The Supreme Court has affirmed the dismissal of an accountant who used the company payroll for “paluwagan” or pooling of money of employees.

In the resolution of the 2nd Division, the Petition for Certiorari of Claudia Clemeña Varquez was denied.

Varquez challenged before the Supreme Court a Court of Appeals ruling that reversed the findings of the National Labor Relations Commission.

The NLRC earlier declared that Varquez was illegally dismissed from service at Rider Levett Bucknall, Philippines, Inc.

The case stemmed from the 2005 paluwagan of the employees, where they pooled a portion of their salary into a common fund which can be utilized to extend loans to the employees.

Varquez was asked to explain by RLBPI certain acts which include maintaining an illegal bank account which contained deductions in the payroll accounts of the employees, which led to her dismissal.

Varquez filed a complaint with the Labor Arbiter at the NLRC which was denied.

The NLRC then reversed the decision of the Labor Arbiter.

The Supreme Court however said that the dismissal of Varquez was valid.

“We again emphasize that for a managerial employee, it is sufficient that the employer has a reason to believe that they have breach their employer’s trust to justify their dismissal,” the SC said in the resolution signed by Division Clerk of Court Teresita Tuazon.

The Supreme Court however agreed with the uniform findings of the Labor Arbiter, the NLRC and the CA that the company failed to fully observe the procedural due process requirements of the law.

The court noted that the Notice To Explain issued to Varquez was incomplete as the audit report was neither cited nor attached.

The Labor Arbiter had earlier decided to grant Varquez P30,000 as nominal damages.

“As RLBPI failed to fully comply with the procedural due process required in labor disputes, it should be held responsible for paying nominal damages,” the court said.