DELFIN G.

VILLARAMA vs NATIONAL LABOR RELATIONS COMMISSION AND GOLDEN

DONUTS, INC.

G.R. No. 106341 September 2, 1994

Ponente: PUNO, J.

FACTS:

Petitioner Delfin Villarama was employed by private respondent GOLDEN DONUTS,

INC., as its Materials Manager. Villarama was charged with sexual harassment by Divina
Gonzaga, a clerk-typist assigned in his department. The humiliating experience compelled her
to resign from work.This prompted Mr. Leopoldo Prieto, President of Golden Donuts, Inc., to call
Villarama to a meeting, where Villarama agreed to tender his resignation. Golden Donuts moved
swiftly to separate petitioner - it approved petitioner's application for leave of absence with pay
and issued an inter-office memorandum advising all concerned that Villarama was no longer
connected with the company. Later on, however Villarama reneged on the agreement. Still,
Golden Donuts terminated Villarama prompting the latter to file a complaint for illegal dismissal.
The Labor Arbiter and the NLRC ruled in favor of Villarama holding that due process was not
observed.

ISSUE:

Whether or not there was valid cause to terminate petitioner.

HELD:

Yes. Loss of trust and confidence is a good ground for dismissing a managerial employee. It can
be proved by substantial evidence which is present in the case at bench.

As a managerial employee, petitioner is bound by a more exacting work ethics. He failed

to live up to this higher standard of responsibility when he succumbed to his moral perversity.
And when such moral perversity is perpetrated against his subordinate, he provides justifiable
ground for his dismissal for lack of trust and confidence. It is the right, nay, the duty of every
employer to protect its employees from over sexed superiors.

To be sure, employers are given wider latitude of discretion in terminating the

employment of managerial employees on the ground of lack of trust and confidence.