Sonza v.

ABS-CBN

FACTS

In May 1994, ABS-CBN signed an Agreement with the Mel and Jay Management and Development
Corporation (MJMDC). ABS-CBN was represented by its corporate officers while MJMDC was
represented by Sonza, as President and General Manager, and Carmela Tiangco (Mel), as EVP and
Treasurer.
o Referred to in the Agreement as agent, MJMDC agreed to provide SONZAs services
exclusively to ABS-CBN as talent for radio and television.
o Under such contract, Sonza was to Co-host the Mel and Jay program for radio and television
receiving an amount of 310K a month for the first year and 317k for the second and third. In
1996, Sonza sent a letter to ABS- CBN rescinding the contract.
Later on, Sonza filed a complaint before DOLA. He complained that ABS-CBN did not pay his salaries,
separation pay, service incentive leave pay, 13th month pay, signing bonus, travel allowance and
amounts due under the Employees Stock Option Plan.
o LA: dismissed the complaint for lack of jurisdiction on the ground that no employer-employee
relationship existed between Sonza and ABS-CBN.
o NLRC and CA: affirmed the decision on appeal.

ISSUE + RULING
Is Sonza an employee of ABS-CBN entitling him the benefits granted under the labor code? NO.
Case law has consistently held that the elements of an employer - employee relationship are: (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. The last element, the so-called control test, is the most important element.
Selection and engagement of employee
o Independent contractors often present themselves to possess unique skills, expertise or talent
to distinguish them from ordinary employees. The specific selection and hiring of SONZA,
because of his unique skills, talent and celebrity status not possessed by ordinary employees, is
a circumstance indicative, but not conclusive, of an independent contractual relationship.
o If SONZA did not possess such unique skills, talent and celebrity status, ABS-CBN would not
have entered into the Agreement with SONZA but would have hired him through its personnel
department just like any other employee.
Payment of wages
o All the talent fees and benefits paid to SONZA were the result of negotiations that led to the
Agreement. If SONZA were ABS-CBNs employee, there would be no need for the parties to
stipulate on benefits such as SSS, Medicare, 13th month pay etc., which the law
automatically incorporates into every employer- employee contract. Whatever benefits SONZA
enjoyed arose from contract and not because of an employer- employee relationship.
Power of Dismissal
o Even if ABS-CBN suffered severe business losses, ABS-CBN could not retrench SONZA
because ABS-CBN remained obligated to pay SONZAs talent fees during the life of the
Agreement. This circumstance indicates an independent contractual relationship between
SONZA and ABS-CBN.
Control
o In Alberty Vlez v. Corporacin De Puerto Rico Para La Difusin Pblica (WIPR) the US CA
held that a television program host is an independent contractor on the ff. grounds: First, a
television actress is a skilled position requiring talent and training not available on-the-job.
Second, Alberty (talent) provided the tools and instrumentalities necessary for her to perform.
Third, WIPR could not assign Alberty work in addition to filming Desde Mi Pueblo. Albertys
contracts with WIPR specifically provided that WIPR hired her professional services as
Hostess for the Program Desde Mi Pueblo.
In this case, ABS-CBN did not assign any other work to Sonza. To perform his work, SONZA only
needed his skills and talent.
o How SONZA delivered his lines, appeared on television, and sounded on radio were outside
 ABS-CBNs control.
o Second, although ABS-CBN has the power to not broadcast the programs of Sonza, this does
not mean it has power to over the means and methods over Sonzas work since its still bound
to pay Sonza by virtue of the contract between them and that although ABS-CBN has rules and
regulations regarding its talents, the Agreement does not require SONZA to comply with the
rules and standards of performance prescribed for employees of ABS-CBN.