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Philippine National Oil Company- Energy Development Corporation vs Leogardo

Facts:

The petitioner, PNOC-EDC is a subsidiary of Philippine National Oil Company.


The private respondent, Vicente Ellelina was an employee of the petitioner. During their
Christmas Party, Ellelina allegedly committed a crime of Alarm or Public Scandal when
he tried to grab the armalite rifle of the PC Officer because the raffle committee refused
to give him the prize corresponding to his lost ticket.
Petitioner filed with the Ministry of Labor and Employment a clearance application to
dismiss/terminate services of private respondent Ellelina.
Clearance to dismiss was initially granted by MOLE but was subsequently revoked and
the petitioner was ordered to reinstate Ellelina to his former position without loss of
seniority rights. The decision was later affirmed by the Minister of Labor (public
respondent).
The petitioner contended that the Ministry of Labor and Employment has no jurisdiction
over petitioner because it is a GOCC. Thus, Civil Service should take cognizance of the
case.

Issue:
Does the Ministry of Labor and Employment have jurisdiction over the cases involving
employees of Government subsidiaries?
Held:
Yes.
Under the present state of law, the test in determining whether a GOCC is subject to Civil
Service Law is the manner of its creation such as government corporations created by special
charter are subject to its provisions while those incorporated under general Corporation Law are
not within its coverage.
In NASECO vs NLRC, the Court ruled that NLRC has jurisdiction over the employees of
NASECO being a corporation without an original charter; the employees of NASECO are subject
to the provision of LC.
We hold therefore, that the PNOC-EDC having been incorporated under general
Corporation Law, is a GOCC whose employees are subject to the provisions of the LC. This is
apparently the intendment of NASECO case notwithstanding the fact that the NASECO are
therein was a subsidiary of the PNB, a government-owned corporation.