Del Monte Fresh Produce v. Betonio

Topic: Social Justice
3. Del Monte Fresh Produce v. Betonio

G.R. No. 223485, December 4, 2019
Ponente: Inting, J.
DOCTRINE: Separation pay, or financial assistance may be granted to an employee who was
dismissed for a just cause as a measure of social justice or on grounds of equity.
FACTS: Betonio was employed by DMFPPI as its Manager for Port Operations at Tadeco
Wharf. Later, he was promoted as Senior Manager whose duty is to ensure prompt, efficient,
and accurate loading, and shipment of fruits to the market of DMFII.
HR received complaints about Betonio's inefficiencies in the operation of the port. A formal
investigation was conducted which leads to Betonio being charged with gross and habitual
neglect of duties, and breach of trust and confidence. Betonio was required to explain the 12
infractions he allegedly committed.
The Administrative Committee found Betonio inefficient in the management and operation of the
port, it opined that his lapses were not enough for his dismissal. However, the top management
terminated Betonio's employment on the ground of gross and habitual neglect of duties and
breach of trust and confidence.
Betonio filed a complaint for illegal dismissal with money claims. LA ruled in favor of Betonio.
NLRC reversed the LA’s decision and ruled that Betonio may be dismissed on the ground of
loss of trust and confidence as he was a Senior Manager of DMFPPI. Upon MR, NLRC
reversed its decision. CA affirmed the NLRC’s decision. On appeal before the Supreme Court,
the SC agrees with the finding and conclusion of the NLRC in its first decision that Betonio's
dismissal from employment on the ground of loss of trust and confidence was valid.
ISSUE/S: WON Betonio who was dismissed based on a just cause is entitled to separation pay.
(Yes)
HELD + RATIO: As a general rule, an employee who has been dismissed for any of the just
causes enumerated under Article 297 [282] of the Labor Code is not entitled to separation pay.
However, by way of exception, separation pay, or financial assistance may be granted to an
employee who was dismissed for a just cause as a measure of social justice or on grounds of
equity.
Applying in this case the concept of equity or the principle of social and compassionate justice
to the cause of labor, the Court agrees with the NLRC, 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 at least six months being considered as one whole year. This is in consideration of
the fact that Betonio's dismissal was not due to any act attributable to his moral character.
On loss of trust and confidence, the Supreme Court held that there was concurrence of the two
(2) requisites, namely: (1) the employee concerned must be holding a position of trust and
confidence; and (2) there must be an act that would justify the loss of trust and confidence.
It has long been established that an employer cannot be compelled to retain an employee who
is guilty of acts inimical to his interests, especially when circumstances exist justifying loss of
confidence to the employee. This is more so in cases involving managerial employees or
personnel occupying positions of responsibility, such as Betonio's position.
In breach of trust and confidence, so long as it is shown that there is some basis for
management to lose its trust and confidence, and that the dismissal was not used as an
occasion for abuse, as a subterfuge for causes which are illegal, improper, and unjustified and
is genuine, that is, not a mere afterthought intended to justify an earlier action taken in bad faith,
the free will of management to conduct its own business affairs to achieve its purpose cannot be
denied.
On violation of procedural due process, the Court held that if the dismissal is based on a just
cause, then the noncompliance with the procedural due process should not render the
termination from employment illegal or ineffectual. Instead, the employer must indemnify the
employee in the form of nominal damages. In this case, P30,000.00 was awarded as nominal
damages.

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Topic: Social Justice

3. Del Monte Fresh Produce v. Betonio

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