Lara et al were former taxi drivers of the defendant.

When the latter sold some of his

vehicles, the plaintiffs who were no longer needed were dismissed. Because their
employer did not give them their one months salary in lieu of the notice required in
Article 302 of the Code of Commerce, this action was instituted.
ISSUE: Whether or not the New Civil Code took effect on August 30, 1949.
HELD: In this case, the Supreme Court in an obiter dictum held that the new Civil Code
of the Philippines took effect on August 30, 1950. This date is exactly one year after the
Official Gazette publishing the Code was released for circulation, the said release having
been made on August 30, 1949. The plaintiffs then are not entitled to any compensation,
the New Civil Code having repealed the Code of Commerce.

Lara vs. Del Rosario

G.R. No. L6339, April 20, 1954
Facts: In 1950, Petronilo del Rosario, Jr. operated a taxi
business under the name Waval Taxi, employing three
mechanics and forty nine chauffeurs. On September 4,
1950, he sold his twenty five taxi cabs to La Mallorca
resulting to the termination of employment of Mr. del
Rosarios employees. Hence, the employees filed a complaint
against their former employer to recover compensation for
overtime work and mesada provided for in Article 302 of the
Code of Commerce, due to the failure of the defendant to
give them a one month notice.
Issues:
1) Whether or not the employees have the right to
overtime pay and mesada?
2) Whether or not Article 302 of the Code of Commerce
applies to the case at bar?
Ruling: The aforesaid employees have no right to claim
neither overtime pay nor mesada since they were paid on
commission basis; hence, they are not covered by the Eight
Hour Labor Law (Commonwealth Act No. 444) or Article 302
of the Code of Commerce, both laws applying only to
employees receiving a fixed salary; notwithstanding the
repeal of Art.302 by Art.2271 of the new Civil Code effective
August 30, 1950.