It is a settled rule that moral damages are recoverable in dismissal cases only where the

dismissal was attended by bad faith or fraud or constituted an act oppressive to labor, or was done
in a manner contrary to morals, good customs or public policy while exemplary damages in dismissal
cases may be awarded only if the dismissal was affected in a wanton, oppressive or malevolent
manner. A dismissal may be contrary to law, but by itself alone, it does not necessarily establish bad
faith. [Colegio De San Juan de Letran-Calamba vs. Villas. G.R. No. 137795, March 26, 2003)].

The person claiming moral damages must prove the existence of bad faith by clear and
convincing evidence for the law always presumes good faith. [PAL vs. NLRC, et. Al. G.R. No. 132605,
February 2, 1999].