GR 196597; (October, 2015) (Digest)
G.R. No. 196597 October 21, 2015
MODESTO W. RIVERA, Petitioner, vs. ALLIED BANKING CORPORATION, CORA D. CORPUS and ANTONIO H. SANTOS, Respondents
FACTS
Petitioner Modesto W. Rivera was a Branch Head of respondent Allied Banking Corporation. He was dismissed for accepting second-endorsed/illegitimate foreign currency checks from a client, Ms. Nene Sta. Cruz, which resulted in substantial financial exposure and losses for the bank. The bank charged him with misconduct, dishonesty, and breach of trust. Petitioner explained that accommodating the client’s rediscounting transactions was done in good faith and as a marketing service. He denied receiving commissions. The Labor Arbiter declared his dismissal illegal, awarding separation pay, backwages, refunds for his contributions to bank savings plans, leave benefits, and damages. The National Labor Relations Commission (NLRC) reversed this, finding the dismissal valid but ordering the bank to refund his contributions to the savings plans. The NLRC later deleted the award for accumulated leave credits. The Court of Appeals affirmed the NLRC’s ruling.
ISSUE
Whether petitioner Modesto W. Rivera was illegally dismissed.
RULING
No, the dismissal was valid. The Supreme Court affirmed the decisions of the NLRC and the Court of Appeals. The petitioner, as a branch manager, held a position of trust and confidence. His repeated and deliberate acceptance of numerous second-endorsed foreign currency checks, in violation of the bank’s clear policies, constituted willful breach of trust. The bank had reasonable grounds to dismiss him based on the audit findings which showed he approved 93 such checks, 34 of which were returned by drawee banks, exposing the bank to significant losses. The procedural requirements for dismissal were satisfied as he was given twin notices (to explain and of termination) and an opportunity to be heard. His claim that his acts were mere accommodations done in good faith was untenable given the scale and consequences of the violations. Therefore, his dismissal for just cause was legal. The bank was ordered to refund his personal contributions to the Employment Investment Savings Plan and the Mutual Savings Plan, with interest.