G.R. No. 211522 - J' Marketing Corp. vs. Iguiz

Fernando S. Iguiz was hired by J′ Marketing Corporation (JMC) in September 1995 as a driver; he was later promoted to collector/credit investigator in the Kalibo Branch.
JMC is engaged in the business of selling appliances with branches across the Visayas region.

On 11 December 2006, Iguiz submitted his Daily Cash Collection Report and remitted his weekly collection for 4–9 December 2006, which was found to be short by ₱5,811.
The Kalibo Branch Manager, Pepito P. Estrellan, issued a memorandum on 11 December 2006 directing Iguiz to explain the shortage within 24 hours and suspended him from his duties as collector/credit investigator.
On 14 December 2006, Iguiz submitted a notarized reply stating that the missing amount was lost due to a flood brought about by typhoon “Siniang” and tendered the ₱5,811 as payment.
JMC did not pursue further investigation regarding this incident at that time.

An audit conducted by JMC’s credit supervisor, Marlon Sonio, on 5 February 2007 revealed additional discrepancies: an unremitted collection amounting to ₱15,300 and US$29 from 14 customers, with no official receipts issued for these transactions.
A summary list of the affected customers was submitted along with the audit report, and JMC later obtained notarized affidavits from these customers on 28 February 2007.
On 8 February 2007, Estrellan issued a memorandum asking Iguiz to explain within 24 hours why he should not be reprimanded for the alleged irregularities regarding the ₱15,300 and US$29 collections.
An administrative investigation was conducted, and an Administrative Investigation Report was drawn up on the same day without Iguiz’s acknowledgment signature.

On 9 February 2007, Iguiz received a memorandum from Estrellan instructing him to sign the administrative investigation report within 12 hours, with a warning that failure to sign would be taken as a waiver of his right to be heard.
On 12 February 2007, before he could file an explanation for the memorandum received on 8 February 2007, Iguiz sent a reply denying the charges; he maintained that he had consistently issued official receipts and that no formal complaint had previously been lodged against him.
On the same day, through a letter by Arty. Immanuel L. Sodusta, JMC demanded that Iguiz remit the alleged uncollected amounts within five days, indicating that further action would be taken if he failed to comply.

A Joint Affidavit dated 13 February 2007, executed by Estrellan and Accounting Supervisor Sianita Nazareta, asserted that Iguiz’s explanations were contradictory and indicated previous instances of short remittances while also citing a barangay certification disproving the alleged flood damage.
On 27 February 2007, JMC reported the matter to the Kalibo Police.
On 7 March 2007, the Personnel Manager, Vangie M. Tionko, issued a termination memo stating that Iguiz’s actions—namely, collecting ₱15,300 and US$29 without issuing official receipts and the prior shortage of ₱5,811—constituted dishonesty and a breach of trust, thereby justifying termination under Article 282(c) of the Labor Code.
Iguiz received the termination memorandum on 12 March 2007.

Iguiz filed a complaint for illegal dismissal with the National Labor Relations Commission (NLRC), which was initially dismissed by Labor Arbiter Rene G. Enano on 15 July 2008 for lack of merit, based on his unsubstantiated denials.
Iguiz appealed the decision; on 27 February 2009, the NLRC reversed the Labor Arbiter’s decision, awarding him backwages, separation pay, moral damages, exemplary damages, and attorney’s fees.
JMC’s motion for reconsideration before the NLRC was denied on 31 July 2009.
JMC further appealed the NLRC decision to the Court of Appeals (CA), which, on 16 July 2013, affirmed the NLRC ruling.
A subsequent motion for reconsideration by JMC before the CA was denied on 30 January 2014.
Petitions for review on certiorari were eventually raised before the Supreme Court.

Whether the appellate court (and by extension, the lower tribunals) erred in upholding the NLRC’s finding that Fernando S. Iguiz was illegally dismissed from employment and in awarding him backwages, separation pay, moral and exemplary damages, and attorney’s fees.

Whether JMC satisfied both the substantive and procedural due process requirements necessary for a termination, specifically:

The sufficiency of evidence proving willful breach of trust (dishonesty) on the part of Iguiz.
Compliance with the mandatory two-notice rule and the provision of a reasonable opportunity to be heard during the administrative investigation and the dismissal process.