478 Phil. 830
SANDOVAL-GUTIERREZ, J.:
“Verily, the above facts clearly established that complainant indeed violated the company’s Code of Employee Discipline and committed serious misconduct in the performance of his duties and functions which acts are just causes for the dismissal of an employee (Art. 282 of the Labor Code). Complainant, as inspector was precisely tasked to safeguard the interest of the company and was expected to render truthful reports of violations committed by customers of respondent company. When complainant fabricated his reports to favor his friends and acquaintances and worse, to profit out of his irregularities, respondent MERALCO had reasons to terminate his employment. Similarly, respondent company has ample reason to distrust complainant which is another just and valid ground for his dismissal. (Art. 282 of the Labor Code; Filipro, Inc. vs. NLRC, G.R. Nos. L-70546, October 16, 1986 [145 SCRA 123, 131-132]).On appeal by petitioner, the National Labor Relations Commission (NLRC) First Division promulgated a Decision dated August 18, 1994 reversing the Arbiter’s Decision and ordering respondent to reinstate petitioner to his former position and pay him backwages, thus:
On the third issue, we find the presence of due process prior to the dismissal of herein complainant. The facts and circumstances support this finding.
Firstly, complainant was informed of the charges against him and the nature of the irregularities he committed. (Exh. ‘7’).
Secondly, there was investigation conducted and complainant participated in the process. In fact, his request for postponement of the investigation was granted and was reset to September 21, 1987 instead of September 14, 1987. Complainant’s testimony before Mr. Sacdalan confirmed that he was given the full opportunity to explain his side. He (complainant) was able to raise his own version on every incident alluded to in the declaration against him and refute point by point the testimonies of members of Squad 12 (Exh. 7-C). These facts only prove that complainant was informed or he was able to examine the declarations of witnesses against him.
Furthermore, complainant’s request for re-investigation was favorably acted upon by respondent wherein he was able to submit statements of three customers of the company (Exh. ‘11’ and ‘12’).
Based on the foregoing facts, it is abundantly clear that complainant was accorded the fullest opportunity to be heard.x x x
WHEREFORE, PREMISES CONSIDERED, let the instant case be, as it is hereby ordered dismissed for lack of merit.
SO ORDERED.”
“WHEREFORE, the appealed decision is hereby set aside. Finding that the dismissal of complainant is not supported by any just cause, respondent is hereby directed to reinstate complainant to the position he held at the time of his dismissal, without loss of seniority rights and benefits, and to pay him backwages computed from the time his wages were withheld up to the time he is actually reinstated.Respondent then filed a motion for reconsideration. On January 11, 1995, the NLRC First Division rendered a Decision reconsidering its earlier Decision and dismissing petitioner’s complaint for lack of merit, thus:
SO ORDERED.”
“WHEREFORE, our August 18, 1994 decision is reconsidered and set aside. The August 2, 1993 decision of Labor Arbiter Numeriano D. Villena is upheld and the complaint below (for illegal dismissal and related claims) is hereby dismissed for lack of merit.This time, it was petitioner who filed a motion for reconsideration. Meantime, he also filed a motion to inhibit the members of the First Division. Subsequently, the case was re-raffled to the NLRC Second Division.
SO ORDERED.”
“WHEREFORE, in view of the above, we hereby set aside our decision promulgated on January 11, 1995 and reinstate our earlier decision of August 18, 1994 finding complainant’s dismissal to be illegal. Correspondingly, we hereby order respondent to reinstate complainant to his former position without backwages.As a consequence, respondent, on July 27, 1999, filed with the Court of Appeals a petition for certiorari (with prayer for the issuance of a temporary restraining order and/or writ of preliminary injunction) assailing the Decision dated April 22, 1999 rendered by the NLRC.
SO ORDERED.”
“The petition is impressed with merit.Petitioner filed a motion for reconsideration, but was denied by the Appellate Court in a Resolution dated May 3, 2001.x x x
In the case at bar, we uphold the Labor Arbiter when he stated that on the basis of the facts of the case ‘it is abundantly clear that complainant was accorded the fullest opportunity to be heard.’
As to the issue of whether or not there is just cause to terminate private respondent, x x x:x x x
In this case, petitioner dismissed private respondent for serious misconduct and willful breach of trust. As correctly observed by the First Division:‘Undoubtedly, on both charges of falsely reporting major violation of customers to earn thirty (30) minute overtime pay for every reported major violation, and of falsifying a report to favor a customer, the record is full of substantial evidence establishing complainant’s guilt thereon.’x x x
Private respondent was not a mere rank-and-file employee; he was an Assistant Leader of Squad 12 of petitioner’s Inspection Division. As such, he was principally tasked with the duty of inspecting electric meters together with a team of inspectors for the purpose of ensuring the accurate recording of electric consumption and to apprehend customers who attempt to reduce their recorded electric consumption through the use of insidious schemes or devices. The members of the squad are required to report said violations committed by the customers. All reports have to be checked by the squad leader or assistant squad leader before they are submitted to the area coordinator. Given these duties, the position of an inspector is imbued with a high degree of honesty. Considering that private respondent was occupying the position of assistant squad leader, the degree of honesty required of private respondent is likewise of a degree higher than that demanded of an ordinary inspector.
On several occasions, private respondent instructed his squad members to prepare reports indicating therein a violation where there is none, or one favoring a customer. These infractions are sufficient causes to erode the trust and confidence petitioner reposed on private respondent. Since petitioner has ample reason to distrust him, we cannot deny its authority to dismiss him.x x x
WHEREFORE, premises considered, the Decision of public respondent NLRC (Second Division) is hereby REVERSED and the Decision dated January 11, 1995 of the First Division is REINSTATED.
SO ORDERED.”
“SECTION 6. NATURE OF PROCEEDINGS. – The proceedings before a Labor Arbiter shall be non-litigious in nature. Subject to the requirements of due process, the technicalities of law and procedure and the rules obtaining in the court of law shall not strictly apply thereto. The Labor Arbiter may avail himself of all reasonable means to ascertain the facts of the controversy speedily, including ocular inspection and examination of well-informed persons.”Clearly, the Appellate Court, in rejecting petitioner’s claim that he was deprived of his right to cross-examine the three witnesses, did not err as it was not required to apply strictly the Rules of Evidence.[4] At any rate, respondent had valid reasons why it did not present those three witnesses during the proceedings before the Labor Arbiter, thus:
“x x x. For the information of the Honorable Commission, Carlos Cruz was not presented during the trial because he met an untimely death in the course thereof. On the other hand, Edwin Dancel resigned from the Company and then migrated to the United States. With respect to Danilo Teodoro, he availed of the benefits under the Special Separation Program of the company and since then, his whereabouts remained unknown. x x x.”[5]This case is analogous to Philippine Airlines, Inc. vs. Tongson[6] where we emphasized the principle that technical rules of evidence are invariably relaxed when applied to proceedings before the Labor Arbiter and the NLRC, thus:
“In fact, the hearing before these agencies does not connote full adversarial proceedings. What is required, among others, is that every litigant is given reasonable opportunity to appear and defend his right, introduce witnesses and relevant evidence in his favor.”Relative to the second assigned error, we find that there is substantial evidence to support the finding of the Court of Appeals that petitioner’s dismissal from the service is valid. Well-entrenched is the rule that substantial proof, and not clear and convincing evidence or proof beyond reasonable doubt, is sufficient as basis for the imposition of any disciplinary action upon the employee. The standard of substantial evidence is satisfied where the employer, as in this case, has reasonable ground to believe that the employee is responsible for the misconduct and his participation therein renders him unworthy of trust and confidence demanded by his position.[7] That petitioner violated respondent MERALCO’s Code of Employee Discipline and committed serious misconduct in the performance of his duties have been proved by the affidavits of petitioner’s own subordinates in Squad 12 of which he was the Assistant Squad Leader. Moreover, respondent had lost his trust and confidence in petitioner. Under Article 282 of the Labor Code, as amended, these are just causes for his dismissal from the service.
“An employee’s length of service with the company even aggravates his offense. He should have been more loyal to petitioner company from which he has derived his family bread and butter for seventeen (17) years.”WHEREFORE, the petition is DENIED. The assailed Decision dated January 17, 2001 and Resolution dated May 3, 2001 of the Court of Appeals in CA-G.R. SP No. 53987 are hereby AFFIRMED.
“x x x. The argument that the affidavit is hearsay because the affiants were not presented for cross-examination is not persuasive because the rules of evidence are not strictly observed in proceedings before administrative bodies like the NLRC, where decisions may be reached on the basis of position papers only. x x x”[5] See Annex “F” of the Petition for Review, Rollo at 86.