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Board of Trustees vs. Velasco, G.R. No.

170436, February 2, 2011 (Kinds of AdministrativeRules


and Regulations

FACTS

This is a petition for review of the 24 September 2004 Decision and the 7 October 2005 Order
of the Regional Trial Court of Manila, Branch 19 (trial court), in Civil Case No. 03-108389. In its
24 September 2004 Decision, the trial court granted respondents Albert M. Velasco and Mario I.
Molina’s (respondents) petition for prohibition. In its 7 October 2005 Order, the trial court
denied petitioners Board of Trustees of the Government Service Insurance System (GSIS) and
Winston F. Garcia’s (petitioners) motion for reconsideration.

On 23 May 2002, petitioners charged respondents administratively with grave misconduct and
placed them under preventive suspension for 90 days. Respondents were charged for their
alleged participation in the demonstration held by some GSIS employees denouncing the
alleged corruption in the GSIS and calling for the ouster of its president and general manager,
petitioner Winston F. Garcia.

Respondents were placed under preventive suspension for 90 days beginning on 23 May
2002.1avvphi1 Their preventive suspension ended on 21 August 2002. Therefore, after serving
the period of their preventive suspension and without the administrative case being finally
resolved, respondents should have been reinstated and, after serving the same number of days
of their suspension, entitled to the grant of step increment.

The pertinent provision of Resolution No. 372 provides:

The step increment adjustment of an employee who is on preventive suspension shall be


withheld until such time that a decision on the case has been rendered.

The trial court was correct in declaring that respondents had the right to be presumed innocent
until proven guilty. This means that an employee who has a pending administrative case filed
against him is given the benefit of the doubt and is considered innocent until the contrary is
proven.

ISSUE

Do government employees under administrative investigation entitled to step increment?

RULING

The Court DECLAREs the assailed provisions on step increment in GSIS Board Resolution Nos.
197 and 372 VOID.
Social legislation like the circular on the grant of step increment, being remedial in character,
should be liberally construed and administered in favor of the persons to be benefited. The
liberal approach aims to achieve humanitarian purposes of the law in order that the efficiency,
security and well-being of government employees may be enhanced.

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