Digest.ph

This case involves the dismissal of Nicerato E. Carbonilla, Jr. by the Cebu People's Multi-Purpose Cooperative (CPMPC). Carbonilla, Jr. was hired as a credit and collection manager and later assigned to perform duties as the human resources department manager and legal officer. CPMPG alleged that Carbonilla, Jr. committed various infractions, including non-attendance to meetings, failure to submit reports, allowing a collector to drive without a license, failure to account for a motorcycle, and disrespectful behavior towards superiors. After conducting an investigation, CPMPG dismissed Carbonilla, Jr. for serious misconduct and loss of trust and confidence. Carbonilla, Jr. filed a complaint for illegal dismissal, non-payment of salaries, and damages. The Labor Arbiter dismissed the complaint, finding that Carbonilla, Jr. committed serious misconduct and that CPMPG followed due process. The National Labor Relations Commission (NLRC) affirmed the decision. However, the Court of Appeals (CA) reversed the NLRC's ruling, finding that CPMPG failed to prove just cause for dismissal. The CA ordered Carbonilla, Jr.'s reinstatement and remanded the case for the computation of backwages. CPMPG filed a petition for review on certiorari before the Supreme Court.

An employer may validly terminate an employee for just causes, such as serious misconduct and loss of trust and confidence. Serious misconduct refers to a transgression of established rules of action, a forbidden act, or a dereliction of duty. Loss of trust and confidence may be a ground for termination when the employee holds a position of trust and confidence and performs an act that justifies the loss of trust.