Daabay V Coca-Cola

JEROME M. DAABAY, petitoner v.
COCA-COLA Labor Arbiter or Regional Arbitration Branch of origin for

BOTTLERS PHILS., INC., respondent computation of retirement benefits.
G.R. No. 199890 | August 19, 2013
ISSUE
FACTS Whether Daabay is entitled to the retirement benefits
Petitioner Jerome Daabay was employed as Sales awarded by NLRC, despite his dismissal for a just
Logistics Checker with Coca-Cola Bottlers Phils., Inc. cause.
until his termination in June 2005, following receipt of
information that he was part of a conspiracy that allowed RULING
the pilferage of company property. The losses to the No. Being intended as a mere measure of equity and
company comprised of cases of assorted softdrinks, social justice, the NLRC’s award was then akin to a
empty bottles, missing shells and missing pallets valued financial assistance or separation pay that is granted
at P20,860,913.00. to a dismissed employee notwithstanding the legality of
his dismissal. Jurisprudence on such financial
After requiring Daabay to explain in writing his assistance and separation pay then equally apply to this
participation in the scheme, followed by a formal case. The Court has ruled, time and again, that financial
investigation, Coca-Cola served upon Daabay a Notice assistance, or whatever name it is called, as a
of Termination that cited pilferage, serious misconduct measure of social justice is allowed only in
and loss of trust and confidence as grounds. instances where the employee is validly dismissed
for causes other than serious misconduct or those
Daabay filed a complaint for illegal dismissal, illegal reflecting on his moral character. As explained in
suspension, unfair labor practice and monetary claims PLDT v NLRC: "[S]eparation pay shall be allowed as a
against Coca-Cola Bottlers Phils., Inc. and three officers measure of social justice only in those instances where
of the company. the employee is validly dismissed for causes other than
serious misconduct or those reflecting on his moral
On April 18, 2008. Executive Labor Arbiter Noel character. Where the reason for the valid dismissal is,
Magbanua rendered a decision in favor of Daabay. He for example, habitual intoxication or an offense involving
ruled that Daabay was illegally dismissed because his moral turpitude, like theft or illicit sexual relations with a
participation in the alleged conspiracy was not proved by fellow worker, the employer may not be required to give
substantial evidence. He further ordered the payment to the dismissed employee separation pay, or financial
Daabay of backwages and separation pay (1 month for assistance, or whatever other name it is called, on the
every year of service) or retirement benefits, as may be ground of social justice."
applicable.
A contrary rule would have the effect of rewarding rather
Upon Coca-Cola et al's appeal with the NLRC, the than punishing the rring employee of his offense. If the
NLRC reversed the finding of illegal dismissal. It held employee who steals from the company is granted
that there was "reasonable and well-founded basis to separation pay even as he is validly dismissed, it is not
dismiss Daabay, not only for serious misconduct, but unlikely that he will commit a similar offense in his next
also for breach of trust or loss of confidence arising from employment because he thinks he can expect a like
such company losses". It ruled that Daabay's leniency if he is again found out. This kind of misplaced
participation in the conspiracy was sufficiently compassion is not going to do labor in general any good
established, evidenced by his signature in several as it will encourage the infiltration of its ranks by those
documents that made the fraudulent scheme possible, who do not deserve the protection and concern of the
as well as in his failure to detect the pilferage, Constitution.
considering that such is necessarily connected with his
duties and functions. Despite the ruling on the legality Considering that Daabay was declared by the NLRC to
of the dismissal, however, the NLRC awarded have been lawfully dismissed by Coca-Cola on the
retirement benefits in favor of Daabay. grounds of serious misconduct, breach of trust and loss
of confidence, the award based on equity is
Coca-Cola filed a partial motion for reconsideration to unwarranted.
assail the award of retirement benefits. NLRC denied the
MR, explaining that "there was a need to humanize THE PETITION IS DENIED. CA DECISION IS
the severe effects of dismissal" and "tilt the scales AFFIRMED.
of justice in favor of labor as a measure of equity
and compassionate social justice."
Coca-Cola appealed to the CA. The CA agreed that the

award of retirement benefits lacked basis, considering
that Daabay was dismissed for just cause. It granted
Coca-Cola's petition and deleted the portion of the
NLRC resolution remanding the case to the Executive

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JEROME M. DAABAY, petitoner v.

COCA-COLA Labor Arbiter or Regional Arbitration Branch of origin for

Coca-Cola appealed to the CA. The CA agreed that the

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