Title
Benedict Princer San Juan vs. Regus Service Centre Philippines B.V.
Case
G.R. No. 246531
Decision Date
Oct 4, 2023
A manager was dismissed for alleged sexual misconduct during a team-building event; courts upheld termination due to breach of trust and loss of confidence.

Case Summary (G.R. No. 246531)

Factual Background

During the team building activity, it was reported that San Juan engaged in inappropriate behavior while under the influence of alcohol. San Juan allegedly attempted to jump into a pool from a second-floor balcony and was later found in a room designated for female employees with his subordinate, Ruben Cruz (Cruz). The event led to allegations of sexual misconduct against San Juan, which were initially reported to the Head of Human Resources of Regus, Maria Isabel Bernal.

Investigation and Allegations

Following the incident, Regus conducted an investigation, interviewing multiple employees who provided inconsistent accounts of the events. Cruz alleged that San Juan attempted to sexually assault him during the incident. In contrast, San Juan denied these allegations, claiming that Cruz was the one who molested him. San Juan also faced additional scrutiny for discussing the incident with other employees during the investigation.

Disciplinary Actions

Regus placed both San Juan and Cruz under preventive suspension pending the investigation, issuing several Notices to Explain, accusing San Juan of violations of the company's policies, including indecent behavior, acts violating sexual harassment laws, and willful breach of trust. San Juan failed to provide a timely written explanation, leading to an administrative hearing, where he reiterated his innocence but acknowledged his intoxication during the incident.

Termination and Legal Proceedings

On August 20, 2014, San Juan was formally terminated, with Regus citing his severe misconduct as just cause for dismissal. San Juan contested his termination, claiming it was illegal and asserting that there was insufficient evidence for his dismissal. His initial complaint was dismissed by the Labor Arbiter (LA), who found just cause for his dismissal under Article 282 of the Labor Code but ordered Regus to pay his 13th-month benefit.

NLRC and CA Rulings

San Juan appealed to the National Labor Relations Commission (NLRC), which initially ruled in his favor, stating that Regus failed to establish San Juan's role as one of trust and that his dismissal was too harsh. However, upon Regus's petition for certiorari, the Court of Appeals (CA) reinstated the decision of the LA, concluding that sufficient grounds existed for San Juan's termination due to loss of trust and confidence.

Supreme Court Ruling

The Supreme Court ruled that no grave abuse of discretion occurred in the CA's decision, emphasizing the need for just cause in terminating an employee

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