Saturday, February 03, 2007 Separation pay despite valid dismissal By Dominador A. Almirante Labor case digest
RESPONDENT Anastacio Abad was dismissed as senior assistant manager of petitioner Philippine Commercial International Bank. In an investigation, transactions concerning the clearing of PNB-Naval Check of Sixto Chu, petitioner’s valued client, were discovered irregular and violative of the bank’s policies and rules and regulations.
The Court of Appeals sustained the factual findings of the National Labor Relations Commission (NLRC) and the labor arbiter that the dismissal of Abad was valid. It awarded, however, separation pay equivalent to half a month’s pay for every year of service, in accordance with the social justice policy in favor of the working class. Was the grant of separation pay justified?
Under the San Miguel test, separation pay may be awarded, provided that the dismissal does not fall under either of two circumstances: (1) there was serious misconduct, or (2) the dismissal reflected on the employee’s moral character. The dismissal in the present case was due to loss of trust and confidence, not serious misconduct. There had been jurisprudence granting separation pay for dismissals based on this ground. Not falling under the first qualification, the query now shifts to whether it was reflective of the moral character of respondent.
While he violated the bank’s policy, rules and regulations, there was no indication that his actions were perpetrated for his self-interest or for an unlawful purpose. On the contrary, and as the facts indicate, his actions were motivated by a desire to accommodate a valued client of the bank.
The Court is also mindful of previous rulings that have granted separation pay after giving considerable weight to long years of employment.
Accordingly, respondent’s employment of 25 years, with only one other infraction that petitioner has failed to elaborate on, supports the award of separation pay. (Philippine Commercial International Bank versus Anastacio D. Abad, G.R. No. 158045, Feb. 28, 2005).
