G.R. No. 124548 October 8, 1998
MELODY PAULINO LOPEZ, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION, LETRAN COLLEGE-MANILA, FR. ROGELIO ALARCON, O.P., FR. EDWIN LAO, O.P. and MS. PERLY NAVARRO, respondents.

FACTS

Petitioner Melody Paulino Lopez was employed by Letran College from June 1979 to July 1, 1991. The chronology of events includes a Career Orientation Day she organized in 1988 involving military demonstrations, after which she alleged a conspiracy of harassment against her. She received several memoranda and unsavory reports were placed in her file. In January 1991, she was offered money in exchange for her voluntary resignation, which she refused. The incident that led to her dismissal occurred on February 16, 1991. An employee, Ramon Mendoza, asked a security guard for a key to the guidance office. Respondent Fr. Edwin Lao, who was with the guard, refused to give the key. Mendoza asked Lopez to intercede. Conflicting versions exist: respondents insist Lopez uttered indecent remarks against Fr. Lao, while Lopez denied this. Consequently, she was preventively suspended and later dismissed on May 9, 1991, for alleged serious misconduct, grave oral defamation, insubordination, and loss of confidence. The Labor Arbiter found the dismissal was for just cause and with due process, but awarded separation pay. On appeal, the NLRC ruled there was illegal dismissal due to absence of just cause and due process but ordered private respondents to grant petitioner separation pay in lieu of reinstatement, dismissing the claim for damages. Petitioner elevated the case, seeking reinstatement with backwages.

ISSUE

Whether a finding of illegal dismissal ipso facto results in the reinstatement of the dismissed employee.

RULING

No. While the general rule is that an illegally dismissed employee is entitled to reinstatement and backwages, reinstatement is not an absolute right. The NLRC correctly awarded separation pay in lieu of reinstatement. The Court affirmed the NLRC’s finding that the alleged misconducts were deemed condoned as Lopez had stayed and even been promoted over 13 years. Regarding the February 16, 1991 incident, the alleged misconduct was not in connection with her work as Head Psychometrician. However, the Court noted that as an employee of an exclusive Catholic school noted for moral uprightness, her demeanor was far from ideal as a role model. More importantly, the relations between the employer and employee had been so severely strained that reinstatement was no longer advisable. Consequently, the award of separation pay in lieu of reinstatement was proper. The Court modified the NLRC decision by ordering private respondents to pay full backwages from the date of dismissal until the finality of the decision, in addition to separation pay.