The Supreme Court ruled that Procter and Gamble Philippines illegally dismissed Edgardo Bondesto, a long-time employee, for alleged unauthorized absences. While Bondesto did have absences, the Court found that Procter and Gamble did not sufficiently prove serious misconduct or willful disobedience to justify termination. The Court emphasized that employers must balance adherence to company rules with the constitutional right to security of tenure, especially for employees with lengthy, mostly unblemished service records.

When Reimbursment Delays Clash with Termination Policies: Did P&G Act Justly?

Edgardo Bondesto, a production technician at Procter and Gamble Philippines, was terminated after nineteen years of service due to what the company considered unauthorized absences. The core issue revolves around whether these absences were justified by circumstances such as delays in reimbursement for work-related expenses and family health concerns, and whether P&G acted fairly in its application of company policy on unauthorized absences, potentially conflicting with the employee’s right to job security.

The events leading to Bondesto’s dismissal began when P&G questioned his absences, totaling 35 days, demanding an explanation. Bondesto responded, citing delays in reimbursement for expenses he incurred during a field assignment in Mindanao, where he even had a check bounce. This reimbursement issue forced him to visit the company’s Makati office, causing further absences. Additionally, he explained that his children had been sick and required his attention. When P&G released the reimbursements after a considerable delay, they still questioned his “excessive absences,” leading to the termination notice citing a violation of the company policy on unauthorized absences.

Bondesto, represented by his union, argued that his absences were justified under the circumstances, especially given P&G’s own delays in reimbursement. P&G countered that Bondesto failed to provide satisfactory explanations and did not comply with company procedures for reporting absences. Initially, the Labor Arbiter sided with P&G, finding cause for termination but awarding separation pay due to Bondesto’s length of service. However, on appeal, the NLRC reversed the decision, deeming the dismissal illegal because the absences were linked to the delayed reimbursements. The NLRC ordered reinstatement but limited back wages to one year, recognizing that Bondesto had not sufficiently justified all of his absences, particularly those during May and June.

The Court of Appeals affirmed the NLRC’s ruling. P&G then elevated the case to the Supreme Court, arguing that Bondesto had deliberately disregarded company rules and regulations and that reinstatement was no longer feasible due to strained relations. The Supreme Court underscored the importance of upholding the factual findings of lower tribunals, particularly when they align. It reiterated the principle that its review is limited to instances where inferences are manifestly erroneous. Here, the Supreme Court affirmed that there was no sufficient basis to overturn the established facts presented by the NLRC and Court of Appeals.

The Supreme Court acknowledged that while Bondesto’s absences between February and March 1994 were adequately explained, his absences in May and June lacked sufficient justification. The critical point, however, was whether these absences constituted “serious misconduct or willful disobedience” warranting dismissal. The Court reasoned that failure to locate a physician did not amount to serious misconduct, defined as a transgression of an established rule, implying wrongful intent rather than mere error in judgment. Furthermore, **willful disobedience requires a deliberate, perverse attitude and a violation of a lawful order related to one’s duties**.

Even assuming willful disobedience, the Court asserted that dismissal was too severe a penalty. Drawing from previous jurisprudence, the Court stated that proportionality is essential when deciding disciplinary actions. In this instance, Bondesto’s nineteen years of service and lack of prior infractions weighed heavily against termination. Considering his lengthy tenure and generally good record, dismissal was deemed a disproportionate punishment. The Supreme Court has consistently viewed dismissal as an ultimate penalty and requires that such decisions adhere to legal parameters and equity.

Ultimately, the Supreme Court ordered Bondesto’s reinstatement or, if reinstatement was not desired, separation pay, along with limited back wages. Though the initial ruling included reinstatement, P&G asserted that the plant where Bondesto worked had closed. Addressing this development, the Court directed P&G to offer Bondesto a similar position in another facility. If such a position was unavailable or Bondesto declined reinstatement, he was entitled to separation pay, underscoring the need to protect workers while acknowledging legitimate employer concerns.

FAQs

What was the key issue in this case?	The key issue was whether Procter and Gamble Philippines had just cause to terminate Edgardo Bondesto for alleged unauthorized absences, and whether the termination violated his right to security of tenure. The Court had to balance the company’s need to enforce its attendance policies against the employee’s rights and mitigating circumstances.
What reason did Procter and Gamble give for firing Edgardo Bondesto?	Procter and Gamble cited Bondesto’s “unauthorized absences” as the reason for his termination. The company claimed that these absences violated company policy, which allows for termination if an employee incurs six continuous or ten total unauthorized absences within a calendar year.
What were Bondesto’s reasons for being absent?	Bondesto cited several reasons for his absences, including delays in reimbursement for work-related expenses which required him to go to the Makati office, and needing to care for his sick children. He also explained that he was unable to get a work permit from the company clinic.
What did the Labor Arbiter initially decide?	The Labor Arbiter initially sided with Procter and Gamble, finding cause for termination but awarded separation pay considering Bondesto’s length of service. The Arbiter believed the company was within its right to terminate the long time employee.
How did the NLRC and Court of Appeals rule on the case?	The NLRC reversed the Labor Arbiter’s decision, ruling that the dismissal was illegal, which was later affirmed by the Court of Appeals. These bodies found that Bondesto’s absences were at least partly justified, particularly the absences due to delays in expense reimbursements and family health issues.
What was the Supreme Court’s final decision?	The Supreme Court affirmed the Court of Appeals’ decision, holding that Bondesto’s dismissal was illegal. The Court ordered Procter and Gamble to reinstate Bondesto or, if reinstatement was not feasible or desired, to pay him separation pay plus back wages.
What factors did the Supreme Court consider in its decision?	The Supreme Court considered Bondesto’s length of service (nineteen years), his lack of prior disciplinary issues, and the proportionality of the penalty of dismissal given the circumstances. The Court also analyzed whether the absences qualified as “serious misconduct or willful disobedience.”
What is the significance of “security of tenure” in this case?	Security of tenure is a constitutional right that protects employees from being dismissed without just cause or due process. The Court emphasized that employers must balance their right to discipline employees with the employee’s right to job security, especially for those with long and generally good service records.
What happens if reinstatement is not possible due to company closure?	The Court addressed a situation where Procter and Gamble claimed the plant where Bondesto worked had closed. It directed the company to find a similar position for him in another plant or, if that was not possible, to provide separation pay, ensuring that the employee was not unduly penalized due to the closure.

This case highlights the judiciary’s commitment to protecting employee rights while acknowledging an employer’s right to manage its workforce efficiently. The balance achieved reflects a nuanced understanding of employment relations, ensuring both fairness and due process are observed. Ultimately, employers must thoroughly consider the individual circumstances and employee’s history when enforcing company policies related to attendance and potential discipline.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Procter and Gamble Philippines v. Bondesto, G.R. No. 139847, March 05, 2004