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LABOR CASE DOCTRINES ALTEZA, ERYN KATE M.

ATTY. MERCADER 2H
ARTICLE XIII, SEC 3, 1987 CONSTITUTION  “The rule, therefore, is that in all cases of business closure or
cessation of operation or undertaking of the employer, the
MERALCO V QUISUMBING affected employee is entitled to separation pay. This is
 Judicial power includes the duty of the courts of justice to consistent with the state policy of treating labor as a primary
settle actual controversies involving rights which are legally social economic force, affording full protection to its rights as
demandable and enforceable, and to determine whether or well as its welfare. The exception is when the closure of
not there has been a grave abuse of discretion amounting to business or cessation of operations is due to serious business
lack or excess of jurisdiction on the part of any branch or losses or financial reverses; duly proved, in which case, the
instrumentality of the government. right of affected employees to separation pay is lost for
 Under this constitutional mandate, every legal power of the obvious reasons. xxx”
Secretary of Labor under the Labor Code, or, for that matter,
any act of the Executive, that is attended by grave abuse of EQUAL PROTECTION
discretion is subject to review by this Court in an appropriate
proceeding. DUNCAN ASSOCIATION V GLAXO WELLCOME
 To be sure, the existence of an executive power alone—  It is a settled principle that the commands of the equal
whether granted by statute or by the Constitution—cannot protection clause are addressed only to the state or
exempt the executive action from judicial oversight, those acting under color of its authority.
interference or reversal when grave abuse of discretion is, or  Corollarily, it has been held in a long array of U.S.
is alleged to be, present. Supreme Court decisions that the equal protection
 This is particularly true when constitutional norms are cited clause erects no shield against merely private conduct,
as the applicable yardsticks since this Court is the final however, discriminatory or wrongful.
interpreter of the meaning and intent of the Constitution.  In any event, from the wordings of the contractual
provision and the policy in its employee handbook, it is
DUE PROCESS clear that Glaxo does not impose an absolute
prohibition against relationships between its employees
ABBOT LABORATORIES V ALCARAZ and those of competitor companies.
 A different procedure is applied when terminating a  Its employees are free to cultivate relationships with
probationary employee: the usual two-notice rule does not and marry persons of their own choosing. What the
govern. company merely seeks to avoid is a conflict of interest
 Section 2, Rule I, Book VI of the Implementing Rules of the between the employee and the company that may
Labor Code states that: arise out of such relationships.
o if the termination is brought about by the x x x failure of
an employee to meet the standards of the employer in YRASEGUI V PAL
case of probationary employment, it shall be sufficient  Petitioner invokes the equal protection clause guaranty
that a written notice is served the employee, within a of the Constitution. However, in the absence of
reasonable time from the effective date of governmental interference, the liberties guaranteed by
termination; the Constitution cannot be invoked.
 As the records show, Alcaraz’s dismissal was effected  Put differently, the Bill of Rights is not meant to be
through a letter dated May 19, 2005 which she received on invoked against acts of private individuals. Indeed, the
May 23, 2005 and again on May 27, 2005. Stated therein United States Supreme Court, in interpreting the
were the reasons for her termination, i.e., that after proper Fourteenth Amendment, which is the source of our
evaluation, Abbott determined that she failed to meet the equal protection guarantee, is consistent in saying that
reasonable standards for her regularization considering her the equal protection erects no shield against private
lack of time and people management and decision-making conduct, however discriminatory or wrongful. Private
skills, which are necessary in the performance of her actions, no matter how egregious, cannot violate the
functions as Regulatory Affairs Manager equal protection guarantee.
 The weigh standards of PAL show its effort to comply
JAKA FOOD PROCESSING CORPORATION V. PACOT, ET AL. with the exacting obligations imposed upon it by law by
 The dismissal is legal, but employer should pay nominal virtue of being a common carrier.
damages for non-compliance with the notice requirement.  The primary objective of PAL in the imposition of the
 The difference between Agabon and the instant case is that weight stands for cabin crew is flight safety. The cabin
in the former, the dismissal was based on a just cause under attendants must have necessary strength to open
Article 282 of the Labor Code while in the present case, emergency doors, the agility to attend to passengers in
respondents were dismissed due to retrenchment, which is cramped working conditions and the stamina to
one of the authorized causes under Article 283 of the same withstand grueling flight schedules.
Code.  An overweight cabin attendant occupies more space
o A dismissal for just cause under Article 282 implies that than a slim one, there is a possibility that they may
the employee concerned has committed, or is guilty of, impede passengers from evacuating the aircraft and
some violation against the employer. Thus, it can be said being overweight impedes mobility.
that the employee himself initiated the dismissal
process. RIGHT TO COUNSEL
o A dismissal for an authorized cause under Article 283
does not necessarily imply delinquency or culpability on MANUEL V NC CONSTRUCTION SUPPLY
the part of the employee. Instead, the dismissal process
is initiated by the employer’s exercise of his
management prerogative.
 Accordingly, it is wise to hold that:
o (1) if the dismissal is based on a just cause under Article
282 but the employer failed to comply with the notice
requirement, the sanction to be imposed upon him
should be tempered because the dismissal process was,
in effect, initiated by an act imputable to the employee;
and
o (2) if the dismissal is based on an authorized cause under
Article 283 but the employer failed to comply with the
notice requirement, the sanction should
be stiffer because the dismissal process was initiated
by the employer’s exercise of his management
prerogative.
 The clear-cut distinction between a dismissal for just cause
under Article 282 and a dismissal for authorized cause under
Article 283 is further reinforced by the fact that in:
o For just cause, payment of separation pay, as a rule,
is not required,
o For authorized cause, the law requires payment of
separation pay.

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