GR 167385; (December, 2005) (Digest)
G.R. No. 167385 December 13, 2005
JESUS B. LOPEZ, Petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (NLRC) SECOND DIVISION, HON. COMMISSIONERS ANGELITA GACUTAN, VICTORIANO CALAYCAY, RAUL AQUINO, MAYNILAD WATER SERVICES, INC., BENJAMIN REYES and CRISTINA M. BONIFACIO, Respondents.
FACTS
Petitioner Jesus B. Lopez, a Senior Engineering Assistant at Maynilad Water Services, Inc., was accused by a customer, Regina Gopez, of entering into an agreement to repair her water meter for a fee of P500, which he allegedly failed to perform despite payment. Maynilad required Lopez to answer the charges, which he denied, claiming he advised Gopez to file a proper job order. Following an investigation, Maynilad dismissed Lopez for serious misconduct, specifically for contracting unauthorized work for a fee. Lopez filed a complaint for illegal dismissal.
The Labor Arbiter ruled in favor of Lopez, declaring his dismissal illegal due to lack of proof that he promised to work on the waterline or received money. The NLRC, on appeal, reversed the decision, declaring the dismissal legal. It found that Lopez did enter into a contractual agreement and received money through a conduit, constituting a violation of company policy on conflict of interest, which is a ground for dismissal based on loss of trust and confidence. The Court of Appeals affirmed the NLRC’s ruling.
ISSUE
Whether the petitioner was validly dismissed from employment.
RULING
The Supreme Court denied the petition and affirmed the Court of Appeals’ decision, with modification. The Court upheld the factual findings of the NLRC and the Court of Appeals that Lopez contracted unauthorized work and accepted payment from a customer, which findings are generally final and binding in a Rule 45 petition. The legal logic centered on the characterization of this act as serious misconduct warranting dismissal.
Misconduct, to be a just cause for dismissal, must be serious, relate to the performance of the employee’s duties, and show that the employee has become unfit to continue working. By engaging in a prohibited contract for a fee with a customer, Lopez placed himself in a conflict of interest with his employer, competing with Maynilad’s business. This act of dishonesty and disloyalty constituted serious misconduct connected to his work as a team leader, eroding the trust and confidence essential to his position. An employer has the right to dismiss an employee for such acts which are patently inimical to its interests. The Court, however, deleted the NLRC’s award of financial assistance to Lopez, holding that such equitable relief is not warranted where dismissal is based on serious misconduct reflecting on the employee’s moral character.