Case Citation: Stradcom Corp. v. Orpilla, July 2, 2018 G.R. No.

206800

Petitioners: STRADCOM CORPORATION AND JOSE A. CHUA

Respondents: JOYCE ANNABELLE L. ORPILLA

Syllabus Topic: Consequence of Dismissal

Doctrine: What is SC teaching us in this case in relation to the syllabus topic?

Case Summary

Facts Respondent Orpilla was employed by Stradcom as HRAD Head, a managerial position
while Chua is the President and Chief Executive Officer (CEO) of Stradcom who
issued a Memorandum announcing the reorganization of the HRAD.

After the turn-over of the documents and equipment of HRAD, respondent inquired
from Chua as to her status in the light of the said reorganization. Chua, on the other
hand, replied that the management has lost its trust and confidence in her because of
her mishandling of Stradcom’s 2002 Christmas Party. Dishonesty in preparing the
budget thereof, misrepresentation in her application for employment and using
company personnel and resources for purposes not beneficial to the interest of
Stradcom. Chua advised the respondent that it would be better if she resigned.
Respondent alleged that she was refused entry when she reported for work one day.
She thereafter filed a complaint for constructive dismissal against Stradcom and Chua.

Issue: WON respondent was validly dismissed from employment on the ground of loss of
trust and confidence. (YES)

Labor Arbiter: Ruled that respondent was illegally dismissed and Chua is solidarily liable with
Stradcom for the payment of the monetary awards to respondent

NLRC: The NLRC ruled that respondent was validly dismissed on the ground of loss and trust
confidence, due to her mishandling of the 2002 budget for the Christmas party.

CA Ruling: CA reversed and set aside the NLRC and ruled that respondent was illegally dismissed

Petitioner’s Contention: Petitioners contended that the dismissal of respondent was for just cause on the ground
of loss of trust and confidence and the same was in compliance .with the due process
requirements.

Petitioners further contended that the acts that caused the loss of trust and confidence
of the petitioners in the respondent were:

1. mishandling of Stradcom's 2002 Christmas party

2. dishonesty in preparing the budget thereof,
3. misrepresentation in her application for employment, and
4. using company personnel and resources for purposes not beneficial to the
interest of Stradcom

Respondent’s
Contention:
SC Ruling: The petition is meritorious. The SC finds that the petitioners proved that respondent
was dismissed for a just cause.

The dismissal of respondent was founded on just cause - loss of trust and confidence

It is undisputed that at the time of respondent's dismissal, she was holding a managerial
position, which was HRAD Head of Stradcom and directly reported to the President,
herein Chua and other high-ranking officials of Stradcom. Likewise, respondent
performed key and sensitive functions, as her duties and responsibilities included the
administration, personnel and training matters of the company. Respondent held a trust
and critical position which required the conscientious observance of the company rules
and procedures.

The acts alleged to have caused the loss of trust and confidence of the petitioners in
the respondent was her mishandling of Stradcom's 2002 Christmas party, dishonesty
in preparing the budget thereof, misrepresentation in her application for employment,
and using company personnel and resources for purposes not beneficial to the interest
of Stradcom. The evidence on record support Stradcom's claims.

Such dishonesty on the part of the respondent in carrying out her duties is prejudicial
to the interest of Stradcom and constitutes just cause to terminate her employment.

Considering the foregoing, this Court agrees with the findings of the NLRC that there
was a just cause for the respondent's dismissal. We emphasize that dismissal of a
dishonest employee is to the best interest not only of the management but also of labor.
Stradcom, as an employer in the exercise of self-protection, cannot be compelled to
continue employing an employee who is guilty of acts inimical to its interest.

Dispositive Portion WHEREFORE, premises considered, the petition is GRANTED. The assailed Court of
Appeals Decision dated September 28, 2012 and Resolution dated April 17, 2013, are
hereby REVERSED and SET ASIDE, and the Decision of the National Labor Relations
Commission dated July 30, 2004, is REINSTATED but MODIFIED to the effect that
backwages and attorney's fees are hereby DELETED, and that Stradcom Corporation
is liable to pay respondent Joyce Anabelle L. Orpilla nominal damages in the amount
of'₱30,000.

SO ORDERED.

Other/Notes: