Case Digest (G.R. No. 207900)
Facts:
Josephine A. Casco worked for Capitol Medical Center from 29 March 1984, eventually serving as Nurse Supervisor of the Operating Room. In 2008, during equipment calibration, several hospital devices—including Mindray monitors, Pulse Oximeters, vaporizers, and an endoscopy camera—were found missing; Capitol conducted an investigation for gross negligence and issued a Letter of Termination on 18 December 2008 for loss of equipment under her area of responsibility.
Casco filed an illegal dismissal complaint before the NLRC. The Labor Arbiter found the dismissal illegal, ordered reinstatement without loss of seniority, and awarded backwages. The NLRC reversed and declared the dismissal valid, and the Court of Appeals affirmed, prompting Casco’s petition for review on certiorari.
Issues:
- Whether the Court of Appeals erred in finding that the NLRC did not gravely abuse its discretion in declaring Casco’s dismissal valid on the ground of loss of trust and confidence and gross negligence.
- Whether Casco could be held liable for gross and habitual negligence for the missing hospital equipment.
- Whether Casco could be dismissed for loss of trust and confidence despite the absence of proof that she caused the equipment loss.
Ruling:
The Court GRANTED the petition, REVERSED the Court of Appeals, and REINSTATED the Labor Arbiter’s decision.
It held that the employer failed to prove that Casco committed gross and habitual negligence, and also failed to establish a sufficient basis for loss of trust and confidence, thus rendering the dismissal illegal.
Ratio:
On gross and habitual negligence, the Court ruled that neglect as a ground for dismissal must be both gross and habitual, and that the employer bears the burden of proving a valid dismissal by substantial evidence. It found no evidence that Casco’s duties as Nurse Supervisor included being the custodian of hospital equipment and machines, since the job description reflected duties to monitor, report malfunction, receive equipment, and conduct inventory, but did not vest safekeeping responsibilities. Further, the employer failed to show willful and deliberate disregard or recklessness attributable to Casco, and the responsibility for securing access to the operating room lay with management.
On loss of trust and confidence, the Court acknowledged that the position may be one of trust, but still required a genuine and serious breach based on some reasonable basis that the employee was responsible. While less stringent proof may apply to managerial employees, the employer must still show a basis to believe the employee betrayed the trust; the Court found none because Casco was not shown to have been entrusted with equipment safekeeping and no evidence established her wilful acts that led to the loss. Consequently, the dismissal could not stand.
Doctrine:
- Neglect of duty as a ground for dismissal must be gross and habitual; gross negligence involves want/absence of slight care, while habitual neglect involves repeated failure to perform duties over time.
- In termination cases, the employer must prove by substantial evidence that the dismissal was for a valid and authorized cause.
- A managerial employee may be dismissed for loss of trust and confidence based on some reasonable basis, but the ground must be genuine, not a mere afterthought, and must show serious breach attributable to the employee.
- Loss of trust and confidence cannot be used to dismiss an employee when the employer fails to establish that the employee was responsible for the alleged misconduct.
- When dismissal is illegal, the employee is entitled under Article 294 of the Labor Code to reinstatement without loss of seniority and backwages from the time of illegal dismissal until actual reinstatement.