Manila Electric Company V NLRC, Signo GR 78763
Manila Electric Company V NLRC, Signo GR 78763
Manila Electric Company V NLRC, Signo GR 78763
Medialdea, J.:
FACTS:
Respondent Apolinario M. Signo was an employee for 20 years of the petitioner company
Manila Electric Co. from January 1963 until his termination on May 8, 1983.
In 1981, a customer, Fernando De Lara filed for the electric services of the company at his
residence located at Penafrancia Subdivision, Marcos Highway, Antipolo Rizal. Signo facilitated the
processing of the application and its documentation, for his services De Lara paid Signo the amount of
P7,000.00; after which Signo filed the application with the Power Sales Division of the company.
De Lara’s residence was not within any serviceable reach of Meralco since the location was
beyond the 30-meter distance from the nearest Meralco facility. A number of employees including Signo
himself made it appear in the application that the sari-sari at the corner of Marcos Highway was De
Lara’s establishment which was not; because of this the electrical connections were installed, however,
due to the fault of the Power Sales Division of the company, De Lara was not billed for more than a year.
The company investigated this irregularity and found that it was Signo who was the cause of it
and was therefore, terminated on May 18,1983. On August 10, 1983, Signo filed for illegal dismissal,
unpaid wages, and separation pay.
On April 29, 1985, the Labor Arbiter rendered a decision in favor of Signo. On appeal, the NLRC
denied their petition for lack of merit.
ISSUES:
1. Whether or not Apolinarion M. Signo should be dismissed from Manila Electric Co. for serious
misconduct and loss of trust and confidence?
RULING:
1. No. While Manila Electric Co. contends that Signo violated Section 6 and 7 of the company’s Code on
Employee Discipline in which the penalty is Dismissal, the right of an employer to freely discharge his
employees is subject to regulation by the State’s police power; the preservation of the lives of the
citizens is a basic duty of the State than the preservation of corporate profits.
The Labor Arbiter found that the dismissal should not be executed because of Signo’s 20 years of
service, and that the company has awarded him 2 commendation for honesty.
DISPOSTION:
In its decision dated July 12, 1989, the courts dismiss the petition for certiorari and the assailed
decision of the NLRC dated March 12, 1987 is affirmed.