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PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. Nos. L-11872 & L-14922. August 31, 1959. ]

FRANCO J. ALTOMONTE, Plaintiff-Appellant, v. PHILIPPINE-AMERICAN DRUG COMPANY, defendant and appellee. FRANCO J. ALTOMONTE, plaintiff and appellee v. PHILIPPINE-AMERICAN DRUG COMPANY, Defendant-Appellant.

Barria & Binamira for plaintiff-appellant Altomonte.

Araneta & Araneta for defendant-appellant Phil-American Drug Co.


SYLLABUS


1. EMPPLOYER AND EMPLOYEE; EMPLOYEE WITHOUT A FIXED PERIOD; DISMISSAL. — The provisions of article 302 of the Code of Commerce providing that where the contract of employment is not fixed period, any rights of the parties may terminate it, advising the other thereof one month in advance, were repealed by new Civil Code. Nevertheless, the repeal does not deprive an employer of his right to separate from the service an employee, who is holding the position of branch manager, for valid and justifiable reasons such as inefficiency, incompetence loss of confidence in him, and retrenchmnent due to drastic cuts in its impport allocations and losses incurred. Republic Act No. 1052, approved on 12 June 1954, revised the aforesaid provisions of the Code of Commerce.


D E C I S I O N


PADILLA, J.:


On 21 July 1948 the plaintiff was appointed by the defendant manager of its branch in Legaspi, Albay, with a monthly salary of P600 (Exhibits 1 & 1-A) and a commission of 1% on the gross receipts (Exhibits O, O-1, O-2, R & R-1), without a definite period of employment. On 1 June 1951 he was transferred to Ceb
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