Title
Philippine Long Distance Telephone Co. vs. National Labor Relations Commission
Case
G.R. No. 80609
Decision Date
Aug 23, 1988
Employee dismissed for dishonesty after demanding payment for services; Supreme Court ruled no financial assistance, upholding dismissal as lawful.

Case Digest (G.R. No. 208566)
Expanded Legal Reasoning Model

Facts:

  • Parties and Background
    • Petitioner: Philippine Long Distance Telephone Company (PLDT).
    • Respondents: National Labor Relations Commission (NLRC) and Marilyn Abucay, a traffic operator employed by PLDT.
  • Allegations and Dismissal
    • Abucay was accused by two complainants of demanding and receiving ₱3,800 in exchange for facilitating approval of their telephone‐installation applications.
    • After investigation, the labor arbiter found her guilty of dishonesty and dismissed her from service.
  • Administrative and NLRC Proceedings
    • Abucay filed a complaint for illegal removal with the Ministry of Labor and Employment. The labor arbiter dismissed the complaint for lack of merit but awarded Abucay one month’s pay for every year of service as “financial assistance,” citing equity and partial blame of the complainants for the off‐premises transaction.
    • PLDT and Abucay both appealed to the NLRC. The NLRC affirmed the labor arbiter’s decision in toto, including the award of financial assistance. Abucay did not further contest her dismissal, while PLDT elevated the case to the Supreme Court.

Issues:

  • Entitlement to Separation Pay
    • Whether an employee lawfully dismissed for cause—specifically dishonesty—may nonetheless be granted separation pay or financial assistance.
    • Whether principles of equity and constitutional social justice can justify awarding separation pay in cases of serious misconduct.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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