The Supreme Court (SC) has upheld the dismissal of an accountant who used the company payroll for an informal savings system called “paluwagan.”
In a statement released Friday on a recent decision, the SC said “using the company payroll for personal gain breaches the trust and confidence bestowed upon an accountant, which can be a ground for a valid dismissal.”
The SC ruling turned down Claudia Varquez’s suit questioning the Court of Appeals’ ruling that she was legally dismissed from service by her employer, Rider Levett Bucknall, Phils. Inc. (RLBPI), reversing the findings of the National Labor Relations Commission.
Varquez, as chief accountant of RLBPI, was responsible for checking the semi-monthly payroll, preparing check vouchers and sales invoices, and acting as petty cash custodian, among others.
In 2005, a “paluwagan” called “PYF” was organized by RLBPI employees who pooled a portion of their salaries into a common fund.
The fund would then be utilized to extend loans to employees at minimal interest rates.
Following an audit, Varquez received a Notice to Explain in October 2015, requiring her to explain within 48 hours allegations of serious misconduct, fraud, and willful breach of trust against the company.
Varquez submitted her reply on Dec. 8, 2015, and was suspended for 30 days a month later, and subsequently terminated before the suspension period lapsed.
Varquez maintained an illegal bank account with the account name “Claudia for PYF C Varquez” which contained a series of crediting from personal deductions through employees’ payroll accounts that have not been approved by the RLBPI president/chairperson.
The SC found that the conditions for her termination were met –she must be holding a position of trust and confidence; and there must be an act that would justify the loss of trust and confidence.
However, while there were just causes for Varquez’s dismissal, the procedural due process requirements were not fully met by the RLBPI for failing to fully apprise Varquez regarding the “unreconciled differences” cited in the audit report.
The RLBPI was consequently ordered to pay Varquez P30,000 in nominal damages.