Facts:

• The case involves "J" Marketing Corporation (petitioner) and Cesar L. Taran (respondent).
• Taran worked as a credit investigator/collector from February 1981 until his resignation on March 1, 1993.
• In February 1993, Taran informed Hector L. Caludac, the Officer-in-Charge Branch Manager, of his intention to resign due to health issues.
• Caludac issued a memorandum on February 13, 1993, requiring Taran to submit a formal resignation letter, which Taran provided on February 15, 1993.
• After resigning, Taran filed a complaint with the National Labor Relations Commission (NLRC) on July 26, 1993, claiming illegal dismissal and holiday differential.
• Taran alleged a verbal agreement with the company for 100% separation pay and other benefits upon resignation, which the company failed to honor.
• The petitioner argued that Taran's resignation was voluntary and justified due to his failure to meet collection quotas and an investigation into policy violations.
• The Labor Arbiter ruled in favor of Taran, awarding him separation pay and other benefits.
• The NLRC affirmed this decision with modifications, leading to a petition for certiorari by the petitioner to the Court of Appeals, which was denied.
• The petitioner subsequently filed a petition for review with the Supreme Court.

Issue:

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Ruling:

• The Supreme Court ruled that Cesar L. Taran is entitled to separation pay and other benefits due to the verbal agreement made with management.
• The Court of Appeals did not err in affirming the NLRC's...(Unlock)

Ratio:

• The Supreme Court noted that while the Labor Code typically does not provide for separation pay for voluntarily resigning employees, exceptions exist when there is an agreement or established practice entitling an employee to such benefits.
• The Court found substantial evidence supporting Taran's claim of a verbal agreement with Caludac, which influenced his decision to resign.
• Taran'...continue reading