Title
Lagahit vs. Pacific Concord Container Lines
Case
G.R. No. 177680
Decision Date
Jan 13, 2016
Jennifer Lagahit, a Sales Manager, was illegally dismissed by Pacific Concord via text message without due process. The Supreme Court ruled her termination unjustified, ordering payment of separation pay, backwages, and interest.

Case Summary (G.R. No. 177680)

Background Facts

In February 2000, Jennifer C. Lagahit was employed by Pacific Concord Container Lines as an Account Executive/Marketing Assistant, subsequently promoted to Sales Manager in January 2002, with a monthly salary of P25,000. On November 8, 2002, while on legitimate work-related duties, she received a message from Monette Cuenca indicating that she was no longer connected with the company. This was followed by public notifications that her employment had ended. Lagahit attempted to reach out to Cuenca but was rebuffed, prompting her to send a letter on November 13, 2002, requesting the settlement of her benefits, and indicating she had been denied due process regarding her termination.

Procedural History

On November 26, 2002, Lagahit filed a complaint for constructive dismissal at the National Labor Relations Commission (NLRC). The respondents claimed that she was not terminated but voluntarily resigned, arguing that valid grounds existed for her dismissal. The Labor Arbiter ruled in favor of Lagahit, declaring her termination illegal due to lack of due process and ordering Pacific Concord to pay separation pay and back wages. The NLRC affirmed this ruling with some modification. However, the Court of Appeals reversed the decision, stating sufficient grounds existed for the termination due to breach of trust.

Issues Raised

In her appeal, Lagahit raised several issues asserting that:

  1. The CA committed grave abuse of discretion in favoring the respondents’ claims over the findings of the Labor Arbiter and NLRC.
  2. The CA erroneously concluded that she had been validly dismissed due to loss of trust and confidence.
  3. She was entitled to her claims for separation pay and back wages.

Court Ruling

The Supreme Court found merit in Lagahit's appeal. The Court clarified that in cases of unlawful dismissal, the burden of proof lies on the employer to show that the dismissal was valid. In this instance, Lagahit successfully demonstrated her termination through concrete evidence, including the text messages and public announcements made by Pacific Concord. The Court noted that the respondents failed to provide compelling evidence supporting their claim that she voluntarily resigned.

Determination of Employment Status

The Court ruled that Lagahit did not resign but was unlawfully terminated. The determination of whether a resignation is valid depends on the employee's clear intention to relinquish their position. Lagahit's actions and communications post-termination demonstrated no intention to resign and were consistent with a claim of unjust termination.

Breach of Trust Consideration

On the issue of whether she breached the trust and confidence reposed by Pacific Concord, the Court articulated that the employer must provide clear and convi

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