Facts:

• Itogon-Suyoc Mines, Inc. (petitioner) filed for clearance to terminate Opeginio Abreu, Sr. (respondent) on December 22, 1978, citing "highgrading" (theft of high-grade stones).
• Abreu was placed under preventive suspension pending the termination application.
• Abreu opposed the termination, leading to compulsory arbitration at the NLRC in Baguio City.
• On April 2, 1979, the Labor Arbiter ruled in favor of Abreu, finding insufficient evidence for the highgrading charge.
• The Labor Arbiter denied the termination application and ordered Abreu's reinstatement with back wages and seniority rights.
• Itogon-Suyoc Mines appealed, and on May 23, 1980, the NLRC reversed the Labor Arbiter's decision, finding Abreu guilty of breach of trust.
• The NLRC ordered the petitioner to pay Abreu separation pay equivalent to fifteen days' pay for each year of service, citing "grounds of equity."
• Dissatisfied, Itogon-Suyoc Mines filed a petition for certiorari, arguing the NLRC's ruling was contrary to law and constituted grave abuse of discretion.

Issue:

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Ruling:

• The Supreme Court denied the application for clearance to terminate Abreu's services.
• It ordered Itogon-Suyoc Mines, Inc. to reinstate Abreu to his former or a substantially equivalent position without loss of seniority rights, but ...(Unlock)

Ratio:

• The Court deferred to the NLRC's findings regarding Abreu's breach of trust, as he did not contest the NLRC's decision.
• It emphasized that termination for just cause, such as breach of trust, does not require the employer to pay separation pay, as this contradicts the nature of just cause dismissals.
• Article 283 of the Labor Code states that termination for just cause does not entitle the...continue reading