Back

The Philippine Geothermal Inc. Employees Union vs. Unocal Philippines (Chevron Geothermal Phils.)

THE PHILIPPINE GEOTHERMAL, INC. EMPLOYEES UNION, PETITIONER, VS. UNOCAL PHILIPPINES, INC. (NOW KNOWN AS CHEVRON GEOTHERMAL PHILIPPINES HOLDINGS, INC.), RESPONDENT.

G.R. No. 190187 | 2016-09-28

Republic of the Philippines
Supreme Court
Manila
 
SECOND DIVISION
 
DECISION
 
LEONEN, J.:
 
The merger of a corporation with another does not operate to dismiss the employees of the corporation absorbed by the surviving corporation. This is in keeping with the nature and effects of a merger as provided under law and the constitutional policy protecting the rights of labor. The employment of the absorbed employees subsists. Necessarily, these absorbed employees are not entitled to separation pay on account of such merger in the absence of any other ground for its award.

This resolves a Petition for Review on Certiorari[1]...