GR 144412; (November, 2003) (Digest)
G.R. No. 144412; November 18, 2003
ALLIED BANKING CORPORATION, Petitioner, vs. COURT OF APPEALS and POTENCIANO L. GALANIDA, Respondents.
FACTS
Potenciano Galanida was a regular employee of Allied Banking Corporation since 1978, rising to the position of Assistant Manager. His appointment was subject to a condition allowing the bank to transfer employees as needed. Throughout his career, Galanida was transferred to various branches multiple times. In 1994, as part of a rotation policy for officers stationed long-term in Cebu, the bank ordered Galanida’s transfer to Bacolod City. Galanida refused, citing parental obligations and family expenses. He filed a complaint for constructive dismissal. The bank subsequently ordered him to report to Tagbilaran City instead, which he also refused. After a series of exchanges, the bank terminated Galanida’s services effective September 1994, citing willful disobedience for his refusal to follow the transfer orders and for not reporting to work after the denial of his additional vacation leave.
ISSUE
Whether the dismissal of Potenciano Galanida by Allied Banking Corporation was valid.
RULING
The Supreme Court ruled that the dismissal was illegal. The Court upheld the findings of the NLRC and the Court of Appeals. While management possesses the prerogative to transfer employees, this right is not absolute and must be exercised in good faith, without grave abuse of discretion, and must not constitute a constructive dismissal. The bank’s transfer policy, though stipulated, must be implemented fairly. The Court found that the bank failed to prove that the transfer was motivated by legitimate business necessity. The policy was applied arbitrarily, as other officers with longer tenure in Cebu were not similarly transferred. Furthermore, the bank did not adequately refute Galanida’s claim of discrimination and favoritism. His refusal, under these circumstances, was not the willful disobedience contemplated by law as a just cause for termination. His absence from work was a direct consequence of the illegal transfer order and his pending labor case, not an abandonment. Consequently, the dismissal was without just cause. The award of separation pay in lieu of reinstatement, backwages, and damages was affirmed, as Galanida’s continued employment was rendered untenable by the adversarial proceedings.