Professional Documents
Culture Documents
CA
4/14/1975
Facts: On May 1960, herein
respondent Alcantara worked in
Phil. Chamber of Industries but was
enticed by herein petitioner Felix K.
Lirag (who was then a member of
the BOD of PCI) to work at Lirag
Textile Mills. Alcantara initially
refused due to the fact that the job
was merely temporary, but later
changed his mind due to the offer
being changed to a permanent
position. Alcantara's tenure of
employment was to be 'for an
indefinite
period,
unless
sooner terminated by reason of
voluntary resignation or by
virtue of a valid cause or
causes'. On November of the
same year, he was promoted.
However, on July 1961, Lirag
Textiles wrote Alcantara a letter
advising him that because the
company 'has suffered
some
serious reverses, both in terms
of pecuniary loss and in market
opportunities,' the company was
terminating
his
services
and
effecting his separation on August
1961.
Issue: WON, there was a violation
of
the
written
contract
of
employment executed by the
parties.
Ruling: Yes. Petitioner contends
that it committed no violation on
the basis of RA 1787, which
provides:
Sec. 1. In case of
employment
without a definite
period,
in
a
commercial,
industrial,
or
agricultural
establishment or
enterprise,
the
employer ... may
terminate at any
time
the
employment with
just cause, or
without
just
cause ... or in the
case
of
an
employer,
by
serving
such
notice
to
the
employee at least
one month in
advance or one
half month for
every year of
service of the
employee,
whichever
is
longer, ....
However, this provision cannot
apply in the case at bar. The
contract of employment was for an
INDEFINITE period as it shall
continue without ending, subject to
a resolutory period - namely voluntary resignation on the part of
private respondent Alcantara or
termination of employment at the
option of petitioner Lirag Textile
Mills, but for a "valid cause or
causes". A "period" has been
defined "as a space of time which
has an influence on obligation as a
result of a juridical act, and either
suspends their demandableness or
produces their extinguishment."
Obligations with a period are those
whose consequences are subjected
in one way or another to the
expiration of said period or term. .
A day certain is understood to be
that which must necessarily come,
although it may not be known
when".
Given that Alcantara did not resign,
it is imperative to determing
whether there was a valid cause to
terminate
his
employment.
Evaluating the evidence presented,
the Court found no truth nor basis
for petitioner Lirag Textile Mills'
contention that the valid cause for
terminating private respondent
Alcantara's employment was that
the former "has suffered serious
reverses,
both
in
terms
of
pecuniary loss and in market
opportunities. On the contrary, the
Court found that (1) petitioner