G.R. No. 120616 January 14, 1998
Longino Buhisan, petitioner, vs. National Labor Relations Commission, Fifth Division, and San Miguel Corporation, respondents.

FACTS

Petitioner Longino Buhisan was a Warehouse Assistant at San Miguel Corporation’s (SMC) Beer Sales Office in General Santos City, tasked with receiving and depositing cash and check collections. On March 6, 1991, SMC’s Region Finance Officer, Joel D. Jumalon, discovered discrepancies indicating delayed deposits of company funds. Petitioner was confronted and gave explanations. That same evening, after petitioner left the office at 7:24 p.m., a fire broke out at around 8:45 p.m. in the sales office, apparently originating from his office. A container of paint thinner was found under his table. Upon opening the vault after the fire, a cash count revealed a shortage of P101,602.20 from the total collection. Petitioner was relieved of his duties and later dismissed on April 29, 1991, for alleged misappropriation of company funds and arson to destroy evidence. Criminal charges for estafa and arson were filed against him. Petitioner filed a case for illegal dismissal, claiming the charges were fabricated due to his union activities and explaining that deposit delays occurred because a bank representative picked up deposits, causing a lag between company and bank records. He also detailed the control procedures for collections, asserting he turned over the March 6 collection in order to his supervisor, Danilo Fernandez, who placed it in the vault. The Labor Arbiter found the dismissal illegal and awarded separation pay and backwages. The NLRC reversed this decision, dismissing the complaint, giving weight to the City Fiscal’s finding of probable cause for the criminal charges and concluding that SMC’s evidence of misappropriation and arson was substantial. Petitioner filed a motion for reconsideration, which was denied.

ISSUE

Whether the National Labor Relations Commission committed grave abuse of discretion in affirming San Miguel Corporation’s dismissal of Longino Buhisan based on charges of misappropriation of company funds and arson.

RULING

The Supreme Court granted the petition, nullified the NLRC resolutions, and found the dismissal illegal. The Court held that SMC failed to substantiate the charges of misappropriation and arson with clear and convincing evidence. The sworn statements of SMC’s officers and employees were deemed self-serving and insufficient to prove petitioner’s culpability. SMC did not present crucial documentary evidence, such as sales reports, invoices, and deposit slips, that would have proven the alleged misappropriation. Regarding arson, the Court found the evidence inconclusive; petitioner had left the office more than an hour before the fire started, and no one saw him re-enter. The presence of a paint thinner can was considered too crude an incendiary device to support the theory of external ignition. The Court also noted the inconsistency in SMC’s theory that petitioner stole a specific amount but left a larger sum in the vault to burn. The City Fiscal’s finding of probable cause for the criminal cases was not controlling in the labor case, which requires substantial evidence. Consequently, the Court ordered SMC to reinstate petitioner without loss of seniority rights or, if reinstatement is not feasible, to pay separation pay equivalent to one month’s pay per year of service, plus back wages from the date of dismissal until reinstatement or actual payment, attorney’s fees, and costs.