Caltex vs. Philippine Labor OrganizationMay 27, 1959 No. L-9915Unreported CasesPonente: Paras, C.J.Facts:Hipdion del Rosario was hired by Caltex as labourer in its Pandacan Terminal. After twomonths he was suspended for insubordination. Caltex filed a petition with the Industrial Courtfor authority to dismiss him. After hearing, the court found del Rosario guilty of the actscomplained of but believing that a permanent dismissal was to severe a punishment, the courtordered his reinstatement with payment of backwages.Caltex claims that the court committed a serious mistake of law and grave abuse ofdiscretion in compelling it to retain del Rosario in its employ and in substituting its judgment indetermining the fitness and qualification of a temporary employee to become permanent orregular.Issues:Whether or not del Rosario’s discharge was proper. Whether or not the court has a right to substitute Caltex’s judgment in determining the fitnessand qualification of a temporary employee.Held:Del Rosario’s discharge was proper. The acts of insubordination for which del Rosario wasfound guilty consist of disorderly conduct and wilful disobedience which to note was committedin a very short period of two months from the time of his hiring. Wilful disobedience is a justifiable ground for an employee’s discharge. Considering the period of time that del Rosario had been working for petitioner (Caltex) beforehis suspension, it can be said that he was on temporary or trial basis. Caltex has the right toplace him under this condition to determine his fitness and competency.