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    Tiff Dizon
    1) Respondents were caught playing cards at their workplace during working hours, which their employer Universal Canning Inc. considered a violation of company rules banning gambling on premises. 2) Universal Canning Inc. dismissed the respondents, citing loss of trust and confidence as well as infraction of company rules. 3) While loss of trust and confidence was not a valid reason for dismissal, infraction of company rules such as engaging in gambling activities during work hours constituted serious misconduct and was just cause for termination under the Labor Code.

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    1) Respondents were caught playing cards at their workplace during working hours, which their employer Universal Canning Inc. considered a violation of company rules banning gambling on premises. 2) Universal Canning Inc. dismissed the respondents, citing loss of trust and confidence as well as infraction of company rules. 3) While loss of trust and confidence was not a valid reason for dismissal, infraction of company rules such as engaging in gambling activities during work hours constituted serious misconduct and was just cause for termination under the Labor Code.

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    1) Respondents were caught playing cards at their workplace during working hours, which their employer Universal Canning Inc. considered a violation of company rules banning gambling on premises. 2) Universal Canning Inc. dismissed the respondents, citing loss of trust and confidence as well as infraction of company rules. 3) While loss of trust and confidence was not a valid reason for dismissal, infraction of company rules such as engaging in gambling activities during work hours constituted serious misconduct and was just cause for termination under the Labor Code.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    133 views2 pages

    5

    Uploaded by

    Tiff Dizon
    1) Respondents were caught playing cards at their workplace during working hours, which their employer Universal Canning Inc. considered a violation of company rules banning gambling on premises. 2) Universal Canning Inc. dismissed the respondents, citing loss of trust and confidence as well as infraction of company rules. 3) While loss of trust and confidence was not a valid reason for dismissal, infraction of company rules such as engaging in gambling activities during work hours constituted serious misconduct and was just cause for termination under the Labor Code.

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    Universal Canning Inc. v. Court of Appeals; G.R. No. 215047, November 23 2016.

    Facts:
    Petitioner Universal Canning Inc. is a domestic corporation. Respondents Dante
    Sarosal, Francisco Dumagal Jr., Nelson Francisco, Elmer Saromines and Samuel Coronel
    were employed by petitioner Universal Canning on various capacities.
    On 21 January 2009, respondents were caught playing cards at the company's
    premises during working hours. The incident was immediately reported to the Personnel
    Officer, Ma. Lourdes Losaria, who immediately conducted an investigation. On the same
    day, respondents were placed under preventive investigation pending further investigation by
    a panel indicated in a memorandum. Under the same memorandum, respondents were
    required by the petitioner to file their written explanation of the incident. Respondents
    complied with the directive.
    In their letter-explanation, respondents denied that they were involved in gambling
    activities within the company's premises during work hours. The respondents argued that
    while they were playing cards inside the company premises, it cannot be considered gambling
    as there was no money involved, and that it took place during noon break.
    After the investigation, the Investigating Officer found that respondents were playing
    cards during working hours which is considered an infraction of the company's rules and
    regulations. Accordingly, respondents were dismissed from employment through a notice
    which enumerated the grounds: (1) taking part in a betting, gambling or any unauthorized
    game of chance inside the company premises while on duty; and (2) for loss of trust and
    confidence. The termination of respondents was reported by the petitioner to DOLE on 24
    February 2009.
    Aggrieved, respondents initiated an action for illegal dismissal arguing that their
    severance from employment is unlawful because of lack of sufficient basis for their
    termination. They reiterated their contention that they could not be considered guilty of
    gambling because there were no stakes involved and it took place during noon break.
    LA: Dismissed the complaint of the respondent workers, arguing that respondents were
    dismissed for just cause and after compliance with due process.
    NLRC: Affirmed the decision of the LA.
    CA: Reversed the decision of the NLRC. It argued that there exists no just cause to dismiss
    respondents from employment. As rank and file employees, respondents could not be
    dismissed for lack of trust and confidence as they were not holding positions imbued with
    trust and confidence.
    Issue: Whether or not there is just cause for dismissing respondent workers from
    employment.
    Ruling: YES, there is just cause for dismissing the respondents from employment. While it is
    true that loss of trust and confidence could not stand as a ground for dismissal since
    respondents are not occupying positions of trust and confidence, such is NOT THE ONLY
    GROUND relied upon by the company in terminating the respondents. The Petitioner
    company also cited the infraction of company rules and regulations, in addition to loss and
    trust of confidence. Infraction of the company rules and regulation which is akin to serious
    misconduct is a just cause for termination of employment recognized under Article 282 (a) of
    the Labor Code which states that:

    ARTICLE 282. Termination by employer. An employer may terminate


    an employment for any of the following causes: (a) Serious misconduct
    or willful disobedience by the employee of the lawful orders of his
    employer or representative in connection with his work;

    Misconduct is defined as an improper or wrong conduct. It is a transgression of some


    established and definite rule of action, a forbidden act, a dereliction of duty, willful in
    character, and implies wrongful intent and not mere error in judgment. To constitute a valid
    cause for the dismissal within the text and meaning of Article 282 of the Labor Code, the
    employee's misconduct must be serious, i.e., of such grave and aggravated character and not
    merely trivial or unimportant. Additionally, the misconduct must be related to the
    performance of the employee's duties showing him to be unfit to continue working for the
    employer.

    Here, there is no question that respondents were caught in the act of engaging in
    gambling activities inside the workplace during work hours. As a matter of fact, respondents
    never controverted their participation in the gambling activities, but instead raised the
    defense that it took place during noon break and that no stakes were involved; these claims
    even if were proven true, will however not save the day for the respondents. The use of the
    company's time and premises for gambling activities is a grave offense which warrants the
    penalty of dismissal for it amounts to theft of the company's time and it is explicitly
    prohibited by the company rules on the ground that it is against public morals.

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