A.M. No. RTJ-98-1426 - Spouses Rafols vs. Dizon

Richard N. Rivera was employed by Genesis Transport Service, Inc. starting in June 2002 as a bus conductor.
As a pre-requisite for his employment, Rivera posted a cash bond amounting to P6,000.00.

On June 10, 2010, Rivera received a memorandum requiring him to explain a discrepancy in the bus ticket receipts he managed.
The discrepancy involved the amount recorded on the bus ticket receipts: Rivera declared and remitted only P198.00 whereas the correct amount was P394.00, leading to a shortfall of P196.00.
Rivera admitted in his Position Paper before the Labor Arbiter that the error was due to what he claimed was an honest mistake, which he attributed to mechanical problems experienced by the bus.

On May 25, 2010, Genesis’ inspector, Arnel Villaseran, conducted a “man to man” inspection and identified the discrepancy on Ticket No. 723374 VA.
An irregularity report was prepared documenting the error, including the passenger’s account that P500.00 was tendered to Rivera and change of P106.00 was given.
Follow-up verification with Genesis’ Ticket Section confirmed that the duplicate ticket indicated an amount of only P198.00, corroborating that Rivera remitted the lower amount.

On July 20, 2010, Genesis served Rivera a written notice setting a hearing regarding the discrepancy.
Despite his explanations, Rivera’s employment was terminated by a written notice dated July 30, 2010.

Rivera filed a complaint for illegal dismissal, challenging the termination on the ground that it was arbitrary and unjust.
Labor Arbiter Gaudencio P. Demaisip, Jr. dismissed Rivera’s complaint on June 26, 2012, considering the misdeclaration as sufficient cause for dismissal.
The National Labor Relations Commission (NLRC) Second Division affirmed the Labor Arbiter’s decision on February 28, 2013 and again on April 30, 2013 when Rivera’s motion for reconsideration was denied.
Rivera subsequently elevated the case by filing a Petition for Review on Certiorari under Rule 45 before the Court of Appeals, where the July 8, 2014 Decision dismissed his petition and the November 20, 2014 Resolution denied his motion for reconsideration.

Rivera contended that his termination was illegal and that his employment was ended without just cause, causing him the loss of his primary means of livelihood.
Respondents Genesis Transport Service, Inc. and its President and General Manager, Riza A. Moises, defended the termination by asserting that Rivera’s misdeclaration and failure to remit the correct fare constituted serious misconduct, fraud, and willful breach of trust under company policy.

Whether the termination of Rivera’s employment for the alleged discrepancy in bus ticket receipts amounts to a just cause under the Labor Code.
Whether the isolated error of P196.00 can be construed as an act of serious misconduct, willful breach of trust, or fraud sufficient to justify dismissal.

Whether Rivera was afforded proper due process and the opportunity to contest the discrepancy before the termination decision was finalized.
Whether the administrative process and the subsequent resolutions by the Labor Arbiter and NLRC adequately scrutinized the gravity of the alleged misconduct.

Whether respondent Riza A. Moises, in her capacity as President and General Manager, can be held personally liable for the allegedly illegal termination.
Whether the corporate veil shields her from liability absent evidence of bad faith or malice.

Determining the appropriate computation of full backwages, separation pay, and attorney’s fees due to Rivera following a finding of illegal dismissal.
Whether the method of computation conforms with the statutory provisions and judicial precedents protecting workers’ rights.