Philippine Geothermal, Inc. v. National Labor Relations Commission
REITERATIONFacts
1. The Antecedents: Warehouseman Vicente Ernesto acknowledged receipt of 10,000 liters of Petron diesel oil valued at P11,737. However, the oil was diverted and sold to a third party for P9,000. Driver Juan Reyes confessed that he sold the oil and paid Ernesto P4,500 as his share, indicating Ernesto connived in the diversion and sale. 2. Procedural History: A criminal case for qualified theft was filed against Ernesto, Reyes, and helper Marcos Geralde. However, the fiscal dismissed the case against Ernesto after a reinvestigation where Reyes and security guard Roberto Solis did not testify. The company's appeal to the Minister of Justice was also dismissed. Despite this, Philippine Geothermal, Inc. dismissed Ernesto. Ernesto then filed a complaint for reinstatement with backwages, which was tried jointly with the company's application for clearance to dismiss. The Labor Arbiter ordered reinstatement, and the National Labor Relations Commission (NLRC) affirmed this decision with modifications. 3. The Petition: Philippine Geothermal, Inc. filed a petition for review, arguing that the Labor Arbiter and the NLRC committed grave abuse of discretion by disregarding the testimonies of Solis and Reyes, which proved Ernesto's involvement in the theft. The company contended that Ernesto's exoneration in the criminal case did not preclude his dismissal by the employer, as sufficient evidence of breach of trust existed, which is a statutory ground for dismissal under the Labor Code.
Issue(s)
Whether the National Labor Relations Commission committed a grave abuse of discretion amounting to lack of jurisdiction in ordering the reinstatement of Vicente Ernesto. Whether the exoneration of Vicente Ernesto by the fiscal precludes his dismissal by the employer.
Ruling
The decision of the National Labor Relations Commission is reversed and set aside, and the dismissal of Vicente Ernesto as petitioner's warehouseman is decreed.
Ratio Decidendi
On the issue of grave abuse of discretion and reinstatement: The Court held that the Labor Arbiter and the NLRC committed a grave abuse of discretion amounting to lack of jurisdiction in disregarding the testimonies of the security guard, Roberto Solis, and the tanker driver, Juan Reyes. These testimonies proved that Ernesto was implicated in the theft of the diesel oil, and Ernesto did not rebut them. Therefore, his reinstatement was not justified. The Court emphasized that the employer has the right to dismiss an employee for fraud or breach of trust, which is a statutory ground for dismissal under Article 283(c) of the Labor Code. The evidence presented by the petitioner showed that Ernesto committed such a breach of trust, giving the employer ample reason to distrust him. On the issue of fiscal's exoneration: The Court ruled that the fiscal's exoneration of Ernesto does not justify his reinstatement. The conviction of an employee in a criminal case is not indispensable for his dismissal by the employer. If sufficient evidence exists to show a breach of trust, the labor tribunal cannot deny the employer the authority to dismiss the employee. The ruling in National Labor Union, Inc. vs. Standard Vacuum Oil Company was cited, which held that the dropping of a criminal complaint by the fiscal is not binding and conclusive on the labor tribunal. Similar holdings in National Organization of Laborers and Employees vs. Roldan and Phil. Education Co., Inc. vs. Union of Phil. Education Employees and CIR were also referenced, where employees involved in shortages were dismissed despite the fiscal dismissing charges against them.
Main Doctrine
The conviction of an employee in a criminal case is not indispensable to warrant his dismissal by his employer if there is sufficient evidence to show that the employee has been guilty of a breach of trust, or that his employer has ample reason to distrust him. The fact that a criminal complaint for theft against an employee was dropped by the fiscal is not binding and conclusive on the labor tribunal.