KWIKWAY ENGINEERING WORKS, vs. NATIONAL LABOR RELATIONS COMMISSION AND ROSALINDA VARGAS.
- G.R. Number: G.R. No. 85014
- Promulgated: 1991-03-22
- Ponente: Medialdea, J.
Doctrine
An employer may dismiss an employee for loss of confidence where sufficient evidence shows breach of trust, especially for supervisors or those in positions of responsibility.
Preventive suspension without time limit that effectively amounts to dismissal violates Section 4, Rule XIV of the Implementing Rules of the Labor Code which limits preventive suspension to 30 days.
Failure to observe due process in termination makes the employer liable to indemnify the employee (fixed award of P1,000.00 in similar jurisprudence).
Facts
Petitioner sought certiorari under Rule 65 to annul NLRC resolution of 9 September 1988 that affirmed a labor arbiter's order reinstating respondent Vargas for wrongful dismissal.
After alleged irregularities were reported, Vargas was placed under preventive suspension the following day for an indefinite period; employer's prior investigation was inadequate and no formal written charge or adequate opportunity to defend appears in record.
Preventive suspension lacked time frame and effectively matured into dismissal, contravening Section 4, Rule XIV of the Implementing Rules of the Labor Code limiting preventive suspension to 30 days.
Issues
Whether the dismissal of respondent Vargas was for a just and valid cause.
Whether respondent Vargas was deprived of her constitutional right to due process.
Ruling
Court found merit in petitioner's contention that employer could dismiss for loss of trust where supported by evidence, and held Vargas' dismissal was for a just cause; NLRC order reinstating Vargas with three years' backwages was reversed and set aside.
Because employer failed to comply with due process requirements, the Court awarded Vargas indemnity of P1,000.00 instead of reinstatement or backwages.
Keywords
G.R. No. 85014, Rule 65 of the Rules of Court, certiorari, National Labor Relations Commission (NLRC), reinstatement with backwages, just and valid cause for dismissal, constitutional right to due process, loss of trust and confidence, breach of trust, dishonesty, misappropriation of company funds, company accounting procedure, code of conduct, Reynolds v. Eslava, No. L-48814, June 27, 1985, 137 SCRA 259, Lamsan Trading v. Leogardo, No. 73245, September 30, 1986, 144 SCRA 571, proof beyond reasonable doubt, negligence resulting in fraud, grave abuse of discretion, twin requirements of notice and hearing, vargas