CIVIL SERVICE COMMISSION V Cruz

CIVIL SERVICE COMMISSION v. RICHARD G. CRUZ G.R. No. 187858, 09 August 2011, EN BANC (Brion, J.
The respondent, Storekeeper A of the City of Malolos Water District (CMWD), was charged with grave
misconduct and dishonesty by CMWD General Manager (GM) Nicasio Reyes. He allegedly uttered a
false, malicious and damaging statement (Masasamang tao ang mga BOD at General Manager) against
GM Reyes and the rest of the CMWD Board of Directors (Board); four of the respondent subordinates
allegedly witnessed the utterance. The dishonesty charge, in turn, stemmed from the respondent act of
claiming overtime pay despite his failure to log in and out in the computerized daily time record for
three working days. The respondent denied the charges against him. On the charge of grave misconduct,
he stressed that three of the four witnesses already retracted their statements against him. On the
charge of dishonesty, he asserted that he never failed to log in and log out. He reasoned that the lack of
record was caused by technical computer problems. The respondent submitted documents showing that
he rendered overtime work on the three days that the CMWD questioned. GM Reyes preventively
suspended the respondent for 15 days. Before the expiration of his preventive suspension, however, GM
Reyes, with the approval of the CMWD Board, found the respondent guilty of grave misconduct and
dishonesty, and dismissed him from the service. The CSC found no factual basis to support the charges
of grave misconduct and dishonesty. The CSC, however, found the respondent liable for violation of
reasonable office rules for his failure to log in and log out. It imposed on him the penalty of reprimand
but did not order the payment of back salaries. Both the CMWD and the respondent elevated the CSC
ruling to the CA via separate petitions for review under Rule 43 of the Rules of Court. The CA dismissed
the CMWD petition and this ruling has lapsed to finality. Hence, the issue of reinstatement is now a
settled matter. The CA ruled in the respondent favor on the issue of back salaries. ISSUE: Is the
respondent entitled to back salaries after the CSC ordered his reinstatement to his former position in
consonant with the CSC ruling that he was guilty only of violation of reasonable office rules and
regulations? RULING: NO. The issue of entitlement to back salaries, for the period of suspension pending
appeal, of a government employee who had been dismissed but was subsequently exonerated is settled
in the Court jurisdiction. The Court starting point for this outcome is the "no work-no pay" principle
public officials are only entitled to compensation if they render service. It is excepted from this general
principle and awarded back salaries even for unworked days to illegally dismissed or unjustly suspended
employees based on the constitutional provision that "no officer or employee in the civil service shall be
removed or suspended except for cause provided by law"; to deny these employees their back salaries
amounts to unwarranted punishment after they have been exonerated from the charge that led to their
dismissal or suspension. 152 The present legal basis for an award of back salaries is Section 47, Book V of
the Administrative Code of 1987. Section 47. Disciplinary Jurisdiction. x x x. (4) An appeal shall not stop
the decision from being executory, and in case the penalty is suspension or removal, the respondent
shall be considered as having been under preventive suspension during the pendency of the appeal in
the event he wins an appeal. This provision, however, on its face, does not support a claim for back
salaries since it does not expressly provide for back salaries during this period; the Court established
rulings hold that back salaries may not be awarded for the period of preventive suspension as the law
itself authorizes its imposition so that its legality is beyond question. To resolve the seeming conflict, the
Court crafted two conditions before an employee may be entitled to back salaries: a) the employee must
be found innocent of the charges and b) his suspension must be unjustified. The reasoning behind these
conditions runs this way: although an employee is considered under preventive suspension during the
pendency of a successful appeal, the law itself only authorizes preventive suspension for a fixed period;
hence, his suspension beyond this fixed period is unjustified and must be compensated. It is the Court
consistent stand in determining the propriety of the award of back salaries that the government
employees must not only be found innocent of the charges; their suspension must likewise be shown to
be unjustified. The CA was correct in awarding the respondent his back salaries during the period he was
suspended from work, following his dismissal until his reinstatement to his former position. The records
show that the charges of grave misconduct and dishonesty against him were not substantiated. As the
CSC found, there was no corrupt motive showing malice on the part of the respondent in making the
complained utterance. Likewise, the CSC found that the charge of dishonesty was well refuted by the
respondent evidence showing that he rendered overtime work on the days in question. The Court is fully
in accord with the CA conclusion that the two conditions to justify the award of back salaries exist in the
present case. The first condition was met since the offense which the respondent was found guilty of
(violation of reasonable rules and regulations) stemmed from an act (failure to log in and log out)
different from the act of dishonesty (claiming overtime pay despite his failure to render overtime work)
that he was charged with. The second condition was met as the respondent committed offense merits
neither dismissal from the service nor suspension (for more than one month), but only reprimand. 153
In sum, the respondent is entitled to back salaries from the time he was dismissed by the CMWD until
his reinstatement to his former position - i.e., for the period of his preventive suspension pending
appeal. For the period of his preventive suspension pending investigation, the respondent is not entitled
to any back salaries.

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CIVIL SERVICE COMMISSION v. RICHARD G. CRUZ G.R. No. 187858, 09 August 2011, EN BANC (Brion, J.

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