Title
Barrio Fiesta Restaurant vs. Beronia
Case
G.R. No. 206690
Decision Date
Jul 11, 2016
Employee dismissed for offsetting minor cash overage; rehired later. SC upheld illegal dismissal due to lack of evidence and procedural lapses.
barrio fiesta restaurant
beronia
cashier

Case Summary (G.R. No. 206690)

Factual Background

The respondent alleged long employment with the petitioners beginning February 12, 1988 and serving as cashier in various restaurants until an incident on September 5, 2008, when a prior cashier failed to record a sale of P582.00 causing an apparent overage in the register at the start of respondent's shift. Respondent admitted in writing that she applied that overage to offset shortages she had incurred on three occasions, explaining that such offsetting was a customary practice among cashiers at Barrio Fiesta and was permitted informally by secretaries who checked the cash book. The petitioners asserted earlier disciplinary problems by respondent, including suspensions for tardiness and for berating co-employees, and an earlier incident on October 2, 2006 where respondent allegedly released cash to a third person without authority. The petitioners treated the offsetting as a breach of trust and dismissed respondent for just cause; they later rehired her on a fixed contract as acting supervisor from February 4, 2009 to July 30, 2009 and thereafter declined further employment.

Labor Arbiter Proceedings and Ruling

The Labor Arbiter found respondent illegally dismissed in a decision dated May 31, 2010, awarding separation pay in lieu of reinstatement and backwages from the date of dismissal until signing of the decision. The Labor Arbiter concluded that the dismissal penalty was grossly disproportionate to the offense because the petitioners did not prove bad faith, the amount involved was negligible, the alleged practice of offsetting supported a finding of good faith, respondent's long service and the fact that the offsetting was her first offense merited compassion, and the petitioners' subsequent rehiring of respondent as acting supervisor undermined the claim of loss of trust and confidence.

NLRC Decision

On petitioners' appeal, the NLRC reversed the Labor Arbiter in its December 7, 2010 decision, holding that respondent occupied a position of utmost trust and confidence as cashier and that the offsetting, together with the prior incident of releasing cash without authority, justified dismissal for loss of trust. The NLRC found that respondent did not prove authorization for the offsetting and observed that the secretary, not respondent, reported the irregularity to management. The NLRC treated the amount involved as immaterial to the question of breach of trust.

Proceedings before the Court of Appeals

Respondent sought certiorari review in the Court of Appeals. The petitioners, through their former counsel, received various CA notices but failed to file a timely comment, and the CA ultimately submitted the case for decision without the petitioners' comment. In its June 21, 2012 decision, the CA reinstated the Labor Arbiter and held that respondent was dismissed without just cause and without due process. The CA reasoned that the petitioners failed to prove a company prohibition against offsetting, presented the memorandum on cashier reporting only belatedly and without certification, failed to establish willful misconduct or theft in the prior incident, and that the rehiring of respondent negated loss of trust. The petitioners later filed an Entry of Appearance with Manifestation and Motion for Reconsideration on November 29, 2012, which the CA denied in its April 5, 2013 resolution as filed 138 days late.

Petition to the Supreme Court and Issues Presented

The petitioners sought review by the Supreme Court, assigning reversible errors in the CA's rulings principally that the CA erred in (1) declaring the petitioners' motion for reconsideration filed late, (2) holding that respondent was illegally dismissed, and (3) finding that respondent was denied due process. The dispositive procedural question before the Supreme Court was whether the CA correctly denied the petitioners' motion for reconsideration for belated filing, and the substantive question was whether the CA erred in reinstating the Labor Arbiter's finding of illegal dismissal.

Petitioners' Contentions before the Supreme Court

The petitioners contended that the CA should liberally apply procedural rules because they reasonably believed they remained represented by their former counsel Ligon, Solis, Mejia, Florendo (through Atty. Richard Neil S. Chua), and that a miscommunication with that law firm excused their delay in filing a motion for reconsideration. On the merits, the petitioners maintained that respondent committed acts of serious misconduct and loss of trust by engaging in offsetting and by prior unauthorized cash releases, that respondent admitted the offsetting, and that the petitioners had the prerogative to discipline employees consistent with company rules and regulations. The petitioners also argued that respondent was afforded due process because she received a memorandum notifying her of charges and was directed to submit a written explanation within 24 hours.

Respondent's Contentions before the Supreme Court

Respondent urged denial of the petition, asserting that the petitioners' motion for reconsideration was untimely and that their attribution of fault to former counsel did not excuse the delay. On the merits, respondent maintained that the offsetting did not amount to willful fraud or breach justifying dismissal, that she explained the circumstances including the prior cashier's failure to record the sale, that the petitioners failed to prove prior infractions or theft, and that the petitioners' subsequent rehiring of her undermined any claim of loss of trust. Respondent also asserted that the 24-hour period to prepare a written explanation did not constitute adequate opportunity to be heard.

The Supreme Court’s Ruling on Procedural Default

The Supreme Court denied the petition and affirmed that the CA did not err in treating the petitioners' motion for reconsideration as untimely. The Court observed that the petitioners received the CA decision copy on June 29, 2012 and had until July 14, 2012 (or July 16, 2012 because July 14 was a Saturday) to file a motion for reconsideration but only filed on November 29, 2012, thus violating the non-extendible 15-day reglementary period under Section 1, Rule 52, Rules of Court. The Court reiterated that a belated motion for reconsideration forecloses the right to appeal and that the rules prescribing reglementary periods are mandatory to ensure prompt judicial administration.

The Supreme Court’s Reasoning on Counsel Negligence and Finality

The Court rejected the petitioners' excuse of counsel negligence as imputable to them. The Court noted record evidence that petitioners Ilagan and Ikeda personally signed an opposition at the NLRC level dated January 5, 2011, indicati

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