Cadiz v CA
GR No. 153784 October 25, 2005
FACTS:
Cadiz and Gloria were employees of Philippine Commercial International Bank. They verbally adxmitted their participation in a scheme to divert funds intended for other accounts. After investigation, a show-cause memoranda were served on them requiring them to explain why no disciplinary action should be taken against them. Not satisfied with their explanation, the bank dismissed the petitioners.
Petitioners then lodged a complaint for illegal dismissal before the Labor Arbiter.
DECISION OF LOWER COURTS:
(1) Labor Arbiter: ordered reinstatement and payment of backwages since the petitioners were adjudged to be illegally dismissed
Also held that the petitioner’s acts in frequently coding several deposit slips as “1511” (immediately withdrawable) are mere procedural inadequacies, with the fault attributable to respondent bank for its laxity
(2) NLRC: departed from LA and concluded that petitioners were dismissed for just cause
(3) CA: affirmed NLRC.
Hence, the current petition for review on certiorari. ISSUE: Whether petitioners were validly dismissed
RULING:
YES, they were validly dismissed.
Miscoding of deposit slips cannot be downplayed as “mere procedural inadequacies”.
Whatever liability or responsibility was expected of the bank stands as an issue separate from the liability of the recreant bank employees. Even assuming that the bank observed less than ideal controls over the security of its operations, such laxity does not serve as carte blanche signal for the bank employees to take advantage of safeguard control lapses and perpetrate chicanery on their employer
Also, respondent bank complied with the two-notice rule prescribed by the Labor Code.
Even if respondent bank did not suffer a pecuniary loss, petitioners are not relieved from liability. Lack of material or pecuniary damages would not in any way mitigate a person’s liability nor obliterate the loss of trust and confidence.
Banks must not only exercise “high standards of integrity and performance”, it must also ensure that its employees do likewise because this is the only way to ensure that a bank will comply with its fiduciary duty.
GR No. 153784 October 25, 2005
FACTS:
Cadiz and Gloria were employees of Philippine Commercial International Bank. They verbally adxmitted their participation in a scheme to divert funds intended for other accounts. After investigation, a show-cause memoranda were served on them requiring them to explain why no disciplinary action should be taken against them. Not satisfied with their explanation, the bank dismissed the petitioners.
Petitioners then lodged a complaint for illegal dismissal before the Labor Arbiter.
DECISION OF LOWER COURTS:
(1) Labor Arbiter: ordered reinstatement and payment of backwages since the petitioners were adjudged to be illegally dismissed
Also held that the petitioner’s acts in frequently coding several deposit slips as “1511” (immediately withdrawable) are mere procedural inadequacies, with the fault attributable to respondent bank for its laxity
(2) NLRC: departed from LA and concluded that petitioners were dismissed for just cause
(3) CA: affirmed NLRC.
Hence, the current petition for review on certiorari. ISSUE: Whether petitioners were validly dismissed
RULING:
YES, they were validly dismissed.
Miscoding of deposit slips cannot be downplayed as “mere procedural inadequacies”.
Whatever liability or responsibility was expected of the bank stands as an issue separate from the liability of the recreant bank employees. Even assuming that the bank observed less than ideal controls over the security of its operations, such laxity does not serve as carte blanche signal for the bank employees to take advantage of safeguard control lapses and perpetrate chicanery on their employer
Also, respondent bank complied with the two-notice rule prescribed by the Labor Code.
Even if respondent bank did not suffer a pecuniary loss, petitioners are not relieved from liability. Lack of material or pecuniary damages would not in any way mitigate a person’s liability nor obliterate the loss of trust and confidence.
Banks must not only exercise “high standards of integrity and performance”, it must also ensure that its employees do likewise because this is the only way to ensure that a bank will comply with its fiduciary duty.
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