From: Office of the Legal Department

Disciplinary Board
E-Commerce, House of Entrepreneurs Inc.

To: Gladys Gae L. Saavedra

Employee

RE: NOTICE TO EXPLAIN AND PREVENTIVE SUSPENSION

Dear Ms. Saavedra:

We are writing this letter pertinent to your various violations of the Company Code of Conduct, Memorandum
Circulars and the Labor Code of the Philippines specifically under Article 282 of the said code Serious and
habitual Misconduct.

On several occasions you continuously committed a persistent violation of the code of ethics of the company
and especially the Labor Code of the Philippines pertinent to Serious Misconduct, Insubordination and Willful
disobedience by you as an employee of the lawful orders of your employers.

FACTS:

On December 2019 up to the present, we received several reports from our distributors, your colleagues and
mega centers about your ATTITUDE PROBLEMS by saying, stating and utterance of invective, obscene,
offensive, and insulting words against the aforementioned aggrieved person/s such as:

1. Disobedience and unreasonable statements that are detrimental to the customers and clients’ interest that
would jeopardize the company’s image and its reputation. Moreover, we must always remember that our
clients and customers are our bread and butter. Thus, we must show great and high respect unto them as
to the extent that such respect are legal and right in the eyes of the law.
2. Willful, intentional and remorseless disobedience to your Superior, especially to the company’s
management and its stockholders. Hence, such action is tantamount to Insubordination with a punishment
of dismissal.
3. Utterance, stating and saying invective, obscene, offensive and insulting words against your co-workers.
Further, we received complaints from some of your colleagues that you disseminated false and deplorable
information specifically against Ms. Tenoria and others. (Messenger conversation between you and some
of your colleagues about Ms. Tenoria’s personal life)
4. Further, such actions are tantamount to blatant, flagrant, willful and oppressive disregard of your duties
and responsibilities as an employee and as a human being. In short, you were in dereliction of your duties
and responsibilities.

Citations/Legal Basis:

Art. 282. Termination by employer. An employer may terminate an employment for any of the following causes:

a. Serious misconduct or willful disobedience by the employee of the lawful orders of his employer or
representative in connection with his work;
b. Gross and habitual neglect by the employee of his duties;
c. Fraud or willful breach by the employee of the trust reposed in him by his employer or duly authorized
representative;
d. Commission of a crime or offense by the employee against the person of his employer or any immediate
member of his family or his duly authorized representatives; and
e. Other causes analogous to the foregoing. (Emphasis Supplied)

It is a well-settled Jurisprudence decided by the Supreme Court that Employee with “Attitude Problems” may
be fired or terminated from workand to wit:
 A. “An employee who cannot get along with his co-employees is detrimental to the company for he
can upset and strain the working environment. Without the necessary teamwork and synergy, the
organization cannot function well. Thus, management has the prerogative to take the necessary
action to correct the situation and protect its organization. When personal differences between
employees and management affect the work environment, the peace of the company is affected.
Thus, an employee’s attitude problem is a valid ground for his termination. It is a situation
analogous to loss of trust and confidence”xxxxxxxxxx (Heavylift Manila v. National Labor
Relations Commission, G.R. No. 154410, Oct. 20, 2005) (Emphasis Supplied)

B. Utterance of Obscene, insulting or offensive words constitutes serious misconduct.

“It is well-settled that the utterance of obscene, insulting or offensive words against a superior
constitutes gross misconduct, one of the grounds to terminate the services of an employee.
(Echiverria vs. Venutek Medika, Inc., G.R. No. 169231, Feb 15, 2007) (Emphasis Supplied)

“Such act not only destructive of the morale of his co-employees and a violation of the company
rules and regulations but also constitutes serious misconduct. This attitude towards a supervisor
amounted to insubordination and conduct unbecoming of an employee which should merit the
imposition of the penalty of dismissal”. (Autobus Workers’ Union vs. National Labor Relations
Commissions, G.R. No. 117453, June 26, 1998) (Emphasis Supplied)

C. Insubordination or Willful Disobedience of Lawful Orders.

“It is the duty of the employee to obey all reasonable rules, orders, and instructions of the
employer, and wilful or intentional disobedience thereto, as a general rule, justifies recession of
the contract of service and the peremptory dismissal of the employee”. (Malabago vs. National
Labor Relations Commissions, G.R. No. 165465, Sept. 13, 2006) (Emphasis Supplied)

“The act of the employee in defiantly disobeying the rules of the company even after the
investigation, shows her cavalier attitude which leaves the management no other recourse but to
terminate her services. To condone such conduct will certainly erode the discipline that an
employer should uniformly enforce so that it can expect compliance with said rules and
regulations by its other employees. Otherwise, the rules necessary and proper for the operation of
its business would be rendered ineffectual”. (Soco vs. Mercantilr Corporation of Davao, G.R. No.
53364-65, March 16, 1987) (Emphasis Supplied)

D. Disseminating false information, “Chismis”, and Libelous or falsehood statements to others.

Our Criminal Law penalizes the commissions of Desseminating falsehood and chismis to
deplore other person’s reputation.

“Article 364 of the Revised Penal Code. Intriguing against honor. — xxxxxxx shall be imposed for
any intrigue which has for its principal purpose to blemish the honor or reputation of a person”.
(Emphasis Supplied)
E. Lastly, it is basic in our Civil Code under Human Relations provides the following:

HUMAN RELATIONS

Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act
with justice, give everyone his due, and observe honesty and good faith.
Article 20. Every person who, contrary to law, wilfully or negligently causes damage to another, shall
indemnify the latter for the same.
Article 21. Any person who wilfully causes loss or injury to another in a manner that is contrary to
morals, good customs or public policy shall compensate the latter for the damage. (Emphasis
Supplied)

Ergo, please submit your written explanation to the DISCIPLINARY BOARD being charged against you described
or narrated above within Seventy Two (72) Hours or THREE (3) Calendar Days from the date this Notice was served
upon you.
Lastly, you are preventively suspended for FIFTEEN (15) Calendar Days from the date this Notice was served
upon you.
 In the event that you are found guilty of the said charge(s), the company may terminate you from employment
and/or impose other appropriate penalties.
This Notice consists of three 3 pages, plus attachments.
Kindly give this matter your priority attention.

Prepared By:

HOE OFFICE OF THE LEGAL DEPARTMENT

Approved By:

DR. RAMON D. HENSON JR. MS. ANNALYN ILETO-LUYON

CEO/PRESIDENT Vice President for Operations/ Acting Human Resource