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SUNDOWNER DEVELOPMENT CORPORATION v. FRANKLIN M. DRILON

This case has been cited 2 times or more.

2010-08-10
LEONARDO-DE CASTRO, J.
The rule is that unless expressly assumed, labor contracts such as employment contracts and collective bargaining agreements are not enforceable against a transferee of an enterprise, labor contracts being in personam, thus binding only between the parties.  A labor contract merely creates an action in personam and does not create any real right which should be respected by third parties.  This conclusion draws its force from the right of an employer to select his employees and to decide when to engage them as protected under our Constitution, and the same can only be restricted by law through the exercise of the police power.[28]
2010-08-10
LEONARDO-DE CASTRO, J.
With the foregoing ruling from this Court, necessarily, the alternative prayer of the petitioner to require the individual respondents to become members or if they refuse, for this Court to direct respondent BPI to dismiss them, follows.[15]