SMART COMMUNICATIONS, INC. v. REGINA M.

ASTORGA
G.R. No. 148132, January 28, 2008, NACHURA, J.
An employer may adopt a new policy, such as authorized cause dismissal on
the ground of redundancy, for a more effective management even if it is not
suffering financial losses.
FACTS:
SMART launched an organizational realignment. It also entered into a joint
venture agreement with NTT of Japan, and formed SMART-NTT Multimedia,
Incorporated (SNMI). Consequently, the Corporate Sales Marketing Group/ Fixed
Services Division (CSMG/FSD), where Respondent Regina Astorga is employed, was
abolished. Since Smart did not recommend Astorga, she was not absorbed by SNMI.
Despite the abolition Astorga continued reporting for work. However, SMART later
issued a memorandum advising Astorga of the termination of her employment on
ground of redundancy.
ISSUE:
Whether Regina Astorga was illegally dismissed?
RULING:
NO. An employer is not precluded from adopting a new policy conducive to a
more economical and effective management even if it is not experiencing economic
reverses. The law does not require that the employer should suffer financial losses
before he can terminate the services of the employee on the ground of redundancy.
While tilting the scales of justice in favor of workers, the fundamental law also
guarantees the right of the employer to reasonable returns for his investment. In
this light, we must acknowledge the prerogative of the employer to adopt such
measures as will promote greater efficiency, reduce overhead costs and enhance
prospects of economic gains, albeit always within the framework of existing laws.
SMART failed to comply with the mandated one month notice prior to
termination. However, this procedural infirmity would not render the termination of
Astorgas employment illegal. The validity of termination can exist independently of
the procedural infirmity of the dismissal.