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Insular Lumber Company vs. Court Of Appeals, Et Al.

INSULAR LUMBER COMPANY, petitioner, vs. COURT OF APPEALS, EULOGIO ARONALES, MANUEL ASTORGA, JULIO ATADERO, MELANIO BUNA, LUCIANO CARTON, AMADO CATALAN, FRANCISCO GANTES, FELIPE GASPE, BERNARDO MARQUEZ, MELANIO PORLAS, CARLOS PENAFLOR. and SIMEON VAFLOR, respondents.

G.R. No. L-23857 | 1969-08-29

D E C I S I O N 


SANCHEZ, J.: 

The dominant issue raised in this appeal is whether or not the dismissal of employees without a definite period of employment - in consequence of a retrenchment program for reasons of economy and mechanization or modernization of operations - was for "just cause" which would exempt the employer from giving separation pay under the Termination Pay Law, Republic Act 1787, which took effect on June 21, 1957, Section I (the pertinent portion) of which reads: 

"SECTION 1. In cases of employment, without a definite period, in a commercial, industrial, or agricultural establishment or enterprise, the...