Republic
of the
Supreme Court
THIRD DIVISION
JULITO SAGALES, G.R.
No. 166554
Petitioner,
Present:
YNARES-SANTIAGO,
J.,
Chairperson,
- versus
- AUSTRIA-MARTINEZ,
CHICO-NAZARIO,
NACHURA,
and
REYES,
JJ.
RUSTAN’S
COMMERCIAL Promulgated:
CORPORATION,
Respondent. November 27, 2008
x - -
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D E C I S I O N
REYES, R.T., J.:
Labor is property, and as such merits protection. The right to make it available is next in
importance to the rights of life and liberty.
It lies to a large extent at the foundation of most other forms of
property, and of all solid individual and national prosperity.[1]
The exultation of labor by Mr.
Justice Noah Haynes Swayne of the United States Supreme Court comes to the fore
in this petition for review on certiorari.
The employee questions
the propriety of his dismissal after he was caught stealing 1.335 kilos of squid heads
worth P50.00. He invokes
his almost thirty-one (31) years of untarnished service and the several awards he received from the
company to temper the penalty of dismissal meted on him.
The Facts
Petitioner Julito Sagales was
employed by respondent Rustan’s Commercial Corporation from October 1970 until P9,880.00. He
was also receiving service charge of not less than P3,000.00 a month and
other benefits under the law and the existing collective bargaining agreement
between respondent and his labor union.[2]
In the
course of his employment, petitioner was a consistent recipient of numerous
citations[3]
for his performance. After receiving his
latest award on
On P50.00.
Petitioner was not able to show any
receipt when confronted. Thus, he was
brought to the Security Office of respondent corporation for proper endorsement
to the Makati Headquarters of the Philippine National Police. Subsequently, petitioner was brought to the Makati
Police Criminal Investigation Division where he was detained. Petitioner was later ordered released pending
further investigation.[5]
Respondent
alleged that prior to his detention, petitioner called up Agaton Samson, Rustan’s
Branch Manager, and apologized for the incident. Petitioner even begged Samson that he would
just pay for the squid heads. Samson
replied that it is not within his power to forgive him.[6]
On
Assistant
Prosecutor Pineda believed the version of petitioner and recommended the
dismissal of the case for “lack of evidence.”[8]
The recommendation was approved upon review by City Prosecutor Feliciano Aspi.[9]
Notwithstanding
the dismissal of the complaint, respondent, on
On
Petitioner
and his counsel attended the administrative investigation where he reiterated
his defense before the inquest prosecutor. Also in attendance were Aranas and Magtangob,
who testified on the circumstances surrounding the apprehension of petitioner; Samson, the branch manager
to whom petitioner allegedly apologized for the incident; and Zenaida
Castro, cashier, who testified that the squid heads were not paid.
Respondent
did not find merit in the explanation of petitioner. Thus, petitioner was dismissed from service on
Aggrieved,
petitioner filed a complaint for illegal dismissal against respondent. He also prayed for unpaid salaries/wages,
overtime pay, as well as moral and exemplary damages, attorney’s fees, and
service charges.[13]
Labor Arbiter, NLRC, and CA
Dispositions
On
IN VIEW OF THE FOREGOING, the complaint for illegal dismissal should be DISMISSED for lack of merit.
SO ORDERED.[15]
According
to the Labor Arbiter, the nature of the responsibility of petitioner “was not
that of an ordinary employee.”[16] It then went on to categorize petitioner as a
supervisor in “a position of responsibility where trust and confidence is
inherently infused.”[17] As such, it behooved him “to be more
knowledgeable if not the most knowledgeable in company policies on employee
purchases of food scrap items in the kitchen.”[18] Per the evidence presented by respondent,
petitioner breached company policy which justified his dismissal.
Petitioner
appealed to the National Labor Relations Commission (NLRC).[19] On
WHEREFORE,
the decision appealed from is hereby SET ASIDE and complainant’s dismissal
declared illegal. Further, respondent is hereby ordered to reinstate
complainant to his former position without loss of seniority rights and other
benefits and paid backwages computed from time of dismissal up to the finality
of this decision which as of this date amounts to P269,854.16.
All other claims are denied for want of basis.
SO
ORDERED.[21]
The
NLRC held that the position
of complainant is not supervisory
covered by the trust and confidence rule.[22] On the contrary, petitioner is a mere
rank-and-file employee.[23] The evidence is also wanting that petitioner
committed the crime charged.[24] The NLRC did not believe that petitioner would
trade off almost thirty-one (31) years of service for P50.00 worth of squid heads.[25]
The NLRC further ruled that petitioner
was illegally dismissed as respondent failed to establish a just cause for
dismissal.[26] However, the claim for damages was denied for
lack of evidence.[27]
The motion for reconsideration[28]
having been denied,[29] respondent
brought the matter to the Court of Appeals (CA) via a petition for certiorari
under Rule 65 of the 1997 Rules on Civil Procedure.[30] On
WHEREFORE,
the petition is GRANTED. The challenged resolutions of
SO
ORDERED.[32]
In reversing the NLRC, the CA opined
that the position of petitioner was supervisory in nature.[33]
The CA also held that the evidence
presented by respondent clearly established loss of trust and confidence on
petitioner.[34] Lastly, the CA, although taking note of the
long years of service of petitioner and his numerous awards, refused to award
separation pay in his favor. According
to the CA, “the award of separation pay cannot be sustained under the social
justice theory” because the instant case “involves theft of the employer’s
property.”[35]
Petitioner
filed a motion for reconsideration[36]
which was denied.[37]
Left with no other recourse, petitioner
availed of the present remedy.[38]
Issues
Petitioner
in his Memorandum[39] imputes
to the CA the following errors, to wit:
I. THE COURT OF
APPEALS COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OF
JURISDICTION WHEN IT CONCLUDED THAT THE POSITION OF THE PETITIONER BEING AN
ASSISTANT COOK AS A SUPERVISORY POSITION FOR BEING CONTRADICTORY TO THE
EVIDENCE ON RECORD.
II. THE COURT OF
APPEALS COMMITTED GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OF
JURISDICTION WHEN IT CONCLUDED THAT THE DOCTRINE OF TRUST
For
a full resolution of the issues in the
instant case, the following questions should be answered: (1) Is
the position of petitioner supervisory in nature which is covered by the trust
and confidence rule? (2) Is the evidence on record sufficient to conclude that
petitioner committed the crime charged? and (3) Assuming that the answer is in
the affirmative, is the penalty of dismissal proper?
Our Ruling
I. The position of petitioner is supervisory in nature which is covered
by the trust and confidence rule.
The nature
of the job of an employee becomes relevant in termination of employment
by the employer because the rules on termination of managerial and
supervisory employees are different from those on the rank-and-file. Managerial employees are tasked to perform key
and sensitive functions, and thus are bound by more exacting work ethics.[41]
As a consequence, managerial employees are
covered by the trust and confidence rule.[42]
The same holds true for supervisory
employees occupying positions of responsibility.[43]
There is no
doubt that the position of petitioner as chief cook is supervisory in nature. A chief cook directs and participates in
the preparation and serving of meals; determines timing and sequence of
operations required to meet serving times; and inspects galley and equipment
for cleanliness and proper storage and preparation of food.[44] Naturally, a chief cook falls under
the definition of a supervisor, i.e., one who, in the interest of the employer,
effectively recommends managerial actions which would require the use
of independent judgment and is not merely routinary
or clerical.[45]
It has not
escaped Our attention that petitioner changed his stance as far as his actual
position is concerned. In his position
paper, he alleged that at the time of his dismissal, he was “Chief Cook.”[46] However,
in his memorandum, he now claimed that he was an “Asst. Cook.”[47] The ploy is clearly aimed at giving the
impression that petitioner is merely a rank-and-file employee. The change in
nomenclature does not, however, help petitioner, as he would still be covered
by the trust and confidence rule. In Concorde
Hotel v. Court of Appeals,[48]
the Court categorically ruled:
Petitioner
is correct insofar as it considered the nature of private respondent’s position
as assistant cook a position of trust and confidence. As assistant cook, private respondent is
charged with the care of food preparation in the hotel’s coffee shop. He is also responsible for the custody of food
supplies and must see to it that there is sufficient stock in the hotel
kitchen. He should not permit food or
other materials to be taken out from the kitchen without the necessary order
slip or authorization as these are properties of the hotel. Thus, the nature of
private respondent’s position as assistant cook places upon him the duty of
care and custody of Concorde’s property.[49] (Emphasis supplied)
Of course, the ruling assumes greater
significance if petitioner is the chief
cook. A chief cook naturally
performs greater functions and has more responsibilities than an assistant cook. In eo quod plus sit simper inest et minimus. The
greater always includes the less. Ang malawak ay laging sumasakop sa maliit.
II. The evidence on record is sufficient
to conclude that petitioner committed the crime charged.
Security of tenure is a paramount right of every employee that is held
sacred by the Constitution.[50]
The reason for this is that labor is
deemed to be “property”[51]
within the meaning of constitutional guarantees.[52]
Indeed, as it is the policy of the State
to guarantee the right of every worker to security of tenure as
an act of social justice,[53]
such right should not be denied on mere speculation of any similar or unclear
nebulous basis.[54]
Indeed, the right of every employee to
security of tenure is all the more secured by the Labor Code by providing that
“the employer shall not terminate the services of an employee except for a just
cause or when authorized” by law. Otherwise,
an employee who is illegally dismissed “shall be entitled to reinstatement
without loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other
benefits or their monetary equivalent computed from the time his compensation
was withheld from him up to the time of his actual reinstatement.”[55]
Necessarily then, the employer bears the burden of proof to show the
basis of the termination of the employee.[56]
In the case at bar, respondent has discharged its onus of proving that petitioner committed
the crime charged. We quote with
approval the observation of the CA in this regard:
On this matter, petitioner presents as
evidence the verified statement of security guard Aranas. Aranas positively saw the private in the act
of bringing out the purloined squid heads. Similarly, the statement of security guard
Magtangob attested to the commission by private respondent of the offense
charged. Further, the verified statement
of Samson, store manager of petitioner corporation who is in charge of all personnel,
including employees of the Yum Yum Tree Coffee Shop of which private respondent
was a former assistant cook, attested to the fact of private respondent seeking
apology for the commission of the act. Likewise,
the statement of Zenaida Castro (Castro), cashier of petitioner corporation’s
supermarket, Makati Branch, Ayala Center, Makati City, confirmed that indeed
the 1.335 kilos of squid heads amounting to fifty pesos (P50.00)per
kilo, had not been paid for.[57]
The contention of petitioner that respondent merely imputed the crime
against him because he was set to retire is difficult, if not impossible, to
believe. Worth noting is the fact that
petitioner failed to impute any ill will or motive on the part of the witnesses
against him. As aptly observed by the
Labor Arbiter:
It seems unbelievable to
believe that the apprehending officers up to the Manager, Mr. Samson, were all
telling a lie as what complainant wants to portray when he alleged in his
pleadings that he mentioned to the apprehending officers [that] he has a
receipt for [the squid heads] and that he never apologized. This is
understandable on his part because complainant wants no loophole in his
version. And an easy way out is to
fabricate his allegations.[58]
We stress that the quantum of proof required for the application of the
loss of trust and confidence rule is not proof beyond reasonable doubt. It is sufficient that there
must only be some basis for the loss of trust and confidence or that there is
reasonable ground to believe, if not to entertain the moral conviction, that
the employee concerned is responsible for the misconduct and that his
participation in the misconduct rendered him absolutely unworthy of trust and
confidence.[59]
It is also of no moment that the criminal complaint for
qualified theft against petitioner was dismissed. It is well settled that the conviction of
an employee in a criminal case is not indispensable to the exercise of the employer’s
disciplinary authority.[60]
The free will of management to conduct its own business affairs to
achieve its purpose cannot be denied.[61] The only condition is that the exercise of
management prerogatives should not be done in bad faith[62]
or with abuse of discretion.[63]
Truly, while the employer has the
inherent right to discipline, including that of dismissing its employees, this
prerogative is subject to the regulation by the State in the exercise of its
police power.[64]
In this regard, it is a hornbook doctrine that infractions committed by an
employee should merit only the corresponding penalty demanded by the
circumstance. The penalty must be
commensurate with the act, conduct or omission imputed to the employee and must
be imposed in connection with the disciplinary authority of the employer.[65]
For example, in Farrol v. Court of Appeals,[66]
the employee, who was a district manager of a bank, incurred a shortage of P50,985.37. He was dismissed although the funds were used
to pay the retirement benefits of five employees of the bank. The employee was also able to return the
amount, leaving a balance of only P6,995.37 of the shortage. The bank argued that under its rules, the
penalty for the infraction of the employee is dismissal. The Court disagreed and held that the penalty
of dismissal is too harsh. The Court took
note that it is the first infraction of the employee and that he has rendered
twenty-four (24) long years of service to the bank. In the words of Mme. Justice Consuelo Ynares-Santiago,
“the dismissal imposed on petitioner is unduly harsh and grossly
disproportionate to the infraction which led to the termination of his
services. A lighter penalty would have
been more just, if not humane.”[67]
So too did the Court pronounce in Felix
v. National Labor Relations Commission,[68]
Gutierrez v. Singer
Sewing Machine Company,[69]
Associated Labor Unions-TUCP v. National Labor Relations Commission,[70]
Dela Cruz v. National Labor Relations Commission,[71]
Philippine Long Distance Telephone Company v. Tolentino,[72]
Hongkong and Shanghai Banking Corporation v. National Labor Relations Commission,[73]
Permex, Inc. v. National Labor Relations Commission,[74]
VH Manufacturing, Inc. v. National Labor Relations Commission,[75]
A’ Prime Security Services, Inc. v. National Labor Relations Commission,[76]
and St. Michael’s Institute v. Santos.[77]
In
the case at bar, petitioner deserves compassion more than condemnation. At the end of the day, it is undisputed that: (1)
petitioner has worked for respondent for almost thirty-one (31) years; (2) his tireless
and faithful service is attested by the numerous awards[78]
he has received from respondent; (3) the incident on P50.00 is negligible; (5) respondent practically did
not lose anything as the squid heads were considered scrap goods and usually
thrown away in the wastebasket; (6) the ignominy and shame undergone by
petitioner in being imprisoned, however momentary, is punishment in itself; and
(7) petitioner was preventively suspended for one month, which is already a
commensurate punishment for the infraction committed. Truly, petitioner has more than paid his due.
In any case, it would be useless to order the reinstatement of
petitioner, considering that he would have been retired by now. Thus, in lieu of reinstatement, it is but
proper to award petitioner separation pay computed at one-month salary for
every year of service, a fraction of at least six (6) months considered as one
whole year.[79] In the computation of separation pay, the
period where backwages are awarded must be included.[80]
Word of caution.
We
do not condone dishonesty. After all, honesty
is the best policy. However, punishment
should be commensurate with the offense committed. The supreme penalty of dismissal is the death
penalty to the working man. Thus, care
should be exercised by employers in imposing dismissal to erring employees. The penalty of dismissal should be availed of
as a last resort.
Indeed, the immortal words of Mr. Justice
(later Chief Justice) Enrique Fernando ring true then as they do now: “where a
penalty less punitive would suffice, whatever missteps may be committed by
labor ought not be visited with a consequence so severe. It is not only because of the law’s concern
for the workingman. There is, in
addition, his family to consider. Unemployment brings untold hardships and
sorrows on those dependent on the wage-earner.”[81]
WHEREFORE, the
appealed Decision of the Court of Appeals is REVERSED and SET ASIDE.
The Decision of the National Labor Relations Commission is REINSTATED with
the MODIFICATION that petitioner is granted separation pay and backwages
in lieu of reinstatement.
SO ORDERED.
RUBEN T. REYES
Associate Justice
WE CONCUR:
CONSUELO
YNARES-SANTIAGO
Associate Justice
Chairperson
MA. ALICIA AUSTRIA-MARTINEZ MINITA V.
CHICO-NAZARIO
Associate Justice
Associate Justice
ANTONIO EDUARDO
B. NACHURA
Associate Justice
I attest
that the conclusions in the above Decision had been reached in consultation
before the case was assigned to the writer of the opinion of the Court’s
Division.
CONSUELO
YNARES-SANTIAGO
Associate Justice
Chairperson
Pursuant to Section 13, Article VIII of the
Constitution and the Division Chairperson’s Attestation, I certify that the
conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion
of the Court’s Division.
REYNATO S. PUNO
Chief
Justice
[1] Slaughter House Cases, 16 Wall. (83
[2] Rollo,
pp. 69-70.
[3] (1) Sikap Awards in recognition of his
exemplary job performance for the years 1984, 1985, 1986, 1987, 1992, 1993 and
1994; (2) Sikap Awards Service Award in 1991 for having rendered twenty five
(25) years of loyal service to the company; (3) Sikap Awards Service Award for
having rendered twenty five (25) years of loyal service; (4) Several
Certificates of Recognition for being named to the EVP-GM list, a roster of
employees who have posted a perfect record of attendance and punctuality in
reporting to work for several years; and (5) Sikap Loyalty Award for having
rendered thirty (30) years of loyal service, making him one of the elite
employees of his company.
[4] Rollo,
pp. 69-70.
[5]
[6]
[7]
[8]
[9]
[10]
[11]
[12]
[13]
[14]
[15]
[16]
[17]
[18]
[19]
[20]
[21]
[22]
[23]
[24]
[25]
[26]
[27]
[28]
[29]
[30]
[31]
[32] Rollo, p. 32.
[33]
[34]
[35]
[36]
[37]
[38]
[39]
[40]
[41] Gonzales v. National Relations Labor Commission,
G.R. No. 131653,
[42] Caingat v. National Labor Relations Commission,
G.R. No. 154308,
[43] Cruz v. Coca-Cola Bottlers Phils., Inc.,
G.R. No. 165586,
[44] <http://en.wikipedia.org/wiki/Chief_Cook>
(visited
[45] A.D. Gothong Manufacturing Corporation
Employee’s Union-ALU v. Confesor, G.R. No. 113638,
[46] Rollo, p. 69.
[47]
[48] G.R.
No. 144089,
[49] Concorde
Hotel v. Court of Appeals, id. at
591.
[50] Constitution
(1987), Art. XIII, Sec. 3 on Social Justice and Human Rights.
[51]
Id., Art.
[52] Philippine Movie Pictures Workers
Association v. Premiere Productions, Inc., 92 Phil. 843 (1953).
[53] Rance v. National Labor Relations
Commission, G.R. No. L-68147,
[54] Asia World Recruitment, Inc. v. National
Labor Relations Commission, G.R. No. 113363,
[55] Labor Code, Art. 279.
[56] De Jesus v. National Labor Relations
Commission, G.R. No. 151158,
[57] Rollo, p. 30.
[58]
[59] Central Pangasinan Electric Cooperative,
Inc. v. Macaraeg, G.R. No. 145800,
[60] Starlite Plastic Industrial Corporation v.
National Labor Relations Commission, G.R. No. 78491,
[61] Hongkong and Shanghai Banking Corporation
Employee’s Union v. National Labor Relations Commission, G.R. No. 125038,
[62] Aparente, Sr. v. National Labor Relations
Commission, G.R. No. 117652,
[63] Pantranco North Express, Inc. v. National
Labor Relations Commission, G.R. No. 106516,
[64] Manila Trading and Supply Co. v. Zulueta,
69 Phil. 485 (1940).
[65] Caltex Refinery Employees Association (CREA)
v. National Labor Relations Commission (Third Division), supra note 62, at
343; Radio Communications of the
Philippines, Inc. v. National Labor Relations Commission, G.R. No. 102958,
[66] G.R.
No. 133259,
[67] Farrol v. Court of Appeals, id. at 340.
[68]
G.R. No. 148256,
[69] Supra.
[70] Supra
at 715-716.
[71] G.R.
No. 119536,
[72] G.R.
No. 143171,
[73] Supra
note 61.
[74] G.R.
No. 125031,
[75] G.R.
No. 130957,
[76] G.R.
No. 107320,
[77] G.R.
No. 145280,
[78] See
note 3.
[79] Farrol v. Court of Appeals, supra note
66, at 340, citing Jardine Davies, Inc.
v. National Labor Relations Commission, G.R. No. 76272,
[80]
[81] Almira v. B.F. Goodrich Philippines, Inc.,
G.R. No. L-34974,