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Moreno v. College-Recoletos

Moreno v. San Sebastian College-Recoletos, Manila, G.R. No. 175283, March 28, 2008

G.R. No. 175283March 28, 2008Ponente: CHICO-NAZARIO, J.
  • Labor Law
  • illegal dismissal
  • faculty manual
  • unauthorized outside teaching load
  • substantive due process
  • Article 282
  • just cause
  • dismissal penalty mitigation
  • backwages
  • Rule 45 certiorari

Read the full decision

I. Facts of the Case

Petitioner Jackqui R. Moreno was employed by respondent San Sebastian College-Recoletos, Manila (SSC-R) as a full-time and later permanent college faculty member. After SSC-R found that she taught in other schools without the required written permission and failed to disclose her outside teaching load, Moreno was terminated. Moreno challenged her dismissal as illegal, leading to decisions by the Labor Arbiter, NLRC, the Court of Appeals, and ultimately the Supreme Court.

  1. January 16, 1999

    SSC-R employed Moreno as a teaching fellow.

  2. October 23, 2000

    Moreno was appointed as a full-time college faculty member.

  3. October 22, 2001

    Moreno became a member of the permanent college faculty.

  4. September 13, 2002

    SSC-R offered Moreno the chairmanship of the Business Finance and Accountancy Department.

  5. October 24, 2002

    SSC-R’s Human Resource Department investigation reported that Moreno had unauthorized teaching assignments at Centro Escolar University (first semester SY 2002-2003) and at the College of the Holy Spirit, Manila (SY 2000-2001, 2001-2002, and first semester SY 2002-2003).

  6. October 27, 2002

    Moreno received a memorandum from the Dean requiring her to explain the reports of unauthorized external teaching engagements.

  7. October 28, 2002

    Moreno submitted a written explanation admitting she did not secure written permission before teaching elsewhere and explaining that her teaching was allegedly transitory due to urgent needs of other schools and her intention to address her family’s financial condition.

  8. November 11, 2002

    The Special Grievance Committee required Moreno to answer five questions concerning her unauthorized teaching and disclosure; Moreno responded on November 12, 2002.

  9. November 11, 2002

    The grievance committee issued a resolution finding Moreno violated the prohibition against unauthorized external teaching load for full-time faculty; the majority recommended dismissal and the Dean dissented for a one-semester suspension.

  10. November 2002

    SSC-R, through the College President, adopted the committee’s resolution and informed Moreno that her employment would be terminated effective November 16, 2002.

  11. Moreno filed a complaint with the NLRC for illegal termination against SSC-R (NLRC-NCR Case No. 11-10077-02), seeking reinstatement, money claims, backwages, separation pay if reinstatement was not viable, and attorney’s fees.

  12. April 30, 2003

    The Labor Arbiter dismissed Moreno’s complaint for lack of merit, reasoning that Moreno’s acceptance of a permanent faculty position bound her not to accept outside teaching without permission and that her admission made her liable for dismissal under the Faculty Manual, while awarding unpaid salaries for fifteen days.

  13. November 23, 2004

    The NLRC reversed the Labor Arbiter, held that dismissal was too harsh, and ordered Moreno’s reinstatement with full backwages (counted from November 16, 2003 to actual reinstatement).

  14. March 31, 2005

    SSC-R’s motion for reconsideration was denied by the NLRC.

  15. November 7, 2006

    The Court of Appeals granted SSC-R’s Rule 65 petition for certiorari, annulled the NLRC decisions, and reinstated and affirmed the Labor Arbiter’s dismissal.

  16. March 28, 2008

    The Supreme Court granted Moreno’s petition in part: it found that although Moreno committed misconduct for violating school policy, SSC-R failed to prove the level of gravity and evidentiary requirements for dismissal; it modified the penalty to a one-year suspension (deemed served) and ordered reinstatement without loss of seniority rights and privileges, but without backwages.

II. Issues

1
Labor Law

Whether or not the dismissal of petitioner was proper and lawful.

2
Labor Law

Whether or not petitioner is entitled to the relief she seeks against respondent.

III. Ruling

Issue 1Labor Law

Whether or not the dismissal of petitioner was proper and lawful.

No

The dismissal was not proper because SSC-R failed to meet the substantive and evidentiary requirements for a just cause that warrants the penalty of dismissal; the sanction was mitigated to one-year suspension with reinstatement but without backwages.

How the Court reasoned

  1. SSC-R proved that Moreno violated the school’s policy requiring administrative permission for full-time faculty members to teach part-time elsewhere and requiring reporting/disclosure of outside teaching assignments.
  2. However, the Court held that violation of a school rule does not automatically justify dismissal unless the employer proves that the act constitutes the most serious misconduct and meets the gravity and evidentiary requirements for just cause under the Labor Code.
  3. The Court emphasized the employer’s burden of proving the legality of termination and that dismissal, being a severe penalty, requires strict compliance with substantive due process.
  4. The Court found SSC-R failed to establish the required perverse and wrongful intent that would elevate the misconduct to a level warranting dismissal.

Rule applied

Article 282(a) of the Labor Code; substantive due process and employer’s burden of proof in termination cases

Issue 2Labor Law

Whether or not petitioner is entitled to the relief she seeks against respondent.

Yes

Moreno was granted relief only to the extent of having her dismissal converted into a one-year suspension (deemed served) and reinstatement without loss of seniority rights and privileges; she was not awarded backwages.

How the Court reasoned

  1. Although Moreno’s separation could not stand as a dismissal, the Court still recognized that her admitted misconduct violated SSC-R’s faculty policies.
  2. Applying the standard for just cause penalties, the Court mitigated the penalty to one-year suspension instead of reinstating with full monetary benefits.
  3. The Court ordered reinstatement without loss of seniority rights and other privileges, aligning the remedy with the reduced sanction.
  4. The Court denied backwages, applying the doctrine that backwages may be mitigated or even absolved where the employer’s good faith is evident and dismissal is found improper on substantive grounds.
“In accordance with Durabuilt Recapping Plant & Co. v. National Labor Relations Commission,43 the Court may not only mitigate, but also absolve entirely, the liability of the employer to pay backwages where good faith is evident.”

Rule applied

Durabuilt Recapping Plant & Co. v. National Labor Relations Commission

Doctrines

1

Dismissal fails to comply with substantive due process when the employer cannot prove, by the required evidentiary standard, that the employee’s misconduct is sufficiently grave and attended by the intent necessary to constitute just cause under the Labor Code.

2

While a finding of improper dismissal generally supports reinstatement, the penalty and monetary awards (including backwages) may be mitigated or even absolved where good faith on the part of the employer is evident, following Durabuilt Recapping Plant & Co. v. NLRC.

Final Disposition

WHEREFORE, the Petition for Review is GRANTED. The Decision of the Court of Appeals in CA-G.R. SP No 90083 dated 7 November 2006 is hereby REVERSED. Respondent San Sebastian College-Recoletos, Manila, is hereby ordered to reinstate Petitioner Jackqui R. Moreno without loss of seniority rights and other privileges. No pronouncement as to cost.

Notes

The case involved admitted violations of SSC-R faculty policy on unauthorized outside teaching and disclosure, but the Supreme Court reduced the penalty because the statutory gravity/evidentiary requirements for dismissal were not met and backwages were not awarded due to mitigation under the good-faith doctrine.