G.R. No. 223485.

December 4, 2019
Del Monte Fresh Produce (Phil.), Inc. Vs. Reynaldo P. Betonio

Facts:

Betonio is a Senior Manager in DMFPPI. On account of reports and complaints received by the HR
Department with regard his inefficiencies, he was informed that he will be subjected to disciplinary
actions based from gross/ habitual neglect of duties punishable by dismissal. The administrative
committee found Betonio inefficient, however, it opines that his lapses were not enough for dismissal
and recommended that the charges be dismissed. Despite this recommendation, the top management
sent a letter of termination to him on the ground of gross and habitual neglect of duties and breach of
trust and confidence.

Betonio filed a case for illegal dismissal against DMFPPI. The LA ruled in his favor while the NLRC initially
reversed the decision finding that he may be dismissed on the ground of loss of trust and confidence as
he was a Senior Manager. However, upon a motion for reconsideration, the NLRC reversed itself and
reinstated the ruling of the LA that his lapses did not amount to gross and habitual neglect if duty as
contemplated by law. This resolution was affirmed by the CA. Furthermore, the appellate court found
that Betonio was dismissed without due process of law.

Issues:

1. Whether Betonio can be validly dismissed based from his lapses as Senior Manager.
2. Whether he was dismissed without due process of law.
3. Whether he is entitled to damages and/ Separation pay.

Held:

1. Yes. It has long been established that an employer cannot be compelled to retain an employee
who is guilty of acts inimical to its interests, especially when circumstances exists justifying loss
of confidence to the employee. This is more so in cases involving managerial employees of
personnel occupying positions of responsibility, such as Betonio’s position.

As regards managerial employee, the mere existence of a basis for believing that such employee
has breached the trust of his employer suffice for his dismissal.

2. No. Under the internal rules of DMFPPI, the Adminstrative committee will first come up with a
recommendation and if the top management disagrees with the same, they will reconvence to
discuss the decision to be adopted. In Betonio’s case, instead of reconvening after they received
the recommendation of the committee, the Top Management unilaterally proceeded to
terminate his employment. This deprived him of the last opportunity to be heard.
3. Yes. Under prevailing jurisprudence, if the dismissal is based on a just cause, then the non-
compliance to due process will not render the termination from employment illegal or
ineffectual. Instead, the employer will indemnify the employee in the form of nominal damages.
Here the court awards the amount Php 30,000 as nominal damages.

Applying the concept of equity of the principle of social and compassionate justice, the court
also agrees that Betonio is entitled to Separation Pay as a measure of financial assistance –
equivalent to one-month salary for every year of service, a fraction of six months being
considered as one whole year. This is in consideration to the fact that his dismissal is based on
an act attributable to his moral character.