GREGORIO v CA
FACTS
Ordinance no.49 was approved by the city of La Carlota, abolishing the positions held by petitioners and company, resulting to the termination of their employment. Petitioners claim that their termination was done in bad faith.
ISSUE
Whether or not the termination was done in bad faith.
HELD
NO. it was not done in bad faith. The city had an outstanding credit of P997, 729.19, while the remaining available balance is P224.01 in cash, and P4,858.13 in credit. It’s loan of P120,000 to pay salaries was even denied because it still had a loan balance of P150,000. To top it off, It has other monetary obligations amounting to almost P300,000. The lay-off was in response to the recommendation of the city auditor, and these positions were never restored or recreated, nor the other employees retained or reappointed. It therefore cannot be said that it was politically motivated or done in bad faith.
