Title
Sanchez vs. Harry Lyons Construction, Inc.
Case
G.R. No. L-2779
Decision Date
Oct 18, 1950
Employees dismissed without notice sued for indemnity; Supreme Court upheld their entitlement to benefits under Article 302, voiding advance waivers as contrary to public policy and labor protection.
A

Case Digest (G.R. No. 233395)

Facts:

  • Origin and parties
    • The case originated in the Municipal Court of Manila from a complaint filed on March 9, 1948.
    • The plaintiffs and appellees were Daniel Sanchez and others.
    • The defendants and appellants were Harry Lyons Construction, Inc. and other defendant(s), including Material Distributors, inc.
    • The complaint sought payment of P2,210 plus interest, which plaintiffs claimed as one month advance pay due them.
  • Agreed stipulation of facts and Municipal Court judgment
    • On April 28, 1948, the parties entered into a stipulation of facts.
    • The Municipal Court rendered judgment for the plaintiffs based on the agreed stipulation of facts.
    • The defendants filed a motion for reconsideration, which the Municipal Court denied.
  • Proceedings before the Court of First Instance
    • After denial of reconsideration, the defendants appealed to the Court of First Instance of Manila.
    • On appeal, the parties submitted the case upon the same facts agreed upon in the Municipal Court.
    • On October 2, 1948, the Court of First Instance of Manila rendered judgment for the plaintiffs.
  • Court of First Instance dispositive judgment (as reflected in the record)
    • The Court of First Instance ordered Material Distributors, inc. to pay:
      • Enrique Ramirez the sum of P360, and
      • Juan Ramirez the sum of P250,
      • each sum with legal interest from the date of filing of the complaint in the Municipal Court of Manila until full payment.
    • The Court of First Instance ordered Harry Lyons Construction, Inc. to pay:
      • Daniel Sanchez the sum of P250, and
      • Mariano Javier, Venancio Diaz, Esteban Bautista, Faustino Aquillo, Godofredo Diamante, Marcial Lazaro, Ambrosio dela Cruz, and Marcelino Maceda the sum of P150 each,
      • each sum with legal interest from the date of filing of the complaint in the Municipal Court of Manila until full payment.
    • The Court of First Instance taxed costs by ordering one-half to be paid by Material Distributors, Inc. and the other half by Harry Lyons Construction, Inc.
  • The stipulated employment details
    • The stipulation of facts provided that the plaintiffs were employed as follows:
      • Enrique Ramirez, from 12/16/46, as Warehouseman, salary P450 a month (later reduced to P360, which he received at dismissal).
      • Juan Ramirez, same employment dates indicated as “do…”, as Warehouseman, salary P250 a mo.
      • Daniel Sanchez, from 7/1/47, as Carpenter-Foreman, salary P250 a mo.
      • Mariano Javier, as Guard, salary 5 a day.
      • Venancio Diaz, as Guard, salary 5 a day.
      • Esteban Bautista, as Guard, salary 5 a day.
      • Faustino Aquillo, as Guard, salary 5 a day.
      • Godofredo Diamante, as Guard, salary 5 a day.
      • Marcial Lazaro, as Guard, salary 5 a day.
      • Ambrosio de la Cruz, as Guard, salary 5 a day.
      • Marcelino Maceda, as Guard, salary 5 a day.
    • The stipulation stated that the positions and salaries were “as per contracts of employment,” copies of which were attached to defendants’ answer marked Exhibits 1 to 11 inclusive.
  • Contract terms and dismissal event
    • The stipulation included the contractual agreement that employment may be terminated at any time without previous notice.
    • The stipulation further stated that salary and wages would be computed and paid up to the date of termination.
    • The plaintiffs expressly waived the bene...(Subscriber-Only)

Issues:

  • Entitlement to one-month advance pay under Article 302 of the Code of Commerce
    • Whether plaintiffs, including those paid on a monthly basis and those paid on a daily basis, were entitled to the benefits of Article 302 of the Code of Commerce.
  • Validity of advance waiver of Article 302 benefits
    • Whether plaintiffs’ waiver, made in the contracts of employment in advance, of the benefits...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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