Case Digest (G.R. No. 95692)
Facts:
Sunday Machine Works, Inc. v. National Labor Relations Commission and Jaime D. Santos, G.R. No. 95692, March 16, 1992, the Supreme Court Second Division, Paras, J., writing for the Court.Petitioner Sunday Machine Works, Inc. employed private respondent Jaime D. Santos beginning January 13, 1964; Santos rose from branch manager to Assistant General Manager and later Manager of the Paco, Manila main branch. On February 3, 1987, company president Sunday Pineda confronted Santos with an accusation that Santos had entered into daily cash statements expenses or commissions allegedly due a named employee; instead of a formal internal hearing, Pineda ordered Santos to go on vacation leave pending an ex parte investigation, told him he would continue to receive salary during the investigation, and directed him to vacate company housing the next day. Santos received only a single voucher for P566.00 signed as “commission” and thereafter was not paid his salaries for the second half of February 1987 onward.
After months of silence from the company, Santos wrote five letters inquiring about his status and then, on October 22, 1987, received an antedated letter dated March 3, 1987, stating he was dismissed for loss of trust and confidence. Having worked for the company for over twenty-three years and being about sixty years old, Santos filed a complaint with the Department of Labor and Employment (DOLE) on November 12, 1987, alleging illegal dismissal and seeking, among other relief, separation pay of three years’ salary, moral damages, attorney’s fees and back wages. At the time he was receiving P4,100 monthly plus in-kind room and board (conservatively valued at P1,000 monthly).
The Labor Arbiter (Arbitration Branch, NLRC) rendered a decision on April 20, 1989 ordering respondent to pay a total of P47,400 plus ten percent attorney’s fees. Both parties appealed to the National Labor Relations Commission (NLRC). In its Second Division decision promulgated October 11, 1990, the NLRC set aside the arbiter’s award and ordered: (1) payment of backwages not exceeding three years from finality based on latest salary; (2) separation pay equivalent to one-half month pay for every year of service (with a fraction of at least six months counted as one year); and (3) ten percent attorney’s fees on the total award; all other claims were dismissed for lack of merit.
Petitioner filed a petition for certiorari in the Supreme Court attacking the NLRC decision as contrary to law and alleging grave abuse of discretion, raising three issues: whether Santos was validly dismissed for loss...(Subscriber-Only)
Issues:
- Was private respondent Jaime D. Santos validly dismissed on the ground of loss of trust and confidence?
- If the dismissal is illegal, is private respondent nevertheless entitled to separation pay instead of reinstatement?
- Is private respondent entitled to full back wages for three years without deduction for reasonabl...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)