Caltex vs.

Philippine Labor Organization

Facts:
Hipdion del Rosario was hired by Caltex as labourer in its Pandacan Terminal.
After two months he was suspended for insubordination. Caltex filed a petition with the
Industrial Court for authority to dismiss him. After hearing, the court found del Rosario
guilty of the acts complained of but believing that a permanent dismissal was to severe a
punishment, the court ordered his reinstatement with payment of backwages. Caltex claims
that the court committed a serious mistake of law and grave abuse of discretion in compelling it to
retain del Rosario in its employ and in substituting its judgment in determining the fitness
and qualification of a temporary employee to become permanent or regular.
Issues:
Whether or not del Rosarios discharge was proper.
Whether or not the court has a right to substitute Caltexs judgment in
determining the fitness and qualification of a temporary employee.
Held:
Del Rosarios discharge was proper. The acts of insubordination for which del
Rosario was found guilty consist of disorderly conduct and wilful disobedience which to
note was committed in a very short period of two months from the time of his hiring.
Willful disobedience is a justifiable ground for an employees discharge. Considering the
period of time that del Rosario had been working for petitioner (Caltex) before his
suspension, it can be said that he was on temporary or trial basis. Caltex has the right to
place him under this condition to determine his fitness and competency.