Case Digest (G.R. No. 181393)
Facts:
- Grandteq Industrial Steel Products, Inc. and its President, Abelardo M. Gonzales, filed a Petition for Review on Certiorari against Edna Margallo.
- Margallo was employed as a Sales Engineer starting August 3, 1999.
- She availed a car loan program after being named "Salesman of the Year," making a down payment of P201,000.00 for a Toyota Corolla.
- Monthly amortization was P10,302.00, with Margallo responsible for P5,302.00 and Grandteq covering P5,000.00.
- On December 29, 2003, Margallo was accused of moonlighting and placed under preventive suspension.
- Margallo claimed she was following orders from her superiors in response to the accusations.
- In January 2004, she was encouraged to resign with a promise of payment for her commissions and benefits.
- Margallo resigned on January 13, 2004, but later claimed Grandteq did not pay her commissions of P87,508.00 or refund her car loan payments.
- Grandteq sold her car for P550,000.00 after her resignation.
- The Labor Arbiter dismissed her complaint on July 11, 2005, for lack of merit.
- The NLRC modified the Labor Arbiter's decision on October 18, 2006, ordering Grandteq to refund her car loan payments and pay her commissions and attorney's fees.
- The Court of Appeals affirmed the NLRC's decision on January 21, 2008, leading to the current petition by Grandteq and Gonzales.
Issue:
- (Unlock)
Ruling:
- The Court upheld the NLRC's decision, declaring the forfeiture clause in the car loan agreement null and void as it contradicted public policy and morals.
- The Court affirmed Margallo's entitlement to unpaid sales commissions, ruling...(Unlock)
Ratio:
- The Supreme Court concurred with the lower courts that the forfeiture clause in the car loan agreement was unconscionable and against public policy.
- The Court emphasized that contracts should not exploit employees or infringe upon their rights.
- Margallo had made significant paymen...continue reading
Case Digest (G.R. No. 181393)
Facts:
The case involves a Petition for Review on Certiorari filed by Grandteq Industrial Steel Products, Inc. and its President, Abelardo M. Gonzales, against Edna Margallo. The events leading to the case began when Margallo was employed as a Sales Engineer by Grandteq on August 3, 1999. As a reward for being named "Salesman of the Year," she availed herself of a car loan program offered by the company, paying a down payment of P201,000.00 for a brand new Toyota Corolla. The monthly amortization was set at P10,302.00, with Margallo responsible for P5,302.00 and Grandteq covering P5,000.00.
On December 29, 2003, Margallo received a letter from Gonzales and Rolando de Leon, the Vice-President for Administration, accusing her of moonlighting and breaching trust by working with a competitor, JVM Industrial Supply and Allied Services. She was placed under preventive suspension and asked to explain her actions. Margallo responded, asserting she was merely following orders from her superiors. In January 2004, De Leon suggested that she resign, promising that her commissions and benefits would still be paid. Trusting this assurance, Margallo submitted her resignation effective immediately on January 13, 2004.
After her resignation, Margallo claimed that Grandteq failed to pay her commissions amounting to P87,508.00 and did not refund her car loan payments. The company later sold her car to another employee for P550,000.00. Margallo subsequently filed a complaint against Grandteq and Gonzales for recovery of her claims, which was initially dismissed by the Lab...