G.R. No. 191008; April 11, 2011
QUIRICO LOPEZ, Petitioner, vs. ALTURAS GROUP OF COMPANIES and/or MARLITO UY, Respondents.

FACTS

Petitioner Quirico Lopez was hired as a truck driver by respondent Alturas Group of Companies in 1997. In November 2007, he was dismissed after allegedly being caught by a company security guard attempting to smuggle out 60 kilos of scrap iron worth ₱840 using a company vehicle assigned to him. Petitioner allegedly admitted to the guard that he was taking the scrap iron to make axes. He denied the allegations in response to a Show Cause Notice. Respondent company, finding his explanation unsatisfactory and considering an investigation that revealed petitioner had also been involved in smuggling out and selling company cartons, terminated his employment on December 14, 2007, on the grounds of loss of trust and confidence and violation of company rules. Respondent filed two criminal cases for Qualified Theft against petitioner. Petitioner filed a complaint for illegal dismissal and underpayment of wages, claiming the charges were fabricated after he reported losing a pay slip, which made respondent suspect he might file a labor complaint. The Labor Arbiter dismissed the complaint, finding the dismissal justified due to petitioner’s position of trust and his act of stealing company property. The NLRC reversed this decision, finding respondent’s evidence insufficient and noting petitioner was not afforded a proper hearing or advised of his right to counsel. The Court of Appeals reversed the NLRC, upholding the dismissal on the ground of loss of trust and confidence but found a procedural due process violation, ordering respondent to pay ₱30,000 in nominal damages.

ISSUE

Whether petitioner’s dismissal was valid, encompassing both substantive (existence of a just cause) and procedural (observance of due process) aspects.

RULING

The Supreme Court upheld the dismissal.
1. On Substantive Due Process: The dismissal was for a just cause. Loss of trust and confidence, as a ground for dismissal under Article 282(c) of the Labor Code, applies to employees occupying positions of responsibility and trust. Petitioner, as a driver entrusted with company property, held such a position. His act of attempting to smuggle out scrap iron was a willful, work-related breach of that trust. This charge was supported by substantial evidence, including affidavits from company personnel and the statement of the security guard who apprehended him. His past acts involving company cartons further compounded the breach. His acquittal in the subsequent criminal case did not preclude a finding of guilt for purposes of employment termination.
2. On Procedural Due Process: The Court agreed with the Court of Appeals that respondent company failed to comply fully with procedural due process. While petitioner was given a written notice of the charge and an opportunity to submit a written explanation, he was not afforded a proper hearing where he could confront the witnesses against him. Following the doctrine in Agabon v. NLRC, the dismissal was upheld for just cause, but respondent was liable for nominal damages due to the procedural defect. The Court of Appeals’ award of ₱30,000 as nominal damages was sustained.