5/3/2021 E-Library - Information At Your Fingertips: Printer Friendly Thus, even on the assumption that asthma is a serious illness, this again would not excuse CATHAY from ignoring procedure specified in its employment contract with Singson. Under the contract, Cathay must first allow Singson to take a leave of absence and not to terminate her services right there and then. It is only after the employee has enjoyed four (4) months of sick leave that the option to retire the employee based on medical ground arises. In the instant case, Singson went to the company clinic on 29 August 1991. On 3 September 1991 she returned to the company clinic only to be told that "effective immediately" she was dismissed on medical grounds. We agree with the Court of Appeals in its award of moral and exemplary damages to respondent. CATHAY summarily dismissed Singson from the service based only on the recommendation of its medical officers, in effect, failing to observe the provision of the Labor Code which requires a certification by a competent public health authority. Notably, the decision to dismiss Singson was reached after a single examination only. CATHAY's medical officers recommended Singson's dismissal even after having diagnosed her condition to have vastly improved. It did not make even a token offer for Singson to take a leave of absence as what it provided in its Contract of Service. CATHAY is presumed to know the law and the stipulation in its Contract of Service with Singson. WHEREFORE, the Decision of the Court of Appeals dated 20 September 1999 declaring the dismissal of respondent Martha Z. Singson by petitioner CATHAY PACIFIC AIRWAYS, LTD. as illegal and ordering her reinstatement to her former or an equivalent position without loss of seniority rights, with full back wages and benefits, and to pay her HK$500.00 as moral damages, HK$500.00 as exemplary damages plus ten percent (10%) of the total monetary award as attorney's fees, is AFFIRMED. The amounts received by respondent representing her six (6) months retirement gratuity and one (1) month pay in lieu of notice should be DEDUCTED from respondent's computed back wages, with costs against petitioner. SO ORDERED. Mendoza, (Acting Chairman), Quisumbing, and De Leon, Jr., JJ., concur. Buena, J., abroad on official business. [1] Decision penned by Associate Justice Jose L. Sabio, Jr., concurred in by Associate Justices Hector L. Hofileña and Omar U. Amin, Fifteenth Division. [2] SC Resolution dated 29 May 1996. [3] SC Resolution dated 25 January 1999. [4] Decision penned by Commissioner Rogelio I. Rayala and concurred in by Presiding https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/52565 5/6