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Philippine Commercial International Bank v.

Abad
Topic: Consequences of dismissal

FACTS:

Anastacio D. Abad was the Senior Assistant Manager of petitioner Philippine


Commercial International Bank when he was dismissed from his work
Abad received a Memorandum from petitioner Bank concerning the irregular clearing
of PNB-Naval Check of Sixtu Chu, Abad submitted his Answer categorically denying
that he instructed his subordinates to validate the out-of-town checks of Sixtu Chu
During the actual investigation conducted by petitioner Bank, several transactions
violative of the Banks Policies and Rules and Regulations were uncovered by the Fact-
Finding Committee
Consequently the Fact-Finding Officer of petitioner Bank issued another
Memorandum to Abad asking the latter to explain the newly discovered irregularities
Not satisfied with the explanations of Abad, petitioner Bank served another
Memorandum terminating his employment effective immediately upon receipt of the
same
Abad then filed a complaint for illegal dismissal with non-payment of overtime pay,
premium pay for holiday, and rest day, separation pay, retirement benefits, damages
and attorneys fees
The Labor Arbiter declared the dismissal to be legal and directed PCIB to indemnify
Abad in the amount of Php 10, 000, Abad appealed from this decision before the NLRC
The NLRC affirmed the decision and modified the award of indemnity to Php 21,209,
Abad elevated the case before the CA in a petition for certiorari
The CA sustained the ruling that the dismissal was valid because PCIB lost its trust and
confidence in Abad, the CA awarded separation pay equivalent to month pay for
every year of service in accordance with the social justice policy
Hence this petition

ISSUE:

Did the CA err in awarding Abad months pay for every year of service?

HELD:

No. The CA did not err in awarding separation pay.


The Court held that separation pay was correctly awarded despite the lawful
dismissal. Separation pay depends on the cause of dismissal and the circumstances of
the case.
The dismissal should not be due to serious misconduct or to causes reflective of moral
character. The dismissal in this case was due to loss of trust and confidence and not
serious misconduct
The dismissal was also not reflective of Abads moral character, as he did not show
any indication that hid actions were perpetrated for his self-interest

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