- Petitioner
- Philippine Airlines
- Respondent
- NLRC
- Citation
- G.R. No. 114307
- Court
- From Labor Arbiter (LA) to National Labor Relations Commission (NLRC) to Supreme Court (SC)
- Division
- Third Division
- Ponente
- Romero, J.
- Decided
- July 8, 1998
Summary
This Supreme Court case involves Philippine Airlines employee Edilberto Castro who was preventively suspended for 3.5 years after being caught with undeclared money in violation of Central Bank regulations. The central issue was whether Castro was entitled to backwages and CBA salary increases during his extended suspension period. The Labor Arbiter and NLRC ruled in Castro's favor, limiting his suspension to 30 days and ordering payment of backwages and benefits. The Supreme Court dismissed PAL's petition, holding that preventive suspension cannot exceed 30 days under Labor Code implementing rules, and if extended, the employee is entitled to wages and benefits. The Court distinguished preventive suspension (protective measure during investigation) from disciplinary suspension (penalty after investigation), emphasizing that employers must exercise disciplinary rights in good faith without defeating employee rights under law and contracts.