Title
Cosmos Bottling Corp. vs. Fermin
Case
G.R. No. 193676
Decision Date
Jun 20, 2012
Longtime employee dismissed for theft after hiding co-worker's phone as a prank; court upheld termination, ruling theft as serious misconduct, denying benefits.

Case Summary (G.R. No. 193676)

Case Background

Fermin was accused on December 16, 2002, of stealing a cellphone owned by his colleague, Luis Braga. Following a show-cause memorandum, Fermin explained that he had concealed the phone as a prank, intending to return it. However, COSMOS conducted an investigation that led to Fermin’s dismissal on October 2, 2003, for gross misconduct. Despite a lack of material damage to COSMOS and a later affidavit from Braga stating that Fermin meant no harm, the Labor Arbiter dismissed Fermin’s complaint for illegal dismissal.

Lower Tribunal Rulings

Following the Labor Arbiter's dismissal, Fermin appealed to the National Labor Relations Commission (NLRC), which affirmed the dismissal decision as valid. Subsequently, Fermin escalated the matter to the Court of Appeals (CA). The CA reversed the lower tribunals' decisions and ordered COSMOS to pay Fermin his full retirement benefits, arguing that the misconduct did not amount to serious misconduct justifying termination.

Court of Appeals Reasoning

The CA found that while Fermin’s act of taking the phone constituted theft, the penalty of dismissal was disproportionate to the offense, particularly due to the nature of the theft being against a co-worker rather than the employer. The CA emphasized COSMOS’s failure to demonstrate that Fermin acted with malicious intent and cited Braga’s later recantation to support Fermin’s claim that his actions were merely a prank. The court also suggested that previous infractions could be considered grounds for dismissal only if they were related to the current charge against Fermin.

Supreme Court Jurisdiction and Findings

In its review, the Supreme Court maintained that factual findings from lower administrative bodies are binding if supported by substantial evidence. The primary legal question was whether the dismissal was merited based on the alleged misconduct. The Supreme Court concluded that disability theft, even if intended as a prank, fell under serious misconduct or a similarly serious violation justifying termination, as

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