Title
Inocente vs. St. Vincent Foundation for Children and Aging, Inc.
Case
G.R. No. 202621
Decision Date
Jun 22, 2016
Zaida Inocente, dismissed for violating St. Vincent’s Non-Fraternization Policy, won her illegal dismissal case as the Supreme Court ruled her consensual, private relationship was neither immoral nor prejudicial to the employer.

Case Summary (G.R. No. 202621)

Factual Antecedents

Zaida joined St. Vincent in 2000 as Program Assistant, promoted in 2001 to Program Officer with supervisory duties over program implementation, staff training, policy formulation, budgeting and reporting. In 2002 she began a discreet romantic relationship with co-employee Marlon Inocente, who resigned in July 2008.

Adoption of Non-Fraternization Policy

In September 2006 St. Vincent formally adopted CFCA Policy 4.2.2.3, “Non-Fraternization Policy,” which “strongly discourages” employees in supervisory roles from engaging in consensual romantic or sexual relationships with colleagues or volunteers to avoid moral impropriety and workplace conflicts.

Personal Circumstances and Medical Leave

February 19 and March 31, 2009, Zaida suffered a miscarriage and an ectopic pregnancy, respectively, requiring hospitalization and surgery. She informed management and received verbal approval for medical leave through April 21, 2009.

Notice to Explain and Termination

On May 14, 2009, Respondents issued a Show-Cause Letter accusing Zaida of immorality, gross misconduct, violation of Code of Conduct provisions (immoral acts, undue influence, defiance of authority, offense to Christian moral standards) and non-disclosure of her relationship. After Zaida’s written defense, St. Vincent terminated her employment by letter dated May 30, 2009.

Labor Tribunal Rulings

The Labor Arbiter (Nov. 27, 2009) and the NLRC (Oct. 28, 2010; Jan. 11, 2011 resolution) upheld the dismissal as a valid exercise of management prerogative, finding dishonesty, willful breach of trust and serious misconduct. The Court of Appeals (Feb. 27, 2012 decision; July 11, 2012 resolution) likewise denied certiorari relief, affirming that Zaida’s undisclosed intimate relationship violated both the Policy and St. Vincent’s Christian values.

Petition Before the Supreme Court

Zaida invoked Rule 45, arguing that the Non-Fraternization Policy was an unreasonable management prerogative infringing constitutional rights, that her conduct was private and pre-dated the Policy, and that her dismissal violated substantive and procedural due process, the Labor Code’s anti-discrimination provisions (Article 137[2]), and the Magna Carta of Women.

Respondents’ Opposition

Respondents contended the petition raised factual issues barred under Rule 45 and renewed that the dismissal was justified by immorality, serious misconduct and willful breach of trust—all valid causes under Articles 282 and 277 of the Labor Code—and that pregnancy played no role in the decision.

Rule 45 Review Scope

Under Rule 45, the Supreme Court examines legal errors by the CA in determining whether the NLRC committed grave abuse of discretion. Factual findings are generally conclusive unless tainted by arbitrariness, misapprehension of facts or irrelevant considerations.

Constitutional and Statutory Framework

Because the decision date is June 22, 2016, the 1987 Constitution applies. Article XIII, Section 3 imposes on employers the burden to prove just causes for dismissal and to comply with due process. The Labor Code (Articles 282–284; procedural requirements under Article 277 and its IRR) enumerates valid grounds and mandates written notices and a hearing opportunity.

Validity of Dismissal—Just Causes

Respondents based dismissal on: (1) immoral out-of-wedlock relationship; (2) violating the Non-Fraternization Policy by non-disclosure; and (3) breach of Code of Conduct (immorality, undue influence, defiance of authority). The tribunals characterized these as serious misconduct and willful breach of trust.

Immorality and Prejudice to Interests

“Immorality” under secular standards requires willful, shameless conduct offensive to community morals. Zaida’s consensual, discreet relationship with a non-impeded adult partner, maintained in privacy and culminating in marriage, did not offend secular moral norms nor contravene any law. Respondents failed to show any prejudice to St. Vincent’s interests arising from that relationship.

Non-Fraternization Policy Interpretation

The Policy merely “strongly discourages” consensual relationships for supervisory employees; it neither prohibits them nor mandates disclosure. “Discourage” implies disapproval, not a binding prohibition. Absent any showing of abuse of supervisory authority or tangible harm, Zaida did not violate the Policy by maintaining a private relationship.

Code of Conduct Violations

Allegations of immoral or indecent acts, undue influence and defiance rest on the und

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