Philippine Savings Bank v. NLRC

G.R. No. 111173 (September 4, 1996)

Facts:

Private respondent Victoria T. Centeno began her employment with the Philippine Savings Bank on November 3, 1965, and was promoted to assistant cashier at the Taytay branch by February 4, 1985, earning a monthly salary of P2,672.00. From September 17, 1984, to November 15, 1984, she served as the acting branch cashier during the maternity leave of the regular cashier, Mrs. Victoria UbaAa. In this capacity, she was responsible for managing the cash in the vault and preparing the daily cash proof sheet.

On November 16, 1984, upon Mrs. UbaAa's return, Centeno deposited P356,400.00 into the Metropolitan Bank and Trust Co. (Metrobank). However, discrepancies arose when the cash proof and batch sheets indicated a deposit of P371,400.00. An audit revealed a P15,000.00 shortage on the same day, prompting an investigation by a committee that included Centeno and other bank employees. The committee concluded that Centeno was accountable for the shortage.

On January 7, 1985, Centeno received a memorandum requiring her to explain the shortage and informing her of a 30-day preventive suspension. Despite requesting an extension to respond, she failed to submit any explanation. Consequently, on February 4, 1985, she was dismissed from her position, with the bank citing her failure to explain the shortage as an admission of guilt and a loss of trust.

Centeno subsequently filed a complaint for illegal dismissal before the Labor Arbiter, asserting that her dismissal lacked basis and that she was denied due process. The bank contended that her dismissal was justified due to loss of trust and confidence, stemming from the alleged falsification of documents.

Legal Issues:

1. Was the dismissal of Victoria T. Centeno lawful, or did it constitute illegal dismissal?
2. Did the petitioner (Philippine Savings Bank) provide Centeno with due process prior to her dismissal?
3. Was there sufficient evidence to support the claims of loss of trust and confidence leading to Centeno's dismissal?

Arguments:

Petitioner (Philippine Savings Bank):

• The bank argued that Centeno was dismissed for loss of trust and confidence due to her alleged falsification of the deposit slip and the cash proof sheet.
• The bank maintained that it complied with due process by providing Centeno with a memorandum detailing the charges against her and an opportunity to respond.
• The bank asserted that the evidence of Centeno's misconduct was substantial, justifying her dismissal.

Respondent (Victoria T. Centeno):

• Centeno contended that her dismissal was without basis and that she was denied due process, as she was not informed of the specific acts leading to her dismissal.
• She argued that her long tenure and good record with the bank should have warranted a more careful investigation before any disciplinary action was taken.
• Centeno claimed that the evidence presented by the bank was circumstantial and insufficient to establish her guilt.

Court's Decision and Legal Reasoning:

The National Labor Relations Commission (NLRC) affirmed the Labor Arbiter's decision, which found Centeno's dismissal illegal and ordered her reinstatement with backwages. The Supreme Court upheld the NLRC's ruling, emphasizing the following points:

1. Due Process: The Court found that Centeno was indeed given notice of the charges against her and an opportunity to respond. However, her failure to submit an explanation constituted a waiver of her right to be heard. The Court clarified that due process does not always require a formal hearing, especially when an employee chooses not to present their side.

2. Loss of Trust and Confidence: The Court reiterated that while loss of trust is a valid ground for dismissal, the employer must provide clear and convincing evidence to support such a claim. The bank's allegations of falsification were not substantiated by concrete evidence, as the purported falsified documents were not presented.

3. Substantial Evidence: The Court noted that the evidence presented by the bank was circumstantial and did not conclusively establish Centeno's wrongdoing. The audit findings and the circumstances surrounding the cash turnover did not definitively implicate her in the alleged misconduct.

4. Reinstatement and Backwages: The Court ruled that Centeno was entitled to reinstatement and backwages, limiting the backwages to three years in accordance with existing labor laws at the time of her dismissal.

Significant Legal Principles Established:

• The requirement of due process in employment termination cases includes providing the employee with written notice of the charges and an opportunity to respond.
• Loss of trust and confidence must be supported by substantial evidence; mere allegations are insufficient for lawful dismissal.
• An employee's long service and good record may weigh against hasty disciplinary actions without thorough investigation.