1. Abella v NLRC, GR No.

168584 October 13, 2007

Facts: Ricardo Dionele (private respondent) has been a regular employee (farm worker) since 1949 in
Hacienda Ramona, Negros Occidental. Said farm land was leased to Rosalina Abella for a period of 10
years. Upon the expiration of her leasehood rights, petitioner dismissed Ricardo as a co-employee.

Private respondents files a complaint against the petitioner at the ministry of Labor and
Employment for overtime pay, illegal dismissal and reinstatement with back wages. The Labor Arbiter
ruled that the dismissal is warranted by the cessation of business, but granted the private respondents
separation pay.

ISSUE: Whether or not private respondents are entitled of seaparation pay.

HELD: Yes. Article 284. Closure of Establishment and Reduction of Personnel. There is no question that
Art. 284 of the Labor Code as amended by BP 130 is the law applicable to the case. The purpose of Art.
284 is the protection of the workers whose employment is terminated because of closure of
establishment and reduction of personnel. Without the law, employees like private respondents in the
case at bar will lose the benefits to which they are entitled. Although they were absorbed by the new
management of the hacienda, in the absence of showing that the latter has assured the responsibilities
of the former employer, they will be considered as new employees and the years of service behind them
would amount to nothing.