CASE 2016-0013:  UNIVERSAL ROBINA SUGAR MILLING CORP VS. ELMER ABLAY ET AL. (G.R. 218172, 16 MARCH 2016, PERLAS-BERNABE, J.) (SUBJECT/S: INSTANCE WHEN BACKPAY WAS NOT ALLOWED IN ILLEGAL DISMISSAL) (BRIEF TITLE: UNIVERSAL ROBINA VS. ABLAY ET AL.)

 

DISPOSITIVE:

 

“WHEREFORE, the petition is PARTLY GRANTED. The Decision dated June 28, 2013 and the Amended Decision dated April 30, 2015 of the Court of Appeals in CA-G.R. SP No. 02078 are hereby MODIFIED, directing the DELETION of the award of backwages in favor of respondents Elmer Ablay, Ildefonso Clavecillas, Stanley Blaza, Vincent Villavicencio, Roberto Cacas, and Eleazar Cadayuna. The rest of the decision STANDS.

 

SO ORDERED.”

 

SUBJECTS/DOCTRINES/DIGEST:

 

“An illegally dismissed employee is entitled to either reinstatement, if viable, or separation pay if reinstatement is no longer viable, and backwages. In certain cases, however, the Court has ordered the reinstatement of the employee without backwages considering the fact that (1) the dismissal of the employee would be too harsh a penalty; and (2) the employer was in good faith in terminating the employee. For instance, in the case of Cruz v. Minister of Labor and Employment the Court ruled as follows:

 

The Court is convinced that petitioner’s guilt was substantially established. Nevertheless, we agree with respondent Minister’s order of reinstating petitioner without backwages instead of dismissal which may be too drastic. Denial of backwages would sufficiently penalize her for her infractions. The bank officials acted in good faith. They should be exempt from the burden of paying backwages. The good faith of the employer, when clear under the circumstances, may preclude or diminish recovery of backwages. Only employees discriminately dismissed are entitled to backpay. x x x

 

Likewise, in the case of Jtogon-Suyoc Mines, Inc. v. National Labor Relations Commission, the Court pronounced that “[t)he ends of social and compassionate justice would therefore be served if private respondent is reinstated but without backwages in view of petitioner’s good faith.” 46 (Emphasis and underscoring supplied)

 

To reiterate, respondents were indeed guilty of some form of misconduct and, as such, petitioner was justified in exercising disciplinary action against them. Absent any evidence to the contrary, petitioner’s resort to disciplinary proceedings should be presumed to have been done in good faith. 47 Thus, perceiving that petitioner had ample ground to proceed with its disciplinary action against respondents, and that the disciplinary proceedings appear to have been conducted in good faith, the Court finds it proper to apply the exception to the rule on backwages, and consequently, direct the deletion ofbackwages in favor of respondents.48

 

Finally, the CA correctly observed that Ablay’s conviction as an accomplice to the murder of petitioner’s former assistant manager had strained the relationship between Ablay and petitioner. Hence, Ablay should not be reinstated in the company and, instead, be paid separation pay, as reinstatement would only create an atmosphere of antipathy and antagonism would be generated as to adversely affect his efficiency and productivity.49 In this relation, it should be clarified that said strained relation should not affect the grant of benefits in his favor prior to his conviction, as the latter pertains to an offense entirely separate and distinct from the acts constituting petitioner’s charges against him in the case at bar, i.e., taking of the company equipment without authority. Petitioner’s payment of separation pay to Ab lay in lieu of his reinstatement is therefore warranted.

 

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SCD-2016-0013-UNIVERSAL ROBINA 

 

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