Case Summary (G.R. No. 90786)
Factual Background
Salaw’s duties included inspecting and appraising foreclosed assets, valuing real properties, and verifying titles’ authenticity and encumbrances. On November 27, 1984, CIS officers obtained from him, without counsel, a sworn statement admitting to conspiracy with a co-employee to sell twenty foreclosed sewing machines and electric generators for ₱60,000, divided equally.
Administrative Investigation and Termination
On December 5, 1984, Rollie Tuazon summoned Salaw to appear before the PDIC on February 28, 1985 “without counsel or representative.” After this hearing, the bank dismissed Salaw effective March 27, 1985, citing serious misconduct, willful disobedience, fraud, and breach of trust.
Procedural History
April 17, 1985: Salaw filed for illegal dismissal with the NLRC (Case No. NCR-4-1272-85), submitting an affidavit recanting his CIS statement.
March 29, 1988: Labor Arbiter Villarente ruled dismissal illegal, ordering reinstatement with backwages.
July 26, 1989: NLRC reversed and dismissed the complaint.
October 31, 1989: NLRC denied reconsideration.
September 27, 1991: Supreme Court granted review on certiorari.
Issue
Whether the petitioner’s dismissal complied with substantive and procedural requirements under the 1987 Constitution and the Labor Code.
Applicable Law on Dismissal
Under the Labor Code (Articles 279, 281, 282-284) and its IRR (Rule XIV, Book V), dismissal must be for a valid cause and preceded by due process: notice of charges and a hearing allowing defense, including assistance of counsel.
Due Process Requirements
The 1987 Constitution, Article III, Section 12(1), guarantees any person under investigation the right to competent and independent counsel. Section 12(3) renders inadmissible any confession obtained in violation of these rights.
Violation of Due Process
The PDIC hearing letter expressly barred counsel, depriving Salaw of the opportunity to present evidence, confront witnesses, or defend himself. No justification was offered for excluding representation, rendering the procedure irregular and unfair.
Inadmissibility of Coerced Confession
The bank relied solely on Salaw’s CIS-extracted confession—obtained without counsel—as proof of misconduct. Under Section 12(3) of the 1987 Constitution, that confession is inadmissible, leaving the dismissal unsupported by admissible evidence.
Absence of Substantial Evidence
Respondents failed to present minutes of the PDIC proceedings or any other documentary or testim
...continue readingCase Syllabus (G.R. No. 90786)
Facts of the Case
- Espero Santos Salaw was employed by Associated Bank in September 1967 as a credit investigator‐appraiser.
- His duties included inspecting, investigating, appraising, and identifying foreclosed assets; valuing real properties; and verifying titles and encumbrances on mortgaged properties.
- On November 27, 1984, the CIS of the Philippine Constabulary extracted a Sworn Statement from Salaw (without counsel) alleging he and a co‐employee sold foreclosed sewing machines and generators for ₱60,000, splitting proceeds equally.
- On December 5, 1984, Bank Manager Rollie Tuazon convened the bank’s Personnel Discipline and Investigation Committee (PDIC) to investigate Salaw.
- A letter dated February 25, 1985 (but setting a hearing on February 28, 1985 at 11:00 a.m.) informed Salaw his appearance was “accepted” but explicitly denied him counsel or representative.
- On April 1, 1985 (effective March 27, 1985), Salaw was terminated for alleged serious misconduct, willful disobedience, fraud, and breach of trust.
Procedural History
- April 17, 1985: Salaw filed a complaint for illegal dismissal with the NLRC (Case No. NCR‐4‐1272‐85), submitting an affidavit recanting his CIS Sworn Statement.
- March 29, 1988: Labor Arbiter Benigno C. Villarente, Jr. declared Salaw’s dismissal illegal, ordering reinstatement with backwages and benefits.
- July 26, 1989: NLRC reversed the labor arbiter’s decision and dismissed the case for lack of merit.
- October 31, 1989: NLRC denied Salaw’s motion for reconsideration.
- September 27, 1991: Petition for review on certiorari under G.R. No. 90786 was resolved by the Supreme Court.
Issue
- Whether the dismissal of Espero Santos Salaw by the private respondents was legally justified under the Labor Code and the Constitution.