FIRST DIVISION

[G. R. No. 120077. October 13, 2000]

THE MANILA HOTEL CORP. AND MANILA HOTEL INTL.
LTD. petitioners, vs. NATIONAL LABOR
RELATION COMMIION, ARBITER CE!ERINA ".
DIOANA AND MARCELO G.
ANTO, respondents.
D E C I I O N
PARDO, J.#
The case before the Court is a petition
for certiorari
[1]
to annul the following orers of the
National !abor Relations Co""ission #hereinafter
referre to as $N!RC%& for ha'ing been issue without
or with e(cess )urisiction an with gra'e abuse of
iscretion*
[+]
#1& Or$er o% M&' 31, 1((3,
[-]
Re'ersing an
setting asie its earlier resolution of .ugust +/0 111+,
[2]
The 3uestione orer eclare that the N!RC0 not
the 4hilippine O'erseas 5"plo6"ent ."inistration
#hereinafter referre to as $4O5.%&0 ha )urisiction
o'er pri'ate responent7s co"plaint8
#+& Dec)*)o+ o% Dece,ber 1-, 1((.,
[9]
Directing
petitioners to )ointl6 an se'erall6 pa6 pri'ate
responent twel'e thousan an si( hunre ollars
#:S;1+0<==,==& representing salaries for the
une(pire portion of his contract8 three thousan si(
hunre ollars #:S;-0<==,==& as e(tra four "onths
salar6 for the two #+& 6ear perio of his contract0 three
thousan si( hunre ollars #:S;-0<==,==& as $12th
"onth pa6% or a total of nineteen thousan an eight
hunre ollars #:S;110/==,==& or its peso e3ui'alent
an attorne67s fees a"ounting to ten percent #1=>& of
the total awar8 an
#-& Or$er o% M&rc/ 30, 1((-,
[<]
Den6ing the
"otion for reconsieration of the petitioners,
In ?a60 11//0 pri'ate responent ?arcelo
Santos #hereinafter referre to as $Santos%& was an
o'erseas wor@er e"plo6e as a printer at the ?aAoon
4rinting 4ress0 Sultanate of O"an, Subse3uentl60 in
Bune 11//0 he was irectl6 hire b6 the 4alace Cotel0
Dei)ing0 4eople7s Republic of China an later
ter"inate ue to retrench"ent,
4etitioners are the ?anila Cotel Corporation
#hereinafter referre to as $?CC%& an the ?anila
Cotel International Co"pan60 !i"ite #hereinafter
referre to as $?CIC!%&,
Ehen the case was file in 111=0 ?CC was still
a go'ern"entFowne an controlle corporation ul6
organiAe an e(isting uner the laws of the
4hilippines,
?CIC! is a corporation ul6 organiAe an
e(isting uner the laws of Cong Gong,
[H]
?CC is an
$incorporator% of ?CIC!0 owning 9=> of its capital
stoc@,
[/]
D6 'irtue of a $"anage"ent agree"ent%
[1]
with
the 4alace Cotel #Eang Fu Co"pan6 !i"ite&0
?CIC!
[1=]
traine the personnel an staff of the 4alace
Cotel at Dei)ing0 China,
Now the facts,
During his e"plo6"ent with the ?aAoon 4rinting
4ress in the Sultanate of O"an0 responent Santos
recei'e a letter ate ?a6 +0 11// fro" ?r, Ierhar
R, Sh"it0 Ieneral ?anager0 4alace Cotel0 Dei)ing0
China, ?r, Sch"it infor"e responent Santos that
he was reco""ene b6 one Nestor Duenio0 a frien
of his,
?r, Sh"it offere responent Santos the sa"e
position as printer0 but with a higher "onthl6 salar6
an increase benefits, The position was slate to
open on October 10 11//,
[11]
On ?a6 /0 11//0 responent Santos wrote to ?r,
Sh"it an signifie his acceptance of the offer,
On ?a6 110 11//0 the 4alace Cotel ?anager0
?r, Cans B, Cen@ "aile a rea6 to sign e"plo6"ent
contract to responent Santos, ?r, Cen@ a'ise
responent Santos that if the contract was
acceptable0 to return the sa"e to ?r, Cen@ in ?anila0
together with his passport an two aitional pictures
for his 'isa to China,
On ?a6 -=0 11//0 responent Santos resigne
fro" the ?aAoon 4rinting 4ress0 effecti'e Bune -=0
11//0 uner the prete(t that he was neee at ho"e
to help with the fa"il67s pigger6 an poultr6 business,
On Bune 20 11//0 responent Santos wrote the
4alace Cotel an ac@nowlege ?r, Cen@7s
letter, Responent Santos enclose four #2& signe
copies of the e"plo6"ent contract #ate Bune 20
11//& an notifie the" that he was going to arri'e in
?anila uring the first wee@ of Bul6 11//,
The e"plo6"ent contract of Bune 20 11// state
that his e"plo6"ent woul co""ence Septe"ber 10
11// for a perio of two 6ears,
[1+]
It pro'ie for a
"onthl6 salar6 of nine hunre ollars #:S;1==,==&
net of ta(es0 pa6able fourteen #12& ti"es a 6ear,
[1-]
On Bune -=0 11//0 responent Santos was
ee"e resigne fro" the ?aAoon 4rinting 4ress,
On Bul6 10 11//0 responent Santos arri'e in
?anila,
On No'e"ber 90 11//0 responent Santos left
for Dei)ing0 China, Ce starte to wor@ at the 4alace
Cotel,
[12]
Subse3uentl60 responent Santos signe an
a"ene $e"plo6"ent agree"ent% with the 4alace
Cotel0 effecti'e No'e"ber 90 11//, In the contract0 ?r,
Sh"it represente the 4alace Cotel, The Vice
4resient #Operations an De'elop"ent& of petitioner
?CIC! ?iguel D, Cerguea signe the e"plo6"ent
agree"ent uner the wor $note%,
Fro" Bune / to +10 11/10 responent Santos
was in the 4hilippines on 'acation lea'e, Ce returne
to China an reassu"e his post on Bul6 1H0 11/1,
On Bul6 ++0 11/10 ?r, Sh"it7s 5(ecuti'e
Secretar60 a certain Boanna suggeste in a
hanwritten note that responent Santos be gi'en
one #1& "onth notice of his release fro" e"plo6"ent,
On .ugust 1=0 11/10 the 4alace Cotel infor"e
responent Santos b6 letter signe b6 ?r, Sh"it that
his e"plo6"ent at the 4alace Cotel print shop woul
be ter"inate ue to business re'erses brought about
b6 the political uphea'al in China,
[19]
Ee 3uote the
letter*
[1<]
After the unfortunate happenings in China and especially
Beijing (referring to Tiannamen Square incidents), our
business has been seerely affected! To reduce e"penses,
#e #ill not open$operate printshop for the time being!
%e sincerely regret that a decision li&e this has to be
made, but rest assured this does in no #ay reflect your past
performance #hich #e found up to our e"pectations!'
Should a turnaround in the business happen, #e #ill
contact you directly and gie you priority on future
assignment!'
On Septe"ber 90 11/10 the 4alace Cotel
ter"inate the e"plo6"ent of responent Santos an
pai all benefits ue hi"0 incluing his plane fare bac@
to the 4hilippines,
On October -0 11/10 responent Santos was
repatriate to the 4hilippines,
On October +20 11/10 responent Santos0
through his law6er0 .tt6, 5na'e wrote ?r, Sh"it0
e"aning full co"pensation pursuant to the
e"plo6"ent agree"ent,
On No'e"ber 110 11/10 ?r, Sh"it replie0 to
wit*
[1H]
(is serice #ith the )alace (otel, Beijing #as not
abruptly terminated but #e follo#ed the one*month notice
clause and +r! Santos receied all benefits due him!
,or your information, the )rint Shop at the )alace (otel is
still not operational and #ith a lo# business outloo&,
retrenchment in arious departments of the hotel is going
on #hich is a normal management practice to control costs!
%hen going through the latest performance ratings, please
also be adised that his performance #as belo# aerage
and a Chinese -ational #ho is doing his job no# sho#s a
better approach!
.n closing, #hen +r! Santos receied the letter of notice,
he hardly sho#ed up for #or& but still enjoyed free
accommodation$laundry$meals up to the day of his
departure!'
On Februar6 +=0 111=0 responent Santos file
a co"plaint for illegal is"issal with the .rbitration
Dranch0 National Capital Region0 National !abor
Relations Co""ission #N!RC&, Ce pra6e for an
awar of nineteen thousan nine hunre an twent6
three ollars #:S;1101+-,==& as actual a"ages0
fort6 thousan pesos #42=0===,==& as e(e"plar6
a"ages an attorne67s fees e3ui'alent to +=> of the
a"ages pra6e for, The co"plaint na"e ?CC0
?CIC!0 the 4alace Cotel an ?r, Sh"it as
responents,
The 4alace Cotel an ?r, Sh"it were not
ser'e with su""ons an neither participate in the
proceeings before the !abor .rbiter,
[1/]
On Bune +H0 11110 !abor .rbiter Ceferina B,
Diosana0 ecie the case against petitioners0 thus*
[11]
%(/0/,10/, judgment is hereby rendered2
3! directing all the respondents to pay complainant jointly
and seerally4
a) 567,867 9S dollars or its equialent in )hilippine
currency as unearned salaries4
b) ):7,777!77 as moral damages4
c) );7,777!77 as e"emplary damages4 and
d) Ten (37) percent of the total a#ard as attorney<s fees!
S1 10=/0/=!'
On Bul6 +-0 11110 petitioners appeale to the
N!RC0 arguing that the 4O5.0 not the N!RC ha
)urisiction o'er the case,
On .ugust +/0 111+0 the N!RC pro"ulgate a
resolution0 stating*
[+=]
%(/0/,10/, let the appealed =ecision be, as it is
hereby, declared null and oid for #ant of
jurisdiction! Complainant is hereby enjoined to file his
complaint #ith the )1/A!
S1 10=/0/=!'
On Septe"ber 1/0 111+0 responent Santos
"o'e for reconsieration of the aforeF3uote
resolution, Ce argue that the case was not
cogniAable b6 the 4O5. as he was not an $o'erseas
contract wor@er,%
[+1]
On ?a6 -10 111-0 the N!RC grante the "otion
an re'erse itself, The N!RC irecte !abor .rbiter
5"erson Tu"anon to hear the case on the 3uestion
of whether pri'ate responent was retrenche or
is"isse,
[++]
On Banuar6 1-0 11120 !abor .rbiter Tu"anon
co"plete the proceeings base on the testi"onial
an ocu"entar6 e'ience presente to an hear b6
hi",
[+-]
Subse3uentl60 !abor .rbiter Tu"anon was reF
assigne as trial arbiter of the National Capital
Region0 .rbitration Dranch0 an the case was
transferre to !abor .rbiter Bose I, e Vera,
[+2]
On No'e"ber +90 11120 !abor .rbiter e Vera
sub"itte his report,
[+9]
Ce foun that responent
Santos was illegall6 is"isse fro" e"plo6"ent an
reco""ene that he be pai actual a"ages
e3ui'alent to his salaries for the une(pire portion of
his contract,
[+<]
On Dece"ber 190 11120 the N!RC rule in fa'or
of pri'ate responent0 to wit*
[+H]
%(/0/,10/, finding that the report and
recommendations of Arbiter de >era are supported by
substantial eidence, judgment is hereby rendered,
directing the respondents to jointly and seerally pay
complainant the follo#ing computed contractual
benefits2 (3) 9S536,?77!77 as salaries for the un*e"pired
portion of the parties< contract4 (6) 9S5@,?77!77 as e"tra
four (;) months salary for the t#o (6) years period (sic) of
the parties< contract4 (@) 9S5@,?77!77 as 3;th month pay'
for the aforesaid t#o (6) years contract stipulated by the
parties or a total of 9S53A,877!77 or its peso equialent,
plus (;) attorney<s fees of 37B of complainant<s total
a#ard!
S1 10=/0/=!'
On Februar6 +0 11190 petitioners file a "otion
for reconsieration arguing that !abor .rbiter e
Vera7s reco""enation ha no basis in law an in
fact,
[+/]
On ?arch -=0 11190 the N!RC enie the
"otion for reconsieration,
[+1]
Cence0 this petition,
[-=]
On October 10 11190 petitioners file with this
Court an urgent "otion for the issuance of a
te"porar6 restraining orer anJor writ of preli"inar6
in)unction an a "otion for the annul"ent of the entr6
of )ug"ent of the N!RC ate Bul6 -10 1119,
[-1]
On No'e"ber +=0 11190 the Court enie
petitioner7s urgent "otion, The Court re3uire
responents to file their respecti'e co""ents0 without
gi'ing ue course to the petition,
[-+]
On ?arch /0 111<0 the Solicitor Ieneral file a
"anifestation stating that after going o'er the petition
an its anne(es0 the6 can not efen an sustain the
position ta@en b6 the N!RC in its assaile ecision
an orers, The Solicitor Ieneral pra6e that he be
e(cuse fro" filing a co""ent on behalf of the
N!RC
[--]
On .pril -=0111<0 pri'ate responent Santos
file his co""ent,
[-2]
On Bune +<0 111<0 the Court grante the
"anifestation of the Solicitor Ieneral an re3uire the
N!RC to file its own co""ent to the petition,
[-9]
On Banuar6 H0 111H0 the N!RC file its
co""ent,
The petition is "eritorious,
I. Forum Non-Conveniens
The N!RC was a seriousl6 incon'enient foru",
Ee note that the "ain aspects of the case
transpire in two foreign )urisictions an the case
in'ol'es purel6 foreign ele"ents, The onl6 lin@ that
the 4hilippines has with the case is that responent
Santos is a Filipino citiAen, The 4alace Cotel an
?CIC! are foreign corporations, Not all cases
in'ol'ing our citiAens can be trie here,
T/e e,01o',e+t co+tr&ct.22 Responent
Santos was hire irectl6 b6 the 4alace Cotel0 a
foreign e"plo6er0 through corresponence sent to the
Sultanate of O"an0 where responent Santos was
then e"plo6e, Ce was hire without the inter'ention
of the 4O5. or an6 authoriAe recruit"ent agenc6 of
the go'ern"ent,
[-<]
:ner the rule of forum non conveniens0 a
4hilippine court or agenc6 may assu"e )urisiction
o'er the case if it chooses to o so provided* #1& that
the 4hilippine court is one to which the parties "a6
con'enientl6 resort to8 #+& that the 4hilippine court is
in a position to "a@e an intelligent ecision as to the
law an the facts8 an #-& that the 4hilippine court has
or is li@el6 to ha'e power to enforce its ecision,
[-H]
The conitions are una'ailing in the case at bar,
Not Co+3e+)e+t.22 Ee fail to see how the N!RC
is a con'enient foru" gi'en that all the incients of
the case F fro" the ti"e of recruit"ent0 to
e"plo6"ent to is"issal occurre outsie the
4hilippines, The incon'enience is co"poune b6 the
fact that the proper efenants0 the 4alace Cotel an
?CIC! are not nationals of the 4hilippines, Neither
are the6 $oing business in the 4hilippines,% !i@ewise0
the "ain witnesses0 ?r, Sh"it an ?r, Cen@ are
nonFresients of the 4hilippines,
No 0o4er to $eter,)+e &001)c&b1e
1&4.22 Neither can an intelligent ecision be "ae as
to the law go'erning the e"plo6"ent contract as such
was perfecte in foreign soil,This calls to fore the
application of the principle of lex loci contractus #the
law of the place where the contract was "ae&,
[-/]
The e"plo6"ent contract was not perfecte in
the 4hilippines, Responent Santos signifie his
acceptance b6 writing a letter while he was in the
Republic of O"an, This letter was sent to the 4alace
Cotel in the 4eople7s Republic of China,
No 0o4er to $eter,)+e t/e %&ct*.22 Neither can
the N!RC eter"ine the facts surrouning the allege
illegal is"issal as all acts co"plaine of too@ place
in Dei)ing0 4eople7s Republic of China, The N!RC
was not in a position to eter"ine whether the
Tianna"en S3uare incient trul6 a'ersel6 affecte
operations of the 4alace Cotel as to )ustif6 responent
Santos7 retrench"ent,
Pr)+c)01e o% e%%ect)3e+e**, +o 0o4er to
e5ec6te $ec)*)o+.22 5'en assu"ing that a proper
ecision coul be reache b6 the N!RC0 such woul
not ha'e an6 bining effect against the e"plo6er0 the
4alace Cotel, The 4alace Cotel is a corporation
incorporate uner the laws of China an was not
e'en ser'e with su""ons, Burisiction o'er its
person was not ac3uire,
This is not to sa6 that 4hilippine courts an
agencies ha'e no power to sol'e contro'ersies
in'ol'ing foreign e"plo6ers, Neither are we sa6ing
that we o not ha'e power o'er an e"plo6"ent
contract e(ecute in a foreign countr6, I% &+to* 4ere
&+ 7o3er*e&* co+tr&ct 4or8er9, & P/)1)00)+e
%or6,, *0ec)%)c&11' t/e POEA, +ot t/e NLRC,
4o61$ 0rotect /),.
[-1]
Ce is not an $o'erseas contract
wor@er% a fact which he a"its with con'iction,
[2=]
5'en assu"ing that the N!RC was the proper
foru"0 e'en on the "erits0 the N!RC7s ecision
cannot be sustaine,
II. MHC Not L)&b1e
5'en if we assu"e two things* #1& that the N!RC
ha )urisiction o'er the case0 an #+& that ?CIC!
was liable for Santos7 retrench"ent0 still ?CC0 as a
separate an istinct )uriical entit6 cannot be hel
liable,
True0 ?CC is an incorporator of ?CIC! an
owns fift6 percent #9=>& of its capital stoc@, Cowe'er0
this is not enough to pierce the 'eil of corporate fiction
between ?CIC! an ?CC,
4iercing the 'eil of corporate entit6 is an
e3uitable re"e6, It is resorte to when the corporate
fiction is use to efeat public con'enience0 )ustif6
wrong0 protect frau or efen a cri"e,
[21]
It is one
onl6 when a corporation is a "ere alter ego or
business conuit of a person or another corporation,
In Traders Royal Bank v. Court of Appeals0
[2+]
we
hel that $the "ere ownership b6 a single stoc@holer
or b6 another corporation of all or nearl6 all of the
capital stoc@ of a corporation is not of itself a sufficient
reason for isregaring the fiction of separate
corporate personalities,%
The tests in eter"ining whether the corporate
'eil "a6 be pierce are* !)r*t0 the efenant "ust
ha'e control or co"plete o"ination of the other
corporation7s finances0 polic6 an business practices
with regar to the transaction attac@e, There "ust be
proof that the other corporation ha no separate "in0
will or e(istence with respect the act co"plaine
of, eco+$0 control "ust be use b6 the efenant to
co""it frau or wrong, T/)r$0 the aforesai control or
breach of ut6 "ust be the pro(i"ate cause of the
in)ur6 or loss co"plaine of, The absence of an6 of
the ele"ents pre'ents the piercing of the corporate
'eil,
[2-]
It is basic that a corporation has a personalit6
separate an istinct fro" those co"posing it as well
as fro" that of an6 other legal entit6 to which it "a6
be relate,
[22]
Clear an con'incing e'ience is
neee to pierce the 'eil of corporate fiction,
[29]
In this
case0 we fin no e'ience to show that ?CIC! an
?CC are one an the sa"e entit6,
III. MHICL +ot L)&b1e
Responent Santos preicates ?CIC!7s liabilit6
on the fact that ?CIC! $signe% his e"plo6"ent
contract with the 4alace Cotel, This fact fails to
persuae us,
!)r*t0 we note that the Vice 4resient
#Operations an De'elop"ent& of ?CIC!0 ?iguel D,
Cerguea signe the e"plo6"ent contract as a "ere
witness, Ce "erel6 signe uner the wor $note%,
Ehen one $notes% a contract0 one is not
e(pressing his agree"ent or appro'al0 as a part6
woul,
[2<]
In Sichangco v. Board of Commissioners of
Immigration0
[2H]
the Court recogniAe that the ter"
$note% "eans that the person so noting has "erel6
ta@en cogniAance of the e(istence of an act or
eclaration0 without e(ercising a )uicious eliberation
or renering a ecision on the "atter,
?r, Cerguea "erel6 signe the $witnessing
part% of the ocu"ent, The $witnessing part% of the
ocu"ent is that which0 $in a ee or other for"al
instru"ent is that part whichco"es after the recitals0
or where there are no recitals0 after the
parties #emphasis ours&,%
[2/]
.s oppose to a part6 to a
contract0 a witness is si"pl6 one who0 $being present0
personall6 sees or percei'es a thing8 a beholer0 a
spectator0 or e6ewitness,%
[21]
One who $notes%
so"ething )ust "a@es a $brief written state"ent%
[9=]
a
"e"oranu" or obser'ation,
eco+$0 an "ore i"portantl60 there was no
e(isting e"plo6erFe"plo6ee relationship between
Santos an ?CIC!, In eter"ining the e(istence of
an e"plo6erFe"plo6ee relationship0 the following
ele"ents are consiere*
[91]
(3) the selection and engagement of the employee4
(6) the payment of #ages4
(@) the po#er to dismiss4 and
(;) the po#er to control employee<s conduct!'
?CIC! i not ha'e an i not e(ercise an6 of
the afore"entione powers, It i not select
responent Santos as an e"plo6ee for the 4alace
Cotel, Ce was referre to the 4alace Cotel b6 his
frien0 Nestor Duenio, ?CIC! i not engage
responent Santos to wor@, The ter"s of e"plo6"ent
were negotiate an finaliAe through
corresponence between responent Santos0 ?r,
Sch"it an ?r, Cen@0 who were officers an
representati'es of the 4alace Cotel
an not ?CIC!, Neither i responent Santos
auce an6 proof that ?CIC! ha the power to
control his conuct, Finall60 it was the 4alace Cotel0
through ?r, Sch"it an not ?CIC! that ter"inate
responent Santos7 ser'ices,
Neither is there e'ience to suggest that ?CIC!
was a $laborFonl6 contractor,%
[9+]
There is no proof that
?CIC! $supplie% responent Santos or e'en referre
hi" for e"plo6"ent to the 4alace Cotel,
!i@ewise0 there is no e'ience to show that the
4alace Cotel an ?CIC! are one an the sa"e
entit6, The fact that the 4alace Cotel is a "e"ber of
the $?anila Cotel Iroup% isnot enough to pierce the
corporate 'eil between ?CIC! an the 4alace Cotel,
I:. Gr&3e Ab6*e o% D)*cret)o+
Consiering that the N!RC was forum non-
conveniens an consiering further that no e"plo6erF
e"plo6ee relationship e(iste between ?CIC!0 ?CC
an responent Santos0 !abor .rbiter Ceferina B,
Diosana clearl6 ha no )urisiction o'er responent7s
clai" in N!RC NCR Case No, ==F=+F=1=9/F1=,
!abor .rbiters ha'e e(clusi'e an original
)urisiction onl6 o'er the following*
[9-]
3! 9nfair labor practice cases4
6! Termination disputes4
@! .f accompanied #ith a claim for reinstatement, those
cases that #or&ers may file inoling #ages, rates of pay,
hours of #or& and other terms and conditions of
employment4
;! Claims for actual, moral, e"emplary and other forms of
damages arising from employer*employee relations4
:! Cases arising from any iolation of Article 6?; of this
Code, including questions inoling legality of stri&es and
loc&outs4 and
?! /"cept claims for /mployees Compensation, Social
Security, +edicare and maternity benefits, all other claims,
arising from employer*employee relations, including those
of persons in domestic or household serice, inoling an
amount e"ceeding fie thousand pesos
():,777!77) regardless of #hether accompanied #ith a
claim for reinstatement!'
In all these cases0 an e"plo6erFe"plo6ee
relationship is an inispensable )urisictional
re3uire"ent,
The )urisiction of labor arbiters an the N!RC
uner .rticle +1H of the !abor Coe is li"ite to
isputes arising fro" an e"plo6erFe"plo6ee
relationship which can be resol'e b6 reference to the
!abor Coe0 or other labor statutes0 or their collecti'e
bargaining agree"ents,
[92]
$To eter"ine which bo6 has )urisiction o'er
the present contro'ers60 we rel6 on the soun )uicial
principle that )urisiction o'er the sub)ect "atter is
conferre b6 law an is eter"ine b6 the allegations
of the co"plaint irrespecti'e of whether the plaintiff is
entitle to all or so"e of the clai"s asserte
therein,%
[99]
The lac@ of )urisiction of the !abor .rbiter was
ob'ious fro" the allegations of the co"plaint, Cis
failure to is"iss the case a"ounts to gra'e abuse of
iscretion,
[9<]
V, The Fallo
;HERE!ORE0 the Court hereb6 IR.NTS the
petition for certiorari an .NN:!S the orers an
resolutions of the National !abor Relations
Co""ission ate ?a6 -10 111-0 Dece"ber 190 1112
an ?arch -=0 1119 in N!RC NCR C. No, ==+1=1F11
#N!RC NCR Case No, ==F=+F=1=9/F1=&,
No costs,
O ORDERED.
avide! "r.! C.".! #Chairman$! %uno!
&apunan! an 'nares-Santiago! "".! concur,
THIRD DIVISION


REPUBLIC OF THE PHILIPPINES, represented by
the SOCIAL SECURITY COMMISSION nd SOCIAL
SECURITY SYSTEM,
Pet!t!"ners,



# $ers%s #



ASIAPRO COOPERATIVE,
Resp"ndent&

'&R& N"& ()*(+(

Present,

YNARES#SANTIA'O, -&,
Ch!rpers"n,
AUSTRIA#MARTINE.,
A.CUNA,
CHICO#NA.ARIO, nd
REYES, --&


Pr"/%01ted,

N"$e/ber *2, *++)
3# # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # # # # # # # # # # # #3


D E C I S I O N


CHICO#NA.ARIO, -&,


Be4"re th!s C"%rt !s Pet!t!"n 4"r Re$!e5 "n
Cert!"rr! %nder R%0e 67 "4 the (88) Re$!sed
R%0es "4 C!$!0 Pr"9ed%re see:!n1 t" nn%0 nd
set s!de the De9!s!"n;(< nd Res"0%t!"n;*< "4
the C"%rt "4 Appe0s !n CA#'&R& SP N"& =)*2>,
dted 7 -n%ry *++> nd *+ Mr9h *++>,
respe9t!$e0y, 5h!9h nn%00ed nd set s!de the
Orders "4 the S"9!0 Se9%r!ty C"//!ss!"n ?SSC@
!n SSC Cse N"& >#(77+)#+2, dted () Febr%ry
*++6;2< nd (> Septe/ber *++6,;6<
respe9t!$e0y, thereby d!s/!ss!n1 the pet!t!"n#
9"/p0!nt dted (* -%ne *++2 A0ed by here!n
pet!t!"ner S"9!0 Se9%r!ty Syste/ ?SSS@ 1!nst
here!n resp"ndent&

Here!n pet!t!"ner Rep%b0!9 "4 the
Ph!0!pp!nes !s represented by the SSC, B%s!#
C%d!9!0 b"dy %th"r!Ded by 05 t" res"0$e
d!sp%tes r!s!n1 %nder Rep%b0!9 A9t N"& ((>(,
s /ended by Rep%b0!9 A9t N"& =*=*&;7<
Pet!t!"ner SSS !s 1"$ern/ent 9"rp"rt!"n
9reted by $!rt%e "4 Rep%b0!9 A9t N"& ((>(, s
/ended& On the "ther hnd, here!n
resp"ndent As!pr" C""pert!$e ?As!pr"@ !s
/%0t!#p%rp"se 9""pert!$e 9reted p%rs%nt t"
Rep%b0!9 A9t N"& >82=;>< nd d%0y re1!stered
5!th the C""pert!$e De$e0"p/ent A%th"r!ty
?CDA@ "n *2 N"$e/ber (888 5!th Re1!strt!"n
Cert!A9te N"& +#>*2#*6>+&;)<

The nte9edents "4 th!s 9se re s
4"00"5s,

Resp"ndent As!pr", s 9""pert!$e, !s
9"/p"sed "4 "5ners#/e/bers& Under !ts by#
05s, "5ners#/e/bers re "4 t5" 9te1"r!es,
t" 5!t, ?(@ re1%0r /e/ber, 5h" !s ent!t0ed t"
00 the r!1hts nd pr!$!0e1es "4 /e/bersh!pE
nd ?*@ ss"9!te /e/ber, 5h" hs n" r!1ht t"
$"te nd be $"ted %p"n nd sh00 be ent!t0ed
"n0y t" s%9h r!1hts nd pr!$!0e1es pr"$!ded !n
!ts by#05s&;=< Its pr!/ry "bCe9t!$es re t"
pr"$!de s$!n1s nd 9red!t 49!0!t!es nd t"
de$e0"p "ther 0!$e0!h""d ser$!9es 4"r !ts
"5ners#/e/bers& In the d!s9hr1e "4 the
4"res!d pr!/ry "bCe9t!$es, resp"ndent
9""pert!$e entered !nt" se$er0 Ser$!9e
C"ntr9ts;8< 5!th StnA09" # d!$!s!"n "4 DOLE
Ph!0!pp!nes, In9& nd 9"/pny bsed !n
B%:!dn"n& The "5ners#/e/bers d" n"t
re9e!$e 9"/penst!"n "r 51es 4r"/ the
resp"ndent 9""pert!$e& Insted, they re9e!$e
shre !n the ser$!9e s%rp0%s;(+< 5h!9h the
resp"ndent 9""pert!$e erns 4r"/ d!Ferent
res "4 trde !t en11es !n, s%9h s the
!n9"/e der!$ed 4r"/ the s!d Ser$!9e C"ntr9ts
5!th StnA09"& The "5ners#/e/bers 1et the!r
!n9"/e 4r"/ the ser$!9e s%rp0%s 1enerted by
the B%0!ty nd /"%nt "4 ser$!9es they
rendered, 5h!9h !s deter/!ned by the B"rd "4
D!re9t"rs "4 the resp"ndent 9""pert!$e&

In "rder t" enC"y the beneAts %nder the S"9!0
Se9%r!ty L5 "4 (88), the "5ners#/e/bers "4
the resp"ndent 9""pert!$e, 5h" 5ere
ss!1ned t" StnA09" reB%ested the ser$!9es "4
the 0tter t" re1!ster the/ 5!th pet!t!"ner SSS
s se04#e/p0"yed nd t" re/!t the!r
9"ntr!b%t!"ns s s%9h& A0s", t" 9"/p0y 5!th
Se9t!"n (8#A "4 Rep%b0!9 A9t N"& ((>(, s
/ended by Rep%b0!9 A9t N"& =*=*, the SSS
9"ntr!b%t!"ns "4 the s!d "5ners#/e/bers 5ere
eB%0 t" the shre "4 b"th the e/p0"yer nd
the e/p0"yee&

On *> Septe/ber *++*, h"5e$er, pet!t!"ner
SSS thr"%1h !ts V!9e#Pres!dent 4"r M!ndn"
D!$!s!"n, Atty& Edd!e A& -r, sent 0etter;((< t"
the resp"ndent 9""pert!$e, ddressed t" !ts
Ch!e4 E3e9%t!$e OG9er ?CEO@ nd 'ener0
Mn1er Le" '& Pr/, !n4"r/!n1 the 0tter
tht bsed "n the Ser$!9e C"ntr9ts !t e3e9%ted
5!th StnA09", resp"ndent 9""pert!$e !s
9t%00y /np"5er 9"ntr9t"r s%pp0y!n1
e/p0"yees t" StnA09" nd 4"r tht res"n, !t !s
n e/p0"yer "4 !ts "5ners#/e/bers 5"r:!n1
5!th StnA09"& Th%s, resp"ndent 9""pert!$e
sh"%0d re1!ster !tse04 5!th pet!t!"ner SSS s n
e/p0"yer nd /:e the 9"rresp"nd!n1 rep"rt
nd re/!ttn9e "4 pre/!%/ 9"ntr!b%t!"ns !n
99"rdn9e 5!th the S"9!0 Se9%r!ty L5 "4
(88)& On 8 O9t"ber *++*,;(*< resp"ndent
9""pert!$e, thr"%1h !ts 9"%nse0, sent rep0y
t" pet!t!"ner SSSHs 0etter ssert!n1 tht !t !s n"t
n e/p0"yer be9%se !ts "5ners#/e/bers re
the 9""pert!$e !tse04E hen9e, !t 9nn"t be !ts
"5n e/p0"yer& A1!n, "n *( O9t"ber *++*,;(2<
pet!t!"ner SSS sent 0etter t" resp"ndent
9""pert!$e "rder!n1 the 0tter t" re1!ster s n
e/p0"yer nd rep"rt !ts "5ners#/e/bers s
e/p0"yees 4"r 9"/p%0s"ry 9"$er1e 5!th the
pet!t!"ner SSS& Resp"ndent 9""pert!$e
9"nt!n%"%s0y !1n"red the de/nd "4 pet!t!"ner
SSS&

A99"rd!n10y, pet!t!"ner SSS, "n (* -%ne *++2,
A0ed Pet!t!"n;(6< be4"re pet!t!"ner SSC
1!nst the resp"ndent 9""pert!$e nd
StnA09" pry!n1 tht the resp"ndent
9""pert!$e "r, !n the 0ternt!$e, StnA09" be
d!re9ted t" re1!ster s n e/p0"yer nd t"
rep"rt resp"ndent 9""pert!$eHs "5ners#
/e/bers s 9"$ered e/p0"yees %nder the
9"/p%0s"ry 9"$er1e "4 SSS nd t" re/!t the
ne9essry 9"ntr!b%t!"ns !n 99"rdn9e 5!th the
S"9!0 Se9%r!ty L5 "4 (88)& The s/e 5s
d"9:eted s SSC Cse N"& >#(77+)#+2&
Resp"ndent 9""pert!$e A0ed !ts Ans5er 5!th
M"t!"n t" D!s/!ss 00e1!n1 tht n" e/p0"yer#
e/p0"yee re0t!"nsh!p e3!sts bet5een !t nd !ts
"5ners#/e/bers, th%s, pet!t!"ner SSC hs n"
C%r!sd!9t!"n "$er the resp"ndent 9""pert!$e&
StnA09", "n the "ther hnd, A0ed n Ans5er
5!th Cr"ss#90!/ 1!nst the resp"ndent
9""pert!$e&

On () Febr%ry *++6, pet!t!"ner SSC !ss%ed n
Order deny!n1 the M"t!"n t" D!s/!ss A0ed by
the resp"ndent 9""pert!$e& The resp"ndent
9""pert!$e /"$ed 4"r the re9"ns!dert!"n "4
the s!d Order, b%t !t 5s 0!:e5!se den!ed !n
n"ther Order !ss%ed by the SSC dted (>
Septe/ber *++6&

Intend!n1 t" ppe0 the b"$e Orders,
resp"ndent 9""pert!$e A0ed M"t!"n 4"r
E3tens!"n "4 T!/e t" F!0e Pet!t!"n 4"r Re$!e5
be4"re the C"%rt "4 Appe0s& S%bseB%ent0y,
resp"ndent 9""pert!$e A0ed Mn!4estt!"n
stt!n1 tht !t 5s n" 0"n1er A0!n1 Pet!t!"n 4"r
Re$!e5& In !ts p09e, resp"ndent 9""pert!$e
A0ed Pet!t!"n 4"r Cert!"rr! be4"re the C"%rt "4
Appe0s, d"9:eted s CA#'&R& SP N"& =)*2>,
5!th the 4"00"5!n1 ss!1n/ent "4 err"rs,

I& The Orders dted
() Febr%ry *++6 nd (> Septe/ber *++6 "4
;here!n pet!t!"ner< SSC 5ere !ss%ed 5!th 1r$e
b%se "4 d!s9ret!"n /"%nt!n1 t" ?s!9@ 09: "r
e39ess "4 C%r!sd!9t!"n !n tht,

A& ;Pet!t!"ner< SSC rb!trr!0y
pr"9eeded 5!th the 9se s !4 !t hs C%r!sd!9t!"n
"$er the pet!t!"n B%", 9"ns!der!n1 tht !t
4!0ed t" Arst res"0$e the !ss%e "4 the e3!sten9e
"4 n e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
;resp"ndent< 9""pert!$e nd !ts "5ners#
/e/bers&
B& Ih!0e !ndeed, the ;pet!t!"ner< SSC
hs C%r!sd!9t!"n "$er 00 d!sp%tes r!s!n1 %nder
the SSS L5 5!th respe9t t" 9"$er1e, beneAts,
9"ntr!b%t!"ns, nd re0ted /tters, !t !s
respe9t4%00y s%b/!tted tht ;pet!t!"ner< SSC
/y "n0y ss%/e C%r!sd!9t!"n !n 9ses 5here
there !s n" d!sp%te s t" the e3!sten9e "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p&
C& C"ntrry t" the h"0d!n1 "4 the
;pet!t!"ner< SSC, the 0e10 !ss%e "4 e/p0"yer#
e/p0"yee re0t!"nsh!p r!sed !n ;resp"ndentHs<
M"t!"n t" D!s/!ss 9n be pre0!/!nr!0y res"0$ed
thr"%1h s%//ry her!n1s pr!"r t" the her!n1
"n the /er!ts& H"5e$er, ny !nB%!ry bey"nd
pre0!/!nry deter/!nt!"n, s 5ht ;pet!t!"ner
SSC< 5nts t" 99"/p0!sh, 5"%0d be t"
en9r"9h "n the C%r!sd!9t!"n "4 the Nt!"n0
Lb"r Re0t!"ns C"//!ss!"n ;NLRC<, 5h!9h !s
the /"re 9"/petent b"dy 90"thed 5!th p"5er
t" res"0$e !ss%es re0t!n1 t" the e3!sten9e "4 n
e/p0"y/ent re0t!"nsh!p&

II& At ny rte, the
;pet!t!"ner< SSC hs n" C%r!sd!9t!"n t" t:e
9"1n!Dn9e "4 the pet!t!"n B%"&

A& ;Resp"ndent< !s n"t n e/p0"yer
5!th!n the 9"nte/p0t!"n "4 the Lb"r L5 b%t
!s /%0t!#p%rp"se 9""pert!$e 9reted
p%rs%nt t" Rep%b0!9 A9t N"& >82= nd
9"/p"sed "4 "5ners#/e/bers, n"t e/p0"yees&
B& The r!1hts nd "b0!1t!"ns "4 the
"5ners#/e/bers "4 ;resp"ndent< 9""pert!$e
re der!$ed 4r"/ the!r Me/bersh!p
A1ree/ents, the C""pert!$es By#L5s, nd
Rep%b0!9 A9t N"& >82=, nd n"t 4r"/ ny
9"ntr9t "4 e/p0"y/ent "r 4r"/ the Lb"r
L5s& M"re"$er, s!d "5ners#/e/bers enC"y
r!1hts tht re n"t 9"ns!stent 5!th be!n1 /ere
e/p0"yees "4 9"/pny, s%9h s the r!1ht t"
prt!9!pte nd $"te !n de9!s!"n#/:!n1 4"r the
9""pert!$e&
C& As 4"%nd by the B%re% "4 Intern0
Re$en%e ;BIR<, the "5ners#/e/bers "4
;resp"ndent< 9""pert!$e re n"t p!d ny
9"/penst!"n !n9"/e&;(7< ?E/phs!s
s%pp0!ed&@


On 7 -n%ry *++>, the C"%rt "4 Appe0s
rendered De9!s!"n 1rnt!n1 the pet!t!"n A0ed
by the resp"ndent 9""pert!$e& The de9ret0
p"rt!"n "4 the De9!s!"n reds,

IHEREFORE, the pet!t!"n !s 'RANTED&
The ss!0ed Orders dted ;() Febr%ry *++6<
nd ;(> Septe/ber *++6<, re ANNULLED nd
SET ASIDE nd ne5 "ne !s entered
DISMISSIN' the pet!t!"n#9"/p0!nt dted ;(*
-%ne *++2< "4 ;here!n pet!t!"ner< S"9!0 Se9%r!ty
Syste/&;(><

A11r!e$ed by the 4"res!d De9!s!"n, pet!t!"ner
SSS /"$ed 4"r re9"ns!dert!"n, b%t !t 5s
den!ed by the ppe00te 9"%rt !n !ts Res"0%t!"n
dted *+ Mr9h *++>&

Hen9e, th!s Pet!t!"n&

In !ts Me/"rnd%/, pet!t!"ners r!se the !ss%e
"4 5hether "r n"t the C"%rt "4 Appe0s erred !n
n"t And!n1 tht the SSC hs C%r!sd!9t!"n "$er
the s%bCe9t /tter nd !t hs $0!d bs!s !n
deny!n1 resp"ndentHs M"t!"n t" D!s/!ss& The
s!d !ss%e !s s%pp"rted by the 4"00"5!n1
r1%/ents,

I& The ;pet!t!"ner
SSC< hs C%r!sd!9t!"n "$er the pet!t!"n#
9"/p0!nt A0ed be4"re !t by the ;pet!t!"ner SSS<
%nder R&A& N"& =*=*&

II& Resp"ndent
;9""pert!$e< !s est"pped 4r"/ B%est!"n!n1 the
C%r!sd!9t!"n "4 pet!t!"ner SSC 4ter !n$":!n1 !ts
C%r!sd!9t!"n by A0!n1 n ;A<ns5er 5!th ;M<"t!"n
t" ;D<!s/!ss be4"re !t&

III& The ;pet!t!"ner SSC<
d!d n"t 9t 5!th 1r$e b%se "4 d!s9ret!"n !n
deny!n1 resp"ndent ;9""pert!$eHs< ;M<"t!"n t"
;D<!s/!ss&

IV& The e3!sten9e "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p !s B%est!"n
"4 49t 5here presentt!"n "4 e$!den9e !s
ne9essry&

V& There !s n
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
;resp"ndent 9""pert!$e< nd !ts ;"5ners#
/e/bers<&


Pet!t!"ners 90!/ tht SSC hs C%r!sd!9t!"n "$er
the pet!t!"n#9"/p0!nt A0ed be4"re !t by
pet!t!"ner SSS s !t !n$"0$ed n !ss%e "4
5hether "r n"t 5"r:er !s ent!t0ed t"
9"/p%0s"ry 9"$er1e %nder the SSS L5&
Pet!t!"ners $"5 tht Se9t!"n 7 "4 Rep%b0!9 A9t
N"& ((>(, s /ended by Rep%b0!9 A9t N"&
=*=*, e3press0y 9"n4ers %p"n pet!t!"ner SSC
the p"5er t" sett0e d!sp%tes "n 9"/p%0s"ry
9"$er1e, beneAts, 9"ntr!b%t!"ns nd pen0t!es
there"n "r ny "ther /tter re0ted theret"&
L!:e5!se, Se9t!"n 8 "4 the s/e 05 90er0y
pr"$!des tht SSS 9"$er1e !s 9"/p%0s"ry %p"n
00 e/p0"yees& Th%s, 5hen pet!t!"ner SSS A0ed
pet!t!"n#9"/p0!nt 1!nst the resp"ndent
9""pert!$e nd StnA09" be4"re the pet!t!"ner
SSC 4"r the 9"/p%0s"ry 9"$er1e "4 resp"ndent
9""pert!$eHs "5ners#/e/bers s 5e00 s 4"r
9"00e9t!"n "4 %np!d SSS 9"ntr!b%t!"ns, !t 5s
$ery "b$!"%s tht the s%bCe9t /tter "4 the
4"res!d pet!t!"n#9"/p0!nt 5s 5!th!n the
e3pert!se nd C%r!sd!9t!"n "4 the SSC&

Pet!t!"ners s!/!0r0y ssert tht 1rnt!n1
r1%end" tht there !s pr!"r need t"
deter/!ne the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p bet5een the resp"ndent
9""pert!$e nd !ts "5ners#/e/bers, s!d
!ss%e d"es n"t pre90%de pet!t!"ner SSC 4r"/
t:!n1 9"1n!Dn9e "4 the 4"res!d pet!t!"n#
9"/p0!nt& C"ns!der!n1 tht the pr!n9!p0 re0!e4
s"%1ht !n the s!d pet!t!"n#9"/p0!nt hs t" be
res"0$ed by re4eren9e t" the S"9!0 Se9%r!ty
L5 nd n"t t" the Lb"r C"de "r "ther 0b"r
re0t!"ns stt%tes, there4"re, C%r!sd!9t!"n "$er
the s/e s"0e0y be0"n1s t" pet!t!"ner SSC&

Pet!t!"ners 4%rther 90!/ tht the den!0 "4 the
resp"ndent 9""pert!$eHs M"t!"n t" D!s/!ss
1r"%nded "n the 00e1ed 09: "4 e/p0"yer#
e/p0"yee re0t!"nsh!p d"es n"t 9"nst!t%te
1r$e b%se "4 d!s9ret!"n "n the prt "4
pet!t!"ner SSC be9%se the 0tter hs the
%th"r!ty nd p"5er t" deny the s/e&
M"re"$er, the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p !s B%est!"n "4 49t
5here presentt!"n "4 e$!den9e !s ne9essry&
Pet!t!"ners 0s" /!nt!n tht the resp"ndent
9""pert!$e !s 0redy est"pped 4r"/ ss!0!n1
the C%r!sd!9t!"n "4 the pet!t!"ner SSC be9%se !t
hs 0redy A0ed !ts Ans5er be4"re !t, th%s,
resp"ndent 9""pert!$e hs 0redy s%b/!tted
!tse04 t" the C%r!sd!9t!"n "4 the pet!t!"ner SSC&

F!n00y, pet!t!"ners 9"ntend tht there !s n
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers& The resp"ndent 9""pert!$e !s the
e/p0"yer "4 !ts "5ners#/e/bers 9"ns!der!n1
tht !t %ndert"": t" pr"$!de ser$!9es t"
StnA09", the per4"r/n9e "4 5h!9h !s %nder
the 4%00 nd s"0e 9"ntr"0 "4 the resp"ndent
9""pert!$e&

On the "ther hnd, resp"ndent 9""pert!$e
00e1es tht !ts "5ners#/e/bers "5n the
9""pert!$e, th%s, n" e/p0"yer#e/p0"yee
re0t!"nsh!p 9n r!se bet5een the/& The
pers"ns "4 the e/p0"yer nd the e/p0"yee re
/er1ed !n the "5ners#/e/bers the/se0$es&
L!:e5!se, resp"ndent 9""pert!$eHs "5ners#
/e/bers e$en reB%ested the resp"ndent
9""pert!$e t" re1!ster the/ 5!th the pet!t!"ner
SSS s se04#e/p0"yed !nd!$!d%0s& Hen9e,
pet!t!"ner SSC hs n" C%r!sd!9t!"n "$er the
pet!t!"n#9"/p0!nt A0ed be4"re !t by pet!t!"ner
SSS&

Resp"ndent 9""pert!$e 4%rther $ers tht the
C"%rt "4 Appe0s 9"rre9t0y r%0ed tht pet!t!"ner
SSC 9ted 5!th 1r$e b%se "4 d!s9ret!"n 5hen
!t ss%/ed C%r!sd!9t!"n "$er the pet!t!"n#
9"/p0!nt 5!th"%t deter/!n!n1 Arst !4 there 5s
n e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
the resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers& Resp"ndent 9""pert!$e 90!/s tht
the B%est!"n "4 5hether n e/p0"yer#e/p0"yee
re0t!"nsh!p e3!sts bet5een !t nd !ts "5ners#
/e/bers !s 0e10 nd n"t 49t%0 !ss%e s
the 49ts re %nd!sp%ted nd need "n0y t" be
!nterpreted by the pp0!9b0e 05 nd
C%r!spr%den9e&

Lst0y, resp"ndent 9""pert!$e sserts tht !t
9nn"t be 9"ns!dered est"pped 4r"/ ss!0!n1
the C%r!sd!9t!"n "4 pet!t!"ner SSC s!/p0y
be9%se !t A0ed n Ans5er 5!th M"t!"n t"
D!s/!ss, espe9!00y 5here the !ss%e "4
C%r!sd!9t!"n !s r!sed t the $ery Arst !nstn9e
nd 5here the "n0y re0!e4 be!n1 s"%1ht !s the
d!s/!ss0 "4 the pet!t!"n#9"/p0!nt 4"r 09: "4
C%r!sd!9t!"n&

Fr"/ the 4"re1"!n1 r1%/ents "4 the prt!es,
the !ss%es /y be s%//r!Ded !nt",

I& Ihether the
pet!t!"ner SSC hs C%r!sd!9t!"n "$er the
pet!t!"n#9"/p0!nt A0ed be4"re !t by pet!t!"ner
SSS 1!nst the resp"ndent 9""pert!$e&

II& Ihether the
resp"ndent 9""pert!$e !s est"pped 4r"/
ss!0!n1 the C%r!sd!9t!"n "4 pet!t!"ner SSC s!n9e
!t hd 0redy A0ed n Ans5er 5!th M"t!"n t"
D!s/!ss be4"re the s!d b"dy&


Pet!t!"ner SSCHs C%r!sd!9t!"n !s 90er0y stted !n
Se9t!"n 7 "4 Rep%b0!9 A9t N"& =*=* s 5e00 s !n
Se9t!"n (, R%0e III "4 the (88) SSS Re$!sed
R%0es "4 Pr"9ed%re&

Se9t!"n 7 "4 Rep%b0!9 A9t N"& =*=* pr"$!des,

SEC& 7& Sett0e/ent "4 D!sp%tes& J ?@ Any
d!sp%te r!s!n1 %nder th!s A9t 5!th respe9t t"
9"$er1e, beneAts, 9"ntr!b%t!"ns nd pen0t!es
there"n "r ny "ther /tter re0ted theret",
sh00 be 9"1n!Db0e by the C"//!ss!"n, 3 3 3&
?E/phs!s s%pp0!ed&@


S!/!0r0y, Se9t!"n (, R%0e III "4 the (88) SSS
Re$!sed R%0es "4 Pr"9ed%re sttes,

Se9t!"n (& -%r!sd!9t!"n& J Any d!sp%te
r!s!n1 %nder the S"9!0 Se9%r!ty A9t 5!th
respe9t t" 9"$er1e, ent!t0e/ent "4 beneAts,
9"00e9t!"n nd sett0e/ent "4 9"ntr!b%t!"ns nd
pen0t!es there"n, "r ny "ther /tter re0ted
theret", sh00 be 9"1n!Db0e by the C"//!ss!"n
4ter the SSS thr"%1h !ts Pres!dent, Mn1er "r
OG9er#!n#9hr1e "4 the
Deprt/entKBrn9hKRepresentt!$e OG9e
9"n9erned hd Arst t:en 9t!"n there"n !n
5r!t!n1& ?E/phs!s s%pp0!ed&@


It !s 90er then 4r"/ the 4"res!d pr"$!s!"ns
tht ny !ss%e re1rd!n1 the 9"/p%0s"ry
9"$er1e "4 the SSS !s 5e00 5!th!n the e390%s!$e
d"/!n "4 the pet!t!"ner SSC& It !s !/p"rtnt t"
n"te, th"%1h, tht the /ndt"ry 9"$er1e
%nder the SSS L5 !s pre/!sed "n the
e3!sten9e "4 n e/p0"yer#e/p0"yee
re0t!"nsh!p;()< e39ept !n 9ses "4 9"/p%0s"ry
9"$er1e "4 the se04#e/p0"yed&

It !s 3!"/t!9 tht the 00e1t!"ns !n the
9"/p0!nt, n"t the de4enses set %p !n the
Ans5er "r !n the M"t!"n t" D!s/!ss, deter/!ne
5h!9h 9"%rt hs C%r!sd!9t!"n "$er n 9t!"nE
"ther5!se, the B%est!"n "4 C%r!sd!9t!"n 5"%0d
depend 0/"st ent!re0y %p"n the de4endnt&
;(=< M"re"$er, !t !s 5e00#sett0ed tht "n9e
C%r!sd!9t!"n !s 9B%!red by the 9"%rt, !t re/!ns
5!th !t %nt!0 the 4%00 ter/!nt!"n "4 the 9se&;(8<
The s!d pr!n9!p0e /y be pp0!ed e$en t"
B%s!#C%d!9!0 b"d!es&

In th!s 9se, the pet!t!"n#9"/p0!nt A0ed by the
pet!t!"ner SSS be4"re the pet!t!"ner SSC
1!nst the resp"ndent 9""pert!$e nd
StnA09" 00e1es tht the "5ners#/e/bers "4
the resp"ndent 9""pert!$e re s%bCe9t t" the
9"/p%0s"ry 9"$er1e "4 the SSS be9%se they
re e/p0"yees "4 the resp"ndent 9""pert!$e&
C"nseB%ent0y, the resp"ndent 9""pert!$e
be!n1 the e/p0"yer "4 !ts "5ners#/e/bers
/%st re1!ster s e/p0"yer nd rep"rt !ts
"5ners#/e/bers s 9"$ered /e/bers "4 the
SSS nd re/!t the ne9essry pre/!%/
9"ntr!b%t!"ns !n 99"rdn9e 5!th the S"9!0
Se9%r!ty L5 "4 (88)& A99"rd!n10y, bsed "n
the 4"res!d 00e1t!"ns !n the pet!t!"n#
9"/p0!nt A0ed be4"re the pet!t!"ner SSC, the
9se 90er0y 400s 5!th!n !ts C%r!sd!9t!"n&
A0th"%1h the Ans5er 5!th M"t!"n t" D!s/!ss
A0ed by the resp"ndent 9""pert!$e 9h00en1ed
the C%r!sd!9t!"n "4 the pet!t!"ner SSC "n the
00e1ed 09: "4 e/p0"yer#e/p0"yee re0t!"nsh!p
bet5een !tse04 nd !ts "5ners#/e/bers, the
s/e !s n"t en"%1h t" depr!$e the pet!t!"ner
SSC "4 !ts C%r!sd!9t!"n "$er the pet!t!"n#
9"/p0!nt A0ed be4"re !t& Th%s, the pet!t!"ner
SSC 9nn"t be 4%0ted 4"r !n!t!00y ss%/!n1
C%r!sd!9t!"n "$er the pet!t!"n#9"/p0!nt "4 the
pet!t!"ner SSS&

N"nethe0ess, s!n9e the e3!sten9e "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers 5s p%t !n !ss%e nd 9"ns!der!n1 tht
the 9"/p%0s"ry 9"$er1e "4 the SSS L5 !s
pred!9ted "n the e3!sten9e "4 s%9h
re0t!"nsh!p, !t beh""$es the pet!t!"ner SSC t"
deter/!ne !4 there !s re00y n e/p0"yer#
e/p0"yee re0t!"nsh!p tht e3!sts bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers&

The B%est!"n "n the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p !s n"t 5!th!n the
e390%s!$e C%r!sd!9t!"n "4 the Nt!"n0 Lb"r
Re0t!"ns C"//!ss!"n ?NLRC@& Art!90e *() "4
the Lb"r C"de en%/ert!n1 the C%r!sd!9t!"n "4
the Lb"r Arb!ters nd the NLRC pr"$!des tht,

ART& *()& -URISDICTION OF LABOR ARBITERS
AND THE COMMISSION& # ?@ 3 3 3&

3 3 3 3

>& E39ept 90!/s 4"r E/p0"yees
C"/penst!"n, S"9!0 Se9%r!ty, Med!9re nd
/tern!ty beneAts, 00 "ther 90!/s, r!s!n1
4r"/ e/p0"yer#e/p0"yee re0t!"ns, !n90%d!n1
th"se "4 pers"ns !n d"/est!9 "r h"%seh"0d
ser$!9e, !n$"0$!n1 n /"%nt e39eed!n1 A$e
th"%snd pes"s ?P7,+++&++@ re1rd0ess "4
5hether 99"/pn!ed 5!th 90!/ 4"r
re!nstte/ent&;*+<


A0th"%1h the 4"res!d pr"$!s!"n spe:s
/ere0y "4 90!/s 4"r S"9!0 Se9%r!ty, !t 5"%0d
ne9essr!0y !n90%de !ss%es "n the 9"$er1e
there"4, be9%se 90!/s re %nden!b0y r""ted
!n the 9"$er1e by the syste/& Hen9e, the
B%est!"n "n the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p 4"r the p%rp"se "4
deter/!n!n1 the 9"$er1e "4 the S"9!0 Se9%r!ty
Syste/ !s e3p0!9!t0y e390%ded 4r"/ the
C%r!sd!9t!"n "4 the NLRC nd 400s 5!th!n the
C%r!sd!9t!"n "4 the SSC 5h!9h !s pr!/r!0y
9hr1ed 5!th the d%ty "4 sett0!n1 d!sp%tes
r!s!n1 %nder the S"9!0 Se9%r!ty L5 "4 (88)&

On the bs!s there"4, 9"ns!der!n1 tht the
pet!t!"n#9"/p0!nt "4 the pet!t!"ner SSS
!n$"0$ed the !ss%e "4 9"/p%0s"ry 9"$er1e "4
the "5ners#/e/bers "4 the resp"ndent
9""pert!$e, th!s C"%rt 1rees 5!th the
pet!t!"ner SSC 5hen !t de90red !n !ts Order
dted () Febr%ry *++6 tht s n !n9!dent t"
the !ss%e "4 9"/p%0s"ry 9"$er1e, !t /y
!nB%!re !nt" the presen9e "r bsen9e "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p 5!th"%t need
"4 5!t!n1 4"r pr!"r pr"n"%n9e/ent "r
s%b/!tt!n1 the !ss%e t" the NLRC 4"r pr!"r
deter/!nt!"n& S!n9e b"th the pet!t!"ner SSC
nd the NLRC re !ndependent b"d!es nd the!r
C%r!sd!9t!"n re 5e00#deAned by the seprte
stt%tes 9ret!n1 the/, pet!t!"ner SSC hs the
%th"r!ty t" !nB%!re !nt" the re0t!"nsh!p
e3!st!n1 bet5een the 5"r:er nd the pers"n "r
ent!ty t" 5h"/ he renders ser$!9e t" deter/!ne
!4 the e/p0"y/ent, !ndeed, !s "ne tht !s
e39epted by the S"9!0 Se9%r!ty L5 "4 (88)
4r"/ 9"/p%0s"ry 9"$er1e&;*(<

E$en be4"re the pet!t!"ner SSC 9"%0d /:e
deter/!nt!"n "4 the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p, h"5e$er, the
resp"ndent 9""pert!$e 0redy e0e$ted the
Order "4 the pet!t!"ner SSC, deny!n1 !ts M"t!"n
t" D!s/!ss, t" the C"%rt "4 Appe0s by A0!n1
Pet!t!"n 4"r Cert!"rr!& As 9"nseB%en9e
there"4, the pet!t!"ner SSC be9/e prty t"
the s!d Pet!t!"n 4"r Cert!"rr! p%rs%nt t"
Se9t!"n 7?b@;**< "4 Rep%b0!9 A9t N"& =*=*& The
ppe00te 9"%rt r%0ed !n 4$"r "4 the resp"ndent
9""pert!$e by de90r!n1 tht the pet!t!"ner
SSC hs n" C%r!sd!9t!"n "$er the pet!t!"n#
9"/p0!nt A0ed be4"re !t be9%se there 5s n"
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers& Res%0tnt0y, the pet!t!"ners SSS nd
SSC, represent!n1 the Rep%b0!9 "4 the
Ph!0!pp!nes, A0ed Pet!t!"n 4"r Re$!e5 be4"re
th!s C"%rt&

A0th"%1h s r%0e, !n the e3er9!se "4 the
S%pre/e C"%rtHs p"5er "4 re$!e5, the C"%rt !s
n"t tr!er "4 49ts nd the And!n1s "4 49t "4
the C"%rt "4 Appe0s re 9"n90%s!$e nd
b!nd!n1 "n the C"%rt,;*2< s!d r%0e !s n"t
5!th"%t e39ept!"ns& There re se$er0
re9"1n!Ded e39ept!"ns;*6< !n 5h!9h 49t%0
!ss%es /y be res"0$ed by th!s C"%rt& One "4
these e39ept!"ns Ands pp0!9t!"n !n th!s
present 9se 5h!9h !s, 5hen the And!n1s "4 49t
re 9"nL!9t!n1& There re, !ndeed, 9"nL!9t!n1
And!n1s esp"%sed by the pet!t!"ner SSC nd
the ppe00te 9"%rt re0t!$e t" the e3!sten9e "4
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers, 5h!9h ne9ess!ttes deprt%re 4r"/
the "4t#repeted r%0e tht 49t%0 !ss%es /y
n"t be the s%bCe9t "4 ppe0s t" th!s C"%rt&

In deter/!n!n1 the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p, the 4"00"5!n1 e0e/ents
re 9"ns!dered, ?(@ the se0e9t!"n nd
en11e/ent "4 the 5"r:ersE ?*@ the py/ent "4
51es by 5hte$er /ensE ?2@ the p"5er "4
d!s/!ss0E nd ?6@ the p"5er t" 9"ntr"0 the
5"r:erHs 9"nd%9t, 5!th the 0tter ss%/!n1
pr!/9y !n the "$er00 9"ns!dert!"n&;*7< The
/"st !/p"rtnt e0e/ent !s the e/p0"yerHs
9"ntr"0 "4 the e/p0"yeeHs 9"nd%9t, n"t "n0y s
t" the res%0t "4 the 5"r: t" be d"ne, b%t 0s" s
t" the /ens nd /eth"ds t" 99"/p0!sh&;*><
The p"5er "4 9"ntr"0 re4ers t" the e3!sten9e "4
the p"5er nd n"t ne9essr!0y t" the 9t%0
e3er9!se there"4& It !s n"t essent!0 4"r the
e/p0"yer t" 9t%00y s%per$!se the
per4"r/n9e "4 d%t!es "4 the e/p0"yeeE !t !s
en"%1h tht the e/p0"yer hs the r!1ht t"
5!e0d tht p"5er&;*)< A00 the 4"res!d
e0e/ents re present !n th!s 9se&

F!rst& It !s e3press0y pr"$!ded !n the Ser$!9e
C"ntr9ts tht !t !s the resp"ndent 9""pert!$e
5h!9h hs the e390%s!$e d!s9ret!"n !n the
se0e9t!"n nd en11e/ent "4 the "5ners#
/e/bers s 5e00 s !ts te/ 0eders 5h" 5!00
be ss!1ned t StnA09"&;*=< Se9"nd& I1es
re deAned s Mre/%nert!"n "r ern!n1s,
h"5e$er des!1nted, 9pb0e "4 be!n1
e3pressed !n ter/s "4 /"ney, 5hether A3ed "r
s9ert!ned, "n t!/e, ts:, p!e9e "r
9"//!ss!"n bs!s, "r "ther /eth"d "4
909%0t!n1 the s/e, 5h!9h !s pyb0e by n
e/p0"yer t" n e/p0"yee %nder 5r!tten "r
%n5r!tten 9"ntr9t "4 e/p0"y/ent 4"r 5"r:
d"ne "r t" be d"ne, "r 4"r ser$!9e rendered "r
t" be rendered&N;*8< In th!s 9se, the 5ee:0y
st!pends "r the s"#900ed shres !n the ser$!9e
s%rp0%s 1!$en by the resp"ndent 9""pert!$e t"
!ts "5ners#/e/bers 5ere !n re0!ty 51es, s
the s/e 5ere eB%!$0ent t" n /"%nt n"t
0"5er thn tht pres9r!bed by e3!st!n1 0b"r
05s, r%0es nd re1%0t!"ns, !n90%d!n1 the 51e
"rder pp0!9b0e t" the re nd !nd%stryE "r
the s/e sh00 n"t be 0"5er thn the pre$!0!n1
rtes "4 51es&;2+< It 9nn"t be d"%bted then
tht th"se st!pends "r shres !n the ser$!9e
s%rp0%s re !ndeed 51es, be9%se these re
1!$en t" the "5ners#/e/bers s 9"/penst!"n
!n render!n1 ser$!9es t" resp"ndent
9""pert!$eHs 90!ent, StnA09"& Th!rd& It !s 0s"
stted !n the b"$e#/ent!"ned Ser$!9e
C"ntr9ts tht !t !s the resp"ndent 9""pert!$e
5h!9h hs the p"5er t" !n$est!1te, d!s9!p0!ne
nd re/"$e the "5ners#/e/bers nd !ts te/
0eders 5h" 5ere render!n1 ser$!9es t
StnA09"&;2(< F"%rth& As er0!er "p!ned, "4 the
4"%r e0e/ents "4 the e/p0"yer#e/p0"yee
re0t!"nsh!p, the M9"ntr"0 testN !s the /"st
!/p"rtnt& In the 9se t br, !t !s the
resp"ndent 9""pert!$e 5h!9h hs the s"0e
9"ntr"0 "$er the /nner nd /ens "4
per4"r/!n1 the ser$!9es %nder the Ser$!9e
C"ntr9ts 5!th StnA09" s 5e00 s the /ens
nd /eth"ds "4 5"r:&;2*< A0s", the resp"ndent
9""pert!$e !s s"0e0y nd ent!re0y resp"ns!b0e
4"r !ts "5ners#/e/bers, te/ 0eders nd
"ther representt!$es t StnA09"&;22< A00
these 90er0y pr"$e tht, !ndeed, there !s n
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers&

It !s tr%e tht the Ser$!9e C"ntr9ts e3e9%ted
bet5een the resp"ndent 9""pert!$e nd
StnA09" e3press0y pr"$!de tht there sh00 be
n" e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
the resp"ndent 9""pert!$e nd !ts "5ners#
/e/bers&;26< Th!s C"%rt, h"5e$er, 9nn"t
1!$e the s!d pr"$!s!"n 4"r9e nd eFe9t&

As pre$!"%s0y p"!nted "%t by th!s C"%rt, n
e/p0"yee#e/p0"yer re0t!"nsh!p 9t%00y e3!sts
bet5een the resp"ndent 9""pert!$e nd !ts
"5ners#/e/bers& The 4"%r e0e/ents !n the
4"%r#4"0d test 4"r the e3!sten9e "4 n
e/p0"y/ent re0t!"nsh!p h$e been 9"/p0!ed
5!th& The resp"ndent 9""pert!$e /%st n"t be
00"5ed t" deny !ts e/p0"y/ent re0t!"nsh!p
5!th !ts "5ners#/e/bers by !n$":!n1 the
B%est!"nb0e Ser$!9e C"ntr9ts pr"$!s!"n, 5hen
!n 9t%0!ty, !t d"es e3!st& The e3!sten9e "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p 9nn"t be
ne1ted by e3press0y rep%d!t!n1 !t !n
9"ntr9t, 5hen the ter/s nd s%rr"%nd!n1
9!r9%/stn9es sh"5 "ther5!se& The
e/p0"y/ent stt%s "4 pers"n !s deAned nd
pres9r!bed by 05 nd n"t by 5ht the prt!es
sy !t sh"%0d be&;27<

It !s sett0ed tht the 9"ntr9t!n1 prt!es /y
estb0!sh s%9h st!p%0t!"ns, 90%ses, ter/s nd
9"nd!t!"ns s they 5nt, nd the!r 1ree/ent
5"%0d h$e the 4"r9e "4 05 bet5een the/&
H"5e$er, the 1reed ter/s nd 9"nd!t!"ns
/%st n"t be 9"ntrry t" 05, /"r0s, 9%st"/s,
p%b0!9 p"0!9y "r p%b0!9 "rder&;2>< The Ser$!9e
C"ntr9t pr"$!s!"n !n B%est!"n /%st be str%9:
d"5n 4"r be!n1 9"ntrry t" 05 nd p%b0!9
p"0!9y s!n9e !t !s pprent0y be!n1 %sed by the
resp"ndent 9""pert!$e /ere0y t" 9!r9%/$ent
the 9"/p%0s"ry 9"$er1e "4 !ts e/p0"yees,
5h" re 0s" !ts "5ners#/e/bers, by the S"9!0
Se9%r!ty L5&

Th!s C"%rt !s n"t %n/!nd4%0 "4 the
pr"n"%n9e/ent !t /de !n C""pert!$e R%r0
Bn: "4 D$" C!ty, In9& $& Ferrer#C00eC;2)<
5here!n !t he0d tht,

A 9""pert!$e, there4"re, !s by !ts nt%re
d!Ferent 4r"/ n "rd!nry b%s!ness 9"n9ern,
be!n1 r%n e!ther by pers"ns, prtnersh!ps, "r
9"rp"rt!"ns& Its "5ners ndK"r /e/bers re
the "nes 5h" r%n nd "perte the b%s!ness
5h!0e the "thers re !ts e/p0"yees 3 3 3&

An e/p0"yee there4"re "4 s%9h 9""pert!$e
5h" !s /e/ber nd 9"#"5ner there"4 9nn"t
!n$":e the r!1ht t" 9"00e9t!$e br1!n!n1 4"r
9ert!n0y n "5ner 9nn"t br1!n 5!th h!/se04
"r h!s 9"#"5ners& In the "p!n!"n "4 A%1%st (6,
(8=( "4 the S"0!9!t"r 'ener0 he 9"rre9t0y
"p!ned tht e/p0"yees "4 9""pert!$es 5h" re
the/se0$es /e/bers "4 the 9""pert!$e h$e
n" r!1ht t" 4"r/ "r C"!n 0b"r "r1n!Dt!"ns 4"r
p%rp"ses "4 9"00e9t!$e br1!n!n1 4"r be!n1
the/se0$es 9"#"5ners "4 the 9""pert!$e&

H"5e$er, !n s" 4r s !t !n$"0$es 9""pert!$es
5!th e/p0"yees 5h" re n"t /e/bers "r 9"#
"5ners there"4, 9ert!n0y s%9h e/p0"yees re
ent!t0ed t" e3er9!se the r!1hts "4 00 5"r:ers t"
"r1n!Dt!"n, 9"00e9t!$e br1!n!n1,
ne1"t!t!"ns nd "thers s re enshr!ned !n the
C"nst!t%t!"n nd e3!st!n1 05s "4 the 9"%ntry&


The s!t%t!"n !n the 4"res!d 9se !s $ery
/%9h d!Ferent 4r"/ the present 9se& The
de90rt!"n /de by the C"%rt !n the 4"res!d
9se 5s /de !n the 9"nte3t "4 5hether n
e/p0"yee 5h" !s 0s" n "5ner#/e/ber "4
9""pert!$e 9n e3er9!se the r!1ht t" br1!n
9"00e9t!$e0y 5!th the e/p0"yer 5h" !s the
9""pert!$e 5here!n he !s n "5ner#/e/ber&
Ob$!"%s0y, n "5ner#/e/ber 9nn"t br1!n
9"00e9t!$e0y 5!th the 9""pert!$e "4 5h!9h he !s
0s" the "5ner be9%se n "5ner 9nn"t
br1!n 5!th h!/se04& In the !nstnt 9se, there
!s n" !ss%e re1rd!n1 n "5ner#/e/berHs r!1ht
t" br1!n 9"00e9t!$e0y 5!th the 9""pert!$e&
The B%est!"n !n$"0$ed here !s 5hether n
e/p0"yer#e/p0"yee re0t!"nsh!p 9n e3!st
bet5een the 9""pert!$e nd n "5ner#
/e/ber& In 49t, 90"ser 0"": t C""pert!$e
R%r0 Bn: "4 D$" C!ty, In9& 5!00 sh"5 tht !t
9t%00y re9"1n!Ded tht n "5ner#/e/ber "4
9""pert!$e 9n be !ts "5n e/p0"yee&

It bers stress!n1, t"", tht 9""pert!$e
9B%!res C%r!d!90 pers"n0!ty %p"n !ts
re1!strt!"n 5!th the C""pert!$e De$e0"p/ent
A%th"r!ty&;2=< It hs !ts B"rd "4 D!re9t"rs,
5h!9h d!re9ts nd s%per$!ses !ts b%s!nessE
/en!n1, !ts B"rd "4 D!re9t"rs !s the "ne !n
9hr1e !n the 9"nd%9t nd /n1e/ent "4 !ts
F!rs&;28< I!th tht, 9""pert!$e 9n be
0!:ened t" 9"rp"rt!"n 5!th pers"n0!ty
seprte nd d!st!n9t 4r"/ !ts "5ners#
/e/bers& C"nseB%ent0y, n "5ner#/e/ber "4
9""pert!$e 9n be n e/p0"yee "4 the 0tter
nd n e/p0"yer#e/p0"yee re0t!"nsh!p 9n
e3!st bet5een the/&

In the present 9se, !t !s n"t d!sp%ted tht the
resp"ndent 9""pert!$e hd re1!stered !tse04
5!th the C""pert!$e De$e0"p/ent A%th"r!ty,
s e$!den9ed by !ts Cert!A9te "4 Re1!strt!"n
N"& +#>*2#*6>+&;6+< In !ts by#05s,;6(< !ts
B"rd "4 D!re9t"rs d!re9ts, 9"ntr"0s, nd
s%per$!ses the b%s!ness nd /n1es the
pr"perty "4 the resp"ndent 9""pert!$e&
C0er0y then, the /n1e/ent "4 the F!rs "4
the resp"ndent 9""pert!$e !s $ested !n !ts
B"rd "4 D!re9t"rs nd n"t !n !ts "5ners#
/e/bers s 5h"0e& There4"re, !t !s
9"/p0ete0y 0"1!90 tht the resp"ndent
9""pert!$e, s C%r!d!90 pers"n represented
by !ts B"rd "4 D!re9t"rs, 9n enter !nt" n
e/p0"y/ent 5!th !ts "5ners#/e/bers&

In s%/, h$!n1 de90red tht there !s n
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een the
resp"ndent 9""pert!$e nd !ts "5ners#
/e/ber, 5e 9"n90%de tht the pet!t!"ner SSC
hs C%r!sd!9t!"n "$er the pet!t!"n#9"/p0!nt
A0ed be4"re !t by the pet!t!"ner SSS& Th!s be!n1
"%r 9"n90%s!"n, !t !s n" 0"n1er ne9essry t"
d!s9%ss the !ss%e "4 5hether the resp"ndent
9""pert!$e 5s est"pped 4r"/ ss!0!n1 the
C%r!sd!9t!"n "4 the pet!t!"ner SSC 5hen !t A0ed
!ts Ans5er 5!th M"t!"n t" D!s/!ss&

IHEREFORE, pre/!ses 9"ns!dered, the !nstnt
Pet!t!"n !s hereby 'RANTED& The De9!s!"n nd
the Res"0%t!"n "4 the C"%rt "4 Appe0s !n CA#
'&R& SP N"& =)*2>, dted 7 -n%ry *++> nd
*+ Mr9h *++>, respe9t!$e0y, re hereby
REVERSED nd SET ASIDE& The Orders "4 the
pet!t!"ner SSC dted () Febr%ry *++6 nd (>
Septe/ber *++6 re hereby REINSTATED& The
pet!t!"ner SSC !s hereby DIRECTED t" 9"nt!n%e
her!n1 the pet!t!"n#9"/p0!nt A0ed be4"re !t by
the pet!t!"ner SSS s re1rds the 9"/p%0s"ry
9"$er1e "4 the resp"ndent 9""pert!$e nd !ts
"5ners#/e/bers& N" 9"sts&


SO ORDERED&
Rep%b0!9 "4 the Ph!0!pp!nes
SUPREME COURT
Mn!0
SECOND DIVISION

'&R& N"& >686= Septe/ber *), (886
MANILA 'OLF O COUNTRY CLUB, INC&,
pet!t!"ner,
$s&
INTERMEDIATE APPELLATE COURT nd FERMIN
LLAMAR, resp"ndents&
B!t", M!s O L"Dd 4"r pet!t!"ner&
Re/bert" .& E$!" 4"r pr!$te resp"ndent&

NARVASA, C&-&,
The B%est!"n be4"re the C"%rt here !s 5hether
"r n"t pers"ns render!n1 9ddy!n1 ser$!9es 4"r
/e/bers "4 1"04 90%bs nd the!r 1%ests !n s!d
90%bsP 9"%rses "r pre/!ses re the e/p0"yees
"4 s%9h 90%bs nd there4"re 5!th!n the
9"/p%0s"ry 9"$er1e "4 the S"9!0 Se9%r!ty
Syste/ ?SSS@&
Tht B%est!"n ppers t" h$e been !n$"0$ed,
e!ther d!re9t0y "r per!pher00y, !n three seprte
pr"9eed!n1s, 00 !n!t!ted by "r "n beh04 "4
here!n pr!$te resp"ndent nd h!s 4e00"5
9dd!es& Tht 5h!9h 1$e r!se t" the present
pet!t!"n 4"r re$!e5 5s "r!1!n00y A0ed 5!th the
S"9!0 Se9%r!ty C"//!ss!"n ?SSC@ $! pet!t!"n
"4 se$enteen ?()@ pers"ns 5h" sty0ed
the/se0$es QCdd!es "4 Mn!0 '"04 nd
C"%ntry C0%b#PTCCEAQ 4"r 9"$er1e nd
$!0/ent "4 beneAts %nder the S"9!0 Se9%r!ty
A9t s /ended, QPTCCEAQ be!n1
the 9r"ny/ "4 0b"r "r1n!Dt!"n, the
QPh!0!pp!ne Te9hn!90, C0er!90, C"//er9!0
E/p0"yees Ass"9!t!"n,Q 5!th 5h!9h the
pet!t!"ners 90!/ed t" be G0!ted& The
pet!t!"n, d"9:eted s SSC Cse N"& 7662,
00e1ed !n essen9e tht 0th"%1h the
pet!t!"ners 5ere e/p0"yees "4 the Mn!0 '"04
nd C"%ntry C0%b, d"/est!9 9"rp"rt!"n, the
0tter hd n"t re1!stered the/ s s%9h 5!th the
SSS&
At b"%t the s/e t!/e, t5" "ther pr"9eed!n1s
ber!n1 "n the s/e B%est!"n 5ere A0ed "r
5ere pend!n1E these 5ere,
?(@ 9ert!A9t!"n e0e9t!"n 9se A0ed 5!th
the Lb"r Re0t!"ns D!$!s!"n "4 the M!n!stry "4
Lb"r by the PTCCEA "n beh04 "4 the s/e
9dd!es "4 the Mn!0 '"04 nd C"%ntry C0%b,
the 9se be!n1 t!t0ed QPh!0!pp!ne Te9hn!90,
C0er!90, C"//er9!0 Ass"9!t!"n $s& Mn!0
'"04 nd C"%ntry C0%bQ nd d"9:eted s Cse
N"& R6#LRDR#M#(+#7+6#)=E !t ppers t" h$e
been res"0$ed !n 4$"r "4 the pet!t!"ners
there!n by Med#Arb!ter Or0nd" S& R"C" 5h" 5s
there4ter %phe0d by D!re9t"r Cr/e0" S& N"r!e0,
deny!n1 the C0%bPs /"t!"n 4"r re9"ns!dert!"nE
(
?*@ 9"/p%0s"ry rb!trt!"n 9se !n!t!ted
be4"re the Arb!trt!"n Brn9h "4 the M!n!stry "4
Lb"r by the s/e 0b"r "r1n!Dt!"n, t!t0ed
QPh!0!pp!ne Te9hn!90, C0er!90, C"//er9!0
E/p0"yees Ass"9!t!"n ?PTCCEA@, Fer/!n L/r
nd Ry/%nd" -"/": $s& Mn!0 '"04 nd
C"%ntry C0%b, In9&, M!1%e0 Ce0drn, Henry L!/
nd 'er"n!/" A0eC"EQ !t 5s d!s/!ssed 4"r 09:
"4 /er!t by Lb"r Arb!ter C"rne0!" T& L!nsn1n,
de9!s!"n 0ter Gr/ed "n ppe0 by the
Nt!"n0 Lb"r Re0t!"ns C"//!ss!"n "n the
1r"%nd tht there 5s n" e/p0"yer#e/p0"yee
re0t!"nsh!p bet5een the pet!t!"n!n1 9dd!es
nd the resp"ndent C0%b& *
In the 9se be4"re the SSC, the resp"ndent
C0%b A0ed ns5er pry!n1 4"r the d!s/!ss0 "4
the pet!t!"n, 00e1!n1 !n s%bstn9e tht the
pet!t!"ners, 9dd!es by "99%pt!"n, 5ere
00"5ed !nt" the C0%b pre/!ses t" render
ser$!9es s s%9h t" the !nd!$!d%0 /e/bers nd
1%ests p0y!n1 the C0%bPs 1"04 9"%rse nd 5h"
the/se0$es p!d 4"r s%9h ser$!9esE tht s s%9h
9dd!es, the pet!t!"ners 5ere n"t s%bCe9t t" the
d!re9t!"n nd 9"ntr"0 "4 the C0%b s re1rds the
/nner !n 5h!9h they per4"r/ed the!r 5"r:E
nd hen9e, they 5ere n"t the C0%bPs
e/p0"yees&
S%bseB%ent0y, 00 b%t t5" "4 the se$enteen
pet!t!"ners "4 the!r "5n 99"rd 5!thdre5 the!r
90!/ 4"r s"9!0 se9%r!ty 9"$er1e, $"5ed0y
9"/!n1 t" re0!De tht !ndeed there 5s n"
e/p0"y/ent re0t!"nsh!p bet5een the/ nd
the C0%b& The 9se 9"nt!n%ed, nd 5s
e$ent%00y dC%d!9ted by the SSC 4ter
pr"tr9ted pr"9eed!n1s "n0y s re1rds the t5"
h"0d"%ts, Fer/!n L0/r nd Ry/%nd" -"/":&
The C"//!ss!"n d!s/!ssed the pet!t!"n 4"r 09:
"4 /er!t, 2 r%0!n1,
& & & tht the 9ddyPs 4ees 5ere p!d by the 1"04
p0yers the/se0$es nd n"t by resp"ndent
90%b& F"r !nstn9e, pet!t!"ner Ry/%nd" -"/":
$erred tht 4"r the!r ser$!9es s 9dd!es
9ddyPs C0!/ St%b ?E3h& Q(#AQ@ !s !ss%ed by
p0yer 5h" 5!00 !n t%rn hnd "$er t"
/n1e/ent the "ther p"rt!"n "4 the st%b
:n"5n s Cddy T!9:et ?E3h& Q(Q@ s" tht by
th!s rrn1e/ent /n1e/ent 5!00 :n"5 h"5
/%9h 9ddy 5!00 be p!d ?TSN, p& =+, -%0y *2,
(8=+@& L!:e5!se, pet!t!"ner Fer/!n L0/r
d/!tted tht 9ddy 5"r:s "n h!s "5n !n
99"rdn9e 5!th the r%0es nd re1%0t!"ns
?TSN, p& *6, Febr%ry *>, (8=+@ b%t pet!t!"ner
-"/": 9"%0d n"t stte ny p"0!9y "4 resp"ndent
tht d!re9ts the /nner "4 9ddy!n1 ?TSN, pp&
)>#)), -%0y *2, (8=+@& Ih!0e resp"ndent 90%b
pr"/%01tes r%0es nd re1%0t!"ns "n the
ss!1n/ent, dep"rt/ent nd 9"nd%9t "4
9dd!es ?E3h& QCQ@ the s/e re des!1ned t"
!/p"se pers"n0 d!s9!p0!ne /"n1 the 9dd!es
b%t n"t t" d!re9t "r 9"nd%9t the!r 9t%0 5"r:&
In 49t, 1"04 p0yer !s t 0!berty t" 9h""se
9ddy "4 h!s pre4eren9e re1rd0ess "4 the
resp"ndent 90%bPs 1r"%p r"tt!"n syste/ nd
hs the d!s9ret!"n "n 5hether "r n"t t" py
9ddy& As test!Aed t" by pet!t!"ner L0/r tht
the!r !n9"/e depends "n the n%/ber "4 p0yers
en11!n1 the!r ser$!9es nd 0!ber0!ty "4 the
0tter ?TSN, pp& (+#((, Feb& *>, (8=+@& Th!s
0ends 9reden9e t" resp"ndentPs ssert!"n tht
the 9dd!es re ne$er the!r e/p0"yees !n the
bsen9e "4 t5" e0e/ents, n/e0y, ?(@ py/ent
"4 51es nd ?*@ 9"ntr"0 "r s%per$!s!"n "$er
the/& In th!s 9"nne9t!"n, "%r S%pre/e C"%rt
r%0ed tht !n the deter/!nt!"n "4 the e3!sten9e
"4 n e/p0"yer#e/p0"yee re0t!"nsh!p, the
Q9"ntr"0 testQ sh00 be 9"ns!dered de9!s!$e
?Ph!0!pp!ne Mn%49t%r!n1 C"& $s& 'er"n!/" nd
'r9!, 8> Ph!0& *)>E Mns0 $s& P&P& C"he9"
L%/ber C"&, 8> Ph!0& 86(E V!n $s&
A0#01dn, et 0&, 88 Ph!0& 6+=E Vd, de An1, et
0& $s& The Mn!0 H"te0 C"&, (+( Ph!0& 27=, LVN
P!9t%res In9& $s& Ph!0& M%s!9!ns '%!0d, et 0&,
L#(*7=*, -n%ry *=, (8>(, ( SCRA (2*& & & &
?re4eren9e be!n1 /de 0s" t" In$est/ent
P0nn!n1 C"rp"rt!"n Ph!0& $s& SSS *( SCRA
8*7@&
Re9"rds sh"5 the resp"ndent 90%b hd
rep"rted 4"r SS 9"$er1e 'r9!n" A5!t nd
Dn!e0 S%!Cn", s bt %n0"der nd he0per,
respe9t!$e0y, !n90%d!n1 the!r 1r"%nd /en, h"%se
nd d/!n!strt!$e pers"nne0, s!t%t!"n
!nd!9t!$e "4 the 0tterPs 9"n9ern 5!th the r!1hts
nd 5e04re "4 !ts e/p0"yees %nder the SS 05,
s /ended& The %nreb%tted test!/"ny "4 C"0&
'ener"s" A& A0eC" ?Ret&@ tht the ID 9rds
!ss%ed t" the 9dd!es /ere0y !ntended t"
!dent!4y the h"0ders s 99red!ted 9dd!es "4
the 90%b nd pr!$!0e1e?d@ t" p0y the!r trde "r
"99%pt!"n 5!th!n !ts pre/!ses 5h!9h 9"%0d be
5!thdr5n nyt!/e 4"r 0"ss "4 9"nAden9e& Th!s
1!$es %s res"nb0e 1r"%nd t" stte tht the
de4ense p"st%re "4 resp"ndent tht pet!t!"ners
5ere ne$er !ts e/p0"yees !s 5e00 t:en& 6
Fr"/ th!s Res"0%t!"n ppe0 5s t:en t" the
Inter/ed!te ppe00te C"%rt by the %n!"n
represent!n1 L0/r nd -"/":& A4ter the
ppe0 5s d"9:eted 7 nd s"/e /"nths
be4"re de9!s!"n there"n 5s re9hed nd
pr"/%01ted, Ry/%nd" -"/":Ps ppe0 5s
d!s/!ssed t h!s !nstn9e, 0e$!n1 Fer/!n
L0/r the 0"ne ppe00nt& >
The ppe0 s9r!bed t5" err"rs t" the SSC,
?(@ re4%s!n1 t" s%spend the pr"9eed!n1s t"
5!t C%d1/ent by the Lb"r Re0t!"ns D!$!s!"n
"4 Nt!"n0 Cp!t0 Re1!"n0 OG9e !n the
9ert!A9t!"n e0e9t!"n 9se ?R#6#LRD#M#(+#7+6#
)=@ s%pr, "n the pre9!se !ss%e "4 the e3!sten9e
"4 e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
the resp"ndent 90%b nd the ppe00nts, !t
be!n1 9"ntended tht s!d !ss%e 5s Q
4%n9t!"n "4 the pr"per 0b"r "G9eQE nd
?*@ dC%d!9t!n1 tht se04 s/e !ss%e
/nner 9"ntrry t" the r%0!n1 "4 the D!re9t"r "4
the B%re% "4 Lb"r Re0t!"ns, 5h!9h Qhs n"t
"n0y be9"/e An0 b%t ?hs been@ e3e9%ted "r
?be9"/e@ res dC%d!9t&Q )
The Inter/ed!te Appe00te C"%rt 1$e sh"rt
sh!rt t" the Arst ss!1ned err"r, d!s/!ss!n1 !t s
"4 the 0est !/p"rtn9e& N"r, !t 5"%0d pper,
d!d !t And ny 1reter /er!t !n the se9"nd
00e1ed err"r& A0th"%1h s!d C"%rt reser$ed the
ppe0ed SSC de9!s!"n nd de90red Fer/!n
L0/r n e/p0"yee "4 the Mn!0 '"0d nd
C"%ntry C0%b, "rder!n1 tht he be rep"rted s
s%9h 4"r s"9!0 se9%r!ty 9"$er1e nd p!d ny
9"rresp"nd!n1 beneAts, = !t 9"nsp!9%"%s0y
!1n"red the !ss%e "4 res dC%d!9t r!sed !n
s!d se9"nd ss!1n/ent& Insted, !t dre5 bs!s
4"r the re$ers0 4r"/ th!s C"%rtPs r%0!n1 !n
In$est/ent P0nn!n1 C"rp"rt!"n "4 the
Ph!0!pp!nes $s& S"9!0 Se9%r!ty Syste/, s%pr 8
nd de90red tht %p"n the e$!den9e, the
B%est!"ned e/p0"yer#e/p0"yee re0t!"nsh!p
bet5een the C0%b nd Fer/!n L0/r pssed
the s"#900ed Q9"ntr"0 test,Q estb0!sh/ent !n
the 9se T !&e&, Q5hether the e/p0"yer 9"ntr"0s
"r hs reser$ed the r!1ht t" 9"ntr"0 the
e/p0"yee n"t "n0y s t" the res%0t "4 the 5"r:
t" be d"ne b%t 0s" s t" the /ens nd
/eth"ds by 5h!9h the s/e !s t" be
99"/p0!shed,Q T the C0%bPs 9"ntr"0 "$er the
9dd!es en9"/pss!n1,
?@ the pr"/%01t!"n "4 n" 0ess thn
t5enty#4"%r ?*6@ r%0es nd re1%0t!"ns C%st
b"%t e$ery spe9t "4 the 9"nd%9t tht the
9ddy /%st "bser$e, "r $"!d, 5hen ser$!n1 s
s%9h, ny $!"0t!"n "4 ny 5h!9h 9"%0d s%bCe9t
h!/ t" d!s9!p0!nry 9t!"n, 5h!9h /y !n90%de
s%spend!n1 "r 9%tt!n1 "F h!s 99ess t" the 90%b
pre/!sesE
?b@ the de$!s!n1 nd en4"r9e/ent "4
1r"%p r"tt!"n syste/ 5hereby 9ddy !s
ss!1ned n%/ber 5h!9h des!1ntes h!s t%rn
t" ser$e p0yerE
?9@ the 90%bPs Qs%11est!n1Q the rte "4 4ees
pyb0e t" the 9dd!es&
Dee/ed "4 t!t0e "r n" /"/ent by the Appe00te
C"%rt 5s the 49t tht the 9dd!es 5ere p!d
by the p0yers, n"t by the C0%b, tht they
"bser$ed n" deAn!te 5"r:!n1 h"%rs nd erned
n" A3ed !n9"/e& It B%"ted 5!th ppr"$0 4r"/
n A/er!9n de9!s!"n (+ t" the eFe9t tht,
Q5hether the 90%b p!d the 9dd!es nd
4ter5rd 9"00e9ted !n the Arst !nstn9e, the
9dd!es 5ere st!00 e/p0"yees "4 the 90%b&Q Th!s,
n" /tter tht the 9se 5h!9h pr"d%9ed th!s
r%0!n1 hd s0!1ht0y d!Ferent 49t%0 9st,
pprent0y h$!n1 !n$"0$ed 90!/ 4"r
5"r:/enPs 9"/penst!"n /de by 9ddy
5h", b"%t t" 0e$e the pre/!ses "4 the 90%b
5here he 5"r:ed, 5s h!t nd !nC%red by n
%t"/"b!0e then ne1"t!t!n1 the 90%bPs pr!$te
dr!$e5y&
Tht s/e !ss%e "4 res dC%d!9t, !1n"red by
the IAC bey"nd bre /ent!"n there"4, s
0redy p"!nted "%t, !s n"5 /"n1 the
/!n5ys "4 the pr!$te resp"ndentPs de4enses
t" the pet!t!"n 4"r re$!e5& C"ns!dered !n the
perspe9t!$e "4 the !n9!dents C%st re9"%nted, !t
!00%strtes s 5e00 s nyth!n1 9n, 5hy the
pr9t!9e "4 4"r%/#sh"pp!n1 C%st0y /er!ts
9ens%re nd p%n!t!$e sn9t!"n& Be9%se the
s/e B%est!"n "4 e/p0"yer#e/p0"yee
re0t!"nsh!p hs been dr11ed !nt" three
d!Ferent 4"r, 5!00y#n!00y nd !n B%!9:
s%99ess!"n, !t hs b!rthed 9"ntr"$ersy s t"
5h!9h "4 the res%0t!n1 dC%d!9t!"ns /%st n"5
be re9"1n!Ded s de9!s!$e& On the "ne hnd,
there !s the 9ert!A9t!"n 9se ;R6#LRDR#M#(+#
7+6#)=@, 5here the de9!s!"n "4 the Med#Arb!ter
4"%nd 4"r the e3!sten9e "4 e/p0"yer#e/p0"yee
re0t!"nsh!p bet5een the prt!es, 5s Gr/ed
by D!re9t"r Cr/e0" S& N"r!e0, 5h" "rdered
9ert!A9t!"n e0e9t!"n he0d, d!sp"s!t!"n ne$er
there4ter ppe0ed 99"rd!n1 t" the pr!$te
resp"ndentE "n the "ther, the 9"/p%0s"ry
rb!trt!"n 9se ?NCR Cse N"& AB#6#())(#)8@,
!nst!t%ted by "r 4"r the s/e resp"ndent t
b"%t the s/e t!/e, 5h!9h 5s d!s/!ssed 4"r
09: "4 /er!t by the Lb"r Arb!ter, 5h!9h 5s
4ter5rds Gr/ed by the NLRC !tse04 "n the
1r"%nd tht there e3!sted n" s%9h re0t!"nsh!p
bet5een the C0%b nd the pr!$te resp"ndent&
And, s !4 /tters 5ere n"t 0redy
9"/p0!9ted en"%1h, the s/e resp"ndent,
5!th the s%pp"rt nd ss!stn9e "4 the PTCCEA,
s5 At, 0s" 9"nte/p"rne"%s0y, t" !n!t!te st!00
th!rd pr"9eed!n1 4"r 9"/p%0s"ry s"9!0
se9%r!ty 9"$er1e 5!th the S"9!0 Se9%r!ty
C"//!ss!"n ?SSC Cse N"& 7662@, 5!th the
res%0t 0redy /ent!"ned&
Be4"re th!s C"%rt, the pet!t!"ner C0%b n"5
9"ntends tht the de9!s!"n "4 the Med#Arb!ter
!n the 9ert!A9t!"n 9se hd ne$er be9"/e
An0, be!n1 !n 49t the s%bCe9t "4 three pend!n1
nd %nres"0$ed /"t!"ns 4"r re9"ns!dert!"n, s
5e00 s "4 0ter /"t!"n 4"r er0y res"0%t!"n& ((
Un4"rt%nte0y, n"ne "4 these /"t!"ns !s
!n9"rp"rted "r repr"d%9ed !n the re9"rd
be4"re the C"%rt& And, 4"r h!s prt, the pr!$te
resp"ndent 9"ntends, n"t "n0y tht s!d
de9!s!"n hd been ppe0ed t" nd been
Gr/ed by the D!re9t"r "4 the BLR, b%t tht
9ert!A9t!"n e0e9t!"n hd !n 49t been he0d,
5h!9h res%0ted !n the PTCCEA be!n1 re9"1n!Ded
s the s"0e br1!n!n1 1ent "4 the 9dd!es "4
the Mn!0 '"04 nd C"%ntry C0%b 5!th respe9t
t" 51es, h"%rs "4 5"r:, ter/s "4 e/p0"y/ent,
et9& (* Ihte$er the tr%th b"%t these
"pp"s!n1 9"ntent!"ns, 5h!9h the re9"rd be4"re
the C"%rt d"es n"t deB%te0y d!s90"se, the
/"re 9"ntr"00!n1 9"ns!dert!"n 5"%0d see/ t"
be tht, h"5e$er, An0 !t /y be9"/e, the
de9!s!"n !n 9ert!A9t!"n 9se, by the
$ery nt%re "4 tht pr"9eed!n1s, !s n"t s%9h s
t" 4"re90"se 00 4%rther d!sp%te bet5een the
prt!es s t" the e3!sten9e, "r n"n#e3!sten9e, "4
e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
the/&
It !s 5e00 sett0ed tht 4"r res dC%d!9t, "r the
pr!n9!p0e "4 br by pr!"r C%d1/ent, t" pp0y, the
4"00"5!n1 essent!0 reB%!s!tes /%st 9"n9%r, ?(@
there /%st be An0 C%d1/ent "r "rderE ?*@
s!d C%d1/ent "r "rder /%st be "n the /er!tsE
?2@ the 9"%rt render!n1 the s/e /%st h$e
C%r!sd!9t!"n "$er the s%bCe9t /tter nd the
prt!esE nd ?6@ there /%st be bet5een the t5"
9ses !dent!ty "4 prt!es, !dent!ty "4 s%bCe9t
/tter nd !dent!ty "4 9%se "4 9t!"n& (2
C0er0y !/p0!9!t !n these reB%!s!tes !s tht the
9t!"n "r pr"9eed!n1s !n 5h!9h !s !ss%ed the
Qpr!"r -%d1/entQ tht 5"%0d "perte !n br "4
s%bseB%ent 9t!"n bet5een the s/e prt!es
4"r the s/e 9%se, be d$ersr!0, "r
9"ntent!"%s, Q"ne h$!n1 "pp"s!n1 prt!esE ?!s@
9"ntested, s d!st!n1%!shed 4r"/ n e3 prte
her!n1 "r pr"9eed!n1& & & & "4 5h!9h the prty
see:!n1 re0!e4 hs 1!$en 0e10 n"t!9e t" the
"ther prty nd F"rded the 0tter n
"pp"rt%n!ty t" 9"ntest !tQ (6 nd 9ert!A9t!"n
9se !s n"t s%9h pr"9eed!n1, s th!s C"%rt
0redy r%0ed,
A 9ert!A9t!"n pr"9eed!n1s !s n"t Q0!t!1t!"nQ
!n the sense !n 5h!9h the ter/ !s 9"//"n0y
%nderst""d, b%t /ere !n$est!1t!"n "4 n"n#
d$ersry, 49t#And!n1 9hr9ter, !n 5h!9h the
!n$est!1t!n1 1en9y p0ys the prt "4
d!s!nterested !n$est!1t"r see:!n1 /ere0y t"
s9ert!n the des!res "4 the e/p0"yees s t"
the /tter "4 the!r representt!"n& The 9"%rt
enC"ys 5!de d!s9ret!"n !n deter/!n!n1 the
pr"9ed%re ne9essry t" !ns%re the 4!r nd 4ree
9h"!9e "4 br1!n!n1 representt!$es by the
e/p0"yees& (7
Indeed, !4 ny r%0!n1 "r C%d1/ent 9n be s!d t"
"perte s res dC%d!9t "n the 9"ntested
!ss%e "4 e/p0"yer#e/p0"yee re0t!"nsh!p
bet5een present pet!t!"ner nd the pr!$te
resp"ndent, !t 5"%0d 0"1!900y be tht rendered
!n the 9"/p%0s"ry rb!trt!"n 9se ?NCR Cse
N"& AB#6#))(#)8, s%pr@, pet!t!"ner h$!n1
sserted, 5!th"%t d!sp%te 4r"/ the pr!$te
resp"ndent, tht s!d !ss%e 5s there sB%re0y
r!sed nd 0!t!1ted, res%0t!n1 !n r%0!n1 "4 the
Arb!trt!"n Brn9h ?"4 the s/e M!n!stry "4
Lb"r@ tht s%9h re0t!"nsh!p d!d n"t e3!st, nd
5h!9h r%0!n1 5s there4ter Gr/ed by the
Nt!"n0 Lb"r Re0t!"ns C"//!ss!"n !n n
ppe0 t:en by s!d resp"ndent& (>
In ny 9se, th!s C"%rt !s n"t !n90!ned t" 00"5
pr!$te resp"ndent the beneAt "4 ny d"%bt s
t" 5h!9h "4 the 9"nL!9t!n1 r%0!n1 C%st d$erted
t" sh"%0d be 99"rded pr!/9y, 1!$en the 49t
tht !t 5s he 5h" 9t!$e0y s"%1ht the/
s!/%0tne"%s0y, s !t 5ere, 4r"/ seprte 4"r,
nd e$en !4 the 1r$er sn9t!"ns /"re 0te0y
!/p"sed by the C"%rt 4"r 4"r%/#sh"pp!n1 /y
n"t be pp0!ed t" h!/ retr"9t!$e0y&
A99"rd!n10y, the IAC !s n"t t" be 4%0ted 4"r
!1n"r!n1 pr!$te resp"ndentPs !n$"9t!"n "4 res
dC%d!9tE "n 9"ntrry, !t 9ted 9"rre9t0y !n
d"!n1 s"&
S!d C"%rtHs h"0d!n1 tht %p"n the 49ts, there
e3!sts ?"r e3!sted@ re0t!"nsh!p "4 e/p0"yer
nd e/p0"yee bet5een pet!t!"ner nd pr!$te
resp"ndent !s, h"5e$er, n"ther /tter& The
C"%rt d"es n"t 1ree tht s!d 49ts ne9essr!0y
"r 0"1!900y p"!nt t" s%9h re0t!"nsh!p, nd t"
the e390%s!"n "4 ny 4"r/ "4 rrn1e/ents,
"ther thn "4 e/p0"y/ent, tht 5"%0d /:e
the resp"ndentPs ser$!9es $!0b0e t" the
/e/bers nd 1%est "4 the pet!t!"ner&
As 0"n1 s !t !s, the 0!st /de !n the ppe0ed
de9!s!"n det!0!n1 the $r!"%s /tters "4
9"nd%9t, dress, 0n1%1e, et9& 9"$ered by the
pet!t!"nerPs re1%0t!"ns, d"es n"t, !n the /!nd
"4 the C"%rt, s" 9!r9%/s9r!be the 9t!"ns "r
C%d1/ent "4 the 9dd!es 9"n9erned s t" 0e$e
the/ 0!tt0e "r n" 4reed"/ "4 9h"!9e 5hts"e$er
!n the /nner "4 9rry!n1 "%t the!r ser$!9es& In
the $ery nt%re "4 th!n1s, 9dd!es /%st s%b/!t
t" s"/e s%per$!s!"n "4 the!r 9"nd%9t 5h!0e
enC"y!n1 the pr!$!0e1e "4 p%rs%!n1 the!r
"99%pt!"n 5!th!n the pre/!ses nd 1r"%nds "4
5hte$er 90%b they d" the!r 5"r: !n& F"r 00 tht
!s /de t" pper, they 5"r: 4"r the 90%b t"
5h!9h they tt9h the/se0$es "n s%Feren9e
b%t, "n the "ther hnd, 0s" 5!th"%t h$!n1 t"
"bser$e ny 5"r:!n1 h"%rs, 4ree t" 0e$e
nyt!/e they p0ese, t" sty 5y 4"r s 0"n1
they 0!:e& It !s n"t pretended tht !4 4"%nd
re/!ss !n the "bser$n9e "4 s!d r%0es, ny
d!s9!p0!ne /y be /eted the/ bey"nd brr!n1
the/ 4r"/ the pre/!ses 5h!9h, !t /y be
s%pp"sed, the C0%b /y d" !n ny 9se e$en
bsent ny bre9h "4 the r%0es, nd 5!th"%t
$!"0t!n1 ny r!1ht t" 5"r: "n the!r prt& A00
these 9"ns!dert!"ns 90sh 4r"nt00y 5!th the
9"n9ept "4 e/p0"y/ent&
The IAC 5"%0d p"!nt t" the 49t tht the C0%b
s%11ests the rte "4 4ees pyb0e by the
p0yers t" the 9dd!es s st!00 n"ther
!nd!9t!"n "4 the 0tterPs stt%s s e/p0"yees& It
see/s t" the C"%rt, h"5e$er, tht the
!ntend/ent "4 s%9h 49t !s t" the 9"ntrry,
sh"5!n1 tht the C0%b hs n"t the /es%re "4
9"ntr"0 "$er the !n9!dents "4 the 9dd!esP 5"r:
nd 9"/penst!"n tht n e/p0"yer 5"%0d
p"ssess&
The C"%rt 1rees 5!th pet!t!"ner tht the 1r"%p
r"tt!"n syste/ s"#900ed, !s 0ess /es%re "4
e/p0"yer 9"ntr"0 thn n ss%rn9e tht the
5"r: !s 4!r0y d!str!b%ted, 9ddy 5h" !s bsent
5hen h!s t%rn n%/ber !s 900ed s!/p0y 0"s!n1
h!s t%rn t" ser$e nd be!n1 ss!1ned !nsted
the 0st n%/ber 4"r the dy& ()
By nd 0r1e, there ppers n"th!n1 !n the
re9"rd t" re4%te the pet!t!"nerPs 90!/ tht,
?Pet!t!"ner@ hs n" /ens "4 9"/pe00!n1 the
presen9e "4 9ddy& A 9ddy !s n"t reB%!red t"
e3er9!se h!s "99%pt!"n !n the pre/!ses "4
pet!t!"ner& He /y 5"r: 5!th ny "ther 1"04
90%b "r he /y see: e/p0"y/ent 9ddy "r
"ther5!se 5!th ny ent!ty "r !nd!$!d%0 5!th"%t
restr!9t!"n by pet!t!"ner& & & &
& & & In the An0 n0ys!s, pet!t!"ner hs n" 5s
"4 9"/pe00!n1 the presen9e "4 the 9dd!es s
they re n"t reB%!red t" render deAn!te
n%/ber "4 h"%rs "4 5"r: "n s!n10e dy& E$en
the 1r"%p r"tt!"n "4 9dd!es !s n"t bs"0%te
be9%se p0yer !s t 0!berty t" 9h""se 9ddy
"4 h!s pre4eren9e re1rd0ess "4 the 9ddyPs
"rder !n the r"tt!"n&
It 9n hppen tht 9ddy 5h" hs rendered
ser$!9es t" p0yer "n "ne dy /y st!00 And
s%G9!ent t!/e t" 5"r: e0se5here& Under s%9h
9!r9%/stn9es, he /y then 0e$e the
pre/!ses "4 pet!t!"ner nd 1" t" s%9h "ther
p09e "4 5"r: tht he 5!shes ?s!9@& Or 9ddy
5h" !s "n 900 4"r prt!9%0r dy /y
de0!berte0y bsent h!/se04 !4 he hs /"re
pr"Atb0e 9ddy!n1, "r n"ther, en11e/ent !n
s"/e "ther p09e& These re th!n1s bey"nd
pet!t!"nerPs 9"ntr"0 nd 4"r 5h!9h !t !/p"ses n"
d!re9t sn9t!"ns "n the 9dd!es& & & & (=
IHEREFORE, the De9!s!"n "4 the Inter/ed!te
Appe00nt C"%rt, re$!e5 "4 5h!9h !s s"%1ht, !s
re$ersed nd set s!de, !t be!n1 hereby
de90red tht the pr!$te resp"ndent, Fer/!n
L0/r, !s n"t n e/p0"yee "4 pet!t!"ner Mn!0
'"04 nd C"%ntry C0%b nd tht pet!t!"ner !s
%nder n" "b0!1t!"n t" rep"rt h!/ 4"r
9"/p%0s"ry 9"$er1e t" the S"9!0 Se9%r!ty
Syste/& N" pr"n"%n9e/ent s t" 9"sts&
SO ORDERED&
Rep%b0!9 "4 the Ph!0!pp!nes
SUPREME COURT
Mn!0
SECOND DIVISION
'&R& N"& ((8*>= Febr%ry *2, *+++
AN'EL -ARDIN, DEMETRIO CALA'OS, URBANO
MARCOS, ROSENDO MARCOS, LUIS DE LOS
AN'ELES, -OEL ORDENI.A nd AMADO
CENTENO, pet!t!"ners,
$s&
NATIONAL LABOR RELATIONS COMMISSION
?NLRC@ nd 'OODMAN TARI ?PHIL-AMA
INTERNATIONAL, INC&@ resp"ndents&
SUISUMBIN', -&,
Th!s spe9!0 9!$!0 9t!"n 4"r 9ert!"rr! see:s t"
nn%0 the de9!s!"n( "4 p%b0!9 resp"ndent
pr"/%01ted "n O9t"ber *=, (886, !n NLRC
NCR CA N"& ++2==2#8*, nd !ts res"0%t!"n*
dted De9e/ber (2, (886 5h!9h den!ed
pet!t!"ners /"t!"n 4"r re9"ns!dert!"n&
Pet!t!"ners 5ere dr!$ers "4 pr!$te resp"ndent,
Ph!0C/ Internt!"n0 In9&, d"/est!9
9"rp"rt!"n en11ed !n the "pert!"n "4
Q'""d/n T3!&Q Pet!t!"ners %sed t" dr!$e
pr!$te resp"ndentPs t3!9bs e$ery "ther dy
"n *6#h"%r 5"r: s9hed%0e %nder the
b"%ndry syste/& Under th!s rrn1e/ent, the
pet!t!"ners erned n $er1e "4 P6++&++ d!0y&
Ne$erthe0ess, pr!$te resp"ndent d/!tted0y
re1%0r0y ded%9ts 4r"/ pet!t!"ners, d!0y
ern!n1s the /"%nt "4 P2+&++ s%pp"sed0y 4"r
the 5sh!n1 "4 the t3! %n!ts& Be0!e$!n1 tht the
ded%9t!"n !s !00e10, pet!t!"ners de9!ded t" 4"r/
0b"r %n!"n t" pr"te9t the!r r!1hts nd
!nterests&
Up"n 0ern!n1 b"%t the p0n "4 pet!t!"ners,
pr!$te resp"ndent re4%sed t" 0et pet!t!"ners
dr!$e the!r t3!9bs 5hen they rep"rted 4"r
5"r: "n A%1%st >, (88(, nd "n s%99eed!n1
dys& Pet!t!"ners s%spe9ted tht they 5ere
s!n10ed "%t be9%se they 5ere the 0eders nd
9t!$e /e/bers "4 the pr"p"sed %n!"n&
A11r!e$ed, pet!t!"ners A0ed 5!th the 0b"r
rb!ter 9"/p0!nt 1!nst pr!$te resp"ndent
4"r %n4!r 0b"r pr9t!9e, !00e10 d!s/!ss0 nd
!00e10 ded%9t!"n "4 5sh!n1 4ees& In
de9!s!"n2 dted A%1%st 2(, (88*, the 0b"r
rb!ter d!s/!ssed s!d 9"/p0!nt 4"r 09: "4
/er!t&
On ppe0, the NLRC ?p%b0!9 resp"ndent
here!n@, !n de9!s!"n dted Apr!0 *=, (886,
re$ersed nd set s!de the C%d1/ent "4 the
0b"r rb!ter& The 0b"r tr!b%n0 de90red tht
pet!t!"ners re e/p0"yees "4 pr!$te
resp"ndent, nd, s s%9h, the!r d!s/!ss0 /%st
be 4"r C%st 9%se nd 4ter d%e pr"9ess& It
d!sp"sed "4 the 9se s 4"00"5s,
IHEREFORE, !n $!e5 "4 00 the 4"re1"!n1
9"ns!dert!"ns, the de9!s!"n "4 the Lb"r
Arb!ter ppe0ed 4r"/ !s hereby SET ASIDE nd
n"ther "ne entered,
(& De90r!n1 the resp"ndent 9"/pny 1%!0ty "4
!00e10 d!s/!ss0 nd 99"rd!n10y !t !s d!re9ted
t" re!nstte the 9"/p0!nnts, n/e0y, A0bert"
A& '"nD0es, -"e0 T& M"rt", '$!n" Pnh"n,
De/etr!" L& C01"s, S"nny M& L%std", R"/e"
S& C0r!D, L%!s de 0"s An1e0es, A/d" Cent!n",
An1e0 -rd!n, R"send" Mr9"s, Urbn" Mr9"s,
-r&, nd -"e0 Orden!D, t" the!r 4"r/er p"s!t!"ns
5!th"%t 0"ss "4 sen!"r!ty nd "ther pr!$!0e1es
ppert!n!n1 theret"E t" py the 9"/p0!nnts
4%00 b9:51es nd "ther beneAts, 0ess
ern!n1s e0se5here, nd t" re!/b%rse the
dr!$ers the /"%nt p!d s 5sh!n1 9hr1esE
nd
*& D!s/!ss!n1 the 9hr1e "4 %n4!r ;0b"r<
pr9t!9e 4"r !ns%G9!en9y "4 e$!den9e&
SO ORDERED&6
Pr!$te resp"ndentPs Arst /"t!"n 4"r
re9"ns!dert!"n 5s den!ed& Re/!n!n1
h"pe4%0, pr!$te resp"ndent A0ed n"ther
/"t!"n 4"r re9"ns!dert!"n& Th!s t!/e, p%b0!9
resp"ndent, !n !ts de9!s!"n7 dted O9t"ber *=,
(886, 1rnted 4"res!d se9"nd /"t!"n 4"r
re9"ns!dert!"n& It r%0ed tht !t 09:s
C%r!sd!9t!"n "$er the 9se s pet!t!"ners nd
pr!$te resp"ndent h$e n" e/p0"yer#
e/p0"yee re0t!"nsh!p& It he0d tht the
re0t!"nsh!p "4 the prt!es !s 0eseh"0d 5h!9h !s
9"$ered by the C!$!0 C"de rther thn the Lb"r
C"de, nd d!sp"sed "4 the 9se s 4"00"5s,
VIEIED IN THE LI'HT OF ALL THE FORE'OIN',
the M"t!"n %nder re9"ns!dert!"n !s hereby
1!$en d%e 9"%rse&
A99"rd!n10y, the Res"0%t!"n "4 A%1%st (+, (886,
nd the De9!s!"n "4 Apr!0 *=, (886 re hereby
SET ASIDE& The De9!s!"n "4 the Lb"r Arb!ter
s%bCe9t "4 the ppe0 !s 0!:e5!se SET ASIDE nd
NEI ONE ENTERED d!s/!ss!n1 the 9"/p0!nt
4"r 09: "4 C%r!sd!9t!"n&
N" 9"sts&
SO ORDERED&>
E3pe9ted0y, pet!t!"ners s"%1ht re9"ns!dert!"n
"4 the 0b"r tr!b%n0Ps 0test de9!s!"n 5h!9h 5s
den!ed& Hen9e, the !nstnt pet!t!"n&
In th!s re9"%rse, pet!t!"ners 00e1e tht p%b0!9
resp"ndent 9ted 5!th"%t "r !n e39ess "4
C%r!sd!9t!"n, "r 5!th 1r$e b%se "4 d!s9ret!"n !n
render!n1 the ss!0ed de9!s!"n, r1%!n1 tht,
I
THE NLRC HAS NO -URISDICTION TO ENTERTAIN
RESPONDENTPS SECOND MOTION FOR
RECONSIDERATION IHICH IS ADMITTEDLY A
PLEADIN' PROHIBITED UNDER THE NLRC
RULES, AND TO 'RANT THE SAME ON
'ROUNDS NOT EVEN INVOUED THEREIN&
II
THE ERISTENCE OF AN EMPLOYER#EMPLOYEE
RELATIONSHIP BETIEEN THE PARTIES IS
ALREADY A SETTLED ISSUE CONSTITUTIN' RES
-UDICATA, IHICH THE NLRC HAS NO MORE
-URISDICTION TO REVERSE, ALTER OR MODIFY&
III
IN ANY CASE, ERISTIN' -URISPRUDENCE ON
THE MATTER SUPPORTS THE VIEI THAT
PETITIONERS#TARI DRIVERS ARE EMPLOYEES OF
RESPONDENT TARI COMPANY&)
The pet!t!"n !s !/pressed 5!th /er!t&
The phrse Q1r$e b%se "4 d!s9ret!"n
/"%nt!n1 t" 09: "r e39ess "4 C%r!sd!9t!"nQ hs
sett0ed /en!n1 !n the C%r!spr%den9e "4
pr"9ed%re& It /ens s%9h 9pr!9!"%s nd
5h!/s!90 e3er9!se "4 C%d1/ent by the tr!b%n0
e3er9!s!n1 C%d!9!0 "r B%s!#C%d!9!0 p"5er s t"
/"%nt t" 09: "4 p"5er&= In 0b"r 9ses, th!s
C"%rt hs de90red !n se$er0 !nstn9es tht
d!sre1rd!n1 r%0es !t !s b"%nd t" "bser$e
9"nst!t%tes 1r$e b%se "4 d!s9ret!"n "n the
prt "4 0b"r tr!b%n0&
In 'r9! $s& NLRC,8 pr!$te resp"ndent
there!n, 4ter re9e!$!n1 9"py "4 the 0b"r
rb!terPs de9!s!"n, 5r"te the 0b"r rb!ter 5h"
rendered the de9!s!"n nd e3pressed d!s/y
"$er the C%d1/ent& Ne!ther n"t!9e "4 ppe0
5s A0ed n"r 9sh "r s%rety b"nd 5s p"sted
by pr!$te resp"ndent& Ne$erthe0ess, the 0b"r
tr!b%n0 t"": 9"1n!Dn9e "4 the 0etter 4r"/
pr!$te resp"ndent nd treted s!d 0etter s
pr!$te resp"ndentPs ppe0& In 9ert!"rr!
9t!"n be4"re th!s C"%rt, 5e r%0ed tht the 0b"r
tr!b%n0 9ted 5!th 1r$e b%se "4 d!s9ret!"n !n
tret!n1 /ere 0etter 4r"/ pr!$te resp"ndent
s pr!$te resp"ndentPs ppe0 !n 90er
$!"0t!"n "4 the r%0es "n ppe0 pres9r!bed
%nder Se9t!"n 2?@, R%0e VI "4 the Ne5 R%0es "4
Pr"9ed%re "4 NLRC&
In Ph!0!pp!ne A!r0!nes In9& $s& NLRC,(+ 5e he0d
tht the 0b"r rb!ter 9"//!tted 1r$e b%se
"4 d!s9ret!"n 5hen he 4!0ed t" res"0$e
!//ed!te0y by 5r!tten "rder /"t!"n t"
d!s/!ss "n the 1r"%nd "4 09: "4 C%r!sd!9t!"n
nd the s%pp0e/ent0 /"t!"n t" d!s/!ss s
/ndted by Se9t!"n (7 "4 R%0e V "4 the Ne5
R%0es "4 Pr"9ed%re "4 the NLRC&
In Un!9ne I"r:ers Un!"n#CLUP $s& NLRC,(( 5e
he0d tht the NLRC 1r$e0y b%sed !ts
d!s9ret!"n by 00"5!n1 nd de9!d!n1 n ppe0
5!th"%t n ppe0 b"nd h$!n1 been A0ed s
reB%!red %nder Art!90e **2 "4 the Lb"r C"de&
In MVeb" $s& NLRC,(* 5e de90red tht the
0b"r rb!ter 1r$e0y b%sed !ts d!s9ret!"n !n
d!sre1rd!n1 the r%0e 1"$ern!n1 p"s!t!"n
ppers& In th!s 9se, the prt!es h$e 0redy
A0ed the!r p"s!t!"n ppers nd e$en 1reed t"
9"ns!der the 9se s%b/!tted 4"r de9!s!"n, yet
the 0b"r rb!ter st!00 d/!tted s%pp0e/ent0
p"s!t!"n pper nd /e/"rnd%/, nd by
t:!n1 !nt" 9"ns!dert!"n, s bs!s 4"r h!s
de9!s!"n, the 00e1ed 49ts dd%9ed there!n nd
the d"9%/ents tt9hed theret"&
In 'es%01"n $s& NLRC,(2 5e he0d tht p%b0!9
resp"ndent 1r$e0y b%sed !ts d!s9ret!"n !n
tret!n1 the /"t!"n t" set s!de C%d1/ent nd
5r!t "4 e3e9%t!"n s pet!t!"n 4"r re0!e4 "4
C%d1/ent& In d"!n1 s", p%b0!9 resp"ndent hd,
5!th"%t s%G9!ent bs!s, e3tended the
re10e/entry per!"d 4"r A0!n1 pet!t!"n 4"r re0!e4
4r"/ C%d1/ent 9"ntrry t" pre$!0!n1 r%0e nd
9se 05&
In th!s 9se be4"re %s, pr!$te resp"ndent
e3h%sted d/!n!strt!$e re/edy $!0b0e t"
!t by see:!n1 re9"ns!dert!"n "4 p%b0!9
resp"ndentPs de9!s!"n dted Apr!0 *=, (886,
5h!9h p%b0!9 resp"ndent den!ed& I!th th!s
/"t!"n 4"r re9"ns!dert!"n, the 0b"r tr!b%n0
hd /p0e "pp"rt%n!ty t" re9t!4y err"rs "r
/!st:es !t /y h$e 9"//!tted be4"re res"rt
t" 9"%rts "4 C%st!9e 9n be hd&(6 Th%s, 5hen
pr!$te resp"ndent A0ed se9"nd /"t!"n 4"r
re9"ns!dert!"n, p%b0!9 resp"ndent sh"%0d h$e
4"rth5!th den!ed !t !n 99"rdn9e 5!th R%0e ),
Se9t!"n (6 "4 !ts Ne5 R%0es "4 Pr"9ed%re 5h!9h
00"5s "n0y "ne /"t!"n 4"r re9"ns!dert!"n 4r"/
the s/e prty, th%s,
Se9& (6& M"t!"ns 4"r Re9"ns!dert!"n& T
M"t!"ns 4"r re9"ns!dert!"n "4 ny "rder,
res"0%t!"n "r de9!s!"n "4 the C"//!ss!"n sh00
n"t be entert!ned e39ept 5hen bsed "n
p0pb0e "r ptent err"rs, pr"$!ded tht the
/"t!"n !s %nder "th nd A0ed 5!th!n ten ?(+@
90endr dys 4r"/ re9e!pt "4 the "rder,
res"0%t!"n "r de9!s!"n 5!th pr""4 "4 ser$!9e tht
9"py "4 the s/e hs been 4%rn!shed 5!th!n
the re10e/entry per!"d the d$erse prty nd
pr"$!ded 4%rther, tht "n0y "ne s%9h /"t!"n
4r"/ the s/e prty sh00 be entert!ned&
;E/phs!s s%pp0!ed<
The rt!"n0e 4"r 00"5!n1 "n0y "ne /"t!"n 4"r
re9"ns!dert!"n 4r"/ the s/e prty !s t" ss!st
the prt!es !n "bt!n!n1 n e3ped!t!"%s nd
!ne3pens!$e sett0e/ent "4 0b"r 9ses& F"r
"b$!"%s res"ns, de0ys 9nn"t be
9"%ntenn9ed !n the res"0%t!"n "4 0b"r
d!sp%tes& The d!sp%te /y !n$"0$e n" 0ess thn
the 0!$e0!h""d "4 n e/p0"yee nd tht "4 h!s
0"$ed "nes 5h" re dependent %p"n h!/ 4"r
4""d, she0ter, 90"th!n1, /ed!9!ne, nd
ed%9t!"n& It /y s 5e00 !n$"0$e the s%r$!$0 "4
b%s!ness "r n !nd%stry&(7
As 9"rre9t0y p"!nted "%t by pet!t!"ner, the
se9"nd /"t!"n 4"r re9"ns!dert!"n A0ed by
pr!$te resp"ndent !s !nd%b!tb0y pr"h!b!ted
p0ed!n1(> 5h!9h sh"%0d h$e n"t been
entert!ned t 00& P%b0!9 resp"ndent 9nn"t
C%st d!sre1rd !ts "5n r%0es "n the prete3t "4
Qst!s4y!n1 the ends "4 C%st!9eQ,() espe9!00y
5hen !ts d!sp"s!t!"n "4 0e10 9"ntr"$ersy rn
4"%0 5!th 90er nd 0"n1 stnd!n1
C%r!spr%den9e !n th!s C%r!sd!9t!"n s e0%9!dted
!n the s%bseB%ent d!s9%ss!"n& C0er0y,
d!sre1rd!n1 sett0ed 0e10 d"9tr!ne
en%n9!ted by th!s C"%rt !s n"t 5y "4
re9t!4y!n1 n err"r "r /!st:e& In "%r $!e5,
p%b0!9 resp"ndent 1r$e0y b%sed !ts d!s9ret!"n
!n t:!n1 9"1n!Dn9e nd 1rnt!n1 pr!$te
resp"ndentPs se9"nd /"t!"n 4"r re9"ns!dert!"n
s !t 5re9:s the "rder0y pr"9ed%re !n see:!n1
re0!e4s !n 0b"r 9ses&
B%t, there !s n"ther 9"/pe00!n1 res"n 5hy 5e
9nn"t 0e$e %nt"%9hed the L!p#L"pp!n1
de9!s!"ns "4 the p%b0!9 resp"ndent& As
/ent!"ned er0!er, !ts O9t"ber *=, (886
C%d1/ent !s n"t !n 99"rd 5!th the pp0!9b0e
de9!s!"ns "4 th!s C"%rt& The 0b"r tr!b%n0
res"ned "%t s 4"00"5s,
On the !ss%e "4 5hether "r n"t e/p0"yer#
e/p0"yee re0t!"nsh!p e3!sts, d/!tted !s the
49t tht 9"/p0!nnts re t3! dr!$ers p%re0y
"n the Qb"%ndry syste/Q& Under th!s syste/
the dr!$er t:es "%t h!s %n!t nd pys the
"5nerK"pert"r 4ee 9"//"n0y 900ed
Qb"%ndryQ 4"r the %se "4 the %n!t& N"5, !n the
deter/!nt!"n the e3!sten9e "4 e/p0"yer#
e/p0"yee re0t!"nsh!p, the S%pre/e C"%rt !n
the 9se "4 Sr, et 0&, $s& A1rrd", et 0&
?'&R& N"& )2(88, *> O9t"ber (8==@ hs pp0!ed
the 4"00"5!n1 4"%r#4"0d test, Q?(@ the se0e9t!"n
nd en11e/ent "4 the e/p0"yeeE ?*@ the
py/ent "4 51esE ?2@ the p"5er "4 d!s/!ss0E
nd ?6@ the p"5er "4 9"ntr"0 the e/p0"yees
9"nd%9t&Q
QA/"n1 the 4"%r ?6@ reB%!s!tesQ, the S%pre/e
C"%rt stresses tht Q9"ntr"0 !s dee/ed the
/"st !/p"rtnt tht the "ther reB%!s!tes /y
e$en be d!sre1rdedQ& Under the 9"ntr"0 test,
n e/p0"yer#e/p0"yee re0t!"nsh!p e3!sts !4 the
Qe/p0"yerQ hs reser$ed the r!1ht t" 9"ntr"0
the Qe/p0"yeeQ n"t "n0y s t" the res%0t "4 the
5"r: d"ne b%t 0s" s t" the /ens nd
/eth"ds by 5h!9h the s/e !s t" be
99"/p0!shed& Other5!se, n" s%9h re0t!"nsh!p
e3!sts& ?Ib!d&@
App0y!n1 the 4"re1"!n1 pr/eters t" the 9se
here!n "bt!n!n1, !t !s 90er tht the resp"ndent
d"es n"t py the dr!$ers, the 9"/p0!nnts
here!n, the!r 51es& Insted, the dr!$ers py
9ert!n 4ee 4"r the %se "4 the $eh!90e& On the
/tter "4 9"ntr"0, the dr!$ers, "n9e they re
"%t p0y!n1 the!r trde, re 4ree t" 9h""se
5hte$er /nner they 9"nd%9t the!r trde nd
re bey"nd the phys!90 9"ntr"0 "4 the
"5nerK"pert"rE they the/se0$es deter/!ne
the /"%nt "4 re$en%e they 5"%0d 5nt t"
ern !n dyPs dr!$!n1E nd, /"re s!1n!A9nt0y
s!de 4r"/ the 49t tht they py 4"r the
1s"0!ne they 9"ns%/e, they 0!:e5!se sh"%0der
the 9"st "4 rep!rs "n d/1es s%st!ned by
the $eh!90es they re dr!$!n1&
Ver!0y, 00 the 4"re1"!n1 ttr!b%tes s!1n!4y tht
the re0t!"nsh!p "4 the prt!es !s /"re "4
0eseh"0d "r "ne tht !s 9"$ered by 9hrter
1ree/ent %nder the C!$!0 C"de rther thn the
Lb"r C"de&(=
The 4"re1"!n1 rt!"9!nt!"n 1"es 1!nst
pre$!0!n1 C%r!spr%den9e&
In n%/ber "4 9ses de9!ded by th!s C"%rt,(8
5e r%0ed tht the re0t!"nsh!p bet5een Ceepney
"5nersK"pert"rs "n "ne hnd nd Ceepney
dr!$ers "n the "ther %nder the b"%ndry
syste/ !s tht "4 e/p0"yer#e/p0"yee nd n"t
"4 0ess"r#0essee& Ie e3p0!ned tht !n the 0ese
"4 9htte0s, the 0ess"r 0"ses 9"/p0ete 9"ntr"0
"$er the 9htte0 0esed 0th"%1h the 0essee
9nn"t be re9:0ess !n the %se there"4,
"ther5!se he 5"%0d be resp"ns!b0e 4"r the
d/1es t" the 0ess"r& In the 9se "4 Ceepney
"5nersK"pert"rs nd Ceepney dr!$ers, the
4"r/er e3er9!se s%per$!s!"n nd 9"ntr"0 "$er
the 0tter& The /n1e/ent "4 the b%s!ness !s
!n the "5nerPs hnds& The "5ner s h"0der "4
the 9ert!A9te "4 p%b0!9 9"n$en!en9e /%st see
t" !t tht the dr!$er 4"00"5s the r"%te pres9r!bed
by the 4rn9h!s!n1 %th"r!ty nd the r%0es
pr"/%01ted s re1rds !ts "pert!"n& N"5, the
49t tht the dr!$ers d" n"t re9e!$e A3ed 51es
b%t 1et "n0y tht !n e39ess "4 the s"#900ed
Qb"%ndryQ they py t" the "5nerK"pert"r !s
n"t s%G9!ent t" 5!thdr5 the re0t!"nsh!p
bet5een the/ 4r"/ tht "4 e/p0"yer nd
e/p0"yee& Ie h$e pp0!ed by n0"1y the
b"$estted d"9tr!ne t" the re0t!"nsh!ps
bet5een b%s "5nerK"pert"r nd b%s
9"nd%9t"r,*+ %t"#90es "5nerK"pert"r nd
dr!$er,*( nd re9ent0y bet5een t3!
"5nersK"pert"rs nd t3! dr!$ers&** Hen9e,
pet!t!"ners re %nd"%bted0y e/p0"yees "4
pr!$te resp"ndent be9%se s t3! dr!$ers
they per4"r/ 9t!$!t!es 5h!9h re %s%00y
ne9essry "r des!rb0e !n the %s%0 b%s!ness "r
trde "4 the!r e/p0"yer&
As 9"ns!stent0y he0d by th!s C"%rt, ter/!nt!"n
"4 e/p0"y/ent /%st be eFe9ted !n 99"rdn9e
5!th 05& The C%st nd %th"r!Ded 9%ses 4"r
ter/!nt!"n "4 e/p0"y/ent re en%/erted
%nder Art!90es *=*, *=2 nd *=6 "4 the Lb"r
C"de& The reB%!re/ent "4 n"t!9e nd her!n1 !s
set#"%t !n Art!90e *)) ?b@ "4 the s!d C"de&
Hen9e, pet!t!"ners, be!n1 e/p0"yees "4 pr!$te
resp"ndent, 9n be d!s/!ssed "n0y 4"r C%st nd
%th"r!Ded 9%se, nd 4ter F"rd!n1 the/
n"t!9e nd her!n1 pr!"r t" ter/!nt!"n& In the
!nstnt 9se, pr!$te resp"ndent hd n" $0!d
9%se t" ter/!nte the e/p0"y/ent "4
pet!t!"ners& Ne!ther 5ere there t5" ?*@ 5r!tten
n"t!9es sent by pr!$te resp"ndent !n4"r/!n1
e9h "4 the pet!t!"ners tht they hd been
d!s/!ssed 4r"/ 5"r:& These 09: "4 $0!d 9%se
nd 4!0%re "n the prt "4 pr!$te resp"ndent t"
9"/p0y 5!th the t5!n#n"t!9e reB%!re/ent
%nders9"red the !00e10!ty s%rr"%nd!n1
pet!t!"nersP d!s/!ss0&
Under the 05, n e/p0"yee 5h" !s %nC%st0y
d!s/!ssed 4r"/ 5"r: sh00 be ent!t0ed t"
re!nstte/ent 5!th"%t 0"ss "4 sen!"r!ty r!1hts
nd "ther pr!$!0e1es nd t" h!s 4%00 b9:51es,
!n90%s!$e "4 00"5n9es, nd t" h!s "ther
beneAts "r the!r /"netry eB%!$0ent
9"/p%ted 4r"/ the t!/e h!s 9"/penst!"n 5s
5!thhe0d 4r"/ h!/ %p t" the t!/e "4 h!s 9t%0
re!nstte/ent&*2 It /%st be e/phs!Ded,
th"%1h, tht re9ent C%d!9!0 pr"n"%n9e/ents*6
d!st!n1%!sh bet5een e/p0"yees !00e100y
d!s/!ssed pr!"r t" the eFe9t!$!ty "4 Rep%b0!9
A9t N"& >)(7 "n Mr9h *(, (8=8, nd th"se
5h"se !00e10 d!s/!ss0s 5ere eFe9ted 4ter
s%9h dte& Th%s, e/p0"yees !00e100y d!s/!ssed
pr!"r t" Mr9h *(, (8=8, re ent!t0ed t"
b9:51es %p t" three ?2@ yers 5!th"%t
ded%9t!"n "r B%0!A9t!"n, 5h!0e th"se !00e100y
d!s/!ssed 4ter tht dte re 1rnted 4%00
b9:51es !n90%s!$e "4 00"5n9es nd "ther
beneAts "r the!r /"netry eB%!$0ent 4r"/ the
t!/e the!r 9t%0 9"/penst!"n 5s 5!thhe0d
4r"/ the/ %p t" the t!/e "4 the!r 9t%0
re!nstte/ent& The 0e1!s0t!$e p"0!9y beh!nd
Rep%b0!9 A9t N"& >)(7 p"!nts t" Q4%00
b9:51esQ s /en!n1 e39t0y tht, !&e&,
5!th"%t ded%9t!n1 4r"/ b9:51es the
ern!n1s der!$ed e0se5here by the 9"n9erned
e/p0"yee d%r!n1 the per!"d "4 h!s !00e10
d!s/!ss0& C"ns!der!n1 tht pet!t!"ners 5ere
ter/!nted 4r"/ 5"r: "n A%1%st (, (88(, they
re ent!t0ed t" 4%00 b9:51es "n the bs!s "4
the!r 0st d!0y ern!n1s&
I!th re1rd t" the /"%nt ded%9ted d!0y by
pr!$te resp"ndent 4r"/ pet!t!"ners 4"r
5sh!n1 "4 the t3! %n!ts, 5e $!e5 the s/e s
n"t !00e10 !n the 9"nte3t "4 the 05& Ie n"te
tht 4ter t"%r "4 d%ty, !t !s !n9%/bent %p"n
the dr!$er t" rest"re the %n!t he hs dr!$en t"
the s/e 90en 9"nd!t!"n 5hen he t"": !t "%t&
Cr 5sh!n1 4ter t"%r "4 d%ty !s !ndeed
pr9t!9e !n the t3! !nd%stry nd !s !n 49t
d!9tted by 4!r p0y&*7 Hen9e, the dr!$ers re
n"t ent!t0ed t" re!/b%rse/ent "4 5sh!n1
9hr1es&(W5ph!(&nXt
IHEREFORE, the !nstnt pet!t!"n !s 'RANTED&
The ss!0ed DECISION "4 p%b0!9 resp"ndent
dted O9t"ber *=, (886, !s hereby SET ASIDE&
The DECISION "4 p%b0!9 resp"ndent dted Apr!0
*=, (886, nd !ts RESOLUTION dted De9e/ber
(2, (886, re hereby REINSTATED s%bCe9t t"
MODIFICATION& Pr!$te resp"ndent !s d!re9ted
t" re!nstte pet!t!"ners t" the!r p"s!t!"ns he0d
t the t!/e "4 the 9"/p0!ned d!s/!ss0& Pr!$te
resp"ndent !s 0!:e5!se "rdered t" py
pet!t!"ners the!r 4%00 b9:51es, t" be
9"/p%ted 4r"/ the dte "4 d!s/!ss0 %nt!0 the!r
9t%0 re!nstte/ent& H"5e$er, the "rder "4
p%b0!9 resp"ndent tht pet!t!"ners be
re!/b%rsed the /"%nt p!d s 5sh!n1
9hr1es !s de0eted& C"sts 1!nst pr!$te
resp"ndents&
SO ORDERED&
THIRD DIVISION
;'&R& N"& (6=7+=& My *+, *++6<
R TRANSPORT CORPORATION, pet!t!"ner, $s&
RO'ELIO E-ANDRA, resp"ndent&
D E C I S I O N
CORONA, -&,
Be4"re %s !s pet!t!"n 4"r re$!e5 "4 the
de9!s!"n;(< "4 the C"%rt "4 Appe0s;*< dted
De9e/ber **, *+++ d!s/!ss!n1 the pet!t!"n 4"r
9ert!"rr! "4 the de9!s!"n "4 the Nt!"n0 Lb"r
Re0t!"ns C"//!ss!"n;2< ?NLRC@ dted My 2+,
(88)& The 0tter Gr/ed the de9!s!"n;6< "4 the
0b"r rb!ter dted Febr%ry *), (88) h"0d!n1
pet!t!"ner 0!b0e 4"r !00e10 d!s/!ss0 nd
d!re9t!n1 pr!$te resp"ndentHs re!nstte/ent&
Pr!$te resp"ndent R"1e0!" ECndr 00e1ed
tht, 4"r 0/"st s!3 yers, 4r"/ -%0y (7, (88+ t"
-n%ry 2(, (88>, he 5"r:ed s b%s dr!$er "4
pet!t!"ner R Trnsp"rt C"rp"rt!"n& He p0!ed
the r"%te MM%nt!0%p#A0bn1#M0ndy#
M"n%/ent"#UE#Letre#Sn1ndnN 4r"/ 7,++
&/& %p t" *,++ &/& the ne3t dy nd 5s p!d
(+Y "4 h!s d!0y ern!n1s&
On -n%ry 2(, (88>, n "G9er "4 the Lnd
Trnsp"rtt!"n OG9e ?LTO@, '%d0%pe Brn9h,
M:t! C!ty, pprehended h!/ 4"r "bstr%9t!"n
"4 trG9 4"r 5h!9h h!s 0!9ense 5s 9"nAs9ted&
Up"n h!s rr!$0 t pet!t!"nerHs 1r1e, he
!//ed!te0y rep"rted the !n9!dent t" h!s
/n1er, Mr& Os9r PsB%!n, 5h" 1$e h!/
P7++ t" redee/ h!s 0!9ense& The 4"00"5!n1 dy,
he 5ent t" LTO, '%d0%pe Brn9h, t" 90!/ !t
b%t he 5s t"0d tht !t hd n"t yet been t%rned
"$er by the "G9er 5h" pprehended h!/& He
5s b0e t" retr!e$e h!s 0!9ense "n0y 4ter
5ee:&
On Febr%ry =, (88>, pr!$te resp"ndent
!n4"r/ed Mr& PsB%!n tht he 5s redy t"
rep"rt 4"r 5"r:& H"5e$er, he 5s t"0d tht the
9"/pny 5s st!00 st%dy!n1 5hether t" 00"5
h!/ t" dr!$e 1!n& Pr!$te resp"ndent 5s
0!:e5!se 99%sed "4 9%s!n1 d/1e t" the b%s
he %sed t" dr!$e& Deny!n1 the 9hr1e, pr!$te
resp"ndent b0/ed the pers"n 5h" dr"$e the
s!d b%s d%r!n1 h!s bsen9e, 9"ns!der!n1 tht
the d/1e 5s s%st!ned d%r!n1 the 5ee:
tht he d!d n"t dr!$e the b%s& Mr& P9B%!n
n"nethe0ess t"0d h!/ MM1ph!n1 : /%n t
tt51!n : n 0n1 n/!n :%n1 :!0n1n :
n pr /1/neh"& M1b:sy"n : /%n,
bt&N Ihen resp"ndent s:ed h"5 0"n1 he
hd t" rest, the /n1er d!d n"t 1!$e deAn!te
t!/e&
Pet!t!"ner den!ed pr!$te resp"ndentHs
00e1t!"ns nd 90!/ed tht pr!$te
resp"ndent, hb!t%0 bsentee, bnd"ned
h!s C"b& T" be0!e pr!$te resp"ndentHs 00e1t!"n
tht h!s 0!9ense hd been 9"nAs9ted,
pet!t!"ner sserted tht, hd !t been tr%e, he
sh"%0d h$e presented n pprehens!"n rep"rt
nd !n4"r/ed pet!t!"ner "4 h!s pr"b0e/s 5!th
the LTO& B%t he d!d n"t& Pet!t!"ner 4%rther
r1%ed tht pr!$te resp"ndent 5s n"t n
e/p0"yee be9%se the!rs 5s 9"ntr9t "4
0ese nd n"t "4 e/p0"y/ent, 5!th pet!t!"ner
be!n1 p!d "n 9"//!ss!"n bs!s&
On Febr%ry *2, (88), 0b"r rb!ter R"1e0!"
Y%0" rendered h!s de9!s!"n !n 4$"r "4 pr!$te
resp"ndent& The d!sp"s!t!$e p"rt!"n "4 the
de9!s!"n red,
PREMISES CONSIDERED, C%d1/ent !s hereby
rendered And!n1 the d!s/!ss0 "4 R"1e0!"
ECndr t" be 5!th"%t C%st 9%se nd, there4"re,
!00e10 nd ORDERIN' R#Trnsp"rt t" REINSTATE
h!/ t" h!s 4"r/er p"s!t!"n 5!th"%t 0"ss "4
sen!"r!ty nd "ther beneAts nd t" py h!/
b9:51es 4r"/ the t!/e "4 h!s d!s/!ss0 %nt!0
9t%0 re!nstte/ent&
SO ORDERED&;7<
Lb"r rb!ter Y%0" 1$e n" 5e!1ht t"
pet!t!"nerHs 90!/ tht pr!$te resp"ndent
bnd"ned h!s 5"r:& H!s "ne#5ee: bsen9e
d!d n"t 9"nst!t%te bnd"n/ent "4 5"r:
9"ns!der!n1 tht !t t"": h!/ the 5h"0e 5ee: t"
re90!/ h!s 0!9ense& Pr!$te resp"ndent 9"%0d
n"t retr!e$e !t %n0ess nd %nt!0 the
pprehend!n1 "G9er Arst trns/!tted !t t" the!r
"G9e& H!s !nb!0!ty t" dr!$e 4"r pet!t!"ner tht
5h"0e 5ee: 5s there4"re n"t h!s 4%0t nd
pet!t!"ner 9"%0d be he0d 0!b0e 4"r !00e10
d!s/!ss0& D%e pr"9ess 5s n"t 99"rded t"
pr!$te resp"ndent 5h" 5s ne$er 1!$en the
"pp"rt%n!ty t" 9"ntest the 9hr1e "4
bnd"n/ent& M"re"$er, ss%/!n1 9t%0
bnd"n/ent, pet!t!"ner sh"%0d h$e rep"rted
s%9h 49t t" the nerest e/p0"y/ent "G9e "4
the Deprt/ent "4 Lb"r nd E/p0"y/ent& B%t
n" s%9h rep"rt 5s e$er /de&
On My 2+, (88), the NLRC rendered
de9!s!"n Gr/!n1 the de9!s!"n "4 the 0b"r
rb!ter,
IHEREFORE, pre/!ses 9"ns!dered, the ppe0
!s hereby DISMISSED nd the ppe0ed
de9!s!"n AFFIRMED !n t"t"&
SO ORDERED&;><
In d!sp%t!n1 pet!t!"nerHs 90!/ tht pr!$te
resp"ndent 5s n"t !ts e/p0"yee nd 5s n"t
there4"re ent!t0ed t" n"t!9e nd her!n1 be4"re
ter/!nt!"n, the NLRC he0d tht,
It !s $ery 90er tht ?s!9@ 4r"/ n" 0ess thn
ppe00ntsH d/!ss!"n, tht 9"/p0!nnt 5s
n"t F"rded h!s r!1ht t" d%e pr"9ess pr!"r t"
the se$ern9e "4 h!s e/p0"y/ent 5!th
resp"ndents& ?F!rst pr& p&2, resp"ndentsH
Appe0 Me/"rnd%/, p& 67, R"00"@
Appe00ntsH de4ense "4 deny!n1 the e3!sten9e "4
e/p0"yer#e/p0"yee re0t!"nsh!p 5!th the
9"/p0!nnt bsed "n the /nner by 5h!9h
9"/p0!nnt 5s be!n1 p!d h!s s0ry, 9nn"t
h"0d 5ter&
333 333 333
Ih!0e e/p0"yees p!d "n p!e9e#rte nd
9"//!ss!"n bs!s re n"t 9"$ered by the
pr"$!s!"ns "4 the Lb"r C"de, s /ended, "n
h"%rs "4 5"r:, these e/p0"yees h"5e$er, 4"r
00 !ntents nd p%rp"ses, re e/p0"yees "4
the!r e/p0"yers&
333 333 333;)<
Pet!t!"ner A0ed !n the C"%rt "4 Appe0s
pet!t!"n 4"r 9ert!"rr! "n the 1r"%nd tht the
NLRC 9"//!tted 1r$e b%se "4 d!s9ret!"n !n
Gr/!n1 the de9!s!"n "4 the 0b"r rb!ter& On
De9e/ber **, *+++, the C"%rt "4 Appe0s
rendered de9!s!"n, the d!sp"s!t!$e p"rt!"n "4
5h!9h red,
IHEREFORE, the !nstnt pet!t!"n !s hereby
DENIED 4"r 09: "4 /er!t&
SO ORDERED&;=<
Cte1"r!D!n1 the !ss%es r!sed by pet!t!"ner s
49t%0, the ppe00te 9"%rt he0d tht the
And!n1s "4 49t "4 the 0b"r rb!ter ?Gr/ed by
the NLRC@ 5ere ent!t0ed t" 1ret respe9t
be9%se they 5ere s%pp"rted by s%bstnt!0
e$!den9e& The C"%rt "4 Appe0s 0s" r%0ed tht
pet!t!"ner 5s brred 4r"/ deny!n1 the
e3!sten9e "4 n e/p0"yer#e/p0"yee
re0t!"nsh!p be9%se pet!t!"ner !n$":ed !ts
r!1hts %nder the 05 nd C%r!spr%den9e s n
e/p0"yer !n d!s/!ss!n1 pr!$te resp"ndent&
Hen9e, th!s ppe0 bsed "n the 4"00"5!n1
ss!1n/ents "4 err"rs,
A
IITH DUE RESPECT, THE HONORABLE COURT
OF APPEALS, TENTH DIVISION COMMITTED
'RAVE ABUSE OF DISCRETION IHEN IT
AFFIRMEDKADOPTED IN TOTO THE DECISION OF
THE NATIONAL LABOR RELATIONS COMMISSION
?NLRC@ BASED PURELY ON A SPECULATION,
SURMISE OR CON-ECTURE&
B
THE FINDIN'S OF FACTS ARE MERE
CONCLUSIONS IITHOUT CITATION OR SPECIFIC
EVIDENCE ON IHICH THEY ARE BASED&
C
FURTHER, THE HONORABLE COURT OF
APPEALS, TENTH DIVISION COMMITTED 'RAVE
ABUSE OF DISCRETION AMOUNTIN' TO LACU
OF -URISDICTION IN NOT RULIN' THAT THE
RELATIONSHIP IN LAI OCCURRIN' BETIEEN
THE PETITIONER R TRANSPORT CORPORATION
AND THE PRIVATE RESPONDENT IAS IN A
NATURE OF MLESSOR AND LESSEE&N
D
MOREOVER, THERE IS A NEED BY THIS
HONORABLE COURT TO 'IVE A SECOND LOOU
ON THE RECORDS OF NLRC NCR CASE RAB NO&
IV#*#)8(+#R K NLRC NCR CA#+(*#>+7#8) TO
AVOID MISCARRIA'E OF -USTICE AND
FURTHERANCE OF THE STATUTORY
RESUIREMENTS OF DUE PROCESS&
E
FINALLY, THE HONORABLE COURT OF APPEALS,
TENTH DIVISION 'RAVELY ERRED IN DENYIN'
THE PETITION IN CA#'&R& SP& NO& 7(8>* IN ITS
DECISION PROMUL'ATED ON DECEMBER **,
*+++ ?ANNERES M'N AND M'#(N@ AND IN ITS
RESOLUTION DATED -UNE 6, *++( ?ANNER MBN@,
HAS ACTED CONTRARY TO LAI AND THE
RULES OF COURT&;8<
A99"rd!n1 t" the pet!t!"ner, the ppe00te 9"%rt
erred !n n"t And!n1 tht pr!$te resp"ndent
bnd"ned h!s 5"r:E tht pet!t!"ner 5s n"t
the 0ess"r "4 pr!$te resp"ndentE tht, s s%9h,
the ter/!nt!"n "4 the 9"ntr9t "4 0ese "4
ser$!9es d!d n"t reB%!re pet!t!"ner t" respe9t
pr!$te resp"ndentHs r!1hts t" n"t!9e nd
her!n1E nd, tht pr!$te resp"ndentHs
Gd$!t 5s hersy nd se04#ser$!n1&
Ie deny the ppe0&
Under Se9t!"n (, R%0e 67 "4 the (88) R%0es "4
C!$!0 Pr"9ed%re, pet!t!"n 4"r re$!e5 sh00 "n0y
r!se B%est!"ns "4 05 9"ns!der!n1 tht the
And!n1s "4 49t "4 the C"%rt "4 Appe0s re, s
1ener0 r%0e, 9"n90%s!$e %p"n nd b!nd!n1 "n
th!s C"%rt&;(+< Th!s d"9tr!ne pp0!es 5!th
1reter 4"r9e !n 0b"r 9ses 5here the 49t%0
And!n1s "4 the 0b"r tr!b%n0s re Gr/ed by
the C"%rt "4 Appe0s& The res"n !s be9%se
0b"r "G9!0s re dee/ed t" h$e 9B%!red
e3pert!se !n /tters 5!th!n the!r C%r!sd!9t!"n
nd there4"re, the!r 49t%0 And!n1s re
1ener00y 99"rded n"t "n0y respe9t b%t 0s"
An0!ty, nd re b!nd!n1 "n th!s C"%rt&;((<
In the 9se t br, the 0b"r rb!ter, the NLRC
nd the C"%rt "4 Appe0s 5ere %nn!/"%s !n
And!n1 tht pr!$te resp"ndent 5"r:ed s
dr!$er "4 "ne "4 the b%ses "4 pet!t!"ner nd 5s
p!d "n (+Y 9"//!ss!"n bs!s& A4ter he 5s
pprehended 4"r trG9 $!"0t!"n, h!s 0!9ense
5s 9"nAs9ted& Ihen he !n4"r/ed
pet!t!"nerHs 1ener0 /n1er "4 s%9h 49t, the
0tter 1$e h!/ /"ney t" redee/ h!s 0!9ense&
He 5ent t" the LTO "G9e e$erydy b%t !t 5s
"n0y 4ter 5ee: tht he 5s b0e t" 1et b9:
h!s 0!9ense& Ihen he rep"rted b9: t" 5"r:,
pet!t!"nerHs /n1er t"0d h!/ t" 5!t %nt!0 h!s
ser$!9es 5ere needed 1!n& C"ns!der!n1
h!/se04 d!s/!ssed, pr!$te resp"ndent A0ed
9"/p0!nt 4"r !00e10 d!s/!ss0 1!nst
pet!t!"ner&
Ie h$e n" res"n t" d!st%rb 00 these 49t%0
And!n1s be9%se they re /p0y s%pp"rted by
s%bstnt!0 e$!den9e&
Deny!n1 the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p, pet!t!"ner !ns!sts tht
the prt!esH 1ree/ent 5s 4"r 9"ntr9t "4
0ese "4 ser$!9es& Ie d!s1ree& Pet!t!"ner !s
brred t" ne1te the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p& In !ts pet!t!"n A0ed
be4"re th!s C"%rt, pet!t!"ner !n$":ed "%r r%0!n1s
"n the r!1ht "4 n e/p0"yer t" d!s/!ss n
e/p0"yee 4"r C%st 9%se&;(*< Pet!t!"ner
/!nt!ned tht pr!$te resp"ndent 5s
C%st!Ab0y d!s/!ssed d%e t" bnd"n/ent "4
5"r:& By d"pt!n1 s!d r%0!n1s, pet!t!"ner
!/p0!ed0y d/!tted tht !t 5s !n 49t the
e/p0"yer "4 pr!$te resp"ndent& A99"rd!n1 t"
the 9"ntr"0 test, the p"5er t" d!s/!ss n
e/p0"yee !s "ne "4 the !nd!9t!"ns "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p&;(2<
Pet!t!"nerHs 90!/ tht pr!$te resp"ndent 5s
0e100y d!s/!ssed 4"r bnd"n/ent 5s !n 49t
ne1t!$e pre1nnt,;(6< n 9:n"50ed1e/ent
tht there 5s n" /%t%0 ter/!nt!"n "4 the
00e1ed 9"ntr9t "4 0ese nd tht pr!$te
resp"ndent 5s !ts e/p0"yee& The 49t tht
pet!t!"ner p!d pr!$te resp"ndent "n
9"//!ss!"n bs!s d!d n"t r%0e "%t the presen9e
"4 n e/p0"yee#e/p0"yer re0t!"nsh!p& Art!90e
8)?4@ "4 the Lb"r C"de 90er0y pr"$!des tht n
e/p0"yeeHs 51es 9n be !n the 4"r/ "4
9"//!ss!"ns&
Ie n"5 s: the ne3t B%est!"n, 5s pr!$te
resp"ndent, n e/p0"yee "4 pet!t!"ner,
d!s/!ssed 4"r C%st 9%seZ Ie d" n"t th!n: s"&
A99"rd!n1 t" pet!t!"ner, pr!$te resp"ndent
bnd"ned h!s C"b nd 0!ed b"%t the
9"nAs9t!"n "4 h!s 0!9ense& T" 9"nst!t%te
bnd"n/ent, t5" e0e/ents /%st 9"n9%r, ?(@
the 4!0%re t" rep"rt 4"r 5"r: "r bsen9e
5!th"%t $0!d "r C%st!Ab0e res"n nd ?*@
90er !ntent!"n t" se$er the e/p0"yer#e/p0"yee
re0t!"nsh!p& O4 the t5", the se9"nd e0e/ent !s
the /"re deter/!nt!$e 49t"r nd sh"%0d be
/n!4ested by s"/e "$ert 9ts& Mere bsen9e
!s n"t s%G9!ent& It !s the e/p0"yer 5h" hs the
b%rden "4 pr""4 t" sh"5 de0!berte nd
%nC%st!Aed re4%s0 "4 the e/p0"yee t" res%/e
h!s e/p0"y/ent 5!th"%t ny !ntent!"n "4
ret%rn!n1&;(7<
In the !nstnt 9se, pet!t!"ner 4e00 sh"rt "4
pr"$!n1 the reB%!s!tes& T" be1!n 5!th,
pet!t!"nerHs bsen9e 5s C%st!Aed be9%se the
LTO, '%d0%pe Brn9h, d!d n"t re0ese h!s
0!9ense %nt!0 4ter 5ee:& Th!s 5s the
%nn!/"%s 49t%0 And!n1 "4 the 0b"r tr!b%n0s
nd the C"%rt "4 Appe0s& As pt0y he0d by
0b"r rb!ter Y%0", the pr"9ess "4 redee/!n1
9"nAs9ted 0!9ense, bsed "n 9"//"n
e3per!en9e, depended "n 5hen the
pprehend!n1 "G9er t%rned "$er the s/e&
Se9"nd, pr!$te resp"ndent ne$er !ntended t"
se$er h!s e/p0"y/ent s he !n 49t rep"rted 4"r
5"r: s s""n s he 1"t h!s 0!9ense b9:&
Pet!t!"ner "Fered n" e$!den9e t" reb%t these
estb0!shed 49ts& Th!rd, 0b"r rb!ter Y%0"
9"rre9t0y "bser$ed tht, !4 pr!$te resp"ndent
re00y bnd"ned h!s 5"r:, pet!t!"ner sh"%0d
h$e rep"rted s%9h 49t t" the nerest Re1!"n0
OG9e "4 the Deprt/ent "4 Lb"r nd
E/p0"y/ent !n 99"rdn9e 5!th Se9t!"n ), R%0e
RRIII, B"": V "4 Deprt/ent Order N"& 8, ser!es
"4 (88);(>< ?R%0es I/p0e/ent!n1 B"": V "4 the
Lb"r C"de@& Pet!t!"ner /de n" s%9h rep"rt&
In dd!t!"n t" the 49t tht pet!t!"ner hd n"
$0!d 9%se t" ter/!nte pr!$te resp"ndent
4r"/ 5"r:, !t $!"0ted the 0tterHs r!1ht t"
pr"9ed%r0 d%e pr"9ess by n"t 1!$!n1 h!/ the
reB%!red n"t!9e nd her!n1& Se9t!"n *, R%0e
RRIII, B"": V "4 Deprt/ent Order N"& 8
pr"$!des 4"r the pr"9ed%re 4"r d!s/!ss0 4"r C%st
"r %th"r!Ded 9%se,
SEC& *& Stndrds "4 d%e pr"9essE reB%!re/ent
"4 n"t!9e& J In 00 9ses "4 ter/!nt!"n "4
e/p0"y/ent, the 4"00"5!n1 stndrds "4 d%e
pr"9ess sh00 be s%bstnt!00y "bser$ed,
I& F"r ter/!nt!"n "4 e/p0"y/ent bsed "n C%st
9%ses s deAned !n Art!90e *=* "4 the C"de,
?@ A 5r!tten n"t!9e ser$ed "n the e/p0"yee
spe9!4y!n1 the 1r"%nd "r 1r"%nds 4"r
ter/!nt!"n, nd 1!$!n1 t" s!d e/p0"yee
res"nb0e "pp"rt%n!ty 5!th!n 5h!9h t" e3p0!n
h!s s!deE
?b@ A her!n1 "r 9"n4eren9e d%r!n1 5h!9h the
e/p0"yee 9"n9erned, 5!th the ss!stn9e "4
9"%nse0 !4 the e/p0"yee s" des!res, !s 1!$en
"pp"rt%n!ty t" resp"nd t" the 9hr1e, present
h!s e$!den9e "r reb%t the e$!den9e presented
1!nst h!/E nd
?9 @ A 5r!tten n"t!9e "4 ter/!nt!"n ser$ed "n
the e/p0"yee !nd!9t!n1 tht %p"n d%e
9"ns!dert!"n "4 00 the 9!r9%/stn9es, 1r"%nds
h$e been estb0!shed t" C%st!4y h!s
ter/!nt!"n& In 9se "4 ter/!nt!"n, the
4"re1"!n1 n"t!9es sh00 be ser$ed "n the
e/p0"yeeHs 0st :n"5n ddress&
II& F"r ter/!nt!"n "4 e/p0"y/ent s bsed "n
%th"r!Ded 9%ses deAned !n Art!90e *=2 "4 the
C"de, the reB%!re/ents "4 d%e pr"9ess sh00 be
dee/ed 9"/p0!ed 5!th %p"n ser$!9e "4
5r!tten n"t!9e t" the e/p0"yee nd the
ppr"pr!te Re1!"n0 OG9e "4 the Deprt/ent
t 0est th!rty dys be4"re the eFe9t!$!ty "4 the
ter/!nt!"n, spe9!4y!n1 the 1r"%nd "r 1r"%nds
4"r ter/!nt!"n&
III& I4 ter/!nt!"n !s br"%1ht b"%t by the
9"/p0et!"n "4 the 9"ntr9t "r phse there"4, n"
pr!"r n"t!9e !s reB%!red& I4 the ter/!nt!"n !s
br"%1ht b"%t by the 4!0%re "4 n e/p0"yee t"
/eet the stndrds "4 the e/p0"yer !n 9se "4
pr"bt!"nry e/p0"y/ent, !t sh00 be s%G9!ent
tht 5r!tten n"t!9e !s ser$ed the e/p0"yee
5!th!n res"nb0e t!/e 4r"/ the eFe9t!$e
dte "4 ter/!nt!"n&
IHEREFORE, pre/!ses 9"ns!dered, the pet!t!"n
!s hereby DENIED& C"sts 1!nst the pet!t!"ner&
SO ORDERED&
SECOND DIVISION

CALAMBA MEDICAL
CENTER, INC&,
Pet!t!"ner,



# $ers%s #



NATIONAL LABOR
RELATIONS COMMISSION, RONALDO LAN.ANAS
AND MERCEDITHA[ LAN.ANAS,
Resp"ndents&
'&R& N"& ()>6=6

Present,

SUISUMBIN', -&, Ch!rpers"n,
CARPIO MORALES,
TIN'A,
VELASCO, -R&, nd
BRION, --&


Pr"/%01ted,

N"$e/ber *7, *++=

3 # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # # #
# # # # # # # # # # # # # # # #3


D E C I S I O N


CARPIO MORALES, -&,

The C0/b Med!90 Center ?pet!t!"ner@,
pr!$te0y#"5ned h"sp!t0, en11ed the ser$!9es
"4 /ed!90 d"9t"rs#sp"%ses R"n0d" LnDns
?Dr& LnDns@ nd Mer9ed!th LnDns ?Dr&
Mer9ed!th@ !n Mr9h (88* nd A%1%st (887,
respe9t!$e0y, s prt "4 !ts te/ "4 res!dent
phys!9!ns& Rep"rt!n1 t the h"sp!t0 t5!9e##
5ee: "n t5enty#4"%r#h"%r sh!4ts, resp"ndents
5ere p!d /"nth0y Mret!nerN "4 P6,=++&++
e9h&;(< It ppers tht res!dent phys!9!ns
5ere 0s" 1!$en per9ent1e shre "%t "4 4ees
9hr1ed 4"r "%t#pt!ent tret/ents, "pert!n1
r""/ ss!stn9e nd d!s9hr1e b!00!n1s, !n
dd!t!"n t" the!r A3ed /"nth0y ret!ner&;*<

The 5"r: s9hed%0es "4 the /e/bers "4 the
te/ "4 res!dent phys!9!ns 5ere A3ed by
pet!t!"nerHs /ed!90 d!re9t"r Dr& R%0 Des!ped
?Dr& Des!ped@& And they 5ere !ss%ed
!dent!A9t!"n 9rds;2< by pet!t!"ner nd 5ere
enr"00ed !n the S"9!0 Se9%r!ty Syste/ ?SSS@&;6<
In9"/e t3es 5ere 5!thhe0d 4r"/ the/&;7<

On Mr9h ), (88=, Dr& Me0%D Tr!n!dd ?Dr&
Tr!n!dd@, 0s" res!dent phys!9!n t the
h"sp!t0, !nd$ertent0y "$erherd te0eph"ne
9"n$erst!"n "4 resp"ndent Dr& LnDns 5!th
4e00"5 e/p0"yee, D!"sdd" M!s90, thr"%1h n
e3tens!"n te0eph"ne 0!ne& Apprent0y, Dr&
LnDns nd M!s90 5ere d!s9%ss!n1 the 0"5
M9ens%sN "r d/!ss!"n "4 pt!ents t" the
h"sp!t0&;><

Dr& Des!ped 5h"se ttent!"n 5s 900ed t" the
b"$e#s!d te0eph"ne 9"n$erst!"n !ss%ed t"
Dr& LnDns Me/"rnd%/ "4 Mr9h ), (88=
red!n1,

As L!9ensed Res!dent Phys!9!n e/p0"yed !n
C0/b Med!90 Center s!n9e se$er0 yers
1", the h"sp!t0 /n1e/ent hs 9"//!tted
%p"n y"% %t/"st 9"nAden9e !n the
per4"r/n9e "4 d%t!es p%rs%nt theret"& Th!s !s
the res"n 5hy y"% 5ere 5rded the pr!$!0e1e
t" pr9t!9e !n the h"sp!t0 nd 5ere entr%sted
h"sp!t0 4%n9t!"ns t" ser$e the !nterest "4 b"th
the h"sp!t0 nd "%r pt!ents %s!n1 y"%r
9pb!0!ty 4"r !ndependent C%d1/ent&

Very re9ent0y th"%1h nd %n4"rt%nte0y, y"%
h$e 9"//!tted 9ts !n!/!90 t" the !nterest "4
the h"sp!t0, the det!0s "4 5h!9h re 9"nt!ned
!n the heret" tt9hed Gd$!t "4 5!tness&

Y"% re there4"re 1!$en *6 h"%rs t" e3p0!n
5hy n" d!s9!p0!nry 9t!"n sh"%0d be t:en
1!nst y"%&

Pend!n1 !n$est!1t!"n "4 y"%r 9se, y"% re
hereby p09ed %nder 2+#dys ;s!9< pre$ent!$e
s%spens!"n eFe9t!$e %p"n re9e!pt here"4&;)<
?E/phs!s, !t0!9s nd %nders9"r!n1 s%pp0!ed@


Ine3p0!9b0y, pet!t!"ner d!d n"t 1!$e resp"ndent
Dr& Mer9ed!th, 5h" 5s n"t !n$"0$ed !n the
s!d !n9!dent, ny 5"r: s9hed%0e 4ter send!n1
her h%sbnd Dr& LnDns the /e/"rnd%/,
;=< n"r !n4"r/ her the res"n there4"r, 0be!t
she 5s 0ter !n4"r/ed by the H%/n Res"%r9e
Deprt/ent ?HRD@ "G9er tht tht 5s prt "4
pet!t!"nerHs 9"st#9%tt!n1 /es%res&;8<

Resp"nd!n1 t" the /e/"rnd%/, Dr& LnDns,
by 0etter "4 Mr9h 8, (88=,;(+< d/!tted tht
he sp":e 5!th M!s90 "$er the ph"ne b%t tht
the!r 9"n$erst!"n 5s t:en "%t "4 9"nte3t by
Dr& Tr!n!dd&

On Mr9h (6, (88=,;((< the rn:#nd#A0e
e/p0"yees %n!"n "4 pet!t!"ner 5ent "n str!:e
d%e t" %nres"0$ed 1r!e$n9es "$er ter/s nd
9"nd!t!"ns "4 e/p0"y/ent&;(*<

On Mr9h *+, (88=, Dr& LnDns A0ed
9"/p0!nt 4"r !00e10 s%spens!"n;(2< be4"re the
Nt!"n0 Lb"r Re0t!"ns C"//!ss!"n ?NLRC@#
Re1!"n0 Arb!trt!"n B"rd ?RAB@ IV& Dr&
Mer9ed!th s%bseB%ent0y A0ed 9"/p0!nt 4"r
!00e10 d!s/!ss0&;(6<

In the /ent!/e, then Se9& Cresen9!n"
TrCn" "4 the Deprt/ent "4 Lb"r nd
E/p0"y/ent ?DOLE@ 9ert!Aed the 0b"r d!sp%te
t" the NLRC 4"r 9"/p%0s"ry rb!trt!"n nd
!ss%ed "n Apr!0 *(, (88= ret%rn#t"#5"r: Order
t" the str!:!n1 %n!"n "G9ers nd e/p0"yees "4
pet!t!"ner pend!n1 res"0%t!"n "4 the 0b"r
d!sp%te&;(7<

In /e/"rnd%/;(>< "4 Apr!0 **, (88=, Dr&
Des!ped e9h"ed the Apr!0 **, (88= "rder "4
the Se9retry "4 Lb"r d!re9t!n1 00 %n!"n
"G9ers nd /e/bers t" ret%rn#t"#5"r: M"n "r
Apr!0 *2, (88=, e39ept th"se e/p0"yees tht
5ere 0redy ter/!nted "r re ser$!n1
d!s9!p0!nry 9t!"ns&N Dr& Des!ped th%s
"rdered the "G9ers nd /e/bers "4 the %n!"n
t" Mrep"rt 4"r 5"r: s s""n s p"ss!b0eN t" the
h"sp!t0Hs pers"nne0 "G9er nd d/!n!strt"r
4"r M5"r: s9hed%0!n1, ss!1n/ents ndK"r re#
ss!1n/ents&N

Pet!t!"ner 0ter sent Dr& LnDns n"t!9e "4
ter/!nt!"n 5h!9h he re9e!$ed "n Apr!0 *7,
(88=, !nd!9t!n1 s 1r"%nds there4"r h!s 4!0%re
t" rep"rt b9: t" 5"r: desp!te the DOLE "rder
nd h!s s%pp"sed r"0e !n the str!:!n1 %n!"n,
th%s,

On Apr!0 *2, (88=, y"% st!00 d!d n"t rep"rt 4"r
5"r: desp!te /e/"rnd%/ !ss%ed by the CMC
Med!90 D!re9t"r !/p0e/ent!n1 the Lb"r
Se9retryHs ORDER& The s/e !s tr%e "n Apr!0
*6, (88= nd Apr!0 *7, (88=,##y"% st!00 d!d n"t
rep"rt 4"r 5"r: ;s!9<&

Y"% re 0!:e5!se 5re tht y"% 5ere "bser$ed
?re, s!1nt"r!es ;s!9< t" the S0!1n1 Bts "4
BMCMC#UIP@ t" be %n054%00y prt!9!pt!n1 s
/e/ber !n the rn:#nd#A0e %n!"nHs 9"n9erted
9t!$!t!es desp!te :n"50ed1e tht y"%r p"s!t!"n
!n the h"sp!t0 !s /n1er!0 !n nt%re ?N%rses,
Order0!es, nd stF "4 the E/er1en9y R""/
9rry "%t y"%r "rders %s!n1 y"%r !ndependent
C%d1/ent@ 5h!9h prt!9!pt!"n !s e3press0y
pr"h!b!ted by the Ne5 Lb"r C"de nd 5h!9h
pr"h!b!t!"n 5s s%st!ned by the Med#Arb!terHs
ORDER dted Febr%ry *6, (88=& ?E/phs!s
nd !t0!9s !n the "r!1!n0E %nders9"r!n1 prt0y
!n the "r!1!n0 nd prt0y s%pp0!ed@









F"r these res"ns s 1r"%nds 4"r ter/!nt!"n,
y"% re hereby ter/!nted 4"r 9%se 4r"/
e/p0"y/ent eFe9t!$e t"dy, Apr!0 *7, (88=,
5!th"%t preC%d!9e t" 4%rther 9t!"n 4"r
re$"9t!"n "4 y"%r 0!9ense be4"re the Ph!0!pp!ne
;s!9< Re1%0t!"ns ;s!9< C"//!ss!"n&;()<
?E/phs!s nd %nders9"r!n1 s%pp0!ed@


Dr& LnDns th%s /ended h!s "r!1!n0
9"/p0!nt t" !n90%de !00e10 d!s/!ss0&;(=< H!s
nd Dr& Mer9ed!thHs 9"/p0!nts 5ere
9"ns"0!dted nd d"9:eted s NLRC CASE NO&
RAB#IV#2#8=)8#8=#L&

By De9!s!"n;(8< "4 Mr9h *2, (888, Lb"r
Arb!ter Ant"n!" R& M9/ d!s/!ssed the
sp"%sesH 9"/p0!nts 4"r 5nt "4 C%r!sd!9t!"n
%p"n And!n1 tht there 5s n" e/p0"yer#
e/p0"yee re0t!"nsh!p bet5een the prt!es, the
4"%rth reB%!s!te "r the M9"ntr"0 testN !n the
deter/!nt!"n "4 n e/p0"y/ent b"nd be!n1
bsent&

On ppe0, the NLRC, by De9!s!"n;*+< "4 My 2,
*++*, re$ersed the Lb"r Arb!terHs And!n1s,
d!sp"s!n1 s 4"00"5s,

IHEREFORE, the ss!0ed de9!s!"n !s set s!de&
The resp"ndents re "rdered t" py the
9"/p0!nnts the!r 4%00 b9:51esE seprt!"n
py "4 "ne /"nth s0ry 4"r e$ery yer "4
ser$!9e !n 0!e% "4 re!nstte/entE /"r0
d/1es "4 P7++,+++&++ e9hE e3e/p0ry
d/1es "4 P*7+,+++&++ e9h p0%s ten per9ent
?(+Y@ "4 the t"t0 5rd s tt"rneyHs 4ees&

SO ORDERED&;*(<

Pet!t!"nerHs /"t!"n 4"r re9"ns!dert!"n h$!n1
been den!ed, !t br"%1ht the 9se t" the C"%rt "4
Appe0s "n 9ert!"rr!&

The ppe00te 9"%rt, by -%ne 2+, *++6 De9!s!"n,
;**< !n!t!00y 1rnted pet!t!"nerHs pet!t!"n nd
set s!de the NLRC r%0!n1& H"5e$er, %p"n
s%bseB%ent /"t!"n 4"r re9"ns!dert!"n A0ed by
resp"ndents, !t re!nstted the NLRC de9!s!"n !n
n A/ended De9!s!"n;*2< dted Septe/ber *>,
*++> b%t te/pered the 5rd t" e9h "4 the
sp"%ses "4 /"r0 nd e3e/p0ry d/1es t"
P(++,+++&++ nd P7+,+++&++, respe9t!$e0y nd
"/!tted the 5rd "4 tt"rneyHs 4ees&

In And!n1 the e3!sten9e "4 n e/p0"yer#
e/p0"yee re0t!"nsh!p bet5een the prt!es, the
ppe00te 9"%rt he0d,

3 3 3& Ih!0e !t /y be tr%e tht the
resp"ndents re 1!$en the d!s9ret!"n t" de9!de
"n h"5 t" tret the pet!t!"nerHs pt!ents, the
pet!t!"ner hs n"t den!ed n"r e3p0!ned 5hy !ts
Med!90 D!re9t"r st!00 hs the d!re9t s%per$!s!"n
nd 9"ntr"0 "$er the resp"ndents& The 49t !s
the pet!t!"nerHs Med!90 D!re9t"r st!00 hs t"
ppr"$e the s9hed%0e "4 d%t!es "4 the
resp"ndents& The resp"ndents stressed tht
the pet!t!"nerHs Med!90 D!re9t"r 0s" !ss%es
!nstr%9t!"ns "r "rders t" the resp"ndents
re0t!n1 t" the /ens nd /eth"ds "4
per4"r/!n1 the!r d%t!es, !&e& d/!ss!"n "4
pt!ents, /nner "4 9hr9ter!D!n1 9ses,
tret/ent "4 9ses, et9&, nd /y e$en
"$err%0e, re$!e5 "r re$!se the de9!s!"ns "4 the
res!dent phys!9!ns& Th!s 5s n"t 9"ntr"$erted
by the pet!t!"ner& The 4"re1"!n1 49t"rs t:en
t"1ether re s%G9!ent t" 9"nst!t%te the 4"%rth
e0e/ent, !&e& 9"ntr"0 test, hen9e, the e3!sten9e
"4 the e/p0"yer#e/p0"yee re0t!"nsh!p& In
deny!n1 tht !t hd 9"ntr"0 "$er the
resp"ndents, the pet!t!"ner 00e1ed tht the
resp"ndents 5ere 4ree t" p%t %p the!r "5n
90!n!9s "r t" 99ept "ther ret!nersh!p
1ree/ent 5!th the "ther h"sp!t0s& B%t, the
pet!t!"ner 4!0ed t" s%bstnt!te the 00e1t!"n
5!th s%bstnt!0 e$!den9e& ?E/phs!s nd
%nders9"r!n1 s%pp0!ed@;*6<

The ppe00te 9"%rt th%s de90red tht
resp"ndents 5ere !00e100y d!s/!ssed&
3 3 3& The pet!t!"nerHs 1r"%nd 4"r d!s/!ss!n1
resp"ndent R"n0d" LnDns 5s bsed "n h!s
00e1ed prt!9!pt!"n !n %n!"n 9t!$!t!es,
spe9!A900y !n C"!n!n1 the str!:e nd 4!0!n1 t"
"bser$e the ret%rn#t"#5"r: "rder !ss%ed by the
Se9retry "4 Lb"r& Yet, the pet!t!"ner d!d n"t
dd%9e ny p!e9e "4 e$!den9e t" sh"5 tht
resp"ndent R"n0d" !ndeed prt!9!pted !n the
str!:e& 3 3 3&

In the 9se "4 resp"ndent Mer9ed!th
LnDns, the pet!t!"nerHs e3p0nt!"n tht
Mher /rr!1e t" 9"/p0!nnt R"n0d" hs
1!$en r!se t" the pres%/pt!"n tht her
sy/pt;h!es< re 0!:e5!se 5!th her h%sbndN s
1r"%nd 4"r her d!s/!ss0 !s %n99eptb0e&
S%9h !s n"t "ne "4 the 1r"%nds t" C%st!4y the
ter/!nt!"n "4 her e/p0"y/ent&;*7<
?Unders9"r!n1 s%pp0!ed@


The 400" "4 the ppe00te 9"%rtHs de9!s!"n
reds,

IHEREFORE, the !nstnt M"t!"n 4"r
Re9"ns!dert!"n !s 'RANTED, nd the C"%rtHs
de9!s!"n dted -%ne 2+, *++6, !s SET ASIDE& In
0!e% there"4, ne5 C%d1/ent !s entered, s
4"00"5s,

IHEREFORE, the pet!t!"n !s
DISMISSED& The ss!0ed de9!s!"n dted My
2, *++* nd "rder dted Septe/ber *6, *++*
"4 the NLRC !n NLRC NCR CA N"& +(8=*2#88 re
AFFIRMED 5!th the MODIFICATION tht the
/"r0 nd e3e/p0ry d/1es re red%9ed t"
P(++,+++&++ e9h nd P7+,+++&++ e9h,
respe9t!$e0y&

SO ORDERED&;*>< ?E/phs!s nd
!t0!9s !n the "r!1!n0E %nders9"r!n1 s%pp0!ed@


Pre0!/!nr!0y, the present pet!t!"n 900s 4"r
deter/!nt!"n "4 5hether there e3!sts n
e/p0"yer#e/p0"yee re0t!"nsh!p;*)< bet5een
pet!t!"ner nd the sp"%ses#resp"ndents&

Deny!n1 the e3!sten9e "4 s%9h re0t!"nsh!p,
pet!t!"ner r1%es tht the ppe00te 9"%rt, s
5e00 s the NLRC, "$er0"":ed !ts t5!9e##5ee:
rep"rt!n1 rrn1e/ent 5!th resp"ndents 5h"
re 4ree t" pr9t!9e the!r pr"4ess!"n e0se5here
the rest "4 the 5ee:& And !t !n$!tes ttent!"n t"
the %n9"ntr"$erted 00e1t!"n tht
resp"ndents, s!de 4r"/ the!r /"nth0y
ret!ners, 5ere ent!t0ed t" "ne#h04 "4 00
s%t%r!n1, d/!tt!n1, 9"ns%0tt!"n, /ed!9"#0e10
nd "pert!n1 r""/ ss!stn9e 4ees&;*=< These
9!r9%/stn9es, !t stresses, re 90er bd1es "4
the bsen9e "4 ny e/p0"y/ent re0t!"nsh!p
bet5een the/&

Th!s C"%rt !s %n!/pressed&

Under the M9"ntr"0 test,N n e/p0"y/ent
re0t!"nsh!p e3!sts bet5een phys!9!n nd
h"sp!t0 !4 the h"sp!t0 9"ntr"0s b"th the /ens
nd the det!0s "4 the pr"9ess by 5h!9h the
phys!9!n !s t" 99"/p0!sh h!s ts:&;*8<

Ihere pers"n 5h" 5"r:s 4"r n"ther d"es s"
/"re "r 0ess t h!s "5n p0es%re nd !s n"t
s%bCe9t t" deAn!te h"%rs "r 9"nd!t!"ns "4 5"r:,
nd !s 9"/pensted 99"rd!n1 t" the res%0t "4
h!s eF"rts nd n"t the /"%nt there"4, the
e0e/ent "4 9"ntr"0 !s bsent&;2+<

As pr!"r0y stted, pr!$te resp"ndents
/!nt!ned spe9!A9 5"r:#s9hed%0es, s
deter/!ned by pet!t!"ner thr"%1h !ts /ed!90
d!re9t"r, 5h!9h 9"ns!sted "4 *6#h"%r sh!4ts
t"t0!n1 4"rty#e!1ht h"%rs e9h 5ee: nd 5h!9h
5ere str!9t0y t" be "bser$ed %nder p!n "4
d/!n!strt!$e sn9t!"ns&

Tht pet!t!"ner e3er9!sed 9"ntr"0 "$er
resp"ndents 1!ns 0!1ht 4r"/ the %nd!sp%ted
49t tht !n the e/er1en9y r""/, the "pert!n1
r""/, "r ny deprt/ent "r 5rd 4"r tht
/tter, resp"ndentsH 5"r: !s /"n!t"red
thr"%1h !ts n%rs!n1 s%per$!s"rs, 9hr1e n%rses
nd "rder0!es& I!th"%t the ppr"$0 "r 9"nsent
"4 pet!t!"ner "r !ts /ed!90 d!re9t"r, n"
"pert!"ns 9n be %ndert:en !n th"se res&
F"r 9"ntr"0 test t" pp0y, !t !s n"t essent!0 4"r
the e/p0"yer t" 9t%00y s%per$!se the
per4"r/n9e "4 d%t!es "4 the e/p0"yee, !t be!n1
en"%1h tht !t hs the r!1ht t" 5!e0d the p"5er&
;2(<

I!th respe9t t" resp"ndentsH shr!n1 !n s"/e
h"sp!t0 4ees, th!s s9he/e d"es n"t se$er the
e/p0"y/ent t!e bet5een the/ nd pet!t!"ner
s th!s /ere0y /!rr"rs dd!t!"n0 4"r/ "r
n"ther 4"r/ "4 9"/penst!"n "r !n9ent!$e
s!/!0r t" 5ht 9"//!ss!"n#bsed e/p0"yees
re9e!$e s 9"nte/p0ted !n Art!90e 8) ?4@ "4 the
Lb"r C"de, th%s,

MI1eN p!d t" ny e/p0"yee sh00 /en the
re/%nert!"n "r ern!n1, h"5e$er des!1nted,
9pb0e "4 be!n1 e3pressed !n ter/s "4 /"ney,
5hether A3ed "r s9ert!ned "n t!/e, ts:,
p!e9e, "r 9"//!ss!"n bs!s, "r "ther /eth"d "4
909%0t!n1 the s/e, 5h!9h !s pyb0e by n
e/p0"yer t" n e/p0"yee %nder 5r!tten "r
%n5r!tten 9"ntr9t "4 e/p0"y/ent 4"r 5"r:
d"ne "r t" be d"ne, "r 4"r ser$!9es rendered "r
t" be rendered nd !n90%des the 4!r nd
res"nb0e $0%e, s deter/!ned by the
Se9retry "4 Lb"r, "4 b"rd, 0"d1!n1, "r "ther
49!0!t!es 9%st"/r!0y 4%rn!shed by the e/p0"yer
t" the e/p0"yee& 3 3 3 ?E/phs!s nd
%nders9"r!n1 s%pp0!ed@,

Resp"ndents 5ere !n 49t /de s%bCe9t t"
pet!t!"ner#h"sp!t0Hs C"de "4 Eth!9s,;2*< the
pr"$!s!"ns "4 5h!9h 9"$er d/!n!strt!$e nd
d!s9!p0!nry /es%res "n ne10!1en9e "4 d%t!es,
pers"nne0 9"nd%9t nd beh$!"r, nd "Fenses
1!nst pers"ns, pr"perty nd the h"sp!t0Hs
!nterest&

M"re !/p"rtnt0y, pet!t!"ner !tse04 pr"$!ded
!n9"ntr"$ert!b0e pr""4 "4 the e/p0"y/ent
stt%s "4 resp"ndents, n/e0y, the
!dent!A9t!"n 9rds !t !ss%ed the/, the
pys0!ps;22< nd BIR I#* ?n"5 *2(>@ F"r/s
5h!9h reLe9t the!r stt%s s e/p0"yees, nd
the 90ss!A9t!"n s Ms0ryN "4 the!r
re/%nert!"n& M"re"$er, !t enr"00ed
resp"ndents !n the SSS nd Med!9re
?Ph!0he0th@ pr"1r/& It bers n"t!n1 t th!s
C%n9t%re tht /ndt"ry 9"$er1e %nder the
SSS L5;26< !s pre/!sed "n the e3!sten9e "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p,;27< e39ept !n
9ses "4 9"/p%0s"ry 9"$er1e "4 the se04#
e/p0"yed& It 5"%0d be prep"ster"%s 4"r n
e/p0"yer t" rep"rt 9ert!n pers"ns s
e/p0"yees nd py the!r SSS pre/!%/s s 5e00
s the!r 51es !4 they re n"t !ts e/p0"yees&
;2><

And !4 resp"ndents 5ere n"t pet!t!"nerHs
e/p0"yees, h"5 d"es !t 99"%nt 4"r !ts
!ss%n9e "4 the er0!er#B%"ted Mr9h ), (88=
/e/"rnd%/ e3p0!9!t0y stt!n1 tht resp"ndent
!s Me/p0"yedN !n !t nd "4 the s%bseB%ent
ter/!nt!"n 0etter !nd!9t!n1 resp"ndent
LnDnsH e/p0"y/ent stt%s&

F!n00y, %nder Se9t!"n (7, R%0e R "4 B"": III "4
the I/p0e/ent!n1 R%0es "4 the Lb"r C"de, n
e/p0"yer#e/p0"yee re0t!"nsh!p e3!sts
bet5een the res!dent phys!9!ns nd the
tr!n!n1 h"sp!t0s, %n0ess there !s tr!n!n1
1ree/ent bet5een the/, nd the tr!n!n1
pr"1r/ !s d%0y 99red!ted "r ppr"$ed by the
ppr"pr!te 1"$ern/ent 1en9y& In
resp"ndentsH 9se, they 5ere n"t %nder1"!n1
ny spe9!0!Dt!"n tr!n!n1& They 5ere
9"ns!dered n"n#tr!n!n1 1ener0 pr9t!t!"ners,
;2)< ss!1ned t the e/er1en9y r""/s nd
5rd se9t!"ns&

T%rn!n1 n"5 t" the !ss%e "4 d!s/!ss0, the C"%rt
%ph"0ds the ppe00te 9"%rtHs 9"n90%s!"n tht
pr!$te resp"ndents 5ere !00e100y d!s/!ssed&

Dr& LnDns 5s ne!ther /n1er!0 n"r
s%per$!s"ry e/p0"yee b%t prt "4 the rn:#nd#
A0e& Th!s !s the !/p"rt "4 the Se9retry "4
Lb"rHs Res"0%t!"n "4 My **, (88= !n OS A#+7#
(7#8= 5h!9h reds,

3 3 3 3

In the /"t!"n t" d!s/!ss !t A0ed be4"re the Med#
Arb!ter, the e/p0"yer ?CMC@ 00e1ed tht *6
/e/bers "4 pet!t!"ner re s%per$!s"rs, n/e0y
3 3 3 R"0nd" LnD"ns ;s!9< 3 3 3&

A 90"se s9r%t!ny "4 the C"b des9r!pt!"ns "4 the
00e1ed s%per$!s"rs nrrted by the e/p0"yer
"n0y pr"$es tht e39ept 4"r the 9"ntent!"n tht
these e/p0"yees 00e1ed0y s%per$!se, they d"
n"t h"5e$er re9"//end ny /n1er!0
9t!"n& At /"st, the!r C"b !s /ere0y r"%t!nry !n
nt%re nd 9"nseB%ent0y, they 9nn"t be
9"ns!dered s%per$!s"ry e/p0"yees&

They re n"t there4"re brred 4r"/
/e/bersh!p !n the %n!"n "4 rn:;#<nd;#<A0e,
5h!9h the pet!t!"ner ;the %n!"n< !s see:!n1 t"
represent !n the !nstnt 9se&;2=< ?E/phs!s
nd %nders9"r!n1 s%pp0!ed@

3 3 3 3

Ad/!tted0y, Dr& LnDns 5s %n!"n /e/ber
!n the h"sp!t0, 5h!9h !s 9"ns!dered
!nd!spensb0e t" the nt!"n0 !nterest& In 0b"r
d!sp%tes d$erse0y Fe9t!n1 the 9"nt!n%ed
"pert!"n "4 h"sp!t0, Art!90e *>2?1@ "4 the
Lb"r C"de pr"$!des,

ART& *>2& STRIUES, PICUETIN', AND LOCUOUTS&
T

3 3 3 3

?1@ 3 3 3 3

3 3 3 3& In 0b"r d!sp%tes d$erse0y Fe9t!n1
the 9"nt!n%ed "pert!"n "4 s%9h h"sp!t0s,
90!n!9s "r /ed!90 !nst!t%t!"ns, !t sh00 be the
d%ty "4 the str!:!n1 %n!"n "r 0"9:!n1#"%t
e/p0"yer t" pr"$!de nd /!nt!n n eFe9t!$e
s:e0et0 5"r:4"r9e "4 /ed!90 nd "ther he0th
pers"nne0, 5h"se /"$e/ent nd ser$!9es sh00
be %nh/pered nd %nrestr!9ted, s re
ne9essry t" !ns%re the pr"per nd deB%te
pr"te9t!"n "4 the 0!4e nd he0th "4 !ts pt!ents,
/"st espe9!00y e/er1en9y 9ses, 4"r the
d%rt!"n "4 the str!:e "r 0"9:"%t& In s%9h 9ses,
the Se9retry "4 Lb"r nd E/p0"y/ent !s
/ndted t" !//ed!te0y ss%/e, 5!th!n
t5enty#4"%r h"%rs 4r"/ :n"50ed1e "4 the
"99%rren9e "4 s%9h str!:e "r 0"9:"%t, C%r!sd!9t!"n
"$er the s/e "r 9ert!4y t" the C"//!ss!"n 4"r
9"/p%0s"ry rb!trt!"n& F"r th!s p%rp"se, the
9"ntend!n1 prt!es re str!9t0y enC"!ned t"
9"/p0y 5!th s%9h "rders, pr"h!b!t!"ns ndK"r
!nC%n9t!"ns s re !ss%ed by the Se9retry "4
Lb"r nd E/p0"y/ent "r the C"//!ss!"n,
%nder p!n "4 !//ed!te d!s9!p0!nry 9t!"n,
!n90%d!n1 d!s/!ss0 "r 0"ss "4 e/p0"y/ent
stt%s "r py/ent by the 0"9:!n1#"%t e/p0"yer
"4 b9:51es, d/1es nd "ther Gr/t!$e
re0!e4, e$en 9r!/!n0 pr"se9%t!"n 1!nst e!ther
"r b"th "4 the/&

3 3 3 3 ?E/phs!s nd %nders9"r!n1 s%pp0!ed@

An ss%/pt!"n "r 9ert!A9t!"n "rder "4 the
DOLE Se9retry %t"/t!900y res%0ts !n
ret%rn#t"#5"r: "4 00 str!:!n1 5"r:ers, 5hether
9"rresp"nd!n1 ret%rn#t"#5"r: "rder hd been
!ss%ed&;28< The DOLE Se9retry !n 49t !ss%ed
ret%rn#t"#5"r: Order, 4!0!n1 t" 9"/p0y 5!th
5h!9h !s p%n!shb0e by d!s/!ss0 "r 0"ss "4
e/p0"y/ent stt%s&;6+<

Prt!9!pt!"n !n str!:e nd !ntrns!1en9e t"
ret%rn#t"#5"r: "rder /%st, h"5e$er, be d%0y
pr"$ed !n "rder t" C%st!4y !//ed!te d!s/!ss0
!n Mnt!"n0 !nterestN 9se& As the ppe00te
9"%rt s 5e00 s the NLRC "bser$ed, h"5e$er,
there !s n"th!n1 !n the re9"rds tht 5"%0d ber
"%t Dr& LnDnsH 9t%0 prt!9!pt!"n !n the
str!:e& And the /ed!90 d!re9t"rHs
Me/"rnd%/;6(< "4 Apr!0 **, (88= 9"nt!ns
n"th!n1 /"re thn 1ener0 d!re9t!$e t" 00
%n!"n "G9ers nd /e/bers t" ret%rn#t"#5"r:&
Mere /e/bersh!p !n 0b"r %n!"n d"es n"t
!ps" 49t" /en prt!9!pt!"n !n str!:e&

Dr& LnDnsH 90!/ tht, 4ter h!s 2+#dy
pre$ent!$e s%spens!"n ended "n "r be4"re Apr!0
8, (88=, he 5s ne$er 1!$en ny 5"r:
s9hed%0e;6*< 5s n"t re4%ted by pet!t!"ner&
Pet!t!"ner !n 49t ne$er re0esed ny And!n1s "4
!ts s%pp"sed !n$est!1t!"n !nt" Dr& LnDnsH
00e1ed M!n!/!90 9ts&N

Pet!t!"ner th%s 4!0ed t" "bser$e the t5"
reB%!re/ents,be4"re d!s/!ss0 9n be eFe9ted
\ n"t!9e nd her!n1 \ 5h!9h 9"nst!t%te
essent!0 e0e/ents "4 the stt%t"ry pr"9essE the
Arst t" ppr!se the e/p0"yee "4 the prt!9%0r
9ts "r "/!ss!"ns 4"r 5h!9h h!s d!s/!ss0 !s
s"%1ht, nd the se9"nd t" !n4"r/ the e/p0"yee
"4 the e/p0"yerPs de9!s!"n t" d!s/!ss h!/&;62<
N"n#"bser$n9e "4 these reB%!re/ents r%ns
4"%0 "4 the pr"9ed%r0 /ndte&;66<

The ter/!nt!"n n"t!9e sent t" nd re9e!$ed by
Dr& LnDns "n Apr!0 *7, (88= 5s the Arst
nd "n0y t!/e tht he 5s ppr!sed "4 the
res"n 4"r h!s d!s/!ss0& He 5s n"t F"rded,
h"5e$er, e$en the s0!1htest "pp"rt%n!ty t"
e3p0!n h!s s!de& H!s 5s Mter/!nt!"n %p"n
re9e!ptN s!t%t!"n& Ih!0e he 5s pr!"r0y /de
t" e3p0!n "n h!s te0eph"ne 9"n$erst!"n 5!th
M!s90,;67< he 5s n"t 5!th respe9t t" h!s
s%pp"sed prt!9!pt!"n !n the str!:e nd 4!0%re
t" heed the ret%rn#t"#5"r: "rder&

As 4"r the 9se "4 Dr& Mer9ed!th, her d!s/!ss0
5s 5"rse, !t h$!n1 been eFe9ted 5!th"%t ny
C%st "r %th"r!Ded 9%se nd 5!th"%t
"bser$n9e "4 d%e pr"9ess& In 49t, pet!t!"ner
ne$er pr"4erred ny $0!d 9%se 4"r her
d!s/!ss0 e39ept !ts $!e5 tht Mher /rr!1e t"
;Dr& LnDns< hs 1!$en r!se t" the
pres%/pt!"n tht her sy/pth;y< ;!s< 5!th her
h%sbndE ;nd tht 5hen ;Dr& LnDns<
de90red tht he 5s 1"!n1 t" b"y9"tt the
s9hed%0!n1 "4 the!r 5"r:0"d by the /ed!90
d"9t"r, he 5s pres%/ed t" be spe:!n1 4"r
h!/se04 ;nd< 4"r h!s 5!4e Mer9ed!th&N;6><

Pet!t!"nerHs 9"ntent!"n tht Dr& Mer9ed!th 5s
/e/ber "4 the %n!"n "r 5s prt!9!pnt !n
the str!:e re/!ned C%st tht& Its ter/!nt!"n "4
her e/p0"y/ent "n the bs!s "4 her 9"nC%10
re0t!"nsh!p !s n"t n0"1"%s t"
ny "4 the 9%ses en%/erted !n Art!90e
*=*;6)< "4 the Lb"r C"de& Mere s%sp!9!"n "r
be0!e4, n" /tter h"5 str"n1, 9nn"t s%bst!t%te
4"r 49t%0 And!n1s 9re4%00y estb0!shed
thr"%1h "rder0y pr"9ed%re&;6=<

The C"%rt e$en n"tes tht 4ter the
pr"9eed!n1s t the NLRC, pet!t!"ner ne$er e$en
/ent!"ned Dr& Mer9ed!thHs 9se& There !s th%s
n" 1!nsy!n1 tht her d!s/!ss0 5s b"th
s%bstnt!$e0y nd pr"9ed%r00y !nAr/&

Add!n1 !ns%0t t" !nC%ry 5s the 9!r9%0t!"n by
pet!t!"ner "4 M5t9h0!stN "r M5t9h "%t
0!stN;68< !n90%d!n1 there!n the n/es "4
resp"ndents& C"ns!der the 4"00"5!n1 p"rt!"ns
"4 Dr& Mer9ed!thHs Me/"rnd%/ "4 Appe0,

2& M"re"$er, t" t"p !t 00, resp"ndents h$e
9!r9%0ted s" 900ed MIt9h L!stN t" "ther
h"sp!t0s, "ne "4 5h!9h ;5s< pr"9%red 4r"/
F""th!00s H"sp!t0 !n St"& T"/s, Btn1s ;tht<
9"nt!ns her n/e& The "bCe9t "4 the s!d 0!st
!s pre9!se0y t" hrss C"/p0!nnt nd /0!1n
her 1""d n/e nd rep%tt!"n& Th!s !s n"t "n0y
%npr"4ess!"n0, b%t r%ns s/9: "4 "ppress!"n
s CMC !s try!n1 per/nent0y depr!$ed ;s!9<
C"/p0!nnt "4 her 0!$e0!h""d by ens%r!n1 tht
she !s brred 4r"/ pr9t!9!n1 !n "ther h"sp!t0s&

6& Other 9"#pr"4ess!"n0s nd br"thers !n the
pr"4ess!"n re 4%00y 5re "4 these M5t9h "%tN
0!sts nd s s%9h, her rep%tt!"n 5s n"t "n0y
bes/!r9hed, b%t 5s d/1ed, nd she
s%Fered s"9!0 h%/!0!t!"n s !t !s "4 p%b0!9
:n"50ed1e tht she 5s d!s/!ssed 4r"/ 5"r:&
C"/p0!nnt 9/e 4r"/ rep%tb0e nd
respe9ted 4/!0y, her
4ther be!n1 ret!red 4%00 C"0"ne0 !n the Ar/y,
C"0& R"/e" A& Vente, nd her br"thers nd
s!sters re 00 pr"4ess!"n0s, her br"thers,
Arn"0d nd R"/e" -r&, be!n1 en1!neers& The
C"/p0!nnt hs 4/!0y pr"te9t!"n ;s!9< t"
pr"te9t& She 0!:e5!se hs pr"4ess!"n0
rep%tt!"n t" pr"te9t, be!n1 0!9ensed
phys!9!n& B"th her pers"n0 nd pr"4ess!"n0
rep%tt!"n 5ere d/1ed s res%0t "4 the
%n054%0 9ts "4 the resp"ndents&;7+<


Ih!0e pet!t!"ner d"es n"t deny the e3!sten9e "4
s%9h 0!st, !t p"!nted t" the 09: "4 ny b"rd
9t!"n "n !ts prt t" !n!t!te s%9h 0!st!n1 nd t"
9!r9%0te the s/e, $!D,

*+& 3 3 3& The 00e1ed 5t9h0!st "r M5t9h "%t
0!st,N s ter/ed by 9"/p0!nnts, 5ere /ere0y
0!sts "bt!ned by "ne Dr& Ernest" N$0 "4
PAMANA H"sp!t0& S!d 0!st 5s 1!$en by
st"9:h"0der "4 resp"ndent 5h" 5s t the
s/e t!/e st"9:h"0der "4 PAMAN;A< H"sp!t0&
The 1!$!n1 "4 the 0!st 5s n"t B"rd 9t!"n&
;7(< ?E/phs!s nd %nders9"r!n1 s%pp0!ed@

The 9!r9%0t!"n "4 s%9h 0!st 9"nt!n!n1 n/es "4
00e1ed %n!"n /e/bers !ntended t" pre$ent
e/p0"y/ent "4 5"r:ers 4"r %n!"n 9t!$!t!es
s!/!0r0y 9"nst!t%tes %n4!r 0b"r pr9t!9e,
thereby 1!$!n1 r!1ht "4 9t!"n 4"r d/1es by
the e/p0"yees preC%d!9ed&;7*<

A 5"rd "n the ppe00te 9"%rtHs de0et!"n "4 the
5rd "4 tt"rneyHs 4ees& There be!n1 n" bs!s
d$n9ed !n de0et!n1 !t, s e3e/p0ry d/1es
5ere 9"rre9t0y 5rded,;72< the 5rd "4
tt"rneyHs 4ees sh"%0d be re!nstted&




IHEREFORE, the De9!s!"n "4 the C"%rt "4
Appe0s !n CA#'&R& SP N"& )7=)( !s AFFIRMED
5!th MODIFICATION !n tht the 5rd by the
Nt!"n0 Lb"r Re0t!"ns C"//!ss!"n "4 (+Y "4
the t"t0 C%d1/ent 5rd s tt"rneyHs 4ees !s
re!nstted& In 00 "ther spe9ts, the de9!s!"n
"4 the ppe00te 9"%rt !s Gr/ed&

SO ORDERED&
SECOND DIVISION
;'&R& N"& (7(**=& A%1%st (7, *++*<
ROLANDO Y& TAN, pet!t!"ner, $s& LEOVI'ILDO
LA'RAMA nd THE HONORABLE COURT OF
APPEALS, resp"ndents&
D E C I S I O N
MENDO.A, -&,
Th!s !s pet!t!"n 4"r re$!e5 "n 9ert!"rr! "4 the
de9!s!"n,;(< dted My 2(, *++(, nd the
res"0%t!"n,;*< dted N"$e/ber *), *++(, "4 the
C"%rt "4 Appe0s !n C&A&#'&R& SP& N"& >2(>+,
nn%00!n1 the res"0%t!"ns "4 the Nt!"n0 Lb"r
Re0t!"ns C"//!ss!"n ?NLRC@ nd re!nstt!n1
the r%0!n1 "4 the Lb"r Arb!ter 5h!9h 4"%nd
pet!t!"ner R"0nd" Tn 1%!0ty "4 !00e100y
d!s/!ss!n1 pr!$te resp"ndent Le"$!1!0d"
L1r/ nd "rder!n1 h!/ t" py the 0tter the
/"%nt "4 P(2>,=68&88 by 5y "4 seprt!"n
py, b9:51es, nd d/1es&
The 4"00"5!n1 re the 49ts&
Pet!t!"ner R"0nd" Tn !s the pres!dent "4
S%pre/e Theter C"rp"rt!"n nd the 1ener0
/n1er "4 Cr"5n nd E/p!re Theters !n
B%t%n C!ty& Pr!$te resp"ndent Le"$!1!0d"
L1r/ !s p!nter, /:!n1 d b!00b"rds nd
/%r0s 4"r the /"t!"n p!9t%res sh"5n t the
E/press, S%pre/e, nd Cr"5n Theters 4"r
/"re thn (+ yers, 4r"/ Septe/ber (, (8==
t" O9t"ber (), (88=&
On O9t"ber (), (88=, pr!$te resp"ndent
L1r/ 5s s%//"ned by Tn nd
%pbr!ded, MNn1!h! n n/n : s%0"d s
!/"n1 dr5!n1nn&N ?MY"% 1!n %r!nted
!ns!de y"%r 5"r: re&N@ Ihen L1r/ s:ed
5ht Tn 5s sy!n1, Tn t"0d h!/, MAy5
d1hn1 est"ry& D!0! :" 1%st" n1 /"#
dr5!n1 : p& '%!:n :r"n, 50 ny
dr5!n1& '5s&N ?MD"nHt sy nyth!n1 4%rther&
I d"nHt 5nt y"% t" dr5 ny/"re& Fr"/ n"5
"n, n" /"re dr5!n1& 'et "%t&N@
L1r/ den!ed the 9hr1e 1!nst h!/& He
90!/ed tht he 5s n"t the "n0y "ne 5h"
entered the dr5!n1 re nd tht, e$en !4 the
9hr1e 5s tr%e, !t 5s /!n"r !n4r9t!"n t"
5rrnt h!s d!s/!ss0& H"5e$er, e$eryt!/e he
sp":e, Tn sh"%ted M'5sN ?M'et "%tN@,
0e$!n1 h!/ 5!th n" "ther 9h"!9e b%t t" 0e$e
the pre/!ses&
L1r/ A0ed 9"/p0!nt 5!th the S%b#
Re1!"n0 Arb!trt!"n Brn9h N"& R "4 the
Nt!"n0 Lb"r Re0t!"ns C"//!ss!"n ?NLRC@ !n
B%t%n C!ty& He 00e1ed tht he hd been
!00e100y d!s/!ssed nd s"%1ht re!n$est!1t!"n
nd py/ent "4 (2th /"nth py, ser$!9e
!n9ent!$e 0e$e py, s0ry d!Ferent!0, nd
d/1es&
Pet!t!"ner Tn den!ed tht L1r/ 5s h!s
e/p0"yee& He sserted tht L1r/ 5s n
!ndependent 9"ntr9t"r 5h" d!d h!s 5"r:
99"rd!n1 t" h!s /eth"ds, 5h!0e he ?pet!t!"ner@
5s "n0y !nterested !n the res%0t there"4& He
9!ted the d/!ss!"n "4 L1r/ d%r!n1 the
9"n4eren9es be4"re the Lb"r Arb!ter tht he
5s p!d "n A3ed p!e9e#5"r: bs!s, !&e&, tht
he 5s p!d 4"r e$ery p!nt!n1 t%rned "%t s d
b!00b"rd "r /%r0 4"r the p!9t%res sh"5n !n the
three theters, "n the bs!s "4 Mn"
/%r0Kb!00b"rd dr5n, n" pyN p"0!9y& He
s%b/!tted the Gd$!ts "4 "ther 9!ne/
"5ners, n /%se/ent pr: "5ner, nd th"se
s%per$!s!n1 the 9"nstr%9t!"n "4 9h%r9h t"
pr"$e tht the ser$!9es "4 L1r/ 5ere
9"ntr9ted by the/& He den!ed h$!n1
d!s/!ssed L1r/ nd 00e1ed tht !t 5s the
0tter 5h" re4%sed t" p!nt 4"r h!/ 4ter he 5s
s9"0ded 4"r h!s hb!ts&
As n" /!9b0e sett0e/ent hd been re9hed,
Lb"r Arb!ter R"1e0!" P& Le1sp! d!re9ted the
prt!es t" A0e the!r p"s!t!"n ppers& On -%ne
(), (888, he rendered de9!s!"n, the
d!sp"s!t!$e p"rt!"n "4 5h!9h reds,
IHEREFORE, pre/!ses 9"ns!dered C%d1/ent !s
hereby "rdered,
(& De90r!n1 9"/p0!nntHs ;L1r/Hs<
d!s/!ss0 !00e10 nd
*& Order!n1 resp"ndents ;Tn< t" py
9"/p0!nnt the 4"00"5!n1,
A& Seprt!"n Py #
P 78,+++&++
B& B9:51es #
6),*++&++
?4r"/ () O9t"ber (88= t" () -%ne
(888@
C& (2th /"nth py ?2 yers@ #
(),)++&++
D& Ser$!9e In9ent!$e Le$e
Py ?2 yers@ #
*, 868&88
E& D/1es #
(+,+++&++
TOTAL
;P(2>,=68&88<
C"/p0!nntHs "ther 90!/s re d!s/!ssed 4"r
09: "4 /er!t&;2<
Pet!t!"ner R"0nd" Tn ppe0ed t" the NLRC
F!4th D!$!s!"n, C1yn de Or" C!ty, 5h!9h, "n
-%ne 2+, *+++, rendered de9!s!"n;6< And!n1
L1r/ t" be n !ndependent 9"ntr9t"r, nd
4"r th!s res"n re$ers!n1 the de9!s!"n "4 the
Lb"r Arb!ter&
Resp"ndent L1r/ A0ed /"t!"n 4"r
re9"ns!dert!"n, b%t !t 5s den!ed 4"r 09: "4
/er!t by the NLRC !n res"0%t!"n "4 Septe/ber
*8, *+++& He then A0ed pet!t!"n 4"r 9ert!"rr!
%nder R%0e >7 be4"re the C"%rt "4 Appe0s&
The C"%rt "4 Appe0s 4"%nd tht pet!t!"ner
e3er9!sed 9"ntr"0 "$er L1r/Hs 5"r: by
d!9tt!n1 the t!/e 5hen L1r/ sh"%0d
s%b/!t h!s b!00b"rds nd /%r0s nd sett!n1
r%0es "n the %se "4 the 5"r: re nd rest
r""/& A0th"%1h !t 4"%nd tht L1r/ d!d 5"r:
4"r "ther 9!ne/ "5ners, the ppe0s 9"%rt
he0d !t t" be /ere s!de0!ne !ns%G9!ent t"
pr"$e tht he 5s n"t n e/p0"yee "4 Tn& The
ppe0s 9"%rt 0s" 4"%nd n" e$!den9e "4 ny
!ntent!"n "n the prt "4 L1r/ t" 0e$e h!s
C"b "r se$er h!s e/p0"y/ent re0t!"nsh!p 5!th
Tn& A99"rd!n10y, "n My 2(, *++(, the C"%rt "4
Appe0s rendered de9!s!"n, the d!sp"s!t!$e
p"rt!"n "4 5h!9h reds,
IN THE LI'HT OF ALL THE FORE'OIN', the
Pet!t!"n !s hereby 'RANTED& The Res"0%t!"ns
"4 the P%b0!9 Resp"ndent !ss%ed "n -%ne 2+,
*+++ nd Septe/ber *8, *+++ re ANNULLED&
The De9!s!"n "4 the H"n"rb0e Lb"r Arb!ter
R"1e0!" P& Le1sp! "n -%ne (), (888 !s hereby
REINSTATED&
Pet!t!"ner /"$ed 4"r re9"ns!dert!"n, b%t the
C"%rt "4 Appe0s 4"%nd n" res"n t" re$erse !ts
de9!s!"n nd s" den!ed h!s /"t!"n 4"r 09: "4
/er!t&;7< Hen9e, th!s pet!t!"n 4"r re$!e5 "n
9ert!"rr! bsed "n the 4"00"5!n1 ss!1n/ents
"4 err"rs,
I& I!th 00 d%e respe9t, the de9!s!"n "4
resp"ndent C"%rt "4 Appe0s !n CA#'&R& SP NO&
>2(>+ !s bere4t "4 ny And!n1 tht P%b0!9
Resp"ndent NLRC, 7th D!$!s!"n, hd n"
C%r!sd!9t!"n "r e39eeded !t "r "ther5!se 1r$e0y
b%sed !ts d!s9ret!"n !n !ts Res"0%t!"n "4 2+
-%ne *+++ !n NLRC CA#NO& M#++687+#88&
II& I!th 00 d%e respe9t, resp"ndent C"%rt "4
Appe0s, bsent ny p"s!t!$e And!n1 "n !ts prt
tht the Res"0%t!"n "4 2+ -%ne *+++ "4 the NLRC
!s n"t s%pp"rted by s%bstnt!0 e$!den9e, !s
5!th"%t %th"r!ty t" s%bst!t%te !ts 9"n90%s!"n
4"r tht "4 s!d NLRC&
III& I!th 00 d%e respe9t, resp"ndent C"%rt "4
Appe0sH d!s9"%rse "n M4ree0n9e rt!sts nd
p!ntersN !n the de9!s!"n !n B%est!"n !s
/!sp09ed "r hs n" 49t%0 "r 0e10 bs!s !n the
re9"rd&
IV& I!th 00 d%e respe9t, resp"ndent C"%rt "4
Appe0sH "pen!n1 stte/ent !n !ts de9!s!"n s
t" Me/p0"y/ent,N M/"nth0y s0ry "4
P(,6)7&++N nd M5"r: s9hed%0e 4r"/ M"ndy
t" St%rdy, 4r"/ =,++ "H90"9: !n the /"rn!n1
%p t" 7,++ "H90"9: !n the 4tern""nN s M49tsN
!s n"t s%pp"rted by the e$!den9e "n re9"rd&
V& I!th 00 d%e respe9t, the 9se "4 L/b", et
0&, $& NLRC, et 0&, 2() SCRA 6*+ ;'&R& N"&
(((+6* O9t"ber *>, (888< re0!ed %p"n by
resp"ndent C"%rt "4 Appe0s !s n"t pp0!9b0e
t" the pe9%0!r 9!r9%/stn9es "4 th!s 9se&;><
The !ss%es r!sed b"!0 d"5n t" 5hether "r n"t
n e/p0"yer#e/p0"yee re0t!"nsh!p e3!sted
bet5een pet!t!"ner nd pr!$te resp"ndent,
nd 5hether pet!t!"ner !s 1%!0ty "4 !00e100y
d!s/!ss!n1 pr!$te resp"ndent& Ie And the
ns5ers t" these !ss%es t" be !n the
Gr/t!$e&
I&
In deter/!n!n1 5hether there !s n e/p0"yer#
e/p0"yee re0t!"nsh!p, 5e h$e pp0!ed
M4"%r#4"0d test,N t" 5!t, ?(@ 5hether the 00e1ed
e/p0"yer hs the p"5er "4 se0e9t!"n nd
en11e/ent "4 e/p0"yeesE ?*@ 5hether he hs
9"ntr"0 "4 the e/p0"yee 5!th respe9t t" the
/ens nd /eth"ds by 5h!9h 5"r: !s t" be
99"/p0!shedE ?2@ 5hether he hs the p"5er t"
d!s/!ssE nd ?6@ 5hether the e/p0"yee 5s
p!d 51es&;)< These e0e/ents "4 the
e/p0"yer#e/p0"yee re0t!"nsh!p re present !n
th!s 9se&
F!rst& The e3!sten9e !n th!s 9se "4 the Arst
e0e/ent !s %nd!sp%ted& It 5s pet!t!"ner 5h"
en11ed the ser$!9es "4 L1r/ 5!th"%t the
!nter$ent!"n "4 th!rd prty& It !s the e3!sten9e
"4 the se9"nd e0e/ent, the p"5er "4 9"ntr"0,
tht reB%!res d!s9%ss!"n here&
O4 the 4"%r e0e/ents "4 the e/p0"yer#e/p0"yee
re0t!"nsh!p, the M9"ntr"0 testN !s the /"st
!/p"rtnt& C"/pred t" n e/p0"yee, n
!ndependent 9"ntr9t"r !s "ne 5h" 9rr!es "n
d!st!n9t nd !ndependent b%s!ness nd
%ndert:es t" per4"r/ the C"b, 5"r:, "r ser$!9e
"n !ts "5n 99"%nt nd %nder !ts "5n
resp"ns!b!0!ty 99"rd!n1 t" !ts "5n /nner nd
/eth"d, 4ree 4r"/ the 9"ntr"0 nd d!re9t!"n "4
the pr!n9!p0 !n 00 /tters 9"nne9ted 5!th the
per4"r/n9e "4 the 5"r: e39ept s t" the
res%0ts there"4&;=< Hen9e, 5h!0e n !ndependent
9"ntr9t"r enC"ys !ndependen9e nd 4reed"/
4r"/ the 9"ntr"0 nd s%per$!s!"n "4 h!s
pr!n9!p0, n e/p0"yee !s s%bCe9t t" the
e/p0"yerHs p"5er t" 9"ntr"0 the /ens nd
/eth"ds by 5h!9h the e/p0"yeeHs 5"r: !s t" be
per4"r/ed nd 99"/p0!shed&
In the 9se t br, 0be!t pet!t!"ner Tn 90!/s
tht pr!$te resp"ndent L1r/ 5s n
!ndependent 9"ntr9t"r nd ne$er h!s
e/p0"yee, the e$!den9e sh"5s tht the 0tter
per4"r/ed h!s 5"r: s p!nter %nder the
s%per$!s!"n nd 9"ntr"0 "4 pet!t!"ner& L1r/
5"r:ed !n des!1nted 5"r: re !ns!de the
Cr"5n Theter "4 pet!t!"ner, 4"r the %se "4
5h!9h pet!t!"ner pres9r!bed r%0es& The r%0es
!n90%ded the "bser$n9e "4 90en0!ness nd
hy1!ene nd pr"h!b!t!"n 1!nst %r!nt!n1 !n
the 5"r: re nd ny p09e "ther thn the
t"!0et "r the rest r""/s&;8< Pet!t!"nerHs 9"ntr"0
"$er L1r/Hs 5"r: e3tended n"t "n0y t" the
%se "4 the 5"r: re, b%t 0s" t" the res%0t "4
L1r/Hs 5"r:, nd the /nner nd /ens
by 5h!9h the 5"r: 5s t" be 99"/p0!shed&
M"re"$er, !t 5"%0d pper tht pet!t!"ner n"t
"n0y pr"$!ded the 5"r:p09e, b%t s%pp0!ed s
5e00 the /ter!0s %sed 4"r the p!nt!n1s,
be9%se he d/!tted tht he p!d L1r/
"n0y 4"r the 0tterHs ser$!9es&;(+<
Pr!$te resp"ndent L1r/ 90!/ed tht he
5"r:ed d!0y, 4r"/ = "H90"9: !n the /"rn!n1 t"
7 "H90"9: !n the 4tern""n& Pet!t!"ner d!sp%ted
th!s 00e1t!"n nd /!nt!ned tht he p!d
L1r/ P(,6)7&++ per 5ee: 4"r the /%r0s 4"r
the three theters 5h!9h the 0tter %s%00y
An!shed !n 2 t" 6 dys !n "ne 5ee:&;((< E$en
ss%/!n1 th!s t" be tr%e, the 49t tht L1r/
5"r:ed 4"r t 0est 2 t" 6 dys 5ee: pr"$es
re1%0r!ty !n h!s e/p0"y/ent by pet!t!"ner&
Se9"nd& Tht pet!t!"ner hd the r!1ht t" h!re
nd Are 5s d/!tted by h!/ !n h!s p"s!t!"n
pper s%b/!tted t" the NLRC, the pert!nent
p"rt!"ns "4 5h!9h stted,
C"/p0!nnt d!d n"t :n"5 h"5 t" %se the
$!0b0e 9"/4"rt r""/s "r t"!0ets !n nd b"%t
h!s 5"r: pre/!ses& He 5s %r!nt!n1 r!1ht t
the p09e 5here he 5s 5"r:!n1 5hen !t 5s s"
esy 4"r h!/, s e$eryb"dy e0se d!d nd hd he
"n0y 5nted t", t" 1" t" the 9"/4"rt r""/s&
B%t n", the 9"/p0!nnt hd t" /:e $!rt%0
%r!n0 "%t "4 h!s 5"r: p09e] The p09e then
st%n: t" h!1h he$ens, nt%r00y, t" the
9"nsternt!"n "4 resp"ndents nd e$ery"ne
5h" 9"%0d s/e00 the /0"d"r&
& & &
'!$en s%9h 9!r9%/stn9es, the resp"ndents
hd e$ery r!1ht, ny 00 the 9"/pe00!n1 res"n,
t" Are h!/ 4r"/ h!s p!nt!n1 C"b %p"n d!s9"$ery
nd h!s d/!ss!"n "4 s%9h 9ts& N"nethe0ess,
th"%1h th"r"%1h0y s9"0ded, he 5s n"t Ared& It
5s he 5h" st"pped t" p!nt 4"r resp"ndents&
;(*<
By stt!n1 tht he hd the r!1ht t" Are
L1r/, pet!t!"ner !n eFe9t 9:n"50ed1ed
L1r/ t" be h!s e/p0"yee& F"r the r!1ht t"
h!re nd Are !s n"ther !/p"rtnt e0e/ent "4
the e/p0"yer#e/p0"yee re0t!"nsh!p&;(2<
Indeed, the 49t tht, s pet!t!"ner h!/se04 s!d,
he 5!ted 4"r L1r/ t" rep"rt 4"r 5"r: b%t
the 0tter s!/p0y st"pped rep"rt!n1 4"r 5"r:
re!n4"r9es the 9"n$!9t!"n tht L1r/ 5s
!ndeed n e/p0"yee "4 pet!t!"ner& F"r "n0y n
e/p0"yee 9n n%rt%re s%9h n e3pe9tn9y, the
4r%strt!"n "4 5h!9h, %n0ess st!s49t"r!0y
e3p0!ned, 9n br!n1 b"%t s"/e d!s9!p0!nry
9t!"n "n the prt "4 the e/p0"yer&
Th!rd& Py/ent "4 51es !s "ne "4 the 4"%r
49t"rs t" be 9"ns!dered !n deter/!n!n1 the
e3!sten9e "4 e/p0"yer#e/p0"yee re0t!"n&
I1es re deAned s Mre/%nert!"n "r
ern!n1s, h"5e$er des!1nted, 9pb0e "4
be!n1 e3pressed !n ter/s "4 /"ney, 5hether
A3ed "r s9ert!ned "n t!/e, ts:, p!e9e, "r
9"//!ss!"n bs!s, "r "ther /eth"d "4
909%0t!n1 the s/e, 5h!9h !s pyb0e by n
e/p0"yer t" n e/p0"yee %nder 5r!tten "r
%n5r!tten 9"ntr9t "4 e/p0"y/ent 4"r 5"r:
d"ne "r t" be d"ne, "r 4"r ser$!9es rendered "r
t" be rendered&N;(6< Tht L1r/ 5"r:ed 4"r
Tn "n A3ed p!e9e#5"r: bs!s !s "4 n"
/"/ent& Py/ent by res%0t !s /eth"d "4
9"/penst!"n nd d"es n"t deAne the essen9e
"4 the re0t!"n&;(7< It !s /eth"d "4 9"/p%t!n1
9"/penst!"n, n"t bs!s 4"r deter/!n!n1 the
e3!sten9e "r bsen9e "4 e/p0"yer#e/p0"yee
re0t!"nsh!p& One /y be p!d "n the bs!s "4
res%0ts "r t!/e e3pended "n the 5"r:, nd /y
"r /y n"t 9B%!re n e/p0"y/ent stt%s,
depend!n1 "n 5hether the e0e/ents "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p re present "r
n"t&;(><
The R%0es I/p0e/ent!n1 the Lb"r C"de
reB%!re e$ery e/p0"yer t" py h!s e/p0"yees
by /ens "4 pyr"00&;()< The pyr"00 sh"%0d
sh"5 /"n1 "ther th!n1s, the e/p0"yeeHs rte
"4 py, ded%9t!"ns /de, nd the /"%nt
9t%00y p!d t" the e/p0"yee& In the 9se t
br, pet!t!"ner d!d n"t present the pyr"00 t"
s%pp"rt h!s 90!/ tht L1r/ 5s n"t h!s
e/p0"yee, r!s!n1 spe9%0t!"ns 5hether h!s
4!0%re t" d" s" pr"$es tht !ts presentt!"n
5"%0d be d$erse t" h!s 9se&;(=<
The pr!/ry stndrd 4"r deter/!n!n1 re1%0r
e/p0"y/ent !s the res"nb0e 9"nne9t!"n
bet5een the prt!9%0r 9t!$!ty per4"r/ed by
the e/p0"yee !n re0t!"n t" the %s%0 trde "r
b%s!ness "4 the e/p0"yer&;(8< In th!s 9se,
there !s s%9h 9"nne9t!"n bet5een the C"b "4
L1r/ p!nt!n1 b!00b"rds nd /%r0s nd
the b%s!ness "4 pet!t!"ner& T" 0et the pe"p0e
:n"5 5ht /"$!e 5s t" be sh"5n !n /"$!e
theter reB%!res b!00b"rds& Pet!t!"ner !n 49t
d/!ts tht the b!00b"rds re !/p"rtnt t" h!s
b%s!ness&;*+<
The 49t tht L1r/ 5s n"t rep"rted s n
e/p0"yee t" the SSS !s n"t 9"n90%s!$e "n the
B%est!"n "4 5hether he 5s n e/p0"yee "4
pet!t!"ner&;*(< Other5!se, n e/p0"yer 5"%0d
be re5rded 4"r h!s 4!0%re "r e$en ne10e9t t"
per4"r/ h!s "b0!1t!"n&;**<
Ne!ther d"es the 49t tht L1r/ p!nted 4"r
"ther pers"ns Fe9t "r 0ter h!s e/p0"y/ent
re0t!"nsh!p 5!th pet!t!"ner& Tht he d!d s" "n0y
d%r!n1 5ee:ends hs n"t been den!ed by
pet!t!"ner& On the "ther hnd, S/%e0 V!000b,
4"r 5h"/ L1r/ hd rendered ser$!9e,
d/!tted !n s5"rn stte/ent tht he 5s t"0d
by L1r/ tht the 0tter 5"r:ed 4"r
pet!t!"ner&;*2<
L1r/ hd been e/p0"yed by pet!t!"ner
s!n9e (8==& Under the 05, there4"re, he !s
dee/ed re1%0r e/p0"yee nd !s th%s
ent!t0ed t" se9%r!ty "4 ten%re, s pr"$!ded !n
Art& *)8 "4 Lb"r C"de,
ART& *)8& Se9%r!ty "4 Ten%re& T In 9ses "4
re1%0r e/p0"y/ent, the e/p0"yer sh00 n"t
ter/!nte the ser$!9es "4 n e/p0"yee e39ept
4"r C%st 9%se "r 5hen %th"r!Ded by th!s
T!t0e& An e/p0"yee 5h" !s %nC%st0y d!s/!ssed
4r"/ 5"r: sh00 be ent!t0ed t" re!nstte/ent
5!th"%t 0"ss "4 sen!"r!ty r!1hts nd "ther
pr!$!0e1es nd t" h!s 4%00 b9:51es, !n90%s!$e
"4 00"5n9es, nd t" h!s "ther beneAts "r the!r
/"netry eB%!$0ent 9"/p%ted 4r"/ the t!/e
h!s 9"/penst!"n 5s 5!thhe0d 4r"/ h!/ %p t"
the t!/e "4 h!s 9t%0 re!nstte/ent&
Th!s C"%rt hs he0d tht !4 the e/p0"yee hs
been per4"r/!n1 the C"b 4"r t 0est "ne yer,
e$en !4 n"t 9"nt!n%"%s0y b%t !nter/!ttent0y, the
repeted nd 9"nt!n%!n1 need 4"r !ts
per4"r/n9e !s s%G9!ent e$!den9e "4 the
ne9ess!ty, !4 n"t !nd!spensb!0!ty, "4 tht
9t!$!ty t" the b%s!ness "4 h!s e/p0"yer&
Hen9e, the e/p0"y/ent !s 0s" 9"ns!dered
re1%0r, 0th"%1h 5!th respe9t "n0y t" s%9h
9t!$!ty, nd 5h!0e s%9h 9t!$!ty e3!sts&;*6<
It !s 90!/ed tht L1r/ bnd"ned h!s 5"r:&
There !s n" e$!den9e t" sh"5 th!s&
Abnd"n/ent reB%!res t5" e0e/ents, ?(@ the
4!0%re t" rep"rt 4"r 5"r: "r bsen9e 5!th"%t
$0!d "r C%st!Ab0e res"n, nd ?*@ 90er
!ntent!"n t" se$er the e/p0"yer#e/p0"yee
re0t!"nsh!p, 5!th the se9"nd e0e/ent s the
/"re deter/!nt!$e 49t"r nd be!n1
/n!4ested by s"/e "$ert 9ts&;*7< Mere
bsen9e !s n"t s%G9!ent& Iht !s /"re, the
b%rden !s "n the e/p0"yer t" sh"5 de0!berte
nd %nC%st!Aed re4%s0 "n the prt "4 the
e/p0"yee t" res%/e h!s e/p0"y/ent 5!th"%t
ny !ntent!"n "4 ret%rn!n1&;*>< In the 9se t
br, the C"%rt "4 Appe0s 9"rre9t0y r%0ed,
Ne!ther d" 5e 1ree tht Pet!t!"ner bnd"ned
h!s C"b& In "rder 4"r bnd"n/ent t" be C%st
nd $0!d 1r"%nd 4"r d!s/!ss0, the e/p0"yer
/%st sh"5, by 90er pr""4, the !ntent!"n "4 the
e/p0"yee t" bnd"n h!s C"b& & & &
In the present re9"%rse, the Pr!$te
Resp"ndent hs n"t estb0!shed 90er pr""4 "4
the !ntent!"n "4 the Pet!t!"ner t" bnd"n h!s
C"b "r t" se$er the e/p0"y/ent re0t!"nsh!p
bet5een h!/ nd the Pr!$te Resp"ndent& On
the 9"ntrry, !t 5s Pr!$te Resp"ndent 5h"
t"0d Pet!t!"ner tht he d!d n"t 5nt the 0tter t"
dr5 4"r h!/ nd there4ter re4%sed t" 1!$e h!/
5"r: t" d" "r ny /%r0 "r b!00b"rd t" p!nt "r
dr5 "n&
M"re, 4ter the repeted re4%s0 "4 the Pr!$te
Resp"ndent t" 1!$e Pet!t!"ner /%r0s "r
b!00b"rds t" 5"r: "n, the Pet!t!"ner A0ed, 5!th
the S%b#Re1!"n0 Arb!trt!"n Brn9h N"& R "4
the Nt!"n0 Lb"r Re0t!"ns C"//!ss!"n,
C"/p0!nt 4"r MI00e10 D!s/!ss0 nd M"ney
C0!/s&N S%9h 9t hs, s the S%pre/e C"%rt
de90red, ne1te ny !ntent!"n t" se$er
e/p0"y/ent re0t!"nsh!p& & & &;*)<
II&
The se9"nd !ss%e !s 5hether pr!$te
resp"ndent L1r/ 5s !00e100y d!s/!ssed& T"
be1!n, the e/p0"yer hs the b%rden "4 pr"$!n1
the 054%0ness "4 h!s e/p0"yeeHs d!s/!ss0&;*=<
The $0!d!ty "4 the 9hr1e /%st be 90er0y
estb0!shed !n /nner 9"ns!stent 5!th d%e
pr"9ess& The I/p0e/ent!n1 R%0es "4 the Lb"r
C"de;*8< pr"$!de tht n" 5"r:er sh00 be
d!s/!ssed e39ept 4"r C%st "r %th"r!Ded 9%se
pr"$!ded by 05 nd 4ter d%e pr"9ess& Th!s
pr"$!s!"n hs t5" spe9ts, ?(@ the 0e10!ty "4
the 9t "4 d!s/!ss0, tht !s, d!s/!ss0 %nder the
1r"%nds pr"$!ded 4"r %nder Art!90e *=* "4 the
Lb"r C"de nd ?*@ the 0e10!ty !n the /nner
"4 d!s/!ss0& The !00e10!ty "4 the 9t "4
d!s/!ss0 9"nst!t%tes d!s9hr1e 5!th"%t C%st
9%se, 5h!0e !00e10!ty !n the /nner "4
d!s/!ss0 !s d!s/!ss0 5!th"%t d%e pr"9ess&;2+<
In th!s 9se, by h!s re4%s0 t" 1!$e L1r/
5"r: t" d" nd "rder!n1 L1r/ t" 1et "%t "4
h!s s!1ht s the 0tter tr!ed t" e3p0!n h!s s!de,
pet!t!"ner /de !t p0!n tht L1r/ 5s
d!s/!ssed& Ur!nt!n1 !n 5"r: p09e "ther
thn the "ne des!1nted 4"r the p%rp"se by the
e/p0"yer 9"nst!t%tes $!"0t!"n "4 res"nb0e
re1%0t!"ns !ntended t" pr"/"te he0thy
en$!r"n/ent %nder Art& *=*?(@ "4 the Lb"r
C"de 4"r p%rp"ses "4 ter/!nt!n1 e/p0"y/ent,
b%t the s/e /%st be sh"5n by e$!den9e&
Here there !s n" e$!den9e tht L1r/ d!d
%r!nte !n p09e "ther thn rest r""/ !n the
pre/!ses "4 h!s 5"r:&
Insted "4 "rder!n1 h!s re!nstte/ent s
pr"$!ded !n Art& *)8 "4 the Lb"r C"de, the
Lb"r Arb!ter 4"%nd tht the re0t!"nsh!p
bet5een the e/p0"yer nd the e/p0"yee hs
been s" str!ned tht the 0tterHs re!nstte/ent
5"%0d n" 0"n1er ser$e ny p%rp"se& The prt!es
d" n"t d!sp%te th!s And!n1& Hen9e, the 1rnt "4
seprt!"n py !n 0!e% "4 re!nstte/ent !s
ppr"pr!te& Th!s !s "4 9"%rse !n dd!t!"n t" the
py/ent "4 b9:51es 5h!9h, !n 99"rdn9e
5!th the r%0!n1 !n B%st/nte $& NLRC,;2(<
sh"%0d be 9"/p%ted 4r"/ the t!/e "4
L1r/Hs d!s/!ss0 %p t" the t!/e "4 the
An0!ty "4 th!s de9!s!"n, 5!th"%t ny ded%9t!"n
"r B%0!A9t!"n&
The B%re% "4 I"r:!n1 C"nd!t!"ns;2*< 90ss!Aes
5"r:ers p!d by res%0ts !nt" t5" 1r"%ps,
n/e0yE ?(@ th"se 5h"se t!/e nd per4"r/n9e
!s s%per$!sed by the e/p0"yer, nd ?*@ th"se
5h"se t!/e nd per4"r/n9e !s %ns%per$!sed
by the e/p0"yer& The Arst !n$"0$es n e0e/ent
"4 9"ntr"0 nd s%per$!s!"n "$er the /nner the
5"r: !s t" be per4"r/ed, 5h!0e the se9"nd d"es
n"t& I4 p!e9e 5"r:er !s s%per$!sed, there !s n
e/p0"yer#e/p0"yee re0t!"nsh!p, s !n th!s
9se& H"5e$er, s%9h n e/p0"yee !s n"t
ent!t0ed t" ser$!9e !n9ent!$e 0e$e py s!n9e, s
p"!nted "%t !n M:t! Hberdshery $&
NLRC;22< nd Mr: R"9he Internt!"n0 $&
NLRC,;26< he !s p!d A3ed /"%nt 4"r 5"r:
d"ne, re1rd0ess "4 the t!/e he spent !n
99"/p0!sh!n1 s%9h 5"r:&
IHEREFORE, bsed "n the 4"re1"!n1, the
pet!t!"n !s DENIED 4"r 09: "4 sh"5!n1 tht the
C"%rt "4 Appe0s 9"//!tted ny re$ers!b0e
err"r& The de9!s!"n "4 the C"%rt "4 Appe0s,
re$ers!n1 the de9!s!"n "4 the Nt!"n0 Lb"r
Re0t!"ns C"//!ss!"n nd re!nstt!n1 the
de9!s!"n "4 the Lb"r Arb!ter, !s AFFIRMED 5!th
the MODIFICATION tht the b9:51es nd
"ther beneAts 5rded t" pr!$te resp"ndent
Le"$!1!0d" L1r/ sh"%0d be 9"/p%ted 4r"/
the t!/e "4 h!s d!s/!ss0 %p t" the t!/e "4 the
An0!ty "4 th!s de9!s!"n, 5!th"%t ny ded%9t!"n
nd B%0!A9t!"n& H"5e$er, the ser$!9e
!n9ent!$e 0e$e py 5rded t" h!/ !s
DELETED&
SO ORDERED&
FIRST DIVISION
;'&R& N"& (2=+7(& -%ne (+, *++6<
-OSE Y& SON.A, pet!t!"ner, $s& ABS#CBN
BROADCASTIN' CORPORATION, resp"ndent&
D E C I S I O N
CARPIO, -&,
The Cse
Be4"re th!s C"%rt !s pet!t!"n 4"r re$!e5 "n
9ert!"rr!;(< ss!0!n1 the *> Mr9h (888
De9!s!"n;*< "4 the C"%rt "4 Appe0s !n CA#'&R&
SP N"& 68(8+ d!s/!ss!n1 the pet!t!"n A0ed by
-"se Y& S"nD ?MSON.AN@& The C"%rt "4 Appe0s
Gr/ed the And!n1s "4 the Nt!"n0 Lb"r
Re0t!"ns C"//!ss!"n ?MNLRCN@, 5h!9h Gr/ed
the Lb"r Arb!terHs d!s/!ss0 "4 the 9se 4"r
09: "4 C%r!sd!9t!"n&
The F9ts
In My (886, resp"ndent ABS#CBN
Br"d9st!n1 C"rp"rt!"n ?MABS#CBNN@ s!1ned
n A1ree/ent ?MA1ree/entN@ 5!th the Me0 nd
-y Mn1e/ent nd De$e0"p/ent C"rp"rt!"n
?MM-MDCN@& ABS#CBN 5s represented by !ts
9"rp"rte "G9ers 5h!0e M-MDC 5s
represented by SON.A, s Pres!dent nd
'ener0 Mn1er, nd Cr/e0 T!n19"
?MTIAN'CON@, s EVP nd Tres%rer& Re4erred t"
!n the A1ree/ent s MA'ENT,N M-MDC 1reed
t" pr"$!de SON.AHs ser$!9es e390%s!$e0y t"
ABS#CBN s t0ent 4"r rd!" nd te0e$!s!"n& The
A1ree/ent 0!sted the ser$!9es SON.A 5"%0d
render t" ABS#CBN, s 4"00"5s,
& C"#h"st 4"r Me0 O -y rd!" pr"1r/,
=,++ t" (+,++ &/&, M"ndys t" Fr!dysE
b& C"#h"st 4"r Me0 O -y te0e$!s!"n pr"1r/,
7,2+ t" ),++ p&/&, S%ndys&;2<
ABS#CBN 1reed t" py 4"r SON.AHs ser$!9es
/"nth0y t0ent 4ee "4 P2(+,+++ 4"r the Arst
yer nd P2(),+++ 4"r the se9"nd nd th!rd
yer "4 the A1ree/ent& ABS#CBN 5"%0d py
the t0ent 4ees "n the (+th nd *7th dys "4
the /"nth&
On ( Apr!0 (88>, SON.A 5r"te 0etter t" ABS#
CBNHs Pres!dent, E%1en!" L"peD III, 5h!9h
reds,
Der Mr& L"peD,
Ie 5"%0d 0!:e t" 900 y"%r ttent!"n t" the
A1ree/ent dted My (886 entered !nt" by
y"%r 1""dse04 "n beh04 "4 ABS#CBN 5!th "%r
9"/pny re0t!$e t" "%r t0ent -OSE Y& SON.A&
As y"% re 5e00 5re, Mr& S"nD !rre$"9b0y
res!1ned !n $!e5 "4 re9ent e$ents 9"n9ern!n1
h!s pr"1r/s nd 9reer& Ie 9"ns!der these
9ts "4 the stt!"n $!"0t!$e "4 the A1ree/ent
nd the stt!"n s !n bre9h there"4& In th!s
9"nne9t!"n, 5e hereby ser$e n"t!9e "4
res9!ss!"n "4 s!d A1ree/ent t "%r !nstn9e
eFe9t!$e s "4 dte&
Mr& S"nD !n4"r/ed %s tht he !s 5!$!n1 nd
ren"%n9!n1 re9"$ery "4 the re/!n!n1 /"%nt
st!p%0ted !n pr1rph ) "4 the A1ree/ent b%t
reser$es the r!1ht t" see: re9"$ery "4 the "ther
beneAts %nder s!d A1ree/ent&
Thn: y"% 4"r y"%r ttent!"n&
Very tr%0y y"%rs,
?S1d&@
-OSE Y& SON.A
Pres!dent nd 'en& Mn1er;6<
On 2+ Apr!0 (88>, SON.A A0ed 9"/p0!nt
1!nst ABS#CBN be4"re the Deprt/ent "4
Lb"r nd E/p0"y/ent, Nt!"n0 Cp!t0
Re1!"n !n S%eD"n C!ty& SON.A 9"/p0!ned tht
ABS#CBN d!d n"t py h!s s0r!es, seprt!"n
py, ser$!9e !n9ent!$e 0e$e py, (2th /"nth
py, s!1n!n1 b"n%s, tr$e0 00"5n9e nd
/"%nts d%e %nder the E/p0"yees St"9:
Opt!"n P0n ?MESOPN@&
On (+ -%0y (88>, ABS#CBN A0ed M"t!"n t"
D!s/!ss "n the 1r"%nd tht n" e/p0"yer#
e/p0"yee re0t!"nsh!p e3!sted bet5een the
prt!es& SON.A A0ed n Opp"s!t!"n t" the
/"t!"n "n (8 -%0y (88>&
Men5h!0e, ABS#CBN 9"nt!n%ed t" re/!t
SON.AHs /"nth0y t0ent 4ees thr"%1h h!s
99"%nt t PCIBn:, S%eD"n A$en%e Brn9h,
S%eD"n C!ty& In -%0y (88>, ABS#CBN "pened
ne5 99"%nt 5!th the s/e bn: 5here ABS#
CBN dep"s!ted SON.AHs t0ent 4ees nd "ther
py/ents d%e h!/ %nder the A1ree/ent&
In h!s Order dted * De9e/ber (88>, the Lb"r
Arb!ter;7< den!ed the /"t!"n t" d!s/!ss nd
d!re9ted the prt!es t" A0e the!r respe9t!$e
p"s!t!"n ppers& The Lb"r Arb!ter r%0ed,
In th!s !nstnt 9se, 9"/p0!nnt 4"r h$!n1
!n$":ed 90!/ tht he 5s n e/p0"yee "4
resp"ndent 9"/pny %nt!0 Apr!0 (7, (88> nd
tht he 5s n"t p!d 9ert!n 90!/s, !t !s
s%G9!ent en"%1h s t" 9"n4er C%r!sd!9t!"n "$er
the !nstnt 9se !n th!s OG9e& And s t"
5hether "r n"t s%9h 90!/ 5"%0d ent!t0e
9"/p0!nnt t" re9"$er %p"n the 9%ses "4
9t!"n sserted !s /tter t" be res"0$ed "n0y
4ter nd s res%0t "4 her!n1& Th%s, the
resp"ndentHs p0e "4 09: "4 e/p0"yer#
e/p0"yee re0t!"nsh!p /y be p0eded "n0y s
/tter "4 de4ense& It beh""$es %p"n !t the
d%ty t" pr"$e tht there re00y !s n" e/p0"yer#
e/p0"yee re0t!"nsh!p bet5een !t nd the
9"/p0!nnt&
The Lb"r Arb!ter then 9"ns!dered the 9se
s%b/!tted 4"r res"0%t!"n& The prt!es s%b/!tted
the!r p"s!t!"n ppers "n *6 Febr%ry (88)&
On (( Mr9h (88), SON.A A0ed Rep0y t"
Resp"ndentHs P"s!t!"n Pper 5!th M"t!"n t"
E3p%n1e Resp"ndentHs Anne3 6 nd Anne3 7
4r"/ the Re9"rds& Anne3es 6 nd 7 re
Gd$!ts "4 ABS#CBNHs 5!tnesses S"99"r"
V!dnes nd R"0nd" V& Cr%D& These 5!tnesses
stted !n the!r Gd$!ts tht the pre$!0!n1
pr9t!9e !n the te0e$!s!"n nd br"d9st
!nd%stry !s t" tret t0ents 0!:e SON.A s
!ndependent 9"ntr9t"rs&
The Lb"r Arb!ter rendered h!s De9!s!"n dted
= -%0y (88) d!s/!ss!n1 the 9"/p0!nt 4"r 09: "4
C%r!sd!9t!"n&;>< The pert!nent prts "4 the
de9!s!"n red s 4"00"5s,
3 3 3
Ih!0e Ph!0!pp!ne C%r!spr%den9e hs n"t yet, 5!th
9ert!nty, t"%9hed "n the Mtr%e nt%re "4 the
9"ntr9t "4 t0ent,N !t stnds t" res"n tht
Mt0entN s b"$e#des9r!bed 9nn"t be
9"ns!dered s n e/p0"yee by res"n "4 the
pe9%0!r 9!r9%/stn9es s%rr"%nd!n1 the
en11e/ent "4 h!s ser$!9es&
It /%st be n"ted tht 9"/p0!nnt 5s
en11ed by resp"ndent by res"n "4 h!s
pe9%0!r s:!00s nd t0ent s TV h"st nd
rd!" br"d9ster& Un0!:e n "rd!nry
e/p0"yee, he 5s 4ree t" per4"r/ the ser$!9es
he %ndert"": t" render !n 99"rdn9e 5!th h!s
"5n sty0e& The beneAts 9"n4erred t"
9"/p0!nnt %nder the My (886 A1ree/ent
re 9ert!n0y $ery /%9h h!1her thn th"se
1ener00y 1!$en t" e/p0"yees& F"r "ne,
9"/p0!nnt S"nDHs /"nth0y t0ent 4ees
/"%nt t" st11er!n1 P2(),+++& M"re"$er,
h!s en11e/ent s t0ent 5s 9"$ered by
spe9!A9 9"ntr9t& L!:e5!se, he 5s n"t b"%nd
t" render e!1ht ?=@ h"%rs "4 5"r: per dy s he
5"r:ed "n0y 4"r s%9h n%/ber "4 h"%rs s /y
be ne9essry&
The 49t tht per the My (886 A1ree/ent
9"/p0!nnt 5s 99"rded s"/e beneAts
n"r/00y 1!$en t" n e/p0"yee !s
!n9"nseB%ent!0& Ihte$er beneAts
9"/p0!nnt enC"yed r"se 4r"/ spe9!A9
1ree/ent by the prt!es nd n"t by res"n "4
e/p0"yer#e/p0"yee re0t!"nsh!p& As 9"rre9t0y
p%t by the resp"ndent, MA00 these beneAts re
/ere0y t0ent 4ees nd "ther 9"ntr9t%0
beneAts nd sh"%0d n"t be dee/ed s
^s0r!es, 51es ndK"r "ther re/%nert!"nH
99"rded t" n e/p0"yee, n"t5!thstnd!n1 the
n"/en90t%re ppended t" these beneAts&
Apr"p"s t" th!s !s the r%0e tht the ter/ "r
n"/en90t%re 1!$en t" st!p%0ted beneAt !s
n"t 9"ntr"00!n1, b%t the !ntent "4 the prt!es t"
the A1ree/ent 9"n4err!n1 s%9h beneAt&N
The 49t tht 9"/p0!nnt 5s /de s%bCe9t t"
resp"ndentHs R%0es nd Re1%0t!"ns, 0!:e5!se,
d"es n"t detr9t 4r"/ the bsen9e "4 e/p0"yer#
e/p0"yee re0t!"nsh!p& As he0d by the
S%pre/e C"%rt, MThe 0!ne sh"%0d be dr5n
bet5een r%0es tht /ere0y ser$e s 1%!de0!nes
t"5rds the 9h!e$e/ent "4 the /%t%00y
des!red res%0t 5!th"%t d!9tt!n1 the /ens "r
/eth"ds t" be e/p0"yed !n tt!n!n1 !t, nd
th"se tht 9"ntr"0 "r A3 the /eth"d"0"1y nd
b!nd "r restr!9t the prty h!red t" the %se "4
s%9h /ens& The Arst, 5h!9h !/ "n0y t"
pr"/"te the res%0t, 9rete n" e/p0"yer#
e/p0"yee re0t!"nsh!p %n0!:e the se9"nd, 5h!9h
ddress b"th the res%0t nd the /ens t"
9h!e$e !t&N ?Ins%0r L!4e Ass%rn9e C"&, Ltd& $s&
NLRC, et 0&, '&R& N"& =66=6, N"$e/ber (7,
(8=8@&
3 3 3 ?E/phs!s s%pp0!ed@;)<
SON.A ppe0ed t" the NLRC& On *6 Febr%ry
(88=, the NLRC rendered De9!s!"n Gr/!n1
the Lb"r Arb!terHs de9!s!"n& SON.A A0ed
/"t!"n 4"r re9"ns!dert!"n, 5h!9h the NLRC
den!ed !n !ts Res"0%t!"n dted 2 -%0y (88=&
On > O9t"ber (88=, SON.A A0ed spe9!0 9!$!0
9t!"n 4"r 9ert!"rr! be4"re the C"%rt "4 Appe0s
ss!0!n1 the de9!s!"n nd res"0%t!"n "4 the
NLRC& On *> Mr9h (888, the C"%rt "4 Appe0s
rendered De9!s!"n d!s/!ss!n1 the 9se&;=<
Hen9e, th!s pet!t!"n&
The R%0!n1s "4 the NLRC nd C"%rt "4 Appe0s
The C"%rt "4 Appe0s Gr/ed the NLRCHs
And!n1 tht n" e/p0"yer#e/p0"yee re0t!"nsh!p
e3!sted bet5een SON.A nd ABS#CBN&
Ad"pt!n1 the NLRCHs de9!s!"n, the ppe00te
9"%rt B%"ted the 4"00"5!n1 And!n1s "4 the
NLRC,
3 3 3 the My (886 A1ree/ent 5!00 red!0y
re$e0 tht M-MDC entered !nt" the 9"ntr9t
/ere0y s n 1ent "4 9"/p0!nnt S"nD, the
pr!n9!p0& By 00 !nd!9t!"n nd s the 05 p%ts
!t, the 9t "4 the 1ent !s the 9t "4 the
pr!n9!p0 !tse04& Th!s 49t !s /de prt!9%0r0y
tr%e !n th!s 9se, s d/!tted0y M-MDC ^!s
/n1e/ent 9"/pny de$"ted e390%s!$e0y t"
/n1!n1 the 9reers "4 Mr& S"nD nd h!s
br"d9st prtner, Mrs& Cr/e0 C& T!n19"&H
?Opp"s!t!"n t" M"t!"n t" D!s/!ss@
C0er0y, the re0t!"ns "4 pr!n9!p0 nd 1ent
"n0y 99r%es bet5een 9"/p0!nnt S"nD nd
M-MDC, nd n"t bet5een ABS#CBN nd M-MDC&
Th!s !s 90er 4r"/ the pr"$!s!"ns "4 the My
(886 A1ree/ent 5h!9h spe9!A900y re4erred t"
M-MDC s the ^A'ENTH& As /tter "4 49t,
5hen 9"/p0!nnt here!n %n!0ter00y res9!nded
s!d My (886 A1ree/ent, !t 5s M-MDC 5h!9h
!ss%ed the n"t!9e "4 res9!ss!"n !n beh04 "4 Mr&
S"nD, 5h" h!/se04 s!1ned the s/e !n h!s
9p9!ty s Pres!dent&
M"re"$er, pre$!"%s 9"ntr9ts bet5een Mr&
S"nD nd ABS#CBN re$e0 the 49t tht
h!st"r!900y, the prt!es t" the s!d 1ree/ents
re ABS#CBN nd Mr& S"nD& And !t !s "n0y !n
the My (886 A1ree/ent, 5h!9h !s the 0test
A1ree/ent e3e9%ted bet5een ABS#CBN nd Mr&
S"nD, tht M-MDC A1%red !n the s!d
A1ree/ent s the 1ent "4 Mr& S"nD&
Ie And !t err"ne"%s t" ssert tht M-MDC !s
/ere ^0b"r#"n0yH 9"ntr9t"r "4 ABS#CBN s%9h
tht there e3!st;s< e/p0"yer#e/p0"yee
re0t!"nsh!p bet5een the 0tter nd Mr& S"nD&
On the 9"ntrry, Ie And !t !nd%b!tb0e, tht
M-MDC !s n 1ent, n"t "4 ABS#CBN, b%t "4 the
t0entK9"ntr9t"r Mr& S"nD, s e3press0y
d/!tted by the 0tter nd M-MDC !n the My
(886 A1ree/ent&
It /y n"t be /!ss t" stte tht C%r!sd!9t!"n
"$er the !nstnt 9"ntr"$ersy !ndeed be0"n1s t"
the re1%0r 9"%rts, the s/e be!n1 !n the
nt%re "4 n 9t!"n 4"r 00e1ed bre9h "4
9"ntr9t%0 "b0!1t!"n "n the prt "4
resp"ndent#ppe00ee& As sB%re0y pprent
4r"/ 9"/p0!nnt#ppe00ntHs P"s!t!"n Pper,
h!s 90!/s 4"r 9"/penst!"n 4"r ser$!9es, ^(2th
/"nth pyH, s!1n!n1 b"n%s nd tr$e0
00"5n9e 1!nst resp"ndent#ppe00ee re n"t
bsed "n the Lb"r C"de b%t rther "n the
pr"$!s!"ns "4 the My (886 A1ree/ent, 5h!0e
h!s 90!/s 4"r pr"9eeds %nder St"9: P%r9hse
A1ree/ent re bsed "n the 0tter& A p"rt!"n
"4 the P"s!t!"n Pper "4 9"/p0!nnt#ppe00nt
bers per%s0,
^Under ;the My (886 A1ree/ent< 5!th
resp"ndent ABS#CBN, the 0tter 9"ntr9t%00y
b"%nd !tse04 t" py 9"/p0!nnt s!1n!n1
b"n%s 9"ns!st!n1 "4 shres "4 st"9:s_5!th FIVE
HUNDRED THOUSAND PESOS ?P7++,+++&++@&
S!/!0r0y, 9"/p0!nnt !s 0s" ent!t0ed t" be
p!d (2th /"nth py bsed "n n /"%nt n"t
0"5er thn the /"%nt he 5s re9e!$!n1 pr!"r
t" eFe9t!$!ty "4 ?the@ A1ree/entH&
Under pr1rph 8 "4 ?the My (886
A1ree/ent@, 9"/p0!nnt !s ent!t0ed t"
9"//%tb0e tr$e0 beneAt /"%nt!n1 t" t
0est One H%ndred F!4ty Th"%snd Pes"s
?P(7+,+++&++@ per yer&H
Th%s, !t !s pre9!se0y be9%se "4 9"/p0!nnt#
ppe00ntHs "5n re9"1n!t!"n "4 the 49t tht h!s
9"ntr9t%0 re0t!"ns 5!th ABS#CBN re 4"%nded
"n the Ne5 C!$!0 C"de, rther thn the Lb"r
C"de, tht !nsted "4 /ere0y res!1n!n1 4r"/
ABS#CBN, 9"/p0!nnt#ppe00nt ser$ed %p"n
the 0tter ^n"t!9e "4 res9!ss!"nH "4 A1ree/ent
5!th the stt!"n, per h!s 0etter dted Apr!0 (,
(88>, 5h!9h sserted tht !nsted "4 re4err!n1
t" %np!d e/p0"yee beneAts, ^he !s 5!$!n1
nd ren"%n9!n1 re9"$ery "4 the re/!n!n1
/"%nt st!p%0ted !n pr1rph ) "4 the
A1ree/ent b%t reser$es the r!1ht t" s%9h
re9"$ery "4 the "ther beneAts %nder s!d
A1ree/ent&H ?Anne3 2 "4 the resp"ndent ABS#
CBNHs M"t!"n t" D!s/!ss dted -%0y (+, (88>@&
E$!dent0y, !t !s pre9!se0y by res"n "4 the
00e1ed $!"0t!"n "4 the My (886 A1ree/ent
ndK"r the St"9: P%r9hse A1ree/ent by
resp"ndent#ppe00ee tht 9"/p0!nnt#
ppe00nt A0ed h!s 9"/p0!nt& C"/p0!nnt#
ppe00ntHs 90!/s be!n1 n9h"red "n the
00e1ed bre9h "4 9"ntr9t "n the prt "4
resp"ndent#ppe00ee, the s/e 9n be res"0$ed
by re4eren9e t" 9!$!0 05 nd n"t t" 0b"r 05&
C"nseB%ent0y, they re 5!th!n the re0/ "4 9!$!0
05 nd, th%s, 0!e 5!th the re1%0r 9"%rts& As
he0d !n the 9se "4 D!#Ch! E0e9tr"n!9s
Mn%49t%r!n1 $s& V!00r/, *2= SCRA *>), *(
N"$e/ber (886, n 9t!"n 4"r bre9h "4
9"ntr9t%0 "b0!1t!"n !s !ntr!ns!900y 9!$!0
d!sp%te&;8< ?E/phs!s s%pp0!ed@
The C"%rt "4 Appe0s r%0ed tht the e3!sten9e
"4 n e/p0"yer#e/p0"yee re0t!"nsh!p bet5een
SON.A nd ABS#CBN !s 49t%0 B%est!"n tht
!s 5!th!n the C%r!sd!9t!"n "4 the NLRC t" res"0$e&
;(+< A spe9!0 9!$!0 9t!"n 4"r 9ert!"rr! e3tends
"n0y t" !ss%es "4 5nt "r e39ess "4 C%r!sd!9t!"n
"4 the NLRC&;((< S%9h 9t!"n 9nn"t 9"$er n
!nB%!ry !nt" the 9"rre9tness "4 the e$0%t!"n "4
the e$!den9e 5h!9h ser$ed s bs!s "4 the
NLRCHs 9"n90%s!"n&;(*< The C"%rt "4 Appe0s
dded tht !t 9"%0d n"t re#e3/!ne the prt!esH
e$!den9e nd s%bst!t%te the 49t%0 And!n1s "4
the NLRC 5!th !ts "5n&;(2<
The Iss%e
In ss!0!n1 the de9!s!"n "4 the C"%rt "4
Appe0s, SON.A 9"ntends tht,
THE COURT OF APPEALS 'RAVELY ERRED IN
AFFIRMIN' THE NLRCHS DECISION AND
REFUSIN' TO FIND THAT AN EMPLOYER#
EMPLOYEE RELATIONSHIP ERISTED BETIEEN
SON.A AND ABS#CBN, DESPITE THE IEI'HT
OF CONTROLLIN' LAI, -URISPRUDENCE AND
EVIDENCE TO SUPPORT SUCH A FINDIN'&;(6<
The C"%rtHs R%0!n1
Ie Gr/ the ss!0ed de9!s!"n&
N" 9"n$!n9!n1 res"n e3!sts t" 5rrnt
re$ers0 "4 the de9!s!"n "4 the C"%rt "4 Appe0s
Gr/!n1 the NLRC r%0!n1 5h!9h %phe0d the
Lb"r Arb!terHs d!s/!ss0 "4 the 9se 4"r 09: "4
C%r!sd!9t!"n&
The present 9"ntr"$ersy !s "ne "4 Arst
!/press!"n& A0th"%1h Ph!0!pp!ne 0b"r 05s nd
C%r!spr%den9e deAne 90er0y the e0e/ents "4 n
e/p0"yer#e/p0"yee re0t!"nsh!p, th!s !s the Arst
t!/e tht the C"%rt 5!00 res"0$e the nt%re "4
the re0t!"nsh!p bet5een te0e$!s!"n nd rd!"
stt!"n nd "ne "4 !ts Mt0ents&N There !s n"
9se 05 stt!n1 tht rd!" nd te0e$!s!"n
pr"1r/ h"st !s n e/p0"yee "4 the br"d9st
stt!"n&
The !nstnt 9se !n$"0$es b!1 n/es !n the
br"d9st !nd%stry, n/e0y -"se M-yN S"nD,
:n"5n te0e$!s!"n nd rd!" pers"n0!ty, nd
ABS#CBN, "ne "4 the b!11est te0e$!s!"n nd
rd!" net5"r:s !n the 9"%ntry&
SON.A 9"ntends tht the Lb"r Arb!ter hs
C%r!sd!9t!"n "$er the 9se be9%se he 5s n
e/p0"yee "4 ABS#CBN& On the "ther hnd, ABS#
CBN !ns!sts tht the Lb"r Arb!ter hs n"
C%r!sd!9t!"n be9%se SON.A 5s n
!ndependent 9"ntr9t"r&
E/p0"yee "r Independent C"ntr9t"rZ
The e3!sten9e "4 n e/p0"yer#e/p0"yee
re0t!"nsh!p !s B%est!"n "4 49t& Appe00te
9"%rts 99"rd the 49t%0 And!n1s "4 the Lb"r
Arb!ter nd the NLRC n"t "n0y respe9t b%t 0s"
An0!ty 5hen s%pp"rted by s%bstnt!0
e$!den9e&;(7< S%bstnt!0 e$!den9e /ens
s%9h re0e$nt e$!den9e s res"nb0e /!nd
/!1ht 99ept s deB%te t" s%pp"rt
9"n90%s!"n&;(>< A prty 9nn"t pr"$e the
bsen9e "4 s%bstnt!0 e$!den9e by s!/p0y
p"!nt!n1 "%t tht there !s 9"ntrry e$!den9e "n
re9"rd, d!re9t "r 9!r9%/stnt!0& The C"%rt
d"es n"t s%bst!t%te !ts "5n C%d1/ent 4"r tht "4
the tr!b%n0 !n deter/!n!n1 5here the 5e!1ht "4
e$!den9e 0!es "r 5ht e$!den9e !s 9red!b0e&;()<
SON.A /!nt!ns tht 00 essent!0 e0e/ents "4
n e/p0"yer#e/p0"yee re0t!"nsh!p re present
!n th!s 9se& Cse 05 hs 9"ns!stent0y he0d
tht the e0e/ents "4 n e/p0"yer#e/p0"yee
re0t!"nsh!p re, ?@ the se0e9t!"n nd
en11e/ent "4 the e/p0"yeeE ?b@ the py/ent
"4 51esE ?9@ the p"5er "4 d!s/!ss0E nd ?d@
the e/p0"yerHs p"5er t" 9"ntr"0 the e/p0"yee
"n the /ens nd /eth"ds by 5h!9h the 5"r:
!s 99"/p0!shed&;(=< The 0st e0e/ent, the s"#
900ed M9"ntr"0 testN, !s the /"st !/p"rtnt
e0e/ent&;(8<
A& Se0e9t!"n nd En11e/ent "4 E/p0"yee
ABS#CBN en11ed SON.AHs ser$!9es t" 9"#h"st
!ts te0e$!s!"n nd rd!" pr"1r/s be9%se "4
SON.AHs pe9%0!r s:!00s, t0ent nd 9e0ebr!ty
stt%s& SON.A 9"ntends tht the Md!s9ret!"n
%sed by resp"ndent !n spe9!A900y se0e9t!n1
nd h!r!n1 9"/p0!nnt "$er "ther br"d9sters
"4 p"ss!b0y s!/!0r e3per!en9e nd B%0!A9t!"n
s 9"/p0!nnt be0!es resp"ndentHs 90!/ "4
!ndependent 9"ntr9t"rsh!p&N
Independent 9"ntr9t"rs "4ten present
the/se0$es t" p"ssess %n!B%e s:!00s, e3pert!se
"r t0ent t" d!st!n1%!sh the/ 4r"/ "rd!nry
e/p0"yees& The spe9!A9 se0e9t!"n nd h!r!n1
"4 SON.A, be9%se "4 h!s %n!B%e s:!00s, t0ent
nd 9e0ebr!ty stt%s n"t p"ssessed by "rd!nry
e/p0"yees, !s 9!r9%/stn9e !nd!9t!$e, b%t
n"t 9"n90%s!$e, "4 n !ndependent 9"ntr9t%0
re0t!"nsh!p& I4 SON.A d!d n"t p"ssess s%9h
%n!B%e s:!00s, t0ent nd 9e0ebr!ty stt%s, ABS#
CBN 5"%0d n"t h$e entered !nt" the
A1ree/ent 5!th SON.A b%t 5"%0d h$e h!red
h!/ thr"%1h !ts pers"nne0 deprt/ent C%st 0!:e
ny "ther e/p0"yee&
In ny e$ent, the /eth"d "4 se0e9t!n1 nd
en11!n1 SON.A d"es n"t 9"n90%s!$e0y
deter/!ne h!s stt%s& Ie /%st 9"ns!der 00 the
9!r9%/stn9es "4 the re0t!"nsh!p, 5!th the
9"ntr"0 test be!n1 the /"st !/p"rtnt e0e/ent&
B& Py/ent "4 I1es
ABS#CBN d!re9t0y p!d SON.A h!s /"nth0y
t0ent 4ees 5!th n" prt "4 h!s 4ees 1"!n1 t"
M-MDC& SON.A sserts tht th!s /"de "4 4ee
py/ent sh"5s tht he 5s n e/p0"yee "4
ABS#CBN& SON.A 0s" p"!nts "%t tht ABS#CBN
1rnted h!/ beneAts nd pr!$!0e1es M5h!9h he
5"%0d n"t h$e enC"yed !4 he 5ere tr%0y the
s%bCe9t "4 $0!d C"b 9"ntr9t&N
A00 the t0ent 4ees nd beneAts p!d t" SON.A
5ere the res%0t "4 ne1"t!t!"ns tht 0ed t" the
A1ree/ent& I4 SON.A 5ere ABS#CBNHs
e/p0"yee, there 5"%0d be n" need 4"r the
prt!es t" st!p%0te "n beneAts s%9h s MSSS,
Med!9re, 3 3 3 nd (2th /"nth pyN;*+< 5h!9h
the 05 %t"/t!900y !n9"rp"rtes !nt" e$ery
e/p0"yer#e/p0"yee 9"ntr9t&;*(< Ihte$er
beneAts SON.A enC"yed r"se 4r"/ 9"ntr9t
nd n"t be9%se "4 n e/p0"yer#e/p0"yee
re0t!"nsh!p&;**<
SON.AHs t0ent 4ees, /"%nt!n1 t" P2(),+++
/"nth0y !n the se9"nd nd th!rd yer, re s"
h%1e nd "%t "4 the "rd!nry tht they !nd!9te
/"re n !ndependent 9"ntr9t%0 re0t!"nsh!p
rther thn n e/p0"yer#e/p0"yee
re0t!"nsh!p& ABS#CBN 1reed t" py SON.A
s%9h h%1e t0ent 4ees pre9!se0y be9%se "4
SON.AHs %n!B%e s:!00s, t0ent nd 9e0ebr!ty
stt%s n"t p"ssessed by "rd!nry e/p0"yees&
Ob$!"%s0y, SON.A 9t!n1 0"ne p"ssessed
en"%1h br1!n!n1 p"5er t" de/nd nd
re9e!$e s%9h h%1e t0ent 4ees 4"r h!s ser$!9es&
The p"5er t" br1!n t0ent 4ees 5y b"$e
the s0ry s90es "4 "rd!nry e/p0"yees !s
9!r9%/stn9e !nd!9t!$e, b%t n"t 9"n90%s!$e, "4
n !ndependent 9"ntr9t%0 re0t!"nsh!p&
The py/ent "4 t0ent 4ees d!re9t0y t" SON.A
nd n"t t" M-MDC d"es n"t ne1te the stt%s
"4 SON.A s n !ndependent 9"ntr9t"r& The
prt!es e3press0y 1reed "n s%9h /"de "4
py/ent& Under the A1ree/ent, M-MDC !s the
A'ENT "4 SON.A, t" 5h"/ M-MDC 5"%0d h$e
t" t%rn "$er ny t0ent 4ee 99r%!n1 %nder the
A1ree/ent&
C& P"5er "4 D!s/!ss0
F"r $!"0t!"n "4 ny pr"$!s!"n "4 the A1ree/ent,
e!ther prty /y ter/!nte the!r re0t!"nsh!p&
SON.A 4!0ed t" sh"5 tht ABS#CBN 9"%0d
ter/!nte h!s ser$!9es "n 1r"%nds "ther thn
bre9h "4 9"ntr9t, s%9h s retren9h/ent t"
pre$ent 0"sses s pr"$!ded %nder 0b"r 05s&
;*2<
D%r!n1 the 0!4e "4 the A1ree/ent, ABS#CBN
1reed t" py SON.AHs t0ent 4ees s 0"n1 s
MA'ENT nd -y S"nD sh00 4!th4%00y nd
9"/p0ete0y per4"r/ e9h 9"nd!t!"n "4 th!s
A1ree/ent&N;*6< E$en !4 !t s%Fered se$ere
b%s!ness 0"sses, ABS#CBN 9"%0d n"t retren9h
SON.A be9%se ABS#CBN re/!ned "b0!1ted
t" py SON.AHs t0ent 4ees d%r!n1 the 0!4e "4
the A1ree/ent& Th!s 9!r9%/stn9e !nd!9tes n
!ndependent 9"ntr9t%0 re0t!"nsh!p bet5een
SON.A nd ABS#CBN&
SON.A d/!ts tht e$en 4ter ABS#CBN 9esed
br"d9st!n1 h!s pr"1r/s, ABS#CBN st!00 p!d
h!/ h!s t0ent 4ees& P0!n0y, ABS#CBN dhered
t" !ts %ndert:!n1 !n the A1ree/ent t" 9"nt!n%e
py!n1 SON.AHs t0ent 4ees d%r!n1 the
re/!n!n1 0!4e "4 the A1ree/ent e$en !4 ABS#
CBN 9n9e00ed SON.AHs pr"1r/s thr"%1h n"
4%0t "4 SON.A&;*7<
SON.A ss!0s the Lb"r Arb!terHs
!nterprett!"n "4 h!s res9!ss!"n "4 the
A1ree/ent s n d/!ss!"n tht he !s n"t n
e/p0"yee "4 ABS#CBN& The Lb"r Arb!ter
stted tht M!4 !t 5ere tr%e tht 9"/p0!nnt
5s re00y n e/p0"yee, he 5"%0d /ere0y
res!1n, !nsted&N SON.A d!d 9t%00y res!1n
4r"/ ABS#CBN b%t he 0s", s pres!dent "4
M-MDC, res9!nded the A1ree/ent& SON.AHs
0etter 90er0y bers th!s "%t&;*>< H"5e$er, the
/nner by 5h!9h SON.A ter/!nted h!s
re0t!"nsh!p 5!th ABS#CBN !s !//ter!0&
Ihether SON.A res9!nded the A1ree/ent "r
res!1ned 4r"/ 5"r: d"es n"t deter/!ne h!s
stt%s s e/p0"yee "r !ndependent 9"ntr9t"r&
D& P"5er "4 C"ntr"0
S!n9e there !s n" 0"90 pre9edent "n 5hether
rd!" nd te0e$!s!"n pr"1r/ h"st !s n
e/p0"yee "r n !ndependent 9"ntr9t"r, 5e
re4er t" 4"re!1n 9se 05 !n n0yD!n1 the
present 9se& The Un!ted Sttes C"%rt "4
Appe0s, F!rst C!r9%!t, re9ent0y he0d !n A0berty#
V`0eD $& C"rp"r9!an De P%ert" R!9" Pr L
D!4%s!an Pbb0!9 ?MIIPRN@;*)< tht te0e$!s!"n
pr"1r/ h"st !s n !ndependent 9"ntr9t"r& Ie
B%"te the 4"00"5!n1 And!n1s "4 the U&S& 9"%rt,
Se$er0 49t"rs 4$"r 90ss!4y!n1 A0berty s n
!ndependent 9"ntr9t"r& F!rst, te0e$!s!"n
9tress !s s:!00ed p"s!t!"n reB%!r!n1 t0ent nd
tr!n!n1 n"t $!0b0e "n#the#C"b& 3 3 3 In th!s
re1rd, A0berty p"ssesses /sterHs de1ree !n
p%b0!9 9"//%n!9t!"ns nd C"%rn0!s/E !s
tr!ned !n dn9e, s!n1!n1, nd /"de0!n1E t%1ht
5!th the dr/ deprt/ent t the Un!$ers!ty "4
P%ert" R!9"E nd 9ted !n se$er0 theter nd
te0e$!s!"n pr"d%9t!"ns pr!"r t" her G0!t!"n
5!th MDesde M! P%eb0"&N Se9"nd, A0berty
pr"$!ded the Mt""0s nd !nstr%/ent0!t!esN
ne9essry 4"r her t" per4"r/& Spe9!A900y, she
pr"$!ded, "r "bt!ned sp"ns"rs t" pr"$!de, the
9"st%/es, Ce5e0ry, nd "ther !/1e#re0ted
s%pp0!es nd ser$!9es ne9essry 4"r her
ppern9e& A0berty d!sp%tes tht th!s 49t"r
4$"rs !ndependent 9"ntr9t"r stt%s be9%se
IIPR pr"$!ded the MeB%!p/ent ne9essry t"
tpe the sh"5&N A0bertyHs r1%/ent !s
/!sp09ed& The eB%!p/ent ne9essry 4"r
A0berty t" 9"nd%9t her C"b s h"st "4 MDesde M!
P%eb0"N re0ted t" her ppern9e "n the sh"5&
Others pr"$!ded eB%!p/ent 4"r A0/!n1 nd
pr"d%9!n1 the sh"5, b%t these 5ere n"t the
pr!/ry t""0s tht A0berty %sed t" per4"r/ her
prt!9%0r 4%n9t!"n& I4 5e 99epted th!s
r1%/ent, !ndependent 9"ntr9t"rs 9"%0d
ne$er 5"r: "n 9"00b"rt!$e pr"Ce9ts be9%se
"ther !nd!$!d%0s "4ten pr"$!de the eB%!p/ent
reB%!red 4"r d!Ferent spe9ts "4 the
9"00b"rt!"n& 3 3 3
Th!rd, IIPR 9"%0d n"t ss!1n A0berty 5"r: !n
dd!t!"n t" A0/!n1 MDesde M! P%eb0"&N
A0bertyHs 9"ntr9ts 5!th IIPR spe9!A900y
pr"$!ded tht IIPR h!red her Mpr"4ess!"n0
ser$!9es s H"stess 4"r the Pr"1r/ Desde M!
P%eb0"&N There !s n" e$!den9e tht IIPR
ss!1ned A0berty ts:s !n dd!t!"n t" 5"r:
re0ted t" these tp!n1s& 3 3 3;*=< ?E/phs!s
s%pp0!ed@
App0y!n1 the 9"ntr"0 test t" the present 9se,
5e And tht SON.A !s n"t n e/p0"yee b%t n
!ndependent 9"ntr9t"r& The 9"ntr"0 test !s the
/"st !/p"rtnt test "%r 9"%rts pp0y !n
d!st!n1%!sh!n1 n e/p0"yee 4r"/ n
!ndependent 9"ntr9t"r&;*8< Th!s test !s bsed
"n the e3tent "4 9"ntr"0 the h!rer e3er9!ses "$er
5"r:er& The 1reter the s%per$!s!"n nd
9"ntr"0 the h!rer e3er9!ses, the /"re 0!:e0y the
5"r:er !s dee/ed n e/p0"yee& The 9"n$erse
h"0ds tr%e s 5e00 J the 0ess 9"ntr"0 the h!rer
e3er9!ses, the /"re 0!:e0y the 5"r:er !s
9"ns!dered n !ndependent 9"ntr9t"r&;2+<
F!rst, SON.A 9"ntends tht ABS#CBN e3er9!sed
9"ntr"0 "$er the /ens nd /eth"ds "4 h!s
5"r:&
SON.AHs r1%/ent !s /!sp09ed& ABS#CBN
en11ed SON.AHs ser$!9es spe9!A900y t" 9"#
h"st the MMe0 O -yN pr"1r/s& ABS#CBN d!d
n"t ss!1n ny "ther 5"r: t" SON.A& T"
per4"r/ h!s 5"r:, SON.A "n0y needed h!s s:!00s
nd t0ent& H"5 SON.A de0!$ered h!s 0!nes,
ppered "n te0e$!s!"n, nd s"%nded "n rd!"
5ere "%ts!de ABS#CBNHs 9"ntr"0& SON.A d!d
n"t h$e t" render e!1ht h"%rs "4 5"r: per dy&
The A1ree/ent reB%!red SON.A t" ttend "n0y
rehers0s nd tp!n1s "4 the sh"5s, s 5e00 s
pre# nd p"st#pr"d%9t!"n stF /eet!n1s&;2(<
ABS#CBN 9"%0d n"t d!9tte the 9"ntents "4
SON.AHs s9r!pt& H"5e$er, the A1ree/ent
pr"h!b!ted SON.A 4r"/ 9r!t!9!D!n1 !n h!s sh"5s
ABS#CBN "r !ts !nterests&;2*< The 90er
!/p0!9t!"n !s tht SON.A hd 4ree hnd "n
5ht t" sy "r d!s9%ss !n h!s sh"5s pr"$!ded he
d!d n"t tt9: ABS#CBN "r !ts !nterests&
Ie And tht ABS#CBN 5s n"t !n$"0$ed !n the
9t%0 per4"r/n9e tht pr"d%9ed the An!shed
pr"d%9t "4 SON.AHs 5"r:&;22< ABS#CBN d!d n"t
!nstr%9t SON.A h"5 t" per4"r/ h!s C"b& ABS#
CBN /ere0y reser$ed the r!1ht t" /"d!4y the
pr"1r/ 4"r/t nd !rt!/e s9hed%0e M4"r /"re
eFe9t!$e pr"1r//!n1&N;26< ABS#CBNHs s"0e
9"n9ern 5s the B%0!ty "4 the sh"5s nd the!r
stnd!n1 !n the rt!n1s& C0er0y, ABS#CBN d!d
n"t e3er9!se 9"ntr"0 "$er the /ens nd
/eth"ds "4 per4"r/n9e "4 SON.AHs 5"r:&
SON.A 90!/s tht ABS#CBNHs p"5er n"t t"
br"d9st h!s sh"5s pr"$es ABS#CBNHs p"5er
"$er the /ens nd /eth"ds "4 the
per4"r/n9e "4 h!s 5"r:& A0th"%1h ABS#CBN
d!d h$e the "pt!"n n"t t" br"d9st SON.AHs
sh"5, ABS#CBN 5s st!00 "b0!1ted t" py
SON.AHs t0ent 4ees& Th%s, e$en !4 ABS#CBN
5s 9"/p0ete0y d!sst!sAed 5!th the /ens
nd /eth"ds "4 SON.AHs per4"r/n9e "4 h!s
5"r:, "r e$en 5!th the B%0!ty "r pr"d%9t "4 h!s
5"r:, ABS#CBN 9"%0d n"t d!s/!ss "r e$en
d!s9!p0!ne SON.A& A00 tht ABS#CBN 9"%0d d" !s
n"t t" br"d9st SON.AHs sh"5 b%t ABS#CBN
/%st st!00 py h!s t0ent 4ees !n 4%00&;27<
C0er0y, ABS#CBNHs r!1ht n"t t" br"d9st
SON.AHs sh"5, b%rdened s !t 5s by the
"b0!1t!"n t" 9"nt!n%e py!n1 !n 4%00 SON.AHs
t0ent 4ees, d!d n"t /"%nt t" 9"ntr"0 "$er the
/ens nd /eth"ds "4 the per4"r/n9e "4
SON.AHs 5"r:& ABS#CBN 9"%0d n"t ter/!nte
"r d!s9!p0!ne SON.A e$en !4 the /ens nd
/eth"ds "4 per4"r/n9e "4 h!s 5"r: # h"5 he
de0!$ered h!s 0!nes nd ppered "n te0e$!s!"n #
d!d n"t /eet ABS#CBNHs ppr"$0& Th!s pr"$es
tht ABS#CBNHs 9"ntr"0 5s 0!/!ted "n0y t" the
res%0t "4 SON.AHs 5"r:, 5hether t" br"d9st
the An0 pr"d%9t "r n"t& In e!ther 9se, ABS#
CBN /%st st!00 py SON.AHs t0ent 4ees !n 4%00
%nt!0 the e3p!ry "4 the A1ree/ent&
In V%1hn, et 0& $& Irner, et 0&,;2>< the
Un!ted Sttes C!r9%!t C"%rt "4 Appe0s r%0ed
tht $%de$!00e per4"r/ers 5ere !ndependent
9"ntr9t"rs 0th"%1h the /n1e/ent
reser$ed the r!1ht t" de0ete "bCe9t!"nb0e
4et%res !n the!r sh"5s& S!n9e the /n1e/ent
d!d n"t h$e 9"ntr"0 "$er the /nner "4
per4"r/n9e "4 the s:!00s "4 the rt!sts, !t 9"%0d
"n0y 9"ntr"0 the res%0t "4 the 5"r: by de0et!n1
"bCe9t!"nb0e 4et%res&;2)<
SON.A 4%rther 9"ntends tht ABS#CBN
e3er9!sed 9"ntr"0 "$er h!s 5"r: by s%pp0y!n1 00
eB%!p/ent nd 9re5& N" d"%bt, ABS#CBN
s%pp0!ed the eB%!p/ent, 9re5 nd !rt!/e
needed t" br"d9st the MMe0 O -yN pr"1r/s&
H"5e$er, the eB%!p/ent, 9re5 nd !rt!/e re
n"t the Mt""0s nd !nstr%/ent0!t!esN SON.A
needed t" per4"r/ h!s C"b& Iht SON.A
pr!n9!p00y needed 5ere h!s t0ent "r s:!00s nd
the 9"st%/es ne9essry 4"r h!s ppern9e&
;2=< E$en th"%1h ABS#CBN pr"$!ded SON.A
5!th the p09e "4 5"r: nd the ne9essry
eB%!p/ent, SON.A 5s st!00 n !ndependent
9"ntr9t"r s!n9e ABS#CBN d!d n"t s%per$!se
nd 9"ntr"0 h!s 5"r:& ABS#CBNHs s"0e 9"n9ern
5s 4"r SON.A t" d!sp0y h!s t0ent d%r!n1 the
!r!n1 "4 the pr"1r/s&;28<
A rd!" br"d9st spe9!0!st 5h" 5"r:s %nder
/!n!/0 s%per$!s!"n !s n !ndependent
9"ntr9t"r&;6+< SON.AHs 5"r: s te0e$!s!"n nd
rd!" pr"1r/ h"st reB%!red spe9!0 s:!00s nd
t0ent, 5h!9h SON.A d/!tted0y p"ssesses&
The re9"rds d" n"t sh"5 tht ABS#CBN
e3er9!sed ny s%per$!s!"n nd 9"ntr"0 "$er h"5
SON.A %t!0!Ded h!s s:!00s nd t0ent !n h!s
sh"5s&
Se9"nd, SON.A %r1es %s t" r%0e tht he 5s
ABS#CBNHs e/p0"yee be9%se ABS#CBN
s%bCe9ted h!/ t" !ts r%0es nd stndrds "4
per4"r/n9e& SON.A 90!/s tht th!s !nd!9tes
ABS#CBNHs 9"ntr"0 Mn"t "n0y ;"$er< h!s /nner
"4 5"r: b%t 0s" the B%0!ty "4 h!s 5"r:&N
The A1ree/ent st!p%0tes tht SON.A sh00
b!de 5!th the r%0es nd stndrds "4
per4"r/n9e M9"$er!n1 t0entsN;6(< "4 ABS#
CBN& The A1ree/ent d"es n"t reB%!re SON.A
t" 9"/p0y 5!th the r%0es nd stndrds "4
per4"r/n9e pres9r!bed 4"r e/p0"yees "4 ABS#
CBN& The 9"de "4 9"nd%9t !/p"sed "n SON.A
%nder the A1ree/ent re4ers t" the MTe0e$!s!"n
nd Rd!" C"de "4 the Up!snn n1 /1
Br"d9ster s P!0!p!ns ?UBP@, 5h!9h hs been
d"pted by the COMPANY ?ABS#CBN@ s !ts
C"de "4 Eth!9s&N;6*< The UBP 9"de pp0!es t"
br"d9sters, n"t t" e/p0"yees "4 rd!" nd
te0e$!s!"n stt!"ns& Br"d9sters re n"t
ne9essr!0y e/p0"yees "4 rd!" nd te0e$!s!"n
stt!"ns& C0er0y, the r%0es nd stndrds "4
per4"r/n9e re4erred t" !n the A1ree/ent re
th"se pp0!9b0e t" t0ents nd n"t t"
e/p0"yees "4 ABS#CBN&
In ny e$ent, n"t 00 r%0es !/p"sed by the
h!r!n1 prty "n the h!red prty !nd!9te tht the
0tter !s n e/p0"yee "4 the 4"r/er&;62< In th!s
9se, SON.A 4!0ed t" sh"5 tht these r%0es
9"ntr"00ed h!s per4"r/n9e& Ie And tht these
1ener0 r%0es re /ere0y 1%!de0!nes t"5rds the
9h!e$e/ent "4 the /%t%00y des!red res%0t,
5h!9h re t"p#rt!n1 te0e$!s!"n nd rd!"
pr"1r/s tht 9"/p0y 5!th stndrds "4 the
!nd%stry& Ie h$e r%0ed tht,
F%rther, n"t e$ery 4"r/ "4 9"ntr"0 tht prty
reser$es t" h!/se04 "$er the 9"nd%9t "4 the
"ther prty !n re0t!"n t" the ser$!9es be!n1
rendered /y be 99"rded the eFe9t "4
estb0!sh!n1 n e/p0"yer#e/p0"yee
re0t!"nsh!p& The 49ts "4 th!s 9se 400 sB%re0y
5!th the 9se "4 Ins%0r L!4e Ass%rn9e C"&, Ltd&
$s& NLRC& In s!d 9se, 5e he0d tht,
L"1!900y, the 0!ne sh"%0d be dr5n bet5een
r%0es tht /ere0y ser$e s 1%!de0!nes t"5rds
the 9h!e$e/ent "4 the /%t%00y des!red res%0t
5!th"%t d!9tt!n1 the /ens "r /eth"ds t" be
e/p0"yed !n tt!n!n1 !t, nd th"se tht 9"ntr"0
"r A3 the /eth"d"0"1y nd b!nd "r restr!9t the
prty h!red t" the %se "4 s%9h /ens& The Arst,
5h!9h !/ "n0y t" pr"/"te the res%0t, 9rete n"
e/p0"yer#e/p0"yee re0t!"nsh!p %n0!:e the
se9"nd, 5h!9h ddress b"th the res%0t nd the
/ens %sed t" 9h!e$e !t&;66<
The V%1hn 9se 0s" he0d tht "ne 9"%0d st!00
be n !ndependent 9"ntr9t"r 0th"%1h the
h!rer reser$ed 9ert!n s%per$!s!"n t" !ns%re the
tt!n/ent "4 the des!red res%0t& The h!rer,
h"5e$er, /%st n"t depr!$e the "ne h!red 4r"/
per4"r/!n1 h!s ser$!9es 99"rd!n1 t" h!s "5n
!n!t!t!$e&;67<
Lst0y, SON.A !ns!sts tht the Me390%s!$!ty
90%seN !n the A1ree/ent !s the /"st e3tre/e
4"r/ "4 9"ntr"0 5h!9h ABS#CBN e3er9!sed "$er
h!/&
Th!s r1%/ent !s 4%t!0e& Be!n1 n e390%s!$e
t0ent d"es n"t by !tse04 /en tht SON.A !s n
e/p0"yee "4 ABS#CBN& E$en n !ndependent
9"ntr9t"r 9n $0!d0y pr"$!de h!s ser$!9es
e390%s!$e0y t" the h!r!n1 prty& In the br"d9st
!nd%stry, e390%s!$!ty !s n"t ne9essr!0y the
s/e s 9"ntr"0&
The h!r!n1 "4 e390%s!$e t0ents !s 5!despred
nd 99epted pr9t!9e !n the entert!n/ent
!nd%stry&;6>< Th!s pr9t!9e !s n"t des!1ned t"
9"ntr"0 the /ens nd /eth"ds "4 5"r: "4 the
t0ent, b%t s!/p0y t" pr"te9t the !n$est/ent "4
the br"d9st stt!"n& The br"d9st stt!"n
n"r/00y spends s%bstnt!0 /"%nts "4
/"ney, t!/e nd eF"rt M!n b%!0d!n1 %p !ts
t0ents s 5e00 s the pr"1r/s they pper !n
nd th%s e3pe9ts tht s!d t0ents re/!n
e390%s!$e 5!th the stt!"n 4"r 9"//ens%rte
per!"d "4 t!/e&N;6)< N"r/00y, /%9h h!1her
4ee !s p!d t" t0ents 5h" 1ree t" 5"r:
e390%s!$e0y 4"r prt!9%0r rd!" "r te0e$!s!"n
stt!"n& In sh"rt, the h%1e t0ent 4ees prt!00y
9"/penstes 4"r e390%s!$!ty, s !n the present
9se&
M-MDC s A1ent "4 SON.A
SON.A pr"tests the Lb"r Arb!terHs And!n1 tht
he !s t0ent "4 M-MDC, 5h!9h 9"ntr9ted "%t
h!s ser$!9es t" ABS#CBN& The Lb"r Arb!ter
r%0ed tht s t0ent "4 M-MDC, SON.A !s n"t
n e/p0"yee "4 ABS#CBN& SON.A !ns!sts tht
M-MDC !s M0b"r#"n0yN 9"ntr9t"r nd ABS#
CBN !s h!s e/p0"yer&
In 0b"r#"n0y 9"ntr9t, there re three prt!es
!n$"0$ed, ?(@ the M0b"r#"n0yN 9"ntr9t"rE ?*@
the e/p0"yee 5h" !s "stens!b0y %nder the
e/p0"y "4 the M0b"r#"n0yN 9"ntr9t"rE nd ?2@
the pr!n9!p0 5h" !s dee/ed the re0 e/p0"yer&
Under th!s s9he/e, the M0b"r#"n0yN 9"ntr9t"r
!s the 1ent "4 the pr!n9!p0& The 05 /:es
the pr!n9!p0 resp"ns!b0e t" the e/p0"yees "4
the M0b"r#"n0y 9"ntr9t"rN s !4 the pr!n9!p0
!tse04 d!re9t0y h!red "r e/p0"yed the
e/p0"yees&;6=< These 9!r9%/stn9es re n"t
present !n th!s 9se&
There re essent!00y "n0y t5" prt!es !n$"0$ed
%nder the A1ree/ent, n/e0y, SON.A nd
ABS#CBN& M-MDC /ere0y 9ted s SON.AHs
1ent& The A1ree/ent e3press0y sttes tht
M-MDC 9ted s the MA'ENTN "4 SON.A& The
re9"rds d" n"t sh"5 tht M-MDC 9ted s ABS#
CBNHs 1ent& M-MDC, 5h!9h stnds 4"r Me0 nd
-y Mn1e/ent nd De$e0"p/ent
C"rp"rt!"n, !s 9"rp"rt!"n "r1n!Ded nd
"5ned by SON.A nd TIAN'CO& The Pres!dent
nd 'ener0 Mn1er "4 M-MDC !s SON.A
h!/se04& It !s bs%rd t" h"0d tht M-MDC, 5h!9h
!s "5ned, 9"ntr"00ed, heded nd /n1ed by
SON.A, 9ted s 1ent "4 ABS#CBN !n enter!n1
!nt" the A1ree/ent 5!th SON.A, 5h" h!/se04 !s
represented by M-MDC& Tht 5"%0d /:e
M-MDC the 1ent "4 b"th ABS#CBN nd SON.A&
As SON.A d/!ts, M-MDC !s /n1e/ent
9"/pny de$"ted e390%s!$e0y t" /n1!n1 the
9reers "4 SON.A nd h!s br"d9st prtner,
TIAN'CO& M-MDC !s n"t en11ed !n ny "ther
b%s!ness, n"t e$en C"b 9"ntr9t!n1& M-MDC
d"es n"t h$e ny "ther 4%n9t!"n prt 4r"/
9t!n1 s 1ent "4 SON.A "r TIAN'CO t"
pr"/"te the!r 9reers !n the br"d9st nd
te0e$!s!"n !nd%stry&;68<
P"0!9y Instr%9t!"n N"& 6+
SON.A r1%es tht P"0!9y Instr%9t!"n N"& 6+
!ss%ed by then M!n!ster "4 Lb"r B0s Op0e "n =
-n%ry (8)8 An00y sett0ed the stt%s "4
5"r:ers !n the br"d9st !nd%stry& Under th!s
p"0!9y, the types "4 e/p0"yees !n the br"d9st
!nd%stry re the stt!"n nd pr"1r/
e/p0"yees&
P"0!9y Instr%9t!"n N"& 6+ !s /ere e3e9%t!$e
!ss%n9e 5h!9h d"es n"t h$e the 4"r9e nd
eFe9t "4 05& There !s n" 0e10 pres%/pt!"n
tht P"0!9y Instr%9t!"n N"& 6+ deter/!nes
SON.AHs stt%s& A /ere e3e9%t!$e !ss%n9e
9nn"t e390%de !ndependent 9"ntr9t"rs 4r"/
the 90ss "4 ser$!9e pr"$!ders t" the br"d9st
!nd%stry& The 90ss!A9t!"n "4 5"r:ers !n the
br"d9st !nd%stry !nt" "n0y t5" 1r"%ps %nder
P"0!9y Instr%9t!"n N"& 6+ !s n"t b!nd!n1 "n th!s
C"%rt, espe9!00y 5hen the 90ss!A9t!"n hs n"
bs!s e!ther !n 05 "r !n 49t&
AGd$!ts "4 ABS#CBNHs I!tnesses
SON.A 0s" 4%0ts the Lb"r Arb!ter 4"r
d/!tt!n1 the Gd$!ts "4 S"9"rr" V!dnes nd
R"0nd" Cr%D 5!th"%t 1!$!n1 h!s 9"%nse0 the
"pp"rt%n!ty t" 9r"ss#e3/!ne these 5!tnesses&
SON.A brnds these 5!tnesses s !n9"/petent
t" ttest "n the pre$!0!n1 pr9t!9e !n the rd!"
nd te0e$!s!"n !nd%stry& SON.A $!e5s the
Gd$!ts "4 these 5!tnesses s /!s0ed!n1 nd
!rre0e$nt&
Ih!0e SON.A 4!0ed t" 9r"ss#e3/!ne ABS#
CBNHs 5!tnesses, he 5s ne$er pre$ented 4r"/
deny!n1 "r re4%t!n1 the 00e1t!"ns !n the
Gd$!ts& The Lb"r Arb!ter hs the d!s9ret!"n
5hether t" 9"nd%9t 4"r/0 ?tr!0#type@
her!n1 4ter the s%b/!ss!"n "4 the p"s!t!"n
ppers "4 the prt!es, th%s,
Se9t!"n 2& S%b/!ss!"n "4 P"s!t!"n
PpersKMe/"rnd%/
3 3 3
These $er!Aed p"s!t!"n ppers sh00 9"$er "n0y
th"se 90!/s nd 9%ses "4 9t!"n r!sed !n the
9"/p0!nt e390%d!n1 th"se tht /y h$e been
/!9b0y sett0ed, nd sh00 be 99"/pn!ed by
00 s%pp"rt!n1 d"9%/ents !n90%d!n1 the
Gd$!ts "4 the!r respe9t!$e 5!tnesses 5h!9h
sh00 t:e the p09e "4 the 0tterHs d!re9t
test!/"ny& 3 3 3
Se9t!"n 6& Deter/!nt!"n "4 Ne9ess!ty "4
Her!n1& J I//ed!te0y 4ter the s%b/!ss!"n "4
the prt!es "4 the!r p"s!t!"n
ppersK/e/"rnd%/, the Lb"r Arb!ter sh00
/"t% pr"p!" deter/!ne 5hether there !s need
4"r 4"r/0 tr!0 "r her!n1& At th!s st1e, he
/y, t h!s d!s9ret!"n nd 4"r the p%rp"se "4
/:!n1 s%9h deter/!nt!"n, s: 90r!A9t"ry
B%est!"ns t" 4%rther e0!9!t 49ts "r !n4"r/t!"n,
!n90%d!n1 b%t n"t 0!/!ted t" the s%bp"en "4
re0e$nt d"9%/entry e$!den9e, !4 ny 4r"/
ny prty "r 5!tness&;7+<
The Lb"r Arb!ter 9n de9!de 9se bsed
s"0e0y "n the p"s!t!"n ppers nd the
s%pp"rt!n1 d"9%/ents 5!th"%t 4"r/0 tr!0&
;7(< The h"0d!n1 "4 4"r/0 her!n1 "r tr!0 !s
s"/eth!n1 tht the prt!es 9nn"t de/nd s
/tter "4 r!1ht&;7*< I4 the Lb"r Arb!ter !s
9"nAdent tht he 9n re0y "n the d"9%/ents
be4"re h!/, he 9nn"t be 4%0ted 4"r n"t
9"nd%9t!n1 4"r/0 tr!0, %n0ess %nder the
prt!9%0r 9!r9%/stn9es "4 the 9se, the
d"9%/ents 0"ne re !ns%G9!ent& The
pr"9eed!n1s be4"re Lb"r Arb!ter re n"n#
0!t!1!"%s !n nt%re& S%bCe9t t" the reB%!re/ents
"4 d%e pr"9ess, the te9hn!90!t!es "4 05 nd
the r%0es "bt!n!n1 !n the 9"%rts "4 05 d" n"t
str!9t0y pp0y !n pr"9eed!n1s be4"re Lb"r
Arb!ter&
T0ents s Independent C"ntr9t"rs
ABS#CBN 90!/s tht there e3!sts pre$!0!n1
pr9t!9e !n the br"d9st nd entert!n/ent
!nd%str!es t" tret t0ents 0!:e SON.A s
!ndependent 9"ntr9t"rs& SON.A r1%es tht !4
s%9h pr9t!9e e3!sts, !t !s $"!d 4"r $!"0t!n1 the
r!1ht "4 0b"r t" se9%r!ty "4 ten%re&
The r!1ht "4 0b"r t" se9%r!ty "4 ten%re s
1%rnteed !n the C"nst!t%t!"n;72< r!ses "n0y
!4 there !s n e/p0"yer#e/p0"yee re0t!"nsh!p
%nder 0b"r 05s& N"t e$ery per4"r/n9e "4
ser$!9es 4"r 4ee 9retes n e/p0"yer#
e/p0"yee re0t!"nsh!p& T" h"0d tht e$ery
pers"n 5h" renders ser$!9es t" n"ther 4"r
4ee !s n e/p0"yee # t" 1!$e /en!n1 t" the
se9%r!ty "4 ten%re 90%se # 5!00 0ed t" bs%rd
res%0ts&
Ind!$!d%0s 5!th spe9!0 s:!00s, e3pert!se "r
t0ent enC"y the 4reed"/ t" "Fer the!r ser$!9es
s !ndependent 9"ntr9t"rs& The r!1ht t" 0!4e
nd 0!$e0!h""d 1%rntees th!s 4reed"/ t"
9"ntr9t s !ndependent 9"ntr9t"rs& The r!1ht
"4 0b"r t" se9%r!ty "4 ten%re 9nn"t "perte t"
depr!$e n !nd!$!d%0, p"ssessed 5!th spe9!0
s:!00s, e3pert!se nd t0ent, "4 h!s r!1ht t"
9"ntr9t s n !ndependent 9"ntr9t"r& An
!nd!$!d%0 0!:e n rt!st "r t0ent hs r!1ht t"
render h!s ser$!9es 5!th"%t ny "ne 9"ntr"00!n1
the /ens nd /eth"ds by 5h!9h he per4"r/s
h!s rt "r 9r4t& Th!s C"%rt 5!00 n"t !nterpret the
r!1ht "4 0b"r t" se9%r!ty "4 ten%re t" 9"/pe0
rt!sts nd t0ents t" render the!r ser$!9es "n0y
s e/p0"yees& I4 rd!" nd te0e$!s!"n pr"1r/
h"sts 9n render the!r ser$!9es "n0y s
e/p0"yees, the stt!"n "5ners nd /n1ers
9n d!9tte t" the rd!" nd te0e$!s!"n h"sts
5ht they sy !n the!r sh"5s& Th!s !s n"t
9"nd%9!$e t" 4reed"/ "4 the press&
D!Ferent T3 Tret/ent "4 T0ents nd
Br"d9sters
The Nt!"n0 Intern0 Re$en%e C"de ?MNIRCN@
;76< !n re0t!"n t" Rep%b0!9 A9t N"& ))(>,;77< s
/ended by Rep%b0!9 A9t N"& =*6(,;7>< trets
t0ents, te0e$!s!"n nd rd!" br"d9sters
d!Ferent0y& Under the NIRC, these pr"4ess!"n0s
re s%bCe9t t" the (+Y $0%e#dded t3 ?MVATN@
"n ser$!9es they render& E3e/pted 4r"/ the
VAT re th"se %nder n e/p0"yer#e/p0"yee
re0t!"nsh!p&;7)< Th!s d!Ferent t3 tret/ent
99"rded t" t0ents nd br"d9sters b"0ters
"%r 9"n90%s!"n tht they re !ndependent
9"ntr9t"rs, pr"$!ded 00 the bs!9 e0e/ents "4
9"ntr9t%0 re0t!"nsh!p re present s !n th!s
9se&
Nt%re "4 SON.AHs C0!/s
SON.A see:s the re9"$ery "4 00e1ed0y %np!d
t0ent 4ees, (2th /"nth py, seprt!"n py,
ser$!9e !n9ent!$e 0e$e, s!1n!n1 b"n%s, tr$e0
00"5n9e, nd /"%nts d%e %nder the
E/p0"yee St"9: Opt!"n P0n& Ie 1ree 5!th the
And!n1s "4 the Lb"r Arb!ter nd the C"%rt "4
Appe0s tht SON.AHs 90!/s re 00 bsed "n
the My (886 A1ree/ent nd st"9: "pt!"n
p0n, nd n"t "n the Lb"r C"de& C0er0y, the
present 9se d"es n"t 900 4"r n pp0!9t!"n "4
the Lb"r C"de pr"$!s!"ns b%t n !nterprett!"n
nd !/p0e/entt!"n "4 the My (886
A1ree/ent& In eFe9t, SON.AHs 9%se "4 9t!"n
!s 4"r bre9h "4 9"ntr9t 5h!9h !s !ntr!ns!900y
9!$!0 d!sp%te 9"1n!Db0e by the re1%0r 9"%rts&
;7=<
IHEREFORE, 5e DENY the pet!t!"n& The
ss!0ed De9!s!"n "4 the C"%rt "4 Appe0s dted
*> Mr9h (888 !n CA#'&R& SP N"& 68(8+ !s
AFFIRMED& C"sts 1!nst pet!t!"ner&
SO ORDERED&