FACTS: Emmanuel Filoteo, an employee of Permex, was dismissed by the latter for allegedly falsifying his daily time record. The case arose from the company-tolerated practice of employees indicating on their time records the time they left work at the same time as when they logged in for work. The company tolerated this because by the time the workers shifts ended, they were usually tired and in a hurry to go home; hence, the practice saved them the trouble of queuing and logging out. On a particular day, Filoteo did this, but left early, upon permission granted by management, since there was no work to be done for that day. He was subsequently dismissed from his employment. He then filed an illegal dismissal case against Permex.
ISSUE: Was Filoteo illegally dismissed?
HELD: Yes. Given that management knew of and tolerated the practice of logging out in advance, it cannot hold the same against Filoteo. The rule is that where a violation of company policy or breach of company rules and regulations was found to have tolerated by management, then such violation cannot serve as the basis for termination.
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