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Pharmacia andUPJOHN Inc. (Now Pfizer Phils. Inc.) Vs Albayda Jr.

1) Ricardo Albayda Jr. was an employee of Upjohn Inc. from 1978 until 1996 when Pharmacia and Upjohn merged. In 1999, he was reassigned from Western Visayas to Northern Mindanao as District Sales Manager. 2) Albayda refused the transfer and took sick leave. Pharmacia terminated him for being absent without official leave. 3) The Supreme Court ruled that Pharmacia followed due process in terminating Albayda and validly exercised their management prerogative to transfer employees. The transfer did not involve demotion, reduction in pay or benefits, and was not discriminatory or made in bad faith.

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Ambra Kaye Ariola
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105 views2 pages

Pharmacia andUPJOHN Inc. (Now Pfizer Phils. Inc.) Vs Albayda Jr.

1) Ricardo Albayda Jr. was an employee of Upjohn Inc. from 1978 until 1996 when Pharmacia and Upjohn merged. In 1999, he was reassigned from Western Visayas to Northern Mindanao as District Sales Manager. 2) Albayda refused the transfer and took sick leave. Pharmacia terminated him for being absent without official leave. 3) The Supreme Court ruled that Pharmacia followed due process in terminating Albayda and validly exercised their management prerogative to transfer employees. The transfer did not involve demotion, reduction in pay or benefits, and was not discriminatory or made in bad faith.

Uploaded by

Ambra Kaye Ariola
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Caption:

Title of the case: Pharmacia and UPJOHN Inc. (now Pfizer Phils. Inc.) vs Albayda Jr.
Citation: G.R. No. 172724
Date Promulgated: August 23, 2010
Respondents: Ricardo P. Albayda, Jr.
Petitioners: Pharmacia and UPHOHN Inc.
Ponente: Justice Diosdado Peralta Jr.

Facts:

Ricardo P. Albayda, Jr., respondent, was an employee of Upjohn, Inc. in 1978 and continued
working there until 1996 when a merger between Pharmacia and Upjohn was created. After the
merger, respondent was designated by petitioner Pharmacia and Upjohn (Pharmacia) as District
Sales Manager assigned to District XI in the Western Visayas area.

On December 1999, Albayada received a Memorandum which stated his reassignment in District
XII in Northern Mindanao area as District Sales Manager.

On December 27, 1999, respondent wrote a letter to the Pharmacia’s Vide-President for Sales
and Marketing, Felicito M. Garcia, questioning his reassignment. In his letter he concluded that
the transfer was an excuse for the manager to dismiss him in his employment. His refusal was
also due to the fact that he will be dislocated from his family. As response, on January 10, 2000,
Garcia wrote a letter denying the respondent’s request. He indicated that the purpose of the
transfer is to maximize business opportunities and growth and development of personnel.

On February 16, 2000, respondent wrote to Aleda Chu, Pharmacia's National Sales and External
Business Manager, stating his request to be assigned to the Wester Visayas area. Albayada
alleged that during one conversation, Chu told him that as long as he hits the sales target of
100%, he would not be transferred. In response, on March 3, 2000, Chu wrote in a letter denying
the previous claim of the respondent. Chu further explained that they need him to move to
Cagayan de Oro City as they are in need of the respondent’s expertise to build the business there.
On May 11, 2000, Pharmacia's Human Resource Manager, Jane B. Montilla, notified respondent
that since he has been on sick leave since January 5, 2000 up to the present, he had already
consumed all his sick leave credits for the year 2000.

On June 15, 2000, Montilla stated that the respondent is entitled Relocation Benefits and
Allowance pursuant to the company's Benefits Manual. Montilla directed respondent to report
for work in Manila within 5 working days from receipt of the memorandum.

The respondent did not give a response. The company sent Albayada a memorandum dated June
26, 2000, ordering him to report for work within 5 days from receipt, failure of which will cause
him termination on the basis of being absent without official leave (AWOL).

On July 13, 2000, the company sent him a memorandum notifying him on their decision to
terminate his services on the basis of absence without official leave (AWOL) and
insubordination.

On August 14, 2000, the respondent filed a complaint to the NLRC against Pharmacia, Chu,
Montilla and Garcia for constructive dismissal.

Issues:
1) Whether or not the termination of the respondent was legal
2) Whether or not Pharmacia and UPJOHN Inc. validly exercised their right to management
prerogative

Ruling:
1) The company accorded to the due process of law by following the twin requirement of notice
and hearing. Hence, the termination of the respondent is legal.
3) The transfer or reassignment of an employee is valid provided that, there is no demotion in
rank or diminution of salary, benefits, and other privileges, and the action is not motivated by
discrimination, made in bad faith, or effected as a form of punishment or demotion without
sufficient cause. The reassignment of the respondent was determined validly as it not
unreasonable, inconvenient or prejudicial. Hence, Pharmacia and UPJOHN Inc. validly
exercised their right to management prerogative. The petition is partially granted.

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