Title
Philippine Long Distance Telephone Co. vs. Montemayor
Case
G.R. No. 88626
Decision Date
Oct 12, 1990
PLDT dismissed employees for dishonesty; SC upheld dismissal of Totesora and Marcos but reinstated Macabenta, ruling her a regular employee under Labor Code.

Case Summary (G.R. No. 187731)

Facts of the Case

The factual background centers on the termination of employment of the three respondents, who were Traffic Operators at PLDT's Davao Exchange. Totesora and Marcos were dismissed for allegedly making free long-distance calls, while Macabenta's probationary employment was terminated for failure to meet minimum employment standards. Totesora and Marcos stated that their actions did not constitute a full violation, while Macabenta argued that her employment status entitled her to regularization.

Voluntary Arbitration and Initial Ruling

The disputes were submitted for voluntary arbitration, with Arbitrator Montemayor ultimately ruling that while Totesora and Marcos had indeed violated company policies, the sanction of dismissal was excessively harsh for a first offense; thus, he recommended their reassignment instead. In contrast, he noted the unusual delay in Macabenta’s probationary classification, concluding that she was entitled to reinstatement as a regular employee.

Petitioner's Claims of Error

PLDT's petition for certiorari challenged Montemayor’s findings, alleging grave abuse of discretion in ordering the reinstatement of Totesora and Marcos despite their violations, as well as in classifying Macabenta as a regular employee. The company asserted that the acts committed by Totesora and Marcos warranted dismissal and maintained that the arbiter did not have the authority to contravene the established company policies.

Judicial Review of Arbitration Findings

The Supreme Court highlighted the principle that findings by voluntary arbitrators, operating in a quasi-judicial capacity, should generally be respected. The Court clarified that while such decisions uphold a degree of finality, they remain subject to judicial review, particularly in instances of jurisdictional issues or abuse of discretion.

Conclusion on Dismissal of Totesora and Marcos

The Court found that Montemayor had gravely abused his discretion by reinstating Totesora and Marcos, whose actions were deemed detrimental to the employer-employee trust relationship. The acts of dishonesty they committed were substantial enough to justify dismissal according to company rules, despite the argument that outright termination for a first offense might usually be considered excessive.

Macabenta's Employment Status

Conversely, the Court ack

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