FIRESTONE TIRE AND RUBBER COMPANY OF THE PHILIPPINES

VS.
CARLOS LARIOSA AND NATIONAL LABOR RELATIONS COMMISION

G.R. No. 70479, February 27, 1987

Carlos Lariosa sued Firestone Tire and Rubber Co. before the Labor and Employment for
illegal dismissal, the Labor arbiter in his decision found Lariosa dismissal justified. Lariosa appeal
to the National labor Relations Commission on June 7, 1984 and the NLRC reverse the decision
of the Labor arbiter on December 28, 1984. Firestone Tire and Rubber Company then appeal
the decision of the NLRC to the Supreme Court.

Carlos Lariosa, worked in Firestone Tire and Rubber Company for 11 years as a
tire builder. On July 27, 1983, on his way out the company premises, he was frisked by security
Lizo and Olvez. They found 16 wool flannel swabs inside his bag tucked underneath his soiled
clothes, all belonging to the company. He was then dismissed effective on August 2, 1983
through letter of Ms. Villavicencio, company industrial manager, based on “stealing company
property and loss of trust”. Lariosa on the other hand filed with the Labor and Employment a
case for illegal dismissal. The Labor Arbiter found Laniosa’s dismissal justified but was reversed
by the NLRC on appeal and held that Lianosa be reinstated but without backwages.

Whether the act of Firestone Tire and Rubber Company was within the realm on laws on
Protection to Labor Law.

As a tire builder, Lariosa was entrusted with certain materials for use in his job. On the
day in question, he was given two bundles of wool flannel swabs [ten pieces per bundle] for
cleaning disks. He used four swabs from one pack and kept the rest [sixteen pieces] in his "blue
travelling bag which is not the usual practice.

Thus, under Article 283 of the Labor Code, an employer may terminate an employment
for "serious misconduct" or for "fraud or willful breach by the employee of the trust reposed in
him by his employer or representative."

If there is sufficient evidence that an employee has been guilty of a breach of trust or
that his employer has ample reasons to distrust him, the labor tribunal cannot justly deny to
the employer the authority to dismiss such an employee.

The Supreme Court Second Division reverse the December 28, 1984 decision of the
NLRC and grant the petition of Firestone Tire and Rubber Company. But the Firestone is
directed to pay its dismissed worker Carlos Lariosa the Separation pay to which he may be
entitled under the law of any CBA or company rules or practice which ever is higher.