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Enrique Salafranca Vs Philamlife

Salafranca was hired in 1981 to manage the day-to-day activities of the Philamlife Village Homeowners Association, Inc. (PVHAI). His contract was renewed multiple times until 1983 and he continued working without a renewed contract thereafter. In 1987, PVHAI amended its by-laws to state that the administrative officer's tenure would be co-terminus with the appointing Board of Directors. In 1992, the Board's tenure expired and Salafranca was terminated. The court held that Salafranca's termination was illegal because he already had security of tenure as a regular employee prior to the by-law amendment, which could not impair his existing rights.

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291 views1 page

Enrique Salafranca Vs Philamlife

Salafranca was hired in 1981 to manage the day-to-day activities of the Philamlife Village Homeowners Association, Inc. (PVHAI). His contract was renewed multiple times until 1983 and he continued working without a renewed contract thereafter. In 1987, PVHAI amended its by-laws to state that the administrative officer's tenure would be co-terminus with the appointing Board of Directors. In 1992, the Board's tenure expired and Salafranca was terminated. The court held that Salafranca's termination was illegal because he already had security of tenure as a regular employee prior to the by-law amendment, which could not impair his existing rights.

Uploaded by

Pipoy Reglos
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

Enrique Salafranca vs Philamlife

(Pamplona) Village Homeowners


Association, Inc.
January 14, 2013

300 SCRA 469 – Business Organization – Corporation Law – By-Laws Must Not Impair
Existing Rights
In 1981, Enrique Salafranca was hired as an administrative officer by the Philamlife Village
Homeowners Associaiton, Inc. (PVHAI). Salafranca was tasked to manage the village’s day
to day activities. His employment was originally for 6 months only but his contract was
renewed multiple times until 1983. But even after 1983, he was still allowed to continue
work even without a renewed contract. In 1987, PVHAI amended its by-laws. Among the
amendment was a provision that the administrative officer (Salafranca) shall have a tenure
which is co-terminus with the Board of Directors which appointed him. In 1992, the tenure
of said Board of Directors expired and so Salafranca was terminated.
ISSUE: Whether or not Salafranca was illegally dismissed.
HELD: Yes. At that time, Salafranca already enjoys security of tenure because he is already
a regular employee. It is true that PVHAI has the right to amend its by-laws but such
amendment must not impair existing contracts or rights. In this case, the provision that
Salafranca’s position shall be co-terminus with the appointing Board impairs his right to
security of tenure which has already vested even prior to the amendment of the by-laws in
1987.

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