BVR & ASSOCIATES
  • HOME
  • OUR SERVICES
    • TAX COMPLIANCE & ACCOUNTING
    • BUSINESS REGISTRATION
    • BACK OFFICE SUPPORT SERVICES
    • BUSINESS PROCESS OUTSOURCING
    • PAYROLL SERVICES
    • VIRTUAL ASSISTANT
    • FINANCIAL PLANNING
    • ASSET MANAGEMENT
    • HUMAN RESOURCES
  • About
  • ARTICLES
    • TESTIMONIALS
    • BLOG
  • CONTACT US
  • SERVICES

a collections of case digests and laws that can help aspiring law students to become a lawyer


PCIB vs. Abad, February 28, 2005

7/9/2022

0 Comments

 
Facts:
Anastacio Abad was the Senior Assistant Manager of PCIB, Tacloban City, when he was dismissed from work on Aug. 3, 1998. On Mar. 13, 1998, Abad received a memorandum from PCIB concerning the irregular clearing of PNB-Naval Check of Sixtu Chu, a valued client. Abad denied that he instructed his subordinates to validate the out-of-town checks of Chu presented for deposit or encashment as local clearing checks. During the investigation conducted by the PCIB, several transactions violative of the Bank’s Policies and Rules and Regulations were uncovered by the Fact-Finding Committee. Consequently, Lorenzo Cervantes, Fact-Finding officer, issued another memorandum to Abad asking the latter to explain the newly discovered irregularities. Not satisfied with the explanations of Abad, PCIB served another memorandum, terminating his employment effective immediately upon receipt. Abad instituted a Complaint for Illegal dismissal against PCIB. The LA ruled that the dismissal was legal. However, it directed PCIB to pay Abad the amount of P10,000.00 for its failure to comply with the requirements of due process.
 
In appeal, NLRC issued a decision affirming the decision of LA with modification ordering PCIB to pay Abad the amount of P21,209.31 representing his 13th month pay for 1998. The CA also sustained the validity of the dismissal but modified the award to separation pay equivalent to ½ month pay for every year of service in accordance with social justice policy in favor of the working class.

Issue:
Is an employee entitled to separation pay even if legally dismissed.

​Held:
Yes. An employee dismissed for any of just causes enumerated under Art. 282 of the LC is not, as a rule, entitled to separation pay. As an exception, allowing the grant of separation pay or some other financial assistance to an employee dismissed for just causes is based on equity. The Court has granted separation pay as a measure of social justice even when an employee has been validly dismissed, as long as the dismissal was not due to serious misconduct or reflective of personal integrity or morality. The dismissal in the present case was due to loss of trust and confidence, not serious misconduct. As facts indicate, his actions were motivated by a desire to accommodate a valued client of the bank.
0 Comments



Leave a Reply.

    Archives

    August 2022
    July 2022
    June 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    July 2021
    June 2021
    May 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    April 2020
    March 2020
    October 2019
    September 2019
    August 2019
    March 2018

    Categories

    All
    Agrarian Law
    Articles-of-incorporation
    By-laws
    Constitutional Law
    Criminal Law
    Law
    Persons And Family Relations

    RSS Feed

Powered by Create your own unique website with customizable templates.
  • HOME
  • OUR SERVICES
    • TAX COMPLIANCE & ACCOUNTING
    • BUSINESS REGISTRATION
    • BACK OFFICE SUPPORT SERVICES
    • BUSINESS PROCESS OUTSOURCING
    • PAYROLL SERVICES
    • VIRTUAL ASSISTANT
    • FINANCIAL PLANNING
    • ASSET MANAGEMENT
    • HUMAN RESOURCES
  • About
  • ARTICLES
    • TESTIMONIALS
    • BLOG
  • CONTACT US
  • SERVICES