Almodiel VS NLRC

GR No. 100641, June 14, 1993

FACTS
Petitioner is a CPA hired as Cost Accounting Manager of Respondent Raytheon Philippines, Inc.
As such, his major duties were (1 plan, coordinate, and carry out year!end physical in"entory#
($ formulate and issue out hard copies of standard product costing and other cost%pricing
analysis if needed and re&uired# and set up the written cost accounting system for the whole
company. 'owe"er, when the standard cost accounting system for Raytheon plans worldwide
was adopted and installed in the Philippine operations, the ser"ices of the petitioner was reduced
to only the su(mission of period reports that would use computeri)ed forms prescri(ed and
designed (y the international head office of the company in California, *+A.
,n -anuary $., 1/0/, petitioner was told of the a(olition of his position on the ground of
redundance. 'e was constrained to file the complaint for illegal dismissal after his re&uest to
ha"e him transferred to another department was denied. 'e also alleged that the functions of his
position were a(sor(ed (y the Payroll%MI+%1inance 2epartment which is headed (y a resident
alien without wor3ing permit from the 2,45.
6he 74RC ruled for Raytheon and directed the latter to pay the petitioner P188,888.88 as
separation pay.
'ence, this petition.
ISSUE
9,7 the termination of the petitioner on the ground of redundancy was tainted with malice, (ad
faith and irregularity
EL!
An employer has no legal o(ligation to 3eep more employees that are necessary for the operation
of the (usiness. Considering further that petitioner held a managerial position, Raytheon had a
(road latitude of discretion in a(olishing the position. 6he reason o("iously is that officers in
such 3ey positions perform not only functions which (y nature re&uire the employer:s full trust
and confidence (ut also functions that spell the success or failure of an enterprise.
4i3ewise destitute of merit is petitioner:s imputation of unlawful discrimination when Raytheon
caused corollary functions appertaining to cost accounting to (e a(sor(ed (y a resident alien
without wor3ing permit. Article ;8 of the 4a(or Code which re&uires employment permit refers
to non!resident aliens.