Case Summary (G.R. No. 82189)
Factual Background and Employment History
Porfirio Auxilio, Jr. was employed by Baguio Country Club Corporation initially as a houseman in 1977, became a regular employee in 1978, and was assigned as front desk clerk in 1981 with a basic monthly salary of P524.00. His job duties included handling hotel rooms, guest registration, and operating the switchboard.
Incident and Investigation
On January 17, 1982, P15,000.00 went missing from the cashier’s office at the Country Club. The loss was reported to management the following day, prompting an immediate police investigation. Findings ruled out any forced entry or robbery, concluding it was an “inside job.” Employees with access to the cashier’s office, including petitioner, were questioned and subjected to a polygraph examination by the National Bureau of Investigation (NBI). Petitioner was placed under preventive suspension for 30 days starting January 20, 1982, pending further investigation.
Polygraph Results and Petitioner’s Non-Compliance
The polygraph examination revealed petitioner could not satisfactorily explain answers related to the missing funds, whereas other employees showed no signs of deception. Petitioner refused to attend subsequent police investigations citing illness. The polygraph report dated February 16, 1982, noted petitioner’s failure to give a satisfactory explanation for adverse results. Notices for further investigation were sent but were rejected by petitioner’s wife, and petitioner could not be located at his residence.
Termination of Employment
On February 20, 1982, Baguio Country Club Corporation issued a memorandum terminating petitioner on grounds of "loss of trust and confidence" and “giving false statements during official investigation.”
Initial Labor Arbiter Decision
Petitioner filed a complaint for illegal dismissal, arguing dismissal was based only on suspicion and denied him procedural due process as per the grievance procedure outlined in the Collective Bargaining Agreement (CBA). The Labor Arbiter ruled in favor of petitioner on October 26, 1984, ordering reinstatement due to failure of the employer to prove the legality of the dismissal by a preponderance of evidence.
NLRC Decision and Reversal
On appeal, the NLRC reversed the Labor Arbiter’s ruling on February 12, 1988, dismissing petitioner’s illegal dismissal complaint for lack of merit. The NLRC found that the employer’s action was justified based on the evidence, and due process was observed.
Due Process and Grievance Machinery
The court examined the grievance procedure in the CBA, noting that it was designed to address controversies regarding workplace rules, practices, and conditions. The procedure did not apply to the factual circumstances of this case, which involved theft and loss of trust. The petitioner failed to avail himself of the grievance remedy properly. The court found that petitioner was afforded due process through notice and opportunity to be heard, which he waived by avoiding investigation sessions.
Grounds for Dismissal: Loss of Trust and Confidence
The court emphasized that loss of trust and confidence is a valid ground for dismissal under Philippine labor law. Absolute proof beyond reasonable doubt is not required; r
...continue readingCase Syllabus (G.R. No. 82189)
Facts of the Case
- Petitioner Porfirio Auxilio, Jr. was employed by Baguio Country Club Corporation starting in 1977 as a houseman, later becoming a regular employee in 1978.
- By 1981, petitioner was assigned as a front desk clerk, responsible for hotel rooms, guest registration, and acting as a switchboard operator, earning a basic pay of P524.00 per month.
- On January 17, 1982, a sum of Fifteen Thousand Pesos (P15,000.00) went missing from the cashier’s office.
- The Baguio City Police Department conducted an immediate investigation, ruling out forcible entry or robbery, concluding the theft was an inside job.
- Employees with access to the cashier’s office—including petitioner—were questioned and subjected to a Polygraph examination administered by the NBI.
- Petitioner was placed on a preventive suspension on January 20, 1982, due to possible involvement in the theft, pending investigation results.
- The polygraph test indicated petitioner failed to satisfactorily explain pertinent questions about the missing money, unlike other employees who were cleared.
- Petitioner refused to attend further police investigation, citing illness during the polygraph test.
- Despite repeated attempts, management could not locate petitioner at his residence; notices sent were rejected by petitioner’s wife.
- On February 20, 1982, petitioner was terminated for “loss of trust and confidence” and “giving false statement during official investigation.”
- Petitioner filed a complaint for illegal dismissal, asserting dismissal was based solely on suspicion and that he was denied the opportunity to defend himself under the Collective Bargaining Agreement (CBA).
Procedural History
- The Labor Arbiter granted petitioner’s complaint for illegal dismissal and ordered reinstatement on October 26, 1984, finding no reasonable ground for dismissal.
- Upon appeal, the National Labor Relations Commission (NLRC) reversed the Labor Arbiter’s decision on February 12, 1988, dismiss