GR 119935; (February, 1997) (Digest)
G.R. No. 119935 February 3, 1997
UNITED SOUTH DOCKHANDLERS, INC., petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION (Fourth Division) and BEATO SINGURAN, respondents.
FACTS
Petitioner United South Dockhandlers, Inc. (USDI) dismissed its foreman/timekeeper, respondent Beato Singuran, after an investigation. The cause was loss of trust and confidence arising from dishonesty. Singuran, without company consent, ordered subordinates to load two metal lamp posts from USDI’s custody into a truck and delivered them to a homeowners’ association. The lamp posts, part of bad order cargo, were later returned only upon USDI’s demand. Singuran admitted the act during the investigation. A criminal information for qualified theft was also recommended against him.
Singuran filed an illegal dismissal complaint. The Labor Arbiter found the dismissal valid due to breach of trust but deemed dismissal too severe a penalty considering his 17 years of service, lack of prior derogatory record, the minimal value of the items, and their eventual return. Thus, the Arbiter awarded separation pay. The NLRC affirmed this decision, characterizing the act as a “small misdeed” causing no damage and emphasizing the employee’s long service and need for tenurial security.
ISSUE
Whether a validly dismissed employee, whose dismissal is based on serious misconduct involving dishonesty and loss of trust and confidence, is entitled to separation pay.
RULING
No. The Supreme Court granted the petition and deleted the award of separation pay. The Court reiterated the doctrine established in PLDT v. NLRC that separation pay, as a measure of social justice, is not warranted when an employee is validly dismissed for serious misconduct or causes reflecting on moral character, such as dishonesty or theft. The rationale is to avoid rewarding wrongdoing, which would encourage similar offenses and undermine labor discipline.
The Court found that Singuran, occupying a position of trust, committed an act involving moral turpitude by misappropriating company property. The fact that the items were recovered did not negate the dishonesty or the breach of trust. His long service, rather than mitigating the offense, aggravated his disloyalty. The NLRC’s characterization of the act as a “minor misdeed” was erroneous. Since the dismissal was for a just cause involving serious misconduct, the award of separation pay had no legal basis.