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LABOR RELATIONS – Atty. Cesar Santamaria Provided, that any employee who has rendered
at least one year of service, whether such
service is continuous or broken, shall be
Lesson plan for 30/1/2018 – 06/02/2018 considered as regular employee with respect to
the activity in which he is employed and his
ART. 294 – SECURITY OF TENURE employment shall continue such activity exists.
XPN: 1Employment has been fixed for a LA upheld the CBA which required seventeen
specific project or undertaking the completion (17) months of employment with the
or termination of which has been determined condition that employee must have attained
at the time of the engagement of the employee the grade acceptable for employment. Due to
OR 2where the work or service to be the service of employment of one year of
performed to be performed is seasonal in Fadriquela however, she is entitled to one
nature and the employment is for the duration month compensation.
of the season. CA:
An employment shall be deemed to be casual CBA does not apply to contractual employees
if it is not covered by the preceding paragraph. and thus not binding upon Fadriquela.
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SECURITY OF TENURE; INTENTION Also, the CBA is not binding upon contractual
Intention of Art. 280 is enacted to secure employees since it explicitly does not recognize
tenurial right of employees in their profession such party within the agreement. Therefore, it
and prevent employers of making permanent is only rational that they could not be affected
casuals by renewal or extension of contracts. and prejudiced by such agreement.
ISSUE:
NATURE OF WORK NOT CONTRACT renewal contract when they were informed of
DETERMINES EMPLOYMENT; her illness.
BADGE OF REGULARITY
ISSUE:
It is the nature of the work and not of the WON Espiritu is a regular employee and
written contract that determines status of illegally dismissed.
employment. Performing services necessary
and indispensable to LUTORCO serve as RULING:
badges of regular employment. While it is HAVING A FIXED TERM CONTRACT
merely seasonal, the Court in a litany of cases DOES NOT PRECLUDE REGULARITY
detracts from this view and upholds the IN EMPLOYMENT
tenurial security of workers.
It was determined that Espiritu is performing
Different and wrong reliance on the case of activities that was necessary and indispensable
Mercado v. NLRC that employs worker on to the business of the employer. Further, they
projects which are distinct and identifiable also exercised control with regard to her
with each other and its beginning and end is employment such as reporting time,
determined/determinable. equipment furnished, etc. – compare with
Sonza v. ABS-CBN
4. Fuji Television Network v. Arlene Espiritu As such, the Non-Renewal clause is indicative
FACTS: of constructive dismissal since what is
prescribed in the Labor Code is only for just
Arlene Espiritu is engaged to Fuji TV Network and authorized causes wherein the disease in
as a news correspondent producer to report this regard requires that it be incurable within
Philippine news. The initial employment was six (6) months and that it be certified by a
up to one year which renewed yearly with public health official.
adjustments regarding to her wages and other
benefits.
Espiritu is diagnosed with lung cancer to 5. ABS-CBN Broadcasting Corp. v. Nazareno
which Fuji is informed of. The company thru
FACTS:
Yoshiki Aoki stated that it would not renew
the contract in light of her condition in spite Nazareno and co. are employed by ABS as
of the fact that Espiritu’s doctor declared her production assistants. Required to work eight
fit to work. hours a day including Sundays and holidays.
Petitioner and responded signed a non-renewal Under the control and supervision of Asst.
contract to which she acknowledged the Manager Luzon. ABS Union executed a CBA
receipt of the total amount of salary, year-end excluding production assistants.
bonus, mid-year bonus, and separation pay. It Nazareno and co. belong to a “work pool” and
was signed under protest. thus are regular employees. ABS meanwhile
Espiritu filed for illegal dismissal with NLRC avers that production assistants are “program
which elaborated that Fuji withheld her salary employees” that are issued information sheets
and benefits and was forced to sign the non-
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that would determine the programs that they employees engaged with the company for the
will assist. entire year.
ISSUE:
ISSUE: WON Acibo and co. are regular employees
and entitled to benefits under the CBA (YES)
WON Nazareno and co. are regular
employees. (YES) RULING:
LA dismissed petition for lack of merit while What is significant discussion in the instant
NLRC reversed the ruling stating that the case is that the Supreme Court noted that the
methods of SMC is denounced in the policy of characteristics of contract of adhesion does
the State in labor. not conform to the requirements of the Brent
ruling since the nature of the contract itself
ISSUE: does not permit equal negotiation of between
WON de Guzman is a fixed term employer and employee and the only action
employee. (YES) permissible to the latter is his acquiescence.
RULING:
11. Bustamante v. NLRC
FIXED TERM EMPLOYEE DUE TO
NATURE OF WORK NOT FITTING IN FACTS:
REGULAR EMPLOYMENT; PRE-
DETERMINED DURATION OF WORK Evergreen Farms is engaged in the business of
De Guzman is not necessary and desirable in producing high grade bananas in Davao del
the nature of the business which concerns Norte with petitioners Bustamante and co. as
itself with the manufacturing of glass bottles. its employees for over six (6) months.
Bustamante was dismissed on account of poor
Further, the duration of the undertaking is performance due to old age.
explicitly determined or determinable thus NLRC rendered decision that stated
rendering the ratio of de Guzman untenable. employees were regular workers and entitled to
backwages. On the secondary resolution
however, NLRC deleted award of backwages
10. Rowell Industrial Corp. v. NLRC as it ratiocinated that the dismissal was not
attended by bad faith and that the dismissal
FACTS: was due to the wrongful interpretation of the
Taripe is employed as a power press operator law.
in the company’s business which mainly ISSUES:
concerns itself with the production of
rectangular tin cans in which regular WON Bustamante, as a regular employee,
employees are also employed. is entitled to backwages? (YES)
Respondent filed for regularization and RULING:
indemnity for his severed finger which was
affirmed by both the LA and NLRC. REHIRING EMPLOYEES WITHOUT
CONSIDERATION THAT THEY ARE
ISSUES: REGULAR EMPLOYEES
WON Taripe is a regular employee (YES) CONSTITUTES BAD FAITH SINCE
THEY ARE NOT ENJOYING RIGHTS
RULING: AND PRIVILIGES THEY ARE
ENTITLED TO
CONTRACT OF ADHESION
Having determined that the nature of their
PRESUMPTION THAT
work is necessary and desirable in their
EMPLOYMENT DOES NOT ADHERE
business, the deletion of backwages was
TO BRENT
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improper and constitutes bad faith since the of their business. As such they are entitled to
continuous rehiring of the employees without their backwages which is subject to
treating them as regular employees, subjecting determination since they are piece-rate workers
them to the whims and control of the wherein their pay is concomitant with their
employer without the necessary rights and production. Mode of compensation does not
benefits constitutes backwages to which they generally determine nature of employment but
are rightfully entitled thereto. may be helpful in establishing control which is
indicative of regular employment.
FACTS: FACTS:
Petitioners are employees of Empire Foods Lambo and Belocura are employed by J.C.
Inc. wherein Labor Congress is their Tailor Shop as tailors.
bargaining representative. They are paid on a piece-rate basis and are
Petitioners filed for money claims given a daily pay of sixty-four (64) pesos.
Empire Foods and LC reached an agreement Lambo and co. sought regularization and filed
stating that: LCP is the sole bargaining a complaint for illegal dismissal.
representative of the employees; adjustment of LA found that petitioners were illegally
wages of employees; deduction of union dues dismissed but the NLRC reversed the ruling
to the payroll. which stated that Bustamante and co. are
The Union filed a complaint against the responsible since they threatened during a
company for unfair labor practices which negotiation that if they were not to be paid
constitutes illegal lockout and dismissal, union they salaries in minimum wage, they would
busting, violation of MOA, among other walk out. The majority voted in favor of the
things. piece-rate basis which prompted petitioners to
LA ruled in favor of the company but ordered abandon their work, NLRC claims.
reinstatement of those who were illegally ISSUES:
dismissed. The same was remanded to LA
upon appeal to NLRC. WON petitioners are regular employees.
LA’s ruling which was later affirmed (YES)
concluded that employees are piece rate
RULING:
workers who were not underpaid and that
were no unfair labor practices instituted by the CONTROL ESTABLISHES STATUS OF
company. EMPLOYMENT NOT MODE OF
COMPENSATION
ISSUES:
As can be gleaned from the facts of the case,
WON employees are regular employees the SC noted that was is the determining factor
and are entitled to benefits. (YES) is the right to control of the employer over the
employee. It can be seen that employees are
RULING: made to report on various days and time which
They are regular workers in the sense that their establishes the means of how the end will be
work is necessary and desirable in the nature sought by the employee. Mode of
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Not all quitclaims are invalid or against public 15. Equipment Technical Services v. NLRC
policy, except however when it is clearly
FACTS:
wangled from an unsuspecting or gullible
person or such price is unconscionable on ETS is engaged in the business of plumbing
their face. during pre-construction phases and its client is
Uniwide Corp. with an ongoing construction
14. ALU-TUCP v. NLRC project: Coastal Mall.
FACTS: Uniwide Corp failed to meet its obligation to
pay ETS thus the latter resorted to only paying
Petitioners are employed as regular project its employees their 13th month pay equivalent
employees by the National Steel Corporation to two weeks salary.
due to the Five Year Expansion Program of Aggrieved, employees filed a complaint which
the company. was followed by another due to refusal to
Duration of the employment was pre- work in another construction project
determined at the provision “as long as the project (Richville).
activity exists” ETS claims that they are project employees,
LA rendered decision in favor of company and which were hired on a per project basis,
classified them as project employees wherein it employees refused to sign employment
was also affirmed by the NLRC but set aside contracts in order to formalize previous
the awarding of benefits that is only accorded agreement which led to denial of employment.
to regular employees. LA ruled in favor of employees which was
ISSUES: overturned by the NLRC.
ISSUES:
WON petitioners are regular employees of
the NSC. (NO) WON aggrieved workers are regular
RULING: employees. (YES)
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Furthermore, the absence of reports to the WON workers are regular employees.
proper government agency of the termination (YES)
of the project constitutes willful intent to RULING:
circumvent the policy and the law.
REASONABLE CONNECTION TEST
APPLIED IN ASCERTAINING
16. FVR Skills and Service v. NLRC NECESSARY AND DESIRABLE TEST
Reasonable necessity is the test to be applied
FACTS: in determining whether the nature of the
FVR Skills and Services is engaged in the employment of the worker is necessary or
business of providing janitorial and sanitary desirable in the business even if it be separate
services wherein it has in its employ the or distinct from the primary industry the
twenty-eight (28) worker-respondents. company is engaged in.
FVR executed a service agreement with
Notwithstanding such application, employees
Robinson’s Ermita wherein it shall extend
have already become by virtue of being
janitorial and sanitary services until Dec 31,
employed for over one (1) year by FVR
2008.
continuously in the same nature of work.
FVR asked petitioners to execute individual
VOIDABLE CONTRACTS;
contracts which stipulated that their contract
CONTRACTS REGARDING PROJECT
will end on Dec 31, 2008 unless earlier
EMPLOYMENT EXECUTED BEFORE
terminated.
ENGAGING IN WORK
FVR and Robinson’s did not extend their
For project employment to prosper instead of
contract prompting the former to dismiss the
regular employment, what is determinative is
employees as they were dubbed as project
that the contract is executed before the time of
employees wherein their employment hinges
engagement since it indicates that the duration
upon the service contract with Robinson’s.
has been determined by both contracting
Workers filed complaint for illegal dismissal parties. Such practice is denounced.
stating that they must only be dismissed upon
finding of just and authorized causes.
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Respondent-employees work for the Lao Failure to present report that will comply with
Group of Companies which comprises of D.O. Policy Instruction No. 20 is indicative
Tomas Lao Corp (TLC), Thomas & James that the workers are indeed regular employees.
Developers (TJD), and LVM Construction (needs elucidation)
(LVM) which is engaged in the construction of
public works such as bridges and highways.
The members within the conglomerate 20. ABESCO v. Ramirez
executed joint-venture agreements that would
enable them to lease services or utilities to FACTS:
each other. This enabled them to freely
ABESCO is engaged in the business of
transfer and order their respective workers to
construction wherein it employed Ramirez and
another group’s project.
co. as its employees as laborers, painters,
Due to a joint venture agreement between drivers, etc.
LVM and TJD, employees were ordered to
Respondents filed complaint for illegal
execute contracts that are issued on July 1989
dismissal while ABESCO avers that they are
but antedated on January 1989.
project employees wherein they belong to a
Such contract states that the employees are workpool and their employment coterminous
mere project employees and their employment to the project to which they were assigned.
would terminate upon the expiration of the
LA and NLRC ruled in favor of workers. CA
contract period. To ensure compliance, the
ruled also in the affirmative claiming that the
director ordered the withholding of salaries.
duration of which the workers are employed is
LA ruled that employees are project employees indicative of the regular employment of the
but were however overturned by the NLRC employees.
stating that the aggrieved employees who did
not sign the contract were regular employees ISSUES:
that are illegally dismissed.
WON Ramirez and co. are regular
ISSUES: employees. (YES)
WON respondents are regular employees.
(YES)
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RULING:
22. Raycor Aircontrol Systems v. San Pedro
23. Macarthur Malicdem v. Marulas Industrial
24. Caramol v. NLRC
25. Price v. Innodata Phils
26. Olongapo Maintenance v. Chantengco
27. PNOC-EDC v. NLRC
28. Fegurin v. NLRC
29. PNOC-EDC v. NLRC
30. Maraguinot, Jr. v. NLRC
31. D.M. Consunji Construction v. Bello
32. Millenium Erectors Corp. v. Magallanes
33. Caseres v. URSUMCO
34. Hanjin Construction v. Ibañez