Tuesday, September 17, 2013

DUNCAN ASSOC v GLAXO WELLCOME GR 162994 September 17, 2004 BALANCING CONFLICTING CLAIMS
Forbidden relationship between employees of competing companies.
FACTS:
- Pedro Tecson is a medical representative of Glaxo. Upon his hiring, he was oriented regarding the company policies and
procedures, including the policy against relationship with employees of competitor companies.
- Tecson then met Bettsy from Astra, a competitor of Glaxo. Bettsy is the area representative for Astra in Albay, where
Tecson is also assigned.
- Tecson eventually married Bettsy, despite warnings from his superiors.
- He was asked then to resolve the situation. Tecson stated that Bettsy would soon leave her company to get the separation
pay etc. It did not materialize.
- Glaxo then reassigned Tecson to Mindanao, which Tecson did not follow.
- Tecson now files for constructive dismissal.
ISSUE:
WoN the company policy of Glaxo against competitor relationships is valid
WoN there was a constructive dismissal
RULING:
SC affirms CA decision, dismisses the petition
HELD:
- YES. Glaxo as a company can issue rules and regulations accordingly to protect itself and its property/interests:
o In any event, from the wordings of the contractual provision and the policy in its employee handbook, it is clear
that Glaxo does not impose an absolute prohibition against relationships between its employees and those of
competitor companies. Its employees are free to cultivate relationships with and marry persons of their own
choosing. What the company merely seeks to avoid is a conflict of interest between the employee and the
company that may arise out of such relationships.
- NO, there is no constructive dismissal. The actions of Glaxo to transfer Tecson to Mindanao is actually in respect to avoiding
the conflict of interest that arised when Tecson married Bettsy.
o Constructive dismissal is defined as a quitting, an involuntary resignation resorted to when continued employment
becomes impossible, unreasonable, or unlikely; when there is a demotion in rank or diminution in pay; or when a
clear discrimination, insensibility or disdain by an employer becomes unbearable to the employee. None of these
conditions are present in the instant case. The record does not show that Tescon was demoted or unduly
discriminated upon by reason of such transfer.
o Glaxo transferred Tecson so that they can avoid the conflict of interest. This evidences their lack of bad faith in the
transfer.