Title
Sampaguita Garments Corp. vs. National Labor Relations Commission
Case
G.R. No. 102406
Decision Date
Jun 17, 1994
Employee dismissed for theft; NLRC ordered reinstatement, but Supreme Court ruled criminal conviction as supervening event, denying reinstatement and back wages, awarding P1,000 for due process violation.

Case Summary (G.R. No. 102406)

Dismissal and Administrative Proceedings

On April 14, 1987, Emilia B. Santos was accused of theft for attempting to remove a piece of cloth belonging to Sampaguita Garments Corporation without authorization. Following this incident, the petitioner dismissed Santos, prompting her to file a complaint for illegal dismissal. Initially, the labor arbiter upheld the dismissal; however, the NLRC reversed this decision, ordering Santos's reinstatement with back wages.

Criminal Proceedings

Concurrently, Sampaguita Garments Corporation pursued a criminal charge against Santos for theft in the Municipal Trial Court of Caloocan City, which resulted in a conviction. The trial court sentenced Santos to an indeterminate penalty, a decision that was later affirmed by the Regional Trial Court. This conviction became a pivotal factor in subsequent proceedings, as it raised questions about the validity of reinstating Santos despite her criminal conviction.

NLRC's Authority Post-Conviction

Despite the NLRC's prior ruling ordering reinstatement, the petitioner argued that Santos's conviction in the criminal case rendered the administrative decision unjust. The NLRC initially maintained that their decision was still valid since it had become final and executory. However, the petitioner's position was that allowing reinstatement would unfairly reward Santos after being convicted of a crime involving moral turpitude.

Separation Pay and Legal Precedents

The Solicitor General acknowledged the impracticality of reinstatement given Santos's criminal conviction and suggested instead the provision of separation pay. However, the Court rejected this proposal, citing the legal precedent established in PLDT v. NLRC, which determined that separation pay should not be granted to employees dismissed for serious misconduct or moral offenses. The rationale behind this ruling was to prevent a scenario where dismissed employees could expect leniency or reward for misconduct.

Final Judgment and Implications

Ultimately, the Court held that while the NLRC's decision had become final and executory, the subsequent criminal conviction constituted a supervening event that justified its reconsideration. Thus, the NLRC's order for reinstatement and back wages was set aside. The only compensation owed to Santos was a modest indemnity of P1,000.00 for the procedural deficiencies in her dismissal. The Court emphasized that erroneously granting reinstatem

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