G.R. No. 194106 ; June 18, 2012
MANILA ELECTRIC COMPANY (MERALCO), Petitioner, vs. HERMINIGILDO H. DEJAN, Respondent.

FACTS

Respondent Herminigildo Dejan was a branch representative for MERALCO in San Pedro, Laguna. On March 18, 2005, a security guard observed a private electrician, Estanislao Gozarin, removing 20 meter sockets from the branch premises, which were loaded into a contracted jeep. An investigation ensued. Dejan explained he released the sockets because the deposit fees had been paid by a known electrician, Antonio Depante, who requested their release as he was busy. Dejan claimed this followed an accepted office practice where items could be released upon payment, even without the applicant’s physical presence or written authorization.
MERALCO charged Dejan with unauthorized taking of company property under its Code of Employee Discipline. After a formal investigation where Dejan reiterated his defense and Depante corroborated his account, MERALCO dismissed Dejan on April 6, 2006, for serious misconduct and loss of trust and confidence. Dejan filed a complaint for illegal dismissal. The Labor Arbiter upheld the dismissal, but the NLRC reversed it, finding Dejan liable only for simple negligence and ordering reinstatement without backwages. The Court of Appeals affirmed the NLRC but modified the decision to award backwages, deducting a one-month suspension penalty.

ISSUE

Whether the Court of Appeals erred in affirming the NLRC’s finding that Dejan was illegally dismissed, holding him liable only for simple negligence instead of serious misconduct warranting termination.

RULING

The Supreme Court granted MERALCO’s petition and reversed the Court of Appeals. The Court held that Dejan committed serious misconduct justifying his dismissal. His act of releasing company property to persons not the registered applicants, without proper authorization and in violation of established company procedures, constituted a fraudulent breach of trust. The Court found that Dejan’s defense of an “accepted practice” was unsubstantiated and could not override clear company rules requiring the applicant’s authorization for release. As a branch representative entrusted with handling company property and collections, Dejan occupied a position of confidence requiring utmost honesty. His actions demonstrated a willful disregard of his duties, amounting to dishonesty. The loss of trust and confidence was justified. The procedural requirement for dismissal was satisfied as Dejan was given ample opportunity to explain during the investigation. Thus, his dismissal was valid for serious misconduct under Article 282 of the Labor Code.