SECOND DIVISION
G.R. No. 215314, March 14, 2018
CENTRAL AZUCARERA DE BAIS AND ANTONIO STEVEN L. CHAN, Petitioners, v. HEIRS OF ZUELO APOSTOL, Respondents.
D E C I S I O N
REYES, JR., J.:
Time and again, the Court has put emphasis on the right of an employer to exercise its management prerogative in dealing with its company Is affairs, including the right to dismiss erring employees. It is a general principle of labor law to discourage interference with an employer's judgment in the conduct of his business. Even as the law is solicitous of the welfare of the employees, it also recognizes employers exercise of management prerogatives. As long as the company's exercise of judgment is in good faith to advance its interest and not for the purpose of defeating or circumventing the rights of employees under the laws or valid agreements, such exercise will be upheld.1
That the right side of the house was brightly lighted (sic) and the light came from an electrical line (trouble light with a 100W bulb) extension coming from the house. The lighting connection was hanging some distance from the house to the left side of the LANCER car, color white, which was parked after a pick-up vehicle, color black. The LANCER CAR was undergoing repairs on its left side. That Mr. Francisco Sabanal whom 1 personally know to be one of the regular workers of C.A.B. MOTOR POOL DEPARTMENT, hired as automotive mechanic, was the one actually doing the repair work on the LANCER CAR mentioned above. During the twenty minutes that I stayed in the premises of the house assigned to Mr. Apostol, I saw Mr. Sabanal cutting with scissors metal sheets from the sheets that were there at the place, to repair the LANCER CAR. He had with him on site, flattening tools and there was also an oxygen-acetylene outfit, which he also used.9This then triggered the CAB management, through its resident manager, Roberty Y. Dela Rosa, to issue a memorandum addressed to the respondent for violating Rule 9 of CAB's Rules of Discipline, viz:
You will submit to this Office within 24 hours from receipt hereof your explanation in writing (to be placed on the space indicated at the bottom of the enclosed duplicate hereof) why you should not be subjected to our Rules of Discipline for the following acts:In response, the respondent submitted a handwritten explanation in the local dialect, which when translated reads:
For violating Rule 9 of the Rules of Discipline — for Utilizing material or equipment of the Company, including power for doing private work without permission. Inspection by Security has disclosed that you were having repairs done in CAB housing unit area assigned to you in Paper Village one car and one pick-up for body repairs using oxygen and acetylene tanks with cutting accessories as well as steel plates for the repairs, all of which are assumed to be company property there being no clearance or permit obtained form the Company to bring in personal equipment to undertake repairs in CAB village.
Bais Central, February 4, 2002
Note: While giving you a chance to explain your side, within 24 hours from receipt hereof, you are put on preventive suspension effective immediately.
(Sgd.)
ROBERTO Y. DELA ROSA
Resident Manager10
Dear Nonoy Steven,On February 9, 2002, the respondent received a copy of the termination letter dated February 8, 2002, which was signed by CAB's president, herein petitioner Antonio Steven L. Tan.
First of all, I am asking for a thousand apologies because I undertook the repair of my personal vehicle without securing your permission.
Noy, I did not use electric welding, compressor and grinder. What I used was a trouble light and my personal acetylene and oxygen.
Noy, I am reiterating my asking for apology and excuse from you and I am really sorry that I have violated your rules.
Sincerely yours,
Sgd. Zuelo Apostol11
WHEREFORE, the complaint dated February 12, 2002 is dismissed for lack of merit.
SO ORDERED.13
WHEREFORE, PREMISES CONSIDERED, the decision of the Labor Arbiter is, hereby, SET ASIDE and VACATED and a new one entered finding [herein respondent] to have been illegally dismissed. [Herein petitioner] Central Azucarera de Bais is, hereby, ordered to pay complainant the following:
Backwages P323,784.95Separation Pay P230,345.00TOTAL P554,129.00
SO ORDERED.17
WHEREFORE, in view of the foregoing premises, the Petition for Certiorari is DENIED. The NLRC's Decision dated October 28. 2011 and its Resolution dated February 27, 2012, respectively, are hereby AFFIRMED. Costs on petitioners.
SO ORDERED.19
In sum, the petitioners put forth the following issues for the resolution of the Court: (1) whether or not procedural and substantive due process was observed in the termination of the respondent's employment with CAB; (2) whether or not the penalty meted out was commensurate to the violation; and consequently, (3) whether or not the respondent is entitled to the payment of backwages and separation pay.
- CONTRARY TO LAW AND JURISPRUDENCE, THE [CA] SERIOUSLY ERRED IN FINDING CAB GUILTY OF ILLEGAL DISMISSAL BECAUSE SUBSTANTIVE AND PROCEDURAL DUE PROCESS REQUIREMENTS WERE DULY COMPLIED WHEN MR. APOSTOL WAS TERMINATED.
- CONTRARY TO LAW AND JURISPRUDENCE, THE [CA] USURPED PETITIONERS' MANAGEMENT PREROGATIVE TO DETERMINE THE PENALTY COMMENSURATE TO THE OFFENSE COMMITTED, WHICH HAD BEEN THE SUBJECT OF PRIOR NOTICE TO MR. APOSTOL, WHO KNEW THE CONSEQUENCES OF HIS VIOLATION.
- SINCE MR. APOSTOL WAS DISMISSED FOR JUST CAUSE AND IN COMPLIANCE WITH THE REQUIREMENTS OF PROCEDURAL DUE PROCESS HE IS NOT ENTITLED TO BACKWAGES AND SEPARATION PAY. IN ANY CASE, JURISPRUDENCE PROVIDES THAT IN A WRONGFUL TERMINATION, GOOD FAITH MAY MITIGATE OR ABSOLVE THE PAYMENT OF BACKWAGES.20
(1) [W]hen the findings are grounded entirely on speculations, surmises or conjectures;Thus, in instances when the Labor Arbiter, the NLRC, and the CA made conflicting findings of fact, the Court is justified—nay, the Court is compelled—to issue its own determination.
(2) when the inference made is manifestly mistaken, absurd or impossible;
(3) when there is grave abuse of discretion;
(4) when the judgment is based on a misapprehension of facts;
(5) when the findings of fact are conflicting;
(6) when in making its findings, the Court of Appeals went beyond the issues of the case, or its findings are contrary to the admissions of both the appellant and the appellee;
(7) when the findings are contrary to that of the trial court;
(8) when the findings are conclusions without citation of specific evidence on which they are based;
(9) when the facts set forth in the petition, as well as in the petitioner's main and reply briefs, are not disputed by the respondent;
(10) when the findings of fact are premised on the supposed absence of evidence and contradicted by the evidence on record; or
(11) when the Court of Appeals manifestly overlooked certain relevant facts not disputed by the parties, which, if properly considered, would justify a different conclusion.25
[T]he documents which are admitted by both parties clearly show that CAB complied with the twin requirements of due process by furnishing the [respondent] two written notices: first, a notice apprising the complainant of the particular acts for which his dismissal is sought xxx and second, a subsequent notice informing the complainant of the decision to dismiss him.26 (Emphasis and underscoring supplied)Likewise, the CA was categorical when it asserted that CAB complied with the twin notice requirement. It said:
Here, the twin notice requirement was substantially complied with by the petitioners. It is undisputed that Apostol received two notices. The first notice informed him of his violation and required him to submit his written explanation on the matter. Thereafter, he received another notice communicating to him that his employment with CAB was being severed by the company due to his violation of its company's Rules of Discipline.27 (Emphasis and underscoring supplied)On the other hand, and contrary to the findings of both the Labor Arbiter and the CA, the NLRC found that procedural due process was not properly observed when CAB terminated the respondent. In ruling thus, the NLRC emphasized that, while there were actually two notices sent to the respondent, the lack of actual hearing on the violations of the latter prior to his termination constituted a ground by which the dismissal should be reversed. Thus,
[W]hile as a general rule a hearing is not required to satisfy the demands of procedural due process, we feel that the circumstances of this case required that a hearing should have been conducted to determine the ownership of the materials and equipment used. That to us is vital in determining the gravity of [respondent's] violation. That would have been more in accord with the employer's duty "to afford the worker ample opportunity to be heard and defend himself with the assistance of his representative if he so desires, in accordance with company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and Employment."28 (Emphasis and underscoring supplied)In the backdrop of this contradiction among the decisions, the Court is of the opinion that the Labor Arbiter and the CA's findings are more in accord with established jurisprudence. The rights of the respondent to procedural due process was observed by CAB.
The test for the fair procedure guaranteed under Article 277(b) [now, Article 292(b)] cannot be whether there has been a formal pretermination confrontation between the employer and the employee. The "ample opportunity to be heard" standard is neither synonymous nor similar to a formal hearing. To confine the employee's right to be heard to a solitary form narrows down that right. It deprives him of other equally effective forms of adducing evidence in his defense. Certainly, such an exclusivist and absolutist interpretation is overly restrictive. The "very nature of due process negates any concept of inflexible procedures universally applicable to every imaginable situation."Thus, in Perez, the Court formulated the following guiding principles in connection with the hearing requirement in dismissal cases:
x x x x
An employee's right to be heard in termination cases under Article 277(b) [now, Article 292(b)] as implemented by Section 2(d), Rule I of the Implementing Rules of Book VI of the Labor Code should be interpreted in broad strokes. It is satisfied not only by a formal face to face confrontation but by any meaningful opportunity to controvert the charges against him and to submit evidence in support thereof.30 (Emphasis and underscoring supplied)
(a) "ample opportunity to be heard" means any meaningful opportunity (verbal or written) given to the employee to answer the charges against him and submit evidence in support of his defense, whether in a hearing, conference or some other fair, just and reasonable way.In the present case, the petitioners furnished the respondent with two notices: one, the memorandum dated February 4, 2002 issued by CAB's resident manager32 which informed the respondent of the charges against him; and two, the letter of termination which, this time, notified the respondent of CAB's decision to dismiss him.33 In the interim, CAB, through the memorandum issued by its resident manager, sought the respondent's explanation on the incident.
(b) a formal hearing or conference becomes mandatory only when requested by the employee in writing or substantial evidentiary disputes exist or a company rule or practice requires it, or when similar circumstances justify it.
(c) the "ample opportunity to be heard" standard in the Labor Code prevails over the "hearing or conference" requirement in the implementing rules and regulations.31 (Emphasis and underscoring supplied)
Following the ruling in The Coca-Cola Export Corporation v. Gacayan, the employers have a right to impose a penalty of dismissal on employees by reason of loss of trust and confidence. More so, in the case of supervisors or personnel occupying positions of responsibility, loss of trust, justifies termination of employment. Loss of confidence as a just cause for termination of employment is premised on the fact that an employee concerned holds a position of trust and confidence. This situation holds where a person is entrusted with confidence on delicate matters, such as the custody, handling, or care and protection of the employer's property.40 (Emphasis and underscoring supplied, citations omitted)This discourse is further clarified in the recent case of Alaska Milk Corporation, and the Estate of Wilfred Uytengsu vs. Ernesto L. Ponce41 where the Court ruled that, in order to invoke this cause, certain requirements must be complied with, namely: (1) the employee concerned must be holding a position of trust and confidence; and (2) there must be an act that would justify the loss of trust and confidence.42 In addition to these, the case of Juliet B. Sta. Ana vs. Manila Jockey Club, Inc.43 included, as a requirement, that such loss of trust relates to the employee's performance of duties.
Endnotes:
* Acting Chief Justice per Special Order No. 2539, dated February 28, 2018.
1Philippine Auto Components, Inc. v. Ronnie B. Jumadla, et al., GR. No. 218980, November 28, 2016. & Ronnie B. Jumadla, et al., v. Philippine Auto Components, Inc., G.R. No. 219124, November 28, 2016.
2 Penned by Associate Justice Ramon Paul L. Hernando, and concurred in by Associate Justices Carmelita Salandanan-Manahan and Ma. Luisa Quijano- Padilla; rollo, pp. 59-70.
3 Id. at 191-198.
4 Id. at 214-215
5 Id. at 72-73.
6 Id. at 11.
7 Id.
8 Id. at 12.
9 Id. at 112.
10 Id. at 113.
11 Id. at 113, 123.
12 Id. at 124-125.
13 Id. at 126.
14 Id. at 194-196.
15 Id. at 196.
16 Id. at 196-197.
17 Id. at 198.
18 Id. at 63.
19 Id. at 69.
20 Id. at 20.
21Manotok Really, Inc. v. CLT Realty Development Corp., 512 Phil. 679, 706 (2005), as cited in Van Clifford Torres y Salera v. People of the Philippines, G.R. No. 206627, January 18, 2017.
22Fuentes v. Court of Appeals, 335 Phil. 1163, 1168 (1997); Bautista v. Puyat, 416 Phil. 305, 308 (2001), as cited in Van Clifford Torres y Salera v. People of the Philippines, G.R. No. 206627, January 18, 2017.
23Lamberto M. De Leon v. Maunlad Trans, Inc., Seachest Associates, et al., G.R. No. 215293. February 8, 2017.
24 Id.
25 Id.
26Rollo, p. 125.
27 Id. at 66.
28 Id. at 196.
29 602 Phil. 522, 538 (2009).
30 Id.
31 Id.
32Rollo, p. 113.
33 Id. at 114-115.
34 Id. at 124.
35 Id. at 196.
36 ART. 297. [282] Termination by Employer. - An employer may terminate an employment for any of the following causes:
(a) Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or representative in connection with his work;
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized representative;
(d) Commission of a crime or offense by the employee against the person of his employer or any immediate member of his family or his duly authorized representatives; and
(e) Other causes analogous to the lbtegoing.
37 290-A Phil. 63,67-68(1992).
38 Id.; See also Moya v. First Solid Rubber Industries, Inc., 718 Phil. 77, 87, (2013), Radio Philippines Network, Inc. v. Yap, 692 Phil. 288, 304-305 (2012) citing Association of Integrated Security Force of Bislig (AISFB)-ALU v. Court of Appeals, 505 Phil. 10, 25 (2005), San Miguel Corporation v. Layoc, Jr., 562 Phil. 670, 687 (2007), citing San Miguel Brewery Sales Force Union (PTCWO) v. Hon. Ople, 252 Phil. 27, 31 (1989).
39 718 Phil. 77, 87 (2013).
40 Id.
41 G.R. No. 228412, July 26, 2017.
42 Supra.
43 G.R. No. 208459, February 15, 2017.
44Rollo, p. 11.
45 Id. at 113, 123.
46Maya v. First Solid Rubber Industries, Inc., supra, note 39, at 89, citing Unilever Philippines. Inc. v. Rivera, 710 Phil. 124, 133 (2013), Philippine Law Distance Telephone Co. v. NLRC, 247 Phil. 641, 650 (1988), Toyota Motor Phils. Corp. Workers Association v. NLRC, 562 Phil. 759, 810-811 (2002).