GR 228320; (July, 2020) (Digest)
G.R. No. 228320 , July 15, 2020
American Express Transnational (now American International Tours, Inc.) and Carlo Severino, Petitioners, vs. Menandro T. Borre, Respondent. / Menandro T. Borre, Petitioner, vs. American Express Transnational (now American International Tours, Inc.) and Carlo Severino, Respondent.
FACTS
Menandro T. Borre was a regular driver/messenger for American Express Transnational (now Adventure International Tours, Inc. or AITI). On March 8, 2013, his immediate supervisor, Efren Mendoza, informed him of a driving assignment for the Leisure Team on March 9, 2013. Borre confirmed he would report for work but refused to drive, stating, “teka, ‘di ako magdrive, papasok ako pero ‘di ako magdrive.” When told management would issue an insubordination memo if he refused, Borre responded, “[s]ige kasuhan nila ako basta ‘di ako magdrive.” AITI served Borre a Notice to Explain on March 18, 2013, citing this incident and prior instances where he refused to drive, claiming he left his driver’s license. In his handwritten explanation, Borre denied ever leaving his license and claimed he was not informed he needed to drive on March 9. After an administrative hearing on April 5, 2013, and further investigation which included a sworn statement from Administrative Assistant Priscilla Mercado detailing three other instances of refusal to drive, AITI dismissed Borre on May 15, 2013, for insubordination and negligence of duty. Borre filed a complaint for illegal dismissal. The Labor Arbiter and the NLRC found the dismissal valid for just cause and with due process. The Court of Appeals affirmed the legality of the dismissal but awarded Borre separation pay as financial assistance, citing his long service and that the insubordination was not grave nor reflective of his moral character.
ISSUE
The primary issue is whether the Court of Appeals erred in awarding separation pay to Borre despite finding his dismissal for gross insubordination (willful disobedience) to be valid and legal.
RULING
The Supreme Court ruled that the award of separation pay was improper. The petition in G.R. No. 228320 (by AITI) was GRANTED, and the petition in G.R. No. 228344 (by Borre) was DENIED. The CA Decision and Resolution were AFFIRMED with MODIFICATION, deleting the award of separation pay.
The Court held that an employee validly dismissed for just cause is not entitled to separation pay. Financial assistance or separation pay is only granted in exceptional cases, such as when the dismissal is for an authorized cause under Article 283 of the Labor Code, or as a measure of social justice when the cause for dismissal is not serious misconduct or reflects adversely on the employee’s moral character. In this case, Borre’s act of defiantly refusing a lawful work order, compounded by dishonesty in his explanation regarding prior incidents, constituted willful disobedience under Article 282(a) (now Article 297) of the Labor Code. His actions were a serious breach of company rules and the employer-employee relationship. His long service does not mitigate the offense, and granting separation pay would be a reward for his misconduct. Therefore, the CA erred in awarding separation pay.