Title
John Hancock Life Insurance Corp. vs. Davis
Case
G.R. No. 169549
Decision Date
Sep 3, 2008
Employee dismissed for theft against co-worker; Supreme Court upheld termination, ruling theft as analogous to serious misconduct under Labor Code, supported by substantial evidence.

Case Summary (G.R. No. 169549)

Factual Background

On October 18, 2000, Patricia Yuseco reported her wallet missing, discovering that her credit cards had been used for substantial purchases without her knowledge. The NBI obtained security footage from a vendor that captured the individual using Yuseco's credit cards, and both Yuseco and other witnesses identified Joanna Cantre Davis as the person in the video. Consequently, a complaint for qualified theft was filed against Davis, but it was dismissed by the city prosecutor due to insufficient evidence since the related affidavits were not properly verified. In response to the incident, the petitioner placed Davis under preventive suspension and initiated its own investigation.

Legal Proceedings and Findings

Davis filed a complaint for illegal dismissal against her employer, claiming termination without just cause. The labor arbiter ruled in favor of the petitioner, determining that Davis had committed serious misconduct in connection with the theft allegations. The labor arbiter's decision was affirmed by the National Labor Relations Commission (NLRC), which Davis subsequently appealed, asserting that there was no valid cause for her termination given the dismissal of the theft complaint.

Court of Appeals' Decision

The Court of Appeals (CA) found that both the labor arbiter and the NLRC merely relied on the NBI's findings regarding Davis's culpability without independently assessing the evidence. The CA stressed that unverified affidavits fall short of constituting substantial evidence, leading to the conclusion that the dismissal was unjustified. The CA subsequently granted Davis's petition, leading to the petitioner's appeal to the Supreme Court.

Supreme Court's Ruling

The Supreme Court revisited the question of whether substantial evidence existed for the termination of Davis's employment. It clarified that an employer is not precluded from dismissing an employee for serious misconduct based on substantial evidence, even if criminal charges are dismissed due to technicalities. The Court emphasized that, although the theft incident occurred between employees and not against the employer, it still constituted misconduct relevant to the employee's moral integrity and appropriateness for continued employment.

Interpretation of Labor Code Provisions

Under Article 282 of the Labor Code, serious misconduct or willful disobedience by an employee can be grounds for termination. The Court noted that misconduct must be grave and connected to wo

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