CASE 2013-0019: UNIVERSAL ROBINA CORPORATION AND LANCE Y. GOKONGWEI, PETITIONERS, -VERSUS- WILFREDO Z. CASTILLO, RESPONDENT. (G.R. NO. 189686, 10 JULY 2013, PEREZ, J.) SUBJECT/S: SEPARATION PAY IN CASE OF DISMISSAL FOR LEGAL CAUSE  (BRIEF TITLE: URC VS. CASTILLO)

 

DISPOSITIVE:

 

“WHEREFORE, the petition is GRANTED. The 20 July 2009 Decision and 17 September 2009 Resolution of the Court of Appeals in CA G. R. SP. No. 105604 are REVERSED and SET ASIDE. The Resolution dated 31 March 2008 of the National Labor Relations Commission is REINSTATED.

 

SO ORDERED.”

 

SUBJECTS/DOCTRINES/DIGEST:

 

MR. CASTILLO WAS DISMISSED AS REGIONAL SALES MANAGER OF ROBINA SALES CORPORATION FOR JUST CAUSE, SPECIFICALLY,  LOSS OF TRUST AND CONFIDENCE UNDER ART. 282. HE WAS FOUND TO HAVE ACCEPTED GIFT CHECKS FROM A SUPPLIER. THE LABOR ARBITER RULED THERE WAS ILLEGAL DISMISSAL. NLRC REVERSED THE DECISION. CA AFFIRMED THE NLRC DECISION BUT AWARDED CASTILLO WITH SEPARATION PAY AS A FORM OF EQUITABLE RELIEF. WAS CA CORRECT?

 

NO.

 

THE AWARD OF SEPARATION PAY IS AUTHORIZED IN THE SITUATIONS DEALT WITH IN ARTICLE 283 AND 284 OF THE LABOR CODE, BUT NOT IN TERMINATIONS OF EMPLOYMENT BASED ON INSTANCES ENUMERATED IN ARTICLE 282.

“x x x [L]abor adjudicatory officials and the CA must demur theaward of separation pay based on social justice when an employee’s dismissal is based on serious misconduct or willful disobedience; gross and habitual neglect of duty; fraud or willful breach of trust; or commission of a crime against the person of the employer or his immediate family— grounds under Art. 282 of the Labor Code that sanction dismissals of employees. They must be most judicious and circumspect in awarding separation pay or financial assistance as the constitutional policy to provide

full protection to labor is not meant to be an instrument to oppress the employers. The commitment of the Court to the cause of labor should not embarrass us from sustaining the employers when they are right, as here. In fine, we should be more cautious in awarding financial assistance to the

undeserving and those who are unworthy of the liberality of the law.”

 

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SCD-2013-0019 -JULY 2013 – UNIVERSAL ROBINA