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G.R. No. L-47300 April 19, 1989 GODOFREDO S.


LABOR and LOVSTED & CO., INC., respondents.
Article 1711 of the new civil code
Owners of enterprises and other employers are obliged to pay compensation for the death of or
injuries to their laborers, workmen, mechanics or other employees even though the event may have
been purely accidental or entirely due to fortuitous cause, if the death or personal injury arose out of
and in the course of employment. The employer is also liable for compensation if the employee
contracts any illness or disease caused by such employment or as the result of the nature of the
employment. If the mishap was due to the employees own notorious negligence, or voluntary act, or
drunkenness, the employer shall not be liable for the compensation. When the employees lack of due
care contributed this death or injury, the compensation shall be equitably reduced.
(actual or compensatory damages)
Note: The indemnity may partake of the form of actual, moral, nominal, temperate, liquidated or
exemplary damages, as the case may be depending on the factual milieu of the case and considering the
criterion for the award of these damages as outlined by our jurisprudence.

Art. 284. Disease as ground for termination. An employer may terminate the services of an employee
who has been found to be suffering from any disease and whose continued employment is prohibited by
law or is prejudicial to his health as well as to the health of his co-employees: Provided, That he is paid
separation pay equivalent to at least one (1) month salary or to one-half (1/2) month salary for every
year of service, whichever is greater, a fraction of at least six (6) months being considered as one (1)
whole year.
G.R. No. 164820 December 8, 2008 VICTORY LINER, INC., petitioner, vs. PABLO RACE, respondent.
An employer may not be compelled to continue to employ such persons whose continuance in
the service will patently be inimical to his interests. Therefore, in lieu of reinstatement, payment to
respondent of separation pay equivalent to one month pay for every year of service and limited back
(The Labor Code mandates that before an employer may legally dismiss an employee from the
service, the requirement of substantial and procedural due process must be complied with.)
U-BIX CORPORATION, Petitioner, - versus -RICHEL BANDIOLA, Respondent.