GR 119527; (July, 1996) (Digest)
G.R. No. 119527 July 3, 1996
EVELYN J. GARCIA, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, THIRD DIVISION, HOLY TRINITY ACADEMY, and MSGR. MANUEL GABRIEL, respondents.
FACTS
Petitioner Evelyn Garcia served as the school cashier for Holy Trinity Academy from 1974 until her dismissal on October 5, 1993. Her termination was based on alleged loss of confidence, gross negligence, and dishonesty. The immediate cause was an incident on June 15, 1993, involving a discrepancy of P50,000.00 in a bank deposit. The school, however, relied on broader audit and fact-finding reports revealing multiple irregularities in her handling of funds, including delays in deposits, lack of control over official receipts, and shortages in canteen collections.
Garcia filed a complaint for illegal dismissal. The Labor Arbiter ruled in her favor, ordering separation pay, finding the dismissal invalid and procedurally defective. The National Labor Relations Commission (NLRC) reversed this decision on appeal. It held that Garcia was validly dismissed for gross negligence and loss of trust but ordered the school to pay indemnity for failing to observe due process prior to termination.
ISSUE
Was petitioner Evelyn Garcia’s dismissal valid, and was due process properly observed?
RULING
The Supreme Court affirmed the NLRC’s finding of valid dismissal but modified the indemnity. The dismissal was based on a valid cause. Garcia’s position as cashier was one of utmost trust, requiring absolute honesty due to the daily handling of money. The Court found that the June 1993 incident was not an isolated event but part of a pattern of irregularities uncovered by audits, including infidelity in handling receipts and shortages. These acts collectively constituted gross negligence, breaching the trust essential to her position and justifying dismissal under Article 282 of the Labor Code.
However, the Court agreed that the school failed to comply with procedural due process. Garcia was placed under preventive suspension and investigated by audit and fact-finding committees, but she was never given a genuine opportunity to be heard and defend herself against the specific charges. While the dismissal was for a substantively valid cause, the employer’s failure to observe the twin-notice requirement and a hearing warranted liability for indemnity. Following prevailing jurisprudence, the Court reduced the indemnity awarded by the NLRC from P10,000.00 to P1,000.00. The petition was dismissed.