After reading, Dismissal of a Dishonest Employee, read also What Are Unfair Labor Practices Of Employers?
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An act of dishonesty by an employee who has been put in charge of the employer’s money and property amounts to breach of the trust reposed by the employer
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An act of dishonesty must show deceit or constitute fraud
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Dismissal is the most severe penalty that an employer can impose on an employee
In the case of Gargoles vs. Del Rosario (G.R. No. 158583, September 10, 2014), an act of dishonesty by an employee who has been put in charge of the employer’s money and property amounts to breach of trust repost by the employer, and normally leads to loss of confidence in her. Such dishonesty comes within the just and valid causes for the termination of her employment under the Labor Code of the Philippines.
Is a provision in the employee’s handbook stating that “any form of dishonesty” shall constitute serious offense(s) calling for termination valid?
For a better understanding, let us take the case of The Hongkong and Shanghai Banking Corporation vs. NLRC (G.R. No. 116542, July 30, 1996).
In this case, the complainant was regular rank and file employee of a bank. On February 3, 1993, the complainant called the bank to inform the latter that he had an upset stomach and would not be able to report for work. He was allowed to go on sick leave on that day.
Later on that day, the bank called complainant at his given phone number in order to obtain vital information from him, but the bank was informed by the answering party at the phone number given by the complainant that the complainant left early that morning.
When complainant reported for work the following day, he was asked by his superior to explain why he was not at his residence on February 3, 1993 when he was on sick leave because of an upset stomach.
Complainant explained that he suffered from an upset stomach and that he even consulted a doctor on the same day, February 3, 1993. When the bank called the doctor to verify the truth of the complainant’s statement, the doctor denied that he examined the complainant on that day.
The complainant was later dismissed by the bank based on the latter’s Employee Handbook which made “any form of dishonesty” a cause for termination.
Is the dismissal valid?
The Supreme Court said:
No.
Dismissal is the most severe penalty that an employer can impose on an employee. It goes without saying that care must be taken, and due regard given to an employee’s circumstances, in the application of such punishment. Moreover, the complainant’s act of dishonesty – his first offense in his seven years of employment- did not show deceit nor constitute fraud and did not result in actual prejudice to the bank. Such dismissal is far too harsh, too severe, excessive and unreasonable under the circumstances.
Furthermore, to be lawful, the cause for termination must be serious and grave malfeasance to justify the deprivation of a means of livelihood. This is merely in keeping with the spirit of the laws which lean over backwards in favor of the working class, and mandate that every doubt must be resolved in their favor.
Alburo Alburo and Associates Law Offices specializes in business law and labor law consulting. For inquiries, you may reach us at info@alburolaw.com, or dial us at (02)7745-4391/0917-5772207.
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