G.R. No. 118647 September 23, 1999
CONSOLIDATED FOOD CORPORATION/PRESIDENT JOHN GOKONGWEI, GEN. MGR. VICTORIO FADRILAN, JR., and UNIT MGR. JAIME S. ABALOS, petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION AND WILFREDO M. BARON, respondents.

FACTS

Petitioner Consolidated Food Corporation (CFC) is a domestic corporation engaged in the sale of food products, with petitioner John Gokongwei as its President, Victorio V. Fadrilan Jr. as General Manager, and Jaime S. Abalos as Unit Manager for Northern Luzon. Private respondent Wilfredo M. Baron was a Bonded Merchandiser at CFC since November 1985, receiving commendations for good sales performance. He was later assigned as Acting Section Manager for Northern Luzon, receiving a basic salary plus commissions. On 16 July 1990, a killer earthquake hit Baguio City, damaging Presto ice cream products in customers’ possession. On 1 August 1990, an Action Plan was issued, including a cut-off audit of Baron to determine accountabilities. An audit on 15 August 1990 reflected a cash shortage of P1,985.12. A subsequent audit report dated 1 December 1990 indicated discrepancies, suggesting Baron’s funds could have been manipulated, showing a potential shortage of P66,725.68. On 15 January 1991, a memorandum was sent to Baron informing him of the discrepancies and suspending his sales route, instructing him to report daily to the head office. On 18 February 1991, petitioners assigned another Section Manager to Baron’s area. On 13 April 1991, petitioners sent a memorandum to Baron stating his explanations were unsatisfactory and requiring him to explain within 48 hours why no disciplinary action should be taken. On 15 April 1991, Baron submitted a letter of resignation. Petitioners accepted the resignation on 17 April 1991. Baron filed a complaint for illegal dismissal. The Labor Arbiter found constructive dismissal and ordered reinstatement with back wages and 13th month pay. The NLRC affirmed the decision.

ISSUE

Whether or not private respondent Wilfredo M. Baron was constructively dismissed from his employment.

RULING

No. The Supreme Court ruled that private respondent was not constructively dismissed but voluntarily resigned. The Court found that Baron’s resignation was voluntary, as shown by his clear letter of resignation stating he could no longer bear the mental torture and agony, and his subsequent acceptance of separation benefits. The audit findings, which revealed serious discrepancies and a potential shortage, constituted a valid basis for the company’s investigation and the instructions for him to report to the head office. These instructions were a lawful exercise of management prerogative and did not amount to constructive dismissal. However, the Court found that petitioners withheld Baron’s salaries from 1 January 1991 until his resignation on 15 April 1991 without justification. Therefore, the NLRC decision was reversed and set aside. Petitioners were ordered jointly and severally to pay Baron unpaid salaries of P8,250.05, proportionate 13th month pay of P687.50, and attorney’s fees of P1,000.00.