Title
Ruiz vs. Wendel Osaka Realty Corp.
Case
G.R. No. 189082
Decision Date
Jul 11, 2012
Employee reassigned during investigation of missing files; transfer upheld as valid management prerogative, no constructive dismissal found.

Case Summary (G.R. No. L-20303)

Employment Background

Petitioner Josephine Ruiz was hired on February 1, 1982, as a secretary and subsequently promoted to executive assistant to the president of WORC, Delfin J. Wenceslao, on November 1, 1989. At the time of her employment, WORC was engaged solely in the reclamation project known as Ciudad Nuevo in Cavite City. Ruiz was later informally promoted to Office Manager of DMWAI effective August 1, 2001.

Initiation of Investigation

In 2002, after the Bureau of Internal Revenue (BIR) informed Delfin about tax deficiencies, key company documents reportedly went missing. This prompted an internal investigation during which a woman claimed to possess information about the relevant company records. Ruiz, being the only staff member present during the investigation, was required to fill out a questionnaire but ultimately refused to submit it.

Preventive Suspension

Delfin issued a letter on December 3, 2002, placing Ruiz under a 30-day preventive suspension, asserting that her refusal to answer the questionnaire implied guilt regarding the theft of corporate files. In response, while Ruiz initially did not submit the questionnaire, she later filed for illegal suspension against the respondents on December 10, 2002.

Panel Investigation and Continued Allegations

A panel was established to investigate Ruiz after she filed her complaint. The investigation revealed conflicting statements from her and a witness, Mrs. Sunico, regarding the missing files. Despite the claims made by Ruiz, she maintained her innocence but was informed that she had to report to her reassigned position in Cavite City.

Labor Arbiter's Decision

The Labor Arbiter ruled on March 31, 2004, that Ruiz was not illegally dismissed, citing that she was the prime suspect in an ongoing investigation regarding the leaking of company files to the BIR. The Labor Arbiter only ordered payment of her pro-rata 13th-month pay.

NLRC Appeal and CA Ruling

Ruiz appealed the Labor Arbiter's decision to the National Labor Relations Commission (NLRC), which ruled on July 11, 2007, that she was entitled to separation pay and back wages. This ruling was subsequently reversed by the Court of Appeals (CA) on October 29, 2008, which found the preventive suspension and relocation to be justified given the circumstances.

Supreme Court Review

The Supreme Court's review encompassed whether Ruiz was constructively dismissed due to her reassignment. The CA justified the transfer based on the gravity of the alleged offense, emphasizing the employer's inherent right to assign employees in pursuit of legitimate business interests.

Justification for Transfer and Management's Prerogative

The Court affirmed the lower court's ruling, stating that the transfer was not made in bad faith and was necessary to protect company interests during an investigation. Management’s prerogative to reassign an employee pending the outcome of the

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