G.R. No. 95692 , March 16, 1992
Sunday Machine Works, Inc., petitioner, vs. National Labor Relations Commission and Jaime D. Santos, respondents.

FACTS

Jaime D. Santos was employed by Sunday Machine Works, Inc. for over 23 years, rising to Manager. On February 3, 1987, the company president, Sunday Pineda, accused Santos of falsifying daily cash statements by entering the expenses of another employee. Santos denied this and requested a formal investigation. Pineda dismissed this request, told Santos to go on vacation leave, and ordered him to vacate his company living quarters. Santos complied but did not receive his salaries thereafter.
Months later, on October 22, 1987, Santos received an antedated letter dated March 3, 1987, stating he was dismissed for loss of trust and confidence. He filed a complaint for illegal dismissal. The company later alleged a new charge, claiming Santos pocketed commissions/rebates from customers, supported by an affidavit from a clerk and 260 vouchers totaling P111,875.33. Santos countered that these vouchers represented legitimate customer discounts or entertainment expenses, a company practice, and that no official receipts were issued for these transactions due to tax evasion.

ISSUE

Whether the National Labor Relations Commission committed grave abuse of discretion in affirming the illegal dismissal of Jaime D. Santos.

RULING

The Supreme Court ruled that the NLRC did not commit grave abuse of discretion. The dismissal was illegal due to the employer’s failure to comply with substantive and procedural due process. Substantively, the charge of dishonesty was not proven by substantial evidence. The company’s evidence, primarily the clerk’s affidavit and vouchers, was insufficient. The Court noted the company failed to present more convincing evidence, such as affidavits from the alleged defrauded customers or the official receipts for the transactions, which Santos claimed were non-existent due to the company’s use of fake, unregistered receipts. The explanation that the vouchers represented legitimate business practices was deemed credible.
Procedurally, the company violated Santos’s right to due process. He was summarily ordered on leave and was not afforded a formal investigation where he could confront the evidence against him. The belated, antedated dismissal letter months after his forced leave compounded this violation. Consequently, the award of backwages for three years and separation pay was justified. The petition was denied, and the NLRC decision was affirmed.