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Alvarez V Golden Tri Bloc

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G.R. No. 202158 September 25, 2013 p.m.

5, 2013 p.m. He inspected the stocks in the branch and taught a certain ‘Ritz’ on
how to prepare stocks acquisition report for June 2009. He owned up to
ERIC ALVAREZ, substituted by ELIZABETH ALVAREZ- his fault and stated that he should have instead recorded the time of his
CASAREJOS vs. GOLDEN TRI BLOC, INC. and ENRIQUE arrival by writing on the time card and that he should have brought it with
LEE, Respondents. him. He apologized and promised that a similar incident will not happen
again.
DECISION
On June 5, 2009, GTBI sent him a letter directing him to report to the
main office for a dialogue on June 9, 2009 failing which would amount to
REYES, J.:
the waiver of his right to be heard and the management may make a
decision based only on his written explanation.5 The dialogue pushed
This is a petition for review1 from the Decision2 dated January17, 2012 of through. After which the petitioner was placed on preventive suspension
the Court of Appeals (CA) in CA-G.R. SP No. 120968 dismissing the for 30 days without pay.
complaint for illegal dismissal tiled by petitioner Eric Alvarez (petitioner)
against respondents Golden Tri Bloc, Inc. (GTBI)and its owner, Enrique
On June 23, 2009, GTBI notified the petitioner of its decision to
Lee.
terminate his employment effective that day on the ground of loss of
trust.6
The Facts
Feeling aggrieved, the petitioner filed, on July 9, 2009, before the Labor
Sometime in November 1996, respondent GTBI hired the petitioner as a Arbiter (LA), a complaint for illegal dismissal with claims for sick leave
Service Crew in one of its Dunkin Donuts franchise store in Antipolo City, pay, separation pay and moral and exemplary damages.7
Rizal. Six (6) months later, he attained the status of a regular employee.
He was thereafter promoted as Shift Leader and served as such for four
In his Position Paper 8, the petitioner averred that in his 12 years of
(4)years. Sometime in 2001, he was again promoted as Outlet Supervisor
service with the company, he was never subjected to any disciplinary
and was assigned to three (3) Dunkin Donuts outlets located at San
action. He argued that the ground relied upon for his termination is not
Roque, Cogeo and Super 8, Masinag, all in Antipolo City. He received a
applicable to him because he is a supervisor and not a managerial
monthly salary of ₱10,000.00.
employee. He is not entrusted with the company’s money or property and
that his duties pertained to the preparation and submission of daily and
On May 27, 2009, the petitioner reported for duty at around 12:30 in the monthly reports and organization of manpower schedules. Even assuming
afternoon at Dunkin Donuts, Super 8, Masinag branch. Since his timecard that the ground applies to him, it still does not validate his termination
was at the San Roque branch, he telephoned Chastine3 Kaye Sambo because the alleged offense is not related to his work duties. He asserted
(Sambo), shift leader, and requested her to "punch-in" his time card to that he did not lie to or defraud GTBI because he was, in truth, already on
reflect that he is already on duty. She obliged. Roland Salindog duty as verified by his senior officer, Salindog. He contended that
(Salindog),the petitioner’s senior officer called the Super 8, Masinag dismissal is not commensurate with the offense he committed considering
branch and verified that he has indeed reported for work. his lengthy and satisfactory service with the company as shown in his
several rank promotions.
The following day, however, the petitioner was informed by Sambo that
both of them are suspended and that he had to prepare an incident report For its part, GTBI maintained that it had justifiable reason to lose trust in
regarding his time card. and dismiss the petitioner for having committed a dishonest act
punishable under the company’s Code of Conduct and Discipline9 with
In his incident report4 dated May 29, 2009, the petitioner admitted termination from employment.10
instructing Sambo to punch-in his timecard. He explained that he went
straight to and arrived at the Super 8, Masinag branch at around 12:35
GTBI further claimed that the petitioner’s dismissal from employment SO ORDERED.15
was attended with the requisite procedural due process. He was notified
of his offense and afforded the chance to explain his side. His explanation Ruling of the NLRC
was, however, found unacceptable and he was deemed unfit to hold the
position of Outlet Supervisor because his continued employment with the
Dismayed, GTBI appealed to the National Labor Relations Commission
company will be detrimental to its interests. The company’s decision to
(NLRC). To bolster its position that the petitioner was not illegally
terminate him was likewise made known to him through a notice sent on
dismissed, GTBI submitted records of infractions committed by the
June 26, 2009.11
petitioner before the incident in issue, viz:

His monetary claims were debunked for lack of factual basis in as much as
(1) Tardiness for which he was given corrective counseling on
he is also not entitled to moral and exemplary damages since his dismissal
October 25, 1997;
was valid and that it was carried out without bad faith and fraud, nor was
it attended with act oppressive to labor or contrary to morals, good
customs or public policy.12 (2) Product shortages for which he was sternly warned on July12,
1999;
Ruling of the Labor Arbiter
(3) Negligence resulting in disruption of business operations on
July 29, 1999 for which he was suspended for three (3) days;
In a Decision13 dated April 29, 2010, the LA found the petitioner to have
been illegally dismissed. The LA held that the transgression imputed to
the petitioner was not willful in character neither did not imply any (4) Habitual tardiness for which he was given another corrective
wrongful intent so as to bring it within the ambit of gross misconduct as a counseling on January 9, 2000;
just cause for termination. His wrongdoing was trivial in nature and a
mere error in judgment since he acted in good faith and had no intention (5) Product shortages and inconsistencies in his inventory, for
to defraud GTBI. Also, the offense of dishonesty stated in GTBI’s Code of which he was reprimanded on January 17, 2000;
Conduct and Discipline imply a conscious and deliberate wrongful intent
to defraud, which is not present in that ascribed to the petitioner. The LA (6) Product shortages and inconsistencies in his inventory for
conferred great weight to his length of service with GTBI and his which he was suspended for one (1) week from January 26, 2000;
unblemished record and held that such considerations render dismissal a
disproportionate and harsh penalty to the mistake he committed. The LA (7) Product shortages and inconsistencies in his inventory for
further ruled that his reinstatement is no longer a viable option and as which he was suspended for three (3) days starting May 9, 2003;
such, an award of separation pay, in addition to backwages, is proper
computed atone (1) month salary for every year of service, with a fraction
of six (6)months being considered as one (1) whole year.14 Accordingly, (8) Dishonesty for causing a co-employee to punch-in his
the LA disposed as follows: timecard for which he was suspended for 45 days instead of
dismissal on July 4, 2003, with a stern warning that a repetition
of the same offense shall be punished with dismissal;
WHEREFORE, premises considered, the dismissal of the petitioner is
hereby declared illegal. Respondent Golden Tri Bloc, Inc. is hereby
ordered to pay the petitioner the total amount of Two Hundred Sixty (9) Habitual tardiness for which he was meted three (3) days
Thousand Nine Hundred Twenty-Nine Pesos and 49/100 (₱260,929.49) suspension;
representing his separation pay and full backwages.
(10) Failure to punch-out for which he was suspended for three(3)
All other claims are ordered dismissed for lack of merit. days on May 16, 2004;
(11) Negligence resulting in product shortages causing disruption On June 20, 2011, the petitioner passed away due to myocardialinfarction
of business operations; secondary to skin tuberculosis. His sister, Elizabeth Alvarez Casajeros,
survived him and she was thereby substituted in his stead in the case. 21
(12) Negligence resulting in product oversupply;
Ruling of the CA
(13) Tardiness for which he was reprimanded;16
The petitioner elevated the case to the CA in a special civil action for
(14) Dishonesty for causing a subordinate to punch in his certiorari under Rule 65 of the Rules of Court. In its Decision22 dated
timecard for which he was dismissed from service effective June January 17, 2012, the CA upheld the NLRC’s conclusions adding that it
23,2009. had the power to receive evidence of the petitioner’s previous infractions
and based thereon there is satisfactory basis for GTBI to impose on him
the ultimate penalty of dismissal. The CA disposed thus:
GTBI explained that it found no need to present the foregoing records
before the LA considering that the petitioner’s last offense of dishonesty
was sufficiently serious to justify his dismissal. WHEREFORE, premises considered, the Petition is DENIED.1âwphi1 No
pronouncement as to costs.
In its Decision17 dated December 15, 2010, the NLRC denied the appeal
and held that the petitioner’s act of requesting his subordinate to "punch- SO ORDERED.23
in" his timecard does not fall within the ambit of serious misconduct
because it was not willful in character. On the contrary, the petitioner The petitioner moved for reconsideration,24 but his motion was denied in
acted in good faith for reporting his arrival at the workplace. The records CA’s Resolution25 dated May 18, 2012. Hence, the present recourse
of petitioner’s previous infractions were rejected by the NLRC since they ascribing that the CA erred in upholding the evidence belatedly submitted
were raised for the first time on appeal. by GTBI and in ruling that the petitioner committed serious misconduct
despite the absence of a wrongful intent in the transgression that led to
On motion for reconsideration, the NLRC reversed its initial ruling and his dismissal.
gave credence to records of the petitioner’s previous infractions and based
thereon, found his dismissal valid. The NLRC applied the "totality rule" The Court’s Ruling
which states that: "the totality of infractions or number of violations
committed during the period of employment shall be considered in The petition is bereft of merit.
determining the penalty to be imposed on the erring employee. The
offenses committed by him should not be taken singly and separately but
At the outset, it bears emphasizing that the inconsistent factual findings
in their totality. Fitness for continued employment cannot be
and conclusions of the LA and NLRC have already been addressed and
compartmentalized into tight little cubicles of aspects of character,
settled by the CA when it affirmed the latter tribunal. 26 Hence, the Court,
conduct and ability separate and independent of each other."18 The
not being a trier of facts, ought to accord respect if not finality to the
NLRC’s Resolution19 dated May 30,2011 disposed thus:
findings of the CA especially when the same are amply substantiated by
the records,27 as in this case.
WHEREFORE, Our Decision dated December 15, 2010 is hereby vacated
and set aside and a new one rendered dismissing the instant Complaint
Under Article 293 (formerly Article 279) of the Labor Code,28 an employer
for lack of merit.
shall not terminate the services of an employee except only for a just or
authorized cause. A dismissal not anchored on a just or authorized cause
SO ORDERED.20 is considered illegal and it entitles the employee to reinstatement or in
certain instances, separation pay in lieu thereof, as well as the payment of
backwages.
Article 296(c) (formerly Article 279[c]) of the same Code29 codifies the work related. It signifies and records the commencement of one’s work for
just causes of termination, among which is the employer’s loss of trust the day. It is from that moment that an employee dons the cape of duties
and confidence in its employee, the ground cited by GTBI in dismissing and responsibilities attached to his position in the workplace. It is the
the petitioner. reckoning point of the employer’s corresponding obligation to him – to
pay his salary and provide his occupational and welfare protection or
Loss of trust and confidence will validate an employee’s dismissal only benefits. Any form of dishonesty with respect to time cards is thus no
upon compliance with certain requirements, namely: (1) the employee trivial matter especially when it is carried out by a supervisory employee
concerned must be holding a position of trust and confidence; and (2) like the petitioner.
there must be an act that would justify the loss of trust and confidence.30
The transgression imputed to the petitioner was likewise attended with
There are two classes of positions of trust. First, are the managerial willfulness. It must be noted that the petitioner misled the labor tribunals
employees whose primary duty consists of the management of the in claiming that during his entire 12-year stint with GTBI, he was never
establishment in which they are employed or of a department or a meted with any disciplinary action. Records, however, disprove such
subdivision thereof, and to other officers or members of the managerial claim. Additional evidence were submitted by GTBI before the NLRC on
staff. The second class consists of the fiduciary rank-and-file employees, appeal34 and as correctly ruled by the CA, the same may be allowed as the
such as cashiers, auditors, property custodians, or those who, in the rules of evidence prevailing in courts of law or equity are not controlling
normal exercise of their functions, regularly handle significant amounts of in labor proceedings.35
money or property. These employees, though rank-and-file, are routinely
charged with the care and custody of the employer’s money or property, The said evidence shows at least three (3) different offenses – ranging
and are thus classified as occupying positions of trust and confidence.31 from tardiness, negligence in preparing inventory to dishonesty relating
to his timecard – repeatedly committed by the petitioner over the years
It is undisputed that at the time of his dismissal, the petitioner was and for which he has been constantly disciplined. On July 4, 2003, the
holding supervisory position after having risen from the ranks since the petitioner was found guilty of asking an employee to punch-in his time
start of his employment. His position is unmistakably one imbued with card for him. He was suspended for 45 days with a warning that a
trust and confidence as he is charged with the delicate task of overseeing recurrence of the same act will merit dismissal from service.36 He,
the operations and manpower of three stores owned by GTBI. As a however, disregarded this incident and the corrective intention of
supervisor, a high degree of honesty and responsibility, as compared with disciplinary action taken on him when he repeated the same act on May
ordinary rank-and-file employees, was required and expected of him. The 27, 2009.
fact that he was not charged with the custody of the company’s money or
property is in consequential because he belongs to the first class of A repetition of the same offense for which one has been previously
employees occupying position of trust and not to the fiduciary rank and disciplined and cautioned evinces deliberateness and willful intent; it
file class. negates mere lapse or error in judgment. While it may be assumed that
the petitioner has become stubborn or has forgotten the 2003 episode, it
The second requirement for dismissal due to loss of trust and confidence should not work to his advantage, because either cause demonstrates his
is further qualified by jurisprudence. The complained act must be work in difference to GTBI’s policies on employees’ conduct and discipline.
related such as would show the employee concerned to be unfit to Based on this consideration, taken together with his numerous other
continue working for the employer and it must be based on a willful offenses, GTBI had compelling reasons to conclude that the petitioner has
breach of trust and founded on clearly established facts.32 The basis for become unfit to remain in its employ.
the dismissal must be clearly and convincingly established but proof
beyond reasonable doubt is not necessary.33 In Merin v. MRC,37 the Court rules that in determining the sanction
imposable to an employee, the employer may consider and weight his
The analogous factual findings of the CA and the NLRC conform to the other past infractions, thus:
foregoing guidelines.1âwphi1 The punching of time card is undoubtedly
The totality of infractions or the number of violations committed during
the period of employment shall be considered in determining the penalty
to be imposed upon an erring employee. The offenses committed by
petitioner should not be taken singly and separately. Fitness for continued
employment cannot be compartmentalized into tight little cubicles of
aspects of character, conduct and ability separate and independent of each
other. While it may be true that petitioner was penalized for his previous
infractions, this does not and should not mean that his employment
record would be wiped clean of his infractions. After all, the record of an
employee is a relevant consideration in determining the penalty that
should be meted out since an employee's past misconduct and present
behavior must be taken together in determining the proper imposable
penalty. Despite the sanctions imposed upon petitioner, he continued to
commit misconduct and exhibit undesirable behavior onboard. Indeed,
the employer cannot be compelled to retain a misbehaving employee, or
one who is guilty of acts inimical to its interests. It has the right to dismiss
such an employee if only as a measure of self-protection.38 (Citations
omitted)

The NLRC and the CA were thus correct in applying the totality of
infractions rule and in adjudging that the petitioner's dismissal was
grounded on a just and valid cause. The standards of procedural due
process were likewise observed in effecting the petitioner's dismissal. As
ascertained by the NLRC and CA, GTBI sent the petitioner a Notice to
Explain dated May 27, 2009. On May 29, 2009, he reported to GTBI's
office and submitted his written explanation as shown in his letter bearing
the same date. On August 26, 2009, he received GTBI's Notice of
Termination dated June 23, 2009.39

WHEREFORE, premises considered, the petition is hereby DENIED. The


Decision dated January 17, 2012 and Resolution dated May 18, 2012 of the
Court of Appeals in CA-G.R. SP No. 120968 are AFFIRMED.

SO ORDERED.

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