01/08/2025
The (SC) has upheld a company's decision to suspend an employee who blocked access to the software he created while working there.
In a Decision written by Associate Justice Samuel H. Gaerlan, the SC’s Third Division held that JGC Philippines, Inc., a design engineering and construction management company, validly placed one of its senior engineers, Santiago dJ. Sillano, under preventive suspension while investigating his actions.
Sillano developed several programs while working under JGC. When a dispute arose over who owned the software—Sillano claimed it was his, while JGC said it belonged to the company—Sillano activated security features that made the programs unusable.
JGC responded by preventively suspending Sillano. When Sillano refused to unlock the programs and turn over the source codes, JGC fired him for disobedience and filed a complaint against him before the National Labor Relations Commission for breach of his employment contract.
In response, Sillano sued JGC for illegal dismissal and suspension. He also filed a case before the Intellectual Property Office (IPO), which later ruled that he owned the software.
The SC agreed with the Court of Appeals, which ruled that while JGC was justified in suspending Sillano, its termination of Sillano’s employment was “devoid of substantial due process.”
Under the 𝘓𝘢𝘣𝘰𝘳 𝘊𝘰𝘥𝘦, an employer can preventively suspend an employee without pay for up to 30 days if the employee’s presence poses a threat to the company or its property.
In this case, the SC found that JGC had good reason to suspend Sillano.
At that time, the company believed it owned the software, as the IPO had not yet ruled on this matter. Sillano’s action of blocking access to the software posed a threat to its property. Additionally, the suspension also complied with the 30-day limit provided under the 𝘓𝘢𝘣𝘰𝘳 𝘊𝘰𝘥𝘦.
Read the full text of the Press Release at https://tinyurl.com/ywwdnkky.
Read the full text of the Decision at https://tinyurl.com/yd2enyea.
Read the Dissenting Opinion of Associate Justice Japar B. Dimaampao at https://tinyurl.com/5n87sfkc.
Copying of this content is subject to the SC PIO’s Credit Attribution Policy: https://sc.judiciary.gov.ph/credit-attribution-policy/.
