Right to discipline.

The employers right to conduct the affairs of his business, according to

its own discretion and judgment, includes the prerogative to instill discipline
in its employees and to impose penalties, including dismissal, upon erring
employees.1 Depending upon the nature and gravity of the offense or
violation of company rules and regulations, the erring employee may be
disciplines by means of a warning, reprimand, suspension or termination of
employment.

The matter of imposing the appropriate penalty depends on the employer.

However, infractions committed by an employee should merit only the
corresponding sanction demanded by the circumstances. The penalty must be
commensurate with the act, conduct or omission imputed to the employee and
imposed in connection with the employers disciplinary authority.2 Further, in
case there is a set of company rules and regulations describing certain
offenses and the corresponding penalty for violation thereof, the penalty
prescribed thereunder for offender should be followed.

1 San Miguel Corporation vs NLRC, G.R. No. 87277, 12 May 1989.

2 Farrol vs. CA, G. R. No. 133259, 10 Feb. 2000