G.R. No. 96969 . March 2, 1993.
ROMEO P. FLORES, petitioner, vs. NATIONAL LABOR RELATIONS COMMISSION and MANILA ELECTRIC COMPANY, respondents.

FACTS

Petitioner Romeo P. Flores was employed by private respondent Manila Electric Company (MERALCO) from May 16, 1967, until his dismissal on July 18, 1988. At the time of dismissal, he was a teller. Previously, he worked as a lineman. In October 1987, a senior meter reader discovered that Flores and his neighbor were using electric meters different from the official ones issued to them. An ocular inspection on October 26, 1987, by MERALCO’s Special Presidential Committee and Inspection Division confirmed that Flores had illegally installed Meter No. 33SLN74263 at his premises, replacing his official Meter No. 33SGN30400. He was found using a two line-jumper to defraud the company by substituting the official meter between reading dates to avoid reflecting actual consumption. Investigation revealed he took the illegal meter from a demolished house without MERALCO’s knowledge or consent. The tampered meters were removed and tested in the presence of a Board of Energy representative, confirming tampering. On December 14, 1987, MERALCO sent Flores a Violation of Contract letter charging him P2,060.59, which he paid with a discount on December 23, 1987. After a formal administrative investigation on February 26, 1988, where Flores, assisted by counsel, gave a sworn statement unqualifiedly admitting all charges and appealing for leniency, the Special Presidential Committee found him guilty of violating Section 7, paragraphs 3 and 4 of the Company Code on Employee Discipline (for tampering with an electric meter to defraud the company and unauthorized taking of company property). The penalty for both offenses was dismissal. He was dismissed on July 18, 1988. Flores filed a complaint for illegal dismissal, which was dismissed by the Labor Arbiter on October 31, 1989. The NLRC affirmed this dismissal on September 11, 1990, and denied his motion for reconsideration on December 17, 1990.

ISSUE

Whether the National Labor Relations Commission committed grave abuse of discretion in affirming the dismissal of petitioner Romeo P. Flores for loss of trust and confidence.

RULING

The Supreme Court dismissed the petition and affirmed the NLRC resolution. The Court held that Flores’s dismissal was for a valid cause under Article 282 of the Labor Code, specifically for serious misconduct and fraud or willful breach of trust. His sworn admission of the charges, coupled with documentary evidence, constituted gross misconduct and breach of trust. MERALCO could not be compelled to retain an employee guilty of malfeasance prejudicial to its interests. The Court rejected the argument that dismissal was too harsh given his 21 years of service and payment of differential billings, stating that long service should be taken against him as it reflected a lack of loyalty. Citing precedent, the Court ruled that separation pay is not allowed when dismissal is for serious misconduct or causes reflecting on moral character, such as dishonesty or theft. The policy of social justice does not protect those who commit wrongdoing.