G.R. No. 144089 . August 9, 2001.
Concorde Hotel, represented by Michael Ong Siy, General Manager, petitioner, vs. Court of Appeals, National Labor Relations Commission, Second Division, and Roberto Parado, respondents.

FACTS

Petitioner Concorde Hotel engaged in mass hiring through Highlanders Management Services. Private respondent Roberto Parado was hired as an assistant cook. In January 1997, petitioner discovered missing stocks and merchandise. An in-house investigation was initiated. Initially, fifteen employees were listed as suspects. Later, eight more names were added based on information from other employees; private respondent was among these additional suspects. Petitioner reported the incident to the Baguio Police on January 22, 1997. Private respondent was required to submit a written explanation on the same day he was confronted. When he failed to do so, petitioner terminated his employment on January 23, 1997, on grounds of dishonesty (allowing food to be taken out without an Order Slip), rumor mongering, and breach of trust and confidence. Highlanders Agency also issued a termination notice dated January 22, 1997, citing failure to meet company standards. Private respondent filed a complaint for illegal dismissal. The Labor Arbiter dismissed the complaint. The NLRC reversed the Labor Arbiter, finding the dismissal illegal and ordering payment of backwages, separation pay, and attorney’s fees. The Court of Appeals affirmed the NLRC’s decision.

ISSUE

1. Whether the Court of Appeals erred in affirming the NLRC’s finding that the dismissal was without just cause.
2. Whether the Court of Appeals acted with grave abuse of discretion in failing to appreciate that it was not the petitioner but another entity (Highlanders Agency) that terminated private respondent’s services.
3. Whether the Court of Appeals acted with grave abuse of discretion in not dismissing the case as against Milagros Ong Siy.

RULING

The Supreme Court denied the petition and affirmed the Court of Appeals’ decision.
1. The dismissal was without just cause. For dismissal based on loss of trust and confidence, the breach must be willful, and the employee must hold a position of trust. The employer bears the burden of proving a valid cause for dismissal. The charges against private respondent were based on mere accusations without substantial evidence. The fact that no criminal charges were filed, while not conclusive, underscored the lack of concrete proof. The alleged offenses were not proven.
2. The claim that Highlanders Agency terminated private respondent was untenable. The evidence showed that Concorde Hotel, through its General Manager Michael Ong Siy, sent the notice of termination on January 23, 1997. The hotel exercised control over his employment.
3. Milagros Ong Siy cannot be held jointly and severally liable as private respondent failed to establish that she was a stockholder or officer of Concorde Hotel, Inc.
The Court reiterated that for a valid dismissal, the employee must be afforded due process and the dismissal must be for a valid cause. Petitioner failed to prove both requirements.