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Theft as a Ground for Dismissal of an Employee
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Theft is one of the grounds providing just cause for employee dismissal. It falls under Article 297 of the Labor Code, as amended, either under the serious misconduct or willful breach of trust.
The Revised Penal Code generally defines theft as an act committed by any person who, with intent to gain but without violence against or intimidation of persons nor force upon things, shall take personal property of another without the latter’s consent .
An employee was held to be validly dismissed for the loss and unauthorized sale of the company’s electric copper wire cable upon findings that he sold the same and shared the proceeds with his three co-employees .
Whenever an employee steals something from the company, the employer may institute at least two actions: An administrative case threatening dismissal from service and a criminal case.
If that is the course taken by the employer, an interesting question is whether conviction of an employee in a criminal case is required for the dismissal of the employee from service on the ground of theft.
The ruling in this case is no. As discussed, the proof required in administrative proceeding is different from that of the criminal one. The former requires only substantial evidence while the latter proof beyond reasonable doubt.
Therefore, the administrative case is independent of the criminal action. The erring employee may be acquitted but likewise dismissed due to substantial evidence proving the offense.
Hence, in the case where the city prosecutor dismissed the complaint for theft due to insufficiency of evidence, the employee cannot claim that there was no valid cause for her termination on the ground of theft because there was no probable cause.
Learn how to Validly Terminate Employee in the Philippines with this Tutorial Video of Atty. Elvin 
The conclusion that there was a valid ground for dismissal was supported by substantial evidence consisting of affidavits of NBI’s witnesses and the company’s own investigative findings.
