Lopez v. Roces
REITERATIONFacts
The Antecedents: Plaintiff Jose Lopez was employed as a chauffeur by the People's Homesite Corporation at a monthly salary of P40. The duration of his employment was not specified. Procedural History: After a few months, Lopez was discharged without notice and for no stated cause. He was paid his salary for the last month of service. Lopez filed an action seeking one month's salary in lieu of the 30-day notice he was not given. The Appeal: The action was dismissed by the lower court upon motion of the defendant, which argued that the complaint failed to state a valid claim. The plaintiff appealed this dismissal.
Issue(s)
Whether the plaintiff, as a chauffeur for a business corporation, is entitled to one month's salary in lieu of the 30-day notice not accorded to him upon his discharge without cause. Whether the plaintiff's employment falls under the provisions of the Code of Commerce regarding termination of service contracts.
Ruling
The order of dismissal is reversed, and the case is remanded to the lower court for further proceedings. The defendants-appellees are ordered to pay the costs.
Ratio Decidendi
On Issue 1: The Court held that under Article 302 of the Code of Commerce, when no special time is fixed in a contract of service, either party may dissolve it by advising the other one month in advance. The factor or shop clerk is entitled to the salary for that month when notice is given. However, when the one-month notice is not given, not only the factor or shop clerk but any employee discharged without cause is entitled to indemnity, which may be a month's salary. The plaintiff, as a chauffeur for a business corporation, can be considered a commercial employee entitled to this indemnity. On Issue 2: The Court found that the provisions of Articles 300, 301, and 302 of the Code of Commerce are applicable to the plaintiff's situation. Article 302 specifically addresses the dissolution of service contracts where no fixed term is agreed upon and provides for a one-month notice or, in its absence, indemnity. The People's Homesite Corporation, being a business corporation, engages employees in commercial activities, thus bringing the employment relationship within the purview of the Code of Commerce.
Main Doctrine
Under Article 302 of the Code of Commerce, in contracts of service where no specific duration is fixed, either party may terminate the contract by giving one month's advance notice to the other. If such notice is not given, the employee is entitled to a month's salary as indemnity, particularly when discharged without cause. This applies to commercial employees, including chauffeurs of business corporations.