SC affirms rule on separation pay

By JEAMMA E. SABATE
November 6, 2010, 7:30pm

MANILA, Philippines — The Supreme Court (SC) has affirmed the ruling of the National Labor Relations Commission (NLRC) which directs the Philippine Airlines, Inc. (PAL) to give separation pay to its former employee who contested her dismissal for her alleged incompetence on her job amid Goldair alleged anomaly amounting to 11 million Australian dollars.

The SC first division affirmed the Sept. 29, 2005 decision and Nov. 14. 1995 resolution of the NLRC with the modification that petitioner PAL pay Aida Quijano one- half (1/2) month salary for every year of service as separation pay on equitable grounds.

In a 25-decision penned by Associate Justice Teresita J. Leonardo-de Castro, the SC said the transgressions imputed to private respondent (Quijano) have never been firmly established as deliberate and willful acts clearly directed at making PAL loss of millions.

After discovering Goldair fraud, the PAL filed a civil case in Australia against Goldair seeking to recover AUD 11 million. A settlement was reached as Goldair was to pay PAL AUD 7 million inclusive of court cost.

The PAL went after the Goldair Pty. Ltd., a travel agent, after discovering that the airlines overpaid commissions to the latter.

In 1991, the PAL Board of Director suspended and eventually considered Quijano and others resigned from service for loss of confidence and for acts inimical to the interest of the company.
The PAL claimed that as manager-ASAD in 1984-1987 when the fraud was discovered, she failed to uncover or detect and report or grossly disregarded the fraud although the commission vis-à-vis production, were scandalously high.

Quijano bought her case to NLRC and won against the PAL. The PAL was prompted to file petition for certiorari before the SC to seeking annul the two rulings of NLRC.

The NLRC decision revealed that the fraud was found to have started in 1981 and Quijano became the manager of Agents Services Accounting Division (ASAD) only on Sept. 1, 1984.

Quijano was the first to discover the overpayment of commission claims to Goldair in 1984 in rate differences in net/net settlement. After her intervention, it did not recur.