G.R. No. 190944 - Advan Motor, Inc. vs. Veneracion

Respondent Victoriano G. Veneracion began working in September 1999 as a Sales Consultant for petitioner Advan Motor, Inc. engaging in the business of selling and repairing General Motors vehicles.
On May 21, 2001, respondent received a termination letter citing repeated AWOL (absence without official leave) violations for over six consecutive days and alleging a loss of trust and confidence due to his alleged abandonment of office duties.
Respondent claimed that the termination was preceded by a series of adverse employment practices including:

Allegations that he was suspected of union organizing in December 2000 which prompted harassment.
Being pressured, in effect, to resign in exchange for a financial package.
The undermining or sabotage of his purchase orders and sub-dealership agreement by management.
An inconsistency in salary adjustments relative to his regularization and expectations regarding sales performance incentives.

Being deprived of duty assignments, showroom access, and telephone services starting from March 2001.
A verbal approval for a leave of absence in April 2001 which was later denied.
Withholding of salaries for April 2001 and subsequent months.
The subsequent serving of a termination letter by petitioner, pre-emptively, as a response to his contemplated filing of an action.

Respondent initially filed a complaint for constructive dismissal on July 13, 2001, which was later amended to include claims of illegal dismissal and underpayment of salaries/wages.
The Labor Arbiter rendered a decision declaring the dismissal illegal and ordered petitioner to pay:

The NLRC, on April 30, 2007, affirmed the Labor Arbiter’s decision. Subsequent motions for reconsideration by both parties were denied by the NLRC in its resolution dated February 29, 2008.
The respondent elevated the case to the Court of Appeals via a petition for certiorari which resulted in:

A partial grant ordering the reinstatement of the respondent to his former position without loss of seniority and other privileges.
Award of backwages computed from May 2, 2001 until actual reinstatement.
Deletion of any award of separation pay.
Affirmation of the award of ten percent (10%) attorney’s fees.

Petitioner subsequently filed a Motion for Partial Reconsideration on October 22, 2009; however, the appellate court denied the motion on January 13, 2010.

The respondent was fully aware of the company’s personnel policies, specifically the provisions on absenteeism and the consequences of unauthorized absences as detailed in the manual issued on December 10, 1999.
The respondent repeatedly committed AWOL violations and failed to meet his monthly sales quota of three motor vehicles.
His conduct, including unannounced leaves and improper notification procedures (such as handing in a leave request to a security guard), demonstrated gross neglect of duty and a wanton violation of company policies.

Based on these allegations, the petitioner argued there existed a just cause for termination, particularly given the nature of the Sales Consultant’s role which they claimed was one that required high levels of trust and confidence.

Whether the Court of Appeals committed palpable error in ordering the reinstatement of respondent Victoriano G. Veneracion to his former position.

This issue centers on whether the nature of the respondent’s position (Sales Consultant) and the alleged misconduct justify non-reinstatement due to a loss of trust and confidence.

Whether the Court of Appeals erred in its ordering of the award of backwages to the respondent.

The petitioner contended that the misconduct (i.e., AWOL and other policy violations) should preclude the award of backwages as part of the remedies for illegal dismissal.