Title
Civil Service Commission vs. Salas
Case
G.R. No. 123708
Decision Date
Jun 19, 1997
Rafael Salas, a PAGCOR employee, contested his termination for alleged proxy betting. Courts ruled he was not a confidential employee, affirming his security of tenure and ordering reinstatement with back wages.

Case Summary (G.R. No. L-8014)

Background of the Termination

Salas was appointed to PAGCOR on October 7, 1989, but was dismissed on December 3, 1991, on claims of loss of confidence based on intelligence information suggesting his involvement in proxy betting. The allegations were supported by affidavits from customers and adverse results from polygraph tests. Salas's appeals for reinvestigation went unheeded, leading him to seek redress from administrative bodies, ultimately peaking with a petition for certiorari before the Court of Appeals.

Decisions of Lower Courts

Prior to reaching the Supreme Court, the Merit Systems Protection Board (MSPB) ruled against Salas's appeal, classifying his termination as merely the expiration of his term, as he was labeled a confidential employee. Subsequently, CSC upheld this decision. However, upon appeal, the Court of Appeals overturned the CSC resolution, concluding that Salas did not qualify as a confidential employee and thus could not be dismissed on grounds of lost trust.

Legal Arguments and Positions

The main issue on appeal was whether Salas was a confidential employee. The petitioners argued that he was inherently a confidential employee as defined in relevant laws including Section 16 of Presidential Decree No. 1869, which categorizes all PAGCOR employees as confidential appointees. They contended that Salas’s role within the Internal Security Staff entailed sensitive duties, justifying his categorization as a confidential employee.

Conversely, Salas argued that the nature of one's functions, rather than title alone, determined the classification as a confidential employee. He maintained that despite the robust claims made by PAGCOR, the law and previous precedents supported him not being dismissed under the rationale of loss of confidence.

Interpretation of Applicable Laws

In examining the arguments, the Supreme Court analyzed the alignment of the CGS and PAGCOR’s interpretation of confidentiality against established legal frameworks, particularly referencing Section 2, Rule XX of the Revised Civil Service Rules and other provisions in the Civil Service Act of 1959. It found that the classification of a position as confidential must stem not just from executive declarations but from the significant nature of the position itself.

The Court’s Conclusions

The Supreme Court articulated that while the classification of PAGCOR employees under Section 16 of Presidential Decree No. 1869 initially suggested a blanket categorization as confidential appointees, this interpretation must yield to the factual nature of Salas's role. The Court emphasized the necessity of a "close intimacy" between the appointee and the appointing authority to substantiate claims of being primarily confidential.

The Court ultimately upheld the Court of Appeals ruling, affirming that Salas did not exhibit the

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