BACKWAGES CANNOT BE AWARDED IF THE EMPLOYEE WAS NOT ILLEGALLY DISMISSED
Backwages may be granted only when there is a finding that the dismissal is illegal.
The Supreme Court (SC) in the case of Stradcom Corporation and Jose A. Chua vs. Joyce Annabelle L. Orpilla (G.R. No. 206800, July 2, 2018) found just cause for Orpilla’s dismissal.
The SC held that the 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.
Guide to Valid Dismissal of Employees Second Edition by Atty. Elvin B. Villanueva: Learn the rules of valid employee termination on dishonesty, willful breach of trust, and loss of trust and confidence
The SC held further that even if there is a just cause to terminate Orpilla’s employment, her right to due process was not satisfied. On the matter of procedural due process, it is well-settled that the employer must furnish the employee with two written notices before termination of employment can be legally effected. The first apprises the employee of the particular acts or omissions for which dismissal is sought. The second informs the employee of the employer’s decision to dismiss him.
Here, the cause for termination was loss of trust and confidence, thus due to the employee or Orpilla’s fault, but Stradcom failed to comply with the twin-notice requirement. Thus, as a measure of equity, the SC ordered Stradcom to pay Orpilla nominal damages in the amount of P30,000.
Orpilla was not illegally dismissed hence, she is not entitled to backwages. Backwages may be granted only when there is a finding that the dismissal is illegal. Orpilla’s monetary claims for backwages, separation pay, moral and exemplary damages, as well as attorney’s fees must necessarily fail as a consequence of the finding that her dismissal was for a just cause and that Stradcom, et al. acted in good faith when they terminated her services.
Read the full digest of the case here
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