GONZALES and EDITHA YAP
January 24, 2000
Facts: Algon Engineering Construction Corp. is engaged with the government in doing road construction. Between the years 1968 to 1989, the company employed the petitioners. In 1989, the company’s workers
joined petitioner union as members. When the union filed a petition for certification election with the Labor Department, the company opposed the petition. The company claims that the workers were project employees and therefore not qualified to form part of the rank and file collective bargaining unit. The petition for certification election was then dismissed. After making an appeal, the Secretary of Labor and Employment ruled in favour of the union and reversed the earlier decision and ordered the immediate holding of a certification election.
Meanwhile, the national president of petitioner union sent a demand letter to respondent company, seeking the payment of wage differentials to some affected union members. Petitioner union and the concerned workers filed a complaint for payment of wage differentials and other benefits before the Department of Labor and Employment. Subsequently, the workers, whose contracts have expred after the completion of four projects, were terminated by the company. The terminated employees, however, claim that their dismissal was due to their participation in the union activities.
Both the Labor Arbiter and National Labor Relations Commission ruled that the union’s strike was illegal and their termination was valid. The aggrived workers filed with the Regional Arbitration Branch of the National Labor Relations Commission their individual complaints against private respondent. The Labor Arbiter decided that there was indeed an illegal dismissal, but was not entitled to the awards prayed for. Both parties sought appeal to the National Labor Relations Commission which modified the earlier decision. It held that the labor arbiter erred in not resolving the issue of underpayment of wages because not all of the original complainants filed the same money claims with the labor department. Thus, it awarded monetary benefits to qualified workers
Issue: Whether or not petitioners are regular employees.
Held: No. Regular employees are those who have been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer even if the parties enter into an agreement stating otherwise. In contrast, project employees are those whose employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee, or where the work or services to be performed is seasonal in nature and the employment is for the duration of the season.
The contracts of employment of the petitioners attest to the fact that they had been hired for specific projects, and their employment was coterminous with the completion of the project for which they had been hired. Said contracts expressly provide that the workers' tenure of employment would depend on the duration of any phase of the project or the completion of the awarded government construction projects in any of
their planned phases. Further, petitioners were informed in advance that said project or undertaking for which they were hired would end on a stated or determinable date. Besides, public respondent noted that respondent company regularly submitted reports of termination of services of project workers to the regional office of the labor department as required under Policy Instruction No. 20. This compliance with the reportorial requirement confirms that petitioners were project employees. Considering that petitioners were project employees, whose nature of employment they were fully informed about, at the time of their engagement, related to a specific project, work or undertaking, their employment legally ended upon completion of said project. The termination of their employment could not be regarded as illegal dismissal.
ABS-CBN Broadcasting Corp. vs. Nazareno G.R. No. 164156
ABS-CBN BROADCASTING CORPORATION vs.
MARLYN NAZARENO, MERLOU GERZON, JENNIFER DEIPARINE, and JOSEPHINE LERASAN
September 26, 2006
Facts: ABS-CBN employed respondents Nazareno, Gezon, Deiparine, and Lerasan as production assistants (PAS) on different dates. They were assigned at the news and public affairs, for various radio programs in the Cebu Broadcasting Station, with a monthly compensation of P4, 000. They were issued ABS-CBN employees’ identification cards and were required to work for a minimum of eight hours a day, including Sundays and holidays. The respondents filed a Complaint for Recognition of Regular Employment Status. They insisted that they belonged to a work pool from which ABS CBN chose persons to be given specific assignments at its discretion, and were thus under it direct supervision and control regardless of nomenclature.
For its part, ABS-CBN alleged in its position paper that the respondents were Pas who basically assists in the conduct of a particular program ran by an anchor or talent. They are considered in the industry as “program employees” in that, as distinguished from regular or station employees, they are basically engaged by the station for a particular or specific program broadcasted by the radio station. The Labor Arbiter ruled that the respondents were regular employees. The NLRC ruled that respondents were entitled to the benefits under the CBA because they were regular employees who contributed to the profits of ABS-CBN through their labor. The Court of Appeals ruled that respondents are not mere project employees, but regular employees who perform tasks necessary and
desirable in the usual trade of petitioner and not just its project employees.
Issue: Whether or not respondents are regular employees of ABS-CBN. Held: The respondents are regular employees of ABS-CBN. The fact that respondents received pre-agreed “talent fees” instead of salaries, that they did not observe the required office hours, and that they were permitted to join other productions during their free time are not conclusive of the nature of employment. Respondents cannot be considered talents because they are not actors or actresses or radio specialists or mere clerks or utility employees. They are regular employees who perform several different duties under the control and direction of ABS-CBN executives and supervisors.
In Universal Robina Corporation v. Catapang, the Court reiterated the test in determining whether one is a regular employee: The primary standard, therefore, of determining regular employment is the reasonable connection between the particular activity performed by the employee in relation to the usual trade or business of the employer. The test is whether the former is usually necessary or desirable in the usual business or trade of the employer. The connection can be determined by considering the nature of work performed and its relation to the scheme of the particular business or trade in its entirety. Also, if the employee has been performing the job for at least a year, even if the performance is not continuous and merely intermittent, the law deems repeated and continuing need for its performance as sufficient evidence of the necessity if not indispensability of that activity to the business. Hence, the employment is considered regular, but only with respect to such activity and while such activity exist. Brent School, Inc. vs. Zamora
G.R. No. L-48494
BRENT SCHOOL, INC., and REV. GABRIEL DIMACHE vs.
RONALDO ZAMORA, the Presidential Assistant for Legal Affairs, Office of the President, and DOROTEO R. ALEGRE
February 5, 1990
Facts: Doroteo R. Alegre was engaged as athletic director by Brent School, Inc. at a yearly compensation of P20,000.00. The contract fixed a specific term for its existence, five years from July 18, 1971 to July 17, 1976. Subsequent subsidiary reiterated the same terms and conditions, including the expiry date, as those contained in the original contract of July 18, 1971. Some three months before the expiration of the stipulated period, Alegre was given a copy of the report filed by Brent School with the Department of Labor advising of the termination of his services
effective on July 16, 1976. The stated ground for the termination was "completion of contract, expiration of the definite period of employment." A month or so later, Alegre accepted the amount of P3,177.71, and signed a receipt therefor containing the phrase, "in full payment of services for the period May 16, to July 17, 1976 as full payment of contract." However, at the investigation conducted by a Labor Conciliator of said report of termination of his services, Alegre, protested the announced termination of his employment. He argued that although his contract did stipulate that the same would terminate on July 17, 1976, since his services were necessary and desirable in the usual business of his employer, and his employment had lasted for five years, he had acquired the status of a regular employee and could not be removed except for valid cause. The Regional Director considered Brent School's report as an application for clearance to terminate employment (not a report of termination), and accepting the recommendation of the Labor Conciliator, refused to give such clearance and instead required the reinstatement of Alegre, as a "permanent employee," to his former position without loss of seniority rights and with full back wages. The Director pronounced "the ground relied upon by the Brent in terminating the services of Alegre . . . (as) not sanctioned by P.D. 442," as prohibited by Circular No. 8, series of 1969, of the Bureau of Private Schools. Brent School filed a motion for reconsideration. The Regional Director denied the motion and forwarded the case to the Secretary of Labor for review. The latter sustained the ruling of the Regional Director. Brent appealed to the Office of the President but it was rebuffed. That Office dismissed its appeal for lack of merit and affirmed the Labor Secretary's decision, ruling that Alegre was a permanent employee who could not be dismissed except for just cause, and expiration of the employment contract was not one of the just causes provided in the Labor Code for termination of services. Hence this petition by Brent.
Issue: Whether or not the termination of Alegre’s contract of employment was valid.
Held: Alegre’s contract of employment was lawfully terminated by reason of expiration of agreed term of period. Alegre's employment was terminated upon the expiration of his last contract with Brent School on July 16, 1976 without the necessity of any notice. The advance written advice given the Department of Labor with copy to said petitioner was a mere reminder of the impending expiration of his contract, not a letter of termination, nor an application for clearance to terminate which needed the approval of the Department of Labor to make the termination of his services effective. In any case, such clearance should properly have been given, not denied. When the employment contract was signed between Brent School and Alegre on July18, 1971, it was perfectly legitimate for them to include in it a stipulation fixing the duration thereof. Stipulations for a term were explicitly recognized as valid by the SC. In Biboso v. Victorias Milling Co., Inc., which involved teachers in a private school as regards whom, the following pronouncement was made: "What is decisive
is that petitioners (teachers) were well aware all the time that their tenure was for a limited duration. Upon its termination, both parties to the employment relationship were free to renew it or to let it lapse."
The employment contract between Brent School and Alegre was executed on July 18, 1971, at a time when the Labor Code of the Philippines (P.D. 442) had not yet been promulgated. Indeed, the Code did not come into effect until November 1, 1974, some three years after the perfection of the employment contract, and rights and obligations thereunder had arisen and been mutually observed and enforced. At that time, i.e., before the advent of the Labor Code, there was no doubt whatever about the validity of term employment. It was impliedly but nonetheless clearly recognized by the Termination Pay Law, R.A. 1052, as amended by R.A. 1787. Basically, this statute provided that— in cases of employment, without a definite period, in a commercial, industrial, or agricultural establishment or enterprise, the employer or the employee may terminate at any time the employment with just cause; or without just cause in the case of an employee by serving written notice on the employer at least one month in advance, or in the case of an employer, by serving such notice to the employee at least one month in advance or one-half month for every year of service of the employee, whichever is longer, a fraction of at least six months being considered as one whole year.
The employer, upon whom no such notice was served in case of termination of employment without just cause, may hold the employee liable for damages.
The employee, upon whom no such notice was served in case of termination of employment without just cause, shall be entitled to compensation from the date of termination of his employment in an amount equivalent to his salaries or wages corresponding to the required period of notice.
Art. 280. Regular and casual employment. The provisions of written agreement to the contrary notwithstanding and regardless of the oral agreement of the parties, an employment shall be deemed to be regular where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the work or service to be performed is seasonal in nature and the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any employee who has rendered at least one year of service, whether such service is continuous or broken, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.
There can of course be no quarrel with the proposition that where from the circumstances it is apparent that periods have been imposed to preclude acquisition of tenurial security by the employee, they should be struck down or disregarded as contrary to public policy, morals, etc. But where no such intent to circumvent the law is shown, or stated otherwise, where the reason for the law does not exist. Accordingly, and since the entire purpose behind the development of legislation culminating in the present Article 280 of the Labor Code clearly appears to have been, as already observed, to prevent circumvention of the employee's right to be secure in his tenure, the clause in said article indiscriminately and completely ruling out all written or oral agreements conflicting with the concept of regular employment as defined therein should be construed to refer to the substantive evil that the Code itself has singled out: agreements entered into precisely to circumvent security of tenure.
It should have no application to instances where a fixed period of employment was agreed upon knowingly and voluntarily by the parties, without any force, duress or improper pressure being brought to bear upon the employee and absent any other circumstances vitiating his consent, or where it satisfactorily appears that the employer and employee dealt with each other on more or less equal terms with no moral dominance whatever being exercised by the former over the latter.
Columbus Philippines Bus Corp. vs. NLRC G.R. Nos. 114858-59
COLUMBUS PHILIPPINES BUS CORPORATION vs.
NATIONAL LABOR RELATIONS COMMISSION, ZENAIDA DOMASIG