Bristol Myers Squibb vs Baban
G.R. No. 167449; December 17, 2008
Reyes. R.T., J.:
Facts:
In 1992, petitioner Bristol Myers Squibb Philippines, Inc. hired
respondent Richard Nixon A. Baban as district manager of the
company. He was assigned to handle the company's clients in
Cagayan de Oro-Northern Mindanao area and its immediate
vicinities. His duties included the promotion of nutritional products of
petitioner to medical practitioners, sale to drug outlets and the
supervision of territory managers detailed in his district.
On June 22, 1998, while conducting a field audit in Mindanao,
petitioner's auditor, Sheela Torreja, found twenty (20) packs of
"Mamacare" samples in the baggage compartment of a company car
with an accompanying note with political overtones. A note stapled on
the package reads in English: "Even if I've lost (sic) thank you so
much for the support. Bidding you farewell for 36 years of public
service. Will continue to help for the good of the city of Zamboanga.
By: Atty. Ricardo S. Baban, Jr."
Atty. Ricardo S. Baban, Jr., referred to in the note, is respondent's
father who had served as councilor in Zamboanga City for thirty-six
(36) years but lost in his bid for the vice-mayoralty post in the May 11,
1998 elections. Apparently, respondent's father was thanking
supporters through distribution of company sample products.
Respondent admitted that he had caused the attachment of the notes
to the product samples. He argued that there was no unauthorized
distribution of the samples since he intended to give them only to
doctors who requested them.
In a private conference held on July 27, 1998 with Mr. Sarfati,
respondent was asked to explain the incident. On July 29, 1998, he
was required by Atty. Hilario Marbella, manager, to appear for a
conference to be held on August 6, 1998. He was given the chance to
submit evidence and to be assisted by counsel during the
conference. On August 25, 1998, he received under protest the
company's memorandum dismissing him from employment.
Issue:
Whether or not Baban was illegally dismissed.
Held:
No.
It is clear that Article 282(c) of the Labor Code allows an employer to
terminate the services of an employee for loss of trust and
confidence. The right of employers to dismiss employees by reason
of loss of trust and confidence is well established in jurisprudence.
The first requisite for dismissal on the ground of loss of trust and
confidence is that the employee concerned must be one holding a
position of trust and confidence.
There are two (2) classes of positions of trust. The first class consists
of managerial employees. They are defined as those vested with the
powers or prerogatives to lay down management policies and to hire,
transfer suspend, lay-off, recall, discharge, assign or discipline
employees or effectively recommend such managerial actions. The
second class consists of cashiers, auditors, property custodians, etc.
They are defined as those who in the normal and routine exercise of
their functions, regularly handle significant amounts of money or
property.
Baban was employed to handle pharmaceutical products for
distribution to medical practitioners and sale to drug outlets. As a
result of his handling of large amounts of petitioner's samples,
respondent is, by law, an employee with a position of trust, falling
under the second class.
The second requisite is that there must be an act that would justify
the loss of trust and confidence. Loss of trust and confidence to be a
valid cause for dismissal must be based on a willful breach of trust
and founded on clearly established facts. The basis for the dismissal
must be clearly and convincingly established but proof beyond
reasonable doubt is not necessary.
Respondent's act of stapling a thank you note from his father
warrants the loss of petitioner's trust and confidence. As the
supervisor of fellow medical representatives, he had the duty to set a
good example to his colleagues. A higher standard of confidence was
reposed in him.
Hence, the dismissal was legal because it was with just cause of loss
of trust and confidence,
