Central Pangasinan Electric Cooperative vs.

Macaraeg
G.R. No. 145800, January 22, 2003
Puno, J.

Facts:

The petitioner is the employer of the respondents Macaraeg and De Vera. Both respondents were
dismissed by the petitioner due to Serious Misconduct and breach of trust and confidence reposed on
them by management. De Vera accommodated and encased 211 cross checks issued by her sister,
Estrada amounting to P6,945,128.95. The petitioner found about such acts of the respondent when the
Finance Dept noticed that several checks were returned due to insufficient funds. Macaraeg as superior
of De Vera was made liable since she consented to the said acts committed by De Vera. Petitioner
placed respondents under preventive suspension and asked them to explain within 48 hours why they
misappropriated funds. Respondents denied the misappropriation. A hearing was scheduled in which
Estrada Admitted that she cashed the checks because it was from her sister. Upon submission of Atty.
Fernandez of his findings, the general manager of the petitioner issued respondents notice of
termination. Respondents aver that the termination is violative of their CBA and they were not validly
dismissed. The case was brought to a voluntary arbitrator rendering a decision in favor of the
respondents.

Issue:

Whether or not the respondents were validly dismissed

Ruling:

The court held that they were validly dismissed. The court stated that the issue being raised by the
respondents that the case should pass through a grievance machinery first is moot and academic since
they willingly participated with the voluntary arbitration. On the issue of the dismissal, the court stated
that in order for a dismissal to be valid there must exist (1) a just or authorized cause and (2) the
employee must be afforded due process. The court held that both were complied with by the petitioner
since the labor code allows and employer to dismiss employees for willful breach of trust or loss of
confidence, and that the respondents were provided with a time and venue to defend and explain
themselves.