LSaF

Question

Preston Salon and Spa (PSS) hired Nixon as a senior stylist in its Manila branch. Nixon signed an employment contract which provides that "employees shall not engage in or set up within the same locality a business similar or related to the company during their course of employment and for a period of one year after their tenure." Thereafter, PSS received information that Nixon assisted his sister in establishing a new salon in Manila. Nixon admitted lending PHP 300,000.00 to his sister as capital and that he shall be entitled to 10% yearly profits of the new salon. Nixon also referred two former PSS employees as applicants to the new salon. After the required notices, PSS dismissed Nixon for violation of his employment contract. Is Nixon's dismissal valid? Explain. (2024 BAR)

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