G.R. No. 124348 , August 19, 1999
Dominador Sanchez, petitioner, vs. National Labor Relations Commission and Pepsi Cola Products Philippines, Inc., respondents.

FACTS

Petitioner Dominador Sanchez was a route salesman for respondent Pepsi-Cola Products Philippines, Inc. for twenty-three (23) years. His duties included marketing, merchandising, collecting sales proceeds, and delivering products. An audit of his transactions for April and May 1990 revealed a breach of company policy. The audit showed a padding of 200 cases of “empties” (empty bottle containers) during the “load in” (scoring procedure upon return to the plant), resulting in an unaccounted excess worth P13,200.00, and the insertion of 331 cases of “empties” worth P22,252.00 in his load sheet. Petitioner was administratively charged with failure to remit/account for collections, borrowing “empties” from a dealer, and dishonesty—violations punishable by dismissal. In a letter dated July 18, 1990, petitioner admitted he borrowed 200 cases of “empties” from a dealer, brought them into the plant, and converted them into cash to pay for his wife’s medical expenses. After being accorded procedural due process, he was dismissed on November 16, 1990. He filed a complaint for illegal dismissal. The Labor Arbiter ruled in his favor, ordering reinstatement with back wages and damages. The NLRC reversed this decision, dismissing the complaint but ordering Pepsi-Cola to pay separation pay equivalent to one-half month salary per year of service. Petitioner’s motion for reconsideration was denied.

ISSUE

Whether the National Labor Relations Commission gravely abused its discretion in sustaining petitioner’s dismissal from service.

RULING

The Supreme Court ruled that the NLRC did not commit grave abuse of discretion. The Court held that loss of trust and confidence is a valid ground for dismissal under Article 282 of the Labor Code for employees holding positions of responsibility. As a route salesman entrusted with company products and funds, petitioner occupied such a position. His admitted act of borrowing “empties” from a dealer and converting them into cash constituted a serious, work-related offense that justified the loss of trust and confidence. The Court emphasized that the business of a softdrinks company heavily relies on the trustworthiness of its salesmen. While the NLRC found insufficient evidence for some charges, the admitted offense alone was sufficient basis for dismissal. The Court affirmed the NLRC decision, including the award of separation pay in recognition of petitioner’s long service.