GR 163706; (March, 2007) (Digest)
G.R. No. 163706 , March 29, 2007
Divine Word College of San Jose and Fr. Eleuterio S. Lacaron, SVD vs. Herminia G. Aurelio
FACTS
Respondent Herminia G. Aurelio was a long-time employee of petitioner Divine Word College (DWC), having been hired in 1976 and eventually promoted to Senior Bookkeeper. In 1996, an external auditor, CJV & Co., prepared a preliminary report on the application of tuition fee increases. Aurelio obtained a copy of this report from the auditor without DWC’s authorization and disseminated it, leading to unrest among faculty and staff who believed the school was misapplying funds. A subsequent final audit report by a different firm clarified that the preliminary findings were inaccurate due to omitted salary and benefit data. DWC conducted an investigation, after which an ad hoc committee recommended Aurelio’s termination for serious breach of trust. She was dismissed effective July 15, 1997.
Aurelio filed a complaint for illegal dismissal. The Labor Arbiter ruled in her favor, awarding backwages and separation pay, citing strained relations. The National Labor Relations Commission (NLRC) reversed this, finding the dismissal valid. The Court of Appeals then reinstated the Labor Arbiter’s decision, prompting DWC’s appeal to the Supreme Court.
ISSUE
Whether the dismissal of respondent Aurelio was valid based on loss of trust and confidence.
RULING
The Supreme Court granted the petition, reversing the Court of Appeals and reinstating the NLRC decision. The dismissal was valid. The legal logic centers on the nature of trust as a ground for termination under Article 282(c) of the Labor Code. The Court emphasized that loss of trust and confidence applies to employees charged with fiduciary duties, such as Aurelio as Senior Bookkeeper, a position requiring confidentiality and discretion. Her act of securing and disseminating a confidential, preliminary audit report without authorization constituted willful breach of this trust. The employer’s evidence demonstrated that her actions were not merely negligent but deliberate, causing significant unrest and undermining management. The Court found that DWC observed procedural due process by conducting a thorough investigation and providing Aurelio with notice and opportunity to explain. The strained relations cited by the lower courts did not negate the existence of a valid cause for termination rooted in breach of trust. Consequently, her dismissal was for a just cause, and no separation pay was warranted.