PANALIGAN v. PHYVITA ENTERPRISES

NORMAN PANALIGAN ET AL. VS. PHYVITA ENTERPRISES CORP.
G.R. No. 202086
June 21, 2017


Facts:

Panaligan et al (petitioner) were employees of Phyvita Enterprises corp. (respondent)
Panaligan was employed as a room boy at Phyvita Enterprises corp.
Sometime in Jan 2005, respondent discovered that the amount of 180,000 including some receipts and payroll were missing .

While the police investigation was pending, the petitioner together with some employees filed a complaint before the DOLE against respondent for 1.underpayment of wages, 2.non payment of special and legal holidays, 3.5 days service incentive leave, 4.night shift differential pay, 5.no pay slip, 6.signing of blank payroll.

In the interim, the respondent accused the petitioner of theft and stated that the latter is responsible for the loss of the money and properties.

Later, respondent terminated the employer-employee relationship between them and the petitioner based on loss of trust and confidence.

On June 2005, respondent filed a criminal complaint of theft against the petitioner, but the same was dismissed by the city prosecutor, there being no sufficient evidence.
On Nov 2006 petitioner filed a complaint with the LA alleging that they were illegally dismissed.

Respondent, on their defense, stated that the dismissal was legal because the allege criminal complaint was enough evidence to produce a substantial evidence.
LA ruled in favor of the respondent.

NLRC reversed the decision of LA and decided in favor of petitioner.
CA reversed the decision of NLRC.


Issue:

WON a dismissed criminal complaint is enough ground to terminate an employee based on loss of trust and confidence.


Held:

No, In order to dismiss an employee on the ground of loss of trust and confidence, the employee must be guilty of an actual and willful breach of trust duly supported by substantial evidence.

In the case at hand, respondent failed to adduce evidence that would clearly demonstrate that Panaligan have committed serious misconduct.
Hence a dismissed criminal complaint does not tantamount to a ground for termination of employment.
Art 282 of Labor code.