Labor Law Digest: JULIET APACIBLE V. MULTIMED INDUSTRIES INC. et. al. [G.R. No. 178903, May 30, 2011]

Topic: Separation Pay

LABOR LAW CASE: JULIET APACIBLE V. MULTIMED INDUSTRIES INC. et. al.

[G.R. No. 178903, May 30, 2011]

FACTS:

Juliet Apacible is an assistant area manager for Cebu operations of the respondent company, Multimed Industries. Due to the company’s reorganization, a transfer order was issued to Apacible from Cebu to the main office in Pasig, Manila however, she refused heeding the same. Through her counsel, she insisted remaining in her current position in Cebu, thus refusing to comply with the transfer order and demanded for payment of separation pay.

Finally, respondent company terminated Apacible for insubordination. This prompted Apacible to file a case for illegal dismissal, and nonpayment of separation pay, among others.

NLRC granted Apacible’s petition for separation pay by way of financial assistance. CA reversed.

ISSUE: 

If an employee is entitled to payment of separation way by way of financial assistance  in cases of valid dismissal due to gross insubordination.

HELD:

No, separation pay is not warranted when the employee was justly terminated for gross insubordination or willful disobedience. Apacible’s adamant refusal to transfer from Cebu to Manila shows she was guilty of gross insubordination, one of the four grounds laid down in Art. 282 of the Labor Code not granting award of separation pay.

Petition denied.