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RepublicofthePhilippines
SUPREMECOURT
Manila
SECONDDIVISION
G.R.No.87673January24,1992
MILAGROSI.DOLORES,petitioner,
vs.
NATIONALLABORRELATIONSCOMMISSION(FIFTHDIVISION),SANMIGUELCORPORATIONand
PETRONILOO.JULIANO,respondents.
G.R.No.88088January24,1992
SANMIGUELCORPORATION,petitioner,
vs.
THEHON.NATIONALLABORRELATIONSCOMMISSIONandMILAGROSI.DOLORES,respondents.
SiguionReyna,Montecillo&OngsiakoforSMCandP.Juliano.

PARAS,J.:
These petitions were consolidated pursuant to the resolution of this Court dated June 5, 1989 (p. 83, Rollo, in
G.R.No.87673).Bothpetitionsseektoannulthedecision*oftheFifthDivisionoftheNationalLaborRelations
Commission (NLRC for brevity) dated January 31, 1989 which affirmed with modification the decision of Labor
ArbiterPacitadelRosariodatedJune30,1988inNLRCNCRCaseNo.242087entitled"MilagrosI.Doloresvs.
SanMiguelCorporationandPetroniloO.Juliano",andthesubsequentresolutionofthesameCommissiondated
March8,1989whichdeniedtherespectiveMotionsforReconsiderationoftheparties.
Theantecedentfactsofthiscaseareasfollows:
MilagrosI.DoloreswashiredbySanMiguelCorporation(hereinafterreferredtoasSMCforbrevity)asChemist
onAugust21,1965.ShewaspromotedtoSeniorChemistonOctober1,1973,thentoSeniorResearchChemist
onDecember1,1976andfinally,toHead,TechnicalInformation,CorporateResearchandDevelopment(CR&
D) on October 29, 1984. During her stint, she received merit increases due to her satisfactory job performance
and the latest salary increase in the amount of P1,285.00 a month was given to her on January, 1986 for her
technical competence and dedication as borne out by her 1985 Performance Appraisal. At the time of her
terminationonDecember1,1986,shewasreceivingamonthlysalaryofP7,715.00.
On September 16, 1986, she filed an application for leave of absence for two (2) months, specifically from
September30toNovember28,1986inordertoattendasix(6)weekcourseinFrenchlanguageattheAlliance
deFranciasedeParis(France)atherownexpense.Pursuanttocompanyrulesandregulations,shesubmitted
two(2)PersonnelLeaveAuthorityformscorrespondingto:(1)14daysvacationfromSeptember30toOctober
16,1986(regularannualleave)and(2)341/2daysleavewithpermissionwithoutpay(LWOP)fromOctober17
toNovember28,1986.ShesubmittedaformalrequesttogetherwiththesaidPersonnelLeaveAuthorityformsto
herimmediatesuperiorDr.PetroniloO.Juliano,Asst.VicePresidentandDirector,CR&D,andfurnishedcopies
ofsaidrequesttoMr.ManuelMendez,VicePresidentandManagerwhoistheimmediatesuperiorofDr.Juliano,
andMr.J.Punsalang,MSE,PersonnelOfficer.
OnSeptember22,1986,Dr.JulianoissuedamemolimitingMs.Dolores'leavetoone(1)calendarmonthdueto
theanticipatedheavyworkloadonthelastquarteroftheyearandreturnedherPersonnelLeaveAuthorityforms
toberevisedaccordingly.Onthesameday,shesubmittedarequestforreconsiderationtogetherwiththetwo(2)
PersonnelLeaveAuthorityformstoDr.Julianobecausethedurationofherintendedstudywouldexceedone(1)
month. On September 30, 1986, Ms. Dolores left for Paris, France without receiving any formal denial to her
requestforreconsiderationandpromptlyreturnedtoManilaonNovember30,1986.

On her first working day on December 2, 1986, Mr. Conradino Santos, Administrative Supervisor, CR & D,
presented to her Dr. Juliano's letter dated November 25, 1986 informing her of her termination effective
December1,1986forallegedcontinuousabsencewithoutpermissionbutwithretirementbenefits.
On February 4, 1987, Milagros Dolores filed a complaint before the NLRC challenging the propriety of her
dismissalwhichwasdocketedasNLRCNCRNo.242087.
TheLaborArbiterfoundthatthecircumstancesofthecasenegatetheexistenceofasufficientjustifiablecause
fordismissalandorderedthepaymentofseparationpayandbackwagesaswellasactualandmoraldamages.
Thedispositiveportionofthedecisionreads:
WHEREFORE,premisesconsidered,respondentSanMiguelCorporationisherebyadjudgedtopay
complainant Milagros Dolores, the total sum of Two Hundred Eight Thousand One Hundred Fifty
SevenPesos(P208,157.00)computedasfollows:
Separationpay(P7,715/mo.x21years/2)=P81,007.00
(Limited)Backwagesfor10mons.=77,150.00
Damages(actualandmoral)=50,000.00

P208,157.00
SOORDERED.
(pp.3819ofRolloinG.R.87673)
BothpartiesappealedtotheNLRCwhichrenderedthenowquestioneddecisionsustainingtheLaborArbiterbut
deletedtheawardofactualandmoraldamages,thedecretalportionofwhichreads:
WHEREFORE, in view of the foregoing, the Decision dated June 30, 1988 is hereby AFFIRMED
exceptingtheawardofactualandmoraldamages.
SOORDERED.
(p.52ofRolloinG.R.No.87673)
BothpartiesfiledamotionforreconsiderationwhichwasdeniedinaresolutiondatedMarch8,1989whichreads:
After due consideration of Complainant's and Respondent's Motions for Reconsideration dated
February17,1989andFebruary27,1989respectively,thisCommission(FifthDivision)resolvedto
denythesameforlackofmerit.
Nofurthermotionforreconsiderationshallbeentertained.(p.53ofRollo,inG.R.87673)
MilagrosI.DoloresreceivedtheMarch8,1989ResolutionoftheNLRConMarch31,1989andfiledthepetition
whichwasdocketedasG.R.No.87673.Ontheotherhand,SMCreceivedtheresolutiononApril18,1989and
likewisefiledapetitionforreviewwhichwasdocketedasG.R.No.88088.Asaforementioned,thisCourt,onJune
5,1989,resolvedtoconsolidatethepetitions(p.83ofRolloinG.R.No.87673).
On July 31, 1989, the Second Division of this Court resolved to dismiss both petitions for failure to sufficiently
showthattherespondentNLRCcommittedgraveabuseofdiscretioninrenderingthequestionedjudgment(p.99
ofRollo,inG.R.No.87673p.179ofRolloinG.R.No.88088).
BothMilagrosI.DoloresandSMCfiledamotionforreconsiderationoftheJuly31,1989resolutionofthisCourt.
OnOctober9,1989,thisCourtgrantedthemotions,reinstatedbothpetitionsandrequiredthepartiestofiletheir
consolidatedreplies(p.150ofRolloinG.R.87673p.180ofRolloinG.R.No.88088).
Thepetitionsweregivenduecourse.
TheissuebeforethisCourtiswhetherornotpublicrespondentNLRCerredinfindingthedismissalofDoloresto
be without basis, in awarding separation pay, in lieu of reinstatement, limited backwages and in deleting the
awardofdamagesinfavorofDolores.
ThefollowingistheLaborArbiterAtty.PacitaG.delRosario'sstudyandevaluationofthiscase:
At this point, deep analysis and consideration of the factors surrounding the complainant's
termination is in order. We are cognizant of the fact that when complainant filed her application for
leave, it was for the purpose of pursuing her studies in the French language a study that would

taketwo(2)months,thusnecessitatinganequivalentperiodofleaveitwasalaudablepurpose,so
to speak a purpose that was beneficial to the respondent company too, for unrefuted is
complainant'sclaimthatherknowledgeoftheFrenchlanguagecameinquitehandyinherworkas
Head,TechnicalInformationCorporateResearch&Developmentandtherespondentcompanyhas
savedsome,asitwassparedfrompayingfortranslationservices.
Unrefutedlikewiseweretheavermentsofthecomplainant:(a)thatthiswasherfirstleaveafterfour
(4) years and as per Personnel Policies and Procedure (which has not been superseded nor
modified)shewasentitledforathree(3)monthleaveifitwasfora"study"purposeand(b)thatshe
trainedatechnicalinformationresearcherforfour(4)monthstotakeoverhertechnicaldutieswhile
shewasonleave,anactionapparentlymade,tolaythegroundworkforherleave.Likewiseisthe
complainant's allegation that after filing her Motion for Reconsideration of the approved onemonth
leave, she failed to get any answer/result on the same, so, went ahead and left for a twomonth
study. Apparently, complainant presumed in good faith, that since there was no direct refusal from
herimmediatesuperiorasregardsherMotionforReconsideration,(althoughrespondentclaimsthat
she received the final refusal annotated on top of her Motion for Reconsideration) she left the
country.Thencomplainantreturnedandstillreportedforworktheverynextday,onlytobefurnished
with the Memorandum of Termination. It should be noted that the said Memorandum is dated
November 25, 1986 and her termination effective December 1, 1986. The haste with which her
dismissalwaseffectedcannotbeoverlookednottospeakoftheuntoldmiseriesandshockitmust
havecausedhereincomplainant.
All these factors, taken in their proper context and buttressed by the denial of the employee's
privilegetoamaximumthreemonthleaveasprovidedforinthePersonnelPoliciesandProcedures
Manual,negatestheexistenceofasufficient,justifiablecausefordismissal.
However,theonlydiscordantfactorofnotetoanotherwiseclearpictureofanarbitraryterminationof
service is the fact that herein complainant is a top managerial official of the company, one of the
several employees on whose shoulders rests the burden of running efficiently and smoothly the
respondent's business. She was the Head of the Technical Information, Corporate Research &
Development. Like any other top managerial employee, she is tasked with a greater sense of
responsibility and concern . . . a higher degree of dedication to the job unlike other ordinary
employees.Inthisaspect,complainantwaswanting.Evenassumingthatrespondentdidnotfurnish
complainantwithacopyoftheannotationdenialontopofherMotionforReconsiderationasattested
bythelackofhersignaturethereon,sheshouldnothavepresumedthisasacquiescencetohersaid
Motion. It behooves upon her, as a top executive, to find out the final action on her Motion for
Reconsiderationandclearwithherimmediatesuperioranyobstacle,immediateorotherwise,which
may possibly occur during her projected twomonth leave. Training for four (4) months of a
replacement is not a sufficient measure. Complainant knew beforehand that she'll be gone for two
monthsandonlyamonth'sleavewasapprovedbyherimmediatesuperior,theleastthatcouldbe
done was to check with her superior (who works in the same department with her) before leaving
(Rollo,G.R.No.87673,pp.3436).
Significantly, from the above findings of the Labor Arbiter herself, it was established that petitioner employee is
one of the top ranking officials of the company, tasked with greater responsibility and a higher degree of
dedicationtothejobunliketheotherordinaryemployeestowhomthefirstgroupoffactorswouldperhapsapply.
Prudence dictates that she should not have taken for granted that her motion for reconsideration would be
favorablyactedupon.Shetookchancesandnowshehasnobodytoblamebutherselffortheconsequences.
Byandlarge,itappearsthatthisisnotasimplecaseofcontributorynegligenceonthepartofpetitionerDolores
butaninfractionoftherulesandregulationsforwhichasatopmanagerialemployeesheshouldbethefirstto
respect.Insteadsheblatantlydisregardedtherules,absentedherselfwithoutpermissionfromhersuperior,which
isavalidgroundfortheimpositionofdisciplinaryactionincludingifwarrantedtheextremepenaltyofdismissal.
Employers, generally, are allowed a wider latitude of discretion in terminating the employment of managerial
personnel which by their nature requires the employer's trust and confidence in a greater degree than in the
ordinaryrankandfileemployees.Consideringthefactthatshewasholdingamanagerialposition,herrefusalto
abidebythelawfulordersofheremployerswouldleadtoerosionoftrustandconfidencereposedonher.Lossof
confidenceisavalidgroundfordismissinganemployeeandproofbeyondreasonabledoubtisnotrequired.All
thatisneededisfortheemployertoestablishasufficientbasisforthedismissalofanemployee.(Cruzv.Medina,
177SCRA565566[1989])
Furthermore,whenanemployeeacceptsapromotiontoamanagerialpositionortoanofficerequiringfulltrust
and confidence she gives up some of the rigid guarantees available to an ordinary worker. Infraction which if
committed by others would be overlooked or condoned or penalties mitigated may be visited with more serious
disciplinaryaction(MetroDrugCorporationvs.NLRC,143SCRA132[July28,1986]).

Dolores'pleathatundercompanyrules,sheisentitledtothreemonthsleavewithoutpayislikewiseunavailingas
suchprivilegeisnotabsolutebutdiscretionary.Inhercasethelimitationtoonemonthleavewasbasedonthe
anticipatedheavyworkloadwhichisunquestionablyavalidground.
ThereisnoquestionthatpetitionerDoloresisguiltyofbreachoftrustandviolationofcompanyrules,thepenalty
of which ranges from reprimand to dismissal, depending on the gravity of the offense. (Manila Electric Co. v.
NLRC,175SCRA277[1989])
Nonetheless,consideringpetitionerDolores'21yearsofservicewithSanMiguelCorp.anditappearingthatthis
isherfirstoffensewhichincidentallywasbeneficialtotheemployerforunrefutedisherclaimthatherstudyofthe
Frenchlanguagesparedthecompanyfrompayingfortranslationservices,itappearsthatthepenaltyofdismissal
wouldbetooharshunderthecircumstances.ThisCourthasheldtimeandagain,inanumberofdecisions,that
notwithstandingtheexistenceofavalidcausefordismissal,suchasbreachoftrustbyanemployee,nevertheless
dismissalshouldnotbeimposedasitistoosevereapenaltyifthelatterhasbeenemployedforaconsiderable
lengthoftimeintheserviceofheremployer(ManilaElectricCo.v.NLRC,supra).Moreequitablytherefore,she
shouldbegrantedreinstatementbutwithoutdamages,consideringthegoodfaithoftheemployerindismissing
theemployee(ibid.)otherwise,itwouldhavetheeffectofrewardingratherthanpunishingtheerringemployee
forheroffense.
Neither can San Miguel Corp. be liable for actual and moral damages in the absence of proof that there was
maliceorbadfaithonthepartoftheformerinterminatingtheservicesofthelatter(Suarisv.BPI,176SCRA689
[1989]).
Asearlierdiscussed,severaltelexmessagesandlettersweresenttoheraddressesbothhereinthePhilippines
and abroad as early as October 21, 1986 warning her that her permission for leave had expired. It is indeed
difficulttobelievethatshedidnotreceiveanyofthesenotices.Bethatasitmay,itwillberecalledthatsheleftfor
Francethinkingthatpermissionhadbeengrantedfortwomonths.
PREMISES CONSIDERED, the assailed decision of the National Labor Relations Commission is MODIFIED by
allowingreinstatementwithbackwagesfortwoyearsbutwithoutdamages.
SOORDERED.
MelencioHerrera,RegaladoandNocon,JJ.,concur.
Padilla,J.,tooknopart.

Footnotes
*RenderedbyPresidingCommissionerLourdesC.JavierandCommissionerDaniloS.Lorredo.
TheLawphilProjectArellanoLawFoundation