On 31 March 1992, the employee was hired as an able seaman by the employer on board one of its vessels. One of his primary duties entailed being a duty look-out during vessel navigation.
In 2016, after serving for 24 years, the employee was dismissed from employment for his failure to call out and report instances of oil pilferage when he was on duty. According to the employer, the employee was undoubtedly aware of the oil pilferage, for he had a good vantage point from his post. Despite said pilferage, Cordero did not report the same to his employer.
When the case reached the Court of Appeals, it affirmed the validity of the employee’s dismissal. However, it also awarded separation pay as a measure of compassionate justice since it found the penalty of dismissal too harsh.
The issue determined by the Supreme Court was on the propriety of the award of separation pay for this validly-dismissed employee.
The Supreme Court ruled that the award of separation pay was devoid of basis in fact and in law.
According to the Court, jurisprudence dictates that as a general rule, an employee who has been dismissed for any of the just causes enumerated under Article 282 of the Labor Code is not entitled to a separation pay. In exceptional cases, however, separation pay has been granted to a legally dismissed employee as an act of “social justice” or on “equitable grounds.” In both instances, it is required that the dismissal (1) was not for serious misconduct; and (2) did not reflect on the moral character of the employee.1Manila Water Co. v. Del Rosario, G.R. No. 188747, January 29, 2014, 725 PHIL 513-525 It is stressed that separation pay shall be allowed as a measure of social justice only in the instances where the employee is validly dismissed for causes other than serious misconduct or those reflecting on his moral character. A contrary rule would have the effect of rewarding rather than punishing the erring employee for his offense. The policy of social justice is not intended to countenance wrongdoing simply because it is committed by the underprivileged. Equity as an exceptional extenuating circumstance does not favor, nor may it be used to reward, the indolent or the wrongdoer for that matter. A party will not be allowed, in guise of equity, to benefit from his own fault.2Philippine Long Distance Telephone Co. v. National Labor Relations Commission, G.R. No. 80609, August 23, 1988, 247 PHIL 641-652 and Toyota Motor Phils. Corp. Workers Association v. National Labor Relations Commission, G.R. Nos. 158786, 158789 & 158798-99, October 19, 2007, 562 PHIL 759-817
In the present case, the Court acknowledged that the dismissal of the employee was valid. It also found that his infractions involved moral turpitude and constituted serious misconduct. No basis thus supported the award of separation pay.
The Court added that the employee’s long years of service did not serve to mitigate his offense and it should not be considered in meting out the appropriate penalty therefor. According to the Court, the infraction that he committed against his employer demonstrated the highest degree of ingratitude to an institution that has been the source of his livelihood for 24 years, constitutive of disloyalty and betrayal of the trust and confidence reposed upon him. The full trust and confidence reposed by the employer in him, coupled with the fact that he occupied a position that allowed him full access to its property, aggravated the offense.
Further reading:
- Herma Shipping and Transport Corp. v. Cordero, G.R. Nos. 244144 & 244210, January 27, 2020.
