G.R. No. 182299 February 22, 2010
WILFREDO M. BARON, BARRY ANTHONY BARON, RAMIL CAYAGO, DOMINADOR GEMINO, ARISTEO PUZON, BERNARD MANGSAT, MARIFE BALLESCA, CYNTHIA JUNATAS, LOURDES RABAGO, JEFFERSON DELA ROSA and JOMAR M. DELA ROSA, Petitioners, vs. NATIONAL LABOR RELATIONS COMMISSION and MAGIC SALES, INC. represented by JOSE Y. SY, Respondents.

FACTS

Petitioners claimed to be employees of respondent Magic Sales, Inc. (MSI), a domestic corporation trading consumer goods. MSI’s President, Jose Y. Sy, ordered an inventory and audit after noticing a steady increase in payables and a decline in investments. Petitioner Wilfredo Baron, the Operations Manager, was temporarily relieved of some duties to allow the audit. A memorandum instructed employees to support the audit team, surrender keys and documents, not remove company property, and undergo a search before leaving. Petitioners refused to cooperate and subsequently refrained from reporting for work. The completed Internal Audit Report revealed several irregularities, a weak accounting system designed by Wilfredo Baron, abuse of authority, and concluded there was collusion between Baron and his subordinates who benefited from the irregularities. Management informed petitioners of charges against them for serious misconduct, willful disobedience, fraud/willful breach of trust, and abandonment. Petitioners did not rebut the charges or attend the investigation, leading to their termination. They filed complaints for illegal dismissal and monetary claims. The Labor Arbiter partially granted their complaints, ordering the reinstatement of some petitioners but dismissing the complaints of Wilfredo Baron, Jefferson dela Rosa, and Jomar dela Rosa. The NLRC reversed the Labor Arbiter, dismissing the complaints of all petitioners except those of Jomar and Jefferson dela Rosa (whose appeals were treated as withdrawn) and Wilfredo Baron (whose appeal was dismissed). The Court of Appeals affirmed the NLRC decision.

ISSUE

1. Were petitioners validly dismissed on the grounds of grave misconduct and loss of confidence?
2. Were petitioners denied their right to due process when they were terminated from their employment?

RULING

1. Yes, petitioners were validly dismissed. The Supreme Court, exercising its equity jurisdiction due to contradictory findings between the Labor Arbiter and the NLRC, upheld the factual findings of the NLRC and the Court of Appeals. There was substantial evidence to support the conclusion that petitioners committed acts constituting just causes for termination under Article 282 of the Labor Code. The audit revealed massive irregularities and grand scale fraud orchestrated by Wilfredo Baron, with the help of his subordinates. Petitioners’ refusal to cooperate with the lawful audit, their refusal to surrender keys and documents, and their abandonment of work constituted serious misconduct, willful disobedience, and loss of trust and confidence. Their acts of locking drawers, stealing files, and destroying documents to sabotage the audit further justified their dismissal.
2. No, petitioners were not denied due process. The essence of due process is simply an opportunity to be heard. Petitioners were informed in writing of the charges against them and were given the opportunity to explain and refute the charges. They chose not to rebut the charges and did not attend the investigation. Having been given the opportunity to be heard which they disregarded, they cannot now claim denial of due process. The Court of Appeals’ decision affirming the NLRC was upheld. The petition was denied.