G. J. T. Rebuilders Machine Shop VS. Ricardo Ambos, Et Al

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G. J. T. Rebuilders Machine Shop VS. Ricardo Ambos, et al.

G.R. No. 174184 January 28, 2015

Facts:
G.J.T. Rebuilders Machine Shop is a single proprietorship company owned
by Spouses Godofredo Trillana and Juliana Trillana. The said business is in
the industry of making steel works and metal fabrication wherein, they hired
the respondents, Ricardo Ambos, Russell Ambos and Benjamin Putian as
machinists.

The said business is in Far East Building in Shaw Boulevard, Mandaluyong


City where they rented a space in the said building which served as a cite
for their machine shop. The said building was later destroyed partially by a
fire on September 8, 1996 and the owner notified its tenants to vacate their
rented units by the end of September 1996. The owner reasoned that; due
to the damages sustained by the building it might give rise to further
unforeseeable accidents.

Despite the notice, the owners of G.J.T. Rebuilders continued its


occupation until they were no longer accommodated by the owner of the
building. They left the building on December 15, 1997, filed an Affidavit of
Closure before DOLE and later executed a sworn application to retire it
business before the Mandaluyong City Treasurer’s Office.
When the business ceased its operation, the respondents lost their
employment and were not provided with separation pay. Due to that, they
filed a complaint for illegal dismissal against the G.J.T. Rebuilders.

Issue:
Whether or not the respondents are entitled to separation pay.

Ruling:
The Supreme Court ruled in favor of the respondents. There was no
sufficient evidence indicating that the business was suffering serious
business losses before its closure. Therefore, they are obligated to pay
their employees separation pay. Furthermore, the business failed to comply
with the notice requirement, as provided by Art. 283 of the Labor Code.
Thus, the court ruled that the respondents are entitled to separation pay
and was granted nominal damages.

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