G.R. No. 82189 - Auxilio, Jr. vs. National Labor Relations Commission

Petitioner Porfirio Auxilio, Jr. was first employed by Baguio Country Club Corporation in 1977 as a houseman.
He became a regular employee in 1978 and was assigned as a front desk clerk in 1981, with a monthly basic pay of P524.00.
His duties included handling hotel rooms, receiving guest registrations, and acting as a switchboard operator.

On January 17, 1982, P15,000.00 placed in the cashier’s office of the Baguio Country Club was found to be missing.
The loss was reported to the management on January 18, 1982.
The Baguio City Police Department conducted an immediate investigation, ruling out forcible entry or robbery and concluding it was an “inside job.”
All employees with access to the cashier’s office, including petitioner, were questioned and underwent polygraph tests conducted by the NBI.
Petitioner denied stealing the money but was placed under preventive suspension on January 20, 1982, pending investigation results.

The polygraph examination showed that petitioner could not satisfactorily explain his answers to key questions about the missing money.
Petitioner refused to attend a further investigation at the Police Headquarters, claiming he was unwell during the polygraph test.
The February 16, 1982 polygraph report concluded petitioner gave no satisfactory explanation for the adverse results; other employees’ explanations were deemed satisfactory.

Petitioner failed to appear for further investigation and notices sent to him were rejected by his wife.
On February 20, 1982, Baguio Country Club Corporation issued a Memorandum terminating petitioner’s employment for "loss of trust and confidence" and for allegedly giving false statements during the investigation.
Petitioner filed a complaint for illegal dismissal with the Labor Arbiter, citing dismissal based on mere suspicion and denial of opportunity to defend himself contrary to the Collective Bargaining Agreement (CBA).
The Labor Arbiter ruled in favor of the petitioner on October 26, 1984, ordering reinstatement due to lack of reasonable grounds for dismissal.
The National Labor Relations Commission (NLRC) reversed the decision on February 12, 1988, dismissing petitioner’s complaint for illegal dismissal, leading to this petition for certiorari.

Whether the employer’s dismissal of petitioner was legal and valid.
Whether due process was observed in the dismissal of petitioner, particularly the grievance mechanism in the Collective Bargaining Agreement.
Whether the evidence (polygraph test, investigation reports, and petitioner’s flight) was sufficient to justify the dismissal based on loss of trust and confidence.