I

(10 points)

The National Feeds Corporation (NFC) is one of the biggest

producer and exporter of feeds in the country. Although an unorganized
establishment, it has individual labor contracts with its employees with
benefits considerably greater than the mandated minimum benefits.
Among the terms of the contract is that retirement is upon reaching the age
of 60, or service to the employer for a period of 240 months, whichever
comes first. Retirement benefits is also greater than the computation
prescribed by law.

Leonard, at age 56, is about to render his 240 th month of service on

April 10, 2020. A month before, he received a letter from the NFC about his
retirement and computation of benefits. However, he protested to the
management that he should be allowed to work until the age of 60
pursuant to the Labor Code. Nevertheless, he was deemed retired by NFC..

Leonard filed a case of illegal dismissal against NFC with the Labor
Arbiter, arguing against his retirement. On the other hand, NFC countered
that it had the right to retire an employee pursuant to the labor contract.
Decide with reasons.

ANSWER:
There is no illegal dismissal in the case at bar. The case at bar is the
same with the case of Pantranco North Express V. NLRC and Suniga.
In the case of Pantranco North Express V. NLRC and Suniga, G.R.
No. 95940, July 24, 1996, the court upheld the view of the petitioner and
Solicitor General arguing that a CBA provision lowering compulsory
retirement age less than 60 is not contrary to law because it does not
diminish the employee’s benefits. They argue that early retirement
constitutes a reward of employment, and therefore, retirement pursuant to
the CBA provision in question cannot be considered a dismissal.

II
(10 points)

Fritzie is one of the regular employees of ABC Malls, one of the

leading chain of malls in the country. ABC Malls implements a “no spouse
employment” policy, which mandates that an employee cannot marry a co-
employee in the mall, otherwise, one of the spouses has to resign from
1
his/her work. Despite of this policy, she maintained a romantic
relationship with Bryan, her co-employee at ABC Malls in Laoag City
where she is also assigned. Out of the relationship, she was impregnated.
She was warned of the existence of the policy by the management and was
advised to take a maternity leave at her 6 th month of pregnancy. She was
also advised to return to work after she has given birth.

Two months after she gave birth to their first born child with her
common-law husband Bryan, Fritzie reported back to work. She found out
that a replacement was already hired for her position. She was offered a
position at ABC Malls in Vigan City, with the same compensation and
benefits, but she refused as this would entail being away from her baby.
Subsequently, the management issued a memorandum for her to explain
why she would not be terminated for insubordination within 72 hours
from receipt, which she complied. A hearing was also scheduled and
conducted five days after she submitted her explanation. In gist, she
explained that her transfer would mean being away from her baby and
would entail more expenses. However, management terminated her
services, noting that her transfer was necessary for the operation of the
mall in Vigan City and her act was tantamount to insubordination.

Is there illegal dismissal? Explain fully.

ANSWER:
Yes. Illegal dismissal was committed by the management of ABC
malls for just cause was not observed in the termination of Fritzie. Also,
there was no insubordination on the part of Fritzie.
Under the law, insubordination has 2 requisites. First, the employees’
assailed conduct must have been willful or intentional, the willfulness
being characterized by a wrongful and perverse attitude. Second, the order
violated must have been reasonable, lawful, made known to the employee
and must pertain to the duties which she had engaged to discharge.
In relation to the case, the conduct of Fritzie refusing to attend her
position in Vigan was not a manifestation of perverse attitude. She refused
to attend her position for she was only concerned of being away from her
new born baby and that it would entail more expenses.