G.R. No. 47950; July 1, 1942
JOSE LOPEZ, plaintiff-appellant, vs. ALEJANDRO ROCES, as Manager of People’s Homesite Corporation, et al., defendants-appellees.

FACTS

Plaintiff Jose Lopez was hired by the People’s Homesite Corporation as a chauffeur at a monthly salary of P40. There was no agreement as to the duration of the employment. After a few months, the plaintiff was discharged without notice and without any stated cause, upon payment of his salary for his last month of service. The plaintiff filed an action to recover a month’s salary in lieu of the 30-day notice he was not given. The defendant moved to dismiss the complaint for failure to state a valid claim, and the trial court granted the motion and dismissed the action. The plaintiff appealed.

ISSUE

Whether the complaint states a valid claim for a month’s salary in lieu of the required 30-day notice of termination under the Code of Commerce, given that the plaintiff was a chauffeur discharged without cause.

RULING

The Supreme Court reversed the order of dismissal and remanded the case for further proceedings. 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. If such notice is given, only a factor or shop clerk is entitled to a month’s salary. However, if the one-month notice is not given, not only a factor or shop clerk but any employee discharged without cause is entitled to indemnity, which may be a month’s salary. The People’s Homesite Corporation is a business corporation, and its chauffeur may be considered a commercial employee. Therefore, the complaint stated a valid cause of action. Costs were awarded against the appellees.