Firing company executives and managers for fraud and breach of trust

The Supreme Court has been very strict when it comes to dishonesty especially when committed by corporate executives, managers, supervisors and highly trusted confidential employees. One Supreme Court Justice even called dishonest personnel as “scoundrels” and: “rascals” who have proven themselves unworthy of the positions they occupy.

Corruption is not the monopoly of the government officials. There are many acts of frauds, defalcation, malversation, forgery and falsification committed by private corporate executives and managerial personnel. In the case of San Miguel Corporation vs. RAG (we hide her identity to protect her honor) in Case number GR 200815, decided on August 24, 2020, a lady manager was fired by SMC due to a written report from a contractor pointing to her as demanding kickbacks and accepting bribes  for every billing that she would approve and process. Her case of illegal dismissal was dismissed by the Labor Arbiter in 2004. The NLRC took pity on her and reversed the Arbiter in 2008. The Court of Appeals affirmed the NLRC. But the highest court reversed the appellate court and held that she deserved termination due to her blatant dishonesty. She lost all her retirement benefits for working in San Miguel since 1986.

The case of Apo Cement vs. ZEB (GR 176671, June 26, 2012, a high ranking manager based in Naga City (Cebu) was fired for demanding and accepting kickbacks from suppliers. In the case of Wesleyan University vs. NR (GR 208321, July 30, 2014), a university in Nueva Ecija fired its University Treasurer for alleged multiple irregularities, including handling of funds and multiple financial transactions, including millions of unliquidated cash advances (P9.7 million), unsound accounting practices and many alleged questionable transactions. In YTB vs. Urios College (GR 199066, June 7, 2017), the Supreme Court affirmed the dismissal of a School Comptroller for an act of conflict of interests when the comptroller allegedly gave salary increases to himself. In Baguio Central University vs. I G (GR 188267, December 2, 2013) a Dean was fired because he put up a training and review center in direct competition with his employer university.

 In the case of CVS vs. San Miguel Corporation, ( GR 149416, March 14, 2003), a highly paid and long term Finance Director was fired by management for her series of irregular financial transactions. She used to go to the sales outlets of San Miguel which are subject to her moral ascendancy as the Corporate Finance Director, and she would get cash and exchange them with personal checks, many of which bounced due to lack of funds. The Supreme Court dismissed her appeal and ruled that SMC was right in firing her. In Pepsi Cola vs. NLRC, et al (GR 106831, May 6, 1997), a high ranking manager committed a fraudulent transaction involving Pepsi products and a big sum of money. He was fired and the Court found a basis to discipline him.

In the DDS vs. Metro Bank a retireable branch manager in Davao City lost more than P10 million in retirement benefits. He was fired in his last few months before retirement due to the pernicious banking practice of “kiting” to accommodate some friends. He did not derive any monetary benefit but he merely helped some businessmen in Davao who were short in cash. He worked so hard for the bank and stayed there as his only employer since college graduation. His career ended in tragedy just because he had some friends in need who took advantage of his kind disposition. In another Metro Bank case, AAA vs. Metro Bank (GR 170542-43, December 13, 2010) a regional officer based in Cebu was fired because he organized an employees’ coop that engaged in lending money in competition with Metro Bank operations. They used his employer’s bank premises, facilities and company time in transacting coop activities. He was fired and perhaps he deserved it.

In Herma Shipping and Transport Corporation vs. C C, (GR 244144 January 27, 2020) the company fired a ranking employee of an ocean-going vessel for stealing crude oil from his own vessel where he worked. In St. Luke’s Medical Center vs. MTVS (GR 212054, March 11, 2015), the hospital fired a nurse for attempting to take home some hospital supplies. In Manila Pen Hotel vs. EAJ (GR 225586, July 29, 2019), a Manila Pen waiter was fired for pocketing a mere P6,500. Dishonesty, even involving little money, is always a legal ground to dismiss.

Well, that is the tragedy in life. If you are a small fry caught with a small dishonesty, for sure, you will be meted the harshest penalty. But if you were a senator or congressman, charged with pocketing multi millions, you may even be reelected overwhelmingly by a very forgiving people. Even ex-convicts can be elected to high places. But if you are an unknown entity, be prepared to be crucified by a self-righteous society.