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    Duncan Association V Glaxo

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    Lovell Jay Antipuesto
    The Supreme Court upheld the validity of an employment contract provision that prohibited employees from marrying employees of competitor companies. The Court ruled that the employer's policy was a reasonable exercise of management prerogative to protect trade secrets and confidential information. While laws aim to protect workers, management also has rights to establish policies that safeguard a company's economic interests and competitive advantage in industries like pharmaceuticals. The dismissal of the plaintiff based on violating this contractual provision was deemed a valid exercise of the employer's interests.

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    Duncan Association V Glaxo

    Uploaded by

    Lovell Jay Antipuesto
    22 views2 pages
    The Supreme Court upheld the validity of an employment contract provision that prohibited employees from marrying employees of competitor companies. The Court ruled that the employer's policy was a reasonable exercise of management prerogative to protect trade secrets and confidential information. While laws aim to protect workers, management also has rights to establish policies that safeguard a company's economic interests and competitive advantage in industries like pharmaceuticals. The dismissal of the plaintiff based on violating this contractual provision was deemed a valid exercise of the employer's interests.

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    Duncan Association v Glaxo

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    The Supreme Court upheld the validity of an employment contract provision that prohibited employees from marrying employees of competitor companies. The Court ruled that the employer's policy was a reasonable exercise of management prerogative to protect trade secrets and confidential information. While laws aim to protect workers, management also has rights to establish policies that safeguard a company's economic interests and competitive advantage in industries like pharmaceuticals. The dismissal of the plaintiff based on violating this contractual provision was deemed a valid exercise of the employer's interests.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    22 views2 pages

    Duncan Association V Glaxo

    Uploaded by

    Lovell Jay Antipuesto
    The Supreme Court upheld the validity of an employment contract provision that prohibited employees from marrying employees of competitor companies. The Court ruled that the employer's policy was a reasonable exercise of management prerogative to protect trade secrets and confidential information. While laws aim to protect workers, management also has rights to establish policies that safeguard a company's economic interests and competitive advantage in industries like pharmaceuticals. The dismissal of the plaintiff based on violating this contractual provision was deemed a valid exercise of the employer's interests.

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    Duncan Association of Detailman-PTGWO v.

    Glaxo Welcome
    Philippines, Inc. (G.R. No. 162994; September 17, 2004)

    In this case, the prohibition against marriage embodied in the following


    stipulation in the employment contract was held as valid:

    “10. You agree to disclose to management any existing or future


    relationship you may have, either by consanguinity or affinity with
    co-employees or employees of competing drug companies. Should
    it pose a possible conflict of interest in management discretion, you
    agree to resign voluntarily from the Company as a matter of
    Company policy.”

    The Supreme Court ruled that the dismissal based on this


    stipulation in the employment contract is a valid exercise of management
    prerogative. The prohibition against personal or marital relationships
    with employees of competitor companies upon its employees was held
    reasonable under the circumstances because relationships of that nature
    might compromise the interests of the company. In laying down the
    assailed company policy, the employer only aims to protect its interests
    against the possibility that a competitor company will gain access to its
    secrets and procedures.

    Below the Supreme Court is quoted:

    No reversible error can be ascribed to the Court of Appeals when it


    ruled that Glaxos policy prohibiting an employee from having a
    relationship with an employee of a competitor company is a valid
    exercise of management prerogative.

    Glaxo has a right to guard its trade secrets, manufacturing


    formulas, marketing strategies and other confidential programs and
    information from competitors, especially so that it and Astra are rival
    companies in the highly competitive pharmaceutical industry.
    The prohibition against personal or marital relationships with
    employees of competitor companies upon Glaxos employees is
    reasonable under the circumstances because relationships of that nature
    might compromise the interests of the company. In laying down the
    assailed company policy, Glaxo only aims to protect its interests against
    the possibility that a competitor company will gain access to its secrets
    and procedures.

    That Glaxo possesses the right to protect its economic interests


    cannot be denied. No less than the Constitution recognizes the right of
    enterprises to adopt and enforce such a policy to protect its right to
    reasonable returns on investments and to expansion and growth. Indeed,
    while our laws endeavor to give life to the constitutional policy on social
    justice and the protection of labor, it does not mean that every labor
    dispute will be decided in favor of the workers. The law also recognizes
    that management has rights which are also entitled to respect and
    enforcement in the interest of fair play.

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