Facts
Respondent Singson was an acting branch manager of Premier Development Bank (Now Security Bank), where he was assigned to its Quezon Avenue Branch. As acting branch manager, he was tasked with the safekeeping of its checkbooks and other forms.
When an inventory was conducted, it was found that some checkbooks under his safekeeping were nowhere to be found. Thus, pending investigation, he was reassigned to the Pedro Gil Branch. While in another branch, he was issued another memorandum to explain the inaccurate reporting of checks and other cash items.
He was then reassigned again to the Bank’s Sampaloc Manila Branch.
Dismayed by his frequent branch transfer, Singson filed his resignation. However, on the very next day after tendering his resignation, Security Bank terminated his employment on the grounds of habitual neglect of duties.
Hence, Singson filed a case of illegal dismissal with prayer for back wages, damages, and attorney’s fees.
The Labor Arbiter dismissed the complaint and declared that Singson was dismissed for just cause. However, the LA awarded the respondent separation pay by way of financial assistance in the amount of P218,500.00.
Aggrieved, Security Bank filed an appeal to the NLRC assailing the grant of separation pay to Singson.
In a Decision dated April 25, 2011, the NLRC affirmed the LA decision, ruling that the grant of separation pay was justified on equitable grounds such as respondent’s length of service, and that the cause of his dismissal was not due to gross misconduct or reflecting on his moral character but rather, a weakness of disposition and grievous error in judgment.
The CA likewise denied the petition and sustained the award of separation pay, stating that separation pay may be allowed as a measure of social justice where an employee was validly dismissed for causes other than serious misconduct or those reflecting on his moral character.
ISSUE: Whether Singson was entitled to separation pay despite being validly dismissed.
Ruling
Singson is not entitled to separation pay.
As a general rule, employees dismissed for just cause are not entitled to separation pay. However, as an exception, it may be granted if the dismissal is not due to serious misconduct and does not reflect on the moral character of the employee. On the other hand, separation pay cannot be granted if dismissal is based on serious misconduct, willful disobedience, gross and habitual neglect of duties, fraud, breach of trust, or commission of a crime.
In this case, Singson’s acts constituted gross and habitual neglect of duty. Further, his position involved high responsibility and required strict diligence. His repeated violations put the bank at risk despite the lack of bad faith on his part. His length of service and clean record do not justify financial assistance.