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ESPIRITU
Dec. 3, 2014 | Leonen, J. | Legitimate contracting or
subcontracting: 4 Conditions; Fixed-term employees v
Independent Contractors v. Regular employees
Digester: Santiago, Senando Angelo
SUMMARY: Fuji Television Network hired Arlene Espiritu as a
news correspondent/producer to report Philippine news to Japan,
with her contract renewed annually. However, when she got
diagnosed with lung cancer, she informs Fuji, who then disclosed
that they will have a hard time renewing the contract, considering
her situation. Both parties sign a contract for non-renewal, which
stipulates that she would not renew and that she would receive
$18,050 as compensation for services, etc. Arlene filed a complaint
against Fuji for illegally dismissing her. SC decides in her favor.
DOCTRINE: It is the burden of the employer to prove that a
person whose services it pays for is an independent contractor
rather than a regular employee with or without a fixed term. That
a person has a disease does not per se entitle the employer to
terminate his or her services. Termination is the last resort. At the
very least, a competent public health authority must certify that
the disease cannot be cured within 6 months, even with
appropriate treatment.
FACTS (Skip? Go to second issue. Maam wants to focus on
that.):
2005: Petitioner Fuji Television Network, Inc. engaged Arlene
S. Espiritu as a news correspondent/producer to report
Philippine news to Fuji through its Manila Bureau field office.
Her contract, initially good for 1 year, was renewed annually
with salary adjustment.
January 2009: Arlene is diagnosed with lung cancer.
o She informs Fuji, and the chief of News Agency told
her that the company will have a hard time
renewing her contract since it would be difficult for
her to perform her job, even if her physician certifies
that she is still fit for work.
2009, May 5: Both Arlene and Fuji sign a non-renewal
contract, which stipulates that her contract will no longer be
renewed after its expiration on May 31, 2009. It also provided
that the parties release each other from liabilities and
responsibilities under the contract.
o In consideration of the contract, she acknowledges
receiving $18,050:
test
(a) the selection and engagement of the employee;
(b) the payment of wages;
(c) the power of dismissal; and
(d) the employers power to control the
employee on the means and methods by which
the work is accomplished.
If this control test is satisfied, then the
person is an employee; else, independent
contractor.
Stringer: news correspondent who is retained on a part-time
basis to report on events in a particular place.
Labayog v. MY San Biscuits: fixed-term contracts valid as the
employees knew they were being hired as mixers, packers, and
machine operators only for a specific period.
Caparoso v. Court of Appeals: fixed-term contracts upheld the
validity of the fixed-term contract of employment. Caparoso
and Quindipan claimed they were dismissed illegally but there