This is the case of Abet who had been working for a Rubber Company (PTRC) since February 9, 1978. Through the years, he became the housekeeping coordinator at the General Services Department of PTRC receiving a monthly salary of P8,784. One of his duties was to recommend to the Company, for its approval, projects intended for beautification and maintenance of its premises. Also working in the Company is Mr. Donato, the Administrative Officer and Head of the Security and Safety Department who was apparently displeased with Abet.
On January 1991, PTRC hired the services of Vic, a sign painter to paint its trash cans, push carts and cigarette waste boxes at the company premises. There was no contract or purchase order as to the price of the painting job. They just agreed that Vic’s services will be paid upon completion of the painting job and submission of the corresponding invoice.
On February 15, 1991, Mr. Donato allegedly received from Vic a complaint that he was being forced by Abet to overprice by P1,000 his service fee of P3,800 and to deliver to Abet the said amount of P1,000; and that should Vic fail to do so, he will no longer be awarded future contracts. At the investigation conducted by Mr. Donato, Vic said that: "P3,500 lamang ang gusto ko sana, hindi ko alam kung biro o totoo ang sinabi niya". He further told Abet that "Lakarin natin ito, ako ang bahala sa iyo".
At this juncture, PTRC already assigned Abet to perform janitorial duties, prompting him to request an immediate disposition of his case. And when Vic failed to submit his evidence within 3 days as directed, the Company sent him a notice terminating his services effective March 3, 1991 for extortion, fraud, serious misconduct and willful breach of trust and confidence. Was the Company correct?
No. There is neither direct nor documentary evidence to prove that Abet was involved in extortion. In fact Vic did not categorically state that he was pressured by Abet to overprice his service fee. It is not clear that Abet urged or forced Vic to increase his service fee by P1,000 and to give the amount to him. Vic is not certain whether Abet was really serious when he allegedly told him to increase his service fee to P4,800. Abet was dismissed allegedly for asking, not receiving, the sum of P1,000 from Vic. This alleged request is not supported by any documentary evidence. No purchase order was presented to show that Vic was given a contract to prove that his services for painting trash cans and cigarette butt boxes at the company premises were for the price of P3,800. PTRC failed to prove its charge by substantial evidence.
Abet was therefore illegally dismissed and is entitled to reinstatement without loss of seniority rights, full back wages, inclusive of allowances and other benefits or their monetary equivalent computed from the time his compensation was withheld up to the time of his actual reinstatement. But since the company has completely ceased its tire manufacturing and marketing operations, the more equitable disposition would be an award of separation pay equivalent to one month pay for every year of service. Since Abet was employed from February 9, 1978 to March 3, 1991 or for thirteen years, with a monthly salary of P8,784, he is entitled to P114,192 (Philtread Tire and Rubber Corp. vs. Vicente, G.R. 142759, November 10, 2004).