Perez v. JP Morgan Chase Bank N.A.-Philippine Global Service Center
Perez v. JP Morgan Chase Bank N.A.-Philippine Global Service Center
Perez v. JP Morgan Chase Bank N.A.-Philippine Global Service Center
DECISION
LEONEN, J :p
This Court resolves the Petition for Review on Certiorari 1 assailing the
Decision 2 and Resolution 3 of the Court of Appeals, which reversed the
Resolutions 4 of the National Labor Relations Commission. The Court of
Appeals upheld the validity of the employee's dismissal for serious
misconduct that is violative of the employer's policies.
On June 27, 2008, JP Morgan Chase Bank N.A.-Philippine Global Service
Center (JP Morgan Chase) hired Janssen D. Perez (Perez) as a customer
service representative under its Human Resources Department. 5
In May 2014, Perez received a Notice to Explain from JP Morgan Chase
officers accusing him of using the Office Communicator, a private chatroom
for employees, to talk about agents, supervisors, and other colleagues using
indecent, profane, and disrespectful language with other employees. 6 In
response, he admitted to responding "hahaha" and "up down up down left
right le[f]t right" 7 in the private chatroom, but he denied using profane and
abusive language. 8
On June 3, 2014, Perez was called for an interview, where he admitted
knowing that obscenity was prohibited in the company's Code of Conduct
and pinpointed his responses in the Office Communicator. 9 He also admitted
having access to employee information and having sent emails to his
personal email address, but he denied sending any confidential company
information. 10
In July 2014, a second administrative hearing was held, where Perez
vehemently denied using profane and obscene language in the chatroom
conversation. 11
On August 19, 2014, after admitting participation in the chatroom, a
Notice to Explain was sent to Perez, ordering him to explain the charges of
possible violation of the company's Guidelines on Workplace Behavior,
particularly on general conduct and decorum. 12 Perez denied the charges
but admitted that he "was guilty of using the company resources
improperly." 13
Labor Arbiter Makasiar ruled that since the chatroom snapshots were
edited, the deplorable statements could not be imputed to Perez, who was
only proven to have responded "hahaha" and "up down up down left right
left right" to his officemates' remarks. Thus, he ruled that this was not the
"unbecoming behavior" that merited dismissal. 20 He also found no basis to
determine if the contents of the emails Perez forwarded were confidential
and proprietary information of JP Morgan Chase. 21 However, the labor
arbiter admitted that "the terms used [in the conversations] appeal to the
prurient thoughts of the participants in the chat[]room as the words
introduced exemplify abrasive sexual demeanor" deserving dismissal. 22
On appeal, the National Labor Relations Commission issued its
September 10, 2018 Resolution, 23 upholding the labor arbiter's Decision and
ruling that Perez was illegally dismissed because the penalty of dismissal
was not commensurate to the offense committed, thus:
[A]lthough respondent company has the right to discipline its erring
employees, exercise of such right should be tempered with
compassion and understanding. The magnitude of the infraction
committed must be weighed and equated with the penalty prescribed
and must be commensurate thereto, in view of the gravity of the
penalty of dismissal. In termination cases, what is at stake is not
simply the job or position but a livelihood. Thus, the penalty of
dismissal is too harsh. 24
In a December 28, 2018 Resolution, 25 the National Labor Relations
Commission denied the Motion for Reconsideration filed by JP Morgan Chase.
26
In its October 30, 2020 Decision, 27 the Court of Appeals reversed the
rulings of the National Labor Relations Commission, which it found to have
ignored the evidence on record, resulting in a gross misapprehension of
facts. The dispositive portion of the Decision reads:
WHEREFORE, the instant petition for the instant petition for
certiorari is hereby GRANTED.
Accordingly, the Decision dated 10 September 2018 and
Resolution dated 28 December 2018 rendered by the NLRC in NLRC
NCR CN. 03-03827-18 (NLRC LAC CN. 08-003132-18(4) [sic] are
REVERSED and SET ASIDE .
SO ORDERED. 28 (Emphasis in the original)
The Court of Appeals held that Perez was not entitled to his monetary
claims, because JP Morgan Chase validly dismissed him after sufficiently
establishing the lawful grounds. 29 It found the following established: (1)
Perez clearly participated in lewd conversation with coworkers using
company resources during office hours; and (2) he sent an official
communication by his manager to his personal email address, without any
authorization and justification. 30 aScITE
In line with this Court's March 16, 2022 Resolution, 41 respondent filed
its Comment/Opposition. 42
Respondent alleges that the Petition should be denied outright as it
raises purely questions of fact, which are not within the province of a Rule 45
petition. 43 It argues that petitioner raises questions of fact in claiming that
he was not an active participant in the Office Communicator and the
information he sent out to external emails was not confidential. 44 In any
case, it maintains that the Court of Appeals' factual findings should be
accorded greater weight. 45
Respondent argues that the Court of Appeals correctly upheld
petitioner's dismissal after considering the overwhelming evidence of his
active violation of company policies, which he admitted, and despite being
part of the department supposed to enforce them. 46 Respondent claims that
the labor tribunals acted with grave abuse of discretion due to their gross
misapprehension of facts, and their findings being contrary to the evidence
on record. 47 Respondent claims that petitioner's messages in the Office
Communicator are aptly considered as obscene by the Court of Appeals. 48 It
adds that the labor tribunals, in burdening it to prove that the emails were
confidential, blatantly failed to consider the nature of its business as a bank
and the confidentiality provision in its rules stating that all information in
office emails are assumed to be confidential. 49
Given petitioner's valid dismissal, respondent claims that petitioner is
not entitled to his monetary claims. 50 It adds that the claim for solidary
liability against Dimon should be dismissed for lack of factual basis, as there
was no evidence of his alleged active participation or involvement in
petitioner's dismissal, and the issue was raised for the first time on appeal.
51
Article 297 of the Labor Code provides the just causes for when an
employer may validly terminate the employment of an employee:
ARTICLE 297 [282]. Â Termination by Employer. — An employer
may terminate an employment for any of the following causes:
(a) Â Serious misconduct or willful disobedience by the
employee of the lawful orders of his employer or
representative in connection with his work;
(b) Â Gross and habitual neglect by the employee of his
duties;
(c) Â Fraud or willful breach by the employee of the trust
reposed in him by his employer or duly authorized
representative;
(d) Â Commission of a crime or offense by the employee
against the person of his employer or any immediate
member of his family or his duly authorized
representatives; and
(e) Â Other causes analogous to the foregoing.
Misconduct has been defined as the "transgression of some established
and definite rule of action, a forbidden act, a dereliction of duty, willful in
character, and implies wrongful intent and not mere error in judgment." 53
To validly justify the termination of employment, the misconduct must: (a)
be serious, or of such grave and aggravated character and not trivial or
unimportant; (b) relate to the performance of the employee's duties; and (c)
show that the employee has become unfit to continue working for the
employer. As this Court has explained:
To warrant termination of employment under Article 297(a) of
the Labor Code, the misconduct must be serious or "of such grave
and aggravated character." Trivial and unimportant acts are not
contemplated under Article 297(a) of the Labor Code.
In addition, the misconduct must "relate to the performance of
the employee's duties" that would render the employee "unfit to
continue working for the employer." Gambling during office hours,
sexual intercourse within company premises, sexual harassment,
sleeping while on duty, and contracting work in competition with the
business of one's employer are among those considered as serious
misconduct for which an employees services may be terminated.
Recently, this Court has emphasized that the rank-and-file
employee's act must have been "performed with wrongful intent" to
warrant dismissal based on serious misconduct. Dismissal is deemed
too harsh a penalty to be imposed on employees who are not induced
by any perverse or wrongful motive despite having committed some
form of misconduct. 54 (Citations omitted)
In Yabut v. Manila Electric Company , 55 this Court found the petitioner
guilty of serious misconduct for violating the respondent company's code of
conduct. This Court found that installing shunting wires was a serious wrong
that was willful and deliberate; that it related to the petitioner's performance
of duties as a branch field representative, who is knowledgeable on meter
operations and handling violations of a customer's contract; and that his act
improperly used his knowledge to illegally obtain electric power from his
employer, rendering him unfit to continue performing his functions. aDSIHc
Footnotes
2. Id. at 35-47. The October 30, 2020 Decision in CA-G.R. SP No. 160278 was
penned by Associate Justice Marie Christine Azcarraga-Jacob and concurred
in by Associate Justices Apolinario D. Bruselas, Jr. and Tita Marilyn Payoyo-
Villordon of the Special Seventh Division, Court of Appeals, Manila.
3. Id. at 49-51. The June 16, 2021 Resolution in CA-G.R. SP No. 160278 was penned
by Associate Justice Marie Christine Azcarraga-Jacob and concurred in by
Associate Justices Apolinario D. Bruselas, Jr. and Tita Marilyn Payoyo-
Villordon of the Former Special Seventh Division, Court of Appeals, Manila.
4. Id. at 74-88, 90-93. The September 10, 2018 and December 28, 2018
Resolutions in NLRC NCR CN. 03-03827-18 [NLRC LAC CN. 08-003132-18(4)]
were penned by Presiding Commissioner Julia Cecily Coching Sosito and
concurred in by Commissioners Erlinda T. Agus and Dominador B. Medroso,
Jr. of the Second Division, National Labor Relations Commission, Quezon City.
5. Id. at 36.
6. Id.
7. Id. at 310.
8. Id.
15. Id.
36. Id.
52. Hubilla v. HSY Marketing Ltd., Co., 823 Phil. 358, 384 (2018) [Per J. Leonen,
Third Division]. See also National Labor Relations Commission v. Salgarino,
529 Phil. 355 (2006) [Per J. Chico-Nazario, First Division].
53. Yabut v. Manila Electric Company, 679 Phil. 97, 110-111 (2012) [Per J. Reyes,
Second Division]. See also National Labor Relations Commission v. Salgarino,
529 Phil. 355 (2006) [Per J. Chico-Nazario, First Division].
54. Bravo v. Urios College , 810 Phil. 603, 617-618 (2017) [Per J. Leonen, Second
Division].
60. Rivera v. Genesis Transport Service, Inc., 765 Phil. 544, 555 (2015) [Per J.
Leonen, Second Division].
63. G.R. No. 195584, November 10, 2021 [Per J. Gaerlan, Second Division].
67. Pascual v. Burgos, 776 Phil. 167, 182 (2016) [Per J. Leonen, Second Division].
68. Id. at 169.
69. Kumar v. People , 874 Phil. 214, 216 (2020) [Per J. Leonen, Third Division].
70. RULES OF COURT, Rule 45, Sec. 6; Kumar v. People , 874 Phil. 214, 216 (2020)
[Per J. Leonen, Third Division].
77. Sugue v. Triumph International (PHILS.), Inc., 597 Phil. 320, 341 (2009) [Per J.
Leonardo-de Castro, First Division].
78. See Philippine Span Asia Carriers Corporation v. Pelayo, 826 Phil. 776 (2018)
[Per J. Leonen, Third Division].