SC orders firm to take back fired manager

CEBU, Philippines - The Supreme Court has ordered the officials of a Cebu-based furniture factory to reinstate their former human resource manager after ruling that he was illegally dismissed by the company a few years ago.

Justice Consuelo Ynares-Santiago who penned the decision affirmed the appellate court’s decision that Ireneo Leuterio was illegally dismissed of his job from Casa Cebuana Incorporada, represented by its president Angela Figueroa Paulin.

The High Tribunal rejected the contention of Paulin’s lawyers that Leuterio voluntarily resigned from his job after he refused to execute a real estate mortgage of his lot in favor of Casa Cebuana Incorporada.

The SC ruled that a valid dismissal from the service must comply with two requisites; the dismissal must be for any of the causes stated in Article 282 of the Labor Code, and the employee must have been accorded due process, basic of which is the opportunity to be heard and to defend himself.

The records showed that on November 24, 2000, Leuterio was granted a loan amounting to P1,035,000 for the purchase of a lot, evidenced by a promissory note, wherein he authorized his employer to deduct P5,000 from his monthly salary as installment payment for the debt.

Subsequently, on February 24, 2003, Paulin wanted him to execute a real estate mortgage over the lot, but Leuterio refused, contending that there was no agreement to that effect between him and the company when the loan was contracted.  

The labor arbiter and the National Labor Relations Commission ordered the reinstatement of Leuterio, but Paulin’s lawyer quickly filed a motion for reconsideration of the NLRC’s ruling and succeeded getting a favorable ruling.

This time, the NLRC found the respondent to have voluntarily resigned when he allegedly made known to a company security guard that he was quitting.

Leuterio then elevated the case to the appellate court and successfully convinced the Court of Appeals to reverse the NLRC decision, that prompted the furniture firm to seek the High Court’s ruling.

The SC justices ruled that Leuterio was really dismissed from his job because he was not afforded his right to defend himself. — Rene U. Borromeo/BRP (THE FREEMAN)