G.R. No. 141093 , February 20, 2001
PRUDENTIAL BANK AND TRUST COMPANY, petitioner, vs. CLARITA T. REYES, respondent.

FACTS

Prior to her dismissal, respondent Clarita T. Reyes was the Assistant Vice President in the foreign department of Prudential Bank and Trust Company. Her duties included collecting checks drawn against overseas banks and ensuring the collection of foreign bills or checks purchased. The Bank’s auditors discovered that two checks, totaling US$224,650.00, received on April 6, 1989, drawn by Sanford Trading against Hongkong and Shanghai Banking Corporation (HSBC) in favor of Filipinas Tyrom, were not sent for collection on the alleged order of Reyes until they became stale. A committee was created to investigate. Reyes was informed of the charges and asked to explain. She requested copies of documents and an extension, which were refused, leading her to make a general denial and request a formal investigation. She failed to attend the formal investigation despite notice. The committee found that Reyes authorized the crediting of Filipinas Tyrom’s account for the checks’ value on the day they were received. A transmittal letter for collection was prepared the next day, but Reyes instructed the remittance clerk to change the addressee and then to hold the letters and checks for further instructions. The checks remained unsent. About fifteen months later, the checks were discovered during an audit. The Bank’s legal counsel advised sending them for collection, but Reyes allegedly withheld this advice from her superior and relayed a false advice, further delaying action. The checks were finally sent but returned with the reason “account closed.” The Board of Directors resolved not to re-elect Reyes to her position. She was terminated effective July 19, 1991, via a letter stating loss of trust and confidence due to serious misconduct resulting in monetary loss. Reyes filed a complaint for illegal dismissal. The Labor Arbiter ruled in her favor, ordering payment of back wages, separation pay, and other benefits. The NLRC reversed the Labor Arbiter and dismissed the complaint. The Court of Appeals, on a petition for certiorari, reversed the NLRC and reinstated the Labor Arbiter’s decision with modification, deleting the award for profit sharing and unpaid fringe benefits for lack of basis. The Bank filed the present petition.

ISSUE

Whether the Court of Appeals erred in finding that respondent Clarita T. Reyes was illegally dismissed.

RULING

No, the Court of Appeals did not err. The Supreme Court affirmed the Decision of the Court of Appeals. The dismissal was illegal. The employer, Prudential Bank, failed to prove by substantial evidence that the dismissal was for a just or authorized cause. The findings of the Labor Arbiter and the Court of Appeals, that the Bank did not comply with procedural due process and that the alleged loss of trust and confidence was not proven, are binding. The Bank’s own evidence showed that the checks were under the custody of a subordinate clerk, not Reyes, and there was no proof she gave instructions to withhold them. The alleged false advice to her superior was also not substantiated. The termination letter itself indicated the dismissal was due to the Board’s resolution not to re-elect her, which is not a valid ground for dismissal under the Labor Code. As an illegally dismissed employee, Reyes is entitled to full backwages and separation pay in lieu of reinstatement. The petition was denied.