Signed Job Offer Already Forms Employer-Employee Relationship, Says Supreme Court

In a landmark ruling, the Supreme Court of the Philippines emphasized that a signed job offer signifies the start of an employer-employee relationship, even before the employee officially starts work. This reiteration sets a critical precedent for both employers and employees in understanding their rights and obligations once a job offer is accepted.

The Case: Aragones v. Alltech Biotechnology Corporation

In G.R. No. 251736, the Court ruled in favor of Paolo Landayan Aragones, who accepted a position as Swine Technical Manager - Pacific with Alltech Biotechnology Corporation at a monthly salary of PHP 140,000. Aragones had already resigned from his previous job in anticipation of joining Alltech.

However, before his start date, Alltech informed him that the position had been abolished due to global restructuring, and offered a one-time goodwill payment of PHP 140,000. Aragones then filed a case for illegal dismissal.

Supreme Court’s Findings

The Supreme Court found that:

• The job offer, once accepted, created a binding employer-employee relationship.

• The employer cannot terminate an employee based on redundancy without clear and convincing proof of an established redundancy program.

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Alltech submitted only an affidavit from its Vice President to justify the restructuring, stating a shift from regional to local support. The Court deemed the explanation vague and unsubstantiated, failing to show how or why specific positions like Aragones’ were affected.

The Decision

The Court ruled that Alltech illegally dismissed Aragones and ordered the company to pay him backwages and separation pay.

This decision serves as a reminder to employers to be mindful of the legal weight a signed job offer carries and to observe due process when terminating employees based on redundancy or other similar grounds.

📚 Further Reading

• Read the full text of the Press Release

• Read the full Supreme Court Decision