G.R. No. 106341 September 2, 1994
Delfin G. Villarama, petitioner, vs. National Labor Relations Commission and Golden Donuts, Inc., respondents.
FACTS
Petitioner Delfin Villarama was employed as Materials Manager by private respondent Golden Donuts, Inc. On July 15, 1989, a clerk-typist in his department, Divina Gonzaga, submitted a resignation letter detailing an incident of sexual harassment allegedly committed by Villarama. She recounted that after a dinner with Villarama and other male colleagues, she was brought to a motel against her will. This letter prompted the company president to call a meeting with Villarama on August 4, 1989, where he was asked to explain. It appears an agreement was reached for Villarama to resign, confirmed by a company letter dated August 7, 1989, setting his separation for August 23.
Villarama subsequently had a change of heart. In a letter dated August 16, 1989, he sought reconsideration of the decision to terminate him, arguing his contributions outweighed his error and requesting to resume duties. As he failed to submit his resignation letter as agreed, Golden Donuts dismissed him on August 23, 1989. Villarama then filed a complaint for illegal dismissal.
ISSUE
Whether petitioner Delfin Villarama was illegally dismissed.
RULING
The Supreme Court ruled that the dismissal was for a valid cause but procedurally defective. The Court found substantial evidence to support the charge of sexual harassment. Gonzaga’s detailed letter-resignation constituted a credible account of the incident. The Court emphasized that sexual harassment, especially when committed by a person with moral ascendancy over a subordinate, is a reprehensible act constituting serious misconduct. This provides a valid ground for dismissal under the Labor Code as it reflects on the employee’s moral character.
However, the employer failed to comply with the twin requirements of substantive and procedural due process. While a valid cause existed, Golden Donuts did not furnish Villarama with a written notice stating the particular acts constituting the grounds for dismissal and did not conduct a formal investigation where he could be heard. The agreement for him to resign did not cure this procedural lapse. Consequently, while reinstatement and backwages were not warranted due to the existence of a valid cause, the employer was liable for indemnity for the procedural violation. The NLRC’s award of separation pay was deleted, as separation pay is not granted when dismissal is for serious misconduct. The Court modified the NLRC resolution, ordering Golden Donuts to pay Villarama P1,000.00 as indemnity for non-observance of due process, plus his earned unused vacation/sick leave and proportionate 13th month pay.