MERALCO v NLRC

G.R. No. 78763

Topic: On Laborers Welfare
Case Doctrines:

The power to dismiss is the normal prerogative of the employer. Generally, an

employer can dismiss an employee for just and authorized causes under Articles 282 and
283 of the Labor Code. However, the right of an employer to freely discharge his employees
is subject to regulation by the State, in the exercise of its paramount police power.
In carrying out and interpreting the Labor Codes provisions and its implementing
rules and regulations, the workingmans welfare shall be the primordial and paramount
consideration. Tis interpretation gives meaning and substance to the liberal and
compassionate spirit of the law as provided for in Article 4 of the Labor Code.

BUSTAMANTE

FACTS:
While Apolinario Signo was employed as Meralcos supervisor-leadman, one Fernando
de Lara filed an application with the company for electrical services at his residence at
Peafrancia Subdivision in Marcos Highway. Signo facilitated his application, in consideration
thereof, de Lara paid Php 7 000. Thereafter, Signo filed the application with the Power Sales
Division of Meralco.

The are where de Laras residence is located is not yet within the serviceable point of
Meralco but certain employees of the company, including Signo, made it appear that his
residence is at the sari-sari store located at the corner of Marcos Highway, also serving as
the subdivisions entrance. Consequently, the electrical connections were installed.
However, de Lara was not billed for more than a year due to the fault of the Power Sales
Division. Upon investigation, Meralco found Signo responsible for such irregularity, thereby
causing his termination. Signo filed a complaint for illegal dismissal, unpaid wages, and
separation pay.

ISSUE: w/n Signo should be dismissed by reason of serious misconduct

HELD:
No. Petitioner contends that Signo violated the Code on Employee Discipline of the
company, causing economic losses due to the unbilled electric consumption of de Lara.
However, dismissal is not proper considering Signos 20 years of service in the company
without any previous derogatory record. Also, he was given 2 commendations for honesty
during those years of service. The losses suffered by Meralco was found to be the fault of the
petitioners Power Sales Division. In a number of cases the court held that not withstanding a
valid cause for dismissal, such should not be imposed as it is too severe a penalty if the
employee has been employed for a considerable length of time in the service of the
employer. In carrying out and interpreting the Labor Codes provisions and its implementing
rules and regulations, the workingmans welfare shall be the primordial and paramount
consideration. Tis interpretation gives meaning and substance to the liberal and
compassionate spirit of the law as provided for in Article 4 of the Labor Code.