 2006 Serious Misconduct
Facts: In April 1988, respondent Maria Bernadette A. Salgarino was employed by Petitioner St. Jude Catholic School as Mathematics teacher for third and fourth year high school students.
In 1999, the respondent went on maternity leave. While on leave she conducted make-up tests in her house for the improvement of grades of the students without permission from the petitioners.
A substitute teacher is assigned to look over her class and prepared for the grading sheets as well. The records showed that some of the fourth year students obtained failing grades in Math. Subsequently, respondent Salgarino, still on leave, requested the substitute teacher Capistrano to bring to their house the grading sheets and marked passing grade of 75% to all those students with failing grades out of valid projects, make-up tests and humanitarian reasons.
Upon return of the grading sheets, the substitute teacher noticed the additions made by the respondent thus referred the matter to the Acting Director/Principal of petitioner school.
The Acting Director/Principal directed Salgarino to submit herself to the panel for the investigation of the alleged tampered school records in violation of school policies and committed misconduct by increasing the grades of her students and the same was admitted.
The panel concluded that respondent altered her students grades while she was on leave that showed a case of education malpractice or grave misconduct and grossly prejudicial to the good name of the school.
The respondent has violated Article XV, Section 79, Basis for Grading and Article XVII, Section 94 (b) on negligence in keeping school records, or tampering with or falsification of the same; xxx of the Manual of Regulations for Private Schools.
On these bases the committee ruled for the termination of the respondent.
The respondent filed Complaint for illegal dismissal with the Labor Arbiter. The LA in its decision ruled for illegal dismissal as there was no valid or just cause.
Issue: Whether the private respondent Salgarino has been illegally dismissed the fact her admission of the changing of failing grades to passing marks of her students while on maternity leave.
Ruling: Truly, then, respondent had committed a misconduct. However, such misconduct is not serious enough to warrant her dismissal from employment under paragraph (a) of Article 282 of the Labor Code.
Misconduct is defined as improper or wrong conduct. It is the transgression of some established and definite rule of action, a forbidden act, a dereliction of duty, wilful in character and implies wrongful intent and not a mere error of judgment.
Mere error in judgment cannot qualify as misconduct (much less a serious one) because of lack of wrongful intent that the act or conduct complained of has violated some established rules or policies. It is equally important and required that the act or conduct must have been performed with wrongful intent.
As caveat, it would do well for respondent to act more conscientiously and with more regard to the policies.
The Court affirmed the CAs ruling and ordered the petitioners to reinstate respondent to her former position or its equivalent without lost of seniority rights or privileges plus her full backwages.
429 Domingo v. Rayala 546 SCRA 90 (2008) Sexual Harassment
Facts: In 1998, Ma. Lourdes T. Domingo, then Stenographic Reporter III at the NLRC, filed a Complaint for sexual harassment against Rayala before Secretary of the DOLE.
After the experienced sexual harassment by Chairman Rayala on her during office work, she filed for leave of absence and asked for immediate transfer. Thereafter, she filed the Complaint on the bais of AO No. 250, the Rules and Regulations Implementing RA 7877 in the DOLE.
Upon receipt of the Complaint, the Secretary referred to the Office of the President, Rayala being a presidential appointee. Investigation was conducted based on the allegations.
The Committee found Rayala guilty of the offense charged and recommended imposition of the minimum penalty.
In 2000, the OP issued AO 119 portions of which read:
Upon a careful scrutiny of the evidence on record, I concur with the findings of the Committee as to the culpability of the respondent (Rayala), the same having been established by clear and convincing evidence.
What aggravates respondents situation is the undeniable circumstance that he took advantage of his position as the superior of the complainant. Respondent occupies the highest position in the NLRC, being its Chairman. It was incumbent upon respondent to set an example to the others as to see to it that his subordinates work efficiently in accordance with Civil Service Rules and Regulations, and to provide them with healthy working atmosphere wherein co-workers treat each other with respect, courtesy and cooperation.
Issue: Whether the President of the Philippines validly dismiss respondent Rayala as Chairman of the NLRC for committing acts of sexual harassment.
Ruling: Basic in the law of public officers is the three-fold liability rule, which states that the wrongful acts or omissions of a public officer may give rise to civil, criminal and administrative liability. An action for each can proceed independently of the others. This rule applies with full force to sexual harassment.
The law penalizing sexual harassment in our jurisdiction is RA 7877. Section 7 on penalties, defines the criminal aspect of the lawful act of sexual harassment. The same section, in relation to Section 6, authorizes the institution of an independent civil action for damages and other affirmative relief.
The CA, thus, correctly, ruled that Rayalas culpability is not to be determined solely on the basis of Section 3, RA 7877, because he is charged with the administrative offense, not the criminal infraction, of sexual harassment.
It also held that Rayalas dismissal was proper. The CA pointed out that Rayala was dismissed for disgraceful and immoral conduct in violation of RA 6713, the Code of Conduct and Ethical Standards for Public Officials and Employees.
Indeed, (Rayala) was a public official, holding the Chairmanship of the NLRC, entrusted with the sacred duty of administering justice. That the acts complained of were committed within the sanctuary of (his) office compounded the objectionable nature of his wrongdoing. By daring placed the integrity of his office in disrepute. His disgraceful and immoral conduct warrants his removal from office.
430 Firestone Tire and Rubber Co. v. Lariosa G.R. No. 70479 148 SCRA 187 (1987) Dishonesty
Facts: Carlos Lariosa started working with Firstone in 1972 as a factory worker. When he was about to leave the company premises, he submitted himself to a routine check by the security guards and upon inspection, sixteen (16) wool flannel swabs, which are the property of the company found inside his bag. Firestone terminated petitioners services on the grounds of stealing company property and loss of trust.
Petitioner contends that by virtue the ruling on the penalty of preventive suspension was sufficient punishment for his violation.
The company contends that they have the right to dismiss private respondent from employment on the grounds of breach of trust or loss of confidence resulting from theft of company property.
Lariosa sued Firestone before the Ministry of Labor and Employment for illegal dismissal.
Issue: Whether the petitioner validly dismissed the private respondent on the grounds of loss of trust and dishonesty.
Ruling: Focuses on the legality of a dismissal by reason of acts of dishonesty in the handling of company property for what was involved is theft of sixteen (16) flannel swabs which were supposed to be used to clean certain machineries in the company. In fact, a careful review will readily reveal that the underlying reason behind sustaining the personam of dismissal or outright termination is that under circumstances obtaining in this case, there exists ample reason to distrust the employees concerned.
Additionally, it clearly appears that to retain the employee would, in the long run, endanger the company viability.
Court ruled that Firestone has valid grounds to dispense with the services of Lariosa and that the NLRC acted with grave abuse of discretion in ordering his reinstatement.
The petition is granted. The decision of the NLRC is reversed and set aside. The petitioner is directed to pay its dismissed worker, Carlos Lariosa separation pay or any collection bargaining agreement or company rules or practice, whichever is higher.