GR 114313; (July, 1996) (Digest)
G.R. No. 114313 July 29, 1996
MGG MARINE SERVICES, INC., DOROTEO C. GARLAN and CESAR ROTILO, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and ELIZABETH A. MOLINA, respondents.
FACTS
Petitioner MGG Marine Services, Inc. employed private respondent Elizabeth A. Molina as comptroller and finance officer. Before leaving for abroad, company president Doroteo C. Garlan instructed Molina to pay only specific creditors using pre-signed checks and corresponding vouchers, leaving her 16 blank checks with stated voucher amounts totaling P224,131.50. The company had approximately P1.5 million in its bank account. Upon the officers’ return, they discovered the bank balance was reduced to only P5,720.00. Molina had written amounts on the blank checks far exceeding the authorized sums, withdrawing an aggregate of P1,515,823.00, and paid creditors not specified in the vouchers, causing a collapse in the company’s cash flow. Molina did not deny these actions but claimed she did not personally profit, as all funds were paid to company creditors. MGG subsequently dismissed Molina for loss of trust and confidence.
The Labor Arbiter ruled the dismissal illegal, finding no proof of misappropriation and noting the dismissal of an estafa case against Molina. The NLRC affirmed the decision. Petitioners elevated the case via certiorari, arguing the dismissal was for a just cause.
ISSUE
1. Was there a just cause for Molina’s dismissal on the ground of loss of trust and confidence?
2. What is the consequence of non-observance of due process in dismissal?
RULING
Yes, there was a just cause for dismissal. The Supreme Court held that Molina’s position as comptroller was one of utmost confidence. Her deliberate violation of explicit and categorical instructions regarding fund disbursement, which resulted in the depletion of corporate funds and the collapse of the company’s cash flow, constituted a breach of trust sufficient to justify dismissal. The law does not require proof of misappropriation or personal gain; the willful disregard of specific directives by a fiduciary employee erodes the trust essential to the employment relationship.
However, petitioners failed to comply with the twin-notice requirement of due process. The Court found that a mere internal audit investigation did not satisfy the procedural safeguards of giving the employee a written notice specifying the grounds for dismissal and a reasonable opportunity to respond. Consequently, while the dismissal was for a valid cause, the employer is liable for non-compliance with statutory due process. The Court modified the NLRC decision by deleting the awards for separation pay, moral damages, and attorney’s fees. Molina was awarded only her unpaid salaries and overtime pay. Additionally, petitioners were ordered to pay Molina an indemnity of P1,000.00 for the violation of her procedural due process rights.