pnoc-edc vs. nlrc

PNOC-EDC v NLRC

Facts:

Danilo Mercado, an employee of the Philippine National Oil Company- Energy Development Corporation, was dismissed on the grounds of serious acts of dishonesty and violation of company rules and regulations allegedly committed as follows:

1. Withdrew P1680.00 from company funds, appropriated P680.00 for personal use and paid the nipa supplier P1000.00.
2. Withdrew P28.66 as payment for the fabrication of rubber stamp but appropriated the P8.66 for personal use.
3. Absence without leave and without proper turn-over thus disrupting and delaying company work activities.
4. Vacation leave without prior leave.

Mercado filed a complaint against PNOC-EDC before the NLRC Regional Arbitration Branch. After considerations of position papers presented by both parties, the labor arbiter ruled in favour of Mercado.

Issues:

1. Whether or not matters of employment of PNOC-EDC is within the jurisdiction of the labor arbiter and the NLRC.

2. Whether or not the labor arbiter and the NLRC are justified in ordering the reinstatement of the private respondent, payment of his savings, 13th month pay, and payment of damages as well as attorney’s fees.

Held:

The High Court affirmed the resolution of the respondent NLRC with modification: reducing moral damages to P10000 and exemplary damages to P5000.

1. The test whether a government-owned or controlled corporation is subject to Civil Service Law is the manner of its creation. Those created by special charter are subject to its provision while those created under General Corporation Law are not within its coverage. The PNOC-EDC, having been incorporated under General Corporation Law, is subject to the provisions of the Labor Law.

2. PNOC-EDC’s accusations are not supported by evidence. Loss of trust or breach of confidence is a valid ground for dismissing an employee, but such loss or breach must have some basis.

fr. atty nas^^