TIRAZONA v. PHILIPPINE EDS TECHNO-SERVICE INC. (PET, Inc.) if the money was not paid within five days.
was not paid within five days. She also continually refused to cooperate
January 20, 2009 | Chico-Nazario, J. | When to/not to tilt the scales of justice as a measure of
equity and compassionate social justice
Digester: Arreza, Jose Augusto
SUMMARY: Petitioner Tirazona was dismissed from service by Respondent PET, Inc. for her
willful breach of trust reposed upon her by her employer. The NLRC, CA, and SC all found her
dismissal as justified. In her 2nd Motion for Reconsideration, she prayed for the invalidation of
her dismissal and for the award of separation pay for just causes on the basis of equity. The
SC denied her petition for lack of merit.
DOCTRINE: Separation pay shall be allowed as a measure of social justice only in those
instances where the employee is validly dismissed for causes other than serious misconduct
or those reflecting on his moral character.
FACTS:
 Because of her improper handling of a situation involving a rank-and-file employee,
officers/directors of respondent PET, Inc. called the attention of petitioner Ma. Wenelita
Tirazona, the Administrative Manager of respondent company. Claiming she was denied
due process, she demanded Php 2M indemnity from PET and its officers/directors. She
also admitted to reading a confidential letter addressed to PET officers/directors
containing the legal opinion of the counsel of PET regarding her case. Because of all this,
she was validly terminated on the ground that she willfully breached the trust and
confidence reposed in her by her employed. The SC denied her original petition.
 Apr. 29, 2008: Petitioner moved for reconsideration praying that her dismissal be
declared illegal and that she be awarded separation pay and retirement benefits out of
humanitarian considerations. But the SC denied MR.
 Aug. 21, 2008: Petitioner filed a Motion for Leave to File a Second Motion for
Reconsideration for the reconsideration of the SC resolution raising essentially the same
arguments and prayers.
RULING: Motion for leave to file a second Motion for Reconsideration is DENIED for lack of
merit.
W/N her dismissal was justified – YES
W/N she may be awarded separation pay out of humanitarian considerations – NO
 Next, as re petitioner’s dismissal, the general rule is that an employee who has been
dismissed for any of the just causes enumerated under Art. 282 of the Labor Code is not
entitled to separation pay. Only unjustly dismissed employees are entitled to retirement
benefits and other privileges including reinstatement and backwages.
 An exception, however, is that separation pay or other financial assistance may be
allowed to an employee dismissed for just causes on the basis of equity. This shall be
allowed as a measure of social justice only in those instances where the employee is
validly dismissed for causes other than serious misconduct or those reflecting on his
moral character.
 Given the above, petitioner is not entitled to the award of separation pay for violating
the trust and confidence reposed in her by her employer when she arrogantly demanded
from respondent the exorbitant amount of Php 2M in damages with a threat of a lawsuit
with PET’s investigation of her case.
 Lastly, petitioner tried to persuade the Court to consider in her favor the length of her
service to PET, but in the end, failed. She claimed that she was employed by PET for 26
years. However, it was later on found out that she had only been there for 2 years and 9
months.
 The cases she cited to support her case were misleading as the circumstances were
totally different from hers.
 In employee termination cases, the well-entrenched policy is that no worker shall be
dismissed except for a just or authorized cause provided by law and after due process.
Clearly, dismissals have two facets: first, the legality of the act of dismissal, which
constitutes substantive due process; and second, the legality in the manner of dismissal,
which constitutes procedural due process. Under Article 282(c) of the Labor Code, loss of
trust and confidence is one of the just causes for dismissing an employee. It is an
established principle that loss of confidence must be premised on the fact that the
employee concerned holds a position of trust and confidence. This situation obtains
where a person is entrusted with confidence on delicate matters, such as care and
protection, handling or custody of the employer’s property. But, in order to constitute a
just cause for dismissal, the act complained of must be “work-related” such as would
show the employee concerned to be unfit to continue working for the employer.
Besides, for loss of confidence to be a valid ground for dismissal, such loss of confidence
must arise from particular proven facts.
 —Procedural due process is simply defined as giving an opportunity to be heard before
judgment is rendered. The twin requirements of notice and hearing constitute the
essential elements of due process, and neither of those elements can be eliminated
without running afoul of the constitutional guaranty. The employer must furnish the
employee two written notices before termination may be effected. The first notice
apprises the employee of the particular acts or omissions for which his dismissal is
sought, while the second notice informs the employee of the employer’s decision to
dismiss him.