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Table of Contents

THE APPLICABLE LAWS................................................................................................................ 1


GENERAL PRINCIPLES.................................................................................................................. 1
1. Singer Sewing Machine vs. NLRC, 19 SCRA !"1.................................................................1
!. Mani#a G$#% C#&' vs. IAC, !" SCRA !("...............................................................................1
. Enc)c#$*e+ia Bri,anica vs. NLRC, !-. SCRA . /199-0..........................................................!
.. Car&ngc$ng vs. S&n#i%e, !1 SCRA 19................................................................................
2. Ra3$s vs CA, 1( SCRA .-"...............................................................................................
-. S$n4a vs. ABS5CBN, G.R. N$. 11(21, 6&ne 1(, !((.............................................................
". La4ar$ vs. S$cia# Sec&ri,) C$33issi$n, .2 SCRA ."! /!((.0............................................2
1. Phi#. G#$'a# C$33&nica,i$ns v. 7e 8era, .29 SCRA !-( /!((20..........................................-
9. ABS5CBN vs. Na4aren$, G.R. N$. 1-.12-, Se*,. !-, !((-....................................................-
1(. 9rancisc$ vs. NLRC, 2(( SCRA -9( /!((-0......................................................................... "
11. N$ga#es e,. a#., vs. Ca*i,$# Me+ica# Cen,er e, a#., G.R. N$. 1.!-!2, 7ece3'er 19, !((-...1
1!. C$ca5C$#a B$,,#ers Phi#s., vs. 7r. C#i3ac$, G.R. N$. 1.-111, 9e'r&ar) 12, !(("................9
1. C$ns$#i+a,e+ Br$a+cas,ing S)s,e3 vs. :'eri$, G.R. N$. 1-1.!., 6&ne 1, !(("...............1(
1.. 7&3*i,5M$ri##$ vs. CA, G.R. N$. 1-.-2!, 6&ne 1, !((", ci,ing !((. S$n4a.......................11
12. L$*e4 vs. B$+ega Ci,), G.R. N$. 122"1, Se*,. , !((", ci,ing !((. A'an,e ; !((2
C$ns&#,a................................................................................................................................. 1!
1-. Ca#a3'a Me+ica# Cen,er vs. NLRC e, a#., G.R. N$. 1"-.1., N$v. !2, !((1......................1
1". Escasinas e, a#., vs. Shangri5#as Mac,an Is#an+ Res$r, e, a#., G.R. N$. 1"11!", March .,
!((9...................................................................................................................................... 1.
11. T$ng<$ v. Man&%ac,&rer Li%e Ins&rance C$. =MAN>LI9E? Inc., e, a#., G.R. N$ 1-"-!!,
6an&ar) !2, !(11................................................................................................................... 1-
19. Ca$ng, 6r. v. Beg&a#$s, G.R. N$. 1"9.!1, 6an&ar) !-, !(11..............................................11
!(. A,$< Big We+ge C$3*an) vs. Gis$n, G.R. N$. 1-921(, A&g&s, 1, !(11..........................19
!1. Se3'#an,e vs. CA, G.R. N$. 19-.!-, A&g&s, 12, !(11.....................................................!(
!!. Bernar,e vs. Phi#. Bas<e,'a## Ass$c., G.R. N$. 19!(1., Se*,e3'er 1., !(11...................!1
!. Liri$ vs. Gen$via, G.R. N$. 1-9"2", N$ve3'er !, !(11.................................................!
!.. 6a$ vs. BCC Pr$+&c, Sa#es Inc., G.R. N$. 1-"((, A*ri# 11, !(1!......................................!2
RIGHT T: SEC>RIT@ :9 TEN>RE............................................................................................... !-
1. AL>5T>CP vs. NLRC, !. SCRA -"1 /199.0.........................................................................!-
!. C$s3$s B$,,#ing C$r*., vs NLRC, !22 SCRA 21 /199-0.....................................................!-
. P&re%$$+s v. NLRC !1 SCRA 1- /199"0...........................................................................!"
.. Phi#. 9r&i, an+ 8ege,a'#e In+&s,ries v. NLRC, 1( SCRA -1( /19990...................................!9
2. Phi#i*s Se3ic$n+&c,$r vs. 9ar+iA&e#a, G.R. N$. 1.1"1", A*ri# 1., !((..............................(
-. A#cira vs. NLRC, G.R. N$. 1.9129, 6&ne 9, !((..................................................................1
". Mi,s&'ishi M$,$rs Phi#s. vs. Chr)s#er Phi# La'$r >ni$n, G.R. N$. 1.1"1, 6&ne !9, !((.....!
1. Pangi#inan vs. Genera# Mi##ing C$., G.R. N$. 1.9!9, 6&#) !, !((.......................................
9. Ravag$ vs. Ess$ Eas,ern Marine L,+., G.R. N$. 121!., March 1., !((2............................
1(. Hacien+a Bin$BH$r,encia S,ar< vs. C&enca, G.R. N$. 12(."1, A*ri# 12, !((2, ci,ing !((
Hacien+a 9a,i3a.................................................................................................................... -
11. Phi# G#$'a# C$33&nica,i$n v. 7e 8era, G.R. N$. 12"!1., 6&ne ", !((2...........................-
1!. In,egra,e+ C$n,rac,$r an+ P#&3'ing W$r<s, Inc. vs. Na,i$na# La'$r Re#a,i$ns C$33issi$n
an+ G#en S$#$n, G.R. N$. 12!.!". A&g&s, 9, !((2.................................................................9
1. Lac&es,a vs. A,ene$ +e Mani#a, G.R. N$. 12!""", 7ece3'er 9, !((2..............................1
1.. P$sei+$n 9ishingBTerr) 7e 6es&s v. NLRC, G.R. N$. 1-1(2!, 9e'r&ar) !(. !((-.................!
12. A'esc$ C$ns,r&c,i$n vs. Ra3ire4, G.R. N$. 1.11-1, A*ri# 1(, !((-..................................
1-. Ce'& Me,a# C$r*., vs. Sa#i#ing, G.R. N$. 12..-, Se*,e3'er 2, !((-................................
1". Ligan4a v. RBL Shi*)ar+ C$r*., G.R. N$. 129-1!, :c,$'er 1", !((-.................................2
11. 9a'e4a v. San Mig&e# C$r*., G.R. N$. 12(-21, 9e'r&ar) 9, !(("......................................-
19. S$rian$ vs. NLRC, G.R. N$. 1-229., A*ri# !, !((", ci,ing !((2 9i#i*ina Pre5%a'rica,e+
B#+g. S)s,e3 =9i#is)s,e3?....................................................................................................... ."
!(. Caseres vs. >niversa# R$'ina S&gar Mi##ing C$r*., e, a#., G.R. N$. 129., Se*,e3'er !1,
!(("...................................................................................................................................... .1
!1. Pier 1 Arras,re ; S,eve+$ring Services, Inc. vs B$c#$,, G.R. N$. 1"1.9, Se*,e3'er !1,
!(("...................................................................................................................................... 2(
!!. PacA&ing vs. C$ca5C$#a B$,,#ers Phi#s., Inc., G.R. N$. 12"9--, 6an&ar) 1, !((1, ci,ing
Magsa#in vs. Na,i$na# :rgani4a,i$n $% W$r<ing3en, G.R. N$. 1.1.9!, Ma) 9, !((..............2
!. C$c$3angas H$,e# Beach Res$r, v. 8isca, G.R. N$. 1-"(.2, A&g&s, !9, !((1................2.
!.. Price, e, a#., v Inn$+a,a Phi#s., G.R. N$. 1"12(2, Se*,e3'er (, !((1.............................2"
!2. Ag&san +e# N$r,e E#ec,ric C$$*era,ive v. Caga3*ang, G.R. N$. 1-"-!", :c,$'er 1(, !((1
.............................................................................................................................................. -(
!-. Wi##ia3 >) C$ns,r&c,i$n e,. a# vs. Trini+a+, GR N$. 11!2(, March 1(, !(1(..................-1
!". 7ac&i,a# vs. L.M. Ca3&s Engineering C$r*.,G.R. N$. 1"-".1, Se*,e3'er 1, !(1(..........-!
!1. Mi##eni&3 Erec,$rs C$r*. vs. Maga##anes, G.R. N$. 11.-!, N$ve3'er 12, !(1(............-
!9. EC:7>S INTERNATI:NAL C:NSTR>CTI:N C:RP:RATI:N vs. G>ILLERM: BISC:CH: e,.
a#.G.R. N$. 1--1(9, 9e'r&ar) !, !(11.................................................................................. -
(. Le),e Ge$,her3a# P$wer Pr$gressive E3*#$)ees >ni$n v. Phi# Na,i$na# :i# C$., G.R. N$.
1"-21, March (, !(11........................................................................................................ -2
1. S,. Pa&# C$##ege D&e4$n Ci,) vs. Anche,a II, G.R. N$. 1-99(2, Se*,e3'er ", !(11.........-"
!. L)nvi# 9ishing En,er*rises vs. Ari$#a, G.R. N$. 1119"., 9e'r&ar) 1, !(1!.........................-9
. 7.M. C$ns&nEi Inc. vs. 6a3in, G.R. N$. 19!21., A*ri# 11, !(1! ci,ing Marag&in$,............"(
MANAGEMENT PRER:GATI8E.................................................................................................... "
1. 7$sch vs. NLRC, 1! SCRA !9- /1910.............................................................................. "
!. PT;T v. C$&r, $% A**ea#s, G.R. N$. 12!(2", Se*,e3'er !, !((.....................................".
. Men+$4a vs. R&ra# Ban< $% L&c'an, G.R. N$. 122.!1, 6&#) ", !((....................................."-
.. 7&ncan Assn. $% 7e,ai#3an5PT9W: vs G#aF$ We##c$3e Phi#s. G.R. 1-!99........................"-
2. N$r<is Tra+ing C$., vs. NLRC, G.R. N$. 1-1129, A&g&s, 19, !((2......................................""
-. PL7T vs. PaA&i$, G.R. N$. 12!-19, :c,$'er 1!, !((2........................................................"1
". S,ar Pa*er C$r*., vs. Si3'$#, G.R. N$. 1-.""., A*ri# 1!, !((-..........................................."9
1. Rivera vs. S$#i+'an<, G.R. N$. 1-!-9, A*ri# 19, !((-.......................................................11
9. Ti& v. P#a,in&3 P#ans, Inc., G.R. N$. 1-21!, 9e'r&ar) !1, !(("........................................1!
1(. 7&#+&#a$ vs. C$&r, $% A**ea#s, G.R. N$. 1-.19, March 1, !((".....................................1.
11. A#3ari$ v. Phi#i**ine Air#ines, G.R. N$. 1"(9!1, Se*,e3'er 11, !(("..............................12
1!. San Mig&e# C$r*. v. P$n,i##as, G.R. N$. 1221"1, Ma) (", !((1.........................................12
1. Bisig Manggagawa sa Tr)c$ vs. NLRC, G.R. N$. 121(9, :c,. 12, !((1...........................1-
1.. C$ca5C$#a B$,,#erGs Phi#i**ines, Inc. v. 7e# 8i##ar, G.R. N$. 1-(91, :c,$'er -, !(1(.......1"
12. Mani#a E#ec,ric C$. vs. Li3, G.R. N$. 11."-9, :c,$'er 2, !(1(........................................91
1-. Be##$ vs. B$ni%aci$ Sec&ri,) Services, G.R. N$. 111(1-, A&g&s, , !(11..........................9!
1". A#er, Sec&ri,) an+ Inves,iga,i$n Agenc) vs. Pasawi#an, G.R. N$. 11!9", Se*,e3'er 1.,
!(11...................................................................................................................................... 9
11. Mani#a Pavi#i$n H$,e# vs. 7e#a+a, G.R. N$. 1199.", 6an&ar) !2, !(1!.............................9.
TERMINATI:N :9 EMPL:@MENT................................................................................................ 9-
1. Re,&)a v. NLRC, G.R. N$. 1.11.1, A&g&s, 2, !((, ci,ing B&s,a3an,e..............................9-
!. Aga'$n vs. NLRC, G.R. N$. 121-9, N$ve3'er 1", !((....................................................9"
. 6a<a 9$$+ Pr$cessing vs. Pac$,, G.R. N$. 121"1, March !1, !((2....................................99
.. Ma&rici$ v. NLRC, G.R. N$. 1-.-2, N$ve3'er 1", !((2.................................................1((
2. In+&s,ria# Ti3'er C$r*. vs. A'a'$n, G.R. N$. 1-.211, 6an&r) !2, !((- an+ March !1, !(("
............................................................................................................................................ 1(!
-. EA&i,a'#e Ban< vs Sa+ac, G.R. N$. 1-.""!, 6&ne 1, !((-................................................1(
". Heirs $% Sara Lee vs. Re), G.R. N$. 1.99(1, A&g&s, 1, !((-........................................1(.
1. Ga#aFi S,ee# W$r<ers >ni$n vs. NLRC, G.R. N$. 1-2"2", :c,$'er 1", !((-, ci,ing N$r,h
7ava$ Mining....................................................................................................................... 1(2
9. S)
vs. Me,r$ Ban<, G.R. N$. 1-(-11, N$ve3'er !, !((-.........................................................1(-
1(. Hing $% Hings Trans*$r, vs. NLRC, G.R. N$. 1--!(1, 6&ne !9, !(("................................1("
11. 6$hns$n ; 6$hns$n v. 6$hns$n :Ice ; Sa#es >ni$n, G.R. N$. 1"!"99, 6&#) -, !((".......1(9
1!. Asian Ter3ina# vs. NLRC, G.R. N$. 121.21, 7ece3'er 19, !((", ci,ing S,an+ar+ E#ec,ric
M%g. vs. S,an+ar+ E#ec,ric E3*#$)ees >ni$n, G.R. N$. 1--111, A&g&s, !2, !((2................111
1. S3ar, C$33&nica,i$ns v. As,$rga, G.R. N$. 1.11.!, 6an&ar) !1, !((1........................11!
1.. EnriA&e4 v. Ban< $% ,he Phi#i**ine Is#an+s, G.R. N$. 1"!11!, 9e'r&ar) 1!, !((1...........112
12. RB Michae# Press vs. Ga#i,, G.R. N$. 1221(, 9e'r&ar) 1, !((1...................................11"
1-. C$s3$s B$,,#ing C$r*$ra,i$n v. Nagra3a, G.R. N$ 1-..(, March ., !((1...................119
1". Sch$$# $% ,he H$#) S*iri, $% D.C. vs. Tag&ia3, G.R. N$. 1-22-2, 6&#) 1., !((1...............1!(
11. >niversa# S,aIng Services Inc. v. NLRC, G.R. N$. 1""2"-, 6&#) !1, !((1......................1!1
19. 9#igh, A,,en+an,s an+ S,ewar+ Ass$cia,i$n $% ,he Phi#i**ines =9ASAP? v. Phi#i**ine
Air#ines, G.R. N$. 1"1(1, G.R. N$. 1"1(1, 6&#) !!, !((1...................................................1!!
!(. 6$hn Hanc$c< Li%e Ins&rance C$r*. vs. 7avis, G.R. N$. 1-92.9, Se*,. , !((1..............1!"
!1. Merin vs. NLRC, G.R. N$. 1"1"9(, :c,$'er 1", !((1.....................................................1!1
!!. @ras&eg&i vs. Phi# Air#ines, G.R. N$. 1-1(11, :c,. 1", !((1...........................................1(
!. Saga#es v. R&s,ans C$33ercia# C$r*$ra,i$n, G.R. N$. 1--22., N$ve3'er !", !((1.....11
!.. Garcia vs. PAL, G.R. N$. 1-.12-, 6an. !(, !((9, En Banc, ci,ing Gen&in$ vs. NLRC, G.R.
N$. 1.!"!5, 7ece3'er ., !(("...................................................................................... 1.
!2. La >ni$n Ce3en, W$r<ers >ni$n e, a#., vs NLRC e, a#., G.R. N$. 1".-!1, 6an&ar) (, !((9
............................................................................................................................................ 12
!-. Men+r$s, 6r. vs. Mi,s&'ishi M$,$rs Phi#s C$r*., G.R. N$. 1-9"1(, 9e'. 1-, !((9.............1"
!". R$sa vs. A3'assa+$r H$,e#, G.R. N$. 1""(29, March 1, !((9.....................................11
!1. M$,$r$#a Phi#s. v. A3'r$ci$, G.R. N$. 1"!"9, March (, !((9......................................19
!9. Pere4 e, a#., vs. Phi# Te#egra*h ; Te#e*h$ne C$3*an) e, a#., G.R. N$. 12!(.1, A*ri# ",
!((9.................................................................................................................................... 1.(
(. Te#ec$33&nica,i$ns 7is,ri'&,$rs S*ecia#is,s Inc. e, a#., vs. Garrie#, G.R. N$. 1".911, Ma)
!2, !((9, ci,ing !((9 Pere4................................................................................................. 1.!
1. Tri&3*h In,erna,i$na# Phi#i**ines v. A*$s,$#, G.R. N$. 1-..!, 6&ne 1-, !((9...............1.
!. Techn$#$gica# Ins,i,&,e $% ,he Phi#s Teachers an+ E3*#$)ees :rgani4a,i$n vs. C$&r, $%
A**ea#s, e, a#., G.R. N$. 121"(, 6&ne !-, !((9..................................................................1.2
. L#a3as v. :cean Ga,ewa) Mari,i3e an+ Manage3en, Services Inc., G.R. N$. 1"9!9,
A&g&s, 1., !((9.................................................................................................................. 1.-
.. L$we Inc., v. CA, G.R. 1-.11 ; 1".29(, A&g&s, 1., !((9............................................1.1
2. Es,aci$ v. Pa3*anga I E#ec,ric C$$*era,ive, G.R. N$. 1119-, A&g&s, 19, !((9............1.9
-. Mara#i, v. PNB, G.R. N$. 1-"11, A&g&s, !., !((9.........................................................12(
". D&eve+$ v. Beng&e, E#ec,ric C$$*era,ive, G.R. N$. 1-19!", Se*,e3'er 11, !((9........12!
1. P#aci+$ e, a#. v. NLRC, G.R. N$. 11(111, Se*,e3'er 11, !((9.......................................12
9. Mar,ine4 v. B;B 9ish Br$<er, G.R. N$. 1"9912, Se*,e3'er 11, !((9.............................122
.(. 9#igh, A,,en+an,s an+ S,ewar+ Ass$cia,i$n $% ,he Phi#s vs. Phi# Air#ines, G.R. N$. 1"1(1,
:c,$'er !, !((9, see 6&#) !!, !((1, 3ain +ecisi$n..............................................................12-
.1. Ea,s5Ce,era 9$$+ Services :&,#e, v. Le,ran, G.R. N$. 1"92(", :c,$'er !, !((9............12"
.!. P#an,a,i$n Ba) Res$r, an+ S*a, e, a#. vs. 7&'ric$, G.R. N$. 11!!1-, 7ece3'er ., !((9
............................................................................................................................................ 129
.. 9&#ache v. ABS5CBN Br$a+cas,ing C$r*$ra,i$n, G.R. N$. 1111(, 6an&ar) !1, !(1(......129
... Anche,a vs. 7es,in) 9inancia# P#ans Inc. e, a#., G.R. N$. 1"9"(!, 9e'. 1-, !(1(............1-1
.2. 6ave##ana, 6r. vs. Be#en, G.R. N$s. 11191 ; 11!121, March 2, !(1(.............................1-!
.-. WPP Mar<e,ing C$33&nica,i$ns Inc., e, a#., vs. Ga#era, G.R. N$. 1-9!(", March !2, !(1(
............................................................................................................................................ 1-.
.". Merca+$ v. AMA C$3*&,er C$##ege, G.R. N$. 112"!, A*ri# 1, !(1(............................1-2
.1. Pan,$Ea vs. SCA H)giene Pr$+&c,s C$r*., G.R. N$. 1-22., A*ri# !, !(1(....................1--
.9. BPI v. NLRC, G.R. N$. 1"91(1, 6&ne 11, !(1(.................................................................1-"
2(. Phi#. R&ra# Rec$ns,r&c,i$n M$ve3en, vs. P&#gar, G.R. N$. 1-9!!", 6&#) 2, !(1(............1-1
21. Mari'ag$ B#&ewa,er Beach Res$r, v. 7&a#, G.R. N$. 11(--(, 6&#) !(, !(1(...................1"(
2!. New P&er,$ C$33ercia# vs. L$*e4, G.R. N$. 1-9999, 6&#) !-, !(1(..............................1"
2. Ar,iJci$ vs. NLRC, G.R. N$. 1"!911, 6&#) !-, !(1(.........................................................1".
2.. Ca#i*a) vs. NLRC, G.R. N$. 1--.11, A&g&s, , !(1(......................................................1"-
22. Nacag&e v. S&#*ici$ Lines, G.R. N$. 1"!219, A&g&s, 1, !(1(.........................................1""
2-. Cen,&r) Canning C$r*. vs. Ra3i#, G.R. N$. 1"1-(, A&g&s, 1, !(1(.............................1"1
2". 7.M C$ns&nEi vs. G$'res, G.R. N$. 1-91"(, A&g&s, 1, !(1(..........................................11(
21. Nag<a<a5sang La<as ng Manggagawa sa Heihin vs. Heihin Phi#s. C$r*., G.R. N$. 1"1112,
A&g&s, 9, !(1(.................................................................................................................... 11!
29. Garcia v. M$#ina, G.R. N$. 12"1, A&g&s, 11, !(1(......................................................11
-(. Escari$ v. NLRC, G.R. N$. 1-((!, Se*,e3'er !", !(1(................................................11.
-1. Si3i4& Phi#s C$n,rac,$rs v. Ca##an,a, G.R. N$. 1-29!, Se*,e3'er !9, !(1(.................11-
-!. S$#i+'an< C$r*$ra,i$n v. Ga3ier, G.R. N$. 129.-1, N$ve3'er 12, !(1(......................111
-. C$ca5C$#a EF*$r, C$r*. v. Gaca)an, G.R. N$. 1.9., 7ece3'er 12, !(1(..................19(
-.. R$'ins$ns Ga##eriaBR$'ins$ns S&*er3ar<e, v. Ranche4, G.R. N$. 1""9", 6an&ar) 19,
!(11.................................................................................................................................... 19!
-2. H$s*i,a# Manage3en, Services v. HMSI5Me+ica# Cen,er Mani#a E3*#$)ees Ass$., G.R. N$.
1"-!1", 6an&ar) 1, !(11................................................................................................... 19
--. C&#i#i v. Eas,ern Te#ec$33&nica,i$ns Phi#s., G.R. N$. 1-211, 9e'r&ar) 9, !(11...........19-
-". P#as,i3er In+&s,ria# C$r*. v. G$*$, G.R. N$. 119(, 9e'r&ar) 1-, !(11.......................19"
-1. S,. Mar)Gs Aca+e3) $% 7i*$#$g Ci,) vs. Pa#aci$, G.R. N$. 1-.91, Se*,e3'er 1, !(1(. 199
-9. PL7T vs. Teves, G.R. N$. 1.211, N$ve3'er 12, !(1(..................................................!((
"(. >niversi,) $% ,he I33ac&#a,e C$nce*ci$n vs. NLRC, G.R. N$. 1111.-, 6an&ar) !-, !(11
............................................................................................................................................ !(1
"1. Si3i4& Phi#s C$n,rac,$rs v. Ca##an,a, G.R. N$. 1-29!, Se*,e3'er !9, !(1(.................!(!
"!. Mani#a Mining C$r*. E3*#$)ees Ass$cia,i$n599W vs. Mani#a Mining C$r*., G.R. N$.
1"1!!!5!, Se*,e3'er !9, !(1(......................................................................................... !(.
". L$*e4 vs. A#,&ras Gr$&* $% C$3*anies, G.R. N$. 191((1, A*ri# 11, !(11.......................!(-
".. A*aci'#e vs. M&#,i3e+ In+&s,ries Inc., G.R. N$. 1"19(, Ma) (, !(11.........................!("
"2. Barr$ga vs. 7a,a Cen,er C$##ege, G.R. N$. 1".121, 6&ne !", !(11................................!(1
"-. L$*e4 vs. He**e# Ban< Phi#s., G.R. N$. 1"-1((, Se*,e3'er 2, !(11..............................!(9
"". S,. Pa&# C$##ege D&e4$n Ci,) vs. Anche,a II, G.R. N$. 1-99(2, Se*,e3'er ", !(11.......!1(
"1. 6&3&a+ vs. Hi59#)er 9$$+, G.R. N$. 11"11", Se*,e3'er ", !(11...................................!1!
"9. Nissan M$,$r Phi#s. Ange#$, G.R. N$. 1-.111, Se*,e3'er 1., !(11...............................!1
1(. Phi#. Na,i$na# Ban< vs. Pa+a$, G.R. N$. 11(1.9, N$ve3'er 1-, !(11............................!1
11. Ta3s$ns En,er*rises Inc. vs. CA, G.R. N$. 19!111, N$ve3'er 1-, !(11.......................!12
1!. C$nce*ci$n vs. MineF I3*$r, C$r*., G.R. N$. 122-9, 6an&ar) !., !(1!.......................!1-
1. M$ra#es vs. Har'$&r Cen,re P$r, Ter3ina# Inc., G.R. N$. 1".!(1, 6an&ar) !2, !(1!......!11
1.. Mansi$n Prin,ing Cen,er vs. Bi,ara, G.R. N$. 1-11!(, 6an&ar) !2, !(1!........................!19
12. Mani#a E#ec,ric C$. vs. Be#,ran, G.R. N$. 1"""., 6an&ar) (, !(1!...............................!!(
1-. Ban< $% L&'a$ vs. Mana'a,, G.R. N$. 111"!!, 9e'r&ar) 1, !(1!...................................!!1
1". Cana+ian :**$r,&ni,ies >n#i3i,e+ vs. 7a#angin, G.R. N$. 1"!!!, 9e'r&ar) -, !(1!....!!
11. Mani#a E#ec,ric C$. vs. Ga#a, G.R. N$. 191!11 ; 191(., March ", !(1!.......................!!.
19. Ar$ vs. NLRC, G.R. N$. 1"."9!, March ", !(1!..............................................................!!2
9(. @3'$ng vs. ABS5CBN Br$a+cas,ing C$r*., G.R. N$. 11.112, March ", !(1!..................!!-
91. B#&e S<) Tra+ing C$. vs. B#as, G.R. N$. 19(229, March ", !(1!.....................................!!1
9!. In,erna,i$n 3anage3en, Services vs. L$gar,a, G.R. N$. 1--2", A*ri# 11, !(1!..........!(
9. 6ia$ vs. NLRC, G.R. N$. 11!1, A*ri# 11, !(1!..............................................................!1
9.. Rea#+a vs. New Age Gra*hics Inc., G.R. N$. 19!19(, A*ri# !2, !(1!..............................!
92. Ha<a3*i an+ I,s Me3'ers Pan&e#$s vs. Hings*$in, EF*ress ; L$gis,ics, G.R. N$. 19.11,
A*ri# !2, !(1!...................................................................................................................... !.
S>SPENSI:N :9 B>SINESS :PERATI:NS................................................................................ !-
1. 6PL Mar<e,ing Pr$3$,i$n vs. C$&r, $% A**ea#s, G.R. N$. 1219--, 6&#) 1, !((2.................!-
!. Pi+$ vs NLRC, G.R. N$. 1-911!, 9e'r&ar) !, !((".........................................................!-
. Mega%$rce Sec&ri,) ; A##ie+ Services vs. Lac,a$, G.R. N$. 1-(9.(, 6&#) !1, !((1...........!1
.. Na,i$na# Mines an+ A##ie+ W$r<ers >ni$n vs. Marc$**er Mining C$r*., G.R. N$. 1".-.1,
N$v. 11, !((1....................................................................................................................... !9
2. Eag#e S,ar Sec&ri,) Services Inc. vs. Miran+$ e, a#., G.R. N$. 1"921!, 6&#) (, !((9.......!.1
-. Na,i$nwi+e Sec&ri,) ; A##ie+ Services v. 8a#+era3a, G.R. N$. 11--1., 9e'r&ar) !, !(11
............................................................................................................................................ !.!
". Ni**$n H$&sing Phi#s. vs. Le)nes, G.R. N$. 1""11-, A&g&s, , !(11...............................!..
7ISEASE AS A GR:>N7 9:R TERMINATI:N............................................................................. !.-
1. S) vs. C$&r, $% A**ea#s, G.R. N$. 1.!!9, 9e'r&ar) !", !((.........................................!.-
!. Man#) EF*ress vs. Pa)$ng, G.R. N$. 1-".-!, :c,$'er !2, !((2.......................................!."
. 7&,er,e vs. Hingsw$$+ Tra+ing C$., G.R. N$. 1-(!2, :c,$'er ., !(("...........................!."
.. 8i##ar&e# vs. @e$ Han G&an, G.R. N$. 1-9191, 6&ne 1, !(11..............................................!.1
:THER CA>SES :9 SE8ERANCE :9 EMPL:@MENT RELATI:N..................................................!21
1. Pan,ranc$ N$r,h EF*ress vs. NLRC, !29 SCRA 1-1 /199-0...............................................!21
!. Phi#. Air#ines vs. Air#ine Pi#$,s Ass$. :% Phi#s., G.R. N$. 1.-1-, 6an&ar) 12, !((!...........!2!
. Cain,a Ca,h$#ic Sch$$# vs. Cain,a Ca,h$#ic Sch$$# E3*#$)ees >ni$n, G.R. N$. 121(!1, Ma)
., !((- ci,ing 199- Pan,ranc$ N$r,h EF*ress......................................................................!2
.. 6ac&#'e vs. Si##i3an >niversi,), G.R. N$. 12-9., March 1-, !(("...................................!22
2. G#$'e Te#ec$3 vs. Cris$#$g$, G.R. N$. 1"-.., A&g&s, 1(, !((".......................................!2"
-. BMG Rec$r+s Phi#s e, a#., vs. A*areci$, e, a#., G.R. N$. 12!9(, Se*,e3'er 2, !((", ci,ing
Phi# T$+a) vs. NLRC, !-" SCRA !(! /199-0..........................................................................!29
". B#&e Ange# Man*$wer an+ Sec&ri,) Services vs. CA, G.R. N$. 1-119-, 6&#) !1, !((1......!-1
1. G&er4$n 6r e, a# vs. Pasig In+&s,ries Inc., e, a#., G.R. N$. 1"(!--, Se*,. 1!, !((1...........!-1
9. S&are4 6r. e, a#., vs. Na,i$na# S,ee# C$r*., G.R. N$. 12(11(, :c,. 1", !((1.......................!-!
1(. G$$+rich M%g C$r* vs. A,iv$ e, a#., G.R. N$. 111((!, 9e'. 1, !(1(................................!-
11. H$rean Air C$. L,+. v. @&s$n, G.R. N$. 1"(-9, 6&ne 1-, !(1(........................................!-2
1!. Cerca+$ v. >ni*r$3 Inc., G.R. N$. 11112., :c,$'er 1, !(1(........................................!--
1. Bi#'a$ vs. Sa&+i Ara'ian Air#ines, G.R. N$. 11912, 7ece3'er 1., !(11.......................!-"
1.. San Mig&e# Pr$*er,ies vs. G&ca'an, G.R. N$. 1291!, 6&#) 11, !(11.............................!-1
12. S<i**ers >ni,e+ PaciJc vs. 7$4a, G.R. N$. 1"2221, 9e'r&ar) 1, !(1!...........................!"(
PRESCRIPTI:N :9 CLAIMS....................................................................................................... !"!
1. L&+$ ; L&)3 C$r*. vs Sa$rni+$, G.R. N$. 1.(9-(, 6an&ar) !(, !((..............................!"!
!. 7ega3$ vs. Avan,gar+e Shi**ing c$r*., G.R. n$. 12..-(, N$ve3'er !!, !((2..............!"
. In,erc$n,inen,a# Br$a+cas,ing C$r*. vs. Pangani'an, G.R. N$. 121.(", 9e'r&ar) -, !(("
............................................................................................................................................ !".
.. 9ar Eas, Agric&#,&ra# S&**#) vs. Le'a,iA&e, G.R. N$. 1-!11, 9e'r&ar) 1!, !(("...........!"2
2. 8ic,$r) Liner, Inc. vs. Race, G.R. N$. 1-.1!(, March !1, !(("........................................!"2
-. 6.H. Merca+$ ; S$ns Agric&#,&ra# En,er*rises vs. S,$. T$3as, G.R. N$. 121(1., A&g&s, !9,
!((1.................................................................................................................................... !""
". Re)es vs. N#rc, G.R. N$. 11(221, 9e'r&ar) 1(, !((9........................................................!""
1. LW8 C$ns,r&c,i$n C$r*. vs. 7&*$, G.R. N$. 1"!.!, 6&#) 1, !((9..................................!"1
9. PL7T v. Ping$#, G.R. N$. 11!-!!, Se*,e3'er 1, !(1(......................................................!1(
1(. Me+#ine Manage3en, Inc. vs. R$s#in+a, G.R. N$. 1-1"12, Se*,e3'er 12, !(1(............!1!
11. >niversi,) $% Eas, vs. >niversi,) $% Eas, E3*#$)ees Ass$c., G.R. N$. 1"929, Se*,e3'er
1., !(11.............................................................................................................................. !1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
THE APPLICABLE LAWS
GENERAL PRINCIPLES
CASESL
1. Singer Sewing Machine vs. NLRC, 193 SCRA 271
9ac,sL
Singer Machine C$##ec,$rs >ni$n5Bag&i$ J#e+ a *e,i,i$n %$r +irec, cer,iJca,i$n as ,he s$#e an+
eFc#&sive 'argaining agen, $% a## c$##ec,$rs $% Singer Sewing Machine. The c$3*an) $**$se+
,he *e,i,i$n 3ain#) 'eca&se ,he &ni$n 3e3'ers are n$, e3*#$)ees '&, in+e*en+en,
c$n,rac,$rs as evi+ence+ ') ,he c$##ec,i$n agenc) agree3en, which ,he) signe+.
Me+5Ar'i,er r&#e+ ,ha, ,here eFis,s an e3*#$)ee5e3*#$)er re#a,i$nshi* an+ gran,e+ ,he
cer,iJca,i$n e#ec,i$n which was aIr3e+ ') Sec. 7ri#$n. The c$3*an) J#es ,he *resen, *e,i,i$n
$n ,he +e,er3ina,i$n $% ,he re#a,i$nshi*. The &ni$n insis,s ,ha, ,he *r$visi$ns $% ,he C$##ec,i$n
Agree3en, 'e#ie ,he c$3*an)Gs *$si,i$n ,ha, ,he &ni$n 3e3'ers are in+e*en+en, c$n,rac,$rs.
R&#ingL
The *resen, case ca##s %$r ,he a**#ica,i$n $% ,he c$n,r$# ,es,, which i% n$, sa,isJe+, w$&#+ #ea+
,$ ,he c$nc#&si$n ,ha, n$ e3*#$)ee5e3*#$)er re#a,i$nshi* eFis,s. I% ,he &ni$n 3e3'ers are n$,
e3*#$)ees, n$ righ, ,$ $rgani4e %$r ,he *&r*$se $% 'argaining $r as a 'argaining agen, cann$,
'e rec$gni4e+. The %$##$wing e#e3en,s are genera##) c$nsi+ere+ in ,he +e,er3ina,i$n $% ,he
re#a,i$nshi*L ,he se#ec,i$n an+ engage3en, $% ,he e3*#$)ee, *a)3en, $% wages, *$wer $%
+is3issa# an+ ,he *$wer ,$ c$n,r$# ,he e3*#$)eeGs c$n+&c, which is ,he 3$s, i3*$r,an,
e#e3en,. The na,&re $% ,he re#a,i$nshi* 'e,ween a c$3*an) an+ i,s c$##ec,ing agen,s +e*en+s
$n ,he circ&3s,ances $% each *ar,ic&#ar re#a,i$nshi*. N$, a## c$##ec,ing agen,s are e3*#$)ees
an+ nei,her are a## c$##ec,ing agen,s in+e*en+en, c$n,rac,$rs. The agree3en, c$nJr3s ,he
s,a,&s $% ,he c$##ec,ing agen,s as in+e*en+en, c$n,rac,$r. The reA&ire3en, ,ha, c$##ec,i$n
agen,s &,i#i4e $n#) recei*, %$r3s an+ re*$r, %$r3s iss&e+ ') ,he c$3*an) an+ ,ha, re*$r,s
sha## 'e s&'3i,,e+ a, #eas, $nce a wee< is n$, necessari#) an in+ica,i$n $% c$n,r$# $ver ,he
3eans ') which ,he E$' c$##ec,i$n is ,$ 'e *er%$r3e+. Even i% re*$r, reA&ire3en,s are ,$ 'e
ca##e+ c$n,r$# 3eas&res, an) c$n,r$# is $n#) wi,h res*ec, ,$ ,he en+ res&#, $% ,he c$##ec,i$n
since ,he reA&ire3en,s reg&#a,e ,he ,hings ,$ 'e +$ne a%,er ,he *er%$r3ance $% ,he c$##ec,i$n
E$' $r ,he ren+i,i$n $% service.
The *#ain #ang&age $% ,he agree3en, revea#s ,ha, ,he +esigna,i$n as c$##ec,i$n agen, +$es n$,
crea,e an e3*#$)3en, re#a,i$nshi* an+ ,ha, ,he a**#ican, is ,$ 'e c$nsi+ere+ a, a## ,i3es as an
in+e*en+en, c$n,rac,$r. The c$&r, Jn+s ,ha, since *riva,e res*$n+en,s are n$, e3*#$)ees $%
,he c$3*an), ,he) are n$, en,i,#e+ ,$ ,he c$ns,i,&,i$na# righ, ,$ %$r3 $r E$in a #a'$r
$rgani4a,i$n %$r ,he *&r*$ses $% c$##ec,ive 'argaining. There is n$ c$ns,i,&,i$na# an+ #ega#
'asis %$r ,heir &ni$n ,$ 'e gran,e+ ,heir *e,i,i$n %$r +irec, cer,iJca,i$n.
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
2. Manila Golf Clu vs. !AC, 237 SCRA 2"7
9ac,sL
This is $rigina##) J#e+ wi,h ,he S$cia# Sec&ri,) C$33issi$n =SSC? via *e,i,i$n $% 1" *ers$ns
wh$ s,)#e+ ,he3se#ves as M Ca++ies $% Mani#a G$#% an+ C$&n,r) C#&'5PTCCEAN %$r ,he c$verage
an+ avai#3en, $% 'eneJ,s $% ,he S$cia# Sec&ri,) Ac, as a3en+e+, PTCCEA =Phi#i**ine Technica#,
C#erica#, C$33ercia# E3*#$)ees Ass$cia,i$n? a #a'$r $rgani4a,i$n where which ,he) c#ai3 %$r
3e3'ershi*. The sa3e ,i3e ,w$ $,her *r$cee+ings were J#e+ an+ *en+ing. These are
cer,iJca,i$n e#ec,i$n case J#e+ ') PTCCEA $n 'eha#% $% ,he sa3e ca++ies $% Mani#a G$#% an+
C$&n,r) c#&' which was in %av$r $% ,he ca++ies an+ c$3*&#s$r) ar'i,ra,i$n case inv$#ving
PTCCEA an+ Mani#a G$#% an+ C$&n,r) C#&' which was +is3isse+ an+ r&#e+ ,ha, ,here was n$
e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween ,he ca++ies an+ ,he c#&'.
The A&es,i$n inv$#ve+ in ,he case is whe,her $r n$, ren+ering ca++)ing services %$r 3e3'ers
$% g$#% c#&'s an+ ,heir g&es,s in sai+ c#&'sG c$&rses $r *re3ises are ,he e3*#$)ees $% s&ch
c#&'s an+ ,here%$re wi,hin ,he c$3*&#s$r) c$verage $% ,he S$cia# Sec&ri,) S)s,e3 =SSS?.
R&#ingL
The C$&r, +$es n$, agree ,ha, ,he %ac,s #$gica##) *$in, ,$ ,he e3*#$)er5e3*#$)ee re#a,i$nshi*.
In ,he ver) na,&re $% ,hings, ca++ies 3&s, s&'3i, ,$ s$3e s&*ervisi$n $% ,heir c$n+&c, whi#e
enE$)ing ,he *rivi#ege $% *&rs&ing ,heir $cc&*a,i$n wi,hin ,he *re3ises an+ gr$&n+s $%
wha,ever c#&' ,he) +$ w$r< in. The) w$r< %$r ,he c#&' ,$ which ,he) a,,ach ,he3se#ves $n
s&Kerance '&,, $n ,he $,her han+, a#s$ wi,h$&, having ,$ $'serve an) w$r<ing h$&rs, %ree ,$
#eave an),i3e ,he) *#ease, ,$ s,a) awa) %$r as #$ng ,he) #i<e.
These c$nsi+era,i$ns c#ash %r$n,a##) wi,h ,he c$nce*, $% e3*#$)3en,.
I, can ha**en ,ha, a ca++) wh$ has ren+ere+ services ,$ a *#a)er $n $ne +a) 3a) s,i## Jn+
s&Icien, ,i3e ,$ w$r< e#sewhere. >n+er s&ch circ&3s,ances, ,he ca++) 3a) #eave ,he
*re3ises an+ ,$ g$ ,$ s&ch $,her *#ace $% w$r< ,ha, he wishes. These are ,hings 'e)$n+ ,he
c$n,r$# $% ,he *e,i,i$ner. The ca++) =LLa3ar? is n$, an e3*#$)ee $% *e,i,i$ner Mani#a G$#% an+
C$&n,r) C#&' an+ ,he *e,i,i$ner is &n+er n$ $'#iga,i$n ,$ re*$r, hi3 %$r c$3*&#s$r) c$verage
$% SSS.
3. #nc$clo%e&ia 'ri(anica vs. NLRC, 2)* SCRA * +199),
9ac,sL
Li3E$c$ was a Sa#es 7ivis$n $% Enc)c#$*ae+ia Bri,annica an+ was in charge $% se##ing ,he
*r$+&c,s ,hr$&gh s$3e sa#es re*resen,a,ives. As c$3*ensa,i$n, he w$&#+ receive
c$33issi$ns %r$3 ,he *r$+&c,s s$#+ ') his agen,s. He was a#s$ a##$we+ ,$ &se ,he *e,i,i$nerGs
na3e, g$$+wi## an+ #$g$. I, was agree+ ,ha, $Ice eF*enses w$&#+ 'e +e+&c,e+ %r$3 Li3E$c$Gs
c$33issi$ns. In 19"., Li3E$c$ resigne+ ,$ *&rs&e his *riva,e '&siness an+ J#e+ a c$3*#ain,
agains, *e,i,i$ner %$r a##ege+ n$n5*a)3en, $% se*ara,i$n *a) an+ $,her 'eneJ,s an+ a#s$
i##ega# +e+&c,i$n %r$3 sa#es c$33issi$ns. Pe,i,i$ner a##ege+ ,ha, Li3E$c$ was n$, an e3*#$)ee
$% ,he c$3*an) '&, an in+e*en+en, +ea#er a&,h$ri4e+ ,$ *r$3$,e an+ se## i,s *r$+&c,s an+ in
re,&rn, receive+ c$33issi$ns ,herein. Pe,i,i$ner a#s$ c#ai3s ,ha, i, ha+ n$ c$n,r$# an+
s&*ervisi$n $ver ,he c$3*#ainan, as ,$ ,he 3anners an+ 3eans he c$n+&c,e+ his '&siness
Page !
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$*era,i$ns. Li3E$c$ 3ain,aine+ $,herwise. He a##ege+ he was hire+ ') ,he *e,i,i$ner an+ was
assigne+ in ,he sa#es +e*ar,3en,.
The La'$r Ar'i,er r&#e+ ,ha, Li3E$c$ was an e3*#$)ee $% ,he c$3*an). NLRC a#s$ aIr3e+ ,he
+ecisi$n an+ $*ine+ ,ha, ,here was n$ evi+ence s&**$r,ing a##ega,i$n ,ha, Li3E$c$ was an
in+e*en+en, c$n,rac,$r $r +ea#er. :n a**ea#, *e,i,i$ner assai#s ,ha, ,here was n$ e3*#$)ee5
e3*#$)er re#a,i$nshi*.
R&#ingL
There was n$ e3*#$)ee5e3*#$)er re#a,i$nshi*. In +e,er3ining ,he re#a,i$nshi*, ,he %$##$wing
e#e3en,s 3&s, 'e *resen,L se#ec,i$n an+ engage3en, $% ,he e3*#$)ee, *a)3en, $% wages,
*$wer $% +is3issa# an+ *$wer ,$ c$n,r$# ,he e3*#$)eeGs c$n+&c,. The *$wer $% c$n,r$# is
c$33$n#) regar+e+ as ,he 3$s, cr&cia# an+ +e,er3ina,ive in+ica,$r $% ,he *resence $r
a'sence $% an e3*#$)ee5e3*#$)er re#a,i$nshi*. >n+er ,he c$n,r$# ,es,, an e3*#$)ee5e3*#$)er
re#a,i$nshi* eFis,s where ,he *ers$n %$r wh$3 ,he services are *er%$r3e+ reserves a righ, ,$
c$n,r$# n$, $n#) ,he en+ ,$ 'e achieve+, '&, a#s$ ,he 3anner an+ 3eans ,$ 'e e3*#$)e+ in
reaching ,ha, en+. The iss&ance $% g&i+e#ines ') ,he *e,i,i$ner was 3ere#) g&i+e#ines $n
c$3*an) *$#icies which sa#es 3anagers %$##$w an+ i3*$se $n ,heir res*ec,ive agen,s. Li3E$c$
was n$, an e3*#$)ee $% ,he c$3*an) since he ha+ ,he %ree rein in ,he 3eans an+ 3e,h$+s %$r
c$n+&c,ing ,he 3ar<e,ing $*era,i$ns. He was 3ere#) an agen, $r an in+e*en+en, +ea#er $% ,he
*e,i,i$ner. He was %ree ,$ c$n+&c, his w$r< an+ he was %ree ,$ engage in $,her 3eans $%
#ive#ih$$+.
In ascer,aining ,he e3*#$)ee5e3*#$)er re#a,i$nshi*, ,he %ac,&a# circ&3s,ances 3&s, 'e
c$nsi+ere+. The e#e3en, $% c$n,r$# is a'sen, where a *ers$n wh$ w$r<s %$r an$,her +$es s$
3$re $r #ess a, his $wn *#eas&re an+ is n$, s&'Eec, ,$ +eJni,e h$&rs $r c$n+i,i$ns $% w$r<, an+
in ,&rn is c$3*ensa,e+ in acc$r+ing ,$ ,he res&#, $% his eK$r,s an+ n$, ,he a3$&n, ,here$%.
Hence, ,here was n$ e3*#$)ee5e3*#$)er re#a,i$nshi*.
*. Carungcong vs. Sunlife, 2-3 SCRA 319
9ac,sL
S&san Car&ngc$ng 'egan her career in ,he ins&rance in+&s,r) in 19". as an agen, $% S&n Li%e
Ass&rance C$3*an) $% Cana+a. She signe+ an Agen, Agree3en, wi,h S&n Li%e. In vir,&e $%
which she was +esigna,e+ ,he #a,,erGs agen, ,$ s$#ici, a**#ica,i$ns %$r i,s ins&rance an+
ann&i,) *$#icies. This c$n,rac, was s&*erse+e+ s$3e Jve )ears #a,er when she signe+ ,w$ =!?
new agree3en,s. The Jrs,, +en$3ina,e+ Career Agen,Gs $r >ni, ManagerGs Agree3en,, +ea#,
wi,h s&ch 3a,,ers as ,he agen,Gs c$33issi$ns, his $'#iga,i$ns, #i3i,a,i$ns $n his a&,h$ri,), an+
,er3ina,i$n $% ,he agree3en, ') +ea,h, $r ') wri,,en n$,ice wi,h $r wi,h$&, ca&se. The sec$n+
was ,i,#e+, ManagerGs S&**#e3en,ar) Agree3en,. I, eF*#ici,#) +escri'e+ as a M%&r,her
agree3en,N. Car&ngc$ng an+ S&n Li%e eFec&,e+ an$,her Agree3en, na3e+ New B&siness
Manager wi,h ,he %&nc,i$n genera##) ,$ 3anage a New B&siness :Ice es,a'#ishe+. This #a,es,
Agree3en, s,resse+ ,ha, ,he New B&siness Manager in *er%$r3ance $% his +&,ies +eJne+
herein, sha## 'e c$nsi+ere+ an in+e*en+en, c$n,rac,$r an+ n$, an e3*#$)ee $% S&n Li%e, an+
,ha, &n+er n$ circ&3s,ance sha## ,he New B&siness Manager an+B$r his e3*#$)ees 'e
c$nsi+ere+ e3*#$)ees $% S&n Li%e.
Page
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Ms. E#ei4er Si'a)an, Manager $% S&n Li%eGs In,erna# A&+i, 7e*ar,3en,, c$33ence+ an inA&ir)
in,$ ,he s*ecia# %&n+ avai#3en,s $% Car&ngc$ng an+ $,her New B&siness Managers.
Res*$n+en, Lance He3*, ha+ 'een receiving re*$r,s $% an$3a#ies in re#a,i$n ,here,$ %r$3 &ni,
3anagers an+ agen,s. Therea%,er, $n 6an&ar) 199(, Car&ngc$ng was c$n%r$n,e+ wi,h an+
as<e+ ,$ eF*#ain ,he +iscre*ancies se, $&, in Si'a)anGs re*$r,. She was given a #e,,er signe+
') Me,r$n 8. 7eve4a, CL>, 7irec,$r, Mar<e,ing, which a+vise+ $% ,he ,er3ina,i$n $% her
re#a,i$nshi* wi,h S&n Li%e. Car&ngc$ng *r$3*,#) ins,i,&,e+ *r$cee+ings %$r vin+ica,i$n in ,he
Ar'i,ra,i$n Branch $% ,he Na,i$na# La'$r Re#a,i$ns C$33issi$ns $n 6an&ar) 1-, 199(. There
she s&ccee+e+ in $',aining a %av$ra'#e E&+g3en,. La'$r Ar'i,er %$&n+ ,ha, ,here eFis,e+ an
e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween her an+ S&n Li%e. :n a**ea#, ,he Na,i$na# La'$r
Re#a,i$ns C$33issi$n reverse+ ,he Ar'i,erGs E&+g3en,. I, aIr3e+ ,ha, n$ e3*#$)3en,
re#a,i$nshi* eFis,e+ 'e,ween Car&ngc$ng an+ S&n Li%e. She c$n,en,e+ ,ha, she was an
e3*#$)ee s&'Eec, ,$ c$n,r$# an+ s&*ervisi$n ') S&n Li%e.
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N$,ew$r,h) is ,ha, ,his #as, agree3en, which e3*hasi4e+, #i<e ,he MCareer Agen,Gs $r >ni,
ManagerGs Agree3en,N Jrs, signe+ ') her, ,ha, in *er%$r3ance $% her +&,ies +eJne+ herein.
Car&ngc$ng w$&#+ 'e c$nsi+ere+ an in+e*en+en, c$n,rac,$r an+ n$, an e3*#$)ee $% S&n Li%e,
an+ ,ha, &n+er n$ circ&3s,ance sha## ,he New B&siness Manager an+B$r his e3*#$)ees 'e
c$nsi+ere+ e3*#$)ees $% S&n Li%e. Car&ngc$ng is an in+e*en+en, c$n,rac,$r. I, was in+ica,e+
in ,he ver) %ace $% ,he c$n,rac,. The r&#es an+ reg&#a,i$ns $% ,he c$3*an) is n$, s&Icien, ,$
es,a'#ish an e3*#$)er5e3*#$)ee re#a,i$nshi*. I, +$es n$, necessari#) crea,e an) e3*#$)er5
e3*#$)ee re#a,i$nshi* where ,he e3*#$)ersG c$n,r$#s have ,$ in,er%ere in ,he 3e,h$+s an+
3eans ') which e3*#$)ee w$&#+ #i<e e3*#$) ,$ arrive a, ,he +esire+ res&#,s.
Car&ngc$ng a+3i,,e+ ,ha, she was %ree ,$ w$r< as she *#eases, a, ,he *#ace an+ ,i3e she %e#,
c$nvenien, %$r her ,$ +$ s$. She was n$, *ai+ ,$ a JFe+ sa#ar) an+ was 3ain#) *ai+ ')
c$33issi$ns +e*en+ing $n ,he v$#&3e $% her *er%$r3ance. She was n$, an e3*#$)ee $% S&n
Li%e C$.
.. Ra/os vs CA, 3-" SCRA *)7
9ac,sL
Pe,i,i$ner Er#in+a Ra3$s was a+vise+ ,$ &n+erg$ an $*era,i$n %$r ,he re3$va# $% her s,$ne in
,he ga## '#a++er. She was re%erre+ ,$ 7r. H$sa<a, a s&rge$n, wh$ agree+ ,$ +$ ,he $*era,i$n.
The $*era,i$n was sche+&#e+ $n 6&ne 1", 1912 in ,he 7e #$s San,$s Me+ica# Cen,er. Er#in+a
was a+3i,,e+ ,$ ,he 3e+ica# cen,er ,he +a) 'e%$re ,he $*era,i$n. :n ,he %$##$wing +a), she
was rea+) %$r $*era,i$n as ear#) as "L( a3. Ar$&n+ 9L(, 7r. H$sa<a has n$, )e, arrive+. B)
1( a3, R$ge#i$ wan,e+ ,$ *&## $&, his wi%e %r$3 ,he $*era,ing r$$3. 7r. H$sa<a Jna##) arrive+
a, 1!L1( *3 3$re ,han h$&rs $% ,he sche+&#e+ $*era,i$n. 7r. G&i,erres ,rie+ ,$ in,&'a,e
Er#in+a. The nai# 'e+s $% Er#in+a were '#&ish +isc$#$ra,i$n in her #e%, han+. A, *3, Er#in+a was
'eing whee#e+ ,$ ,he In,ensive care >ni, an+ s,a)e+ ,here %$r a 3$n,h. Since ,he i##5%a,e+
$*era,i$n, Er#in+a re3aine+ in c$3a,$se c$n+i,i$n &n,i# she +ie+. The %a3i#) $% Ra3$s s&e+
,he3 %$r +a3ages.
:ne $% ,he iss&es inv$#ve+ was ,ha, ,here was an e3*#$)ee5e3*#$)er re#a,i$nshi* ,ha, eFis,e+
'e,ween ,he 3e+ica# cen,er an+ 7rs. H$sa<a an+ G&i,erre4.
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LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Priva,e H$s*i,a#s hire, Jre an+ eFercise rea# c$n,r$# $ver ,heir a,,en+ing an+ visi,ing c$ns&#,an,
s,aK. Whi#e c$ns&#,an,s are n$, ,echnica##) e3*#$)ees, ,he c$n,r$# eFercise+, ,he hiring an+
,he righ, ,$ ,er3ina,e c$ns&#,an,s %&#J## ,he ha##3ar<s $% an e3*#$)er5e3*#$)ee re#a,i$nshi*
wi,h ,he eFce*,i$n $% *a)3en, $% wages. The c$n,r$# ,es, is +e,er3ining. In a**#)ing ,he %$&r
%$#+ ,es,, 7LSMC cann$, 'e c$nsi+ere+ an e3*#$)er $% ,he res*$n+en, +$c,$rs. I, has 'een
c$nsis,en,#) he#+ ,ha, in +e,er3ining whe,her an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s
'e,ween ,he *ar,ies, ,he %$##$wing e#e3en,s 3&s, 'e *resen,L =1? se#ec,i$n an+ engage3en, $%
servicesO =!? *a)3en, $% wagesO =? ,he *$wer ,$ hire an+ JreO an+ =.? ,he *$wer ,$ c$n,r$# n$,
$n#) ,he en+ ,$ 'e achieve+, '&, ,he 3eans ,$ 'e &se+ in reaching s&ch an en+. The h$s*i,a#
+$es n$, hire c$ns&#,an,s '&, i, accre+i,s an+ gran,s hi3 ,he *rivi#ege $% 3ain,aining a c#inic
an+B$r a+3i,,ing *a,ien,s. I, is ,he *a,ien, wh$ *a)s ,he c$ns&#,an,s. The h$s*i,a# cann$,
+is3iss ,he c$ns&#,an, '&, he 3a) #$se his *rivi#eges gran,e+ ') ,he h$s*i,a#. The h$s*i,a#Gs
$'#iga,i$n is #i3i,e+ ,$ *r$vi+ing ,he *a,ien, wi,h ,he *re%erre+ r$$3 acc$33$+a,i$n an+
$,her ,hings ,ha, wi## ens&re ,ha, ,he +$c,$rGs $r+ers are carrie+ $&,. The c$&r, Jn+s ,ha, ,here
is n$ e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween ,he +$c,$rs an+ ,he h$s*i,a#.
). Son0a vs. A'S1C'N, G.R. No. 13-".1, 2une 1", 2""*
9ac,sL
In Ma) 199., ABS5CBN signe+ an agree3en, wi,h ,he Me# an+ 6a) Manage3en, an+
7eve#$*3en, C$r*$ra,i$n =M6M7C?. ABS5CBN was re*resen,e+ ') i,s c$r*$ra,e $Icers whi#e
M6M7C was re*resen,e+ ') S$n4a, as Presi+en, an+ genera# 3anager, an+ Tiangc$ as i,s E8P
an+ ,reas&rer. Re%erre+ ,$ in ,he agree3en, as agen,, M6M7C agree+ ,$ *r$vi+e S$n4aGs
services eFc#&sive#) ,$ ABS5CBN as ,a#en, %$r ra+i$ an+ ,e#evisi$n. ABS5CBN agree+ ,$ *a)
S$n4a a 3$n,h#) ,a#en, %ee $% P1(, ((( %$r ,he Jrs, )ear an+ P1", ((( %$r ,he sec$n+ an+
,hir+ )ear. :n A*ri# 199-, S$n4a wr$,e a #e,,er ,$ ABS5CBN where he irrev$ca'#) resigne+ in
view $% ,he recen, even,s c$ncerning his *r$gra3 an+ career. A%,er ,he sai+ #e,,er, S$n4a J#e+
wi,h ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en, a c$3*#ain, a##eging ,ha, ABS5CBN +i+ n$, *a)
his sa#aries, se*ara,i$n *a), service incen,ive *a),1
,h
3$n,h *a), signing '$n&s, ,rave#
a##$wance an+ a3$&n,s &n+er ,he E3*#$)ees S,$c< :*,i$n P#an =ES:P?. ABS5CBN c$n,en+e+
,ha, n$ e3*#$)ee5e3*#$)er re#a,i$nshi* eFis,e+ 'e,ween ,he *ar,ies. H$wever, ABS5CBN
c$n,in&e+ ,$ re3i, S$n4aGs 3$n,h#) ,a#en, %ees '&, $*ene+ an$,her acc$&n, %$r ,he sa3e
*&r*$se.
The La'$r Ar'i,er +is3isse+ ,he c$3*#ain, an+ %$&n+ ,ha, ,here is n$ e3*#$)ee5e3*#$)er
re#a,i$nshi*. NLRC aIr3e+ ,he +ecisi$n $% ,he La'$r Ar'i,er. CA a#s$ aIr3e+ ,he +ecisi$n $%
NLRC.
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Case #aw has c$nsis,en,#) he#+ ,ha, ,he e#e3en,s $% an e3*#$)ee5e3*#$)er re#a,i$nshi* are
se#ec,i$n an+ engage3en, $% ,he e3*#$)ee, ,he *a)3en, $% wages, ,he *$wer $% +is3issa#
an+ ,he e3*#$)erGs *$wer ,$ c$n,r$# ,he e3*#$)ee $n ,he 3eans an+ 3e,h$+s ') which ,he
w$r< is acc$3*#ishe+. The #as, e#e3en,, ,he s$5ca##e+ Pc$n,r$# ,es,P, is ,he 3$s, i3*$r,an,
e#e3en,. S$n4aGs services ,$ c$5h$s, i,s ,e#evisi$n an+ ra+i$ *r$gra3s are 'eca&se $% his
*ec&#iar ,a#en,s, s<i##s an+ ce#e'ri,) s,a,&s. In+e*en+en, c$n,rac,$rs $%,en *resen, ,he3se#ves
,$ *$ssess &niA&e s<i##s, eF*er,ise $r ,a#en, ,$ +is,ing&ish ,he3 %r$3 $r+inar) e3*#$)ees. The
s*eciJc se#ec,i$n an+ hiring $% S:NQA, 'eca&se $% his &niA&e s<i##s, ,a#en, an+ ce#e'ri,) s,a,&s
n$, *$ssesse+ ') $r+inar) e3*#$)ees, is a circ&3s,ance in+ica,ive, '&, n$, c$nc#&sive, $% an
Page 2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
in+e*en+en, c$n,rac,&a# re#a,i$nshi*. A## ,he ,a#en, %ees an+ 'eneJ,s *ai+ ,$ S:NQA were ,he
res&#, $% neg$,ia,i$ns ,ha, #e+ ,$ ,he Agree3en,. 9$r vi$#a,i$n $% an) *r$visi$n $% ,he
Agree3en,, ei,her *ar,) 3a) ,er3ina,e ,heir re#a,i$nshi*. A**#)ing ,he c$n,r$# ,es, ,$ ,he
*resen, case, we Jn+ ,ha, S:NQA is n$, an e3*#$)ee '&, an in+e*en+en, c$n,rac,$r.
The c$n,r$# ,es, is ,he 3$s, i3*$r,an, ,es, $&r c$&r,s a**#) in +is,ing&ishing an e3*#$)ee %r$3
an in+e*en+en, c$n,rac,$r. This ,es, is 'ase+ $n ,he eF,en, $% c$n,r$# ,he hirer eFercises $ver
a w$r<er. The grea,er ,he s&*ervisi$n an+ c$n,r$# ,he hirer eFercises, ,he 3$re #i<e#) ,he
w$r<er is +ee3e+ an e3*#$)ee. The c$nverse h$#+s ,r&e as we## R ,he #ess c$n,r$# ,he hirer
eFercises, ,he 3$re #i<e#) ,he w$r<er is c$nsi+ere+ an in+e*en+en, c$n,rac,$r. T$ *er%$r3 his
w$r<, S:NQA $n#) nee+e+ his s<i##s an+ ,a#en,. H$w S:NQA +e#ivere+ his #ines, a**eare+ $n
,e#evisi$n, an+ s$&n+e+ $n ra+i$ were $&,si+e ABS5CBNGs c$n,r$#. ABS5CBN +i+ n$, ins,r&c,
S:NQA h$w ,$ *er%$r3 his E$'. ABS5CBN 3ere#) reserve+ ,he righ, ,$ 3$+i%) ,he *r$gra3
%$r3a, an+ air,i3e sche+&#e P%$r 3$re eKec,ive *r$gra33ing.P ABS5CBNGs s$#e c$ncern was
,he A&a#i,) $% ,he sh$ws an+ ,heir s,an+ing in ,he ra,ings. C#ear#), ABS5CBN +i+ n$, eFercise
c$n,r$# $ver ,he 3eans an+ 3e,h$+s $% *er%$r3ance $% S$n4aGs w$r<. A ra+i$ 'r$a+cas,
s*ecia#is, wh$ w$r<s &n+er 3ini3a# s&*ervisi$n is an in+e*en+en, c$n,rac,$r. S$n4aGs w$r< as
,e#evisi$n an+ ra+i$ *r$gra3 h$s, reA&ire+ s*ecia# s<i##s an+ ,a#en,, which S:NQA a+3i,,e+#)
*$ssesses. ABS5CBN c#ai3s ,ha, ,here eFis,s a *revai#ing *rac,ice in ,he 'r$a+cas, an+
en,er,ain3en, in+&s,ries ,$ ,rea, ,a#en,s #i<e S$n4a as in+e*en+en, c$n,rac,$rs. The righ, $%
#a'$r ,$ sec&ri,) $% ,en&re as g&aran,ee+ in ,he C$ns,i,&,i$n

arises $n#) i% ,here is an e3*#$)er5
e3*#$)ee re#a,i$nshi* &n+er #a'$r #aws. In+ivi+&a#s wi,h s*ecia# s<i##s, eF*er,ise $r ,a#en, enE$)
,he %ree+$3 ,$ $Ker ,heir services as in+e*en+en, c$n,rac,$rs. The righ, ,$ #i%e an+ #ive#ih$$+
g&aran,ees ,his %ree+$3 ,$ c$n,rac, as in+e*en+en, c$n,rac,$rs. The righ, $% #a'$r ,$ sec&ri,)
$% ,en&re cann$, $*era,e ,$ +e*rive an in+ivi+&a#, *$ssesse+ wi,h s*ecia# s<i##s, eF*er,ise an+
,a#en,, $% his righ, ,$ c$n,rac, as an in+e*en+en, c$n,rac,$r.
7. La0aro vs. Social Securi($ Co//ission, *3. SCRA *72 +2""*,
9ac,sL
Res*$n+en, R$sa#ina M. La&+a,$ J#e+ a *e,i,i$n 'e%$re ,he SSC %$r s$cia# sec&ri,) c$verage
an+ re3i,,ance $% &n*ai+ 3$n,h#) s$cia# sec&ri,) c$n,ri'&,i$ns agains, her ,hree =?
e3*#$)ers. A3$ng ,he res*$n+en,s was herein *e,i,i$ner Ange#i,$ L. La4ar$, *r$*rie,$r $%
R$)a# S,ar Mar<e,ing =MR$)a# S,arN?, which is engage+ in ,he '&siness $% se##ing h$3e
a**#iances. La4ar$ +enie+ ,ha, La&+a,$ was an e3*#$)ee '&, ins,ea+ c#ai3e+ ,ha, she was an
agen, $% ,he c$3*an). La4ar$ a#s$ 3ain,aine+ ,ha, she was n$, 3an+a,e+ ,$ w$r< $% +eJni,e
w$r< h$&rs an+ ,h&s n$, +ee3e+ ,$ 'e a reg&#ar e3*#$)ee $% R$)a# S,ar Mar<e,ing, ,he
c$3*an) $% La4ar$.
SSC *r$3&#ga,e+ a +ecisi$n ren+ering ,ha, La&+a,$ is a reg&#ar e3*#$)ee $% R$)a# S,ar
Mar<e,ing an+ en,i,#e+ ,$ s$cia# sec&ri,) c$n,ri'&,i$ns. La4ar$ J#e+ a *e,i,i$n %$r review 'e%$re
,he CA where CA r&#e+ ,ha, La&+a,$ was an e3*#$)ee $% R$)a# S,ar Mar<e,ing. This *e,i,i$n
'e%$re ,he C$&r, assai#s sa3e arg&3en,s raise+ ') La4ar$ in SSC. She raise+ ,ha, La&+a,$ was
n$, an e3*#$)ee $% R$)a# S,ar Mar<e,ing since R$)a# S,ar ha+ n$ c$n,r$# $ver ,he ac,ivi,ies $%
La&+a,$. 9$r ,he *&r*$se $% +e,er3ining whe,her ,he res*$n+en, is en,i,#e+ ,$ s$cia# sec&ri,)
c$n,ri'&,i$ns, i, 3&s, 'e sh$wn ,ha, La&+a,$ was a reg&#ar e3*#$)ee $% R$)a# S,ar Mar<e,ing.
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LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
I, is an acce*,e+ +$c,rine ,ha, %$r ,he *&r*$ses $% c$verage &n+er ,he S$cia# Sec&ri,) Ac,, ,he
+e,er3ina,i$n $% e3*#$)er5e3*#$)ee re#a,i$nshi* warran,s ,he a**#ica,i$n $% ,he Mc$n,r$#
,es,,N ,ha, is, whe,her ,he e3*#$)er c$n,r$#s $r has reserve+ ,he righ, ,$ c$n,r$# ,he e3*#$)ee,
n$, $n#) as ,$ ,he res&#, $% ,he w$r< +$ne, '&, a#s$ as ,$ ,he 3eans an+ 3e,h$+s ') which ,he
sa3e is acc$3*#ishe+. The SSC, a**#)ing ,he c$n,r$# ,es, %$&n+ ,ha, La&+a,$ was an e3*#$)ee
$% R$)a# S,ar. The C$&r, agrees wi,h ,he Jn+ings $% ,he SSC an+ ,he CA. The %ac, ,ha, La&+a,$
was *ai+ ') wa) $% c$33issi$n +$es n$, *rec#&+e ,he es,a'#ish3en, $% an e3*#$)er5e3*#$)ee
re#a,i$nshi*.
In ,he case $% Gre*a#i%e v. 6&+ic$, ,he C$&r, &*he#+ ,he eFis,ence $% an e3*#$)er5e3*#$)ee
re#a,i$nshi* 'e,ween ,he ins&rance c$3*an) an+ i,s agen,s, +es*i,e ,he %ac, ,ha, ,he
c$3*ensa,i$n ,ha, ,he agen,s $n c$33issi$n receive+ was n$, *ai+ ') ,he c$3*an) '&, ')
,he inves,$r $r ,he *ers$n ins&re+. The re#evan, %ac,$r re3ains, as s,a,e+ ear#ier, whe,her ,he
Pe3*#$)erP c$n,r$#s $r has reserve+ ,he righ, ,$ c$n,r$# ,he Pe3*#$)eeP n$, $n#) as ,$ ,he
res&#, $% ,he w$r< ,$ 'e +$ne '&, a#s$ as ,$ ,he 3eans an+ 3e,h$+s ') which ,he sa3e is ,$
'e acc$3*#ishe+. Nei,her +$es i, %$##$w ,ha, a *ers$n wh$ +$es n$, $'serve n$r3a# h$&rs $%
w$r< cann$, 'e +ee3e+ an e3*#$)ee.
In ,he case $% C$s3$*$#i,an 9&nera# H$3es, Inc. v. Maa#a,, ,he e3*#$)er si3i#ar#) +enie+ ,he
eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, as ,he c#ai3an, acc$r+ing ,$ i,, was a
Ms&*ervis$r $n c$33issi$n 'asisN wh$ +i+ n$, $'serve n$r3a# h$&rs $% w$r<. This C$&r,
+ec#are+ ,ha, ,here was an e3*#$)er5e3*#$)ee re#a,i$nshi*, n$,ing ,ha, M/,he0 s&*ervis$r,
a#,h$&gh c$3*ensa,e+ $n c$33issi$n 'asis, /is0 eFe3*, %r$3 ,he $'servance $% n$r3a# h$&rs
$% w$r< %$r his c$3*ensa,i$n is 3eas&re+ ') ,he n&3'er $% sa#es he 3a<es.N
-. 3hil. Gloal Co//unica(ions v. 4e 5era, *.9 SCRA 2)" +2"".,
9ac,sL
Phi#i**ine G#$'a# C$33&nica,i$ns inc. is a c$r*$ra,i$n engage+ in ,he '&siness $%
c$33&nica,i$n services an+ a##ie+ ac,ivi,ies whi#e Ricar+$ +e 8era is a *h)sician ') *r$%essi$n
wh$3 *e,i,i$ner en#is,e+ ,$ a,,en+ ,$ ,he 3e+ica# nee+s $% i,s e3*#$)ees. The c$n,r$vers)
r$se when *e,i,i$ner ,er3ina,e+ his engage3en,.
In 1911, 7r. +e 8era $Kere+ his services ,$ *e,i,i$ner. The *ar,ies agree+ an+ %$r3a#i4e+ ,he
res*$n+en,Gs *r$*$sa# in a +$c&3en, +en$3ina,e+ as re,ainershi* c$n,rac, which wi## 'e %$r a
*eri$+ $% $ne )ear, s&'Eec, ,$ renewa# an+ c#ear#) s,a,e+ ,ha, res*$n+en, wi## c$ver ,he
re,ainershi* ,he c$3*an) *revi$&s#) wi,h 7r. E&#a&. The agree3en, wen, &n,i# 199., in ,he
)ears 19925199-, i, was renewe+ ver'a##). The ,&rning *$in, $% ,he *ar,iesG re#a,i$nshi* was
when *e,i,i$ner, ,hr& a #e,,er 'earing ,he s&'Eec, TERMINATI:N R RETAINERSHIP C:NTRACT,
in%$r3e+ 7r. +e 8era $% i,s +ecisi$n ,$ +isc$n,in&e ,he #a,,erGs re,ainer c$n,rac, 'eca&se ,he
3anage3en, has +eci+e+ ,ha, i, w$&#+ 'e 3$re *rac,ica# ,$ *r$vi+e 3e+ica# services ,$ i,s
e3*#$)ees ,hr$&gh accre+i,e+ h$s*i,a#s near ,he c$3*an) *re3ises.
:n 6an&ar) 199", +e 8era J#e+a c$3*#ain, %$r i##ega# +is3issa# 'e%$re ,he NLRC, a##eging ,ha,
he ha+ 'een ac,&a##) e3*#$)e+ ') ,he c$3*an) as i,s c$3*an) *h)sician since 1991. The
c$33issi$n ren+ere+ +ecisi$n in %av$r $% Phi#c$3 an+ +is3isse+ ,he c$3*#ain, sa)ing ,ha, +e
8era was an in+e*en+en, c$n,rac,$r. :n a**ea# ,$ NLRC, i, reverse+ ,he +ecisi$n $% ,he La'$r
Ar'i,er s,a,ing ,ha, +e 8era is a reg&#ar e3*#$)ee an+ +irec,e+ ,he c$3*an) ,$ reins,a,e hi3.
Phi#c$3 a**ea#e+ ,$ ,he CA where i, ren+ere+ +ecisi$n +e#e,ing ,he awar+ '&, reins,a,ing +e
Page "
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
8era. Phi#c$3 J#e+ ,his *e,i,i$n inv$#ving ,he +iKerence $% a E$' c$n,rac,ing agree3en,s %r$3
e3*#$)ee5e3*#$)er re#a,i$nshi*.
Iss&eL
Whe,her $r n$, ,here is an e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween ,he *ar,ies.
SC R&#ingL
The e#e3en,s $% an e3*#$)er5e3*#$)ee re#a,i$nshi* is wan,ing in ,his case. The rec$r+ are
re*#e,e wi,h evi+ence sh$wing ,ha, res*$n+en, ha+ ,$ 'i## *e,i,i$ner %$r his 3$n,h#)
*r$%essi$na# %ees. I, si3*#) r&ns agains, ,he grain $% c$33$n eF*erience ,$ i3agine ,ha, an
$r+inar) e3*#$)ee has )e, ,$ 'i## his e3*#$)er ,$ receive his sa#ar).
The *$wer ,$ ,er3ina,e ,he *ar,iesG re#a,i$nshi* was 3&,&a##) ves,e+ $n '$,h. Ei,her 3a)
,er3ina,e ,he arrange3en, a, wi##, wi,h $r wi,h$&, ca&se.
Re3ar<a'#) a'sen, is ,he e#e3en, $% c$n,r$# where') ,he e3*#$)er has reserve+ ,he righ, ,$
c$n,r$# ,he e3*#$)ee n$, $n#) as ,$ ,he res&#, $% ,he w$r< +$ne '&, a#s$ as ,$ ,he 3eans an+
3e,h$+s ') which ,he sa3e is ,$ 'e acc$3*#ishe+.
Pe,i,i$ner ha+ n$ c$n,r$# $ver ,he 3eans an+ 3e,h$+s ') which res*$n+en, wen, a'$&,
*er%$r3ing his w$r< a, ,he c$3*an) *re3ises. In Jne, ,he *ar,ies ,he3se#ves *rac,ica##)
agree+ $n ever) ,er3s an+ c$n+i,i$ns $% ,he engage3en,, which ,here') nega,es ,he e#e3en,
$% c$n,r$# in ,heir re#a,i$nshi*.
9. A'S1C'N vs. Na0areno, G.R. No. 1)*1.), Se%(. 2), 2"")
9ac,sL
Pe,i,i$ner ABS5CBN Br$a+cas,ing C$r*$ra,i$n =ABS5CBN? is engage+ in ,he 'r$a+cas,ing
'&siness an+ $wns a ne,w$r< $% ,e#evisi$n an+ ra+i$ s,a,i$ns, wh$se $*era,i$ns rev$#ve
ar$&n+ ,he 'r$a+cas,, ,rans3issi$n, an+ re#a) $% ,e#ec$33&nica,i$n signa#s. I, se##s an+ +ea#s
in $r $,herwise &,i#i4es ,he air,i3e i, genera,es %r$3 i,s ra+i$ an+ ,e#evisi$n $*era,i$ns. I, has
a %ranchise as a 'r$a+cas,ing c$3*an), an+ was #i<ewise iss&e+ a #icense an+ a&,h$ri,) ,$
$*era,e ') ,he Na,i$na# Te#ec$33&nica,i$ns C$33issi$n. Pe,i,i$ner e3*#$)e+ res*$n+en,s
Na4aren$, Ger4$n, 7ei*arine, an+ Lerasan as *r$+&c,i$n assis,an,s =PAs? $n +iKeren, +a,es.
The) were assigne+ a, ,he news an+ *&'#ic aKairs, %$r vari$&s ra+i$ *r$gra3s in ,he Ce'&
Br$a+cas,ing S,a,i$n. :n 7ece3'er 19, 199-, *e,i,i$ner an+ ,he ABS5CBN Ran<5an+59i#e
E3*#$)ees eFec&,e+ a C$##ec,ive Bargaining Agree3en, =CBA? ,$ 'e eKec,ive +&ring ,he
*eri$+ %r$3 7ece3'er 11, 199- ,$ 7ece3'er 11, 1999. H$wever, since *e,i,i$ner re%&se+ ,$
rec$gni4e PAs as *ar, $% ,he 'argaining &ni,, res*$n+en,s were n$, inc#&+e+ ,$ ,he CBA. :n
:c,$'er 1!, !(((, res*$n+en,s J#e+ a C$3*#ain, %$r Rec$gni,i$n $% Reg&#ar E3*#$)3en,
S,a,&s, >n+er*a)3en, $% :ver,i3e Pa), H$#i+a) Pa), Pre3i&3 Pa), Service Incen,ive Pa), Sic<
Leave Pa), an+ 1,h M$n,h Pa) wi,h 7a3ages agains, ,he *e,i,i$ner 'e%$re ,he NLRC.
The La'$r Ar'i,er ren+ere+ E&+g3en, in %av$r $% ,he res*$n+en,s, an+ +ec#are+ ,ha, ,he) were
reg&#ar e3*#$)ees $% *e,i,i$ner as s&ch, ,he) were awar+e+ 3$ne,ar) 'eneJ,s. NLRC aIr3e+
,he +ecisi$n $% ,he La'$r Ar'i,er. Pe,i,i$ner J#e+ a 3$,i$n %$r rec$nsi+era,i$n '&, CA +is3isse+
i,. The iss&e inv$#ve+ is whe,her ,he res*$n+en,s were c$nsi+ere+ reg&#ar e3*#$)ees $% ABS5
CBN.
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R&#ingL
The res*$n+en,s are reg&#ar e3*#$)ees $% ABS5CBN. I, was he#+ ,ha, where a *ers$n has
ren+ere+ a, #eas, $ne )ear $% service, regar+#ess $% ,he na,&re $% ,he ac,ivi,) *er%$r3e+, $r
where ,he w$r< is c$n,in&$&s $r in,er3i,,en,, ,he e3*#$)3en, is c$nsi+ere+ reg&#ar as #$ng as
,he ac,ivi,) eFis,s, ,he reas$n 'eing ,ha, a c&s,$3ar) a**$in,3en, is n$, in+is*ensa'#e 'e%$re
$ne 3a) 'e %$r3a##) +ec#are+ as having a,,aine+ reg&#ar s,a,&s. In >niversa# R$'ina
C$r*$ra,i$n v. Ca,a*ang, ,he C$&r, s,a,es ,ha, ,he *ri3ar) s,an+ar+, ,here%$re, $% +e,er3ining
reg&#ar e3*#$)3en, is ,he reas$na'#e c$nnec,i$n 'e,ween ,he *ar,ic&#ar ac,ivi,) *er%$r3e+
') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a# ,ra+e $r '&siness $% ,he e3*#$)er. The ,es, is whe,her
,he %$r3er is &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er.
The c$nnec,i$n can 'e +e,er3ine+ ') c$nsi+ering ,he na,&re $% w$r< *er%$r3e+ an+ i,s
re#a,i$n ,$ ,he sche3e $% ,he *ar,ic&#ar '&siness $r ,ra+e in i,s en,ire,). A#s$, i% ,he e3*#$)ee
has 'een *er%$r3ing ,he E$' %$r a, #eas, a )ear, even i% ,he *er%$r3ance is n$, c$n,in&$&s an+
3ere#) in,er3i,,en,, ,he #aw +ee3s re*ea,e+ an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as
s&Icien, evi+ence $% ,he necessi,) i% n$, in+is*ensa'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness.
Hence, ,he e3*#$)3en, is c$nsi+ere+ reg&#ar, '&, $n#) wi,h res*ec, ,$ s&ch ac,ivi,) an+ whi#e
s&ch ac,ivi,) eFis,s.
A++i,i$na##), res*$n+en,s cann$, 'e c$nsi+ere+ as *r$Eec, $r *r$gra3 e3*#$)ees 'eca&se n$
evi+ence was *resen,e+ ,$ sh$w ,ha, ,he +&ra,i$n an+ sc$*e $% ,he *r$Eec, were +e,er3ine+
$r s*eciJe+ a, ,he ,i3e $% ,heir engage3en,. In ,he case a, 'ar, h$wever, ,he e3*#$)er5
e3*#$)ee re#a,i$nshi* 'e,ween *e,i,i$ner an+ res*$n+en,s has 'een *r$ven. In ,he se#ec,i$n
an+ engage3en, $% res*$n+en,s, n$ *ec&#iar $r &niA&e s<i##, ,a#en, $r ce#e'ri,) s,a,&s was
reA&ire+ %r$3 ,he3 'eca&se ,he) were 3ere#) hire+ ,hr$&gh *e,i,i$nerGs *ers$nne#
+e*ar,3en, E&s, #i<e an) $r+inar) e3*#$)ee. Res*$n+en,s +i+ n$, have ,he *$wer ,$ 'argain
%$r h&ge ,a#en, %ees, a circ&3s,ance nega,ing in+e*en+en, c$n,rac,&a# re#a,i$nshi*.
Res*$n+en,s are high#) +e*en+en, $n ,he *e,i,i$ner %$r c$n,in&e+ w$r<. The +egree $% c$n,r$#
an+ s&*ervisi$n eFercise+ ') *e,i,i$ner $ver res*$n+en,s ,hr$&gh i,s s&*ervis$rs nega,es ,he
a##ega,i$n ,ha, res*$n+en,s are in+e*en+en, c$n,rac,$rs.
The *res&3*,i$n is ,ha, when ,he w$r< +$ne is an in,egra# *ar, $% ,he reg&#ar '&siness $% ,he
e3*#$)er an+ when ,he w$r<er, re#a,ive ,$ ,he e3*#$)er, +$es n$, %&rnish an in+e*en+en,
'&siness $r *r$%essi$na# service, s&ch w$r< is a reg&#ar e3*#$)3en, $% s&ch e3*#$)ee an+ n$,
an in+e*en+en, c$n,rac,$r. As reg&#ar e3*#$)ees, res*$n+en,s are en,i,#e+ ,$ ,he 'eneJ,s
gran,e+ ,$ a## $,her reg&#ar e3*#$)ees $% *e,i,i$ner &n+er ,he CBA . Besi+es, $n#) ,a#en,5
ar,is,s were eFc#&+e+ %r$3 ,he CBA an+ n$, *r$+&c,i$n assis,an,s wh$ are reg&#ar e3*#$)ees
$% ,he res*$n+en,s. M$re$ver, &n+er Ar,ic#e 1"(! $% ,he New Civi# C$+eL MIn case $% +$&',, a##
#a'$r #egis#a,i$n an+ a## #a'$r c$n,rac,s sha## 'e c$ns,r&e+ in %av$r $% ,he sa%e,) an+ +ecen,
#iving $% ,he #a'$rer.N
1". 6rancisco vs. NLRC, ."" SCRA )9" +2""),
9ac,sL

Pe,i,$ner was hire+ ') Hasei C$r*$ra,i$n +&ring ,he inc$r*$ra,i$n s,age. She was +esigna,e+
as acc$&n,an, an+ c$r*$ra,e secre,ar) an+ was assigne+ ,$ han+#e a## ,he acc$&n,ing nee+s $%
,he c$3*an). She was a#s$ +esigna,e+ as Lias$n :Icer ,$ ,he Ci,) $% Mani#a ,$ sec&re *er3i,s
%$r ,he $*era,i$n $% ,he c$3*an).In 199-, Pe,i,i$ner was +esigna,e+ as Ac,ing Manager. She
was assigne+ ,$ han+#e recr&i,3en, $% a## e3*#$)ees an+ *er%$r3 3anage3en, a+3inis,ra,i$n
%&nc,i$ns. In !((1, she was re*#ace+ ') Li4a 9&en,es as Manager. Hasei C$r*$ra,i$n re+&ce+
Page 9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
her sa#ar) ,$ P!,2(( *er 3$n,h which was &n,i# Se*,e3'er. She as<e+ %$r her sa#ar) '&, was
in%$r3e+ ,ha, she was n$ #$nger c$nnec,e+ ,$ ,he c$3*an). She +i+ n$, an)3$re re*$r, ,$
w$r< since she was n$, *ai+ %$r her sa#ar). She J#e+ an ac,i$n %$r c$ns,r&c,ive +is3issa# wi,h
,he La'$r Ar'i,er. The La'$r Ar'i,er %$&n+ ,ha, ,he *e,i,i$ner was i##ega##) +is3isse+. NLRC
aIr3e+ ,he +ecisi$n whi#e CA reverse+ i,.

The %$##$wing iss&e is ,$ 'e +isc&sse+, whe,her ,here was an e3*#$)er5e3*#$)ee re#a,i$nshi*.
R&#ingL
The c$&r, he#+ ,ha, in ,his E&ris+ic,i$n, ,here has 'een n$ &ni%$r3 ,es, ,$ +e,er3ine ,he
eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$n. Genera##), c$&r,s have re#ie+ $n ,he s$5ca##e+
righ, $% c$n,r$# ,es, where ,he *ers$n %$r wh$3 ,he services are *er%$r3e+ reserves a righ, ,$
c$n,r$# n$, $n#) ,he en+ ,$ 'e achieve+ '&, a#s$ ,he 3eans ,$ 'e &se+ in reaching s&ch en+.
In a++i,i$n ,$ ,he s,an+ar+ $% righ,5$%5c$n,r$#, ,he eFis,ing ec$n$3ic c$n+i,i$ns *revai#ing
'e,ween ,he *ar,ies, #i<e ,he inc#&si$n $% ,he e3*#$)ee in ,he *a)r$##s, can he#* in +e,er3ining
,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*. The 'e,,er a**r$ach w$&#+ ,here%$re 'e
,$ a+$*, a ,w$5,iere+ ,es, inv$#vingL =1? ,he *&,a,ive e3*#$)erGs *$wer ,$ c$n,r$# ,he
e3*#$)ee wi,h res*ec, ,$ ,he 3eans an+ 3e,h$+s ') which ,he w$r< is ,$ 'e acc$3*#ishe+O
an+ =!? ,he &n+er#)ing ec$n$3ic rea#i,ies $% ,he ac,ivi,) $r re#a,i$nshi*. In Sevilla v. Court of
Appeals, ,he c$&r, $'serve+ ,he nee+ ,$ c$nsi+er ,he eFis,ing ec$n$3ic c$n+i,i$ns *revai#ing
'e,ween ,he *ar,ies, in a++i,i$n ,$ ,he s,an+ar+ $% righ,5$%5c$n,r$# #i<e ,he inc#&si$n $% ,he
e3*#$)ee in ,he *a)r$##s, ,$ give a c#earer *ic,&re in +e,er3ining ,he eFis,ence $% an
e3*#$)er5e3*#$)ee re#a,i$nshi* 'ase+ $n an ana#)sis $% ,he ,$,a#i,) $% ec$n$3ic
circ&3s,ances $% ,he w$r<er.
Th&s, ,he +e,er3ina,i$n $% ,he re#a,i$nshi* 'e,ween e3*#$)er an+ e3*#$)ee +e*en+s &*$n
,he circ&3s,ances $% ,he wh$#e ec$n$3ic ac,ivi,), s&ch asL =1? ,he eF,en, ,$ which ,he
services *er%$r3e+ are an in,egra# *ar, $% ,he e3*#$)erGs '&sinessO =!? ,he eF,en, $% ,he
w$r<erGs inves,3en, in eA&i*3en, an+ %aci#i,iesO =? ,he na,&re an+ +egree $% c$n,r$# eFercise+
') ,he e3*#$)erO =.? ,he w$r<erGs $**$r,&ni,) %$r *r$J, an+ #$ssO =2? ,he a3$&n, $% ini,ia,ive,
s<i##, E&+g3en, $r %$resigh, reA&ire+ %$r ,he s&ccess $% ,he c#ai3e+ in+e*en+en, en,er*riseO =-?
,he *er3anenc) an+ +&ra,i$n $% ,he re#a,i$nshi* 'e,ween ,he w$r<er an+ ,he e3*#$)erO an+
="? ,he +egree $% +e*en+enc) $% ,he w$r<er &*$n ,he e3*#$)er %$r his c$n,in&e+ e3*#$)3en,
in ,ha, #ine $% '&siness. The *r$*er s,an+ar+ $% ec$n$3ic +e*en+ence is whe,her ,he w$r<er is
+e*en+en, $n ,he a##ege+ e3*#$)er %$r his c$n,in&e+ e3*#$)3en, in ,ha, #ine $% '&siness.
B) a**#)ing ,he c$n,r$# ,es,, ,here is n$ +$&', ,ha, *e,i,i$ner is an e3*#$)ee $% Hasei
C$r*$ra,i$n 'eca&se she was &n+er ,he +irec, c$n,r$# an+ s&*ervisi$n $% SeiEi Ha3&ra, ,he
c$r*$ra,i$nGs Technica# C$ns&#,an,. I, is ,here%$re a**aren, ,ha, *e,i,i$ner is ec$n$3ica##)
+e*en+en, $n Res*$n+en, C$r*$ra,i$n %$r her c$n,in&e+ e3*#$)3en, in ,he #a,,erGs #ine $%
'&siness. There can 'e n$ $,her c$nc#&si$n ,ha, *e,i,i$ner is an e3*#$)ee $% res*$n+en, Hasei
C$r*$ra,i$n. She was se#ec,e+ an+ engage+ ') ,he c$3*an) %$r c$3*ensa,i$n, an+ is
ec$n$3ica##) +e*en+en, &*$n res*$n+en, %$r her c$n,in&e+ e3*#$)3en, in ,ha, #ine $%
'&siness. Her 3ain E$' %&nc,i$n inv$#ve+ acc$&n,ing an+ ,aF services ren+ere+ ,$ Res*$n+en,
C$r*$ra,i$n $n a reg&#ar 'asis $ver an in+eJni,e *eri$+ $% engage3en,. Res*$n+en,
C$r*$ra,i$n hire+ an+ engage+ *e,i,i$ner %$r c$3*ensa,i$n, wi,h ,he *$wer ,$ +is3iss her %$r
ca&se. M$re i3*$r,an,#), Res*$n+en, C$r*$ra,i$n ha+ ,he *$wer ,$ c$n,r$# *e,i,i$ner wi,h ,he
3eans an+ 3e,h$+s ') which ,he w$r< is ,$ 'e acc$3*#ishe+.
Page 1(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
11. Nogales e(. al., vs. Ca%i(ol Me&ical Cen(er e( al., G.R. No. 1*2)2., 4ece/er 19,
2"")
9ac,sL
Pregnan, wi,h her %$&r,h chi#+, C$ra4$n N$ga#es, wh$ was ,hen " )ears $#+, was &n+er ,he
eFc#&sive *rena,a# care $% 7r. :scar Es,ra+a. Whi#e C$ra4$n was $n her #as, ,ri3es,er $%
*regnanc), 7r. Es,ra+a n$,e+ an increase in her '#$$+ *ress&re an+ +eve#$*3en, $% #eg e+e3a
in+ica,ing *reec#a3*sia, which is a +anger$&s c$3*#ica,i$n $% *regnanc). Ar$&n+ 3i+nigh, $%
!2 Ma) 19"-, C$ra4$n s,ar,e+ ,$ eF*erience 3i#+ #a'$r *ains *r$3*,ing C$ra4$n an+ R$ge#i$
N$ga#es =PS*$&ses N$ga#esP? ,$ see 7r. Es,ra+a a, his h$3e. A%,er eFa3ining C$ra4$n, 7r.
Es,ra+a a+vise+ her i33e+ia,e a+3issi$n ,$ ,he Ca*i,$# Me+ica# Cen,er =PCMCP?. 7&e ,$ ,he
inc#e3en, wea,her ,hen, 7r. Es*in$#a, wh$ was %e,che+ %r$3 his resi+ence ') an a3'&#ance,
arrive+ a, ,he CMC a'$&, an h$&r #a,er $r a, 9L(( a.3. He eFa3ine+ ,he *a,ien, an+ $r+ere+
s$3e res&sci,a,ive 3eas&res ,$ 'e a+3inis,ere+. 7es*i,e 7r. Es*in$#aSs eK$r,s, C$ra4$n +ie+
a, 9L12 a.3. The ca&se $% +ea,h was Phe3$rrhage, *$s, *ar,&3.P Iss&e in ,his case is whe,her
CMC is vicari$&s#) #ia'#e %$r ,he neg#igence $% 7r. Es,ra+a.
R&#ingL
The res$#&,i$n $% ,his iss&e res,s, $n ,he $,her han+, $n ,he ascer,ain3en, $% ,he re#a,i$nshi*
'e,ween 7r. Es,ra+a an+ CMC. The C$&r, a#s$ 'e#ieves ,ha, a +e,er3ina,i$n $% ,he eF,en, $%
#ia'i#i,) $% ,he $,her res*$n+en,s is inevi,a'#e ,$ Jna##) an+ c$3*#e,e#) +is*$se $% ,he *resen,
c$n,r$vers). A%,er a ,h$r$&gh eFa3ina,i$n $% ,he v$#&3in$&s rec$r+s $% ,his case, ,he C$&r,
Jn+s n$ sing#e evi+ence *$in,ing ,$ CMCSs eFercise $% c$n,r$# $ver 7r. Es,ra+aSs ,rea,3en, an+
3anage3en, $% C$ra4$nSs c$n+i,i$n. I, is &n+is*&,e+ ,ha, ,hr$&gh$&, C$ra4$nSs *regnanc),
she was &n+er ,he eFc#&sive *rena,a# care $% 7r. Es,ra+a. A, ,he ,i3e $% C$ra4$nSs a+3issi$n a,
CMC an+ +&ring her +e#iver), i, was 7r. Es,ra+a, assis,e+ ') 7r. 8i##aT$r, wh$ a,,en+e+ ,$
C$ra4$n. There was n$ sh$wing ,ha, CMC ha+ a *ar, in +iagn$sing C$ra4$nSs c$n+i,i$n. Whi#e
7r. Es,ra+a enE$)e+ s,aK *rivi#eges a, CMC, s&ch %ac, a#$ne +i+ n$, 3a<e hi3 an e3*#$)ee $%
CMC. CMC 3ere#) a##$we+ 7r. Es,ra+a ,$ &se i,s %aci#i,ies when C$ra4$n was a'$&, ,$ give
'ir,h, which CMC c$nsi+ere+ an e3ergenc). C$nsi+ering ,hese circ&3s,ances, 7r. Es,ra+a is
n$, an e3*#$)ee $% CMC, '&, an in+e*en+en, c$n,rac,$r. The A&es,i$n n$w is whe,her CMC is
a&,$3a,ica##) eFe3*, %r$3 #ia'i#i,) c$nsi+ering ,ha, 7r. Es,ra+a is an in+e*en+en, c$n,rac,$r5
*h)sician. In genera#, a h$s*i,a# is n$, #ia'#e %$r ,he neg#igence $% an in+e*en+en, c$n,rac,$r5
*h)sician. There is, h$wever, an eFce*,i$n ,$ ,his *rinci*#e. The h$s*i,a# 3a) 'e #ia'#e i% ,he
*h)sician is ,he P$s,ensi'#eP agen, $% ,he h$s*i,a#. This eFce*,i$n is a#s$ <n$wn as ,he
P+$c,rine $% a**aren, a&,h$ri,).PIn ,he ins,an, case, CMC i3*#ie+#) he#+ $&, 7r. Es,ra+a as a
3e3'er $% i,s 3e+ica# s,aK. Thr$&gh CMCSs ac,s, CMC c#$,he+ 7r. Es,ra+a wi,h a**aren,
a&,h$ri,) ,here') #ea+ing ,he S*$&ses N$ga#es ,$ 'e#ieve ,ha, 7r. Es,ra+a was an e3*#$)ee $r
agen, $% CMC. CMC cann$, n$w re*&+ia,e s&ch a&,h$ri,). In ,he *resen, case, ,here is n$
evi+ence $% N&rse 7&3#a$Ss a##ege+ %ai#&re ,$ %$##$w 7r. Es,ra+aSs s*eciJc ins,r&c,i$ns. Even
ass&3ing N&rse 7&3#a$ +eJe+ 7r. Es,ra+aSs $r+er, ,here is n$ sh$wing ,ha, si+e5+ri*
a+3inis,ra,i$n $% he3ace# *r$Fi3a,e#) ca&se+ C$ra4$nSs +ea,h. N$ evi+ence #in<ing C$ra4$nSs
+ea,h an+ ,he a##ege+ wr$ng%&# he3ace# a+3inis,ra,i$n was in,r$+&ce+. There%$re, ,here is n$
'asis ,$ h$#+ N&rse 7&3#a$ #ia'#e %$r neg#igence. The C$&r, Jn+s res*$n+en, CMC vicari$&s#)
#ia'#e %$r ,he neg#igence $% 7r. :scar Es,ra+a.
12. Coca1Cola 'o((lers 3hils., vs. 4r. Cli/aco, G.R. No. 1*)--1, 6eruar$ 1., 2""7
9ac,sL
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
7r. 7ean N. C#i3ac$ is a 3e+ica# +$c,$r wh$ was hire+ ') C$ca5C$#a B$,,#ers Phi#s., Inc. ')
vir,&e $% a Re,ainer Agree3en,. The Re,ainer Agree3en,, which 'egan $n 6an&ar) 1, 1911,
was renewe+ ann&a##). The #as, $ne eF*ire+ $n 7ece3'er 1, 199. 7es*i,e ,he n$n5renewa#
$% ,he Re,ainer Agree3en,, res*$n+en, c$n,in&e+ ,$ *er%$r3 his %&nc,i$ns as c$3*an) +$c,$r
,$ C$ca5C$#a &n,i# he receive+ a #e,,er

+a,e+ March 9, 1992 %r$3 ,he c$3*an) c$nc#&+ing ,heir
re,ainershi* agree3en, eKec,ive ( +a)s %r$3 recei*, ,here$%. 7r. C#i3ac$ inA&ire+ %r$3 ,he
3anage3en, $% ,he c$3*an) whe,her i, was agreea'#e ,$ rec$gni4ing hi3 as a reg&#ar
e3*#$)ee. The 3anage3en, re%&se+ ,$ +$ s$. :n 9e'r&ar) !., 199., res*$n+en, J#e+ a
C$3*#ain, 'e%$re ,he NLRC, Bac$#$+ Ci,), see<ing rec$gni,i$n as a reg&#ar e3*#$)ee $% ,he
c$3*an) an+ *ra)e+ %$r ,he *a)3en, $% a## 'eneJ,s $% a reg&#ar e3*#$)ee. Whi#e ,he
c$3*#ain, was *en+ing 'e%$re ,he La'$r Ar'i,er, res*$n+en, receive+ a #e,,er +a,e+ March 9,
1992 %r$3 Pe,i,i$ner C$3*an) c$nc#&+ing ,heir re,ainershi* agree3en, eKec,ive ,hir,) =(?
+a)s %r$3 recei*, ,here$%.
Iss&eL
Whe,her $r n$, ,here eFis,s an e3*#$)er5e3*#$)ee re#a,i$nshi*.

R&#ingL
The C$&r,, in +e,er3ining ,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, has invaria'#)
a+here+ ,$ ,he %$&r5%$#+ ,es,L =1? ,he se#ec,i$n an+ engage3en, $% ,he e3*#$)eeO =!? ,he
*a)3en, $% wagesO =? ,he *$wer $% +is3issa#O an+ =.? ,he *$wer ,$ c$n,r$# ,he e3*#$)eeGs
c$n+&c,, $r ,he s$5ca##e+ Pc$n,r$# ,es,,P c$nsi+ere+ ,$ 'e ,he 3$s, i3*$r,an, e#e3en,. N$
e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s 'e,ween ,he *ar,ies. TheUc$3*an) #ac<e+ ,he *$wer
$% c$n,r$# $ver ,he *er%$r3ance ') res*$n+en, $% his +&,ies. TheUC$3*rehensive Me+ica#
P#an, which c$n,ains ,he res*$n+en,Gs $'Eec,ives, +&,ies an+ $'#iga,i$ns, +$es n$, ,e##
res*$n+en, Ph$w ,$ c$n+&c, his *h)sica# eFa3ina,i$n, h$w ,$ i33&ni4e, $r h$w ,$ +iagn$se
an+ ,rea, his *a,ien,s, e3*#$)ees $% /*e,i,i$ner0 c$3*an), in each case.P
Neri v. National Labor Relations Commission
UI, is a+3i,,e+ ,ha, 9EBTC iss&e+ a E$' +escri*,i$n which +e,ai#e+ her %&nc,i$ns as a
ra+i$B,e#eF $*era,$r. H$wever, a c&rs$r) rea+ing $% ,he E$' +escri*,i$n sh$ws ,ha, wha, was
s$&gh, ,$ 'e c$n,r$##e+ ') 9EBTC was ac,&a##) ,he en+ res&#, $% ,he ,as<, e.g., ,ha, ,he +ai#)
inc$3ing an+ $&,g$ing ,e#egra*hic ,rans%er $% %&n+s receive+ an+ re#a)e+ ') her, res*ec,ive#),
,a##ies wi,h ,ha, $% ,he regis,er. The g&i+e#ines were #ai+ +$wn 3ere#) ,$ ens&re ,ha, ,he
+esire+ en+ res&#, was achieve+. I, +i+ n$,, h$wever, ,e## Neri h$w ,he ra+i$B,e#eF 3achine
sh$&#+ 'e $*era,e+.N
Thr$&gh ,he C$3*rehensive Me+ica# P#an, *r$vi+e+ g&i+e#ines 3ere#) ,$ ens&re ,ha, ,he en+
res&#, was achieve+, '&, +i+ n$, c$n,r$# ,he 3eans an+ 3e,h$+s ') which res*$n+en,
*er%$r3e+ his assigne+ ,as<s. Li<ewise, ,he a##ega,i$n $% c$3*#ainan, ,ha, since he is $n ca##
a, an),i3e $% ,he +a) an+ nigh, 3a<es hi3 a reg&#ar e3*#$)ee is $K5,angen,. C$3*#ainan,
+$es n$, +is*&,e ,he %ac, ,ha, $&,si+e $% ,he ,w$ =!? h$&rs ,ha, he is reA&ire+ ,$ 'e a,
res*$n+en, c$3*an)Gs *re3ises, he is n$, a, a## %&r,her reA&ire+ ,$ E&s, si, ar$&n+ in ,he
*re3ises an+ wai, %$r an e3ergenc) ,$ $cc&r s$ as ,$ ena'#e hi3 %r$3 &sing s&ch h$&rs %$r
his $wn 'eneJ, an+ a+van,age. In %ac,, c$3*#ainan, 3ain,ains his $wn *riva,e c#inic a,,en+ing
,$ his *riva,e *rac,ice in ,he ci,), where he services his *a,ien,s, 'i##s ,he3 acc$r+ing#) 55 an+
i% i, is an e3*#$)ee $% res*$n+en, c$3*an) wh$ is a,,en+e+ ,$ ') hi3 %$r s*ecia# ,rea,3en,
,ha, nee+s h$s*i,a#i4a,i$n $r $*era,i$n, ,his is s&'Eec, ,$ a s*ecia# 'i##ing. M$re $%,en ,han n$,,
an e3*#$)ee is reA&ire+ ,$ s,a) in ,he e3*#$)erGs w$r<*#ace $r *r$Fi3a,e#) c#$se ,here,$ ,ha,
he cann$, &,i#i4e his ,i3e eKec,ive#) an+ gain%&##) %$r his $wn *&r*$se. S&ch is n$, ,he
Page 1!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*revai#ing si,&a,i$n here. The Re,ainershi* Agree3en, gran,e+ ,$ '$,h *ar,ies ,he *$wer ,$
,er3ina,e ,heir re#a,i$nshi* &*$n giving a (5+a) n$,ice. Hence, Pe,i,i$ner C$3*an) +i+ n$,
wie#+ ,he s$#e *$wer $% +is3issa# $r ,er3ina,i$n. C$nsi+ering ,ha, ,here is n$ e3*#$)er5
e3*#$)ee re#a,i$nshi* 'e,ween ,he *ar,ies, ,he ,er3ina,i$n $% ,he Re,ainershi* Agree3en,,
which is in acc$r+ance wi,h ,he *r$visi$ns $% ,he Agree3en,, +$es n$, c$ns,i,&,e i##ega#
+is3issa# $% res*$n+en,. C$nseA&en,#), ,here is n$ 'asis %$r ,he 3$ra# an+ eFe3*#ar)
+a3ages gran,e+ ') ,he C$&r, $% A**ea#s ,$ res*$n+en, +&e ,$ his a##ege+ i##ega# +is3issa#.
13. Consoli&a(e& 'roa&cas(ing S$s(e/ vs. 7erio, G.R. No. 1)-*2*, 2une -, 2""7
9ac,sL
Res*$n+en,s a##ege+ ,ha, ,he) were e3*#$)e+ as +ra3a ,a#en,s ') 7@WB5B$3'$ Ra+)$, a
ra+i$ s,a,i$n $wne+ an+ $*era,e+ ') *e,i,i$ner C$ns$#i+a,e+ Br$a+cas,ing S)s,e3, Inc. The)
re*$r,e+ %$r w$r< +ai#) %$r siF +a)s in a wee< an+ were reA&ire+ ,$ rec$r+ ,heir +ra3a
*r$+&c,i$n in a+vance. S$3e $% ,he3 were e3*#$)e+ ') *e,i,i$ner since 19"., whi#e ,he #a,es,
$ne was hire+ in 199". Their +ra3a *r$gra3s were aire+ n$, $n#) in Bac$#$+ Ci,) '&, a#s$ in
,he sis,er s,a,i$ns $% 7@WB in ,he 8isa)as an+ Min+ana$ areas. S$3e,i3e in A&g&s, 1991,
*e,i,i$ner re+&ce+ ,he n&3'er $% i,s +ra3a *r$+&c,i$ns %r$3 1. ,$ 11, '&, was $**$se+ ')
res*$n+en,s. A%,er ,he neg$,ia,i$ns %ai#e+, ,he #a,,er s$&gh, ,he in,erven,i$n $% ,he
7e*ar,3en, $% La'$r an+ E3*#$)3en, =7:LE?, which $n N$ve3'er 1!, 1991, c$n+&c,e+
,hr$&gh i,s Regi$na# :Ice, an ins*ec,i$n $% 7W@B s,a,i$n. The res&#,s ,here$% revea#e+ ,ha,
*e,i,i$ner is g&i#,) $% vi$#a,i$n $% #a'$r s,an+ar+ #aws. Pe,i,i$ner c$n,en+e+ ,ha, res*$n+en,s
are n$, i,s e3*#$)ees an+ re%&se+ ,$ s&'3i, ,he *a)r$## an+ +ai#) ,i3e rec$r+s +es*i,e ,he
s&'*$ena +&ces ,ec&3 iss&e+ ') ,he 7:LE Regi$na# 7irec,$r. Pe,i,i$ner %&r,her arg&e+ ,ha,
,he case sh$&#+ 'e re%erre+ ,$ ,he NLRC 'eca&se ,he Regi$na# 7irec,$r has n$ E&ris+ic,i$n $ver
,he +e,er3ina,i$n $% ,he eFis,ence $% e3*#$)er5e3*#$)ee re#a,i$nshi* which inv$#ves
evi+en,iar) 3a,,ers ,ha, are n$, veriJa'#e in ,he n$r3a# c$&rse $% ins*ec,i$n. 8eFe+ ') ,he
res*$n+en,sS c$3*#ain,, *e,i,i$ner a##ege+#) *ress&re+ an+ in,i3i+a,e+ res*$n+en,s.
Res*$n+en,s :'eri$ an+ 7e#,a were s&s*en+e+ %$r 3in$r #a*ses an+ ,he *a)3en, $% ,heir
sa#aries were *&r*$r,e+#) +e#a)e+. Even,&a##), $n 9e'r&ar) , 1999, *en+ing ,he $&,c$3e $%
,he ins*ec,i$n case wi,h ,he Regi$na# 7irec,$r, res*$n+en,s were 'arre+ ') *e,i,i$ner %r$3
re*$r,ing %$r w$r<O ,h&s, ,he %$r3er c#ai3e+ c$ns,r&c,ive +is3issa#.
Iss&esL
1. Whe,her res*$n+en,s were e3*#$)ees $% *e,i,i$ner.
!. Whe,her res*$n+en,sG +is3issa# was i##ega#.
R&#ingL
1. @es, res*$n+en,sG e3*#$)3en, wi,h *e,i,i$ner *asse+ ,he P%$&r5%$#+ ,es,P $n e3*#$)er5
e3*#$)ee re#a,i$ns, na3e#)L =1? ,he se#ec,i$n an+ engage3en, $% ,he e3*#$)ee, $r ,he *$wer
,$ hireO =!? ,he *a)3en, $% wagesO =? ,he *$wer ,$ +is3issO an+ =.? ,he *$wer ,$ c$n,r$# ,he
e3*#$)ee. Pe,i,i$ner %ai#e+ ,$ c$n,r$ver, wi,h s&'s,an,ia# evi+ence ,he a##ega,i$n $%
res*$n+en,s ,ha, ,he) were hire+ ') ,he %$r3er $n vari$&s +a,es %r$3 19". ,$ 199". I%
*e,i,i$ner +i+ n$, hire res*$n+en,s an+ i% i, was ,he +irec,$r a#$ne wh$ ch$se ,he ,a#en,s,
*e,i,i$ner c$&#+ have easi#) sh$wn, 'eing in *$ssessi$n $% ,he rec$r+s, a c$n,rac, ,$ s&ch
eKec,. H$wever, *e,i,i$ner 3ere#) re#ie+ $n i,s c$n,en,i$n ,ha, res*$n+en,s were *iece ra,e
c$n,rac,$rs wh$ were *ai+ ') res&#,s.N$,e ,ha, &n+er P$#ic) Ins,r&c,i$n N$. .(, *e,i,i$ner is
$'#ige+ ,$ eFec&,e ,he necessar) c$n,rac, s*eci%)ing ,he na,&re $% ,he w$r< ,$ 'e *er%$r3e+,
ra,es $% *a), an+ ,he *r$gra3s in which ,he) wi## w$r<. M$re$ver, *r$Eec, $r c$n,rac,&a#
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e3*#$)ees are reA&ire+ ,$ 'e a**rise+ $% ,he *r$Eec, ,he) wi## &n+er,a<e &n+er a wri,,en
c$n,rac,. This was n$, c$3*#ie+ wi,h ') ,he *e,i,i$ner, E&s,i%)ing ,he reas$na'#e c$nc#&si$n
,ha, n$ s&ch c$n,rac,s eFis, an+ ,ha, res*$n+en,s were in %ac, reg&#ar e3*#$)ees. M$re$ver,
,he engage3en, $% res*$n+en,s %$r a *eri$+ ranging %r$3 ! ,$ !2 )ears an+ ,he %ac, ,ha, ,heir
+ra3a *r$gra3s were aire+ n$, $n#) in Bac$#$+ Ci,) '&, a#s$ in ,he sis,er s,a,i$ns $% 7@WB in
,he 8isa)as an+ Min+ana$ areas, &n+$&',e+#) sh$w ,ha, ,heir w$r< is necessar) an+
in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% *e,i,i$ner. The ,es, ,$ +e,er3ine whe,her
e3*#$)3en, is reg&#ar $r n$, is ,he reas$na'#e c$nnec,i$n 'e,ween ,he *ar,ic&#ar ac,ivi,)
*er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er.
!. 9ina##), we Jn+ ,ha, res*$n+en,s were i##ega##) +is3isse+. In #a'$r cases, ,he e3*#$)er has
,he '&r+en $% *r$ving ,ha, ,he +is3issa# was %$r a E&s, ca&seO %ai#&re ,$ sh$w ,his w$&#+
necessari#) 3ean ,ha, ,he +is3issa# was &nE&s,iJe+ an+, ,here%$re, i##ega#. In ,his case,
*e,i,i$ner 3ere#) c$n,en+e+ ,ha, i, was res*$n+en,s wh$ cease+ ,$ re*$r, ,$ w$r<, an+ never
*resen,e+ an) s&'s,an,ia# evi+ence ,$ s&**$r, sai+ a##ega,i$n. 9&r,her3$re, i% +$&',s eFis,
'e,ween ,he evi+ence *resen,e+ ') ,he e3*#$)er an+ ,he e3*#$)ee, ,he sca#es $% E&s,ice
3&s, 'e ,i#,e+ in %av$r $% ,he #a,,er 5,he e3*#$)er 3&s, aIr3a,ive#) sh$w ra,i$na##) a+eA&a,e
evi+ence ,ha, ,he +is3issa# was %$r a E&s,iJa'#e ca&se. I, is a ,i3e5h$n$re+ r&#e ,ha, in
c$n,r$versies 'e,ween a #a'$rer an+ his 3as,er, +$&',s reas$na'#) arising %r$3 ,he evi+ence
sh$&#+ 'e res$#ve+ in ,he %$r3erSs %av$r. The *$#ic) is ,$ eF,en+ ,he +$c,rine ,$ a grea,er
n&3'er $% e3*#$)ees wh$ can avai# $% ,he 'eneJ,s &n+er ,he #aw, which is in c$ns$nance wi,h
,he av$we+ *$#ic) $% ,he S,a,e ,$ give 3aFi3&3 ai+ an+ *r$,ec,i$n $% #a'$r.
1*. 4u/%i(1Morillo vs. CA, G.R. No. 1)*).2, 2une -, 2""7, ci(ing 2""* Son0a
9ac,sL
Ass$cia,e+ Br$a+cas,ing C$3*an) =ABC? hire+ The#3a 7&3*i,5M&ri##$ &n+er a ,a#en, c$n,rac,
as a newscas,er an+ c$5anch$r %$r Balitang-Balita, an ear#) evening news *r$gra3. The
c$n,rac, was %$r a *eri$+ $% ,hree 3$n,hs. A%,er %$&r )ears $% re*ea,e+ renewa#s, *e,i,i$nerGs
,a#en, c$n,rac, eF*ire+. Tw$ wee<s a%,er ,he eF*ira,i$n $% ,he #as, c$n,rac,, *e,i,i$ner sen, a
#e,,er ,$ Mr. 6$se 6avier, 8ice Presi+en, %$r News an+ P&'#ic AKairs $% ABC, in%$r3ing ,he #a,,er
,ha, she was s,i## in,eres,e+ in renewing her c$n,rac, s&'Eec, ,$ a sa#ar) increase. Therea%,er,
*e,i,i$ner s,$**e+ re*$r,ing %$r w$r<. She sen, a +e3an+ #e,,er ,$ ABC, +e3an+ing
reins,a,e3en,, *a)3en, $% &n*ai+ wages an+ %&## 'ac<wages, *a)3en, $% 1
,h
3$n,h *a),
vaca,i$nBsic<Bservice incen,ive #eaves an+ $,her 3$ne,ar) 'eneJ,s +&e ,$ a reg&#ar e3*#$)ee.
ABC re*#ie+ ,ha, a chec< c$vering *e,i,i$nerGs ,a#en, %ees ha+ 'een *r$cesse+ an+ *re*are+,
'&, ,ha, ,he $,her c#ai3s $% *e,i,i$ner ha+ n$ 'asis in %ac, $r in #aw. The La'$r Ar'i,er
+is3isse+ ,he c$3*#ain, %$r i##ega# c$ns,r&c,ive +is3issa#. NLRC reverse+.
Iss&eL
Whe,her $r n$, M&ri##$ is an e3*#$)ee $% Ass$cia,e+ Br$a+cas,ing C$3*an).
R&#ingL
The#3a 7&3*i,5M&ri##$ was a reg&#ar e3*#$)ee &n+er c$n,e3*#a,i$n $% #aw. The *rac,ice $%
having JFe+5,er3 c$n,rac,s in ,he in+&s,r) +$es n$, a&,$3a,ica##) 3a<e a## ,a#en, c$n,rac,s
va#i+ an+ c$3*#ian, wi,h #a'$r #aw. The asser,i$n ,ha, a ,a#en, c$n,rac, eFis,s +$es n$,
necessari#) *reven, a reg&#ar e3*#$)3en, s,a,&s. 9&r,her, ,he Sonza case is n$, a**#ica'#e. In
Sonza, ,he ,e#evisi$n s,a,i$n +i+ n$, eFercise c$n,r$# $ver ,he 3eans an+ 3e,h$+s $% ,he
Page 1.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*er%$r3ance $% S$n4aGs w$r<. In ,he case a, 'ar, ABC ha+ c$n,r$# $ver ,he *er%$r3ance $%
*e,i,i$nerGs w$r<. N$,ew$r,h) ,$$, is ,he c$3*ara,ive#) #$w P!1,((( 3$n,h#) *a) $% *e,i,i$ner
vis ,he P((,((( a 3$n,h sa#ar) $% S$n4a, ,ha, a## ,he 3$re '$#s,ers ,he c$nc#&si$n ,ha,
*e,i,i$ner was n$, in ,he sa3e si,&a,i$n as S$n4a. The +&,ies $% *e,i,i$ner as en&3era,e+ in
her e3*#$)3en, c$n,rac, in+ica,e ,ha, ABC ha+ c$n,r$# $ver ,he w$r< $% *e,i,i$ner. Asi+e %r$3
c$n,r$#, ABC a#s$ +ic,a,e+ ,he w$r< assign3en,s an+ *a)3en, $% *e,i,i$nerGs wages. ABC a#s$
ha+ *$wer ,$ +is3iss her. A## ,hese 'eing *resen,, c#ear#), ,here eFis,e+ an e3*#$)3en,
re#a,i$nshi* 'e,ween *e,i,i$ner an+ ABC.
C$ncerning reg&#ar e3*#$)3en,, ,he reA&isi,es %$r reg&#ari,) $% e3*#$)3en, have 'een 3e, in
,he ins,an, case. Pe,i,i$nerGs w$r< was necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $%
,he e3*#$)er which inc#&+es, as a *re5c$n+i,i$n %$r i,s en%ranchise3en,, i,s *ar,ici*a,i$n in ,he
g$vern3en,Gs news an+ *&'#ic in%$r3a,i$n +isse3ina,i$n. In a++i,i$n, her w$r< was
c$n,in&$&s %$r a *eri$+ $% %$&r )ears. This re*ea,e+ engage3en, &n+er c$n,rac, $% hire is
in+ica,ive $% ,he necessi,) an+ +esira'i#i,) $% ,he *e,i,i$nerGs w$r< in *riva,e res*$n+en, ABCGs
'&siness. As a reg&#ar e3*#$)ee, *e,i,i$ner is en,i,#e+ ,$ sec&ri,) $% ,en&re an+ can 'e +is3isse+
$n#) %$r E&s, ca&se an+ a%,er +&e c$3*#iance wi,h *r$ce+&ra# +&e *r$cess. Since *riva,e
res*$n+en,s +i+ n$, $'serve +&e *r$cess in c$ns,r&c,ive#) +is3issing ,he *e,i,i$ner, ,here was an
i##ega# +is3issa#.
1.. Lo%e0 vs. 'o&ega Ci($, G.R. No. 1..731, Se%(. 3, 2""7, ci(ing 2""* Aan(e 8
2"". Consul(a
9ac,sL
Pe,i,i$ner was ,he P#a+) <ee*erP $% B$+ega Ci,) ,as<e+ wi,h 3anning i,s #a+iesS c$3%$r, r$$3.
In a #e,,er signe+ ') @a* +a,e+ 9e'r&ar) 1(, 1992, *e,i,i$ner was 3a+e ,$ eF*#ain wh) ,he
c$ncessi$naire agree3en, 'e,ween her an+ res*$n+en,s sh$&#+ n$, 'e ,er3ina,e+ $r
s&s*en+e+ in view $% an inci+en, ,ha, ha**ene+ $n 9e'r&ar) , 1992, wherein *e,i,i$ner was
seen ,$ have ac,e+ in a h$s,i#e 3anner agains, a #a+) c&s,$3er $% B$+ega Ci,) wh$ in%$r3e+
,he 3anage3en, ,ha, she saw *e,i,i$ner s#ee*ing whi#e $n +&,). In a s&'seA&en, #e,,er +a,e+
9e'r&ar) !2, 1992, @a* in%$r3e+ *e,i,i$ner ,ha, 'eca&se $% ,he inci+en, ,ha, ha**ene+ $n
9e'r&ar) , 1992, res*$n+en,s ha+ +eci+e+ ,$ ,er3ina,e ,he c$ncessi$naire agree3en,
'e,ween ,he3.
Iss&eL
Whe,her $r n$, e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s
R&#ingL
The C$&r, a**#ies ,he %$&r5%$#+ ,es, eF*$&n+e+ in Abante v. Lamadrid Bearing and Parts
Corp.,,$ wi,L
T$ ascer,ain ,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, E&ris*r&+ence has invaria'#)
a**#ie+ ,he %$&r5%$#+ ,es,, na3e#)L =1? ,he 3anner $% se#ec,i$n an+ engage3en,O =!? ,he
*a)3en, $% wagesO =? ,he *resence $r a'sence $% ,he *$wer $% +is3issa#O an+ =.? ,he
*resence $r a'sence $% ,he *$wer $% c$n,r$#. :% ,hese %$&r, ,he #as, $ne is ,he 3$s, i3*$r,an,.
The s$5ca##e+ Pc$n,r$# ,es,P is c$33$n#) regar+e+ as ,he 3$s, cr&cia# an+ +e,er3ina,ive
in+ica,$r $% ,he *resence $r a'sence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*. >n+er ,he c$n,r$#
,es,, an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s where ,he *ers$n %$r wh$3 ,he services are
Page 12
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*er%$r3e+ reserves ,he righ, ,$ c$n,r$# n$, $n#) ,he en+ achieve+, '&, a#s$ ,he 3anner an+
3eans ,$ 'e &se+ in reaching ,ha, en+.
Pe,i,i$ner %ai#e+ ,$ ci,e a sing#e ins,ance ,$ *r$ve ,ha, she was s&'Eec, ,$ ,he c$n,r$# $%
res*$n+en,s ins$%ar as ,he 3anner in which she sh$&#+ *er%$r3 her E$' as a P#a+) <ee*erP was
c$ncerne+. I, is ,r&e ,ha, *e,i,i$ner was reA&ire+ ,$ %$##$w r&#es an+ reg&#a,i$ns *rescri'ing
a**r$*ria,e c$n+&c, whi#e wi,hin ,he *re3ises $% B$+ega Ci,). H$wever, ,his was i3*$se+
&*$n *e,i,i$ner as *ar, $% ,he ,er3s an+ c$n+i,i$ns in ,he c$ncessi$naire agree3en,.
Pe,i,i$ner is #i<ewise es,$**e+ %r$3 +en)ing ,he eFis,ence $% ,he s&'Eec, c$ncessi$naire
agree3en,. She sh$&#+ n$,, a%,er enE$)ing ,he 'eneJ,s $% ,he c$ncessi$naire agree3en, wi,h
res*$n+en,s, 'e a##$we+ ,$ #a,er +is$wn ,he sa3e ,hr$&gh her a##ega,i$n ,ha, she was an
e3*#$)ee $% ,he res*$n+en,s when ,he sai+ agree3en, was ,er3ina,e+ ') reas$n $% her
vi$#a,i$n $% ,he ,er3s an+ c$n+i,i$ns ,here$%. The priniple of estoppel in pais a**#ies wherein
55 ') $neSs ac,s, re*resen,a,i$ns $r a+3issi$ns, $r si#ence when $ne $&gh, ,$ s*ea< $&, 55
in,en,i$na##) $r ,hr$&gh c&#*a'#e neg#igence, in+&ces an$,her ,$ 'e#ieve cer,ain %ac,s ,$ eFis,
an+ ,$ righ,%&##) re#) an+ ac, $n s&ch 'e#ie%, s$ as ,$ 'e *reE&+ice+ i% ,he %$r3er is *er3i,,e+ ,$
+en) ,he eFis,ence $% ,h$se %ac,s. Pe,i,i$ner insis,s ,ha, her I7 car+ is s&Icien, *r$$% $% her
e3*#$)3en,. In !omasig v. National Labor Relations Commission,

,his C$&r, he#+ ,ha, ,he
c$3*#ainan,Ss I7 car+ an+ ,he cash v$&chers c$vering his sa#aries %$r ,he 3$n,hs in+ica,e+
,herein were s&'s,an,ia# evi+ence ,ha, he was an e3*#$)ee $% res*$n+en,s, es*ecia##) in #igh,
$% ,he %ac, ,ha, ,he #a,,er %ai#e+ ,$ +en) sai+ evi+ence. This is n$, ,he si,&a,i$n in ,he *resen,
caseUAs ,$ ,he I7 car+, i, is ,r&e ,ha, ,he w$r+s PEMPL:@EESS NAMEP a**ear *rin,e+ 'e#$w
*e,i,i$nerSs na3e. H$wever, she %ai#e+ ,$ +is*&,e res*$n+en,sS evi+ence c$nsis,ing $%
Ha'i,anSs ,es,i3$n), ,ha, he an+ ,he $,her Pc$n,rac,$rsP $% B$+ega Ci,) s&ch as ,he singers
an+ 'an+ *er%$r3ers, were a#s$ iss&e+ ,he sa3e I7 car+s %$r ,he *&r*$se $% ena'#ing ,he3 ,$
en,er ,he *re3ises $% B$+ega Ci,).
Hence, g$ing 'ac< ,$ ,he e#e3en, $% c$n,r$#, ,he c$ncessi$naire agree3en, 3ere#) s,a,e+ ,ha,
*e,i,i$ner sha## 3ain,ain ,he c#ean#iness $% ,he #a+iesS c$3%$r, r$$3 an+ $'serve c$&r,es)
g&i+e#ines ,ha, w$&#+ he#* her $',ain ,he res&#,s ,he) wan,e+ ,$ achieve. There is n$,hing in
,he agree3en, which s*eciJes ,he 3e,h$+s ') which *e,i,i$ner sh$&#+ achieve ,hese res&#,s.
Res*$n+en,s +i+ n$, in+ica,e ,he 3anner in which she sh$&#+ g$ a'$&, in 3ain,aining ,he
c#ean#iness $% ,he #a+iesS c$3%$r, r$$3. Nei,her +i+ res*$n+en,s +e,er3ine ,he 3eans an+
3e,h$+s ') which *e,i,i$ner c$&#+ ens&re ,he sa,is%ac,i$n $% res*$n+en, c$3*an)Ss
c&s,$3ers. In %ac,, ,he #as, *aragra*h $% ,he c$ncessi$naire agree3en, even a##$we+
*e,i,i$ner ,$ engage *ers$ns ,$ w$r< wi,h $r assis, her in ,he +ischarge $% her %&nc,i$ns.
M$re$ver, *e,i,i$ner was n$, s&'Eec,e+ ,$ +eJni,e h$&rs $r c$n+i,i$ns $% w$r<. The %ac, ,ha,
she was eF*ec,e+ ,$ 3ain,ain ,he c#ean#iness $% res*$n+en, c$3*an)Ss #a+iesS c$3%$r, r$$3
+&ring B$+ega Ci,)Ss $*era,ing h$&rs +$es n$, in+ica,e ,ha, her *er%$r3ance $% her E$' was
s&'Eec, ,$ ,he c$n,r$# $% res*$n+en,s as ,$ 3a<e her an e3*#$)ee $% ,he #a,,er. Ins,ea+, ,he
reA&ire3en, ,ha, she ha+ ,$ ren+er her services whi#e B$+ega Ci,) was $*en %$r '&siness was
+ic,a,e+ si3*#) ') ,he ver) na,&re $% her &n+er,a<ing, which was ,$ give assis,ance ,$ ,he
&sers $% ,he #a+iesS c$3%$r, r$$3. Las,#), ,he C$&r, Jn+s ,ha, ,he e#e3en,s $% se#ec,i$n an+
engage3en, as we## as ,he *$wer $% +is3issa# are n$, *resen, in ,he ins,an, case. I, has 'een
es,a'#ishe+ ,ha, ,here has 'een n$ e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween res*$n+en,s an+
*e,i,i$ner. Their c$n,rac,&a# re#a,i$nshi* was g$verne+ ') ,he c$ncessi$naire agree3en,
e3'$+ie+ in ,he 199! #e,,er. Th&s, *e,i,i$ner was n$, +is3isse+ ') res*$n+en,s. Ins,ea+, as
sh$wn ') ,he #e,,er $% @a* ,$ her +a,e+ 9e'r&ar) 12, 1992, ,heir c$n,rac,&a# re#a,i$nshi* was
,er3ina,e+ ') reas$n $% res*$n+en,sS ,er3ina,i$n $% ,he s&'Eec, c$ncessi$naire agree3en,,
which was in acc$r+ance wi,h ,he *r$visi$ns $% ,he agree3en, in case $% vi$#a,i$n $% i,s ,er3s
an+ c$n+i,i$ns.
Page 1-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
1). Cala/a Me&ical Cen(er vs. NLRC e( al., G.R. No. 17)*-*, Nov. 2., 2""-
9ac,sL
The Ca#a3'a Me+ica# Cen,er =*e,i,i$ner?, a *riva,e#)5$wne+ h$s*i,a#, engage+ ,he services $%
3e+ica# +$c,$rs5s*$&ses R$na#+$ Lan4anas =7r. Lan4anas? an+ Merce+i,ha Lan4anas =7r.
Merce+i,ha? in March 199! an+ A&g&s, 1992, res*ec,ive#), as *ar, $% i,s ,ea3 $% resi+en,
*h)sicians. :n March ", 1991, 7r. Me#&4 Trini+a+ =7r. Trini+a+?, a#s$ a resi+en, *h)sician a, ,he
h$s*i,a#, ina+ver,en,#) $verhear+ a ,e#e*h$ne c$nversa,i$n $% res*$n+en, 7r. Lan4anas wi,h a
%e##$w e3*#$)ee, 7i$s+a+$ Misca#a, ,hr$&gh an eF,ensi$n ,e#e*h$ne #ine. A**aren,#), 7r.
Lan4anas an+ Misca#a were +isc&ssing ,he #$w Pcens&sP $r a+3issi$n $% *a,ien,s ,$ ,he
h$s*i,a#. 7r. 7esi*e+a wh$se a,,en,i$n was ca##e+ ,$ ,he a'$ve5sai+ ,e#e*h$ne c$nversa,i$n
iss&e+ ,$ 7r. Lan4anas a Me3$ran+&3 $% March ", 1991. In ,he 3ean,i3e, ,hen Sec.
Cresencian$ TraEan$ $% ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en, =7:LE? cer,iJe+ ,he #a'$r
+is*&,e ,$ ,he NLRC %$r c$3*&#s$r) ar'i,ra,i$n an+ iss&e+ $n A*ri# !1, 1991 re,&rn5,$5w$r<
:r+er ,$ ,he s,ri<ing &ni$n $Icers an+ e3*#$)ees $% *e,i,i$ner *en+ing res$#&,i$n $% ,he #a'$r
+is*&,e. Pe,i,i$ner #a,er sen, 7r. Lan4anas a n$,ice $% ,er3ina,i$n which he receive+ $n A*ri#
!2, 1991, in+ica,ing as gr$&n+s ,here%$r his %ai#&re ,$ re*$r, 'ac< ,$ w$r< +es*i,e ,he 7:LE
$r+er an+ his s&**$se+ r$#e in ,he s,ri<ing &ni$n, ,h&sL :n A*ri# !, 1991, )$& s,i## +i+ n$,
re*$r, %$r w$r< +es*i,e 3e3$ran+&3 iss&e+ ') ,he CMC Me+ica# 7irec,$r i3*#e3en,ing ,he
La'$r Secre,ar)Ss :R7ERU@$& are #i<ewise aware ,ha, )$& were $'serve+ =reL signa,$ries /si0
,$ ,he Saligang Batas $% BMCMC5>WP? ,$ 'e &n#aw%&##) *ar,ici*a,ing as 3e3'er in ,he ran<5
an+5J#e &ni$nSs c$ncer,e+ ac,ivi,ies +es*i,e <n$w#e+ge ,ha, )$&r *$si,i$n in ,he h$s*i,a# is
3anageria# in na,&re =Nurses, "rderlies, and sta# of t$e %mergen& Room arr& out &our
orders using &our independent 'udgment? which *ar,ici*a,i$n is eF*ress#) *r$hi'i,e+ ') ,he
New La'$r C$+eU
9$r ,hese reas$ns as gr$&n+s %$r ,er3ina,i$n, )$& are here') ,er3ina,e+ %$r ca&se %r$3
e3*#$)3en, eKec,ive ,$+a), A*ri# !2, 1991, wi,h$&, *reE&+ice ,$ %&r,her ac,i$n %$r rev$ca,i$n
$% )$&r #icense 'e%$re ,he Phi#i**ine /sic0 Reg&#a,i$ns /sic0 C$33issi$n. 7r. Lan4anas ,h&s
a3en+e+ his $rigina# c$3*#ain, ,$ inc#&+e i##ega# +is3issa#.
Iss&eL
Whe,her $r n$, e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s
R&#ingL
@ES. >n+er ,he Pc$n,r$# ,es,,P an e3*#$)3en, re#a,i$nshi* eFis,s 'e,ween a *h)sician an+ a
h$s*i,a# i% ,he h$s*i,a# c$n,r$#s '$,h ,he 3eans an+ ,he +e,ai#s $% ,he *r$cess ') which ,he
*h)sician is ,$ acc$3*#ish his ,as<. As *ri$r#) s,a,e+, *riva,e res*$n+en,s 3ain,aine+ s*eciJc
w$r<5sche+&#es, as +e,er3ine+ ') *e,i,i$ner ,hr$&gh i,s 3e+ica# +irec,$r, which c$nsis,e+ $%
!.5h$&r shi%,s ,$,a#ing %$r,)5eigh, h$&rs each wee< an+ which were s,ric,#) ,$ 'e $'serve+
&n+er *ain $% a+3inis,ra,ive sanc,i$ns.Tha, *e,i,i$ner eFercise+ c$n,r$# $ver res*$n+en,s
gains #igh, %r$3 ,he &n+is*&,e+ %ac, ,ha, in ,he e3ergenc) r$$3, ,he $*era,ing r$$3, $r an)
+e*ar,3en, $r war+ %$r ,ha, 3a,,er, res*$n+en,sS w$r< is 3$ni,$re+ ,hr$&gh i,s n&rsing
s&*ervis$rs, charge n&rses an+ $r+er#ies. Wi,h$&, ,he a**r$va# $r c$nsen, $% *e,i,i$ner $r i,s
3e+ica# +irec,$r, n$ $*era,i$ns can 'e &n+er,a<en in ,h$se areas. 9$r c$n,r$# ,es, ,$ a**#), i,
is n$, essen,ia# %$r ,he e3*#$)er ,$ ac,&a##) s&*ervise ,he *er%$r3ance $% +&,ies $% ,he
e3*#$)ee, i, 'eing en$&gh ,ha, i, has ,he righ, ,$ wie#+ ,he *$wer. Wi,h res*ec, ,$
Page 1"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
res*$n+en,sS sharing in s$3e h$s*i,a# %ees, ,his sche3e +$es n$, sever ,he e3*#$)3en, ,ie
'e,ween ,he3 an+ *e,i,i$ner as ,his 3ere#) 3irr$rs a++i,i$na# %$r3 $r an$,her %$r3 $%
c$3*ensa,i$n $r incen,ive si3i#ar ,$ wha, c$33issi$n5'ase+ e3*#$)ees receive as
c$n,e3*#a,e+ in Ar,ic#e 9" =%? $% ,he La'$r C$+e, ,h&sL Uwhe,her JFe+ $r ascer,aine+ $n a
,i3e, ,as<, *iece, $r c$33issi$n 'asis, $r $,her 3e,h$+ $% ca#c&#a,ing ,he sa3eU
Res*$n+en,s were in %ac, 3a+e s&'Eec, ,$ *e,i,i$ner5h$s*i,a#Ss C$+e $% E,hics, ,he *r$visi$ns $%
which c$ver a+3inis,ra,ive an+ +isci*#inar) 3eas&res $n neg#igence $% +&,ies, *ers$nne#
c$n+&c, an+ 'ehavi$r, an+ $Kenses agains, *ers$ns, *r$*er,) an+ ,he h$s*i,a#Ss in,eres,.
M$re i3*$r,an,#), *e,i,i$ner i,se#% *r$vi+e+ inc$n,r$ver,i'#e *r$$% $% ,he e3*#$)3en, s,a,&s $%
res*$n+en,s, na3e#), ,he i+en,iJca,i$n car+s i, iss&e+ ,he3, ,he *a)s#i*s an+ BIR W5! =n$w
!1-? 9$r3s which reTec, ,heir s,a,&s as e3*#$)ees, an+ ,he c#assiJca,i$n as Psa#ar)P $% ,heir
re3&nera,i$n. M$re$ver, i, enr$##e+ res*$n+en,s in ,he SSS an+ Me+icare =Phi#hea#,h?
*r$gra3. I, 'ears n$,ing a, ,his E&nc,&re ,ha, 3an+a,$r) c$verage &n+er ,he SSS Law is
*re3ise+ $n ,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, eFce*, in cases $%
c$3*&#s$r) c$verage $% ,he se#%5e3*#$)e+. 9ina##), &n+er Sec,i$n 12, R&#e C $% B$$< III $% ,he
(mplementing Rules of t$e Labor Code, an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s 'e,ween ,he
resi+en, *h)sicians an+ ,he ,raining h$s*i,a#s, &n#ess ,here is a ,raining agree3en, 'e,ween
,he3, an+ ,he ,raining *r$gra3 is +&#) accre+i,e+ $r a**r$ve+ ') ,he a**r$*ria,e g$vern3en,
agenc). In res*$n+en,sS case, ,he) were n$, &n+erg$ing an) s*ecia#i4a,i$n ,raining. The) were
c$nsi+ere+ n$n5,raining genera# *rac,i,i$ners, assigne+ a, ,he e3ergenc) r$$3s an+ war+
sec,i$ns. T&rning n$w ,$ ,he iss&e $% +is3issa#, ,he C$&r, &*h$#+s ,he a**e##a,e c$&r,Ss
c$nc#&si$n ,ha, *riva,e res*$n+en,s were i##ega##) +is3isse+. 7r. Lan4anas was nei,her a
3anageria# n$r s&*ervis$r) e3*#$)ee '&, *ar, $% ,he ran<5an+5J#e. This is ,he i3*$r, $% ,he
Secre,ar) $% La'$rSs Res$#&,i$n $% Ma) !!, 1991 in :S A5(2512591 which rea+sL In ,he 3$,i$n
,$ +is3iss i, J#e+ 'e%$re ,he Me+5Ar'i,er, ,he e3*#$)er =CMC? a##ege+ ,ha, !. 3e3'ers $%
*e,i,i$ner are s&*ervis$rs, na3e#) R$#an+$ Lan4$nas. A c#$se scr&,in) $% ,he E$' +escri*,i$ns
$% ,he a##ege+ s&*ervis$rs narra,e+ ') ,he e3*#$)er $n#) *r$ves ,ha, eFce*, %$r ,he c$n,en,i$n
,ha, ,hese e3*#$)ees a##ege+#) s&*ervise, ,he) +$ n$, h$wever rec$33en+ an) 3anageria#
ac,i$n. A, 3$s,, ,heir E$' is 3ere#) r$&,inar) in na,&re an+ c$nseA&en,#), ,he) cann$, 'e
c$nsi+ere+ s&*ervis$r) e3*#$)ees. The) are n$, ,here%$re 'arre+ %r$3 3e3'ershi* in ,he
&ni$n $% ran</50an+/50J#e, which ,he *e,i,i$ner /,he &ni$n0 is see<ing ,$ re*resen, in ,he ins,an,
case. Par,ici*a,i$n in a s,ri<e an+ in,ransigence ,$ a re,&rn5,$5w$r< $r+er 3&s,, h$wever, 'e
+&#) *r$ve+ in $r+er ,$ E&s,i%) i33e+ia,e +is3issa# in a Pna,i$na# in,eres,P case. Mere
3e3'ershi* in a #a'$r &ni$n +$es n$, ipso fato 3ean *ar,ici*a,i$n in a s,ri<e. As %$r ,he case
$% 7r. Merce+i,ha, her +is3issa# was w$rse, i, having 'een eKec,e+ wi,h$&, an) E&s, $r
a&,h$ri4e+ ca&se an+ wi,h$&, $'servance $% +&e *r$cess. In %ac,, *e,i,i$ner never *r$%erre+
an) va#i+ ca&se %$r her +is3issa# eFce*, i,s view ,ha, Pher 3arriage ,$ /7r. Lan4anas0 has
given rise ,$ ,he *res&3*,i$n ,ha, her s)3*a,h/)0 /is0 wi,h her h&s'an+O /an+ ,ha, when /7r.
Lan4anas0 +ec#are+ ,ha, he was g$ing ,$ '$)c$,, ,he sche+&#ing $% ,heir w$r<#$a+ ') ,he
3e+ica# +$c,$r, he was *res&3e+ ,$ 'e s*ea<ing %$r hi3se#% /an+0 %$r his wi%e Merce+i,ha.P
17. #scasinas e( al., vs. Shangri1las Mac(an !slan& Resor( e( al., G.R. No. 17--27,
March *, 2""9
9ac,sL
Regis,ere+ n&rses 6er$3ie 7. Escasinas an+ Evan Rig$r Singc$ =*e,i,i$ners? were engage+ in
1999 an+ 199-, res*ec,ive#), ') 7r. 6essica 6$)ce R. Pe*i,$ =res*$n+en, +$c,$r? ,$ w$r< in her
c#inic a, res*$n+en, Shangri5#aGs Mac,an Is#an+ Res$r, =Shangri5#a? in Ce'& $% which she was a
re,aine+ *h)sician. In #a,e !((!, *e,i,i$ners J#e+ wi,h ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n
=NLRC? Regi$na# Ar'i,ra,i$n Branch N$. 8II =NLRC5RAB N$. 8II? a c$3*#ain,

%$r reg&#ari4a,i$n,
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
&n+er*a)3en, $% wages, n$n5*a)3en, $% h$#i+a) *a), nigh, shi%, +iKeren,ia# an+ 1,h 3$n,h
*a) +iKeren,ia# agains, res*$n+en,s, c#ai3ing ,ha, ,he) are reg&#ar e3*#$)ees $% Shangri5#a.
Shangri5#a c#ai3e+, h$wever, ,ha, *e,i,i$ners were n$, i,s e3*#$)ees '&, $% res*$n+en, +$c,$r
wh$3 i, re,aine+ via Me3$ran+&3 $% Agree3en, =M:A? *&rs&an, ,$ Ar,ic#e 12" $% ,he La'$r
C$+e, as a3en+e+. Res*$n+en, +$c,$r %$r her *ar, c#ai3e+ ,ha, *e,i,i$ners were a#rea+)
w$r<ing %$r ,he *revi$&s re,aine+ *h)sicians $% Shangri5#a 'e%$re she was re,aine+ ') Shangri5
#aO an+ ,ha, she 3ain,aine+ *e,i,i$nersG services &*$n ,heir reA&es,.
Iss&eL
Whe,her $r n$, e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s
R&#ingL
The res$#&,i$n $% ,he case hinges, in ,he 3ain, $n ,he c$rrec, in,er*re,a,i$n $% Ar,. 12" vis a
vis Ar,. !1( an+ ,he *r$visi$ns $n *er3issi'#e E$' c$n,rac,ing $% ,he La'$r C$+e, as a3en+e+.
The C$&r, h$#+s ,ha,, c$n,rar) ,$ *e,i,i$nersG *$s,&#a,i$n, Ar,. 12" +$es n$, reA&ire ,he
engage3en, $% %&##5,i3e n&rses as reg&#ar e3*#$)ees $% a c$3*an) e3*#$)ing n$, #ess ,han
2( w$r<ers. Th&s, ,he Ar,ic#e *r$vi+esL
ART. 12". %mergen& medial and dental servies. R I, sha## 'e ,he +&,) $% ever) e3*#$)er ,$
%&rnish his e3*#$)ees in an) #$ca#i,) wi,h %ree 3e+ica# an+ +en,a# a,,en+ance an+ %aci#i,ies
c$nsis,ing $%L
='? The services $% a %&##5,i3e regis,ere+ n&rse, a *ar,5,i3e *h)sician an+ +en,is,, an+ an
e3ergenc) c#inic, when ,he n&3'er $% e3*#$)ees eFcee+s ,w$ h&n+re+ =!((? '&, n$, 3$re
,han ,hree h&n+re+ =((?O an+
>n+er ,he %$reg$ing *r$visi$n, Shangri5#a, which e3*#$)s 3$re ,han !(( w$r<ers, is 3an+a,e+
,$ P%&rnishP i,s e3*#$)ees wi,h ,he services $% a %&##5,i3e regis,ere+ n&rse, a *ar,5,i3e
*h)sician an+ +en,is,, an+ an e3ergenc) c#inic which 3eans ,ha, i, sh$&#+ *r$vi+e $r 3a<e
avai#a'#e s&ch 3e+ica# an+ a##ie+ services ,$ i,s e3*#$)ees, n$, necessari#) ,$ hire $r e3*#$) a
service *r$vi+er. As he#+ in Phi#i**ine G#$'a# C$33&nica,i$ns vs. 7e 8eraL
F F F whi#e i, is ,r&e ,ha, ,he *r$visi$n reA&ires e3*#$)ers ,$ engage ,he services $% 3e+ica#
*rac,i,i$ners in cer,ain es,a'#ish3en,s +e*en+ing $n ,he n&3'er $% ,heir e3*#$)ees, n$,hing
is ,here in ,he #aw which sa)s ,ha, 3e+ica# *rac,i,i$ners s$ engage+ 'e ac,&a##) hire+ as
e3*#$)ees, a++ing ,ha, ,he #aw, as wri,,en, $n#) reA&ires ,he e3*#$)er P,$ re,ainP, n$, e3*#$),
a *ar,5,i3e *h)sician wh$ nee+e+ ,$ s,a) in ,he *re3ises $% ,he n$n5ha4ar+$&s w$r<*#ace %$r
,w$ =!? h$&rs. The ,er3 P%&##5,i3eP in Ar,. 12" cann$, 'e c$ns,r&e+ as re%erring ,$ ,he ,)*e $%
e3*#$)3en, $% ,he *ers$n engage+ ,$ *r$vi+e ,he services, %$r Ar,ic#e 12" 3&s, n$, 'e rea+
a#$ngsi+e Ar,. !1(

in $r+er ,$ ves, e3*#$)er5e3*#$)ee re#a,i$nshi* $n ,he e3*#$)er an+ ,he
*ers$n s$ engage+. S$ 7e 8era ,eachesL
F F F 9$r, we ,a<e i, ,ha, an) agree3en, 3a) *r$vi+e ,ha, $ne *ar,) sha## ren+er services %$r
an+ in 'eha#% $% an$,her, n$ 3a,,er h$w necessar) %$r ,he #a,,erGs '&siness, even wi,h$&,
'eing hire+ as an e3*#$)ee. This se,5&* is *recise#) ,r&e in ,he case $% an in+e*en+en,
c$n,rac,$rshi* as we## as in an agenc) agree3en,. In+ee+, Ar,ic#e !1( $% ,he La'$r C$+e,
A&$,e+ ') ,he a**e##a,e c$&r,, is n$, ,he )ar+s,ic< %$r +e,er3ining ,he eFis,ence $% an
e3*#$)3en, re#a,i$nshi*. As i, is, ,he *r$visi$n 3ere#) +is,ing&ishes 'e,ween ,w$ =!? <in+s $%
e3*#$)ees, i.e., reg&#ar an+ cas&a#. F F F The *hrase Pservices $% a %&##5,i3e regis,ere+ n&rseP
sh$&#+ ,h&s 'e ,a<en ,$ re%er ,$ ,he <in+ $% services ,ha, ,he n&rse wi## ren+er in ,he
c$3*an)Gs *re3ises an+ ,$ i,s e3*#$)ees, n$, ,he 3anner $% his engage3en,.
As ,$ whe,her res*$n+en, +$c,$r can 'e c$nsi+ere+ a #egi,i3a,e in+e*en+en, c$n,rac,$r, ,he
*er,inen, sec,i$ns $% 7:LE 7e*ar,3en, :r+er N$. 1(, series $% 199", i##&3ina,eL
Page 19
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Sec. 1. )ob ontrating. R There is E$' c$n,rac,ing *er3issi'#e &n+er ,he C$+e i% ,he %$##$wing
c$n+i,i$ns are 3e,L
=1? The c$n,rac,$r carries $n an in+e*en+en, '&siness an+ &n+er,a<es ,he c$n,rac, w$r< $n
his $wn acc$&n, &n+er his $wn res*$nsi'i#i,) acc$r+ing ,$ his $wn 3anner an+ 3e,h$+, %ree
%r$3 ,he c$n,r$# an+ +irec,i$n $% his e3*#$)er $r *rinci*a# in a## 3a,,ers c$nnec,e+ wi,h ,he
*er%$r3ance $% ,he w$r< eFce*, as ,$ ,he res&#,s ,here$%O an+
=!? The c$n,rac,$r has s&'s,an,ia# ca*i,a# $r inves,3en, in ,he %$r3 $% ,$$#s, eA&i*3en,,
3achineries, w$r< *re3ises, an+ $,her 3a,eria#s which are necessar) in ,he c$n+&c, $% his
'&siness.
Sec. 9. Labor-onl& ontrating. R =a? An) *ers$n wh$ &n+er,a<es ,$ s&**#) w$r<ers ,$ an
e3*#$)er sha## 'e +ee3e+ ,$ 'e engage+ in #a'$r5$n#) c$n,rac,ing where s&ch *ers$nL
=1? 7$es n$, have s&'s,an,ia# ca*i,a# $r inves,3en, in ,he %$r3 $% ,$$#s, eA&i*3en,,
3achineries, w$r< *re3ises an+ $,her 3a,eria#sO an+
=!? The w$r<ers recr&i,e+ an+ *#ace+ ') s&ch *ers$ns are *er%$r3ing ac,ivi,ies which are
+irec,#) re#a,e+ ,$ ,he *rinci*a# '&siness $r $*era,i$ns $% ,he e3*#$)er in which w$r<ers are
ha'i,&a##) e3*#$)e+.
='? La'$r5$n#) c$n,rac,ing as +eJne+ herein is here') *r$hi'i,e+ an+ ,he *ers$n ac,ing as
c$n,rac,$r sha## 'e c$nsi+ere+ 3ere#) as an agen, $r in,er3e+iar) $% ,he e3*#$)er wh$ sha##
'e res*$nsi'#e ,$ ,he w$r<ers in ,he sa3e 3anner an+ eF,en, as i% ,he #a,,er were +irec,#)
e3*#$)e+ ') hi3U
The eFis,ence $% an in+e*en+en, an+ *er3issi'#e c$n,rac,$r re#a,i$nshi* is genera##)
es,a'#ishe+ ') c$nsi+ering ,he %$##$wing +e,er3inan,sL whe,her ,he c$n,rac,$r is carr)ing $n
an in+e*en+en, '&sinessO ,he na,&re an+ eF,en, $% ,he w$r<O ,he s<i## reA&ire+O ,he ,er3 an+
+&ra,i$n $% ,he re#a,i$nshi*O ,he righ, ,$ assign ,he *er%$r3ance $% a s*eciJe+ *iece $% w$r<O
,he c$n,r$# an+ s&*ervisi$n $% ,he w$r< ,$ an$,herO ,he e3*#$)erSs *$wer wi,h res*ec, ,$ ,he
hiring, Jring an+ *a)3en, $% ,he c$n,rac,$rSs w$r<ersO ,he c$n,r$# $% ,he *re3isesO ,he +&,) ,$
s&**#) ,he *re3ises, ,$$#s, a**#iances, 3a,eria#s an+ #a'$rO an+ ,he 3$+e, 3anner an+ ,er3s
$% *a)3en,. :n ,he $,her han+, eFis,ence $% an e3*#$)er5 e3*#$)ee re#a,i$nshi* is
es,a'#ishe+ ') ,he *resence $% ,he %$##$wing +e,er3inan,sL =1? ,he se#ec,i$n an+ engage3en,
$% ,he w$r<ersO =!? *$wer $% +is3issa#O =? ,he *a)3en, $% wages ') wha,ever 3eansO an+ =.?
,he *$wer ,$ c$n,r$# ,he w$r<erSs c$n+&c,, wi,h ,he #a,,er ass&3ing *ri3ac) in ,he $vera##
c$nsi+era,i$n. Agains, ,he a'$ve5#is,e+ +e,er3inan,s, ,he C$&r, h$#+s ,ha, res*$n+en, +$c,$r
is a #egi,i3a,e in+e*en+en, c$n,rac,$r. Tha, Shangri5#a *r$vi+es ,he c#inic *re3ises an+
3e+ica# s&**#ies %$r &se $% i,s e3*#$)ees an+ g&es,s +$ n$, necessari#) *r$ve ,ha, res*$n+en,
+$c,$r #ac<s s&'s,an,ia# ca*i,a# an+ inves,3en,. Besi+es, ,he 3ain,enance $% a c#inic an+
*r$visi$n $% 3e+ica# services ,$ i,s e3*#$)ees is reA&ire+ &n+er Ar,. 12", which are n$,
+irec,#) re#a,e+ ,$ Shangri5#aGs *rinci*a# '&siness R $*era,i$n $% h$,e#s an+ res,a&ran,s. As ,$
*a)3en, $% wages, res*$n+en, +$c,$r is ,he $ne wh$ &n+erwri,es ,he %$##$wingL sa#aries, SSS
c$n,ri'&,i$ns an+ $,her 'eneJ,s $% ,he s,aKO gr$&* #i%e, gr$&* *ers$na# acci+en, ins&rance an+
#i%eB+ea,h ins&rance

%$r ,he s,aK wi,h 3ini3&3 'eneJ, *a)a'#e a, 1! ,i3es ,he e3*#$)eeGs
#as, +rawn sa#ar), as we## as va#&e a++e+ ,aFes an+ wi,hh$#+ing ,aFes, s$&rce+ %r$3 her
P-(,(((.(( 3$n,h#) re,ainer %ee an+ "(V share $% ,he service charges %r$3 Shangri5#aGs
g&es,s wh$ avai# $% ,he c#inic services. I, is &n#i<e#) ,ha, res*$n+en, +$c,$r w$&#+ re*$r,
*e,i,i$ners as w$r<ers, *a) ,heir SSS *re3i&3 as we## as ,heir wages i% ,he) were n$, in+ee+
her e3*#$)ees. Wi,h res*ec, ,$ ,he s&*ervisi$n an+ c$n,r$# $% ,he n&rses an+ c#inic s,aK, i, is
n$, +is*&,e+ ,ha, a +$c&3en,, PC#inic P$#icies an+ E3*#$)ee Man&a#P c#ai3e+ ,$ have 'een
*re*are+ ') res*$n+en, +$c,$r eFis,s, ,$ which *e,i,i$ners gave ,heir c$n%$r3i,) an+ in which
,he) ac<n$w#e+ge+ ,heir c$5,er3in&s e3*#$)3en, s,a,&s. I, is ,h&s *res&3e+ ,ha, sai+
+$c&3en,, an+ n$, ,he e3*#$)ee 3an&a# 'eing %$##$we+ ') Shangri5#aGs reg&#ar w$r<ers,
g$verns h$w ,he) *er%$r3 ,heir res*ec,ive ,as<s an+ res*$nsi'i#i,ies. C$n,rar) ,$ *e,i,i$nersG
c$n,en,i$n, ,he vari$&s $Ice +irec,ives iss&e+ ') Shangri5#aGs $Icers +$ n$, i3*#) ,ha, i, is
Shangri5#aGs 3anage3en, an+ n$, res*$n+en, +$c,$r wh$ eFercises c$n,r$# $ver ,he3 $r ,ha,
Page !(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Shangri5#a has c$n,r$# $ver h$w ,he +$c,$r an+ ,he n&rses *er%$r3 ,heir w$r<. The #e,,er
a++resse+ ,$ res*$n+en, +$c,$r +a,e+ 9e'r&ar) ", !(( %r$3 a cer,ain Ta,a L. Re)es giving
ins,r&c,i$ns regar+ing ,he re*#enish3en, $% e3ergenc) <i,s is, a, 3$s,, a+3inis,ra,ive in
na,&re, re#a,e+ as i, is ,$ sa%e,) 3a,,ersO whi#e ,he #e,,er +a,e+ Ma) 1", !((. %r$3 Shangri5#aGs
Assis,an, 9inancia# C$n,r$##er, L$,#$, 7aga,, %$r'i++ing ,he c#inic %r$3 receiving cash *a)3en,s
%r$3 ,he res$r,Gs g&es,s is a 3a,,er $% Jnancia# *$#ic) in $r+er ,$ ens&re *r$*er sharing $% ,he
*r$cee+s, c$nsi+ering ,ha, Shangri5#a an+ res*$n+en, +$c,$r share in ,he g&es,sG *a)3en,s %$r
3e+ica# services ren+ere+. In Jne, as Shangri5#a +$es n$, c$n,r$# h$w ,he w$r< sh$&#+ 'e
*er%$r3e+ ') *e,i,i$ners, i, is n$, *e,i,i$nersG e3*#$)er.
1-. 9ong:o v. Manufac(urer Life !nsurance Co. ;MAN<L!6#= !nc., e( al., G.R. No
1)7)22, 2anuar$ 2., 2"11
9ac,sL
T$ng<$ was, ini,ia##) an ins&rance agen, $% Man&#i%e wh$ was *r$3$,e+ ,$ ,he r$#e $% a
3anager. The c$n,rac,&a# re#a,i$nshi* 'e,ween T$ng<$ an+ Man&#i%e ha+ ,w$ 'asic *hases.
The ini,ia# *hase 'egan $n 6&#) 1, 19""&n+er a Career Agen,Gs Agree3en, which regar+e+ hi3
as an in+e*en+en, c$n,rac,$r, n$, an e3*#$)ee. As an agen,, his ,as<s were ,$ canvass %$r
a**#ica,i$ns %$r ins&rance *r$+&c,s an+ c$##ec, 3$ne) +&e ,$ ,he C$3*an). The sec$n+ *hase
s,ar,e+ in 191 when T$ng<$ was na3e+ >ni, Manager. In 199(, he 'eca3e a Branch
Manager. In 199-, T$ng<$ 'eca3e a Regi$na# Sa#es Manager, where he earne+ c$33issi$ns,
*ersis,enc) inc$3e an+ 3anage3en, $verri+es. Since ,he 'eginning, T$ng<$ c$nsis,en,#)
+ec#are+ hi3se#% se#%5e3*#$)e+ in his inc$3e ,aF re,&rns.
H$wever, in !((1, Man&#i%e ins,i,&,e+ 3an*$wer +eve#$*3en, *r$gra3s which +irec,e+ ,he
3anagers ,$ increase ,he n&3'er $% agen,s ,$ a, #eas, 1,((( s,r$ng %$r a s,ar,. I, was %$&n+
,ha, T$ng<$Gs regi$n was ,he #$wes, *er%$r3er in ,er3s $% recr&i,ing in !(((. S&'seA&en,#),
T$ng<$ receive+ an$,her #e,,er, +a,e+ 7ece3'er 11, !((1, ,er3ina,ing his services. T$ng<$
,hen J#e+ an i##ega# +is3issa# c$3*#ain, wi,h ,he NLRC Ar'i,ra,i$n Branch. He a##ege+ ,he
eFis,ence $% an e3*#$)3en, re#a,i$nshi*. In s&**$r, $% ,his he asser,e+ ,ha, as >ni, Manager,
he was *ai+ an ann&a# $ver5ri+er, a ,rave# an+ en,er,ain3en, a##$wance in a++i,i$n ,$ his
$verri+ing c$33issi$ns. He was ,as<e+ wi,h n&3er$&s a+3inis,ra,ive %&nc,i$ns an+
s&*ervis$r) a&,h$ri,) $ver Man&#i%eGs e3*#$)ees. He was reA&ire+ ,$ %$##$w a, #eas, ,hree
c$+es $% c$n+&c,. :n ,he $,her han+, Man&#i%e c$n,en+e+ ,ha, wha, eFis,e+ 'e,ween ,he3
was a 3ere agenc) re#a,i$nshi*.
!eisions of t$e )udiial *ribunals
LAL N$ e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,e+ 'e,ween ,he *ar,ies.
NLRCL I, %$&n+ ,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*. There was i##ega#
+is3issa#.
CAL I, rever,e+ ,$ ,he #a'$r ar'i,erGs +ecisi$n ,ha, n$ e3*#$)er5e3*#$)ee re#a,i$nshi*
eFis,e+ 'e,ween ,he3.
SCL In reversing ,he CA r&#ing, i, +ec#are+ ,ha, an e3*#$)3en, re#a,i$nshi* eFis,e+ 'e,ween
,he3. 9irs,, ,here eFis,s ,he *$ssi'i#i,) $% an ins&rance agen, 'ec$3ing an e3*#$)ee $% an
ins&rance c$3*an) i% evi+ence sh$ws ,ha, ,he c$3*an) *r$3&#ga,e+ r&#es $r reg&#a,i$ns ,ha,
eKec,ive#) c$n,r$##e+ $r res,ric,e+ an ins&rance agen,Gs ch$ice $% 3e,h$+s $r ,he 3e,h$+s
,he3se#ves in se##ing ins&rance.
Page !1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Sec$n+, Man&#i%e ha+ ,he *$wer $% c$n,r$# $ver T$ng<$, s&Icien, ,$ charac,eri4e hi3 as an
e3*#$)ee, as sh$wn ') ,he %ac, ,ha, he c$3*#ie+ wi,h +iKeren, c$+es $% c$n+&c, an+ ,ha, he
*er%$r3e+ a+3inis,ra,ive +&,ies. A#s$, T$ng<$ was ,as<e+ ,$ recr&i, s$3e agen,s in a++i,i$n ,$
his $,her a+3inis,ra,ive %&nc,i$ns.
Hence, a M$,i$n %$r Rec$nsi+era,i$n was J#e+ ') Man&#i%e an+ was gran,e+ ') ,he SC.
Iss&eL
Whe,her $r n$, ,here eFis,s an e3*#$)er5e3*#$)ee re#a,i$nshi*.
SC R&#ingL
R&#es regar+ing ,he +esire+ res&#,s =e.g., ,he reA&ire+ v$#&3e ,$ c$n,in&e ,$ A&a#i%) as a
c$3*an) agen, ; #ega#B e,hica# r&#es ,$ 'e %$##$we+? are '&i#,5in e#e3en,s $% c$n,r$# s*eciJc ,$
an ins&rance agenc) an+ sh$&#+ n$, an+ cann$, 'e rea+ as e#e3en,s $% c$n,r$# ,ha, a,,en+ an
e3*#$)3en, re#a,i$nshi* g$verne+ ') ,he La'$r C$+e.
Base+ $n +eci+e+ cases, a +e,er3ina,i$n $% ,he *resence $% ,he La'$r C$+e e#e3en, $% c$n,r$#
was 3a+e $n ,he 'asis $% ,he s,i*&#a,i$ns $% ,he s&'seA&en, c$n,rac,s. In ,his case, whi#e
T$ng<$ was #a,er $n +esigna,e+ &ni, 3anager in 191, Branch Manager in 199(, an+ Regi$na#
Sa#es Manager in 199-, n$ %$r3a# c$n,rac, regar+ing ,hese &n+er,a<ings a**ears in ,he
rec$r+s $% ,he case. An) s&ch c$n,rac, $r agree3en,, ha+ ,here 'een an), c$&#+ have a, ,he
ver) #eas, *r$vi+e+ ,he 'ases %$r *r$*er#) ascer,aining ,he E&ri+ica# re#a,i$nshi* es,a'#ishe+
'e,ween ,he *ar,ies.
9$r ,his reas$n, we can ,a<e E&+icia# n$,ice ,ha, as a 3a,,er $% Ins&rance C$+e5'ase+ '&siness
*rac,ice, an agen& relations$ip prevails in t$e insurane industr& for t$e purpose of selling
insurane. SigniJcan,#), evi+ence sh$ws ,ha, T$ng<$Gs r$#e as an ins&rance agen, never
change+ +&ring his re#a,i$nshi* wi,h Man&#i%e. T$ng<$ essen,ia##) re3aine+ an agen,, '&,
3$ve+ &* in ,his r$#e ,hr$&gh Man&#i%eGs rec$gni,i$n ,ha, he c$&#+ &se $,her agen,s a**r$ve+
') Man&#i%e '&, $*era,ing &n+er his g&i+ance. 9$r wan, $% a 'e,,er ,er3, T$ng<$ *erha*s c$&#+
'e #a'e#e+ as a P#ea+ agen,P wh$ g&i+e+ &n+er his wing $,her Man&#i%e agen,s.
Evi+ence in+ica,es ,ha, T$ng<$ c$nsis,en,#) c#&ng ,$ ,he view ,ha, he was an in+e*en+en,
agen, since he invaria'#) +ec#are+ hi3se#% a '&siness $r se#%5e3*#$)e+ *ers$n in his inc$3e
,aF re,&rns. The c$nce*, $% es,$**e# R a #ega# an+ eA&i,a'#e c$nce*, R necessari#) 3&s, c$3e
in,$ *#a). T$ng<$Gs *revi$&s a+3issi$ns in severa# )ears $% ,aF re,&rns as an in+e*en+en,
agen,, as agains, his 'e#a,e+ c#ai3 ,ha, he was a## a#$ng an e3*#$)ee, are ,$$ +ia3e,rica##)
$**$se+ ,$ 'e si3*#) +is3isse+ $r ign$re+.
There was, in+ee+, #ac< $% evi+ence $n rec$r+ sh$wing ,ha, Man&#i%e ever eFercise+ 3eans5
an+53anner c$n,r$#, even ,$ a #i3i,e+ eF,en,, $ver T$ng<$ +&ring his ascen, in Man&#i%eGs sa#es
#a++er. The rea#i,) is, *ri$r ,$ ,he +irec,ives sen, ') 7e 7i$s, Man&#i%e ha+ *rac,ica##) #e%,
T$ng<$ a#$ne n$, $n#) in +$ing ,he '&siness $% se##ing ins&rance, '&, a#s$ in g&i+ing ,he agen,s
&n+er his wing. In a++i,i$n, ,he 3ere *resen,a,i$n $% c$+es $r $% r&#es an+ reg&#a,i$ns is n$,
*er se in+ica,ive $% #a'$r #aw c$n,r$#. The c$+es $% c$n+&c, +$ n$, in,r&+e in,$ ,he ins&rance
agen,sG 3eans an+ 3anner $% c$n+&c,ing ,heir sa#es an+ $n#) c$n,r$# ,he3 as ,$ ,he +esire+
res&#,s.
G&i+e#ines in+ica,ive $% #a'$r #aw Pc$n,r$#,P 'ase+ $n ,he case $% Ins&#ar Li%e, sh$&#+ n$,
3ere#) re#a,e ,$ ,he 3&,&a##) +esira'#e res&#, in,en+e+ ') ,he c$n,rac,&a# re#a,i$nshi*O ,he)
3&s, have ,he na,&re $% +ic,a,ing ,he 3eans $r 3e,h$+s ,$ 'e e3*#$)e+ in a,,aining ,he
Page !!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
res&#,, $r $% JFing ,he 3e,h$+$#$g) an+ $% 'in+ing $r res,ric,ing ,he *ar,) hire+ ,$ ,he &se $%
,hese 3eans.
Hence, ,he %ai#&re $% T$ng<$ ,$ c$3*#) wi,h ,he g&i+e#ines ; +irec,ives $% Man&#i%e is recr&i,ing
3$re agen,s, as a gr$&n+ %$r ,er3ina,i$n $% T$ng<$Gs agenc), is a 3a,,er ,ha, ,he #a'$r
,ri'&na#s cann$, r&#e &*$n in ,he a'sence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*. 6&ris+ic,i$n
$ver ,he 3a,,er 'e#$ngs ,$ ,he c$&r,s a**#)ing ,he #aws $% ins&rance, agenc) an+ c$n,rac,s.
SCL *ong+o is 'ust an A,%N*. (n e#et, t$e SC is telling us t$at, -rst, t$ere must be an
evidene of a ontrat t$at s$o.s t$at t$e relations$ip $as been onverted from ontrat of
agen& to t$at of emplo&ment, .$i$ is absent in t$e ase at bar. Seondl&, ad$erene to a
ode of ondut is not, per se, indiative of ontrol .$en it merel& ontrols t$e desired results
and not t$e means and t$e manner b& .$i$ agents are to ondut t$eir sales. *$e diretive
of !e !ios to *ong+o /in inreasing t$e number of agents0 .as merel& suggestive. 1ene, not
indiative of ontrol
19. Caong, 2r. v. 'egualos, G.R. No. 179*2-, 2anuar$ 2), 2"11
9ac,sL
Pe,i,i$ners Pri3$ E. Ca$ng, 6r. =Ca$ng?, A#eFan+er 6. TresA&i$ =TresA&i$?, an+ L$rian$ 7.
7a#&)$n =7a#&)$n? were e3*#$)e+ ') res*$n+en, Ave#in$ Reg&a#$s &n+er a '$&n+ar)
agree3en,, as +rivers $% his 'eepne&s. In N$ve3'er !((1, ,he) J#e+ se*ara,e c$3*#ain,s %$r
i##ega# +is3issa# agains, res*$n+en, wh$ 'arre+ ,he3 %r$3 +riving ,he vehic#es +&e ,$
+eJciencies in ,heir '$&n+ar) *a)3en,s.
Iss&eL
Whe,her $r n$, ,he *$#ic) $% s&s*en+ing +rivers *en+ing *a)3en, $% arrears in ,heir '$&n+ar)
$'#iga,i$ns is reas$na'#e.
Ruling:
I, is a#rea+) se,,#e+ ,ha, ,he re#a,i$nshi* 'e,ween 'eepne& $wnersB$*era,$rs
an+ 'eepne& +rivers &n+er ,he '$&n+ar) s)s,e3 is ,ha, $% e3*#$)er5e3*#$)ee an+ n$, $%
#ess$r5#essee. The %ac, ,ha, ,he +rivers +$ n$, receive JFe+ wages '&, $n#) ge, ,he a3$&n, in
eFcess $% ,he s$5ca##e+ M'$&n+ar)N ,ha, ,he) *a) ,$ ,he $wnerB$*era,$r is n$, s&Icien, ,$
nega,e ,he re#a,i$nshi* 'e,ween ,he3 as e3*#$)er an+ e3*#$)ee.
Pe,i,i$nersG s&s*ensi$n cann$, 'e ca,eg$ri4e+ as +is3issa#, c$nsi+ering ,ha, ,here was n$
in,en, $n ,he *ar, $% res*$n+en, ,$ sever ,he e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween hi3
an+ *e,i,i$ners. In %ac,, i, was 3a+e c#ear ,ha, *e,i,i$ners c$&#+ *&, an en+ ,$ ,he s&s*ensi$n
i% ,he) $n#) *a) ,heir recen, arrears. As i, was, ,he s&s*ensi$n +ragge+ $n %$r )ears 'eca&se $%
*e,i,i$nersG s,&''$rn re%&sa# ,$ *a). I, w$&#+ have 'een +iKeren, i% *e,i,i$ners c$3*#ie+ wi,h
,he c$n+i,i$n an+ res*$n+en, s,i## re%&se+ ,$ rea+3i, ,he3 ,$ w$r<. Then ,here w$&#+ have
'een a c#ear ac, $% +is3issa#. B&, s&ch was n$, ,he case. Ins,ea+ $% *a)ing, *e,i,i$ners even
J#e+ a c$3*#ain, %$r i##ega# +is3issa# agains, res*$n+en,.

Res*$n+en,Gs *$#ic) $% s&s*en+ing +rivers wh$ %ai# ,$ re3i, ,he %&## a3$&n, $% ,he '$&n+ar)
was %air an+ reas$na'#e &n+er ,he circ&3s,ances. Res*$n+en, eF*#aine+ ,ha, he n$,ice+ ,ha,
Page !
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
his +rivers were ge,,ing #aF in re3i,,ing ,heir '$&n+ar) *a)3en,s an+, in %ac,, herein
*e,i,i$ners ha+ a#rea+) inc&rre+ a c$nsi+era'#e a3$&n, $% arrears. He ha+ ,$ *&, a s,$* ,$ i, as
he a#s$ re#ie+ $n ,hese '$&n+ar) *a)3en,s ,$ raise ,he %&## a3$&n, $% his 3$n,h#)
a3$r,i4a,i$ns $n ,he 'eepne&s. 7e3$ns,ra,ing ,heir $'s,inac), *e,i,i$ners, $n ,he +a)s
i33e+ia,e#) %$##$wing ,he i3*#e3en,a,i$n $% ,he *$#ic), inc&rre+ +eJciencies in ,heir '$&n+ar)
re3i,,ances.
I, is ac<n$w#e+ge+ ,ha, an e3*#$)er has %ree rein an+ enE$)s a wi+e #a,i,&+e $% +iscre,i$n ,$
reg&#a,e a## as*ec,s $% e3*#$)3en,, inc#&+ing ,he *rer$ga,ive ,$ ins,i## +isci*#ine $n his
e3*#$)ees an+ ,$ i3*$se *ena#,ies, inc#&+ing +is3issa#, i% warran,e+, &*$n erring e3*#$)ees.
This is a 3anage3en, *rer$ga,ive. In+ee+, ,he 3anner in which 3anage3en, c$n+&c,s i,s
$wn aKairs ,$ achieve i,s *&r*$se is wi,hin ,he 3anage3en,Gs +iscre,i$n. The $n#) #i3i,a,i$n
$n ,he eFercise $% 3anage3en, *rer$ga,ive is ,ha, ,he *$#icies, r&#es, an+ reg&#a,i$ns $n w$r<5
re#a,e+ ac,ivi,ies $% ,he e3*#$)ees 3&s, a#wa)s 'e %air an+ reas$na'#e, an+ ,he c$rres*$n+ing
*ena#,ies, when *rescri'e+, c$33ens&ra,e ,$ ,he $Kense inv$#ve+ an+ ,$ ,he +egree $% ,he
in%rac,i$n.
A c$3*an) *$#ic) 3&s, 'e i3*#e3en,e+ in s&ch 3anner as wi## acc$r+ s$cia# E&s,ice an+
c$3*assi$n ,$ ,he e3*#$)ee. In case $% n$nc$3*#iance wi,h ,he c$3*an) *$#ic), ,he
e3*#$)er 3&s, c$nsi+er ,he s&rr$&n+ing circ&3s,ances an+ ,he reas$ns wh) ,he e3*#$)ee
%ai#e+ ,$ c$3*#). When ,he circ&3s,ances 3eri, ,he re#aFa,i$n $% ,he a**#ica,i$n $% ,he *$#ic),
,hen i,s n$nc$3*#iance 3&s, 'e eFc&se+.
In ,he *resen, case, *e,i,i$ners 3ere#) a##ege+ ,ha, ,here were $n#) %ew *assengers +&ring ,he
+a,es in A&es,i$n. S&ch eFc&se is n$, acce*,a'#e wi,h$&, an) *r$$% $r, a, #eas,, an eF*#ana,i$n
as ,$ wh) *assengers were scarce a, ,ha, ,i3e. I, is si3*#) a 'are a##ega,i$n, n$, w$r,h) $%
'e#ie%. We a#s$ Jn+ ,he eFc&se &n'e#ieva'#e c$nsi+ering ,ha, *e,i,i$ners inc&rre+ ,he
sh$r,ages $n se*ara,e +a)s, an+ i, a**ears ,ha, $n#) *e,i,i$ners %ai#e+ ,$ re3i, ,he %&##
'$&n+ar) *a)3en, $n sai+ +a,es.
2". A(o: 'ig >e&ge Co/%an$ vs. Gison, G.R. No. 1)9.1", Augus( -, 2"11
9ac,sL
The res*$n+en, in ,his case, 6es&s P. Gis$n, was engage+ as *ar,5,i3e c$ns&#,an, $% ,he
*e,i,i$ner, A,$< Big We+ge C$3*an) ,h$r&gh i,s ,hen Ass,. 8P an+ Ac,ing Resi+en, Manager,
R&,i##$ A. T$rres. As a c$ns&#,an, $n re,ainer 'asis, ,he %$r3er assis,e+ ,he *e,i,i$nerGs re,aine+
#ega# c$&nse# wi,h 3a,,ers *er,aining ,$ ,he *r$sec&,i$n $% cases agains, i##ega# s&r%ace
$cc&*an,s wi,hin ,he area c$vere+ ') ,he c$3*an)Gs 3inera# c#ai3s. He a#s$ ,as<e+ ,$
*er%$r3 #ias$n w$r< wi,h g$vern3en, agencies which he sai+ his eF*er,ise. Res*$n+en, is n$,
reA&ire+ ,$ re*$r, ,$ i,s $Ice $n a reg&#ar 'asis, eFce*, when $ccassi$na##) reA&es,e+ ') ,he
3anage3en, ,$ +isc&ss ,he 3a,,ers which nee+s $% his eF*er,ise as a c$ns&#,an,. He is *ai+ a
re,ainer %ee $% ,(((Ph* a 3$n,h an+ +e#ivere+ ,$ hi3 ei,her in his resi+ence $r in a #$ca#
res,a&ran,. The) have a#s$ eFec&,e+ a re,ainer agree3en, h$wever was 3is*#ace+ an+ can n$
#$nger 'e %$&n+. This <in+ $% arrange3en, c$n,in&e+ $n %$r ,he neF, 11 )ears. Since
res*$n+en, was ge,,ing $#+, he reA&es,e+ *e,i,i$ner ,$ ca&se his regis,ra,i$n wi,h ,he S$cia#
Sec&ri,) S)s,e3 '&, *e,i,i$ner +i+ n$, acce+e ,$ his reA&es, c$nsi+ering ,he %$r3er $n#) a
re,ainerBc$ns&#,an,.
Page !.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Res*$n+en, herein, J#e+ a c$3*#ain, wi,h SSS agains, *e,i,i$nerGs re%&sa# ,$ ca&se his
regis,ra,i$n wi,h ,he SSS. The Resi+en, Manager $% ,he *e,i,i$ner iss&e+ ,hen a Me3$ran+&3
a+vising res*$n+en, ,ha, wi,hin ( +a)s %r$3 recei*, ,here$%, *e,i,i$nerGs services as a
re,ainerBc$ns&#,an, wi## 'e ,er3ina,e+ since his services are n$ #$nger necessar). As a res&#,,
res*$n+en, J#e+ a c$3*#ain, %$r i##ega# +is3issa#, &n%air #a'$r *rac,ice, &n+er*a)3en, $%
wages, n$n5*a)3en, $% 1,h M$n,h *a), vaca,i$n *a) an+ sic< #eave wi,h ,he NLRC, Regi$na#
Ar'i,ra,i$n Branch an+ C$r+i##era A+3inis,ra,ive Regi$n agains, ,he *e,i,i$ner.
The La'$r Ar'i,er ren+ere+ a +ecisi$n in %av$r $% ,he *e,i,i$ner r&#ing ,ha, ,here is n$
e3*#$)er5e3*#$)ee re#a,i$nshi* an+ +is3isse+ ,he c$3*#ain, %$r #ac< $% 3eri,. An a**ea# was
3a+e 'e%$re ,he NLRC '&, sa3e was +is3isse+ an+ aIr3e+ ,he +ecisi$n $% ,he La'$r Ar'i,er.
A *e,i,i$n %$r review was J#e+ &n+er R&#e -2 'e%$re ,he C$&r, $% A**ea#s. The C$&r, $% A**ea#s
ann&#e+ an+ has se, asi+e ,he +ecisi$n $% NLRC. The CA $*ine+ ,ha,, '$,h ,he La'$r Ar'i,er
an+ NLRC $ver#$$<e+ Ar,ic#e !1( $% ,he La'$r C$+e, which +is,ing&ishes 'e,ween ,he ,w$
<in+s $% e3*#$)ees, i.e., reg&#ar an+ cas&a# e3*#$)ees. The res*$n+en, is +ee3e+ a reg&#ar
e3*#$)ee $% ,he *e,i,i$ner a%,er ,he #a*se $% $ne )ear %r$3 his e3*#$)3en,. C$nsi+ering a#s$
,ha, ,he res*$n+en, ha+ 'een *er%$r3ing services %$r ,he *e,i,i$ner %$r ,he #as, 11 )ears
en,i,#ing hi3 ,$ ,he righ,s an+ *rivi#eges $% a reg&#ar e3*#$)ee. The CA a++e+ ,ha, a#,h$&gh
,here was an agree3en, 'e,ween ,he *ar,ies ,ha, ,he e3*#$)3en, $% ,he res*$n+en, wi## 'e
$n#) ,e3*$rar), i, c#ear#) +isregar+e+ ,he sa3e ') re*ea,e+#) giving *e,i,i$ner severa# ,as<s
,$ *er%$r3. M$re$ver, a#,h$&gh ,he res*$n+en, 3a) have waive+ his righ, ,$ a,,ain a reg&#ar
s,a,&s when he agree+ ,$ *er%$r3 ,hese ,as<s $n a ,e3*$rar) e3*#$)3en, s,a,&s, s,i## i, was
,he #aw ,ha, rec$gni4e+ an+ c$nsi+ere+ hi3 a reg&#ar e3*#$)ee a%,er his Jrs, )ear $%
ren+ering service ,$ *e,i,i$ner. As s&ch, ,he waiver is ineKec,ive.
Pe,i,i$ner herein *$si,s ,ha, CA erre+ in a**#)ing Ar,ic#e !1( $% ,he La'$r C$+e in +e,er3ining
whe,her ,here eFis,s an e3*#$)er5e3*#$)ee re#a,i$nshi*. Pe,i,i$ner c$n,en+s ,ha, where ,he
eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi* is in +is*&,e, Ar,ic#e !1( $% ,he La'$r C$+e is
ina**#ica'#e. The sai+ ar,ic#e $n#) se, ,he +is,inc,i$n 'e,ween a cas&a# e3*#$)ee %r$3 a
reg&#ar e3*#$)ee %$r *&r*$ses $% +e,er3ining ,he righ,s $% an e3*#$)ee ,$ 'e en,i,#e+ ,$
cer,ain 'eneJ,s.
Iss&eL
Whe,her $r n$, CA erre+ in a**#)ing Ar,ic#e !1(W
R&#ingL
We##5en,renche+ is ,he +$c,rine ,ha, ,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi* is
&#,i3a,e#) a A&es,i$n $% %ac, an+ ,ha, ,he Jn+ings ,here$n ') ,he La'$r Ar'i,er an+ ,he NLRC
sha## 'e acc$r+e+ n$, $n#) res*ec, '&, even Jna#i,) when s&**$r,e+ ') s&'s,an,ia# evi+ence.
Being a A&es,i$n $% %ac,, ,he +e,er3ina,i$n whe,her s&ch a re#a,i$nshi* eFis,s 'e,ween
*e,i,i$ner an+ res*$n+en, was we## wi,hin ,he *r$vince $% ,he La'$r Ar'i,er an+ ,he NLRC.
Being s&**$r,e+ ') s&'s,an,ia# evi+ence, s&ch +e,er3ina,i$n sh$&#+ have 'een acc$r+e+
grea, weigh, ') ,he CA in res$#ving ,he iss&e. T$ ascer,ain ,he eFis,ence $% an e3*#$)er5
e3*#$)ee re#a,i$nshi* E&ris*r&+ence has invaria'#) a+here+ ,$ ,he %$&r5%$#+ ,es,, ,$ wi,L =1? ,he
se#ec,i$n an+ engage3en, $% ,he e3*#$)eeO =!? ,he *a)3en, $% wagesO =? ,he *$wer $%
+is3issa#O an+ =.? ,he *$wer ,$ c$n,r$# ,he e3*#$)eeSs c$n+&c,, $r ,he s$5ca##e+ Pc$n,r$#
,es,.P The s$5ca##e+ Pc$n,r$# ,es,P is c$33$n#) regar+e+ as ,he 3$s, cr&cia# an+ +e,er3ina,ive
in+ica,$r $% ,he *resence $r a'sence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*
A**#)ing ,he a%$re3en,i$ne+ ,es,, an e3*#$)er5e3*#$)ee re#a,i$nshi* is a**aren,#) a'sen, in
,he case a, 'ar. A3$ng $,her ,hings, res*$n+en, was n$, reA&ire+ ,$ re*$r, ever)+a) +&ring
reg&#ar $Ice h$&rs $% *e,i,i$ner. Res*$n+en,Ss 3$n,h#) re,ainer %ees were *ai+ ,$ hi3 ei,her
a, his resi+ence $r a #$ca# res,a&ran,. M$re i3*$r,an,#), *e,i,i$ner +i+ n$, *rescri'e ,he
Page !2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
3anner in which res*$n+en, w$&#+ acc$3*#ish an) $% ,he ,as<s in which his eF*er,ise as a
#iais$n $Icer was nee+e+O res*$n+en, was #e%, a#$ne an+ given ,he %ree+$3 ,$ acc$3*#ish ,he
,as<s &sing his $wn 3eans an+ 3e,h$+. Res*$n+en, was assigne+ ,as<s ,$ *er%$r3, '&,
*e,i,i$ner +i+ n$, c$n,r$# ,he 3anner an+ 3e,h$+s ') which res*$n+en, *er%$r3e+ ,hese
,as<s. 8eri#), ,he a'sence $% ,he e#e3en, $% c$n,r$# $n ,he *ar, $% ,he *e,i,i$ner engen+ers a
c$nc#&si$n ,ha, he is n$, an e3*#$)ee $% ,he *e,i,i$ner. M$re$ver, ,he a'sence $% ,he *ar,iesS
re,ainershi* agree3en, n$,wi,hs,an+ing, res*$n+en, c#ear#) a+3i,,e+ ,ha, *e,i,i$ner hire+ hi3
in a #i3i,e+ ca*aci,) $n#) an+ ,ha, ,here wi## 'e n$ e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween
,he3.
Res*$n+en, was we## aware $% ,he agree3en, ,ha, he was hire+ 3ere#) as a #iais$n $r
c$ns&#,an, $% ,he *e,i,i$ner an+ he agree+ ,$ *er%$r3 ,as<s %$r ,he *e,i,i$ner $n a ,e3*$rar)
e3*#$)3en, s,a,&s $n#). H$wever, res*$n+en, anch$rs his c#ai3 ,ha, he 'eca3e a reg&#ar
e3*#$)ee $% ,he *e,i,i$ner 'ase+ $n his c$n,en,i$n ,ha, ,he P,e3*$rar)P as*ec, $% his E$' an+
i,s P#i3i,e+P na,&re c$&#+ n$, have #as,e+ %$r e#even )ears &n#ess s$3e ,i3e +&ring ,ha,
*eri$+, he 'eca3e a reg&#ar e3*#$)ee $% ,he *e,i,i$ner ') c$n,in&a##) *er%$r3ing services %$r
,he c$3*an).
Res*$n+en, is n$, an e3*#$)ee, 3&ch 3$re a reg&#ar e3*#$)ee $% *e,i,i$ner. The a**e##a,e
c$&r,Ss *re3ise ,ha, reg&#ar e3*#$)ees are ,h$se wh$ *er%$r3 ac,ivi,ies which are +esira'#e
an+ necessar) %$r ,he '&siness $% ,he e3*#$)er is n$, +e,er3ina,ive in ,his case. In %ac,, an)
agree3en, 3a) *r$vi+e ,ha, $ne *ar,) sha## ren+er services %$r an+ in 'eha#% $% an$,her, n$
3a,,er h$w necessar) %$r ,he #a,,erSs '&siness, even wi,h$&, 'eing hire+ as an e3*#$)ee.
Hence,res*$n+en,Ss #eng,h $% service an+ *e,i,i$nerSs re*ea,e+ ac, $% assigning res*$n+en,
s$3e ,as<s ,$ 'e *er%$r3e+ +i+ n$, res&#, ,$ res*$n+en,Ss en,i,#e3en, ,$ ,he righ,s an+
*rivi#eges $% a reg&#ar e3*#$)ee.
9&r,her3$re, +es*i,e ,he %ac, ,ha, *e,i,i$ner 3a+e &se $% ,he services $% res*$n+en, %$r
e#even )ears, he s,i## cann$, 'e c$nsi+ere+ as a reg&#ar e3*#$)ee $% *e,i,i$ner. Ar,ic#e !1( $%
,he La'$r C$+e, in which ,he #$wer c$&r, &se+ ,$ '&,,ress i,s Jn+ings ,ha, res*$n+en, 'eca3e
a reg&#ar e3*#$)ee $% ,he *e,i,i$ner, is n$, a**#ica'#e in ,he case a, 'ar. In+ee+, ,he C$&r, has
r&#e+ ,ha, sai+ *r$visi$n is n$, ,he )ar+s,ic< %$r +e,er3ining ,he eFis,ence $% an e3*#$)3en,
re#a,i$nshi* 'eca&se i, 3ere#) +is,ing&ishes 'e,ween ,w$ <in+s $% e3*#$)ees, i.e., reg&#ar
e3*#$)ees an+ cas&a# e3*#$)ees, %$r *&r*$ses $% +e,er3ining ,he righ, $% an e3*#$)ee ,$
cer,ain 'eneJ,s, ,$ E$in $r %$r3 a &ni$n, $r ,$ sec&ri,) $% ,en&reO i, +$es n$, a**#) where ,he
eFis,ence $% an e3*#$)3en, re#a,i$nshi* is in +is*&,e.I, is, ,here%$re, err$ne$&s $n ,he *ar, $%
,he C$&r, $% A**ea#s ,$ re#) $n Ar,ic#e !1( in +e,er3ining whe,her an e3*#$)er5e3*#$)ee
re#a,i$nshi* eFis,s 'e,ween res*$n+en, an+ ,he *e,i,i$ner.
C$nsi+ering ,ha, ,here is n$ e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween ,he *ar,ies, ,he
,er3ina,i$n $% res*$n+en,Ss services ') ,he *e,i,i$ner a%,er +&e n$,ice +i+ n$, c$ns,i,&,e i##ega#
+is3issa# warran,ing his reins,a,e3en, an+ ,he *a)3en, $% %&## 'ac<wages, a##$wances an+
$,her 'eneJ,s.
21. Se/lan(e vs. CA, G.R. No. 19)*2), Augus( 1., 2"11
9ac,sL
Pe,i,i$ners Mar,ici$ Se3'#an,e an+ 7&'ric< Pi#ar w$r<e+ in ,he Ga##era +e Man+a&e $wne+ ')
,he res*$n+en,s5s*$&ses 8icen,e an+ Maria L&isa L$$,. The *e,i,i$ners ren+ere+ ,heir services
as ,he $Icia# 3assia+$r an+ sen,encia+$r in 199. As ,he 3asia+$r, Se3'#an,e ca##s an+
,a<es ,he 'e,s %r$3 ,he ga3ec$c< $wners an+ $,her 'e,,$rs an+ $r+ers ,he s,ar, $% ,he
c$c<Jgh,. He a#s$ +is,ri'&,es ,he winnings a%,er +e+&c,ing ,he arriba, $r ,he c$33issi$n %$r
Page !-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he c$c<*i,. Meanwhi#e, as ,he senteniador, Pi#ar $versees ,he *r$*er gaIng $% Jgh,ing
c$c<s, +e,er3ines ,he Jgh,ing c$c<sS *h)sica# c$n+i,i$n an+ ca*a'i#i,ies ,$ c$n,in&e ,he
c$c<Jgh,, an+ even,&a##) +ec#ares ,he res&#, $% ,he
c$c<Jgh,. As masiador an+ senteniador, Se3'#an,e receives PhP!,((( *er wee< $r a ,$,a# $%
PhP1,((( *er 3$n,h, whi#e Pi#ar ge,s PhP,2(( a wee< $r PhP1.,((( *er 3$n,h. The) w$r<
ever) T&es+a), We+nes+a), Sa,&r+a), an+ S&n+a) ever) wee<, eFc#&+ing 3$n,h#) +er'ies an+
c$c<Jgh,s he#+ $n s*ecia# h$#i+a)s. Their w$r<ing +a)s s,ar, a, 1L(( *.3. an+ #as, &n,i# 1!L((
3i+nigh,, $r &n,i# ,he ear#) h$&rs $% ,he 3$rning +e*en+ing $n ,he nee+s $% ,he c$c<*i,.
Pe,i,i$ners ha+ '$,h 'een iss&e+ e3*#$)eesS i+en,iJca,i$n car+s ,ha, ,he) wear ever) ,i3e
,he) re*$r, %$r +&,). H$wever $n N$ve3'er 1.,199, *e,i,i$ners were +enie+ en,r) in,$ ,he
c$c<*i, &*$n ,he ins,r&c,i$ns $% res*$n+en,s an+ were in%$r3e+ $% ,he ,er3ina,i$n $% ,heir
e3*#$)3en, eKec,ive ,ha, +a,e.
Res*$n+en,s +enie+ ,ha, *e,i,i$ners were ,heir e3*#$)ees an+ a##ege+ ,ha, ,he) were
ass$cia,es $% res*$n+en,sG in+e*en+en, c$n,rac,$r, T$3as 8ega. The) c#ai3e+ ,ha, *e,i,i$ners
have n$ reg&#ar w$r<ing ,i3e $r +a) an+ ,he) are %ree ,$ +eci+e %$r ,he3se#ves whe,her ,$
re*$r, %$r w$r< $r n$, $n an) c$c<Jgh,ing +a). An+ ,he i+en,iJca,i$n car+ iss&e+ was $n#) ,$
%ree ,he3 %r$3 ,he n$r3a# en,rance %ees an+ ,$ +iKeren,ia,e ,he3 %r$3 ,he genera# *&'#ic.
The La'$r Ar'i,er %$&n+ ,ha, ,here eFis, an e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween ,he
*e,i,i$ner an+ ,he res*$n+en,s 'eca&se ,he #a,,er *er%$r3e+ ,he w$r<s necessar) an+
in+is*ensa'#e ,$ ,he &s&a# ,ra+e $r '&siness $% ,he res*$n+en,s %$r a n&3'er $% )ears. I, has
r&#e+ ,ha, *e,i,i$ners were i##ega##) +is3isse+ an+ are en,i,#e+ ,$ ,heir 'ac<wages an+
se*ara,i$n *a). H$wever, ,he NLRC reverse+ ,he La'$r Ar'i,erGs +ecisi$n. I, he#+ ,ha,
res*$n+en,s having n$ *$wer $n ,he se#ec,i$n an+ engage3en, $% *e,i,i$ners an+ ,ha, n$
se*ara,e in+ivi+&a# c$n,rac, wi,h res*$n+en,s was ever eFec&,e+ ') *e,i,i$ners. In i,s a**ea#
,$ ,he CA, ,he #a,,er r&#e+ in %av$r %$r ,he res*$n+en,s an+ he#+ ,ha, re%erees an+ 'e,5,a<ers in
a c$c<Jgh, nee+ ,$ have ,he <in+ $% eF*er,ise ,ha, is charac,eris,ic $% ,he ga3e ,$ in,er*re,
3essages c$nve)e+ ') 3ere ges,&res. Hence, *e,i,i$ners are a<in ,$ in+e*en+en, c$n,rac,$rs
wh$ *$ssess &niA&e s<i##s , eF*er,ise an+ ,a#en, ,$ +is,ing&ish ,he3 %r$3 $r+inar) e3*#$)ees.
9&r,her, *e,i,i$ners were n$, *r$vi+e+ ') ,$$#s an+ ins,r&3en,a#i,ies ,he) nee+e+ ,$ *er%$r3
,heir w$r<. The) $n#) nee+ ,heir &niA&e s<i##s an+ ,a#en,s in ,he *er%$r3ance $% ,heir E$' as
3asia+$r an+ sen,encia+$r.
Iss&eL
Whe,her $r n$, ,he +is3issa# $% ,he *e,i,i$ners is i##ega# $n ,he gr$&n+ ,ha, ,ha, ,he) are
reg&#ar e3*#$)ees $% ,he res*$n+en,sW
R&#ingL
Res*$n+en,s ha+ n$ *ar, in *e,i,i$nersS se#ec,i$n an+ 3anage3en,O *e,i,i$nersS c$3*ensa,i$n
was *ai+ $&, $% ,he arriba =which is a *ercen,age +e+&c,e+ %r$3 ,he ,$,a# 'e,s?, n$, ')
*e,i,i$nersO an+ *e,i,i$ners *er%$r3e+ ,heir %&nc,i$ns as masiador an+ senteniador %ree %r$3
,he +irec,i$n an+ c$n,r$# $% res*$n+en,s. In ,he c$n+&c, $% ,heir w$r<, *e,i,i$ners re#ie+ 3ain#)
$n ,heir PeF*er,ise ,ha, is charac,eris,ic $% ,he c$c<Jgh, ga3'#ing,P an+ were never given ')
res*$n+en,s an) ,$$# nee+e+ %$r ,he *er%$r3ance $% ,heir w$r<. Res*$n+en,s, n$, 'eing
*e,i,i$nersS e3*#$)ers, c$&#+ never have +is3isse+, #ega##) $r i##ega##), *e,i,i$ners, since
res*$n+en,s were wi,h$&, *$wer $r *rer$ga,ive ,$ +$ s$ in ,he Jrs, *#ace. The r&#e $n ,he
*$s,ing $% an a**ea# '$n+ cann$, +e%ea, ,he s&'s,an,ive righ,s $% res*$n+en,s ,$ 'e %ree %r$3
an &nwarran,e+ '&r+en $% answering %$r an i##ega# +is3issa# %$r which ,he) were never
res*$nsi'#e.
Page !"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
22. 'ernar(e vs. 3hil. 'as:e(all Assoc., G.R. No. 192"-*, Se%(e/er 1*, 2"11
9ac,sL
C$3*#ainan,s =6$se Me# Bernar,e an+ Rena,$ G&evarra? aver ,ha, ,he) were invi,e+ ,$ E$in ,he
PBA as re%erees. 7&ring ,he #ea+ershi* $% C$33issi$ner E3i#i$ Bernar+in$, ,he) were 3a+e ,$
sign c$n,rac,s $n a )ear5,$5)ear 'asis. 7&ring ,he ,er3 $% C$33issi$ner Ea#a, h$wever,
changes were 3a+e $n ,he ,er3s $% ,heir e3*#$)3en,.
C$3*#ainan, Bernar,e, %$r ins,ance, was n$, 3a+e ,$ sign a c$n,rac, +&ring ,he Jrs,
c$n%erence $% ,he A##59i#i*in$ C&* which was %r$3 9e'r&ar) !, !(( ,$ 6&ne !((. I, was $n#)
+&ring ,he sec$n+ c$n%erence when he was 3a+e ,$ sign a $ne an+ a ha#% 3$n,h c$n,rac, %$r
,he *eri$+ 6&#) 1 ,$ A&g&s, 2, !((.
:n 6an&ar) 12, !((., Bernar,e receive+ a #e,,er %r$3 ,he :Ice $% ,he C$33issi$ner a+vising
hi3 ,ha, his c$n,rac, w$&#+ n$, 'e renewe+ ci,ing his &nsa,is%ac,$r) *er%$r3ance $n an+ $K
,he c$&r,. I, was a ,$,a# sh$c< %$r Bernar,e wh$ was awar+e+ Re%eree $% ,he )ear in !((. He
%e#, ,ha, ,he +is3issa# was ca&se+ ') his re%&sa# ,$ JF a ga3e &*$n $r+er $% Ernie 7e Le$n.
:n ,he $,her han+, c$3*#ainan, G&evarra a##eges ,ha, he was invi,e+ ,$ E$in ,he PBA *$$# $%
re%erees in 9e'r&ar) !((1. :n March 1, !((1, he signe+ a c$n,rac, as ,rainee. Beginning !((!,
he signe+ a )ear#) c$n,rac, as Reg&#ar C#ass C re%eree. :n Ma) -, !((, res*$n+en, Mar,ine4
iss&e+ a 3e3$ran+&3 ,$ G&evarra eF*ressing +issa,is%ac,i$n $ver his A&es,i$ning $n ,he
assign3en, $% re%erees $Icia,ing $&,5$%5,$wn ga3es. Beginning 9e'r&ar) !((., he was n$
#$nger 3a+e ,$ sign a c$n,rac,.
Res*$n+en,s aver, $n ,he $,her han+, ,ha, c$3*#ainan,s en,ere+ in,$ ,w$ c$n,rac,s $% re,ainer
wi,h ,he PBA in ,he )ear !((. The Jrs, c$n,rac, was %$r ,he *eri$+ 6an&ar) 1, !(( ,$ 6&#) 12,
!((O an+ ,he sec$n+ was %$r Se*,e3'er 1 ,$ 7ece3'er !((. A%,er ,he #a*se $% ,he #a,,er
*eri$+, PBA +eci+e+ n$, ,$ renew ,heir c$n,rac,s.
C$3*#ainan,s were n$, i##ega##) +is3isse+ 'eca&se ,he) were n$, e3*#$)ees $% ,he PBA. Their
res*ec,ive c$n,rac,s $% re,ainer were si3*#) n$, renewe+. PBA ha+ ,he *rer$ga,ive $% whe,her
$r n$, ,$ renew ,heir c$n,rac,s, which ,he) <new were JFe+.
B$,h ,he La'$r Ar'i,er an+ NLRC +eci+e+ ,ha, ,he *e,i,i$ners were e3*#$)ees wh$se
+is3issa#s ') res*$n+en,s were i##ega#.

H$wever, ,he C$&r, $% A**ea#s $ver,&rne+ ,he +ecisi$ns $% ,he NLRC an+ La'$r Ar'i,er $n ,he
gr$&n+ ,ha, ,he *e,i,i$ner is an in+e*en+en, c$n,rac,$r since res*$n+en,s +i+ n$, eFercise an)
%$r3 $% c$n,r$# $ver ,he 3eans an+ 3e,h$+s ') which *e,i,i$ner *er%$r3e+ his w$r< as a
'as<e,'a## re%eree.
Iss&eL
Whe,her *e,i,i$ner is an e3*#$)ee $% res*$n+en,s, which in ,&rn +e,er3ines whe,her
*e,i,i$ner was i##ega##) +is3isse+.
R&#ing
Page !1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The S&*re3e C$&r, aIr3e+ ,he assai#e+ +ecisi$n $% ,he C$&r, $% A**ea#s.
T$ +e,er3ine ,he eFis,ence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, case #aw has c$nsis,en,#)
a**#ie+ ,he %$&r5%$#+ ,es,, ,$ wi,L =a? ,he se#ec,i$n an+ engage3en, $% ,he e3*#$)eeO ='? ,he
*a)3en, $% wagesO =c? ,he *$wer $% +is3issa#O an+ =+? ,he e3*#$)erSs *$wer ,$ c$n,r$# ,he
e3*#$)ee $n ,he 3eans an+ 3e,h$+s ') which ,he w$r< is acc$3*#ishe+. The s$5ca##e+
Pc$n,r$# ,es,P is ,he 3$s, i3*$r,an, in+ica,$r $% ,he *resence $r a'sence $% an e3*#$)er5
e3*#$)ee re#a,i$nshi*.
In ,his case, PBA a+3i,s re*ea,e+#) engaging *e,i,i$nerSs services, as sh$wn in ,he re,ainer
c$n,rac,s. PBA *a)s *e,i,i$ner a re,ainer %ee, eFc#&sive $% *er +ie3 $r a##$wances, as
s,i*&#a,e+ in ,he re,ainer c$n,rac,. PBA can ,er3ina,e ,he re,ainer c$n,rac, %$r *e,i,i$nerSs
vi$#a,i$n $% i,s ,er3s an+ c$n+i,i$ns.
H$wever, res*$n+en,s arg&e ,ha, ,he a##5i3*$r,an, e#e3en, $% c$n,r$# is #ac<ing in ,his case,
3a<ing *e,i,i$ner an in+e*en+en, c$n,rac,$r an+ n$, an e3*#$)ee $% res*$n+en,s.
We agree wi,h res*$n+en,s ,ha, $nce in ,he *#a)ing c$&r,, ,he re%erees eFercise ,heir $wn
in+e*en+en, E&+g3en,, 'ase+ $n ,he r&#es $% ,he ga3e, as ,$ when an+ h$w a ca## $r +ecisi$n
is ,$ 'e 3a+e. The re%erees +eci+e whe,her an in%rac,i$n was c$33i,,e+, an+ ,he PBA cann$,
$verr&#e ,he3 $nce ,he +ecisi$n is 3a+e $n ,he *#a)ing c$&r,. The re%erees are ,he $n#),
a's$#&,e, an+ Jna# a&,h$ri,) $n ,he *#a)ing c$&r,. Res*$n+en,s $r an) $% ,he PBA $Icers
cann$, an+ +$ n$, +e,er3ine which ca##s ,$ 3a<e $r n$, ,$ 3a<e an+ cann$, c$n,r$# ,he
re%eree when he '#$ws ,he whis,#e 'eca&se s&ch a&,h$ri,) eFc#&sive#) 'e#$ngs ,$ ,he re%erees.
The ver) na,&re $% *e,i,i$nerSs E$' $% $Icia,ing a *r$%essi$na# 'as<e,'a## ga3e &n+$&',e+#)
ca##s %$r %ree+$3 $% c$n,r$# ') res*$n+en,s.
M$re$ver, ,he %$##$wing circ&3s,ances in+ica,e ,ha, *e,i,i$ner is an in+e*en+en, c$n,rac,$rL
=1? ,he re%erees are reA&ire+ ,$ re*$r, %$r w$r< $n#) when PBA ga3es are sche+&#e+, which is
,hree ,i3es a wee< s*rea+ $ver an average $% $n#) 1(2 *#a)ing +a)s a )ear, an+ ,he) $Icia,e
ga3es a, an average $% ,w$ h$&rs *er ga3eO an+ =!? ,he $n#) +e+&c,i$ns %r$3 ,he %ees
receive+ ') ,he re%erees are wi,hh$#+ing ,aFes.
In $,her w$r+s, &n#i<e reg&#ar e3*#$)ees wh$ $r+inari#) re*$r, %$r w$r< eigh, h$&rs *er +a) %$r
Jve +a)s a wee<, *e,i,i$ner is reA&ire+ ,$ re*$r, %$r w$r< $n#) when PBA ga3es are sche+&#e+
$r ,hree ,i3es a wee< a, ,w$ h$&rs *er ga3e. In a++i,i$n, ,here are n$ +e+&c,i$ns %$r
c$n,ri'&,i$ns ,$ ,he S$cia# Sec&ri,) S)s,e3, Phi#hea#,h $r Pag5I'ig, which are ,he &s&a#
+e+&c,i$ns %r$3 e3*#$)eesS sa#aries. These &n+is*&,e+ circ&3s,ances '&,,ress ,he %ac, ,ha,
*e,i,i$ner is an in+e*en+en, c$n,rac,$r, an+ n$, an e3*#$)ee $% res*$n+en,s.
9&r,her3$re, ,he a**#ica'#e %$reign case #aw +ec#ares ,ha, a re%eree is an in+e*en+en,
c$n,rac,$r, wh$se s*ecia# s<i##s an+ in+e*en+en, E&+g3en, is reA&ire+ s*eciJca##) %$r s&ch
*$si,i$n an+ cann$, *$ssi'#) 'e c$n,r$##e+ ') ,he hiring *ar,).
In a++i,i$n, ,he %ac, ,ha, PBA re*ea,e+#) hire+ *e,i,i$ner +$es n$, ') i,se#% *r$ve ,ha,
*e,i,i$ner is an e3*#$)ee $% ,he %$r3er. 9$r a hire+ *ar,) ,$ 'e c$nsi+ere+ an e3*#$)ee, ,he
hiring *ar,) 3&s, have c$n,r$# $ver ,he 3eans an+ 3e,h$+s ') which ,he hire+ *ar,) is ,$
*er%$r3 his w$r<, which is a'sen, in ,his case. The c$n,in&$&s rehiring ') PBA $% *e,i,i$ner
si3*#) signiJes ,he renewa# $% ,he c$n,rac, 'e,ween PBA an+ *e,i,i$ner, an+ high#igh,s ,he
sa,is%ac,$r) services ren+ere+ ') *e,i,i$ner warran,ing s&ch c$n,rac, renewa#. C$nverse#), i%
PBA +eci+es ,$ +isc$n,in&e *e,i,i$nerSs services a, ,he en+ $% ,he ,er3 JFe+ in ,he c$n,rac,,
whe,her %$r &nsa,is%ac,$r) services, $r vi$#a,i$n $% ,he ,er3s an+ c$n+i,i$ns $% ,he c$n,rac,, $r
%$r wha,ever $,her reas$n, ,he sa3e 3ere#) res&#,s in ,he n$n5renewa# $% ,he c$n,rac,, as in
Page !9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he *resen, case. The n$n5renewa# $% ,he c$n,rac, 'e,ween ,he *ar,ies +$es n$, c$ns,i,&,e
i##ega# +is3issa# $% *e,i,i$ner ') res*$n+en,s.
23. Lirio vs. Genovia, G.R. No. 1)97.7, Nove/er 23, 2"11
9ac,sL
Res*$n+en, Wi#3er 7. Gen$via J#e+ a c$3*#ain, agains, *e,i,i$ner Cesar Liri$ an+B$r Ce#<$r
A+ S$nic3iF Rec$r+ing S,&+i$ %$r i##ega# +is3issa#, n$n5*a)3en, $% c$33issi$n an+ awar+ $%
3$ra# an+ eFe3*#ar) +a3ages.

Res*$n+en, Gen$via a##ege+ in his *$si,i$n *a*er ,ha, $n A&g&s, 12, !((1, he was hire+ as
s,&+i$ 3anager ') *e,i,i$ner Liri$, $wner $% Ce#<$r A+ S$nic3iF Rec$r+ing S,&+i$ =Ce#<$r?. He
was e3*#$)e+ ,$ 3anage an+ $*era,e Ce#<$r an+ ,$ *r$3$,e an+ se## ,he rec$r+ing s,&+i$Ss
services ,$ 3&sic en,h&sias,s an+ $,her *r$s*ec,ive c#ien,s. He receive+ a 3$n,h#) sa#ar)
$% P",(((.((. The) a#s$ agree+ ,ha, he was en,i,#e+ ,$ an a++i,i$na# c$33issi$n $% P1((.((
*er h$&r as rec$r+ing ,echnician whenever a c#ien, &ses ,he s,&+i$ %$r rec$r+ing, e+i,ing $r
an) re#a,e+ w$r<. He was 3a+e ,$ re*$r, %$r w$r< %r$3 M$n+a) ,$ 9ri+a) %r$3 9L(( a.3. ,$ -
*.3. :n Sa,&r+a)s, he was reA&ire+ ,$ w$r< ha#%5+a) $n#), '&, 3$s, $% ,he ,i3e, he s,i##
ren+ere+ eigh, h$&rs $% w$r< $r 3$re. A## ,he e3*#$)ees $% *e,i,i$ner, inc#&+ing res*$n+en,,
ren+ere+ $ver,i3e w$r< a#3$s, ever)+a), '&, *e,i,i$ner never <e*, a +ai#) ,i3e rec$r+ ,$
av$i+ *a)ing ,he e3*#$)ees $ver,i3e *a).

He a#s$ a##ege+ ,ha, *e,i,i$ner a**r$ache+ hi3 an+ ,$#+ hi3 a'$&, his *r$Eec, ,$ *r$+&ce an
a#'&3 %$r his +a&gh,er, Ce#ine Mei Liri$. Pe,i,i$ner as<e+ res*$n+en, ,$ c$3*$se an+ arrange
s$ngs %$r Ce#ine an+ *r$3ise+ ,ha, he =Liri$? w$&#+ +ra%, a c$n,rac, ,$ ass&re res*$n+en, $% his
c$3*ensa,i$n %$r s&ch services. As agree+ &*$n, ,he a++i,i$na# services ,ha, res*$n+en,
w$&#+ ren+er inc#&+e+ c$3*$sing an+ arranging 3&sica# sc$res $n#), whi#e ,he ,echnica#
as*ec, in *r$+&cing ,he a#'&3, s&ch as +igi,a# e+i,ing, 3iFing an+ s$&n+ engineering w$&#+ 'e
*er%$r3e+ ') res*$n+en, in his ca*aci,) as s,&+i$ 3anager %$r which he was *ai+ $n a
3$n,h#) 'asis. Pe,i,i$ner ins,r&c,e+ res*$n+en, ,ha, his w$r< $n ,he a#'&3 as c$3*$ser an+
arranger w$&#+ $n#) 'e +$ne +&ring his s*are ,i3e, since his $,her w$r< as s,&+i$ 3anager
was ,he *ri$ri,). Res*$n+en, ,hen s,ar,e+ w$r<ing $n ,he a#'&3.

A%,er ,he a#'&3 was c$3*#e,e+ an+ re#ease+, res*$n+en, again re3in+e+ *e,i,i$ner a'$&, ,he
c$n,rac, $n his c$3*ensa,i$n as c$3*$ser an+ arranger $% ,he a#'&3. Pe,i,i$ner ,$#+
res*$n+en, ,ha, since he was *rac,ica##) a n$'$+) an+ ha+ *r$ven n$,hing )e, in ,he 3&sic
in+&s,r), res*$n+en, +i+ n$, +eserve a high c$3*ensa,i$n, an+ he sh$&#+ 'e ,han<%&# ,ha, he
was given a E$' ,$ %ee+ his %a3i#). Pe,i,i$ner in%$r3e+ res*$n+en, ,ha, he was en,i,#e+ $n#) ,$
!(V $% ,he ne, *r$J,, an+ n$, $% ,he gr$ss sa#es $% ,he a#'&3, an+ ,ha, ,he sa#aries he
receive+ an+ w$&#+ c$n,in&e ,$ receive as s,&+i$ 3anager $% Ce#<$r w$&#+ 'e +e+&c,e+ %r$3
,he sai+ !(V ne, *r$J, share. Res*$n+en, $'Eec,e+ an+ insis,e+ ,ha, he 'e *r$*er#)
c$3*ensa,e+. :n March 1., !((!, *e,i,i$ner ver'a##) ,er3ina,e+ res*$n+en,Gs services, an+
he was ins,r&c,e+ n$, ,$ re*$r, %$r w$r<.

Res*$n+en, asser,s ,ha, he was i##ega##) +is3isse+ as he was ,er3ina,e+ wi,h$&, an) va#i+
gr$&n+s, an+ n$ hearing was c$n+&c,e+ 'e%$re he was ,er3ina,e+, in vi$#a,i$n $% his
c$ns,i,&,i$na# righ, ,$ +&e *r$cess. Having w$r<e+ %$r 3$re ,han siF 3$n,hs, he was a#rea+) a
reg&#ar e3*#$)ee. A#,h$&gh he was a s$ ca##e+ Ms,&+i$ 3anager,N he ha+ n$ 3anageria#
*$wers, '&, was 3ere#) an $r+inar) e3*#$)ee.

Page (
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Res*$n+en, *ra)e+ %$r his reins,a,e3en, wi,h$&, #$ss $% seni$ri,) righ,s, $r, in ,he a#,erna,ive,
,ha, he 'e *ai+ se*ara,i$n *a), 'ac<wages an+ $ver,i3e *a)O an+ ,ha, he 'e awar+e+ &n*ai+
c$33issi$n %$r services ren+ere+ as a s,&+i$ ,echnician as we## as 3$ra# an+ eFe3*#ar)
+a3ages.

Res*$n+en,Gs evi+ence c$nsis,e+ $% ,he Pa)r$## +a,e+ 6&#) 1, !((1 ,$ March 12, !((!, which
was cer,iJe+ c$rrec, ') *e,i,i$ner, an+ Pe,,) Cash 8$&cher evi+encing recei*, $% *a)r$##
*a)3en,s ') res*$n+en, %r$3 Ce#<$r.

In +e%ense, *e,i,i$ner s,a,e+ in his P$si,i$n Pa*er ,ha, res*$n+en, was n$, hire+ as s,&+i$
3anager, c$3*$ser, ,echnician $r as an e3*#$)ee in an) $,her ca*aci,) $% Ce#<$r. Res*$n+en,
c$&#+ n$, have 'een hire+ as a s,&+i$ 3anager, since ,he rec$r+ing s,&+i$ has n$ *ers$nne#
eFce*, *e,i,i$ner.
Acc$r+ing ,$ *e,i,i$ner, res*$n+en, ha+ n$ ,rac< rec$r+ as a c$3*$ser, an+ he was n$, <n$wn
in ,he Je#+ $% 3&sic. Never,he#ess, a%,er s$3e +isc&ssi$n, res*$n+en, ver'a##) agree+ wi,h
*e,i,i$ner ,$ c$5*r$+&ce ,he a#'&3.

Pe,i,i$ner asser,e+ ,ha, his re#a,i$nshi* wi,h res*$n+en, is $ne $% an in%$r3a# *ar,nershi* an+
,ha, he ha+ n$ c$n,r$# $ver ,he ,i3e an+ 3anner ') which res*$n+en, c$3*$se+ $r arrange+
,he s$ngs, eFce*, $n ,he res&#, ,here$%. Res*$n+en, re*$r,e+ ,$ ,he rec$r+ing s,&+i$ 'e,ween
1(L(( a.3. an+ 1!L(( n$$n. Hence, *e,i,i$ner c$n,en+e+ ,ha, n$ e3*#$)er5e3*#$)ee
re#a,i$nshi* eFis,e+ 'e,ween hi3 an+ ,he res*$n+en,, an+ ,here was n$ i##ega# +is3issa# ,$
s*ea< $%.

The La'$r Ar'i,er ren+ere+ a +ecisi$n Jn+ing ,ha, an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,e+
'e,ween *e,i,i$ner an+ res*$n+en,, an+ ,ha, res*$n+en, was i##ega##) +is3isse+.
H$wever, ,he NLRC reverse+ an+ se, asi+e ,he +ecisi$n $% ,he La'$r Ar'i,er $n ,he gr$&n+ ,ha,
res*$n+en, %ai#e+ ,$ *r$ve his e3*#$)3en, ,a#e wi,h s&'s,an,ia# evi+ence. I, he#+
,ha, res*$n+en, %ai#e+ ,$ *r$ve+ wi,h s&'s,an,ia# evi+ence ,ha, he was se#ec,e+ an+ engage+
') *e,i,i$ner, ,ha, *e,i,i$ner ha+ ,he *$wer ,$ +is3iss hi3, an+ ,ha, ,he) ha+ ,he *$wer ,$
c$n,r$# hi3 n$, $n#) as ,$ ,he res&#, $% his w$r<, '&, a#s$ as ,$ ,he 3eans an+ 3e,h$+s $%
acc$3*#ishing his w$r<.

The C$&r, $% A**ea#s ren+ere+ a +ecisi$n reversing an+ se,,ing asi+e ,he res$#&,i$n $% ,he
NLRC, an+ reins,a,ing ,he +ecisi$n $% ,he La'$r Ar'i,er.
Hence, *e,i,i$ner Liri$ J#e+ ,his *e,i,i$n.
Iss&eL
Whe,her res*$n+en, is an e3*#$)ee $% ,he *e,i,i$ner, which in ,&rn +e,er3ines whe,her
res*$n+en, was i##ega##) +is3isse+.
R&#ingL
The S&*re3e C$&r, aIr3e+ ,he assai#e+ +ecisi$n $% ,he C$&r, $% A**ea#s.
Be%$re a case %$r i##ega# +is3issa# can *r$s*er, i, 3&s, Jrs, 'e es,a'#ishe+ ,ha, an e3*#$)er5
e3*#$)ee re#a,i$nshi* eFis,e+ 'e,ween *e,i,i$ner an+ res*$n+en,.

Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The e#e3en,s ,$ +e,er3ine ,he eFis,ence $% an e3*#$)3en, re#a,i$nshi* areL =a? ,he se#ec,i$n
an+ engage3en, $% ,he e3*#$)eeO ='? ,he *a)3en, $% wagesO =c? ,he *$wer $% +is3issa#O an+
=+? ,he e3*#$)erGs *$wer ,$ c$n,r$# ,he e3*#$)eeGs c$n+&c,. The 3$s, i3*$r,an, e#e3en, is
,he e3*#$)erGs c$n,r$# $% ,he e3*#$)eeGs c$n+&c,, n$, $n#) as ,$ ,he res&#, $% ,he w$r< ,$ 'e
+$ne, '&, a#s$ as ,$ ,he 3eans an+ 3e,h$+s ,$ acc$3*#ish i,.

I, is se,,#e+ ,ha, n$ *ar,ic&#ar %$r3 $% evi+ence is reA&ire+ ,$ *r$ve ,he eFis,ence $% an
e3*#$)er5e3*#$)ee re#a,i$nshi*. An) c$3*e,en, an+ re#evan, evi+ence ,$ *r$ve ,he
re#a,i$nshi* 3a) 'e a+3i,,e+.

In ,his case, ,he +$c&3en,ar) evi+ence *resen,e+ ') res*$n+en, ,$ *r$ve ,ha, he was an
e3*#$)ee $% *e,i,i$ner are as %$##$wsL =a? a +$c&3en, +en$3ina,e+ as P*a)r$##P =+a,e+ 6&#)
1, !((1 ,$ March 12, !((!? erti-ed orret b& petitioner, which sh$we+ ,ha, res*$n+en,
receive+ a 3$n,h#) sa#ar) $% P",(((.(( =P,2((.(( ever) 12
,h
$% ,he 3$n,h an+
an$,her P,2((.(( ever) (
,h
$% ,he 3$n,h? wi,h ,he c$rres*$n+ing +e+&c,i$ns +&e ,$
a'sences inc&rre+ ') res*$n+en,O an+ =!? c$*ies $% *e,,) cash v$&chers, sh$wing ,he a3$&n,s
he receive+ an+ signe+ %$r in ,he *a)r$##s.

The sai+ +$c&3en,s sh$we+ ,ha, *e,i,i$ner hire+ res*$n+en, as an e3*#$)ee an+ he was *ai+
3$n,h#) wages $% P",(((.((. Pe,i,i$ner wie#+e+ ,he *$wer ,$ +is3iss as res*$n+en, s,a,e+
,ha, he was ver'a##) +is3isse+ ') *e,i,i$ner, an+ res*$n+en,, ,herea%,er, J#e+ an ac,i$n %$r
i##ega# +is3issa# agains, *e,i,i$ner. The *$wer $% c$n,r$# re%ers 3ere#) ,$ ,he eFis,ence $% ,he
*$wer. I, is n$, essen,ia# %$r ,he e3*#$)er ,$ ac,&a##) s&*ervise ,he *er%$r3ance $% +&,ies $%
,he e3*#$)ee, as i, is s&Icien, ,ha, ,he %$r3er has a righ, ,$ wie#+ ,he *$wer. Never,he#ess,
*e,i,i$ner s,a,e+ in his P$si,i$n Pa*er ,ha, i, was agree+ ,ha, he w$&#+ he#* an+ ,each
res*$n+en, h$w ,$ &se ,he s,&+i$ eA&i*3en,. In s&ch case, *e,i,i$ner cer,ain#) ha+ ,he *$wer
,$ chec< $n ,he *r$gress an+ w$r< $% res*$n+en,.

:n ,he $,her han+, *e,i,i$ner %ai#e+ ,$ *r$ve ,ha, his re#a,i$nshi* wi,h res*$n+en, was $ne $%
*ar,nershi*. S&ch c#ai3 was n$, s&**$r,e+ ') an) wri,,en agree3en,. The C$&r, n$,es ,ha, in
,he *a)r$## +a,e+ 6&#) 1, !((1 ,$ March 12, !((!, ,here were +e+&c,i$ns %r$3 ,he wages $%
res*$n+en, %$r his a'sence %r$3 w$r<, which nega,es *e,i,i$nerGs c#ai3 ,ha, ,he wages *ai+
were a+vances %$r res*$n+en,Gs w$r< in ,he *ar,nershi*.
The C$&r, agrees wi,h ,he C$&r, $% A**ea#s ,ha, ,he evi+ence *resen,e+ ') ,he *ar,ies sh$we+
,ha, an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,e+ 'e,ween *e,i,i$ner an+ res*$n+en,.
In ,er3ina,i$n cases, ,he '&r+en is &*$n ,he e3*#$)er ,$ sh$w ') s&'s,an,ia# evi+ence ,ha,
,he ,er3ina,i$n was %$r #aw%&# ca&se an+ va#i+#) 3a+e.Ar,ic#e !"" ='? $% ,he La'$r C$+e *&,s
,he '&r+en $% *r$ving ,ha, ,he +is3issa# $% an e3*#$)ee was %$r a va#i+ $r a&,h$ri4e+ ca&se $n
,he e3*#$)er, wi,h$&, +is,inc,i$n whe,her ,he e3*#$)er a+3i,s $r +$es n$, a+3i, ,he
+is3issa#. 9$r an e3*#$)eeGs +is3issa# ,$ 'e va#i+, =a? ,he +is3issa# 3&s, 'e %$r a va#i+ ca&se,
an+ ='? ,he e3*#$)ee 3&s, 'e aK$r+e+ +&e *r$cess. Pr$ce+&ra# +&e *r$cess reA&ires ,he
e3*#$)er ,$ %&rnish an e3*#$)ee wi,h ,w$ wri,,en n$,ices 'e%$re ,he #a,,er is +is3isse+L =1?
,he n$,ice ,$ a**rise ,he e3*#$)ee $% ,he *ar,ic&#ar ac,s $r $3issi$ns %$r which his s$&gh,,
which is ,he eA&iva#en, $% a chargeO an+ =!? ,he n$,ice in%$r3ing ,he e3*#$)ee $% his
+is3issa#, ,$ 'e iss&e+ a%,er ,he e3*#$)ee has 'een given reas$na'#e $**$r,&ni,) ,$ answer
an+ ,$ 'e hear+ $n his +e%ense. Pe,i,i$ner %ai#e+ ,$ c$3*#) wi,h ,hese #ega# reA&ire3en,sO
hence, ,he C$&r, $% A**ea#s c$rrec,#) aIr3e+ ,he La'$r Ar'i,erGs Jn+ing ,ha, res*$n+en, was
i##ega##) +is3isse+, an+ en,i,#e+ ,$ ,he *a)3en, $% 'ac<wages, an+ se*ara,i$n *a) in #ie& $%
reins,a,e3en,.

Page !
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
2*. 2ao vs. 'CC 3ro&uc( Sales !nc., G.R. No. 1)37"", A%ril 1-, 2"12
9ac,sL
Pe,i,i$ner 3ain,aine+ ,ha, res*$n+en, BCC Pr$+&c, Sa#es Inc. =BCC? an+ i,s Presi+en,,
Terrance T), e3*#$)e+ hi3 as c$3*,r$##er s,ar,ing %r$3 Se*,e3'er 1992 wi,h a 3$n,h#) sa#ar)
$% P!(,(((.(( ,$ han+#e ,he Jnancia# as*ec, $% BCCGs '&siness. :n :c,$'er 19,1992, ,he
sec&ri,) g&ar+s $% BCC, ac,ing &*$n ,he ins,r&c,i$n $% T), 'arre+ hi3 %r$3 en,ering ,he
*re3ises $% BCC where he ,hen w$r<e+. His a,,e3*,s ,$ re*$r, ,$ w$r< in N$ve3'er an+
7ece3'er 1!, 1992 were %r&s,ra,e+ 'eca&se he c$n,in&e+ ,$ 'e 'arre+ %r$3 en,ering ,he
*re3ises $% BCC. He ,hen J#e+ a c$3*#ain, %$r i##ega# +is3issa#, reins,a,e3en, wi,h %&##
'ac<wages, n$n5*a)3en, $% wages, +a3ages an+ a,,$rne)Gs %ees.
Res*$n+en,s c$&n,ere+ ,ha, *e,i,i$ner was n$, ,heir e3*#$)ee '&, ,he e3*#$)ee $%
S$'ien 9$$+ C$r*$ra,i$n =S9C?, ,he 3aE$r cre+i,$r an+ s&**#ier $% BCCO an+ ,ha, S9C ha+
*$s,e+ hi3 as i,s c$3*,r$##er in BCC ,$ $versee BCCGs Jnances an+ '&siness $*era,i$ns an+ ,$
#$$< a%,er S9CGs in,eres,s $r inves,3en,s in BCC.
Iss&eL
Whe,her $r n$, an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,e+ 'e,ween *e,i,i$ner 6a$ an+ BCC
R&#ingL
The S&*re3e C$&r, s*ea<ing ,hr$&gh 6&s,ice Bersa3in +ec#are+ ,ha, ,he c$&r, cann$, si+e
wi,h *e,i,i$ner.
In +e,er3ining ,he *resence $r a'sence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, ,he
C$&r, has c$nsis,en,#) #$$<e+ %$r ,he %$##$wing inci+en,s, ,$ wi,L =a? ,he se#ec,i$n an+
engage3en, $% ,he e3*#$)eeO ='? ,he *a)3en, $% wagesO =c? ,he *$wer $% +is3issa#O an+ =+?
,he e3*#$)erGs *$wer ,$ c$n,r$# ,he e3*#$)ee $n ,he 3eans an+ 3e,h$+s ') which ,he w$r<
is acc$3*#ishe+. The #as, e#e3en,, ,he s$5ca##e+ c$n,r$# ,es,, is ,he 3$s, i3*$r,an, e#e3en,.
Here&n+er are s$3e $% ,he circ&3s,ances an+ inci+en,s $cc&rring whi#e *e,i,i$ner was
s&**$se+#) e3*#$)e+ ') BCC ,ha, +e'&n<e+ his c#ai3 agains, res*$n+en,s. I, can 'e +e+&ce+
%r$3 ,he March 199- aI+avi, $% *e,i,i$ner ,ha, res*$n+en,s cha##enge+ his a&,h$ri,) ,$ +e#iver
s$3e 121 chec<s ,$ S9C. C$nsi+ering ,ha, he c$n,es,e+ res*$n+en,sG cha##enge ') *$in,ing ,$
,he eFis,ing arrange3en,s 'e,ween BCC an+ S9C, it s$ould be lear t$at respondents did not
e2erise t$e po.er of ontrol over $im, beause $e t$ereb& ated for t$e bene-t and in t$e
interest of S3C more t$an of BCC.
Page
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
RIGHT TO SECURITY O TENURE
CASESL
1. AL<19<C3 vs. NLRC, 23* SCRA )7- +199*,
9ac,sL
Na,i$na# S,ee# C$r*$ra,i$n =NSC? e3*#$)e+ *e,i,i$ners in c$nnec,i$n wi,h i,s 9ive @ear
EF*ansi$n Pr$gra3. I, &n+er,$$< ,his *r$gra3 wi,h ,he en+ in view $% eF*an+ing ,he v$#&3e
an+ increasing ,he <in+s $% *r$+&c,s ,ha, i, 3a) $Ker %$r sa#e ,$ ,he *&'#ic. Pe,i,i$ners were
,hen ,er3ina,e+. The) J#e+ a c$3*#ain, %$r &n%air #a'$r *rac,ice, reg&#ari4a,i$n an+ 3$ne,ar)
'eneJ,s. Their c$n,en,i$n was ,ha, ,he) sh$&#+ 'e c$nsi+ere+ reg&#ar e3*#$)ees 'eca&se
,heir E$'s are necessar), +esira'#e an+ w$r< re#a,e+ ,$ NSCGs 3ain '&siness which is s,ee#
3a<ing an+ ,ha, ,he) have ren+ere+ service %$r 3$re ,han siF )ears.
Iss&eL
Whe,her $r n$, *e,i,i$ners were *r$*er#) charac,eri4e+ as reg&#ar e3*#$)ees ra,her ,han
*r$Eec, e3*#$)ees.
R&#ingL
Pe,i,i$ners are *r$Eec, e3*#$)ees. Pr$Eec, e3*#$)ees are ,h$se e3*#$)e+ %$r a JFe+ %$r a
s*eciJc *r$Eec, $r &n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a,
,he ,i3e $% ,he engage3en, $% ,he e3*#$)ee. :n ,he $,her han+, reg&#ar e3*#$)ees are
#ega##) en,i,#e+ ,$ re3ain in ,he service $% ,heir e3*#$)er &n,i# ,ha, service is ,er3ina,e+ ')
$ne $r an$,her $% ,he rec$gni4e+ 3$+es $r ,er3ina,i$n $% service &n+er ,he La'$r C$+e. The
*rinci*a# ,es, %$r +e,er3ining whe,her an e3*#$)ee is *r$*er#) charac,eri4e+ as *r$Eec,
e3*#$)ees is whe,her $r n$, ,he *r$Eec, e3*#$)ees were carr)ing $&, a s*eciJc *r$Eec, $r
&n+er,a<ing, ,he +&ra,i$n an+ ,he sc$*e $% which were s*eciJe+ a, ,he ,i3e ,he e3*#$)ees
were engage+ %$r ,ha, *r$Eec,. There are ,w$ ,)*es $% *r$Eec, ac,ivi,ies. 9irs, is ,ha, a *r$Eec,
c$&#+ re%er ,$ a *ar,ic&#ar E$' $r &n+er,a<ing ,ha, is wi,hin ,he reg&#ar $r &s&a# '&siness $% ,he
e3*#$)er c$3*an), '&, which is +is,inc, an+ se*ara,e an+ i+en,iJa'#e as s&ch, %r$3 ,he $,her
&n+er,a<ings $% ,he c$3*an). S&ch E$' $r &n+er,a<ing 'egins an+ en+s a, +e,er3ine+ $r
+e,er3ina'#e ,i3es. Sec$n+ is a *ar,ic&#ar E$' $r &n+er,a<ing ,ha, is n$, wi,hin ,he reg&#ar
'&siness $% ,he c$r*$ra,i$n. S&ch a E$' $r &n+er,a<ing 3&s, a#s$ 'e i+en,iJa'#) se*ara,e an+
+is,inc, %r$3 ,he $r+inar) $r reg&#ar '&siness $*era,i$ns $% ,he e3*#$)er. I, 3&s, a#s$ 'egin
an+ en+ a, +e,er3ine+ $r +e,er3ina'#e ,i3es. The case a, 'ar %a##s $n ,he sec$n+ ,)*e $%
*r$Eec, ac,ivi,). The carr)ing $&, $% ,he 9ive @ear EF*ansi$n Pr$gra3 c$ns,i,&,es a +is,inc,
&n+er,a<ing i+en,iJa'#e %r$3 ,he $r+inar) '&siness an+ ac,ivi,) $% NSC. Each c$3*$nen,
*r$Eec,, $% c$&rse, 'egins an+ en+s a, s*eciJe+ ,i3es which ha+ a#rea+) 'een +e,er3ine+ ')
,he ,i3e *e,i,i$ners were engage+. 7&ring ,he ,i3e *e,i,i$ners ren+ere+ services ,$ NSC, ,heir
w$r< was #i3i,e+ ,$ $ne $r an$,her $% ,he s*eciJc c$3*$nen, *r$Eec,s which 3a+e &* ,he 9ive
@ear EF*ansi$n Pr$gra3. The) were n$, hire+ $r assigne+ ,$ an) $,her *&r*$se.
The services $% ,hese *r$Eec, e3*#$)ees 3a) 'e #aw%&##) ,er3ina,e+ a, ,he c$3*#e,i$n $% ,he
*r$Eec,. I, is +e*en+en, an+ c$,er3in$&s wi,h ,he c$3*#e,i$n $r ,er3ina,i$n $% ,he s*eciJc
&n+er,a<ing $r ac,ivi,) %$r which ,he e3*#$)ee was hire+ which has 'een *re5+e,er3ine+ a,
,he ,i3e $% ,he engage3en,. 9&r,her3$re, ,he #eng,h $% service $% a *r$Eec, e3*#$)ee is n$,
Page .
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he c$n,r$##ing ,es, $% e3*#$)3en, $% ,en&re. The si3*#e %ac, ,ha, ,he e3*#$)3en, $%
*e,i,i$ners as *r$Eec, e3*#$)ees ha+ g$ne 'e)$n+ $ne )ear +$es n$, +e,rac, %r$3 $r #ega##)
+iss$#ve ,heir s,a,&s as *r$Eec, e3*#$)ees. Whichever ,)*e $% *r$Eec, e3*#$)3en, is %$&n+ in
a *ar,ic&#ar case, a c$33$n 'asic reA&isi,e is ,ha, ,he +esigna,i$n $% na3e+ e3*#$)ees as
P*r$Eec, e3*#$)eesP an+ ,heir assign3en, ,$ a s*eciJc *r$Eec,, are eKec,e+ an+ i3*#e3en,e+
in g$$+ %ai,h, an+ n$, 3ere#) as a 3eans $% eva+ing $,herwise a**#ica'#e reA&ire3en,s $%
#a'$r #aws.
2. Cos/os 'o((ling Cor%., vs NLRC, 2.. SCRA 3.- +199),
9ac,sL
Gi# C. Cas,r$ was e3*#$)e+ ') C$s3$s B$,,#ing C$r*$ra,i$n %$r a s*eciJc *eri$+. Having
sa,is%ac,$ri#) serve+ ,he c$3*an) %$r ,w$ =!? ,er3s, Cas,r$ was rec$33en+e+ %$r
ree3*#$)3en, wi,h ,he c$3*an)Gs Main,enance Tea3 %$r ,he 7ava$ Pr$Eec,, he was re5hire+
an+ assigne+ ,$ ,he Main,enance 7ivisi$n $% ,he 7ava$ Pr$Eec, ,as<e+ ,$ ins,a## ,he *riva,e
res*$n+en,Gs anneF *#an, 3achines in i,s 7ava$ *#an,. Cas,r$Gs e3*#$)3en, was ,er3ina,e+
+&e ,$ ,he c$3*#e,i$n $% ,he s*ecia# *r$Eec,. C$s3$s B$,,#ing C$r*$ra,i$n in va#i+ eFercise $%
i,s 3anage3en, *rer$ga,ive ,er3ina,e+ ,he services $% s$3e !!1 reg&#ar e3*#$)ees ')
reas$n $% re,rench3en,. 9$r $'vi$&s reas$ns, Cas,r$ was n$, a3$ng ,he #is, $% ,h$se reg&#ar
e3*#$)ees wh$se services were ,er3ina,e+ ') reas$n $% re,rench3en, $r ,h$se wh$
v$#&n,ari#) resigne+. Cas,r$ J#e+ a c$3*#ain, %$r i##ega# +is3issa# agains, C$s3$s B$,,#ing
C$r*$ra,i$n wi,h ,he La'$r Ar'i,er c$n,en+ing ,ha, 'eing a reg&#ar e3*#$)ee, he c$&#+ n$, 'e
+is3isse+ wi,h$&, a E&s, an+ va#i+ ca&se. The c$3*an) a##ege+ ,ha, Cas,r$ was a 3ere
*r$Eec, e3*#$)ee wh$se e3*#$)3en, was c$5,er3in$&s wi,h ,he *r$Eec, %$r which he was
hire+.
Iss&eL
Whe,her $r n$, *riva,e res*$n+en, Gi# C. Cas,r$ is a reg&#ar e3*#$)ee $r was a 3ere *r$Eec,
e3*#$)ee $% *e,i,i$ner C$s3$s B$,,#ing C$r*$ra,i$n.
R&#ingL
Priva,e res*$n+en, 'eing a *r$Eec, e3*#$)ee, $r ,$ &se ,he c$rrec, ,er3, seasonal e3*#$)ee,
c$nsi+ering ,ha, his e3*#$)3en, was #i3i,e+ ,$ ,he ins,a##a,i$n an+ +is3an,#ing $% *e,i,i$nerGs
anneF *#an, 3achines a%,er which ,here was n$ 3$re w$r< ,$ +$, his e3*#$)3en, #ega##)
en+e+ &*$n c$3*#e,i$n $% ,he *r$Eec,. Tha, 'eing s$, ,he ,er3ina,i$n $% his e3*#$)3en,
cann$, an+ sh$&#+ n$, c$ns,i,&,e an i##ega# +is3issa#. Nei,her sh$&#+ i, c$ns,i,&,e
re,rench3en, as *riva,e res*$n+en, was a seas$na# e3*#$)ee wh$se services were a#rea+)
,er3ina,e+ $n Ma) !1, 199( *ri$r ,$ ,he ,er3ina,i$n $% ,he $,her reg&#ar e3*#$)ees $%
C$s3$s ') reas$n $% re,rench3en,.
3. 3urefoo&s v. NLRC 2-3 SCRA 13) +1997,
9ac,sL
Page 2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The *riva,e res*$n+en,s =n&3'ering 9(-? were hire+ ') *e,i,i$ner P&re 9$$+s C$r*$ra,i$n ,$
w$r< %$r a JFe+ *eri$+ $% Jve 3$n,hs a, i,s ,&na canner) *#an,. A%,er ,he eF*ira,i$n $% ,heir
res*ec,ive c$n,rac,s $% e3*#$)3en,, ,heir services were ,er3ina,e+. The) ,heneFec&,e+ a
MRe#ease an+ D&i,c#ai3N s,a,ing ,ha, ,he) ha+ n$ c#ai3 wha,s$ever agains, P&re 9$$+s. The
*riva,e res*$n+en,s J#e+ 'e%$re ,he NLRC S&'5Regi$na# Ar'i,ra,i$n Branch, a c$3*#ain, %$r
i##ega# +is3issa# agains, ,he *e,i,i$ner an+ i,s *#an, 3anager.
P&re 9$$+s C$r* s&'3i,s ,ha, ,he *riva,e res*$n+en,s are n$w es,$**e+ %r$3 A&es,i$ning
,heir se*ara,i$n %r$3 *e,i,i$nerGs e3*#$) in view $% ,heir eF*ress c$n%$r3i,) wi,h ,he Jve5
3$n,h +&ra,i$n $% ,heir e3*#$)3en, c$n,rac,s. Besi+es, ,he) %e## wi,hin ,he eFce*,i$n
*r$vi+e+ in Ar,ic#e !1( $% ,he La'$r C$+e which rea+sL M/E0Fce*, where ,he e3*#$)3en, has
'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has
'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he e3*#$)ee.
M$re$ver, ,he Jrs, *aragra*h $% ,he sai+ ar,ic#e 3&s, 'e rea+ an+ in,er*re,e+ in c$nE&nc,i$n
wi,h ,he *r$vis$ in ,he sec$n+ *aragra*h, which rea+sL MPr$vi+e+ ,ha, an) e3*#$)ee wh$ has
ren+ere+ a, #eas, $ne )ear $% service, whe,her s&ch service is c$n,in&$&s $r 'r$<en, sha## 'e
c$nsi+ere+ a reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he ac,ivi,) in which he is e3*#$)e+....N In ,he
ins,an, case, ,he *riva,e res*$n+en,s were e3*#$)e+ %$r a *eri$+ $% Jve 3$n,hs $n#). In an)
even,, *riva,e res*$n+en,sS *ra)er %$r reins,a,e3en, is we## wi,hin ,he *&rview $% ,he MRe#ease
an+ D&i,c#ai3N ,he) ha+ eFec&,e+ wherein ,he) &nc$n+i,i$na##) re#ease+ ,he *e,i,i$ner %r$3
an) an+ a## $,her c#ai3s which 3igh, have arisen %r$3 ,heir *as, e3*#$)3en, wi,h ,he
*e,i,i$ner.
The *riva,e res*$n+en,s, $n ,he $,her han+, arg&e ,ha, c$n,rac,s wi,h a s*eciJc *eri$+ $%
e3*#$)3en, 3a) 'e given #ega# eKec, *r$vi+e+, h$wever, ,ha, ,he) are n$, in,en+e+ ,$
circ&3ven, ,he c$ns,i,&,i$na# g&aran,ee $n sec&ri,) $% ,en&re. The) s&'3i, ,ha, ,he *rac,ice
$% ,he *e,i,i$ner in hiring w$r<ers ,$ w$r< %$r a JFe+ +&ra,i$n $% Jve 3$n,hs $n#) ,$ re*#ace
,he3 wi,h $,her w$r<ers $% ,he sa3e e3*#$)3en, +&ra,i$n was a**aren,#) ,$ *reven, ,he
reg&#ari4a,i$n $% ,hese s$5ca##e+ Mcas&a#s,N which is a c#ear circ&3ven,i$n $% ,he #aw $n
sec&ri,) $% ,en&re.
Iss&eL
Whe,her e3*#$)ees hire+ %$r a +eJni,e *eri$+ an+ wh$se services are necessar) an+ +esira'#e
in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er are reg&#ar e3*#$)ees.
R&#ingL We Jn+ ,he *e,i,i$n +ev$i+ $% 3eri,.
Ar,ic#e !1( $% ,he La'$r C$+e +eJnes reg&#ar an+ cas&a# e3*#$)3en, as %$##$wsL
ART. !1(. Regular and Casual %mplo&ment.55 The *r$visi$ns $% wri,,en agree3en, ,$ ,he
c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# arg&3en, $% ,he *ar,ies, an e3*#$)3en,
sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies
which are &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er,
eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he
c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he
e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.
An e3*#$)3en, sha## 'e +ee3e+ ,$ 'e cas&a# i% i, is n$, c$vere+ ') ,he *rece+ing
*aragra*hO Pr$vi+e+, Tha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $% service,
whe,her s&ch service is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee wi,h
Page -
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
res*ec, ,$ ,he ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch
ac,ivi,) eFis,s.
Th&s, ,he ,w$ <in+s $% reg&#ar e3*#$)ees are =1? ,h$se wh$ are engage+ ,$ *er%$r3 ac,ivi,ies
which are necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)erO an+ =!? ,h$se
cas&a# e3*#$)ees wh$ have ren+ere+ a, #eas, $ne )ear $% service, whe,her c$n,in&$&s $r
'r$<en, wi,h res*ec, ,$ ,he ac,ivi,) in which ,he) are e3*#$)e+.
In ,he ins,an, case, ,he *riva,e res*$n+en,sG ac,ivi,ies c$nsis,e+ in ,he receiving, s<inning,
#$ining, *ac<ing, an+ casing5&* $% ,&na Jsh which were ,hen eF*$r,e+ ') ,he
*e,i,i$ner. In+is*&,a'#), ,he) were *er%$r3ing ac,ivi,ies which were necessar) an+ +esira'#e
in *e,i,i$nerGs '&siness $r ,ra+e.
FFF
C$n,rar) ,$ *e,i,i$nerSs s&'3issi$n, ,he *riva,e res*$n+en,s c$&#+ n$, 'e regar+e+ as having
'een hire+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing. The ,er3 Ms*eciJc *r$Eec, $r &n+er,a<ingN
&n+er Ar,ic#e !1( $% ,he La'$r C$+e c$n,e3*#a,es an ac,ivi,) which is n$, c$33$n#) $r
ha'i,&a##) *er%$r3e+ $r s&ch ,)*e $% w$r< which is n$, +$ne $n a +ai#) 'asis '&, $n#) %$r a
s*eciJc +&ra,i$n $% ,i3e $r &n,i# c$3*#e,i$nO ,he services e3*#$)e+ are ,hen necessar) an+
+esira'#e in ,he e3*#$)erGs &s&a# '&siness $n#) %$r ,he *eri$+ $% ,i3e i, ,a<es ,$ c$3*#e,e ,he
*r$Eec,.
The %ac, ,ha, ,he *e,i,i$ner re*ea,e+#) an+ c$n,in&$&s#) hire+ w$r<ers ,$ +$ ,he sa3e <in+ $%
w$r< as ,ha, *er%$r3e+ ') ,h$se wh$se c$n,rac,s ha+ eF*ire+ nega,es *e,i,i$nerGs c$n,en,i$n
,ha, ,h$se w$r<ers were hire+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing $n#).
FFF
Where %r$3 ,he circ&3s,ances i, is a**aren, ,ha, ,he *eri$+s have 'een i3*$se+ ,$ *rec#&+e
acA&isi,i$n $% ,en&ria# sec&ri,) ') ,he e3*#$)ee, ,he) sh$&#+ 'e s,r&c< +$wn $r +isregar+e+ as
c$n,rar) ,$ *&'#ic *$#ic) an+ 3$ra#s.
FFF
Ucri,eria &n+er which ,er3 e3*#$)3en, cann$, 'e sai+ ,$ 'e in circ&3ven,i$n $% ,he #aw $n
sec&ri,) $% ,en&reL
1? The JFe+ *eri$+ $% e3*#$)3en, was <n$wing#) an+ v$#&n,ari#) agree+ &*$n ') ,he *ar,ies
wi,h$&, an) %$rce, +&ress, $r i3*r$*er *ress&re 'eing 'r$&gh, ,$ 'ear &*$n ,he e3*#$)ee an+
a'sen, an) $,her circ&3s,ances vi,ia,ing his c$nsen,O $r
!? I, sa,is%ac,$ri#) a**ears ,ha, ,he e3*#$)er an+ ,he e3*#$)ee +ea#, wi,h each $,her $n 3$re
$r #ess eA&a# ,er3s wi,h n$ 3$ra# +$3inance eFercise+ ') ,he %$r3er $r ,he #a,,er.
N$ne $% ,hese cri,eria ha+ 'een 3e, in ,he *resen, case.
This sche3e $% ,he *e,i,i$ner was a**aren,#) +esigne+ ,$ *reven, ,he *riva,e res*$n+en,s an+
,he $,her Mcas&a#N e3*#$)ees %r$3 a,,aining ,he s,a,&s $% a reg&#ar e3*#$)ee. I, was a c#ear
circ&3ven,i$n $% ,he e3*#$)eesG righ, ,$ sec&ri,) $% ,en&re an+ ,$ $,her 'eneJ,s #i<e 3ini3&3
wage, c$s,5$%5#iving a##$wance, sic< #eave, h$#i+a) *a), an+ 1,h 3$n,h *a). In+ee+, ,he
*e,i,i$ner s&ccee+e+ in eva+ing ,he a**#ica,i$n $% #a'$r #aws. A#s$, i, save+ i,se#% %r$3 ,he
,r$&'#e $r '&r+en $% es,a'#ishing a E&s, ca&se %$r ,er3ina,ing e3*#$)ees ') ,he si3*#e
eF*e+ien, $% re%&sing ,$ renew ,he e3*#$)3en, c$n,rac,s.
Page "
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The Jve53$n,h *eri$+ s*eciJe+ in *riva,e res*$n+en,sG e3*#$)3en, c$n,rac,s having 'een
i3*$se+ *recise#) ,$ circ&3ven, ,he c$ns,i,&,i$na# g&aran,ee $n sec&ri,) $% ,en&re sh$&#+,
,here%$re, 'e s,r&c< +$wn $r +isregar+e+ as c$n,rar) ,$ *&'#ic *$#ic) $r 3$ra#s
*. 3hil. 6rui( an& 5ege(ale !n&us(ries v. NLRC, 31" SCRA )-" +1999,
9ac,sL
Priva,e res*$n+en, Phi#i**ine 9r&i, an+ 8ege,a'#e W$r<ers >ni$n5T&*as L$ca# Cha*,er, %$r an+
in 'eha#% $% 1!" $% i,s 3e3'ers, J#e+ a c$3*#ain, %$r &n%air #a'$r *rac,ice an+B$r i##ega#
+is3issa# wi,h +a3ages agains, Pe,i,i$ner C$r*$ra,i$n.
The) a##ege+ ,ha, ,he +is3issa#s were +&e ,$ c$3*#ainan,sS inv$#ve3en, in &ni$n ac,ivi,ies an+
were wi,h$&, E&s, ca&se.
La'$r Ar'i,er ren+ere+ E&+g3en, ,ha, Phi#i**ine 9r&i, ; 8ege,a'#e In+&s,ries, Inc =P98II? were
in+ee+ g&i#,) $% I##ega# 7is3issa#.
:n a**ea#, NLRC se, asi+e ,he La'$r Ar'i,erGs +ecisi$n an+ re3an+e+ ,he sai+ case ,$ ,he
Ar'i,ra,i$n Branch %$r %&r,her *r$cee+ings.
Ar'i,ra,i$n Branch ren+ere+ a +ecisi$n Jn+ing P98II #ia'#e %$r i##ega# +is3issa#.
:n a**ea#, NLRC aIr3e+ ,he Ar'i,ra,i$n BranchGs +ecisi$n '&, 3$+iJe+ ,he awar+s $%
a,,$rne)Gs %ees.
P98II J#e+ a 3$,i$n %$r rec$nsi+era,i$n which was +enie+ ') NLRC
Iss&eL
Whe,her $r n$, ,he c$3*#ainan,s were i##ega# +is3isse+ ') P98II
:ne $% P98IIGs c$n,en,i$ns is ,ha, ,he c$3*#ainan,s are
seas$na# w$r<ers. Acc$r+ing ,$ ,he3, i,s $*era,i$n s,ar,s $n#)
in 9e'r&ar) wi,h ,he *r$cessing $% ,$3a,$es in,$ ,$3a,$ *as,e
an+ ceases ') ,he en+ $% ,he sa3e 3$n,h when ,he s&**#) is
c$ns&3e+. I, ,hen res&3es $*era,i$ns a, ,he en+ $% A*ri# $r
ear#) Ma), +e*en+ing $n ,he avai#a'i#i,) $% s&**#) wi,h ,he
*r$cessing $% 3ang$es in,$ *&rees an+ ceases $*era,i$n in
6&ne. The severance $% c$3*#ainan,sS e3*#$)3en, %r$3
*e,i,i$ner c$r*$ra,i$n was a necessar) c$nseA&ence $% ,he
na,&re $% seas$na# e3*#$)3en,O an+ since c$3*#ainan,s are
seas$na# w$r<ers as +eJne+ ') ,he La'$r C$+e, ,he) cann$,
inv$<e an) ,en&ria# 'eneJ,
R&#ingL
B) ,he ver) na,&re $% ,hings in a '&siness en,er*rise #i<e P98II, ,he services $% ,he
c$3*#ainan,s are, in+ee+, 3$re ,han siF =-? 3$n,hs a )ear. The c$3*an) +i+ n$, c$nJne i,se#%
E&s, ,$ ,he *r$cessing $% ,$3a,$es an+ 3ang$es. I, a#s$ *r$cesse+ g&)a'an$, ca#a3ansi,
*a*a)a, *inea**#e, e,c. Besi+es, ,he) have ,he $Ice $% a+3inis,ra,ive %&nc,i$ns, c#eaning an+
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
&*<ee*ing $% 3achines an+ $,her +&,ies an+ ,as<s ,$ <ee* &* a 'ig %$$+ *r$cessing
c$r*$ra,i$n. C$nsi+ering, ,here%$re, ,ha, &n+er Ar,ic#e !1( $% ,he La'$r C$+e P,he *r$visi$ns $%
wri,,en agree3en, ,$ ,he c$n,rar) n$,wi,hs,an+ing an+ c$nsi+ering %&r,her ,ha, ,he ,as<s
which c$3*#ainan,s *er%$r3e+ were &s&a##) necessar) an+ +esira'#e in ,he e3*#$)ers &s&a#
'&siness $r ,ra+e, S&*re3e C$&r, he#+ ,ha, c$3*#ainan,s are reg&#ar seas$na# e3*#$)ees,
,h&s, en,i,#e+ ,$ sec&ri,) $% ,en&re.
The La'$r C$+e *r$vi+es an e3*#$)3en, sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee
has 'een engage+ ,$ *er%$r3 ac,ivi,ies ,ha, are &s&a##) necessar) $r +esira'#e in ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)ers, eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a
s*eciJc *r$Eec,. An e3*#$)3en, sha## 'e +ee3e+ ,$ 'e cas&a# i% i, is n$, c$vere+ ') ,he
*rece+ing *aragra*hO *r$vi+e+, ,ha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $%
service whe,her s&ch service is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee
wi,h res*ec, ,$ ,he ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e
s&ch ac,&a##) eFis,s.
In ,he case a, 'ar, ,he w$r< $% c$3*#ainan,s as see+ers, $*era,$rs, s$r,ers, s#icers, Eani,$rs,
+rivers, ,r&c< he#*ers, 3echanics an+ $Ice *ers$nne# is wi,h$&, +$&', necessar) in ,he &s&a#
'&siness $% a %$$+ *r$cessing c$3*an) #i<e *e,i,i$ner P98II.
I, sh$&#+ 'e n$,e+ ,ha, c$3*#ainan,sS e3*#$)3en, has n$, 'een JFe+ %$r a s*eciJc *r$Eec, $r
&n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,heir
a**$in,3en, $r hiring. Nei,her is ,heir e3*#$)3en, seas$na# in na,&re. Whi#e i, 3a) 'e ,r&e
,ha, s$3e *hases $% *e,i,i$ner c$3*an)Ss *r$cessing $*era,i$ns is +e*en+en, $n ,he s&**#) $%
%r&i,s %$r a *ar,ic&#ar seas$n, ,he $,her eA&a##) i3*$r,an, as*ec,s $% i,s '&siness, s&ch as
3an&%ac,&ring an+ 3ar<e,ing are n$, seas$na#. The %ac, is ,ha, #arge5sca#e %$$+ *r$cessing
c$3*anies s&ch as Pe,i,i$ner C$3*an) c$n,in&e ,$ $*era,e an+ +$ '&siness ,hr$&gh$&, ,he
)ear even i% ,he avai#a'i#i,) $% %r&i,s an+ vege,a'#es is seas$na#.
PETITI:N 7ENIE7. C:MPLAINANTS ARE REG>LAR EMPL:@EES B@ 8IRT>E :9 THE 9ACT THAT
THE@ PER9:RME7 9>NCTI:NS WHICH ARE NECESSAR@ AN7 7ESIRABLE IN THE >S>AL
B>SINESS :9 P98II.
.. 3hili%s Se/icon&uc(or vs. 6ar&i?uela, G.R. No. 1*1717, A%ril 1*, 2""*
9ac,sL
The *e,i,i$ner Phi#i*s Se3ic$n+&c,$rs =Phi#s.?, Inc. is a +$3es,ic c$r*$ra,i$n engage+ in ,he
*r$+&c,i$n an+ asse3'#) $% se3ic$n+&c,$rs s&ch as *$wer +evices, R9 3$+&#es, CAT8
3$+&#es, R9 an+ 3e,a# ,ransis,$rs an+ g#ass +i$+s. I, ca,ers ,$ +$3es,ic an+ %$reign
c$r*$ra,i$ns ,ha, 3an&%ac,&re c$3*&,ers, ,e#ec$33&nica,i$ns eA&i*3en, an+ cars. Asi+e
%r$3 c$n,rac,&a# e3*#$)ees, ,he *e,i,i$ner e3*#$)e+ 1,(!9 reg&#ar w$r<ers. The e3*#$)ees
were s&'Eec,e+ ,$ *eri$+ic *er%$r3ance a**raisa# 'ase+ $n $&,*&,, A&a#i,), a,,en+ance an+
w$r< a,,i,&+e. :ne was reA&ire+ ,$ $',ain a *er%$r3ance ra,ing $% a, #eas, .( %$r ,he *eri$+
c$vere+ ') ,he *er%$r3ance a**raisa# ,$ 3ain,ain g$$+ s,an+ing as an e3*#$)ee. :n Ma) 1,
199!, res*$n+en, E#$isa 9a+riA&e#a eFec&,e+ a C$n,rac, $% E3*#$)3en, wi,h ,he *e,i,i$ner in
which she was hire+ as a *r$+&c,i$n $*era,$r wi,h a +ai#) sa#ar) $% P111. Her ini,ia# c$n,rac,
was %$r a *eri$+ $% ,hree 3$n,hs &* ,$ A&g&s, 1, 199!, '&, was eF,en+e+ %$r ,w$ 3$n,hs
when she garnere+ a *er%$r3ance ra,ing $% .12. Her c$n,rac, was again renewe+ %$r ,w$
3$n,hs $r &* ,$ 7ece3'er 1-, 199!, when she receive+ a *er%$r3ance ra,ing $% .1.A%,er ,he
eF*ira,i$n $% her ,hir+ c$n,rac,, i, was eF,en+e+ anew, %$r ,hree 3$n,hs, ,ha, is, %r$3 6an&ar)
Page 9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
., 199 ,$ A*ri# ., 199. A%,er garnering a *er%$r3ance ra,ing $% .., ,he res*$n+en,Gs
c$n,rac, was eF,en+e+ %$r an$,her ,hree 3$n,hs, ,ha, is, %r$3 A*ri# 2, 199 ,$ 6&ne ., 199.
She, h$wever, inc&rre+ Jve a'sences in ,he 3$n,h $% A*ri#, ,hree a'sences in ,he 3$n,h $%
Ma) an+ %$&r a'sences in ,he 3$n,h $% 6&ne. Line s&*ervis$r Shir#e) 9. 8e#a)$ as<e+ ,he
res*$n+en, wh) she inc&rre+ ,he sai+ a'sences, '&, ,he #a,,er %ai#e+ ,$ eF*#ain her si+e. The
res*$n+en, was warne+ ,ha, i% she $Kere+ n$ va#i+ E&s,iJca,i$n %$r her a'sences, 8e#a)$ w$&#+
have n$ $,her rec$&rse '&, ,$ rec$33en+ ,he n$n5renewa# $% her c$n,rac,. The res*$n+en,
s,i## %ai#e+ ,$ res*$n+, as a c$nseA&ence $% which her *er%$r3ance ra,ing +ec#ine+ ,$ !.1.
8e#a)$ rec$33en+e+ ,$ ,he *e,i,i$ner ,ha, ,he res*$n+en,Gs e3*#$)3en, 'e ,er3ina,e+ +&e
,$ ha'i,&a# a'sen,eeis3, in acc$r+ance wi,h ,he C$3*an) R&#es an+ Reg&#a,i$ns. Th&s, ,he
res*$n+en,Gs c$n,rac, $% e3*#$)3en, was n$ #$nger renewe+.
Iss&es an+ R&#ingsL
=a? whe,her $r n$, ,he res*$n+en, was s,i## a c$n,rac,&a# e3*#$)ee $% ,he *e,i,i$ner as $% 6&ne
., 199O
The ,w$ <in+s $% reg&#ar e3*#$)ees &n+er ,he #aw are =1? ,h$se engage+ ,$ *er%$r3 ac,ivi,ies
which are necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)erO an+ =!? ,h$se
cas&a# e3*#$)ees wh$ have ren+ere+ a, #eas, $ne )ear $% service, whe,her c$n,in&$&s $r
'r$<en, wi,h res*ec, ,$ ,he ac,ivi,ies in which ,he) are e3*#$)e+. The *ri3ar) s,an+ar+ ,$
+e,er3ine a reg&#ar e3*#$)3en, is ,he reas$na'#e c$nnec,i$n 'e,ween ,he *ar,ic&#ar ac,ivi,)
*er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he '&siness $r ,ra+e $% ,he e3*#$)er. The ,es, is
whe,her ,he %$r3er is &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he
e3*#$)er. I% ,he e3*#$)ee has 'een *er%$r3ing ,he E$' %$r a, #eas, $ne )ear, even i% ,he
*er%$r3ance is n$, c$n,in&$&s $r 3ere#) in,er3i,,en,, ,he #aw +ee3s ,he re*ea,e+ an+
c$n,in&ing nee+ %$r i,s *er%$r3ance as s&Icien, evi+ence $% ,he necessi,), i% n$,
in+is*ensa'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness $% ,he e3*#$)er. Hence, ,he e3*#$)3en, is
a#s$ c$nsi+ere+ reg&#ar, '&, $n#) wi,h res*ec, ,$ s&ch ac,ivi,) an+ whi#e s&ch ac,ivi,) eFis,s.
/!!0 The #aw +$es n$, *r$vi+e ,he A&a#iJca,i$n ,ha, ,he e3*#$)ee 3&s, Jrs, 'e iss&e+ a
reg&#ar a**$in,3en, $r 3&s, 'e +ec#are+ as s&ch 'e%$re he can acA&ire a reg&#ar e3*#$)ee
s,a,&s.In ,his case, ,he res*$n+en, was e3*#$)e+ ') ,he *e,i,i$ner $n Ma) 1, 199! as
*r$+&c,i$n $*era,$r. She was assigne+ ,$ wire'&i#+ing a, ,he ,ransis,$r +ivisi$n. There is n$
+is*&,e ,ha, ,he w$r< $% ,he res*$n+en, was necessar) $r +esira'#e in ,he '&siness $r ,ra+e $%
,he *e,i,i$ner. She re3aine+ &n+er ,he e3*#$) $% ,he *e,i,i$ner wi,h$&, an) in,err&*,i$n since
Ma) 1, 199! ,$ 6&ne ., 199 $r %$r $ne =1? )ear an+ ,wen,)5eigh, =!1? +a)s. The $rigina#
c$n,rac, $% e3*#$)3en, ha+ 'een eF,en+e+ $r renewe+ %$r %$&r ,i3es, ,$ ,he sa3e *$si,i$n,
wi,h ,he sa3e ch$res. S&ch a c$n,in&ing nee+ %$r ,he services $% ,he res*$n+en, is s&Icien,
evi+ence $% ,he necessi,) an+ in+is*ensa'i#i,) $% her services ,$ ,he *e,i,i$nerGs '&siness. B)
$*era,i$n $% #aw, ,hen, ,he res*$n+en, ha+ a,,aine+ ,he reg&#ar s,a,&s $% her e3*#$)3en, wi,h
,he *e,i,i$ner, an+ is ,h&s en,i,#e+ ,$ sec&ri,) $% ,en&re as *r$vi+e+ %$r in Ar,ic#e !"9 $% ,he
La'$r C$+e which rea+sL
='? whe,her $r n$, ,he *e,i,i$ner +is3isse+ ,he res*$n+en, %r$3 her e3*#$)3en,O
i% s$, whe,her $r n$, she was acc$r+e+ ,he reA&isi,e n$,ice an+ inves,iga,i$n *ri$r ,$ her
+is3issa#O an+
:n ,he sec$n+ an+ ,hir+ iss&es, we agree wi,h ,he a**e##a,e c$&r, ,ha, ,he res*$n+en, was
+is3isse+ ') ,he *e,i,i$ner wi,h$&, ,he reA&isi,e n$,ice an+ wi,h$&, an) %$r3a# inves,iga,i$n.
Given ,he %ac,&a# 3i#ie& in ,his case, ,he res*$n+en,Gs +is3issa# %r$3 e3*#$)3en, %$r inc&rring
Jve =2? a'sences in A*ri# 199, ,hree =? a'sences in Ma) 199 an+ %$&r =.? a'sences in 6&ne
199, even i% ,r&e, is ,$$ harsh a *ena#,). We +$ agree ,ha, an e3*#$)ee 3a) 'e +is3isse+ %$r
vi$#a,i$n $% reas$na'#e reg&#a,i$nsBr&#es *r$3&#ga,e+ ') ,he e3*#$)er. 7is3issa# is ,he
Page .(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
&#,i3a,e *ena#,) ,ha, can 'e 3e,e+ ,$ an e3*#$)ee. Where a *ena#,) #ess *&ni,ive w$&#+
s&Ice, wha,ever 3iss,e*s 3a) have 'een c$33i,,e+ ') ,he w$r<er $&gh, n$, ,$ 'e visi,e+
wi,h a c$nseA&ence s$ severe s&ch as +is3issa# %r$3 e3*#$)3en,. 9$r, ,he C$ns,i,&,i$n
g&aran,ees ,he righ, $% w$r<ers ,$ Msec&ri,) $% ,en&re.N The 3iser) an+ *ain a,,en+an, ,$ ,he
#$ss $% E$'s ,hen c$&#+ 'e av$i+e+ i% ,here 'e acce*,ance $% ,he view ,ha, &n+er cer,ain
circ&3s,ances $% ,he case ,he w$r<ers sh$&#+ n$, 'e +e*rive+ $% ,heir 3eans $% #ive#ih$$+.
=c?whe,her $r n$, ,he res*$n+en, is en,i,#e+ ,$ reins,a,e3en, an+ %&## *a)3en, $% 'ac<wages
as we## as a,,$rne)Gs %ees.
The c$&r, c$nc#&+es ,ha, *e,i,i$nerGs +is3issa# is i##ega# 'eca&se, Jrs,, she was +is3isse+ in
,he a'sence $% a E&s, ca&se, an+ sec$n+, she was n$, aK$r+e+ *r$ce+&ra# +&e *r$cess. In
*&rs&ance $% Ar,ic#e !"9 $% ,he La'$r C$+e, we +ee3 i, *r$*er ,$ $r+er ,he reins,a,e3en, $%
*e,i,i$ner ,$ her %$r3er E$' an+ ,he *a)3en, $% her %&## 'ac<wages.A#s$, having 'een
c$3*e##e+ ,$ c$3e ,$ c$&r, ,$ *r$,ec, her righ,s, we gran, *e,i,i$nerGs *ra)er %$r a,,$rne)Gs
%ees.
). Alcira vs. NLRC, G.R. No. 1*9-.9, 2une 9, 2""*
9ac,sL
Mi++#e') Phi#i**ines C$r*. hire+ *e,i,i$ner as engineering s&**$r, services s&*ervis$r $n a
*r$'a,i$nar) 'asis %$r siF 3$n,hs. :n !( N$ve3'er 199-, a seni$r $Icer $% Mi++#e') wi,hhe#+
his ,i3e car+ an+ +i+ n$, a##$w hi3 ,$ w$r<. A#cira J#e+ wi,h ,he NLRC a c$3*#ain, %$r i##ega#
+is3issa# $n ,he c$n,en,i$n ,ha, he ha+ 'ec$3e a reg&#ar e3*#$)ee when he was i##ega##)
+is3isse+. In ,heir +e%ense, res*$n+en,s c#ai3 ,ha,, +&ring *e,i,i$nerGs *r$'a,i$nar)
e3*#$)3en,, he sh$we+ *$$r *er%$r3ance in his assigne+ ,as<s, inc&rre+ ,en a'sences, was
#a,e severa# ,i3es an+ vi$#a,e+ c$3*an) r&#es $n ,he wearing $% &ni%$r3. Since he %ai#e+ ,$
3ee, c$3*an) s,an+ar+s, *e,i,i$nerGs a**#ica,i$n ,$ 'ec$3e a reg&#ar e3*#$)ee was
+isa**r$ve+ an+ his e3*#$)3en, was ,er3ina,e+.
Iss&es an+ R&#ingsL
=1? Whe,her *e,i,i$ner was a##$we+ ,$ w$r< 'e)$n+ his *r$'a,i$nar) *eri$+ an+ was ,here%$re
a#rea+) a reg&#ar e3*#$)ee a, ,he ,i3e $% his a##ege+ +is3issa#.
Pe,i,i$ner insis,s ,ha, he a#rea+) a,,aine+ ,he s,a,&s $% a reg&#ar e3*#$)ee when he was
+is3isse+ $n N$ve3'er !(, 199- 'eca&se, having s,ar,e+ w$r< $n Ma) !(, 199-, ,he siF5
3$n,h *r$'a,i$nar) *eri$+ en+e+ $n N$ve3'er 1-, 199-. Acc$r+ing ,$ *e,i,i$nerGs
c$3*&,a,i$n, since Ar,ic#e 1 $% ,he Civi# C$+e *r$vi+es ,ha, $ne 3$n,h is c$3*$se+ $% ,hir,)
+a)s, siF 3$n,hs ,$,a# $ne h&n+re+ eigh,) +a)s. As ,he a**$in,3en, *r$vi+e+ ,ha, *e,i,i$nerGs
s,a,&s was M*r$'a,i$nar) =- 3$s.?N wi,h$&, an) s*eciJc +a,e $% ,er3ina,i$n, ,he 11(
,h
+a) %e##
$n N$ve3'er 1-, 199-. Th&s, when he was +is3isse+ $n N$ve3'er !(, 199-, he was a#rea+)
a reg&#ar e3*#$)ee. Pe,i,i$nerGs c$n,en,i$n is inc$rrec,. :&r c$3*&,a,i$n $% ,he -53$n,h
*r$'a,i$nar) *eri$+ is rec<$ne+ %r$3 ,he +a,e $% a**$in,3en, &* ,$ ,he sa3e ca#en+ar +a,e $%
,he -,h 3$n,h %$##$wing. In sh$r,, since ,he n&3'er $% +a)s in each *ar,ic&#ar 3$n,h was
irre#evan,, *e,i,i$ner was s,i## a *r$'a,i$nar) e3*#$)ee when res*$n+en, Mi++#e') $*,e+ n$,
,$ Mreg&#ari4eN hi3 $n N$ve3'er !(, 199-.
=!? Whe,her res*$n+en, Mi++#e') in%$r3e+ *e,i,i$ner $% ,he s,an+ar+s %$r Mreg&#ari4a,i$nN a,
,he s,ar, $% his e3*#$)3en,.
Page .1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Sec,i$n - =+? $% R&#e 1 $% ,he I3*#e3en,ing R&#es $% B$$< 8I $% ,he La'$r C$+e =7e*ar,3en,
:r+er N$. 1(, Series $% 199"? *r$vi+es ,ha,L In a## cases $% *r$'a,i$nar) e3*#$)3en,, ,he
e3*#$)er sha## 3a<e <n$wn ,$ ,he e3*#$)ee ,he s,an+ar+s &n+er which he wi## A&a#i%) as a
reg&#ar e3*#$)ee a, ,he ,i3e $% his engage3en,. Where n$ s,an+ar+s are 3a+e <n$wn ,$ ,he
e3*#$)ee a, ,ha, ,i3e, he sha## 'e +ee3e+ a reg&#ar e3*#$)ee. We h$#+ ,ha, res*$n+en,
Mi++#e') s&'s,an,ia##) n$,iJe+ *e,i,i$ner $% ,he s,an+ar+s ,$ A&a#i%) as a reg&#ar e3*#$)ee
when i, a**rise+ hi3, a, ,he s,ar, $% his e3*#$)3en,, ,ha, i, w$&#+ eva#&a,e his s&*ervis$r)
s<i##s a%,er Jve 3$n,hs. an e3*#$)er is +ee3e+ ,$ s&'s,an,ia##) c$3*#) wi,h ,he r&#e $n
n$,iJca,i$n $% s,an+ar+s i% he a**rises ,he e3*#$)ee ,ha, he wi## 'e s&'Eec,e+ ,$ a
*er%$r3ance eva#&a,i$n $n a *ar,ic&#ar +a,e a%,er his hiring. We agree wi,h ,he #a'$r ar'i,er
when he r&#e+ ,ha,L In ,he ins,an, case, *e,i,i$ner cann$, s&ccess%&##) sa) ,ha, he was never
in%$r3e+ ') *riva,e res*$n+en, $% ,he s,an+ar+s ,ha, he 3&s, sa,is%) in $r+er ,$ 'e c$nver,e+
in,$ reg&#ar s,a,&s. This r&ns c$&n,er ,$ ,he agree3en, 'e,ween ,he *ar,ies ,ha, a%,er Jve
3$n,hs $% service ,he *e,i,i$nerGs *er%$r3ance w$&#+ 'e eva#&a,e+. I, is $n#) '&, na,&ra# ,ha,
,he eva#&a,i$n sh$&#+ 'e 3a+e vis5X5vis ,he *er%$r3ance s,an+ar+s %$r ,he E$'. Priva,e
res*$n+en, Tri%$na Ma3ara+#$ s*ea<s $% s&ch s,an+ar+ in her aI+avi, re%erring ,$ ,he %ac,
,ha, *e,i,i$ner +i+ n$, *er%$r3 we## in his assigne+ w$r< an+ his a,,i,&+e was 'e#$w *ar
c$3*are+ ,$ ,he c$3*an)Gs s,an+ar+ reA&ire+ $% hi3.
=? Whe,her *e,i,i$ner was i##ega##) +is3isse+ when res*$n+en, Mi++#e') $*,e+ n$, ,$ renew
his c$n,rac, $n ,he #as, +a) $% his *r$'a,i$nar) e3*#$)3en,.
I, is se,,#e+ ,ha, even i% *r$'a,i$nar) e3*#$)ees +$ n$, enE$) *er3anen, s,a,&s, ,he) are
acc$r+e+ ,he c$ns,i,&,i$na# *r$,ec,i$n $% sec&ri,) $% ,en&re. This 3eans ,he) 3a) $n#) 'e
,er3ina,e+ %$r E&s, ca&se $r when ,he) $,herwise %ai# ,$ A&a#i%) as reg&#ar e3*#$)ees in
acc$r+ance wi,h reas$na'#e s,an+ar+s 3a+e <n$wn ,$ ,he3 ') ,he e3*#$)er a, ,he ,i3e $%
,heir engage3en,. B&, ,his c$ns,i,&,i$na# *r$,ec,i$n en+s $n ,he eF*ira,i$n $% ,he *r$'a,i$nar)
*eri$+. :n ,ha, +a,e, ,he *ar,ies are %ree ,$ ei,her renew $r ,er3ina,e ,heir c$n,rac, $%
e3*#$)3en,. This +eve#$*3en, has ren+ere+ 3$$, ,he A&es,i$n $% whe,her ,here was a E&s,
ca&se %$r ,he +is3issa# $% ,he *e,i,i$ners. Mi++#e') eFercise+ i,s $*,i$n n$, ,$ renew ,he
c$n,rac, when i, in%$r3e+ *e,i,i$ner $n ,he #as, +a) $% his *r$'a,i$nar) e3*#$)3en, ,ha, i, +i+
n$, in,en+ ,$ gran, hi3 a reg&#ar s,a,&s.
A#,h$&gh we can regar+ *e,i,i$nerGs severance %r$3 w$r< as +is3issa#, ,he sa3e cann$, 'e
+ee3e+ i##ega#. As %$&n+ ') ,he #a'$r ar'i,er, ,he NLRC an+ ,he C$&r, $% A**ea#s, *e,i,i$ner =1?
inc&rre+ ,en a'sences =!? was ,ar+) severa# ,i3es =? %ai#e+ ,$ wear ,he *r$*er &ni%$r3 3an)
,i3es an+ =.? sh$we+ in%eri$r s&*ervis$r) s<i##s. Pe,i,i$ner %ai#e+ ,$ sa,is%ac,$ri#) re%&,e ,hese
s&'s,an,ia,e+ a##ega,i$ns. Ta<ing a## ,his in i,s en,ire,), res*$n+en, Mi++#e') was c#ear#)
E&s,iJe+ ,$ en+ i,s e3*#$)3en, re#a,i$nshi* wi,h *e,i,i$ner.
7. Mi(suishi Mo(ors 3hils. vs. Chr$sler 3hil Laor <nion, G.R. No. 1*-73-, 2une 29,
2""*
9ac,sL
Ne#s$n Paras Jrs, w$r<e+ %$r Mi,s&'ishi M$,$rs Phi#i**ines C$r*$ra,i$n =MMPC? as a sh&,,#e
'&s +river %r$3 March 19, 19"- ,$ 6&ne 1-, 191!, when he resigne+ ,$ w$r< a'r$a+. A%,er
w$r<ing in Sa&+i Ara'ia %r$3 191! ,$ 199, he was re5hire+ as a we#+er5%a'rica,$r a, ,he
MMPC ,$$#ing sh$* %r$3 :c,$'er , 199. ,$ :c,$'er 1, 199..

:n :c,$'er !9, 199., his
c$n,rac, was renewe+ %r$3 N$ve3'er 1, 199. &* ,$ March , 1992. Paras was #a,er re5hire+
$n a *r$'a,i$nar) 'asis as a 3an&%ac,&ring ,rainee a, ,he P#an, Engineering Main,enance
Page .!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
7e*ar,3en, s$3e,i3e in Ma) $% 199-. He an+ ,he new an+ re5hire+ e3*#$)ees were ,hen
given an $rien,a,i$n a'$&, ,he c$3*an)Gs his,$r), c$r*$ra,e *hi#$s$*h), $rgani4a,i$na#
s,r&c,&re, an+ c$3*an) r&#es an+ reg&#a,i$ns, inc#&+ing ,he c$3*an) s,an+ar+s %$r
reg&#ari4a,i$n, c$+e $% c$n+&c, an+ c$3*an)5*r$vi+e+ 'eneJ,s. :n Ma) !", 199-, Paras
s,ar,e+ re*$r,ing %$r w$r<. He was assigne+ a, ,he *ain, $vens, air 3a<e5&* an+ c$nve)$rs. As
*ar, $% ,he MMPCGs *$#ic), Paras was eva#&a,e+ ') his i33e+ia,e s&*ervis$rs a%,er siF =-?
3$n,hs, an+ receive+ an average ra,ing. La,er, ,he s&*ervis$rs in%$r3e+ Paras ,ha, 'ase+ $n
his *er%$r3ance ra,ing, he w$&#+ 'e reg&#ari4e+. H$wever, ,he 7e*ar,3en, an+ 7ivisi$n
Managers reviewe+ ,he *er%$r3ance eva#&a,i$n 3a+e $n Paras. The) &nani3$&s#) agree+,
a#$ng wi,h ParasG i33e+ia,e s&*ervis$rs, ,ha, his *er%$r3ance was &nsa,is%ac,$r). As a
c$nseA&ence, Paras was n$, c$nsi+ere+ %$r reg&#ari4a,i$n. :n N$ve3'er !-, 199-, he receive+
a N$,ice $% Ter3ina,i$n +a,e+ N$ve3'er !2, 199-, in%$r3ing hi3 ,ha, his services were
,er3ina,e+ eKec,ive ,he sai+ +a,e since he %ai#e+ ,$ 3ee, ,he reA&ire+ c$3*an) s,an+ar+s %$r
reg&#ari4a,i$n.
CPL>, a #egi,i3a,e #a'$r $rgani4a,i$n an+ ,he +&#) cer,iJe+ 'argaining agen, $% ,he h$&r#)5*ai+
reg&#ar ran< an+ J#e e3*#$)ees $% MMPC in which Paras was a 3e3'er, arg&e+ ,ha, Paras was
+is3isse+ $n his $ne h&n+re+ eigh,) ,hir+ =11r+? +a) $% e3*#$)3en,, $r ,hree =? +a)s a%,er
,he eF*ira,i$n $% ,he *r$'a,i$nar) *eri$+ $% siF =-? 3$n,hs, hence, he was a#rea+) a reg&#ar
e3*#$)ee $n ,he +a,e $% ,he ,er3ina,i$n $% his *r$'a,i$nar) e3*#$)3en,. Meanwhi#e, MMPC
arg&e+ ,ha, &n+er Ar,ic#e 1 $% ,he New Civi# C$+e, ParasG *r$'a,i$nar) e3*#$)3en, which
c$33ence+ $n Ma) !", 199- w$&#+ eF*ire $n N$ve3'er !", 199-. Since he receive+ ,he
n$,ice $% ,er3ina,i$n $% his e3*#$)3en, $n N$ve3'er !2, 199-, ,he sa3e sh$&#+ 'e
c$nsi+ere+ ,$ have 'een serve+ wi,hin ,he siF53$n,h *r$'a,i$nar) *eri$+.
Iss&eL
Whe,her $r n$, Paras was a#rea+) a reg&#ar e3*#$)ee when he was ,er3ina,e+.
R&#ingL
@es. In+ee+, an e3*#$)er, in ,he eFercise $% i,s 3anage3en, *rer$ga,ive, 3a) hire an
e3*#$)ee $n a *r$'a,i$nar) 'asis in $r+er ,$ +e,er3ine his J,ness ,$ *er%$r3 w$r<. >n+er
Ar,ic#e !11 $% ,he La'$r C$+e, ,he e3*#$)er 3&s, in%$r3 ,he e3*#$)ee $% ,he s,an+ar+s %$r
which his e3*#$)3en, 3a) 'e c$nsi+ere+ %$r reg&#ari4a,i$n. S&ch *r$'a,i$nar) *eri$+, &n#ess
c$vere+ ') an a**ren,iceshi* agree3en,, sha## n$, eFcee+ siF =-? 3$n,hs %r$3 ,he +a,e ,he
e3*#$)ee s,ar,e+ w$r<ing. The e3*#$)eeGs services 3a) 'e ,er3ina,e+ %$r E&s, ca&se $r %$r
his %ai#&re ,$ A&a#i%) as a reg&#ar e3*#$)ee 'ase+ $n reas$na'#e s,an+ar+s 3a+e <n$wn ,$
hi3. Res*$n+en, Paras was e3*#$)e+ as a 3anage3en, ,rainee $n a *r$'a,i$nar) 'asis.
7&ring ,he $rien,a,i$n c$n+&c,e+ $n Ma) 12, 199-, he was a**rise+ $% ,he s,an+ar+s &*$n
which his reg&#ari4a,i$n w$&#+ 'e 'ase+. He re*$r,e+ %$r w$r< $n Ma) !", 199-. As *er ,he
c$3*an)Gs *$#ic), ,he *r$'a,i$nar) *eri$+ was %r$3 ,hree =? 3$n,hs ,$ a 3aFi3&3 $% siF =-?
3$n,hs. A**#)ing Ar,ic#e 1 $% ,he Civi# C$+e, ,he *r$'a,i$nar) *eri$+ $% siF =-? 3$n,hs
c$nsis,s $% $ne h&n+re+ eigh,) =11(? +a)s.This is in c$n%$r3i,) wi,h *aragra*h $ne, Ar,ic#e 1
$% ,he Civi# C$+e, which *r$vi+es ,ha, ,he 3$n,hs which are n$, +esigna,e+ ') ,heir na3es
sha## 'e &n+ers,$$+ as c$nsis,ing $% ,hir,) =(? +a)s each. The n&3'er $% 3$n,hs in ,he
*r$'a,i$nar) *eri$+, siF =-?, sh$&#+ ,hen 'e 3&#,i*#ie+ ') ,he n&3'er $% +a)s wi,hin a 3$n,h,
,hir,) =(?O hence, ,he *eri$+ $% $ne h&n+re+ eigh,) =11(? +a)s. As c#ear#) *r$vi+e+ %$r in ,he
#as, *aragra*h $% Ar,ic#e 1, in c$3*&,ing a *eri$+, ,he Jrs, +a) sha## 'e eFc#&+e+ an+ ,he #as,
+a) inc#&+e+. Th&s, ,he $ne h&n+re+ eigh,) =11(? +a)s c$33ence+ $n Ma) !", 199-, an+
en+e+ $n N$ve3'er !, 199-. The ,er3ina,i$n #e,,er +a,e+ N$ve3'er !2, 199- was serve+ $n
res*$n+en, Paras $n#) a, L(( a.3. $% N$ve3'er !-, 199-. He was, ') ,hen, a#rea+) a reg&#ar
e3*#$)ee $% ,he *e,i,i$ner &n+er Ar,ic#e !11 $% ,he La'$r C$+e.
Page .
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
-. 3angilinan vs. General Milling Co., G.R. No. 1*9329, 2ul$ 2, 2""*
9ac,sL
The res*$n+en, Genera# Mi##ing C$r*$ra,i$n is a +$3es,ic c$r*$ra,i$n engage+ in ,he
*r$+&c,i$n an+ sa#e $% #ives,$c< an+ *$&#,r). I, is, #i<ewise, ,he +is,ri'&,$r $% +resse+ chic<en ,$
vari$&s res,a&ran,s an+ es,a'#ish3en,s na,i$nwi+e. As s&ch, i, e3*#$)s h&n+re+s $%
e3*#$)ees, s$3e $n a reg&#ar 'asis an+ $,hers $n a cas&a# 'asis, as Pe3ergenc) w$r<ers.P
The *e,i,i$ners were e3*#$)e+ ') ,he res*$n+en, $n +iKeren, +a,es as e3ergenc) w$r<ers a,
i,s *$&#,r) *#an, &n+er se*ara,e P,e3*$rar)Bcas&a# c$n,rac,s $% e3*#$)3en,P %$r a *eri$+ $%
Jve 3$n,hs. M$s, $% ,he3 w$r<e+ as chic<en +ressers, whi#e ,he $,hers serve+ as *ac<ers $r
he#*ers. >*$n ,he eF*ira,i$n $% ,heir res*ec,ive c$n,rac,s, ,heir services were ,er3ina,e+.
The) #a,er J#e+ se*ara,e c$3*#ain,s %$r i##ega# +is3issa# an+ n$n5*a)3en, $% h$#i+a) *a), 1
,h
3$n,h *a), nigh,5shi%, +iKeren,ia# an+ service incen,ive #eave *a) agains, ,he res*$n+en,.
The *e,i,i$ners a##ege+ ,ha, ,heir w$r< as chic<en +ressers was necessar) an+ +esira'#e in ,he
&s&a# '&siness $% ,he res*$n+en,. The) s,resse+ ,ha, 'ase+ $n ,he na,&re $% ,heir w$r<, ,he)
were reg&#ar e3*#$)ees $% ,he res*$n+en,O hence, c$&#+ n$, 'e +is3isse+ %r$3 ,heir
e3*#$)3en, &n#ess %$r E&s, ca&se an+ a%,er +&e n$,ice.
Iss&eL
Whe,her $r n$, *e,i,i$ners are reg&#ar e3*#$)ees an+, ,h&s, cann$, 'e +is3isse+ wi,h$&, E&s,
ca&se an+ ,he reA&ire+ +&e *r$cess.
R&#ingL
Ar,ic#e !1( $% ,he La'$r C$+e c$3*rehen+s ,hree <in+s $% e3*#$)eesL =a? reg&#ar e3*#$)ees
$r ,h$se wh$se w$r< is necessar) $r +esira'#e ,$ ,he &s&a# '&siness $% ,he e3*#$)erO ='?
*r$Eec, e3*#$)ees $r ,h$se wh$se e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r
&n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in
na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$nO an+, =c? cas&a# e3*#$)ees $r
,h$se wh$ are nei,her reg&#ar n$r *r$Eec, e3*#$)ees. A reg&#ar e3*#$)ee is $ne wh$ is
engage+ ,$ *er%$r3 ac,ivi,ies which are necessar) an+ +esira'#e in ,he &s&a# '&siness $r ,ra+e
$% ,he e3*#$)er as agains, ,h$se which are &n+er,a<en %$r a s*eciJc *r$Eec, $r are seas$na#.
There are ,w$ se*ara,e ins,ances where') i, can 'e +e,er3ine+ ,ha, an e3*#$)3en, is
reg&#arL =1? i% ,he *ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee is necessar) $r +esira'#e in
,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)erO an+, =!? i% ,he e3*#$)ee has 'een *er%$r3ing ,he
E$' %$r a, #eas, a )ear.
IT IS CLEARL@ STIP>LATE7 THAT THE C:N7ITI:N :9 THE EMPL:@MENT C:NTRACT SHALL BE
AS 9:LL:WSL
1. This e3*#$)3en, c$n,rac, sha## 'e $n a 7A@5T:57A@ BASIS an+ sha## n$, eF,en+ 'e)$n+ ,he
*eri$+ s*eciJe+ ,hereinO
!. The e3*#$)ee a%$re3en,i$ne+ 3a) 'e #ai+ $K $r se*ara,e+ %r$3 ,he 9ir3, E8EN BE9:RE
THE ECPIR@ 7ATE :9 THIS C:NTRACT, i% hisBher services are n$ #$nger nee+e+, $r i% s&ch
services are %$&n+ ,$ 'e &nsa,is%ac,$r), $r i% sheBhe has vi$#a,e+ an) $% ,he es,a'#ishe+ r&#es
an+ reg&#a,i$ns $% ,he C$3*an)O
Page ..
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
. In an) case, ,he *eri$+ $% e3*#$)3en, sha## n$, g$ 'e)$n+ ,he +&ra,i$n $% ,he w$r< $r
*&r*$se %$r which ,he a%$re3en,i$ne+ e3*#$)ee has 'een engage+O
.. Tha, ,he e3*#$)ee here') agrees ,$ w$r< in an) w$r< shi%, sche+&#e ,ha, 3a) 'e assigne+
,$ hi3 ') ,he 9ir3 +&ring ,he *eri$+ $% ,his c$n,rac,O an+
This Te3*$rar)BCas&a# E3*#$)3en, c$n,rac,, &n#ess s$$ner ,er3ina,e+ %$r an) $% ,he ca&ses
a'$ve5ci,e+, sha## ,hen a&,$3a,ica##) cease $n i,s eF*ir) +a,e, wi,h$&, ,he necessi,) $% an)
*ri$r n$,ice ,$ ,he e3*#$)ee c$ncerne+.
The rec$r+s revea# ,ha, ,he s,i*&#a,i$ns in ,he e3*#$)3en, c$n,rac,s were <n$wing#) an+
v$#&n,ari#) agree+ ,$ ') ,he *e,i,i$ners wi,h$&, %$rce, +&ress $r i3*r$*er *ress&re, $r an)
circ&3s,ances ,ha, vi,ia,e+ ,heir c$nsen,. Si3i#ar#), n$,hing ,herein sh$ws ,ha, ,hese
c$n,rac,s were &se+ as a s&',er%&ge ') ,he res*$n+en, GMC ,$ eva+e ,he *r$visi$ns $%
Ar,ic#es !"9 an+ !1( $% ,he La'$r C$+e. The *e,i,i$ners were hire+ as Pe3ergenc) w$r<ersP
an+ assigne+ as chic<en +ressers, *ac<ers an+ he#*ers a, ,he Cain,a Pr$cessing P#an,. The
res*$n+en, GMC is a +$3es,ic c$r*$ra,i$n engage+ in ,he *r$+&c,i$n an+ sa#e $% #ives,$c< an+
*$&#,r), an+ is a +is,ri'&,$r $% +resse+ chic<en. Whi#e ,he *e,i,i$nersS e3*#$)3en, as chic<en
+ressers is necessar) an+ +esira'#e in ,he &s&a# '&siness $% ,he res*$n+en,, ,he) were
e3*#$)e+ $n a 3ere ,e3*$rar) 'asis, since ,heir e3*#$)3en, was #i3i,e+ ,$ a JFe+ *eri$+. As
s&ch, ,he) cann$, 'e sai+ ,$ 'e reg&#ar e3*#$)ees, '&, are 3ere#) Pc$n,rac,&a# e3*#$)ees.P
C$nseA&en,#), ,here was n$ i##ega# +is3issa# when ,he *e,i,i$nersS services were ,er3ina,e+ ')
reas$n $% ,he eF*ira,i$n $% ,heir c$n,rac,s. Lac< $% n$,ice $% ,er3ina,i$n is $% n$ c$nseA&ence,
'eca&se when ,he c$n,rac, s*eciJes ,he *eri$+ $% i,s +&ra,i$n, i, ,er3ina,es $n ,he eF*ira,i$n
$% s&ch *eri$+. A c$n,rac, %$r e3*#$)3en, %$r a +eJni,e *eri$+ ,er3ina,es ') i,s $wn ,er3 a,
,he en+ $% s&ch *eri$+.
9. Ravago vs. #sso #as(ern Marine L(&., G.R. No. 1.-32*, March 1*, 2"".
9ac,sL
R$'er,$ Ravag$ was hire+ ') Trans5G#$'a# ,$ w$r< as a sea3an $n '$ar+ vari$&s Ess$ vesse#s.
:n 9e'r&ar) 1, 19"(, Ravag$ c$33ence+ his +&,) as SBN wi*er $n '$ar+ ,he Ess$ Ba,aan
&n+er a c$n,rac, ,ha, #as,e+ &n,i# 9e'r&ar) 1(, 19"1. Therea%,er, he was assigne+ ,$ w$r< in
+iKeren, Ess$ vesse#s where he was +esigna,e+ +iverse ,as<s, s&ch as $i#er, ,hen assis,an,
engineer. He was e3*#$)e+ &n+er a ,$,a# $% . se*ara,e an+ &nc$nnec,e+ c$n,rac,s, each %$r
a JFe+ *eri$+, ') ,hree +iKeren, c$3*anies, na3e#), Ess$ Tan<ers, Inc. =ETI?, EEM an+ Ess$
In,erna,i$na# Shi**ing =Baha3as? C$., L,+. =EIS?, Singa*$re Branch. Ravag$ w$r<e+ wi,h Ess$
vesse#s &n,i# A&g&s, !!, 199!, a *eri$+ s*anning 3$re ,han !! )ears. Sh$r,#) a%,er c$3*#e,ing
his #a,es, c$n,rac, wi,h EIS, Ravag$ was gran,e+ a vaca,i$n #eave wi,h *a). :ne ,he nigh,, a
s,ra) '&##e, hi, Ravag$ $n ,he #e%, #eg whi#e he was wai,ing %$r a '&s ri+e in C&'a$, D&e4$n
Ci,). He %rac,&re+ his #e%, *r$Fi3a# ,i'ia an+ was h$s*i,a#i4e+ a, ,he Phi#i**ine :r,h$*e+ic
H$s*i,a#. As a res&#, $% his inE&r), Ravag$Ss +$c,$r $*ine+ ,ha, he w$&#+ n$, 'e a'#e ,$ c$*e
wi,h ,he E$' $% a sea3an an+ s&gges,e+ ,ha, he 'e given a +es< E$'. Ravag$Ss #e%, #eg ha+
'ec$3e a**aren,#) sh$r,er, 3a<ing hi3 wa#< wi,h a #i3*. 9$r ,his reas$n, ,he c$3*an)
*h)sician, 7r. 8irginia G. Man4$, %$&n+ hi3 ,$ have #$s, his +eF,eri,), 3a<ing hi3 &nJ, ,$ w$r<
$nce again as a sea3an. C$nseA&en,#), ins,ea+ $% rehiring Ravag$, EIS *ai+ hi3 his Career
E3*#$)3en, Incen,ive P#an =CEIP? an+ his Jna# ,aF re%&n+ %$r 199!. A%,er +e+&c,ing his S$cia#
Sec&ri,) S)s,e3 an+ 3e+ica# c$n,ri'&,i$ns, EIS re3i,,e+ ,he ne, a3$&n, $% P1-!,!!.-2,
%$##$wing Ravag$Ss eFec&,i$n $% a 7ee+ $% D&i,c#ai3 an+B$r Re#ease. H$wever, Ravag$ J#e+ a
c$3*#ain, %$r i##ega# +is3issa# wi,h *ra)er %$r reins,a,e3en,, 'ac<wages, +a3ages an+
a,,$rne)Ss %ees agains, Trans5G#$'a# an+ EIS wi,h ,he Phi#i**ine :verseas E3*#$)3en,
Page .2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
A+3inis,ra,i$n A+E&+ica,i$n :Ice. Res*$n+en,s +enie+ ,ha, Ravag$ was +is3isse+ wi,h$&,
n$,ice an+ E&s, ca&se. Ra,her, his services were n$ #$nger engage+ in view $% ,he +isa'i#i,) he
s&Kere+ which ren+ere+ hi3 &nJ, ,$ w$r< as a sea%arer. The) averre+ ,ha, Ravag$ was a
c$n,rac,&a# e3*#$)ee an+ was hire+ &n+er . se*ara,e c$n,rac,s ') +iKeren, c$3*anies. In
his *$si,i$n *a*er, Ravag$ insis,e+ ,ha, he was J, ,$ res&3e *re5inE&r) ac,ivi,ies as evi+ence+
') ,he cer,iJca,i$n iss&e+ ') 7r. Marcian$ 9$r$n+a M.7., $ne $% his a,,en+ing *h)sicians a, ,he
Phi#i**ine :r,h$*e+ic H$s*i,a#, ,ha, Pa, *resen,, %rac,&re $% ,i'ia has c$3*#e,e#) hea#e+ an+
*a,ien, is J, ,$ res&3e *re5inE&r) ac,ivi,ies an),i3e.P Ravag$, #i<ewise, asser,e+ ,ha, he was
n$, a 3ere c$n,rac,&a# e3*#$)ee 'eca&se ,he res*$n+en,s reg&#ar#) an+ c$n,in&$&s#) rehire+
hi3 %$r ! )ears an+, %$r his c$n,in&$&s service, was awar+e+ a CEIP *a)3en, &*$n his
,er3ina,i$n %r$3 e3*#$)3en,.
The C$&r, $% A**ea#s +eci+e+ ,ha, ,he e3*#$)3en, s,a,&s $% sea%arers has 'een es,a'#ishe+
wi,h Jna#i,) ') ,he C$&r,Ss rec$nsi+era,i$n $% i,s +ecisi$n in Mi##ares v. Na,i$na# La'$r Re#a,i$ns
C$33issi$n, wherein i, was r&#e+ ,ha, sea3en are c$n,rac,&a# e3*#$)ees. Acc$r+ing ,$ ,he
CA, ,he %ac, ,ha, Ravag$ was n$, rehire+ &*$n ,he c$3*#e,i$n $% his c$n,rac, +i+ n$, res&#, in
his i##ega# +is3issa#O hence, he was n$, en,i,#e+ ,$ reins,a,e3en, $r *a)3en, $% se*ara,i$n *a).
Iss&eL
Whe,her $r n$, ,he C$&r, $% A**ea#s grave#) erre+, '#a,an,#) +isregar+e+ ,he c$ns,i,&,i$na#
3an+a,e $n *r$,ec,i$n ,$ 9i#i*in$ $verseas w$r<ers, an+ c$&n,enance+ &nwarran,e+
+iscri3ina,i$n when i, r&#e+ ,ha, *e,i,i$ner cann$, 'ec$3e a reg&#ar e3*#$)ee.
R&#ingL
In a ca,ena $% cases, ,his C$&r, has c$nsis,en,#) r&#e+ ,ha, sea%arers are c$n,rac,&a#, n$,
reg&#ar, e3*#$)ees. In Bren, Sch$$#, Inc. v. Qa3$ra, ,he C$&r, r&#e+ ,ha, sea3en an+ $verseas
c$n,rac, w$r<ers are n$, c$vere+ ') ,he ,er3 Preg&#ar e3*#$)3en,P as +eJne+ in Ar,ic#e !1(
$% ,he La'$r C$+e. As a 9i#i*in$ sea3an, *e,i,i$ner is g$verne+ ') ,he R&#es an+ Reg&#a,i$ns
G$verning :verseas E3*#$)3en, an+ ,he sai+ R&#es +$ n$, *r$vi+e %$r se*ara,i$n $r
,er3ina,i$n *a). The S,an+ar+ E3*#$)3en, C$n,rac, g$verning ,he E3*#$)3en, $% A## 9i#i*in$
Sea3en $n B$ar+ :cean5G$ing 8esse#s $% ,he P:EA, *ar,ic&#ar#) in Par, I, Sec. C, s*eciJca##)
*r$vi+es ,ha, ,he c$n,rac, $% sea3en sha## 'e %$r a JFe+ *eri$+. An+ in n$ case sh$&#+ ,he
c$n,rac, $% sea3en 'e #$nger ,han 1! 3$n,hs. I, rea+sL
Sec,i$n C. 7&ra,i$n $% C$n,rac,
The *eri$+ $% e3*#$)3en, sha## 'e %$r a JFe+ *eri$+ '&, in n$ case ,$ eFcee+ 1! 3$n,hs an+
sha## 'e s,a,e+ in ,he Crew C$n,rac,. An) eF,ensi$n $% ,he C$n,rac, *eri$+ sha## 'e s&'Eec, ,$
,he 3&,&a# c$nsen, $% ,he *ar,ies.
Their e3*#$)3en, is g$verne+ ') ,he c$n,rac,s ,he) sign ever) ,i3e ,he) are rehire+ an+ ,heir
e3*#$)3en, is ,er3ina,e+ when ,he c$n,rac, eF*ires. Their e3*#$)3en, is c$n,rac,&a##) JFe+
%$r a cer,ain *eri$+ $% ,i3e. The) %a## &n+er ,he eFce*,i$n $% Ar,ic#e !1( wh$se e3*#$)3en,
has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has
'een +e,er3ine+ a, ,he ,i3e $% engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r services ,$
'e *er%$r3e+ is seas$na# in na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.
Page .-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
1". @acien&a 'inoA@or(encia S(ar: vs. Cuenca, G.R. No. 1."*7-, A%ril 1., 2"".,
ci(ing 2""3 @acien&a 6a(i/a
9ac,sL
H$r,encia L. S,ar<e, herein *e,i,i$ner, is ,he $wner an+ $*era,$r $% ,he Hacien+a Bin$. 7&ring
,he $K 3i##ing seas$n $% 199- he iss&e+ an :r+er $r N$,ice which s,a,e+, ,ha, a## Hacien+a
E3*#$)ees wh$ signe+ in %av$r $% CARP are eF*ressing ,heir +esire ,$ ge, $&, $% e3*#$)3en,
$n ,heir $wn v$#i,i$n an+ where%$re, $n#) ,h$se wh$ +i+ n$, sign %$r CARP wi## 'e given
e3*#$)3en, ') ,he hacien+a.
Herein res*$n+en,s are e3*#$)ees $% ,he hacien+a *er%$r3ing vari$&s w$r<s, s&ch as
c&#,iva,i$n, *#an,ing $% cane *$in,s, %er,i#i4a,i$n, wa,ering, wee+ing, harves,ing an+ #$a+ing $%
harves,e+ s&garcanes ,$ carg$ ,r&c<s are ,h$se wh$ signe+ in %av$r $% CARP. The) a##ege ,ha,
,he) are reg&#ar an+ *er3anen, w$r<ers $% ,he $aienda an+ ,ha, ,he) were +is3isse+ wi,h$&,
E&s, an+ #aw%&# ca&se. The) %&r,her a##ege+ ,ha, ,he) were +is3isse+ 'eca&se ,he) a**#ie+ as
'eneJciaries &n+er ,he C$3*rehensive Agrarian Re%$r3 Pr$gra3 =CARP? $ver ,he #an+ $wne+
') *e,i,i$ner S,ar<e. Pe,i,i$ner S,ar<e a##ege+ ,ha, in ,here was #i,,#e w$r< in ,he *#an,a,i$n as
i, was $K5seas$nO an+ s$, $n acc$&n, $% ,he seas$na# na,&re $% ,he w$r<, she iss&e+ ,he $r+er
giving *re%erence ,$ ,h$se wh$ s&**$r,e+ ,he re5c#assiJca,i$n. She *$in,e+ $&, ,ha, when ,he
3i##ing seas$n 'egan, ,he w$r< was *#en,i%&# again an+ she iss&e+ n$,ices ,$ a## w$r<ers,
inc#&+ing ,he res*$n+en,s, in%$r3ing ,he3 $% ,he avai#a'i#i,) $% w$r<. H$wever, ,he
res*$n+en,s re%&se+ ,$ re*$r, 'ac< ,$ w$r<.
Iss&eL
Whe,her $r n$, ,he res*$n+en,s are reg&#ar e3*#$)eeW
R&#ingL
I, he#+ ,ha, ,he r&#ing in 4erado, Sr. v. NLRC +$es n$, $*era,e ,$ a'an+$n ,he se,,#e+ +$c,rine
,ha, s&gar w$r<ers are c$nsi+ere+ reg&#ar an+ *er3anen, %ar3 w$r<ers $% a s&gar *#an,a,i$n
$wner, c$nsi+ering ,ha, ,here are %ac,s *ec&#iar in ,ha, case which are n$, *resen, in ,he case
a, 'ar. In ,he 4erado case, ,he %ar3 #a'$rers w$r<e+ $n#) %$r a +eJni,e *eri$+ %$r a %ar3
$wner since ,he area $% ,he #an+ was c$3*ara,ive#) s3a##, a%,er which ,he) $Ker ,heir services
,$ $,her %ar3 $wners. In ,his case, ,he area $% ,he $aienda, which is !- hec,ares, si3*#)
+$es n$, a##$w %$r ,he res*$n+en,s ,$ w$r< %$r a +eJni,e *eri$+ $n#). The *e,i,i$ners +i+ n$,
*resen, an) evi+ence ,ha, ,he res*$n+en,s were reA&ire+ ,$ *er%$r3 cer,ain *hases $%
agric&#,&ra# w$r< %$r a +eJni,e *eri$+ $% ,i3e. A#,h$&gh ,he *e,i,i$ners asser, ,ha, ,he
res*$n+en,s 3a+e ,heir services avai#a'#e ,$ ,he neigh'$ring $aiendas, ,he rec$r+s +$ n$,,
h$wever, s&**$r, s&ch asser,i$n. The *ri3ar) s,an+ar+ %$r +e,er3ining reg&#ar e3*#$)3en, is
,he reas$na'#e c$nnec,i$n 'e,ween ,he *ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee in
re#a,i$n ,$ ,he &s&a# ,ra+e $r '&siness $% ,he e3*#$)er. There is n$ +$&', ,ha, ,he res*$n+en,s
were *er%$r3ing w$r< necessar) an+ +esira'#e in ,he &s&a# ,ra+e $r '&siness $% an e3*#$)er.
Hence, ,he) can *r$*er#) 'e c#assiJe+ as reg&#ar e3*#$)ees. 9$r res*$n+en,s ,$ 'e eFc#&+e+
%r$3 ,h$se c#assiJe+ as reg&#ar e3*#$)ees, i, is n$, en$&gh ,ha, ,he) *er%$r3 w$r< $r services
,ha, are seas$na# in na,&re. The) 3&s, have 'een e3*#$)e+ onl& for t$e duration of one
season. Whi#e ,he rec$r+s s&Icien,#) sh$w ,ha, ,he res*$n+en,sG w$r< in ,he $aienda was
seas$na# in na,&re, ,here was, h$wever, n$ *r$$% ,ha, ,he) were hire+ %$r ,he +&ra,i$n $% $ne
seas$n $n#). In %ac,, ,he *a)r$##s, s&'3i,,e+ in evi+ence ') ,he *e,i,i$ners, sh$w ,ha, ,he)
avai#e+ ,he services $% ,he res*$n+en,s since 1991. A'sen, an) *r$$% ,$ ,he c$n,rar), ,he
genera# r&#e $% reg&#ar e3*#$)3en, sh$&#+, ,here%$re, s,an+. I, 'ears s,ressing ,ha, ,he
e3*#$)er has ,he '&r+en $% *r$ving ,he #aw%&#ness $% his e3*#$)eeGs +is3issa#.
Page ."
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
11. 3hil Gloal Co//unica(ion v. 4e 5era, G.R. No. 1.721*, 2une 7, 2"".
9ac,sL
Pe,i,i$ner Phi#i**ine G#$'a# C$33&nica,i$ns, Inc. =Phi#C$3?, is a c$r*$ra,i$n engage+ in ,he
'&siness $% c$33&nica,i$n services an+ a##ie+ ac,ivi,ies, whi#e res*$n+en, Ricar+$ 7e 8era is
a *h)sician ') *r$%essi$n wh$3 *e,i,i$ner en#is,e+ ,$ a,,en+ ,$ ,he 3e+ica# nee+s $% i,s
e3*#$)ees. :n 12 Ma) 1911, 7e 8era, via a #e,,er $Kere+ his services ,$ ,he *e,i,i$ner,
,herein *r$*$sing his *#an $% w$r<s reA&ire+ $% a *rac,i,i$ner in in+&s,ria# 3e+icine, ,$ inc#&+e
/CERTAIN TASHS0. The *ar,ies agree+ an+ %$r3a#i4e+ res*$n+en,Gs *r$*$sa# in a +$c&3en,
+en$3ina,e+ as RETAINERSHIP C:NTRACTRwhich wi## 'e %$r a *eri$+ $% $ne )ear s&'Eec, ,$
renewa#, an+ ,ha, res*$n+en,Gs Mre,ainer %eeN wi## 'e a, P.,(((.(( a 3$n,h. Sai+ c$n,rac, was
renewe+ )ear#). The re,ainershi* arrange3en, wen, $n %r$3 1911 ,$ 199. wi,h changes in ,he
re,ainerGs %ee. H$wever, %$r ,he )ears 1992 an+ 199-, renewa# $% ,he c$n,rac, was $n#) 3a+e
verball&. In 7ece3'er 199- Phi#c$3, ,hr& a #e,,er 'earing $n ,he s&'Eec, '$#+#) wri,,en as
MTERMINATI:N R RETAINERSHIP C:NTRACTN, in%$r3e+ 7e 8era $% i,s +ecisi$n ,$ +isc$n,in&e
,he #a,,erGs Mre,ainerGs c$n,rac, wi,h ,he C$3*an) eKec,ive a, ,he c#$se $% '&siness h$&rs $%
7ece3'er 1, 199-N 'eca&se 3anage3en, has +eci+e+ ,ha, i, w$&#+ 'e 3$re *rac,ica# ,$
*r$vi+e 3e+ica# services ,$ i,s e3*#$)ees ,hr$&gh accre+i,e+ h$s*i,a#s near ,he c$3*an)
*re3ises.
7e 8era J#e+ a c$3*#ain, %$r i##ega# +is3issa# 'e%$re ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n
=NLRC?, a##eging
,ha, he ha+ 'een ac,&a##) e3*#$)e+ ') Phi#c$3 as i,s c$3*an) *h)sician since 1911 an+ was
+is3isse+ wi,h$&, +&e *r$cess.
He averre+ ,ha, he was +esigna,e+ as a Mc$3*an) *h)sician $n re,ainer 'asisN %$r reas$ns
a##ege+#) <n$wn $n#) ,$ Phi#c$3.
He #i<ewise *r$%esse+ ,ha, since he was n$, c$nversan, wi,h #a'$r #aws, he +i+ n$, give 3&ch
a,,en,i$n ,$ ,he +esigna,i$n as an)wa) he w$r<e+ $n a %&##5,i3e 'asis an+ was *ai+ a 'asic
3$n,h#) sa#ar) *#&s %ringe 'eneJ,s, #i<e an) $,her reg&#ar e3*#$)ees $% Phi#c$3.
La'$r Ar'i,er +is3isse+ 7e 8eraGs c$3*#ain, %$r #ac< $% 3eri,, $n ,he ra,i$na#e ,ha, as a
Mre,aine+ *h)sicianN &n+er a va#i+ c$n,rac, 3&,&a##) agree+ &*$n ') ,he *ar,ies, 7e 8era was
an Min+e*en+en, c$n,rac,$rN an+ ,ha, he Mwas n$, +is3isse+ '&, ra,her his c$n,rac, wi,h
/PHILC:M0 en+e+ when sai+ c$n,rac, was n$, renewe+ a%,er 7ece3'er 1, 199-N.
NLRC reverse+ $n a Jn+ing ,ha, 5 7e 8era is Phi#c$3Gs Mreg&#ar e3*#$)eeN an+ acc$r+ing#)
+irec,e+ ,he c$3*an) ,$ reins,a,e hi3 ,$ his %$r3er *$si,i$n wi,h$&, #$ss $% seni$ri,) righ,s
an+ *rivi#eges an+ wi,h %&## 'ac<wages %r$3 ,he +a,e $% his +is3issa# &n,i# ac,&a#
reins,a,e3en,.
Phi#c$3 ,hen wen, ,$ ,he C$&r, $% A**ea#s which ren+ere+ a +ecisi$n, 3$+i%)ing ,ha, $% ,he
NLRC ') +e#e,ing ,he awar+ $% ,rave#ing a##$wance, an+ $r+ering *a)3en, $% se*ara,i$n *a) ,$
7e 8era in #ie& $% reins,a,e3en,.
Iss&eL
Whe,her ,he case is $ne $% a L%,(*(4A*% )"B C"N*RAC*(N, A,R%%4%N*
$r an %4PL"5%R-%4PL"5%% R%LA*("NS1(P.
Page .1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R&#ingL
The *ri3$r+ia# iss&e $% whe,her an e3*#$)er5e3*#$)ee re#a,i$nshi* eFis,s 'e,ween *e,i,i$ner
an+ res*$n+en,, ,he eFis,ence $% which is, in i,se#%, a A&es,i$n $% %ac, we## wi,hin ,he *r$vince
$% ,he NLRC. N$ne,he#ess, given ,he rea#i,) ,ha, ,he NLRCGs Jn+ings are a, $++s wi,h ,h$se $%
,he #a'$r ar'i,er, ,he C$&r, is c$ns,raine+ ,$ #$$< +ee*er in,$ ,he a,,en+an, circ&3s,ances
$',aining in ,his case, as a**earing $n rec$r+.
APPL@ING THE 9:>R59:L7 TEST T: THIS CASE,
i, was res*$n+en, hi3se#% wh$ se,s ,he *ara3e,ers $% wha, his +&,ies w$&#+ 'e in $Kering his
services ,$ *e,i,i$ner, as '$rne ') n$ #ess ,han his $wn #e,,er which was s&'s,an,ia##) ,he 'asis
$% ,he #a'$r ar'i,erGs Jn+ing ,ha, R,here eFis,e+ n$ e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween
*e,i,i$ner an+ res*$n+en, in a++i,i$n ,$ ,he %$##$wing %ac,&a# se,,ingsL

/AS T: SELECTI:N :R HIRING0
The %ac, ,ha, R,he c$3*#ainan, was n$, c$nsi+ere+ an e3*#$)ee
was rec$gni4e+ ') ,he c$3*#ainan, hi3se#% in a signe+ LETTER ,$ ,he res*$n+en,. The ,en$r $%
,his #e,,er in+ica,es ,ha, R,he c$3*#ainan, was *r$*$sing ,$ eF,en+ his ,i3e wi,h ,he
res*$n+en, an+ see<ing a++i,i$na# c$3*ensa,i$n %$r sai+ eF,ensi$n. This sh$ws ,ha, ,he
res*$n+en, PHILC:M +i+ n$, have c$n,r$# $ver ,he sche+&#e $% ,he c$3*#ainan, as i, /is0 ,he
c$3*#ainan, wh$ is *r$*$sing his $wn sche+&#e an+ as<ing ,$ 'e *ai+ %$r ,he sa3e. This is
*r$$% ,ha, ,he c$3*#ainan, &n+ers,$$+ ,ha, his re#a,i$nshi* wi,h ,he res*$n+en, PHILC:M was
a re,aine+ *h)sician an+ n$, as an e3*#$)ee. I% he were an e3*#$)ee he c$&#+ n$, neg$,ia,e
as ,$ his h$&rs $% w$r<.
The c$3*#ainan, is a 7$c,$r $% Me+icine, an+ *res&3a'#), a we##5e+&ca,e+ *ers$n.
The re,ainer %ee is in+ica,e+ $n ,he RETAINERSHIP C:NTRACT, an+ ,he +&ra,i$n $% ,he c$n,rac,
%$r $ne )ear is a#s$ c#ear#) in+ica,e+ in *aragra*h 2 $% ,he Re,ainershi* C$n,rac,. The
c$3*#ainan, cann$, c#ai3 ,ha, he was &naware ,ha, ,he Yc$n,rac,G was g$$+ $n#) %$r $ne )ear,
as he signe+ ,he sa3e wi,h$&, an) $'Eec,i$ns. The c$3*#ainan, a#s$ acce*,e+ i,s renewa#
ever) )ear ,herea%,er &n,i# 199.. As a #i,era,e *ers$n an+ e+&ca,e+ *ers$n, ,he c$3*#ainan,
cann$, c#ai3 ,ha, he +$es n$, <n$w wha, c$n,rac, he signe+ an+ ,ha, i, was renewe+ $n a
)ear ,$ )ear 'asis.
/AS T: WAGES0
%r$3 ,he ,i3e he s,ar,e+ ,$ w$r< wi,h *e,i,i$ner,
he never was inc#&+e+ in i,s *a)r$##O was never +e+&c,e+ an) c$n,ri'&,i$n %$r re3i,,ance ,$
,he S$cia# Sec&ri,) S)s,e3 =SSS?O an+ was in %ac, s&'Eec,e+ ') *e,i,i$ner ,$ ,he ,en =1(V?
*ercen, wi,hh$#+ing ,aF %$r his *r$%essi$na# %ee, in acc$r+ance wi,h ,he Na,i$na# In,erna#
Reven&e C$+e, 3a,,ers which are si3*#) inc$nsis,en, wi,h an e3*#$)er5e3*#$)ee re#a,i$nshi*.
B&, he never raise+ ,h$se iss&es.
An $r+inar) e3*#$)ee w$&#+ c$nsi+er ,he SSS *a)3en,s i3*$r,an, an+ ,h&s 3a<e s&re ,he)
w$&#+ 'e *ai+. The c$3*#ainan, never '$,here+ ,$ as< ,he res*$n+en, ,$ re3i, his SSS
c$n,ri'&,i$ns. This c#ear#) sh$ws ,ha, ,he c$3*#ainan, never c$nsi+ere+ hi3se#% an e3*#$)ee
$% PHILC:M an+ ,h&s, res*$n+en, nee+ n$, re3i, an),hing ,$ ,he SSS in %av$r $% ,he
c$3*#ainan,.N C#ear#), ,he e#e3en,s $% an e3*#$)er5e3*#$)ee re#a,i$nshi* are wan,ing in ,his
case.
,he rec$r+s are re*#e,e wi,h evi+ence sh$wing ,ha, Rres*$n+en, ha+ ,$ 'i## *e,i,i$ner %$r his
3$n,h#) *r$%essi$na# %ees. I, si3*#) r&ns agains, ,he grain $% c$33$n eF*erience ,$ i3agine
,ha, R an $r+inar) e3*#$)ee has )e, ,$ 'i## his e3*#$)er ,$ receive his sa#ar).
Page .9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
/AS T: 7ISMISSAL0
,he *$wer ,$ ,er3ina,e ,he *ar,iesG re#a,i$nshi* was 3&,&a##) ves,e+ $n '$,h.
Ei,her 3a) ,er3ina,e ,he arrange3en, a, wi##, wi,h $r wi,h$&, ca&se.
9ina##), re3ar<a'#) a'sen, %r$3 ,he *ar,iesG arrange3en, is ,he ELEMENT :9 C:NTR:L,
where') ,he e3*#$)er has reserve+ ,he righ, ,$ c$n,r$# ,he e3*#$)ee n$, $n#) as ,$ ,he res&#,
$% ,he w$r< +$ne '&, a#s$ as ,$ ,he 3eans an+ 3e,h$+s ') which ,he sa3e is ,$ 'e
acc$3*#ishe+.
Here, *e,i,i$ner ha+ n$ c$n,r$# $ver ,he 3eans an+ 3e,h$+s ') which res*$n+en, wen, a'$&,
*er%$r3ing his w$r< a, ,he c$3*an) *re3ises. He c$&#+ even e3'ar< in ,he *riva,e *rac,ice
$% his *r$%essi$n, n$, ,$ 3en,i$n ,he %ac, ,ha, res*$n+en,Gs w$r< h$&rs an+ ,he a++i,i$na#
c$3*ensa,i$n ,here%$r were neg$,ia,e+ &*$n ') ,he *ar,ies.
In Jne, ,he *ar,ies ,he3se#ves *rac,ica##) agree+ $n ever) ,er3s an+ c$n+i,i$ns $%
res*$n+en,Gs engage3en,, which ,here') nega,es ,he e#e3en, $% c$n,r$# in ,heir re#a,i$nshi*.
9$r s&re, res*$n+en, has never ci,e+ even a sing#e ins,ance when *e,i,i$ner in,er%ere+ wi,h his
w$r<.
ARTICLE !1( :9 THE LAB:R C:7E =sic? *r$vi+esL
YThe *r$visi$ns $% wri,,en agree3en, ,$ ,he c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he
$ra# agree3en,s $% ,he *ar,ies, an e3*#$)3en, sha## 'e +ee3e+ ,$ 'e REG>LAR where ,he
e3*#$)ee has 'een engage+ ,$ *er%$r3 in ,he usual business or trade $% ,he e3*#$)er,
ECCEPT where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he
c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he
e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.G
YAn e3*#$)3en, sha## 'e +ee3e+ ,$ 'e CAS>AL i% i, is n$, c$vere+ ') ,he *rece+ing
*aragra*hL
Pr$vi+e+, Tha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne =1? )ear $% service,
whe,her s&ch is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a REG>LAR wi,h res*ec, ,$ ,he
ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch ac,ivi,) eFis,s.G
Paren,he,ica##), ,he *$si,i$n $% c$3*an) *h)sician, in ,he case $% *e,i,i$ner,
is usuall& neessar& and desirable
'eca&se ,he nee+ %$r 3e+ica# a,,en,i$n $% e3*#$)ees cann$, 'e %$reseen,
hence, i, is necessar) ,$ have a *h)sician a, han+.
In %ac,, ,he i3*$r,ance an+ +esira'i#i,) $% a *h)sician in a c$3*an) *re3ises is rec$gni4e+ ')
ART. 12" :9 THE LAB:R C:7E, which reA&ires ,he *resence $% a *h)sician +e*en+ing $n ,he
n&3'er $% e3*#$)ees an+ in ,he case a, 'ench, in *e,i,i$nerGs case, as %$&n+ ') *&'#ic
res*$n+en,, *e,i,i$ner e3*#$)s 3$re ,han 2(( e3*#$)ees.
The a**e##a,e c$&r,Gs *re3ise ,ha, RREG>LAR EMPL:@EES are ,h$se wh$ *er%$r3 ac,ivi,ies
which are +esira'#e an+ necessar) %$r ,he '&siness $% ,he e3*#$)er R is n$, +e,er3ina,ive in
,his case. 9$r, we ,a<e i, ,ha, an) agree3en, 3a) *r$vi+e ,ha, R $ne *ar,) sha## ren+er
services %$r an+ in 'eha#% $% an$,her, n$ 3a,,er h$w necessar) %$r ,he #a,,erGs '&siness, even
wi,h$&, 'eing hire+ as an e3*#$)ee.
This se,5&* is *recise#) ,r&e in ,he case $% an IN7EPEN7ENT C:NTRACT:RSHIP
as we## as in an AGENC@ AGREEMENT.
Page 2(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ARTICLE !1( :9 THE LAB:R C:7E, is n$, ,he )ar+s,ic< %$r +e,er3ining ,he eFis,ence $% an
e3*#$)3en, re#a,i$nshi*. As i, is, ,he *r$visi$n 3ere#) +is,ing&ishes 'e,ween ,w$ =!? <in+s $%
e3*#$)ees, i.e., reg&#ar an+ cas&a#. I, +$es n$, a**#) where, as here, ,he ver) eFis,ence $% an
e3*#$)3en, re#a,i$nshi* is in +is*&,e.
ART. 12" :9 THE LAB:R C:7E
whi#e i, is ,r&e ,ha, ,he *r$visi$n reA&ires e3*#$)ers ,$ engage ,he services $% 3e+ica#
*rac,i,i$ners in cer,ain es,a'#ish3en,s +e*en+ing $n ,he n&3'er $% ,heir e3*#$)ees,
n$,hing is ,here in ,he #aw which sa)s ,ha, 3e+ica# *rac,i,i$ners s$ engage+ 'e ac,&a##) hire+
as e3*#$)ees, a++ing ,ha, ,he #aw, as wri,,en, $n#) reA&ires ,he e3*#$)er M,$ re,ainN, n$,
e3*#$), a *ar,5,i3e *h)sician wh$ nee+e+ ,$ s,a) in ,he *re3ises $% ,he n$n5ha4ar+$&s
w$r<*#ace %$r ,w$ =!? h$&rs.
wha, a**#ies here is ,he #as, *aragra*h $% Ar,ic#e 12" which, ,$ s,ress, *r$vi+es ,ha, R
,he e3*#$)er 3a) engage ,he services $% a *h)sician an+ +en,is, M$n re,aine+ 'asisN, s&'Eec,
,$ s&ch reg&#a,i$ns as ,he Secre,ar) $% La'$r 3a) *rescri'e. The s&ccessive Mre,ainershi*N
agree3en,s $% ,he *ar,ies +eJni,e#) h&e ,$ ,he ver) s,a,&,$r) *r$visi$n re#ie+ &*$n ')
res*$n+en,.
ARTICLE 12" :9 THE LAB:R C:7E c#ear#) an+ &neA&iv$ca##) a##$ws e3*#$)ers in n$n5
ha4ar+$&s es,a'#ish3en,s ,$ engage M$n re,aine+ 'asisN ,he service $% a +en,is, $r *h)sician.
N$where +$es ,he #aw *r$vi+e ,ha, ,he *h)sician $r +en,is, s$ engage+ ,here') 'ec$3es a
reg&#ar e3*#$)ee. The ver) *hrase ,ha, ,he) 3a) 'e engage+ M$n re,aine+ 'asisN, rev$#,s
agains, ,he i+ea ,ha, ,his engage3en, gives rise ,$ an e3*#$)er5e3*#$)ee re#a,i$nshi*.
Wi,h ,he rec$gni,i$n $% ,he %ac, ,ha, R*e,i,i$ner c$nsis,en,#) engage+ ,he services $%
res*$n+en, $n a re,ainer 'asis, as sh$wn ') ,heir vari$&s Mre,ainershi* c$n,rac,sN, s$ can
*e,i,i$ner *&, an en+, wi,h $r wi,h$&, ca&se, ,$ ,heir re,ainershi* agree3en, as ,herein
*r$vi+e+.
/M::T AN7 ACA7EMIC0
We n$,e, h$wever, ,ha, 5 even as ,he c$n,rac,s en,ere+ in,$ ') ,he *ar,ies invaria'#) *r$vi+e
%$r a -(57A@ N:TICE RED>IREMENT *ri$r ,$ ,er3ina,i$n, ,he sa3e was n$, c$3*#ie+ wi,h ')
*e,i,i$ner when i, ,er3ina,e+ ,he ver'a##)5renewe+ re,ainershi* agree3en,.
Be ,ha, as i, 3a), ,he rec$r+ sh$ws, an+ ,his is a+3i,,e+ ') '$,h *ar,ies, ,ha, eFec&,i$n $% ,he
NLRC +ecisi$n ha+ a#rea+) 'een 3a+e a, ,he NLRC +es*i,e ,he *en+enc) $% ,he *resen,
rec$&rse. 9$r s&re, acc$&n,s $% *e,i,i$ner ha+ a#rea+) 'een garnishe+ an+ re#ease+ ,$
res*$n+en, +es*i,e ,he *revi$&s S,a,&s D&$ :r+er/!90 iss&e+ ') ,his C$&r,.
T$ a## in,en,s an+ *&r*$ses, ,here%$re, ,he -(5+a) n$,ice reA&ire3en, has 'ec$3e 3$$, an+
aca+e3ic i% n$, waive+ ') ,he res*$n+en, hi3se#%.
WHERE9:RE, ,he *e,i,i$n is GRANTE7 an+ ,he cha##enge+ +ecisi$n $% ,he C$&r, $% A**ea#s
RE8ERSE7 an+ SET ASI7E. The !1 7ece3'er 1991 +ecisi$n $% ,he #a'$r ar'i,er is
REINSTATE7.
12. !n(egra(e& Con(rac(or an& 3lu/ing >or:s, !nc. vs. Na(ional Laor Rela(ions
Co//ission an& Glen Solon, G.R. No. 1.2*27. Augus( 9, 2"".
9ac,sL
Page 21
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$ner is a *#&3'ing c$n,rac,$r. I,s '&siness +e*en+s $n ,he n&3'er an+ %reA&enc) $% ,he
*r$Eec,s i, is a'#e ,$ c$n,rac, wi,h i,s c#ien,s. :n 9e'r&ar) !, 1991, whi#e *riva,e res*$n+en,
was a'$&, ,$ #$g $&, %r$3 w$r<, he was in%$r3e+ ') ,he wareh$&se3an ,ha, ,he 3ain $Ice
ha+ ins,r&c,e+ ,he3 ,$ ,e## hi3 i, was his #as, +a) $% w$r< as he ha+ 'een ,er3ina,e+. When
*riva,e res*$n+en, wen, ,$ ,he *e,i,i$nerSs $Ice $n 9e'r&ar) !., 1991 ,$ veri%) his s,a,&s, he
%$&n+ $&, ,ha, in+ee+, he ha+ 'een ,er3ina,e+. He J#e+ a c$3*#ain, a##eging ,ha, he was
i##ega##) +is3isse+ wi,h$&, E&s, ca&se an+ wi,h$&, +&e *r$cess. ,he La'$r Ar'i,er r&#e+ ,ha,
*riva,e res*$n+en, was a reg&#ar e3*#$)ee an+ c$&#+ $n#) 'e re3$ve+ %$r ca&se. Pe,i,i$ner
was $r+ere+ ,$ reins,a,e *riva,e res*$n+en, ,$ his %$r3er *$si,i$n wi,h %&## 'ac<wages %r$3
,he ,i3e his sa#ar) was wi,hhe#+ &n,i# his ac,&a# reins,a,e3en,, an+ *a) hi3 service incen,ive
#eave *a), an+ 1,h 3$n,h *a) %$r ,hree )ears. Pe,i,i$ner %&r,her J#e+ a
3$,i$n %$r rec$nsi+era,i$n which was +enie+. I, J#e+ an a**ea# 'e%$re ,he CA '&, i, was
s&'seA&en,#) +is3isse+ %$r #ac< $% 3eri,.
Iss&eL
Whe,her ,he res*$n+en, is a *r$Eec, e3*#$)ee $% ,he *e,i,i$ner $r a reg&#ar e3*#$)ee.
HEL7
N$. He was c$nsi+ere+ as a reg&#ar e3*#$)ee.
We he#+ in T$3as La$ C$ns,r&c,i$n v. NLRC 1! ,ha, ,he *rinci*a# ,es, in +e,er3ining whe,her
an e3*#$)ee is a P*r$Eec, e3*#$)eeP $r Preg&#ar e3*#$)ee,P is, whe,her he is assigne+ ,$ carr)
$&, a Ps*eciJc *r$Eec, $r &n+er,a<ing,P ,he +&ra,i$n =an+ sc$*e? $% which are s*eciJe+ a, ,he
,i3e ,he e3*#$)ee is engage+ in ,he *r$Eec,. 1 PPr$Eec,P re%ers ,$ a *ar,ic&#ar E$' $r
&n+er,a<ing ,ha, is wi,hin ,he reg&#ar $r &s&a# '&siness $% ,he e3*#$)er, '&, which is +is,inc,
an+ se*ara,e an+ i+en,iJa'#e %r$3 ,he &n+er,a<ings $% ,he c$3*an). S&ch E$' $r &n+er,a<ing
'egins an+ en+s a, +e,er3ine+ $r +e,er3ina'#e ,i3es.
A review $% *riva,e res*$n+en,Ss w$r< assign3en,s *a,en,#) sh$we+ he 'e#$nge+ ,$ a w$r<
*$$# ,a**e+ %r$3 where w$r<ers are an+ assigne+ whenever ,heir services were nee+e+. In a
w$r< *$$#, ,he w$r<ers +$ n$, receive sa#aries an+ are %ree ,$ see< $,her e3*#$)3en, +&ring
,e3*$rar) 'rea<s in ,he '&siness. The) are #i<e reg&#ar seas$na# w$r<ers ins$%ar as ,he eKec,
$% ,e3*$rar) cessa,i$n $% w$r< is c$ncerne+. This arrange3en, is 'eneJcia# ,$ '$,h ,he
e3*#$)er an+ e3*#$)ee %$r i, *reven,s ,he &nE&s, si,&a,i$n $% Pc$++#ing #a'$r a, ,he eF*ense
$% ca*i,a#P an+ a, ,he sa3e ,i3e ena'#es ,he w$r<ers ,$ a,,ain ,he s,a,&s $% reg&#ar
e3*#$)ees. 12 N$ne,he#ess, ,he *a,,ern $% re5hiring an+ ,he rec&rring nee+ %$r his services are
s&Icien, evi+ence $% ,he necessi,) an+ in+is*ensa'i#i,) $% s&ch services ,$ *e,i,i$nerSs
'&siness $r ,ra+e.
In Marag&in$,, 6r. v. NLRC we r&#e+ ,ha, $nce a *r$Eec, $r w$r< *$$# e3*#$)ee has 'eenL =1?
c$n,in&$&s#), as $**$se+ ,$ in,er3i,,en,#), re5hire+ ') ,he sa3e e3*#$)er %$r ,he sa3e ,as<s
$r na,&re $% ,as<sO an+ =!? ,hese ,as<s are vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)er, ,hen ,he e3*#$)ee 3&s, 'e +ee3e+ a reg&#ar e3*#$)ee.
The ,es, ,$ +e,er3ine whe,her e3*#$)3en, is reg&#ar $r n$, is ,he reas$na'#e c$nnec,i$n
'e,ween ,he *ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a# '&siness $r
,ra+e $% ,he e3*#$)er. A#s$, i% ,he e3*#$)ee has 'een *er%$r3ing ,he E$' %$r a, #eas, $ne )ear,
even i% ,he *er%$r3ance is n$, c$n,in&$&s $r 3ere#) in,er3i,,en,, ,he #aw +ee3s ,he re*ea,e+
an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as s&Icien, evi+ence $% ,he necessi,), i% n$,
in+is*ensa'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness. Th&s, we he#+ ,ha, where ,he e3*#$)3en, $%
Page 2!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*r$Eec, e3*#$)ees is eF,en+e+ #$ng a%,er ,he s&**$se+ *r$Eec, has 'een Jnishe+, ,he
e3*#$)ees are re3$ve+ %r$3 ,he sc$*e $% *r$Eec, e3*#$)ees an+ are c$nsi+ere+ reg&#ar
e3*#$)ees.
Whi#e #eng,h $% ,i3e 3a) n$, 'e ,he c$n,r$##ing ,es, %$r *r$Eec, e3*#$)3en,, i, is vi,a# in
+e,er3ining i% ,he e3*#$)ee was hire+ %$r a s*eciJc &n+er,a<ing $r ,as<e+ ,$ *er%$r3
%&nc,i$ns vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er.
Here, *riva,e res*$n+en, ha+ 'een a *r$Eec, e3*#$)ee severa# ,i3es $ver. His e3*#$)3en,
cease+ ,$ 'e c$,er3in$&s wi,h s*eciJc *r$Eec,s when he was re*ea,e+#) re5hire+ +&e ,$ ,he
+e3an+s $% *e,i,i$nerSs '&siness. !( Where %r$3 ,he circ&3s,ances i, is a**aren, ,ha, *eri$+s
have 'een i3*$se+ ,$ *rec#&+e ,he acA&isi,i$n $% ,en&ria# sec&ri,) ') ,he e3*#$)ee, ,he)
sh$&#+ 'e s,r&c< +$wn as c$n,rar) ,$ *&'#ic *$#ic), 3$ra#s, g$$+ c&s,$3s $r *&'#ic $r+er.
9&r,her, P$#ic) Ins,r&c,i$ns N$. !( reA&ires e3*#$)ers ,$ s&'3i, a re*$r, $% an e3*#$)eeSs
,er3ina,i$n ,$ ,he neares, *&'#ic e3*#$)3en, $Ice ever) ,i3e his e3*#$)3en, was
,er3ina,e+ +&e ,$ a c$3*#e,i$n $% a *r$Eec,. The %ai#&re $% ,he e3*#$)er ,$ J#e ,er3ina,i$n
re*$r,s is an in+ica,i$n ,ha, ,he e3*#$)ee is n$, a *r$Eec, e3*#$)ee. !! 7e*ar,3en, :r+er N$.
19 s&*erse+ing P$#ic) Ins,r&c,i$ns N$. !( a#s$ eF*ress#) *r$vi+es ,ha, ,he re*$r, $% ,er3ina,i$n
is $ne $% ,he in+ica,i$ns $% *r$Eec, e3*#$)3en,. ! In ,he case a, 'ar, ,here was $n#) $ne #is,
$% ,er3ina,e+ w$r<ers s&'3i,,e+ ,$ ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en,. !. I% *riva,e
res*$n+en, was a *r$Eec, e3*#$)ee, *e,i,i$ner sh$&#+ have s&'3i,,e+ a ,er3ina,i$n re*$r, %$r
ever) c$3*#e,i$n $% a *r$Eec, ,$ which ,he %$r3er was assigne+.
13. Lacues(a vs. A(eneo &e Manila, G.R. No. 1.2777, 4ece/er 9, 2"".
9ac,sL
Res*$n+en, A,ene$ +e Mani#a >niversi,) =A,ene$? hire+, $n a c$n,rac,&a# 'asis, *e,i,i$ner
L$#i,a R. Lac&es,a as a *ar,5,i3e #ec,&rer in i,s Eng#ish 7e*ar,3en, %$r ,he sec$n+ se3es,er $%
sch$$# )ear 191151919. She was re5hire+, s,i## $n a c$n,rac,&a# 'asis, %$r ,he Jrs, an+ sec$n+
se3es,ers $% sch$$# )ear 19195199(. :n 6&#) 1, 199(, ,he *e,i,i$ner was Jrs, a**$in,e+ as
%&##5,i3e ins,r&c,$r $n *r$'a,i$n, in ,he sa3e +e*ar,3en, eKec,ive 6&ne 1, 199( &n,i# March
1, 1991. Therea%,er, her c$n,rac, as %ac&#,) $n *r$'a,i$n was renewe+ eKec,ive A*ri# 1, 1991
&n,i# March 1, 199!. She was again hire+ %$r a ,hir+ )ear eKec,ive A*ri# 1, 199! &n,i# March
1, 199. 7&ring ,hese ,hree )ears she was $n *r$'a,i$n s,a,&s. Res*$n+en, 7r. Le$vin$ Ma.
Garcia, 7ean $% A,ene$Gs Gra+&a,e Sch$$# an+ C$##ege $% Ar,s an+ Sciences, n$,iJe+ *e,i,i$ner
,ha, her c$n,rac, w$&#+ n$ #$nger 'e renewe+ 'eca&se she +i+ n$, in,egra,e we## wi,h ,he
Eng#ish 7e*ar,3en,.Pe,i,i$ner J#e+ a c$3*#ain, %$r i##ega# +is3issa# wi,h *ra)er %$r
reins,a,e3en,, 'ac< wages, an+ 3$ra# an+ eFe3*#ar) +a3ages. She c$n,en+s ,ha, Ar,ic#es
!1( an+ !11 $% ,he La'$r C$+e, n$, ,he Man&a# $% Reg&#a,i$ns %$r Priva,e Sch$$#s, is ,he
a**#ica'#e #aw ,$ +e,er3ine whe,her $r n$, an e3*#$)ee in an e+&ca,i$na# ins,i,&,i$n has
acA&ire+ reg&#ar $r *er3anen, s,a,&s. She arg&es ,ha, =1? &n+er Ar,ic#e !11, *r$'a,i$nar)
e3*#$)3en, sha## n$, eFcee+ siF =-? 3$n,hs %r$3 +a,e $% e3*#$)3en, &n#ess a #$nger *eri$+
ha+ 'een s,i*&#a,e+ ') an a**ren,iceshi* agree3en,O =!? &n+er Ar,ic#e !1(, i% ,he
a**ren,iceshi* agree3en, s,i*&#a,es a *eri$+ #$nger ,han $ne )ear an+ ,he e3*#$)ee
ren+ere+ a, #eas, $ne )ear $% service, whe,her c$n,in&$&s $r 'r$<en, ,he e3*#$)ee sha## 'e
c$nsi+ere+ as reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he ac,ivi,) in which he is e3*#$)e+ whi#e
s&ch ac,ivi,) eFis,sO an+ =? i, is wi,h 3$re reas$n ,ha, *e,i,i$ner 'e 3a+e reg&#ar since she
ha+ ren+ere+ services as *ar,5,i3e an+ %&##5,i3e Eng#ish ,eacher %$r %$&r an+ a ha#% )ears,
services which are necessar) an+ +esira'#e ,$ ,he &s&a# '&siness $% A,ene$.
Page 2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Iss&esL
1. Whe,her $r n$, ,he C$&r, $% A**ea#s erre+ in r&#ing ,ha, i, is ,he Man&a# $% Reg&#a,i$ns 9$r
Priva,e Sch$$#s, n$, ,he La'$r C$+e, ,ha, +e,er3ines ,he acA&isi,i$n $% reg&#ar $r *er3anen,
s,a,&s $% %ac&#,) 3e3'ers in an e+&ca,i$na# ins,i,&,i$nO
!. Whe,her $r n$, a%,er c$3*#e,ing ,he ,hree5)ear *r$'a,i$n wi,h an a'$ve5average
*er%$r3ance, *e,i,i$ner a#rea+) acA&ire+ *er3anen, s,a,&s.
R&#ingsL
1. The Man&a# $% Reg&#a,i$ns %$r Priva,e Sch$$#s, an+ n$, ,he La'$r C$+e, +e,er3ines whe,her
$r n$, a %ac&#,) 3e3'er in an e+&ca,i$na# ins,i,&,i$n has a,,aine+ reg&#ar $r *er3anen,
s,a,&s. >n+er P$#ic) Ins,r&c,i$ns N$. 11 iss&e+ ') ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en,,
M,he *r$'a,i$nar) e3*#$)3en, $% *r$%ess$rs, ins,r&c,$rs an+ ,eachers sha## 'e s&'Eec, ,$ ,he
s,an+ar+s es,a'#ishe+ ') ,he 7e*ar,3en, $% E+&ca,i$n an+ C&#,&re.N
Sec,i$n 9$% ,he 199! Man&a# $% Reg&#a,i$ns %$r Priva,e Sch$$#s *r$vi+es ,ha, %&##5,i3e
,eachers wh$ have sa,is%ac,$ri#) c$3*#e,e+ ,heir *r$'a,i$nar) *eri$+ sha## 'e c$nsi+ere+
reg&#ar $r *er3anen,. M$re$ver, %$r ,h$se ,eaching in ,he ,er,iar) #eve#, ,he *r$'a,i$nar)
*eri$+ sha## n$, 'e 3$re ,han siF c$nsec&,ive reg&#ar se3es,ers $% sa,is%ac,$r) service.The
reA&isi,es ,$ acA&ire *er3anen, e3*#$)3en,, $r sec&ri,) $% ,en&re, are =1? ,he ,eacher is a
%&##5,i3e ,eacherO =!? ,he ,eacher 3&s, have ren+ere+ ,hree c$nsec&,ive )ears $% serviceO an+
=? s&ch service 3&s, have 'een sa,is%ac,$r).
!. A *ar,5,i3e ,eacher cann$, acA&ire *er3anen, s,a,&s. :n#) when $ne has serve+ as a %&##5
,i3e ,eacher can he acA&ire *er3anen, $r reg&#ar s,a,&s. The *e,i,i$ner was a *ar,5,i3e
#ec,&rer 'e%$re she was a**$in,e+ as a %&##5,i3e ins,r&c,$r $n *r$'a,i$n. As a *ar,5,i3e
#ec,&rer, her e3*#$)3en, as s&ch ha+ en+e+ when her c$n,rac, eF*ire+. Th&s, ,he ,hree
se3es,ers she serve+ as *ar,5,i3e #ec,&rer c$&#+ n$, 'e cre+i,e+ ,$ her in c$3*&,ing ,he
n&3'er $% )ears she has serve+ ,$ A&a#i%) her %$r *er3anen, s,a,&s. An+ c$3*#e,ing ,he
*r$'a,i$n *eri$+ +$es n$, a&,$3a,ica##) A&a#i%) her ,$ 'ec$3e a *er3anen, e3*#$)ee $% ,he
&niversi,). Pe,i,i$ner c$&#+ $n#) A&a#i%) ,$ 'ec$3e a *er3anen, e3*#$)ee &*$n %&#J##ing ,he
reas$na'#e s,an+ar+s %$r *er3anen, e3*#$)3en, as %ac&#,) 3e3'er.
C$nsis,en, wi,h aca+e3ic %ree+$3 an+ c$ns,i,&,i$na# a&,$n$3), an ins,i,&,i$n $% higher
#earning has ,he *rer$ga,ive ,$ *r$vi+e s,an+ar+s %$r i,s ,eachers an+ +e,er3ine whe,her
,hese s,an+ar+s have 'een 3e,.A, ,he en+ $% ,he *r$'a,i$n *eri$+, ,he +ecisi$n ,$ re5hire an
e3*#$)ee $n *r$'a,i$n, 'e#$ngs ,$ ,he &niversi,) as ,he e3*#$)er a#$ne.
1*. 3osei&on 6ishingA9err$ 4e 2esus v. NLRC, G.R. No. 1)-".2, 6eruar$ 2". 2"")
9ac,sL
Pe,i,i$ner P$sei+$n 9ishing is a Jshing c$3*an) engage+ in ,he +ee*5sea Jshing in+&s,r) wi,h
Terr) +e 6es&s as ,he 3anager.
6i33) S. Es,$A&ia was e3*#$)e+ as Chie% Ma,e in 6an&ar) 1911 an+ a%,er Jve )ears. The
c$n,rac, wi,h E&s,$Aia *er ,he PHas&n+&anP, ,here was a *r$visi$n s,a,ing ,ha, he was 'eing
e3*#$)e+ $n#) $n a 67por via'e77 'asis an+ ,ha, his e3*#$)3en, w$&#+ 'e ,er3ina,e+ a, ,he
en+ $% ,he ,ri* %$r which he was 'eing hire+.
Page 2.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
He was *r$3$,e+ ,$ B$a, Ca*,ain '&, was #a,er +e3$,e+ ,$ Ra+i$ :*era,$r. As a Ra+i$
:*era,$r, he 3$ni,$re+ ,he +ai#) ac,ivi,ies in ,heir $Ice an+ rec$r+e+ in ,he +&,) #$g'$$< ,he
na3es $% ,he ca##ers an+ ,i3e $% ,heir ca##s.
:n 6&#) !(((, Es,$A&ia %ai#e+ ,$ rec$r+ a "L!2 a.3. ca## in $ne $% ,he #$g'$$<s. When he
reviewe+ ,he ,w$ #$g'$$<s, he n$,ice+ ,ha, he was n$, a'#e ,$ rec$r+ ,he sai+ ca## in $ne $%
,he #$g'$$<s s$ he i33e+ia,e#) rec$r+e+ ,he "L!2 a.3. ca## a%,er ,he "L( a.3. en,r).
In ,he 3$rning $% . 6&#) !(((, *e,i,i$ner +e,ec,e+ ,he err$r in ,he en,r) in ,he #$g'$$<.
Es,$A&ia was as<e+ ,$ *re*are an inci+en, re*$r, ,$ eF*#ain ,he reas$n %$r ,he sai+ $versigh,.
:n ,he sa3e +a), P$sei+$nGs secre,ar) s&33$ne+ Es,$A&ia ,$ ge, his se*ara,i$n *a)
Es,$A&ia J#e+ a c$3*#ain, %$r i##ega# +is3issa# wi,h ,he La'$r Ar'i,er.
P$sei+$n an+ Terr) +e 6es&s asser,e+ ,ha, Es,$A&ia was a c$n,rac,&a# $r a cas&a# e3*#$)ee
e3*#$)e+ $n#) $n a8por via'e8 $r *er ,ri* 'asis an+ ,ha, his e3*#$)3en, w$&#+ 'e ,er3ina,e+
a, ,he en+ $% ,he ,ri* %$r which he was 'eing hire+.
Iss&eLSL
W:N E&s,$Aia was a reg&#ar e3*#$)ee
W:N +ee* 5sea Jshing is a seas$na# in+&s,r)
W:N E&s,$Aia was i##ega##) +is3isse+
R&#ingL
@es, E&s,$A&ia was a reg&#ar e3*#$)ee.
Ar,ic#e !1( +raws a #ine 'e,ween reg&#ar an+ cas&a# e3*#$)3en,. The *r$visi$n en&3era,es
,w$ =!? <in+s $% e3*#$)ees, ,he reg&#ar e3*#$)ees an+ ,he cas&a# e3*#$)ees. The reg&#ar
e3*#$)ees c$nsis, $% ,he %$##$wingL
1? ,h$se engage+ ,$ *er%$r3 ac,ivi,ies which are &s&a##) necessar) $r +esira'#e in ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)erO an+
!? ,h$se wh$ have ren+ere+ a, #eas, $ne )ear $% service whe,her s&ch service is c$n,in&$&s $r
'r$<en.
In a s*an $% 1! )ears, E&s,$A&ia w$r<e+ %$r *e,i,i$ner Jrs, as a Chie% Ma,e, ,hen B$a, Ca*,ain,
an+ #a,er as Ra+i$ :*era,$r. His E$' was +irec,#) re#a,e+ ,$ ,he +ee*5sea Jshing '&siness $%
*e,i,i$ner P$sei+$n. His w$r< was, ,here%$re, necessar) an+ i3*$r,an, ,$ ,he '&siness $% his
e3*#$)er. S&ch 'eing ,he scenari$ inv$#ve+, E&s,$A&ia is c$nsi+ere+ a reg&#ar e3*#$)ee.
There is n$,hing in ,he c$n,rac, ,ha, sa)s c$3*#ainan, is a cas&a#, seas$na# $r a *r$Eec,
w$r<er. The +a,e 6&#) 1 ,$ 1, 1991 &n+er ,he hea+ing PPag+a,ingP ha+ 'een *#ace+ ,here
3ere#) ,$ in+ica,e ,he *$ssi'#e +a,e $% arriva# $% ,he vesse# an+ is n$, an in+ica,i$n $% ,he
s,a,&s $% e3*#$)3en, $% ,he crew $% ,he vesse#.
The ,es, ,$ +e,er3ine whe,her e3*#$)3en, is reg&#ar $r n$, is ,he reasonable onnetion
bet.een t$e partiular ativit& performed b& t$e emplo&ee in relation to t$e usual business or
trade of t$e emplo&er. An+, i% ,he e3*#$)ee has 'een *er%$r3ing ,he E$' %$r a, #eas, $ne )ear,
even i% ,he *er%$r3ance is n$, c$n,in&$&s $r 3ere#) in,er3i,,en,, ,he #aw +ee3s ,he re*ea,e+
an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as s&Icien, evi+ence $% ,he necessi,), i% n$,
in+is*ensa'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness.
In ,he case a, 'ar, ,he ac, $% hiring an+ re5hiring in vari$&s ca*aci,ies is a 3ere ga3'i,
e3*#$)e+ ') *e,i,i$ner ,$ ,hwar, ,he ,en&ria# *r$,ec,i$n $% *riva,e res*$n+en,. S&ch *a,,ern $%
re5hiring an+ ,he rec&rring nee+ %$r his services are ,es,a3en, ,$ ,he necessi,) an+
in+is*ensa'i#i,) $% s&ch services ,$ *e,i,i$nersG '&siness $r ,ra+e.
N$, ,he ac,ivi,) $% ca,ching Jsh is a c$n,in&$&s *r$cess an+ c$&#+ har+#) 'e c$nsi+ere+ as
seas$na# in na,&re.
Page 22
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pr$Eec, e3*#$)ees is +eJne+ as ,h$se w$r<ers hire+L
=1? %$r a s*eciJc *r$Eec, $r &n+er,a<ing, an+
=!? ,he c$3*#e,i$n $r ,er3ina,i$n $% s&ch *r$Eec, has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee.
The *rinci*a# ,es, %$r +e,er3ining whe,her *ar,ic&#ar e3*#$)ees are P*r$Eec, e3*#$)eesP as
+is,ing&ishe+ %r$3 Preg&#ar e3*#$)ees,P is .$et$er or not t$e 8pro'et emplo&ees8 .ere
assigned to arr& out a 8spei- pro'et or underta+ing,8 t$e duration and sope of .$i$ .ere
spei-ed at t$e time t$e emplo&ees .ere engaged for t$at pro'et.
In ,his case, E&s,$A&ia was never in%$r3e+ ,ha, he wi## 'e assigne+ ,$ a Ps*eciJc *r$Eec, $r
&n+er,a<ingN a, ,he ,i3e $% ,heir engage3en,.
:nce a *r$Eec, $r w$r< *$$# e3*#$)ee has 'eenL =1? c$n,in&$&s#), as $**$se+ ,$
in,er3i,,en,#), re5hire+ ') ,he sa3e e3*#$)er %$r ,he sa3e ,as<s $r na,&re $% ,as<sO an+ =!?
,hese ,as<s are vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he
e3*#$)er, ,hen ,he e3*#$)ee 3&s, 'e +ee3e+ a reg&#ar e3*#$)ee.
E&s,$A&iaGs %&nc,i$ns were &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $%
*e,i,i$ner Jshing c$3*an) an+ he was hire+ c$n,in&$&s#) %$r 1! )ears %$r ,he sa3e na,&re $%
,as<s. Hence, he was $% reg&#ar e3*#$)ee.
@es, E&s,$Aia was i##ega##) +is3isse+.
There is n$ s&Icien, evi+ence $n rec$r+ ,$ *r$ve E&s,$AiaGs neg#igence, gr$ss $r si3*#e, in
,he *er%$r3ance $% his +&,ies ,$ warran, a re+&c,i$n $% siF 3$n,hs sa#ar) an+ 'e s&33ari#)
+is3isse+. A, 'es,, ,he si3*#e neg#igence is *&nisha'#e $n#) wi,h a+3$ni,i$n $r s&s*ensi$n %$r
a +a) $r ,w$.
His +is3issa# was wi,h$&, va#i+ ca&se an+ where i##ega# +is3issa# is *r$ven, ,he w$r<er is
en,i,#e+ ,$ 'ac< wages an+ $,her si3i#ar 'eneJ,s wi,h$&, +e+&c,i$ns $r c$n+i,i$ns.
1.. Aesco Cons(ruc(ion vs. Ra/ire0, G.R. No. 1*11)-, A%ril 1", 2"")
9ac,sL
Pe,i,i$ner c$3*an) was engage+ in a c$ns,r&c,i$n '&siness where res*$n+en,s where hire+
$n +iKeren, +a,es %r$3 19"- ,$ 199! ei,her as #a'$rers, r$a+ r$##er $*era,$rs, *ain,ers $r
+rivers. Res*$n+en,s J#e+ ,w$ se*ara,e c$3*#ain,s %$r i##ega# +is3issa# agains, ,he c$3*an)
an+ i,s Genera# Manager 'e%$re La'$r Ar'i,er. The c$3*#ain,s inc#&+e+ c#ai3s %$r n$n5
*a)3en, $% 1
,h
3$n,h *a), 25+a)sG service incen,ive #eave *a), *re3i&3 *a) %$r h$#i+a)s,
res, +a)s, an+ 3$ra# an+ eFe3*#ar) +a3ages. Pe,i,i$ners a##ege+ ,ha, res*$n+en,s were $n#)
*r$Eec, e3*#$)ees wh$se e3*#$)3en, was c$,er3in$&s wi,h ,he *r$Eec, ,he) are assigne+.
The) were n$, reg&#ar e3*#$)ees, wh$ w$&#+ enE$) sec&ri,) $% ,en&re an+ en,i,#e3en, $%
se*ara,i$n *a). LA +ec#are+ E&+g3en, +ec#aring res*$n+en,s as reg&#ar e3*#$)ees 'e#$nge+
,$ a Mw$r<*$$#N an+ where hire+ an+ rehire+ $ver a *eri$+ $% 11 )ears an+ *e,i,i$ners are
g&i#,) $% i##ega# +is3issa#. Pe,i,i$ner a**ea#e+ ,$ NLRC which aIr3e+ LAGs +ecisi$n. Pe,i,i$ner
,hen J#e *e,i,i$n %$r review ,$ CA a##eging ,ha, ,he) were n$, g&i#,) $% i##ega# +is3issa# since
res*$n+en,sG services were 3ere#) *&, $n h$#+ &n,i# ,he res&3*,i$n $% ,heir '&siness
$*era,i$ns. CA +is3isse+ ,he *e,i,i$n %$r *e,i,i$ner is 'arre+ %r$3 raising a new +e%ense a, ,his
s,age $% ,he case.
Page 2-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Iss&eL
Whe,her $r n$, res*$n+en,s are *r$Eec, e3*#$)ees $r reg&#ar e3*#$)ees.
R&#ingL
Res*$n+en,s are reg&#ar e3*#$)ees. 7&ra,i$n as we## as *ar,ic&#ar w$r<Bservice ,$ 'e
*er%$r3e+ 3&s, 'e +eJne+ in an E3*#$)3en, Agree3en, an+ is 3a+e c#ear ,$ ,he e3*#$)ees
a, ,he ,i3e $% hiring. Pe,i,i$ners %ai#e+ ,$ c$3*#) wi,h ,his reA&ire3en,. Pe,i,i$ners inc$nsis,en,
an+ c$nTic,ing *$si,i$n $n ,heir ,r&e re#a,i$n wi,h ,he res*$n+en,s 3a+e i, a## ,he 3$re
evi+en, ,ha, ,he #a,,er were in+ee+ ,heir reg&#ar e3*#$)ees. Pe,i,i$ner %ai#e+ ,$ a+here ,he
,w$5n$,ice r&#eL =1? a n$,ice in%$r3ing ,he3 $% ,he *ar,ic&#ar ac,s %$r which ,he) are 'eing
+is3isse+ an+O =!? a n$,ice a+vising ,he3 $% ,he +ecisi$n ,$ ,er3ina,e ,he e3*#$)3en,.
Res*$n+en,s were never given s&ch n$,ices. Pe,i,i$n is +enie+.
1). Ceu Me(al Cor%., vs. Saliling, G.R. No. 1.**)3, Se%(e/er ., 2"")
9ac,sL
Ce'& Me,a# C$r*$ra,i$n is a c$r*$ra,i$n engage+ in '&)ing an+ se##ing $% scra* ir$n. In ,he
Bac$#$+ 'ranch i, has =? reg&#ar e3*#$)ees h$#+ing s&ch *$si,i$ns as :Icer5in5Charge, a
sca#er, an+ a )ar+3an, wh$se sa#aries are *ai+ +irec,#) ') i,s 3ain $Ice in Ce'&. The
c$3*#ainan,s, Greg$ri$ Sa#i#ing, E#ias B$#i+$, Man&e# A#A&i4a, BenEie A3*ara+$ are ,he $ne
wh$ &n+er,a<es *a<ia$ w$r< in ,he &n#$a+ing $% scra* ir$n. The Bac$#$+ '&)ing s,a,i$n is
3ain#) a s,$c<)ar+ where scra* 3e,a# +e#ivere+ ') i,s s&**#iers are s,$c<*i#e+. The s&**#) $%
scra* 3e,a# is n$, s,ea+) as i, +e*en+s &*$n 3an) %ac,$rs, s&ch as avai#a'i#i,) $% s&**#ies,
*rice, c$3*e,i,i$n an+ +e3an+ a3$ng $,hers. There are wee<s were ,here are n$ +e#iver)
whi#e ,here are wee<s were a A&i,e $% n&3'er $% ,r&c<s are +e#ivere+ ,$ ,he s,$c<)ar+. The
arriva#s $% ,hese ,r&c<s an+ ,he +e#iveries $% scra* 3e,a# ir$n are n$, reg&#ar an+ ,he
sche+&#es $% +e#iveries ,$ ,he s,$c<)ar+ are n$, <n$wn 'e%$re han+ ') ,he res*$n+en, Ce'&
Me,a# C$r*$ra,i$n. These ,r&c<s have ,heir $wn +river an+ ,r&c< '$)s e3*#$)e+ ') ,he
+iKeren, s&**#iers. S$3e,i3es, ,hese ,r&c<s +$ n$, have an) ,r&c< '$)s, an+ in ,hese
ins,ances, ,he c$r*$ra,i$n hires ,he services $% *e$*#e %$r ,he &n#$a+ing $% ,he scra* 3e,a#
%r$3 ,hese ,r&c<s. I, is %$r ,his reas$n ,ha, ,he &n#$a+ers hire+ ') ,he res*$n+en, ,$ &n#$a+ are
'asica##) seas$na# w$r<ers. The) are hire+ whenever ,here are ,r&c<s $% s&**#iers +$ n$, have
an) acc$3*an)ing ,r&c< '$)s. Wh$ever is avai#a'#e an+ wh$ever are wi##ing ,$ he#* &n#$a+ $n
a *ar,ic&#ar $ccasi$n are hire+ ,$ &n#$a+. >s&a##), ,here is a #ea+er %$r a *ar,ic&#ar gr$&* wh$
is ,as<e+ ,$ &n#$a+ ,he scra* 3e,a# %r$3 a *ar,ic&#ar ,r&c<. I, is ,his #ea+er wh$ +is,ri'&,es ,he
in+ivi+&a# ,a<es $% each 3e3'er $% ,he *ar,ic&#ar gr$&* &n#$a+ing ,he scra* 3e,a# %r$3 a
*ar,ic&#ar w$r< The c$3*#ainan,s 3ain,aine+ ,ha, ,he) are hire+ ') Ce'& Me,a# C$r*ara,i$n as
e3*#$)ees an+ J#e+ $n 6an&ar) 1(, 199" a c$3*#ain, wi,h ,he regi$na# ar'i,ra,i$n in Bac$#$+
Ci,) %$r &n+er*a)3en, $% wages an+ n$n5*a)3en, $% ,he %$##$wing 'eneJ,s 1. 1
,h
3$n,h *a)O
!. h$#i+a) *a)O . service incen,ive #eave *a). :n March -, 1991 inc#&+es ,he c#ai3 %$r i##ega#
+is3issa# 'eca&se ,he) were +is3isse+ a%,er ,he J#ing $% ,he c$3*#ain,. The La'$r Ar'i,er
ren+ere+ a +ecisi$n in %av$r $% ,he c$3*#ainan,s. Aggrieve+, Ce'& Me,a# C$r*$ra,i$n J#e+ an
a**ea# wi,h ,he NLRC. The NLRC reverse+ an+ se, asi+e ,he +ecisi$n $% ,he La'$r Ar'i,er an+
he#+ ,ha, ,he c$3*#ainan,s were n$, reg&#ar e3*#$)ees, ,h&s, ,he) c$&#+ n$, have 'een
i##ega##) +is3isse+. The $r+er $% ,he reversa# was 'ase+ $n ,he C$33issi$nGs Jn+ing ,ha, ,he
*e,,) cash v$&chers s&'3i,,e+ ') Ce'& Me,a# C$r*$ra,i$n c$nJr3e+ ,he %ac, ,ha, &n#$a+ers
were *ai+ $n M*a<ia$N $r ,as< 'asis a, Ph* 12.(( *er 3e,ric ,$n. The C$33issi$n %&r,her
ra,i$na#i4e+ ,ha, wi,h ,he irreg&#ar na,&re $% ,he w$r< inv$#ve+ in ,he s,$**age an+ res&3*,i$n
Page 2"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$% which +e*en+e+ s$#e#) $n ,he avai#a'i#i,) $r s&**#) $% scra* 3e,a#, i, necessari#) %$##$ws
,ha, a%,er ,he E$' $% &n#$a+ing was c$3*#e,e+ an+ &n#$a+ers are *ai+ ,he c$n,rac, *rice, ,he
#a,,erGs w$r<ing re#a,i$nshi* wi,h Ce'& Me,a# C$r*$ra,i$n #ega##) en+e+. The) were ,hen %ree
,$ $Ker ,heir services ,$ $,hers.
The c$3*#ainan,s cha##enge+ ,he +ecisi$n $% ,he NLRC wi,h ,he C$&r, $% A**ea#s, an+ i,
ren+ere+ ,he +ecisi$n ann&##ing ,he +ecisi$n $% ,he NLRC an+ reins,a,e+ ,he +ecisi$n 3a+e ')
,he La'$r Ar'i,er. Hence, ,his *e,i,i$n.
Iss&eL
Whe,her $r n$, ,he c$3*#ainan, res*$n+en,s are reg&#ar e3*#$)ees.
R&#ingL
The S&*re3e C$&r, r&#e+ ,here can 'e n$ i##ega# +is3issa# ,$ s*ea< $%. Besi+es, ,he
c$3*#ainan,s cann$, c#ai3 reg&#ari,) in ,he hiring ever) ,i3e a ,r&c< c$3es #$a+e+ wi,h scra*
3e,a#. This is c$nJr3e+ in ,he Pe,,) Cash 8$&chers which are in ,he na3es $% +iKeren, #ea+ers
wh$ are a**$r,i$n ,he a3$&n, earne+ a3$ng i,s 3e3'ers. An+, A&i,e ,e##ing is ,he %ac, ,ha,
n$, ever) ,r&c< +e#iver) $% scra* 3e,a# reA&ires ,he services $% res*$n+en, c$3*#ainan,s when
*ar,ic&#ar ,r&c< is acc$3*anie+ ') i,s $wn &n#$a+er. An+ whenever reA&ire+, res*$n+en,
c$3*#ainan,s were n$, a#wa)s ,he $nes c$n,rac,e+ ,$ &n+er,a<e ,he &n#$a+ing $% ,he ,r&c<s
since ,he w$r< was $Kere+ ,$ wh$3ever were avai#a'#e a, a given ,i3e. I, sh$&#+ 'e
re3e3'ere+ ,ha, ,he Phi#i**ine C$ns,i,&,i$n, whi#e ineF$ra'#) c$33i,,e+ ,$war+s ,he
*r$,ec,i$n $% ,he w$r<ing c#ass %r$3 eF*#$i,a,i$n an+ &n%air ,rea,3en,, never,he#ess 3an+a,es
,he *$#ic) $% s$cia# E&s,ice s$ as ,$ s,ri<e a 'a#ance 'e,ween an av$we+ *re+i#ec,i$n %$r #a'$r,
$n ,he $ne han+, an+ ,he 3ain,enance $% ,he #ega# righ,s $% ca*i,a#, ,he *r$ver'ia# hen ,ha,
#a)s ,he g$#+en egg, $n ,he $,her. In+ee+ we sh$&#+ n$, 'e 3in+%&# $% ,he #ega# n$r3 ,ha,
E&s,ice is in ever) case %$r ,he +eserving, ,$ 'e +is*ense+ wi,h in ,he #igh, $% es,a'#ishe+ %ac,s,
,he a**#ica'#e #aw, an eFis,ing E&ris*r&+ence.
17. Ligan0a v. R'L Shi%$ar& Cor%., G.R. No. 1.9)-2, 7c(oer 17, 2"")
9ac,sL
A%,er w$r<ing as a car*en,er %$r res*$n+en, since A&g&s, 1991, *e,i,i$nerSs e3*#$)3en, was
,er3ina,e+ $n ( :c,$'er 1999. S&ch even, *r$3*,e+ *e,i,i$ner ,$ J#e a c$3*#ain, %$r i##ega#
+is3issa#, a##eging ,ha, $n sai+ +a,e he was ver'a##) in%$r3e+ ,ha, he was a#rea+) ,er3ina,e+
%r$3 e3*#$)3en, an+ 'arre+ %r$3 en,ering ,he *re3ises. :n ,he sa3e $ccasi$n, he was ,$#+
,$ #$$< %$r an$,her E$'. Th&s, he c#ai3e+ ,ha, he was &ncere3$ni$&s#) ,er3ina,e+ %r$3
e3*#$)3en, wi,h$&, an) va#i+ $r a&,h$ri4e+ ca&se. :n ,he $,her han+, res*$n+en, insis,e+
,ha, *e,i,i$ner was a 3ere *r$Eec, e3*#$)ee wh$ was ,er3ina,e+ &*$n c$3*#e,i$n $% ,he
*r$Eec, %$r which he was hire+.
Iss&eL
1. Whe,her $r n$, ,he C$&r, $% A**ea#s seri$&s#) erre+ in c$nc#&+ing ,ha, P*e,i,i$ner is a
*r$Eec, e3*#$)ee, n$, a reg&#ar e3*#$)eeW
R&#ingL
Page 21
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$ner is a reg&#ar e3*#$)ee.
A *r$Eec, e3*#$)ee is $ne wh$se Pe3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r
&n+er,a<ing, ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r service ,$ 'e *er%$r3e+ is seas$na# in
na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.P Be%$re an e3*#$)ee hire+ $n a
*er *r$Eec, 'asis can 'e +is3isse+, a re*$r, 3&s, 'e 3a+e ,$ ,he neares, e3*#$)3en, $Ice
$% ,he ,er3ina,i$n $% ,he services $% ,he w$r<ers ever) ,i3e i, c$3*#e,e+ a *r$Eec,, *&rs&an, ,$
P$#ic) Ins,r&c,i$n N$. !(.
Whi#e ,he a**r$*ria,e evi+ence ,$ sh$w ,ha, a *ers$n is a *r$Eec, e3*#$)ee is ,he
e3*#$)3en, c$n,rac, s*eci%)ing ,he *r$Eec, an+ ,he +&ra,i$n $% s&ch *r$Eec,, ,he eFis,ence $%
s&ch c$n,rac, is n$, a#wa)s c$nc#&sive $% ,he na,&re $% $neSs e3*#$)3en,. In ,he ins,an, case,
res*$n+en, see<s ,$ *r$ve ,he s,a,&s $% *e,i,i$nerSs e3*#$)3en, ,hr$&gh %$&r =.? e3*#$)3en,
c$n,rac,s c$vering a *eri$+ $% $n#) ,w$ =!? )ears ,$ +ec#are *e,i,i$ner as a *r$Eec, e3*#$)ee.
Res*$n+en, %ai#e+ ,$ *resen, ,he c$n,rac,s *&r*$r,e+#) c$vering *e,i,i$nerSs e3*#$)3en, %r$3
1991 ,$ 6&#) 199", s*anning siF =-? )ears $% ,he ,$,a# eigh, =1? )ears $% his e3*#$)3en,. T$
eF*#ain i,s %ai#&re in ,his regar+, res*$n+en, c#ai3s ,ha, ,he rec$r+s an+ c$n,rac,s c$vering
sai+ *eri$+ were +es,r$)e+ ') rains an+ TashT$$+s ,ha, hi, ,he c$3*an)Ss $Ice. S&ch
c$n,en,i$n is c#ear#) &nc$nvincing.
Even ass&3ing ,ha, *e,i,i$ner is a *r$Eec, e3*#$)ee, res*$n+en, %ai#e+ ,$ *r$ve ,ha, his
,er3ina,i$n was %$r a E&s, an+ va#i+ ca&se. Whi#e i, is ,r&e ,ha, ,he e3*#$)3en, c$n,rac, s,a,es
,ha, ,he c$n,rac, en+s &*$n a s*eciJc +a,e, $r &*$n c$3*#e,i$n $% ,he *r$Eec,, res*$n+en,
%ai#e+ ,$ *r$ve ,ha, ,he #as, *r$Eec, was in+ee+ c$3*#e,e+ s$ as ,$ E&s,i%) *e,i,i$nerSs
,er3ina,i$n %r$3 e3*#$)3en,.
In ,er3ina,i$n cases, ,he '&r+en $% *r$$% res,s $n ,he e3*#$)er ,$ sh$w ,ha, ,he +is3issa# is
%$r a E&s, ca&se. Res*$n+en, c$&#+ have easi#) *r$ve+ ,ha, ,he *r$Eec, $r *hase %$r which
*e,i,i$ner was hire+ has a#rea+) 'een c$3*#e,e+. A cer,iJca,e %r$3 ,he $wner $% ,he vesse#
service+ ') ,he c$3*an), *ic,&res *erha*s, $% ,he w$r< acc$3*#ishe+, an+ $,her *r$$% $%
c$3*#e,i$n c$&#+ have 'een *r$c&re+ ') res*$n+en,. H$wever, a## ,ha, we have is
res*$n+en,Ss se#%5serving asser,i$n ,ha, ,he *r$Eec, has 'een c$3*#e,e+.
This C$&r, has he#+ ,ha, an e3*#$)3en, ceases ,$ 'e c$5,er3in$&s wi,h s*eciJc *r$Eec,s when
,he e3*#$)ee is c$n,in&$&s#) rehire+ +&e ,$ ,he +e3an+s $% e3*#$)erSs '&siness an+ re5
engage+ %$r 3an) 3$re *r$Eec,s wi,h$&, in,err&*,i$n. In Marag&in$,, 6r. v. NLRC =Sec$n+
7ivisi$n?, ,he C$&r, r&#e+ ,ha, P$nce a *r$Eec, $r w$r< *$$# e3*#$)ee has 'eenL =1?
c$n,in&$&s#), as $**$se+ ,$ in,er3i,,en,#), rehire+ ') ,he sa3e e3*#$)er %$r ,he sa3e ,as<s
$r na,&re $% ,as<sO an+ =!? ,hese ,as<s are vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)er, ,hen ,he e3*#$)ee 3&s, 'e +ee3e+ a reg&#ar e3*#$)ee,
*&rs&an, ,$ Ar,ic#e !1( $% ,he La'$r C$+e an+ E&ris*r&+ence.P
Pe,i,i$ner, as car*en,er, was ,as<e+ ,$ P3a<e an+ re*air ca'ine,, T$$ring, A&ar,ers, cei#ing,
win+$ws, +$$rs, <i,chen an+ $,her *ar,s $% ,he vesse# ,ha, nee+s ,$ 'e re*aire+.P As s&ch,
*e,i,i$nerSs w$r< was necessar) $r +esira'#e ,$ res*$n+en,Ss '&siness. Ass&3ing, wi,h$&,
gran,ing ,ha, *e,i,i$ner was ini,ia##) hire+ %$r s*eciJc *r$Eec,s $r &n+er,a<ings, ,he re*ea,e+
re5hiring an+ c$n,in&ing nee+ %$r his services %$r $ver eigh, =1? )ears have &n+enia'#) 3a+e
hi3 a reg&#ar e3*#$)ee.
Res*$n+en, ca*i,a#i4es $n $&r r&#ing in 7.M. C$ns&nEi, Inc. v. NLRC!" which rei,era,es ,he r&#e
,ha, ,he #eng,h $% service $% a *r$Eec, e3*#$)ee is n$, ,he c$n,r$##ing ,es, $% e3*#$)3en,
Page 29
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,en&re '&, whe,her $r n$, P,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r
&n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee.P

S&re#), #eng,h $% ,i3e is n$, ,he c$n,r$##ing ,es, %$r *r$Eec, e3*#$)3en,. Never,he#ess, i, is
vi,a# in +e,er3ining i% ,he e3*#$)ee was hire+ %$r a s*eciJc &n+er,a<ing $r ,as<e+ ,$ *er%$r3
%&nc,i$ns vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er.
In ,he case a, 'ar, res*$n+en, ha+ 'een a *r$Eec, e3*#$)ee severa# ,i3es $ver. His
e3*#$)3en, cease+ ,$ 'e c$,er3in$&s wi,h s*eciJc *r$Eec,s when he was re*ea,e+#) re5hire+
+&e ,$ ,he +e3an+s $% *e,i,i$nerSs '&siness. Where %r$3 ,he circ&3s,ances i, is a**aren, ,ha,
*eri$+s have 'een i3*$se+ ,$ *rec#&+e ,he acA&isi,i$n $% ,en&ria# sec&ri,) ') ,he e3*#$)ee,
,he) sh$&#+ 'e s,r&c< +$wn as c$n,rar) ,$ *&'#ic *$#ic), 3$ra#s, g$$+ c&s,$3s $r *&'#ic $r+er.
A## c$nsi+ere+, ,here are seri$&s +$&',s in ,he evi+ence $n rec$r+ ,ha, *e,i,i$ner is a *r$Eec,
e3*#$)ee, $r ,ha, he was ,er3ina,e+ %$r E&s, ca&se. These +$&',s sha## 'e res$#ve+ in %av$r $%
*e,i,i$ner, in #ine wi,h ,he *$#ic) $% ,he #aw ,$ aK$r+ *r$,ec,i$n ,$ #a'$r an+ c$ns,r&e +$&',s in
%av$r $% #a'$r.
WHERE9:RE, ,he *e,i,i$n is GRANTE7 an+ ,he cha##enge+ +ecisi$n $% ,he C$&r, $% A**ea#s is
RE8ERSE7 an+ SET ASI7E. The !! 9e'r&ar) !((1 7ecisi$n $% ,he La'$r Ar'i,er is REINSTATE7.
1-. 6ae0a v. San Miguel Cor%., G.R. No. 1.").-, 6eruar$ 9, 2""7
9ac,sL
Pe,i,i$ners were hire+ ') res*$n+en, San Mig&e# C$r*$ra,i$n =SMC? as PRe#ie% Sa#es3enP %$r
,he Grea,er Mani#a Area =GMA? &n+er se*ara,e '&, a#3$s, si3i#ar#) w$r+e+ PC$n,rac,s $%
E3*#$)3en, Wi,h 9iFe+ Peri$+.P A%,er having en,ere+ in,$ s&ccessive c$n,rac,s $% ,he sa3e
na,&re wi,h SMC, ,he services $% *e,i,i$ners, as we## as +e Lara an+ A#$vera, were ,er3ina,e+
a%,er SMC n$ #$nger agree+ ,$ %$rge an$,her c$n,rac, wi,h ,he3.
SMC an+ i,s c$5res*$n+en, Ar3an Hicar,e, wh$ was i,s H&3an Res$&rces Manager, c#ai3e+
,ha, ,he hiring $% *e,i,i$ners was n$, in,en+e+ ,$ 'e *er3anen,, as ,he sa3e was 3ere#)
$ccasi$ne+ ') ,he nee+ ,$ J## in a vac&&3 arising %r$3 SMCGs gra+&a# ,ransi,i$n ,$ a new
s)s,e3 $% se##ing an+ +e#ivering i,s *r$+&c,s.
Whi#e s$3e $% ,he A&a#iJe+ reg&#ar sa#es3en were rea+i#) &*gra+e+ ,$ ,he *$si,i$n $%
Acc$&n,s S*ecia#is,, res*$n+en,s c#ai3e+ ,ha, SMC s,i## ha+ ,$ se## i,s 'eer *r$+&c,s &sing ,he
c$nven,i$na# r$&,ing s)s,e3 +&ring ,he ,ransi,i$n s,age, ,h&s giving rise ,$ ,he nee+ %$r
,e3*$rar) e3*#$)eesO an+ ,he 3e3'ers $% ,he reg&#ar R$&,e Crew ,hen eFis,ing were
reA&ire+ ,$ &n+erg$ a ,raining *r$gra3 ,$ +e,er3ine whe,her ,he) *$ssesse+ $r c$&#+ 'e
,raine+ %$r ,he necessar) a,,i,&+e an+ a*,i,&+e reA&ire+ $% an Acc$&n,s S*ecia#is,, hence, ,he
hiring $% *e,i,i$ners an+ $,hers %$r a JFe+ *eri$+, c$5,er3in&s wi,h ,he c$3*#e,i$n $% ,he
,ransi,i$n *eri$+ an+ Training Pr$gra3 %$r a## *r$s*ec,ive Acc$&n,s S*ecia#is,s
The *e,i,i$ners a##ege+ ,ha, ,he) were i##ega##) +is3isse+ ') SMC.
Page -(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The La'$r Ar'i,er he#+ *e,i,i$ners were i##ega##) +is3isse+. The 7ecisi$n $% ,he La'$r Ar'i,er
was aIr3e+ $n a**ea# ') ,he NLRC. C$&r, $% A**ea#s reverse+ ,he +ecisi$n $% ,he La'$r
Ar'i,er an+ $% ,he NLRC
Iss&eL
W:N ,he ,er3ina,i$n $% ,he *e,i,i$ners is va#i+.
R&#ingL
Ar,ic#e !1( $% ,he La'$r C$+e +eJnes reg&#ar e3*#$)3en, as %$##$wsL
ART. !1(. Reg&#ar an+ cas&a# e3*#$)3en,. R The *r$visi$ns $% wri,,en agree3en, ,$ ,he
c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# agree3en, $% ,he *ar,ies, an e3*#$)3en,
sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies
which are &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he
e3*#$)er, eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing
,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $%
,he e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.
In Pure 3oods Corp. v. NLRC, S&*re3e C$&r, he#+ ,ha, &n+er ,he a'$ve5A&$,e+ *r$visi$n, ,here
are ,w$ <in+s $% reg&#ar e3*#$)ees, na3e#)L =1? ,h$se wh$ are engage+ ,$ *er%$r3 ac,ivi,ies
which are necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er, an+ =!?
,h$se cas&a# e3*#$)ees wh$ have ren+ere+ a, #eas, $ne )ear $% service, whe,her c$n,in&$&s
$r 'r$<en, wi,h res*ec, ,$ ,he ac,ivi,) in which ,he) are e3*#$)e+.
In Brent S$ool, (n. v. 9amora, ,he S&*re3e C$&r, #ai+ $&, ,ha, Ar,ic#e !1( $% ,he La'$r C$+e
a**ears ,$ *reven, circ&3ven,i$n $% ,he e3*#$)eeGs righ, ,$ 'e sec&re in his
,en&re, ,he c#a&se in sai+ ar,ic#e in+iscri3ina,e#) an+ c$3*#e,e#) r&#ing $&, a## wri,,en $r $ra#
agree3en,s c$nTic,ing wi,h ,he c$nce*, $% reg&#ar e3*#$)3en, as +eJne+ ,herein sh$&#+ 'e
c$ns,r&e+ ,$ re%er ,$ ,he s&'s,an,ive evi# ,ha, ,he C$+e i,se#% has sing#e+ $&,L agree3en,s
en,ere+ in,$ *recise#) ,$ circ&3ven, sec&ri,) $% ,en&re. I, sh$&#+ have n$ a**#ica,i$n ,$
ins,ances where a JFe+ *eri$+ $% e3*#$)3en, was agree+ &*$n <n$wing#) an+ v$#&n,ari#) ')
,he *ar,ies, wi,h$&, an) %$rce, +&ress $r i3*r$*er *ress&re 'eing 'r$&gh, ,$ 'ear &*$n ,he
e3*#$)ee an+ a'sen, an) $,her circ&3s,ances vi,ia,ing his c$nsen,, $r where i, sa,is%ac,$ri#)
a**ears ,ha, ,he e3*#$)er an+ e3*#$)ee +ea#, wi,h each $,her $n 3$re $r #ess eA&a# ,er3s
wi,h n$ 3$ra# +$3inance wha,ever 'eing eFercise+ ') ,he %$r3er $ver ,he #a,,er.
Since res*$n+en,s a,,ri'&,e ,he ,er3ina,i$n $% *e,i,i$nersG e3*#$)3en, ,$ ,he eF*ira,i$n $%
,heir res*ec,ive c$n,rac,s, a +e,er3ina,i$n $% whe,her *e,i,i$ners were hire+ as *r$Eec, $r
seas$na# e3*#$)ees, $r as JFe+5,er3 e3*#$)ees wi,h$&, an) %$rce, +&ress $r i3*r$*er
*ress&re having 'een eFer,e+ agains, ,he3 is in $r+er. I% *e,i,i$ners %a## &n+er an) $% ,hese
ca,eg$ries, ,hen in+ee+ ,heir ,er3ina,i$n %$##$ws %r$3 ,he eF*ira,i$n $% ,heir c$n,rac,s.
The NLRC ha+ s&Icien, 'asis ,$ 'e#ieve ,ha, ,he shi%, $% SMC ,$ ,he Pre5Se##ing S)s,e3 was
n$, ,he rea# 'asis %$r ,he %$rging $% JFe+5,er3 c$n,rac,s $% e3*#$)3en, wi,h *e,i,i$ners an+
,ha, ,he *eri$+s were JFe+ $n#) as a 3eans ,$ *rec#&+e *e,i,i$ners %r$3 acA&iring sec&ri,) $%
,en&re.
Tha, *e,i,i$ners ,he3se#ves insis,e+ $n ,he $ne5)ear JFe+5,er3 is n$, even a##ege+ ')
res*$n+en,s. In %ac,, ,he s&s,aine+ +esire $% each $% ,he *e,i,i$ners ,$ en,er in,$ an$,her
e3*#$)3en, c$n,rac, &*$n ,he ,er3ina,i$n $% ,he ear#ier $nes c#ear#) in+ica,es ,heir in,eres, in
c$n,in&ing ,$ w$r< %$r SMC.
Page -1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
M$re$ver, res*$n+en,s have n$, es,a'#ishe+ ,ha, ,he engage3en, $% *e,i,i$nersG services,
which is n$, in ,he na,&re $% a *r$Eec, e3*#$)3en,, reA&ire+ a +eJni,e +a,e $% ,er3ina,i$n as a
sine A&a n$n.
19. Soriano vs. NLRC, G.R. No. 1)..9*, A%ril 23, 2""7, ci(ing 2"". 6ili%ina 3re1
farica(e& 'l&g. S$s(e/ ;6ilis$s(e/=
9ac,sL
Pe,i,i$ner an+ cer,ain in+ivi+&a#s na3e#) Sergi$ BenEa3in =BenEa3in?, MaFi3in$ G$n4a#es
=G$n4a#es?, an+ N$e# A*$s,$# =A*$s,$#? were e3*#$)e+ ') ,he res*$n+en, as Swi,ch3an
He#*ers in i,s T$n+$ EFchange :Ice =TE:?. A%,er *ar,ici*a,ing in severa# ,rainings an+
se3inars, *e,i,i$ner, BenEa3in, an+ G$n4a#es were *r$3$,e+ as Swi,ch3en. A*$s,$#, $n ,he
$,her han+, was e#eva,e+ ,$ ,he *$si,i$n $% 9ra3e3an. :ne $% ,heir +&,ies as Swi,ch3en an+
9ra3e3an was ,he 3an&a# $*era,i$n an+ 3ain,enance $% ,he E#ec,r$nic Mechanica# 7evice
=EM7? $% ,he TE:.

In N$ve3'er 1992, res*$n+en, PL7T i3*#e3en,e+ a c$3*an)5wi+e
re+&n+anc) *r$gra3. S&'seA&en,#), ,he res*$n+en, PL7T gave se*ara,e #e,,ers +a,e+ 12 6&#)
199- ,$ *e,i,i$ner, BenEa3in, G$n4a#es, an+ A*$s,$# in%$r3ing ,he3 ,ha, ,heir res*ec,ive
*$si,i$ns were +ee3e+ re+&n+an, +&e ,$ ,he a'$ve5ci,e+ reas$ns an+ ,ha, ,heir services wi##
'e ,er3ina,e+ $n 1- A&g&s, 199-.
1(
The) reA&es,e+ ,he res*$n+en, PL7T %$r ,rans%er ,$ s$3e
vacan, *$si,i$ns '&, ,heir reA&es,s were +enie+ since a## *$si,i$ns were a#rea+) J##e+ &*.
Hence, $n 1- A&g&s, 199-, res*$n+en, PL7T +is3isse+ ,he %$&r %r$3 e3*#$)3en,.
R&#ingL
The La'$r Ar'i,er, ,he NLRC, an+ ,he C$&r, $% A**ea#s a## %$&n+ ,ha, s&'s,an,ia# evi+ence
s&**$r,s ,he a'sence $% i##ega# +is3issa# in ,he *resen, case. Ar,ic#e !1 $% ,he La'$r C$+e
*r$vi+es ,ha, an e3*#$)er 3a) +is3iss %r$3 w$r< an e3*#$)ee ') reas$n $% re+&n+anc). The
sa3e *r$visi$n a#s$ s,a,es ,he *r$ce+&ra# reA&ire3en,s %$r ,he va#i+i,) $% ,he +is3issa#. I, is
c#ear ,ha, ,he %$reg$ing +$c&3en,ar) evi+ence c$ns,i,&,e+ s&'s,an,ia# evi+ence ,$ s&**$r,
,he Jn+ings $% La'$r Ar'i,er L&s,ria an+ ,he NLRC ,ha, *e,i,i$nerGs e3*#$)3en, was
,er3ina,e+ ') res*$n+en, PL7T +&e ,$ a va#i+ $r #ega# re+&n+anc) *r$gra3 since s&'s,an,ia#
evi+ence 3ere#) re%ers ,$ ,ha, a3$&n, $% evi+ence which a reas$na'#e 3in+ 3igh, acce*, as
a+eA&a,e ,$ s&**$r, a c$nc#&si$n. The rec$r+s sh$w ,ha, res*$n+en, PL7T ha+ s&Icien,#)
es,a'#ishe+ ,he eFis,ence $% re+&n+anc) in ,he *$si,i$n $% Swi,ch3an. I, is evi+en, %r$3 ,he
%$reg$ing %ac,s ,ha, res*$n+en, PL7TGs &,i#i4a,i$n $% high ,echn$#$g) eA&i*3en, in i,s
$*era,i$n s&ch as c$3*&,ers an+ +igi,a# swi,ches necessari#) res&#,e+ in ,he re+&c,i$n $% ,he
+e3an+ %$r ,he services $% a Swi,ch3an since c$3*&,ers an+ +igi,a# swi,ches can a*,#)
*er%$r3 ,he %&nc,i$n $% severa# Swi,ch3en. In+&'i,a'#), ,he *$si,i$n $% Swi,ch3an has
'ec$3e re+&n+an,. As ,$ whe,her La4a3 was c$3*e,en, ,$ ,es,i%) $n ,he eKec,s $%
res*$n+en, PL7TGs a+$*,i$n $% new ,echn$#$g) vis5X5vis ,he *e,i,i$nerGs *$si,i$n $% Swi,ch3an,
,he rec$r+s sh$w ,ha, La4a3 was high#) A&a#iJe+ ,$ +$ s$. He is a #icense+ e#ec,rica# engineer
an+ has 'een e3*#$)e+ ') ,he res*$n+en, PL7T since 19"1. He was a Seni$r Manager %$r
Swi,ching 7ivisi$n in severa# $Ices $% ,he res*$n+en, PL7T, an+ ha+ a,,en+e+ 3&#,i*#e
,raining *r$gra3s $n E#ec,r$nic Swi,ching S)s,e3s in *r$gressive c$&n,ries. He was a#s$ a
,raining ins,r&c,$r $% Swi,ch3en in ,he res*$n+en,Gs $Ice.

The %ac, ,ha, res*$n+en, PL7T
hire+ c$n,rac,&a# e3*#$)ees a%,er i3*#e3en,ing i,s re+&n+anc) *r$gra3 +$es n$, necessari#)
nega,e ,he eFis,ence $% re+&n+anc). As a3*#) s,a,e+ ') ,he res*$n+en, PL7T, s&ch hiring was
in,en+e+ s$#e#) %$r win+ing &* $*era,i$ns &sing ,he $#+ s)s,e3. Since ,he res*$n+en, PL7T
+e,er3ine+ ,ha, *e,i,i$nerGs services are n$ #$nger necessar) ei,her as a Swi,ch3an $r in an)
$,her *$si,i$n, an+ s&ch +e,er3ina,i$n was 3a+e in g$$+ %ai,h an+ in %&r,herance $% i,s
Page -!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
'&siness in,eres,, ,he *e,i,i$nerGs c$n,en,i$n ,ha, he sh$&#+ 'e ,he #as, swi,ch3an ,$ 'e #ai+5
$K ') reas$n $% his A&a#iJca,i$ns an+ $&,s,an+ing w$r< 3&s, %ai#.
WHERE9:RE, ,he *e,i,i$n is 7ENIE7. S: :R7ERE7.
2". Caseres vs. <niversal Roina Sugar Milling Cor%., e( al., G.R. No. 1.93*3,
Se%(e/er 2-, 2""7
9ac,sL
>niversa# R$'ina S&gar Mi##ing C$r*$ra,i$n =res*$n+en,? is a c$r*$ra,i$n engage+ in ,he cane
s&gar 3i##ing '&siness. Pe+) Caseres =*e,i,i$ner Caseres? s,ar,e+ w$r<ing %$r res*$n+en, in
1919, whi#e An+i,$ Pae# =*e,i,i$ner Pae#? in 199. A, ,he s,ar, $% ,heir res*ec,ive e3*#$)3en,s,
,he) were 3a+e ,$ sign a C$n,rac, $% E3*#$)3en, %$r S*eciJc Pr$Eec, $r >n+er,a<ing.
Pe,i,i$nersS c$n,rac,s were renewe+ %r$3 ,i3e ,$ ,i3eO &n,i# Ma) 1999 when ,he) were
in%$r3e+ ,ha, ,heir c$n,rac,s wi## n$, 'e renewe+ an)3$re. Pe,i,i$ners J#e+ a c$3*#ain, %$r
i##ega# +is3issa#, reg&#ari4a,i$n, incen,ive #eave *a), 1,h 3$n,h *a), +a3ages an+ a,,$rne)Gs
%ees.
Iss&eL
Whe,her $r n$, ,he *e,i,i$ners are seas$na#B*r$Eec,B,er3 e3*#$)ees an+ n$, reg&#ar
e3*#$)ees $% res*$n+en,s
R&#ingL
Ar,ic#e !1( $% ,he La'$r C$+e *r$vi+esL
ART. !1(. Reg&#ar an+ Cas&a# E3*#$)ees. R The *r$visi$n $% wri,,en agree3en, ,$ ,he c$n,rar)
n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# agree3en, $% ,he *ar,ies, an e3*#$)3en, sha## 'e
+ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies which are
&s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er, eFce*, where
,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he c$3*#e,i$n $r
,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he e3*#$)ee $r
where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he e3*#$)3en, is %$r
,he +&ra,i$n $% ,he seas$n.
An e3*#$)3en, sha## 'e +ee3e+ ,$ 'e cas&a# i% i, is n$, c$vere+ ') ,he *rece+ing *aragra*hL
Pr$vi+e+, Tha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $% service, whe,her s&ch
service is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he
ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch ac,&a##) eFis,s.
The %$reg$ing *r$visi$n *r$vi+es %$r ,hree <in+s $% e3*#$)eesL =a? reg&#ar e3*#$)ees $r ,h$se
wh$ have 'een Mengage+ ,$ *er%$r3 ac,ivi,ies which are &s&a##) necessar) $r +esira'#e in ,he
&s&a# '&siness $r ,ra+e $% ,he e3*#$)erNO ='? *r$Eec, e3*#$)ees $r ,h$se Mwh$se e3*#$)3en,
has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing, ,he c$3*#e,i$n $r ,er3ina,i$n $% which
has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r
services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he
seas$nNO an+ =c? cas&a# e3*#$)ees $r ,h$se wh$ are nei,her reg&#ar n$r *r$Eec, e3*#$)ees.
The *rinci*a# ,es, %$r +e,er3ining whe,her an e3*#$)ee is a *r$Eec, e3*#$)ee $r a reg&#ar
e3*#$)ee is whe,her ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing, ,he
c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he
Page -
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e3*#$)ee. A *r$Eec, e3*#$)ee is $ne wh$se e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec,
$r &n+er,a<ing, ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r service ,$ 'e *er%$r3e+ is seas$na# in
na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n. A ,r&e *r$Eec, e3*#$)ee sh$&#+
'e assigne+ ,$ a *r$Eec, which 'egins an+ en+s a, +e,er3ine+ $r +e,er3ina'#e ,i3es, an+ 'e
in%$r3e+ ,here$% a, ,he ,i3e $% hiring. Pe,i,i$ners c$n,en+ ,ha, res*$n+en,Ss re*ea,e+ hiring $%
,heir services A&a#iJes ,he3 ,$ ,he s,a,&s $% reg&#ar e3*#$)ees.
:n ,his sc$re, ,he LA r&#e+L
This is %&r,her '&,,resse+ ') ,he %ac, ,ha, ,he re#a,i$nshi* 'e,ween c$3*#ainan,s an+ ,he
res*$n+en, >RS>MC:, w$&#+ c#ear#) revea# ,ha, ,he ver) na,&re $% ,he ,er3s an+ c$n+i,i$ns $%
,heir hiring w$&#+ sh$w ,ha, c$3*#ainan,s were reA&ire+ ,$ *er%$r3 *hases $% s*ecia# *r$Eec,s
which are n$, re#a,e+ ,$ ,he 3ain $*era,i$n $% ,he res*$n+en, %$r a +eJni,e *eri$+, a%,er which
,heir services are avai#a'#e ,$ an) %ar3 $wner.
The NLRC, agreeing wi,h ,he LA, %&r,her r&#e+ ,ha,L
In ,he case a, 'ar, We n$,e ,ha, c$3*#ainan,s never '$,here+ ,$ +en) ,ha, ,he) v$#&n,ari#),
<n$wing#) an+ wi##%&##) eFec&,e+ ,he c$n,rac,s $% e3*#$)3en,. Nei,her was ,here an) sh$wing
,ha, res*$n+en,s eFercise+ 3$ra# +$3inance $n ,he c$3*#ainan,s, F F F i, is c#ear ,ha, ,he
c$n,rac,s $% e3*#$)3en, are va#i+ an+ 'in+ing $n ,he c$3*#ainan,s.
The eFec&,i$n $% ,hese c$n,rac,s in ,he case a, 'ar is necessi,a,e+ ') ,he *ec&#iar na,&re $%
,he w$r< in ,he s&gar in+&s,r) which has an $K 3i##ing seas$n. The ver) na,&re $% ,he ,er3s
an+ c$n+i,i$ns $% c$3*#ainan,sS hiring revea#s ,ha, ,he) were reA&ire+ ,$ *er%$r3 *hases $%
s*ecia# *r$Eec,s %$r a +eJni,e *eri$+ a%,er, ,heir services are avai#a'#e ,$ $,her %ar3 $wners.
This is s$ 'eca&se ,he *#an,ing $% s&gar +$es n$, en,ai# a wh$#e )ear $*era,i$n, an+ &,i#i,)
w$r<s are c$3*ara,ive#) s3a## +&ring ,he $K53i##ing seas$n.
9ina##), ,he CA n$,e+L
Pe,i,i$ner Pe+) Caseres Jrs, a**#ie+ wi,h *riva,e res*$n+en, >RS>MC: $n 6an&ar) 9, 1919 as
a w$r<er assis,ing ,he crane $*era,$r a, ,he ,rans#$a+ing s,a,i$n. >*$n a**#ica,i$n, Caseres
was in,erviewe+ an+ 3a+e ,$ &n+ers,an+ ,ha, his e3*#$)3en, w$&#+ 'e c$5,er3in&s wi,h ,he
*hase $% w$r< ,$ which he w$&#+ 'e ,hen assigne+, ,ha, is &n,i# 9e'r&ar) 2, 1919 an+
,herea%,er he w$&#+ 'e %ree ,$ see< e3*#$)3en, e#sewhere. Caseres agree+ an+ signe+ ,he
c$n,rac, $% e3*#$)3en, %$r s*eciJc *r$Eec, $r &n+er,a<ing. A%,er an a'sence $% 3$re ,han Jve
=2? 3$n,hs, Caseres re5a**#ie+ wi,h res*$n+en, as a seas$na# *r$Eec, w$r<er assis,ing in ,he
genera# &n+erchassis rec$n+i,i$ning ,$ ,rans*$r, &ni,s $n 6&#) 1", 1919. Li<e his Jrs,
assign3en,, Caseres was 3a+e ,$ &n+ers,an+ ,ha, his services w$&#+ 'e c$5,er3in&s wi,h ,he
w$r< ,$ which he w$&#+ 'e ,hen assigne+ ,ha, is %r$3 6&#) 1", 1919 ,$ 6&#) !(, 1919 an+ ,ha,
,herea%,er he is %ree ,$ see< e3*#$)3en, e#sewhere ,$ which Caseres agree+ an+ rea+i#)
signe+ ,he c$n,rac, $% e3*#$)3en, %$r s*eciJc *r$Eec, $r &n+er,a<ing iss&e+ ,$ hi3.
Therea%,er Caseres v$#&n,ari#) signe+ severa# $,her e3*#$)3en, c$n,rac,s %$r vari$&s
&n+er,a<ings wi,h a +e,er3ina'#e *eri$+. As in ,he Jrs, c$n,rac,, CaseresS services were c$5
,er3in&s wi,h ,he w$r< ,$ which he was assigne+, an+ ,ha, ,herea%,er, he was %ree ,$ see<
e3*#$)3en, wi,h $,her s&gar 3i##ers $r e#sewhere. The na,&re an+ ,er3s an+ c$n+i,i$ns $%
e3*#$)3en, $% *e,i,i$ner An+i,$ Pae# were ,he sa3e as ,ha, $% his c$5*e,i,i$ner Caseres. I,
3&s, 'e n$,e+ ,ha, ,here were in,erva#s in *e,i,i$nersS res*ec,ive e3*#$)3en, c$n,rac,s, an+
,ha, ,heir w$r< +e*en+e+ $n ,he avai#a'i#i,) $% s&ch c$n,rac,s $r *r$Eec,s. C$nseA&en,#), ,he
e3*#$)3en, $% >RS>MC:Ss w$r< %$rce was n$, *er3anen, '&, c$5,er3in$&s wi,h ,he *r$Eec,s
,$ which ,he e3*#$)ees were assigne+ an+ %r$3 wh$se *a)r$##s ,he) were *ai+ =Pa#$3ares vs.
NLRC, !"" SCRA .9?.
Page -.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Pe,i,i$nersS re*ea,e+ an+ s&ccessive re5e3*#$)3en, $n ,he 'asis $% a c$n,rac, $% e3*#$)3en,
%$r 3$re ,han $ne )ear cann$, an+ +$es n$, 3a<e ,he3 reg&#ar e3*#$)ees. Leng,h $% service
is n$, ,he c$n,r$##ing +e,er3inan, $% ,he e3*#$)3en, ,en&re $% a *r$Eec, e3*#$)ee =Ra+a vs.
NLRC, !(2 SCRA -9?. I, sh$&#+ 'e s,resse+ ,ha, c$n,rac,s %$r *r$Eec, e3*#$)3en, are va#i+
&n+er ,he #aw. In 8i##a v. Na,i$na# La'$r Re#a,i$ns C$33issi$n,/1-0 ,he C$&r, s,a,e+ ,ha,L ')
en,ering in,$ s&ch c$n,rac,, an e3*#$)ee is +ee3e+ ,$ &n+ers,an+ ,ha, his e3*#$)3en, is
c$,er3in$&s wi,h ,he *r$Eec,. He 3a) n$, eF*ec, ,$ 'e e3*#$)e+ c$n,in&$&s#) 'e)$n+ ,he
c$3*#e,i$n $% ,he *r$Eec,. I, is $% E&+icia# n$,ice ,ha, *r$Eec, e3*#$)ees engage+ %$r 3an&a#
services $r ,h$se %$r s*ecia# s<i##s #i<e ,h$se $% car*en,ers $r 3as$ns, are, as a r&#e,
&nsch$$#e+. H$wever, ,his %ac, a#$ne is n$, a va#i+ reas$n %$r 'es,$wing s*ecia# ,rea,3en, $n
,he3 $r %$r inva#i+a,ing a c$n,rac, $% e3*#$)3en,. Pr$Eec, e3*#$)3en, c$n,rac,s are n$,
#$*si+e+ agree3en,s in %av$r $% $n#) $ne *ar,) ,here,$. The e3*#$)erGs in,eres, is eA&a##)
i3*$r,an, as ,ha, $% ,he e3*#$)eeGs %$r ,heirs is ,he in,eres, ,ha, *r$*e#s ec$n$3ic ac,ivi,).
Whi#e i, 3a) 'e ,r&e ,ha, i, is ,he e3*#$)er wh$ +ra%,s *r$Eec, e3*#$)3en, c$n,rac,s wi,h i,s
'&siness in,eres, as $verri+ing c$nsi+era,i$n, s&ch c$n,rac,s +$ n$,, $% necessi,), *reE&+ice
,he e3*#$)ee. Nei,her is ,he e3*#$)ee #e%, he#*#ess ') a *reE&+icia# e3*#$)3en, c$n,rac,.
A%,er a##, &n+er ,he #aw, ,he in,eres, $% ,he w$r<er is *ara3$&n,.
The %ac, ,ha, *e,i,i$ners were c$ns,an,#) re5hire+ +$es n$, i*s$ %ac,$ es,a'#ish ,ha, ,he)
'eca3e reg&#ar e3*#$)ees. Their res*ec,ive c$n,rac,s wi,h res*$n+en, sh$w ,ha, ,here were
in,erva#s in ,heir e3*#$)3en,. In *e,i,i$ner CaseresSs case, whi#e his e3*#$)3en, #as,e+ %r$3
A&g&s, 1919 ,$ Ma) 1999, ,he +&ra,i$n $% his e3*#$)3en, range+ %r$3 $ne +a) ,$ severa#
3$n,hs a, a ,i3e, an+ s&ch s&ccessive e3*#$)3en,s were n$, c$n,in&$&s. Wi,h regar+ ,$
*e,i,i$ner Pae#, his e3*#$)3en, never #as,e+ %$r 3$re ,han a 3$n,h a, a ,i3e. These s&**$r,
,he c$nc#&si$n ,ha, ,he) were in+ee+ *r$Eec, e3*#$)ees, an+ since ,heir w$r< +e*en+e+ $n
,he avai#a'i#i,) $% s&ch c$n,rac,s $r *r$Eec,s, necessari#) ,he e3*#$)3en, $% res*$n+en,Gs w$r<
%$rce was n$, *er3anen, '&, c$5,er3in$&s wi,h ,he *r$Eec,s ,$ which ,he) were assigne+ an+
%r$3 wh$se *a)r$##s ,he) were *ai+. As r&#e+ in Pa#$3ares v. Na,i$na# La'$r Re#a,i$ns
C$33issi$n, i, w$&#+ 'e eF,re3e#) '&r+ens$3e %$r ,heir e3*#$)er ,$ re,ain ,he3 as
*er3anen, e3*#$)ees an+ *a) ,he3 wages even i% ,here were n$ *r$Eec,s ,$ w$r< $n.
M$re$ver, even i% *e,i,i$ners were re*ea,e+#) an+ s&ccessive#) re5hire+, s,i## i, +i+ n$, A&a#i%)
,he3 as reg&#ar e3*#$)ees, as #eng,h $% service is n$, ,he c$n,r$##ing +e,er3inan, $% ,he
e3*#$)3en, ,en&re $% a *r$Eec, e3*#$)ee, '&, whe,her ,he e3*#$)3en, has 'een JFe+ %$r a
s*eciJc *r$Eec, $r &n+er,a<ing, i,s c$3*#e,i$n has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee. 9&r,her, ,he *r$vis$ in Ar,ic#e !1(, s,a,ing ,ha, an e3*#$)ee
wh$ has ren+ere+ service %$r a, #eas, $ne =1? )ear sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee,
*er,ains ,$ cas&a# e3*#$)ees an+ n$, ,$ *r$Eec, e3*#$)ees. Acc$r+ing#), *e,i,i$ners cann$,
c$3*#ain $% i##ega# +is3issa# inas3&ch as ,he c$3*#e,i$n $% ,he c$n,rac, $r *hase ,here$% %$r
which ,he) have 'een engage+ a&,$3a,ica##) ,er3ina,es ,heir e3*#$)3en,.
21. 3ier - Arras(re 8 S(eve&oring Services, !nc. vs 'oclo(, G.R. No. 173-*9,
Se%(e/er 2-, 2""7
9ac,sL
Pe,i,i$ner Pier 1 Arras,re an+ S,eve+$ring Services, Inc. =PASSI? is a +$3es,ic c$r*$ra,i$n
engage+ in ,he '&siness $% *r$vi+ing arras,re an+ s,eve+$ring services/20 a, Pier 1 in ,he
Mani#a N$r,h Har'$r. PASSI has 'een ren+ering arras,re an+ s,eve+$ring services a, ,he *$r,
area since 19". an+ e3*#$)s s,eve+$res wh$ assis, in ,he #$a+ing an+ &n#$a+ing $% carg$es ,$
an+ %r$3 ,he vesse#s. Pe,i,i$ner E#i$+$r$ C. Cr&4 is i,s 8ice5Presi+en, an+ Genera# Manager.
Page -2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Res*$n+en, 6eK B. B$c#$, was hire+ ') PASSI ,$ *er%$r3 ,he %&nc,i$ns $% a s,eve+$re s,ar,ing
!( Se*,e3'er 1999. The %ac,s sh$w ,ha, res*$n+en, ren+ere+ ac,&a# services ,$ PASSI +&ring
,he %$##$wing *eri$+sL
Peri$+7&ra,i$n
Se*,e3'er 5 7ece3'er 1999 =. 3$n,hs? !1 +a)s
6an&ar) 5 A*ri# !((( =. 3$n,hs? !( +a)s
March 5 7ece3'er !((1 =1( 3$n,hs? 12 +a)s
6an&ar) 5 7ece3'er !((! =1! 3$n,hs? "(.2 +a)s
6an&ar) 5 6&ne !(( =- 3$n,hs? ! +a)s
T$,a# - 3$n,hs !!1.2 +a)s
:n 12 A*ri# !(((, ,he Phi#i**ine P$r,s A&,h$ri,) =PPA? sei4e+ ,he %aci#i,ies an+ ,$$< $ver ,he
$*era,i$ns $% PASSI ,hr$&gh i,s S*ecia# Ta<e$ver >ni,, a's$r'ing PASSI w$r<ers as we## as ,heir
re#ievers. B) vir,&e $% a 7ecisi$n +a,e+ 9 6an&ar) !((1 $% ,he C$&r, $% A**ea#s, *e,i,i$ners
were a'#e ,$ regain c$n,r$# $% ,heir arras,re an+ s,eve+$ring $*era,i$ns a, Pier 1 $n 1! March
!((1. :n 9 Ma) !((, res*$n+en, J#e+ a C$3*#ain, wi,h ,he La'$r Ar'i,er $% ,he NLRC,
c#ai3ing reg&#ari4a,i$nO *a)3en, $% service incen,ive #eave an+ 1,h 3$n,h *a)sO 3$ra#,
eFe3*#ar) an+ ac,&a# +a3agesO an+ a,,$rne)Z[\s %ees. Res*$n+en, a##ege+ ,ha, he was
hire+ ') PASSI in :c,$'er 1999 an+ was iss&e+ c$3*an) I7 N$. (., a PPA Pass an+ SSS
+$c&3en,s. In %ac,, res*$n+en, c$n,en+e+ ,ha, he 'eca3e a reg&#ar e3*#$)ee ') A*ri# !(((,
since i, was his siF,h c$n,in&$&s 3$n,h in service in PASSIZ[\s reg&#ar c$&rse $% '&siness.
He arg&e+ $n ,he 'asis $% Ar,ic#es !1(/90 an+ !11 $% ,he La'$r C$+e. He 3ain,ains ,ha, &n+er
*aragra*h ! $% Ar,ic#e !1(, he sh$&#+ 'e +ee3e+ a reg&#ar e3*#$)ee having ren+ere+ a, #eas,
$ne )ear $% service wi,h ,he c$3*an). Acc$r+ing ,$ res*$n+en,, he re3aine+ a cas&a#
e3*#$)ee %r$3 ,he ,i3e he was Jrs, hire+ ,$ *er%$r3 ,he services $% a s,eve+$re. Th&s,
res*$n+en, c#ai3e+ he was +enie+ ,he righ,s an+ *rivi#eges $% a reg&#ar e3*#$)ee, inc#&+ing
,h$se gran,e+ &n+er ,he C$##ec,ive Bargaining Agree3en, =CBA? s&ch as wage increaseO
3e+ica#, +en,a# an+ h$s*i,a#i4a,i$n 'eneJ,sO vaca,i$n an+ sic< #eavesO &ni%$r3s, Chris,3as
gi%,s, *r$+&c,ivi,) '$n&s, acci+en, ins&rance, s*ecia# se*ara,i$n *a)s, an+ $,hers.
In ,he ins,an, *e,i,i$n, *e,i,i$ners are vehe3en,#) +en)ing ,ha, res*$n+en, has 'ec$3e PASSI
reg&#ar e3*#$)ee. Pe,i,i$ners insis, ,ha, res*$n+en, was hire+ as a 3ere s,eve+$re an+, ,h&s,
c$&#+ n$, 'ec$3e a reg&#ar s,eve+$re. Pe,i,i$ners *resen,e+ a #is, $% ,he +a)s when
res*$n+en,Z[\s services as s,eve+$re were engage+, ,$ s&**$r, i,s c#ai3 ,ha, res*$n+en, is
a re#iever. Pe,i,i$ners aver ,ha, ,he e3*#$)3en, $% ,he s,eve+$res is g$verne+ ') a s)s,e3 $%
r$,a,i$n. Base+ $n ,his s)s,e3 $% r$,a,i$n, ,he w$r< avai#a'#e ,$ re#iever s,eve+$res is
+e*en+en, $n ,he ac,&a# s,eve+$ring an+ arras,re reA&ire3en,s a, a c&rren, given ,i3e.
Pe,i,i$ners *$si, ,ha, res*$n+en,, as a re#iever s,eve+$re, is a 3ere eF,ra w$r<er wh$se w$r<
is +e*en+en, $n ,he a'sence $% reg&#ar s,eve+$res +&ring an) given shi%,. 7&ring r$,a,i$n
*r$*er as *e,i,i$ners ,er3 i,, a## reg&#ar e3*#$)ees are Jrs, ca##e+ an+ given w$r< 'e%$re an)
re#iever is assigne+. Pe,i,i$ners asser, ,ha, whi#e ,he reg&#ar s,eve+$res w$r< an average $% .
+a)s a wee< =$r 1- +a)s a 3$n,h?, res*$n+en, *er%$r3e+ services %$r a ,$,a# $% !!1.2 +a)s =$r
$n#) %$r an average $% -.. +a)s a 3$n,h? %r$3 Se*,e3'er 1999 ,$ 6&ne !((. In +e%ense $%
,he C$&r, $% A**ea#s r&#ing gr$&n+e+ $n Ar,ic#es !1( an+ !11 $% ,he La'$r C$+e, *e,i,i$ners
3ain,ain ,ha, ,he %$reg$ing *r$visi$ns are ina**#ica'#e $n ,he *$s,&#a,i$n ,ha, res*$n+en, is
nei,her a *r$'a,i$nar) n$r a cas&a# e3*#$)ee. 9$r ,he sa3e reas$ns, *e,i,i$ners arg&e ,ha,
Ar,ic#e CC8 $% ,he CBA cann$, 'e &se+ ,$ s&**$r, res*$n+en,sG c$n,en,i$n ,ha, he is a reg&#ar
e3*#$)ee since ,he CBA *r$visi$n he inv$<es re%ers ,$ a## inc&3'en, *r$'a,i$nar) $r cas&a#
e3*#$)ees an+ w$r<ers in ,he c$3*an) an+ n$, ,$ res*$n+en, wh$ is nei,her a cas&a# n$r a
*r$'a,i$nar) e3*#$)ee.
R&#ingL
Page --
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
7e Le$n v. Na,i$na# La'$r Re#a,i$ns C$33issi$n s&ccinc,#) eF*#ains ,he +e#inea,i$n $% ,he
%$reg$ing e3*#$)ee c#assiJca,i$n, ,$ wi,L
The *ri3ar) s,an+ar+, ,here%$re, $% +e,er3ining a reg&#ar e3*#$)3en, is ,he reas$na'#e
c$nnec,i$n 'e,ween ,he *ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)er. The ,es, is whe,her ,he %$r3er is &s&a##) necessar) $r
+esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er. The c$nnec,i$n can 'e +e,er3ine+
') c$nsi+ering ,he na,&re $% ,he w$r< *er%$r3e+ an+ i,s re#a,i$n ,$ ,he sche3e $% ,he
*ar,ic&#ar '&siness $r ,ra+e in i,s en,ire,). A#s$, i% ,he e3*#$)ee has 'een *er%$r3ing ,he E$'
%$r a, #eas, $ne )ear, even i% ,he *er%$r3ance is n$, c$n,in&$&s $r 3ere#) in,er3i,,en,, ,he #aw
+ee3s ,he re*ea,e+ an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as s&Icien, evi+ence $% ,he
necessi,) i% n$, in+is*ensa'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness. Hence, ,he e3*#$)3en, is
a#s$ c$nsi+ere+ reg&#ar, '&, $n#) wi,h res*ec, ,$ s&ch ac,ivi,) an+ whi#e s&ch ac,ivi,) eFis,s.
=E3*hasis s&**#ie+.? PASSI is engage+ in *r$vi+ing s,eve+$ring an+ arras,re services in ,he
*$r, area in Mani#a. S,eve+$ring, +$c< an+ arras,re $*era,i$ns inc#&+e, '&, are n$, #i3i,e+ ,$,
,he $*ening an+ c#$sing $% a vesse#Z[\s ha,chesO +ischarging $% carg$es %r$3 shi* ,$ ,r&c< $r
+$c<, #igh,ers an+ 'arges, an+ vice5versaO 3$ve3en, $% carg$es insi+e vesse#s, wareh$&ses,
,er3ina#s an+ +$c<sO an+ $,her re#a,e+ w$r<. In #ine wi,h ,his, *e,i,i$ners hire s,eve+$res wh$
assis, in ,he #$a+ing an+ &n#$a+ing $% carg$es ,$ an+ %r$3 ,he vesse#s. Pe,i,i$ners c$nce+e
,ha, whenever res*$n+en, w$r<e+ as a re#iever s,eve+$re +&e ,$ ,he a'sence $% a reg&#ar
s,eve+$re, he *er%$r3e+ ,as<s ,ha, are &s&a##) necessar) an+ +esira'#e ,$ ,heir '&siness.
Pe,i,i$ners, h$wever, c$n,en+ ,ha, ,his in i,se#% +$es n$, 3a<e hi3 a reg&#ar s,eve+$re,
*$s,&#a,ing ,ha, ,he hiring $% res*$n+en, as a re#iever is a<in ,$ a si,&a,i$n in which a w$r<er
g$es $n vaca,i$n #eave, sic< #eave, 3a,erni,) #eave $r *a,erni,) #eaveO an+ ,he e3*#$)er is
c$ns,raine+ ,$ hire an$,her w$r<er %r$3 $&,si+e ,he es,a'#ish3en, ,$ ens&re ,he s3$$,h T$w
$% i,s $*era,i$ns.
Base+ $n ,he circ&3s,ances $% ,he ins,an, case, ,his C$&r, agrees. I, ,a<es E&+icia# n$,ice ,ha,
i, is an in+&s,r) *rac,ice in *$r, services ,$ hire re#iever s,eve+$res in $r+er ,$ ens&re s3$$,h5
T$wing !.5h$&r s,eve+$ring an+ arras,re $*era,i$ns in ,he *$r, area. N$ +$&',, serving as a
s,eve+$re, res*$n+en, *er%$r3s ,as<s necessar) $r +esira'#e ,$ ,he &s&a# '&siness $%
*e,i,i$ners. H$wever, i, sh$&#+ 'e +ee3e+ *ar, $% ,he na,&re $% his w$r< ,ha, he can $n#)
w$r< as a s,eve+$re in ,he a'sence $% ,he e3*#$)ee reg&#ar#) e3*#$)e+ %$r ,he ver) sa3e
%&nc,i$n. Bearing in 3in+ ,ha, res*$n+en, *er%$r3e+ services %r$3 Se*,e3'er 1999 &n,i# 6&ne
!(( %$r a *eri$+ $% $n#) !!1.2 +a)s in - 3$n,hs, $r r$&gh#) an average $% -.. +a)s a
3$n,hO whi#e a reg&#ar s,eve+$re w$r<ing %$r *e,i,i$ners, $n ,he $,her han+, ren+ers service
%$r an average $% 1- +a)s a 3$n,h, +e3$ns,ra,es ,ha, res*$n+en,s e3*#$)3en, is s&'Eec, ,$
,he avai#a'i#i,) $% w$r<, +e*en+ing $n ,he a'sences $% ,he reg&#ar s,eve+$res. M$re$ver,
res*$n+en, +$es n$, c$n,es, ,ha, he was we## aware ,ha, he w$&#+ $n#) 'e given w$r< when
,here are a'sen, $r &navai#a'#e e3*#$)ees. Res*$n+en, a#s$ +$es n$, a##ege, n$r is ,here an)
sh$wing, ,ha, he was +isa##$we+ $r *reven,e+ %r$3 $Kering his services ,$ $,her carg$
han+#ers in ,he $,her *iers a, ,he N$r,h Har'$r $,her ,han *e,i,i$ners. As a%$res,a,e+, ,he
si,&a,i$n $% res*$n+en, is a<in ,$ ,ha, $% a seas$na# $r *r$Eec, $r ,er3 e3*#$)ee, a#'ei, $n a
+ai#) 'asis.
Anen, *e,i,i$nersG c$n,en,i$n ,ha, res*$n+en, is nei,her a *r$'a,i$nar) n$r a cas&a# e3*#$)ee,
,his C$&r, again re%ers ,$ Ar,ic#e !1( $% ,he La'$r C$+e. The sec$n+ *aragra*h ,here$%
s,i*&#a,es in &neA&iv$ca# ,er3s ,ha, a## $,her e3*#$)ees wh$ +$ n$, %a## &n+er ,he +eJni,i$ns
in ,he Jrs, *aragra*h $% reg&#ar, *r$Eec, an+ seas$na# e3*#$)ees, are +ee3e+ cas&a#
e3*#$)ees./!20 N$, A&a#i%)ing &n+er an) $% ,he <in+s $% e3*#$)ees c$vere+ ') ,he Jrs,
*aragra*h $% Ar,ic#e !1( $% ,he La'$r C$+e, ,hen res*$n+en, is a cas&a# e3*#$)ee &n+er ,he
sec$n+ *aragra*h $% ,he sa3e *r$visi$n. The sa3e *r$visi$n, h$wever, *r$vi+es ,ha, a cas&a#
e3*#$)ee can 'e c$nsi+ere+ as reg&#ar e3*#$)ee i% sai+ cas&a# e3*#$)ee has ren+ere+ a,
Page -"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
#eas, $ne )ear $% service regar+#ess $% ,he %ac, ,ha, s&ch service 3a) 'e c$n,in&$&s $r 'r$<en.
Sec,i$n , R&#e 8, B$$< II $% ,he I3*#e3en,ing R&#es an+ Reg&#a,i$ns $% ,he La'$r C$+e c#ear#)
+eJnes ,he ,er3 a, #eas, $ne )ear $% service ,$ 3ean service wi,hin 1! 3$n,hs, whe,her
c$n,in&$&s $r 'r$<en, rec<$ne+ %r$3 ,he +a,e ,he e3*#$)ee s,ar,e+ w$r<ing, inc#&+ing
a&,h$ri4e+ a'sences an+ *ai+ reg&#ar h$#i+a)s, &n#ess ,he w$r<ing +a)s in ,he es,a'#ish3en,
as a 3a,,er $% *rac,ice $r *$#ic), $r ,ha, *r$vi+e+ in ,he e3*#$)3en, c$n,rac,, is #ess ,han 1!
3$n,hs, in which case sai+ *eri$+ sha## 'e c$nsi+ere+ $ne )ear. I% ,he e3*#$)ee has 'een
*er%$r3ing ,he E$' %$r a, #eas, $ne )ear, even i% ,he *er%$r3ance is n$, c$n,in&$&s $r 3ere#)
in,er3i,,en,, ,he #aw +ee3s ,he re*ea,e+ an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as s&Icien,
evi+ence $% ,he necessi,), i% n$, in+is*ensa'i#i,), $% ,ha, ac,ivi,) ,$ ,he '&siness $% ,he
e3*#$)er. A**#)ing ,he %$reg$ing, res*$n+en,, wh$ has *er%$r3e+ ac,&a# s,eve+$ring services
%$r *e,i,i$ners $n#) %$r an acc&3&#a,e+ *eri$+ $% !!1.2 +a)s +$es n$, %a## &n+er ,he
c#assiJca,i$n $% a cas&a# ,&rne+ reg&#ar e3*#$)ee a%,er ren+ering a, #eas, $ne )ear $% service,
whe,her c$n,in&$&s $r in,er3i,,en,.
N:NETHELESS, ,his C$&r, s,i## Jn+s res*$n+en, ,$ 'e a reg&#ar e3*#$)ee $n ,he 'asis $%
*er,inen, *r$visi$ns &n+er ,he CBA 'e,ween PASSI an+ i,s W$r<ers &ni$n, which was eKec,ive
%r$3 . March 1991 ,$ March !((L
The C$3*an) agrees ,$ c$nver, ,$ reg&#ar s,a,&s a## inc&3'en, *r$'a,i$nar) $r cas&a#
e3*#$)ees an+ w$r<ers in ,he C$3*an) wh$ have serve+ ,he C$3*an) %$r an acc&3&#a,e+
service ,er3 $% e3*#$)3en, $% n$, #ess ,han siF =-? 3$n,hs %r$3 his $rigina# +a,e $% hiring.
The *r$'a,i$nar) *eri$+ %$r a## %&,&re w$r<ers $r e3*#$)ees sha## 'e ,he %$##$wingL
=a? A## s<i##e+ w$r<ers s&ch as crane $*era,$r, 3echanic, car*en,er, winch3an, signa#3an an+
chec<ers sha## 'ec$3e reg&#ar a%,er ,hree =? 3$n,hs c$n,in&$&s e3*#$)3en,O
='? A## se3i5s<i##e+ *ers$nne# sha## 'ec$3e reg&#ar a%,er %$&r =.? 3$n,hs $% c$n,in&$&s
e3*#$)3en,O
=c? A## n$n5s<i##e+ *ers$nne# sha## 'e reg&#ar a%,er siF =-? 3$n,hs c$n,in&$&s e3*#$)3en,.
Pe,i,i$ners were cr&ciJe+ $n ,his arg&3en, raise+ ') res*$n+en,. The &ni$n which neg$,ia,e+
,he eFis,ing CBA is ,he s$#e an+ eFc#&sive 'argaining re*resen,a,ive $% a## ,he s,eve+$res, +$c<
w$r<ers, gang '$sses, ran< an+ J#e e3*#$)ees w$r<ing a, Pier 1, an+ i,s $Ices. The NLRC
r&#e+ ,ha, res*$n+en,sG re#iance $n ,he CBA ,$ sh$w ,ha, he has 'ec$3e a reg&#ar e3*#$)ee is
3is*#ace+ %$r ,he reas$n ,ha, ,he CBA a**#ies $n#) ,$ reg&#ar w$r<ers $% ,he c$3*an).
Res*$n+en, assen,s ,ha, he is n$, a 3e3'er $% ,he &ni$n, as he was n$, rec$gni4e+ ') PASSI
as i,s reg&#ar e3*#$)ee, '&, ,his C$&r, n$,es ,ha, PASSI a+$*,s a &ni$n5sh$* agree3en,,
c&##ing %r$3 Ar,ic#e II $% ,he CBA which s,i*&#a,esL
The >ni$n an+ ,he C$3*an) =PASSI? here') agree ,$ a+$*, ,he >ni$n Sh$* as a c$n+i,i$n $%
e3*#$)3en, ,$ ,he *$si,i$n =sic? c$vere+ ') ,his Agree3en,. >n+er a &ni$n5sh$* agree3en,,
a#,h$&gh n$n3e3'ers 3a) 'e hire+, an e3*#$)ee is reA&ire+ ,$ 'ec$3e a &ni$n 3e3'er
a%,er a cer,ain *eri$+, in $r+er ,$ re,ain e3*#$)3en,. This reA&ire3en, a**#ies ,$ *resen, an+
%&,&re e3*#$)ees./-0 The sa3e ar,ic#e $% ,he CBA s,i*&#a,es ,ha, e3*#$)3en, in PASSI
cann$, 'e $',aine+ wi,h$&, *ri$r 3e3'ershi* in ,he &ni$n. A*r$*$s, a**#)ing ,he %$reg$ing
*r$visi$ns $% ,he CBA, res*$n+en, sh$&#+ 'e c$nsi+ere+ a reg&#ar e3*#$)ee a%,er siF 3$n,hs
$% acc&3&#a,e+ service. I, is c#ear#) s,i*&#a,e+ ,herein ,ha, *e,i,i$ners sha## agree ,$ c$nver,
,$ reg&#ar s,a,&s a## inc&3'en, *r$'a,i$nar) $r cas&a# e3*#$)ees an+ w$r<ers in PASSI wh$
have serve+ PASSI %$r an acc&3&#a,e+ service ,er3 $% e3*#$)3en, $% n$, #ess ,han siF 3$n,hs
%r$3 ,he $rigina# +a,e $% hiring. Having ren+ere+ !!1.2 +a)s, $r eigh, 3$n,hs $% service ,$
*e,i,i$ners since 1999, ,hen res*$n+en, is en,i,#e+ ,$ reg&#ari4a,i$n ') vir,&e $% ,he sai+ CBA
*r$visi$ns.
Page -1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In #igh, $% ,he %$reg$ing, *e,i,i$ners 3&s, acc$r+ res*$n+en, ,he s,a,&s $% a reg&#ar e3*#$)ee.
22. 3ac?uing vs. Coca1Cola 'o((lers 3hils., !nc., G.R. No. 1.79)), 2anuar$ 31, 2""-,
ci(ing Magsalin vs. Na(ional 7rgani0a(ion of >or:ing/en, G.R. No. 1*-*92,
Ma$ 9, 2""3
9ac,sL
E++ie PacA&ing, R$+eric< Cen,en$, 6&ani,$ M. G&erra, C#ar$ 7&*i#a+, 6r., L$&ie Cen,en$, 7avi+
Re'#$ra, Ra)3&n+$ An+ra+e =*e,i,i$ners? were sa#es r$&,e he#*ers $r argadores-pa$inantes
$% C$ca5C$#a B$,,#ers Phi#i**ines, Inc., =res*$n+en,?, wi,h ,he #eng,h $% e3*#$)3en, as %$##$wsL
Na3e 7a,e Hire+ 7a,e 7is3isse+

E++ie P. PacA&ing 6&ne 1., 191" 6an&ar) (, 1911
R$+eric< Cen,en$ N$ve3'er 12, 1912 6an&ar) 12, 1992
6&ani,$ M. G&erra 6&ne 1-, 191( 9e'r&ar) !(, 1992
C#ar$ 7&*i#a+, 6r. March 1, 199! 6&ne (, 1992
7avi+ R. Re'#$ra Se*,e3'er 12, 1911 7ece3'er 12, 1992
L$&ie Cen,en$ Se*,e3'er 12, 1911 March 12, 199-
Ra)3&n+$ An+ra+e 6an&ar) 12, 1911 :c,$'er 12, 1992
Pe,i,i$ners were *ar, $% a c$3*#e3en, $% ,hree *ers$nne# c$3*rise+ $% a +river, a sa#es3an
an+ a reg&#ar r$&,e he#*er, %$r ever) +e#iver) ,r&c<. The) w$r<e+ eFc#&sive#) a, res*$n+en,Ss
*#an,s, sa#es $Ices, an+ c$3*an) *re3ises. :n :c,$'er !!, 199-, *e,i,i$ners J#e+ a
C$3*#ain, agains, res*$n+en, %$r &n%air #a'$r *rac,ice an+ i##ega# +is3issa# wi,h c#ai3s %$r
reg&#ari4a,i$n, rec$ver) $% 'eneJ,s &n+er ,he C$##ec,ive Bargaining Agree3en, =CBA?, 3$ra#
an+ eFe3*#ar) +a3ages, an+ a,,$rne)Ss %ees. In ,heir P$si,i$n Pa*er, *e,i,i$ners a##ege+ ,ha,
,he) sh$&#+ 'e +ec#are+ reg&#ar e3*#$)ees $% res*$n+en, since ,he na,&re $% ,heir w$r< as
argadores-pa$inantes was necessar) $r +esira'#e ,$ res*$n+en,Ss &s&a# '&siness an+ was
+irec,#) re#a,e+ ,$ res*$n+en,Ss '&siness an+ ,ra+e. In i,s P$si,i$n Pa*er, res*$n+en, +enie+
#ia'i#i,) ,$ *e,i,i$ners an+ c$&n,ere+ ,ha, *e,i,i$ners were ,e3*$rar) w$r<ers wh$ were
engage+ %$r a Jve53$n,h *eri$+ ,$ ac, as s&'s,i,&,es %$r an a'sen, reg&#ar e3*#$)ee.
Iss&eL
Wha, is ,heir s,a,&s as e3*#$)eesW
R&#ingL
The *iv$,a# A&es,i$n $% whe,her res*$n+en,Ss sa#es r$&,e he#*ers $r carga+$res $r *ahinan,es
are reg&#ar w$r<ers $% res*$n+en, has a#rea+) 'een res$#ve+ in 4agsalin v. National
"rganization of :or+ing 4en, ,h&sL
The 'asic #aw $n ,he case is Ar,ic#e !1( $% ,he La'$r C$+e. I,s *er,inen, *r$visi$ns rea+L
Ar,. !1(. Reg&#ar an+ Cas&a# E3*#$)3en,. The *r$visi$ns $% wri,,en agree3en, ,$ ,he
c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# agree3en, $% ,he *ar,ies, an e3*#$)3en,
sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies
which are &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er,
eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he
c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he
Page -9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.
An e3*#$)3en, sha## 'e +ee3e+ ,$ 'e cas&a# i% i, is n$, c$vere+ ') ,he *rece+ing *aragra*hL
Pr$vi+e+, Tha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $% service, whe,her s&ch
service is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he
ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch ac,ivi,) eFis,s.
C$ca5C$#a B$,,#ers Phi#s., Inc., is $ne $% ,he #ea+ing an+ #arges, 3an&%ac,&rers $% s$%,+rin<s in
,he c$&n,r). Res*$n+en, w$r<ers have #$ng 'een in ,he service $% *e,i,i$ner c$3*an).
Res*$n+en, w$r<ers, when hire+, w$&#+ g$ wi,h r$&,e sa#es3en $n '$ar+ +e#iver) ,r&c<s an+
&n+er,a<e ,he #a'$ri$&s ,as< $% #$a+ing an+ &n#$a+ing s$%,+rin< *r$+&c,s $% Pe,i,i$ner
C$3*an) ,$ i,s vari$&s +e#iver) *$in,s. Even whi#e ,he #ang&age $% #aw 3igh, have 'een 3$re
+eJni,ive, ,he c#ari,) $% i,s s*iri, an+ in,en,, i.e., ,$ ens&re a reg&#ar w$r<ersG sec&ri,) $%
,en&re, h$wever, can har+#) 'e +$&',e+. In +e,er3ining whe,her an e3*#$)3en, sh$&#+ 'e
c$nsi+ere+ reg&#ar $r n$n5reg&#ar, ,he a**#ica'#e ,es, is ,he reas$na'#e c$nnec,i$n 'e,ween
,he *ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a# '&siness $r ,ra+e $%
,he e3*#$)er. The s,an+ar+, s&**#ie+ ') ,he #aw i,se#%, is whe,her ,he w$r< &n+er,a<en is
necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er, a %ac, ,ha, can 'e
assesse+ ') #$$<ing in,$ ,he na,&re $% ,he services ren+ere+ an+ i,s re#a,i$n ,$ ,he genera#
sche3e &n+er which ,he '&siness $r ,ra+e is *&rs&e+ in ,he &s&a# c$&rse. I, is +is,ing&ishe+
%r$3 a s*eciJc &n+er,a<ing ,ha, is +iv$rce+ %r$3 ,he n$r3a# ac,ivi,ies reA&ire+ in carr)ing $n
,he *ar,ic&#ar '&siness $r ,ra+e. B&,, a#,h$&gh ,he w$r< ,$ 'e *er%$r3e+ is $n#) %$r a s*eciJc
*r$Eec, $r seas$na#, where a *ers$n ,h&s engage+ has 'een *er%$r3ing ,he E$' %$r a, #eas, $ne
)ear, even i% ,he *er%$r3ance is n$, c$n,in&$&s $r is 3ere#) in,er3i,,en,, ,he #aw +ee3s ,he
re*ea,e+ an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as 'eing s&Icien, ,$ in+ica,e ,he necessi,)
$r +esira'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness $r ,ra+e $% ,he e3*#$)er. The e3*#$)3en, $%
s&ch *ers$n is a#s$ ,hen +ee3e+ ,$ 'e reg&#ar wi,h res*ec, ,$ s&ch ac,ivi,) an+ whi#e s&ch
ac,ivi,) eFis,s. The arg&3en, $% *e,i,i$ner ,ha, i,s &s&a# '&siness $r ,ra+e is s$%,+rin<
3an&%ac,&ring an+ ,ha, ,he w$r< assigne+ ,$ res*$n+en, w$r<ers as sa#es r$&,e he#*ers s$
inv$#ves 3ere#) Z[]*$s, *r$+&c,i$n ac,ivi,ies,Z[ $ne which is n$, in+is*ensa'#e in ,he
3an&%ac,&re $% i,s *r$+&c,s, scarce#) can 'e *ers&asive. I%, as s$ arg&e+ ') *e,i,i$ner
c$3*an), $n#) ,h$se wh$se w$r< are +irec,#) inv$#ve+ in ,he *r$+&c,i$n $% s$%,+rin<s 3a) 'e
he#+ *er%$r3ing %&nc,i$ns necessar) an+ +esira'#e in i,s &s&a# '&siness $r ,ra+e, ,here w$&#+
have ,hen 'een n$ nee+ %$r i, ,$ even 3ain,ain reg&#ar ,r&c< sa#es r$&,e he#*ers. The na,&re
$% ,he w$r< *er%$r3e+ 3&s, 'e viewe+ %r$3 a *ers*ec,ive $% ,he '&siness $r ,ra+e in i,s
en,ire,) an+ n$, $n a c$nJne+ sc$*e.
The re*ea,e+ rehiring $% res*$n+en, w$r<ers an+ ,he c$n,in&ing nee+ %$r ,heir services c#ear#)
a,,es, ,$ ,he necessi,) $r +esira'i#i,) $% ,heir services in ,he reg&#ar c$n+&c, $% ,he '&siness $r
,ra+e $% *e,i,i$ner c$3*an). The C$&r, $% A**ea#s has %$&n+ each $% res*$n+en,s ,$ have
w$r<e+ %$r a, #eas, $ne )ear wi,h *e,i,i$ner c$3*an). Whi#e ,his C$&r,, in Brent S$ool, (n.
vs. 9amora,has &*he#+ ,he #ega#i,) $% a JFe+5,er3 e3*#$)3en,, i, has +$ne s$, h$wever, wi,h
a s,ern a+3$ni,i$n ,ha, where %r$3 ,he circ&3s,ances i, is a**aren, ,ha, ,he *eri$+ has 'een
i3*$se+ ,$ *rec#&+e ,he acA&isi,i$n $% ,en&ria# sec&ri,) ') ,he e3*#$)ee, ,hen i, sh$&#+ 'e
s,r&c< +$wn as 'eing c$n,rar) ,$ #aw, 3$ra#s, g$$+ c&s,$3s, *&'#ic $r+er an+ *&'#ic *$#ic).
The *ernici$&s *rac,ice $% having e3*#$)ees, w$r<ers an+ #a'$rers, engage+ %$r a JFe+ *eri$+
$% %ew 3$n,hs, sh$r, $% ,he n$r3a# siF53$n,h *r$'a,i$nar) *eri$+ $% e3*#$)3en,, an+,
,herea%,er, ,$ 'e hire+ $n a +a)5,$5+a) 'asis, 3$c<s ,he #aw. An) $'vi$&s circ&3ven,i$n $% ,he
#aw cann$, 'e c$&n,enance+. The %ac, ,ha, res*$n+en, w$r<ers have agree+ ,$ 'e e3*#$)e+
$n s&ch 'asis an+ ,$ %$reg$ ,he *r$,ec,i$n given ,$ ,he3 $n ,heir sec&ri,) $% ,en&re,
+e3$ns,ra,e n$,hing 3$re ,han ,he seri$&s *r$'#e3 $% i3*$verish3en, $% s$ 3an) $% $&r
*e$*#e an+ ,he res&#,ing &nevenness 'e,ween #a'$r an+ ca*i,a#. A c$n,rac, $% e3*#$)3en, is
Page "(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
i3*resse+ wi,h *&'#ic in,eres,. The *r$visi$ns $% a**#ica'#e s,a,&,es are +ee3e+ wri,,en in,$
,he c$n,rac,, an+ ,he *ar,ies are n$, a, #i'er,) ,$ ins&#a,e ,he3se#ves an+ ,heir re#a,i$nshi*s
%r$3 ,he i3*ac, $% #a'$r #aws an+ reg&#a,i$ns ') si3*#) c$n,rac,ing wi,h each $,her.

23. Coco/angas @o(el 'each Resor( v. 5isca, G.R. No. 1)7"*., Augus( 29, 2""-
9ac,sL
The *resen, c$n,r$vers) s,e33e+ %r$3 Jve in+ivi+&a# c$3*#ain,s

%$r i##ega# +is3issa# J#e+ $n
') 9e+eric$ 9. 8isca =8isca?, 6$hnn) G. Barre+$, R$na#+ D. Ti'&s, Richar+ G. 8isca an+ RaIe G.
8isca =res*$n+en,s? agains, C$c$3angas H$,e# Beach Res$r, an+B$r i,s $wner53anager, S&san
M&nr$ =*e,i,i$ners? 'e%$re S&'5Regi$na# Ar'i,ra,i$n Branch N$. 8I $% ,he Na,i$na# La'$r
Re#a,i$ns C$33issi$n =NLRC? in Ha#i'$, A<#an.
In ,heir c$ns$#i+a,e+ P$si,i$n Pa*er res*$n+en,s a##ege+ ,ha, ,he) were reg&#ar e3*#$)ees $%
*e,i,i$ners, wi,h +esigna,i$ns an+ +a,es $% e3*#$)3en, as %$##$wsL
Na3e 7esigna,i$n 7a,e E3*#$)e+
9e+eric$ 9. 8isa 9$re3an :c,$'er 1, 191"
6$hnn) G. Barre+$ Car*en,er A*ri# !, 199
R$na#+ D. Ti'&s Mas$n N$ve3'er 9, 199-
Richar+ G. 8isca Car*en,er A*ri# 1991
RaIe G. 8isca Mas$nBCar*en,er March !", 199
,as<e+ wi,h ,he 3ain,enance an+ re*air $% ,he res$r, %aci#i,ies.
Maria Ni+a I^_ig$5Ta^_a#a, ,he 9r$n, 7es< :IcerBSa#es Manager, in%$r3e+ ,he3 n$, ,$ re*$r,
%$r w$r< since ,he $ng$ing c$ns,r&c,i$ns an+ re*airs w$&#+ 'e ,e3*$rari#) s&s*en+e+ 'eca&se
,he) ca&se+ irri,a,i$n an+ ann$)ance ,$ ,he res$r,Ss g&es,sO as ins,r&c,e+, ,he) +i+ n$, re*$r,
%$r w$r< ,he s&ccee+ing +a)s.
6$hn M&nr$, h&s'an+ $% *e,i,i$ner S&san M&nr$, s&'seA&en,#) visi,e+ res*$n+en, %$re3an
8isca an+ in%$r3e+ hi3 ,ha, ,he w$r< s&s*ensi$n was +&e ,$ '&+ge,ar) c$ns,rain,s.
When res*$n+en, 8isca #a,er +isc$vere+ ,ha, %$&r new w$r<ers were hire+ ,$ +$ res*$n+en,sS
,as<s, he c$n%r$n,e+ *e,i,i$ner M&nr$ wh$ eF*#aine+ ,ha, res*$n+en,sS res&3*,i$n $% w$r<
was n$, *$ssi'#e +&e ,$ '&+ge,ar) c$ns,rain,s. Hence, ,he) J#e+ ,heir in+ivi+&a# c$3*#ain,s %$r
i##ega# +is3issa#. In a++i,i$n ,$ reins,a,e3en, wi,h *a)3en, $% %&## 'ac<wages, res*$n+en,s
*ra)e+ %$r *a)3en, $% *re3i&3 *a) %$r res, +a), service incen,ive #eave *a), 1
,h
3$n,h *a),
an+ c$s,5$%5#iving a##$wance, *#&s 3$ra# an+ eFe3*#ar) +a3ages an+ a,,$rne)Ss %ees.
In ,heir P$si,i$n Pa*er, *e,i,i$ners +enie+ an) e3*#$)er5e3*#$)ee re#a,i$nshi* wi,h
res*$n+en,s an+ c$&n,ere+ ,ha, res*$n+en, 8isca was an in+e*en+en, c$n,rac,$r wh$ was
ca##e+ &*$n %r$3 ,i3e ,$ ,i3e when s$3e re*airs in ,he res$r, %aci#i,ies were nee+e+ an+ ,he
$,her res*$n+en,s were se#ec,e+ an+ hire+ ') hi3.
La'$r Ar'i,erL +is3isse+ ,he c$3*#ain,, h$#+ing ,ha, res*$n+en, 8isca was an in+e*en+en,
c$n,rac,$r an+ ,he $,her res*$n+en,s were hire+ ') hi3 ,$ he#* hi3 wi,h his c$n,rac,e+ w$r<s
a, ,he res$r,O ,ha, ,here was n$ i##ega# +is3issa# '&, c$3*#e,i$n $% *r$Eec,sO ,ha, res*$n+en,s
were *r$Eec, w$r<ers, n$, reg&#ar e3*#$)ees.
NLRCL se, asi+e ,he 7ecisi$n $% ,he LA an+ $r+ering ,he *a)3en, ,$ res*$n+en,s $%
Page "1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
'ac<wages, 1
,h
3$n,h *a) an+ service incen,ive #eave *a) %$r ,hree )ears, in a++i,i$n ,$ 1(V
a,,$rne)Ss %ees.
The NLRC he#+ ,ha, res*$n+en,s were reg&#ar e3*#$)ees $% *e,i,i$ners since a## ,he %ac,$rs
+e,er3ina,ive $% e3*#$)er5e3*#$)ee re#a,i$nshi* were *resen, an+ ,he w$r< +$ne ')
res*$n+en,s was c#ear#) re#a,e+ ,$ *e,i,i$nersS res$r, '&siness. I, ,$$< in,$ acc$&n, ,he
%$##$wingL
=a? res*$n+en, 8isca was re*$r,e+ ') *e,i,i$ners as an e3*#$)ee in ,he D&ar,er#) S$cia#
Sec&ri,) S)s,e3 =SSS? re*$r,O
='? a## $% ,he res*$n+en,s were cer,iJe+ ,$ ') *e,i,i$ner M&nr$ as w$r<ers an+ even
c$33en+e+ %$r ,heir sa,is%ac,$r) *er%$r3anceO
=c? res*$n+en,s were *ai+ ,heir h$#i+a) an+ $ver,i3e *a)O an+
=+? res*$n+en,s ha+ 'een c$n,in&$&s#) in *e,i,i$nersS e3*#$) %r$3 ,hree ,$ ,we#ve )ears an+
were a## *ai+ ') +ai#) wage given wee<#).
Pe,i,i$ners ,hen J#e+ a M$,i$n %$r Rec$nsi+era,i$n, arg&ing ,ha, res*$n+en,s were *r$Eec,
e3*#$)ees.
NLRC =M$,i$n %$r Rec$nsi+era,i$n?L Ac,ing &*$n ,he *e,i,i$nersG 3$,i$n, ,he NLRC 3a+e a
c$3*#e,e ,&rna'$&, %r$3 i,s $rigina# +ecisi$n an+ iss&e+ a Res$#&,i$n

+is3issing ,he
c$3*#ain,, h$#+ing ,ha, res*$n+en,s were n$, reg&#ar e3*#$)ees '&, *r$Eec, e3*#$)ees, hire+
%$r a sh$r, *eri$+ $% ,i3e ,$ +$ s$3e re*air E$'s in *e,i,i$nersS res$r, '&siness. N$ne,he#ess, i,
$r+ere+ *a)3en, $% P1(,(((.(( ,$ each c$3*#ainan, as Jnancia# assis,ance.
CAL The CA he#+ res*$n+en,s were reg&#ar e3*#$)ees, n$, *r$Eec, w$r<ers, since in ,he )ears
,ha, *e,i,i$ners re*ea,e+#) hire+ res*$n+en,sS services, ,he %$r3er %ai#e+ ,$ se,, even $nce,
s*eciJc *eri$+s when ,he e3*#$)3en, re#a,i$nshi* w$&#+ 'e ,er3ina,e+O ,ha, ,he re*ea,e+
hiring $% res*$n+en,s es,a'#ishe+ ,ha, ,he services ren+ere+ ') ,he3 were necessar) an+
+esira'#e ,$ *e,i,i$nersS res$r, '&sinessO a, ,he #eas,, res*$n+en,s were reg&#ar seas$na#
e3*#$)ees, hire+ +e*en+ing $n ,he ,$&ris, seas$n an+ when ,he nee+ ar$se in 3ain,aining
*e,i,i$nersS res$r, %$r ,he 'eneJ, $% g&es,s.
In a++i,i$n, ,he CA awar+e+ res*$n+en,s P2(,(((.(( as +a3ages, since ,heir ,er3ina,i$n was
a,,en+e+ ') 'a+ %ai,h, in ,ha, *e,i,i$ners n$, $n#) gave res*$n+en,s ,he r&n5ar$&n+ '&, a#s$
'#a,an,#) hire+ $,hers ,$ ,a<e res*$n+en,sS *#ace +es*i,e ,heir c#ai3 ,ha, ,he s$5ca##e+
,e3*$rar) s,$**age $% w$r< was +&e ,$ '&+ge,ar) c$ns,rain,s.
Iss&eL
Whe,her res*$n+en,s are reg&#ar e3*#$)ees $r *r$Eec, e3*#$)ees.
R&#ingL
Res*$n+en,s are reg&#ar e3*#$)ees an+ n$, *r$Eec, e3*#$)ees.
The *e,i,i$ners were a3'iva#en, in ca,eg$ri4ing res*$n+en,s. In ,heir P$si,i$n Pa*er

J#e+
'e%$re ,he LA, *e,i,i$ners c#assiJe+ res*$n+en, 8isca as an in+e*en+en, c$n,rac,$r an+ ,he
$,her res*$n+en,s as his e3*#$)eesO whi#e in ,heir M$,i$n %$r Rec$nsi+era,i$n 'e%$re ,he
NLRC, *e,i,i$ners ,rea,e+ res*$n+en,s as *r$Eec, e3*#$)ees.
9&r,her, *e,i,i$nersS *$si,i$n in ,heir M$,i$n %$r Rec$nsi+era,i$n 'e%$re ,he NLRC r&ns c$n,rar)
,$ ,heir ear#ier s&'3issi$n in ,heir P$si,i$n Pa*er 'e%$re ,he LA. Whi#e ini,ia##) a+vancing ,he
a'sence $% an e3*#$)er5e3*#$)ee re#a,i$nshi*, *e,i,i$ners $n a**ea#, sang a +iKeren, ,&ne, s$
Page "!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,$ s*ea<, essen,ia##) inv$<ing ,he ,er3ina,i$n $% ,he *eri$+ $% ,heir e3*#$)er5e3*#$)ee
re#a,i$nshi*.
The NLRC sh$&#+ n$, have c$nsi+ere+ ,he new ,he$r) $Kere+ ') ,he *e,i,i$ners in ,heir M$,i$n
%$r Rec$nsi+era,i$n. I, is a 3a,,er $% #aw ,ha, when a *ar,) a+$*,s a *ar,ic&#ar ,he$r) an+ ,he
case is ,rie+ an+ +eci+e+ &*$n ,ha, ,he$r) in ,he c$&r, 'e#$w, he wi## n$, 'e *er3i,,e+ ,$
change his ,he$r) $n a**ea#. T$ *er3i, a *ar,) ,$ change his ,he$r) $n a**ea# wi## 'e &n%air ,$
,he a+verse *ar,).
A, an) ra,e, a%,er a care%&# eFa3ina,i$n $% ,he rec$r+s, ,he C$&r, Jn+s ,ha, ,he CA +i+ n$, err
in Jn+ing ,ha, res*$n+en,s were reg&#ar e3*#$)ees, n$, *r$Eec, e3*#$)ees.
A *r$Eec, e3*#$)ee is $ne wh$se Pe3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r
&n+er,a<ing, ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r service ,$ 'e *er%$r3e+ is seas$na# in
na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.P Be%$re an e3*#$)ee hire+ $n a
*er5*r$Eec, 'asis can 'e +is3isse+, a re*$r, 3&s, 'e 3a+e ,$ ,he neares, e3*#$)3en, $Ice,
$% ,he ,er3ina,i$n $% ,he services $% ,he w$r<ers ever) ,i3e c$3*#e,es a *r$Eec,, *&rs&an, ,$
P$#ic) Ins,r&c,i$n N$. !(.

In ,he *resen, case, res*$n+en,s cann$, 'e c#assiJe+ as *r$Eec, e3*#$)ees, since ,he) w$r<e+
c$n,in&$&s#) %$r *e,i,i$ners %r$3 ,hree ,$ ,we#ve )ears wi,h$&, an) 3en,i$n $% a P*r$Eec,P ,$
which ,he) were s*eciJca##) assigne+. Whi#e ,he) ha+ +esigna,i$ns as P%$re3an,P Pcar*en,erP
an+ P3as$n,P ,he) *er%$r3e+ w$r< $,her ,han car*en,r) $r 3as$nr). The) were ,as<e+ wi,h
,he 3ain,enance an+ re*air $% ,he %&rni,&re, 3$,$r '$a,s, c$,,ages, an+ win+'rea<ers an+
$,her res$r, %aci#i,ies.
There is #i<ewise n$ evi+ence $% ,he *r$Eec, e3*#$)3en, c$n,rac,s c$vering res*$n+en,sS
a##ege+ *eri$+s $% e3*#$)3en,. M$re i3*$r,an,#), ,here is n$ evi+ence ,ha, *e,i,i$ners
re*$r,e+ ,he ,er3ina,i$n $% res*$n+en,sS s&**$se+ *r$Eec, e3*#$)3en, ,$ ,he 7:LE as *r$Eec,
e3*#$)ees. 7e*ar,3en, :r+er N$. 19, as we## as ,he $#+ P$#ic) Ins,r&c,i$ns N$. !(, reA&ires
e3*#$)ers ,$ s&'3i, a re*$r, $% an e3*#$)eeSs ,er3ina,i$n ,$ ,he neares, *&'#ic e3*#$)3en,
$Ice ever) ,i3e his e3*#$)3en, is ,er3ina,e+ +&e ,$ a c$3*#e,i$n $% a *r$Eec,. Pe,i,i$nersS
%ai#&re ,$ J#e ,er3ina,i$n re*$r,s is an in+ica,i$n ,ha, ,he res*$n+en,s were n$, *r$Eec,
e3*#$)ees '&, reg&#ar e3*#$)ees.

This C$&r, has he#+ ,ha, an e3*#$)3en, ceases ,$ 'e c$,er3in$&s wi,h s*eciJc *r$Eec,s when
,he e3*#$)ee is c$n,in&$&s#) rehire+ +&e ,$ ,he +e3an+s $% e3*#$)erSs '&siness an+ re5
engage+ %$r 3an) 3$re *r$Eec,s wi,h$&, in,err&*,i$n.
The C$&r, is n$, *ers&a+e+ ') *e,i,i$nersS s&'3issi$n ,ha, res*$n+en,sS services are n$,
necessar) $r +esira'#e ,$ ,he &s&a# ,ra+e $r '&siness $% ,he res$r,. The re*ea,e+ an+
c$n,in&ing nee+ %$r ,heir services is s&Icien, evi+ence $% ,he necessi,), i% n$, in+is*ensa'i#i,),
$% ,heir services ,$ *e,i,i$nersS res$r, '&siness.
In 4araguinot, )r. v. National Labor Relations Commission, ,he C$&r, r&#e+ ,ha, P$nce a *r$Eec,
$r w$r< *$$# e3*#$)ee has 'eenL =1? c$n,in&$&s#), as $**$se+ ,$ in,er3i,,en,#), rehire+ ') ,he
sa3e e3*#$)er %$r ,he sa3e ,as<s $r na,&re $% ,as<sO an+ =!? ,hese ,as<s are vi,a#, necessar)
an+ in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er, ,hen ,he e3*#$)ee 3&s, 'e
+ee3e+ a reg&#ar e3*#$)ee, *&rs&an, ,$ Ar,ic#e !1( $% ,he La'$r C$+e an+ E&ris*r&+ence.N
Tha, res*$n+en,s were reg&#ar e3*#$)ees is %&r,her '$#s,ere+ ') ,he %$##$wing evi+enceL
Page "
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
=a? ,he SSS D&ar,er#) S&33ar) $% C$n,ri'&,i$n Pa)3en,s

#is,ing res*$n+en,s as e3*#$)ees $%
*e,i,i$nersO
='? ,he Service Rec$r+ Cer,iJca,es s,a,ing ,ha, res*$n+en,s were e3*#$)ees $% *e,i,i$ners %$r
*eri$+s ranging %r$3 ,hree ,$ ,we#ve )ears an+ a## have given Pver) sa,is%ac,$r) *er%$r3ancePO
=c? *e,,) cash v$&chers

sh$wing *a)3en, $% res*$n+en,sS sa#aries an+ h$#i+a) an+ $ver,i3e
*a)s.
Th&s, s&'s,an,ia# evi+ence s&**$r,e+ ,he CA Jn+ing ,ha, res*$n+en,s were reg&#ar
e3*#$)ees. Being reg&#ar e3*#$)ees, ,he) were en,i,#e+ ,$ sec&ri,) $% ,en&re, an+ ,heir
services 3a) n$, 'e ,er3ina,e+ eFce*, %$r ca&ses *r$vi+e+ ') #aw.
Ar,ic#e !"9

$% ,he La'$r C$+e, as a3en+e+, *r$vi+es ,ha, an i##ega##) +is3isse+ e3*#$)ee sha##
'e en,i,#e+ ,$ reins,a,e3en,, %&## 'ac<wages, inc#&sive $% a##$wances, an+ ,$ his $,her 'eneJ,s
$r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+ %r$3 ,he ,i3e his c$3*ensa,i$n was wi,hhe#+ %r$3
hi3 &* ,$ ,he ,i3e $% his ac,&a# reins,a,e3en,.
The C$&r, n$,es ,ha, ,he NLRC, in i,s ear#ier 7ecisi$n which was aIr3e+ ') ,he CA, c$3*&,e+
,he awar+ %$r 'ac<wages %r$3 Ma) 1, 1999 ,$ 6&#) 1, !((! $n#). I, is evi+en, ,ha,
res*$n+en,sS 'ac<wages sh$&#+ n$, 'e #i3i,e+ ,$ sai+ *eri$+. The 'ac<wages +&e res*$n+en,s
3&s, 'e c$3*&,e+ %r$3 ,he ,i3e ,he) were &nE&s,#) +is3isse+ &n,i# ac,&a# reins,a,e3en, ,$
,heir %$r3er *$si,i$ns. Th&s, &n,i# *e,i,i$ners i3*#e3en, ,he reins,a,e3en, as*ec,, i,s
$'#iga,i$n ,$ res*$n+en,s, ins$%ar as accr&e+ 'ac<wages an+ $,her 'eneJ,s are c$ncerne+,
c$n,in&es ,$ acc&3&#a,e.
2*. 3rice, e( al., v !nno&a(a 3hils., G.R. No. 17-."., Se%(e/er 3", 2""-
9ac,sL
INN:7ATA ha+ since cease+ $*era,i$ns +&e ,$ '&siness #$sses in 6&ne !((!. Pe,i,i$ners Cherr)
6. Price, S,e*hanie G. 7$3ing$, an+ L$#i,a Ar'i#era were e3*#$)e+ as %$r3a,,ers ') INN:7ATA.
The *ar,ies eFec&,e+ an e3*#$)3en, c$n,rac, +en$3ina,e+ as a C$n,rac, $% E3*#$)3en, %$r a
9iFe+ Peri$+, s,i*&#a,ing ,ha, ,he c$n,rac, sha## 'e eKec,ive %r$3 9EB. 1-, 1999 ,$ 9EB. 1-,
!((( a *eri$+ $% :NE @EAR. :n 1- 9e'r&ar) !(((, ,he HRA7 Manager $% INN:7ATA wr$,e
*e,i,i$ners in%$r3ing ,he3 $% ,heir #as, +a) $% w$r<, a, ,he en+ $% ,he c#$se $% '&siness h$&rs
$n9e'r&ar) 1-, !(((. Acc$r+ing ,$ INN:7ATA, *e,i,i$ners e3*#$)3en, a#rea+) cease+ +&e ,$
,he en+ $% ,heir c$n,rac,.
:n !! Ma) !(((, *e,i,i$ners J#e+ a C$3*#ain, %$r i##ega# +is3issa# an+ +a3ages agains,
res*$n+en,s. Pe,i,i$ners c#ai3e+ ,ha, ,he) sh$&#+ 'e c$nsi+ere+ reg&#ar e3*#$)ees since ,heir
*$si,i$ns as %$r3a,,ers were necessar) an+ +esira'#e ,$ ,he &s&a# '&siness $% INN:7ATA as an
enc$+ing, c$nversi$n an+ +a,a *r$cessing c$3*an). Pe,i,i$ners Jna##) arg&e+ ,ha, ,he) c$&#+
n$, 'e c$nsi+ere+ *r$Eec, e3*#$)ees c$nsi+ering ,ha, ,heir e3*#$)3en, was n$, c$,er3in$&s
wi,h an) *r$Eec, $r &n+er,a<ing, ,he ,er3ina,i$n $% which was *re+e,er3ine+.
Res*$n+en,s asser,e+ ,ha, *e,i,i$ners were n$, i##ega##) +is3isse+, %$r ,heir e3*#$)3en, was
,er3ina,e+ +&e ,$ ,he eF*ira,i$n $% ,heir ,er3s $% e3*#$)3en,.
The La'$r Ar'i,er iss&e+ i,s 7ecisi$n Jn+ing *e,i,i$ners c$3*#ain, %$r i##ega# +is3issa# an+
+a3ages 3eri,$ri$&s.
Page ".
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Res*$n+en, INN:7ATA a**ea#e+ ,he La'$r Ar'i,ers 7ecisi$n ,$ ,he NLRC. The NLRC reverse+
,he La'$r Ar'i,ers 7ecisi$n +a,e+ 1" :c,$'er !(((, an+ a's$#ve+ INN:7ATA $% ,he charge $%
i##ega# +is3issa#.
:n !2 Se*,e3'er !((-, ,he C$&r, $% A**ea#s *r$3&#ga,e+ i,s 7ecisi$n s&s,aining ,he r&#ing $%
,he NLRC ,ha, *e,i,i$ners were n$, i##ega##) +is3isse+. Hence, ,his *e,i,i$n.
Iss&esL
Whe,her *e,i,i$ners were i##ega##) +is3isse+ ') res*$n+en,s
Whe,her *e,i,i$ners were hire+ ') INN:7ATA &n+er va#i+ JFe+5,er3 e3*#$)3en, c$n,rac,s
R&#ingL
The C$&r, Jn+s 3eri, in ,he *resen, Pe,i,i$n. There were n$ va#i+ JFe+5,er3 c$n,rac,s an+
*e,i,i$ners were reg&#ar e3*#$)ees $% ,he INN:7ATA wh$ c$&#+ n$, 'e +is3isse+ eFce*, %$r
E&s, $r a&,h$ri4e+ ca&se.

The e3*#$)3en, s,a,&s $% a *ers$n is +eJne+ an+ *rescri'e+ ') #aw an+ n$, ') wha, ,he
*ar,ies sa) i, sh$&#+ 'e. EA&a##) i3*$r,an, ,$ c$nsi+er is ,ha, a c$n,rac, $% e3*#$)3en, is
i3*resse+ wi,h *&'#ic in,eres, s&ch ,ha, #a'$r c$n,rac,s 3&s, )ie#+ ,$ ,he c$33$n g$$+. Th&s,
*r$visi$ns $% a**#ica'#e s,a,&,es are +ee3e+ wri,,en in,$ ,he c$n,rac,, an+ ,he *ar,ies are n$,
a, #i'er,) ,$ ins&#a,e ,he3se#ves an+ ,heir re#a,i$nshi*s %r$3 ,he i3*ac, $% #a'$r #aws an+
reg&#a,i$ns ') si3*#) c$n,rac,ing wi,h each $,her. Reg&#ar e3*#$)3en, has 'een +eJne+ ')
Ar,ic#e !1( $% ,he La'$r C$+e, as a3en+e+, which rea+sL
Ar,. !1(. Reg&#ar an+ Cas&a# E3*#$)3en,. The *r$visi$ns $% wri,,en agree3en, ,$ ,he
c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# agree3en, $% ,he *ar,ies, an e3*#$)3en,
sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies
which are &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er,
eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he
c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% engage3en, $% ,he
e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.

An e3*#$)3en, sha## 'e +ee3e+ ,$ 'e cas&a# i% i, is n$, c$vere+ ') ,he *rece+ing *aragra*h.
Pr$vi+e+, Tha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $% service, whe,her s&ch
service is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he
ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch ac,ivi,) eFis,s.
=>n+ersc$ring $&rs?.

Base+ $n ,he a%$re5A&$,e+ *r$visi$n, ,he %$##$wing e3*#$)ees are acc$r+e+ reg&#ar s,a,&sL =1?
,h$se wh$ are engage+ ,$ *er%$r3 ac,ivi,ies which are necessar) $r +esira'#e in ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)er, regar+#ess $% ,he #eng,h $% ,heir e3*#$)3en,O an+ =!? ,h$se
wh$ were ini,ia##) hire+ as cas&a# e3*#$)ees, '&, have ren+ere+ a, #eas, $ne )ear $% service,
whe,her c$n,in&$&s $r 'r$<en, wi,h res*ec, ,$ ,he ac,ivi,) in which ,he) are e3*#$)e+.
>n+$&',e+#), *e,i,i$ners 'e#$ng ,$ ,he Jrs, ,)*e $% reg&#ar e3*#$)ees.
>n+er Ar,ic#e !1( $% ,he La'$r C$+e, ,he a**#ica'#e ,es, ,$ +e,er3ine whe,her an e3*#$)3en,
sh$&#+ 'e c$nsi+ere+ reg&#ar $r n$n5reg&#ar is ,he reas$na'#e c$nnec,i$n 'e,ween ,he
*ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a# '&siness $r ,ra+e $% ,he
e3*#$)er.
Page "2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In ,he case a, 'ar, *e,i,i$ners were e3*#$)e+ ') INN:7ATA $n 1" 9e'r&ar) 1999 as
%$r3a,,ers. The *ri3ar) '&siness $% INN:7ATA is +a,a enc$+ing, an+ ,he %$r3a,,ing $% ,he
+a,a en,ere+ in,$ ,he c$3*&,ers is an essen,ia# *ar, $% ,he *r$cess $% +a,a
enc$+ing. 9$r3a,,ing $rgani4es ,he +a,a enc$+e+, 3a<ing i, easier ,$ &n+ers,an+ %$r ,he
c#ien,s an+B$r ,he in,en+e+ en+ &sers ,here$%. >n+enia'#), ,he w$r< *er%$r3e+ ') *e,i,i$ners
was necessar) $r +esira'#e in ,he '&siness $r ,ra+e $% INN:7ATA.
H$wever, i, is a#s$ ,r&e ,ha, whi#e cer,ain %$r3s $% e3*#$)3en, reA&ire ,he *er%$r3ance $%
&s&a# $r +esira'#e %&nc,i$ns an+ eFcee+ $ne )ear, ,hese +$ n$, necessari#) res&#, in reg&#ar
e3*#$)3en, &n+er Ar,ic#e !1( $% ,he La'$r C$+e. >n+er ,he Civi# C$+e, JFe+5,er3
e3*#$)3en, c$n,rac,s are n$, #i3i,e+, as ,he) are &n+er ,he *resen, La'$r C$+e, ,$ ,h$se ')
na,&re seas$na# $r %$r s*eciJc *r$Eec,s wi,h *re+e,er3ine+ +a,es $% c$3*#e,i$nO ,he) a#s$
inc#&+e ,h$se ,$ which ,he *ar,ies ') %ree ch$ice have assigne+ a s*eciJc +a,e $% ,er3ina,i$n.
The +ecisive +e,er3inan, in ,er3 e3*#$)3en, is ,he +a) cer,ain agree+ &*$n ') ,he *ar,ies
%$r ,he c$33ence3en, an+ ,er3ina,i$n $% ,heir e3*#$)3en, re#a,i$nshi*, a +a) cer,ain 'eing
&n+ers,$$+ ,$ 'e ,ha, which 3&s, necessari#) c$3e, a#,h$&gh i, 3a) n$, 'e <n$wn
when. Seas$na# e3*#$)3en, an+ e3*#$)3en, %$r a *ar,ic&#ar *r$Eec, are ins,ances $%
e3*#$)3en, in which a *eri$+, where n$, eF*ress#) se, +$wn, is necessari#) i3*#ie+.
Whi#e ,his C$&r, has rec$gni4e+ ,he va#i+i,) $% JFe+5,er3 e3*#$)3en, c$n,rac,s, i, has
c$nsis,en,#) he#+ ,ha, ,his is ,he eFce*,i$n ra,her ,han ,he genera# r&#e. M$re i3*$r,an,#), a
JFe+5,er3 e3*#$)3en, is va#i+ $n#) &n+er cer,ain circ&3s,ances. In Brent, ,he ver) sa3e case
inv$<e+ ') res*$n+en,s, ,he C$&r, i+en,iJe+ severa# circ&3s,ances wherein a JFe+5,er3 is
an essen,ia# an+ na,&ra# a**&r,enance, ,$ wi,L

S$3e %a3i#iar eFa3*#es 3a) 'e ci,e+ $% e3*#$)3en, c$n,rac,s which 3a) 'e nei,her %$r
seas$na# w$r< n$r %$r s*eciJc *r$Eec,s, '&, ,$ which a JFe+ ,er3 is an essen,ia# an+ na,&ra#
a**&r,enanceL $verseas e3*#$)3en, c$n,rac,s, %$r $ne, ,$ which, wha,ever ,he na,&re $% ,he
engage3en,, ,he c$nce*, $% reg&#ar e3*#$)3en, wi,h a## ,ha, i, i3*#ies +$es n$, a**ear ever
,$ have 'een a**#ie+, Ar,ic#e !1( $% ,he La'$r C$+e n$,wi,hs,an+ingO a#s$ a**$in,3en,s ,$ ,he
*$si,i$ns $% +ean, assis,an, +ean, c$##ege secre,ar), *rinci*a#, an+ $,her a+3inis,ra,ive $Ices
in e+&ca,i$na# ins,i,&,i$ns, which are ') *rac,ice $r ,ra+i,i$n r$,a,e+ a3$ng ,he %ac&#,)
3e3'ers, an+ where JFe+ ,er3s are a necessi,) wi,h$&, which n$ reas$na'#e r$,a,i$n w$&#+
'e *$ssi'#e. Si3i#ar#), +es*i,e ,he *r$visi$ns $% Ar,ic#e !1(, P$#ic) Ins,r&c,i$ns N$. 1 $% ,he
Minis,er $% La'$r i3*#ici,#) rec$gni4e ,ha, cer,ain c$3*an) $Icia#s 3a) 'e e#ec,e+ %$r wha,
w$&#+ a3$&n, ,$ JFe+ *eri$+s, a, ,he eF*ira,i$n $% which ,he) w$&#+ have ,$ s,an+ +$wn, in
*r$vi+ing ,ha, ,hese $Icia#s, PF F 3a) #$se ,heir E$'s as *resi+en,, eFec&,ive vice5*resi+en, $r
vice *resi+en,, et. 'eca&se ,he s,$c<h$#+ers $r ,he '$ar+ $% +irec,$rs %$r $ne reas$n $r
an$,her +i+ n$, ree#ec, ,he3.P

A%,er c$nsi+ering *e,i,i$ners c$n,rac,s in ,heir en,ire,), as we## as ,he circ&3s,ances
s&rr$&n+ing *e,i,i$ners e3*#$)3en, a, INN:7ATA, ,he C$&r, is c$nvince+ ,ha, ,he ,er3s JFe+
,herein were 3ean, $n#) ,$ circ&3ven, *e,i,i$ners righ, ,$ sec&ri,) $% ,en&re an+ are,
,here%$re, inva#i+.
The c$n,rac,s $% e3*#$)3en, s&'3i,,e+ ') res*$n+en,s are high#) s&s*ec, %$r n$, $n#) 'eing
a3'ig&$&s, '&, a#s$ %$r a**earing ,$ 'e ,a3*ere+ wi,h.The) #a,er $n a+3i,,e+ in ,heir
Me3$ran+&3 J#e+ wi,h ,his C$&r, ,ha, *e,i,i$ners were $rigina##) hire+ $n 1- 9e'r&ar)
1999 '&, ,he *r$Eec, %$r which ,he) were e3*#$)e+ was c$3*#e,e+ 'e%$re ,he eF*ira,i$n $%
$ne )ear. Pe,i,i$ners were 3ere#) rehire+ $n - Se*,e3'er 1999 %$r a new *r$Eec,. Whi#e
res*$n+en,s s&'3i,,e+ e3*#$)3en, c$n,rac,s wi,h - Se*,e3'er 1999 as 'eginning +a,e $%
Page "-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
eKec,ivi,), i, is $'vi$&s ,ha, in $ne $% ,he3, ,he $rigina# 'eginning +a,e $% eKec,ivi,), 1-
9e'r&ar) 1999, was 3ere#) cr$sse+ $&, an+ re*#ace+ wi,h - Se*,e3'er 1999.
S&ch 3$+iJca,i$n an+ +enia# ') res*$n+en,s as ,$ ,he rea# 'eginning +a,e $% *e,i,i$ners
e3*#$)3en, c$n,rac,s ren+er ,he sai+ c$n,rac,s a3'ig&$&s. The c$n,rac,s ,he3se#ves s,a,e
,ha, ,he) w$&#+ 'e eKec,ive &n,i# 1- 9e'r&ar) !((( %$r a *eri$+ $% $ne )ear. I% ,he c$n,rac,s
,$$< eKec, $n#) $n - Se*,e3'er 1999, ,hen i,s *eri$+ $% eKec,ivi,) w$&#+ $'vi$&s#) 'e #ess
,han $ne )ear, $r %$r a *eri$+ $% $n#) a'$&, Jve 3$n,hs.
:'vi$&s#), res*$n+en,s wan,e+ ,$ 3a<e i, a**ear ,ha, *e,i,i$ners w$r<e+ %$r INN:7ATA %$r a
*eri$+ $% #ess ,han $ne )ear. The $n#) reas$n ,he C$&r, can +iscern %r$3 s&ch a 3$ve $n
res*$n+en,s *ar, is s$ ,ha, ,he) can *rec#&+e *e,i,i$ners %r$3 acA&iring reg&#ar s,a,&s 'ase+
$n ,heir e3*#$)3en, %$r $ne )ear. N$ne,he#ess, ,he C$&r, e3*hasi4es ,ha, i, has a#rea+)
%$&n+ ,ha, *e,i,i$ners sh$&#+ 'e c$nsi+ere+ reg&#ar e3*#$)ees $% INN:7ATA ') ,he na,&re $%
,he w$r< ,he) *er%$r3e+ as %$r3a,,ers, which was necessar) in ,he '&siness $r ,ra+e $%
INN:7ATA.Hence, ,he ,$,a# *eri$+ $% ,heir e3*#$)3en, 'ec$3es irre#evan,.
9&r,her a,,e3*,ing ,$ eF$nera,e i,se#% %r$3 an) #ia'i#i,) %$r i##ega# +is3issa#, INN:7ATA
c$n,en+s ,ha, *e,i,i$ners were *r$Eec, e3*#$)ees wh$se e3*#$)3en, cease+ a, ,he en+ $% a
s*eciJc *r$Eec, $r &n+er,a<ing. This c$n,en,i$n is s*eci$&s an+ +ev$i+ $% 3eri,.
Scr&,ini4ing *e,i,i$ners e3*#$)3en, c$n,rac,s wi,h INN:7ATA, h$wever, %ai#e+ ,$ revea# an)
3en,i$n ,herein $% wha, s*eciJc *r$Eec, $r &n+er,a<ing *e,i,i$ners were hire+ %$r. A#,h$&gh ,he
c$n,rac,s 3a+e genera# re%erences ,$ a *r$Eec,, s&ch *r$Eec, was nei,her na3e+ n$r +escri'e+
a, a## ,herein. The c$nc#&si$n ') ,he C$&r, $% A**ea#s ,ha, *e,i,i$ners were hire+ %$r ,he
Ear,hwe' *r$Eec, is n$, s&**$r,e+ ') an) evi+ence $n rec$r+. The $ne5)ear *eri$+ %$r which
*e,i,i$ners were hire+ was si3*#) JFe+ in ,he e3*#$)3en, c$n,rac,s wi,h$&, re%erence $r
c$nnec,i$n ,$ ,he *eri$+ reA&ire+ %$r ,he c$3*#e,i$n $% a *r$Eec,. M$re i3*$r,an,#), ,here is
a#s$ a +ear,h $% evi+ence ,ha, s&ch *r$Eec, $r &n+er,a<ing ha+ a#rea+) 'een c$3*#e,e+ $r
,er3ina,e+ ,$ E&s,i%) ,he +is3issa# $% *e,i,i$ners. In %ac,, *e,i,i$ners a##ege+ 5 an+ res*$n+en,s
%ai#e+ ,$ +is*&,e ,ha, *e,i,i$ners +i+ n$, w$r< $n E&s, $ne *r$Eec,, '&, c$n,in&$&s#) w$r<e+ %$r
a series $% *r$Eec,s %$r vari$&s c#ien,s $% INN:7ATA.
>n+er Sec,i$n , Ar,ic#e C8I $% ,he C$ns,i,&,i$n, i, is ,he *$#ic) $% ,he S,a,e ,$ ass&re ,he
w$r<ers $% sec&ri,) $% ,en&re an+ %ree ,he3 %r$3 ,he '$n+age $% &ncer,ain,) $% ,en&re w$ven
') s$3e e3*#$)ers in,$ ,heir c$n,rac,s $% e3*#$)3en,. This was eFac,#) ,he *&r*$se $% ,he
#egis#a,$rs in +ra%,ing Ar,ic#e !1( $% ,he La'$r C$+e ,$ *reven, ,he circ&3ven,i$n ')
&nscr&*&#$&s e3*#$)ers $% ,he e3*#$)ees righ, ,$ 'e sec&re in his ,en&re ') in+iscri3ina,e#)
an+ c$3*#e,e#) r&#ing $&, a## wri,,en an+ $ra# agree3en,s inc$nsis,en, wi,h ,he c$nce*, $%
reg&#ar e3*#$)3en,.
cra#aIn a##, res*$n+en,s insis,ence ,ha, i, can #ega##) +is3iss *e,i,i$ners $n ,he gr$&n+ ,ha,
,heir ,er3 $% e3*#$)3en, has eF*ire+ is &n,ena'#e. T$ rei,era,e, *e,i,i$ners, 'eing reg&#ar
e3*#$)ees $% INN:7ATA, are en,i,#e+ ,$ sec&ri,) $% ,en&re. In ,he w$r+s $% Ar,ic#e !"9 $% ,he
La'$r C$+eL

ART. !"9. Sec&ri,) $% Ten&re. In cases $% reg&#ar e3*#$)3en,, ,he e3*#$)er sha## n$, ,er3ina,e
,he services $% an e3*#$)ee eFce*, %$r a E&s, ca&se $r when a&,h$ri4e+ ') ,his Ti,#e. An
e3*#$)ee wh$ is &nE&s,#) +is3isse+ %r$3 w$r< sha## 'e en,i,#e+ ,$ reins,a,e3en, wi,h$&, #$ss
$% seni$ri,) righ,s an+ $,her *rivi#eges an+ ,$ his %&## 'ac<wages, inc#&sive $% a##$wances, an+
,$ his $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+ %r$3 ,he ,i3e his c$3*ensa,i$n
was wi,hhe#+ %r$3 hi3 &* ,$ ,he ,i3e $% his ac,&a# reins,a,e3en,.

The Pe,i,i$n %$r Review $n Certiorari is GRANTE7.
Page ""
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
2.. Agusan &el Nor(e #lec(ric Coo%era(ive v. Caga/%ang, G.R. No. 1)7)27, 7c(oer
1", 2""-
9ac,sL
Res*$n+en,s 6$e# Caga3*ang an+ G#enn Gar4$n s,ar,e+ w$r<ing as #ine3en %$r *e,i,i$ner
Ag&san +e# N$r,e E#ec,ric C$$*era,ive, Inc. =ANEC:? $n :c,$'er 1, 199(, &n+er an
e3*#$)3en, c$n,rac, which was %$r a *eri$+ n$, eFcee+ing ,hree 3$n,hs. The) were '$,h
a##ege+#) reA&ire+ ,$ w$r< eigh, h$&rs a +a) an+ s$3e,i3es $n S&n+a)s, ge,,ing a +ai#) sa#ar)
$% P1!!.((. When ,he c$n,rac, eF*ire+, ,he ,w$ were #ai+5$K %$r $ne ,$ Jve +a)s an+ ,hen
$r+ere+ ,$ re*$r, 'ac< ,$ w$r< '&, $n ,he 'asis $% E$' $r+ers. A%,er severa# renewa#s $% ,heir
E$' c$n,rac,s in ,he %$r3 $% E$' $r+ers %$r si3i#ar e3*#$)3en, *eri$+s $% a'$&, ,hree 3$n,hs
each, ,he sai+ c$n,rac,s even,&a##) eF*ire+ $n A*ri# 1, 1991 an+ 6&#) (, 1999. Res*$n+en,sS
c$n,rac,s were n$ #$nger renewe+, res&#,ing in ,heir #$ss $% e3*#$)3en,. Th&s, $n 6an&ar) 11,
!((1, res*$n+en,s J#e+ an i##ega# +is3issa# case agains, *e,i,i$ners 'e%$re ,he LA. The)
*ra)e+ %$r *a)3en, $% 'ac<wages, sa#ar) +iKeren,ia#, a##$wances, *re3i&3 %$r a##ege+ w$r<
+&ring h$#i+a)s an+ res, +a)s, service incen,ive #eave, an+ se*ara,i$n *a). LA r&#e+ ,ha, ,here
was i##ega# +is3issa#. H$wever, NLRC reverse+ ,he LAGs +ecisi$n. CA h$wever se, asi+e NLRCGs
+ecisi$n.
Iss&eL
W:N Caga3*ang an+ Gar4$n are reg&#ar e3*#$)eesBw$r<ers $% ,he *e,i,i$ner.
R&#ingL
SC +enie+ ,he *e,i,i$n.
I, he#+ ,ha, res*$n+en,s Caga3*ang an+ Gar4$n are +ee3e+ reg&#ar w$r<ers, an+ as s&ch
were i##ega##) +is3isse+.
There is n$ +is*&,e ,ha, ,he res*$n+en,sS w$r< as #ine3en was necessar) $r +esira'#e in ,he
&s&a# '&siness $% ANEC:. A++i,i$na##), ,he res*$n+en,s have 'een *er%$r3ing ,he E$' %$r a,
#eas, $ne )ear. The #aw +ee3s ,he re*ea,e+ an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as
s&Icien, evi+ence $% ,he necessi,), i% n$, in+is*ensa'i#i,), $% ,ha, ac,ivi,) ,$ ,he '&siness. As
he#+ in (ntegrated Contrator and Plumbing :or+s, (n. v. National Labor Relations
CommissionL
/110

The ,es, ,$ +e,er3ine whe,her e3*#$)3en, is reg&#ar $r n$, is ,he reas$na'#e c$nnec,i$n
'e,ween ,he *ar,ic&#ar ac,ivi,) *er%$r3e+ ') ,he e3*#$)ee in re#a,i$n ,$ ,he &s&a# '&siness $r
,ra+e $% ,he e3*#$)er. A#s$, i% ,he e3*#$)ee has 'een *er%$r3ing ,he E$' %$r a, #eas, $ne )ear,
even i% ,he *er%$r3ance is n$, c$n,in&$&s $r 3ere#) in,er3i,,en,, ,he #aw +ee3s ,he re*ea,e+
an+ c$n,in&ing nee+ %$r i,s *er%$r3ance as s&Icien, evi+ence $% ,he necessi,), i% n$,
in+is*ensa'i#i,) $% ,ha, ac,ivi,) ,$ ,he '&siness. Th&s, we he#+ ,ha, where ,he e3*#$)3en, $%
*r$Eec, e3*#$)ees is eF,en+e+ #$ng a%,er ,he s&**$se+ *r$Eec, has 'een Jnishe+, ,he
e3*#$)ees are re3$ve+ %r$3 ,he sc$*e $% *r$Eec, e3*#$)ees an+ are c$nsi+ere+ reg&#ar
e3*#$)ees.
Whi#e #eng,h $% ,i3e 3a) n$, 'e ,he c$n,r$##ing ,es, %$r *r$Eec, e3*#$)3en,, i, is vi,a# in
+e,er3ining i% ,he e3*#$)ee was hire+ %$r a s*eciJc &n+er,a<ing $r ,as<e+ ,$ *er%$r3
%&nc,i$ns vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er.
Page "1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Here, *riva,e res*$n+en, ha+ 'een a *r$Eec, e3*#$)ee severa# ,i3es $ver. His e3*#$)3en,
cease+ ,$ 'e c$,er3in$&s wi,h s*eciJc *r$Eec,s when he was re*ea,e+#) re5hire+ +&e ,$ ,he
+e3an+s $% *e,i,i$nerSs '&siness. Where %r$3 ,he circ&3s,ances i, is a**aren, ,ha, *eri$+s
have 'een i3*$se+ ,$ *rec#&+e ,he acA&isi,i$n $% ,en&ria# sec&ri,) ') ,he e3*#$)ee, ,he)
sh$&#+ 'e s,r&c< +$wn as c$n,rar) ,$ *&'#ic *$#ic), 3$ra#s, g$$+ c&s,$3s $r *&'#ic $r+er.
/1!0
Res*$n+en,s in ,he *resen, case 'eing reg&#ar e3*#$)ees, ANEC: as ,he e3*#$)er ha+ ,he
'&r+en $% *r$$% ,$ sh$w ,ha, ,he res*$n+en,sS ,er3ina,i$n was %$r a E&s, ca&se. >n%$r,&na,e#),
h$wever, wha, *e,i,i$ners +i+ was 3ere#) ,$ re%&se, wi,h$&, E&s,iJa'#e reas$n, ,$ renew
res*$n+en,sS w$r< c$n,rac,s %$r ,he *er%$r3ance $% wha, w$&#+ $,herwise 'e reg&#ar E$'s in
re#a,i$n ,$ ,he ,ra+e $r '&siness $% ,he %$r3er.
/10
S&ch c$n+&c, +is3a##) %a##s sh$r, $% ,he
reA&ire3en,s $% $&r #a'$r #aws regar+ing +is3issa#s. N$ ,win n$,ices $% ,er3ina,i$n were
iss&e+ ,$ ,he e3*#$)ees, hence ,he e3*#$)er +i+ n$, $'serve +&e *r$cess in +is3issing ,he3
%r$3 ,heir e3*#$)3en,. Their +is3issa#s were *a,en,#) i##ega#.
E3*#$)er is '&r+ene+ ,$ *r$ve E&s, ca&se %$r ,er3ina,ing ,he e3*#$)3en, $% i,s e3*#$)ee
wi,h c#ear an+ c$nvincing evi+ence. The wea<ness $% ,he e3*#$)eeSs +e%ense sh$&#+ n$,
$*era,e ,$ re#ieve n$r +ischarge ,he e3*#$)er $% i,s '&r+en ,$ *r$ve i,s charges *&rs&an, ,$
,he g&aran,) $% ,en&re gran,e+ ') ,he C$ns,i,&,i$n ,$ e3*#$)ees &n+er ,he La'$r C$+e. The
case $% ,he e3*#$)er 3&s, s,an+ $r %a## $n i,s $wn 3eri,s.
2). >illia/ <$ Cons(ruc(ion e(. al vs. 9rini&a&, GR No. 1-32.", March 1", 2"1"
9ac,sL
Res*$n+en, 6$rge R. Trini+a+ J#e+ a c$3*#ain, %$r i##ega# +is3issa# an+ &n*ai+ 'eneJ,s agains,
*e,i,i$ner Wi##ia3 >) C$ns,r&c,i$n C$r*$ra,i$n. Trini+a+ c#ai3e+ ,ha, he ha+ 'een w$r<ing
wi,h ,he #a,,er c$3*an) %$r 1- )ears since 1911 as +river $% i,s service vehic#e, +&3* ,r&c<,
an+ ,ransi, 3iFer. He ha+ signe+ severa# e3*#$)3en, c$n,rac,s wi,h ,he c$3*an) ,ha,
i+en,iJe+ hi3 as a *r$Eec, e3*#$)ee a#,h$&gh he ha+ a#wa)s 'een assigne+ ,$ w$r< $n $ne
*r$Eec, a%,er an$,her wi,h s$3e in,erva#s. Res*$n+en, Trini+a+ %&r,her a##ege+ ,ha, *e,i,i$ner
c$3*an) ,er3ina,e+ hi3 %r$3 w$r< a%,er i, sh&, +$wn $*era,i$ns 'eca&se $% #ac< $% *r$Eec,s.
He #earne+ #a,er, h$wever, ,ha, a#,h$&gh i, $*ene+ &* a *r$Eec, in Ba,angas, i, +i+ n$, hire hi3
'ac< %$r ,ha, *r$Eec,. Pe,i,i$ner c$3*an) c$&n,ere+ ,ha, i, was in ,he c$ns,r&c,i$n '&siness.
B) ,he na,&re $% s&ch '&siness, i, ha+ ,$ hire an+ engage ,he services $% *r$Eec, c$ns,r&c,i$n
w$r<ers, inc#&+ing res*$n+en, Trini+a+, wh$se e3*#$)3en,s ha+ ,$ 'e c$5,er3in$&s wi,h ,he
c$3*#e,i$n $% s*eciJc c$3*an) *r$Eec,s. 9$r ,his reas$n, ever) ,i3e ,he c$3*an) e3*#$)e+
Trini+a+, he ha+ ,$ eFec&,e an e3*#$)3en, c$n,rac, wi,h i,, ca##e+ Appointment as Pro'et
:or+er. Pe,i,i$ner c$3*an) s,resse+ ,ha, e3*#$)3en, in,erva#s $r ga*s were inheren, in ,he
c$ns,r&c,i$n '&siness. In c$3*#iance wi,h #a'$r r&#es, ,he c$3*an) s&'3i,,e+ an
es,a'#ish3en, ,er3ina,i$n re*$r, ,$ ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en, =7:LE?. The
La'$r Ar'i,er ren+ere+ a +ecisi$n, +is3issing res*$n+en, Trini+a+Gs c$3*#ain, %$r &nE&s,
+is3issa#. The La'$r Ar'i,er, h$wever, $r+ere+ *e,i,i$ner c$3*an) ,$ *a) Trini+a+ P1,2((.((
in &n*ai+ service incen,ive #eave, ,a<ing in,$ c$nsi+era,i$n ,he ,hree5)ear *rescri*,ive *eri$+
%$r 3$ne) c#ai3s. The La'$r Ar'i,er he#+ ,ha,, since Trini+a+ was a *r$Eec, e3*#$)ee an+ since
his c$3*an) s&'3i,,e+ ,he a**r$*ria,e es,a'#ish3en, ,er3ina,i$n re*$r, ,$ 7:LE, his #$ss $%
w$r< cann$, 'e regar+e+ as &nE&s, +is3issa#.
Iss&eL
Page "9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Whe,her $r n$, *e,i,i$ner c$3*an)Gs re*ea,e+ rehiring $% res*$n+en, Trini+a+ $ver severa#
)ears as *r$Eec, e3*#$)ee %$r i,s vari$&s *r$Eec,s a&,$3a,ica##) en,i,#e+ hi3 ,$ ,he s,a,&s $% a
reg&#ar e3*#$)ee.
R&#ingL
The ,es, %$r +is,ing&ishing a M*r$Eec, e3*#$)eeN %r$3 a Mreg&#ar e3*#$)eeN is whe,her $r n$,
he has 'een assigne+ ,$ carr) $&, a Ms*eciJc *r$Eec, $r &n+er,a<ing,N wi,h ,he +&ra,i$n an+
sc$*e $% his engage3en, s*eciJe+ a, ,he ,i3e his service is c$n,rac,e+. Here, i, is n$,
+is*&,e+ ,ha, *e,i,i$ner c$3*an) c$n,rac,e+ res*$n+en, Trini+a+Gs service ') s*eciJc *r$Eec,s
wi,h ,he +&ra,i$n $% his w$r< c#ear#) se, $&, in his e3*#$)3en, c$n,rac,s. He re3aine+ a
*r$Eec, e3*#$)ee regar+#ess $% ,he n&3'er $% )ears an+ ,he vari$&s *r$Eec,s he w$r<e+ %$r ,he
c$3*an). Genera##), #eng,h $% service *r$vi+es a %air )ar+s,ic< %$r +e,er3ining when an
e3*#$)ee ini,ia##) hire+ $n a ,e3*$rar) 'asis 'ec$3es a *er3anen, $ne, en,i,#e+ ,$ ,he
sec&ri,) an+ 'eneJ,s $% reg&#ari4a,i$n. B&, ,his s,an+ar+ wi## n$, 'e %air, i% a**#ie+ ,$ ,he
c$ns,r&c,i$n in+&s,r), si3*#) 'eca&se c$ns,r&c,i$n Jr3s cann$, g&aran,ee w$r< an+ %&n+ing
%$r i,s *a)r$##s 'e)$n+ ,he #i%e $% each *r$Eec,. An+ ge,,ing *r$Eec,s is n$, a 3a,,er $% c$&rse.
C$ns,r&c,i$n c$3*anies have n$ c$n,r$# $ver ,he +ecisi$ns an+ res$&rces $% *r$Eec,
*r$*$nen,s $r $wners. There is n$ c$ns,r&c,i$n c$3*an) ,ha, +$es n$, wish i, has s&ch
c$n,r$# '&, ,he rea#i,), &n+ers,$$+ ') c$ns,r&c,i$n w$r<ers, is ,ha, w$r< +e*en+e+ $n
+ecisi$ns an+ +eve#$*3en,s $ver which c$ns,r&c,i$n c$3*anies have n$ sa). Res*$n+en,
Trini+a+Gs series $% e3*#$)3en,s wi,h *e,i,i$ner c$3*an) were c$5,er3in$&s wi,h i,s *r$Eec,s.
When i,s B$ni Serran$5Ha,i*&nan In,erchange Pr$Eec, was Jnishe+, Trini+a+Gs e3*#$)3en,
en+e+ wi,h i,. He was n$, +is3isse+. His e3*#$)3en, c$n,rac, si3*#) en+e+ wi,h ,he *r$Eec,
%$r which he ha+ signe+ &*. His e3*#$)3en, his,$r) 'e#ies ,he c#ai3 ,ha, he c$n,in&$&s#)
w$r<e+ %$r ,he c$3*an). In,erva#s $r ga*s se*ara,e+ $ne c$n,rac, %r$3 an$,her. Pe,i,i$ner
c$3*an) nee+e+ $n#) ,$ sh$w ,he #as, s,a,&s $% Trini+a+Gs e3*#$)3en,, na3e#), ,ha, $% a
*r$Eec, e3*#$)ee &n+er a c$n,rac, ,ha, ha+ en+e+ an+ ,he c$3*an)Gs c$3*#iance wi,h ,he
re*$r,ing reA&ire3en, %$r ,he ,er3ina,i$n $% ,ha, e3*#$)3en,. In+ee+, '$,h ,he La'$r Ar'i,er
an+ ,he NLRC were sa,isJe+ ,ha, ,he %ac, $% *e,i,i$ner c$3*an)Gs c$3*#iance wi,h 7:LE :r+er
19 ha+ 'een *r$ve+ in ,his case.
WHERE9:RE, ,he C$&r, GRANTS ,he *e,i,i$n, an+ REINSTATES ,he +ecisi$n $% ,he Na,i$na#
La'$r Re#a,i$ns C$33issi$n which aIr3e+ ,he +ecisi$n $% ,he La'$r Ar'i,er.
27. 4acui(al vs. L.M. Ca/us #ngineering Cor%.,G.R. No. 17)7*-, Se%(e/er 1, 2"1"
9ac,sL
Pe,i,i$ners =LMCEC E3*#$)ees? J#e+ a omplaint for illegal dismissal an+ n$n5*a)3en, $%
3$ne,ar) 'eneJ,s agains, res*$n+en, LM Ca3&s Engineering C$r*. 'e%$re ,he Na,i$na# La'$r
Re#a,i$ns C$33issi$n =NLRC?. The e3*#$)ees a##ege+ ,ha, ,he) were i##ega##) +is3isse+ %r$3
e3*#$)3en, an+ ,ha, ,heir e3*#$)er %ai#e+ ,$ *a) ,he3 ,heir h$#i+a) *a), *re3i&3 *a) %$r
h$#i+a), res, +a), service incen,ive #eave *a), an+ 1,h 3$n,h *a) +&ring ,he eFis,ence an+
+&ra,i$n $% ,heir e3*#$)3en,. The) a#s$ averre+ ,ha, ,he) were n$, *r$vi+e+ wi,h sic< an+
vaca,i$n #eaves.
Res*$n+en,s +enie+ ,ha, *e,i,i$ners were i##ega##) +is3isse+ %r$3 e3*#$)3en,. *$e& laimed
t$at petitioners .ere pro'et emplo&ees an+, &*$n ,he c$3*#e,i$n $% each *r$Eec,, ,he) were
serve+ n$,ices $% *r$Eec, c$3*#e,i$n. The) c#ariJe+ ,ha, ,he ,er3ina,i$n $% *e,i,i$nersG
e3*#$)3en, was +&e ,$ ,he c$3*#e,i$n $% ,he *r$Eec,s %$r which ,he) were hire+.
Page 1(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Petitioners, $o.ever, ountered t$at t$e& .ere regular emplo&ees as t$e& $ad been engaged
to perform ativities .$i$ are usuall& neessar& or desirable in t$e usual business or trade of
L4C%C. The) +enie+ ,ha, ,he) were *r$Eec, $r c$n,rac,&a# e3*#$)ees 'eca&se ,heir
e3*#$)3en, was c$n,in&$&s an+ &nin,err&*,e+ %$r 3$re ,han $ne =1? )ear. 9ina##), ,he)
3ain,aine+ ,ha, ,he) were *ar, $% a w$r< *$$# %r$3 which LMCEC +rew i,s w$r<ers %$r i,s
vari$&s *r$Eec,s.
The La'$r Ar'i,er ren+ere+ a +ecisi$n +ec#aring ,he +is3issa# $% ,he c$3*#ainan,5e3*#$)ees
as ILLEGAL an+ ,he c$3*#ainan,s are en,i,#e+ ,$ reins,a,e3en, wi,h$&, 'ac< wages. The NLRC
3$+iJe+ ,he +ecisi$n $% ,he La'$r Ar'i,er an+ $r+ere+ ,he reins,a,e3en, $% ,he c$3*#ainan,s
wi,h #i3i,e+ 'ac<wages. The res*$n+en,s a**ea#e+ ,he +ecisi$n ,$ ,he C$&r, $% A**ea#s an+
,he a**e##a,e c$&r, he#+ ,ha, ,he c$3*#ainan,s are PR:6ECT EMPL:@EES an+ hence, ,here was
n$ i##ega# +is3issa#.
ISS>EL
Whe,her $r n$, ,he C$&r, $% A**ea#s is c$rrec, in c$nc#&+ing ,ha, ,he *e,i,i$ners are PR:6ECT
EMPL:@EES an+ ,ha, ,heir +is3issa# %r$3 e3*#$)3en, was #ega#
R>LINGL
The S&*re3e C$&r, s*ea<ing ,hr$&gh 6&s,ice Nach&ra answere+ in ,he NEGATI8E. Ar,ic#e
!1( $% ,he La'$r C$+e +is,ing&ishes a P*r$Eec, e3*#$)eeP %r$3 a Preg&#ar e3*#$)eeP in ,his
wiseL
Ar,ic#e !1(. Reg&#ar an+ cas&a# e3*#$)3en,.`The *r$visi$ns $% wri,,en agree3en, ,$ ,he
c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# agree3en, $% ,he *ar,ies, an e3*#$)3en,
sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies
which are &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er,
eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he
c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he
e3*#$)ee $r where ,he w$r< $r services ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n...FFF
The *rinci*a# ,es, &se+ ,$ +e,er3ine whe,her e3*#$)ees are *r$Eec, e3*#$)ees is whe,her $r
n$, ,he e3*#$)ees were assigne+ ,$ carr) $&, a s*eciJc *r$Eec, $r &n+er,a<ing, ,he +&ra,i$n $r
sc$*e $% which was s*eciJe+ a, ,he ,i3e ,he e3*#$)ees were engage+ %$r ,ha, *r$Eec,.
Even ,h$&gh ,he a'sence $% a wri,,en c$n,rac, +$es n$, ') i,se#% gran, reg&#ar s,a,&s ,$
*e,i,i$ners, su$ a ontrat is evidene t$at petitioners .ere informed of t$e duration and
sope of t$eir .or+ and t$eir status as pro'et emplo&ees. In ,his case, where n$ $,her
evi+ence was $Kere+, ,he a'sence $% ,he e3*#$)3en, c$n,rac,s raises a seri$&s A&es,i$n $%
whe,her ,he e3*#$)ees were *r$*er#) in%$r3e+ a, ,he $nse, $% ,heir e3*#$)3en, $% ,heir
s,a,&s as *r$Eec, e3*#$)ees.
Whi#e i, is ,r&e ,ha, res*$n+en,s *resen,e+ ,he e3*#$)3en, c$n,rac, $% 7ac&i,a#, ,he c$n,rac,
+$es n$, sh$w ,ha, he was in%$r3e+ $% ,he na,&re, as we## as ,he +&ra,i$n $% his e3*#$)3en,.
In %ac,, ,he +&ra,i$n $% ,he *r$Eec, %$r which he was a##ege+#) hire+ was n$, s*eciJe+ in ,he
c$n,rac,.
Hence, ,he 7is3issa# $% ,he *e,i,i$ners are +ec#are+ ILLEGAL.
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
2-. Milleniu/ #rec(ors Cor%. vs. Magallanes, G.R. No. 1-*3)2, Nove/er 1., 2"1"
9ac,sL
Res*$n+en, 8irgi#i$ Maga##anes s,ar,e+ w$r<ing in 1911 as a &,i#i,) 3an %$r La&renci,$ Ti&
=Ti&?, Chie% EFec&,ive :Icer $% Mi##enni&3 Erec,$rs C$r*$ra,i$n =*e,i,i$ner?, Ti&Ss %a3i#), an+
Henne,h C$ns,r&c,i$n C$r*$ra,i$n. He was assigne+ ,$ +iKeren, c$ns,r&c,i$n *r$Eec,s
&n+er,a<en ') *e,i,i$ner in Me,r$ Mani#a, ,he #as, $% which was %$r a '&i#+ing in Li'is, D&e4$n
Ci,). In 6&#) $% !((. he was ,$#+ n$, ,$ re*$r, %$r w$r< an)3$re a##ege+#) +&e ,$ $#+ age,
*r$3*,ing hi3 ,$ J#e $n A&g&s, -, !((. an i##ega# +is3issa# c$3*#ain, 1 'e%$re ,he La'$r
Ar'i,er.
Iss&eL
Whe,her $r n$, Maga##anesG +is3issa# vi$#a,es sec&ri,) $% ,en&re.
Arg&3en,sL
MEC
Res*$n+en, was a *r$Eec, e3*#$)ee wh$3 i, hire+ %$r a '&i#+ing *r$Eec, in Li'is $n 6an&ar) (
an+ which was in near c$3*#e,i$n $n A&g&s, , !((., when services were ,er3ina,e+. Sai+ a##
7:LE reA&ire3en,s were c$3*#ie+.
Pe,i,i$ner 3$ve+ %$r rec$nsi+era,i$n $% ,he NLRC +ecisi$n, c$n,en+ing ,ha, res*$n+en,Ss
3$,i$n %$r rec$nsi+era,i$n which i, ,rea,e+ as an a**ea# was n$, *er%ec,e+, i, having 'een
'e#a,e+#) J#e+O ,ha, ,here was n$ s,a,e3en, $% ,he +a,e $% recei*, $% ,he a**ea#e+ +ecisi$nO
an+ ,ha, i, #ac<e+ veriJca,i$n an+ c$*ies ,here$% were n$, %&rnishe+ ,he a+verse *ar,ies
R>LINGL
1. A *r$Eec, e3*#$)ee is $ne wh$se Pe3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r
&n+er,a<ing, ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he
engage3en, $% ,he e3*#$)ee $r where ,he w$r< $r service ,$ 'e *er%$r3e+ is seas$na# in
na,&re an+ ,he e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.P
As ,he C$&r, has c$nsis,en,#) he#+, ,he service $% *r$Eec, e3*#$)ees are c$,er3in&s /sic0 wi,h
,he *r$Eec, an+ 3a) 'e ,er3ina,e+ &*$n ,he en+ $r c$3*#e,i$n $% ,ha, *r$Eec, $r *r$Eec, *hase
%$r which ,he) were hire+. Reg&#ar e3*#$)ees, in c$n,ras,, enE$) sec&ri,) $% ,en&re an+ are
en,i,#e+ ,$ h$#+ $n ,$ ,heir w$r< $r *$si,i$n &n,i# ,heir services are ,er3ina,e+ ') an) $% ,he
3$+es rec$gni4e+ &n+er ,he La'$r C$+e. =e3*hasis an+ &n+ersc$ring s&**#ie+?
Ass&3ing arg&en+$ ,ha, *e,i,i$ner hire+ res*$n+en, ini,ia##) $n a *er *r$Eec, 'asis, his
c$n,in&e+ rehiring, as sh$wn ') ,he sa3*#e *a)r$##s c$nver,e+ his s,a,&s ,$ ,ha, $% a reg&#ar
e3*#$)ee
!. In #a'$r cases, r&#es $% *r$ce+&re sh$&#+ n$, 'e a**#ie+ in a ver) rigi+ an+ ,echnica# sense.
Technica#i,ies sh$&#+ n$, 'e *er3i,,e+ ,$ s,an+ in ,he wa) $% eA&i,a'#) an+ c$3*#e,e#)
res$#ving ,he righ,s an+ $'#iga,i$ns $% ,he *ar,ies. Where ,he en+s $% s&'s,an,ia# E&s,ice sha##
'e 'e,,er serve+, ,he a**#ica,i$n $% ,echnica# r&#es $% *r$ce+&re 3a) 'e re#aFe+.
As ,$ ,he +e%ec,ive veriJca,i$n in ,he a**ea# 3e3$ran+&3 'e%$re ,he NLRC, ,he sa3e
#i'era#i,) a**#ies. A%,er a##, ,he reA&ire3en, regar+ing veriJca,i$n $% a *#ea+ing is %$r3a#, n$,
E&ris+ic,i$na#.

WHERE9:RE, ,he *e,i,i$n is 7ENIE7.
29. #B74<S !N9#RNA9!7NAL C7NS9R<C9!7N C7R37RA9!7N vs. G<!LL#RM7
'!SC7C@7 e(. al.G.R. No. 1))1"9, 6eruar$ 23, 2"11

Page 1!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
9ac,sL
EF$+&s In,erna,i$na# C$ns,r&c,i$n C$r*$ra,i$n $',aine+ a c$n,rac, %r$3 7&,ch B$) Phi#i**ines,
Inc. %$r ,he *ain,ing $% ,he I3*eria# S<) Gar+en #$ca,e+ in Bin$n+$, Mani#a. 7&,ch B$) awar+e+
an$,her c$n,rac, ,$ EF$+&s %$r ,he *ain,ing $% PaciJc P#a4a, T$wers in 9$r, B$ni%aci$, Tag&ig
Ci,). In ,he %&r,herance $% i,s '&siness, EF$+&s hire+ res*$n+en,s as *ain,ers $n +iKeren,
+a,es.
:n N$ve3'er !", !(((, res*$n+en,s J#e+ a c$3*#ain, %$r i##ega# +is3issa# an+ n$n5*a)3en, $%
h$#i+a) *a), service incen,ive #eave *a), 1,h 3$n,h *a) an+ nigh,5shi%, +iKeren,ia# *a).
Pe,i,i$ners +enie+ res*$n+en,sS a##ega,i$ns. As regar+s Greg$ri$, *e,i,i$ners averre+ ,ha, he
a'sen,e+ hi3se#% %r$3 w$r< an+ a**#ie+ as a *ain,er wi,h SAEI5EEI which is ,he genera#
'&i#+ing c$n,rac,$r $% PaciJc P#a4a T$wers. Since ,hen, he never re*$r,e+ 'ac< ,$ w$r<.
G&i##er3$ a'sen,e+ hi3se#% %r$3 w$r< wi,h$&, #eave. When he re*$r,e+ %$r w$r< ,he %$##$wing
+a), he was re*ri3an+e+ s$ he w$r<e+ $n#) ha#%5+a) an+ ,herea%,er was &nhear+ $% &n,i# ,he
J#ing $% ,he ins,an, c$3*#ain,.
9ernan+$, 9er+inan+, an+ Mig&e# were ca&gh, ea,ing +&ring w$r<ing h$&rs %$r which ,he) were
re*ri3an+e+ ') ,heir %$re3an. Since ,hen ,he) n$ #$nger re*$r,e+ %$r w$r<.
The La'$r Ar'i,er eF$nera,e+ EF$+&s %r$3 ,he charge $% i##ega# +is3issa# as res*$n+en,s ch$se
n$, ,$ re*$r, %$r w$r<. Since ,here is nei,her i##ega# +is3issa# n$r a'an+$n3en, $% E$',
res*$n+en,s were $r+ere+ 'e reins,a,e+ '&, wi,h$&, an) 'ac<wages.
Iss&esL
W:N res*$n+en,s were i##ega##) +is3isse+ %$r a'an+$n3en, $% w$r<
W:N ,he) are reg&#ar e3*#$)ees, ,h&s en,i,#e+ ,$ reins,a,e3en,
R&#ingL
=1? N$. There was n$ +is3issa#, 3&ch #ess i##ega#, an+ ,here was a#s$ n$ a'an+$n3en, $% E$' ,$
s*ea< $%.
As %$&n+ ') ,he La'$r Ar'i,er, ,here was n$ evi+ence ,ha, res*$n+en,s were +is3isse+ n$r
were ,he) *reven,e+ %r$3 re,&rning ,$ ,heir w$r<. I, was $n#) res*$n+en,sS &ns&'s,an,ia,e+
c$nc#&si$n ,ha, ,he) were +is3isse+. As a 3a,,er $% %ac,, res*$n+en,s c$&#+ n$, na3e ,he
*ar,ic&#ar *ers$n wh$ eKec,e+ ,heir +is3issa# an+ &n+er wha, *ar,ic&#ar circ&3s,ances.
A'sen, an) sh$wing $% an $ver, $r *$si,ive ac, *r$ving ,ha, *e,i,i$ners ha+ +is3isse+
res*$n+en,s, ,he #a,,ersS c#ai3 $% i##ega# +is3issa# cann$, 'e s&s,aine+. In+ee+, a c&rs$r)
eFa3ina,i$n $% ,he rec$r+s revea# n$ i##ega# +is3issa# ,$ s*ea< $%.
The La'$r Ar'i,er is a#s$ c$rrec, in r&#ing ,ha, ,here was n$ a'an+$n3en, $n ,he *ar, $%
res*$n+en,s ,ha, w$&#+ E&s,i%) ,heir +is3issa# %r$3 ,heir e3*#$)3en,.
A'an+$n3en, is ,he +e#i'era,e an+ &nE&s,iJe+ re%&sa# $% an e3*#$)ee ,$ res&3e his
e3*#$)3en,. I, is a se,,#e+ r&#e ,ha, 3ere a'sence $r %ai#&re ,$ re*$r, %$r w$r< is n$, en$&gh
,$ a3$&n, ,$ a'an+$n3en, $% w$r<. T$ c$ns,i,&,e a'an+$n3en, $% w$r<, ,w$ e#e3en,s 3&s,
c$nc&rL
,he e3*#$)ee 3&s, have %ai#e+ ,$ re*$r, %$r w$r< $r 3&s, have 'een a'sen, wi,h$&, va#i+ $r
E&s,iJa'#e reas$n an+
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,here 3&s, have 'een a c#ear in,en,i$n $n ,he *ar, $% ,he e3*#$)ee ,$ sever ,he e3*#$)er5
e3*#$)ee re#a,i$nshi* 3ani%es,e+ ') s$3e $ver, ac,.
I, is ,he e3*#$)er wh$ has ,he '&r+en $% *r$$% ,$ sh$w a +e#i'era,e an+ &nE&s,iJe+ re%&sa# $%
,he e3*#$)ee ,$ res&3e his e3*#$)3en, wi,h$&, an) in,en,i$n $% re,&rning.P I, is ,here%$re
inc&3'en, &*$n *e,i,i$ners ,$ ascer,ain ,he res*$n+en,sS in,eres, $r n$n5in,eres, in ,he
c$n,in&ance $% ,heir e3*#$)3en,. H$wever, *e,i,i$ners %ai#e+ ,$ +$ s$.
Pe,i,i$ners *$si, ,ha, ,he reins,a,e3en, $% res*$n+en,s ,$ ,heir %$r3er *$si,i$ns, which were
n$ #$nger eFis,ing, is i3*$ssi'#e, high#) &n%air an+ &nE&s,. The *r$Eec, was a#rea+) c$3*#e,e+
') *e,i,i$ners, having c$3*#e,e+ ,heir ,as<s, ,heir *$si,i$ns a&,$3a,ica##) cease+ ,$ eFis,.
C$nseA&en,#), ,here were n$ 3$re *$si,i$ns where ,he) can 'e reins,a,e+ as *ain,ers.
=!? Res*$n+en,s are reg&#ar e3*#$)ees $% *e,i,i$ners.
I, is c#ear %r$3 ,he rec$r+s ,ha, when $ne *r$Eec, is c$3*#e,e+, res*$n+en,s were
a&,$3a,ica##) ,rans%erre+ ,$ ,he neF, *r$Eec, awar+e+ ,$ *e,i,i$ners. There was n$
e3*#$)3en, agree3en, given ,$ res*$n+en,s which c#ear#) s*e##e+ $&, ,he +&ra,i$n $% ,heir
e3*#$)3en,, ,he s*eciJc w$r< ,$ 'e *er%$r3e+ an+ ,ha, s&ch is 3a+e c#ear ,$ ,he3 a, ,he
,i3e $% hiring. I, is n$w ,$$ #a,e %$r *e,i,i$ners ,$ c#ai3 ,ha, res*$n+en,s are *r$Eec,
e3*#$)ees wh$se e3*#$)3en, is c$,er3in$&s wi,h each *r$Eec, $r *hase $% ,he *r$Eec, ,$
which ,he) are assigne+.
N$ne,he#ess, ass&3ing ,ha, res*$n+en,s were ini,ia##) hire+ as *r$Eec, e3*#$)ees, a *r$Eec,
e3*#$)ee 3a) acA&ire ,he s,a,&s $% a reg&#ar e3*#$)ee.
The evi+ence $n rec$r+ sh$ws ,ha, res*$n+en,s were e3*#$)e+ an+ assigne+ c$n,in&$&s#) ,$
,he vari$&s *r$Eec,s $% *e,i,i$ners. As *ain,ers, ,he) *er%$r3e+ ac,ivi,ies which were
necessar) an+ +esira'#e in ,he &s&a# '&siness $% *e,i,i$ners, wh$ are engage+ in
s&'c$n,rac,ing E$'s %$r *ain,ing $% resi+en,ia# &ni,s, c$n+$3ini&3 an+ c$33ercia# '&i#+ings.
As reg&#ar e3*#$)ees, res*$n+en,s are en,i,#e+ ,$ 'e reins,a,e+ wi,h$&, #$ss $% seni$ri,)
righ,s.
Res*$n+en,s are a#s$ en,i,#e+ ,$ ,heir 3$ne) c#ai3s s&ch as ,he *a)3en, $% h$#i+a) *a),
service incen,ive #eave *a), an+ 1,h 3$n,h *a). H$wever, ,he) cann$, 'e en,i,#e+ ,$
'ac<wages. In cases where ,here is n$ evi+ence $% +is3issa#, ,he re3e+) is reins,a,e3en, '&,
wi,h$&, 'ac<wages.
3". Le$(e Geo(her/al 3ower 3rogressive #/%lo$ees <nion v. 3hil Na(ional 7il Co.,
G.R. No. 17)3.1, March 3", 2"11
9ac,sL
/Res*$n+en, Phi#i**ine Na,i$na# :i# C$r*$ra,i$n05Energ) 7eve#$*3en, C$r*$ra,i$n /PN:C5
E7C0 is a g$vern3en,5$wne+ an+ c$n,r$##e+ c$r*$ra,i$n engage+ in eF*#$ra,i$n, +eve#$*3en,,
&,i#i4a,i$n, genera,i$n an+ +is,ri'&,i$n $% energ) res$&rces #i<e ge$,her3a# energ). Pe,i,i$ner
is a #egi,i3a,e #a'$r $rgani4a,i$n, +&#) regis,ere+ wi,h ,he 7e*ar,3en, $% La'$r an+
E3*#$)3en, =7:LE? Regi$na# :Ice N$. 8III, Tac#$'an Ci,). A3$ng /res*$n+en,Ss0 ge$,her3a#
*r$Eec,s is ,he Le),e Ge$,her3a# P$wer Pr$Eec, #$ca,e+ a, ,he Grea,er T$ng$nan Ge$,her3a#
Reserva,i$n in Le),e. The sai+ Pr$Eec, is c$3*$se+ $% ,he T$ng$nan 1 Ge$,her3a# Pr$Eec,
=T1GP? an+ ,he Le),e Ge$,her3a# Pr$+&c,i$n 9ie#+ Pr$Eec, =LGP9? which *r$vi+e ,he *$wer an+
Page 1.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e#ec,rici,) nee+e+ n$, $n#) in ,he *r$vinces an+ ci,ies $% Cen,ra# an+ Eas,ern 8isa)as =Regi$n
8II an+ 8III?, '&, a#s$ in ,he is#an+ $% L&4$n as we##. Th&s, ,he /res*$n+en,0 hire+ an+ e3*#$)e+
h&n+re+s $% e3*#$)ees $n a c$n,rac,&a# 'asis, where'), ,heir e3*#$)3en, was $n#) g$$+ &*
,$ ,he c$3*#e,i$n $r ,er3ina,i$n $% ,he *r$Eec, an+ w$&#+ a&,$3a,ica##) eF*ire &*$n ,he
c$3*#e,i$n $% s&ch *r$Eec,. MaE$ri,) $% ,he e3*#$)ees hire+ ') /res*$n+en,0 in i,s Le),e
Ge$,her3a# P$wer Pr$Eec,s ha+ 'ec$3e 3e3'ers $% *e,i,i$ner. In view $% ,ha, circ&3s,ance,
,he *e,i,i$ner +e3an+s %r$3 ,he /res*$n+en,0 %$r rec$gni,i$n $% i, as ,he c$##ec,ive 'argaining
agen, $% sai+ e3*#$)ees an+ %$r a CBA neg$,ia,i$n wi,h i,. H$wever, ,he /res*$n+en,0 +i+ n$,
hee+ s&ch +e3an+s $% ,he *e,i,i$ner. S$3e,i3e in 1991 when ,he *r$Eec, was a'$&, ,$ 'e
c$3*#e,e+, ,he /res*$n+en,0 *r$cee+e+ ,$ serve N$,ices $% Ter3ina,i$n $% E3*#$)3en, &*$n
,he e3*#$)ees wh$ are 3e3'ers $% ,he *e,i,i$ner. :n 7ece3'er !1, 1991, ,he *e,i,i$ner J#e+
a N$,ice $% S,ri<e wi,h 7:LE agains, ,he /res*$n+en,0 $n ,he gr$&n+ $% *&r*$r,e+ c$33issi$n
') ,he #a,,er $% &n%air #a'$r *rac,ice %$r Pre%&sa# ,$ 'argain c$##ec,ive#), &ni$n '&s,ing an+
3ass ,er3ina,i$n.P :n ,he sa3e +a), ,he *e,i,i$ner +ec#are+ a s,ri<e an+ s,age+ s&ch s,ri<e.
T$ aver, an) w$r< s,$**age, ,hen Secre,ar) $% La'$r Bienveni+$ E. Lag&es3a in,ervene+ an+
iss&e+ ,he :r+er, +a,e+ 6an&ar) ., 1999, cer,i%)ing ,he #a'$r +is*&,e ,$ ,he NLRC %$r
c$3*&#s$r) ar'i,ra,i$n. Acc$r+ing#), a## ,he s,ri<ing w$r<ers were +irec,e+ ,$ re,&rn ,$ w$r<
wi,hin ,we#ve =1!? h$&rs %r$3 recei*, $% ,he :r+er an+ %$r ,he /res*$n+en,0 ,$ acce*, ,he3
'ac< &n+er ,he sa3e ,er3s an+ c$n+i,i$ns $% e3*#$)3en, *ri$r ,$ ,he s,ri<e. 9&r,her, ,he
*ar,ies were +irec,e+ ,$ cease an+ +esis, %r$3 c$33i,,ing an) ac, ,ha, w$&#+ eFacer'a,e ,he
si,&a,i$n. H$wever, +es*i,e earnes, eK$r,s $n ,he *ar, $% ,he Secre,ar) $% La'$r an+
E3*#$)3en, ,$ se,,#e ,he +is*&,e a3ica'#), ,he *e,i,i$ner re3aine+ a+a3an, an+
&nreas$na'#e in i,s *$si,i$n, ca&sing ,he %ai#&re $% ,he neg$,ia,i$n ,$war+s a *eace%&#
c$3*r$3ise. In eKec,, ,he *e,i,i$ner +i+ n$, a'i+e ') /,he0 ass&3*,i$n $r+er iss&e+ ') ,he
Secre,ar) $% La'$r. C$nseA&en,#), $n 6an&ar) 12, 1999, ,he /res*$n+en,0 J#e+ a C$3*#ain, %$r
S,ri<e I##ega#i,), 7ec#ara,i$n $% L$ss $% E3*#$)3en, an+ 7a3ages a, ,he NLRC5RAB 8III in
Tac#$'an Ci,) an+ a, ,he sa3e ,i3e, J#e+ a Pe,i,i$n %$r Cance##a,i$n $% Pe,i,i$nerSs Cer,iJca,e $%
Regis,ra,i$n wi,h 7:LE, Regi$na# :Ice N$. 8III. The ,w$ cases were #a,er $n c$ns$#i+a,e+
*&rs&an, ,$ ,he New NLRC R&#es $% Pr$ce+&re. The c$ns$#i+a,e+ case was +$c<e,e+ as NLRC
Cer,iJe+ Case N$. 85(!599 =NCMB5RAB 8III5NS51!5(19(591O RAB Case N$. 8III515((19599?. The
sai+ cer,iJe+ case was in+$rse+ ,$ ,he NLRC .
,h
7ivisi$n in Ce'& Ci,) $n 6&ne !1, 1999 %$r ,he
*r$*er +is*$si,i$n ,here$%.
Iss&eLS
Whe,her ,he $Icers an+ 3e3'ers $% *e,i,i$ner >ni$n are *r$Eec, e3*#$)ees $% res*$n+en,O
an+
Whe,her ,he $Icers an+ 3e3'ers $% *e,i,i$ner >ni$n engage+ in an i##ega# s,ri<e.
R&#ingL
:n ,he Jrs, iss&e, *e,i,i$ner >ni$n c$n,en+s ,ha, i,s $Icers an+ 3e3'ers *er%$r3e+ ac,ivi,ies
,ha, were &s&a##) necessar) an+ +esira'#e ,$ res*$n+en,Ss &s&a# '&siness. In %ac,, *e,i,i$ner
>ni$n rei,era,es ,ha, i,s $Icers an+ 3e3'ers were assigne+ ,$ ,he Constrution
!epartment $% res*$n+en, as car*en,ers an+ 3as$ns, an+ ,$ $,her E$'s *&rs&an, ,$ civi#
w$r<s, which are &s&a##) necessar) an+ +esira'#e ,$ ,he +e*ar,3en,. Pe,i,i$ner >ni$n #i<ewise
*$in,s $&, ,ha, ,here was n$ in,erva# in ,he e3*#$)3en, c$n,rac, $% i,s $Icers an+ 3e3'ers,
wh$ were a## e3*#$)ees $% res*$n+en,, which #ac< $% in,erva#, %$r *e,i,i$ner >ni$n, P3ani%es,s
,ha, ,he a&n+er,a<ingS is &s&a##) necessar) an+ +esira'#e ,$ ,he &s&a# ,ra+e $r '&siness $% ,he
e3*#$)er.P
We cann$, s&'scri'e ,$ ,he view ,a<en ') *e,i,i$ner >ni$n.
Page 12
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The +is,inc,i$n 'e,ween a reg&#ar an+ a *r$Eec, e3*#$)3en, is *r$vi+e+ in Ar,ic#e !1(,
*aragra*h 1, $% ,he La'$r C$+eL
ART. !1(. Regular and Casual %mplo&ment.55 The *r$visi$ns $% wri,,en agree3en, ,$ ,he
c$n,rar) n$,wi,hs,an+ing an+ regar+#ess $% ,he $ra# agree3en, $% ,he *ar,ies, an e3*#$)3en,
sha## 'e +ee3e+ ,$ 'e reg&#ar where ,he e3*#$)ee has 'een engage+ ,$ *er%$r3 ac,ivi,ies
which are &s&a##) necessar) $r +esira'#e in ,he &s&a# '&siness $r ,ra+e $% ,he
e3*#$)er, eFce*, where ,he e3*#$)3en, has 'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing
,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $%
,he e3*#$)ee $r where ,he w$r< $r service ,$ 'e *er%$r3e+ is seas$na# in na,&re an+ ,he
e3*#$)3en, is %$r ,he +&ra,i$n $% ,he seas$n.
An e3*#$)3en, sha## 'e +ee3e+ ,$ 'e cas&a# i% i, is n$, c$vere+ ') ,he *rece+ing *aragra*hL
Pr$vi+e+, Tha,, an) e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $% service, whe,her s&ch
service is c$n,in&$&s $r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he
ac,ivi,) in which he is e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch ac,&a##) eFis,s.
The %$reg$ing c$n,e3*#a,es %$&r =.? <in+s $% e3*#$)eesL =a? regular e3*#$)ees $r ,h$se wh$
have 'een Pengage+ ,$ *er%$r3 ac,ivi,ies which are &s&a##) necessar) $r +esira'#e in ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)erPO ='? pro'et e3*#$)ees $r ,h$se Pwh$se e3*#$)3en, has
'een JFe+ %$r a s*eciJc *r$Eec, $r &n+er,a<ing/,0 ,he c$3*#e,i$n $r ,er3ina,i$n $% which has
'een +e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he e3*#$)eePO =c? seasonal e3*#$)ees $r
,h$se wh$ w$r< $r *er%$r3 services which are seas$na# in na,&re, an+ ,he e3*#$)3en, is %$r
,he +&ra,i$n $% ,he seas$nO an+ =+? asual e3*#$)ees $r ,h$se wh$ are n$, reg&#ar, *r$Eec,, $r
seas$na# e3*#$)ees. 6&ris*r&+ence has a++e+ a J%,h <in+55 a JFe+5,er3 e3*#$)ee.
Ar,ic#e !1( $% ,he La'$r C$+e, as w$r+e+, es,a'#ishes ,ha, ,he na,&re $% ,he e3*#$)3en, is
+e,er3ine+ ') #aw, regar+#ess $% an) c$n,rac, eF*ressing $,herwise. The s&*re3ac) $% ,he #aw
$ver ,he n$3enc#a,&re $% ,he c$n,rac, an+ ,he s,i*&#a,i$ns c$n,aine+ ,herein is ,$ 'ring ,$ #i%e
,he *$#ic) enshrine+ in ,he C$ns,i,&,i$n ,$ PaK$r+ %&## *r$,ec,i$n ,$ #a'$r.P Th&s, #a'$r
c$n,rac,s are *#ace+ $n a higher *#ane ,han $r+inar) c$n,rac,sO ,hese are i3'&e+ wi,h *&'#ic
in,eres, an+ ,here%$re s&'Eec, ,$ ,he *$#ice *$wer $% ,he S,a,e.
H$wever, n$,wi,hs,an+ing ,he %$reg$ing i,era,i$ns, *r$Eec, e3*#$)3en, c$n,rac,s which JF ,he
e3*#$)3en, %$r a s*eciJc *r$Eec, $r &n+er,a<ing re3ain va#i+ &n+er ,he #awL F F F B) en,ering
in,$ s&ch a c$n,rac,, an e3*#$)ee is +ee3e+ ,$ &n+ers,an+ ,ha, his e3*#$)3en, is
c$,er3in$&s wi,h ,he *r$Eec,. He 3a) n$, eF*ec, ,$ 'e e3*#$)e+ c$n,in&$&s#) 'e)$n+ ,he
c$3*#e,i$n $% ,he *r$Eec,. I, is $% E&+icia# n$,ice ,ha, *r$Eec, e3*#$)ees engage+ %$r 3an&a#
services $r ,h$se %$r s*ecia# s<i##s #i<e ,h$se $% car*en,ers $r 3as$ns, are, as a r&#e,
&nsch$$#e+. H$wever, ,his %ac, a#$ne is n$, a va#i+ reas$n %$r 'es,$wing s*ecia# ,rea,3en, $n
,he3 $r %$r inva#i+a,ing a c$n,rac, $% e3*#$)3en,. Pr$Eec, e3*#$)3en, c$n,rac,s are n$,
#$*si+e+ agree3en,s in %av$r $% $n#) $ne *ar,) ,here,$. The e3*#$)erSs in,eres, is eA&a##)
i3*$r,an, as ,ha, $% ,he e3*#$)ee/sS0 %$r ,heirs is ,he in,eres, ,ha, *r$*e#s ec$n$3ic ac,ivi,).
Whi#e i, 3a) 'e ,r&e ,ha, i, is ,he e3*#$)er wh$ +ra%,s *r$Eec, e3*#$)3en, c$n,rac,s wi,h i,s
'&siness in,eres, as $verri+ing c$nsi+era,i$n, s&ch c$n,rac,s +$ n$,, $% necessi,), *reE&+ice
,he e3*#$)ee. Nei,her is ,he e3*#$)ee #e%, he#*#ess ') a *reE&+icia# e3*#$)3en, c$n,rac,.
A%,er a##, &n+er ,he #aw, ,he in,eres, $% ,he w$r<er is *ara3$&n,.
In ,he case a, 'ar, ,he rec$r+s revea# ,ha, ,he $Icers an+ ,he 3e3'ers $% *e,i,i$ner >ni$n
signe+ e3*#$)3en, c$n,rac,s in+ica,ing ,he s*eciJc *r$Eec, $r *hase $% w$r< %$r which ,he)
were hire+, wi,h a JFe+ *eri$+ $% e3*#$)3en,. The NLRC c$rrec,#) +is*$se+ $% ,his iss&eL A
+ee*er eFa3ina,i$n a#s$ sh$ws ,ha, /,he in+ivi+&a# 3e3'ers $% *e,i,i$ner >ni$n0 in+ee+
signe+ an+ acce*,e+ ,he /e3*#$)3en, c$n,rac,s0 %ree#) an+ v$#&n,ari#). N$ evi+ence was
*resen,e+ ') /*e,i,i$ner0 >ni$n ,$ *r$ve i3*r$*er *ress&re $r &n+&e inT&ence when ,he)
en,ere+, *er%ec,e+ an+ c$ns&33a,e+ /,he e3*#$)3en,0 c$n,rac,s. In %ac,, i, was c#ear#)
es,a'#ishe+ in ,he c$&rse $% ,he ,ria# $% ,his case, as eF*#aine+ ') n$ #ess ,han ,he Presi+en, $%
Page 1-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
/*e,i,i$ner0 >ni$n, ,ha, ,he c$n,rac,s $% e3*#$)3en, were rea+, c$3*rehen+e+, an+
v$#&n,ari#) acce*,e+ ') ,he3. F F F.
As c#ear#) sh$wn ') /*e,i,i$ner0 >ni$nSs $wn a+3issi$n, '$,h *ar,ies ha+ eFec&,e+ ,he
c$n,rac,s %ree#) an+ v$#&n,ari#) wi,h$&, %$rce, +&ress $r ac,s ,en+ing ,$ vi,ia,e ,he w$r<er/sS0
c$nsen,. Th&s, we see n$ reas$n n$, ,$ h$n$r an+ give eKec, ,$ ,he ,er3s an+ c$n+i,i$ns
s,i*&#a,e+ ,herein. F F F.
Th&s, we are har+ *resse+ ,$ Jn+ ca&se ,$ +is,&r' ,he Jn+ings $% ,he NLRC which are
s&**$r,e+ ') s&'s,an,ia# evi+ence.
I, is we##5se,,#e+ in E&ris*r&+ence ,ha, %ac,&a# Jn+ings $% a+3inis,ra,ive $r A&asi5E&+icia# '$+ies,
which are +ee3e+ ,$ have acA&ire+ eF*er,ise in 3a,,ers wi,hin ,heir res*ec,ive E&ris+ic,i$ns,
are genera##) acc$r+e+ n$, $n#) res*ec, '&, even Jna#i,), an+ 'in+ ,he C$&r, when s&**$r,e+
') s&'s,an,ia# evi+ence. R&#e 1, Sec,i$n 2 +eJnes s&'s,an,ia# evi+ence as P,ha, a3$&n, $%
re#evan, evi+ence which a reas$na'#e 3in+ 3igh, acce*, as a+eA&a,e ,$ E&s,i%) a c$nc#&si$n.P
C$nsis,en, ,herewi,h is ,he +$c,rine ,ha, ,his C$&r, is n$, a ,rier $% %ac,s, an+ ,his is s,ric,#)
a+here+ ,$ in #a'$r cases. We 3a) ,a<e c$gni4ance $% an+ res$#ve %ac,&a# iss&es, $n#) when
,he Jn+ings $% %ac, an+ c$nc#&si$ns $% #aw $% ,he La'$r Ar'i,er $r ,he NLRC are inc$nsis,en,
wi,h ,h$se $% ,he CA.
In ,he case a, 'ar, '$,h ,he NLRC an+ ,he CA were $ne in ,he c$nc#&si$n ,ha, ,he $Icers an+
,he 3e3'ers $% *e,i,i$ner >ni$n were *r$Eec, e3*#$)ees. N$ne,he#ess, *e,i,i$ner >ni$n insis,s
,ha, ,he) were reg&#ar e3*#$)ees since ,he) *er%$r3e+ w$r< which was &s&a##) necessar) $r
+esira'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he Constrution !epartment $% res*$n+en,.
P$#ic) Ins,r&c,i$n N$. 1! $% ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en, +isc#$ses ,ha, ,he
c$nce*, $% reg&#ar an+ cas&a# e3*#$)ees was +esigne+ ,$ *&, an en+ ,$ cas&a# e3*#$)3en, in
reg&#ar E$'s, which has 'een a'&se+ ') 3an) e3*#$)ers ,$ *reven, s$ 5 ca##e+ cas&a#s %r$3
enE$)ing ,he 'eneJ,s $% reg&#ar e3*#$)ees $r ,$ *reven, cas&a#s %r$3 E$ining &ni$ns. The
sa3e ins,r&c,i$ns sh$w ,ha, ,he *r$vis$ in ,he sec$n+ *aragra*h $% Ar,. !1( was n$, +esigne+
,$ s,iTe s3a##5sca#e '&sinesses n$r ,$ $**ress agric&#,&ra# #an+ $wners ,$ %&r,her ,he in,eres,s
$% #a'$rers, whe,her agric&#,&ra# $r in+&s,ria#. Wha, i, see<s ,$ e#i3ina,e are a'&ses $%
e3*#$)ers agains, ,heir e3*#$)ees an+ n$,, as *e,i,i$ners w$&#+ have &s 'e#ieve, ,$ *reven,
s3a##5sca#e '&sinesses %r$3 engaging in #egi,i3a,e 3e,h$+s ,$ rea#i4e *r$J,. Hence, ,he
*r$vis$ is a**#ica'#e $n#) ,$ ,he e3*#$)ees wh$ are +ee3e+ Pcas&a#sP '&, n$, ,$ ,he P*r$Eec,P
e3*#$)ees n$r ,he reg&#ar e3*#$)ees ,rea,e+ in *aragra*h $ne $% Ar,. !1(.
C#ear#), ,here%$re, *e,i,i$ners 'eing *r$Eec, e3*#$)ees, $r, ,$ &se ,he c$rrec, ,er3, seasonal
emplo&ees, ,heir e3*#$)3en, #ega##) en+s &*$n c$3*#e,i$n $% ,he *r$Eec, $r ,he /en+ $% ,he0
seas$n. The ,er3ina,i$n $% ,heir e3*#$)3en, cann$, an+ sh$&#+ n$, c$ns,i,&,e an i##ega#
+is3issa#.
31. S(. 3aul College Cue0on Ci($ vs. Anche(a !!, G.R. No. 1)99"., Se%(e/er 7, 2"11
9ac,sL
Re3igi$ Michae# Anche,a was a %&##5,i3e *r$'a,i$nar) ,eacher in ,he Sch$$# @ear 199-5199"
which was renewe+ in ,he %$##$wing S@ 199"51991. His wi%e, C)n,hia was hire+ as a *ar, ,i3e
,eacher $% ,he Mass C$33&nica,i$n 7e*ar,3en, in ,he sec$n+ se3es,er $% S@ 199-5199" an+
her a**$in,3en, was renewe+ %$r S@ 199"51991.
Page 1"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
:n 9e'r&ar) 1, 1991, res*$n+en,s signiJe+ ,heir in,en,i$ns ,$ renew ,heir c$n,rac,s %$r S@
199151999. The) were #a,er sen, ,w$ #e,,ers in%$r3ing ,he3 ,ha, ,he sch$$# is eF,en+ing ,$
,he3 new c$n,rac,s %$r S@ 199151999.
Therea%,er, a #e,,er was wri,,en ,$ Re3igi$ Michae#, en&3era,ing ,he +e*ar,3en,a# an+
ins,r&c,i$na# *$#icies ,ha, s*$&ses %ai#e+ ,$ c$3*#) wi,h, s&ch as ,he #a,e s&'3issi$n $% Jna#
gra+es, %ai#&re ,$ s&'3i, Jna# ,es, A&es,i$ns ,$ ,he Pr$gra3 C$$r+ina,$r, ,he giving $% ,es,s in
,he essa) %$r3 ins,ea+ $% ,he 3&#,i*#e ch$ice %$r3a, as 3an+a,e+ ') ,he sch$$#, %ai#&re ,$
re*$r, ,$ w$r< $n ,i3eO ,he high n&3'er $% s,&+en,s wi,h %ai#ing gra+es in ,he c#asses ,ha,
,he) han+#e+, an+ n$, 'eing $*en ,$ s&gges,i$ns ,$ i3*r$ve ,he3se#ves as ,eachers, a3$ng
$,hers.
Therea%,er, Sr. Berna+e,,e =7e*ar,3en, C$$r+ina,$r? en+$rse+ ,he i33e+ia,e ,er3ina,i$n $%
,he ,eaching services $% ,he s*$&ses. Res*$n+en, s*$&ses were given an $**$r,&ni,) ,$
c$33en, $n ,he #e,,er5rec$33en+a,i$n. S&'seA&en,#) h$wever, ,he) receive+ ,heir
res*ec,ive #e,,ers $% ,er3ina,i$n. Th&s, s*$&ses J#e+ a C$3*#ain, %$r i##ega# +is3issa#.
S,. Pa&# c$n,en+s ,ha, i, +i+ n$, eF,en+ ,he c$n,rac,s $% res*$n+en, s*$&ses. A#,h$&gh, i, has
sen, #e,,ers ,$ ,he s*$&ses in%$r3ing ,he3 ,ha, ,he sch$$# is eF,en+ing ,$ ,he3 new c$n,rac,s
%$r ,he c$3ing sch$$# )ear, ,he #e,,ers +$ n$, c$ns,i,&,e as ac,&a# e3*#$)3en, c$n,rac,s '&,
3ere#) $Kers ,$ ,each $n ,he sai+ sch$$# )ear.
Iss&esL
W:N res*$n+en,s were c$nsi+ere+ reg&#ar e3*#$)ees
W:N ,he) were i##ega##) +is3isse+
R&#ingL
=1? E3*#$)3en, $n *r$'a,i$nar) s,a,&s $% ,eaching *ers$nne# is ,ha, ,he) are n$, g$verne+
*&re#) ') ,he La'$r C$+e. The La'$r C$+e is s&**#e3en,e+ wi,h res*ec, ,$ ,he *eri$+ $%
*r$'a,i$n ') s*ecia# r&#es %$&n+ in ,he Man&a# $% Reg&#a,i$ns %$r Priva,e Sch$$#s. :n ,he
3a,,er $% *r$'a,i$nar) *eri$+, Sec,i$n 9! $% ,hese reg&#a,i$ns *r$vi+esL
Sec,i$n 9!.Probationar& Period. ` S&'Eec, in a## ins,ances ,$ c$3*#iance wi,h ,he 7e*ar,3en,
an+ sch$$# reA&ire3en,s, ,he *r$'a,i$nar) *eri$+ %$r aca+e3ic *ers$nne# sha## n$, 'e 3$re
,han ,hree =? c$nsec&,ive )ears $% sa,is%ac,$r) service %$r ,h$se in ,he e#e3en,ar) an+
sec$n+ar) #eve#s, siF =-? c$nsec&,ive reg&#ar se3es,ers $% sa,is%ac,$r) service %$r ,h$se in ,he
,er,iar) #eve#, an+ nine =9? c$nsec&,ive ,ri3es,ers $% sa,is%ac,$r) service %$r ,h$se in ,he
,er,iar) #eve# where c$##egia,e c$&rses are $Kere+ $n a ,ri3es,er 'asis.
A *r$'a,i$nar) e3*#$)ee $r *r$'a,i$ner is $ne wh$ is $n ,ria# %$r an e3*#$)er, +&ring which
,he #a,,er +e,er3ines whe,her $r n$, he is A&a#iJe+ %$r *er3anen, e3*#$)3en,. The
*r$'a,i$nar) e3*#$)3en, is in,en+e+ ,$ aK$r+ ,he e3*#$)er an $**$r,&ni,) ,$ $'serve ,he
J,ness $% a *r$'a,i$nar) e3*#$)ee whi#e a, w$r<, an+ ,$ ascer,ain whe,her he wi## 'ec$3e an
eIcien, an+ *r$+&c,ive e3*#$)ee. Whi#e ,he e3*#$)er $'serves ,he J,ness, *r$*rie,) an+
eIcienc) $% a *r$'a,i$ner ,$ ascer,ain whe,her he is A&a#iJe+ %$r *er3anen, e3*#$)3en,, ,he
*r$'a,i$ner, $n ,he $,her han+, see<s ,$ *r$ve ,$ ,he e3*#$)er ,ha, he has ,he A&a#iJca,i$ns
,$ 3ee, ,he reas$na'#e s,an+ar+s %$r *er3anen, e3*#$)3en,. Th&s, ,he w$r+ *r$'a,i$nar),
as &se+ ,$ +escri'e ,he *eri$+ $% e3*#$)3en,, i3*#ies ,he *&r*$se $% ,he ,er3 $r *eri$+, n$,
i,s #eng,h.
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The c$33$n *rac,ice is %$r ,he e3*#$)er an+ ,he ,eacher ,$ en,er in,$ a c$n,rac,, eKec,ive %$r
$ne sch$$# )ear. A, ,he en+ $% ,he sch$$# )ear, ,he e3*#$)er has ,he $*,i$n n$, ,$ renew ,he
c$n,rac,, *ar,ic&#ar#) c$nsi+ering ,he ,eacherSs *er%$r3ance. I% ,he c$n,rac, is n$, renewe+,
,he e3*#$)3en, re#a,i$nshi* ,er3ina,es. I% ,he c$n,rac, is renewe+, &s&a##) %$r an$,her sch$$#
)ear, ,he *r$'a,i$nar) e3*#$)3en, c$n,in&es. Again, a, ,he en+ $% ,ha, *eri$+, ,he *ar,ies
3a) $*, ,$ renew $r n$, ,$ renew ,he c$n,rac,. I% renewe+, ,his sec$n+ renewa# $% ,he c$n,rac,
%$r an$,her sch$$# )ear w$&#+ ,hen 'e ,he #as, )ear ` since i, w$&#+ 'e ,he ,hir+ sch$$# )ear
` $% *r$'a,i$nar) e3*#$)3en,. A, ,he en+ $% ,his ,hir+ )ear, ,he e3*#$)er 3a) n$w +eci+e
whe,her ,$ eF,en+ a *er3anen, a**$in,3en, ,$ ,he e3*#$)ee, *ri3ari#) $n ,he 'asis $% ,he
e3*#$)ee having 3e, ,he reas$na'#e s,an+ar+s $% c$3*e,ence an+ eIcienc) se, ') ,he
e3*#$)er. 9$r ,he en,ire +&ra,i$n $% ,his ,hree5)ear *eri$+, ,he ,eacher re3ains &n+er
*r$'a,i$n. >*$n ,he eF*ira,i$n $% his c$n,rac, $% e3*#$)3en,, 'eing si3*#) $n *r$'a,i$n, he
cann$, a&,$3a,ica##) c#ai3 sec&ri,) $% ,en&re an+ c$3*e# ,he e3*#$)er ,$ renew his
e3*#$)3en, c$n,rac,.
=!? N$.
Sec,i$n 91 $% ,he Man&a# $% Reg&#a,i$ns %$r Priva,e Sch$$#s, s,a,es ,ha,L
Sec,i$n 91.%mplo&ment Contrat. ` Ever) c$n,rac, $% e3*#$)3en, sha## s*eci%) ,he
+esigna,i$n, A&a#iJca,i$n, sa#ar) ra,e, ,he *eri$+ an+ na,&re $% service an+ i,s +a,e $%
eKec,ivi,), an+ s&ch $,her ,er3s an+ c$n+i,i$n $% e3*#$)3en, as 3a) 'e c$nsis,en, wi,h #aws
an+ r&#es, reg&#a,i$ns an+ s,an+ar+s $% ,he sch$$#. A c$*) $% ,he c$n,rac, sha## 'e %&rnishe+
,he *ers$nne# c$ncerne+.
I, is i3*$r,an, ,ha, ,he c$n,rac, $% *r$'a,i$nar) e3*#$)3en, s*eci%) ,he *eri$+ $r ,er3 $% i,s
eKec,ivi,). The %ai#&re ,$ s,i*&#a,e i,s *recise +&ra,i$n c$&#+ #ea+ ,$ ,he in%erence ,ha, ,he
c$n,rac, is 'in+ing %$r ,he %&## ,hree5)ear *r$'a,i$nar) *eri$+. There%$re, ,he #e,,ers sen, ')
*e,i,i$ner Sr. Berna+e,,e, which were v$i+ $% an) s*eciJcs cann$, 'e c$nsi+ere+ as c$n,rac,s.
The c#$ses, ,he) can rese3'#e ,$ are ,ha, $% in%$r3a# c$rres*$n+ence a3$ng ,he sai+
in+ivi+&a#s. As s&ch, *e,i,i$ner sch$$# has ,he righ, n$, ,$ renew ,he c$n,rac,s $% ,he
res*$n+en,s, ,he $#+ $nes having 'een eF*ire+ a, ,he en+ $% ,heir ,er3s.
Ass&3ing, arguendo, ,ha, ,he e3*#$)3en, c$n,rac,s 'e,ween ,he sch$$# an+ ,he s*$&ses
were renewe+, ,his C$&r, Jn+s ,ha, ,here was a va#i+ an+ E&s, ca&se %$r ,heir +is3issa#. The
La'$r C$+e c$33an+s ,ha, 'e%$re an e3*#$)er 3a) #ega##) +is3iss an e3*#$)ee %r$3 ,he
service, ,he reA&ire3en, $% s&'s,an,ia# an+ *r$ce+&ra# +&e *r$cess 3&s, 'e c$3*#ie+ wi,h.
>n+er ,he reA&ire3en, $% s&'s,an,ia# +&e *r$cess, ,he gr$&n+s %$r ,er3ina,i$n $% e3*#$)3en,
3&s, 'e 'ase+ $n E&s, $r a&,h$ri4e+ ca&ses.
:% ,he charges agains, Re3igi$ Michae#, his s*$&se a#s$ share+ ,he sa3e +e%enses an+
a+3issi$ns as ,$ ,he charges agains, her.
The *#ain a+3issi$ns $% ,he charges agains, ,he3 were ,he c$nsi+era,i$ns ,a<en in,$ acc$&n,
') ,he *e,i,i$ner sch$$# in ,heir +ecisi$n n$, ,$ renew ,he res*$n+en, s*$&sesS e3*#$)3en,
c$n,rac,s. This is a righ, $% ,he sch$$# ,ha, is 3an+a,e+ ') #aw an+ E&ris*r&+ence. I, is ,he
*rer$ga,ive $% ,he sch$$# ,$ se, high s,an+ar+s $% eIcienc) %$r i,s ,eachers since A&a#i,)
e+&ca,i$n is a 3an+a,e $% ,he C$ns,i,&,i$n. As #$ng as ,he s,an+ar+s JFe+ are reas$na'#e an+
n$, ar'i,rar), c$&r,s are n$, a, #i'er,) ,$ se, ,he3 asi+e. Sch$$#s cann$, 'e reA&ire+ ,$ a+$*,
s,an+ar+s which 'are#) sa,is%) cri,eria se, %$r g$vern3en, rec$gni,i$n. The sa3e aca+e3ic
%ree+$3 gran,s ,he sch$$# ,he a&,$n$3) ,$ +eci+e %$r i,se#% ,he ,er3s an+ c$n+i,i$ns %$r hiring
i,s ,eacher, s&'Eec, $% c$&rse ,$ ,he $verarching #i3i,a,i$ns &n+er ,he La'$r C$+e. The
a&,h$ri,) ,$ hire is #i<ewise c$vere+ an+ *r$,ec,e+ ') i,s 3anage3en, *rer$ga,ive ` ,he righ,
$% an e3*#$)er ,$ reg&#a,e a## as*ec,s $% e3*#$)3en,, s&ch as hiring, ,he %ree+$3 ,$ *rescri'e
w$r< assign3en,s, w$r<ing 3e,h$+s, *r$cess ,$ 'e %$##$we+, reg&#a,i$n regar+ing ,rans%er $%
Page 19
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e3*#$)ees, s&*ervisi$n $% ,heir w$r<, #a)5$K an+ +isci*#ine, an+ +is3issa# an+ reca## $%
w$r<ers.
32. L$nvil 6ishing #n(er%rises vs. Ariola, G.R. No. 1-197*, 6eruar$ 1, 2"12
9ac,sL
Pe,i,i$ner L)nvi# 9ishing En,er*rises, Inc. =L)nvi#? is engage+ in +ee*5sea Jshing. Res*$n+en,sG
services were engage+ in vari$&s ca*aci,iesL An+res G. Ari$#a, ca*,ainO 6essie 7. A#c$ven+as,
chie% 3a,eO 6i33) B. Ca#ina$, chie% engineerO Is3ae# G. N&'#a, c$$<O E#$r+e Babe4, $i#erO an+
Le$*$#+$ G. Se'&##en, '$+eger$.
:n A&g. 1, 1991, L)nvi# receive+ a re*$r, %r$3 Ra3$ni,$ C#ari+$, $ne $% i,s e3*#$)ees, ,ha, $n
6&#) 1, 1991, he wi,nesse+ ,ha, whi#e $n '$ar+ ,he c$3*an) vesse# Ana#)n 8III, res*$n+en,s
c$ns*ire+ wi,h $ne an$,her an+ s,$#e eigh, ,&'s $% M*a3*an$N an+ M,angig&eN Jsh an+
+e#ivere+ ,he3 ,$ an$,her vesse#.
Pe,i,i$ner J#e+ a cri3ina# c$3*#ain, agains, res*$n+en,s 'e%$re ,he $Ice $% ,he Ci,)
Pr$sec&,$r $% Ma#a'$n Ci,) which %$&n+ *r$'a'#e ca&se %$r in+ic,3en, $% res*$n+en,s %$r ,he
cri3e $% A&a#iJe+ ,he%,. Re#)ing $n ,he Jn+ing an+ Nasi*i, L&3'er C$3*an) v. NLRC, !2" Phi#.
9" =1919?, L)nvi# asser,e+ ,here was s&Icien, 'asis %$r va#i+ ,er3ina,i$n $% e3*#$)3en, $%
res*$n+en,s 'ase+ $n seri$&s 3isc$n+&c, an+B$r #$ss $% ,r&s, an+ c$nJ+ence.
Iss&esL
Whe,her a Jn+ing $% ,he ci,) *r$sec&,$r $% *r$'a'#e ca&se ,$ in+ic, e3*#$)ees $% A&a#iJe+
,he%, is s&Icien, 'asis %$r va#i+ ,er3ina,i$n %$r seri$&s 3isc$n+&c, an+B$r #$ss $% ,r&s, $r
c$nJ+enceW
Whe,her ,he e3*#$)ees were va#i+#) ,er3ina,e+W
R&#ingL
:n ,he Jrs, iss&e, ,he S&*re3e C$&r, r&#e+ in ,he nega,ive. We r&#e+ ,ha, *r$$% 'e)$n+
reas$na'#e +$&', $% an e3*#$)eeGs 3isc$n+&c, is n$, reA&ire+ when #$ss $% c$nJ+ence is ,he
gr$&n+ %$r +is3issa#. I, is s&Icien, i% ,he e3*#$)er has Ms$3e 'asisN ,$ #$se c$nJ+ence $r ,ha,
,he e3*#$)er has reas$na'#e gr$&n+ ,$ 'e#ieve $r ,$ en,er,ain ,he 3$ra# c$nvic,i$n ,ha, ,he
e3*#$)ee c$ncerne+ is res*$nsi'#e %$r ,he 3isc$n+&c, an+ ,ha, ,he na,&re $% his *ar,ici*a,i$n
,herein ren+ere+ hi3 a's$#&,e#) &nw$r,h) $% ,he ,r&s, an+ c$nJ+ence +e3an+e+ ') his
*$si,i$n.
L)nvi# cann$, arg&e ,ha, since ,he :Ice $% ,he Pr$sec&,$r %$&n+ *r$'a'#e ca&se %$r ,he%, ,he
La'$r Ar'i,er 3&s, %$##$w ,he Jn+ing as a va#i+ reas$n %$r ,he ,er3ina,i$n $% res*$n+en,sG
e3*#$)3en,. The *r$$% reA&ire+ %$r *&r*$ses ,ha, +iKer %r$3 $ne an+ ,he $,her are #i<ewise
+iKeren,.
:n ,he sec$n+ A&es,i$n, ,he C$&r, s,a,e+ ,ha, n$ne,he#ess, even wi,h$&, re#iance $n ,he
*r$sec&,$rGs Jn+ing, we Jn+ ,ha, ,here was va#i+ ca&se %$r res*$n+en,sG +is3issa#.
6&s, ca&se is reA&ire+ %$r a va#i+ +is3issa#. The La'$r C$+e *r$vi+es ,ha, an e3*#$)er 3a)
,er3ina,e an e3*#$)3en, 'ase+ $n %ra&+ $r wi##%&# 'reach $% ,he ,r&s, re*$se+ $n ,he
Page 9(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e3*#$)ee. S&ch 'reach is c$nsi+ere+ wi##%&# i% i, is +$ne in,en,i$na##), <n$wing#), an+
*&r*$se#), wi,h$&, E&s,iJa'#e eFc&se, as +is,ing&ishe+ %r$3 an ac, +$ne care#ess#),
,h$&gh,#ess#), hee+#ess#) $r ina+ver,en,#). I, 3&s, a#s$ 'e 'ase+ $n s&'s,an,ia# evi+ence an+
n$, $n ,he e3*#$)erGs whi3s $r ca*rices $r s&s*ici$ns $,herwise, ,he e3*#$)ee w$&#+
e,erna##) re3ain a, ,he 3erc) $% ,he e3*#$)er. L$ss $% c$nJ+ence 3&s, n$, 'e in+iscri3ina,e#)
&se+ as a shie#+ ') ,he e3*#$)er agains, a c#ai3 ,ha, ,he +is3issa# $% an e3*#$)ee was
ar'i,rar). An+, in $r+er ,$ c$ns,i,&,e a E&s, ca&se %$r +is3issa#, ,he ac, c$3*#aine+ $% 3&s, 'e
w$r<5re#a,e+ an+ sh$ws ,ha, ,he e3*#$)ee c$ncerne+ is &nJ, ,$ c$n,in&e w$r<ing %$r ,he
e3*#$)er. In a++i,i$n, #$ss $% c$nJ+ence as a E&s, ca&se %$r ,er3ina,i$n $% e3*#$)3en, is
*re3ise+ $n ,he %ac, ,ha, ,he e3*#$)ee c$ncerne+ h$#+s a *$si,i$n $% res*$nsi'i#i,), ,r&s, an+
c$nJ+ence $r ,ha, ,he e3*#$)ee c$ncerne+ is en,r&s,e+ wi,h c$nJ+ence wi,h res*ec, ,$
+e#ica,e 3a,,ers, s&ch as ,he han+#ing $r care an+ *r$,ec,i$n $% ,he *r$*er,) an+ asse,s $% ,he
e3*#$)er. The 'e,ra)a# $% ,his ,r&s, is ,he essence $% ,he $Kense %$r which an e3*#$)ee is
*ena#i4e+. Breach $% ,r&s, is *resen, in ,his case.
H$wever, L)nvi# c$n,en+s ,ha, i, cann$, 'e g&i#,) $% i##ega# +is3issa# 'eca&se ,he *riva,e
res*$n+en,s were e3*#$)e+ &n+er a JFe+5,er3 c$n,rac, which eF*ire+ a, ,he en+ $% ,he
v$)age. C$n,rari#), ,he *riva,e res*$n+en,s =e3*#$)ees? c$n,en+ ,ha, ,he) 'eca3e reg&#ar
e3*#$)ees ') reas$n $% ,heir c$n,in&$&s hiring an+ *er%$r3ance $% ,as<s necessar) an+
+esira'#e in ,he &s&a# ,ra+e an+ '&siness $% L)nvi#.
6&ris*r&+ence, #ai+ ,w$ c$n+i,i$ns %$r ,he va#i+i,) $% a JFe+5c$n,rac, agree3en, 'e,ween ,he
e3*#$)er an+ e3*#$)eeL -rst, ,he JFe+ *eri$+ $% e3*#$)3en, was <n$wing#) an+ v$#&n,ari#)
agree+ &*$n ') ,he *ar,ies wi,h$&, an) %$rce, +&ress, $r i3*r$*er *ress&re 'eing 'r$&gh, ,$
'ear &*$n ,he e3*#$)ee an+ a'sen, an) $,her circ&3s,ances vi,ia,ing his c$nsen,O $r seond,
i, sa,is%ac,$ri#) a**ears ,ha, ,he e3*#$)er an+ ,he e3*#$)ee +ea#, wi,h each $,her $n 3$re $r
#ess eA&a# ,er3s wi,h n$ 3$ra# +$3inance eFercise+ ') ,he %$r3er $r ,he #a,,er.
In ,he c$n,eF, $% ,he %ac,s ,ha,L =1? ,he res*$n+en,s were +$ing ,as<s necessari#) ,$ L)nvi#Gs
Jshing '&siness wi,h *$si,i$ns ranging %r$3 ca*,ain $% ,he vesse# ,$ bodegeroO =!? a%,er ,he
en+ $% a ,ri*, ,he) wi## again 'e hire+ %$r an$,her ,ri* wi,h new c$n,rac,sO an+ =? ,his
arrange3en, c$n,in&e+ %$r 3$re ,han ,en )ears, ,he c#ear in,en,i$n is ,$ g$ ar$&n+ ,he
sec&ri,) $% ,en&re $% ,he res*$n+en,s as reg&#ar e3*#$)ees. An+ res*$n+en,s are s$ ') ,he
eF*ress *r$visi$ns $% ,he sec$n+ *aragra*h $% Ar,ic#e !1(, ,h&sL FFF Pr$vi+e+, Tha, an)
e3*#$)ee wh$ has ren+ere+ a, #eas, $ne )ear $% service, whe,her s&ch service is c$n,in&$&s
$r 'r$<en, sha## 'e c$nsi+ere+ a reg&#ar e3*#$)ee wi,h res*ec, ,$ ,he ac,ivi,) in which he is
e3*#$)e+ an+ his e3*#$)3en, sha## c$n,in&e whi#e s&ch ac,ivi,) eFis,s.
Having %$&n+ ,ha, res*$n+en,s are reg&#ar e3*#$)ees wh$ 3a) 'e, h$wever, +is3isse+ %$r
ca&se as we have s$ %$&n+ in ,his case, ,here is a nee+ ,$ #$$< in,$ ,he *r$ce+&ra#
reA&ire3en, $% +&e *r$cess in Sec,i$n !, R&#e CCIII, B$$< 8 $% ,he R&#es I3*#e3en,ing ,he
La'$r C$+e. I, is reA&ire+ ,ha, ,he e3*#$)er %&rnish ,he e3*#$)ee wi,h ,w$ wri,,en n$,icesL
=1? a wri,,en n$,ice serve+ $n ,he e3*#$)ee s*eci%)ing ,he gr$&n+ $r gr$&n+s %$r ,er3ina,i$n,
an+ giving ,$ sai+ e3*#$)ee reas$na'#e $**$r,&ni,) wi,hin which ,$ eF*#ain his si+eO an+ =!? a
wri,,en n$,ice $% ,er3ina,i$n serve+ $n ,he e3*#$)ee in+ica,ing ,ha, &*$n +&e c$nsi+era,i$n
$% a## ,he circ&3s,ances, gr$&n+s have 'een es,a'#ishe+ ,$ E&s,i%) his ,er3ina,i$n. In ,his case,
i, is c#ear ,ha, ,he e3*#$)ees were n$, given ,he Jna# wri,,en n$,ices $% +is3issa#.
The C$&r, r&#e+ ,ha, since e3*#$)ees were +is3isse+ %$r E&s, ca&se, ,he) were n$, en,i,#e ,$
se*ara,i$n *a) an+ 'ac<wages. H$wever, ,he) were ,$ 'e gran,e+ n$3ina# +a3ages %$r
%ai#&re $% ,he e3*#$)er ,$ c$3*#) wi,h s,a,&,$r) +&e *r$cess.
Page 91
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
33. 4.M. ConsunDi !nc. vs. 2a/in, G.R. No. 192.1*, A%ril 1-, 2"12 ci(ing Maraguino(
9ac,sL
:n 7ece3'er 1", 19-1, *e,i,i$ner 7.M. C$ns&nEi, Inc. =7MCI?, a c$ns,r&c,i$n c$3*an), hire+
res*$n+en, Es,e#i,$ L. 6a3in as a #a'$rer. S$3e,i3e in 19"2, 6a3in 'eca3e a he#*er car*en,er.
Since his ini,ia# hiring, 6a3inGs e3*#$)3en, c$n,rac, ha+ 'een renewe+ a n&3'er $% ,i3es. :n
March !(, 1999, his w$r< a, 7MCI was ,er3ina,e+ +&e ,$ ,he c$3*#e,i$n $% ,he SM Mani#a
*r$Eec,. This ,er3ina,i$n 3ar<e+ ,he en+ $% his e3*#$)3en, wi,h 7MCI as he was n$, rehire+
again.
:n A*ri# 2, 1999, 6a3in J#e+ a c$3*#ain, %$r i##ega# +is3issa#, wi,h severa# 3$ne) c#ai3s
=inc#&+ing a,,$rne)Gs %ees?, agains, 7MCI an+ i,s Presi+en,BGenera# Manager, 7avi+ M.
C$ns&nEi. 6a3in a##ege+ ,ha, 7MCI ,er3ina,e+ his e3*#$)3en, wi,h$&, a E&s, an+ a&,h$ri4e+
ca&se a, a ,i3e when he was a#rea+) 22 )ears $#+ an+ ha+ n$ in+e*en+en, s$&rce $%
#ive#ih$$+. He c#ai3e+ ,ha, he ren+ere+ service ,$ 7MCI c$n,in&$&s#) %$r a#3$s, 1 )ears. In
a++i,i$n ,$ ,he sche+&#e $% *r$Eec,s =where he was assigne+? s&'3i,,e+ ') 7MCI ,$ ,he #a'$r
ar'i,er,

he a##ege+ ,ha, he w$r<e+ %$r ,hree $,her 7MCI *r$Eec,sL Twin T$wers, Ri,4 T$wers, %r$3
6&#) !9, 191( ,$ 6&ne 1!, 191!O New Is,ana Pr$Eec,, B.S.B. Br&nei, %r$3 6&ne !, 191! ,$
9e'r&ar) 1-, 191.O an+ New Is,ana Pr$Eec,, B.S.B. Br&nei, %r$3 6an&ar) !., 191- ,$ Ma) !2,
191-.
7MCI +enie+ #ia'i#i,). I, arg&e+ ,ha, i, hire+ 6a3in $n a *r$Eec,5,$5*r$Eec, 'asis, %r$3 ,he s,ar,
$% his engage3en, in 19-1 &n,i# ,he c$3*#e,i$n $% i,s SM Mani#a *r$Eec, $n March !(, 1999
where 6a3in #as, w$r<e+. Wi,h ,he c$3*#e,i$n $% ,he *r$Eec,, i, ,er3ina,e+ 6a3inGs
e3*#$)3en,. I, a##ege+ ,ha, i, s&'3i,,e+ a re*$r, ,$ ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en,
=7:LE? ever),i3e i, ,er3ina,e+ 6a3inGs services.
ISS>E
Whe,her ,here was vi$#a,i$n $% sec&ri,) $% ,en&re.
R>LING
6a3in w$r<e+ %$r 7MCI %$r a#3$s, 1 )ears, ini,ia##) as a #a'$rer an+, %$r ,he 3$s, *ar,, as a
car*en,er. Thr$&gh a## ,h$se )ears, 7MCI ,rea,e+ hi3 as a *r$Eec, e3*#$)ee, s$ ,ha, he never
$',aine+ ,en&re. :n ,he s&r%ace an+ a, Jrs, g#ance, 7MCI a**ears ,$ 'e c$rrec,. 6a3in en,ere+
in,$ a c$n,rac, $% e3*#$)3en, =ac,&a##) an a**$in,3en, *a*er ,$ which he signiJe+ his
c$n%$r3i,)? wi,h 7MCI ei,her as a Je#+ w$r<er, a ,e3*$rar) w$r<er, a cas&a# e3*#$)ee, $r a
*r$Eec, e3*#$)ee ever),i3e 7MCI nee+e+ his services an+ a ,er3ina,i$n $% e3*#$)3en, *a*er
was serve+ $n hi3 &*$n c$3*#e,i$n $% ever) *r$Eec, $r *hase $% ,he *r$Eec, where he w$r<e+.
The CA *ierce+ ,he c$ver $% 6a3inGs *r$Eec, e3*#$)3en, c$n,rac, an+ +ec#are+ hi3 a reg&#ar
e3*#$)ee wh$ ha+ 'een +is3isse+ wi,h$&, ca&se an+ wi,h$&, n$,ice. T$ rei,era,e, ,he CAGs
Jn+ings were 'ase+ $nL =1? 6a3inGs re*ea,e+ an+ s&ccessive engage3en,s in 7MCIGs
c$ns,r&c,i$n *r$Eec,s, an+ =!? 6a3inGs *er%$r3ance $% ac,ivi,ies necessar) $r +esira'#e in
7MCIGs &s&a# ,ra+e $r '&siness.
We agree wi,h ,he CA. In Ligan4a v. RBL Shi*)ar+ C$r*$ra,i$n, ,he C$&r, he#+ ,ha, P/a0ss&3ing,
wi,h$&, gran,ing/,0 ,ha, /,he0 *e,i,i$ner was ini,ia##) hire+ %$r s*eciJc *r$Eec,s $r &n+er,a<ings,
,he re*ea,e+ re5hiring an+ c$n,in&ing nee+ %$r his services %$r $ver eigh, =1? )ears have
&n+enia'#) 3a+e hi3 a reg&#ar e3*#$)ee.P We Jn+ ,he Ligan4a r&#ing sA&are#) a**#ica'#e ,$
,his case, c$nsi+ering ,ha, %$r a#3$s, 1 )ears, 7MCI ha+ re*ea,e+#), c$n,in&$&s#) an+
Page 9!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
s&ccessive#) engage+ 6a3inGs services since he was hire+ $n 7ece3'er 1", 19-1 $r %$r a ,$,a#
$% 1 ,i3es ` 2 as sh$wn ') ,he sche+&#e $% *r$Eec,s s&'3i,,e+ ') 7MCI ,$ ,he #a'$r ar'i,er
an+ ,hree 3$re *r$Eec,s $r engage3en,s a++e+ ') 6a3in, which he c#ai3e+ 7MCI in,en,i$na##)
+i+ n$, inc#&+e in i,s sche+&#e s$ as ,$ 3a<e i, a**ear ,ha, ,here were wi+e ga*s in his
engage3en,s.
We reviewe+ 6a3inGs e3*#$)3en, c$n,rac,s as ,he CA +i+ an+ we n$,e+ ,ha, whi#e ,he
c$n,rac,s in+ee+ sh$w ,ha, 6a3in ha+ 'een engage+ as a *r$Eec, e3*#$)ee, ,here was an
a#3$s, &n'r$<en s,ring $% 6a3inGs rehiring %r$3 7ece3'er 1", 19-1 &* ,$ ,he ,er3ina,i$n $%
his e3*#$)3en, $n March !(, 1999. Whi#e ,he his,$r) $% 6a3inGs e3*#$)3en, =sche+&#e $%
*r$Eec,s? re#ie+ &*$n ') 7MCI sh$ws a ga* $% a#3$s, %$&r )ears in his e3*#$)3en, %$r ,he
*eri$+ 'e,ween 6&#) !1, 191( =,he s&**$se+ c$3*#e,i$n +a,e $% ,he Mi+,$wn P#a4a *r$Eec,?
an+ 6&ne 1, 191. =,he s,ar, $% ,he IRRI 7$r3 I8 *r$Eec,?, ,he ga* was ca&se+ ') ,he
c$3*an)Gs $3issi$n $% ,he ,hree *r$Eec,s.
9$r n$, +isc#$sing ,ha, ,here ha+ 'een $,her *r$Eec,s where 7MCI engage+ his services, 6a3in
acc&ses ,he c$3*an) $% s&**ressing vi,a# evi+ence ,ha, s&**$r,s his c$n,en,i$n ,ha, he
ren+ere+ service in ,he c$3*an)Gs c$ns,r&c,i$n *r$Eec,s c$n,in&$&s#) an+ re*ea,e+#) %$r 3$re
,han ,hree +eca+es. The n$n5+isc#$s&re 3igh, n$, have c$ns,i,&,e+ s&**ressi$n $% evi+ence `
i, c$&#+ E&s, have 'een $ver#$$<e+ ') ,he c$3*an) ` '&, ,he $versigh, is &n%air ,$ 6a3in as
,he n$n5inc#&si$n $% ,he ,hree *r$Eec,s gives ,he i3*ressi$n ,ha, ,here were s&'s,an,ia# ga*s
n$, $n#) $% severa# 3$n,hs '&, )ears in his e3*#$)3en, wi,h 7MCI.
T$ rei,era,e, 6a3inGs e3*#$)3en, his,$r) wi,h 7MCI s,an+s $&, %$r his c$n,in&$&s, re*ea,e+
an+ s&ccessive rehiring in ,he c$3*an)Gs c$ns,r&c,i$n *r$Eec,s. In a## ,he 1 *r$Eec,s where
7MCI engage+ 6a3inGs services, ,he ,as<s he *er%$r3e+ as a car*en,er were in+is*&,a'#)
necessar) an+ +esira'#e in 7MCIGs c$ns,r&c,i$n '&siness. He 3igh, n$, have 'een a 3e3'er
$% a w$r< *$$# as 7MCI insis,e+ ,ha, i, +$es n$, 3ain,ain a w$r< *$$#, '&, his c$n,in&$&s
rehiring an+ ,he na,&re $% his w$r< &n3is,a<a'#) 3a+e hi3 a reg&#ar e3*#$)ee. In Marag&in$,,
6r. v. NLRC, ,he C$&r, he#+ ,ha, $nce a *r$Eec, $r w$r< *$$# e3*#$)ee has 'eenL =1?
c$n,in&$&s#), as $**$se+ ,$ in,er3i,,en,#), rehire+ ') ,he sa3e e3*#$)er %$r ,he sa3e ,as<s
$r na,&re $% ,as<sO an+ =!? ,hese ,as<s are vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a#
'&siness $r ,ra+e $% ,he e3*#$)er, ,hen ,he e3*#$)ee 3&s, 'e +ee3e+ a reg&#ar e3*#$)ee.
9&r,her, as we s,resse+ in Ligan4a, P/r0es*$n+en, ca*i,a#i4es $n $&r r&#ing in 7.M. C$ns&nEi,
Inc. v. NLRC which rei,era,es ,he r&#e ,ha, ,he #eng,h $% service $% a *r$Eec, e3*#$)ee is n$,
,he c$n,r$##ing ,es, $% e3*#$)3en, ,en&re '&, whe,her $r n$, Y,he e3*#$)3en, has 'een JFe+
%$r a s*eciJc *r$Eec, $r &n+er,a<ing ,he c$3*#e,i$n $r ,er3ina,i$n $% which has 'een
+e,er3ine+ a, ,he ,i3e $% ,he engage3en, $% ,he e3*#$)ee.GP
PS&re#), #eng,h $% ,i3e is n$, ,he c$n,r$##ing ,es, %$r *r$Eec, e3*#$)3en,. Never,he#ess, i, is
vi,a# in +e,er3ining i% ,he e3*#$)ee was hire+ %$r a s*eciJc &n+er,a<ing $r ,as<e+ ,$ *er%$r3
%&nc,i$ns vi,a#, necessar) an+ in+is*ensa'#e ,$ ,he &s&a# '&siness $r ,ra+e $% ,he e3*#$)er.
Here, /*riva,e0 res*$n+en, ha+ 'een a *r$Eec, e3*#$)ee severa# ,i3es $ver. His e3*#$)3en,
cease+ ,$ 'e c$,er3in$&s wi,h s*eciJc *r$Eec,s when he was re*ea,e+#) re5hire+ +&e ,$ ,he
+e3an+s $% *e,i,i$nerGs '&siness.P Wi,h$&, +$&',, 6a3inGs case J,s sA&are#) in,$ ,he
e3*#$)3en, si,&a,i$n E&s, A&$,e+.
Page 9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
!ANAGE!ENT PREROGATI"E
1. 4osch vs. NLRC, 123 SCRA 29) +19-3,
9ac,sL
He#3&, 7$sch, an A3erican ci,i4en, 3arrie+ ,$ a 9i#i*ina, was ,he resi+en, Manager $%
N$r,hwes, Air#ines, Inc. in ,he Phi#i**ines. He has ,$ his cre+i, e#even =11? )ears $% c$n,in&$&s
service wi,h ,he c$3*an), inc#&+ing nine =9? )ears as N$r,hwes, Manager wi,h s,a,i$n a,
Mani#a. He receive+ an in,er5$Ice c$33&nica,i$n %r$3 R.C. 6en<ins, N$r,hwes,Ss 8ice
Presi+en, %$r :rien, Regi$n 'ase+ in T$<)$, *r$3$,ing hi3 ,$ ,he *$si,i$n $% 7irec,$r $%
In,erna,i$na# Sa#es an+ ,rans%erring hi3 ,$ N$r,hwes,Ss Genera# :Ice in Minnea*$#is, >.S.A.,
eKec,ive i33e+ia,e#). 7$sch in his #e,,er, eF*resse+ a**recia,i$n %$r ,he *r$3$,i$n an+ a, ,he
sa3e ,i3e regre,,e+ ,ha, 8for personal reasons and reasons involving $is famil&, he is &na'#e
,$ acce*, a ,rans%er %r$3 ,he Phi#i**ines an+ ,ha, he w$&#+, ,here%$re, *re%er ,$ re3ain in his
*$si,i$n, $% Manager5Phi#i**ines &n,i# s&ch ,i3e ,ha, his services in ,ha, ca*aci,) are n$ #$nger
reA&ire+ ') ,he c$3*an). Pe,i,i$ner ,rie+ ,$ res&3e his +&,ies as Manager a%,er an a&,h$ri4e+
vaca,i$n '&, ,he 8ice5Presi+en, %$r ,he :rien, Regi$n $% N$r,hwes, a+vise+ *e,i,i$ner ,ha, in
vie. of $is letter, $is status as an emplo&ee of t$e ompan& eased on t$e lose of business
and t$e ompan& t$erefore onsiders $is letter to be a resignation .it$out notie.
Iss&esL
7$es ,he e3*#$)erGs #e,,er c$ns,i,&,e a ,rans%er as a va#i+ eFercise $% a 3anage3en,
*rer$ga,iveW
Ass&3ing arg&en+$ ,ha, ,he c$33&nica,i$n $r #e,,er $% Mr. 6en<ins was 'asica##) a ,rans%er,
&n+er ,he *ar,ic&#ar an+ *ec&#iar %ac,s $',aining in ,he case a, 'ar, +$es 7$schSs ina'i#i,) $r
re%&sa# ,$ 'e ,rans%erre+ a va#i+ ca&se %$r +is3issa#W
R&#ingsL
N$, 6en<insG #e,,er is a #e,,er +irec,ing ,he *r$3$,i$n $% 7$sch %r$3 his *$si,i$n as Phi#i**ine
3anager ,$ 7irec,$r $% In,erna,i$na# Sa#es in Minnea*$#is, >.S.A. I, is n$, 3ere#) a ,rans%er
$r+er a#$ne '&, as ,he S$#ici,$r Genera# c$rrec,#) $'serves, Pi, is 3$re in ,he na,&re $% a
*r$3$,i$n ,ha, a ,rans%er, ,he #a,,er 'eing 3ere#) inci+en,a# ,$ s&ch *r$3$,i$n.P The in,er5
$Ice c$33&nica,i$n $% 8ice Presi+en, 6en<ins is ca*,i$ne+ PTrans%erP '&, i, is 'asica##) an+
essen,ia##) a *r$3$,i$n %$r ,he na,&re $% an ins,r&3en, is charac,eri4e+ n$, ') ,he ,i,#e given
,$ i, '&, ') i,s '$+) an+ c$n,en,s. The c$33&nica,i$n in%$r3e+ ,he *e,i,i$ner ,ha, eKec,ive
A&g&s, 11, 19"2, he was ,$ 'e *r$3$,e+ ,$ ,he *$si,i$n $% 7irec,$r $% In,erna,i$na# Sa#es, an+
his c$3*ensa,i$n w$&#+ 'e &*gra+e+ an+ ,he *a)r$## acc$r+ing#) a+E&s,e+. Pe,i,i$ner was,
,here%$re, a+vance+ ,$ a higher *$si,i$n an+ ran< an+ his sa#ar) was increase+ an+ ,ha, is a
*r$3$,i$n. I, has 'een he#+ ,ha, *r$3$,i$n +en$,es a sca#ar ascen, $% an $Icer $r an
e3*#$)ee ,$ an$,her *$si,i$n, higher ei,her in ran< $r sa#ar). In ,he Mi##ares case a'$ve, ,he
S&*re3e C$&r,, s*ea<ing ,hr& Ac,ing Chie% 6&s,ice 6.B.L. Re)es, +is,ing&ishe+ 'e,ween ,rans%er
an+ *r$3$,i$n as %$##$wsL PA transfer is a 3$ve3en, %r$3 $ne *$si,i$n ,$ an$,her $%
eA&iva#en, ran<, #eve# $r sa#ar), wi,h$&, 'rea< in ,he service. Promotion, $n ,he $,her han+, is
,he a+vance3en, %r$3 $ne *$si,i$n ,$ an$,her wi,h an increase in +&,ies an+ res*$nsi'i#i,ies
as a&,h$ri4e+ ') #aw, an+ &s&a##) acc$3*anie+ ') an increase in sa#ar). Whereas, *r$3$,i$n
+en$,es a sca#ar ascen, $% a seni$r $Icer $r e3*#$)ee ,$ an$,her *$si,i$n, higher ei,her in
ran< $r sa#ar), ,rans%er re%ers ,$ #a,era# 3$ve3en, %r$3 $ne *$si,i$n ,$ an$,her, $% eA&iva#en,
Page 9.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ran<, #eve# $r sa#ar).P There is n$ #aw ,ha, c$3*e#s an e3*#$)ee ,$ acce*, a *r$3$,i$n, as a
*r$3$,i$n is in ,he na,&re $% a gi%, $r a rewar+, which a *ers$n has a righ, ,$ re%&se. When
*e,i,i$ner re%&se+ ,$ acce*, his *r$3$,i$n ,$ 7irec,$r $% In,erna,i$na# Sa#es, he was eFercising
a righ, an+ he cann$, 'e *&nishe+ %$r i, as ;ui 'ure suo utitur neminem laedit. He wh$ &ses his
$wn #ega# righ, inE&res n$ $ne.
N$, ass&3ing %$r ,he sa<e $% arg&3en, ,ha, ,he c$33&nica,i$n $r #e,,er $% Mr. 6en<ins was
'asica##) a ,rans%er, &n+er ,he *ar,ic&#ar an+ *ec&#iar %ac,s $',aining in ,he case a, 'ar,
*e,i,i$nerSs ina'i#i,) $r his re%&sa# ,$ 'e ,rans%erre+ was n$, a va#i+ ca&se %$r +is3issa#. Whi#e i,
3a) 'e ,r&e ,ha, ,he righ, ,$ ,rans%er $r reassign an e3*#$)ee is an e3*#$)erSs eFc#&sive righ,
an+ ,he *rer$ga,ive $% 3anage3en,, s&ch righ, is n$, a's$#&,e. The righ, $% an e3*#$)er ,$
%ree#) se#ec, $r +ischarge his e3*#$)ee is #i3i,e+ ') ,he *ara3$&n, *$#ice *$wer %$r ,he
re#a,i$ns 'e,ween ca*i,a# an+ #a'$r are n$, 3ere#) c$n,rac,&a# '&, i3*resse+ wi,h *&'#ic
in,eres, =Ar,ic#e 1"((, New Civi# C$+e?. An+ nei,her ca*i,a# n$r #a'$r sha## ac, $**ressive#)
agains, each $,her =Ar,ic#e 1"(1, New Civi# C$+e?. There can 'e n$ +is*&,e ,ha, ,he
c$ns,i,&,i$na# g&aran,ee $% sec&ri,) $% ,en&re 3an+a,e+ &n+er Sec,i$n 9, Ar,ic#e !, 19"
C$ns,i,&,i$n a**#ies ,$ a## e3*#$)ees an+ #a'$rers, whe,her in ,he g$vern3en, service $r in
,he *riva,e sec,$r. The %ac, ,ha, *e,i,i$ner is a 3anageria# e3*#$)ee +$es n$, ') i,se#% eFc#&+e
hi3 %r$3 ,he *r$,ec,i$n $% ,he c$ns,i,&,i$na# g&aran,ee $% sec&ri,) $% ,en&re. Even a 3anager
in a *riva,e c$ncern has ,he righ, ,$ 'e sec&re in his *$si,i$n, ,$ +ec#ine a *r$3$,i$n where,
a#,h$&gh ,he *r$3$,i$n carries an increase in his sa#ar) an+ ran< '&, res&#,s in his ,rans%er ,$
a new *#ace $% assign3en, $r s,a,i$n an+ awa) %r$3 his %a3i#). S&ch an $r+er c$ns,i,&,es
re3$va# wi,h$&, E&s, ca&se an+ is i##ega#. In+ee+, ,he $&,righ, +is3issa# $% *e,i,i$ner %r$3 his
*$si,i$n as Manager5Phi#i**ines $% N$r,hwes, Air#ines is 3&ch ,$$ severe, c$nsi+ering ,he
#eng,h $% service ,ha, *e,i,i$ner has ren+ere+ %$r e#even =11? %r&i,%&# an+ #$)a# )ears, a s,r$ng
an+ vi,a# %ac,$r ,ha, 3&s, 'e ,a<en in,$ acc$&n, in #a'$r #aw +e,er3ina,i$ns which ,his C$&r,,
s*ea<ing ,hr& Chie% 6&s,ice 9ernan+$ in Meraca* vs. In,erna,i$na# Cera3ics Man&%ac,&ring C$.,
Inc., L5.1!25-, 6&#) (, 19"9, 9! SCRA .1! e3*hasi4e+ sh$&#+ n$, $n#) 'e sec&n+&3
ra,i$ne3 '&, a#s$ sec&n+&3 cari,a,e3, ,$ wi,L PI, w$&#+ i3*#) a, ,he ver) #eas, ,ha, where a
*ena#,) #ess *&ni,ive w$&#+ s&Ice, wha,ever 3iss,e*s 3a) 'e c$33i,,e+ ') #a'$r $&gh, n$,
,$ 'e visi,e+ wi,h a c$nseA&ence s$ severe. I, is n$, $n#) 'eca&se $% ,he #awSs c$ncern %$r ,he
w$r<ing3an. There is, in a++i,i$n his %a3i#) ,$ c$nsi+er. >ne3*#$)3en, 'rings &n,$#+
har+shi*s an+ s$rr$ws $n ,h$se +e*en+en, $n ,he wage5earner. The 3iser) an+ *ain
a,,en+an, $n ,he #$ss $% E$'s ,hen c$&#+ 'e av$i+e+ i% ,here 'e acce*,ance $% ,he view ,ha,
&n+er a## ,he circ&3s,ances $% ,his case, *e,i,i$ners sh$&#+ n$, 'e +e*rive+ $% ,heir 3eans $%
#ive#ih$$+. N$r is ,his ,$ c$n+$ne wha, ha+ 'een +$ne ') ,he3. 9$r a## ,his ,$ c$n+$ne wha,
ha+ 'een +$ne ') ,he3. 9$r a## ,his whi#e, since *riva,e res*$n+en, c$nsi+ere+ ,he3
se*ara,e+ %r$3 ,he service, ,he) ha+ n$, 'een *ai+. 9$r ,he s,ric,#) E&ri+ica# s,an+*$in,, i,
cann$, 'e ,$$ s,r$ng#) s,resse+, ,$ %$##$w 7avis in his 3as,er#) w$r<, !isretionar& )ustie,
,ha, where a +ecisi$n 3a) 'e 3a+e ,$ res, $n in%$r3e+ E&+g3en, ra,her ,han rigi+ r&#es, a##
,he eA&i,ies $% ,he case 3&s, 'e acc$r+e+ ,heir +&e weigh,. 9ina##), labor la. determinations,
to ;uote from Bultmann, s$ould be not onl& seundum rationem but also seundum
aritatem.8 =This eFcer*, was ci,e+ in A#3ira vs. B.9. G$$+rich Phi#i**ines, Inc., 21 SCRA 1!(,
11.?
2. 3989 v. Cour( of A%%eals, G.R. No. 1.2".7, Se%(e/er 23, 2""3
9ac,sL
Page 92
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The *e,i,i$ner is a +$3es,ic c$r*$ra,i$n engage+ in ,he '&siness $% *r$vi+ing ,e#egra*h an+
c$33&nica,i$n services ,hr& i,s 'ranches a## $ver ,he c$&n,r). I, e3*#$)e+ vari$&s
e3*#$)ees, a3$ng wh$3 were herein *riva,e res*$n+en,s.
S$3e,i3e in 199", a%,er c$n+&c,ing a series $% s,&+ies regar+ing ,he *r$J,a'i#i,) $% i,s re,ai#
$*era,i$ns, i,s eFis,ing 'ranches an+ ,he n&3'er $% e3*#$)ees, ,he *e,i,i$ner ca3e &* wi,h
a Reloation and Restruturing Program +esigne+ ,$ =a? s&s,ain i,s =PT;TGs? re,ai# $*era,i$nsO
='? +ec$nges, s&r*#&s w$r<%$rce in s$3e 'ranches, ,$ *r$3$,e eIcienc) an+ *r$+&c,ivi,)O =c?
#$wer eF*enses inci+en,a# ,$ hiring an+ ,raining new *ers$nne#O an+ =+? av$i+ re,rench3en, $%
e3*#$)ees $cc&*)ing re+&n+an, *$si,i$ns.
:n A&g&s, 11, 199", *riva,e res*$n+en,s receive+ se*ara,e #e,,ers %r$3 ,he *e,i,i$ner, giving
,he3 ,he $*,i$n ,$ ch$$se ,he 'ranch ,$ which ,he) c$&#+ 'e ,rans%erre+. Therea%,er, ,he
*riva,e res*$n+en,s an+ $,her *e,i,i$nerGs e3*#$)ees were +irec,e+ ,$ Mre#$ca,eN ,$ ,heir new
PT;T Branches. The aKec,e+ e3*#$)ees were +irec,e+ ,$ re*$r, ,$ ,heir res*ec,ive re#$ca,i$n
assign3en,s in a Le,,er +a,e+ Se*,e3'er 1-, 199". The *e,i,i$ner $Kere+ 'eneJ,sBa##$wances
,$ ,h$se e3*#$)ees wh$ w$&#+ agree ,$ 'e ,rans%erre+ &n+er i,s new *r$gra3.
The *riva,e res*$n+en,s reEec,e+ ,he *e,i,i$nerGs $Ker. Their 3ain c$ncern is ,he *r$Fi3i,) $%
,heir ,rans%erO ,ha, i, w$&#+ 'e '&r+ens$3e %$r ,he3 ,$ #eave ,heir %a3i#ies an+ re#$ca,e ,$
,h$se areas. 7issa,isJe+ wi,h ,his eF*#ana,i$n, ,he *e,i,i$ner c$nsi+ere+ ,he *riva,e
res*$n+en,sG re%&sa# as ins&'$r+ina,i$n an+ wi##%&# +is$'e+ience ,$ a #aw%&# $r+erO hence, ,he
*riva,e res*$n+en,s were +is3isse+ %r$3 w$r<. The) %$r,hwi,h J#e+ ,heir res*ec,ive
c$3*#ain,s agains, ,he *e,i,i$ner 'e%$re ,he a**r$*ria,e s&'5regi$na# 'ranches $% ,he NLRC.
S&'seA&en,#), ,he *riva,e res*$n+en,sG 'argaining agen,, PT;T W$r<ers >ni$n5NA9L>5HM>,
J#e+ a c$3*#ain, agains, ,he *e,i,i$ner %$r i##ega# +is3issa# an+ &n%air #a'$r *rac,ice 'e%$re ,he
ar'i,ra,i$n 'ranch $% ,he NLRC.
In ,heir *$si,i$n *a*er, ,he c$3*#ainan,s =herein *riva,e res*$n+en,s? +ec#are+ ,ha, ,heir
re%&sa# ,$ ,rans%er c$&#+ n$, *$ssi'#) give rise ,$ a va#i+ +is3issa# $n ,he gr$&n+ $% wi##%&#
+is$'e+ience, as ,heir ,rans%er was *reE&+icia# an+ inc$nvenien,O ,h&s &nreas$na'#e. 9$r i,s
*ar,, ,he *e,i,i$ner =res*$n+en, ,herein? a##ege+ ,ha, ,he *riva,e res*$n+en,Gs ,rans%ers were
3a+e in ,he #aw%&# eFercise $% i,s 3anage3en, *rer$ga,ive an+ were +$ne in g$$+ %ai,h. The
,rans%ers were ai3e+ a, +ec$nges,ing s&r*#&s e3*#$)ees an+ +e,ai#ing ,he3 ,$ a 3$re
+e3an+ing 'ranch.
Iss&eL
W:N ,he ,rans%er was ,an,a3$&n, ,$ a *r$3$,i$n. An+ i% i, is, W:N *riva,e res*$n+en,s
c$33i,,e+ ins&'$r+ina,i$n in re%&sing s&ch *r$3$,i$nB,rans%er which w$&#+ ,hen E&s,i%) PT;TGs
ac, $% +is3issing ,he3 in eFercise $% 3anage3en, *rer$ga,ive.
R&#ingL The *e,i,i$n is +enie+ +&e c$&rse.
@ES, ,he ,rans%er was in+ee+ in a na,&re $% a *r$3$,i$n. Hence, ,here can 'e n$
ins&'$r+ina,i$n in re%&sing s&ch *r$3$,i$n an+ s&'seA&en,#), ,here can 'e n$ va#i+
E&s,iJca,i$n in +is3issing ,he *riva,e res*$n+en,s.
In i,s *$si,i$n wi,h ,he #a'$r ar'i,er, ,he *e,i,i$ner a+ver,e+ ,ha, when ,he *riva,e res*$n+en,s
were ,rans%erre+, ,he) were a#s$ *r$3$,e+, ,h&sL
Page 9-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
C#ear#), ,he ,rans%er $% ,he c$3*#ainan,s is n$, &nreas$na'#e n$r +$es i, inv$#ve +e3$,i$n in
ran<. The) are 'eing 3$ve+ ,$ 'ranches where ,he c$3*#ainan,s wi## %&nc,i$n wi,h 3aFi3&3
'eneJ, ,$ ,he c$3*an) an+ ,he) were in %ac, *r$3$,e+ n$, +e3$,e+ %r$3 a #$wer E$'5gra+e ,$
a higher E$'5gra+e an+ receive even higher sa#aries ,han 'e%$re. Th&s, ,rans%er $% ,he
c$3*#ainan,s w$&#+ n$, a#s$ res&#, in +i3in&,i$n in *a) 'eneJ, an+ *rivi#ege since ,he sa#aries
$% ,he c$3*#ainan, w$&#+ 'e receiving a 'igger sa#ar) i% n$, ,he sa3e sa#ar) *#&s a++i,i$na#
s*ecia# re#$ca,i$n *ac<age. A#,h$&gh ,he increase in ,he *a) is n$, signiJcan, ,his h$wever
w$&#+ 'e ,rans#a,e+ in,$ an increase ra,her ,han +ecrease in ,heir sa#ar) 'eca&se ,he
c$3*#ainan,s wh$ were ,rans%erre+ %r$3 ,he ci,) ,$ ,he *r$vince w$&#+ grea,#) 'eneJ,
'eca&se i, is $% E&+icia# n$,ice ,ha, ,he c$s, $% #iving in ,he *r$vince is 3&ch #$wer ,han in ,he
ci,). This w$&#+ 3ean a higher *&rchasing *$wer $% ,he sa3e sa#ar) *revi$&s#) 'eing receive+
') ,he c$3*#ainan,s.
In+ee+, ,he increase in ,he res*$n+en,sG res*$nsi'i#i,) can 'e ascer,aine+ %r$3 ,he sca#ar
ascen, $% ,heir E$' gra+es. Wi,h $r wi,h$&, a c$rres*$n+ing increase in sa#ar), ,he res*ec,ive
,rans%er $% ,he *riva,e res*$n+en,s was in %ac, *r$3$,i$ns, %$##$wing ,he r&#ing en&ncia,e+
in 1omeo.ners Savings and Loan Assoiation, (n. v. NLRC<
U /P0r$3$,i$n, as we +eJne+ in 4illares v, Subido, is M,he a+vance3en, %r$3 $ne *$si,i$n ,$
an$,her wi,h an increase in +&,ies an+ res*$nsi'i#i,ies as a&,h$ri4e+ ') #aw,
an+ usuall& acc$3*anie+ ') an increase in sa#ar).N A**aren,#), ,he in+is*ensa'#e e#e3en, %$r
,here ,$ 'e a *r$3$,i$n is ,ha, ,here 3&s, 'e an Ma+vance3en, %r$3 $ne *$si,i$n ,$ an$,herN
$r an &*war+ ver,ica# 3$ve3en, $% ,he e3*#$)eeGs ran< $r *$si,i$n.
An) increase in sa#ar) sh$&#+ $n#) 'e c$nsi+ere+ inci+en,a# '&, never +e,er3ina,ive $%
whe,her $r n$, a *r$3$,i$n is 'es,$we+ &*$n an e3*#$)ee. This can 'e #i<ene+ ,$ ,he
&*gra+ing $% sa#aries $% g$vern3en, e3*#$)ees wi,h$&, c$n%erring &*$n ,he, ,he c$nc$3i,an,
e#eva,i$n ,$ ,he higher *$si,i$nsU.
The a+3issi$ns $% ,he *e,i,i$ner are c$nc#&sive $n i,. An e3*#$)ee cann$, 'e *r$3$,e+, even
i% 3ere#) as a res&#, $% a ,rans%er, wi,h$&, his c$nsen,. A ,rans%er ,ha, res&#,s in *r$3$,i$n $r
+e3$,i$n, a+vance3en, $r re+&c,i$n $r a ,rans%er ,ha, ai3s ,$ Y#&re ,he e3*#$)ee awa) %r$3
his *er3anen, *$si,i$n cann$, 'e +$ne wi,h$&, ,he e3*#$)eesG c$nsen,.
There is n$ #aw ,ha, c$3*e#s an e3*#$)ee ,$ acce*, a *r$3$,i$n %$r ,he reas$n ,ha, a
*r$3$,i$n is in ,he na,&re $% a gi%, $r rewar+, which a *ers$n has a righ, ,$ re%&se.
Hence, ,he eFercise ') ,he *riva,e res*$n+en,s $% ,heir righ, cann$, 'e c$nsi+ere+ in #aw as
ins&'$r+ina,i$n, $r wi##%&# +is$'e+ience $% a #aw%&# $r+er $% ,he e3*#$)er. As s&ch, ,here was
n$ va#i+ ca&se %$r ,he *riva,e res*$n+en,sG +is3issa#.
As ,he A&es,i$ne+ +is3issa# is n$, 'ase+ $n an) $% ,he E&s, $r va#i+ gr$&n+s &n+er Ar,ic#e !1!
$% ,he La'$r C$+e, ,he NLRC c$rrec,#) $r+ere+ ,he *riva,e res*$n+en,sG reins,a,e3en, wi,h$&,
#$ss $% seni$ri,) righ,s an+ ,he *a)3en, $% 'ac<wages %r$3 ,he ,i3e $% ,heir +is3issa# &* ,$
,heir ac,&a# reins,a,e3en,.
IN LIGHT :9 THE ALL THE 9:REG:ING, ,he 7ecisi$n $% ,he C$&r, $% A**ea#s +a,e+ 6&ne 12,
!((1 is here') A99IRME7.
S: :R7ERE7.
Page 9"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
3. Men&o0a vs. Rural 'an: of Lucan, G.R. No. 1..*21, 2ul$ 7, 2""*
9ac,sL
:n A*ri# !2, 1999, ,he B$ar+ $% 7irec,$rs $% ,he R&ra# Ban< $% L&c'an, Inc., iss&e+ B$ar+
Res$#&,i$n N$s. 9952! an+ 9952, which rea+L
MB$ar+ Res. N$. 9952!
MYRES:L8E7 AS IT IS HEREB@ RES:L8E7G ,ha, in #ine wi,h ,he *$#ic) $% ,he 'an< ,$ %a3i#iari4e
'an< e3*#$)ees wi,h ,he vari$&s *hases $% 'an< $*era,i$ns an+ %&r,her s,reng,hen ,he
eFis,ing in,erna# c$n,r$# s)s,e3/,0 a## $Icers an+ e3*#$)ees are s&'Eec, ,$ resh&ce $%
assign3en,s. M$re$ver, ,his res$#&,i$n +$es n$, *rec#&+e ,he ,rans%er $% assign3en, $% 'an<
$Icers an+ e3*#$)ees %r$3 ,he 'ranch $Ice ,$ ,he hea+ $Ice an+ vice5versa.N
Pe,i,i$ner E#3er Men+$4a eF*resse+ his $*ini$n $n ,he resh&ce in an &n+a,e+ #e,,er
a++resse+ ,$ 7a)a, 'an< '$ar+ chair3an, ,ha, ,he resh&cing +ee3e+ ,$ 'e a +e3$,i$n
wi,h$&, an) #ega# 'asis an+ is a '#a,an, harass3en, $n %r$3 ,he e3*#$)er as a *re#&+e
*e,i,i$ners ,er3ina,i$n in +&e ,i3e. Tha, i, res&#,e+ ,$ &n%air #a'$r *rac,ice. 7a)a re*#ie+ ,ha,
i, was never ,he in,en,i$n =$% 3anage3en,? ,$ +$wngra+e *e,i,i$nerGs *$si,i$n, an+ ,ha, ,he
resh&ce wi## a#s$ aK$r+ 3anage3en, an eKec,ive ,$$# in *r$vi+ing ,he 'an< a s$&n+ in,erna#
c$n,r$# s)s,e3Bchec< an+ 'a#ance an+ a 'asis in eva#&a,ing ,he *er%$r3ance $% each
e3*#$)ee. Pe,i,i$ner avai#e+ ( +a)s in ,$,a# #eave $% a'sence an+ $n 6&ne !., 1999 *e,i,i$ner
J#e+ a C$3*#ain, %$r i##ega# +is3issa#, &n+er*a)3en,, se*ara,i$n *a) an+ +a3ages agains, ,he
R&ra# Ban< $% L&c'an an+B$r i,s *resi+en,, A#eE$ B. 7a)aO an+ i,s Ta)a'as 'ranch 3anager,
Bricci$ 8. Ca+a.
Iss&eL
Whe,her $r n$, ,he resh&cing $r ,rans%er is +ee3e+ ,$ 'e a +e3$,i$n $n *e,i,i$nerGs *$si,i$n.
R&#ingL
4anagement Prerogative to *ransfer %mplo&ees. 6&ris*r&+ence rec$gni4es ,he eFercise $%
3anage3en, *rer$ga,ives. 9$r ,his reas$n, c$&r,s $%,en +ec#ine ,$ in,er%ere in #egi,i3a,e
'&siness +ecisi$ns $% e3*#$)ers. In+ee+, #a'$r #aws +isc$&rage in,er%erence in e3*#$)ersG
E&+g3en,s c$ncerning ,he c$n+&c, $% ,heir '&siness. The #aw 3&s, *r$,ec, n$, $n#) ,he we#%are
$% e3*#$)ees, '&, a#s$ ,he righ, $% e3*#$)ers. In ,he *&rs&i, $% i,s #egi,i3a,e '&siness in,eres,,
3anage3en, has ,he *rer$ga,ive ,$ ,rans%er $r assign e3*#$)ees %r$3 $ne $Ice $r area $%
$*era,i$n ,$ an$,her 55 *r$vi+e+ ,here is n$ +e3$,i$n in ran< $r +i3in&,i$n $% sa#ar), 'eneJ,s,
an+ $,her *rivi#egesO an+ ,he ac,i$n is n$, 3$,iva,e+ ') +iscri3ina,i$n, 3a+e in 'a+ %ai,h, $r
eKec,e+ as a %$r3 $% *&nish3en, $r +e3$,i$n wi,h$&, s&Icien, ca&se. This *rivi#ege is
inheren, in ,he righ, $% e3*#$)ers ,$ c$n,r$# an+ 3anage ,heir en,er*rise eKec,ive#). The righ,
$% e3*#$)ees ,$ sec&ri,) $% ,en&re +$es n$, give ,he3 ves,e+ righ,s ,$ ,heir *$si,i$ns ,$ ,he
eF,en, $% +e*riving 3anage3en, $% i,s *rer$ga,ive ,$ change ,heir assign3en,s $r ,$ ,rans%er
,he3.
Petitioner7s *ransfer La.ful. Pe,i,i$nerGs ,rans%er was 3a+e in *&rs&i, $% res*$n+en,Gs *$#ic) ,$
M%a3i#iari4e 'an< e3*#$)ees wi,h ,he vari$&s *hases $% 'an< $*era,i$ns an+ %&r,her
s,reng,hen ,he eFis,ing in,erna# c$n,r$# s)s,e3N $% a## $Icers an+ e3*#$)ees. We have
*revi$&s#) he#+ ,ha, e3*#$)ees 3a) 'e ,rans%erre+ 55 'ase+ $n ,heir A&a#iJca,i$ns, a*,i,&+es
an+ c$3*e,encies 55 ,$ *$si,i$ns in which ,he) can %&nc,i$n wi,h 3aFi3&3 'eneJ, ,$ ,he
c$3*an). There a**ears n$ E&s,iJca,i$n %$r +en)ing an e3*#$)er ,he righ, ,$ ,rans%er
e3*#$)ees ,$ eF*an+ ,heir c$3*e,ence an+ 3aFi3i4e ,heir %&## *$,en,ia# %$r ,he a+vance3en,
$% ,he es,a'#ish3en,. Pe,i,i$ner was n$, sing#e+ $&,O $,her e3*#$)ees were a#s$ reassigne+
Page 91
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
wi,h$&, ,heir eF*ress c$nsen,. Nei,her was ,here an) +e3$,i$n in ,he ran< $% *e,i,i$nerO $r an)
+i3in&,i$n $% his sa#ar), *rivi#eges an+ $,her 'eneJ,s. This %ac, is c#ear in res*$n+en,Gs B$ar+
Res$#&,i$ns, ,he A*ri# (, 1999 #e,,er $% Ban< Presi+en, 7a)a ,$ Branch Manager Ca+a, an+ ,he
Ma) 1(, 1999 #e,,er $% 7a)a ,$ *e,i,i$ner.

*. 4uncan Assn. of 4e(ail/an1396>7 vs GlaEo >ellco/e 3hils. G.R. 1)299*
9ac,sL
Pe,i,i$ner Tecs$n was hire+ ') res*$n+en, G#aF$ We##c$3e Phi#s. as 3e+ica# re*resen,a,ive.
Tecs$n signe+ a c$n,rac, $% e3*#$)3en,, which s,i*&#a,es a3$ng $,hers, ,ha, he agrees ,$
+isc#$se eFis,ing $r %&,&re re#a,i$nshi* wi,h c$5e3*#$)ees an+ e3*#$)ees $% c$3*e,ing
c$3*anies ,ha, sh$&#+ s&ch re#a,i$nshi* *$ses a c$nTic, $% in,eres,, ,$ resign %r$3 ,he
c$3*an). 7es*i,e re*ea,e+ warnings, Tecs$n an+ Be,,s), an e3*#$)ee $% a c$3*e,ing
c$3*an), g$, 3arrie+. G#aF$ ,rans%erre+ Tecs$n ,$ B&,&an, '&, he +eJe+ s&ch $r+ers an+
c$n,in&e+ ac,ing as 3e+ica# re*resen,a,ive in Ca3arines area. The Na,i$na# C$nci#ia,i$n an+
Me+ia,i$n '$ar+ ren+ere+ as va#i+ ,he *$#ic) an+ ,he righ, ,$ ,rans%er.
Iss&eL

Whe,her $r n$, ,he *$#ic) c$ns,i,&,es a *r$hi'i,i$n agains, 3arriage.
R&#ingL
N$. G#aF$Gs *$#ic) *r$hi'i,ing an e3*#$)ee %r$3 having a re#a,i$nshi* is a va#i+ eFercise $%
3anage3en, *rer$ga,ives as re#a,i$nshi*s $% ,ha, na,&re 3igh, c$3*r$3ise ,he in,eres,s $%
,he c$3*an). G#aF$ has a righ, ,$ g&ar+ i,s ,ra+e secre,s, 3an&%ac,&ring %$r3&#as, 3ar<e,ing
s,ra,egies an+ $,her c$nJ+en,ia# *r$gra3s an+ in%$r3a,i$n %$r c$3*e,i,$rs. The righ, ,$
*r$,ec, i,s ec$n$3ic in,eres,s is rec$gni4e+ ') ,he c$ns,i,&,i$n which rec$gni4es ,he righ, $%
en,er*rises ,$ a+$*, an+ en%$rce s&ch a *$#ic) ,$ *r$,ec, i,s righ, ,$ reas$na'#e re,&rns $n
inves,3en,s an+ %$r eF*ansi$n an+ gr$w,h. In+ee+, whi#e $&r #aws en+eav$r ,$ give #i%e ,$ ,he
c$ns,i,&,i$na# *$#ic) $n s$cia# E&s,ice an+ ,he *r$,ec,i$n $% #a'$r, i, +$es n$, 3ean ,ha, ever)
#a'$r +is*&,e wi## 'e +eci+e+ in %av$r $% ,he w$r<ers. The #aw a#s$ rec$gni4e+ ,ha,
3anage3en, has righ,s which are a#s$ en,i,#e+ ,$ res*ec, an+ en%$rce3en, in ,he in,eres, $%
%air *#a). The cha##enge+ c$3*an) *$#ic) +$es n$, vi$#a,e ,he eA&a# *r$,ec,i$n c#a&se $% ,he
c$ns,i,&,i$n as s&ch c#a&se is a++resse+ $n#) ,$ ,he s,a,e $r ,h$se ac,ing &n+er c$#$r $% i,s
a&,h$ri,). The *$#ic) 'eing A&es,i$ne+ is n$, a *$#ic) agains, 3arriage. An e3*#$)ee $% ,he
c$3*an) re3ains %ree ,$ 3arr) an)$ne $% his $r her ch$$sing. The *$#ic) is ai3e+ a,
res,ric,ing a *ers$na# *rer$ga,ive ,ha, 'e#$ngs $n#) ,$ ,he in+ivi+&a#. H$wever, an e3*#$)eeGs
*ers$na# +ecisi$n +$es n$, +e,rac, ,he e3*#$)er %r$3 eFercising 3anage3en, *rer$ga,ives ,$
ens&re 3aFi3&3 *r$J, an+ '&siness s&ccess.
.. Nor:is 9ra&ing Co., vs. NLRC, G.R. No. 1)-1.9, Augus( 19, 2"".
a#ts:
Pe,i,i$ner N$r<is Tra+ing C$., Inc. e3*#$)e+ *riva,e res*$n+en, Ma. Ar#ene C. Gni#$ $n March
1, 199(, ini,ia##) ,raine+ as a+3inis,ra,i$n an+ Jnance $Icer assigne+ ,$ ,he c$3*an)Gs
Page 99
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
'ranch a, Ca#a3'a, Lag&na. :n 6an&ar) !., !((1, she was *r$3$,e+ as Ac,ing Seni$r Branch
C$n,r$# :Icer %$r Bic$# Regi$n. As s&ch, she was ins,r&c,e+ ') her i33e+ia,e s&*eri$r ,$
c$nJr3 ,ransac,i$ns *er,aining ,$ c$##ec,i$ns an+ +e*$si,s $% BC: Marivic 9a&ra a, P$#ang&i.
In a 3e3$ran+&3 +a,e+ Ma) !!, !((!, *riva,e res*$n+en, was in%$r3e+ a'$&, a recen,
c$3*an) a&+i, which +isc#$se+ ,ha, she ha+ +isregar+e+ ,he +e,ai#e+ ins,r&c,i$ns $% her
s&*eri$r an+ %ai#e+ ,$ *er%$r3 her +&,ies as a Seni$r Branch C$n,r$# :Icer. An inves,iga,i$n
') ,he c$3*an)Gs In,erna# A&+i, Gr$&* ens&e+ an+ *riva,e res*$n+en, was %$r3a##) charge+
wi,h MNeg#igence Res&#,ing ,$ Ma,eria# L$ss.N A%,er ,he hearing $% ,he IAP was c$nc#&+e+,
*riva,e res*$n+en, 3a+e a wri,,en MReA&es, %$r Re5assign3en,N ,$ 'e assigne+ as Cashier $%
,he Naga Branch which is vacan, an+ c$nsi+ering ,ha, she is a resi+en, $% Naga Ci,) an+ a
3$,her $% ,hree gr$wing <i+s. :n 6&#) !9, !((!, she rei,era,e+ ,his reA&es, ,$ 'e assigne+
anew in Naga Ci,) whi#e wai,ing %$r ,he res$#&,i$n $% her case. In A&g&s, an+ Se*,e3'er !((!,
*riva,e res*$n+en, a#s$ reA&es,e+ ,$ 'e %&rnishe+ a c$*) $% ,he 3in&,es an+ a&+i, re*$r, $%
,he IAP inves,iga,i$n. The c$3*an) +i+ n$, acce+e ,$ her reA&es,s an+ she c$n,in&e+
re*$r,ing a, ,he 3ain $Ice *er%$r3ing wha,ever w$r< assigne+ ,$ her, s&ch as 3$ni,$ring $%
c$##ec,i$ns a, C&'a$ Branch. 9$r ,he *eri$+ March 115A*ri# 1, !((, ,he c$3*an) wi,hhe#+ ,he
Trans*$r,a,i$n an+ Trave# A##$wance =TNT? 'eing receive+ ') *riva,e res*$n+en, a3$&n,ing ,$
P",222.((, *r$3*,ing her ,$ %$r3a##) *r$,es, her MA&es,i$na'#e assign3en,N a, ,he H$3e
:Ice in Man+a#&)$ng Ci,) which she insis,e+ is agains, her a**$in,3en, as Seni$r BC: %$r
Bic$# Regi$n an+ Sa3ar. She wr$,e a #e,,er ,$ ,he 3anage3en, cri,ici4ing ,he3 %$r wan,ing ,$
ease her $&, $% ,he c$3*an) +&e ,$ a #a'$r case J#e+ ') her h&s'an+, wh$ a#s$ w$r<e+ a,
N$r<is %$r 3$re ,han 1 )ears, an+ s&ch wi,h+rawa# $% her ,rave# a##$wances is ca#c&#a,e+ ,$
ca&se s&Kering $n her *ar,. She eF*resse+ ,ha, ,he si,&a,i$n has 'ec$3e &n'eara'#e %$r her
s$ ,ha, she is %$rce+ ,$ re*$r, 'ac< ,$ Naga Ci,) eKec,ive March !., !((, ,here 'eing n$
wri,,en $r+er iss&e+ ') ,he 3anage3en, %$r her ,$ s,a) in ,he 3ain $Ice. >*$n re,&rning ,$
Naga Ci,), h$wever, *riva,e res*$n+en, #earne+ ,ha, ,he 3anage3en, ins,r&c,e+ ,$ +en) her
en,r) ,$ ,he 'ranch *re3ises an+ access ,$ c$3*an) rec$r+s. She was $r+ere+ ,$ re*$r, 'ac<
,$ ,he 3ain $Ice an+ ,$ eF*#ain wh) n$ +isci*#inar) ac,i$n sh$&#+ 'e ,a<en agains, her %$r
a'an+$n3en, $% w$r<, which &n+er eFis,ing c$3*an) *$#ic), carries ,he *ena#,) $% +is3issa#.
Priva,e res*$n+en,, h$wever, 3ain,aine+ her *$si,i$n ,ha, she c$&#+ n$ #$nger re*$r, ,$ ,he
H$3e :Ice a%,er ,he c$3*an) wi,h+rew her 3$n,h#) MTNT.N She asser,e+ ,ha, c$nsi+ering
her +iIc&#, si,&a,i$n, she ha+ n$ ch$ice '&, ,$ s,ic< ,$ her a**$in,3en, as Seni$r BC:5Bic$#
Regi$n an+ Sa3ar ,here 'eing n$ s&*erse+ing 3e3$ changing her assign3en,. :n A*ri# 1.,
!((, *riva,e res*$n+en, receive+ a 3e3$ %r$3 ,he IAP %$r an inves,iga,i$n $n ,he charges $%
a'an+$n3en, $% w$r<, ins&'$r+ina,i$n an+ re%&sa# ,$ re*$r, 'ac< ,$ ,he *#ace $% w$r<, an+
+irec,ing her ,$ a,,en+ a hearing se, $n A*ri# 1-, !(( a, ,he 3ain $Ice, which she %ai#e+ ,$
a,,en+ 'eca&se ,he c$3*an) +i+ n$, ac, $n her reA&es, ,$ a##$w her cash a+vances ,$ +e%ra)
her ,rave# eF*enses. Her sa#ar) ,hen was wi,hhe#+, *r$3*,ing her ,$ J#e a case wi,h ,he NLRC
$n A*ri# !1, !(( %$r ,he reas$n ,ha, ,he si,&a,i$n ha+ 'ec$3e &n'eara'#e %$r her ,an,a3$&n,
,$ c$ns,r&c,ive +is3issa#, wi,h c#ai3s %$r n$n*a)3en, $% sa#aries, service incen,ive #eave *a),
1,h 3$n,h *a), an+ *ra)ing %$r reins,a,e3en, wi,h %&## 'ac< wages, an+ 3$ra# an+ eFe3*#ar)
+a3ages, an+ a,,$rne)Gs %ees. :n A*ri# (, !((, ,he c$3*an) ,er3ina,e+ her services
eKec,ive Ma) !, !((. The La'$r Ar'i,er %$&n+ N$r<is g&i#,) $% i##ega# +is3issa# an+ ,he NLRC
an+ ,he C$&r, $% A**ea#s, $n a**ea#, aIr3e+ ,he +ecisi$n. Pe,i,i$ner c$n,en+s ,ha, i,s ac,s
were #egi,i3a,e eFercises $% ,he c$r*$ra,i$nGs 3anage3en, *rer$ga,ive an+ ,ha, ,he *riva,e
res*$n+en, was g&i#,) $% ins&'$r+ina,i$n an+ wi##%&# +is$'e+ience E&s,i%)ing her ,he
,er3ina,i$n.
Iss&esL
Wha, are ,he sc$*e an+ ,he #i3i,a,i$ns $n ,he eFercise $% 3anage3en, *rer$ga,ives,
*ar,ic&#ar#) $n ,he ,rans%er $% e3*#$)eesW
Wha, is ,he ,es, ,$ +e,er3ine ,he va#i+i,) $% ,he ,rans%er $% e3*#$)eesW
Page 1((
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R&#ingL
C$nce+e+#), e3*#$)ers are a##$we+, &n+er ,he 'r$a+ c$nce*, $% 3anage3en, *rer$ga,ive, ,$
reg&#a,e a## as*ec,s $% *ers$nne# a+3inis,ra,i$n inc#&+ing hiring, w$r< assign3en,s, w$r<ing
3e,h$+s, ,i3e, *#ace an+ 3anner $% w$r<, ,$$#s ,$ 'e &se+, *r$cesses ,$ 'e %$##$we+,
s&*ervisi$n $% w$r<ers, w$r<ing reg&#a,i$ns, ,rans%er $% e3*#$)ees, w$r< s&*ervisi$n, #a)5$K $%
w$r<ers, an+ ,he +is3issa# an+ reca## $% w$r<ers. I, is ,he e3*#$)erGs *rer$ga,ive, 'ase+ $n i,s
assess3en, an+ *erce*,i$n $% i,s e3*#$)eesG A&a#iJca,i$ns, a*,i,&+es, an+ c$3*e,ence, ,$
3$ve ,he3 ar$&n+ in ,he vari$&s areas $% i,s '&siness $*era,i$ns in $r+er ,$ ascer,ain where
,he) wi## %&nc,i$n wi,h 3aFi3&3 'eneJ, ,$ ,he c$3*an). An e3*#$)eeGs righ, ,$ sec&ri,) $%
,en&re +$es n$, give hi3 s&ch a ves,e+ righ, in his *$si,i$n as w$&#+ +e*rive ,he c$3*an) $%
i,s *rer$ga,ive ,$ change his assign3en, $r ,rans%er hi3 where he wi## 'e 3$s, &se%&#. When
his ,rans%er is n$, &nreas$na'#e, n$r inc$nvenien,, n$r *reE&+icia# ,$ hi3, an+ i, +$es n$,
inv$#ve a +e3$,i$n in ran< $r a +i3in&,i$n $% his sa#aries, 'eneJ,s, an+ $,her *rivi#eges, ,he
e3*#$)ee 3a) n$, c$3*#ain ,ha, i, a3$&n,s ,$ a c$ns,r&c,ive +is3issa#.
The 3anage3en,Gs righ, ,$ ,rans%er $r re5assign i,s *ers$nne#, h$wever, is n$, a's$#&,e as i, is
s&'Eec, ,$ #i3i,a,i$ns i3*$se+ ') #aw, c$##ec,ive 'argaining agree3en,s, an+ genera#
*rinci*#es $% %air *#a) an+ E&s,ice. The 3anageria# *rer$ga,ive ,$ ,rans%er *ers$nne# 3&s, 'e
eFercise+ wi,h$&, grave a'&se $% +iscre,i$n, 'earing in 3in+ ,he 'asic e#e3en,s $% E&s,ice an+
%air *#a). Having ,he righ, sh$&#+ n$, 'e c$n%&se+ wi,h ,he 3anner in which ,ha, righ, is
eFercise+. Th&s, i, cann$, 'e &se+ as a s&',er%&ge ') ,he e3*#$)er ,$ ri+ hi3se#% $% an
&n+esira'#e w$r<er. In *ar,ic&#ar, ,he e3*#$)er 3&s, 'e a'#e ,$ sh$w ,ha, ,he ,rans%er is n$,
&nreas$na'#e, inc$nvenien, $r *reE&+icia# ,$ ,he e3*#$)eeO n$r +$es i, inv$#ve a +e3$,i$n in
ran< $r a +i3in&,i$n $% his sa#aries, *rivi#eges an+ $,her 'eneJ,s. Sh$&#+ ,he e3*#$)er %ai# ,$
$verc$3e ,his '&r+en $% *r$$%, ,he e3*#$)eeGs ,rans%er sha## 'e ,an,a3$&n, ,$ c$ns,r&c,ive
+is3issa#.
). 3L49 vs. 3a?uio, G.R. No. 1.2)-9, 7c(oer 12, 2"".
9ac,sL
Pe,i,i$ner Phi#i**ine L$ng 7is,ance Te#e*h$ne C$3*an), Inc. =PL7T? has !" EFchanges in i,s
Grea,er Me,r$ Mani#a =GMM? Ne,w$r<. A#%re+$ S. Pag&i$ was ,he Hea+ $% ,he Garne, EFchange
wh$ sen, a #e,,er ,$ his i33e+ia,e s&*ervis$r an+ Ass,. 8P cri,ici4ing ,he PL7T cri,eria %$r
*er%$r3ance ra,ing as &n%air 'eca&se ,he) +e*en+e+ $n 3an*$wer a%,er receiving i,s
a**raisa# ra,ing. He a#s$ s&gges,e+ ,ha, ,he cri,eria %ai#e+ ,$ rec$gni4e ,ha, eFchanges wi,h
new *#an,s c$&#+ easi#) 3ee, ,he $'Eec,ives $% GMM c$3*are+ ,$ ,h$se wi,h $#+ *#an,s.
7es*i,e Pag&i$Gs cri,icis3, Garne, EFchange, ,he $#+es, *#an, in GMM, $',aine+ ,he ,$* ra,ing
in ,he GMM. Never,he#ess, Pag&i$ rei,era,e+ his #e,,er ,$ San,$s an+ $'Eec,e+ ,$ ,he
*er%$r3ance ra,ing as i, was 'ase+ $n#) $n ,he a,,ain3en, $% $'Eec,ives, wi,h$&, c$nsi+ering
$,her re#evan, %ac,$rs. Tw$ )ears #a,er $n 6&ne 199-, PL7T re'a#ance+ ,he 3an*$wer $% ,he
Eas, Cen,er. Pag&i$ wr$,e San,$s an+ reA&es,e+ rec$nsi+era,i$n $% ,he 3an*$wer
re'a#ancing, c#ai3ing i, was &n%air ,$ Garne, EFchange 'eca&se as ,he $#+es, eFchange in ,he
Eas, Cen,er, i, was +isa##$we+ ,$ &se c$n,rac,$rs %$r new ins,a##a,i$ns an+ was n$, 3a+e
'eneJciar) $% ,he c&,5$ver '$n&s. He was ,hen was reassigne+ as Hea+ %$r S*ecia#
Assign3en, a, ,he :Ice $% ,he GMM Eas, Cen,er an+ as<e+ ,$ ,&rn $ver his %&nc,i$ns as
Garne, EFchange Hea+ ,$ Tessie G$. Be#ieving ,ha, his ,rans%er was a +isci*#inar) ac,i$n,
Pag&i$ reA&es,e+ ,he Jrs, 8P %$r a %$r3a# hearing $% ,he charges agains, hi3 an+ as<e+ ,ha,
his reassign3en, 'e +e%erre+. He a#s$ J#e+ a c$3*#ain, agains, his s&*ervis$r %$r grave a'&se
Page 1(1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$% a&,h$ri,) an+ 3ani*&#a,i$n $% ,he Eas, Cen,er *er%$r3ance. 9in+ings were ,ha, ,he 3e3$
was in $r+er as i, was 'ase+ $n ,he Jn+ing ,ha, Pag&i$ was n$, a ,ea3 *#a)er an+ cann$,
acce*, +ecisi$ns $% 3anage3en,, which is sh$r, $% ins&'$r+ina,i$n. He was ,hen a+vise+ ,$
,rans%er ,$ an) gr$&* in ,he c$3*an) ,ha, 3a) avai# $% his services. Li<ewise, an$,her 3e3$
in%$r3e+ Pag&i$ ,ha, his ,rans%er was n$, in ,he na,&re $% a +isci*#inar) ac,i$n ,ha, reA&ire+
inves,iga,i$n an+ ,ha, he agree+ wi,h ,he reas$ns $% ,he ,rans%er. Aggrieve+, Pag&i$ J#es a
c$3*#ain, %$r i##ega# +is3issa# wi,h *ra)er %$r reins,a,e3en, an+ +a3ages which was #a,er
a3en+e+ ,$ i##ega# +e3$,i$n wi,h *ra)er %$r reversi$n ,$ $#+ *$si,i$n, +a3ages an+ a,,$rne)Gs
%ees.
Iss&eL
In 'rie%, ,he *e,i,i$ner as<s ,his C$&r, ,$ res$#ve n$w ,he #ega#i,) $% Pag&i$Gs ,rans%er.
R&#ingL
PL7T a##eges ,ha, ,he NLRC r&#ing w$&#+ a##$w a change $% ca&se $% ac,i$n since ,he c$3*#ain,
a##ege+ Mi##ega# +e3$,i$nN whi#e ,he +ecisi$n inv$#ve+ Mi##ega# ,rans%er.N Pre%a,$ri#), we n$,e
%r$3 ,he rec$r+s ,ha, ,here has 'een n$ change $% ca&se $% ac,i$n %r$3 Mi##ega# +e3$,i$nN ,$
Mi##ega# ,rans%er.N I##ega# +e3$,i$n is a ,)*e $% i##ega# ,rans%er. M$re$ver, i, is %a3i#iar an+
%&n+a3en,a# +$c,rine ,ha, i, is n$, ,he ,i,#e $% ,he ac,i$n '&, ,he a##ega,i$ns in ,he *#ea+ing
,ha, +e,er3ines ,he na,&re $% ,he ac,i$n. An e3*#$)er is %ree ,$ reg&#a,e, acc$r+ing ,$ his $wn
+iscre,i$n an+ E&+g3en,, a## as*ec,s $% e3*#$)3en,, inc#&+ing ,he ,rans%er $% e3*#$)ees. I, is
,he e3*#$)erGs *rer$ga,ive, 'ase+ $n i,s assess3en, an+ *erce*,i$n $% i,s e3*#$)eesG
A&a#iJca,i$ns, a*,i,&+es, an+ c$3*e,ence, ,$ +e*#$) i,s e3*#$)ees in ,he vari$&s areas $% i,s
'&siness $*era,i$ns in $r+er ,$ ascer,ain where ,he) wi## %&nc,i$n wi,h 3aFi3&3 'eneJ, ,$ ,he
c$3*an). An e3*#$)eeGs righ, ,$ sec&ri,) $% ,en&re +$es n$, give hi3 s&ch a ves,e+ righ, in
his *$si,i$n as w$&#+ +e*rive ,he c$3*an) $% i,s *rer$ga,ive ,$ change his assign3en, $r
,rans%er hi3 where he wi## 'e 3$s, &se%&#.
N$ne,he#ess, ,here are #i3i,s ,$ ,he 3anage3en, *rer$ga,ive. Whi#e i, 3a) 'e c$nce+e+ ,ha,
3anage3en, is in ,he 'es, *$si,i$n ,$ <n$w i,s $*era,i$na# nee+s, ,he eFercise $%
3anage3en, *rer$ga,ive cann$, 'e &,i#i4e+ ,$ circ&3ven, ,he #aw an+ *&'#ic *$#ic) $n #a'$r
an+ s$cia# E&s,ice. Tha, *rer$ga,ive acc$r+e+ 3anage3en, sh$&#+ n$, +e%ea, ,he ver)
*&r*$se %$r which $&r #a'$r #aws eFis,L ,$ 'a#ance ,he c$nTic,ing in,eres,s $% #a'$r an+
3anage3en,. B) i,s ver) na,&re, 3anage3en, *rer$ga,ive 3&s, 'e eFercise+ a#wa)s wi,h ,he
*rinci*#es $% %air *#a) an+ E&s,ice. In *ar,ic&#ar, ,he e3*#$)er 3&s, 'e a'#e ,$ sh$w ,ha, ,he
,rans%er is n$, &nreas$na'#e, inc$nvenien, $r *reE&+icia# ,$ ,he e3*#$)eeO n$r +$es i, inv$#ve a
+e3$,i$n in ran< $r a +i3in&,i$n $% his sa#aries, *rivi#eges an+ $,her 'eneJ,s. The e3*#$)er
'ears ,he '&r+en $% *r$ving ,ha, ,he ,rans%er $% ,he e3*#$)ee has c$3*#ie+ wi,h ,he %$reg$ing
,es,.
In ,he *resen, case, we see n$ cre+i'#e reas$n %$r Pag&i$Gs ,rans%er eFce*, his cri,icis3s $% ,he
c$3*an)Gs *er%$r3ance eva#&a,i$n 3e,h$+s. Base+ $n ,he &n+is*&,e+ %ac,s, Garne,
EFchange was +$ing we## an+ eFce##e+ in ,he *er%$r3ance ra,ing. In ,he sa3e wa), Pag&i$Gs
*er%$r3ance was c$nsis,en,#) ra,e+ as $&,s,an+ing. There was a#s$ n$ *r$$% ,ha, Pag&i$
re%&se+ ,$ c$3*#) wi,h an) 3anage3en, *$#ic). Pa,en,#), his ,rans%er c$&#+ n$, 'e +&e ,$
*$$r *er%$r3ance. Nei,her was i, 'eca&se he was nee+e+ in ,he new *$s, %$r ,he new
assign3en, was %&nc,i$n#ess an+ i, was n$,hing '&, a ,i,#e. Pag&i$Gs ,rans%er c$&#+ $n#) 'e
ca&se+ ') ,he 3anage3en,Gs nega,ive rece*,i$n $% his c$33en,s. I, is *reE&+icia# ,$ Pag&i$
'eca&se i, #e%, hi3 $&, %$r a *$ssi'#e *r$3$,i$n as he was assigne+ ,$ a %&nc,i$n#ess *$si,i$n
wi,h nei,her $Ice n$r s,aK.
Page 1(!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Hence, ,rans%er was n$, va#i+.
7. S(ar 3a%er Cor%., vs. Si/ol, G.R. No. 1)*77*, A%ril 12, 2"")
9ac,sL
Acc$r+ing ,$ ,he res*$n+en,s, Si3'$# an+ C$3ia a##ege ,ha, ,he) +i+ n$, resign v$#&n,ari#)O
,he) were c$3*e##e+ ,$ resign in view $% an i##ega# c$3*an) *$#ic). As ,$ res*$n+en, Es,re##a,
she a##eges ,ha, she ha+ a re#a,i$nshi* wi,h c$5w$r<er Q&biga wh$ 3isre*resen,e+ hi3se#% as
a 3arrie+ '&, se*ara,e+ 3an. A%,er he g$, her *regnan,, she +isc$vere+ ,ha, he was n$,
se*ara,e+. Th&s, she severe+ her re#a,i$nshi* wi,h hi3 ,$ av$i+ +is3issa# +&e ,$ ,he c$3*an)
*$#ic). :n N$ve3'er (, 1999, she 3e, an acci+en, an+ was a+vise+ ') ,he +$c,$r a, ,he
:r,h$*e+ic H$s*i,a# ,$ rec&*era,e %$r ,wen,)5$ne =!1? +a)s. She re,&rne+ ,$ w$r< $n
7ece3'er !1, 1999 '&, she %$&n+ $&, ,ha, her na3e was $n5h$#+ a, ,he ga,e. She was +enie+
en,r). She was +irec,e+ ,$ *r$cee+ ,$ ,he *ers$nne# $Ice where $ne $% ,he s,aK han+e+ her a
3e3$ran+&3. The 3e3$ran+&3 s,a,e+ ,ha, she was 'eing +is3isse+ %$r i33$ra# c$n+&c,.
She re%&se+ ,$ sign ,he 3e3$ran+&3 'eca&se she was $n #eave %$r ,wen,)5$ne =!1? +a)s an+
has n$, 'een given a chance ,$ eF*#ain. The 3anage3en, as<e+ her ,$ wri,e an eF*#ana,i$n.
H$wever, a%,er s&'3issi$n $% ,he eF*#ana,i$n, she was n$ne,he#ess +is3isse+ ') ,he c$3*an).
7&e ,$ her &rgen, nee+ %$r 3$ne), she #a,er s&'3i,,e+ a #e,,er $% resigna,i$n in eFchange %$r
her ,hir,een,h 3$n,h *a).

Res*$n+en,s #a,er J#e+ a c$3*#ain, %$r &n%air #a'$r *rac,ice, c$ns,r&c,ive +is3issa#, se*ara,i$n
*a) an+ a,,$rne)Gs %ees. The) averre+ ,ha, ,he a%$re3en,i$ne+ c$3*an) *$#ic) is i##ega# an+
c$n,ravenes Ar,ic#e 1- $% ,he La'$r C$+e.
Iss&eL
Whe,her $r n$, ,he 1992 P$#ic)BReg&#a,i$n $% ,he c$3*an) is vi$#a,ive $% ,he C$ns,i,&,i$na#
righ,s ,$war+s 3arriage an+ ,he %a3i#) $% e3*#$)ees an+ $% ar,ic#e 1- $% ,he La'$r C$+e.
R&#ingL
The S&*re3e C$&r, he#+ ,ha, The 191" C$ns,i,&,i$n &n+er Ar,ic#e II, Sec,i$n 11O Ar,ic#e CIII,
Sec,i$n s,a,e $&r *$#ic) ,$war+s ,he *r$,ec,i$n $% #a'$r &n+er ,he %$##$wing *r$visi$ns. The
Civi# C$+e #i<ewise *r$,ec,s #a'$r wi,h ,he %$##$wing *r$visi$ns s&ch as ar,ic#es 1"(( an+ 1"(!.
The La'$r C$+e is ,he 3$s, c$3*rehensive *iece $% #egis#a,i$n *r$,ec,ing #a'$r. The case a,
'ar inv$#ves Ar,ic#e 1- $% ,he La'$r C$+e which *r$vi+esL
Ar,. 1-. I, sha## 'e &n#aw%&# %$r an e3*#$)er ,$ reA&ire as a c$n+i,i$n $% e3*#$)3en, $r
c$n,in&a,i$n $% e3*#$)3en, ,ha, a w$3an e3*#$)ee sha## n$, ge, 3arrie+, $r ,$ s,i*&#a,e
eF*ress#) $r ,aci,#) ,ha, &*$n ge,,ing 3arrie+ a w$3an e3*#$)ee sha## 'e +ee3e+ resigne+ $r
se*ara,e+, $r ,$ ac,&a##) +is3iss, +ischarge, +iscri3ina,e $r $,herwise *reE&+ice a w$3an
e3*#$)ee 3ere#) ') reas$n $% her 3arriage.
In +en)ing ,he c$n,en,i$n $% ,he *e,i,i$ner c$3*an), ,he SC a**#ie+ ,he ,w$ %ac,$rs ,$ E&s,i%) a
'$na J+e $cc&*a,i$na# A&a#iJca,i$nL

Since ,he Jn+ing $% a '$na J+e $cc&*a,i$na# A&a#iJca,i$n E&s,iJes an e3*#$)erGs n$5s*$&se
r&#e, ,he eFce*,i$n is in,er*re,e+ s,ric,#) an+ narr$w#). There 3&s, 'e a c$3*e##ing '&siness
Page 1(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
necessi,) %$r which n$ a#,erna,ive eFis,s $,her ,han ,he +iscri3ina,$r) *rac,ice. T$ E&s,i%) a
'$na J+e $cc&*a,i$na# A&a#iJca,i$n, ,he e3*#$)er 3&s, *r$ve ,w$ %ac,$rsL =1? ,ha, ,he
e3*#$)3en, A&a#iJca,i$n is reas$na'#) re#a,e+ ,$ ,he essen,ia# $*era,i$n $% ,he E$' inv$#ve+O
an+, =!? ,ha, ,here is a %ac,&a# 'asis %$r 'e#ieving ,ha, a## $r s&'s,an,ia##) a## *ers$ns 3ee,ing
,he A&a#iJca,i$n w$&#+ 'e &na'#e ,$ *r$*er#) *er%$r3 ,he +&,ies $% ,he E$'.
The reA&ire3en, ,ha, a c$3*an) *$#ic) 3&s, 'e reas$na'#e &n+er ,he circ&3s,ances ,$
A&a#i%) as a va#i+ eFercise $% 3anage3en, *rer$ga,ive was a#s$ a, iss&e in ,he 199" case $%
Phi#i**ine Te#egra*h an+ Te#e*h$ne C$3*an) v. NLRC. In sai+ case, ,he e3*#$)ee was
+is3isse+ in vi$#a,i$n $% *e,i,i$nerGs *$#ic) $% +isA&a#i%)ing %r$3 w$r< an) w$3an w$r<er wh$
c$n,rac,s 3arriage. We he#+ ,ha, ,he c$3*an) *$#ic) vi$#a,es ,he righ, agains, +iscri3ina,i$n
aK$r+e+ a## w$3en w$r<ers &n+er Ar,ic#e 1- $% ,he La'$r C$+e, '&, es,a'#ishe+ a *er3issi'#e
eFce*,i$n, vi4.L

A reA&ire3en, ,ha, a w$3an e3*#$)ee 3&s, re3ain &n3arrie+ c$&#+ 'e E&s,iJe+ as a M'$na
J+e $cc&*a,i$na# A&a#iJca,i$n,N $r B9:D, where ,he *ar,ic&#ar reA&ire3en,s $% ,he E$' w$&#+
E&s,i%) ,he sa3e, '&, n$, $n ,he gr$&n+ $% a genera# *rinci*#e, s&ch as ,he +esira'i#i,) $%
s*rea+ing w$r< in ,he w$r<*#ace. A reA&ire3en, $% ,ha, na,&re w$&#+ 'e va#i+ *r$vi+e+ i,
reTec,s an inheren, A&a#i,) reas$na'#) necessar) %$r sa,is%ac,$r) E$' *er%$r3ance.

The cases $% 7&ncan an+ PT;T ins,r&c, &s ,ha, ,he reA&ire3en, $% reas$na'#eness 3&s, 'e
c#ear#) es,a'#ishe+ ,$ &*h$#+ ,he A&es,i$ne+ e3*#$)3en, *$#ic). The e3*#$)er has ,he '&r+en
,$ *r$ve ,he eFis,ence $% a reas$na'#e '&siness necessi,). The '&r+en was s&ccess%&##)
+ischarge+ in 7&ncan '&, n$, in PT;T.

The SC +$es n$, Jn+ a reas$na'#e '&siness necessi,) in ,he case a, 'ar.
Pe,i,i$nersG s$#e c$n,en,i$n ,ha, M,he c$3*an) +i+ n$, E&s, wan, ,$ have ,w$ =!? $r 3$re $% i,s
e3*#$)ees re#a,e+ 'e,ween ,he ,hir+ +egree ') aIni,) an+B$r c$nsang&ini,)N is #a3e. Tha,
,he sec$n+ *aragra*h was 3ean, ,$ give ,ee,h ,$ ,he Jrs, *aragra*h $% ,he A&es,i$ne+ r&#e is
evi+en,#) n$, ,he va#i+ reas$na'#e '&siness necessi,) reA&ire+ ') ,he #aw.

I, is signiJcan, ,$ n$,e ,ha, in ,he case a, 'ar, res*$n+en,s were hire+ a%,er ,he) were %$&n+ J,
%$r ,he E$', '&, were as<e+ ,$ resign when ,he) 3arrie+ a c$5e3*#$)ee. Pe,i,i$ners %ai#e+ ,$
sh$w h$w ,he 3arriage $% Si3'$#, ,hen a Shee,ing Machine :*era,$r, ,$ A#3a 7a)ri,, ,hen an
e3*#$)ee $% ,he Re*ac<ing Sec,i$n, c$&#+ 'e +e,ri3en,a# ,$ i,s '&siness $*era,i$ns. Nei,her
+i+ *e,i,i$ners eF*#ain h$w ,his +e,ri3en, wi## ha**en in ,he case $% Wi#%re+a C$3ia, ,hen a
Pr$+&c,i$n He#*er in ,he Se#ec,ing 7e*ar,3en,, wh$ 3arrie+ H$war+ C$3ia, ,hen a he#*er in
,he c&,,er53achine. The *$#ic) is *re3ise+ $n ,he 3ere %ear ,ha, e3*#$)ees 3arrie+ ,$ each
$,her wi## 'e #ess eIcien,. I% we &*h$#+ ,he A&es,i$ne+ r&#e wi,h$&, va#i+ E&s,iJca,i$n, ,he
e3*#$)er can crea,e *$#icies 'ase+ $n an &n*r$ven *res&3*,i$n $% a *erceive+ +anger a, ,he
eF*ense $% an e3*#$)eeGs righ, ,$ sec&ri,) $% ,en&re.

Pe,i,i$ners c$n,en+ ,ha, ,heir *$#ic) wi## a**#) $n#) when $ne e3*#$)ee 3arries a c$5
e3*#$)ee, '&, ,he) are %ree ,$ 3arr) *ers$ns $,her ,han c$5e3*#$)ees. The A&es,i$ne+ *$#ic)
3a) n$, %acia##) vi$#a,e Ar,ic#e 1- $% ,he La'$r C$+e '&, i, crea,es a +is*r$*$r,i$na,e eKec,
an+ &n+er ,he +is*ara,e i3*ac, ,he$r), ,he $n#) wa) i, c$&#+ *ass E&+icia# scr&,in) is a
sh$wing ,ha, i, is reas$na'#e +es*i,e ,he +iscri3ina,$r), a#'ei, +is*r$*$r,i$na,e, eKec,. The
%ai#&re $% *e,i,i$ners ,$ *r$ve a #egi,i3a,e '&siness c$ncern in i3*$sing ,he A&es,i$ne+ *$#ic)
cann$, *reE&+ice ,he e3*#$)eeGs righ, ,$ 'e %ree %r$3 ar'i,rar) +iscri3ina,i$n 'ase+ &*$n
s,ere$,)*es $% 3arrie+ *ers$ns w$r<ing ,$ge,her in $ne c$3*an). 7ecisi$n $% ,he CA aIr3e+.
Page 1(.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
-. Rivera vs. Soli&an:, G.R. No. 1)32)9, A%ril 19, 2"")
9ac,sL
Rivera s,ar,e+ w$r<ing wi,h S$#i+'an< C$r*$ra,i$n as an a&+i, c#er< since 6&#) 1, 19"". Then
*r$3$,e+ as cre+i, inves,iga,$r, seni$r c#er<, assis,an, acc$&n,an,, an+ Jna##) as assis,an,
3anager. Pri$r ,$ his re,ire3en,, he 'eca3e ,he Manager $% ,he 'an<Gs Cre+i, Inves,iga,i$n
an+ A**raisa# 7ivisi$n $% ,he C$ns&3erSs Ban<ing Gr$&*. In ,he 3ean,i3e, Rivera an+ his
'r$,her5in5#aw *&, &* a *$&#,r) '&siness in Cavi,e. In 7ece3'er 199., S$#i+'an< $Kere+ ,w$
re,ire3en, *r$gra3s ,$ i,s e3*#$)eesL =a? ,he :r+inar) Re,ire3en, Pr$gra3 =:RP?, &n+er
which an e3*#$)ee w$&#+ receive 12V $% his 3$n,h#) 'asic sa#ar) 3&#,i*#ie+ ') ,he n&3'er $%
)ears in serviceO an+ ='? ,he S*ecia# Re,ire3en, Pr$gra3 =SRP?, &n+er which a re,iring
e3*#$)ee w$&#+ receive !2(V $% ,he gr$ss 3$n,h#) sa#ar) 3&#,i*#ie+ ') ,he n&3'er $% )ears
in service. Rivera +eci+e+ ,$ +ev$,e his ,i3e an+ a,,en,i$n ,$ his *$&#,r) '&siness in Cavi,e
an+ a**#ie+ %$r re,ire3en, &n+er ,he SRP. S$#i+'an< a**r$ve+ ,he a**#ica,i$n an+ c$nJr3e+
his se*ara,i$n %r$3 S$#i+'an< $n 9e'r&ar) !2, 1992. H$wever, S$#i+'an< reA&ire+ Rivera ,$
sign an &n+a,e+ Re#ease, Waiver an+ D&i,c#ai3, which was n$,ari4e+ $n March 1, 1992. He
ac<n$w#e+ge+ recei*, $% ,he ne, *r$cee+s $% his se*ara,i$n an+ re,ire3en, 'eneJ,s an+
*r$3ise+ ,ha, Phe w$&#+ n$,, a, an) ,i3e, in an) 3anner wha,s$ever, +irec,#) $r in+irec,#)
engage in an) &n#aw%&# ac,ivi,) *reE&+icia# ,$ ,he in,eres, $% S$#i+'an<, i,s *aren,, aI#ia,e $r
s&'si+iar) c$3*anies, ,heir s,$c<h$#+ers, $Icers, +irec,$rs, agen,s $r e3*#$)ees, an+ ,heir
s&ccess$rs5in5in,eres, an+ wi## n$, +isc#$se an) in%$r3a,i$n c$ncerning ,he '&siness $%
S$#i+'an<, i,s 3anner $r $*era,i$n, i,s *#ans, *r$cesses, $r +a,a $% an) <in+.P He a#s$ signe+ in
an >n+er,a<ing &*$n which he *r$3ise+ ,ha, Pn$, ,$ see< e3*#$)3en, wi,h a c$3*e,i,$r 'an<
$r Jnancia# ins,i,&,i$n wi,hin $ne =1? )ear %r$3 9e'r&ar) !1, 1992, an+ ,ha, an) 'reach $% ,he
>n+er,a<ing $r ,he *r$visi$ns $% ,he Re#ease, Waiver an+ D&i,c#ai3 w$&#+ en,i,#e S$#i+'an< ,$
a ca&se $% ac,i$n agains, hi3 'e%$re ,he a**r$*ria,e c$&r,s $% #awN. B&, $n Ma) 1, 1992,
Rivera g$, e3*#$)e+ wi,h EA&i,a'#e Ban<ing C$r*$ra,i$n =EA&i,a'#e? as Manager $% i,s Cre+i,
Inves,iga,i$n an+ A**raisa# 7ivisi$n $% i,s C$ns&3ersS Ban<ing Gr$&*. >*$n #earning ,his,
S$#i+'an< wr$,e a #e,,er +a,e+ Ma) 11, 1992, in%$r3ing Rivera ,ha, he ha+ vi$#a,e+ ,he
>n+er,a<ing an+ +e3an+e+ ,he re,&rn $% a## ,he 3$ne,ar) 'eneJ,s he receive+ in
c$nsi+era,i$n $% ,he SRP wi,hin Jve =2? +a)s %r$3 recei*,O $,herwise, a**r$*ria,e #ega# ac,i$n
w$&#+ 'e ,a<en agains, hi3.
Iss&eL
Whe,her ,he e3*#$)3en, 'an inc$r*$ra,e+ in ,he >n+er,a<ing which *e,i,i$ner eFec&,e+ &*$n
his re,ire3en, is &nreas$na'#e, $**ressive, hence, c$n,rar) ,$ *&'#ic *$#ic).
R&#ingL
The *e,i,i$n is 3eri,$ri$&s. There is n$ +is*&,e 'e,ween ,he *ar,ies ,ha,, in c$nsi+era,i$n %$r
his avai#3en, $% ,he SRP, *e,i,i$ner eFec&,e+ ,he Re#ease, Waiver an+ D&i,c#ai3, an+ ,he
>n+er,a<ing as s&**#e3en, ,here,$, an+ ,ha, he receive+ re,ire3en, *a) a3$&n,ing ,$
P9-,-19.!1 %r$3 res*$n+en,. We agree wi,h *e,i,i$nerSs c$n,en,i$n ,ha, ,he iss&e as ,$
whe,her ,he *$s,5re,ire3en, c$3*e,i,ive e3*#$)3en, 'an inc$r*$ra,e+ in ,he >n+er,a<ing is
agains, *&'#ic *$#ic) is a gen&ine iss&e $% %ac,, reA&iring ,he *ar,ies ,$ *resen, evi+ence ,$
s&**$r, ,heir res*ec,ive c#ai3s. The we##5en,renche+ +$c,rine is ,ha, ,he #aw +$es n$, re#ieve a
*ar,) %r$3 ,he eKec,s $% an &nwise, %$$#ish $r +isas,r$&s c$n,rac,, en,ere+ in,$ wi,h %&##
awareness $% wha, he was +$ing an+ en,ere+ in,$ an+ carrie+ $&, in g$$+ %ai,h. S&ch a
c$n,rac, wi## n$, 'e +iscar+e+ even i% ,here was a 3is,a<e $% #aw $r %ac,. C$&r,s have n$
E&ris+ic,i$n ,$ #$$< in,$ ,he wis+$3 $% ,he c$n,rac, en,ere+ in,$ ') an+ 'e,ween ,he *ar,ies $r
Page 1(2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,$ ren+er a +ecisi$n +iKeren, ,here%r$3. The) have n$ *$wer ,$ re#ieve *ar,ies %r$3 $'#iga,i$n
v$#&n,ari#) assai#e+, si3*#) 'eca&se ,heir c$n,rac,s ,&rne+ $&, ,$ 'e +isas,r$&s +ea#s.
:n ,he $,her han+, re,ire3en, *#ans, in #igh, $% ,he c$ns,i,&,i$na# 3an+a,e $% aK$r+ing %&##
*r$,ec,i$n ,$ #a'$r, 3&s, 'e #i'era##) c$ns,r&e+ in %av$r $% ,he e3*#$)ee, i, 'eing ,he genera#
r&#e ,ha, *ensi$n $r re,ire3en, *#ans %$r3&#a,e+ ') ,he e3*#$)er are ,$ 'e c$ns,r&e+ agains,
i,. Re,ire3en, 'eneJ,s, a%,er a##, are in,en+e+ ,$ he#* ,he e3*#$)ee enE$) ,he re3aining )ears
$% his #i%e, re#easing hi3 %r$3 ,he '&r+en $% w$rr)ing %$r his Jnancia# s&**$r,, an+ are a %$r3
$% rewar+ %$r 'eing #$)a# ,$ ,he e3*#$)er. >n+enia'#), *e,i,i$ner re,ire+ &n+er ,he SRP an+
receive+ P9-,-19.!1 %r$3 res*$n+en,. H$wever, *e,i,i$ner is n$, *r$scri'e+, ') waiver $r
es,$**e#, %r$3 assai#ing ,he *$s,5re,ire3en, c$3*e,i,ive e3*#$)3en, 'an since &n+er Ar,ic#e
1.(9 $% ,he New Civi# C$+e, ,h$se c$n,rac,s wh$se ca&se, $'Eec, $r *&r*$se is c$n,rar) ,$ #aw,
3$ra#s, g$$+ c&s,$3s, *&'#ic $r+er $r *&'#ic *$#ic) are ineFis,en, $r v$i+ %r$3 ,he 'eginning.
Es,$**e# cann$, give va#i+i,) ,$ an ac, ,ha, is *r$hi'i,e+ ') #aw $r $ne ,ha, is agains, *&'#ic
*$#ic).
Res*$n+en,, as e3*#$)er, is '&r+ene+ ,$ es,a'#ish ,ha, a res,ric,ive c$venan, 'arring an
e3*#$)ee %r$3 acce*,ing a c$3*e,i,ive e3*#$)3en, a%,er re,ire3en, $r resigna,i$n is n$, an
&nreas$na'#e $r $**ressive, $r in &n+&e $r &nreas$na'#e res,rain, $% ,ra+e, ,h&s,
&nen%$rcea'#e %$r 'eing re*&gnan, ,$ *&'#ic *$#ic). C$&r,s sh$&#+ care%&##) scr&,ini4e a##
c$n,rac,s #i3i,ing a 3anSs na,&ra# righ, ,$ %$##$w an) ,ra+e $r *r$%essi$n an)where he *#eases
an+ in an) #aw%&# 3anner. B&, i, is E&s, as i3*$r,an, ,$ *r$,ec, ,he enE$)3en, $% an
es,a'#ish3en, in ,ra+e $r *r$%essi$n, which i,s e3*#$)er has '&i#, &* ') his $wn h$nes,
a**#ica,i$n ,$ ever) +a) +&,) an+ ,he %ai,h%&# *er%$r3ance $% ,he ,as<s which ever) +a)
i3*$ses &*$n ,he $r+inar) 3an. Wha, $ne crea,es ') his $wn #a'$r is his. P&'#ic *$#ic) +$es
n$, in,en+ ,ha, an$,her ,han ,he *r$+&cer sha## rea* ,he %r&i,s $% #a'$rO ra,her, i, gives ,$ hi3
wh$ #a'$rs ,he righ, ') ever) #egi,i3a,e 3eans ,$ *r$,ec, ,he %r&i,s $% his #a'$r an+ sec&re ,he
enE$)3en, $% ,he3 ,$ hi3se#%. 2- 9ree+$3 ,$ c$n,rac, 3&s, n$, 'e &nreas$na'#) a'ri+ge+.
Nei,her 3&s, ,he righ, ,$ *r$,ec, ') reas$na'#e res,ric,i$ns ,ha, which a 3an ') in+&s,r), s<i##
an+ g$$+ E&+g3en, has '&i#, &*, 'e +enie+. C$nsi+era,i$n 3&s, 'e given ,$ ,he e3*#$)eeSs
righ, ,$ earn a #iving an+ ,$ his a'i#i,) ,$ +e,er3ine wi,h cer,ain,) ,he area wi,hin which his
e3*#$)3en, 'an is res,i,&,e+. A *r$visi$n $n ,erri,$ria# #i3i,a,i$n is necessar) ,$ g&i+e an
e3*#$)ee $% wha, c$ns,i,&,es as vi$#a,i$n $% a res,ric,ive c$venan, an+ whe,her ,he
ge$gra*hic sc$*e is c$5eF,ensive wi,h ,ha, in which ,he e3*#$)er is +$ing '&siness. In
c$nsi+ering a ,erri,$ria# res,ric,i$n, ,he %ac,s an+ circ&3s,ances s&rr$&n+ing ,he case 3&s, 'e
c$nsi+ere+. Th&s, in +e,er3ining whe,her ,he c$n,rac, is reas$na'#e $r n$,, ,he ,ria# c$&r,
sh$&#+ c$nsi+er ,he %$##$wing %ac,$rsL =a? whe,her ,he c$venan, *r$,ec,s a #egi,i3a,e '&siness
in,eres, $% ,he e3*#$)erO ='? whe,her ,he c$venan, crea,es an &n+&e '&r+en $n ,he e3*#$)eeO
=c? whe,her ,he c$venan, is inE&ri$&s ,$ ,he *&'#ic we#%areO =+? whe,her ,he ,i3e an+ ,erri,$ria#
#i3i,a,i$ns c$n,aine+ in ,he c$venan, are reas$na'#eO an+ =e? whe,her ,he res,rain, is
reas$na'#e %r$3 ,he s,an+*$in, $% *&'#ic *$#ic).
We are n$, i3*ervi$&s $% ,he +is,inc,i$n 'e,ween res,ric,ive c$venan,s 'arring an e3*#$)ee ,$
acce*, a *$s,5e3*#$)3en, c$3*e,i,ive e3*#$)3en, $r res,rain, $n ,ra+e in e3*#$)3en,
c$n,rac,s an+ res,rain,s $n *$s,5re,ire3en, c$3*e,i,ive e3*#$)3en, in *ensi$n an+
re,ire3en, *#ans ei,her inc$r*$ra,e+ in e3*#$)3en, c$n,rac,s $r in c$##ec,ive 'argaining
agree3en,s 'e,ween ,he e3*#$)er an+ ,he &ni$n $% e3*#$)ees, $r se*ara,e %r$3 sai+
c$n,rac,s $r c$##ec,ive 'argaining agree3en,s which *r$vi+e ,ha, an e3*#$)ee wh$ acce*,s
*$s, re,ire3en, c$3*e,i,ive e3*#$)3en, wi## %$r%ei, re,ire3en, an+ $,her 'eneJ,s $r wi## 'e
$'#ige+ ,$ res,i,&,e ,he sa3e ,$ ,he e3*#$)er. A *$s,5re,ire3en, c$3*e,i,ive e3*#$)3en,
res,ric,i$n is +esigne+ ,$ *r$,ec, ,he e3*#$)er agains, c$3*e,i,i$n ') %$r3er e3*#$)ees wh$
3a) re,ire an+ $',ain re,ire3en, $r *ensi$n 'eneJ,s an+, a, ,he sa3e ,i3e, engage in
c$3*e,i,ive e3*#$)3en,.
Page 1(-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
9. 9iu v. 3la(inu/ 3lans, !nc., G.R. No. 1)3.12, 6eruar$ 2-, 2""7
9ac,sL
P#a,in&3 P#ans Phi#i**ines, Inc. is a +$3es,ic c$r*$ra,i$n engage+ in ,he *re5nee+ in+&s,r).
9r$3 191" ,$ 1919, *e,i,i$ner 7ais) B. Ti& was i,s 7ivisi$n Mar<e,ing 7irec,$r. P#a,in&3 Inc.
rehire+ Ti& as Seni$r Assis,an, 8ice5Presi+en, an+ Terri,$ria# :*era,i$ns Hea+ in charge $% i,s
H$ng<$ng an+ Asean $*era,i$ns. The *ar,ies eFec&,e+ a c$n,rac, $% e3*#$)3en, va#i+ %$r Jve
)ears. :n Se*,e3'er 1-, 1992, *e,i,i$ner s,$**e+ re*$r,ing %$r w$r<. In N$ve3'er 1992, she
'eca3e ,he 8ice5Presi+en, %$r Sa#es $% Pr$%essi$na# Pensi$n P#ans, Inc., a c$r*$ra,i$n engage+
a#s$ in ,he *re5nee+ in+&s,r). P#a,in&3 P#ans s&e+ Ti& %$r +a3ages 'e%$re ,he RTC $% Pasig
Ci,), Branch !-1. a##eging, a3$ng $,hers, ,ha, *e,i,i$nerGs e3*#$)3en, wi,h Pr$%essi$na#
Pensi$n P#ans, Inc. vi$#a,e+ ,he n$n5inv$#ve3en, c#a&se in her c$n,rac, $% e3*#$)3en,L
The EMPL:@EE %&r,her &n+er,a<es ,ha, +&ring hisBher engage3en, wi,h EMPL:@ER an+ in case
$% se*ara,i$n %r$3 ,he C$3*an), whe,her v$#&n,ar) $r %$r ca&se, heBshe sha## n$,, %$r ,he neF,
TW: =!? )ears ,herea%,er, engage in $r 'e inv$#ve+ wi,h an) c$r*$ra,i$n, ass$cia,i$n $r en,i,),
whe,her +irec,#) $r in+irec,#), engage+ in ,he sa3e '&siness $r 'e#$nging ,$ ,he sa3e *re5
nee+ in+&s,r) as ,he EMPL:@ER. An) 'reach $% ,he %$reg$ing *r$visi$n sha## ren+er ,he
EMPL:@EE #ia'#e ,$ ,he EMPL:@ER in ,he a3$&n, $% :ne H&n+re+ Th$&san+ Pes$s
=P1((,(((.((? %$r an+ as #iA&i+a,e+ +a3ages.
Ti& c$&n,ere+ ,ha, ,he n$n5inv$#ve3en, c#a&se was &nen%$rcea'#e %$r 'eing agains, *&'#ic
$r+er $r *&'#ic *$#ic)L 9irs,, ,he res,rain, i3*$se+ was 3&ch grea,er ,han wha, was necessar)
,$ aK$r+ res*$n+en, a %air an+ reas$na'#e *r$,ec,i$n. Pe,i,i$ner c$n,en+e+ ,ha, ,he ,rans%er ,$
a riva# c$3*an) was an acce*,e+ *rac,ice in ,he *re5nee+ in+&s,r).
C$&r, $% A**ea#s an+ ,ria# c$&r, r&#e+ agains, Ti&. I, reas$ne+ ,ha, *e,i,i$ner en,ere+ in,$ ,he
c$n,rac, $n her $wn wi## an+ v$#i,i$n. Th&s, she '$&n+ herse#% ,$ %&#J## n$, $n#) wha, was
eF*ress#) s,i*&#a,e+ in ,he c$n,rac,, '&, a#s$ a## i,s c$nseA&ences ,ha, were n$, agains, g$$+
%ai,h, &sage, an+ #aw. The a**e##a,e c$&r, a#s$ r&#e+ ,ha, ,he s,i*&#a,i$n *r$hi'i,ing n$n5
e3*#$)3en, %$r ,w$ )ears was va#i+ an+ en%$rcea'#e c$nsi+ering ,he na,&re $% res*$n+en,Gs
'&siness.
Iss&eL
W:N ,he n$n5inv$#ve3en, c#a&se is va#i+.
R&#ingL
The *e,i,i$n is 7ENIE7 %$r #ac< $% 3eri,.
S&*re3e C$&r, he#+ ,ha, sai+ ,ha, s&ch c#a&se was &nreas$na'#e res,rain, $% ,ra+e an+
,here%$re agains, *&'#ic *$#ic). H$wever, a n$n5inv$#ve3en, c#a&se is n$, necessari#) v$i+ %$r
'eing in res,rain, $% ,ra+e as #$ng as ,here are reas$na'#e #i3i,a,i$ns as ,$ ,i3e, ,ra+e, an+
*#ace.
Page 1("
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Never,he#ess, in ,his case, ,he n$n5inv$#ve3en, c#a&se has a ,i3e #i3i,L ,w$ )ears %r$3 ,he
,i3e *e,i,i$nerGs e3*#$)3en, wi,h res*$n+en, en+s. I, is a#s$ #i3i,e+ as ,$ ,ra+e, since i, $n#)
*r$hi'i,s *e,i,i$ner %r$3 engaging in an) *re5nee+ '&siness a<in ,$ res*$n+en,Gs.
Since *e,i,i$ner was ,he Seni$r Assis,an, 8ice5Presi+en, an+ Terri,$ria# :*era,i$ns Hea+ in
charge $% res*$n+en,Gs H$ng<$ng an+ Asean $*era,i$ns, she ha+ 'een *riv) ,$ c$nJ+en,ia#
an+ high#) sensi,ive 3ar<e,ing s,ra,egies $% res*$n+en,Gs '&siness. T$ a##$w her ,$ engage in a
riva# '&siness s$$n a%,er she #eaves w$&#+ 3a<e res*$n+en,Gs ,ra+e secre,s v&#nera'#e
es*ecia##) in a high#) c$3*e,i,ive 3ar<e,ing envir$n3en,. In s&3, we Jn+ ,he n$n5
inv$#ve3en, c#a&se n$, c$n,rar) ,$ *&'#ic we#%are an+ n$, grea,er ,han is necessar) ,$ aK$r+ a
%air an+ reas$na'#e *r$,ec,i$n ,$ res*$n+en,.1
In an) even,, Ar,ic#e 1(- $% ,he Civi# C$+e *r$vi+es ,ha, *ar,ies ,$ a c$n,rac, 3a) es,a'#ish
s&ch s,i*&#a,i$ns, c#a&ses, ,er3s an+ c$n+i,i$ns as ,he) 3a) +ee3 c$nvenien,, *r$vi+e+ ,he)
are n$, c$n,rar) ,$ #aw, 3$ra#s, g$$+ c&s,$3s, *&'#ic $r+er, $r *&'#ic *$#ic).
Ar,ic#e 11291. $% ,he sa3e C$+e a#s$ *r$vi+es ,ha, $'#iga,i$ns arising %r$3 c$n,rac,s have ,he
%$rce $% #aw 'e,ween ,he c$n,rac,ing *ar,ies an+ sh$&#+ 'e c$3*#ie+ wi,h in g$$+ %ai,h. C$&r,s
cann$, s,i*&#a,e %$r ,he *ar,ies n$r a3en+ ,heir agree3en, where ,he sa3e +$es n$,
c$n,ravene #aw, 3$ra#s, g$$+ c&s,$3s, *&'#ic $r+er $r *&'#ic *$#ic), %$r ,$ +$ s$ w$&#+ 'e ,$
a#,er ,he rea# in,en, $% ,he *ar,ies, an+ w$&#+ r&n c$n,rar) ,$ ,he %&nc,i$n $% ,he c$&r,s ,$ give
%$rce an+ eKec, ,here,$.12 N$, 'eing c$n,rar) ,$ *&'#ic *$#ic), ,he n$n5inv$#ve3en, c#a&se,
which *e,i,i$ner an+ res*$n+en, %ree#) agree+ &*$n, has ,he %$rce $% #aw 'e,ween ,he3, an+
,h&s, sh$&#+ 'e c$3*#ie+ wi,h in g$$+ %ai,h.
Th&s, as he#+ ') ,he ,ria# c$&r, an+ ,he C$&r, $% A**ea#s, *e,i,i$ner is '$&n+ ,$ *a) res*$n+en,
P1((,((( as #iA&i+a,e+ +a3ages. Whi#e we have eA&i,a'#) re+&ce+ #iA&i+a,e+ +a3ages in
cer,ain cases, we cann$, +$ s$ in ,his case, since i, a**ears ,ha, even %r$3 ,he s,ar,,
*e,i,i$ner ha+ n$, sh$wn ,he #eas, in,en,i$n ,$ %&#J## ,he n$n5inv$#ve3en, c#a&se in g$$+ %ai,h.
1". 4ul&ulao vs. Cour( of A%%eals, G.R. No. 1)*-93, March 1, 2""7
9ac,sL
Pe,i,i$ner C$ns,ancia P. 7&#+&#a$ was hire+ ') res*$n+en, Bag&i$ C$##eges 9$&n+a,i$n =BC9?
as secre,ar)Bc#er<5,)*is, an+ assigne+ ,$ ,he C$##ege $% Law s$3e,i3e in 6&ne $% 191". In
A&g&s, 199-, a cer,ain #aw s,&+en, J#e+ a c$3*#ain, agains, *e,i,i$ner %$r a##ege+
irreg&#ari,ies in ,he *er%$r3ance $% her w$r<. Pe,i,i$ner was ,$#+ ,$ s&'3i, her answer ,$ ,he
c$3*#ain, an+ given severa# eF,ensi$ns wi,hin which ,$ +$ s$. 7es*i,e ,he eF,ensi$ns, she
%ai#e+ ,$ s&'3i, her answer. :n 1 :c,$'er 199-, 7ean H$n$ra,$ 8. AA&in$ $% ,he C$##ege $%
Law in%$r3e+ res*$n+en,Gs Presi+en,, A,,). E+i#'er,$ B. Tene%rancia, $% *e,i,i$nerGs %ai#&re ,$
J#e her answer an+ rec$33en+e+ ,he assign3en, $% *e,i,i$ner $&,si+e ,he C$##ege $% Law, n$,
$n#) 'eca&se $% s&ch %ai#&re ,$ answer '&, a#s$ her having a+3i,,e+ %ra,erni4ing wi,h s,&+en,s
$% ,he C$##ege. :n ,he sa3e +a), res*$n+en,Gs 8ice Presi+en, %$r A+3inis,ra,i$n, Le$nar+$ S.
+e#a Cr&4, iss&e+ a 7e*ar,3en, :r+er ,$ Mrs. 7&#+&#a$ in%$r3ing her $% her ,rans%er ,$ ,he
:Ice $% ,he Princi*a#s $% ,he High Sch$$# an+ E#e3en,ar) 7e*ar,3en,s. :n !1 6an&ar) 199",
,he A+3inis,ra,ive Inves,iga,ing C$33i,,ee %$&n+ ,he 7e*ar,3en, :r+er a**r$*ria,e since i,
was in,en+e+ ,$ *reven, ,he c$n,r$vers) 'e,ween *e,i,i$ner an+ ,he c$3*#aining s,&+en, %r$3
a+verse#) aKec,ing a har3$ni$&s re#a,i$nshi* wi,hin ,he C$##ege $% Law a3$ng a## i,s
c$ns,i,&en,s. :n 1" 9e'r&ar) 199", *e,i,i$ner J#e+ a c$3*#ain, %$r c$ns,r&c,ive +is3issa# wi,h
*ra)er %$r 3$ra# an+ eFe3*#ar) +a3ages an+ a,,$rne)Gs %ees 'e%$re ,he NLRC Regi$na#
Page 1(1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Ar'i,ra,i$n Branch5C$r+i##era A+3inis,ra,ive Regi$n. She s,a,e+ ,ha, asi+e %r$3 'eing ,ain,e+
wi,h *r$ce+&ra# #a*ses in vi$#a,i$n $% her righ, ,$ +&e *r$cess, ,he ,rans%er a#s$ a3$&n,e+ ,$
her +e3$,i$n in ran<. The NLRC +is3isse+ ,he c$3*#ain, %$r #ac< $% 3eri, which +ecisi$n was
aIr3e+ ') ,he C$&r, $% A**ea#s.
Iss&eL
Whe,her *e,i,i$nerGs ,rans%er as secre,ar)Bc#er<5,)*is, %r$3 ,he C$##ege $% Law ,$ ,he High
Sch$$# an+ E#e3en,ar) 7e*ar,3en,s a3$&n,s ,$ c$ns,r&c,ive +is3issa#.
R&#ingL
There was n$ c$ns,r&c,ive +is3issa#. There is c$ns,r&c,ive +is3issa# i% an ac, $% c#ear
+iscri3ina,i$n, insensi'i#i,), $r +is+ain ') an e3*#$)er 'ec$3es s$ &n'eara'#e $n ,he *ar, $%
,he e3*#$)ee ,ha, i, w$&#+ %$rec#$se an) ch$ice ') hi3 eFce*, ,$ %$reg$ his c$n,in&e+
e3*#$)3en,. I, eFis,s where ,here is cessa,i$n $% w$r< 'eca&se Pc$n,in&e+ e3*#$)3en, is
ren+ere+ i3*$ssi'#e, &nreas$na'#e $r &n#i<e#), as an $Ker inv$#ving a +e3$,i$n in ran< an+ a
+i3in&,i$n in *a).P The %ac,&a# 3i#ie& in ,his case is +iKeren,. I, is ,he e3*#$)erGs *rer$ga,ive,
'ase+ $n i,s assess3en, an+ *erce*,i$n $% i,s e3*#$)eesG A&a#iJca,i$ns, a*,i,&+es, an+
c$3*e,ence, ,$ 3$ve ,he3 ar$&n+ in ,he vari$&s areas $% i,s '&siness $*era,i$ns in $r+er ,$
ascer,ain where ,he) wi## %&nc,i$n wi,h 3aFi3&3 'eneJ, ,$ ,he c$3*an). An e3*#$)eeGs righ,
,$ sec&ri,) $% ,en&re +$es n$, give hi3 s&ch a ves,e+ righ, in his *$si,i$n as w$&#+ +e*rive ,he
c$3*an) $% i,s *rer$ga,ive ,$ change his assign3en, $r ,rans%er hi3 where he wi## 'e 3$s,
&se%&#. When his ,rans%er is n$, &nreas$na'#e, n$r inc$nvenien,, n$r *reE&+icia# ,$ hi3, an+ i,
+$es n$, inv$#ve a +e3$,i$n in ran< $r a +i3in&,i$n $% his sa#aries, 'eneJ,s, an+ $,her
*rivi#eges, ,he e3*#$)ee 3a) n$, c$3*#ain ,ha, i, a3$&n,s ,$ a c$ns,r&c,ive +is3issa#. The
,rans%er $% *e,i,i$ner +$es n$, a3$&n, ,$ a +e3$,i$n in ran< an+ s,a,&s. Pe,i,i$ner was a
secre,ar)Bc#er<5,)*is, $% ,he C$##ege $% Law. As s&ch secre,ar)Bc#er<5,)*is,, she w$&#+ $n#)
have ,$ *er%$r3 ,he sa3e +&,ies in ,he :Ice $% ,he Princi*a#s $% ,he High Sch$$# an+
E#e3en,ar) 7e*ar,3en,s. Pe,i,i$ner was n$, +enie+ +&e *r$cess. Reassign3en,s 3a+e ')
3anage3en, *en+ing inves,iga,i$n $% irreg&#ari,ies a##ege+#) c$33i,,e+ ') an e3*#$)ee %a##
wi,hin ,he a3'i, $% 3anage3en, *rer$ga,ive. The ,rans%er, whi#e inci+en,a# ,$ ,he *en+ing
charges agains, *e,i,i$ner, was n$, 3ean, ,$ 'e a *ena#,), '&, ra,her a *reven,ive 3eas&re ,$
av$i+ %&r,her +a3age ,$ ,he C$##ege $% Law. The *&r*$se $% reassign3en,s is n$ +iKeren, %r$3
,ha, $% *reven,ive s&s*ensi$n which 3anage3en, c$&#+ va#i+#) i3*$se as a 3eas&re $%
*r$,ec,i$n $% ,he c$3*an)Gs *r$*er,) *en+ing inves,iga,i$n $% an) 3a#%easance $r
3is%easance c$33i,,e+ ') ,he e3*#$)ee.
11. Al/ario v. 3hili%%ine Airlines, G.R. No. 17"92-, Se%(e/er 11, 2""7
a#ts:
8icen,e S. A#3ari$ =A#3ari$?, was hire+ ') res*$n+en,, Phi#i**ine Air#ines, Inc. =PAL?, as a
B$eing "." S)s,e3s Engineer. He s&ccess%&##) 'i+ %$r ,he higher *$si,i$n $% Air'&s (( =A5((?
9irs, :Icer. Since sai+ higher *$si,i$n reA&ire+ a++i,i$na# ,raining, he &n+erwen,, a,
PALGs eF*ense, 3$re ,han Jve 3$n,hs $% ,raining c$nsis,ing $% gr$&n+ sch$$#ing in Mani#a an+
Tigh, si3&#a,i$n in Me#'$&rne, A&s,ra#ia. A%,er c$3*#e,ing ,he ,raining c$&rse, A#3ari$ serve+
as A5(( 9irs, :Icer $% PAL, '&, a%,er eigh, 3$n,hs $% service, he ,en+ere+ his resigna,i$n, %$r
M*ers$na# reas$ns.N PAL sen, A#3ari$ a #e,,er in%$r3ing ,ha, his *r$*$se+ resigna,i$n wi## 3a<e
hi3 rei3'&rse ,he ,raining c$s,s *#&s +a3ages as he is reA&ire+ ,$ ren+er )ears $% service
Page 1(9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
'eca&se ,he c$3*an) inves,e+ heavi#) $n his *r$%essi$na# ,raining. A#3ari$ +enie+ ,he
eFis,ence $% an) agree3en, wi,h PAL an+ *$in,e+ $&, ,ha, ,he CBA 'e,ween PAL an+ Air#ineGs
Pi#$, Ass$cia,i$n carrie+ n$ s&ch agree3en,. RTC ren+ere+ E&+g3en, in %av$r $% A#3ari$ an+
CA reverse+ ,he +ecisi$n, hence ,his *e,i,i$n.
Issue:
W:N A#3ari$ sh$&#+ rei3'&rse ,he ,raining c$s,.
Ruling: @es.
PAL inves,e+ %$r ,he ,raining $% A#3ari$ ,$ ena'#e hi3 ,$ acA&ire a higher #eve# $% s<i##,
*r$Jcienc), $r ,echnica# c$3*e,ence s$ ,ha, he c$&#+ eIcien,#) +ischarge ,he *$si,i$n $% A5
(( 9irs, :Icer. Given ,ha,, PAL eF*ec,e+ ,$ rec$ver ,he ,raining c$s,s ') avai#ing
$% A#3ari$Gs services %$r a, #eas, ,hree )ears. The eF*ec,a,i$n $% PAL was n$, %&##) rea#i4e+,
h$wever, +&e ,$ A#3ari$Gs resigna,i$n a%,er $n#) eigh, 3$n,hs $% service %$##$wing ,he
c$3*#e,i$n $% his ,raining c$&rse. He cann$,, ,here%$re, re%&se ,$ rei3'&rse ,he c$s,s $%
,raining wi,h$&, vi$#a,ing ,he *rinci*#e $% &nE&s, enrich3en,. The *er,inen, *r$visi$n $% ,he
CBA an+ i,s ra,i$na#e asi+e, c$n,rar) ,$ A#3ari$Gs c#ai3, Ar,ic#e !! $% ,he Civi# C$+e a**#ies.
Ar,. !!. Ever) *ers$n wh$ ,hr$&gh an ac, $% *er%$r3ance ') an$,her, $r an) $,her 3eans,
acA&ires $r c$3es in,$ *$ssessi$n $% s$3e,hing a, ,he eF*ense $% ,he #a,,er wi,h$&, E&s, $r
#ega# gr$&n+, sha## re,&rn ,he sa3e ,$ hi3,
12. San Miguel Cor%. v. 3on(illas, G.R. No. 1..17-, Ma$ "7, 2""-
9ac,sL
:n !. :c,$'er 191(, San Mig&e# C$r*$ra,i$n =*e,i,i$ner? e3*#$)e+ Ange# C. P$n,i##as
=res*$n+en,? as a +ai#) wage c$3*an) g&ar+. In 191. res*$n+en, 'eca3e a 3$n,h#)5*ai+
e3*#$)ee which en,i,#e+ hi3 ,$ )ear#) increases in sa#ar). Res*$n+en, a##ege+ ,ha, his )ear#)
sa#ar) increases were $n#) a *ercen,age $% wha, ,he $,her sec&ri,) g&ar+s receive+.
:n 19 :c,$'er 199, res*$n+en, J#e+ an ac,i$n %$r rec$ver) $% +a3ages +&e ,$ +iscri3ina,i$n
&n+er Ar,ic#e 1((
.
$% ,he La'$r C$+e, as we## as %$r rec$ver) $% sa#ar) +iKeren,ia# an+
'ac<wages, agains, *e,i,i$ner. Manager, iss&e+ a Me3$ran+&3 $r+ering, a3$ng $,hers, ,he
,rans%er $% res*$nsi'i#i,) $% ,he :r$ 8er+e Wareh$&se ,$ ,he new#)5$rgani4e+ 8isMin L$gis,ics
:*era,i$ns eKec,ing ,he %$r3a# ,rans%er $% res*$nsi'i#i,) $% ,he sec&ri,) *ers$nne# an+
eA&i*3en, in ,he :r$ 8er+e Wareh$&se. Si3&#,ane$&s#), ,he 3anager gave ,he sa3e
in%$r3a,i$n ,$ his S&*ervising Sec&ri,) G&ar+s %$r ,he3 ,$ re#a) ,he in%$r3a,i$n ,$ ,he
c$3*an) sec&ri,) g&ar+s. Pe,i,i$ner a##ege+ ,ha, res*$n+en, was *r$*er#) n$,iJe+ $% ,he
,rans%er '&, he re%&se+ ,$ receive
Res*$n+en, c$n,in&e+ ,$ re*$r, a, :r$ 8er+e Wareh$&se. He a##ege+ ,ha, he was n$, *r$*er#)
n$,iJe+ $% ,he ,rans%er an+ ,ha, he +i+ n$, receive an) wri,,en $r+er Pe,i,i$ner a##ege+ ,ha,
res*$n+en, was *r$*er#) n$,iJe+ $% ,he ,rans%er '&, he re%&se+ ,$ receive Pe,i,i$ner a#s$
a##ege+ ,ha, res*$n+en, was given n$,ices $% G&ar+ 7e,ai# se*ara,e#) +a,e+. '&, he s,i##
re%&se+ ,$ re*$r, %$r +&,) a, ,he 8isMin L$gis,ics :*era,i$ns.
Page 11(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In a #e,,er, *e,i,i$ner in%$r3e+ res*$n+en, ,ha, an a+3inis,ra,ive inves,iga,i$n w$&#+ 'e
c$n+&c,e+ $n re#a,ive ,$ his a##ege+ $Kenses $% Ins&'$r+ina,i$n $r Wi#%&# 7is$'e+ience in
Carr)ing $&, Reas$na'#e Ins,r&c,i$ns $% his s&*eri$r. , res*$n+en, J#e+ an a3en+e+ c$3*#ain,
agains, *e,i,i$ner %$r i##ega# +is3issa# an+ *a)3en, $% 'ac<wages, ,er3ina,i$n *a), 3$ra# an+
eFe3*#ar) +a3ages, an+ a,,$rne)Ss %ees.
LAL R&#e+ in %av$&r $% ,he c$3*an) an+ agains, P$n,i##as. The La'$r Ar'i,er rec$gni4e+ ,he
management prerogative to transfer its emplo&ees from one station to anot$er. The La'$r
Ar'i,er %$&n+ not$ing pre'udiial, un'ust, or unreasonable ,$ *e,i,i$nerSs +ecisi$n ,$ 3erge ,he
%&nc,i$ns $% ,he Ma,eria#s Manage3en, $% ,he Man+a&e Brewer) an+ ,he Ph)sica# 7is,ri'&,i$n
Gr$&* which res&#,e+ ,$ ,he %$r3ing $% ,he 8isMin L$gis,ics :*era,i$ns. The La'$r Ar'i,er
%&r,her r&#e+ ,ha, *e,i,i$ner +i+ n$, vi$#a,e Ar,ic#e 1(( $% ,he La'$r C$+e. La'$r Ar'i,er r&#e+
,ha, res*$n+en, was acc$r+e+ +&e *r$cess 'e%$re his ,er3ina,i$n %r$3 ,he service. He was
inves,iga,e+ wi,h ,he assis,ance $% c$&nse#, an+ he was a'#e ,$ c$n%r$n, *e,i,i$nerSs wi,nesses
an+ *resen, evi+ence in his %av$r.
NLRCL Se, asi+e ,he La'$r Ar'i,erSs 7ecisi$n. The NLRC r&#e+ ,ha, res*$n+en, was n$,
in%$r3e+ $% his ,rans%er %r$3 :r$ 8er+e Wareh$&se ,$ 8isMin L$gis,ics :*era,i$ns. The n$,ices
a##ege+#) sen, ,$ res*$n+en, +i+ n$, in+ica,e an) recei*, %r$3 res*$n+en,. NLRC %&r,her r&#e+
,ha, res*$n+en, was a vic,i3 $% +iscri3ina,i$n. The NLRC +ec#are+ ,ha, *e,i,i$ner %ai#e+ ,$
E&s,i%) wh) res*$n+en, was n$, en,i,#e+ ,$ ,he %&## ra,e $% sa#ar) increases enE$)e+ ') $,her
sec&ri,) g&ar+s.
CAL C$&r, $% A**ea#s aIr3e+ wi,h 3$+iJca,i$n ,he NLRCSs 7ecisi$n. C$&r, $% A**ea#s r&#e+
,ha, &n+er Ar,ic#e !1!=a? $% ,he La'$r C$+e, as a3en+e+, an e3*#$)er 3a) ,er3ina,e an
e3*#$)3en, %$r seri$&s 3isc$n+&c, $r wi##%&# +is$'e+ience ') ,he e3*#$)ee $% ,he #aw%&#
$r+ers $% his e3*#$)er $r his re*resen,a,ive in c$nnec,i$n wi,h his w$r<. The C$&r, $% A**ea#s
r&#e+ ,ha, ,here was n$ s&Icien, evi+ence ,ha, w$&#+ sh$w ,ha, res*$n+en,Ss %ai#&re ,$ re*$r,
,$ his new s&*eri$r was wi##%&# an+ charac,eri4e+ ') a *erverse an+ wr$ng%&# a,,i,&+e.
Iss&eL
Lega#i,) $% res*$n+en,Ss +is3issa# %r$3 e3*#$)3en,.
R&#ingL Res*$n+en, was +is3isse+ %$r a E&s, ca&se.
An e3*#$)er 3a) ,er3ina,e an e3*#$)3en, %$r seri$&s 3isc$n+&c, $r wi#%&# +is$'e+ience ')
,he e3*#$)ee $% ,he #aw%&# $r+ers $% his e3*#$)er $r re*resen,a,ive in c$nnec,i$n wi,h his
w$r<. Wi#%&# +is$'e+ience reA&ires ,he c$nc&rrence $% ,w$ e#e3en,sL =1? ,he e3*#$)eeSs
assai#e+ c$n+&c, 3&s, have 'een wi#%&#, ,ha, is, charac,eri4e+ ') a wr$ng%&# an+ *erverse
a,,i,&+eO an+ =!? ,he $r+er vi$#a,e+ 3&s, have 'een reas$na'#e, #aw%&#, 3a+e <n$wn ,$ ,he
e3*#$)ee, an+ 3&s, *er,ain ,$ ,he +&,ies which he ha+ 'een engage+ ,$ +ischarge. E3*#$)er
eFercises ,he *rer$ga,ive ,$ ,rans%er an e3*#$)ee %$r va#i+ reas$ns an+ acc$r+ing ,$ ,he
reA&ire3en,s $% i,s '&siness, *r$vi+e+ ,he ,rans%er +$es n$, res&#, in +e3$,i$n in ran< $r
+i3in&,i$n $% ,he e3*#$)eeSs sa#ar), 'eneJ,s, an+ $,her *rivi#eges. In ,his case, we %$&n+ ,ha,
,he $r+er $% ,rans%er was reas$na'#e an+ #aw%&# c$nsi+ering ,he in,egra,i$n $% :r$ 8er+e
Wareh$&se wi,h 8isMin L$gis,ics :*era,i$ns. Res*$n+en, was *r$*er#) in%$r3e+ $% ,he ,rans%er
'&, he re%&se+ ,$ receive ,he n$,ices $n ,he *re,eF, ,ha, he was war) 'eca&se $% his *en+ing
case agains, *e,i,i$ner. REINSTATE 7ecisi$n $% ,he La'$r Ar'i,er.
Page 111
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
13. 'isig Manggagawa sa 9r$co vs. NLRC, G.R. No. 1.13"9, 7c(. 1., 2""-
9ac,sL
Pe,i,i$ners are e3*#$)ees $% Tr)c$ Phar3ace&,ica#s C$r*$ra,i$n, 3a<er $% ve,erinar)
3e+icines an+ *r$+&c,s. Tr)c$ an+ ,he *e,i,i$ners signe+ a Me3$ran+&3 $% Agree3en,

=M:A?,
*r$vi+ing %$r a c$3*resse+ w$r<wee< sche+&#e ,$ 'e i3*#e3en,e+ in ,he c$3*an) eKec,ive
Ma) !(, 199-. The M:A was en,ere+ in,$ *&rs&an, ,$ 7e*ar,3en, $% La'$r an+ E3*#$)3en,
7e*ar,3en, :r+er =7.:.? N$. !1, Series $% 199(, ,uidelines on t$e (mplementation of
Compressed :or+.ee+. As *r$vi+e+ in ,he M:A, 1L(( a.3. ,$ -L1! *.3., %r$3 M$n+a) ,$
9ri+a), sha## 'e c$nsi+ere+ as ,he reg&#ar w$r<ing h$&rs, an+ n$ $ver,i3e *a) sha## 'e +&e an+
*a)a'#e ,$ ,he e3*#$)ee %$r w$r< ren+ere+ +&ring ,h$se h$&rs. The M:A s*eciJca##) s,a,e+
,ha, ,he e3*#$)ee waives ,he righ, ,$ c#ai3 $ver,i3e *a) %$r w$r< ren+ere+ a%,er 2L(( *.3.
&n,i# -L1! *.3. %r$3 M$n+a) ,$ 9ri+a) c$nsi+ering ,ha, ,he c$3*resse+ w$r<wee< sche+&#e is
a+$*,e+ in #ie& $% ,he reg&#ar w$r<wee< sche+&#e which a#s$ c$nsis,s $% .- h$&rs. H$wever,
sh$&#+ an e3*#$)ee 'e *er3i,,e+ $r reA&ire+ ,$ w$r< 'e)$n+ -L1! *.3., s&ch e3*#$)ee sha##
'e en,i,#e+ ,$ $ver,i3e *a). Tr)c$ in%$r3e+ ,he B&rea& $% W$r<ing C$n+i,i$ns $% ,he
7e*ar,3en, $% La'$r an+ E3*#$)3en, $% ,he i3*#e3en,a,i$n $% a c$3*resse+ w$r<wee< in
,he c$3*an). In 6an&ar) 199", BMT an+ Tr)c$ neg$,ia,e+ %$r ,he renewa# $% ,heir c$##ec,ive
'argaining agree3en, =CBA? '&, %ai#e+ ,$ arrive a, a new agree3en,. Mean,i3e, Tr)c$
receive+ ,he Le,,er +a,e+ March !-, 199" %r$3 ,he B&rea& $% Ani3a# In+&s,r) $% ,he
7e*ar,3en, $% Agric&#,&re re3in+ing i, ,ha, i,s *r$+&c,i$n sh$&#+ 'e c$n+&c,e+ in San Ra%ae#,
B&#acan, n$, in Ca#$$can Ci,) since i,s $*era,ing *er3i, was #icense+ ,here. Acc$r+ing#), Tr)c$
iss&e+ a Me3$ran+&3 +a,e+ A*ri# ", 199" which +irec,e+ *e,i,i$ners ,$ re*$r, ,$ ,he
c$3*an)Ss *#an, si,e in B&#acan. BMT $**$se+ ,he ,rans%er $% i,s 3e3'ers ,$ San Ra%ae#,
B&#acan, c$n,en+ing ,ha, i, c$ns,i,&,es &n%air #a'$r *rac,ice. In *r$,es,, BMT +ec#are+ a s,ri<e
$n Ma) !-, 199". Pe,i,i$ners ,hen J#e+ ,heir c$3*#ain,s ,$ ,he #a'$r ar'i,er a##eging ,ha, Tr)c$
neg$,ia,e+ in 'a+ %ai,h an+ &n%air #a'$r *rac,ice $% Tr)c$ ') ,rans%erring ,he 3e3'ers $% ,he
&ni$n in $r+er ,$ *ara#)4e i, an+ ,ha, ,here%$re i, a3$&n,e+ ,$ c$ns,r&c,ive +is3issa#.
(ssue<
Was ,here c$ns,r&c,ive +is3issa# +&e ,$ ,he ,rans%er $% ,he *e,i,i$ners %r$3 Ca#$$can Ci,) ,$
San Ra%ae# B&#acanW
Ruling<
The *e,i,i$n has n$ 3eri,. 9in+ings $% %ac, $% #a'$r $Icia#s, wh$ are +ee3e+ ,$ have acA&ire+
eF*er,ise in 3a,,ers wi,hin ,heir res*ec,ive E&ris+ic,i$n, are genera##) acc$r+e+ n$, $n#)
res*ec, '&, even Jna#i,), an+ 'in+ &s when s&**$r,e+ ') s&'s,an,ia# evi+ence.This is
*ar,ic&#ar#) ,r&e when ,he Jn+ings $% ,he La'$r Ar'i,er, ,he NLRC an+ ,he CA are in a's$#&,e
agree3en,. In ,his case, ,he La'$r Ar'i,er, ,he NLRC, an+ ,he CA &ni%$r3#) agree+ ,ha, ,he
*e,i,i$ners were n$, c$ns,r&c,ive#) +is3isse+.
Tr)c$Ss +ecisi$n ,$ ,rans%er i,s *r$+&c,i$n ac,ivi,ies ,$ San Ra%ae#, B&#acan, regar+#ess $%
whe,her i, was 3a+e *&rs&an, ,$ ,he #e,,er $% ,he B&rea& $% Ani3a# In+&s,r), was wi,hin ,he
sc$*e $% i,s inheren, righ, ,$ c$n,r$# an+ 3anage i,s en,er*rise eKec,ive#). Whi#e ,he #aw is
s$#ici,$&s $% ,he we#%are $% e3*#$)ees, i, 3&s, a#s$ *r$,ec, ,he righ, $% an e3*#$)er ,$ eFercise
wha, are c#ear#) 3anage3en, *rer$ga,ives. The %ree wi## $% 3anage3en, ,$ c$n+&c, i,s $wn
'&siness aKairs ,$ achieve i,s *&r*$se cann$, 'e +enie+.
This *rer$ga,ive eF,en+s ,$ ,he 3anage3en,Ss righ, ,$ reg&#a,e, acc$r+ing ,$ i,s $wn
+iscre,i$n an+ E&+g3en,, a## as*ec,s $% e3*#$)3en,, inc#&+ing ,he %ree+$3 ,$ ,rans%er an+
Page 11!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
reassign e3*#$)ees acc$r+ing ,$ ,he reA&ire3en,s $% i,s '&siness.Manage3en,Ss *rer$ga,ive
$% ,rans%erring an+ reassigning e3*#$)ees %r$3 $ne area $% $*era,i$n ,$ an$,her in $r+er ,$
3ee, ,he reA&ire3en,s $% ,he '&siness is, ,here%$re, genera##) n$, c$ns,i,&,ive $% c$ns,r&c,ive
+is3issa#. Th&s, ,he c$nseA&en, ,rans%er $% Tr)c$Ss *ers$nne#, assigne+ ,$ ,he Pr$+&c,i$n
7e*ar,3en, was we## wi,hin ,he sc$*e $% i,s 3anage3en, *rer$ga,ive.
When ,he ,rans%er is n$, &nreas$na'#e, $r inc$nvenien,, $r *reE&+icia# ,$ ,he e3*#$)ee, an+ i,
+$es n$, inv$#ve a +e3$,i$n in ran< $r +i3in&,i$n $% sa#aries, 'eneJ,s, an+ $,her *rivi#eges,
,he e3*#$)ee 3a) n$, c$3*#ain ,ha, i, a3$&n,s ,$ a c$ns,r&c,ive +is3issa#. H$wever, ,he
e3*#$)er has ,he '&r+en $% *r$ving ,ha, ,he ,rans%er $% an e3*#$)ee is %$r va#i+ an+
#egi,i3a,e gr$&n+s. The e3*#$)er 3&s, sh$w ,ha, ,he ,rans%er is n$, &nreas$na'#e,
inc$nvenien,, $r *reE&+icia# ,$ ,he e3*#$)eeO n$r +$es i, inv$#ve a +e3$,i$n in ran< $r a
+i3in&,i$n $% his sa#aries, *rivi#eges an+ $,her 'eneJ,s.
In+is*&,a'#), in ,he ins,an, case, ,he ,rans%er $r+ers +$ n$, en,ai# a +e3$,i$n in ran< $r
+i3in&,i$n $% sa#aries, 'eneJ,s an+ $,her *rivi#eges $% ,he *e,i,i$ners. Pe,i,i$ners, ,here%$re,
anch$r ,heir $'Eec,i$n s$#e#) $n ,he gr$&n+ ,ha, i, w$&#+ ca&se ,he3 grea, inc$nvenience
since ,he) are a## resi+en,s $% Me,r$ Mani#a an+ ,he) w$&#+ inc&r a++i,i$na# eF*enses ,$ ,rave#
+ai#) %r$3 Mani#a ,$ B&#acan.
The C$&r, has *revi$&s#) +ec#are+ ,ha, 3ere inci+en,a# inc$nvenience is n$, s&Icien, ,$
warran, a c#ai3 $% c$ns,r&c,ive +is3issa#. :'Eec,i$n ,$ a ,rans%er ,ha, is gr$&n+e+ s$#e#) &*$n
,he *ers$na# inc$nvenience $r har+shi* ,ha, wi## 'e ca&se+ ,$ ,he e3*#$)ee ') reas$n $% ,he
,rans%er is n$, a va#i+ reas$n ,$ +is$'e) an $r+er $% ,rans%er.
Hence *e,i,i$n was +enie+ %$r #ac< $% 3eri,.
1*. Coca1Cola 'o((lerFs 3hili%%ines, !nc. v. 4el 5illar, G.R. No. 1)3"91, 7c(oer ),
2"1"
a#ts:
C$ca5C$#a hire+ res*$n+en, Ange# >. +e# 8i##ar =7e# 8i##ar? $n Ma) 1, 199( as Ph)sica#
7is,ri'&,i$n 9#ee, Manager wi,h a E$' gra+e $% S5" an+ 3$n,h#) sa#ar) $% P2(,(((.((, asi+e
%r$3 ,he &se $% a c$3*an) car, gas$#ine a##$wance, an+ ann&a# %$reign ,rave#, a3$ng $,her
'eneJ,s. In 199!, as *ar, $% ,he re$rgani4a,i$n $% ,he C$3*an), 7e# 8i##ar 'eca3e ,he
Trans*$r,a,i$n Services Manager, &n+er ,he B&siness L$gis,ic 7irec,$ra,e, hea+e+ ') 7irec,$r
E+gar+$ I. San 6&an =San 6&an?.
As Trans*$r,a,i$n Services Manager, 7e# 8i##ar *re*ares ,he '&+ge, %$r ,he vehic#es $% ,he
C$3*an) na,i$nwi+e. 7e# 8i##ar s&'3i,,e+ a Re*$r, ,$ ,he C$3*an) Presi+en,, +e,ai#ing an
a##ege+ %ra&+&#en, sche3e &n+er,a<en ') cer,ain C$3*an) $Icia#s in c$ns*irac) wi,h #$ca#
,r&c< 3an&%ac,&rers, $ver*ricing ,he ,r&c<s *&rchase+ ') ,he C$3*an) ') as 3&ch
as P"(,(((.(( each. 7e# 8i##ar i3*#ica,e+ San 6&an an+ 6$se L. Pine+a, 6r., a3$ng $,her
C$3*an) $Icia#s, as *ar, $% ,he c$ns*irac). Pine+a ,hen serve+ as ,he EFec&,ive Assis,an, in
,he B&siness L$gis,ic 7irec,$ra,e in charge $% ,he Re%rigera,i$n Services $% ,he C$3*an).
Seven 3$n,hs a%,er ,he s&'3issi$n $% his Re*$r, $n ,he %ra&+&#en, sche3e $% severa#
c$3*an) $Icia#s, 7e# 8i##ar receive+ a Me3$ran+&3 %r$3 San 6&an, in%$r3ing hi3 ,ha, =1? he
was +esigna,e+ as S,aK Assis,an, ,$ ,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager,
wi,h a E$' gra+e $% NS58IIO =!? wi,h 7e# 8i##ars new assign3en,, he cease+ ,$ 'e en,i,#e+ ,$ ,he
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
'eneJ,s accr&ing ,$ an S5" *$si,i$n &n+er eFis,ing c$3*an) r&#es an+ *$#iciesO an+ =? 7e#
8i##ar was ,$ ,&rn $ver ,he vehic#e assigne+ ,$ hi3 as Trans*$r,a,i$n Services Manager ,$
Pine+a ') 6&#) 1(, 199-.
A#,h$&gh as ,he S,aK Assis,an, $% ,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager,
7e# 8i##ar c$n,in&e+ ,$ receive ,he sa3e sa#ar) as Trans*$r,a,i$n Services Manager, '&, his car
an+ $,her *rivi#eges were wi,h+rawn an+ he s*en, his ,i3e a, his new *$s, si,,ing Pa, a +es<
wi,h n$ 3eaning%&# w$r< wha,s$ever.P 7e# 8i##ar 'e#ieve+ ,ha, he was +e3$,e+ ') ,he
C$3*an) ,$ %$rce hi3 ,$ resign. >na'#e ,$ en+&re an) %&r,her ,he harass3en,, 7e# 8i##ar J#e+
wi,h ,he Ar'i,ra,i$n Branch $% ,he NLRC $n N$ve3'er 11, 199- a c$3*#ain, agains, ,he
C$3*an) %$r i##ega# +e3$,i$n an+ %$r%ei,&re $% c$3*an) *rivi#eges.
Acc$r+ing ,$ C$ca5C$#a /7e# 8i##ar0 was n$, $&,righ,#) +is3isse+O ins,ea+, he was re3$ve+
%r$3 his %$r3er *$si,i$n as Trans*$r,a,i$n Services Manager, an+ +e3$,e+ ,$ S,aK Assis,an, ,$
,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager. The C$3*an) e3'ar<e+ $n a
re$rgani4a,i$n $% ,he B&siness L$gis,ic 7irec,$ra,e. As a res&#,, ,he %&nc,i$ns re#a,e+ ,$
Re%rigera,i$n were assigne+ ,$ ,he Trans*$r,a,i$n Services Manager, which was rena3e+ ,he
Trans*$r,a,i$n an+ Re%rigera,i$n Services Manager.
The C$3*an) %ai#e+ ,$ a**ear, +es*i,e +&e n$,ice, a, ,he sche+&#e+ *re#i3inar) c$n%erence
'e%$re ,he NLRC Ar'i,ra,i$n Branch. The C$3*an) reas$ne+ ,ha, in a**$in,ing 7e# 8i##ar as ,he
S,aK Assis,an, $% ,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager, %r$3 his %$r3er
*$si,i$n as Trans*$r,a,i$n Services Manager, ,he C$3*an) was 3ere#) eFercising i,s inheren,
3anage3en, *rer$ga,ive ,$ ,rans%er an e3*#$)ee %r$3 $ne *$si,i$n ,$ an$,her. The)
c$n,en+e+ ,ha, 7e# 8i##ar ha+ n$ ves,e+ righ, ,$ ,he *rivi#eges he *revi$&s#) enE$)e+ as
Trans*$r,a,i$n Services Manager. Since ,he vari$&s *r$gra3s wi## aKec, s$3e $% i,s
e3*#$)ees, in g$$+ %ai,h ,he C$3*an) has ini,ia,e+ a s*ecia# *r$gra3 ca##e+ PPr$Eec, New
S,ar,P. This *r$gra3 is in,en+e+ ,$ assis, e3*#$)ees wh$se *$si,i$ns wi## 'e +ec#are+
re+&n+an, wi,h ,he i3*#e3en,a,i$n $% new +is,ri'&,i$n s)s,e3s, &,i#i4a,i$n $% i3*r$ve+
$*era,i$na# *r$cesses an+ %&nc,i$na# re5$rgani4a,i$ns.
La'$r Ar'i,er ren+ere+ a 7ecisi$n in 7e# 8i##ars %av$r. The La'$r Ar'i,er he#+ ,ha, ,he
a##ega,i$ns in 7e# 8i##ars c$3*#ain, s&Icien,#) *resen,e+ a ca&se $% ac,i$n agains, ,he
C$3*an).
7e# 8i##ar a**ears ,$ have 'een sing#e+ $&, $r +iscri3ina,e+ &*$n +&e ,$ his having re*$r,e+
,he 199- ,r&c< sca3, an+ his *resen, is$#a,i$n can 'e seen as a *&nish3en, %$r ac,ing in a
righ,e$&s an+ %$r,hrigh, 3anner. :,herwise, as a PS,aK Assis,an,P /7e# 8i##ar0 sh$&#+ have
'een given s$3e 3eaning%&# $r res*$nsi'#e w$r< a**&r,enan, ,$ ,he E$' +esigna,i$n.
NLRC reverse+ ,he La'$r Ar'i,er, reas$ning ,ha,Lvir,&a#aw
C$n,rar) ,$ ,he La'$r Ar'i,ers *r$n$&nce3en, ,ha, /,he C$3*an)0 sh$&#+ have re'&,,e+
a##ega,i$ns $% 'a+ %ai,h an+ 3a#ice, we are 3$re inc#ine+ ,$ a**#) ,he *res&3*,i$n $% g$$+
%ai,h. Mere c$nc#&si$ns $% %ac, an+ #aw sh$&#+ n$, 'e &se+ as 'ases %$r an a&,$3a,ic Jn+ing $%
'a+ %ai,h. As i, is, we +$ n$, even see an) +isc#$s&re $% ,he sca3 an+ his a##ege+ +e3$,i$n. I%
in+ee+ ,he s$5ca##e+ Pgrea, gran+3$,her $% C$ca c$#a sca3s $% 199-P were ,r&e, ,he #$gica#
c$nseA&ence $% s&ch +isc#$s&re is %$r ,he *resi+en, $% ,he c$3*an) ,$ +is3iss ,he erring
e3*#$)ees an+ $Icers %$r ,heir high#) irreg&#ar ac,s an+ n$, ,$ *ena#i4e /7e# 8i##ar0 %$r 3a<ing
s&ch +isc#$s&re.
This is a3*#) s&**$r,e+ ') ,he %ac, ,ha, ,he /,he C$3*an)0 c$n+&c,e+ a ,h$r$&gh
inves,iga,i$n $% ,he re*$r,e+ sca3 an+ even $',aine+ ,he services $% an in+e*en+en, a&+i,$r
,$ +e,er3ine whe,her ,he a##ege+ an$3a#$&s ,ransac,i$ns were ac,&a##) irreg&#ar an+B$r
Page 11.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
A&es,i$na'#e. This 3ani%es,s ,ha, /7e# 8i##ars0 +isc#$s&re was ,a<en seri$&s#) c$n,rar) ,$ his
c#ai3s $% +iscri3ina,i$n. Acc$r+ing#), i, cann$, 'e sai+ ,ha, ,he ac, $% ,he /C$3*an)0 was
re,a#ia,$r) $r *ena# in na,&re n$r ,ain,e+ wi,h 'a+ %ai,h an+B$r 3a#ice. :,herwise, /,he
C$3*an)0 w$&#+ n$, have given grave a,,en,i$n ,$ ,he +isc#$s&re $% /7e# 8i##ar0.
A c$3*an) cann$,, h$wever, 'e reas$na'#) eF*ec,e+ ,$ *r$vi+e ,he sa3e 'eneJ,s ,$ an
e3*#$)ee wh$se *$si,i$n %$r eFa3*#e, reA&ires ,ha, he s,a)s in ,he $Ice +&ring w$r<ing
h$&rs. BeneJ,s, *rivi#eges an+ *erA&isi,es ,ha, a,,ach ,$ a cer,ain *$si,i$n +$ n$, *r$vi+e
s&Icien, 'ases %$r +e,er3ining ,he s&*eri$ri,) $r in%eri$ri,) $% ,he *$si,i$n s$ he#+.
Iss&eL
Whe,her $r n$, C$3*an), in ,rans%erring 7e# 8i##ar %r$3 ,he *$si,i$n $% Trans*$r,a,i$n Services
Manager ,$ S,aK Assis,an, ,$ ,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager, va#i+#)
eFercise+ i,s 3anage3en, *rer$ga,ive $r c$33i,,e+ c$ns,r&c,ive +is3issa#, $r +e3$,i$nW
Whe,her $r n$, ,here has 'een re+&n+anc) in ,he *$si,i$n he#+ ') 7e# 8i##ar ,ha, E&s,iJe+ ,he
c$3*an) %r$3 ,he ac, $% ,a<ing ,he *$si,i$n %r$3 hi3W
R&#ingL
In ,he *&rs&i, $% i,s #egi,i3a,e '&siness in,eres,, 3anage3en, has ,he *rer$ga,ive ,$ ,rans%er
$r assign e3*#$)ees %r$3 $ne $Ice $r area $% $*era,i$n ,$ an$,her *r$vi+e+ ,here is n$
+e3$,i$n in ran< $r +i3in&,i$n $% sa#ar), 'eneJ,s, an+ $,her *rivi#egesO an+ ,he ac,i$n is n$,
3$,iva,e+ ') +iscri3ina,i$n, 3a+e in 'a+ %ai,h, $r eKec,e+ as a %$r3 $% *&nish3en, $r
+e3$,i$n wi,h$&, s&Icien, ca&se. The righ, $% e3*#$)ees ,$ sec&ri,) $% ,en&re +$es n$, give
,he3 ves,e+ righ,s ,$ ,heir *$si,i$ns ,$ ,he eF,en, $% +e*riving 3anage3en, $% i,s *rer$ga,ive
,$ change ,heir assign3en,s $r ,$ ,rans%er ,he3.vir,&a##aw#i'rar)
Manageria# *rer$ga,ives, h$wever, are s&'Eec, ,$ #i3i,a,i$ns *r$vi+e+ ') #aw, c$##ec,ive
'argaining agree3en,s, an+ genera# *rinci*#es $% %air *#a) an+ E&s,ice. B&,, #i<e $,her righ,s,
,here are #i3i,s ,here,$. The 3anageria# *rer$ga,ive ,$ ,rans%er *ers$nne# 3&s, 'e eFercise+
wi,h$&, grave a'&se $% +iscre,i$n, 'earing in 3in+ ,he 'asic e#e3en,s $% E&s,ice an+ %air *#a).
Having ,he righ, sh$&#+ n$, 'e c$n%&se+ wi,h ,he 3anner in which ,ha, righ, is eFercise+.
Th&s, i, cann$, 'e &se+ as a s&',er%&ge ') ,he e3*#$)er ,$ ri+ hi3se#% $% an &n+esira'#e
w$r<er. In *ar,ic&#ar, ,he e3*#$)er 3&s, 'e a'#e ,$ sh$w ,ha, ,he ,rans%er is n$, &nreas$na'#e,
inc$nvenien, $r *reE&+icia# ,$ ,he e3*#$)eeO n$r +$es i, inv$#ve a +e3$,i$n in ran< $r a
+i3in&,i$n $% his sa#aries, *rivi#eges an+ $,her 'eneJ,s. Sh$&#+ ,he e3*#$)er %ai# ,$ $verc$3e
,his '&r+en $% *r$$%, ,he e3*#$)ees ,rans%er sha## 'e ,an,a3$&n, ,$ c$ns,r&c,ive +is3issa#,
which has 'een +eJne+ as a A&i,,ing 'eca&se c$n,in&e+ e3*#$)3en, is ren+ere+ i3*$ssi'#e,
&nreas$na'#e $r &n#i<e#)O as an $Ker inv$#ving a +e3$,i$n in ran< an+ +i3in&,i$n in *a).
Li<ewise, c$ns,r&c,ive +is3issa# eFis,s when an ac, $% c#ear +iscri3ina,i$n, insensi'i#i,) $r
+is+ain ') an e3*#$)er has 'ec$3e s$ &n'eara'#e ,$ ,he e3*#$)ee #eaving hi3 wi,h n$
$*,i$n '&, ,$ %$reg$ wi,h his c$n,in&e+ e3*#$)3en,.&a##aw#i'rar)
A%,er a care%&# scr&,in) $% ,he rec$r+s, we agree wi,h ,he La'$r Ar'i,er an+ ,he C$&r, $%
A**ea#s ,ha, ,he C$3*an) %ai#e+ ,$ +ischarge ,his '&r+en $% *r$$%. The C$3*an) an+ i,s
$Icia#s a,,e3*, ,$ E&s,i%) ,he ,rans%er $% 7e# 8i##ar ') a##eging his &nsa,is%ac,$r) *er%$r3ance
as Trans*$r,a,i$n Services Manager. The C$3*an) +isc#$se+ ,ha,L /7e# 8i##ar0 +is*#a)e+ an
&,,er#) w$e%&# *er%$r3ance. He was &na'#e ,$ s&'3i, 'asic +a,a as ,$ ,)*e an+ 'ran+ $%
vehic#es wi,h highes,B#$wes, 3ain,enance c$s, as reA&es,e+. /7e# 8i##ar0 c$&#+ n$, even
&*+a,e ,he rec$r+s $% his $Ice. He c$&#+ n$, w$r< wi,h 3ini3&3 $r n$ s&*ervisi$n. His
Page 112
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ac,ivi,ies nee+e+ ,$ 'e c#$se#) an+ c$ns,an,#) 3$ni,$re+ ') his s&*eri$rs. /7e# 8i##ar0 #ac<e+
ini,ia,ive an+ ha+ ,$ 'e c$ns,an,#) re3in+e+ $% wha, ,$ +$. He 3eri,e+ a 3e+i$cre gra+e $% !
in a sca#e $% $ne =1? ,$ Jve =2?, ,he #a,,er n&3'er 'eing ,he highes, gra+e
We are &nc$nvince+. The +is3a# *er%$r3ance eva#&a,i$ns $% 7e# 8i##ar were *re*are+ ') San
6&an an+ Pine+a a%,er 7e# 8i##ar a#rea+) i3*#ica,e+ his ,w$ s&*eri$rs in his Re*$r, +a,e+
6an&ar) ., 199- in an a##ege+ %ra&+&#en, sche3e agains, ,he C$3*an). M$re i3*$r,an,#), we
give weigh, ,$ ,he %$##$wing ins,ances es,a'#ishing ,ha, 7e# 8i##ar was n$, 3ere#) ,rans%erre+
%r$3 ,he *$si,i$n $% Trans*$r,a,i$n Services Manager ,$ ,he *$si,i$n $% S,aK Assis,an, ,$ ,he
C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# ManagerO he was evi+en,#) +e3$,e+.
A ,rans%er is a 3$ve3en, %r$3 $ne *$si,i$n ,$ an$,her which is $% eA&iva#en, ran<, #eve# $r
sa#ar), wi,h$&, 'rea< in service. Pr$3$,i$n, $n ,he $,her han+, is ,he a+vance3en, %r$3 $ne
*$si,i$n ,$ an$,her wi,h an increase in +&,ies an+ res*$nsi'i#i,ies as a&,h$ri4e+ ') #aw, an+
&s&a##) acc$3*anie+ ') an increase in sa#ar). C$nverse#), +e3$,i$n inv$#ves a si,&a,i$n where
an e3*#$)ee is re#ega,e+ ,$ a s&'$r+ina,e $r #ess i3*$r,an, *$si,i$n c$ns,i,&,ing a re+&c,i$n
,$ a #$wer gra+e $r ran<, wi,h a c$rres*$n+ing +ecrease in +&,ies an+ res*$nsi'i#i,ies, an+
&s&a##) acc$3*anie+ ') a +ecrease in sa#ar).
7e# 8i##ars +e3$,i$n is rea+i#) a**aren, in his new +esigna,i$n. 9$r3er#), he was ,he
Trans*$r,a,i$n Services ManagerO ,hen he was 3a+e a S,aK Assis,an, a s&'$r+ina,e ,$ an$,her
3anager, *ar,ic&#ar#), ,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager.
Sec$n+, ,he ,w$ *$s,s are n$, $% ,he sa3e weigh, in ,er3s $% +&,ies an+ res*$nsi'i#i,ies. 7e#
8i##ars *$si,i$n as Trans*$r,a,i$n Services Manager inv$#ve+ a high +egree $% res*$nsi'i#i,), he
'eing in charge $% *re*aring ,he '&+ge, %$r a## $% ,he vehic#es $% ,he C$3*an) na,i$nwi+e. As
S,aK Assis,an, $% ,he C$r*$ra,e P&rchasing an+ Ma,eria#s C$n,r$# Manager, 7e# 8i##ar
c$n,en+e+ ,ha, he was n$, assigne+ an) 3eaning%&# w$r< a, a##.
Thir+, whi#e 7e# 8i##ars ,rans%er +i+ n$, res&#, in ,he re+&c,i$n $% his sa#ar), ,here was a
+i3in&,i$n in his 'eneJ,s. The C$3*an) a+3i,s ,ha, as S,aK Assis,an, $% ,he C$r*$ra,e
P&rchasing an+ Ma,eria#s C$n,r$# Manager, 7e# 8i##ar c$&#+ n$ #$nger enE$) ,he &se $% a
c$3*an) car, gas$#ine a##$wance, an+ ann&a# %$reign ,rave#, which 7e# 8i##ar *revi$&s#)
enE$)e+ as Trans*$r,a,i$n Services Manager.
9$&r,h, i, was n$, 'a+ en$&gh ,ha, 7e# 8i##ar was +e3$,e+, '&, he was even *#ace+ ') ,he
C$3*an) &n+er ,he c$n,r$# an+ s&*ervisi$n $% Pine+a as ,he #a,,ers S,aK Assis,an,. T$ reca##,
Pine+a was $ne $% ,he C$3*an) $Icia#s wh$ 7e# 8i##ar acc&se+ $% +e%ra&+ing ,he C$3*an) in
his Re*$r, +a,e+ 6an&ar) ., 199-. I, is n$, ,$$ +iIc&#, ,$ i3agine ,ha, ,he w$r<ing re#a,i$ns
'e,ween 7e# 8i##ar, ,he acc&ser, an+ Pine+a, ,he acc&se+, ha+ 'een s,raine+ an+ h$s,i#e. The
si,&a,i$n w$&#+ 'e 3$re $**ressive %$r 7e# 8i##ar 'eca&se $% his s&'$r+ina,e *$si,i$n vis1G1
vis Pine+a.
9i%,h, a## ,he %$reg$ing ca&se+ 7e# 8i##ar inc$nvenience an+ *reE&+ice, s$ &n'eara'#e %$r hi3
,ha, he was c$ns,raine+ ,$ see< re3e+) %r$3 ,he NLRC. The La'$r Ar'i,er was c$rrec, in his
$'serva,i$n ,ha, ha+ 7e# 8i##ar resigne+ i33e+ia,e#) a%,er his P,rans%er,P he c$&#+ 'e sai+ ,$
have 'een c$ns,r&c,ive#) +is3isse+. There is c$ns,r&c,ive +is3issa# when ,here is a +e3$,i$n
in ran< an+B$r +i3in&,i$n in *a)O $r when a c#ear +iscri3ina,i$n, insensi'i#i,) $r +is+ain ') an
e3*#$)er 'ec$3es &n'eara'#e ,$ ,he e3*#$)ee.
Even,&a##), h$wever, ,he C$3*an) ac,&a##) ,er3ina,e+ 7e# 8i##ars services eKec,ive Ma) 1,
1991, as his *$si,i$n was n$ #$nger necessar) $r was c$nsi+ere+ re+&n+an, +&e ,$ ,he
re$rgani4a,i$n $% ,he B&siness L$gis,ic 7irec,$ra,e. Re+&n+anc) is $ne $% ,he a&,h$ri4e+
Page 11-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ca&ses %$r ,he +is3issa# $% an e3*#$)ee. I, is g$verne+ ') Ar,ic#e !1 $% ,he La'$r C$+e, which
rea+sL
ART. !1. Closu$e of establis%&ent an' $e'u#tion of (e$sonnel. The e3*#$)er 3a) a#s$
,er3ina,e ,he e3*#$)3en, $% an) e3*#$)ee +&e ,$ ,he ins,a##a,i$n $% #a'$r5saving +evices,
re+&n+anc), re,rench3en, ,$ *reven, #$sses $r ,he c#$sing $r cessa,i$n $% $*era,i$n $% ,he
es,a'#ish3en, $r &n+er,a<ing &n#ess ,he c#$sing is %$r ,he *&r*$se $% circ&3ven,ing ,he
*r$visi$ns $% ,his Ti,#e, ') serving a wri,,en n$,ice $n ,he w$r<ers an+ ,he 7e*ar,3en, $% La'$r
an+ E3*#$)3en, a, #eas, $ne =1? 3$n,h 'e%$re ,he in,en+e+ +a,e ,here$%. In case $%
,er3ina,i$n +&e ,$ ,he ins,a##a,i$n $% #a'$r5saving +evices $r re+&n+anc), ,he w$r<er aKec,e+
,here') sha## 'e en,i,#e+ ,$ a se*ara,i$n *a) eA&iva#en, ,$ a, #eas, his $ne =1? 3$n,h *a) $r ,$
a, #eas, $ne =1? 3$n,h *a) %$r ever) )ear $% service, whichever is higher. In case $%
re,rench3en, ,$ *reven, #$sses an+ in cases $% c#$s&res $r cessa,i$n $% $*era,i$ns $%
es,a'#ish3en, $r &n+er,a<ing n$, +&e ,$ seri$&s '&siness #$sses $r Jnancia# reverses, ,he
se*ara,i$n *a) sha## 'e eA&iva#en, ,$ $ne =1? 3$n,h *a) $r ,$ a, #eas, $ne5ha#% =1B!? 3$n,h
*a) %$r ever) )ear $% service, whichever is higher. A %rac,i$n $% a, #eas, siF =-? 3$n,hs sha## 'e
c$nsi+ere+ $ne =1? wh$#e )ear.
Re+&n+anc), %$r *&r*$ses $% ,he La'$r C$+e, eFis,s where ,he services $% an e3*#$)ee are in
eFcess $% wha, is reas$na'#) +e3an+e+ ') ,he ac,&a# reA&ire3en,s $% ,he en,er*rise.
S&ccinc,#) *&,, a *$si,i$n is re+&n+an, where i, is s&*erT&$&s, an+ s&*erT&i,) $% a *$si,i$n $r
*$si,i$ns 3a) 'e ,he $&,c$3e $% a n&3'er $% %ac,$rs, s&ch as $verhiring $% w$r<ers,
+ecrease+ v$#&3e $% '&siness, $r +r$**ing $% a *ar,ic&#ar *r$+&c, #ine $r service ac,ivi,)
*revi$&s#) 3an&%ac,&re+ $r &n+er,a<en ') ,he en,er*rise.
The +e,er3ina,i$n ,ha, ,he e3*#$)eeSs services are n$ #$nger necessar) $r s&s,aina'#e an+,
,here%$re, *r$*er#) ,er3ina'#e %$r 'eing re+&n+an, is an eFercise $% '&siness E&+g3en, $% ,he
e3*#$)er. The wis+$3 $r s$&n+ness $% ,his E&+g3en, is n$, s&'Eec, ,$ +iscre,i$nar) review $%
,he La'$r Ar'i,er an+ ,he NLRC, *r$vi+e+ ,here is n$ vi$#a,i$n $% #aw an+ n$ sh$wing ,ha, i,
was *r$3*,e+ ') an ar'i,rar) $r 3a#ici$&s ac,.
In $,her w$r+s, i, is n$, en$&gh %$r a c$3*an) ,$ 3ere#) +ec#are ,ha, i, has 'ec$3e
$ver3anne+. I, 3&s, *r$+&ce a+eA&a,e *r$$% $% s&ch re+&n+anc) ,$ E&s,i%) ,he +is3issa# $%
,he aKec,e+ e3*#$)ees.
C$ca C$#a *resen,e+ n$ $,her evi+ence , Nei,her +i+ ,he C$3*an) *resen, *r$$% ,ha, i, ha+
c$3*#ie+ wi,h ,he *r$ce+&ra# reA&ire3en, in Ar,ic#e !1 $% *ri$r n$,ice ,$ ,he 7e*ar,3en, $%
La'$r an+ E3*#$)3en, =7:LE? $% ,he ,er3ina,i$n $% 7e# 8i##ars e3*#$)3en, +&e ,$
re+&n+anc) $ne 3$n,h *ri$r ,$ Ma) 1, 1991.
7e# 8i##ars *$$r e3*#$)ee *er%$r3ance is irre#evan, as regar+s ,he iss&e $n re+&n+anc).
Re+&n+anc) arises 'eca&se ,here is n$ 3$re nee+ %$r ,he e3*#$)ees *$si,i$n in re#a,i$n ,$ ,he
wh$#e '&siness $rgani4a,i$n, an+ n$, 'eca&se ,he e3*#$)ee &nsa,is%ac,$ri#) *er%$r3e+ ,he
+&,ies an+ res*$nsi'i#i,ies reA&ire+ ') his *$si,i$n.
An e3*#$)ee wh$ is i##ega##) +is3isse+ is en,i,#e+ ,$ ,he ,win re#ie%s $% %&## 'ac<wages an+
reins,a,e3en,. I% reins,a,e3en, is n$, via'#e, se*ara,i$n *a) is awar+e+ ,$ ,he e3*#$)ee. In
awar+ing se*ara,i$n *a) ,$ an i##ega##) +is3isse+ e3*#$)ee, in #ie& $% reins,a,e3en,, ,he
a3$&n, ,$ 'e awar+e+ sha## 'e eA&iva#en, ,$ $ne 3$n,h sa#ar) %$r ever) )ear $%
service. >n+er Re*&'#ic Ac, N$. -"12, e3*#$)ees wh$ are i##ega##) +is3isse+ are en,i,#e+ ,$ %&##
'ac<wages, inc#&sive $% a##$wances an+ $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en,, c$3*&,e+
%r$3 ,he ,i3e ,heir ac,&a# c$3*ensa,i$n was wi,hhe#+ %r$3 ,he3 &* ,$ ,he ,i3e $% ,heir ac,&a#
reins,a,e3en, '&, i% reins,a,e3en, is n$ #$nger *$ssi'#e, ,he 'ac<wages sha## 'e c$3*&,e+
Page 11"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
%r$3 ,he ,i3e $% ,heir i##ega# ,er3ina,i$n &* ,$ ,he Jna#i,) $% ,he +ecisi$n. We n$,e ,ha, 7e#
8i##ars reins,a,e3en, is n$ #$nger *$ssi'#e 'eca&se ,he *$si,i$n he *revi$&s#) $cc&*ie+ n$
#$nger eFis,s, *er San 6&ans AI+avi, +a,e+ :c,$'er 12, 1991. A#s$, 7e# 8i##ar ha+ a#rea+)
receive+ his se*ara,i$n *a) s$3e,i3e in :c,$'er 1991.
1.. Manila #lec(ric Co. vs. Li/, G.R. No. 1-*7)9, 7c(oer ., 2"1"
9ac,sL
R$sari$ G. Li3 =res*$n+en,?, a#s$ <n$wn as Cherr) Li3, is an a+3inis,ra,ive c#er< a, ,he Mani#a
E#ec,ric C$3*an) =MERALC:?. :n 6&ne ., !((1, an an$n)3$&s #e,,er was *$s,e+ a, ,he +$$r
$% ,he Me,ering :Ice $% ,he A+3inis,ra,i$n '&i#+ing $% MERALC: P#ari+e#, B&#acan Sec,$r, a,
which res*$n+en, is assigne+, +en$&ncing res*$n+en,. The #e,,er rea+sL
Cherr) Li3L
MATAP:S M:NG LAM>NIN LAHAT NG BI@A@A NG MERALC:, NGA@:N NAMAN A@ G>ST: M:NG
PALAM:N ANG B>:NG H>MPAN@A SA MGA B>WA@A NG G:B@ERN:. HAPAL NG M>HHA M:,
L>MA@AS HA RIT:, WALANG >TANG NA L::B
Res$&rce S,aIng, +irec,e+ ,he ,rans%er $% res*$n+en, ,$ MERALC:Ss A#a'ang Sec,$r in
M&n,in#&*a as PAB9 :TMS C#er<,P eKec,ive 6&#) 11, !((1 in #igh, $% ,he recei*, $% P. . . re*$r,s
,ha, ,here were acc&sa,i$ns an+ ,hrea,s +irec,e+ agains, her %r$3 &n<n$wn in+ivi+&a#s an+
which c$&#+ *$ssi'#) c$3*r$3ise her sa%e,) an+ sec&ri,).P
Res*$n+en,, ') #e,,er $% 6&#) 1(, !((1 a++resse+ ,$ *e,i,i$ner R&'en A. Sa*i,&#a, 8ice5
Presi+en, an+ Hea+ $% MERALC:Ss H&3an Res$&rce A+3inis,ra,i$n, a**ea#e+ her ,rans%er an+
reA&es,e+ %$r a +ia#$g&e s$ she c$&#+ v$ice her c$ncerns an+ 3isgivings $n ,he 3a,,er,
c#ai3ing ,ha, ,he P*&ni,iveP na,&re $% ,he ,rans%er a3$&n,e+ ,$ a +enia# $% +&e *r$cess. Ci,ing
,he gr&e#ing ,rave# %r$3 her resi+ence in Pa3*anga ,$ A#a'ang an+ 'ac< en,ai#s, an+ vi$#a,i$n
$% ,he *r$visi$ns $n E$' sec&ri,) $% ,heir C$##ec,ive Bargaining Agree3en, =CBA?.
Res*$n+en, J#e+ a *e,i,i$n %$r ,he iss&ance $% a wri, $% $abeas data agains, *e,i,i$ners 'e%$re
,he Regi$na# Tria# C$&r, =RTC? $% B&#acan. B) res*$n+en,Ss a##ega,i$n, *e,i,i$nersS &n#aw%&# ac,
an+ $3issi$n c$nsis,ing $% ,heir c$n,in&e+ %ai#&re an+ re%&sa# ,$ *r$vi+e her wi,h +e,ai#s $r
in%$r3a,i$n a'$&, ,he a##ege+ re*$r, which MERALC: *&r*$r,e+#) receive+ c$ncerning ,hrea,s
,$ her sa%e,) an+ sec&ri,) a3$&n, ,$ a vi$#a,i$n $% her righ, ,$ *rivac) in #i%e, #i'er,) an+
sec&ri,), c$rrec,i'#e ') $abeas data.
Res*$n+en, is essen,ia##) A&es,i$ning ,he ,rans%er $% her *#ace $% w$r< ') her
e3*#$)er an+ ,he ,er3s an+ c$n+i,i$ns $% her e3*#$)3en, which arise %r$3 an e3*#$)er5
e3*#$)ee re#a,i$nshi* $ver which ,he NLRC an+ ,he La'$r Ar'i,ers &n+er Ar,ic#e !1" $% ,he
La'$r C$+e have E&ris+ic,i$n.
Pe,i,i$ners 3$ve+ %$r ,he +is3issa# $% ,he *e,i,i$n an+ reca## $% ,he TR: $n ,he gr$&n+s
,ha,, inter alia, res$r, ,$ a *e,i,i$n %$r wri, $% $abeas data was n$, in $r+erO an+ ,he RTC #ac<e+
E&ris+ic,i$n $ver ,he case which *r$*er#) 'e#$ngs ,$ ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n
=NLRC?.
Iss&eL
Whe,her $r n$,, RTC has E&ris+ic,i$n.
R&#ingL
Page 111
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Res*$n+en,Ss *#ea ,ha, she 'e s*are+ %r$3 c$3*#)ing wi,h MERALC:Ss Me3$ran+&3 +irec,ing
her reassign3en, ,$ ,he A#a'ang Sec,$r, &n+er ,he g&ise $% a A&es, %$r in%$r3a,i$n $r +a,a
a##ege+#) in *$ssessi$n $% *e,i,i$ners, +$es n$, %a## wi,hin ,he *r$vince $% a wri, $% $abeas
data.
I, is evi+en, ,ha, res*$n+en,Ss reserva,i$ns $n ,he rea# reas$ns %$r her ,rans%er ` a #egi,i3a,e
c$ncern res*ec,ing ,he ,er3s an+ c$n+i,i$ns $% $neSs e3*#$)3en, ` are wha, *r$3*,e+ her
,$ a+$*, ,he eF,ra$r+inar) re3e+) $% $abeas data. 6&ris+ic,i$n $ver s&ch c$ncerns is
inarg&a'#) #$+ge+ ') #aw wi,h ,he NLRC an+ ,he La'$r Ar'i,ers.
1). 'ello vs. 'onifacio Securi($ Services, G.R. No. 1--"-), Augus( 3, 2"11
9ac,sL
Res*$n+en, B$ni%aci$ Sec&ri,) Services, Inc. /BSS(0 is a +$3es,ic *riva,e c$r*$ra,i$n engage+
in ,he '&siness $% *r$vi+ing sec&ri,) services. In 6&#) !((1, ,he BSSI hire+ Be##$ as a r$ving
,raIc 3arsha# ,$ 3anage ,raIc an+ ,$ c$n+&c, sec&ri,) an+ sa%e,)5re#a,e+ $*era,i$ns in ,he
B$ni%aci$ G#$'a# Ci,) /B,C0. In A&g&s, !((1, Be##$ was *$s,e+ a, ,he Negr$s Naviga,i$n
C$3*an) in Pier !, N$r,h Har'$r, ,$ s&*ervise sec,$ra# $*era,i$ns. In N$ve3'er !((1, he was
assigne+ a, BGC as assis,an, +e,ach3en, c$33an+er. A%,er a wee<, he was ,rans%erre+ ,$
PaciJc P#a4a T$wers as assis,an, +e,ach3en, c$33an+er an+ #a,er as +e,ach3en,
c$33an+er. In 6&ne !((!, he was assigne+ a, Pier !, N$r,h Har'$r as assis,an, +e,ach3en,
c$33an+er, '&, #a,er reassigne+ ,$ BGC. In A&g&s, !((!, ,he BSSI hire+ a new $*era,i$ns
3anager, res&#,ing in ,he re$rgani4a,i$n $% *$s,s. In :c,$'er !((!, Be##$ was assigne+ as
r$ving ,raIc 3arsha# a, ,he BGC. :n :c,$'er !2, !((!, he J#e+ an in+eJni,e #eave $% a'sence
when his new assign3en, ,$$< eKec,.
:n N$ve3'er 2, !((!, Be##$ J#e+ a c$3*#ain, agains, ,he BSSI an+ i,s Genera# Manager,
res*$n+en, Sa3&e# T$3as, wi,h ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n /NLRC0, c#ai3ing
,ha, he ha+ 'een c$ns,r&c,ive#) +is3isse+ when he was +e3$,e+ %r$3 a +e,ach3en,
c$33an+er ,$ a 3ere ,raIc 3arsha#. He a##ege+ ,ha, he receive+ a series $% *r$3$,i$ns %r$3
!((1 ,$ !((!, %r$3 ,raIc 3arsha# ,$ s&*ervis$r, ,$ assis,an, +e,ach3en, c$33an+er, an+ ,$
+e,ach3en, c$33an+er.
The BSSI +enie+ Be##$Ss c#ai3 $% c$ns,r&c,ive +is3issa#, arg&ing ,ha, n$ *r$3$,i$n ,$$< *#aceO
Be##$Ss +esigna,i$n as assis,an, +e,ach3en, c$33an+er $r +e,ach3en, c$33an+er was n$,
an e3*#$)3en, *$si,i$n '&, a +&,)5re#a,e+ assign3en,O Be##$ a'an+$ne+ his E$' when he wen,
$n an in+eJni,e #eave $% a'sence an+ +i+ n$, re*$r, %$r w$r<.
La'$r Ar'i,er Cresenci$ G. Ra3$s, 6r. %$&n+ ,ha, Be##$ was i##ega##) +is3isse+, n$,ing ,ha, ,he
BSSI %ai#e+ ,$ a++&ce evi+ence ,ha, Be##$ a'an+$ne+ his e3*#$)3en,.
In i,s March !-, !((1 res$#&,i$n, ,he NLRC aIr3e+ ,he #a'$r ar'i,erSs +ecisi$n, Jn+ing ,ha,
Be##$ ha+ 'een c$ns,r&c,ive#) +is3isse+ when he was +e3$,e+ ,$ ,he ran<5an+5J#e *$si,i$n $%
,raIc 3arsha# a%,er $cc&*)ing ,he s&*ervis$r) *$si,i$n $% assis,an, +e,ach3en, c$33an+er
an+ +e,ach3en, c$33an+er.
The CA n&##iJe+ ,he NLRC res$#&,i$ns, Jn+ing ,he rec$r+s 'ere%, $% evi+ence s&'s,an,ia,ing ,he
#a'$r ar'i,erSs an+ ,he NLRCSs c$nc#&si$ns ,ha, Be##$ ha+ 'een c$ns,r&c,ive#) +is3isse+. I,
n$,e+ ,ha, Be##$ $Kere+ n$ evi+ence ,$ *r$ve ,ha, ,here was a series $% *r$3$,i$ns ,ha, w$&#+
E&s,i%) his c#ai3 $% s&'seA&en, +e3$,i$n. The CA +enie+
Page 119
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he BSSISs 3$,i$n %$r rec$nsi+era,i$n, *aving ,he wa) %$r ,he *resen, *e,i,i$n.
Iss&eL
Whe,her $r n$,, Be##$ was i##ega##) +is3isse+.
R&#ingL
We Jn+ n$ reas$n ,$ +is,&r' ,he CA c$nc#&si$n ,ha, ,here was n$ c$ns,r&c,ive +is3issa#. Case
#aw +eJnes c$ns,r&c,ive +is3issa# as a cessa,i$n $% w$r< 'eca&se c$n,in&e+ e3*#$)3en, has
'een ren+ere+ i3*$ssi'#e, &nreas$na'#e, $r &n#i<e#), as when ,here is a +e3$,i$n in ran< $r
+i3in&,i$n in *a), $r '$,h, $r when a c#ear +iscri3ina,i$n, insensi'i#i,), $r +is+ain ') an
e3*#$)er 'ec$3es &n'eara'#e ,$ ,he e3*#$)ee.
:,her ,han his 'are an+ se#%5serving a##ega,i$ns, Be##$ has n$, $Kere+ an) evi+ence ,ha, he
was *r$3$,e+ in a s*an $% %$&r 3$n,hs since his e3*#$)3en, as ,raIc 3arsha# in 6&#) !((1 ,$
a +e,ach3en, c$33an+er in N$ve3'er !((1. 7&ring his siF53$n,h *r$'a,i$nar) *eri$+ $%
e3*#$)3en,, i, is high#) i3*r$'a'#e ,ha, Be##$ w$&#+ 'e *r$3$,e+ a%,er E&s, a 3$n,h $%
e3*#$)3en,, %r$3 a ,raIc 3arsha# in 6&#) !((1 ,$ s&*ervis$r in A&g&s, !((1, an+ ,hree
3$n,hs #a,er ,$ assis,an, +e,ach3en, c$33an+er an+ ,$ +e,ach3en, c$33an+er in
N$ve3'er !((1. A, 3$s,, ,he BSSI 3ere#) change+ his assign3en, $r ,rans%erre+ hi3 ,$ ,he
*$s, where his service w$&#+ 'e 3$s, 'eneJcia# ,$ i,s c#ien,s. The 3anage3en,Ss *rer$ga,ive
$% ,rans%erring an+ reassigning e3*#$)ees %r$3 $ne area $% $*era,i$n ,$ an$,her in $r+er ,$
3ee, ,he reA&ire3en,s $% ,he '&siness is genera##) n$, c$ns,i,&,ive $% c$ns,r&c,ive
+is3issa#. We see ,his ,$ 'e ,he case in ,he *resen, +is*&,e s$ ,ha, ,he c$nseA&en,
reassign3en, $% Be##$ ,$ a ,raIc 3arsha# *$s, was we## wi,hin ,he sc$*e $% ,he BSSISs
3anage3en, *rer$ga,ive.
17. Aler( Securi($ an& !nves(iga(ion Agenc$ vs. 3asawilan, G.R. No. 1-2397,
Se%(e/er 1*, 2"11
9ac,sL
Res*$n+en,s Sai+a#i Pasawi#an, Wi#%re+$ 8erce#es an+ Me#ch$r B&#&san were a## e3*#$)e+ ')
*e,i,i$ner A#er, Sec&ri,) an+ Inves,iga,i$n Agenc), Inc. =A#er, Sec&ri,)? as sec&ri,) g&ar+s
'eginning March 1, 199-, 6an&ar) 1., 199", an+ 6an&ar) !., 199", res*ec,ive#). The) were
*ai+ 1-2.(( *es$s a +a) as reg&#ar e3*#$)ees, an+ assigne+ a, ,he 7e*ar,3en, $% Science
an+ Techn$#$g) =7:ST? *&rs&an, ,$ a sec&ri,) service c$n,rac, 'e,ween ,he 7:ST an+ A#er,
Sec&ri,).
Res*$n+en,s aver ,ha, 'eca&se ,he) were &n+er*ai+, ,he) J#e+ a c$3*#ain, %$r 3$ne) c#ai3s
agains, A#er, Sec&ri,) an+ i,s *resi+en, an+ genera# 3anager, *e,i,i$ner Man&e# 7. 7asig,
'e%$re La'$r Ar'i,er Arie# C. San,$s. As a res&#, $% ,heir c$3*#ain,, ,he) were re#ieve+ %r$3
,heir *$s,s in ,he 7:ST an+ were n$, given new assign3en,s +es*i,e ,he #a*se $% siF 3$n,hs.
:n 6an&ar) !-, 1999, ,he) J#e+ a E$in, c$3*#ain, %$r i##ega# +is3issa# agains, *e,i,i$ners.
Pe,i,i$ners, $n ,he $,her han+, +en) ,ha, ,he) +is3isse+ ,he res*$n+en,s. Pe,i,i$ners
*resen,e+ P7&,) 7e,ai# :r+ersP ,ha, A#er, Sec&ri,) iss&e+ ,$ sh$w ,ha, res*$n+en,s were in
%ac, assigne+ ,$ LRTA. Res*$n+en,s, h$wever, %ai#e+ ,$ re*$r, a, ,he LRTA an+ ins,ea+ <e*,
#$i,ering a, ,he 7:ST an+ ,rie+ ,$ c$nvince $,her sec&ri,) g&ar+s ,$ J#e c$3*#ain,s agains,
A#er, Sec&ri,). Th&s, $n A&g&s, , 1991, A#er, Sec&ri,) J#e+ a P,er3ina,i$n re*$r,P wi,h ,he
7e*ar,3en, $% La'$r an+ E3*#$)3en, re#a,ive ,$ ,he ,er3ina,i$n $% ,he res*$n+en,s.
Iss&eL
Page 1!(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Whe,her res*$n+en,s were i##ega##) +is3isse+
R&#ingsL
We r&#e in ,he aIr3a,ive.
As a r&#e, e3*#$)3en, cann$, 'e ,er3ina,e+ ') an e3*#$)er wi,h$&, an) E&s, $r a&,h$ri4e+
ca&se. N$ #ess ,han ,he 191" C$ns,i,&,i$n in Sec,i$n , Ar,ic#e 1 g&aran,ees sec&ri,) $%
,en&re %$r w$r<ers an+ 'eca&se $% ,his, an e3*#$)ee 3a) $n#) 'e ,er3ina,e+ %$r E&s, $r
a&,h$ri4e+

ca&ses ,ha, 3&s, c$3*#) wi,h ,he +&e *r$cess reA&ire3en,s 3an+a,e+ ') #aw.
Hence, e3*#$)ers are 'arre+ %r$3 ar'i,rari#) re3$ving ,heir w$r<ers whenever an+ h$wever
,he) wan,. The #aw se,s ,he va#i+ gr$&n+s %$r ,er3ina,i$n as we## as ,he *r$*er *r$ce+&re ,$
,a<e when ,er3ina,ing ,he services $% an e3*#$)ee.
A#,h$&gh we rec$gni4e ,he righ, $% e3*#$)ers ,$ sha*e ,heir $wn w$r< %$rce, ,his 3anage3en,
*rer$ga,ive 3&s, n$, c&r,ai# ,he 'asic righ, $% e3*#$)ees ,$ sec&ri,) $% ,en&re. There 3&s, 'e
a va#i+ an+ #aw%&# reas$n %$r ,er3ina,ing ,he e3*#$)3en, $% a w$r<er. :,herwise, i, is i##ega#
an+ w$&#+ 'e +ea#, wi,h ') ,he c$&r,s acc$r+ing#).
The La'$r C$+e, as a3en+e+, en&3era,es severa# E&s, an+ a&,h$ri4e+ ca&ses %$r a va#i+
,er3ina,i$n $% e3*#$)3en,. An e3*#$)ee asser,ing his righ, an+ as<ing %$r 3ini3&3 wage is
n$, a3$ng ,h$se ca&ses. 7is3issing an e3*#$)ee $n ,his gr$&n+ a3$&n,s ,$ re,a#ia,i$n ')
3anage3en, %$r an e3*#$)eeGs #egi,i3a,e grievance wi,h$&, +&e *r$cess. S&ch s,r$<e $%
re,ri'&,i$n has n$ *#ace in Phi#i**ine La'$r Laws.
:n ,he e#e3en, $% ,he %ai#&re $% ,he e3*#$)ee ,$ re*$r, %$r w$r<, we a#s$ cann$, acce*, ,he
a##ega,i$ns $% *e,i,i$ners ,ha, res*$n+en,s &nE&s,iJa'#) re%&se+ ,$ re*$r, %$r +&,) in ,heir new
*$s,s. A care%&# review $% ,he rec$r+s revea#s ,ha, ,here is n$ sh$wing ,ha, res*$n+en,s were
n$,iJe+ $% ,heir new assign3en,s. Gran,ing ,ha, ,he P7&,) 7e,ai# :r+ersP were in+ee+ iss&e+,
,he) serve+ n$ *&r*$se &n#ess ,he in,en+e+ reci*ien,s $% ,he $r+ers are in%$r3e+ $% s&ch.
The e3*#$)er cann$, si3*#) c$nc#&+e ,ha, an e3*#$)ee is i*s$ %ac,$ n$,iJe+ $% a ,rans%er
when ,here is n$ evi+ence ,$ in+ica,e ,ha, ,he e3*#$)ee ha+ <n$w#e+ge $% ,he ,rans%er $r+er.
Hence, ,he %ai#&re $% an e3*#$)ee ,$ re*$r, %$r w$r< a, ,he new #$ca,i$n cann$, 'e ,a<en
agains, hi3 as an e#e3en, $% a'an+$n3en,.
We ac<n$w#e+ge an+ rec$gni4e ,he righ, $% an e3*#$)er ,$ ,rans%er e3*#$)ees in ,he in,eres,
$% ,he service. This eFercise is a 3anage3en, *rer$ga,ive which is a #aw%&# righ, $% an
e3*#$)er. H$wever, #i<e a## righ,s, ,here are #i3i,a,i$ns ,$ ,he righ, ,$ ,rans%er e3*#$)ees. As
r&#e+ in ,he case $% B#&e 7air) C$r*$ra,i$n v. NLRCL
F F F The 3anageria# *rer$ga,ive ,$ ,rans%er *ers$nne# 3&s, 'e eFercise+ wi,h$&, grave a'&se
$% +iscre,i$n, 'earing in 3in+ ,he 'asic e#e3en,s $% E&s,ice an+ %air *#a). Having ,he righ,
sh$&#+ n$, 'e c$n%&se+ wi,h ,he 3anner in which ,ha, righ, is eFercise+. Th&s, i, cann$, 'e
&se+ as a s&',er%&ge ') ,he e3*#$)er ,$ ri+ hi3se#% $% an &n+esira'#e w$r<er.

In *ar,ic&#ar, ,he
e3*#$)er 3&s, 'e a'#e ,$ sh$w ,ha, ,he ,rans%er is n$, &nreas$na'#e, inc$nvenien, $r
*reE&+icia# ,$ ,he e3*#$)eeO n$r +$es i, inv$#ve a +e3$,i$n in ran< $r a +i3in&,i$n $% his
sa#aries, *rivi#eges an+ $,her 'eneJ,s. F F F
In a++i,i$n ,$ ,hese ,es,s %$r a va#i+ ,rans%er, ,here sh$&#+ 'e *r$*er an+ eKec,ive n$,ice ,$ ,he
e3*#$)ee c$ncerne+. I, is ,he e3*#$)erGs '&r+en ,$ sh$w ,ha, ,he e3*#$)ee was +&#) n$,iJe+
$% ,he ,rans%er. 8eri#), an e3*#$)er cann$, reas$na'#) eF*ec, an e3*#$)ee ,$ re*$r, %$r w$r<
in a new #$ca,i$n wi,h$&, Jrs, in%$r3ing sai+ e3*#$)ee $% ,he ,rans%er. Pe,i,i$nersG insis,ence
$n ,he s&Icienc) $% 3ere iss&ance $% ,he ,rans%er $r+er is in+ica,ive $% 'a+ %ai,h $n ,heir *ar,.
Page 1!1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
1-. Manila 3avilion @o(el vs. 4ela&a, G.R. No. 1-99*7, 2anuar$ 2., 2"12
9ac,sL
7e#a+a was ,he >ni$n Presi+en, $% ,he Mani#a Pavi#i$n S&*ervis$rs Ass$cia,i$n a, MPH. He was
$rigina##) assigne+ as Hea+ Wai,er $% R$,isserie, a Jne5+ining res,a&ran, $*era,e+ ')
*e,i,i$ner. P&rs&an, ,$ a s&*ervis$r) *ers$nne# re$rgani4a,i$n *r$gra3, MPH reassigne+ hi3
as Hea+ Wai,er $% Seas$ns C$Kee Sh$*, an$,her res,a&ran, $*era,e+ ') *e,i,i$ner a, ,he sa3e
h$,e#. Res*$n+en, +ec#ine+ ,he in,er5$&,#e, ,rans%er an+ ins,ea+ as<e+ %$r a grievance 3ee,ing
$n ,he 3a,,er, *&rs&an, ,$ ,heir C$##ec,ive Bargaining Agree3en, =CBA?. He a#s$ reA&es,e+ his
re,en,i$n as Hea+ Wai,er $% R$,isserie whi#e ,he grievance *r$ce+&re was $ng$ing.
MPH re*#ie+ an+ ,$#+ res*$n+en, ,$ re*$r, ,$ his new assign3en, %$r ,he ,i3e 'eing, wi,h$&,
*reE&+ice ,$ ,he res$#&,i$n $% ,he grievance inv$#ving ,he ,rans%er. He a+a3an,#) re%&se+ ,$
ass&3e his new *$s, a, ,he Seas$ns C$Kee Sh$* an+ ins,ea+ c$n,in&e+ ,$ re*$r, ,$ his
*revi$&s assign3en, a, R$,isserie. Th&s, MPH sen, hi3 severa# 3e3$ran+a $n vari$&s +a,es,
reA&iring hi3 ,$ eF*#ain in wri,ing wh) he sh$&#+ n$, 'e *ena#i4e+ %$r ,he %$##$wing $KensesL
seri$&s 3isc$n+&c,O wi##%&# +is$'e+ience $% ,he #aw%&# $r+ers $% ,he e3*#$)erO gr$ss
ins&'$r+ina,i$nO gr$ss an+ ha'i,&a# neg#ec, $% +&,iesO an+ wi##%&# 'reach $% ,r&s,. 7es*i,e ,he
n$,ices %r$3 MPH, 7e#a+a *ersis,en,#) re'&Ke+ $r+ers %$r hi3 ,$ re*$r, ,$ his new assign3en,.
Acc$r+ing ,$ hi3, since ,he grievance 3achiner) &n+er ,heir CBA ha+ a#rea+) 'een ini,ia,e+,
his ,rans%er 3&s, 'e he#+ in a'e)ance. Th&s, $n 9 Ma) !((", MPH ini,ia,e+ a+3inis,ra,ive
*r$cee+ings agains, hi3.
Iss&eL
Whe,her MPH re,aine+ ,he a&,h$ri,) ,$ c$n,in&e wi,h ,he a+3inis,ra,ive case agains, 7e#a+a
%$r ins&'$r+ina,i$n an+ wi##%&# +is$'e+ience $% ,he ,rans%er $r+er.
R&#ingsL
Acc$r+ing#), we r&#e in ,his case ,ha, MPH +i+ n$, #$se i,s a&,h$ri,) ,$ +isci*#ine res*$n+en, %$r
his c$n,in&e+ re%&sa# ,$ re*$r, ,$ his new assign3en,. In re#a,i$n ,$ ,his *$in,, we reca## $&r
7ecisi$n in A##ie+ Ban<ing C$r*$ra,i$n v. C$&r, $% A**ea#s.
In A##ie+ Ban<ing C$r*$ra,i$n,

e3*#$)er A##ie+ Ban< reassigne+ res*$n+en, Ga#ani+a %r$3 i,s
Ce'& Ci,) 'ranch ,$ i,s Bac$#$+ an+ Tag'i#aran 'ranches. He re%&se+ ,$ %$##$w ,he ,rans%er
$r+er an+ ins,ea+ J#e+ a C$3*#ain, 'e%$re ,he La'$r Ar'i,er %$r c$ns,r&c,ive +is3issa#. Whi#e
,he case was *en+ing, A##ie+ Ban< insis,e+ ,ha, he re*$r, ,$ his new assign3en,. When he
c$n,in&e+ ,$ re%&se, i, +irec,e+ hi3 ,$ eF*#ain in wri,ing wh) n$ +isci*#inar) ac,i$n sh$&#+ 'e
3e,e+ $&, ,$ hi3. 7&e ,$ his c$n,in&e+ re%&sa# ,$ re*$r, ,$ his new assign3en,, A##ie+ Ban<
even,&a##) ,er3ina,e+ his services. When ,he iss&e $% whe,her he c$&#+ va#i+#) re%&se ,$ $'e)
,he ,rans%er $r+ers was 'r$&gh, 'e%$re ,his C$&r,, we r&#e+ ,h&sL
The re%&sa# ,$ $'e) a va#i+ ,rans%er $r+er c$ns,i,&,es wi##%&# +is$'e+ience $% a #aw%&# $r+er $%
an e3*#$)er. E3*#$)ees 3a) $'Eec, ,$, neg$,ia,e an+ see< re+ress agains, e3*#$)ers %$r
r&#es $r $r+ers ,ha, ,he) regar+ as &nE&s, $r i##ega#. H$wever, &n,i# an+ &n#ess ,hese r&#es $r
$r+ers are +ec#are+ i##ega# $r i3*r$*er ') c$3*e,en, a&,h$ri,), ,he e3*#$)ees ign$re $r
+is$'e) ,he3 a, ,heir *eri#. 9$r Ga#ani+aGs c$n,in&e+ re%&sa# ,$ $'e) A##ie+ Ban<Ss ,rans%er
$r+ers, we h$#+ ,ha, ,he 'an< +is3isse+ Ga#ani+a %$r E&s, ca&se in acc$r+ance wi,h Ar,ic#e
!1!=a? $% ,he La'$r C$+e. Ga#ani+a is ,h&s n$, en,i,#e+ ,$ reins,a,e3en, $r ,$ se*ara,i$n *a).
=E3*hasis s&**#ie+, ci,a,i$ns $3i,,e+?.
Page 1!!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
I, is i3*$r,an, ,$ n$,e wha, ,he P8A sai+ $n 7e#a+aGs +eJance $% ,he ,rans%er $r+erL
In %ac,, 7e#a+a cann$, hi+e &n+er ,he #ega# c#$a< $% ,he grievance 3achiner) $% ,he CBA $r ,he
v$#&n,ar) ar'i,ra,i$n *r$cee+ings ,$ +is$'e) a va#i+ $r+er $% ,rans%er %r$3 ,he 3anage3en, $%
,he h$,e#. Whi#e i, is ,r&e ,ha, 7e#a+aGs ,rans%er ,$ Seas$ns is ,he s&'Eec, $% ,he grievance
3achiner) in acc$r+ance wi,h ,he *r$visi$ns $% ,heir CBA, 7e#a+a is eF*ec,e+ ,$ c$3*#) Jrs,
wi,h ,he sai+ #aw%&# +irec,ive whi#e awai,ing ,he res&#,s $% ,he +ecisi$n in ,he grievance
*r$cee+ings. This iss&e %a##s sA&are#) in ,he case $% A##ie+ Ban<ing C$r*$ra,i$n vs. C$&r, $%
A**ea#s F F F.
P&rs&an, ,$ A##ie+ Ban<ing, &n#ess ,he $r+er $% MPH is ren+ere+ inva#i+, ,here is a *res&3*,i$n
$% ,he va#i+i,) $% ,ha, $r+er. Since ,he P8A even,&a##) r&#e+ ,ha, ,he ,rans%er $r+er was a va#i+
eFercise $% 3anage3en, *rer$ga,ive, we here') reverse ,he 7ecisi$n an+ ,he Res$#&,i$n $%
,he CA aIr3ing ,he 7ecisi$n $% ,he P8A in ,his res*ec,. MPH ha+ ,he a&,h$ri,) ,$ c$n,in&e
wi,h ,he a+3inis,ra,ive *r$cee+ings %$r ins&'$r+ina,i$n an+ wi##%&# +is$'e+ience agains,
7e#a+a an+ ,$ i3*$se $n hi3 ,he *ena#,) $% s&s*ensi$n. As a c$nseA&ence, *e,i,i$ner is n$,
#ia'#e ,$ *a) 'ac< wages an+ $,her 'eneJ,s %$r ,he *eri$+ c$rres*$n+ing ,$ ,he *ena#,) $% 9(5
+a) s&s*ensi$n.
Page 1!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
TER!INATION O E!PLOY!ENT
1. Re(u$a v. NLRC, G.R. No. 1*--*-, Augus( ., 2""3, ci(ing 'us(a/an(e
9ac,sL
Priva,e res*$n+en,, Ins&#ar B&i#+ers, Inc., is a %a3i#)5$wne+ c$r*$ra,i$n 3anage+ an+
$*era,e+ *rinci*a##) ') An,$ni$ M&ri##$, %a,her, an+ his s$n, R$+$#%$ M&ri##$. I, is engage+ in
,he c$ns,r&c,i$n '&siness. Pe,i,i$ners, $n ,he $,her han+, were w$r<ers wh$ have ren+ere+
services in vari$&s c$r*$ra,i$ns $% *riva,e res*$n+en,s, na3e#) Min+ana$ In,egra,e+ B&i#+ers,
Inc., S,a. C#ara P#)w$$+, Inc., Ins&#ar B&i#+ers, Inc. an+ D&een Ci,) B&i#+ers, Inc.
Ear#) 199, a, ,he heigh, $% ,he %e&+ 'e,ween *riva,e res*$n+en,s An,$ni$ M&ri##$ an+ R$+$#%$
M&ri##$, ,he %$r3er +ischarge+ ,he #a,,er %r$3 his *$si,i$n as 3anager $% Ins&#ar B&i#+ers, Inc.
an+ ass&3e+ c$n,r$# $% ,he c$3*an). Pe,i,i$ners %$&n+ ,he3se#ves in ,he 3i++#e $% ,he
cr$ssJre an+ were ,$#+ ,$ ,e3*$rari#) s,$* w$r<ing. La,er, $r $n 6&#) !-, 199, *riva,e
res*$n+en, An,$ni$ M&ri##$ +is3isse+ *e,i,i$ners an+ re*$r,e+ ,he 3a,,er ,$ ,he 7e*ar,3en,
$% La'$r an+ E3*#$)3en, =7:LE?. Pe,i,i$ners were h$wever 3a+e ,$ c$n,in&e ,heir w$r<,
ren+ering ,he sa3e services, in ,he sa3e *#ace, #$ca#i,) an+ a, ,he sa3e $Ice '&, &n+er a
+iKeren, c$3*an), ,he D&een Ci,) B&i#+ers, Inc., 3anage+ an+ c$n,r$##e+ ') *riva,e
res*$n+en, R$+$#%$ M&ri##$.
:n A&g&s, , 199, *e,i,i$ners J#e+ wi,h ,he NLRC, Regi$na# Ar'i,ra,i$n Branch N$. C, 7ava$
Ci,), a c$3*#ain, %$r i##ega# +is3issa#, n$n5*a)3en, $% wages, 1
,h
3$n,h *a), an+ re,ire3en,
*a) as regar+s *e,i,i$ner A'+$n 7a)s$n. Pe,i,i$ners averre+ ,ha, ,he) were ,er3ina,e+ %r$3
e3*#$)3en, $n 6&#) !-, 199 wi,h$&, *ri$r n$,ice an+ a#s$ in a'sence $% an) va#i+ ca&se. The)
a##ege+ ,ha, ,heir ,er3ina,i$n was an $K5sh$$, $% ,he s&**$se+ *ers$na# ri%, an+
+isagree3en,s 'e,ween *riva,e res*$n+en,s An,$ni$ M&ri##$ an+ R$+$#%$ M&ri##$.
Iss&eL
Whe,her *e,i,i$ners are en,i,#e+ ,$ %&## 'ac< wages an+ se*ara,i$n *a) in acc$r+ance wi,h
Ar,ic#e !"9 $% ,he La'$r C$+e
HEL7
B&s,a3an,e v. NLRC he#+ ,ha, i##ega##) +is3isse+ e3*#$)ees were en,i,#e+ ,$ %&## 'ac< wages
,ha, sh$&#+ n$, 'e +i3inishe+ $r re+&ce+ ') ,he a3$&n, ,he) ha+ earne+ %r$3 an$,her
e3*#$)3en, +&ring ,he *eri$+ $% ,heir i##ega# +is3issa#. Whi#e #i,iga,ing, e3*#$)ees 3&s, s,i##
earn a #iving. 9&r,her3$re, as *ena#,) %$r ,heir i##ega# +is3issa#, ,heir e3*#$)ers 3&s, *a)
,he3 %&## 'ac< wages. This r&#e has 'een &ni%$r3#) a**#ie+ in s&'seA&en, cases.
In ,he *resen, case, *e,i,i$ners were +is3isse+ 'eca&se $% a Pchange $% 3anage3en,.P The)
were n$, given an) *ri$r wri,,en n$,ice, '&, si3*#) ,$#+ ,ha, ,heir services were ,er3ina,e+ $n
,he +a) ,he) s,$**e+ w$r<ing %$r Ins&#ar B&i#+ers, Inc. >n+er ,he circ&3s,ances, ,he CA was
c$rrec, in &*h$#+ing ,he #a'$r ar'i,erSs Jn+ing ,ha, ,he) ha+ 'een i##ega##) +is3isse+.
Having 'een i##ega##) +is3isse+, *e,i,i$ners sh$&#+ 'e awar+e+ 'ac< wages in acc$r+ance
wi,h B&s,a3an,e v. NLRC. The %ac, ,ha, ,he) w$r<e+ %$r a sis,er c$3*an) i33e+ia,e#) a%,er
'eing +is3isse+ %r$3 Ins&#ar B&i#+ers, Inc. sh$&#+ n$, *rec#&+e s&ch awar+.
Page 1!.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
B&s,a3an,e v. NLRC he#+ ,ha, i##ega##) +is3isse+ e3*#$)ees were en,i,#e+ ,$ %&## 'ac< wages
,ha, sh$&#+ n$, 'e +i3inishe+ $r re+&ce+ ') ,he a3$&n, ,he) ha+ earne+ %r$3 an$,her
e3*#$)3en, +&ring ,he *eri$+ $% ,heir i##ega# +is3issa#. Whi#e #i,iga,ing, e3*#$)ees 3&s, s,i##
earn a #iving. 9&r,her3$re, as *ena#,) %$r ,heir i##ega# +is3issa#, ,heir e3*#$)ers 3&s, *a)
,he3 %&## 'ac< wages. This r&#e has 'een &ni%$r3#) a**#ie+ in s&'seA&en, cases.
In ,he *resen, case, *e,i,i$ners were +is3isse+ 'eca&se $% a Pchange $% 3anage3en,.P

The)
were n$, given an) *ri$r wri,,en n$,ice, '&, si3*#) ,$#+ ,ha, ,heir services were ,er3ina,e+ $n
,he +a) ,he) s,$**e+ w$r<ing %$r Ins&#ar B&i#+ers, Inc. >n+er ,he circ&3s,ances, ,he CA was
c$rrec, in &*h$#+ing ,he #a'$r ar'i,erSs Jn+ing ,ha, ,he) ha+ 'een i##ega##) +is3isse+.
Having 'een i##ega##) +is3isse+, *e,i,i$ners sh$&#+ 'e awar+e+ 'ac< wages in acc$r+ance
wi,h B&s,a3an,e v. NLRC. The %ac, ,ha, ,he) w$r<e+ %$r a sis,er c$3*an) i33e+ia,e#) a%,er
'eing +is3isse+ %r$3 Ins&#ar B&i#+ers, Inc. sh$&#+ n$, *rec#&+e s&ch awar+.
Whi#e i, 3a) 'e ,r&e ,ha, *e,i,i$ners c$n,in&e+ ,$ w$r< in ,he sa3e *#ace an+ $Ice as in ,heir
*revi$&s e3*#$)3en,, i, is eA&a##) ,r&e ,ha, ,he) ha+ in %ac, 'een i##ega##) +is3isse+ ') ,heir
*revi$&s e3*#$)er. Th&s, ,he) #$s, ,heir %$r3er w$r< s,a,&s an+ 'eneJ,s in a 3anner vi$#a,ive
$% ,he #aw. Be i, n$,e+ ,ha,, wi,h$&, ,heir c$nsen,, ,heir e3*#$)3en, was change+. The)
'eca3e new e3*#$)ees $% ,he #a,,er Jr3 an+, as s&ch, were +e*rive+ $% seni$ri,) an+ $,her
e3*#$)3en, 'eneJ,s ,he) ha+ when ,he) were s,i## wi,h ,heir %$r3er e3*#$)er.
2. Agaon vs. NLRC, G.R. No. 1.-)93, Nove/er 17, 2""*
9ac,sL
Riviera H$3e I3*r$ve3en,s, Inc. is engage+ in ,he '&siness $% se##ing an+ ins,a##ing
$rna3en,a# an+ c$ns,r&c,i$n 3a,eria#s. I, e3*#$)e+ *e,i,i$ners 8irgi#i$ Aga'$n an+ 6enn)
Aga'$n as g)*s&3 '$ar+ an+ c$rnice ins,a##ers $n 6an&ar) !, 199! &n,i# 9e'r&ar) !, 1999
when ,he) were +is3isse+ %$r a'an+$n3en, $% w$r<. Pe,i,i$ners ,hen J#e+ a c$3*#ain, %$r
i##ega# +is3issa# an+ *a)3en, $% 3$ne) c#ai3s

an+ $n 7ece3'er !1, 1999.
The La'$r Ar'i,erL +ec#are+ ,he +is3issa#s i##ega# an+ $r+ere+ *riva,e res*$n+en, ,$ *a) ,he
3$ne,ar) c#ai3s.
NLRCL reverse+ ,he La'$r Ar'i,er 'eca&se i, %$&n+ ,ha, ,he *e,i,i$ners ha+ a'an+$ne+ ,heir
w$r<, an+ were n$, en,i,#e+ ,$ 'ac<wages an+ se*ara,i$n *a). The $,her 3$ne) c#ai3s
awar+e+ ') ,he La'$r Ar'i,er were a#s$ +enie+ %$r #ac< $% evi+ence.
CAL reverse+ ,he +ecisi$n $% ,he NLRC.
Hence ,his *e,i,i$n.
Iss&eL
Whe,her *e,i,i$ners were i##ega##) +is3isse+.
R&#ingL
Page 1!2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Nega,ive. MT$ +is3iss an e3*#$)ee, ,he #aw reA&ires n$, $n#) ,he eFis,ence $% a E&s, an+ va#i+
ca&se '&, a#s$ enE$ins ,he e3*#$)er ,$ give ,he e3*#$)ee ,he $**$r,&ni,) ,$ 'e hear+ an+ ,$
+e%en+ hi3se#%. Ar,ic#e !1! $% ,he La'$r C$+e en&3era,es ,he E&s, ca&ses %$r ,er3ina,i$n ')
,he e3*#$)erL =a? seri$&s 3isc$n+&c, $r wi##%&# +is$'e+ience ') ,he e3*#$)ee $% ,he #aw%&#
$r+ers $% his e3*#$)er $r ,he #a,,erGs re*resen,a,ive in c$nnec,i$n wi,h ,he e3*#$)eeGs w$r<O
='? gr$ss an+ ha'i,&a# neg#ec, ') ,he e3*#$)ee $% his +&,iesO =c? %ra&+ $r wi##%&# 'reach ') ,he
e3*#$)ee $% ,he ,r&s, re*$se+ in hi3 ') his e3*#$)er $r his +&#) a&,h$ri4e+ re*resen,a,iveO
=+? c$33issi$n $% a cri3e $r $Kense ') ,he e3*#$)ee agains, ,he *ers$n $% his e3*#$)er $r
an) i33e+ia,e 3e3'er $% his %a3i#) $r his +&#) a&,h$ri4e+ re*resen,a,iveO an+ =e? $,her
ca&ses ana#$g$&s ,$ ,he %$reg$ing. MA'an+$n3en, is ,he +e#i'era,e an+ &nE&s,iJe+ re%&sa# $%
an e3*#$)ee ,$ res&3e his e3*#$)3en,. I, is a %$r3 $% neg#ec, $% +&,), hence, a E&s, ca&se %$r
,er3ina,i$n $% e3*#$)3en, ') ,he e3*#$)er. 9$r a va#i+ Jn+ing $% a'an+$n3en,, ,hese ,w$
%ac,$rs sh$&#+ 'e *resen,L =1? ,he %ai#&re ,$ re*$r, %$r w$r< $r a'sence wi,h$&, va#i+ $r
E&s,iJa'#e reas$nO an+ =!? a c#ear in,en,i$n ,$ sever e3*#$)er5e3*#$)ee re#a,i$nshi*, wi,h ,he
sec$n+ as ,he 3$re +e,er3ina,ive %ac,$r which is 3ani%es,e+ ') $ver, ac,s %r$3 which i, 3a)
'e +e+&ce+ ,ha, ,he e3*#$)ees has n$ 3$re in,en,i$n ,$ w$r<. The in,en, ,$ +isc$n,in&e ,he
e3*#$)3en, 3&s, 'e sh$wn ') c#ear *r$$% ,ha, i, was +e#i'era,e an+ &nE&s,iJe+. MIn 9e'r&ar)
1999, *e,i,i$ners were %reA&en,#) a'sen, having s&'c$n,rac,e+ %$r an ins,a##a,i$n w$r< %$r
an$,her c$3*an). S&'c$n,rac,ing %$r an$,her c$3*an) c#ear#) sh$we+ ,he in,en,i$n ,$ sever
,he e3*#$)er5e3*#$)ee re#a,i$nshi* wi,h *riva,e res*$n+en,. This was n$, ,he Jrs, ,i3e ,he)
+i+ ,his. In 6an&ar) 199-, ,he) +i+ n$, re*$r, %$r w$r< 'eca&se ,he) were w$r<ing %$r an$,her
c$3*an). Priva,e res*$n+en, a, ,ha, ,i3e warne+ *e,i,i$ners ,ha, ,he) w$&#+ 'e +is3isse+ i%
,his ha**ene+ again. Pe,i,i$ners +isregar+e+ ,he warning an+ eFhi'i,e+ a c#ear in,en,i$n ,$
sever ,heir e3*#$)er5e3*#$)ee re#a,i$nshi*. The rec$r+ $% an e3*#$)ee is a re#evan,
c$nsi+era,i$n in +e,er3ining ,he *ena#,) ,ha, sh$&#+ 'e 3e,e+ $&, ,$ hi3. MThe #aw i3*$ses
3an) $'#iga,i$ns $n ,he e3*#$)er s&ch as *r$vi+ing E&s, c$3*ensa,i$n ,$ w$r<ers,
$'servance $% ,he *r$ce+&ra# reA&ire3en,s $% n$,ice an+ hearing in ,he ,er3ina,i$n $%
e3*#$)3en,. :n ,he $,her han+, ,he #aw a#s$ rec$gni4es ,he righ, $% ,he e3*#$)er ,$ eF*ec,
%r$3 i,s w$r<ers n$, $n#) g$$+ *er%$r3ance, a+eA&a,e w$r< an+ +i#igence, '&, a#s$ g$$+
c$n+&c, an+ #$)a#,). The e3*#$)er 3a) n$, 'e c$3*e##e+ ,$ c$n,in&e ,$ e3*#$) s&ch *ers$ns
wh$se c$n,in&ance in ,he service wi## *a,en,#) 'e ini3ica# ,$ his in,eres,s. MA%,er es,a'#ishing
,ha, ,he ,er3ina,i$ns were %$r a E&s, an+ va#i+ ca&se, we n$w +e,er3ine i% ,he *r$ce+&res %$r
+is3issa# were $'serve+. MThe *r$ce+&re %$r ,er3ina,ing an e3*#$)ee is %$&n+ in B$$< 8I,
R&#e I, Sec,i$n !=+? $% ,he "mnibus Rules (mplementing t$e Labor CodeL
Standards of due proess< re;uirements of notie. R In a## cases $% ,er3ina,i$n $%
e3*#$)3en,, ,he %$##$wing s,an+ar+s $% +&e *r$cess sha## 'e s&'s,an,ia##) $'serve+L
I. 9$r ,er3ina,i$n $% e3*#$)3en, 'ase+ $n E&s, ca&ses as +eJne+ in Ar,ic#e !1! $% ,he C$+eL
=a? A wri,,en n$,ice serve+ $n ,he e3*#$)ee s*eci%)ing ,he gr$&n+ $r gr$&n+s %$r ,er3ina,i$n,
an+ giving ,$ sai+ e3*#$)ee reas$na'#e $**$r,&ni,) wi,hin which ,$ eF*#ain his si+eO
='? A hearing $r c$n%erence +&ring which ,he e3*#$)ee c$ncerne+, wi,h ,he assis,ance $%
c$&nse# i% ,he e3*#$)ee s$ +esires, is given $**$r,&ni,) ,$ res*$n+ ,$ ,he charge, *resen, his
evi+ence $r re'&, ,he evi+ence *resen,e+ agains, hi3O an+
=c? A wri,,en n$,ice $% ,er3ina,i$n serve+ $n ,he e3*#$)ee in+ica,ing ,ha, &*$n +&e
c$nsi+era,i$n $% a## ,he circ&3s,ances, gr$&n+s have 'een es,a'#ishe+ ,$ E&s,i%) his
,er3ina,i$n.
In case $% ,er3ina,i$n, ,he %$reg$ing n$,ices sha## 'e serve+ $n ,he e3*#$)eeGs #as, <n$wn
a++ress.
M7is3issa#s 'ase+ $n E&s, ca&ses c$n,e3*#a,e ac,s $r $3issi$ns a,,ri'&,a'#e ,$ ,he e3*#$)ee
whi#e +is3issa#s 'ase+ $n a&,h$ri4e+ ca&ses inv$#ve gr$&n+s &n+er ,he La'$r C$+e which
a##$w ,he e3*#$)er ,$ ,er3ina,e e3*#$)ees. A ,er3ina,i$n %$r an a&,h$ri4e+ ca&se reA&ires
*a)3en, $% se*ara,i$n *a). When ,he ,er3ina,i$n $% e3*#$)3en, is +ec#are+ i##ega#,
Page 1!-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
reins,a,e3en, an+ %&## 'ac<wages are 3an+a,e+ &n+er Ar,ic#e !"9. I% reins,a,e3en, is n$
#$nger *$ssi'#e where ,he +is3issa# was &nE&s,, se*ara,i$n *a) 3a) 'e gran,e+. MPr$ce+&ra##),
=1? i% ,he +is3issa# is 'ase+ $n a E&s, ca&se &n+er Ar,ic#e !1!, ,he e3*#$)er 3&s, give ,he
e3*#$)ee ,w$ wri,,en n$,ices an+ a hearing $r $**$r,&ni,) ,$ 'e hear+ i% reA&es,e+ ') ,he
e3*#$)ee 'e%$re ,er3ina,ing ,he e3*#$)3en,L a n$,ice s*eci%)ing ,he gr$&n+s %$r which
+is3issa# is s$&gh, a hearing $r an $**$r,&ni,) ,$ 'e hear+ an+ a%,er hearing $r $**$r,&ni,) ,$
'e hear+, a n$,ice $% ,he +ecisi$n ,$ +is3issO an+ =!? i% ,he +is3issa# is 'ase+ $n a&,h$ri4e+
ca&ses &n+er Ar,ic#es !1 an+ !1., ,he e3*#$)er 3&s, give ,he e3*#$)ee an+ ,he 7e*ar,3en,
$% La'$r an+ E3*#$)3en, wri,,en n$,ices ( +a)s *ri$r ,$ ,he eKec,ivi,) $% his se*ara,i$n.
M9r$3 ,he %$reg$ing r&#es %$&r *$ssi'#e si,&a,i$ns 3a) 'e +erive+L =1? ,he +is3issa# is %$r a E&s,
ca&se &n+er Ar,ic#e !1! $% ,he La'$r C$+e, %$r an a&,h$ri4e+ ca&se &n+er Ar,ic#e !1, $r %$r
hea#,h reas$ns &n+er Ar,ic#e !1., an+ +&e *r$cess was $'serve+O =!? ,he +is3issa# is wi,h$&,
E&s, $r a&,h$ri4e+ ca&se '&, +&e *r$cess was $'serve+O =? ,he +is3issa# is wi,h$&, E&s, $r
a&,h$ri4e+ ca&se an+ ,here was n$ +&e *r$cessO an+ =.? ,he +is3issa# is %$r E&s, $r a&,h$ri4e+
ca&se '&, +&e *r$cess was n$, $'serve+. MIn ,he Jrs, si,&a,i$n, ,he +is3issa# is &n+$&',e+#)
va#i+ an+ ,he e3*#$)er wi## n$, s&Ker an) #ia'i#i,). MIn ,he sec$n+ an+ ,hir+ si,&a,i$ns where
,he +is3issa#s are i##ega#, Ar,ic#e !"9 3an+a,es ,ha, ,he e3*#$)ee is en,i,#e+ ,$ reins,a,e3en,
wi,h$&, #$ss $% seni$ri,) righ,s an+ $,her *rivi#eges an+ %&## 'ac<wages, inc#&sive $%
a##$wances, an+ $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+ %r$3 ,he ,i3e ,he
c$3*ensa,i$n was n$, *ai+ &* ,$ ,he ,i3e $% ac,&a# reins,a,e3en,. MIn ,he %$&r,h si,&a,i$n, ,he
+is3issa# sh$&#+ 'e &*he#+. Whi#e ,he *r$ce+&ra# inJr3i,) cann$, 'e c&re+, i, sh$&#+ n$,
inva#i+a,e ,he +is3issa#. H$wever, ,he e3*#$)er sh$&#+ 'e he#+ liable for non-ompliane .it$
t$e proedural re;uirements of due proess. MThe *resen, case sA&are#) %a##s &n+er ,he %$&r,h
si,&a,i$n. The +is3issa# sh$&#+ 'e &*he#+ 'eca&se i, was es,a'#ishe+ ,ha, ,he *e,i,i$ners
a'an+$ne+ ,heir E$'s ,$ w$r< %$r an$,her c$3*an). Priva,e res*$n+en,, h$wever, +i+ n$,
%$##$w ,he n$,ice reA&ire3en,s an+ ins,ea+ arg&e+ ,ha, sen+ing n$,ices ,$ ,he #as, <n$wn
a++resses w$&#+ have 'een &se#ess 'eca&se ,he) +i+ n$, resi+e ,here an)3$re.
>n%$r,&na,e#) %$r ,he *riva,e res*$n+en,, ,his is n$, a va#i+ eFc&se 'eca&se ,he #aw 3an+a,es
,he ,win n$,ice reA&ire3en,s ,$ ,he e3*#$)eeGs #as, <n$wn a++ress. Th&s, i, sh$&#+ 'e he#+
liable for non-ompliane .it$ t$e proedural re;uirements of due proess. MT$ 'e s&re, ,he
7&e Pr$cess C#a&se in Ar,ic#e III, Sec,i$n 1 $% ,he C$ns,i,&,i$n e3'$+ies a s)s,e3 $% righ,s
'ase+ $n 3$ra# *rinci*#es s$ +ee*#) i3'e++e+ in ,he ,ra+i,i$ns an+ %ee#ings $% $&r *e$*#e as
,$ 'e +ee3e+ %&n+a3en,a# ,$ a civi#i4e+ s$cie,) as c$nceive+ ') $&r en,ire his,$r). 7&e
*r$cess is ,ha, which c$3*$r,s wi,h ,he +ee*es, n$,i$ns $% wha, is %air an+ righ, an+ E&s,. I, is
a c$ns,i,&,i$na# res,rain, $n ,he #egis#a,ive as we## as $n ,he eFec&,ive an+ E&+icia# *$wers $%
,he g$vern3en, *r$vi+e+ ') ,he Bi## $% Righ,s. M7&e *r$cess &n+er ,he La'$r C$+e, #i<e
Constitutional due proess, has ,w$ as*ec,sL s&'s,an,ive, i.e., ,he va#i+ an+ a&,h$ri4e+ ca&ses
$% e3*#$)3en, ,er3ina,i$n &n+er ,he La'$r C$+eO an+ *r$ce+&ra#, i.e., ,he 3anner $%
+is3issa#. Pr$ce+&ra# +&e *r$cess reA&ire3en,s %$r +is3issa# are %$&n+ in ,he I3*#e3en,ing
R&#es $% P.7. ..!, as a3en+e+, $,herwise <n$wn as ,he La'$r C$+e $% ,he Phi#i**ines in B$$<
8I, R&#e I, Sec. !, as a3en+e+ ') 7e*ar,3en, :r+er N$s. 9 an+ 1(. Breaches $% ,hese due
proess reA&ire3en,s vi$#a,e ,he La'$r C$+e. There%$re statutor& due proess sh$&#+ 'e
+iKeren,ia,e+ %r$3 %ai#&re ,$ c$3*#) wi,h onstitutional due proess. Constitutional due
proess *r$,ec,s ,he in+ivi+&a# %r$3 ,he g$vern3en, an+ ass&res hi3 $% his righ,s in cri3ina#,
civi# $r a+3inis,ra,ive *r$cee+ingsO whi#e statutor& due proess %$&n+ in ,he La'$r C$+e an+
I3*#e3en,ing R&#es *r$,ec,s e3*#$)ees %r$3 'eing &nE&s,#) ,er3ina,e+ wi,h$&, E&s, ca&se
a%,er n$,ice an+ hearing. MThe e3*#$)er sh$&#+ n$, 'e c$3*e##e+ ,$ c$n,in&e e3*#$)ing a
*ers$n wh$ is a+3i,,e+#) g&i#,) $% 3is%easance $r 3a#%easance an+ wh$se c$n,in&e+
e3*#$)3en, is *a,en,#) ini3ica# ,$ ,he e3*#$)er. The #aw *r$,ec,ing ,he righ,s $% ,he #a'$rer
a&,h$ri4es nei,her $**ressi$n n$r se#%5+es,r&c,i$n $% ,he e3*#$)er. MI, 3&s, 'e s,resse+ ,ha, in
,he *resen, case, ,he *e,i,i$ners c$33i,,e+ a grave $Kense, i.e., a'an+$n3en,, which, i% ,he
reA&ire3en,s $% +&e *r$cess were c$3*#ie+ wi,h, w$&#+ &n+$&',e+#) res&#, in a va#i+
+is3issa#. MAn e3*#$)ee wh$ is c#ear#) g&i#,) $% c$n+&c, vi$#a,ive $% Ar,ic#e !1! sh$&#+ n$, 'e
Page 1!"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*r$,ec,e+ ') ,he S$cia# 6&s,ice C#a&se $% ,he C$ns,i,&,i$n. S$cia# E&s,ice, as ,he ,er3 s&gges,s,
sh$&#+ 'e &se+ $n#) ,$ c$rrec, an inE&s,ice. As ,he e3inen, 6&s,ice 6$se P. La&re# $'serve+,
s$cia# E&s,ice 3&s, 'e %$&n+e+ $n ,he rec$gni,i$n $% ,he necessi,) $% in,er+e*en+ence a3$ng
+iverse &ni,s $% a s$cie,) an+ $% ,he *r$,ec,i$n ,ha, sh$&#+ 'e eA&a##) an+ even#) eF,en+e+ ,$
a## gr$&*s as a c$3'ine+ %$rce in $&r s$cia# an+ ec$n$3ic #i%e, c$nsis,en, wi,h ,he
%&n+a3en,a# an+ *ara3$&n, $'Eec,ive $% ,he s,a,e $% *r$3$,ing ,he hea#,h, c$3%$r,, an+ A&ie,
$% a## *ers$ns, an+ $% 'ringing a'$&, M,he grea,es, g$$+ ,$ ,he grea,es, n&3'er.N
MPriva,e res*$n+en, c#ai3s ,ha, ,he C$&r, $% A**ea#s erre+ in h$#+ing ,ha, i, %ai#e+ ,$ *a)
*e,i,i$nersG h$#i+a) *a), service incen,ive #eave *a) an+ 1
,h
3$n,h *a). MWe are n$,
*ers&a+e+. MWe aIr3 ,he r&#ing $% ,he a**e##a,e c$&r, $n *e,i,i$nersG 3$ne) c#ai3s. Priva,e
res*$n+en, is #ia'#e %$r *e,i,i$nersG h$#i+a) *a), service incen,ive #eave *a) an+ 1
,h
3$n,h
*a) wi,h$&, +e+&c,i$ns. MAs a genera# r&#e, $ne wh$ *#ea+s *a)3en, has ,he '&r+en $%
*r$ving i,. Even where ,he e3*#$)ee 3&s, a##ege n$n5*a)3en,, ,he genera# r&#e is ,ha, ,he
'&r+en res,s $n ,he e3*#$)er ,$ *r$ve *a)3en,, ra,her ,han $n ,he e3*#$)ee ,$ *r$ve n$n5
*a)3en,. The reas$n %$r ,he r&#e is ,ha, ,he *er,inen, *ers$nne# J#es, *a)r$##s, rec$r+s,
re3i,,ances an+ $,her si3i#ar +$c&3en,s R which wi## sh$w ,ha, $ver,i3e, +iKeren,ia#s, service
incen,ive #eave an+ $,her c#ai3s $% w$r<ers have 'een *ai+ R are n$, in ,he *$ssessi$n $% ,he
w$r<er '&, in ,he c&s,$+) an+ a's$#&,e c$n,r$# $% ,he e3*#$)er. MIn ,he case a, 'ar, i% *riva,e
res*$n+en, in+ee+ *ai+ *e,i,i$nersG h$#i+a) *a) an+ service incen,ive #eave *a), i, c$&#+ have
easi#) *resen,e+ +$c&3en,ar) *r$$%s $% s&ch 3$ne,ar) 'eneJ,s ,$ +is*r$ve ,he c#ai3s $% ,he
*e,i,i$ners. B&, i, +i+ n$,, eFce*, wi,h res*ec, ,$ ,he 1
,h
3$n,h *a) wherein i, *resen,e+
cash v$&chers sh$wing *a)3en,s $% ,he 'eneJ, in ,he )ears +is*&,e+. A##ega,i$ns ') *riva,e
res*$n+en, ,ha, i, +$es n$, $*era,e +&ring h$#i+a)s an+ ,ha, i, a##$ws i,s e3*#$)ees 1( +a)s
#eave wi,h *a), $,her ,han 'eing se#%5serving, +$ n$, c$ns,i,&,e *r$$% $% *a)3en,.
C$nseA&en,#), i, %ai#e+ ,$ +ischarge ,he onus probandi ,here') 3a<ing i, #ia'#e %$r s&ch c#ai3s
,$ ,he *e,i,i$ners.
MAnen, ,he +e+&c,i$n $% SSS #$an an+ ,he va#&e $% ,he sh$es %r$3 *e,i,i$ner 8irgi#i$ Aga'$nGs
1
,h
3$n,h *a), we Jn+ ,he sa3e ,$ 'e &na&,h$ri4e+. The evi+en, in,en,i$n $% Presi+en,ia#
7ecree N$. 121 is ,$ gran, an additional inome in ,he %$r3 $% ,he 1
,h
3$n,h *a) ,$
e3*#$)ees n$, a#rea+) receiving ,he sa3e s$ as Mto furt$er protet t$e level of real .ages
from t$e ravages of .orld-.ide in=ation.N C#ear#), as a++i,i$na# inc$3e, ,he 1
,h
3$n,h *a) is
inc#&+e+ in ,he +eJni,i$n $% wage &n+er Ar,ic#e 9"=%? $% ,he La'$r C$+e, ,$ wi,L
=%? MWageN *ai+ ,$ an) e3*#$)ee sha## 3ean ,he re3&nera,i$n $r earnings,
h$wever +esigna,e+, ca*a'#e $% 'eing eF*resse+ in ,er3s $% 3$ne) whe,her JFe+ $r
ascer,aine+ $n a ,i3e, ,as<, *iece , $r c$33issi$n 'asis, $r $,her 3e,h$+ $% ca#c&#a,ing ,he
sa3e, which is *a)a'#e ') an e3*#$)er ,$ an e3*#$)ee &n+er a wri,,en $r &nwri,,en c$n,rac,
$% e3*#$)3en, %$r w$r< +$ne $r ,$ 'e +$ne, $r %$r services ren+ere+ $r ,$ 'e ren+ere+ an+
inc#&+es ,he %air an+ reas$na'#e va#&e, as +e,er3ine+ ') ,he Secre,ar) $% La'$r, $% '$ar+,
#$+ging, $r $,her %aci#i,ies c&s,$3ari#) %&rnishe+ ') ,he e3*#$)er ,$ ,he e3*#$)eeUN
%r$3 which an e3*#$)er is *r$hi'i,e+ &n+er Ar,ic#e 11 $% ,he sa3e C$+e %r$3 3a<ing an)
+e+&c,i$ns wi,h$&, ,he e3*#$)eeGs <n$w#e+ge an+ c$nsen,. In ,he ins,an, case, *riva,e
res*$n+en, %ai#e+ ,$ sh$w ,ha, ,he +e+&c,i$n $% ,he SSS #$an an+ ,he va#&e $% ,he sh$es %r$3
*e,i,i$ner 8irgi#i$ Aga'$nGs 1
,h
3$n,h *a) was a&,h$ri4e+ ') ,he #a,,er. The #ac< $% a&,h$ri,)
,$ +e+&c, is %&r,her '$#s,ere+ ') ,he %ac, ,ha, *e,i,i$ner 8irgi#i$ Aga'$n inc#&+e+ ,he sa3e as
$ne $% his 3$ne) c#ai3s agains, *riva,e res*$n+en,. MThe C$&r, $% A**ea#s *r$*er#)
reins,a,e+ ,he 3$ne,ar) c#ai3s awar+e+ ') ,he La'$r Ar'i,er $r+ering ,he *riva,e res*$n+en,
,$ *a) each $% ,he *e,i,i$ners h$#i+a) *a) %$r %$&r reg&#ar h$#i+a)s %r$3 199- ,$ 1991, in ,he
a3$&n, $% P-,2!(.((, service incen,ive #eave *a) %$r ,he sa3e *eri$+ in ,he a3$&n, $%
P,!22.(( an+ ,he 'a#ance $% 8irgi#i$ Aga'$nGs ,hir,een,h 3$n,h *a) %$r 1991 in ,he a3$&n, $%
P!,12(.((.
Page 1!1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
3. 2a:a 6oo& 3rocessing vs. 3aco(, G.R. No. 1.137-, March 2-, 2"".
9ac,sL
Res*$n+en,s 7arwin Pac$,, R$'er, Par$hin$g, 7avi+ Bisnar, Mar#$n 7$3ing$, Rh$e# Lescan$
an+ 6$na,han Caga'ca' were ear#ier hire+ ') *e,i,i$ner 6AHA 9$$+s Pr$cessing C$r*$ra,i$n
=6AHA, %$r sh$r,? &n,i# ,he #a,,er ,er3ina,e+ ,heir e3*#$)3en, $n A&g&s, !9, 199" 'eca&se ,he
c$r*$ra,i$n was Min +ire Jnancia# s,rai,sN. I, is n$, +is*&,e+, h$wever, ,ha, ,he ,er3ina,i$n
was eKec,e+ wi,h$&, 6AHA c$3*#)ing wi,h ,he reA&ire3en, &n+er Ar,ic#e !1 $% ,he La'$r C$+e
regar+ing ,he service $% a wri,,en n$,ice &*$n ,he e3*#$)ees an+ ,he 7e*ar,3en, $% La'$r
an+ E3*#$)3en, a, #eas, $ne =1? 3$n,h 'e%$re ,he in,en+e+ +a,e $% ,er3ina,i$n. In ,i3e,
res*$n+en,s se*ara,e#) J#e+ wi,h ,he regi$na# Ar'i,ra,i$n Branch $% ,he Na,i$na# La'$r
Re#a,i$ns C$33issi$n =NLRC? c$3*#ain,s %$r i##ega# +is3issa#, &n+er*a)3en, $% wages an+
n$n*a)3en, $% service incen,ive #eave an+ 1
,h
3$n,h *a) agains, 6AHA an+ i,s HR7 Manager,
R$sana Cas,e#$. A%,er +&e *r$cee+ings, ,he La'$r Ar'i,er ren+ere+ a +ecisi$n +ec#aring ,he
,er3ina,i$n i##ega# an+ $r+ering 6AHA an+ i,s HR7 Manager ,$ reins,a,e res*$n+en,s wi,h %&##
'ac<wages, an+ se*ara,i$n *a) i% reins,a,e3en, is n$, *$ssi'#e. M$re s*eciJca##) ,he +ecisi$n
+is*$si,ive#) rea+sL In ,i3e, res*$n+en,s se*ara,e#) J#e+ wi,h ,he regi$na# Ar'i,ra,i$n Branch
$% ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n =NLRC? c$3*#ain,s %$r i##ega# +is3issa#,
&n+er*a)3en, $% wages an+ n$n*a)3en, $% service incen,ive #eave an+ 1
,h
3$n,h *a)
agains, 6AHA an+ i,s HR7 Manager, R$sana Cas,e#$. A%,er +&e *r$cee+ings, ,he La'$r Ar'i,er
ren+ere+ a +ecisi$n +ec#aring ,he ,er3ina,i$n i##ega# an+ $r+ering 6AHA an+ i,s HR7 Manager
,$ reins,a,e res*$n+en,s wi,h %&## 'ac<wages, an+ se*ara,i$n *a) i% reins,a,e3en, is n$,
*$ssi'#e.
Iss&esL
7$es ,he a'sence $% ,he n$,ice $% hearing in +is3issa# +&e ,$ a&,h$ri4e ca&se a3$&n,s ,$
i##ega# +is3issa#W
Are ,he +is3isse+ e3*#$)ees, 'eca&se $% c$3*an)Gs seri$&s #$sses, en,i,#e+ ,$ se*ara,i$n
*a)W
R&#ingL
A +is3issa# %$r E&s, ca&se &n+er Ar,ic#e !1! i3*#ies ,ha, ,he e3*#$)ee c$ncerne+ has
c$33i,,e+, $r is g&i#,) $%, s$3e vi$#a,i$n agains, ,he e3*#$)er, i.e. ,he e3*#$)ee has
c$33i,,e+ s$3e seri$&s 3isc$n+&c,, is g&i#,) $% s$3e %ra&+ agains, ,he e3*#$)er, $r, as in
Agabon, he has neg#ec,e+ his +&,ies. Th&s, i, can 'e sai+ ,ha, ,he e3*#$)ee hi3se#% ini,ia,e+
,he +is3issa# *r$cess. :n an$,her 'rea,h, a +is3issa# %$r an a&,h$ri4e+ ca&se &n+er Ar,ic#e
!1 +$es n$, necessari#) i3*#) +e#inA&enc) $r c&#*a'i#i,) $n ,he *ar, $% ,he e3*#$)ee.
Ins,ea+, ,he +is3issa# *r$cess is ini,ia,e+ ') ,he e3*#$)erGs eFercise $% his 3anage3en,
*rer$ga,ive, i.e. when ,he e3*#$)er $*,s ,$ ins,a## #a'$r saving +evices, when he +eci+es ,$
cease '&siness $*era,i$ns $r when, as in ,his case, he &n+er,a<es ,$ i3*#e3en, a
re,rench3en, *r$gra3. The c#ear5c&, +is,inc,i$n 'e,ween a +is3issa# %$r E&s, ca&se &n+er
Ar,ic#e !1! an+ a +is3issa# %$r a&,h$ri4e+ ca&se &n+er Ar,ic#e !1 is %&r,her rein%$rce+ ') ,he
%ac, ,ha, in ,he Jrs,, *a)3en, $% se*ara,i$n *a), as a r&#e, is n$, reA&ire+, whi#e in ,he sec$n+,
,he #aw reA&ires *a)3en, $% se*ara,i$n *a). 9$r ,hese reas$ns, ,here $&gh, ,$ 'e a +iKerence
in ,rea,3en, when ,he gr$&n+ %$r +is3issa# is $ne $% ,he E&s, ca&ses &n+er Ar,ic#e !1!, an+
when 'ase+ $n $ne $% ,he a&,h$ri4e+ ca&ses &n+er Ar,ic#e !1. Acc$r+ing#), i, is wise ,$ h$#+
,ha,L =1? i% ,he +is3issa# is 'ase+ $n a E&s, ca&se &n+er Ar,ic#e !1! '&, ,he e3*#$)er %ai#e+ ,$
Page 1!9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c$3*#) wi,h ,he n$,ice reA&ire3en,, ,he sanc,i$n ,$ 'e i3*$se+ &*$n hi3 sh$&#+ 'e
tempered 'eca&se ,he +is3issa# *r$cess was, in eKec,, ini,ia,e+ ') an ac, i3*&,a'#e ,$ ,he
e3*#$)eeO an+ =!? i% ,he +is3issa# is 'ase+ $n an a&,h$ri4e+ ca&se &n+er Ar,ic#e !1 '&, ,he
e3*#$)er %ai#e+ ,$ c$3*#) wi,h ,he n$,ice reA&ire3en,, ,he sanc,i$n sh$&#+ 'e sti#er 'eca&se
,he +is3issa# *r$cess was ini,ia,e+ ') ,he e3*#$)erGs eFercise $% his 3anage3en, *rer$ga,ive.
I, is, ,here%$re, es,a'#ishe+ ,ha, ,here was gr$&n+ %$r res*$n+en,sG +is3issa#, i.e.,
re,rench3en,, which is $ne $% ,he a&,h$ri4e+ ca&ses en&3era,e+ &n+er Ar,ic#e !1 $% ,he
La'$r C$+e. Li<ewise, i, is es,a'#ishe+ ,ha, 6AHA %ai#e+ ,$ c$3*#) wi,h ,he n$,ice reA&ire3en,
&n+er ,he sa3e Ar,ic#e. C$nsi+ering ,he %ac,&a# circ&3s,ances in ,he ins,an, case an+ ,he
a'$ve ra,i$cina,i$n, we, ,here%$re, +ee3 i, *r$*er ,$ JF ,he in+e3ni,) a, P2(,(((.((. We
#i<ewise Jn+ ,he C$&r, $% A**ea#s ,$ have 'een in err$r when i, $r+ere+ 6AHA ,$ *a)
res*$n+en,s se*ara,i$n *a) eA&iva#en, ,$ $ne =1? 3$n,h sa#ar) %$r ever) )ear $% service. This
is 'eca&se in Rea$s Corporation vs. NLRC we 3a+e ,he %$##$wing +ec#ara,i$nL MThe r&#e,
,here%$re, is ,ha, in a## cases $% '&siness c#$s&re $r cessa,i$n $% $*era,i$n $r &n+er,a<ing $%
,he e3*#$)er, ,he aKec,e+ e3*#$)ee is en,i,#e+ ,$ se*ara,i$n *a). This is c$nsis,en, wi,h ,he
s,a,e *$#ic) $% ,rea,ing #a'$r as a *ri3ar) s$cia# ec$n$3ic %$rce, aK$r+ing %&## *r$,ec,i$n ,$ i,s
righ,s as we## as i,s we#%are. The eFce*,i$n is when ,he c#$s&re $% '&siness $r cessa,i$n $%
$*era,i$ns is +&e ,$ seri$&s '&siness #$sses $r Jnancia# reversesO +&#) *r$ve+, in which case,
,he righ, $% aKec,e+ e3*#$)ees ,$ se*ara,i$n *a) is #$s, %$r $'vi$&s reas$ns. FFFN.
*. Mauricio v. NLRC, G.R. No. 1)*)3., Nove/er 17, 2"".
9ac,sL
1. Pe,i,i$ner Ma&rici$, s,ar,e+ w$r<ing as an A+3inis,ra,ive Assis,an, in ,he Lega# 7e*ar,3en,
$% ,he Mani#a Ban<ing C$r*$ra,i$n $n 6&#) 1, 1999 as a *r$'a,i$nar) e3*#$)ee.

!. As a *re5e3*#$)3en, reA&ire3en,, ,he 'an< +irec,e+ ,he s&'3issi$n ') *e,i,i$ner $%,
a3$ng $,her ,hings, a 1F1 I7 *ic,&re, ! F ! I7 *ic,&re, ,w$ re%erence #e,,ers, an+ learane
from t$e emplo&ee>s previous emplo&ment.

. Pe,i,i$ner %ai#e+ ,$ s&'3i, ,he reA&ire+ +$c&3en,s. The 'an< gave her &* ,$ 7ece3'er 12,
1999 ,$ c$3*#), an+ a+vise+ her ,ha, ,he *r$cessing $% her reg&#ari4a,i$n as e3*#$)ee w$&#+
'e he#+ in a'e)ance.
.. 7es*i,e ,he +ea+#ine given her, *e,i,i$ner s,i## %ai#e+ ,$ c$3*#) wi,h ,he reA&ire3en,s,
+rawing ,he 'an< ,$ sen+ her a Me3$ran+&3 giving her &n,i# 7ece3'er !9, 1999 ,$ s&'3i,
,he reA&ire3en,s, an+ in%$r3ing ,ha, her %ai#&re ,$ +$ s$ w$&#+ ca&se ,he ,er3ina,i$n $% her
e3*#$)3en, eKec,ive 7ece3'er !9, 1999.

2. Pe,i,i$ner, ') #e,,er $% 7ece3'er !1, 1999, in%$r3e+ ,he 'an< ,ha, she c$&#+ n$, sec&re a
c#earance %r$3 her *revi$&s e3*#$)er, ,he Mani#a Ban<ers Li%e Ins&rance C$r*$ra,i$n, a sis,er
c$3*an) $% ,he 'an<, as she ha+ a *en+ing case wi,h i,. She ,h&s reA&es,e+ ,ha, an) ac,i$n
re#a,ive ,$ her e3*#$)3en, 'e he#+ in a'e)ance as she was s,i## %$##$wing &* ,he ear#)
res$#&,i$n $% ,he case.
-. B) re*#) 3e3$ran+&3, ,he 'an< +enie+ *e,i,i$nerSs reA&es, $n ,he gr$&n+ ,ha, ,he
s&'3issi$n $% ,he *re5e3*#$)3en, reA&ire3en,s, $ne $% which is a c#earance %r$3 ,he
*revi$&s e3*#$)er i% $ne is *revi$&s#) e3*#$)e+, is a s,an+ing *$#ic) $% Mani#a'an< a**#ica'#e
es*ecia##) ,$ 'an< $Icers. The 'an< %&r,her reas$ne+ ,ha,, ,$ a##$w an eFe3*,i$n ,$ ,he r&#e
Page 1(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,ha, ,he sa3e sh$&#+ 'e s&'3i,,e+ *ri$r ,$ ,he eF*ira,i$n $% ,he -53$n,h *r$'a,i$nar)
e3*#$)3en, wi## crea,e a *rece+en, which wi## *reE&+ice an es,a'#ishe+ hiring *$#ic), n$, ,$
3en,i$n ,he #ega# i3*#ica,i$n $% waiver $n ,he *ar, $% ,he 'an< ,$ %&r,her reA&ire s&'3issi$n $%
,he c#earance a%,er ,he #a*se $% ,he *r$'a,i$nar) e3*#$)3en,. H$wever, ,he 'an< was s,i##
$*en in ,he even, ,ha, *e,i,i$ner wi## sec&re ,he reA&ire+ c#earance %$r3 =sic? Mani#a Ban<ers
Li%e an+ w$&#+ c$nsi+er her %&,&re e3*#$)3en, wi,h Mani#a'an<.

". Pe,i,i$ner J#e+ $n 6an&ar) !1, !((( a c$3*#ain, %$r i##ega# +is3issa#, &n*ai+ sa#ar), an+
3$ra# an+ eFe3*#ar) +a3ages agains, ,he 'an<.
Iss&eL
WBN Ma&rici$Gs *r$'a,i$nar) e3*#$)3en, was va#i+#) ,er3ina,e+ ') Mani#a Ban<ing
C$r*$ra,i$n
R&#ingL
@es, Ma&rici$Gs *r$'a,i$nar) e3*#$)3en, was va#i+#) ,er3ina,e+ ') ,he 'an<.
In +en)ing M&rici$Gs *e,i,i$n, SC aIr3e+ ,he La'$r Ar'i,erGs +ecisi$n. T$ A&$,eL

MThe s&'3issi$n $% c#earance %r$3 a *revi$&s e3*#$)er is a reas$na'#e reA&ire3en, ,$ A&a#i%)
as a reg&#ar e3*#$)ee &*$n ,he eF*ira,i$n $% ,he siF 3$n,hs *r$'a,i$nar) e3*#$)3en,. This
reas$na'#e reg&#a,i$n is 3an+a,$r) in ,he sense ,ha, i, s*ea<s $% ,he e3*#$)eeSs charac,er
'e%$re he $r she 'ec$3es a reg&#ar e3*#$)ee. 9$r s&re, n$ e3*#$)er in his righ, 3in+ w$&#+
engage ,he reg&#ar service $% an e3*#$)ee &n#ess he is cer,ain $% ,he 3$ra# charac,er $% a
*r$'a,i$nar) e3*#$)ee a**#)ing as reg&#ar e3*#$)ee. T$ sa) ,ha, ,he reA&ire3en, is a 3ere
%$r3a#i,) is an $versi3*#iJca,i$n $% ,he #$ng s,an+ing *$#ic) in ,he 'an< in+&s,r).N
In ,he case $% San Mig&e# Brewer) Sa#es 9$rce >ni$n vs. :*#e =1"( SCRA !2?, ,he H$n$ra'#e
S&*re3e C$&r, r&#e+ ,ha,L
%2ept as limited b& speial la.s, an emplo&er is free to regulate aording to $is o.n
disretion and 'udgment, all aspets of emplo&ment, inluding $iring.?
The *re5e3*#$)3en, reA&ire3en,s $% res*$n+en, 'an< which was 3a+e <n$wn ,$ c$3*#ainan,
&*$n ,he ince*,i$n $% her e3*#$)3en, were n$, sh$wn ,$ 'e &nreas$na'#e s$ as ,$ ren+er
ineKec,&a# c$3*#ainan,Ss +enia# as reg&#ar e3*#$)ee.

In %ac,, c$3*#ainan, was given a siF 3$n,h *eri$+ ,$ *r$+&ce ,he c#earance reA&ire3en, an+
as ear#) as N$ve3'er !-, 1999, c$3*#ainan, was +irec,e+ ,$ s&'3i, ,he +$c&3en,s reA&ire+
%$r reg&#ari4a,i$n '&, she +i##)5+a##ie+. I, was $n#) $n 7ece3'er !1, 1999 $r a +a) 'e%$re ,he
+ea+#ine ,ha, c$3*#ainan, wr$,e her *revi$&s e3*#$)er a'$&, ,he iss&ance $% ,he c#earance
reA&ire3en, '&, c$nsi+ering ,ha, c$3*#ainan, has a *en+ing A&es,i$na'#) *e,,) cash
#iA&i+a,i$n *r$'#e3 &*$n a&+i,, ,he c#earance cann$, 'e iss&e+ 'e%$re ,he eF*ira,i$n $% ,he siF
3$n,hs *r$'a,i$nar) *eri$+.

The %ac, ,ha, c$3*#ainan,Ss *revi$&s e3*#$)er cann$, iss&e a c#earance 'eca&se $% *en+ing
A&es,i$na'#e ,ransac,i$n in which c$3*#ainan, is inv$#ve+, it is .it$in t$e provine of
respondents to den& t$e regularization of omplainant.

Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
.. !n&us(rial 9i/er Cor%. vs. Aaon, G.R. No. 1)*.1-, 2anur$ 2., 2"") an& March
2-, 2""7
3ats<
In+&s,ria# P#)w$$+ Gr$&* C$r*$ra,i$n =IPGC? is ,he $wner $% a *#)w$$+ *#an, #$ca,e+ a,
Ag&san, PeA&eb$, B&,&an Ci,), #ease+ ,$ In+&s,ria# Ti3'er C$r*$ra,i$n =ITC? $n A&g&s, (,
1912 %$r a *eri$+ $% Jve )ears. Therea%,er, ITC c$33ence+ $*era,i$n $% ,he *#)w$$+ *#an,
an+ hire+ 1" w$r<ers. :n March 1-, 199(, ITC n$,iJe+ ,he 7e*ar,3en, $% La'$r an+
E3*#$)3en, =7:LE? an+ i,s w$r<ers ,ha, eKec,ive March 19, 199( i, wi## &n+erg$ a Mn$ *#an,
$*era,i$nN +&e ,$ #ac< $% raw 3a,eria#s an+ wi## res&3e $n#) a%,er i, can sec&re #$gs %$r 3i##ing.
Meanwhi#e, IPGC n$,iJe+ ITC $% ,he eF*ira,i$n $% ,he #ease c$n,rac, in A&g&s, 199( an+ i,s
in,en,i$n n$, ,$ renew ,he sa3e. :n 6&ne !-, 199(, ITC n$,iJe+ ,he 7:LE an+ i,s w$r<ers $%
,he *#an,Gs sh&,+$wn +&e ,$ ,he n$n5renewa# $% an,i5*$##&,i$n *er3i, ,ha, eF*ire+ in A*ri#
199(. This %ac, an+ ,he a##ege+ #ac< $% #$gs %$r 3i##ing c$ns,raine+ ITC ,$ #a) $K a## i,s w$r<ers
&n,i# %&r,her n$,ice. This was %$##$we+ ') a Jna# n$,ice $% c#$s&re $r cessa,i$n $% '&siness
$*era,i$ns $n A&g&s, 1", 199( wi,h an a+vice %$r a## ,he w$r<ers ,$ c$##ec, ,he 'eneJ,s +&e
,he3 &n+er ,he #aw an+ CBA. :n :c,$'er 12, 199(, IPGC ,$$< $ver ,he *#)w$$+ *#an, a%,er i,
was iss&e+ a W$$+ Pr$cessing P#an, Per3i, N$. WPR51((.5(11"915(.!, which inc#&+e+ ,he
an,i5*$##&,i$n *er3i,, ') ,he 7e*ar,3en, $% Envir$n3en, an+ Na,&ra# Res$&rces =7ENR?
c$inci+en,a##) $n ,he sa3e +a) ,he ITC cease+ $*era,i$n $% ,he *#an,. This *r$3*,e+ 8irgi#i$
A'a'$n, et al. ,$ J#e a c$3*#ain, agains, ITC an+ IPGC %$r i##ega# +is3issa#, &n%air #a'$r
*rac,ice an+ +a3ages. The) a##ege+, a3$ng $,hers, ,ha, ,he cessa,i$n $% ITCGs $*era,i$n was
in,en+e+ ,$ '&s, ,he &ni$n an+ ,ha, '$,h c$r*$ra,i$ns are $ne an+ ,he sa3e en,i,) 'eing
c$n,r$##e+ ') $ne $wner.

(ssue<
Whe,her $r n$, A'a'$n, et al. were i##ega##) +is3isse+ +&e ,$ ,he c#$s&re $% ITCGs '&sinessO an+
whe,her ,he) are en,i,#e+ ,$ se*ara,i$n *a), 'ac<wages, an+ $,her 3$ne,ar) awar+s.

Ruling<
>n+er Ar,ic#e !1 $% ,he La'$r C$+e, ,hree reA&ire3en,s are necessar) %$r a va#i+ cessa,i$n $%
'&siness $*era,i$nsL =a? service $% a wri,,en n$,ice ,$ ,he e3*#$)ees an+ ,$ ,he 7:LE a, #eas,
$ne 3$n,h 'e%$re ,he in,en+e+ +a,e ,here$%O ='? ,he cessa,i$n $% '&siness 3&s, 'e bona -de
in charac,erO an+ =c? *a)3en, ,$ ,he e3*#$)ees $% ,er3ina,i$n *a) a3$&n,ing ,$ $ne 3$n,h
*a) $r a, #eas, $ne5ha#% 3$n,h *a) %$r ever) )ear $% service, whichever is higher. As '$rne $&,
%r$3 ,he rec$r+s, res*$n+en, ITC ac,&a##) &n+erwen, Yn$ *#an, $*era,i$nG since 19 March 199(
+&e ,$ #ac< $% #$g s&**#). This %ac, is a+3i,,e+ ') c$3*#ainan,s =Min&,es $% hearing, !1
:c,$'er 1991?. Since ,hen severa# s&'seA&en, inci+en,s *reven,e+ res*$n+en, ITC ,$ res&3e
i,s '&siness $*era,i$ns e.g. eF*ira,i$n an+ n$n5renewa# $% ,he w$$+ *r$cessing *#an, *er3i,,
an,i5*$##&,i$n *er3i,, an+ ,he #ease c$n,rac, $n ,he *#)w$$+ *#an,.
:it$out t$e ra. materials respondent (*C $as not$ing to produe. Wi,h$&, ,he *er3i,s i,
cann$, #aw%&##) $*era,e ,he *#an,. An+ wi,h$&, ,he c$n,rac, $% #ease res*$n+en, ITC has n$
$*,i$n '&, ,$ cease $*era,i$n an+ ,&rn $ver ,he *#an, ,$ ,he #ess$r. Having es,a'#ishe+ ,ha,
ITCGs c#$s&re $% ,he *#)w$$+ *#an, was +$ne in g$$+ %ai,h an+ ,ha, i, was +&e ,$ ca&ses 'e)$n+
i,s c$n,r$#, ,he c$nc#&si$n is inevi,a'#e ,ha, sai+ c#$s&re is va#i+. C$nseA&en,#), A'a'$n, et al.
c$&#+ n$, have 'een i##ega##) +is3isse+ ,$ 'e en,i,#e+ ,$ %&## 'ac<wages. Th&s, we Jn+ i, n$
#$nger necessar) ,$ +isc&ss ,he iss&e regar+ing ,he c$3*&,a,i$n $% ,heir 'ac<wages.
H$wever, ,he) are en,i,#e+ ,$ se*ara,i$n *a) eA&iva#en, ,$ $ne 3$n,h *a) $r a, #eas, $ne5ha#%
3$n,h *a) %$r ever) )ear $% service, whichever is higher. A#,h$&gh ,he c#$s&re was +$ne in
Page 1!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
g$$+ %ai,h an+ %$r va#i+ reas$ns, The S&*re3e C$&r, Jn+ ,ha, ITC +i+ n$, c$3*#) wi,h ,he
n$,ice reA&ire3en,. Whi#e an e3*#$)er is &n+er n$ $'#iga,i$n ,$ c$n+&c, hearings 'e%$re
eKec,ing ,er3ina,i$n $% e3*#$)3en, +&e ,$ a&,h$ri4e+ ca&se, h$wever, ,he #aw reA&ires ,ha,
i, 3&s, n$,i%) ,he 7:LE an+ i,s e3*#$)ees a, #eas, $ne 3$n,h 'e%$re ,he in,en+e+ +a,e $%
c#$s&re. In ,he case a, 'ar, ITC n$,iJe+ i,s e3*#$)ees an+ ,he 7:LE $% ,he Yn$ *#an, $*era,i$nG
$n March 1-, 199( +&e ,$ #ac< $% raw 3a,eria#s. This was %$##$we+ ') a Ysh&, +$wnG n$,ice
+a,e+ 6&ne !-, 199( +&e ,$ ,he eF*ira,i$n $% ,he an,i5*$##&,i$n *er3i,. H$wever, ,his
sh&,+$wn was $n#) ,e3*$rar) as ITC ass&re+ i,s e3*#$)ees ,ha, ,he) c$&#+ re,&rn ,$ w$r<
$nce ,he renewa# is ac,e+ &*$n ') ,he 7ENR. :n A&g&s, 1", 199(, ,he ITC sen, i,s e3*#$)ees
a Jna# n$,ice $% c#$s&re $r cessa,i$n $% '&siness $*era,i$ns ,$ ,a<e eKec, $n ,he sa3e +a) i,
was re#ease+. We Jn+ ,ha, ,his %a##s sh$r, $% ,he n$,ice reA&ire3en, %$r ,er3ina,i$n $%
e3*#$)3en, +&e ,$ a&,h$ri4e+ ca&se c$nsi+ering ,ha, ,he 7:LE was n$, %&rnishe+ an+ ,he
n$,ice sh$&#+ have 'een %&rnishe+ '$,h ,he e3*#$)ees an+ ,he 7:LE a, #eas, $ne 3$n,h
'e%$re ,he in,en+e+ +a,e $% c#$s&re. In Agabon v. National Labor Relations Commission an+
)a+a 3ood Proessing Corporation v. Paot, ,he C$&r, s&s,aine+ ,he +is3issa#s %$r E&s, ca&se
&n+er Ar,ic#e !1! an+ %$r a&,h$ri4e+ ca&se &n+er Ar,ic#e !1 $% ,he La'$r C$+e, res*ec,ive#),
+es*i,e n$n5c$3*#iance wi,h ,he s,a,&,$r) reA&ire3en, $% n$,ice an+ hearing. The gr$&n+s %$r
,he +is3issa#s in ,h$se cases, na3e#), neg#ec, $% +&,) an+ re,rench3en,, re3aine+ va#i+
'eca&se ,he n$n5c$3*#iance wi,h ,he n$,ice an+ hearing reA&ire3en, in ,he La'$r C$+e +i+
n$, &n+er3ine ,he va#i+i,) $% ,he gr$&n+s %$r ,he +is3issa#s. In+ee+, ,$ inva#i+a,e a +is3issa#
3ere#) 'eca&se $% a *r$ce+&ra# +e%ec, crea,es a's&r+i,) an+ r&ns c$&n,er ,$ *&'#ic in,eres,.
Where ,he +is3issa# is 'ase+ $n an a&,h$ri4e+ ca&se &n+er Ar,ic#e !1 $% ,he La'$r C$+e '&,
,he e3*#$)er %ai#e+ ,$ c$3*#) wi,h ,he n$,ice reA&ire3en,, ,he sanc,i$n sh$&#+ 'e s,iK as ,he
+is3issa# *r$cess was ini,ia,e+ ') ,he e3*#$)erGs eFercise $% his 3anage3en, *rer$ga,ive, as
$**$se+ ,$ a +is3issa# 'ase+ $n a E&s, ca&se &n+er Ar,ic#e !1! wi,h ,he sa3e *r$ce+&ra#
inJr3i,) where ,he sanc,i$n ,$ 'e i3*$se+ &*$n ,he e3*#$)er sh$&#+ 'e ,e3*ere+ as ,he
+is3issa# *r$cess was, in eKec,, ini,ia,e+ ') an ac, i3*&,a'#e ,$ ,he e3*#$)ee.
). #?ui(ale 'an: vs Sa&ac, G.R. No. 1)*772, 2une -, 2"")
9ac,sL
Res*$n+en, Sa+ac was a**$in,e+ 8ice Presi+en, $% ,he Lega# 7e*ar,3en, $% *e,i,i$ner Ban<
eKec,ive 1 A&g&s, 1911, an+ s&'seA&en,#) Genera# C$&nse# ,here$% $n 1 7ece3'er 1911. :n
!- 6&ne 1919, nine #aw)ers $% *e,i,i$ner Ban<Gs Lega# 7e*ar,3en,, in a #e,,er5*e,i,i$n ,$ ,he
Chair3an $% ,he B$ar+ $% 7irec,$rs, acc&se+ res*$n+en, Sa+ac $% a'&sive c$n+&c, an+
*e,i,i$ne+ %$r a change in #ea+ershi* $% ,he +e*ar,3en,. :n ,he gr$&n+ $% #ac< $% c$nJ+ence in
res*$n+en, Sa+ac, &n+er ,he r&#es $% c#ien, an+ #aw)er re#a,i$nshi*, *e,i,i$ner Ban< ins,r&c,e+
res*$n+en, Sa+ac ,$ +e#iver a## 3a,eria#s in his c&s,$+) in a## cases in which ,he #a,,er was
a**earing as i,s c$&nse# $% rec$r+. In reac,i$n ,here,$, res*$n+en, Sa+ac reA&es,e+ %$r a %&##
hearing an+ %$r3a# inves,iga,i$n '&, ,he sa3e re3aine+ &nhee+e+. :n 9 N$ve3'er 1919,
res*$n+en, Sa+ac J#e+ a c$3*#ain, %$r i##ega# +is3issa# wi,h +a3ages agains, *e,i,i$ner Ban<
an+ in+ivi+&a# 3e3'ers $% ,he B$ar+ $% 7irec,$rs ,here$%. A%,er #earning $% ,he J#ing $% ,he
c$3*#ain,, *e,i,i$ner Ban< ,er3ina,e+ ,he services $% res*$n+en, Sa+ac. 9ina##), $n 1( A&g&s,
1919, res*$n+en, Sa+ac was re3$ve+ %r$3 his $Ice an+ $r+ere+ +isen,i,#e+ ,$ an)
c$3*ensa,i$n an+ $,her 'eneJ,s. The iss&es $n ,he eFis,ence $% e3*#$)er5e3*#$)ee
re#a,i$nshi* as we## as ,he #ega#i,) $% ,he +is3issa# were +eci+e+ ') ,he C$&r, in ,he case $%
EA&i,a'#e Ban<ing C$r*$ra,i$n vs. NLRC, G.R. N$. 1(!.-", 6&ne 1, 199", wherein i, was he#+
,ha, ,here was e3*#$)er5e3*#$)ee re#a,i$nshi* 'e,ween *e,i,i$ner Ban< an+ res*$n+en,
Sa+ac an+ ,ha, Sa+acSs +is3issa# was i##ega#, his +is3issa# n$, 'eing gr$&n+e+ $n an) $% ,he
ca&ses s,a,e+ in Ar,ic#e !1! $% ,he La'$r C$+e an+ ,here 'eing +isregar+ $% ,he *r$ce+&ra#
Page 1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
reA&ire3en,s in ,er3ina,ing Sa+acSs e3*#$)3en,. In sai+ case, res*$n+en, Sa+ac was he#+ ,$
'e en,i,#e+ ,$ 'ac<wages %r$3 ,er3ina,i$n $% e3*#$)3en, &n,i# ,&rning siF,) =-(? )ears $% age
=in 1992? an+, ,here&*$n, ,$ re,ire3en, 'eneJ,s in acc$r+ance wi,h #aw. He sha## a#s$ 'e *ai+
an a++i,i$na# a3$&n, $% P2,(((.((. The c$n,r$vers) in ,he *resen, case arises $n ,he
c$3*&,a,i$n $% 'ac<wages wherein res*$n+en, Sa+ac inc#&+e+ ,he genera# sa#ar) increases in
sai+ c$3*&,a,i$n whi#e *e,i,i$ner Ban< insis,s ,ha, ,he genera# sa#ar) increases sh$&#+ n$, 'e
inc#&+e+ in ,he c$3*&,a,i$n $% 'ac<wages '&, ra,her ,he c$3*&,a,i$n sh$&#+ 'e 'ase+ $n ,he
wage ra,e a, ,he ,i3e $% +is3issa#.
Iss&eL
Whe,her $r n$, genera# sa#ar) increases sh$&#+ 'e inc#&+e+ in ,he 'ase Jg&re ,$ 'e &se+ in
,he c$3*&,a,i$n $% 'ac<wages.
R&#ingL
Genera# sa#ar) increases are n$, inc#&+e+ in ,he 'ase Jg&re ,$ 'e &se+ in ,he c$3*&,a,i$n $%
'ac<wages. Ar,ic#e !"9 3an+a,es ,ha, an e3*#$)eeGs %&## 'ac<wages sha## 'e inc#&sive $%
a##$wances an+ $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en,. A sa#ar) increase cann$, 'e
in,er*re,e+ as ei,her an a##$wance $r a 'eneJ,. Sa#ar) increases are n$, a<in ,$ a##$wances $r
'eneJ,s, an+ cann$, 'e c$n%&se+ wi,h ei,her. The ,er3 Pa##$wancesP is s$3e,i3es &se+
s)n$n)3$&s#) wi,h Pe3$#&3en,s,P as in+irec, $r c$n,ingen, re3&nera,i$n, which 3a) $r 3a)
n$, 'e earne+, '&, which is s$3e,i3es in ,he na,&re $% c$3*ensa,i$n, an+ s$3e,i3es in ,he
na,&re $% rei3'&rse3en,. A##$wances an+ 'eneJ,s are gran,e+ ,$ ,he e3*#$)ee a*ar, $r
se*ara,e %r$3, an+ in a++i,i$n ,$ ,he wage $r sa#ar). In c$n,ras,, sa#ar) increases are a3$&n,s
which are a++e+ ,$ ,he e3*#$)eeGs sa#ar) as an incre3en, ,here,$ %$r varie+ reas$ns +ee3e+
a**r$*ria,e ') ,he e3*#$)er. Sa#ar) increases are n$, se*ara,e gran,s ') ,he3se#ves '&, $nce
gran,e+, ,he) are +ee3e+ *ar, $% ,he e3*#$)eeGs sa#ar). T$ eF,en+ ,he c$verage $% an
a##$wance $r a 'eneJ, ,$ inc#&+e sa#ar) increases w$&#+ 'e ,$ s,rain '$,h ,he i3agina,i$n $%
,he C$&r, an+ ,he #ang&age $% #aw. As $'serve+ ') ,he NLRC, P,$ $,herwise give ,he 3eaning
$,her ,han wha, ,he #aw s*ea<s %$r ') i,se#%, wi## $*en ,he T$$+ga,es ,$ vari$&s
in,er*re,a,i$ns.P In+ee+, i% ,he in,en, were ,$ inc#&+e sa#ar) increases as 'asis in ,he
c$3*&,a,i$n $% 'ac<wages, ,he sa3e sh$&#+ have 'een eF*#ici,#) s,a,e+ in ,he sa3e 3anner
,ha, ,he #aw &se+ c#ear an+ &na3'ig&$&s ,er3s in eF*ress#) *r$vi+ing %$r ,he inc#&si$n $%
a##$wances an+ $,her 'eneJ,s. 9&r,her3$re, sa#ar) increases are a 3ere eF*ec,anc). The) are,
') i,s na,&re v$#a,i#e an+ are +e*en+en, $n n&3er$&s varia'#es, inc#&+ing ,he c$3*an)Gs Jsca#
si,&a,i$n an+ even ,he e3*#$)eeGs %&,&re *er%$r3ance $n ,he E$', $r ,he e3*#$)eeGs
c$n,in&e+ s,a) in a *$si,i$n s&'Eec, ,$ 3anage3en, *rer$ga,ive ,$ ,rans%er hi3 ,$ an$,her
*$si,i$n where his services are nee+e+. In sh$r,, ,here is n$ ves,e+ righ, ,$ sa#ar) increases.
Tha, res*$n+en, Sa+ac 3a) have receive+ sa#ar) increases in ,he *as, $n#) *r$ves %ac, $%
recei*, '&, +$es n$, es,a'#ish a +egree $% ass&re+ness ,ha, is inheren, in 'ac<wages. 9r$3 ,he
%$reg$ing, ,he *#ain c$nc#&si$n is ,ha, res*$n+en, Sa+acGs c$3*&,a,i$n $% his %&## 'ac<wages
which inc#&+es his *r$s*ec,ive sa#ar) increases cann$, 'e *er3i,,e+. In a++i,i$n, a c&rs$r)
rea+ing $% ,he +is*$si,ive *$r,i$n $% ,he C$&r,Gs 7ecisi$n $% 1 6&ne 199" in G.R. N$. 1(!.-",
awar+ing 'ac<wages ,$ res*$n+en, Sa+ac, sh$ws ,ha, ,he awar+ $% 'ac<wages ,herein is
&nA&a#iJe+. 6&+icia# *rece+en,s ,e## &s ,ha, an &nA&a#iJe+ awar+ $% 'ac<wages 3eans ,ha, ,he
e3*#$)ee is *ai+ a, ,he wage ra,e a, ,he ,i3e $% his +is3issa#. Th&s, ,he 'ase Jg&re ,$ 'e
&se+ in ,he c$3*&,a,i$n $% 'ac<wages is *egge+ a, ,he wage ra,e a, ,he ,i3e $% ,he
e3*#$)eeGs +is3issa#, inc#&sive $% reg&#ar a##$wances ,ha, ,he e3*#$)ee ha+ 'een receiving
s&ch as ,he e3ergenc) #iving a##$wances an+ ,he 1,h 3$n,h *a) 3an+a,e+ &n+er ,he #aw.
Page 1.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
7. @eirs of Sara Lee vs. Re$, G.R. No. 1*99"13, Augus( 31, 2"")
9ac,sL
The H$&se $% Sara Lee =*e,i,i$ner? is engage+ in ,he +irec, se##ing $% a varie,) $% *r$+&c, #ines
%$r 3en an+ w$3en, inc#&+ing c$s3e,ics, in,i3a,e a**are#s, *er%&3es, rea+) ,$ wear c#$,hes
an+ $,her n$ve#,) i,e3s, ,hr$&gh i,s vari$&s $&,#e,s na,i$nwi+e. In ,he *&rs&i, $% i,s '&siness,
,he *e,i,i$ner engages an+ c$n,rac,s wi,h +ea#ers ,$ se## ,he a%$re3en,i$ne+ 3erchan+ise.
These +ea#ers, <n$wn ei,her as MIn+e*en+en, B&siness ManagersN =IBMs? $r MIn+e*en+en,
Gr$&* S&*ervis$rsN =IGSs?, +e*en+ing $n whe,her ,he) se## in+ivi+&a##) $r ,hr$&gh ,heir $wn
gr$&*, w$&#+ $',ain a, +isc$&n,e+ ra,es ,he 3erchan+ise %r$3 ,he *e,i,i$ner $n cre+i, an+
,hen se## ,he sa3e *r$+&c,s ,$ ,heir $wn c&s,$3ers a, JFe+ *rices a#s$ +e,er3ine+ ') ,he
*e,i,i$ner. C)n,hia Re) =res*$n+en,?, a, ,he ,i3e $% her +is3issa# %r$3 e3*#$)3en,, $r $n 6&ne
!2, 199-, he#+ ,he *$si,i$n $% Cre+i, A+3inis,ra,i$n S&*ervis$r $r CAS a, ,he Caga)an +e :r$
Ci,) 'ranch $% ,he *e,i,i$ner. S$3e,i3e in 6&ne 1992, whi#e res*$n+en, was s,i## w$r<ing in
B&,&an Ci,), she a##ege+#) ins,r&c,e+ ,he Acc$&n,s Receiva'#e C#er< $% ,he Caga)an +e :r$
$&,#e,, a cer,ain Ms. Magi Car$#ine Men+$4a, ,$ change ,he cre+i, ,er3 $% $ne $% ,he IBMs $%
,he *e,i,i$ner, a cer,ain Ms. Maria3 Re)5Pe,i##a, wh$ ha**ens ,$ 'e res*$n+en,Gs sis,er5in5#aw,
%r$3 ,he 2!5+a) #i3i, ,$ an M&na&,h$ri4e+N ,er3 $% -( +a)s. .N As a c$nseA&ence $% ,he
+isc$ver) $% ,he %$reg$ing a##ege+ Man$3a#$&s *rac,iceN $% eF,en+ing ,he cre+i, ,er3s $%
cer,ain IBMs, 3anage3en, &n+er,$$< an a&+i, $% ,he Caga)an +e :r$ Ci,) an+ B&,&an Ci,)
'ranches. :n ,he 'asis $% ,he hearing, ,he a##ege+ v$#&n,ar) a+3issi$ns $% res*$n+en,, an+
,he Jn+ings $% ,he a&+i,$rGs re*$r,, ,he *e,i,i$ner, $n 6&ne !2, 199-, %$r3a##) +is3isse+ ,he
res*$n+en, %$r 'reach $% ,r&s, an+ c$nJ+ence. :n Se*,e3'er !., 199-, as s,a,e+ a'$ve,
res*$n+en, J#e+ her C$3*#ain, %$r i##ega# +is3issa#, 'ac<wages an+ +a3ages, wi,h ,he La'$r
Ar'i,er. :n A*ri# (, 1991, ,he La'$r Ar'i,er ren+ere+ a +ecisi$n in %av$r $% ,he res*$n+en,.
Aggrieve+, ,he *e,i,i$ner a**ea#e+ ,$ ,he NLRC. :n :c,$'er !9, 1991, ,he NLRC ren+ere+ i,s
+ecisi$n +is3issing ,he a**ea#. The *e,i,i$ner a**ea#e+ ,$ ,he CA &n+er R&#e -2. :n A&g&s,
!2, !(((, ,he CA +is3isse+ ,he Pe,i,i$n $n ,he s$#e gr$&n+ ,ha, %ac,&a# iss&es are n$, *r$*er
s&'Eec,s %$r a s*ecia# civi# ac,i$n $% ertiorari.

Iss&eL
Is ,he res*$n+en, +is3isse+ %$r a E&s, ca&seW

R&#ingL
C$n,rar) ,$ ,he Jn+ings $% ,he NLRC an+ ,he CA, ,he C$&r, h$#+s ,ha, res*$n+en, was
+is3isse+ %$r a E&s, ca&se. Law an+ E&ris*r&+ence have #$ng rec$gni4e+ ,he righ, $% e3*#$)ers
,$ +is3iss e3*#$)ees ') reas$n $% #$ss $% ,r&s, an+ c$nJ+ence. M$re s$, in ,he case $%
s&*ervis$rs $r *ers$nne# $cc&*)ing *$si,i$ns $% res*$nsi'i#i,), #$ss $% ,r&s, E&s,iJes
,er3ina,i$n. L$ss $% c$nJ+ence as a E&s, ca&se %$r +is3issa# is *re3ise+ $n ,he %ac, ,ha, an
e3*#$)ee c$ncerne+ h$#+s a *$si,i$n $% ,r&s, an+ c$nJ+ence. This si,&a,i$n a**#ies where a
*ers$n is en,r&s,e+ wi,h c$nJ+ence $n +e#ica,e 3a,,ers, s&ch as ,he c&s,$+), han+#ing, $r
care an+ *r$,ec,i$n $% ,he e3*#$)erGs *r$*er,). B&,, in $r+er ,$ c$ns,i,&,e a E&s, ca&se %$r
+is3issa#, ,he ac, c$3*#aine+ $% 3&s, 'e Mw$r<5re#a,e+,N s&ch ,ha, ,he e3*#$)ee c$ncerne+ is
&nJ, ,$ c$n,in&e w$r<ing %$r ,he e3*#$)er. In ,he *resen, case, ,he res*$n+en, is n$, an
$r+inar) ran<5an+5J#e e3*#$)ee. The na,&re $% her w$r< reA&ires a s&'s,an,ia# a3$&n, $%
,r&s, an+ c$nJ+ence $n ,he *ar, $% ,he e3*#$)er. Being ,he Cre+i, A+3inis,ra,i$n S&*ervis$r
$% ,he Caga)an +e :r$ an+ B&,&an Ci,) 'ranches $% ,he *e,i,i$ner, res*$n+en, $cc&*ie+ a
high#) sensi,ive an+ cri,ica# *$si,i$n an+ 3a) ,h&s 'e +is3isse+ $n ,he gr$&n+ $% #$ss $% ,r&s,
an+ c$nJ+ence. The +&,ies $% ,he res*$n+en, inc#&+e+ ,he s,ric, 3$ni,$ring $% ,he 15 $r 2!5
+a) Mr$##ing +&e +a,eN $% each $% i,s IBMs an+ IGSs, as we## as ,he s&*ervisi$n $% ,he cre+i, an+
Page 12
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c$##ec,i$n $% *a)3en,s an+ $&,s,an+ing acc$&n,s +&e ,$ ,he *e,i,i$ner %r$3 i,s +ea#ers. M$re
i3*$r,an,#), res*$n+en, has a +irec, han+ in ,he *re*ara,i$n an+ c$3*&,a,i$n $% ,he Service
9ees $r sa#es c$33issi$ns accr&ing ,$ each +ea#er. The c$3*&,a,i$n $% ,hese c$33issi$ns
+e*en+s $n whe,her ,he +ea#er c$ncerne+ was a'#e ,$ re3i, ,he sa#es *r$cee+s wi,hin ,he 15
+a) $r 2!5+a) r$##ing +ea+#ine. C#ear#), res*$n+en,Gs *$si,i$n inv$#ves a high +egree $%
res*$nsi'i#i,) reA&iring ,r&s, an+ c$nJ+ence. The *$si,i$n carrie+ wi,h i, ,he +&,) ,$ $'serve
*r$*er c$3*an) *r$ce+&res in ,he %&#J##3en, $% her E$', as i, re#a,es c#$se#) ,$ ,he Jnancia#
in,eres,s $% ,he c$3*an). Res*$n+en,Gs &na&,h$ri4e+ eF,ensi$ns $% ,he cre+i, *eri$+s $% ,he
+ea#ers are *reE&+icia# ,$ ,he in,eres, $% ,he *e,i,i$ner an+ 'ear seri$&s Jnancia# i3*#ica,i$ns.
E3*#$)ers, genera##), are a##$we+ a wi+er #a,i,&+e $% +iscre,i$n in ,er3ina,ing ,he e3*#$)3en,
$% 3anageria# *ers$nne# $r ,h$se $% si3i#ar ran< *er%$r3ing %&nc,i$ns which ') ,heir na,&re
reA&ire ,he e3*#$)erGs ,r&s, an+ c$nJ+ence, ,han in ,he case $% $r+inar) ran<5an+5J#e
e3*#$)ees. There can 'e n$ +$&', c$n,in&ance in ,he sensi,ive J+&ciar) *$si,i$n $% Cre+i,
A+3inis,ra,i$n S&*ervis$r w$&#+ 'e *a,en,#) ini3ica# ,$ ,he in,eres,s $% ,he *e,i,i$ner. I, w$&#+
'e $**ressive an+ &nE&s, ,$ $r+er ,he *e,i,i$ner ,$ ,a<e her 'ac<, %$r ,he #aw, in *r$,ec,ing ,he
righ,s $% ,he e3*#$)ee, a&,h$ri4es nei,her $**ressi$n n$r se#%5+es,r&c,i$n $% ,he e3*#$)er.
-. GalaEi S(eel >or:ers <nion vs. NLRC, G.R. No. 1).7.7, 7c(oer 17, 2""), ci(ing
Nor(h 4avao Mining
9ac,sL
Ga#aFie is a c$r*$ra,i$n engage+ in ,he '&siness $% 3an&%ac,&ring an+ sa#e $% re5'ars an+
s,ee# 'i##e,s which are &se+ *ri3ari#) in ,he c$ns,r&c,i$n $% high5rise '&i#+ings. :n acc$&n, $%
seri$&s '&siness #$sses which $cc&rre+ in 199" &* ,$ 3i+51999 ,$,a#ing ar$&n+
P1!",(((,(((.((, Ga#aFie +eci+e+ ,$ c#$se +$wn i,s '&siness $*era,i$ns. Ga#aFie ,h&s J#e+ $n
6&#) (, 1999 a wri,,en n$,ice wi,h ,he 7:LE in%$r3ing ,he #a,,er $% i,s in,en+e+ c#$s&re an+
,he c$nseA&en, ,er3ina,i$n $% i,s e3*#$)ees eKec,ive A&g&s, 1, 1999. An+ i, *$s,e+ ,he
n$,ice $% c#$s&re $n ,he c$r*$ra,e '&##e,in '$ar+. Pe,i,i$ners Ga#aFie S,ee# W$r<ers >ni$n an+
Ga#aFie e3*#$)ees J#e+ a c$3*#ain, %$r i##ega# +is3issa#, &n%air #a'$r *rac,ice, an+ 3$ne)
c#ai3s agains, Ga#aFie. The La'$r Ar'i,er +ec#are+ va#i+ Ga#aFieGs c#$s&re $% '&siness '&,
never,he#ess $r+ere+ i, ,$ *a) ,he e3*#$)ees se*ara,i$n *a), *r$5ra,a 1
,h
3$n,h *a), an+
vaca,i$n an+ sic< #eave cre+i,s. The NLRC &*he#+ ,he La'$r Ar'i,erGs +ecisi$n '&, reverse+ ,he
awar+ $% *r$5ra,a 1
,h
3$n,h *a) an+ vaca,i$n an+ sic< #eave cre+i,s, ,he sa3e n$, 'eing
a3$ng *e,i,i$nersG ca&ses $% ac,i$n as in %ac, ,he) were n$, even 3en,i$ne+ in ,heir
*#ea+ings. An+ i, reverse+ ,$$ ,he awar+ %$r se*ara,i$n *a), ,he c#$s&re $% Ga#aFieGs '&siness
'eing +&e ,$ seri$&s '&siness #$sses. Never,he#ess, ,he NLRC +irec,e+ Ga#aFie ,$ gran,
*e,i,i$ners, ') wa) $% Jnancia# assis,ance, ,he sa3e a3$&n, given ,$ ,he e3*#$)ees wh$ ha+
eFec&,e+ A&i,c#ai3s. Their 3$,i$n %$r rec$nsi+era,i$n having 'een +enie+, *e,i,i$ners J#e+ a
*e,i,i$n %$r cer,i$rari wi,h ,he C$&r, $% A**ea#s, arg&ing ,ha, ,he NLRC ac,e+ wi,h grave a'&se
$% +iscre,i$n in n$, Jn+ing Ga#aFie g&i#,) $% &n%air #a'$r *rac,ice an+ $% vi$#a,ing *e,i,i$nersG
righ, ,$ n$,ice $% c#$s&re, an+ in +e#e,ing ,he awar+ $% se*ara,i$n *a). CA &*he#+ ,he NLRC
+ecisi$n. Hence, ,he *resen, *e,i,i$n %$r review.
Iss&esL
Whe,her $r n$, Ga#aFie is g&i#,) $% &n%air #a'$r *rac,ice in c#$sing i,s '&siness $*era,i$ns
sh$r,#) a%,er *e,i,i$ner &ni$n J#e+ %$r cer,iJca,i$n e#ec,i$n.
Whe,her $r n$, *e,i,i$ners are en,i,#e+ ,$ se*ara,i$n *a).
Whe,her $r n$, ,he wri,,en n$,ice *$s,e+ ') Ga#aFie $n ,he c$3*an) '&##e,in '$ar+ s&Icien,#)
c$3*#ies wi,h ,he n$,ice reA&ire3en, &n+er Ar,ic#e !1 $% ,he La'$r C$+e.
Page 1-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R&#ingL
Pe,i,i$ners c$n,en+ ,ha, ,he C$&r, $% A**ea#s erre+ in n$, Jn+ing ,ha, Ga#aFieGs c#$s&re $%
'&siness $*era,i$ns was 3$,iva,e+ n$, ') seri$&s '&siness #$sses '&, ') ,heir an,i5&ni$n
s,ance. I, is se,,#e+ ,ha, SC is n$, a ,rier $% %ac,s, a r&#e which a**#ies wi,h grea,er %$rce in
#a'$r cases where ,he Jn+ings $% %ac, $% ,he NLRC are acc$r+e+ res*ec, an+ even Jna#i,), as
#$ng as ,he) are s&**$r,e+ ') s&'s,an,ia# evi+ence %r$3 which an in+e*en+en, eva#&a,i$n $%
,he %ac,s 3a) 'e 3a+e. In ,his case, ,he La'$r Ar'i,er, ,he NLRC, an+ ,he CA were &nani3$&s
in r&#ing ,ha, Ga#aFieGs c#$s&re $r cessa,i$n $% '&siness $*era,i$ns was +&e ,$ seri$&s '&siness
#$sses $r Jnancia# reverses, an+ n$, 'eca&se $% an) a##ege+ an,i5&ni$n *$si,i$n. The C$&r,
Jn+s n$ reas$n ,$ 3$+i%) s&ch Jn+ing. In an) even,, *e,i,i$ners c$n,en+ ,ha, Ga#aFie +i+ n$,
serve wri,,en n$,ices $% ,he c#$s&re $% '&siness $*era,i$ns &*$n i,s e3*#$)ees, i, having
3ere#) *$s,e+ a n$,ice $n ,he c$3*an) '&##e,in '$ar+. In+ee+, Ga#aFieGs +$c&3en,ar)
evi+ence sh$ws ,ha, i, ha+ 'een eF*eriencing seri$&s Jnancia# #$sses a, ,he ,i3e i, c#$se+
'&siness $*era,i$ns. As a*,#) %$&n+ ') ,he C$&r, $% A**ea#sL The NLRCGs Jn+ing $n ,he #ega#i,)
$% ,he c#$s&re sh$&#+ 'e &*he#+ %$r i, is s&**$r,e+ ') s&'s,an,ia# evi+ence c$nsis,ing $% ,he
a&+i,e+ Jnancia# s,a,e3en,s sh$wing ,ha, Ga#aFie c$n,in&$&s#) inc&rre+ #$sses %r$3 199" &*
,$ 3i+51999, ,$ wi,L P-2,"2,.1(.-2 in 199", P.1,.!9,"12.19 in 1991, an+ P1,!(.,19.9" in
1999O an+ $% ,he vari$&s +e3an+ n$,ices $% *a)3en,s %r$3 cre+i,$r 'an<s. Besi+es, ,he
*e,i,i$ners ha+ n$, *resen,e+ evi+ence ,$ ,he c$n,rar)O n$r +i+ ,he) es,a'#ish ,ha, ,he c#$s&re
was 3$,iva,e+ ') Ga#aFieGs an,i5&ni$n s,ance. Tr&e, ,he &ni$n was see<ing ,he h$#+ing $% a
cer,iJca,i$n e#ec,i$n a, ,he ,i3e ,ha, Ga#aFie c#$se+ i,s '&siness $*era,i$n, '&, ,ha,, wi,h$&,
3$re, was n$, s&Icien, ,$ a,,ri'&,e an,i5&ni$nis3 agains, Ga#aFie. >*$n ,he $,her han+,
*e,i,i$ners %ai#e+ ,$ *resen, c$ncre,e evi+ence s&**$r,ing ,heir c#ai3 $% &n%air #a'$r *rac,ice.
>n%air #a'$r *rac,ice re%ers ,$ ac,s ,ha, vi$#a,e ,he w$r<ersG righ, ,$ $rgani4e, an+ are +eJne+
in Ar,ic#es !.1 an+ !-1 $% ,he La'$r C$+e. The *r$hi'i,e+ ac,s re#a,e ,$ ,he w$r<ersG righ, ,$
se#%5$rgani4a,i$n an+ ,$ ,he $'servance $% C$##ec,ive Bargaining Agree3en, wi,h$&, which
re#a,i$n ,he ac,s, n$ 3a,,er h$w &n%air, are n$, +ee3e+ &n%air #a'$r *rac,ices.
Res*ec,ing *e,i,i$nersG c#ai3 %$r se*ara,i$n *a), in Nort$ !avao 4ining Corporation v.
National Labor Relations Commission, ,his C$&r, he#+ ,ha, Ar,ic#e !1 g$verns ,he gran, $%
se*ara,i$n 'eneJ,s Pin case $% c#$s&res $r cessa,i$n $% $*era,i$nP $% '&siness es,a'#ish3en,s
PN:T +&e ,$ seri$&s '&siness #$sses $r Jnancia# reverses . . .P Where, ,he c#$s&re ,hen is +&e
,$ seri$&s '&siness #$sses, ,he La'$r C$+e +$es n$, i3*$se an) $'#iga,i$n &*$n ,he e3*#$)er
,$ *a) se*ara,i$n 'eneJ,s. The +enia# $% *e,i,i$nersG c#ai3 %$r se*ara,i$n *a) was ,h&s in
$r+er.
Wi,h regar+ ,$ ,he n$,ice reA&ire3en,, ,he La'$r Ar'i,er %$&n+, an+ i, was &*he#+ ') ,he NLRC
an+ ,he C$&r, $% A**ea#s, ,ha, ,he wri,,en n$,ice $% c#$s&re $r cessa,i$n $% Ga#aFieGs '&siness
$*era,i$ns was *$s,e+ $n ,he c$3*an) '&##e,in '$ar+ $ne 3$n,h *ri$r ,$ i,s eKec,ivi,). The
3ere *$s,ing $n ,he c$3*an) '&##e,in '$ar+ +$es n$,, h$wever, 3ee, ,he reA&ire3en, &n+er
Ar,ic#e !1 $% Pserving a wri,,en n$,ice $n ,he w$r<ers.P The *&r*$se $% ,he wri,,en n$,ice is ,$
in%$r3 ,he e3*#$)ees $% ,he s*eciJc +a,e $% ,er3ina,i$n $r c#$s&re $% '&siness $*era,i$ns, an+
3&s, 'e serve+ &*$n ,he3 a, #eas, $ne 3$n,h 'e%$re ,he +a,e $% eKec,ivi,) ,$ give ,he3
s&Icien, ,i3e ,$ 3a<e ,he necessar) arrange3en,s. In $r+er ,$ 3ee, ,he %$reg$ing *&r*$se,
service $% ,he wri,,en n$,ice 3&s, 'e 3a+e individuall& &*$n each an+ ever) e3*#$)ee $% ,he
c$3*an). Never,he#ess, ,he va#i+i,) $% ,er3ina,i$n $% services can eFis, in+e*en+en,#) $% ,he
*r$ce+&ra# inJr3i,) in ,he +is3issa#. A%,er ana#)4ing ,he c$nseA&ences $% ,he +ivergen,
+$c,rines $n e3*#$)3en, ,er3ina,i$n, ,he C$&r, he#+ ,ha, in cases inv$#ving +is3issa#s %$r
ca&se, '&, wi,h$&, $'servance $% s,a,&,$r) +&e *r$cess, ,he 'e,,er r&#e is ,$ +ec#are ,ha, ,he
+is3issa# was %$r ca&se '&, i3*$sing sanc,i$ns $n ,he e3*#$)er. B) s$ +$ing, +is*ensing
E&s,ice n$, E&s, ,$ e3*#$)ees '&, ,$ e3*#$)ers as we## is achieve+.
Page 1"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In Business Servies of t$e 3uture *oda&, (n. v. Court of Appeals, which rei,era,e+ ,he r&#ing in
Agabon v. National Labor Relations Commission, ,his C$&r, he#+ ,ha, where ,he +is3issa# is %$r
an a&,h$ri4e+ ca&se, ,he #ac< $% s,a,&,$r) +&e *r$cess sh$&#+ n$, n&##i%) ,he +is3issa#, $r
ren+er i, i##ega#, $r ineKec,&a#. H$wever, ,he e3*#$)er sh$&#+ in+e3ni%) ,he e3*#$)ee, in ,he
%$r3 $% n$3ina# +a3ages, %$r ,he vi$#a,i$n $% his righ, ,$ s,a,&,$r) +&e *r$cess.
9. S$ vs. Me(ro 'an:, G.R. No. 1)")1-, Nove/er 2, 2"")
9ac,sL
Pe,i,i$ner 7ennis S) was ,he 'ranch 3anager in BaEa+a, 7ava$ Ci,) $% res*$n+en,
Me,r$*$#i,an Ban< an+ Tr&s, C$3*an). S) w$&#+ have ren+ere+ ( )ears $% service ') A&g&s,
11, 1999 &n+er ,he 'an<Gs re,ire3en, *#an, which *r$vi+es ,ha, an e3*#$)ee 3&s, re,ire &*$n
reaching 22 )ears $% age $r a%,er ren+ering ( )ears $% service, whichever c$3es ear#ier.
H$wever, $n 9e'r&ar) 2, 1999, a %ew 3$n,hs 'e%$re he was s&**$se+ ,$ re,ire, ,he 'an<
rea**$in,e+ hi3 as 'ranch 3anager %$r a ,er3 $% $ne )ear %r$3 A&g&s, 11, 1999 &n,i# A&g&s,
11, !(((, wi,h a c$rres*$n+ing sa#ar) increase eKec,ive A&g&s, 1-, 1999. In N$ve3'er 1999,
,he 'an< re#ease+ ,he res&#,s $% ,he a&+i, c$n+&c,e+. S), $n N$ve3'er 12, 1999, ,en+ere+ an
irrev$ca'#e #e,,er $% re,ire3en,, wherein he reA&es,e+ ,he ,i3e#) re#ease $% his re,ire3en, *a)
an+ $,her 'eneJ,s. His reA&es, was +enie+. The 'an< averre+ ,ha, S) has a##$we+ c#ien,5
S*$&ses :ng ,$ c$n+&c, M<i,ingN ac,ivi,ies in ,heir acc$&n,. The 'an< *#ace+ S) $n *reven,ive
s&s*ensi$n. S) res*$n+e+ ,ha, he $n#) 3a+e a wr$ng cre+i, E&+g3en,. The 'an<, n$,
sa,isJe+ wi,h his answer, n$,iJe+ S) $% $,her vi$#a,i$ns $% c$3*an) *$#icies. >nc$nvince+ $%
S) eF*#ana,i$n, ,he 'an< +is3isse+ S). S) ,hen J#e+ a case %$r i##ega# +is3issa#, which was
+is3isse+ ') ,he #a'$r ar'i,er %$r #ac< $% 3eri,. :n a**ea#, ,he NLRC +ee3e+ S) c$3*&#s$ri#)
re,ire+. When 'r$&gh, &* ,$ ,he C$&r, $% A**ea#s, ,he #a'$r ar'i,erGs +ecisi$n was reins,a,e+.
Iss&esL
Was S) i##ega##) ,er3ina,e+W
I% his +is3issa# was va#i+, w$&#+ he s,i## 'e en,i,#e+ ,$ re,ire3en, 'eneJ,sW
Ruling<
N$. S) was va#i+#) +is3isse+ $n ,he gr$&n+ $% %ra&+ an+ wi##%&# 'reach $% ,r&s, &n+er Ar,ic#e
!1! $% ,he La'$r C$+e. Rec$r+s sh$w ,ha, as 'an< 3anager, he a&,h$ri4e+ M<i,ingN $r
+rawing $% chec<s agains, &nc$##ec,e+ %&n+s in wan,$n vi$#a,i$n $% ,he 'an<Gs *$#icies. I, was
s&Icien, 'asis %$r ,he 'an< ,$ #$se ,r&s, in hi3. >n#i<e a ran<5an+5J#e w$r<er, where 'reach $%
,r&s, as a gr$&n+ %$r va#i+ +is3issa# reA&ires *r$$% $% inv$#ve3en, in ,he a##ege+ an$3a#) an+
where 3ere &nc$rr$'$ra,e+ acc&sa,i$n ') ,he e3*#$)er wi## n$, s&Ice, ,he sheer eFis,ence $%
a 'asis %$r 'e#ieving ,ha, ,he e3*#$)erGs ,r&s, has 'een 'reach is en$&gh %$r ,he +is3issa# $% a
3anageria# e3*#$)ee. Pe,i,i$ner, h$wever, ,he$ri4es ,ha, having 'een c$3*&#s$ri#) re,ire+, he
c$&#+ n$ #$nger 'e +is3isse+ ') ,he 'an<. His *re3ise is a's&r+. In+ee+, he w$&#+ have
A&a#iJe+ %$r c$3*&#s$r) re,ire3en, &n+er ,he 'an<Gs Re,ire3en, P#an. H$wever, he $*,e+ ,$
acce*, ,he 'an<Gs $Ker $% eF,en+ing his e3*#$)3en, %$r an$,her )ear wi,h a c$rres*$n+ing
sa#ar) increase. Th&s, in eKec,, he ha+ never re,ire+. >n%$r,&na,e#) %$r hi3, whi#e serving
s&ch eF,en+e+ ,er3, ,he 'an< +isc$vere+ his &na&,h$ri4e+ gran, $% acc$33$+a,i$n ,$
acc$&n,s engage+ in M<i,ingN ac,ivi,). S&ch ac, is a c#ear 'reach $% ,he ,r&s, in hi3 ') ,he
'an<. He cann$, n$w e#&+e +is3issa# %$r a E&s, ca&se ') c#ai3ing he was a#rea+) re,ire+
c$3*&#s$ri#).
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
N$. >n+er ,he La'$r C$+e, $n#) &nE&s,#) +is3isse+ e3*#$)ees are en,i,#e+ ,$ re,ire3en,
'eneJ,s an+ $,her *rivi#eges inc#&+ing reins,a,e3en, an+ 'ac<wages. Since *e,i,i$nerGs
+is3issa# was %$r a E&s, ca&se, he is n$, en,i,#e+ ,$ an) re,ire3en, 'eneJ,.
1". Hing of Hings 9rans%or( vs. NLRC, G.R. No. 1))2"-, 2une 29, 2""7
9ac,sL
Res*$n+en, Ma3ac was hire+ as '&s c$n+&c,$r $% 7$n Marian$ Transi, C$r*$ra,i$n =7MTC? $n
A*ri# !9, 1999. Res*$n+en, was reA&ire+ ,$ acc$3*#ish a PC$n+&c,$rSs Tri* Re*$r,P an+ s&'3i,
i, ,$ ,he c$3*an) a%,er each ,ri*. As a 'ac<gr$&n+, ,his re*$r, in+ica,es ,he ,ic<e, $*ening an+
c#$sing %$r ,he *ar,ic&#ar +a) $% +&,). A%,er s&'3issi$n, ,he c$3*an) a&+i,s ,he re*$r,s. :nce
an irreg&#ari,) is +isc$vere+, ,he c$3*an) iss&es an PIrreg&#ari,) Re*$r,P agains, ,he
e3*#$)ee, in+ica,ing ,he na,&re an+ +e,ai#s $% ,he irreg&#ari,). Therea%,er, ,he c$ncerne+
e3*#$)ee is as<e+ ,$ eF*#ain ,he inci+en, ') 3a<ing a wri,,en s,a,e3en, $r c$&n,er5aI+avi,
a, ,he 'ac< $% ,he sa3e Irreg&#ari,) Re*$r,. A%,er c$nsi+ering ,he eF*#ana,i$n $% ,he e3*#$)ee,
,he c$3*an) ,hen 3a<es a +e,er3ina,i$n $% whe,her ,$ acce*, ,he eF*#ana,i$n $r i3*$se
&*$n ,he e3*#$)ee a *ena#,) %$r c$33i,,ing an in%rac,i$n. Tha, +ecisi$n sha## 'e s,a,e+ $n
sai+ Irreg&#ari,) Re*$r, an+ wi## 'e %&rnishe+ ,$ ,he e3*#$)ee.
>*$n a&+i, $% ,he :c,$'er !1, !((1 C$n+&c,$rSs Re*$r, $% res*$n+en,, HHTI n$,e+ an
irreg&#ari,). I, +isc$vere+ ,ha, res*$n+en, +ec#are+ severa# s$#+ ,ic<e,s as re,&rne+ ,ic<e,s
ca&sing HHTI ,$ #$se an inc$3e $% eigh, h&n+re+ an+ nine,) *es$s. Whi#e n$ irreg&#ari,) re*$r,
was *re*are+ $n ,he :c,$'er !1, !((1 inci+en,, HHTI never,he#ess as<e+ res*$n+en, ,$
eF*#ain ,he +iscre*anc). In his #e,,er, res*$n+en, sai+ ,ha, ,he err$ne$&s +ec#ara,i$n in his
:c,$'er !1, !((1 Tri* Re*$r, was &nin,en,i$na#. He eF*#aine+ ,ha, +&ring ,ha, +a)Ss ,ri*, ,he
win+shie#+ $% ,he '&s assigne+ ,$ ,he3 was s3ashe+O an+ ,he) ha+ ,$ c&, sh$r, ,he ,ri* in
$r+er ,$ i33e+ia,e#) re*$r, ,he 3a,,er ,$ ,he *$#ice. As a res&#, $% ,he inci+en,, he g$,
c$n%&se+ in 3a<ing ,he ,ri* re*$r,.
:n N$ve3'er !-, !((1, res*$n+en, receive+ a #e,,er ,er3ina,ing his e3*#$)3en, eKec,ive
N$ve3'er !9, !((1. The +is3issa# #e,,er a##ege+ ,ha, ,he :c,$'er !1, !((1 irreg&#ari,) was an
ac, $% %ra&+ agains, ,he c$3*an). HHTI a#s$ ci,e+ as 'asis %$r res*$n+en,Ss +is3issa# ,he $,her
$Kenses he a##ege+#) c$33i,,e+ since 1999.
Res*$n+en, J#e+ a C$3*#ain, %$r i##ega# +is3issa#, i##ega# +e+&c,i$ns, n$n*a)3en, $% 1,h5
3$n,h *a), service incen,ive #eave, an+ se*ara,i$n *a). He +enie+ c$33i,,ing an) in%rac,i$n
an+ a##ege+ ,ha, his +is3issa# was in,en+e+ ,$ '&s, &ni$n ac,ivi,ies. M$re$ver, he c#ai3e+ ,ha,
his +is3issa# was eKec,e+ wi,h$&, +&e *r$cess.
HHTI c$n,en+e+ ,ha, res*$n+en, was #ega##) +is3isse+ a%,er his c$33issi$n $% a series $%
3isc$n+&c,s an+ 3is+ee+s. I, c#ai3e+ ,ha, res*$n+en, ha+ vi$#a,e+ ,he ,r&s, an+ c$nJ+ence
re*$se+ &*$n hi3 ') HHTI. A#s$, i, averre+ ,ha, i, ha+ $'serve+ +&e *r$cess in +is3issing
res*$n+en, an+ 3ain,aine+ ,ha, res*$n+en, was n$, en,i,#e+ ,$ his 3$ne) c#ai3s s&ch as
service incen,ive #eave an+ 1,h53$n,h *a) 'eca&se he was *ai+ $n c$33issi$n $r
*ercen,age 'asis.
Iss&eL
Whe,her $r n$, *r$ce+&ra# reA&ire3en,s were c$3*#ie+ wi,h.
Page 19
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R&#ingL
7&e *r$cess &n+er ,he La'$r C$+e inv$#ves ,w$ as*ec,sL Jrs,, s&'s,an,ive ` ,he va#i+ an+
a&,h$ri4e+ ca&ses $% ,er3ina,i$n $% e3*#$)3en, &n+er ,he La'$r C$+eO an+ sec$n+,
*r$ce+&ra# ` ,he 3anner $% +is3issa#.
N$n5c$3*#iance wi,h ,he 7&e Pr$cess ReA&ire3en,s
Ar,. !"" $% ,he La'$r C$+e *r$vi+es ,he 3anner $% ,er3ina,i$n $% e3*#$)3en,, ,h&sL
Ar,. !"". Misce##ane$&s Pr$visi$ns. ` . . .
='?S&'Eec, ,$ ,he c$ns,i,&,i$na# righ, $% w$r<ers ,$ sec&ri,) $% ,en&re an+ ,heir righ, ,$ 'e
*r$,ec,e+ agains, +is3issa# eFce*, %$r a E&s, an+ a&,h$ri4e+ ca&se wi,h$&, *reE&+ice ,$ ,he
reA&ire3en, $% n$,ice &n+er Ar,ic#e !1 $% ,his C$+e, ,he e3*#$)er sha## %&rnish ,he w$r<er
wh$se e3*#$)3en, is s$&gh, ,$ 'e ,er3ina,e+ a wri,,en n$,ice c$n,aining a s,a,e3en, $% ,he
ca&ses %$r ,er3ina,i$n an+ sha## aK$r+ ,he #a,,er a3*#e $**$r,&ni,) ,$ 'e hear+ an+ ,$ +e%en+
hi3se#% wi,h ,he assis,ance $% his re*resen,a,ive i% he s$ +esires in acc$r+ance wi,h c$3*an)
r&#es an+ reg&#a,i$ns *r$3&#ga,e+ *&rs&an, ,$ g&i+e#ines se, ') ,he 7e*ar,3en, $% La'$r an+
E3*#$)3en,. An) +ecisi$n ,a<en ') ,he e3*#$)er sha## 'e wi,h$&, *reE&+ice ,$ ,he righ, $% ,he
w$r<er ,$ c$n,es, ,he va#i+i,) $r #ega#i,) $% his +is3issa# ') J#ing a c$3*#ain, wi,h ,he regi$na#
'ranch $% ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n. The '&r+en $% *r$ving ,ha, ,he
,er3ina,i$n was %$r a va#i+ $r a&,h$ri4e+ ca&se sha## res, $n ,he e3*#$)er.
Acc$r+ing#), ,he i3*#e3en,ing r&#e $% ,he a%$resai+ *r$visi$n s,a,esL
SEC. !.S,an+ar+s $% +&e *r$cessO reA&ire3en,s $% n$,ice. ` In a## cases $% ,er3ina,i$n $%
e3*#$)3en,, ,he %$##$wing s,an+ar+s $% +&e *r$cess sha## 'e s&'s,an,ia##) $'serve+L
I.9$r ,er3ina,i$n $% e3*#$)3en, 'ase+ $n E&s, ca&ses as +eJne+ in Ar,ic#e !1! $% ,he C$+eL
=a?A wri,,en n$,ice serve+ $n ,he e3*#$)ee s*eci%)ing ,he gr$&n+ $r gr$&n+s %$r ,er3ina,i$n,
an+ giving sai+ e3*#$)ee reas$na'#e $**$r,&ni,) wi,hin which ,$ eF*#ain his si+e.
='?A hearing $r c$n%erence +&ring which ,he e3*#$)ee c$ncerne+, wi,h ,he assis,ance $%
c$&nse# i% he s$ +esires is given $**$r,&ni,) ,$ res*$n+ ,$ ,he charge, *resen, his evi+ence, $r
re'&, ,he evi+ence *resen,e+ agains, hi3.
=c?A wri,,en n$,ice $% ,er3ina,i$n serve+ $n ,he e3*#$)ee, in+ica,ing ,ha, &*$n +&e
c$nsi+era,i$n $% a## ,he circ&3s,ances, gr$&n+s have 'een es,a'#ishe+ ,$ E&s,i%) his
,er3ina,i$n.
In case $% ,er3ina,i$n, ,he %$reg$ing n$,ices sha## 'e serve+ $n ,he e3*#$)eeSs #as, <n$wn
a++ress.
T$ c#ari%), ,he %$##$wing sh$&#+ 'e c$nsi+ere+ in ,er3ina,ing ,he services $% e3*#$)eesL
=1?The Jrs, wri,,en n$,ice ,$ 'e serve+ $n ,he e3*#$)ees sh$&#+ c$n,ain ,he s*eciJc ca&ses $r
gr$&n+s %$r ,er3ina,i$n agains, ,he3, an+ a +irec,ive ,ha, ,he e3*#$)ees are given ,he
$**$r,&ni,) ,$ s&'3i, ,heir wri,,en eF*#ana,i$n wi,hin a reas$na'#e *eri$+. 8Reasonable
opportunit&8 &n+er ,he :3ni'&s R&#es 3eans ever) <in+ $% assis,ance ,ha, 3anage3en, 3&s,
acc$r+ ,$ ,he e3*#$)ees ,$ ena'#e ,he3 ,$ *re*are a+eA&a,e#) %$r ,heir +e%ense. This sh$&#+
'e c$ns,r&e+ as a period of at least -ve /@0 alendar da&s from reeipt of t$e notie ,$ give
,he e3*#$)ees an $**$r,&ni,) ,$ s,&+) ,he acc&sa,i$n agains, ,he3, c$ns&#, a &ni$n $Icia# $r
#aw)er, ga,her +a,a an+ evi+ence, an+ +eci+e $n ,he +e%enses ,he) wi## raise agains, ,he
c$3*#ain,. M$re$ver, in $r+er ,$ ena'#e ,he e3*#$)ees ,$ in,e##igen,#) *re*are ,heir
eF*#ana,i$n an+ +e%enses, ,he n$,ice sh$&#+ c$n,ain a +e,ai#e+ narra,i$n $% ,he %ac,s an+
Page 1.(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
circ&3s,ances ,ha, wi## serve as 'asis %$r ,he charge agains, ,he e3*#$)ees. A genera#
+escri*,i$n $% ,he charge wi## n$, s&Ice. Las,#), ,he n$,ice sh$&#+ s*eciJca##) 3en,i$n which
c$3*an) r&#es, i% an), are vi$#a,e+ an+B$r which a3$ng ,he gr$&n+s &n+er Ar,. !1! is 'eing
charge+ agains, ,he e3*#$)ees.
=!?A%,er serving ,he Jrs, n$,ice, ,he e3*#$)ers sh$&#+ sche+&#e an+ c$n+&c, a hearing $r
c$n%erence wherein ,he e3*#$)ees wi## 'e given ,he $**$r,&ni,) ,$L =1? eF*#ain an+ c#ari%)
,heir +e%enses ,$ ,he charge agains, ,he3O =!? *resen, evi+ence in s&**$r, $% ,heir +e%ensesO
an+ =? re'&, ,he evi+ence *resen,e+ agains, ,he3 ') ,he 3anage3en,. 7&ring ,he hearing $r
c$n%erence, ,he e3*#$)ees are given ,he chance ,$ +e%en+ ,he3se#ves *ers$na##), wi,h ,he
assis,ance $% a re*resen,a,ive $r c$&nse# $% ,heir ch$ice. M$re$ver, ,his c$n%erence $r hearing
c$&#+ 'e &se+ ') ,he *ar,ies as an $**$r,&ni,) ,$ c$3e ,$ an a3ica'#e se,,#e3en,.
=?A%,er +e,er3ining ,ha, ,er3ina,i$n $% e3*#$)3en, is E&s,iJe+, ,he e3*#$)ers sha## serve ,he
e3*#$)ees a wri,,en n$,ice $% ,er3ina,i$n in+ica,ing ,ha,L =1? a## circ&3s,ances inv$#ving ,he
charge agains, ,he e3*#$)ees have 'een c$nsi+ere+O an+ =!? gr$&n+s have 'een es,a'#ishe+
,$ E&s,i%) ,he severance $% ,heir e3*#$)3en,.
In ,he ins,an, case, HHTI a+3i,s ,ha, i, ha+ %ai#e+ ,$ *r$vi+e res*$n+en, wi,h a Pcharge shee,.P
H$wever, i, 3ain,ains ,ha, i, ha+ s&'s,an,ia##) c$3*#ie+ wi,h ,he r&#es, c#ai3ing ,ha,
Pres*$n+en, w$&#+ n$, have iss&e+ a wri,,en eF*#ana,i$n ha+ he n$, 'een in%$r3e+ $% ,he
charges agains, hi3.P
We are n$, c$nvince+.
9irs,, res*$n+en, was n$, iss&e+ a wri,,en n$,ice charging hi3 $% c$33i,,ing an in%rac,i$n. The
#aw is c#ear $n ,he 3a,,er. A ver'a# a**raisa# $% ,he charges agains, an e3*#$)ee +$es n$,
c$3*#) wi,h ,he Jrs, n$,ice reA&ire3en,. In Pe*si C$#a B$,,#ing C$. v. NLRC, ,he C$&r, he#+ ,ha,
c$ns&#,a,i$ns $r c$n%erences are n$, a s&'s,i,&,e %$r ,he ac,&a# $'servance $% n$,ice an+
hearing.
Sec$n+, ,he C$&r, $'serve+ ,he irreg&#ari,) re*$r,s agains, res*$n+en, %$r his $,her $Kenses
,ha, s&ch c$n,aine+ 3ere#) a genera# +escri*,i$n $% ,he charges agains, hi3. The re*$r,s +i+
n$, even s,a,e a c$3*an) r&#e $r *$#ic) ,ha, ,he e3*#$)ee ha+ a##ege+#) vi$#a,e+. Li<ewise,
,here is n$ 3en,i$n $% an) $% ,he gr$&n+s %$r ,er3ina,i$n $% e3*#$)3en, &n+er Ar,. !1! $% ,he
La'$r C$+e. Th&s, HHTISs Ps,an+ar+P charge shee, is n$, s&Icien, n$,ice ,$ ,he e3*#$)ee.
Thir+, n$ hearing was c$n+&c,e+. Regar+#ess $% res*$n+en,Ss wri,,en eF*#ana,i$n, a hearing
was s,i## necessar) in $r+er %$r hi3 ,$ c#ari%) an+ *resen, evi+ence in s&**$r, $% his +e%ense.
M$re$ver, res*$n+en, 3a+e ,he #e,,er 3ere#) ,$ eF*#ain ,he circ&3s,ances re#a,ing ,$ ,he
irreg&#ari,). He was &naware ,ha, a +is3issa# *r$cee+ing was a#rea+) 'eing eKec,e+.
Sanc,i$n %$r N$n5c$3*#iance wi,h 7&e Pr$cess ReA&ire3en,s
As s,a,e+ ear#ier, a%,er a Jn+ing ,ha, *e,i,i$ners %ai#e+ ,$ c$3*#) wi,h ,he +&e *r$cess
reA&ire3en,s, ,he CA awar+e+ %&## 'ac<wages in %av$r $% res*$n+en, in acc$r+ance wi,h ,he
+$c,rine in Serran$ v. NLRC. H$wever, ,he +$c,rine in Serran$ ha+ a#rea+) 'een a'an+$ne+ in
Aga'$n v. NLRC ') r&#ing ,ha, i% ,he +is3issa# is +$ne wi,h$&, +&e *r$cess, ,he e3*#$)er
sh$&#+ in+e3ni%) ,he e3*#$)ee wi,h n$3ina# +a3ages.
Th&s, %$r n$n5c$3*#iance wi,h ,he +&e *r$cess reA&ire3en,s in ,he ,er3ina,i$n $%
res*$n+en,Ss e3*#$)3en,, *e,i,i$ner HHTI is sanc,i$ne+ ,$ *a) res*$n+en, ,he a3$&n, $%
,hir,) ,h$&san+ *es$s =PhP(,(((? as +a3ages.
Page 1.1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
11. 2ohnson 8 2ohnson v. 2ohnson 7Ice 8 Sales <nion, G.R. No. 172799, 2ul$ ),
2""7
9ac,sL
A c$3*#ain, %$r i##ega# +is3issa# was J#e+ ') res*$n+en,s Ma. 6es&sa B$ns$# an+ Ri4a#in+a
Hir$n+$ agains, *e,i,i$ners 6$hns$n ; 6$hns$n =Phi#s.?, Inc. an+ 6anssen Phar3ace&,ica, $ne $%
,he %$r3erGs +ivisi$ns. The La'$r Ar'i,er +is3isse+ ,he c$3*#ain,, *r$3*,ing res*$n+en,s ,$
e#eva,e ,he 3a,,er ,$ ,he NLRC.
:n 1. 7ece3'er !((1, ,he NLRC ren+ere+ a Res$#&,i$n, 3$+i%)ing ,he +ecisi$n $% ,he La'$r
Ar'i,er. The NLRC r&#e+ ,ha, ,he vi$#a,i$ns $% c$3*an) *r$ce+&re c$33i,,e+ ') res*$n+en,s
+i+ n$, c$ns,i,&,e seri$&s 3isc$n+&c, $r wi##%&# +is$'e+ience warran,ing ,heir +is3issa#O hence,
res*$n+en,s were en,i,#e+ ,$ reins,a,e3en,.
6$hns$n an+ 6$hns$n s$&gh, *ar,ia# rec$nsi+era,i$n '&, ,he NLRC +enie+ ,he 3$,i$n in a
Res$#&,i$n +a,e+ 11 9e'r&ar) !((!.
Nei,her *ar,) a**ea#e+ %r$3 ,he res$#&,i$n +ecisi$n $% ,he NLRC wi,hin ,he reg#e3en,ar)
*eri$+. The Res$#&,i$n +a,e+ 1. 7ece3'er !((1 'eca3e Jna# an+ eFec&,$r).
1 March !((. A, a c$n%erence he#+, *e,i,i$ner 6$hns$n an+ 6$hns$n rei,era,e+ ,heir
in,en,i$n ,$ sa,is%) res*$n+en,s 3$ne,ar) awar+ '&, ,he #a,,er re%&se+ an+ insis,e+ $n ,heir
reins,a,e3en,. Therea%,er, *e,i,i$ner J#e+ a Mani%es,a,i$n an+ M$,i$n, arg&ing ,ha, ,he 1.
7ece3'er !((1 Res$#&,i$n gran,e+ ,he3 ,he righ, ,$ ch$$se 'e,ween ,he *a)3en, $%
se*ara,i$n *a) an+ ,he reins,a,e3en, $% res*$n+en,s 'ase+ $n ,he Jn+ing ,ha, whi#e ,heir
,er3ina,i$n was i##ega#, res*$n+en,s were n$, en,ire#) %a&#,#ess as ,he) +i+ n$, %$##$w ,he eFac,
*r$ce+&re in ,he *er%$r3ance $% ,heir +&,ies. Pe,i,i$ners a#s$ c#ai3e+ ,ha, reins,a,e3en, was
n$ #$nger %easi'#e in view $% ,he s,raine+ re#a,i$ns 'e,ween ,he *ar,ies.

11 6&ne !((. ,he NLRC iss&e+ a Res$#&,i$n, which +irec,e+ ,he reins,a,e3en, $%
res*$n+en,s *&rs&an, ,$ ,he 1. 7ece3'er !((1 Res$#&,i$n. The NLRC rec$gni4e+ res*$n+en,s
righ, ,$ ch$$se 'e,ween reins,a,e3en, an+ se*ara,i$n *a) an+ +isregar+e+ *e,i,i$ners c#ai3
$% s,raine+ re#a,i$ns. Pe,i,i$ners 3$,i$n %$r rec$nsi+era,i$n was +enie+ in ,he Res$#&,i$n
+a,e+ !1 6&#) !((..
The C$&r, $% A**ea#s aIr3e+ ,he res$#&,i$ns $% ,he NLRC +a,e+ 11 6&ne !((. an+ 1 6&#) !((..
Th&s in a *e,i,i$ner %$r cer,i$rari 'e%$re ,he SC, 6$hns$n an+ 6$hns$n c$n,en+s ,ha, ,he in,en,
$% ,he 1. 7ece3'er !((1 Res$#&,i$n was ,$ gran, ,he3 ,he $*,i$n ,$ reins,a,e res*$n+en,s ,$
,heir %$r3er *$si,i$ns wi,h$&, ,he *a)3en, $% 'ac<wages, $r in ,he a#,erna,ive, ,$ *a) ,he3
se*ara,i$n *a), 'eca&se ,he +is*$si,ive *$r,i$n $% ,he Res$#&,i$n was +irec,e+ ,$war+ $r
a++resse+ ,$ ,he3 =6$hns$n an+ 6$hns$n?, wh$ are #ega##) $'#ige+ ,$ i3*#e3en, ,he r&#ing.
Acc$r+ing ,$ *e,i,i$ners, ,he NLRC erre+ an+ 3$+iJe+ ,he Res$#&,i$n +a,e+ 1. 7ece3'er
!((1, which ha+ 'ec$3e Jna# an+ eFec&,$r), when i, s,a,e+ in i,s 11 6&ne !((. Res$#&,i$n
,ha, res*$n+en,s have ,he righ, ,$ ch$$se 'e,ween ,heir reins,a,e3en, an+ ge,,ing *ai+ ,he
3$ne,ar) awar+ when n$ s&ch ca,eg$rica# *r$n$&nce3en, can 'e ga,here+ %r$3 ,he 1.
7ece3'er !((1 Res$#&,i$n.
Iss&eL
Page 1.!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Whe,her $r n$, 6$hns$n an+ 6$hns$n, as ,he e3*#$)er, has ,he $*,i$n ,$ reins,a,e res*$n+en,s
,$ ,heir %$r3er *$si,i$ns wi,h$&, ,he *a)3en, $% 'ac<wages, $r in ,he a#,erna,ive, ,$ *a) ,he3
se*ara,i$n *a)
R&#ingL
The *e,i,i$n has n$ 3eri,.

We##5en,renche+ is ,he r&#e ,ha, an i##ega##) +is3isse+ e3*#$)ee is en,i,#e+ ,$ reins,a,e3en, as
a 3a,,er $% righ,. :ver ,he )ears, h$wever, case #aw +eve#$*e+ ,ha, where reins,a,e3en, is
n$, %easi'#e, eF*e+ien, $r *rac,ica#, as where reins,a,e3en, w$&#+ $n#) eFacer'a,e ,he ,ensi$n
an+ s,raine+ re#a,i$ns 'e,ween ,he *ar,ies, $r where ,he re#a,i$nshi* 'e,ween ,he e3*#$)er
an+ e3*#$)ee has 'een &n+&#) s,raine+ ') reas$n $% ,heir irrec$nci#a'#e +iKerences,
*ar,ic&#ar#) where ,he i##ega##) +is3isse+ e3*#$)ee he#+ a 3anageria# $r <e) *$si,i$n in ,he
c$3*an), i, w$&#+ 'e 3$re *r&+en, ,$ $r+er *a)3en, $% se*ara,i$n *a) ins,ea+ $%
reins,a,e3en,. In $,her w$r+s, ,he *a)3en, $% se*ara,i$n c$3*ensa,i$n in lieu $% ,he
reins,a,e3en, $% an e3*#$)ee wh$ was i##ega##) +is3isse+ %r$3 w$r< sha## 'e a##$we+ i% an+
$n#) i% ,he e3*#$)er can *r$ve ,he eFis,ence $% circ&3s,ances sh$wing ,ha, reins,a,e3en, wi##
n$ #$nger 'e %$r ,he 3&,&a# 'eneJ, $% ,he e3*#$)er an+ e3*#$)ee.

The NLRC Res$#&,i$n +a,e+ 1. 7ece3'er !((1 eF*ress#) rec$gni4e+ res*$n+en,s righ, ,$
reins,a,e3en, in view $% ,he i##ega#i,) $% ,heir ,er3ina,i$n. Th&s, ,he +is*$si,ive *$r,i$n $% sai+
res$#&,i$n $r+ere+ res*$n+en,s reins,a,e3en, wi,h$&,, h$wever, ,he *a)3en, $% 'ac<wages
as a *ri3ar) re#ie%.

Pe,i,i$ners are 3is,a<en in h$#+ing ,ha, ,he) have ,he *rer$ga,ive ,$ ch$$se whe,her ,$
reins,a,e res*$n+en,s ,$ ,heir %$r3er *$si,i$ns $r ,$ E&s, *a) ,heir 3$ne,ar) awar+. Nei,her
*ar,) can c#ai3 ,ha, i, has ,he ca,eg$rica# righ, ,$ ch$$se 'e,ween reins,a,e3en, an+ ,he
*a)3en, $% ,he 3$ne,ar) awar+. >#,i3a,e#), ,he NLRC has ,he a&,h$ri,) ,$ eFec&,e i,s
E&+g3en, an+ ,$ se,,#e an) iss&e ,ha, 3a) arise *er,aining ,$ ,he 3anner $r +e,ai#s $%
i3*#e3en,ing i,s E&+g3en,.

In ,he ins,an, case, a#,h$&gh ,he $**$sing *ar,ies )ie#+e+ ,$ ,he E&+g3en, $% ,he NLRC an+ +i+
n$, an)3$re e#eva,e ,he #a'$r +is*&,e ,$ ,he a**e##a,e c$&r,, ,he) are n$w a, $++s as ,$ h$w
,he 1. 7ece3'er !((1 Res$#&,i$n sh$&#+ 'e i3*#e3en,e+. Th&s, ,he NLRC *r$*er#) eFercise+
i,s a&,h$ri,) ,$ res$#ve ,he c$n,r$vers) when i, iss&e+ ,he Res$#&,i$n +a,e+ 11 6&ne !((.,
where i, ca,eg$rica##) $r+ere+ ,he reins,a,e3en, $% res*$n+en,s ,$ ,heir %$r3er *$si,i$ns, in
c$ns$nance wi,h i,s ear#ier r&#ing. The NLRC &*he#+ ,he c$n,in&ing *ri3ac) $% reins,a,e3en,
as ,he avai#a'#e re#ie% an+ 3a+e sh$r, shri%, $% *e,i,i$ners av$wa# ,ha, se*ara,i$n *a) sh$&#+
'e awar+e+ in #ie& $% reins,a,e3en,. EKec,ive#), ,he NLRC an+ ,he C$&r, $% A**ea#s
+isregar+e+ *e,i,i$ners c#ai3 ,ha, ,he re#a,i$n 'e,ween ,he *ar,ies was s$ s,raine+ ,ha, $n#)
,he *a)3en, $% ,he 3$ne,ar) awar+ was %easi'#e &n+er ,he circ&3s,ances. The C$&r, +e%ers,
as i, sh$&#+, ,$ ,he c$33$n Jn+ing $% ,he NLRC an+ C$&r, $% A**ea#s since ,he iss&e $% ,he
eFis,ence $% s,raine+ re#a,i$ns 'e,ween ,he *ar,ies is %ac,&a# in na,&re.

12. Asian 9er/inal vs. NLRC, G.R. No. 1.-*.-, 4ece/er 19, 2""7, ci(ing S(an&ar&
#lec(ric Mfg. vs. S(an&ar& #lec(ric #/%lo$ees <nion, G.R. No. 1))111, Augus(
2., 2"".
9ac,sL
Page 1.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
R$3e$ La'rag&e =res*$n+en,? was a s,eve+$re an,ig$ e3*#$)e+ wi,h Asian Ter3ina#s, Inc.
since ,he 191(Ss. Beginning Se*,e3'er 9, 199, res*$n+en, %ai#e+ ,$ re*$r, %$r w$r< a##ege+#)
'eca&se he was arres,e+ an+ *#ace+ in +e,en,i$n %$r reas$ns n$, re#a,e+ ,$ his w$r<. A%,er
res*$n+en, ha+ 'een a'sen, %$r 3$re ,han $ne )ear, Asian Ter3ina#s, Inc., ,hr$&gh A,,).
R$+$#%$ G. C$rvi,e, 6r., =*e,i,i$ners? sen, hi3 =res*$n+en,? a #e,,er, +a,e+ 7ece3'er !", 199.,
a, his #as, <n$wn a++ress a, Area H, Par$#a, T$n+$, Mani#a, reA&iring hi3 ,$ eF*#ain wi,hin "!
h$&rs wh) he sh$&#+ n$, s&Ker +isci*#inar) *ena#,) %$r his *r$#$nge+ a'sence. The %$##$wing
3$n,h, *e,i,i$ner sen, res*$n+en, an$,her n$,ice $% si3i#ar ,en$r. 9ina##), $n 9e'r&ar) 1, 1992,
*e,i,i$ner iss&e+ a 3e3$ran+&3 s,a,ingL 9$r having inc&rre+ a'sence wi,h$&, $Icia# #eave
=AW:L? %r$3 ( Se*,e3'er 199 &* ,$ ,he *resen, a%,er )$& were *&, 'ehin+ 'ars +&e ,$ )$&r
inv$#ve3en, in a <i##ing inci+en,, )$&r e3*#$)3en, is here') ,er3ina,e+ %$r ca&se eKec,ive
IMME7IATEL@. 9$##$wing his acA&i,,a# an+ re#ease %r$3 +e,en,i$n, res*$n+en, re*$r,e+ %$r w$r<
$n 6&#) , 199- '&, was a+vise+ ') *e,i,i$ners ,$ J#e a new a**#ica,i$n s$ ,ha, he 3a) 'e
rehire+.Th&s, res*$n+en, J#e+ wi,h ,he NLRC a c$3*#ain, %$r i##ega# +is3issa#, se*ara,i$n *a),
n$n5*a)3en, $% #a'$r s,an+ar+ 'eneJ,s, +a3ages an+ a,,$rne)Ss %ees.
R&#ingL
In +ec#aring ,he +is3issa# $% res*$n+en, i##ega#, ,he c$nc&rren, view $% ,he CA, NLRC an+ LA is
,ha, ,he #a,,erSs *r$#$nge+ a'sence was eFc&sa'#e, %$r i, was 'r$&gh, a'$&, ') his +e,en,i$n
%$r a#3$s, ,hree )ears %$r a cri3ina# charge ,ha, was #a,er +ec#are+ 'ase#ess. The) he#+ ,ha,
his *r$#$nge+ a'sence was n$, c$&*#e+ wi,h an in,en,i$n ,$ re#inA&ish his e3*#$)3en,, an+
,here%$re +i+ n$, c$ns,i,&,e a'an+$n3en,. Pe,i,i$ners arg&e ,ha, ,he) were E&s,iJe+ in
+is3issing res*$n+en, a%,er ,he #a,,er inc&rre+ a ,hree5)ear a'sence wi,h$&, #eave, an+
re%&se+ ,$ re*$r, %$r w$r< +es*i,e severa# n$,ices. Pe,i,i$ners arg&e ,ha, res*$n+en,Ss
*r$#$nge+ a'sence was n$, E&s,iJe+ $r eFc&se+ ') his s$5ca##e+ +e,en,i$n, which re3aine+ a
3ere a##ega,i$n ,ha, was never A&i,e s&'s,an,ia,e+ ') an) %$r3 $% $Icia# +$c&3en,a,i$n. The
%$reg$ing arg&3en,s $% *e,i,i$ners are s*eci$&s. I, cann$, 'e gainsai+ ,ha, res*$n+en, was in
+e,en,i$n +&ring ,he en,ire *eri$+ $% his a'sence %r$3 w$r< an+, 3$re i3*$r,an,#), ,ha, his
si,&a,i$n was <n$wn ,$ *e,i,i$ners. I, is $% rec$r+ ,ha, in ,he 9e'r&ar) 1, 1992 ,er3ina,i$n
n$,ice i, iss&e+, *e,i,i$ners eF*ress#) ac<n$w#e+ge+ ,ha, res*$n+en, 'egan inc&rring
a'sences wi,h$&, #eave Ma%,er /he was0 *&, 'ehin+ 'ars +&e ,$ /his0 inv$#ve3en, in a <i##ing
inci+en,.N I, c#ear#) in+ica,es ,ha, *e,i,i$ners <new ear#) $n $% ,he si,&a,i$n $% res*$n+en,. I,
a#s$ eF*#ains wh) in i,s re*#) 'e%$re ,he LA, a**ea# 'e%$re ,he NLRC an+ *e,i,i$n %$r cer,i$rari
'e%$re CA, *e,i,i$ners never A&es,i$ne+ ,he ,r&,h a'$&, res*$n+en,Ss +e,en,i$n. Pe,i,i$nersS
s<e*,icis3 a'$&, res*$n+en,Ss +e,en,i$n is a 3ere a%,er,h$&gh, n$, *r$*er %$r c$nsi+era,i$n in
a *e,i,i$n %$r review &n+er R&#e .2, which 'ars rea**raisa# $% %ac,s n$, +is*&,e+ 'e%$re ,he
#$wer c$&r,s $r a#rea+) se,,#e+ in ,heir *r$cee+ings, an+ &nani3$&s#) a, ,ha,. I, is 'e)$n+
+is*&,e ,hen ,ha, ,he &n+er#)ing reas$n %$r res*$n+en,Ss a'sences was his +e,en,i$n. The
A&es,i$n is whe,her ,he CA erre+ in h$#+ing ,ha, s&ch a'sences +i+ n$, a3$&n, ,$
a'an+$n3en, as ,$ %&rnish *e,i,i$ners ca&se ,$ +is3iss res*$n+en,. T$ E&s,i%) ,he +is3issa# $%
res*$n+en, %$r a'an+$n3en,, *e,i,i$ners sh$&#+ have es,a'#ishe+ ') c$ncre,e evi+ence ,he
c$nc&rrence $% ,w$ e#e3en,sL Jrs,, ,ha, res*$n+en, ha+ ,he in,en,i$n ,$ +e#i'era,e#) an+
wi,h$&, E&s,iJca,i$n a'an+$n his e3*#$)3en, $r re%&se ,$ res&3e his w$r<O an+ sec$n+, ,ha,
res*$n+en, *er%$r3e+ $ver, ac,s %r$3 which i, 3a) 'e +e+&ce+ ,ha, he n$ #$nger in,en+e+ ,$
w$r<. Pe,i,i$ners %ai#e+ ,$ +ischarge s&ch '&r+en $% *r$$%. Res*$n+en,Ss a'sences, even a%,er
n$,ice ,$ re,&rn ,$ w$r<, cann$, 'e eA&a,e+ wi,h a'an+$n3en,, es*ecia##) when we ,a<e in,$
acc$&n, ,ha, ,he #a,,er inc&rre+ sai+ a'sences &nwi##ing#) an+ wi,h$&, %a&#,. A'sences inc&rre+
') an e3*#$)ee wh$ is *reven,e+ %r$3 re*$r,ing %$r w$r< +&e ,$ his +e,en,i$n ,$ answer
s$3e cri3ina# charge is eFc&sa'#e i% his +e,en,i$n is 'ase#ess, in ,ha, ,he cri3ina# charge
agains, hi3 is n$, a, a## s&**$r,e+ ') s&Icien, evi+ence. In Mag,$,$ v. Na,i$na# La'$r
Re#a,i$ns C$33issi$n as we## as Pe+r$s$ v. Cas,r$, we +ec#are+ s&ch a'sences as n$,
Page 1..
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c$ns,i,&,ive $% a'an+$n3en,, an+ he#+ ,he +is3issa# $% ,he e3*#$)ee5+e,ainee inva#i+. We
recen,#) rei,era,e+ ,his r&#ing in S,an+ar+ E#ec,ric Man&%ac,&ring C$r*$ra,i$n v. S,an+ar+
E#ec,ric E3*#$)ees >ni$n5NA9L>5HM>, vi4.L
The %ac,s in Pe+r$s$ v. Cas,r$ are si3i#ar ,$ ,he se, $% %ac,s in ,he *resen, case. The *e,i,i$ners
,herein were arres,e+ an+ +e,aine+ ') ,he 3i#i,ar) a&,h$ri,ies ') vir,&e $% a Presi+en,ia#
C$33i,3en, :r+er a##ege+#) %$r ,he c$33issi$n $% C$ns*irac) ,$ C$33i, Re'e##i$n &n+er
Ar,ic#e 1- $% ,he RPC. As a res&#,, ,heir e3*#$)er hire+ s&'s,i,&,e w$r<ers ,$ av$i+ +isr&*,i$n
$% w$r< an+ '&siness $*era,i$ns. The) were re#ease+ when ,he charges agains, ,he3 were n$,
*r$ven. A%,er incarcera,i$n, ,he) re*$r,e+ 'ac< ,$ w$r<, '&, were re%&se+ a+3issi$n ') ,heir
e3*#$)er. The La'$r Ar'i,er an+ ,he NLRC s&s,aine+ ,he va#i+i,) $% ,heir +is3issa#.
Never,he#ess, ,his C$&r, again he#+ ,ha, ,he +is3isse+ e3*#$)ees sh$&#+ 'e reins,a,e+ ,$ ,heir
%$r3er *$si,i$ns, since ,heir se*ara,i$n %r$3 e3*#$)3en, was %$&n+e+ $n a %a#se $r n$n5
eFis,en, ca&seO hence, i##ega#.
Res*$n+en, 6avierGs a'sence %r$3 A&g&s, 9, 1992 cann$, 'e +ee3e+ as an a'an+$n3en, $%
his w$r<. A'an+$n3en, is a 3a,,er $% in,en,i$n an+ cann$, #igh,#) 'e in%erre+ $r #ega##)
*res&3e+ %r$3 cer,ain eA&iv$ca# ac,s. T$ c$ns,i,&,e as s&ch, ,w$ reA&isi,es 3&s, c$nc&rL Jrs,,
,he e3*#$)ee 3&s, have %ai#e+ ,$ re*$r, %$r w$r< $r 3&s, have 'een a'sen, wi,h$&, va#i+ $r
E&s,iJa'#e reas$nO an+ sec$n+, ,here 3&s, have 'een a c#ear in,en,i$n $n ,he *ar, $% ,he
e3*#$)ee ,$ sever ,he e3*#$)er5e3*#$)ee re#a,i$nshi* as 3ani%es,e+ ') s$3e $ver, ac,s,
wi,h ,he sec$n+ e#e3en, 'eing ,he 3$re +e,er3ina,ive %ac,$r. A'an+$n3en, as a E&s, gr$&n+
%$r +is3issa# reA&ires c#ear, wi##%&#, +e#i'era,e, an+ &nE&s,iJe+ re%&sa# $% ,he e3*#$)ee ,$
res&3e his e3*#$)3en,. Mere a'sence $r %ai#&re ,$ re*$r, %$r w$r<, even a%,er n$,ice ,$
re,&rn, is n$, ,an,a3$&n, ,$ a'an+$n3en,. M$re$ver, res*$n+en, 6avierGs acA&i,,a# %$r ra*e
3a<es i, 3$re c$3*e##ing ,$ view ,he i##ega#i,) $% his +is3issa#. The ,ria# c$&r, +is3isse+ ,he
case %$r Mins&Icienc) $% evi+ence,N an+ s&ch r&#ing is ,an,a3$&n, ,$ an acA&i,,a# $% ,he cri3e
charge+, an+ *r$$% ,ha, res*$n+en, 6avierGs arres, an+ +e,en,i$n were wi,h$&, %ac,&a# an+
#ega# 'asis in ,he Jrs, *#ace. Si3i#ar#), res*$n+en, herein was *reven,e+ %r$3 re*$r,ing %$r
w$r< ') reas$n $% his +e,en,i$n. Tha, his +e,en,i$n ,&rne+ $&, ,$ 'e wi,h$&, 'asis, as ,he
cri3ina# charge &*$n which sai+ +e,en,i$n was $r+ere+ was #a,er +is3isse+ %$r #ac< $%
evi+ence, 3a+e ,he a'sences he inc&rre+ as a c$nseA&ence ,here$% n$, $n#) inv$#&n,ar) '&,
a#s$ eFc&sa'#e. I, was cer,ain#) n$, ,he in,en,i$n $% res*$n+en, ,$ a'sen, hi3se#%, $r his %a&#,
,ha, he was +e,aine+ $n an err$ne$&s charge. In n$ wa) 3a) ,he a'sences he inc&rre+ &n+er
s&ch circ&3s,ances 'e #i<ene+ ,$ a'an+$n3en,. The CA, ,here%$re, c$rrec,#) he#+ ,ha, ,he
+is3issa# $% res*$n+en, was i##ega#, %$r ,he a'sences he inc&rre+ ') reas$n $% his &nwarran,e+
+e,en,i$n +i+ n$, a3$&n, ,$ a'an+$n3en,.
13. S/ar( Co//unica(ions v. As(orga, G.R. No. 1*-1*2, 2anuar$ 2-, 2""-
9ac,sL
Regina M. As,$rga =As,$rga? was e3*#$)e+ ') res*$n+en, SMART $n Ma) 1, 199" as 7is,ric,
Sa#es Manager $% ,he C$r*$ra,e Sa#es Mar<e,ing Gr$&*B 9iFe+ Services 7ivisi$n =CSMGB9S7?.

In 9e'r&ar) 1991, SMART #a&nche+ an $rgani4a,i$na# rea#ign3en, ,$ achieve 3$re eIcien,
$*era,i$ns. This was 3a+e <n$wn ,$ ,he e3*#$)ees. Par, $% ,he re$rgani4a,i$n was ,he
$&,s$&rcing $% ,he 3ar<e,ing an+ sa#es %$rce. Th&s, SMART en,ere+ in,$ a E$in, ven,&re
agree3en, wi,h NTT $% 6a*an, an+ %$r3e+ SMART5NTT M&#,i3e+ia, Inc$r*$ra,e+ =SNMI?. Since
SNMI was %$r3e+ ,$ +$ ,he sa#es an+ 3ar<e,ing w$r<, SMART a'$#ishe+ ,he CSMGB9S7,
As,$rgaGs +ivisi$n.
Page 1.2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4

T$ s$%,en ,he '#$w $% ,he rea#ign3en,, SNMI agree+ ,$ a's$r' ,he CSMG *ers$nne# wh$ w$&#+
'e rec$33en+e+ ') SMART. SMART ,hen c$n+&c,e+ a *er%$r3ance eva#&a,i$n $% CSMG
*ers$nne# an+ ,h$se wh$ garnere+ ,he highes, ra,ings were %av$ra'#) rec$33en+e+ ,$ SNMI.
As,$rga #an+e+ #as, in ,he *er%$r3ance eva#&a,i$n, ,h&s, she was n$, rec$33en+e+ ') SMART.
SMART, n$ne,he#ess, $Kere+ her a s&*ervis$r) *$si,i$n in ,he C&s,$3er Care 7e*ar,3en,, '&,
she re%&se+ ,he $Ker 'eca&se ,he *$si,i$n carrie+ #$wer sa#ar) ran< an+ ra,e.

7es*i,e ,he a'$#i,i$n $% ,he CSMGB9S7, As,$rga c$n,in&e+ re*$r,ing %$r w$r<. B&, $n March ,
1991, SMART iss&e+ a 3e3$ran+&3 a+vising As,$rga $% ,he ,er3ina,i$n $% her e3*#$)3en,
$n gr$&n+ $% re+&n+anc), eKec,ive A*ri# , 1991. As,$rga receive+ i, $n March 1-, 1991.

The ,er3ina,i$n $% her e3*#$)3en, *r$3*,e+ As,$rga ,$ J#e a C$3*#ain, %$r i##ega# +is3issa#,
n$n5*a)3en, $% sa#aries an+ $,her 'eneJ,s wi,h *ra)er %$r 3$ra# an+ eFe3*#ar) +a3ages
agains, SMART an+ Ann Margare, 8. San,iag$ =San,iag$?. She c#ai3e+ ,ha, a'$#ishing CSMG
an+, c$nseA&en,#), ,er3ina,ing her e3*#$)3en, was i##ega# %$r i, vi$#a,e+ her righ, ,$ sec&ri,)
$% ,en&re. She a#s$ *$si,e+ ,ha, i, was i##ega# %$r an e3*#$)er, #i<e SMART, ,$ c$n,rac, $&,
services which wi## +is*#ace ,he e3*#$)ees, es*ecia##) i% ,he c$n,rac,$r is an in5h$&se agenc).

SMART res*$n+e+ ,ha, ,here was va#i+ ,er3ina,i$n. I, arg&e+ ,ha, As,$rga was +is3isse+ ')
reas$n $% re+&n+anc), which is an a&,h$ri4e+ ca&se %$r ,er3ina,i$n $% e3*#$)3en,, an+ ,he
+is3issa# was eKec,e+ in acc$r+ance wi,h ,he reA&ire3en,s $% ,he La'$r C$+e. The
re+&n+anc) $% As,$rgas *$si,i$n was ,he res&#, $% ,he a'$#i,i$n $% CSMG an+ ,he crea,i$n $% a
s*ecia#i4e+ an+ 3$re ,echnica##) eA&i**e+ SNMI, which is a va#i+ an+ #egi,i3a,e eFercise $%
3anage3en, *rer$ga,ive.
Iss&eL
W:N ,he +is3issa# $% As,$rga is va#i+.
R&#ingL
@ES. As,$rgaGs +is3issa# is %$&n+e+ &*$n a&,h$ri4e+ ca&se.
As,$rga was ,er3ina,e+ +&e ,$ re+&n+anc), which is $ne $% ,he a&,h$ri4e+ ca&ses %$r ,he
+is3issa# $% an e3*#$)ee. The na,&re $% re+&n+anc) as an a&,h$ri4e+ ca&se %$r +is3issa# is
eF*#aine+ in ,he #ea+ing case $% :ilts$ire 3ile Co., (n. v. National Labor Relations Commission,
vizL

F F F re+&n+anc) in an e3*#$)ers *ers$nne# %$rce necessari#) $r even $r+inari#) re%ers ,$
+&*#ica,i$n $% w$r<. Tha, n$ $,her *ers$n was h$#+ing ,he sa3e *$si,i$n ,ha, *riva,e
res*$n+en, he#+ *ri$r ,$ ,er3ina,i$n $% his services +$es n$, sh$w ,ha, his *$si,i$n ha+ n$,
'ec$3e re+&n+an,. In+ee+, in an) we## $rgani4e+ '&siness en,er*rise, i, w$&#+ 'e s&r*rising ,$
Jn+ +&*#ica,i$n $% w$r< an+ ,w$ =!? $r 3$re *e$*#e +$ing ,he w$r< $% $ne *ers$n. We 'e#ieve
,ha, re+&n+anc), %$r *&r*$ses $% ,he La'$r C$+e, eFis,s where ,he services $% an e3*#$)ee
are in eFcess $% wha, is reas$na'#) +e3an+e+ ') ,he ac,&a# reA&ire3en,s $% ,he en,er*rise.
S&ccinc,#) *&,, a *$si,i$n is re+&n+an, where i, is s&*erT&$&s, an+ s&*erT&i,) $% a *$si,i$n $r
*$si,i$ns 3a) 'e ,he $&,c$3e $% a n&3'er $% %ac,$rs, s&ch as $verhiring $% w$r<ers,
+ecrease+ v$#&3e $% '&siness, $r +r$**ing $% a *ar,ic&#ar *r$+&c, #ine $r service ac,ivi,)
*revi$&s#) 3an&%ac,&re+ $r &n+er,a<en ') ,he en,er*rise.

The charac,eri4a,i$n $% an e3*#$)ees services as s&*erT&$&s $r n$ #$nger necessar) an+,
,here%$re, *r$*er#) ,er3ina'#e, is an eFercise $% '&siness E&+g3en, $n ,he *ar, $% ,he
Page 1.-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
e3*#$)er. The wis+$3 an+ s$&n+ness $% s&ch charac,eri4a,i$n $r +ecisi$n is n$, s&'Eec, ,$
+iscre,i$nar) review *r$vi+e+, $% c$&rse, ,ha, a vi$#a,i$n $% #aw $r ar'i,rar) $r 3a#ici$&s ac,i$n
is n$, sh$wn.

As,$rga c#ai3s ,ha, ,he ,er3ina,i$n $% her e3*#$)3en, was i##ega# an+ ,ain,e+ wi,h 'a+ %ai,h.
She asser,s ,ha, ,he re$rgani4a,i$n was +$ne in $r+er ,$ ge, ri+ $% her. B&, eFce*, %$r her
'are%ace+ a##ega,i$n, n$ c$nvincing evi+ence was $Kere+ ,$ *r$ve i,. This C$&r, Jn+s i,
eF,re3e#) +iIc&#, ,$ 'e#ieve ,ha, SMART w$&#+ en,er in,$ a E$in, ven,&re agree3en, wi,h NTT,
%$r3 SNMI an+ a'$#ish CSMGB9S7 si3*#) %$r ,he s$#e *&r*$se $% easing $&, a *ar,ic&#ar
e3*#$)ee, s&ch as As,$rga. M$re$ver, As,$rga never +enie+ ,ha, SMART $Kere+ her a
s&*ervis$r) *$si,i$n in ,he C&s,$3er Care 7e*ar,3en,, '&, she re%&se+ ,he $Ker 'eca&se ,he
*$si,i$n carrie+ a #$wer sa#ar) ran< an+ ra,e. I% in+ee+ SMART si3*#) wan,e+ ,$ ge, ri+ $% her,
i, w$&#+ n$, have $Kere+ her a *$si,i$n in an) +e*ar,3en, in ,he en,er*rise.

As,$rga a#s$ s,a,es ,ha, ,he E&s,iJca,i$n a+vance+ ') SMART is n$, ,r&e 'eca&se ,here was n$
c$3*e##ing ec$n$3ic reas$n %$r re+&n+anc). B&, c$n,rar) ,$ her c#ai3, an e3*#$)er is n$,
*rec#&+e+ %r$3 a+$*,ing a new *$#ic) c$n+&cive ,$ a 3$re ec$n$3ica# an+ eKec,ive
3anage3en, even i% i, is n$, eF*eriencing ec$n$3ic reverses. Nei,her +$es ,he #aw reA&ire
,ha, ,he e3*#$)er sh$&#+ s&Ker Jnancia# #$sses 'e%$re he can ,er3ina,e ,he services $% ,he
e3*#$)ee $n ,he gr$&n+ $% re+&n+anc).

We agree wi,h ,he CA ,ha, ,he $rgani4a,i$na# rea#ign3en, in,r$+&ce+ ') SMART, which
c&#3ina,e+ in ,he a'$#i,i$n $% CSMGB9S7 an+ ,er3ina,i$n $% As,$rgas e3*#$)3en, was an
h$nes, eK$r, ,$ 3a<e SMARTs sa#es an+ 3ar<e,ing +e*ar,3en,s 3$re eIcien, an+
c$3*e,i,ive. As ,he CA ha+ ,a<en *ains ,$ e#&ci+a,eL

F F F a care%&# an+ assi+&$&s review $% ,he rec$r+s wi## )ie#+ n$ $,her c$nc#&si$n ,han ,ha, ,he
re$rgani4a,i$n &n+er,a<en ') SMART is %$r n$ *&r*$se $,her ,han i,s +ec#are+ $'Eec,ive as a
#a'$r an+ c$s, savings +evice. In+ee+, ,his C$&r, Jn+s n$ %a&#, in SMARTs +ecisi$n ,$ $&,s$&rce
,he c$r*$ra,e sa#es 3ar<e, ,$ SNMI in $r+er ,$ a,,ain grea,er *r$+&c,ivi,). /As,$rga0 'e#$nge+
,$ ,he Sa#es Mar<e,ing Gr$&* &n+er ,he 9iFe+ Services 7ivisi$n =CSMGB9S7?, a +is,inc, sa#es
%$rce $% SMART in charge $% se##ing SMARTs ,e#ec$33&nica,i$ns services ,$ ,he c$r*$ra,e
3ar<e,. SMART, ,$ ens&re i, can res*$n+ A&ic<#), eIcien,#) an+ TeFi'#) ,$ i,s c&s,$3ers
reA&ire3en,, a'$#ishe+ CSMGB9S7 an+ sh$r,#) ,herea%,er assigne+ i,s %&nc,i$ns ,$ new#)5
crea,e+ SNMI M&#,i3e+ia Inc$r*$ra,e+, a E$in, ven,&re c$3*an) $% SMART an+ NTT $% 6a*an,
%$r ,he reas$n ,ha, CSMGB9S7 +$es n$, have ,he necessar) ,echnica# eF*er,ise reA&ire+ %$r ,he
va#&e a++e+ services. B) ,rans%erring ,he +&,ies $% CSMGB9S7 ,$ SNMI, SMART has crea,e+ a
3$re c$3*e,en, an+ s*ecia#i4e+ $rgani4a,i$n ,$ *er%$r3 ,he w$r< reA&ire+ %$r c$r*$ra,e
acc$&n,s. I, is a#s$ re#ieve+ SMART $% a## a+3inis,ra,ive c$s,s 3anage3en,, ,i3e an+ 3$ne)5
nee+e+ in 3ain,aining ,he CSMGB9S7. The +e,er3ina,i$n ,$ $&,s$&rce ,he +&,ies $% ,he
CSMGB9S7 ,$ SNMI was, ,$ :&r 3in+, a s$&n+ '&siness E&+g3en, 'ase+ $n re#evan, cri,eria
an+ is ,here%$re a #egi,i3a,e eFercise $% 3anage3en, *rer$ga,ive.

In+ee+, $&, $% $&r c$ncern %$r ,h$se #esser circ&3s,ance+ in #i%e, ,his C$&r, has inc#ine+
,$war+s ,he w$r<er an+ &*he#+ his ca&se in 3$s, $% his c$nTic,s wi,h his e3*#$)er. This
%av$re+ ,rea,3en, is c$ns$nan, wi,h ,he s$cia# E&s,ice *$#ic) $% ,he C$ns,i,&,i$n. B&, whi#e
,i#,ing ,he sca#es $% E&s,ice in %av$r $% w$r<ers, ,he %&n+a3en,a# #aw a#s$ g&aran,ees ,he righ,
$% ,he e3*#$)er ,$ reas$na'#e re,&rns %$r his inves,3en,. In ,his #igh,, we 3&s, ac<n$w#e+ge
,he *rer$ga,ive $% ,he e3*#$)er ,$ a+$*, s&ch 3eas&res as wi## *r$3$,e grea,er eIcienc),
re+&ce $verhea+ c$s,s an+ enhance *r$s*ec,s $% ec$n$3ic gains, a#'ei, a#wa)s wi,hin ,he
%ra3ew$r< $% eFis,ing #aws. Acc$r+ing#), we s&s,ain ,he re$rgani4a,i$n an+ re+&n+anc)
*r$gra3 &n+er,a<en ') SMART.

Page 1."
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
H$wever, as a*,#) %$&n+ ') ,he CA, SMART %ai#e+ ,$ c$3*#) wi,h ,he 3an+a,e+ $ne =1? 3$n,h
n$,ice *ri$r ,$ ,er3ina,i$n. The rec$r+ is c#ear ,ha, As,$rga receive+ ,he n$,ice $% ,er3ina,i$n
$n#) $n March 1-, 1991 $r #ess ,han a 3$n,h *ri$r ,$ i,s eKec,ivi,) $n A*ri# , 1991. Li<ewise,
,he 7e*ar,3en, $% La'$r an+ E3*#$)3en, was n$,iJe+ $% ,he re+&n+anc) *r$gra3 $n#) $n
March -, 1991.

Ar,ic#e !1 $% ,he La'$r C$+e c#ear#) *r$vi+esL

Ar,. !1. C#$s&re $% es,a'#ish3en, an+ re+&c,i$n $% *ers$nne#. The e3*#$)er 3a) a#s$
,er3ina,e ,he e3*#$)3en, $% an) e3*#$)ee +&e ,$ ,he ins,a##a,i$n $% #a'$r saving +evices,
re+&n+anc), re,rench3en, ,$ *reven, #$sses $r ,he c#$sing $r cessa,i$n $% $*era,i$n $% ,he
es,a'#ish3en, $r &n+er,a<ing &n#ess ,he c#$sing is %$r ,he *&r*$se $% circ&3ven,ing ,he
*r$visi$ns $% ,his Ti,#e, ') serving a wri,,en n$,ice $n ,he w$r<ers an+ ,he Minis,r) $% La'$r
an+ E3*#$)3en, a, #eas, $ne =1? 3$n,h 'e%$re ,he in,en+e+ +a,e ,here$% F F F.

SMARTs asser,i$n ,ha, As,$rga cann$, c$3*#ain $% #ac< $% n$,ice 'eca&se ,he $rgani4a,i$na#
rea#ign3en, was 3a+e <n$wn ,$ a## ,he e3*#$)ees as ear#) as 9e'r&ar) 1991 %ai#s ,$
*ers&a+e. As,$rgas ac,&a# <n$w#e+ge $% ,he re$rgani4a,i$n cann$, re*#ace ,he %$r3a# an+
wri,,en n$,ice reA&ire+ ') ,he #aw. In ,he wri,,en n$,ice, ,he e3*#$)ees are in%$r3e+ $% ,he
s*eciJc +a,e $% ,he ,er3ina,i$n, a, #eas, a 3$n,h *ri$r ,$ ,he eKec,ivi,) $% s&ch ,er3ina,i$n, ,$
give ,he3 s&Icien, ,i3e ,$ Jn+ $,her s&i,a'#e e3*#$)3en, $r ,$ 3a<e wha,ever
arrange3en,s are nee+e+ ,$ c&shi$n ,he i3*ac, $% ,er3ina,i$n. In ,his case, n$,wi,hs,an+ing
As,$rgas <n$w#e+ge $% ,he re$rgani4a,i$n, she re3aine+ &ncer,ain a'$&, ,he s,a,&s $% her
e3*#$)3en, &n,i# SMART gave her %$r3a# n$,ice $% ,er3ina,i$n. B&, s&ch n$,ice was receive+
') As,$rga 'are#) ,w$ =!? wee<s 'e%$re ,he eKec,ive +a,e $% ,er3ina,i$n, a *eri$+ ver) 3&ch
sh$r,er ,han ,ha, reA&ire+ ') #aw.

Be ,ha, as i, 3a), ,his *r$ce+&ra# inJr3i,) w$&#+ n$, ren+er ,he ,er3ina,i$n $% As,$rgas
e3*#$)3en, i##ega#. The va#i+i,) $% ,er3ina,i$n can eFis, in+e*en+en,#) $% ,he *r$ce+&ra#
inJr3i,) $% ,he +is3issa#.

The CA, ,here%$re, c$33i,,e+ n$ reversi'#e err$r in s&s,aining As,$rgas +is3issa# an+ a, ,he
sa3e ,i3e, awar+ing in+e3ni,) %$r vi$#a,i$n $% As,$rgaSs s,a,&,$r) righ,s.

H$wever, we Jn+ ,he nee+ ,$ 3$+i%), ') increasing, ,he in+e3ni,) awar+e+ ') ,he CA ,$
As,$rga, as a sanc,i$n $n SMART %$r n$n5c$3*#iance wi,h ,he $ne53$n,h 3an+a,$r) n$,ice
reA&ire3en,, in #igh, $% $&r r&#ing in )a+a 3ood Proessing Corporation v. Paot, viz.L

/I0% ,he +is3issa# is 'ase+ $n a E&s, ca&se &n+er Ar,ic#e !1! '&, ,he e3*#$)er %ai#e+ ,$ c$3*#)
wi,h ,he n$,ice reA&ire3en,, ,he sanc,i$n ,$ 'e i3*$se+ &*$n hi3 sh$&#+ 'e tempered
'eca&se ,he +is3issa# *r$cess was, in eKec,, ini,ia,e+ ') an ac, i3*&,a'#e ,$ ,he e3*#$)ee,
an+ =!? i% ,he +is3issa# is 'ase+ $n an a&,h$ri4e+ ca&se &n+er Ar,ic#e !1 '&, ,he e3*#$)er
%ai#e+ ,$ c$3*#) wi,h ,he n$,ice reA&ire3en,, ,he sanc,i$n sh$&#+ 'e sti#er 'eca&se ,he
+is3issa# *r$cess was ini,ia,e+ ') ,he e3*#$)ers eFercise $% his 3anage3en, *rer$ga,ive.

We +ee3 i, *r$*er ,$ increase ,he a3$&n, $% ,he *ena#,) $n SMART ,$ P2(,(((.((.

As *r$vi+e+ in Ar,ic#e !1 $% ,he La'$r C$+e, As,$rga is, #i<ewise, en,i,#e+ ,$ se*ara,i$n *a)
eA&iva#en, ,$ a, #eas, $ne =1? 3$n,h sa#ar) $r ,$ a, #eas, $ne =1? 3$n,hs *a) %$r ever) )ear $%
service, whichever is higher. The rec$r+s sh$w ,ha, As,$rgas #eng,h $% service is #ess ,han a
)ear. She is, ,here%$re, a#s$ en,i,#e+ ,$ se*ara,i$n *a) eA&iva#en, ,$ $ne =1? 3$n,h *a).

Page 1.1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
H$wever, ,he awar+ $% 'ac<wages ,$ As,$rga ') ,he CA sh$&#+ 'e +e#e,e+ %$r #ac< $% 'asis.
Bac<wages is a re#ie% given ,$ an i##ega##) +is3isse+ e3*#$)ee. Th&s, 'e%$re 'ac<wages 3a)
'e gran,e+, ,here 3&s, 'e a Jn+ing $% &nE&s, $r i##ega# +is3issa# %r$3 w$r<. Since As,$rgas
+is3issa# is %$r an a&,h$ri4e+ ca&se, she is n$, en,i,#e+ ,$ 'ac<wages. The CAs awar+ $%
'ac<wages is ,$,a##) inc$nsis,en, wi,h i,s Jn+ing $% va#i+ +is3issa#.
1*. #nri?ue0 v. 'an: of (he 3hili%%ine !slan&s, G.R. No. 172-12, 6eruar$ 12, 2""-
9ac,sL
EnriA&e4 an+ Sia were ,he 'ranch 3anager an+ assis,an, 'ranch 3anager, res*ec,ive#), $% ,he
BPI5Bac$#$+ Singcang Branch. EnriA&e4 was Jrs, e3*#$)e+ ') BPI in 19"1 an+ ha+ 'een an
e3*#$)ee ,here$% %$r ! )ears a, ,he ,i3e $% her ,er3ina,i$n, whereas Sia ha+ 'een wi,h since
19"., $r %$r a ,$,a# $% !9 )ears a, ,he ,i3e $% his +is3issa#. Res*$n+en, L&is A. P&en,eve##a
=P&en,eve##a? is $ne $% res*$n+en,s *rinci*a# $Icers an+ was i3*#ea+e+ in his *ers$na#
ca*aci,).
Petitioner7s version of t$e fats<
Pe,i,i$ners 3ain,ain ,ha, $n !" 7ece3'er !((!, ,heir 'ranch eF*erience+ a heav) v$#&3e $%
,ransac,i$ns $wing ,$ ,he %ac, ,ha, i, was ,he #as, 'an<ing +a) $% ,he )ear. When 'an<ing
h$&rs ca3e ,$ a c#$se, ,e##er Gera#+ine 7escar,in =7escar,in? *&r*$r,e+#) +isc$vere+ ,ha, she
ha+ a cash sh$r,age $% P-,(((.(( an+ in%$r3e+ Sia a'$&, i,. Sia, in ,&rn, in%$r3e+ EnriA&e4 $%
,he *r$'#e3 an+ was +irec,e+ ,$ review ,he +a)s ,ransac,i$ns ,$ ,race i,s ca&se.

7escar,in c#ai3e+ ,ha, ,he +iscre*anc) was +&e ,$ an inn$cen, $versigh, an+ reca##e+ ,ha, ,he
&nacc$&n,e+ sh$r,age was +&e ,$ ,he %ai#&re $% her 3$,her5in5#aw, Re3e+i$s 7escar,in
=Re3e+i$s?, ,$ sign ,he wi,h+rawa# s#i* when ,he #a,,er wi,h+rew P-,(((.(( ear#ier ,ha, +a).
Wi,h ,ha, eF*#ana,i$n, EnriA&e4 +irec,e+ 7escar,in an+ her c$5,e##er Eve#)n 9regi# =9regi#? ,$
s&'3i, ,heir wri,,en 3e3$ran+&3 $% ,he inci+en,. 7escar,in was *er3i,,e+ ,$ #eave ,he 'an<
,$ #$$< %$r Re3e+i$s s$ ,ha, ,he #a,,er c$&#+ sign ,he wi,h+rawa# s#i*. A, ar$&n+ "L(( *.3., she
re,&rne+ ,$ ,he 'an< wi,h ,he signe+ wi,h+rawa# s#i* an+ +e'i,e+ ,he a3$&n, %r$3 ,he c#ien,s
acc$&n,. Th&s, *e,i,i$ners aver, ,he ,ransac,i$n was reg&#ari4e+ 'e%$re ,he en+ $% ,he +a).

I, is ,he *$si,i$n $% *e,i,i$ners ,ha, as ,here was nei,her sh$r,age n$r #$ss ,$ ,he 'an<
'eca&se ,he ini,ia# +iscre*anc) was acc$&n,e+ %$r an+ ,ha, i, was +&e ,$ a 3ere $versigh,,
,he) *&, ,he 3a,,er ,$ res,. In ,he 3ean,i3e, Sia 'egan ,$ win+ &* his aKairs as !" 7ece3'er
!((! was his #as, w$r<ing +a) wi,h ,he 'an< 'e%$re g$ing $n ,er3ina# #eave *ri$r ,$ his
$*,i$na# re,ire3en,.
BP(7s version<
BPI has a +iKeren, versi$n $% wha, ,rans*ire+ $n !" 7ece3'er !((!. Acc$r+ing ,$ ,he3, ,e##er
7escar,ins sh$r,age $% P-,(((.((, which she c$nJ+e+ ,$ her c$5,e##er 9regi#, was inc&rre+
'eca&se she ha+ ,e3*$rari#) '$rr$we+ ,he 3$ne) ,ha, wee< ,$ *a) her Jnancia# $'#iga,i$ns
'&, in,en+e+ ,$ re,&rn ,he sa3e $n ,he Jrs, wee< $% 6an&ar). Te##er 9regi# re*$r,e+ ,he 3a,,er
,$ Sia an+ EnriA&e4, '$,h $% wh$3 s&gges,e+ ,ha, ,e##er 7escar,in J## ,he sh$r,age wi,h a #$an
%r$3 her %a3i#). Te##er 7escar,in re*#ie+ ,ha, her %a3i#) +i+ n$, have ,he 3$ne), she ins,ea+
'$rr$we+ ,he a3$&n, %r$3 her in5#aws. Th&s, a, 2L!1 *.3., ,e##er 7escar,in *$s,e+ ,he
&nsigne+ wi,h+rawa# s#i* %$r ,he a3$&n, $% P-,(((.(( agains, ,he E$in, acc$&n, $% her
*aren,s5in5#aw. As ,he a3$&n, eFcee+e+ ,he T$$r #i3i, %$r ,e##ers which w$&#+ reA&ire ,he
a**r$va# $% a s&*eri$r $Icer, ei,her EnriA&e4 $r Sia a**r$ve+ ,he ,ransac,i$n a, 2L!! *.3. as
reTec,e+ $n ,he acc$&n, rec$r+s. Te##er 7escar,in ,herea%,er #e%, ,he 'an< ,$ sec&re ,he
Page 1.9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
signa,&re $% her 3$,her5in5#aw Re3e+i$s an+ re,&rne+ a, *as, "L(( *.3. wi,h ,he signe+
wi,h+rawa# s#i*.
Th&s, s$3e,i3e in 9e'r&ar) !((, res*$n+en, P&en,eve##a ini,ia,e+ %&r,her inves,iga,i$n $n
,he inci+en,. La,er, $n March !((, ,e##er 9regi# re,rac,e+ her $rigina# s,a,e3en, an+ ins,ea+
eFec&,e+ an$,her #e,,er c#ai3ing ,ha, ,here was a c$ver5&* $% ,he sh$r,age $n ,he +a) in
A&es,i$n. Res*$n+en,s asser, ,ha, ,he inves,iga,i$n c$n+&c,e+ ') ,he A&+i,ing 7ivisi$n $% BPI
'$#s,ere+ ,e##er 9regi#s c#ai3s $% irreg&#ari,) as ,he a&+i, re*$r, +isc#$se+ ,ha, *e,i,i$ners %ai#e+
,$ 3a<e ,he necessar) re*$r, $n ,he sh$r,age an+ ins,ea+ assis,e+ in c$vering5&* ,e##er
7escar,ins wr$ng+$ing.

:n !2 A*ri# !((, *e,i,i$ners were ins,r&c,e+ ,$ re*$r, ,$ ,he BPI hea+ $Ice %$r *$#)gra*h
,es,ing. Whi#e ,he) eF*resse+ ,heir wi##ingness ,$ 'e in,erviewe+, *e,i,i$ners $'Eec,e+ ,$ ,he
*$#)gra*h ,es,. :n !" 6&ne !((, *e,i,i$ners receive+ sh$w5ca&se 3e3$s +irec,ing ,he3 ,$
eF*#ain in wri,ing wh) ,he) sh$&#+ n$, 'e sanc,i$ne+ %$r c$nTic, $% in,eres, an+ 'reach $%
,r&s,. Pe,i,i$ners s&'3i,,e+ ,heir res*ec,ive re*#ies in which ,he) +enie+ ,he charges agains,
,he3. :n1. 6&#) !((, a c$33i,,ee $% res*$n+en, 'an< c$n+&c,e+ a hearing $% ,he case an+
as *ar, $% ,he inves,iga,i$n, se*ara,e#) in,erviewe+ *e,i,i$ners an+ ,e##ers 7escar,in an+ 9regi#.
:n Se*,e3'er !((, *e,i,i$ners were +is3isse+ %r$3 e3*#$)3en, $n gr$&n+s $% 'reach $%
,r&s, an+ c$nJ+ence an+ +ish$nes,).
Iss&eL
Whe,her $r n$, ,here were va#i+ gr$&n+s %$r ,er3ina,i$n $% e3*#$)3en,.
R&#ingL BPI ha+ E&s, ca&se ,$ ,er3ina,e ,heir e3*#$)3en,.
There is n$ +en)ing ,ha, #$ss $% ,r&s, an+ c$nJ+ence is a va#i+ gr$&n+ %$r ,er3ina,i$n $%
e3*#$)3en,.

Hence, ,he 'asic reA&isi,e %$r +is3issa# $n ,he gr$&n+ $% #$ss $% c$nJ+ence is
,ha,
,he e3*#$)ee c$ncerne+ h$#+s a *$si,i$n $% ,r&s, an+ c$nJ+ence

$r
is r$&,ine#) charge+ wi,h ,he care an+ c&s,$+) $% ,he e3*#$)ers 3$ne) $r *r$*er,).
M$re$ver, ,he 'reach 3&s, 'e re#a,e+ ,$ ,he *er%$r3ance $% ,he e3*#$)ees %&nc,i$n.

A#s$, i,
3&s, 'e sh$wn ,ha, ,he
e3*#$)ee is a 3anageria# e3*#$)ee, since ,he ,er3 ,r&s, an+ c$nJ+ence is res,ric,e+ ,$ sai+
c#ass $% e3*#$)ees.
The SC %$&n+ s&Icien, 'asis in evi+ence ,$ acc$r+ %&## *r$'a,ive va#&e ,$ Te##er 9regi#s
re,rac,i$n #e,,er which she #a,er aIr3e+ ,hr$&gh s&'seA&en, aI+avi,s. The in+e*en+en, a&+i,
c$n+&c,e+ ') ,he a&+i,ing +ivisi$n $% BPI n$,a'#) s&**$r,s her c#ai3 ,ha, ,he wr$ng+$ing was
c$ncea#e+ ') *e,i,i$ners %r$3 res*$n+en, 'an<. M$re$ver, a review $% ,he ,e##ers ,ransac,i$n
s&33ar)

$% ,e##er 7escar,in rein%$rces ,he c$nc#&si$n ,ha, ,he sh$r,age in her *ic$ '$F was
+&e ,$ a ,e3*$rar) '$rr$wing, ,he c$ver5&* $% which was sanc,i$ne+ ') *e,i,i$ners.

I, is #i<ewise asser,e+ ') *e,i,i$ners ,ha, &n+er BPIs 'an< *$#ic), %ai#&re ,$ re*$r, a sh$r,age is
n$, a gr$&n+ ,$ ,er3ina,e e3*#$)3en,. The arg&3en, is sh$r,5sigh,e+.

BPIs *$#ic) $n ,e##ers sh$r,ages is &na3'ig&$&s. I, reA&ires ,ha, a## sh$r,ages 'e +ec#are+
*r$*er#) an+ '$$<e+ acc$r+ing#) $n ,he sa3e +a) ,he) are inc&rre+.

9&r,her3$re, ,he sa3e
3&s, 'e re*$r,e+ ') ,he 'ranch hea+ ,$ ,he +esigna,e+ 'an< $Icers an+ +e*ar,3en,s n$,
#a,er ,han ,he sec$n+ 'an<ing +a) %r$3 ,he +a,e $% '$$<ing.
Page 12(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Ta<en ,$ge,her wi,h ,he a,,en+ing circ&3s,ances $% ,he case, ,he %ai#&re $% *e,i,i$ners ,$
re*$r, ,he cash sh$r,age $% ,e##er 7escar,in, even i% +$ne in g$$+ %ai,h, n$ne,he#ess res&#,e+ in
,heir a'e,,ing ,he +ish$nes,) c$33i,,e+ ') ,he #a,,er. >n+er ,he *ers$nne# *$#icies $% BPI, ,his
ac, $% *e,i,i$ners E&s,iJes ,heir +is3issa# even $n ,he Jrs, $Kense. Even ass&3ing ,he versi$n
$% *e,i,i$ners as ,he ,r&,h, ,he %ac, re3ains ,ha, ,he) wi##%&##) +eci+e+ agains, re*$r,ing ,he
sh$r,age ,ha, $cc&rre+. As a res&#,, in ei,her si,&a,i$n, *e,i,i$ners ac,s have ca&se+
res*$n+en,s ,$ have a #egi,i3a,e reas$n ,$ #$se ,he ,r&s, re*$se+ in ,he3 as seni$r
3anageria# e3*#$)ees. Their *ar,ici*a,i$n in ,he c$ver5&* $% ,he 3isc$n+&c, $% ,e##er 7escar,in
3a<es ,he3 &nw$r,h) $% ,he ,r&s, an+ c$nJ+ence +e3an+e+ ') ,heir *$si,i$ns.

I, is we##5se,,#e+ ,ha, ,he *$wer ,$ +is3iss an e3*#$)ee is a rec$gni4e+ *rer$ga,ive ,ha, is
inheren, in ,he e3*#$)ers righ, ,$ %ree#) 3anage an+ reg&#a,e his '&siness. An e3*#$)er
cann$, 'e eF*ec,e+ ,$ re,ain an e3*#$)ee wh$se #ac< $% 3$ra#s, res*ec, an+ #$)a#,) ,$ his
e3*#$)er $r regar+ %$r his e3*#$)ers r&#es an+ a**recia,i$n $% ,he +igni,) an+ res*$nsi'i#i,) $%
his $Ice has s$ *#ain#) an+ c$3*#e,e#) 'een 'are+.

Th&s, ,$ c$3*e# res*$n+en, 'an< ,$ <ee*
*e,i,i$ners in i,s e3*#$) a%,er ,he #a,,er have 'e,ra)e+ ,he c$nJ+ence given ,$ ,he3 w$&#+ 'e
&nE&s, ,$ res*$n+en, 'an<. The eF*ec,a,i$n $% ,r&s, is 3$re s$ 3agniJe+ in ,he ins,an, case in
#igh, $% ,he na,&re $% res*$n+en, 'an<s '&siness. The 'an<ing in+&s,r) is i3'&e+ wi,h *&'#ic
in,eres, an+ is 3an+a,e+ ') #aw ,$ serve i,s c#ien,s wi,h eF,ra$r+inar) care an+ +i#igence. T$
'e a'#e ,$ %&#J## ,his +&,), i, in ,&rn 3&s, re#) $n ,he h$nes,) an+ #$)a#,) $% i,s e3*#$)ees.
C#ear#), as a 3eas&re $% se#%5*reserva,i$n agains, ac,s *a,en,#) ini3ica# ,$ i,s in,eres,s,
res*$n+en, 'an< ha+ ever) righ, ,$ +is3iss *e,i,i$ners %$r 'reach $% ,r&s,, #$ss $% c$nJ+ence
an+ +ish$nes,). In+ee+, in cases $% ,his na,&re, ,he %ac, ,ha, *e,i,i$ners ha+ 'een e3*#$)ees
$% BPI %$r a #$ng ,i3e, i% i, is ,$ 'e c$nsi+ere+ a, a##, sh$&#+ 'e ,a<en agains, ,he3. Their
3ani%es, c$n+$na,i$n an+ even c$ncea#3en, $% an $Kense *reE&+icia# ,$ ,heir e3*#$)ers
in,eres, c$33i,,e+ ') a s&'$r+ina,e &n+er ,heir s&*ervisi$n reTec, a regre,,a'#e #ac< $%
#$)a#,) which ,he) sh$&#+ have rein%$rce+, ins,ea+ $% 'e,ra)e+.
Whi#e ,he C$ns,i,&,i$n is c$33i,,e+ ,$ ,he *$#ic) $% s$cia# E&s,ice an+ ,he *r$,ec,i$n $% ,he
w$r<ing c#ass, i, sh$&#+ n$, 'e s&**$se+ ,ha, ever) #a'$r +is*&,e wi## 'e a&,$3a,ica##) +eci+e+
in %av$r $% #a'$r. Manage3en, a#s$ has i,s $wn righ,s which, as s&ch, are en,i,#e+ ,$ res*ec,
an+ en%$rce3en, in ,he in,eres, $% si3*#e %air *#a).
1.. R' Michael 3ress vs. Gali(, G.R. No. 1.3.1", 6eruar$ 13, 2""-
9ac,sL
Res*$n+en, was e3*#$)e+ ') *e,i,i$ner R.B. Michae# Press as an $Kse, 3achine $*era,$r,
wh$se w$r< sche+&#e was %r$3 1L(( a.3. ,$ 2L(( *.3., M$n+a)s ,$ Sa,&r+a)s, an+ he was
*ai+ PhP!( a +a). 7&ring his e3*#$)3en,, Ga#i, was ,ar+) %$r a ,$,a# $% 19( ,i3es, ,$,a#ing ,$
-,11" 3in&,es, an+ was a'sen, wi,h$&, #eave %$r a ,$,a# $% nine an+ a ha#% +a)s.
:n 9e'r&ar) !!, 1999, res*$n+en, was $r+ere+ ,$ ren+er $ver,i3e service in $r+er ,$ c$3*#)
wi,h a E$' $r+er +ea+#ine, '&, he re%&se+ ,$ +$ s$. The %$##$wing +a), res*$n+en, re*$r,e+ %$r
w$r< '&, *e,i,i$ner Esc$'ia ,$#+ hi3 n$, ,$ w$r<, an+ ,$ re,&rn #a,er in ,he a%,ern$$n %$r a
hearing. When he re,&rne+, a c$*) $% an :Ice Me3$ran+&3 was serve+ $n hi3, as %$##$wsL
T$LMr. Nicasi$ Ga#i,
9r$3LANNALENE RE@ES5ESC:BIA
ReLWARNING 9:R 7ISMISSALO N:TICE :9 HEARING
Page 121
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
This warning %$r +is3issa# is 'eing iss&e+ %$r ,he %$##$wing $KensesL
=1?ha'i,&a# an+ eFcessive ,ar+iness
=!?c$33i,,ing ac,s $% +isc$&r,es), +isres*ec, in a++ressing s&*eri$rs
=?%ai#&re ,$ w$r< $ver,i3e a%,er having 'een ins,r&c,e+ ,$ +$ s$
=.?Ins&'$r+ina,i$n ` wi##%&##) +is$'e)ing, +e%)ing $r +isregar+ing c$3*an) a&,h$ri,)
The $Kenses )$&Sve c$33i,,e+ are E&s, ca&ses %$r ,er3ina,i$n $% e3*#$)3en, as *r$vi+e+ ')
,he La'$r C$+e. @$& were given ver'a# warnings 'e%$re, '&, ,here ha+ 'een n$ i3*r$ve3en,
$n )$&r c$n+&c,.
9&r,her inves,iga,i$n $% ,his 3a,,er is reA&ire+, ,here%$re, )$& are s&33$ne+ ,$ a hearing a,
.L(( *.3. ,$+a). The hearing wi## +e,er3ine )$&r e3*#$)3en, s,a,&s wi,h ,his c$3*an).
=SG7? ANNALENE RE@ES5ESC:BIA
Manager
:n 9e'r&ar) !., 1999, res*$n+en, was ,er3ina,e+ %r$3 e3*#$)3en,. The e3*#$)er, ,hr$&gh
*e,i,i$ner Esc$'ia, gave hi3 his ,w$5+a) sa#ar) an+ a ,er3ina,i$n #e,,er averring ,ha, Ga#i,
was +is3isse+ +&e ,$ ,he %$##$wing $KensesL =1? ha'i,&a# an+ eFcessive ,ar+inessO =!?
c$33issi$n $% +isc$&r,e$&s ac,s an+ +isres*ec,%&# c$n+&c, when a++ressing s&*eri$rsO =?
%ai#&re ,$ ren+er $ver,i3e w$r< +es*i,e ins,r&c,i$n ,$ +$ s$O an+ =.? ins&'$r+ina,i$n, ,ha, is,
wi##%&# +is$'e+ience $%, +eJance ,$, $r +isregar+ $% c$3*an) a&,h$ri,)..
Res*$n+en, s&'seA&en,#) J#e+ a c$3*#ain, %$r i##ega# +is3issa# an+ 3$ne) c#ai3s 'e%$re ,he
Na,i$na# La'$r Re#a,i$ns C$33issi$n =NLRC?.
Iss&esL
=1? W:N ,here was E&s, ca&se ,$ ,er3ina,e ,he e3*#$)3en, $% res*$n+en,, an+ whe,her +&e
*r$cess was $'serve+ in ,he +is3issa# *r$cessO
=!? W:N res*$n+en, is en,i,#e+ ,$ 'ac<wages an+ $,her 'eneJ,s +es*i,e his re%&sa# ,$ 'e
reins,a,e+.
R&#ingL
Res*$n+en,Ss ,ar+iness cann$, 'e c$nsi+ere+ c$n+$ne+ ') *e,i,i$ners
Ha'i,&a# ,ar+iness is a %$r3 $% neg#ec, $% +&,). Lac< $% ini,ia,ive, +i#igence, an+ +isci*#ine ,$
c$3e ,$ w$r< $n ,i3e ever)+a) eFhi'i, ,he e3*#$)eeSs +e*$r,3en, ,$war+s w$r<. Ha'i,&a#
an+ eFcessive ,ar+iness is ini3ica# ,$ ,he genera# *r$+&c,ivi,) an+ '&siness $% ,he e3*#$)er.
This is es*ecia##) ,r&e when ,he ,ar+iness an+B$r a'sen,eeis3 $cc&rre+ %reA&en,#) an+
re*ea,e+#) wi,hin an eF,ensive *eri$+ $% ,i3e.
The 3ere %ac, ,ha, ,he n&3er$&s in%rac,i$ns $% res*$n+en, have n$, 'een i33e+ia,e#)
s&'Eec,e+ ,$ sanc,i$ns cann$, 'e in,er*re,e+ as c$n+$na,i$n $% ,he $Kenses $r waiver $% ,he
c$3*an) ,$ en%$rce c$3*an) r&#es. A waiver is a v$#&n,ar) an+ in,en,i$na# re#inA&ish3en, $r
a'an+$n3en, $% a <n$wn #ega# righ, $r *rivi#ege. I, has 'een r&#e+ ,ha, Pa waiver ,$ 'e va#i+
an+ eKec,ive 3&s, 'e c$&che+ in c#ear an+ &neA&iv$ca# ,er3s which #eave n$ +$&', as ,$ ,he
in,en,i$n $% a *ar,) ,$ give &* a righ, $r 'eneJ, which #ega##) *er,ains ,$ hi3.P Hence, ,he
3anage3en, *rer$ga,ive ,$ +isci*#ine e3*#$)ees an+ i3*$se *&nish3en, is a #ega# righ,
which cann$,, as a genera# r&#e, 'e i3*#ie+#) waive+.
Th&s i, is inc&3'en, &*$n ,he e3*#$)ee ,$ a++&ce s&'s,an,ia# evi+ence ,$ +e3$ns,ra,e
c$n+$na,i$n $r waiver $n ,he *ar, $% 3anage3en, ,$ %$reg$ ,he eFercise $% i,s righ, ,$ i3*$se
sanc,i$ns %$r 'reach $% c$3*an) r&#es.
Page 12!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
In ,he case a, 'ar, res*$n+en, +i+ n$, a++&ce an) evi+ence ,$ sh$w waiver $r c$n+$na,i$n $n
,he *ar, $% *e,i,i$ners.
Ins&'$r+ina,i$n $r wi##%&# +is$'e+ience
9$r wi##%&# +is$'e+ience ,$ 'e a va#i+ ca&se %$r +is3issa#, ,hese ,w$ e#e3en,s 3&s, c$nc&rL =1?
,he e3*#$)eeSs assai#e+ c$n+&c, 3&s, have 'een wi##%&#, ,ha, is, charac,eri4e+ ') a wr$ng%&#
an+ *erverse a,,i,&+eO an+ =!? ,he $r+er vi$#a,e+ 3&s, have 'een reas$na'#e, #aw%&#, 3a+e
<n$wn ,$ ,he e3*#$)ee, an+ 3&s, *er,ain ,$ ,he +&,ies which he ha+ 'een engage+ ,$
+ischarge.
In ,he *resen, case, ,here is n$ A&es,i$n ,ha, *e,i,i$nersS $r+er %$r res*$n+en, ,$ ren+er
$ver,i3e service ,$ 3ee, a *r$+&c,i$n +ea+#ine c$3*#ies wi,h ,he sec$n+ reA&isi,e. Ar,. 19 $%
,he La'$r C$+e e3*$wers ,he e3*#$)er ,$ #ega##) c$3*e# his e3*#$)ees ,$ *er%$r3 $ver,i3e
w$r< agains, ,heir wi## ,$ *reven, seri$&s #$ss $r +a3ageL
Ar,. 19.EMERGENC@ :8ERTIME W:RH
An) e3*#$)ee 3a) 'e reA&ire+ ') ,he e3*#$)er ,$ *er%$r3 $ver,i3e w$r< in an) $% ,he
%$##$wing casesL
FFF FFF FFF
=c?When ,here is &rgen, w$r< ,$ 'e *er%$r3e+ $n 3achines, ins,a##a,i$ns, $r eA&i*3en,, in
$r+er ,$ av$i+ seri$&s #$ss $r +a3age ,$ ,he e3*#$)er $r s$3e $,her ca&se $% si3i#ar na,&reO
FFF FFF FFF
In ,he *resen, case, *e,i,i$nersS '&siness is a *rin,ing *ress wh$se *r$+&c,i$n sche+&#e is
s$3e,i3es TeFi'#e an+ var)ing. I, is $n#) reas$na'#e ,ha, w$r<ers are s$3e,i3es as<e+ ,$
ren+er $ver,i3e w$r< in $r+er ,$ 3ee, *r$+&c,i$n +ea+#ines.
The iss&e n$w is, whe,her res*$n+en,Ss re%&sa# $r %ai#&re ,$ ren+er $ver,i3e w$r< was wi##%&#O
,ha, is, whe,her s&ch re%&sa# $r %ai#&re was charac,eri4e+ ') a wr$ng%&# an+ *erverse a,,i,&+e.
In La<*&e 7r&g Inc. v. Be#ga, wi##%&#ness was +escri'e+ as Pcharac,eri4e+ ') a wr$ng%&# an+
*erverse 3en,a# a,,i,&+e ren+ering ,he e3*#$)eeSs ac, inc$nsis,en, wi,h *r$*er
s&'$r+ina,i$n.P The %ac, ,ha, res*$n+en, re%&se+ ,$ *r$vi+e $ver,i3e w$r< +es*i,e his
<n$w#e+ge ,ha, ,here is a *r$+&c,i$n +ea+#ine ,ha, nee+s ,$ 'e 3e,, an+ ,ha, wi,h$&, hi3, ,he
$Kse, 3achine $*era,$r, n$ %&r,her *rin,ing can 'e ha+, sh$ws his wr$ng%&# an+ *erverse
3en,a# a,,i,&+eO ,h&s, ,here is wi##%&#ness.
A%,er a re5eFa3ina,i$n $% ,he %ac,s, we r&#e ,ha, res*$n+en, &nE&s,iJa'#) re%&se+ ,$ ren+er
$ver,i3e w$r< +es*i,e a va#i+ $r+er ,$ +$ s$. The ,$,a#i,) $% his $Kenses agains, *e,i,i$ner R.B.
Michae# Press sh$ws ,ha, he was a +iIc&#, e3*#$)ee. His re%&sa# ,$ ren+er $ver,i3e w$r< was
,he Jna# s,raw ,ha, 'r$<e ,he ca3e#Ss 'ac<, an+, wi,h his gr$ss an+ ha'i,&a# ,ar+iness an+
a'sences, w$&#+ 3eri, +is3issa# %r$3 service.
7&e *r$cessL ,win n$,ice an+ hearing reA&ire3en,
:n ,he iss&e $% +&e *r$cess, *e,i,i$ners c#ai3 ,ha, ,he) ha+ aK$r+e+ res*$n+en, +&e *r$cess.
Pe,i,i$ners 3ain,ain ,ha, ,he) ha+ $'serve+ +&e *r$cess when ,he) gave res*$n+en, ,w$
n$,ices an+ ,ha, ,he) ha+ even sche+&#e+ a hearing where he c$&#+ have ha+ eF*#aine+ his
si+e an+ +e%en+e+ hi3se#%.
We are n$, *ers&a+e+.
We he#+ in Aga'$n v. NLRCL
Pr$ce+&ra##), =1? i% ,he +is3issa# is 'ase+ $n a E&s, ca&se &n+er Ar,ic#e !1!, ,he e3*#$)er 3&s,
give ,he e3*#$)ee ,w$ wri,,en n$,ices an+ a hearing $r $**$r,&ni,) ,$ 'e hear+ i% reA&es,e+
') ,he e3*#$)ee 'e%$re ,er3ina,ing ,he e3*#$)3en,L a n$,ice s*eci%)ing ,he gr$&n+s %$r
which +is3issa# is s$&gh, a hearing $r an $**$r,&ni,) ,$ 'e hear+ an+ a%,er hearing $r
Page 12
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$**$r,&ni,) ,$ 'e hear+, a n$,ice $% ,he +ecisi$n ,$ +is3issO an+ =!? i% ,he +is3issa# is 'ase+ $n
a&,h$ri4e+ ca&ses &n+er Ar,ic#es !1 an+ !1., ,he e3*#$)er 3&s, give ,he e3*#$)ee an+ ,he
7e*ar,3en, $% La'$r an+ E3*#$)3en, wri,,en n$,ices ( +a)s *ri$r ,$ ,he eKec,ivi,) $% his
se*ara,i$n
>n+er ,he ,win n$,ice reA&ire3en,, ,he e3*#$)ees 3&s, 'e given ,w$ =!? n$,ices 'e%$re his
e3*#$)3en, c$&#+ 'e ,er3ina,e+L =1? a Jrs, n$,ice ,$ a**rise ,he e3*#$)ees $% ,heir %a&#,, an+
=!? a sec$n+ n$,ice ,$ c$33&nica,e ,$ ,he e3*#$)ees ,ha, ,heir e3*#$)3en, is 'eing
,er3ina,e+. N$, ,$ 'e ,a<en #igh,#) $% c$&rse is ,he hearing $r $**$r,&ni,) %$r ,he e3*#$)ee ,$
+e%en+ hi3se#% *ers$na##) $r ') c$&nse# $% his ch$ice.
A scr&,in) $% ,he +isci*#inar) *r$cess &n+er,a<en ') *e,i,i$ners #ea+s &s ,$ c$nc#&+e ,ha, ,he)
$n#) *ai+ #i* service ,$ ,he +&e *r$cess reA&ire3en,s.
The &n+&e has,e in eKec,ing res*$n+en,Ss ,er3ina,i$n sh$ws ,ha, ,he ,er3ina,i$n *r$cess was
a 3ere si3&#a,i$n ` ,he reA&ire+ n$,ices were given, a hearing was even sche+&#e+ an+ he#+,
'&, res*$n+en, was n$, rea##) given a rea# $**$r,&ni,) ,$ +e%en+ hi3se#%O an+ i, see3s ,ha,
*e,i,i$ners ha+ a#rea+) +eci+e+ ,$ +is3iss res*$n+en, %r$3 service, even 'e%$re ,he Jrs,
n$,ice ha+ 'een given.
Anen, ,he wri,,en n$,ice $% charges an+ hearing, i, is *#ain ,$ see ,ha, ,here was 3ere#) a
genera# +escri*,i$n $% ,he c#ai3e+ $Kenses $% res*$n+en,. The hearing was i33e+ia,e#) se, in
,he a%,ern$$n $% 9e'r&ar) !, 1999 ` ,he +a) res*$n+en, receive+ ,he Jrs, n$,ice. There%$re,
he was n$, given an) $**$r,&ni,) a, a## ,$ c$ns&#, a &ni$n $Icia# $r #aw)er, an+, w$rse, ,$
*re*are %$r his +e%ense.
1). Cos/os 'o((ling Cor%ora(ion v. Nagra/a, G.R. No 1)**"3, March *, 2""-
9ac,sL
Res*$n+en, Pa'#$ Nagra3a, 6r. was ini,ia##) e3*#$)e+ ') *e,i,i$ner as a 3ain,enance
3echanic $n 6&ne !., 199 a, ,he C$s3$s P#an, in Ca&a)an, Isa'e#a. :n Se*,e3'er 1", 199-,
he was e#ec,e+ ') ,he #$ca# &ni$n as chie% sh$* s,ewar+.

Res*$n+en, was +esigna,e+ ') *e,i,i$ner as was,e wa,er ,rea,3en, $*era,$r
eKec,ive Se*,e3'er !", 1999. Pe,i,i$ner hire+ C#ean 9#$w Phi#i**ines, Inc. ,$ c$n+&c, ,raining
se3inars ,$ acA&ain, *e,i,i$nerGs *ers$nne# $n ,he $*era,i$ns $% ,he wa,er ,rea,3en,
*#an,. Res*$n+en, was ins,r&c,e+ ,$ a,,en+ ,he se3inar ,$ 'e he#+ $n Se*,e3'er !"5(,
1999.

He %ai#e+ ,$ a,,en+ ,he Jrs, ,w$ =!? +a)s $% ,he se3inar. In a #e,,er ') his i33e+ia,e
s&*ervis$r, 6$se*hine 7. Ca#acien, +a,e+ Se*,e3'er !9, 1999, res*$n+en, was in%$r3e+ ,ha,
charges $% a'an+$n3en, $% +&,) an+ gr$ss ins&'$r+ina,i$n ha+ 'een #$+ge+ agains, hi3. He
was reA&ire+ ,$ s&'3i, his wri,,en eF*#ana,i$n.

Res*$n+en, J#e+ his eF*#ana,i$n $n Se*,e3'er (, 1999. He c$n,en+e+ ,ha, he ha+ ,$
a,,en+ ,$ an a+3inis,ra,ive hearing %$r %e##$w &ni$nis,s which were he#+ a, San,iag$,
Isa'e#aO ,ha, 'e%$re he wen,, he Jrs, sec&re+ *er3issi$n %r$3 ,he *#an, c$n,r$##er. He
averre+ ,ha, as a &ni$n $Icia#, he is $'#iga,e+ ,$ a,,en+ ,$ ,he *r$'#e3s $% his %e##$w &ni$n
3e3'ers.
Page 12.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Iss&eL
Is ,he +is3issa# 'ase+ $n ,he gr$&n+s $% a'an+$n3en, an+ gr$ss ins&'$r+ina,i$n va#i+W
R&#ingL
9here is no aan&on/en( an& gross insuor&ina(ion.
Tw$ =!? e#e3en,s 3&s, 'e sa,isJe+ %$r an e3*#$)ee ,$ 'e g&i#,) $% a'an+$n3en,. The Jrs, is
,he %ai#&re ,$ re*$r, %$r w$r< $r a'sence wi,h$&, va#i+ $r E&s,iJa'#e reas$n. The sec$n+ is a
c#ear in,en,i$n ,$ sever ,he e3*#$)er5e3*#$)ee re#a,i$nshi*. The sec$n+ e#e3en, is ,he 3$re
+e,er3ina,ive %ac,$r an+ 3&s, 'e evince+ ') $ver, ac,s. Li<ewise, ,he '&r+en $% *r$$% is $n
,he e3*#$)er ,$ sh$w ,he e3*#$)eeGs c#ear an+ +e#i'era,e in,en, ,$ +isc$n,in&e his
e3*#$)3en, wi,h$&, an) in,en,i$n $% re,&rningO 3ere a'sence is n$, s&Icien,.
9irs,, res*$n+en,Gs a'sence was E&s,iJe+ &n+er ,he circ&3s,ances. He was a sh$* s,ewar+,
which recen, E&ris*r&+ence A&a#iJes as a &ni$n $Icer. As an $Icer, he ha+ a va#i+ reas$n ,$
a,,en+ ,he hearing $% his &ni$n 'r$,hers. He a#s$ as<e+ %$r an+ was given *er3issi$n as can
'e seen %r$3 ,he 3in&,es $% his hearing. Pe,i,i$ner +$es n$, c$n,es, ,his %ac,. Per3issi$n
nega,es an) *$ssi'i#i,) $% res*$n+en, a'an+$ning his E$'.

As ,$ ,he sec$n+ reA&isi,e, We are n$, c$nvince+ ,ha, res*$n+en, in,en+e+ ,$ sever ,he
e3*#$)er5e3*#$)ee re#a,i$nshi* wi,h C$s3$s. He i33e+ia,e#) c$3*#ie+ wi,h ,he 3e3$
reA&iring hi3 ,$ eF*#ain his a'sence. His %ai#&re ,$ re*$r, +irec,#) ,$ his D&a#i,) Ass&rance
S&*ervis$r an+ Ana#)s, can 'e +is3isse+ as %ai#&re ,$ *r$*er#) &n+ers,an+ ,he ins,r&c,i$ns he
was given.
M$re$ver, res*$n+en, J#e+ a c$3*#ain, %$r i##ega# +is3issa#.
0
A c$3*#ain, %$r i##ega# +is3issa#
sh$ws a +esire ,$ c$n,in&e w$r<. 8eri#), a review $% ,he evi+ence sh$ws ,ha, '$,h e#e3en,s $%
a'an+$n3en, are #ac<ing.

9$r gr$ss ins&'$r+ina,i$n, a#s$ ca##e+ Mwi##%&# +is$'e+ience $% a #aw%&# $r+er,N ,$ #ie, ,w$ =!?
reA&isi,es are a#s$ necessar). 9irs,, ,he assai#e+ c$n+&c, 3&s, have 'een in,en,i$na# an+
charac,eri4e+ ') a wr$ng%&# an+ *erverse a,,i,&+e.
0
Sec$n+, ,he $r+er vi$#a,e+ 3&s, have 'een
reas$na'#e, #aw%&#, an+ 3a+e <n$wn ,$ ,he e3*#$)ee an+ sh$&#+ *er,ain ,$ ,he +&,ies which
he has 'een engage+ ,$ +ischarge.

There is n$ A&es,i$n ,ha, $r+ers ,$ a,,en+ ,he se3inar are #aw%&# ins,r&c,i$ns ') *e,i,i$ner.
The Jrs, e#e3en, $% gr$ss ins&'$r+ina,i$n, h$wever, is #ac<ing. A review $% ,he rec$r+s sh$ws
,ha, res*$n+en,Gs %ai#&re ,$ re*$r, ,$ his A&a#i,) ass&rance s&*ervis$r an+ %ai#&re ,$ %&##)
a,,en+ ,he se3inar was in n$ wa) ,ain,e+ ') a wr$ng%&# $r *erverse a,,i,&+e. His %ai#&re ,$
sec&re a c#earance %r$3 C#ean 9#$w was +&e ,$ his a,,en+ance ,$ his &ni$n
+&,ies. Hence, ,here is n$ gr$ss ins&'$r+ina,i$n.
17. School of (he @ol$ S%iri( of C.C. vs. 9aguia/, G.R. No. 1)..)., 2ul$ 1*, 2""-
9ac,sL
C$ra4$n P. Tag&ia3 was ,he C#ass A+viser $% Gra+e 25Es3era#+a $% ,he *e,i,i$ner, Sch$$# $%
,he H$#) S*iri, $% D&e4$n Ci,). :n March 1(, !(((, ,he c#ass *resi+en,, wr$,e a #e,,er ,$ ,he
gra+e sch$$# *rinci*a# reA&es,ing *er3issi$n ,$ h$#+ a )ear5en+ ce#e'ra,i$n a, ,he sch$$#
gr$&n+s. The *rinci*a# a&,h$ri4e+ ,he ac,ivi,) an+ a##$we+ ,he *&*i#s ,$ &se ,he swi33ing
Page 122
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*$$#. In ,his c$nnec,i$n, res*$n+en, +is,ri'&,e+ ,he *aren,SsBg&ar+ianSs *er3i, %$r3s ,$ ,he
*&*i#s. C$ra4$n P. Tag&ia3 a+3i,,e+ ,ha, Chiara Mae 9e+eric$Ss *er3i, %$r3 was &nsigne+.
Never,he#ess, she c$nc#&+e+ ,ha, Chiara Mae was a##$we+ ') her 3$,her ,$ E$in ,he ac,ivi,)
since her 3$,her *ers$na##) 'r$&gh, her ,$ ,he sch$$# wi,h her *ac<e+ #&nch an+ swi3s&i,.
Be%$re ,he ac,ivi,) s,ar,e+, she warne+ ,he *&*i#s wh$ +i+ n$, <n$w h$w ,$ swi3 ,$ av$i+ ,he
+ee*er area. H$wever, whi#e ,he *&*i#s were swi33ing, ,w$ $% ,he3 snea<e+ $&,.
Res*$n+en, wen, a%,er ,he3 ,$ veri%) where ,he) were g$ing. >n%$r,&na,e#), whi#e res*$n+en,
was awa), Chiara Mae +r$wne+. When she re,&rne+, ,he 3ain,enance 3an was a#rea+)
a+3inis,ering car+i$*&#3$nar) res&sci,a,i$n $n Chiara Mae. The chi#+ was s,i## a#ive when
res*$n+en, r&she+ her ,$ ,he Genera# Ma#var H$s*i,a# where she was *r$n$&nce+ +ea+ $n
arriva#. C$ra4$n P. Tag&ia3 was +is3isse+ %$r gr$ss neg#igence res&#,ing ,$ #$ss $% c$nJ+ence.
Issue:
Was ,he +is3issa# 'ase+ $n ,he gr$&n+ as s,a,e+ va#i+W
R&#ingL
@es ,he +is3issa# was va#i+. >n+er Ar,ic#e !1! $% ,he La'$r C$+e, gr$ss an+ ha'i,&a# neg#ec, $%
+&,ies is a va#i+ gr$&n+ %$r an e3*#$)er ,$ ,er3ina,e an e3*#$)ee. Gr$ss neg#igence i3*#ies
a wan, $r a'sence $% $r a %ai#&re ,$ eFercise s#igh, care $r +i#igence, $r ,he en,ire a'sence $%
care. I, evinces a ,h$&gh,#ess +isregar+ $% c$nseA&ences wi,h$&, eFer,ing an) eK$r, ,$ av$i+
,he3. Ha'i,&a# neg#ec, i3*#ies re*ea,e+ %ai#&re ,$ *er%$r3 $neSs +&,ies %$r a *eri$+ $% ,i3e,
+e*en+ing &*$n ,he circ&3s,ances. Res*$n+en, ha+ 'een gr$ss#) neg#igen,. 3irst , i, is
&n+is*&,e+ ,ha, Chiara MaeSs *er3i, %$r3 was &nsigne+. @e,, res*$n+en, a##$we+ her ,$ E$in
,he ac,ivi,) 'eca&se she ass&3e+ ,ha, Chiara MaeSs 3$,her has a##$we+ her ,$ E$in i, ')
*ers$na##) 'ringing her ,$ ,he sch$$# wi,h her *ac<e+ #&nch an+ swi3s&i,. The *&r*$se $% a
*er3i, %$r3 is *recise#) ,$ ens&re ,ha, ,he *aren,s have a##$we+ ,heir chi#+ ,$ E$in ,he sch$$#
ac,ivi,) inv$#ve+. Res*$n+en, cann$, si3*#) ign$re ,his ') res$r,ing ,$ ass&3*,i$ns.
Res*$n+en, a+3i,,e+ ,ha, she was ar$&n+ when Chiara Mae an+ her 3$,her arrive+. She
c$&#+ have reA&es,e+ ,he 3$,her ,$ sign ,he *er3i, %$r3 'e%$re she #e%, ,he sch$$# $r a, #eas,
ca##e+ her &* ,$ $',ain her c$n%$r3i,). Seond, i, was res*$n+en,Ss res*$nsi'i#i,) as C#ass
A+viser ,$ s&*ervise her c#ass in a## ac,ivi,ies sanc,i$ne+ ') ,he sch$$#. Th&s, she sh$&#+ have
c$$r+ina,e+ wi,h ,he sch$$# ,$ ens&re ,ha, *r$*er sa%eg&ar+s, s&ch as a+eA&a,e Jrs, ai+ an+
s&Icien, a+&#, *ers$nne#, were *resen, +&ring ,heir ac,ivi,). She sh$&#+ have 'een 3in+%&# $%
,he %ac, ,ha, wi,h ,he n&3'er $% *&*i#s inv$#ve+, i, w$&#+ 'e i3*$ssi'#e %$r her ') herse#%
a#$ne ,$ <ee* an e)e $n each $ne $% ,he3. N$,a'#), res*$n+en,Ss neg#igence, a#,h$&gh gr$ss,
was n$, ha'i,&a#. In view $% ,he c$nsi+era'#e res&#,an, +a3age, h$wever, ,he ca&se is
s&Icien, ,$ +is3iss res*$n+en,.
This is n$, ,he Jrs, ,i3e ,ha, ,he SC have +e*ar,e+ %r$3 ,he reA&ire3en,s #ai+ +$wn ') ,he
#aw ,ha, neg#ec, $% +&,ies 3&s, 'e '$,h gr$ss an+ ha'i,&a#. In P$ilippine Airlines, (n. v. NLRC,
we r&#e+ ,ha, Phi#i**ine Air#ines =PAL? cann$, 'e #ega##) c$3*e##e+ ,$ c$n,in&e wi,h ,he
e3*#$)3en, $% a *ers$n a+3i,,e+#) g&i#,) $% gr$ss neg#igence in ,he *er%$r3ance $% his +&,ies
a#,h$&gh i, was his Jrs, $Kense. In ,ha, case, we n$,e+ ,ha, a 3ere +e#a) $n PALSs Tigh,
sche+&#e +&e ,$ aircra%, +a3age en,ai#s *r$'#e3s #i<e h$,e# acc$33$+a,i$ns %$r i,s
*assengers, re5'$$<ing, ,he *$ssi'i#i,) $% #aw s&i,s, an+ *a)3en, $% s*ecia# #an+ing %ees n$, ,$
3en,i$n ,he s$aring c$s,s $% re*#acing aircra%, *ar,s. In an$,her case, 3uentes v. National
Labor Relations Commission, we he#+ ,ha, i, w$&#+ 'e &n%air ,$ c$3*e# Phi#i**ine Ban<ing
C$r*$ra,i$n ,$ c$n,in&e e3*#$)ing i,s 'an< ,e##er. In ,ha, case, we $'serve+ ,ha, a#,h$&gh ,he
,e##erSs in%rac,i$n was n$, ha'i,&a#, a s&'s,an,ia# a3$&n, $% 3$ne) was #$s,. The +e*$si, s#i*
ha+ a#rea+) 'een va#i+a,e+ *ri$r ,$ i,s #$ss an+ ,he a3$&n, reTec,e+ ,here$n is a#rea+)
c$nsi+ere+ as c&rren, #ia'i#i,ies in ,he 'an<Ss 'a#ance shee,. In+ee+, ,he s&Icienc) $% ,he
Page 12-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
evi+ence as we## as ,he res&#,an, +a3age ,$ ,he e3*#$)er sh$&#+ 'e c$nsi+ere+ in ,he
+is3issa# $% ,he e3*#$)ee. In ,his case, ,he +a3age wen, as %ar as c#ai3ing ,he #i%e $% a chi#+.
As a res&#, $% gr$ss neg#igence in ,he *resen, case, *e,i,i$ners #$s, i,s ,r&s, an+ c$nJ+ence in
res*$n+en,. L$ss $% ,r&s, an+ c$nJ+ence ,$ 'e a va#i+ gr$&n+ %$r +is3issa# 3&s, 'e 'ase+ $n
a wi##%&# 'reach $% ,r&s, an+ %$&n+e+ $n c#ear#) es,a'#ishe+ %ac,s. A 'reach is wi##%&# i% i, is
+$ne in,en,i$na##), <n$wing#) an+ *&r*$se#), wi,h$&, E&s,iJa'#e eFc&se, as +is,ing&ishe+ %r$3
an ac, +$ne care#ess#), ,h$&gh,#ess#), hee+#ess#) $r ina+ver,en,#).

:,herwise s,a,e+, i, 3&s,
res, $n s&'s,an,ia# gr$&n+s an+ n$, $n ,he e3*#$)erSs ar'i,rariness, whi3s, ca*rices $r
s&s*ici$nO $,herwise, ,he e3*#$)ee w$&#+ e,erna##) re3ain a, ,he 3erc) $% ,he e3*#$)er. I,
sh$&#+ 'e gen&ine an+ n$, si3&#a,e+O n$r sh$&#+ i, a**ear as a 3ere a%,er,h$&gh, ,$ E&s,i%)
ear#ier ac,i$n ,a<en in 'a+ %ai,h $r a s&',er%&ge %$r ca&ses which are i3*r$*er, i##ega# $r
&nE&s,iJe+. I, has never 'een in,en+e+ ,$ aK$r+ an $ccasi$n %$r a'&se 'eca&se $% i,s
s&'Eec,ive na,&re. There 3&s,, ,here%$re, 'e an ac,&a# 'reach $% +&,) c$33i,,e+ ') ,he
e3*#$)ee which 3&s, 'e es,a'#ishe+ ') s&'s,an,ia# evi+ence.

A## ,$#+, ,here 'eing a c#ear
sh$wing ,ha, res*$n+en, was c&#*a'#e %$r gr$ss neg#igence res&#,ing ,$ #$ss $% ,r&s, an+
c$nJ+ence, her +is3issa# was va#i+ an+ #ega#.
1-. <niversal S(aIng Services !nc. v. NLRC, G.R. No. 177.7), 2ul$ 21, 2""-
9ac,sL
Res*$n+en, Grace M. M$ra#es =M$ra#es? a**#ie+ %$r an+ was hire+ as rece*,i$nis, ') *e,i,i$ner
>niversa# S,aIng Services, Inc. =>SSI? in 'eha#% $% i,s *rinci*a# 6in Ciang In,erna,i$na# La'$&r
S&**#) $% >ni,e+ Ara' E3ira,es =>.A.E.?. The c$n,rac, +&#) a**r$ve+ ') ,he Phi#i**ine
:verseas E3*#$)3en, A+3inis,ra,i$n =P:EA?, *r$vi+e+ %$r an e3*#$)3en, ,er3 $% ,w$ =!?
)ears wi,h a 3$n,h#) sa#ar) $% 7hs1, 1((.((. A%,er Ten =1(? 3$n,hs $% w$r< in A# San+$s S&i,es
=A# San+$s? A'& 7ha'i, >.A.E. M$ra#esG e3*#$)3en, was ,er3ina,e+ a##ege+#) +&e ,$ her *$$r
w$r< *er%$r3ance. M$ra#es receive+ 7hs1,((.(( as %&## an+ Jna# se,,#e3en, $% a## her c#ai3s
$n 6an&ar) 1, !((, an+ was re*a,ria,e+ $n 6an&ar) ", !((.
C#ai3ing ,ha, she was i##ega##) ,er3ina,e+, M$ra#es J#e+ a c$3*#ain,

%$r i##ega# +is3issa# an+
n$n5*a)3en, $% $ver,i3e an+ vaca,i$n *a) agains, >SSI an+ A# San+$s H$,e# Manage3en,
wi,h ,he La'$r Ar'i,er.
Iss&eL
Whe,her $r n$, M$ra#es is i##ega##) +is3isse+
R&#ingL
>SSI insis,s ,ha, M$ra#esG +is3issa# was 'ase+ $n a va#i+ an+ #ega# gr$&n+. The La'$r Ar'i,er
#en, cre+ence ,$ >SSIGs *$s,&re an+ +is3isse+ M$ra#esG c$3*#ain,, '&, ,he NLRC an+ ,he CA
reverse+ ,he Ar'i,erGs Jn+ings.
M$ra#es was +is3isse+ %$r her a##ege+ *$$r *er%$r3ance. As a genera# c$nce*,, P*$$r
*er%$r3anceP is eA&iva#en, ,$ ineIcienc) an+ inc$3*e,ence in ,he *er%$r3ance $% $Icia#
+&,ies. >n+er Ar,ic#e !1! $% ,he La'$r C$+e, an &nsa,is%ac,$r) ra,ing can 'e a E&s, ca&se %$r
+is3issa# $n#) i% i, a3$&n,s ,$ gr$ss an+ ha'i,&a# neg#ec, $% +&,ies. Th&s, ,he %ac, ,ha, an
e3*#$)eeSs *er%$r3ance is %$&n+ ,$ 'e *$$r $r &nsa,is%ac,$r) +$es n$, necessari#) 3ean ,ha,
,he e3*#$)ee is gr$ss#) an+ ha'i,&a##) neg#igen, $% his +&,ies. Gr$ss neg#igence i3*#ies a wan,
Page 12"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$r a'sence $% $r %ai#&re ,$ eFercise s#igh, care $r +i#igence, $r ,he en,ire a'sence $% care. I,
evinces a ,h$&gh,#ess +isregar+ $% c$nseA&ences wi,h$&, eFer,ing an) eK$r, ,$ av$i+ ,he3.
N$ s&'s,an,ia# evi+ence was *resen,e+ ,$ s&'s,an,ia,e ,he ca&se $% M$ra#esG +is3issa#. 9irs,,
>SSI %ai#e+ ,$ ci,e *ar,ic&#ar ac,s $r ins,ances ,ha, w$&#+ va#i+a,e i,s c#ai3 $% M$ra#esG *$$r
*er%$r3ance. Sec$n+, n$ c$nvincing *r$$% was $Kere+ ,$ s&'s,an,ia,e M$ra#esG a##ege+ *$$r
*er%$r3ance.
The *rinci*#e ech$e+ an+ reech$e+ in E&ris*r&+ence is ,ha, ,he $n&s $% *r$ving ,ha, ,he
e3*#$)ee was +is3isse+ %$r a E&s, ca&se res,s $n ,he e3*#$)er,

an+ ,he #a,,erGs %ai#&re ,$
+ischarge ,ha, '&r+en w$&#+ res&#, in a Jn+ing ,ha, ,he +is3issa# is &nE&s,iJe+.
9&r,her3$re, M$ra#es was n$, acc$r+e+ +&e *r$cess. >n+er Ar,ic#e !""='?

$% ,he La'$r C$+e,
,he e3*#$)er 3&s, sen+ ,he e3*#$)ee wh$ is a'$&, ,$ 'e ,er3ina,e+, a wri,,en n$,ice s,a,ing
,he ca&seBs %$r ,er3ina,i$n an+ 3&s, give ,he e3*#$)ee ,he $**$r,&ni,) ,$ 'e hear+ an+ ,$
+e%en+ hi3se#%. There was n$ sh$wing ,ha, A# San+$s warne+ M$ra#es $% her a##ege+ *$$r
*er%$r3ance. Li<ewise, M$ra#es was n$, serve+ ,he Jrs, n$,ice a**rising her $% ,he *ar,ic&#ar
ac,s $r $3issi$ns $n which her +is3issa# was 'ase+ ,$ge,her wi,h ,he $**$r,&ni,) ,$ eF*#ain
her si+e. The $n#) n$,ice given ,$ M$ra#es was ,he #e,,er

+a,e+ 7ece3'er 1., !((! in%$r3ing
her ,ha, she was a#rea+) ,er3ina,e+.
Cer,ain#), ,here can 'e n$ $,her c$nc#&si$n ,han ,ha, M$ra#es was i##ega##) +is3isse+ an+ her
e3*#$)3en, c$n,rac, was i##ega##) ,er3ina,e+. Wi,h ,his Jn+ing, i, is i3*era,ive ,ha, M$ra#es
'e gran,e+ ,he 3$ne,ar) 'eneJ,s +&e her.
WHERE9:RE, ,he *e,i,i$n is PARTIALL@ GRANTE7. Grace M. M$ra#es is +ec#are+ i##ega##)
+is3isse+. Pe,i,i$ner >niversa# S,aIng Services, Inc. is $r+ere+ ,$ *a) M$ra#esG ,hree =?
3$n,hsG sa#ar) $r 7hs,((.((, $r i,s *es$ eA&iva#en,. The awar+s $% $ver,i3e an+ h$#i+a)
*a), as we## as a,,$rne)Gs %ees, are 7ELETE7.
19. 6ligh( A((en&an(s an& S(ewar& Associa(ion of (he 3hili%%ines ;6ASA3= v.
3hili%%ine Airlines, G.R. No. 17-"-3, G.R. No. 17-"-3, 2ul$ 22, 2""-
9ac,sL

Pe,i,i$ner 9ASAP is ,he +&#) cer,iJe+ c$##ec,ive 'argaining re*resen,a,ive $% PAL Tigh,
a,,en+an,s an+ s,ewar+s, $r c$##ec,ive#) <n$wn as PAL ca'in crew *ers$nne#. Res*$n+en, PAL
is a +$3es,ic c$r*$ra,i$n $rgani4e+ an+ eFis,ing &n+er ,he #aws $% ,he Re*&'#ic $% ,he
Phi#i**ines, $*era,ing as a c$33$n carrier ,rans*$r,ing *assengers an+ carg$ ,hr$&gh
aircra%,.
:n 6&ne 12, 1991, PAL re,renche+ 2,((( $% i,s e3*#$)ees, inc#&+ing 3$re ,han 1,.(( $% i,s
ca'in crew *ers$nne#, ,$ ,a<e eKec, $n 6&#) 12, 1991. PAL a+$*,e+ ,he re,rench3en, sche3e
a##ege+#) ,$ c&, c$s,s an+ 3i,iga,e h&ge Jnancia# #$sses as a res&#, $% a +$wn,&rn in ,he air#ine
in+&s,r) 'r$&gh, a'$&, ') ,he Asian Jnancia# crisis. 7&ring sai+ *eri$+, PAL c#ai3s ,$ have
inc&rre+ P9( 'i##i$n in #ia'i#i,ies, whi#e i,s asse,s s,$$+ a, P12 'i##i$n.
In i3*#e3en,ing ,he re,rench3en, sche3e, PAL a+$*,e+ i,s s$5ca##e+ P#an 1. where') PALs
Tee, $% aircra%, w$&#+ 'e re+&ce+ %r$3 2. ,$ 1., ,h&s reA&iring ,he services $% $n#) -2. ca'in
crew *ers$nne#. PAL a+3i,s ,ha, ,he re,rench3en, is wh$##) *re3ise+ &*$n s&ch re+&c,i$n in
Page 121
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Tee,, an+ ,$ ,he s,ri<e s,age+ ') PAL *i#$,s since ,his ac,i$n a#s$ ,rans#a,e+ in,$ a re+&c,i$n $%
Tigh,s.
PAL c#ai3s ,ha, ,he sche3e res&#,e+ in savings F F F a3$&n,ing ,$ a**r$Fi3a,e#) P!. 3i##i$n
*er 3$n,h savings ,ha, w$&#+ grea,#) a##evia,e PALs Jnancia# crisis.
:n 6&ne !!, 1991, 9ASAP J#e+ a C$3*#ain, agains, PAL an+ Pa,ria T. Chi$ng =Chi$ng? %$r &n%air
#a'$r *rac,ice, i##ega# re,rench3en, wi,h c#ai3s %$r reins,a,e3en, an+ *a)3en, $% sa#aries,
a##$wances an+ 'ac<wages $% aKec,e+ 9ASAP 3e3'ers, ac,&a#, 3$ra# an+ eFe3*#ar)
+a3ages wi,h a *ra)er ,$ enE$in ,he re,rench3en, *r$gra3 ,hen 'eing i3*#e3en,e+.
Meanwhi#e, 3$n,hs a%,er ,he 6&ne 12, 1991 3ass +is3issa# $% i,s ca'in crew *ers$nne#, PAL
'egan reca##ing ,$ service ,h$se i, ha+ *revi$&s#) re,renche+. Th&s, in N$ve3'er 1991 an+ &*
,$ March 1999 severa# $% ,h$se re,renche+ were ca##e+ 'ac< ,$ service. T$ +a,e, PAL c#ai3s ,$
have reca##e+ 1!( $% ,he re,renche+ ca'in crew *ers$nne#. 9ASAP, h$wever, c#ai3s ,ha, $n#)
1( were reca##e+ as $% 6an&ar) !((1.
Iss&eL
Whe,her PALs re,rench3en, sche3e was E&s,iJe+.
R&#ingL
N$. >n+er ,he La'$r C$+e, re,rench3en, $r re+&c,i$n $% e3*#$)ees is a&,h$ri4e+ as %$##$wsL

ART. !1. Closure of establis$ment and redution of personnel. 5 The e3*#$)er 3a) a#s$
,er3ina,e ,he e3*#$)3en, $% an) e3*#$)ee +&e ,$ ,he ins,a##a,i$n $% #a'$r5saving +evices,
re+&n+anc), re,rench3en, ,$ *reven, #$sses $r ,he c#$sing $r cessa,i$n $% $*era,i$n $% ,he
es,a'#ish3en, $r &n+er,a<ing &n#ess ,he c#$sing is %$r ,he *&r*$se $% circ&3ven,ing ,he
*r$visi$ns $% ,his Ti,#e, ') serving a wri,,en n$,ice $n ,he w$r<ers an+ ,he Minis,r) $% La'$r
an+ E3*#$)3en, a, #eas, $ne =1? 3$n,h 'e%$re ,he in,en+e+ +a,e ,here$%. In case $%
,er3ina,i$n +&e ,$ ,he ins,a##a,i$n $% #a'$r5saving +evices $r re+&n+anc), ,he w$r<er aKec,e+
,here') sha## 'e en,i,#e+ ,$ a se*ara,i$n *a) eA&iva#en, ,$ a, #eas, his $ne =1? 3$n,h *a) $r ,$
a, #eas, $ne =1? 3$n,h *a) %$r ever) )ear $% service, whichever is higher. In case $%
re,rench3en, ,$ *reven, #$sses an+ in cases $% c#$s&res $r cessa,i$n $% $*era,i$ns $%
es,a'#ish3en, $r &n+er,a<ing n$, +&e ,$ seri$&s '&siness #$sses $r Jnancia# reverses, ,he
se*ara,i$n *a) sha## 'e eA&iva#en, ,$ $ne =1? 3$n,h *a) $r a, #eas, $ne5ha#% =1B!? 3$n,h *a)
%$r ever) )ear $% service, whichever is higher. A %rac,i$n $% a, #eas, siF =-? 3$n,hs sha## 'e
c$nsi+ere+ $ne =1? wh$#e )ear.

The #aw rec$gni4es ,he righ, $% ever) '&siness en,i,) ,$ re+&ce i,s w$r< %$rce i% ,he sa3e is
3a+e necessar) ') c$3*e##ing ec$n$3ic %ac,$rs which w$&#+ en+anger i,s eFis,ence $r
s,a'i#i,). Where a**r$*ria,e an+ where c$n+i,i$ns are in acc$r+ wi,h #aw an+ E&ris*r&+ence,
,he C$&r, has a&,h$ri4e+ va#i+ re+&c,i$ns in ,he w$r< %$rce ,$ %$res,a## '&siness #$sses, ,he
he3$rrhaging $% ca*i,a#, $r even ,$ rec$gni4e an $'vi$&s re+&c,i$n in ,he v$#&3e $% '&siness
which has ren+ere+ cer,ain e3*#$)ees re+&n+an,.

Never,he#ess, whi#e i, is ,r&e ,ha, ,he eFercise $% ,his righ, is a *rer$ga,ive $% 3anage3en,,
,here 3&s, 'e %ai,h%&# c$3*#iance wi,h s&'s,an,ive an+ *r$ce+&ra# reA&ire3en,s $% ,he #aw
an+ E&ris*r&+ence, %$r re,rench3en, s,ri<es a, ,he ver) hear, $% ,he w$r<ers e3*#$)3en,, ,he
#i%e'#$$+ &*$n which he an+ his %a3i#) $we ,heir s&rviva#. Re,rench3en, is $n#) a 3eas&re $%
#as, res$r,, when $,her #ess +ras,ic 3eans have 'een ,rie+ an+ %$&n+ ,$ 'e ina+eA&a,e.

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LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
The '&r+en c#ear#) %a##s &*$n ,he e3*#$)er ,$ *r$ve ec$n$3ic $r '&siness #$sses wi,h
s&Icien, s&**$r,ing evi+ence. I,s %ai#&re ,$ *r$ve ,hese reverses $r #$sses necessari#) 3eans
,ha, ,he e3*#$)ees +is3issa# was n$, E&s,iJe+. An) c#ai3 $% ac,&a# $r *$,en,ia# '&siness #$sses
3&s, sa,is%) cer,ain es,a'#ishe+ s,an+ar+s, a## $% which 3&s, c$nc&r, 'e%$re an) re+&c,i$n $%
*ers$nne# 'ec$3es #ega#.
These areL
=1? Tha, re,rench3en, is reas$na'#) necessar) an+ #i<e#) ,$ *reven, '&siness #$sses which,
i% a#rea+) inc&rre+, are n$, 3ere#) de minimis, '&, s&'s,an,ia#, seri$&s, ac,&a# an+ rea#, $r i%
$n#) eF*ec,e+, are reas$na'#) i33inen, as *erceive+ $'Eec,ive#) an+ in g$$+ %ai,h ') ,he
e3*#$)erO

=!? Tha, ,he e3*#$)er serve+ wri,,en n$,ice '$,h ,$ ,he e3*#$)ees an+ ,$ ,he 7e*ar,3en,
$% La'$r an+ E3*#$)3en, a, #eas, $ne 3$n,h *ri$r ,$ ,he in,en+e+ +a,e $% re,rench3en,O

=? Tha, ,he e3*#$)er *a)s ,he re,renche+ e3*#$)ees se*ara,i$n *a) eA&iva#en, ,$ $ne =1?
3$n,h *a) $r a, #eas, $ne5ha#% =1B!? 3$n,h *a) %$r ever) )ear $% service, whichever is higherO

=.? Tha, ,he e3*#$)er eFercises i,s *rer$ga,ive ,$ re,rench e3*#$)ees in g$$+ %ai,h %$r ,he
a+vance3en, $% i,s in,eres, an+ n$, ,$ +e%ea, $r circ&3ven, ,he e3*#$)ees righ, ,$ sec&ri,) $%
,en&reO an+,

=2? Tha, ,he e3*#$)er &se+ %air an+ reas$na'#e cri,eria in ascer,aining wh$ w$&#+ 'e
+is3isse+ an+ wh$ w$&#+ 'e re,aine+ a3$ng ,he e3*#$)ees, s&ch as s,a,&s, eIcienc),
seni$ri,), *h)sica# J,ness, age, an+ Jnancia# har+shi* %$r cer,ain w$r<ers.

In view $% ,he %ac,s an+ ,he iss&es raise+, ,he res$#&,i$n $% ,he ins,an, *e,i,i$n hinges $n a
+e,er3ina,i$n $% ,he eFis,ence $% ,he Jrs,, %$&r,h an+ ,he J%,h e#e3en,s se, %$r,h a'$ve, as
we## as c$3*#iance ,herewi,h ') PAL, ,a<ing ,$ 3in+ ,ha, ,he '&r+en $% *r$$% in re,rench3en,
cases #ies wi,h ,he e3*#$)er in sh$wing va#i+ ca&se %$r +is3issa#L ,ha, #egi,i3a,e '&siness
reas$ns eFis, ,$ E&s,i%) re,rench3en,.

9IRST ELEMENTL
The e3*#$)ers *rer$ga,ive ,$ #a)$K e3*#$)ees is s&'Eec, ,$ cer,ain #i3i,a,i$ns.
The #aw s*ea<s $% seri$&s '&siness #$sses $r Jnancia# reverses. S#i+ing inc$3es $r +ecreasing
gr$ss reven&es are n$, necessari#) #$sses, 3&ch #ess seri$&s '&siness #$sses wi,hin ,he
3eaning $% ,he #aw. The %ac, ,ha, an e3*#$)er 3a) have s&s,aine+ a ne, #$ss, s&ch #$ss, per
se, a'sen, an) $,her evi+ence $n i,s i3*ac, $n ,he '&siness, n$r $n eF*ec,e+ #$sses ,ha,
w$&#+ have 'een inc&rre+ ha+ $*era,i$ns 'een c$n,in&e+, 3a) n$, a3$&n, ,$ seri$&s
'&siness #$sses 3en,i$ne+ in ,he #aw. The e3*#$)er 3&s, sh$w ,ha, i,s #$sses increase+
,hr$&gh a *eri$+ $% ,i3e an+ ,ha, ,he c$n+i,i$n $% ,he c$3*an) wi## n$, #i<e#) i3*r$ve in ,he
near %&,&re, $r ,ha, i, eF*ec,e+ n$ a'a,e3en, $% i,s #$sses in ,he c$3ing )ears. P&, si3*#), n$,
ever) #$ss inc&rre+ $r eF*ec,e+ ,$ 'e inc&rre+ ') a c$3*an) wi## E&s,i%) re,rench3en,.

The e3*#$)er 3&s, a#s$ eFha&s, a## $,her 3eans ,$ av$i+ %&r,her #$sses wi,h$&, re,renching i,s
e3*#$)ees. Re,rench3en, is a 3eans $% #as, res$r,O i, is E&s,iJe+ $n#) when a## $,her #ess
+ras,ic 3eans have 'een ,rie+ an+ %$&n+ ins&Icien,. Even ass&3ing ,ha, ,he e3*#$)er has
ac,&a##) inc&rre+ #$sses ') reas$n $% ,he Asian ec$n$3ic crisis, ,he re,rench3en, is n$,
c$3*#e,e#) E&s,iJe+ i% ,here is n$ sh$wing ,ha, ,he re,rench3en, was ,he #as, rec$&rse
res$r,e+ ,$. Where ,he $n#) #ess +ras,ic 3eas&re ,ha, ,he e3*#$)er &n+er,$$< was ,he r$,a,i$n
Page 1-(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
w$r< sche3e, $r ,he ,hree5+a)5w$r<5*er5e3*#$)ee5*er5wee< sche+&#e, an+ i, +i+ n$, en+eav$r
a, $,her 3eas&res, s&ch as c$s, re+&c,i$n, #esser inves,3en, $n raw 3a,eria#s, a+E&s,3en, $%
,he w$r< r$&,ine ,$ av$i+ sche+&#e+ *$wer %ai#&re, re+&c,i$n $% ,he '$n&ses an+ sa#aries $%
'$,h 3anage3en, an+ ran<5an+5J#e, i3*r$ve3en, $% 3an&%ac,&ring eIcienc), an+ ,ri33ing
$% 3ar<e,ing an+ a+ver,ising c$s,s, ,he c#ai3 ,ha, re,rench3en, was +$ne in g$$+ %ai,h ,$
av$i+ #$sses is 'e#ie+.

A##ege+ #$sses i% a#rea+) rea#i4e+, an+ ,he eF*ec,e+ i33inen, #$sses s$&gh, ,$ 'e %$res,a##e+,
3&s, 'e *r$ve+ ') s&Icien, an+ c$nvincing evi+ence. The reas$n %$r reA&iring ,his is rea+i#)
a**aren,L an) #ess eFac,ing s,an+ar+ $% *r$$% w$&#+ ren+er ,$$ eas) ,he a'&se $% ,his gr$&n+
%$r ,er3ina,i$n $% services $% e3*#$)eesO sche3ing e3*#$)ers 3igh, 'e 3ere#) %eigning
'&siness #$sses $r reverses in $r+er ,$ ease $&, e3*#$)ees.

In es,a'#ishing a &ni#a,era# c#ai3 $% ac,&a# $r *$,en,ia# #$sses, Jnancia# s,a,e3en,s a&+i,e+ ')
in+e*en+en, eF,erna# a&+i,$rs c$ns,i,&,e ,he n$r3a# 3e,h$+ $% *r$$% $% *r$J, an+ #$ss
*er%$r3ance $% a c$3*an). A S,a,e3en, $% Pr$J, an+ L$ss s&'3i,,e+ ,$ *r$ve a##ege+ #$sses,
wi,h$&, ,he acc$3*an)ing signa,&re $% a cer,iJe+ *&'#ic acc$&n,an, $r a&+i,e+ ') an
in+e*en+en, a&+i,$r, is n$,hing '&, a se#%5serving +$c&3en, which $&gh, ,$ 'e ,rea,e+ as a
3ere scra* $% *a*er +ev$i+ $% an) *r$'a,ive va#&e.

In ,he ins,an, case, PAL %ai#e+ ,$ s&'s,an,ia,e i,s c#ai3 $% ac,&a# an+ i33inen, s&'s,an,ia#
#$sses which w$&#+ E&s,i%) ,he re,rench3en, $% 3$re ,han 1,.(( $% i,s ca'in crew *ers$nne#.
A#,h$&gh ,he Phi#i**ine ec$n$3) was grave#) aKec,e+ ') ,he Asian Jnancia# crisis, h$wever, i,
cann$, 'e ass&3e+ ,ha, i, has #i<ewise 'r$&gh, PAL ,$ ,he 'rin< $% 'an<r&*,c). Li<ewise, ,he
%ac, ,ha, PAL &n+erwen, c$r*$ra,e reha'i#i,a,i$n +$es n$, a&,$3a,ica##) E&s,i%) ,he
re,rench3en, $% i,s ca'in crew *ers$nne#.
T$ *r$ve ,ha, PAL was Jnancia##) +is,resse+, i, c$&#+ have s&'3i,,e+ i,s a&+i,e+ Jnancia#
s,a,e3en,s '&, i, %ai#e+ ,$ *resen, ,he sa3e wi,h ,he La'$r Ar'i,er. Ins,ea+, i, narra,e+ a #i,an)
$% w$es wi,h$&, $Kering an) evi+ence ,$ sh$w ,ha, ,he) ,rans#a,e+ in,$ s*eciJc an+
s&'s,an,ia# #$sses ,ha, w$&#+ necessi,a,e re,rench3en,.
In,eres,ing#), PAL s&'3i,,e+ i,s a&+i,e+ Jnancia# s,a,e3en,s $n#) when ,he case was ,he
s&'Eec, $% cer,i$rari *r$cee+ings in ,he C$&r, $% A**ea#s ') a,,aching in i,s C$33en, a c$*) $%
i,s c$ns$#i+a,e+ a&+i,e+ Jnancia# s,a,e3en,s %$r ,he )ears !((!, !(( an+ !((.. H$wever,
,hese are n$, ,he Jnancia# s,a,e3en,s ,ha, w$&#+ have sh$wn PALs a##ege+ *recari$&s *$si,i$n
a, ,he ,i3e i, i3*#e3en,e+ ,he 3assive re,rench3en, sche3e in 1991. PAL sh$&#+ have
s&'3i,,e+ i,s Jnancia# s,a,e3en,s %$r ,he )ears 199" &* ,$ 1999O an+ n$, %$r ,he )ears !((!
&* ,$ !((. 'eca&se ,hese Jnancia# s,a,e3en,s c$ver a *eri$+ 3ar<e+#) +is,an, ,$ ,he )ears in
A&es,i$n, which 3a<e ,he3 irre#evan, an+ &nacce*,a'#e.
9:>RTH ELEMENTL
C$nce+e+#), re,rench3en, ,$ *reven, #$sses is an a&,h$ri4e+ ca&se %$r ,er3ina,ing
e3*#$)3en, an+ ,he +ecisi$n whe,her ,$ res$r, ,$ s&ch 3$ve $r n$, is a 3anage3en,
*rer$ga,ive. H$wever, ,he righ, $% an e3*#$)er ,$ +is3iss an e3*#$)ee +iKers %r$3 an+
sh$&#+ n$, 'e c$n%&se+ wi,h ,he 3anner in which s&ch righ, is eFercise+. I, 3&s, n$, 'e
$**ressive an+ a'&sive since i, aKec,s $neSs *ers$n an+ *r$*er,).

:n ,he reA&ire3en, ,ha, ,he *rer$ga,ive ,$ re,rench 3&s, 'e eFercise+ in g$$+ %ai,h, we have
r&#e+ ,ha, ,he hiring $% new e3*#$)ees an+ s&'seA&en, rehiring $% re,renche+ e3*#$)ees
c$ns,i,&,e 'a+ %ai,hO ,ha, ,he %ai#&re $% ,he e3*#$)er ,$ res$r, ,$ $,her #ess +ras,ic 3eas&res
,han re,rench3en, seri$&s#) 'e#ies i,s c#ai3 ,ha, re,rench3en, was +$ne in g$$+ %ai,h ,$ av$i+
#$ssesO an+ ,ha, ,he +e3$ns,ra,e+ ar'i,rariness in ,he se#ec,i$n $% which $% i,s e3*#$)ees ,$
Page 1-1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
re,rench is %&r,her *r$$% $% ,he i##ega#i,) $% ,he e3*#$)ers re,rench3en, *r$gra3, n$, ,$
3en,i$n i,s 'a+ %ai,h.

When PAL i3*#e3en,e+ P#an !!, ins,ea+ $% P#an 1., which was wha, i, ha+ $rigina##) 3a+e
<n$wn ,$ i,s e3*#$)ees, i, c$&#+ n$, 'e sai+ ,ha, i, ac,e+ in a 3anner c$3*a,i'#e wi,h g$$+
%ai,h. I, $Kere+ n$ sa,is%ac,$r) eF*#ana,i$n wh) i, a'an+$ne+ P#an 1.O ins,ea+, i, E&s,iJe+ i,s
ac,i$ns $% s&'seA&en,#) reca##ing ,$ +&,) re,renche+ e3*#$)ees ') 3a<ing i, a**ear ,ha, i,
was a sh$w $% g$$+ %ai,hO ,ha, i, was +&e ,$ i,s g$$+ c$r*$ra,e na,&re ,ha, ,he +ecisi$n ,$
c$nsi+er reca##ing e3*#$)ees was 3a+e. The ,r&,h, h$wever, is ,ha, i, was &n%air %$r PAL ,$
have 3a+e s&ch a 3$veO i, was ca*rici$&s an+ ar'i,rar), c$nsi+ering ,ha, severa# ,h$&san+
e3*#$)ees wh$ ha+ #$ng 'een w$r<ing %$r PAL ha+ #$s, ,heir E$'s, $n#) ,$ 'e reca##e+ '&,
assigne+ ,$ #$wer *$si,i$ns =i.e., +e3$,e+?, an+, w$rse, s$3e as new hires, wi,h$&, +&e regar+
%$r ,heir #$ng )ears $% service wi,h ,he air#ine.

The irreg&#ari,) $% PALs i3*#e3en,a,i$n $% P#an 1. 'ec$3es 3$re a**aren, when i, rehire+
1.( *r$'a,i$nar) ca'in a,,en+an,s wh$se services i, ha+ *revi$&s#) ,er3ina,e+, an+ )e,
*r$cee+e+ ,$ ,er3ina,e ,he services $% i,s *er3anen, ca'in crew *ers$nne#.

In s&3, we Jn+ ,ha, PAL ha+ i3*#e3en,e+ i,s re,rench3en, *r$gra3 in an ar'i,rar) 3anner
an+ wi,h evi+en, 'a+ %ai,h, which *reE&+ice+ ,he ,en&ria# righ,s $% ,he ca'in crew *ers$nne#.

9I9TH ELEMENTL
In se#ec,ing e3*#$)ees ,$ 'e +is3isse+, %air an+ reas$na'#e cri,eria 3&s, 'e &se+, s&ch as '&,
n$, #i3i,e+ ,$L =a? #ess *re%erre+ s,a,&s =e.g., ,e3*$rar) e3*#$)ee?, ='? eIcienc) an+ =c?
seni$ri,).

In ,he i3*#e3en,a,i$n $% i,s re,rench3en, sche3e, PAL eva#&a,e+ ,he ca'in crew *ers$nne#s
*er%$r3ance +&ring ,he )ear *rece+ing ,he re,rench3en, =199"?, 'ase+ $n ,he %$##$wing se, $%
cri,eria $r rating variables %$&n+ in ,he Per%$r3ance Eva#&a,i$n 9$r3 $% ,he ca'in crew
*ers$nne#s Gr$$3ing an+ A**earance Han+'$$<L

A. IN9LIGHT PR:9ICIENC@ E8AL>ATI:N (V

B. 6:B PER9:RMANCE 2V
S*ecia# Awar+ d2
C$33en+a,i$ns d!
A**recia,i$n d1
7isci*#inar) Ac,i$ns Re3in+er =5?, WarningBA+3$ni,i$n ; Re*ri3an+s =52?, S&s*ensi$n =5
!(?, Passenger C$3*#ain,s =5(?, A**earance =51(?

C. ATTEN7ANCE 2V
Per%ec, A,,en+ance d!
Misse+ Assign3en, 5(
Sic< Leaves in eFcess $% a##$,3en, an+ $,her #eaves in eFcess $% a##$,3en, 5!(
Tar+iness 51(
1/90

The a**e##a,e c$&r, he#+ ,ha, ,here was n$ nee+ %$r PAL ,$ c$ns&#, wi,h 9ASAP regar+ing
s,an+ar+s $r cri,eria ,ha, ,he air#ine w$&#+ &,i#i4e in ,he i3*#e3en,a,i$n $% ,he re,rench3en,
*r$gra3O an+ ,ha, ,he cri,eria ac,&a##) &se+ which was &ni#a,era##) %$r3&#a,e+ ') PAL &sing i,s
1
Page 1-!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Per%$r3ance Eva#&a,i$n 9$r3 in i,s Gr$$3ing an+ A**earance Han+'$$< was reas$na'#e an+
%air. In+ee+, PAL was n$, $'#iga,e+ ,$ c$ns&#, 9ASAP regar+ing ,he s,an+ar+s i, w$&#+ &se in
eva#&a,ing ,he *er%$r3ance $% ,he each ca'in crew. H$wever, ,he cri,eria &,i#i4e+ ') PAL in ,he
ac,&a# re,rench3en, were n$, reas$na'#e an+ %air.

In+ee+, ,he NLRC 3a+e a +e,ai#e+ #is,ing $% ,he re,rench3en, sche3e 'ase+ $n ,he ICC7
Mas,eran< an+ Seni$ri,) 199" Ra,ings. I, %$&n+ ,he %$##$wingL

1. N&3'er $% e3*#$)ees re,renche+ +&e ,$ inverse seni$ri,) r&#e an+ $,her reas$ns 55 .2.
!. N&3'er $% e3*#$)ees re,renche+ +&e ,$ eFcess sic< #eaves 55 !99
. N&3'er $% e3*#$)ees wh$ were re,renche+ +&e ,$ eFcess sic< #eave an+ $,her reas$ns
55 -1
.. N&3'er $% e3*#$)ees wh$ were re,renche+ +&e ,$ $,her reas$ns 55 1("
2. N&3'er $% e3*#$)ees wh$ were +e3$,e+ 55 22!

T$,a# 55 1,."..

Pr$3inen, %r$3 ,he a'$ve +a,a is ,he re,rench3en, $% ca'in crew *ers$nne# +&e ,$ $,her
reas$ns which, h$wever, are n$, s*eciJca##) s,a,e+ an+ sh$wn ,$ 'e %$r a va#i+ ca&se. This is
n$, a##$we+ 'eca&se i, has n$ 'asis in %ac, an+ in #aw.

M$re$ver, in assessing ,he $vera## *er%$r3ance $% each ca'in crew *ers$nne#, PAL $n#)
c$nsi+ere+ ,he )ear 199". This 3a<es ,he eva#&a,i$n $% each ca'in a,,en+an,s eIcienc)
ra,ing ca*rici$&s an+ *reE&+icia# ,$ PAL e3*#$)ees c$vere+ ') i,. B) +iscar+ing ,he ca'in crew
*ers$nne#s *revi$&s )ears $% service an+ ,a<ing in,$ c$nsi+era,i$n $n#) $ne )ears w$r,h $% E$'
*er%$r3ance %$r eva#&a,i$n, PAL vir,&a##) +i+ awa) wi,h ,he c$nce*, $% seni$ri,), #$)a#,) an+
*as, eIcienc), an+ ,rea,e+ a## ca'in a,,en+an,s as i% ,he) were $n eA&a# %$$,ing, .it$ no one
more senior t$an t$e ot$er.

In s&3, PALs re,rench3en, *r$gra3 is i##ega# 'eca&se i, was 'ase+ $n wr$ng%&# *re3ise =P#an
1., which in rea#i,) ,&rne+ $&, ,$ 'e P#an !!, res&#,ing in re,rench3en, $% 3$re ca'in
a,,en+an,s ,han was necessar)? an+ in a se, $% cri,eria $r ra,ing varia'#es ,ha, is &n%air an+
&nreas$na'#e when i3*#e3en,e+. I, %ai#e+ ,$ ,a<e in,$ acc$&n, each ca'in a,,en+an,s
res*ec,ive service rec$r+, ,here') +isregar+ing seni$ri,) an+ #$)a#,) in ,he eva#&a,i$n $%
$vera## e3*#$)ee *er%$r3ance.

7ISP:SITI:NL
WHERE9:RE, ,he ins,an, *e,i,i$n is GRANTE7. The assai#e+ 7ecisi$n $% ,he C$&r, $% A**ea#s in
CA5G.R. SP N$. 1"92- +a,e+ A&g&s, !, !((-, which aIr3e+ ,he 7ecisi$n $% ,he NLRC se,,ing
asi+e ,he La'$r Ar'i,ers Jn+ings $% i##ega# re,rench3en, an+ i,s Res$#&,i$n $% Ma) !9, !(("
+en)ing ,he 3$,i$n %$r rec$nsi+era,i$n, are RE8ERSE7 an+ SET ASI7E an+ a new $ne is
ren+ere+L

1. 9IN7ING res*$n+en, Phi#i**ine Air#ines, Inc. G>ILT@ $% i##ega# +is3issa#O

!. :R7ERING Phi#i**ine Air Lines, Inc. ,$ reins,a,e ,he ca'in crew *ers$nne# wh$ were
c$vere+ ') ,he re,rench3en, an+ +e3$,i$n sche3e $% 6&ne 12, 1991 3a+e eKec,ive $n 6&#)
12, 1991, wi,h$&, #$ss $% seni$ri,) righ,s an+ $,her *rivi#eges, an+ ,$ *a) ,he3 %&## 'ac<wages,
inc#&sive $% a##$wances an+ $,her 3$ne,ar) 'eneJ,s c$3*&,e+ %r$3 ,he ,i3e $% ,heir
se*ara,i$n &* ,$ ,he ,i3e $% ,heir ac,&a# reins,a,e3en,, *r$vi+e+ ,ha, wi,h res*ec, ,$ ,h$se
wh$ ha+ receive+ ,heir res*ec,ive se*ara,i$n *a), ,he a3$&n,s $% *a)3en,s sha## 'e +e+&c,e+
%r$3 ,heir 'ac<wages. Where reins,a,e3en, is n$ #$nger %easi'#e 'eca&se ,he *$si,i$ns
Page 1-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*revi$&s#) he#+ n$ #$nger eFis,, res*$n+en, C$r*$ra,i$n sha## *a) 'ac<wages *#&s, in #ie& $%
reins,a,e3en,, se*ara,i$n *a) eA&a# ,$ $ne =1? 3$n,h *a) %$r ever) )ear $% serviceO

. :R7ERING Phi#i**ine Air#ines, Inc. ,$ *a) a,,$rne)s %ees eA&iva#en, ,$ ,en *ercen, =1(V?
$% ,he ,$,a# 3$ne,ar) awar+.

C$s,s agains, res*$n+en, PAL.
2". 2ohn @ancoc: Life !nsurance Cor%. vs. 4avis, G.R. No. 1)9.*9, Se%(. 3, 2""-
9ac,sL
6$anna Can,re 7avis was agenc) a+3inis,ra,i$n $Icer $% 6$hn Hanc$c< Li%e Ins&rance
C$r*$ra,i$n. :n :c,$'er 11, !(((, Pa,ricia @&sec$, 6HLICGs c$r*$ra,e aKairs 3anager,
+isc$vere+ ,ha, her wa##e, was 3issing. She i33e+ia,e#) re*$r,e+ ,he #$ss $% her cre+i, car+s
,$ AIG an+ BPI EF*ress. T$ her s&r*rise, she was in%$r3e+ ,ha, PPa,ricia @&sec$P ha+ E&s, 3a+e
s&'s,an,ia# *&rchases &sing her cre+i, car+s in vari$&s s,$res in ,he Ci,) $% Mani#a. She was
a#s$ ,$#+ ,ha, a *r$*$se+ ,ransac,i$n in A'ens$nSs5R$'ins$ns P#ace was +isa**r$ve+ 'eca&se
PsheP gave ,he wr$ng in%$r3a,i$n &*$n veriJca,i$n. Beca&se #$ss $% *ers$na# *r$*er,) a3$ng
i,s e3*#$)ees ha+ 'ec$3e ra3*an, in i,s $Ice, *e,i,i$ner s$&gh, ,he assis,ance $% NBI. The
NBI, $',aine+ a sec&ri,) vi+e$ %r$3 A'ens$nSs sh$wing ,he *ers$n wh$ &se+ @&sec$Ss cre+i,
car+s. @&sec$ an+ $,her wi,nesses *$si,ive#) i+en,iJe+ ,he *ers$n in ,he vi+e$ as 7avis NBI
an+ @&sec$ J#e+ a c$3*#ain, %$r A&a#iJe+ ,he%, agains, 7avis '&, 'eca&se ,he aI+avi,s
*resen,e+ ') ,he NBI =i+en,i%)ing res*$n+en, as ,he c&#*ri,? were n$, *r$*er#) veriJe+, ,he ci,)
*r$sec&,$r +is3isse+ ,he c$3*#ain, +&e ,$ ins&Icienc) $% evi+ence. Meanwhi#e, *e,i,i$ner
*#ace+ 7avis &n+er *reven,ive s&s*ensi$n an+ ins,r&c,e+ her ,$ c$$*era,e wi,h i,s $ng$ing
inves,iga,i$n. 7avis J#e+ a c$3*#ain, %$r i##ega# +is3issa# a##eging ,ha, *e,i,i$ner ,er3ina,e+
her e3*#$)3en, wi,h$&, ca&se. The #a'$r ar'i,er, in Ma) !1, !((!, %$&n+ ,ha, 7avis
c$33i,,e+ seri$&s 3isc$n+&c, =she was ,he *rinci*a# s&s*ec, %$r A&a#iJe+ ,he%, c$33i,,e+
insi+e *e,i,i$nerSs $Ice +&ring w$r< h$&rs?. There was a va#i+ ca&se %$r her +is3issa#. Th&s,
,he c$3*#ain, was +is3isse+ %$r #ac< $% 3eri,. >*$n a**ea#, NLRC aIr3e+ ,he #a'$r ar'i,er in
6&#) 1, !(( an+ +enie+ her 3$,i$n %$r rec$nsi+era,i$n in :c,$'er (, !((. >*$n *e,i,i$n %$r
cer,i$rari J#e+ wi,h ,he CA, CA $n 6&#) ., !((2 gran,e+ ,he *e,i,i$n h$#+ing ,ha, ,he #a'$r
ar'i,er an+ NLRC 3ere#) a+$*,e+ ,he Jn+ings $% ,he NBI regar+ing res*$n+en,Ss c&#*a'i#i,).
Beca&se ,he aI+avi,s $% ,he wi,nesses were n$, veriJe+, ,he) +i+ n$, c$ns,i,&,e s&'s,an,ia#
evi+ence. The #a'$r ar'i,er an+ NLRC sh$&#+ have assesse+ evi+ence in+e*en+en,#) as
P&ns&'s,an,ia,e+ s&s*ici$ns, acc&sa,i$ns an+ c$nc#&si$ns $% e3*#$)ers =+i+? n$, *r$vi+e #ega#
E&s,iJca,i$n %$r +is3issing an e3*#$)eeP. Pe,i,i$ner 3$ve+ %$r rec$nsi+era,i$n '&, i, was
+enie+. Hence, ,his *e,i,i$n where *e,i,i$ner arg&es ,ha, ,he gr$&n+ %$r an e3*#$)eeSs
+is3issa# nee+ $n#) 'e *r$ven ') s&'s,an,ia# evi+ence. Th&s, ,he +r$**ing $% charges agains,
an e3*#$)ee =es*ecia##) $n a ,echnica#i,) s&ch as #ac< $% *r$*er veriJca,i$n? $r his s&'seA&en,
acA&i,,a# +$es n$, *rec#&+e an e3*#$)er %r$3 +is3issing hi3 +&e ,$ seri$&s 3isc$n+&c,.
Iss&eL
Whe,her $r n$, *e,i,i$ner s&'s,an,ia##) *r$ve+ ,he *resence $% va#i+ ca&se %$r res*$n+en,Ss
,er3ina,i$n.
Ruling<
Page 1-.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
S&*re3e C$&r, gran,e+ ,he *e,i,i$n an+ r&#e+ ,ha, *e,i,i$ner va#i+#) +is3isse+ 7avis %$r ca&se
ana#$g$&s ,$ seri$&s 3isc$n+&c,.
Ar,ic#e !1! $% ,he La'$r C$+e *r$vi+esL Ter3ina,i$n ') E3*#$)er. ` An e3*#$)er 3a)
,er3ina,e an e3*#$)3en, %$r an) $% ,he %$##$wing ca&sesL
=a? Seri$&s 3isc$n+&c, $r wi##%&# +is$'e+ience ') ,he e3*#$)ee $% ,he #aw%&# $r+ers $% his
e3*#$)er $r his re*resen,a,ives in c$nnec,i$n wi,h his w$r<O
=e? :,her ca&ses ana#$g$&s ,$ ,he %$reg$ing.
Misc$n+&c, inv$#ves P,he ,ransgressi$n $% s$3e es,a'#ishe+ an+ +eJni,e r&#e $% ac,i$n,
%$r'i++en ac,, a +ere#ic,i$n $% +&,), wi##%&# in charac,er, an+ i3*#ies wr$ng%&# in,en, an+ n$,
3ere err$r in E&+g3en,P. 9$r 3isc$n+&c, ,$ 'e seri$&s an+ ,here%$re a va#i+ gr$&n+ %$r
+is3issa#, i, 3&s, 'eL
$% grave an+ aggrava,e+ charac,er an+ n$, 3ere#) ,rivia# $r &ni3*$r,an, an+
c$nnec,e+ wi,h ,he w$r< $% ,he e3*#$)ee.
In ,his case, *e,i,i$ner +is3isse+ 7avis 'ase+ $n ,he NBISs Jn+ing ,ha, ,he #a,,er s,$#e an+
&se+ @&sec$Ss cre+i, car+s. B&, since ,he ,he%, was n$, c$33i,,e+ agains, *e,i,i$ner i,se#% '&,
agains, $ne $% i,s e3*#$)ees, res*$n+en,Ss 3isc$n+&c, was n$, w$r<5re#a,e+ an+ ,here%$re,
she c$&#+ n$, 'e +is3isse+ %$r seri$&s 3isc$n+&c,. N$ne,he#ess, Ar,ic#e !1! =e? $% ,he La'$r
C$+e ,a#<s $% $,her ana#$g$&s ca&ses $r ,h$se which are s&sce*,i'#e $% c$3*aris$n ,$ an$,her
in genera# $r in s*eciJc +e,ai#. 9$r an e3*#$)ee ,$ 'e va#i+#) +is3isse+ %$r a ca&se ana#$g$&s
,$ ,h$se en&3era,e+ in Ar,ic#e !1!, ,he ca&se 3&s, inv$#ve a v$#&n,ar) an+B$r wi##%&# ac, $r
$3issi$n $% ,he e3*#$)ee. A ca&se ana#$g$&s ,$ seri$&s 3isc$n+&c, is a v$#&n,ar) an+B$r
wi##%&# ac, $r $3issi$n a,,es,ing ,$ an e3*#$)eeSs 3$ra# +e*ravi,). The%, c$33i,,e+ ') an
e3*#$)ee agains, a *ers$n $,her ,han his e3*#$)er, i% *r$ven ') s&'s,an,ia# evi+ence, is a
ca&se ana#$g$&s ,$ seri$&s 3isc$n+&c,. 7i+ *e,i,i$ner s&'s,an,ia##) *r$ve ,he eFis,ence $%
va#i+ ca&se %$r res*$n+en,Ss se*ara,i$nW @es. The #a'$r ar'i,er an+ ,he NLRC re#ie+ n$, $n#) $n
,he aI+avi,s $% ,he NBISs wi,nesses '&, a#s$ $n ,ha, $% res*$n+en,. The) #i<ewise c$nsi+ere+
*e,i,i$nerSs $wn inves,iga,ive Jn+ings. C#ear#), ,he) +i+ n$, 3ere#) a+$*, ,he Jn+ings $% ,he
NBI '&, in+e*en+en,#) assesse+ evi+ence *resen,e+ ') ,he *ar,ies. Their c$nc#&si$n =,ha,
,here was va#i+ ca&se %$r res*$n+en,Ss se*ara,i$n %r$3 e3*#$)3en,? was ,here%$re s&**$r,e+
') s&'s,an,ia# evi+ence.
21. Merin vs. NLRC, G.R. No. 17179", 7c(oer 17, 2""-
9ac,sL
Res*$n+en, Ma3ac was hire+ as '&s c$n+&c,$r $% 7$n Marian$ Transi, C$r*$ra,i$n =7MTC? $n
A*ri# !9, 1999. Res*$n+en, was reA&ire+ ,$ acc$3*#ish a PC$n+&c,$rSs Tri* Re*$r,P an+ s&'3i,
i, ,$ ,he c$3*an) a%,er each ,ri*. As a 'ac<gr$&n+, ,his re*$r, in+ica,es ,he ,ic<e, $*ening an+
c#$sing %$r ,he *ar,ic&#ar +a) $% +&,). A%,er s&'3issi$n, ,he c$3*an) a&+i,s ,he re*$r,s. :nce
an irreg&#ari,) is +isc$vere+, ,he c$3*an) iss&es an PIrreg&#ari,) Re*$r,P agains, ,he
e3*#$)ee, in+ica,ing ,he na,&re an+ +e,ai#s $% ,he irreg&#ari,). Therea%,er, ,he c$ncerne+
e3*#$)ee is as<e+ ,$ eF*#ain ,he inci+en, ') 3a<ing a wri,,en s,a,e3en, $r c$&n,er5aI+avi,
a, ,he 'ac< $% ,he sa3e Irreg&#ari,) Re*$r,. A%,er c$nsi+ering ,he eF*#ana,i$n $% ,he e3*#$)ee,
,he c$3*an) ,hen 3a<es a +e,er3ina,i$n $% whe,her ,$ acce*, ,he eF*#ana,i$n $r i3*$se
&*$n ,he e3*#$)ee a *ena#,) %$r c$33i,,ing an in%rac,i$n. Tha, +ecisi$n sha## 'e s,a,e+ $n
sai+ Irreg&#ari,) Re*$r, an+ wi## 'e %&rnishe+ ,$ ,he e3*#$)ee.
>*$n a&+i, $% ,he :c,$'er !1, !((1 C$n+&c,$rSs Re*$r, $% res*$n+en,, HHTI n$,e+ an
irreg&#ari,). I, +isc$vere+ ,ha, res*$n+en, +ec#are+ severa# s$#+ ,ic<e,s as re,&rne+ ,ic<e,s
Page 1-2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
ca&sing HHTI ,$ #$se an inc$3e $% eigh, h&n+re+ an+ nine,) *es$s. Whi#e n$ irreg&#ari,) re*$r,
was *re*are+ $n ,he :c,$'er !1, !((1 inci+en,, HHTI never,he#ess as<e+ res*$n+en, ,$
eF*#ain ,he +iscre*anc). In his #e,,er, res*$n+en, sai+ ,ha, ,he err$ne$&s +ec#ara,i$n in his
:c,$'er !1, !((1 Tri* Re*$r, was &nin,en,i$na#. He eF*#aine+ ,ha, +&ring ,ha, +a)Ss ,ri*, ,he
win+shie#+ $% ,he '&s assigne+ ,$ ,he3 was s3ashe+O an+ ,he) ha+ ,$ c&, sh$r, ,he ,ri* in
$r+er ,$ i33e+ia,e#) re*$r, ,he 3a,,er ,$ ,he *$#ice. As a res&#, $% ,he inci+en,, he g$,
c$n%&se+ in 3a<ing ,he ,ri* re*$r,.
:n N$ve3'er !-, !((1, res*$n+en, receive+ a #e,,er ,er3ina,ing his e3*#$)3en, eKec,ive
N$ve3'er !9, !((1. The +is3issa# #e,,er a##ege+ ,ha, ,he :c,$'er !1, !((1 irreg&#ari,) was an
ac, $% %ra&+ agains, ,he c$3*an). HHTI a#s$ ci,e+ as 'asis %$r res*$n+en,Ss +is3issa# ,he $,her
$Kenses he a##ege+#) c$33i,,e+ since 1999.
Res*$n+en, J#e+ a C$3*#ain, %$r i##ega# +is3issa#, i##ega# +e+&c,i$ns, n$n*a)3en, $% 1,h5
3$n,h *a), service incen,ive #eave, an+ se*ara,i$n *a). He +enie+ c$33i,,ing an) in%rac,i$n
an+ a##ege+ ,ha, his +is3issa# was in,en+e+ ,$ '&s, &ni$n ac,ivi,ies. M$re$ver, he c#ai3e+ ,ha,
his +is3issa# was eKec,e+ wi,h$&, +&e *r$cess.
HHTI c$n,en+e+ ,ha, res*$n+en, was #ega##) +is3isse+ a%,er his c$33issi$n $% a series $%
3isc$n+&c,s an+ 3is+ee+s. I, c#ai3e+ ,ha, res*$n+en, ha+ vi$#a,e+ ,he ,r&s, an+ c$nJ+ence
re*$se+ &*$n hi3 ') HHTI. A#s$, i, averre+ ,ha, i, ha+ $'serve+ +&e *r$cess in +is3issing
res*$n+en, an+ 3ain,aine+ ,ha, res*$n+en, was n$, en,i,#e+ ,$ his 3$ne) c#ai3s s&ch as
service incen,ive #eave an+ 1,h53$n,h *a) 'eca&se he was *ai+ $n c$33issi$n $r
*ercen,age 'asis.
Iss&eL
Whe,her $r n$, *r$ce+&ra# reA&ire3en,s were c$3*#ie+ wi,h.
R&#ingL
7&e *r$cess &n+er ,he La'$r C$+e inv$#ves ,w$ as*ec,sL Jrs,, s&'s,an,ive ` ,he va#i+ an+
a&,h$ri4e+ ca&ses $% ,er3ina,i$n $% e3*#$)3en, &n+er ,he La'$r C$+eO an+ sec$n+,
*r$ce+&ra# ` ,he 3anner $% +is3issa#.
N$n5c$3*#iance wi,h ,he 7&e Pr$cess ReA&ire3en,s
Ar,. !"" $% ,he La'$r C$+e *r$vi+es ,he 3anner $% ,er3ina,i$n $% e3*#$)3en,, ,h&sL
Ar,. !"". Misce##ane$&s Pr$visi$ns. ` . . .
='?S&'Eec, ,$ ,he c$ns,i,&,i$na# righ, $% w$r<ers ,$ sec&ri,) $% ,en&re an+ ,heir righ, ,$ 'e
*r$,ec,e+ agains, +is3issa# eFce*, %$r a E&s, an+ a&,h$ri4e+ ca&se wi,h$&, *reE&+ice ,$ ,he
reA&ire3en, $% n$,ice &n+er Ar,ic#e !1 $% ,his C$+e, ,he e3*#$)er sha## %&rnish ,he w$r<er
wh$se e3*#$)3en, is s$&gh, ,$ 'e ,er3ina,e+ a wri,,en n$,ice c$n,aining a s,a,e3en, $% ,he
ca&ses %$r ,er3ina,i$n an+ sha## aK$r+ ,he #a,,er a3*#e $**$r,&ni,) ,$ 'e hear+ an+ ,$ +e%en+
hi3se#% wi,h ,he assis,ance $% his re*resen,a,ive i% he s$ +esires in acc$r+ance wi,h c$3*an)
r&#es an+ reg&#a,i$ns *r$3&#ga,e+ *&rs&an, ,$ g&i+e#ines se, ') ,he 7e*ar,3en, $% La'$r an+
E3*#$)3en,. An) +ecisi$n ,a<en ') ,he e3*#$)er sha## 'e wi,h$&, *reE&+ice ,$ ,he righ, $% ,he
w$r<er ,$ c$n,es, ,he va#i+i,) $r #ega#i,) $% his +is3issa# ') J#ing a c$3*#ain, wi,h ,he regi$na#
'ranch $% ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n. The '&r+en $% *r$ving ,ha, ,he
,er3ina,i$n was %$r a va#i+ $r a&,h$ri4e+ ca&se sha## res, $n ,he e3*#$)er.
Acc$r+ing#), ,he i3*#e3en,ing r&#e $% ,he a%$resai+ *r$visi$n s,a,esL
Page 1--
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
SEC. !.S,an+ar+s $% +&e *r$cessO reA&ire3en,s $% n$,ice. ` In a## cases $% ,er3ina,i$n $%
e3*#$)3en,, ,he %$##$wing s,an+ar+s $% +&e *r$cess sha## 'e s&'s,an,ia##) $'serve+L
I.9$r ,er3ina,i$n $% e3*#$)3en, 'ase+ $n E&s, ca&ses as +eJne+ in Ar,ic#e !1! $% ,he C$+eL
=a?A wri,,en n$,ice serve+ $n ,he e3*#$)ee s*eci%)ing ,he gr$&n+ $r gr$&n+s %$r ,er3ina,i$n,
an+ giving sai+ e3*#$)ee reas$na'#e $**$r,&ni,) wi,hin which ,$ eF*#ain his si+e.
='?A hearing $r c$n%erence +&ring which ,he e3*#$)ee c$ncerne+, wi,h ,he assis,ance $%
c$&nse# i% he s$ +esires is given $**$r,&ni,) ,$ res*$n+ ,$ ,he charge, *resen, his evi+ence, $r
re'&, ,he evi+ence *resen,e+ agains, hi3.
=c?A wri,,en n$,ice $% ,er3ina,i$n serve+ $n ,he e3*#$)ee, in+ica,ing ,ha, &*$n +&e
c$nsi+era,i$n $% a## ,he circ&3s,ances, gr$&n+s have 'een es,a'#ishe+ ,$ E&s,i%) his
,er3ina,i$n.
In case $% ,er3ina,i$n, ,he %$reg$ing n$,ices sha## 'e serve+ $n ,he e3*#$)eeSs #as, <n$wn
a++ress.
T$ c#ari%), ,he %$##$wing sh$&#+ 'e c$nsi+ere+ in ,er3ina,ing ,he services $% e3*#$)eesL
=1?The Jrs, wri,,en n$,ice ,$ 'e serve+ $n ,he e3*#$)ees sh$&#+ c$n,ain ,he s*eciJc ca&ses $r
gr$&n+s %$r ,er3ina,i$n agains, ,he3, an+ a +irec,ive ,ha, ,he e3*#$)ees are given ,he
$**$r,&ni,) ,$ s&'3i, ,heir wri,,en eF*#ana,i$n wi,hin a reas$na'#e *eri$+. 8Reasonable
opportunit&8 &n+er ,he :3ni'&s R&#es 3eans ever) <in+ $% assis,ance ,ha, 3anage3en, 3&s,
acc$r+ ,$ ,he e3*#$)ees ,$ ena'#e ,he3 ,$ *re*are a+eA&a,e#) %$r ,heir +e%ense. This sh$&#+
'e c$ns,r&e+ as a period of at least -ve /@0 alendar da&s from reeipt of t$e notie ,$ give
,he e3*#$)ees an $**$r,&ni,) ,$ s,&+) ,he acc&sa,i$n agains, ,he3, c$ns&#, a &ni$n $Icia# $r
#aw)er, ga,her +a,a an+ evi+ence, an+ +eci+e $n ,he +e%enses ,he) wi## raise agains, ,he
c$3*#ain,. M$re$ver, in $r+er ,$ ena'#e ,he e3*#$)ees ,$ in,e##igen,#) *re*are ,heir
eF*#ana,i$n an+ +e%enses, ,he n$,ice sh$&#+ c$n,ain a +e,ai#e+ narra,i$n $% ,he %ac,s an+
circ&3s,ances ,ha, wi## serve as 'asis %$r ,he charge agains, ,he e3*#$)ees. A genera#
+escri*,i$n $% ,he charge wi## n$, s&Ice. Las,#), ,he n$,ice sh$&#+ s*eciJca##) 3en,i$n which
c$3*an) r&#es, i% an), are vi$#a,e+ an+B$r which a3$ng ,he gr$&n+s &n+er Ar,. !1! is 'eing
charge+ agains, ,he e3*#$)ees.
=!?A%,er serving ,he Jrs, n$,ice, ,he e3*#$)ers sh$&#+ sche+&#e an+ c$n+&c, a hearing $r
c$n%erence wherein ,he e3*#$)ees wi## 'e given ,he $**$r,&ni,) ,$L =1? eF*#ain an+ c#ari%)
,heir +e%enses ,$ ,he charge agains, ,he3O =!? *resen, evi+ence in s&**$r, $% ,heir +e%ensesO
an+ =? re'&, ,he evi+ence *resen,e+ agains, ,he3 ') ,he 3anage3en,. 7&ring ,he hearing $r
c$n%erence, ,he e3*#$)ees are given ,he chance ,$ +e%en+ ,he3se#ves *ers$na##), wi,h ,he
assis,ance $% a re*resen,a,ive $r c$&nse# $% ,heir ch$ice. M$re$ver, ,his c$n%erence $r hearing
c$&#+ 'e &se+ ') ,he *ar,ies as an $**$r,&ni,) ,$ c$3e ,$ an a3ica'#e se,,#e3en,.
=?A%,er +e,er3ining ,ha, ,er3ina,i$n $% e3*#$)3en, is E&s,iJe+, ,he e3*#$)ers sha## serve ,he
e3*#$)ees a wri,,en n$,ice $% ,er3ina,i$n in+ica,ing ,ha,L =1? a## circ&3s,ances inv$#ving ,he
charge agains, ,he e3*#$)ees have 'een c$nsi+ere+O an+ =!? gr$&n+s have 'een es,a'#ishe+
,$ E&s,i%) ,he severance $% ,heir e3*#$)3en,.
In ,he ins,an, case, HHTI a+3i,s ,ha, i, ha+ %ai#e+ ,$ *r$vi+e res*$n+en, wi,h a Pcharge shee,.P
H$wever, i, 3ain,ains ,ha, i, ha+ s&'s,an,ia##) c$3*#ie+ wi,h ,he r&#es, c#ai3ing ,ha,
Pres*$n+en, w$&#+ n$, have iss&e+ a wri,,en eF*#ana,i$n ha+ he n$, 'een in%$r3e+ $% ,he
charges agains, hi3.P
We are n$, c$nvince+.
Page 1-"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
9irs,, res*$n+en, was n$, iss&e+ a wri,,en n$,ice charging hi3 $% c$33i,,ing an in%rac,i$n. The
#aw is c#ear $n ,he 3a,,er. A ver'a# a**raisa# $% ,he charges agains, an e3*#$)ee +$es n$,
c$3*#) wi,h ,he Jrs, n$,ice reA&ire3en,. In Pe*si C$#a B$,,#ing C$. v. NLRC, ,he C$&r, he#+ ,ha,
c$ns&#,a,i$ns $r c$n%erences are n$, a s&'s,i,&,e %$r ,he ac,&a# $'servance $% n$,ice an+
hearing.
Sec$n+, ,he C$&r, $'serve+ ,he irreg&#ari,) re*$r,s agains, res*$n+en, %$r his $,her $Kenses
,ha, s&ch c$n,aine+ 3ere#) a genera# +escri*,i$n $% ,he charges agains, hi3. The re*$r,s +i+
n$, even s,a,e a c$3*an) r&#e $r *$#ic) ,ha, ,he e3*#$)ee ha+ a##ege+#) vi$#a,e+. Li<ewise,
,here is n$ 3en,i$n $% an) $% ,he gr$&n+s %$r ,er3ina,i$n $% e3*#$)3en, &n+er Ar,. !1! $% ,he
La'$r C$+e. Th&s, HHTISs Ps,an+ar+P charge shee, is n$, s&Icien, n$,ice ,$ ,he e3*#$)ee.
Thir+, n$ hearing was c$n+&c,e+. Regar+#ess $% res*$n+en,Ss wri,,en eF*#ana,i$n, a hearing
was s,i## necessar) in $r+er %$r hi3 ,$ c#ari%) an+ *resen, evi+ence in s&**$r, $% his +e%ense.
M$re$ver, res*$n+en, 3a+e ,he #e,,er 3ere#) ,$ eF*#ain ,he circ&3s,ances re#a,ing ,$ ,he
irreg&#ari,). He was &naware ,ha, a +is3issa# *r$cee+ing was a#rea+) 'eing eKec,e+.
Sanc,i$n %$r N$n5c$3*#iance wi,h 7&e Pr$cess ReA&ire3en,s
As s,a,e+ ear#ier, a%,er a Jn+ing ,ha, *e,i,i$ners %ai#e+ ,$ c$3*#) wi,h ,he +&e *r$cess
reA&ire3en,s, ,he CA awar+e+ %&## 'ac<wages in %av$r $% res*$n+en, in acc$r+ance wi,h ,he
+$c,rine in Serran$ v. NLRC. H$wever, ,he +$c,rine in Serran$ ha+ a#rea+) 'een a'an+$ne+ in
Aga'$n v. NLRC ') r&#ing ,ha, i% ,he +is3issa# is +$ne wi,h$&, +&e *r$cess, ,he e3*#$)er
sh$&#+ in+e3ni%) ,he e3*#$)ee wi,h n$3ina# +a3ages.
Th&s, %$r n$n5c$3*#iance wi,h ,he +&e *r$cess reA&ire3en,s in ,he ,er3ina,i$n $%
res*$n+en,Ss e3*#$)3en,, *e,i,i$ner HHTI is sanc,i$ne+ ,$ *a) res*$n+en, ,he a3$&n, $%
,hir,) ,h$&san+ *es$s =PhP(,(((? as +a3ages.
22. Jrasuegui vs. 3hil Airlines, G.R. No. 1)-"-1, 7c(. 17, 2""-
9ac,sL
Ar3an+$ G. @ras&eg&i was a %$r3er in,erna,i$na# Tigh, s,ewar+ $% Phi#i**ine Air#ines, Inc.
=PAL?. He s,an+s Jve %ee, an+ eigh, inches =2G1N? wi,h a #arge '$+) %ra3e. The *r$*er weigh,
%$r a 3an $% his heigh, an+ '$+) s,r&c,&re is %r$3 1." ,$ 1-- *$&n+s, ,he i+ea# weigh, 'eing
1-- *$&n+s, as 3an+a,e+ ') ,he Ca'in an+ Crew A+3inis,ra,i$n Man&a# $% PAL. His weigh,
*r$'#e3 +a,es 'ac< ,$ 191. when PAL a+vise+ hi3 ,$ g$ $n an eF,en+e+ vaca,i$n #eave %r$3
7ece3'er !9, 191. ,$ March ., 1912 ,$ a++ress his weigh, c$ncerns. 9$r %ai#&re ,$ 3ee, ,he
weigh, s,an+ar+s an$,her #eave wi,h$&, *a) %r$3 March 2, 1912 ,$ N$ve3'er 1912 was
i3*$se+. He 3e, ,he reA&ire+ weigh, an+ was a##$we+ ,$ w$r< '&, his weigh, *r$'#e3
rec&rre+, ,h&s an$,her #eave wi,h$&, *a) %r$3 :c,$'er 1", 1911 ,$ 9e'r&ar) 1919. 9r$3 1919
,$ 199! his weigh, T&c,&a,e+ %r$3 !(9#', !12#', !1"#', !1!#', an+ !(2. 7&ring ,ha, *eri$+ he
was reA&es,e+ ,$ #$se weigh, an+ ,$ re*$r, %$r weigh, chec<s which he c$ns,an,#) %ai#e+ ,$ +$.
In ,he 3ean,i3e his s,a,&s was M$K5+&,).N 9ina##) in 199, *e,i,i$ner was %$r3a##) in%$r3e+ ')
PAL ,ha, +&e ,$ his ina'i#i,) ,$ a,,ain his i+ea# weigh,, Man+ c$nsi+ering ,he &,3$s, #enienc)N
eF,en+e+ ,$ hi3 Mwhich s*anne+ a *eri$+ c$vering a ,$,a# $% a#3$s, Jve =2? )ears,N his
services were c$nsi+ere+ ,er3ina,e+ MeKec,ive i33e+ia,e#).N He ,hen J#e+ a c$3*#ain, %$r
i##ega# +is3issa# agains, PAL. The La'$r Ar'i,er r&#e+ ,ha, he was i##ega##) +is3isse+ an+
en,i,#es ,$ reins,a,e3en,, 'ac<wages an+ a,,$rne)Gs %ees. The NLRC aIr3e+ ,he LA. The CA
reverse+ ,he NLRC.
Page 1-1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Iss&eL
Whe,her $r n$, *e,i,i$ner was i##ega##) +is3isse+.
R&#ingL
The $'esi,) $% *e,i,i$ner is a gr$&n+ %$r +is3issa# &n+er Ar,ic#e !1!=e?

$% ,he La'$r C$+e. The
weigh, s,an+ar+s $% PAL c$ns,i,&,e a c$n,in&ing A&a#iJca,i$n $% an e3*#$)ee in $r+er ,$ <ee*
,he E$'. Terse#) *&,, an e3*#$)ee 3a) 'e +is3isse+ ,he 3$3en, he is &na'#e ,$ c$3*#) wi,h
his i+ea# weigh, as *rescri'e+ ') ,he weigh, s,an+ar+s. The +is3issa# w$&#+ %a## &n+er Ar,ic#e
!1!=e? $% ,he La'$r C$+e. As eF*#aine+ ') ,he CAL
F F F /T0he s,an+ar+s vi$#a,e+ in ,his case were n$, 3ere M$r+ersN $% ,he e3*#$)erO ,he) were
,he M*rescri'e+ weigh,sN ,ha, a ca'in crew 3&s, 3ain,ain in order to ;ualif& for and +eep $is
or $er position in t$e ompan&. In $,her w$r+s, ,he) were s,an+ar+s ,ha, es,a'#ish ontinuing
;uali-ations %$r an e3*#$)eeGs *$si,i$n. U The %ai#&re ,$ 3ee, ,he e3*#$)erGs ;ualif&ing
standards is in %ac, a gr$&n+ ,ha, +$es n$, sA&are#) %a## &n+er gr$&n+s =a? ,$ =+? an+ is
,here%$re $ne ,ha, %a##s &n+er Ar,ic#e !1!=e? R ,he M$,her ca&ses ana#$g$&s ,$ ,he %$reg$ing.N
B) i,s na,&re, ,hese MA&a#i%)ing s,an+ar+sN are n$r3s ,ha, a**#) prior to and after an
e3*#$)ee is hire+. F F F
We h$#+ ,ha, ,he $'esi,) $% *e,i,i$ner, when *#ace+ in ,he c$n,eF, $% his w$r< as Tigh,
a,,en+an,, 'ec$3es an ana#$g$&s ca&se &n+er Ar,ic#e !1!=e? $% ,he La'$r C$+e ,ha, E&s,iJes
his +is3issa# %r$3 ,he service. His $'esi,) 3a) n$, 'e &nin,en+e+, '&, is n$ne,he#ess
v$#&n,ar).
II. The +is3issa# $% *e,i,i$ner can 'e *re+ica,e+ $n ,he '$na J+e $cc&*a,i$na# A&a#iJca,i$n
+e%ense. E3*#$)3en, in *ar,ic&#ar E$'s 3a) n$, 'e #i3i,e+ ,$ *ers$ns $% a *ar,ic&#ar seF,
re#igi$n, $r na,i$na# $rigin &n#ess ,he e3*#$)er can sh$w ,ha, seF, re#igi$n, $r na,i$na# $rigin is
an ac,&a# A&a#iJca,i$n %$r *er%$r3ing ,he E$'. The A&a#iJca,i$n is ca##e+ a '$na J+e
$cc&*a,i$na# A&a#iJca,i$n =B9:D?. A c$33$n carrier, %r$3 ,he na,&re $% i,s '&siness an+ %$r
reas$ns $% *&'#ic *$#ic), is '$&n+ ,$ $'serve eF,ra$r+inar) +i#igence %$r ,he sa%e,) $% ,he
*assengers i, ,rans*$r,s. Th&s, i, is $n#) #$gica# ,$ h$#+ ,ha, ,he weigh, s,an+ar+s $% PAL sh$w
i,s eK$r, ,$ c$3*#) wi,h ,he eFac,ing $'#iga,i$ns i3*$se+ &*$n i, ') #aw ') vir,&e $% 'eing a
c$33$n carrier. The *ri3ar) $'Eec,ive $% PAL in ,he i3*$si,i$n $% ,he weigh, s,an+ar+s %$r
ca'in crew is Tigh, sa%e,). The ,as< $% a ca'in crew $r Tigh, a,,en+an, is n$, #i3i,e+ ,$ serving
3ea#s $r a,,en+ing ,$ ,he whi3s an+ ca*rices $% ,he *assengers. The 3$s, i3*$r,an, ac,ivi,)
$% ,he ca'in crew is ,$ care %$r ,he sa%e,) $% *assengers an+ ,he evac&a,i$n $% ,he aircra%,
when an e3ergenc) $cc&rs. Passenger sa%e,) g$es ,$ ,he c$re $% ,he E$' $% a ca'in a,,en+an,.
Tr&#), air#ines nee+ ca'in a,,en+an,s wh$ have ,he necessar) s,reng,h ,$ $*en e3ergenc)
+$$rs, ,he agi#i,) ,$ a,,en+ ,$ *assengers in cra3*e+ w$r<ing c$n+i,i$ns, an+ ,he s,a3ina ,$
wi,hs,an+ gr&e#ing Tigh, sche+&#es. :n '$ar+ an aircra%,, ,he '$+) weigh, an+ si4e $% a ca'in
a,,en+an, are i3*$r,an, %ac,$rs ,$ c$nsi+er in case $% e3ergenc). Aircra%,s have c$ns,ric,e+
ca'in s*ace, an+ narr$w ais#es an+ eFi, +$$rs. Th&s, ,he arg&3en,s $% res*$n+en, ,ha,
M/w0he,her ,he air#ineGs Tigh, a,,en+an,s are $verweigh, $r n$, has n$ +irec, re#a,i$n ,$ i,s
3issi$n $% ,rans*$r,ing *assengers ,$ ,heir +es,ina,i$nNO an+ ,ha, ,he weigh, s,an+ar+s Mhas
n$,hing ,$ +$ wi,h airw$r,hiness $% res*$n+en,Gs air#ines,N 3&s, %ai#. The E$' $% a ca'in
a,,en+an, +&ring e3ergencies is ,$ s*ee+i#) ge, ,he *assengers $&, $% ,he aircra%, sa%e#).
Being $verweigh, necessari#) i3*e+es 3$'i#i,). In+ee+, in an e3ergenc) si,&a,i$n, sec$n+s
are wha, ca'in a,,en+an,s are +ea#ing wi,h, n$, 3in&,es.
Page 1-9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Three #$s, sec$n+s can ,rans#a,e in,$ ,hree #$s, #ives. Evac&a,i$n 3igh, s#$w +$wn E&s,
'eca&se a wi+e5'$+ie+ ca'in a,,en+an, is '#$c<ing ,he narr$w ais#es.
Pe,i,i$ner is en,i,#e+ ,$ se*ara,i$n *a). N$r3a##), a #ega##) +is3isse+ e3*#$)ee is n$, en,i,#e+
,$ se*ara,i$n *a). This 3a) 'e +e+&ce+ %r$3 ,he #ang&age $% Ar,ic#e !"9 $% ,he La'$r C$+e
,ha, M/a0n e3*#$)ee wh$ is &nE&s,#) +is3isse+ %r$3 w$r< sha## 'e en,i,#e+ ,$ reins,a,e3en,
wi,h$&, #$ss $% seni$ri,) righ,s an+ $,her *rivi#eges an+ ,$ his %&## 'ac<wages, inc#&sive $%
a##$wances, an+ ,$ his $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+ %r$3 ,he ,i3e his
c$3*ensa,i$n was wi,hhe#+ %r$3 hi3 &* ,$ ,he ,i3e $% his ac,&a# reins,a,e3en,.N L&c<i#) %$r
*e,i,i$ner, ,his is n$, an ir$nc#a+ r&#e. EFce*,i$na##), se*ara,i$n *a) is gran,e+ ,$ a #ega##)
+is3isse+ e3*#$)ee as an ac, Ms$cia# E&s,ice,N $r 'ase+ $n MeA&i,).N In '$,h ins,ances, i, is
reA&ire+ ,ha, ,he +is3issa# =1? was n$, %$r seri$&s 3isc$n+&c,O an+ =!? +$es n$, reTec, $n ,he
3$ra# charac,er $% ,he e3*#$)ee. Here, We gran, *e,i,i$ner se*ara,i$n *a) eA&iva#en, ,$ $ne5
ha#% =1B!? 3$n,hGs *a) %$r ever) )ear $% service. I, sh$&#+ inc#&+e reg&#ar a##$wances which he
3igh, have 'een receiving.
23. Sagales v. Rus(ans Co//ercial Cor%ora(ion, G.R. No. 1))..*, Nove/er 27,
2""-
9ac,sL
Pe,i,i$ner 6&#i,$ Saga#es was e3*#$)e+ ') res*$n+en, R&s,anGs C$33ercia# C$r*$ra,i$n
$cc&*)ing ,he *$si,i$n $% Chie% C$$< a, ,he @&3 @&3 Tree C$Kee Sh$* %r$3 :c,$'er 19"( &n,i#
6&#) !-, !((1, when he was ,er3ina,e+. He was *ai+ a 'asic 3$n,h#) sa#ar) $% P9,11(.((. He
was a#s$ receiving service charge $% n$, #ess ,han P,(((.(( a 3$n,h an+ $,her 'eneJ,s &n+er
,he #aw. Pe,i,i$ner was a#s$ a c$nsis,en, reci*ien, $% n&3er$&s ci,a,i$ns %$r his *er%$r3ance.
A%,er receiving his #a,es, awar+, *e,i,i$ner c$nve)e+ ,$ res*$n+en, his in,en,i$n $% re,iring,
a%,er reaching 1 )ears in service. Pe,i,i$ner, h$wever, was n$, a##$we+ ,$ re,ire wi,h his h$n$r
in,ac,.
:n 6&ne 11, !((1, Sec&ri,) G&ar+ Mag,ang$' a**rehen+e+ *e,i,i$ner in ,he ac, $% ,a<ing $&,
%r$3 R&s,anGs S&*er3ar<e, a *#as,ic 'ag c$n,aining 1.2 <i#$s $% sA&i+ hea+s w$r,h P2(.((.
Pe,i,i$ner was n$, a'#e ,$ sh$w an) recei*, when c$n%r$n,e+. Th&s, *e,i,i$ner was 'r$&gh, ,$
,he Ma<a,i P$#ice Cri3ina# Inves,iga,i$n 7ivisi$n where he was +e,aine+. Pe,i,i$ner was #a,er
$r+ere+ re#ease+ *en+ing %&r,her inves,iga,i$n '&, res*$n+en, *#ace+ *e,i,i$ner &n+er
*reven,ive s&s*ensi$n.
7&ring ,he inA&es, *r$cee+ings %$r A&a#iJe+ ,he%, 'e%$re Assis,an, Pr$sec&,$r Pine+a,
*e,i,i$ner c$n,en+e+ ,ha, a#,h$&gh he was in *$ssessi$n $% ,he *#as,ic 'ag c$n,aining ,he
sA&i+ hea+s, he +i+ n$, s,ea# ,he3 'eca&se he ac,&a##) *ai+ %$r ,he3. As *r$$%, *e,i,i$ner
*resen,e+ a recei*,. The $n#) %a&#, he c$33i,,e+ was his %ai#&re ,$ i33e+ia,e#) sh$w ,he
*&rchase recei*, when he was acc$s,e+ 'eca&se he 3is*#ace+ i, when he change+ his c#$,hes.
He a#s$ a##ege+ ,ha, ,he sA&i+ hea+s were a#rea+) Mscra*sN as ,hese were n$, in,en+e+ %$r
c$$<ing. Nei,her were ,he sA&i+ hea+s serve+ ,$ c&s,$3ers. He '$&gh, ,he sA&i+ hea+s s$
,ha, ,he) c$&#+ 'e ea,en ins,ea+ $% 'eing ,hr$wn awa). I% he in,en+e+ ,$ s,ea# %r$3
res*$n+en,, he c$&#+ have s,$#en $,her va#&a'#e i,e3s ins,ea+ $% scra*. Pine+a 'e#ieve+ ,he
versi$n $% *e,i,i$ner an+ rec$33en+e+ ,he +is3issa# $% ,he case %$r M#ac< $% evi+ence.N
A %$r3a# inves,iga,i$n was c$n+&c,e+ ') ,he Lega# 7e*ar,3en, $n 6&#) -, !((1. Res*$n+en,
+i+ n$, Jn+ 3eri, in ,he eF*#ana,i$n $% *e,i,i$ner. Th&s, *e,i,i$ner was +is3isse+ %r$3 service
$n 6&#) !-, !((1. A, ,ha, ,i3e, *e,i,i$ner ha+ 'een &n+er *reven,ive s&s*ensi$n %$r 1 3$n,h.
Page 1"(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Aggrieve+, *e,i,i$ner J#e+ a c$3*#ain, %$r i##ega# +is3issa# agains, res*$n+en,. He a#s$ *ra)e+
%$r &n*ai+ sa#ariesBwages, $ver,i3e *a), as we## as 3$ra# an+ eFe3*#ar) +a3ages, a,,$rne)Gs
%ees, an+ service charges.
La'$r Ar'i,er Pa,i +is3isse+

,he c$3*#ain,. Acc$r+ing ,$ ,he La'$r Ar'i,er, ,he na,&re $% ,he
res*$nsi'i#i,) $% *e,i,i$ner Mwas n$, ,ha, $% an $r+inar) e3*#$)ee.N I, ,hen wen, $n ,$
ca,eg$ri4e *e,i,i$ner as a s&*ervis$r in Ma *$si,i$n $% res*$nsi'i#i,) where ,r&s, an+ c$nJ+ence
is inheren,#) in%&se+.N As s&ch, i, 'eh$$ve+ hi3 M,$ 'e 3$re <n$w#e+gea'#e i% n$, ,he 3$s,
<n$w#e+gea'#e in c$3*an) *$#icies $n e3*#$)ee *&rchases $% %$$+ scra* i,e3s in ,he
<i,chen.N Per ,he evi+ence *resen,e+ ') res*$n+en,, *e,i,i$ner 'reache+ c$3*an) *$#ic)
which E&s,iJe+ his +is3issa#.
:n a**ea#, NLRC reverse+ ,he +ecisi$n $% ,he La'$r Ar'i,er. The NLRC he#+ ,ha, ,he *e,i,i$ner
is a 3ere ran<5an+5J#e e3*#$)ee.

The evi+ence is a#s$ wan,ing ,ha, *e,i,i$ner c$33i,,e+ ,he
cri3e charge+.

The NLRC +i+ n$, 'e#ieve ,ha, *e,i,i$ner w$&#+ ,ra+e $K a#3$s, 1 )ears $%
service %$r P2(.(( w$r,h $% sA&i+ hea+s. Hence, *e,i,i$ner was i##ega##) +is3isse+ as
res*$n+en, %ai#e+ ,$ es,a'#ish a E&s, ca&se %$r +is3issa#. H$wever, ,he c#ai3 %$r +a3ages was
+enie+ %$r #ac< $% evi+ence.
Res*$n+en, 'r$&gh, ,he 3a,,er ,$ ,he CA. In reversing ,he NLRC, ,he CA $*ine+ ,ha, ,he
*$si,i$n $% *e,i,i$ner was s&*ervis$r) in na,&re. The CA a#s$ he#+ ,ha, ,he evi+ence *resen,e+
') res*$n+en, c#ear#) es,a'#ishe+ #$ss $% ,r&s, an+ c$nJ+ence $n *e,i,i$ner. Las,#), ,he CA,
a#,h$&gh ,a<ing n$,e $% ,he #$ng )ears $% service $% *e,i,i$ner an+ his n&3er$&s awar+s,
re%&se+ ,$ awar+ se*ara,i$n *a) in his %av$r. Acc$r+ing ,$ ,he CA, M,he awar+ $% se*ara,i$n
*a) cann$, 'e s&s,aine+ &n+er ,he s$cia# E&s,ice ,he$r)N 'eca&se ,he ins,an, case Minv$#ves
,he%, $% ,he e3*#$)erGs *r$*er,).N
Pe,i,i$ner #e%, wi,h n$ $,her rec$&rse, avai#e+ $% ,he *resen, re3e+).
Iss&eLSL
=1? W:N *e,i,i$nerGs *$si,i$n is s&*ervis$r) in na,&re which is c$vere+ ') ,he ,r&s, an+
c$nJ+ence r&#e.
=!? W:N ,he evi+ence $n rec$r+ s&Icien, ,$ c$nc#&+e ,ha, *e,i,i$ner c$33i,,e+ ,he cri3e
charge+.
=? W:N ,he *ena#,) $% +is3issa# is *r$*er.
R&#ingL
I. The *$si,i$n $% *e,i,i$ner is s&*ervis$r) in na,&re which is c$vere+ ') ,he ,r&s, an+
c$nJ+ence r&#e.
The na,&re $% ,he E$' $% an e3*#$)ee 'ec$3es re#evan, in ,er3ina,i$n $% e3*#$)3en, ') ,he
e3*#$)er 'eca&se ,he r&#es $n ,er3ina,i$n $% 3anageria# an+ s&*ervis$r) e3*#$)ees are
+iKeren, %r$3 ,h$se $n ,he ran<5an+5J#e. Manageria# e3*#$)ees are ,as<e+ ,$ *er%$r3 <e)
an+ sensi,ive %&nc,i$ns, an+ ,h&s are '$&n+ ') 3$re eFac,ing w$r< e,hics. As a c$nseA&ence,
3anageria# e3*#$)ees are c$vere+ ') ,he ,r&s, an+ c$nJ+ence r&#e. The sa3e h$#+s ,r&e %$r
s&*ervis$r) e3*#$)ees $cc&*)ing *$si,i$ns $% res*$nsi'i#i,).
There is n$ +$&', ,ha, ,he *$si,i$n $% *e,i,i$ner as chie% c$$< is s&*ervis$r) in na,&re. A chie%
c$$< +irec,s an+ *ar,ici*a,es in ,he *re*ara,i$n an+ serving $% 3ea#sO +e,er3ines ,i3ing an+
seA&ence $% $*era,i$ns reA&ire+ ,$ 3ee, serving ,i3esO an+ ins*ec,s ga##e) an+ eA&i*3en, %$r
Page 1"1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c#ean#iness an+ *r$*er s,$rage an+ *re*ara,i$n $% %$$+.

Na,&ra##), a chie% c$$< %a##s &n+er ,he
+eJni,i$n $% a s&*ervis$r, i.e., $ne wh$, in ,he in,eres, $% ,he e3*#$)er, eKec,ive#)
rec$33en+s 3anageria# ac,i$ns which w$&#+ reA&ire ,he &se $% in+e*en+en, E&+g3en, an+
is n$, 3ere#) r$&,inar) $r c#erica#.
I, has n$, esca*e+ :&r a,,en,i$n ,ha, *e,i,i$ner change+ his s,ance as %ar as his ac,&a#
*$si,i$n is c$ncerne+. In his *$si,i$n *a*er, he a##ege+ ,ha, a, ,he ,i3e $% his +is3issa#, he
was MChie% C$$<.N
/.-0
H$wever, in his 3e3$ran+&3, he n$w c#ai3e+ ,ha, he was an MAss,.
C$$<.N

The *#$) is c#ear#) ai3e+ a, giving ,he i3*ressi$n ,ha, *e,i,i$ner is 3ere#) a ran<5an+5
J#e e3*#$)ee. The change in n$3enc#a,&re +$es n$,, h$wever, he#* *e,i,i$ner, as he w$&#+
s,i## 'e c$vere+ ') ,he ,r&s, an+ c$nJ+ence r&#e.
:% c$&rse, ,he r&#ing ass&3es grea,er signiJcance i% *e,i,i$ner is ,he chie% c$$<. A chie% c$$<
na,&ra##) *er%$r3s grea,er %&nc,i$ns an+ has 3$re res*$nsi'i#i,ies ,han an assis,an, c$$<. (n
eo ;uod plus sit simper inest et minimus. The grea,er a#wa)s inc#&+es ,he #ess. Ang mala.a+
a& laging sumasa+op sa maliit.
II. The evi+ence $n rec$r+ is s&Icien, ,$ c$nc#&+e ,ha, *e,i,i$ner c$33i,,e+ ,he cri3e
charge+.
Sec&ri,) $% ,en&re is a *ara3$&n, righ, $% ever) e3*#$)ee ,ha, is he#+ sacre+ ') ,he
C$ns,i,&,i$n.

The reas$n %$r ,his is ,ha, #a'$r is +ee3e+ ,$ 'e M*r$*er,)N

wi,hin ,he 3eaning
$% c$ns,i,&,i$na# g&aran,ees. In+ee+, as i, is ,he *$#ic) $% ,he S,a,e ,$ g&aran,ee ,he righ, $%
ever) w$r<er ,$ sec&ri,) $% ,en&re as an ac, $% s$cia# E&s,ice, s&ch righ, sh$&#+ n$, 'e
+enie+ $n 3ere s*ec&#a,i$n $% an) si3i#ar $r &nc#ear ne'&#$&s 'asis. In+ee+, ,he righ, $%
ever) e3*#$)ee ,$ sec&ri,) $% ,en&re is a## ,he 3$re sec&re+ ') ,he La'$r C$+e ') *r$vi+ing
,ha, M,he e3*#$)er sha## n$, ,er3ina,e ,he services $% an e3*#$)ee eFce*, %$r a E&s, ca&se $r
when a&,h$ri4e+N ') #aw. :,herwise, an e3*#$)ee wh$ is i##ega##) +is3isse+ Msha## 'e en,i,#e+
,$ reins,a,e3en, wi,h$&, #$ss $% seni$ri,) righ,s an+ $,her *rivi#eges an+ ,$ his %&## 'ac<wages,
inc#&sive $% a##$wances, an+ ,$ his $,her 'eneJ,s $r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+
%r$3 ,he ,i3e his c$3*ensa,i$n was wi,hhe#+ %r$3 hi3 &* ,$ ,he ,i3e $% his ac,&a#
reins,a,e3en,.N
Necessari#) ,hen, ,he e3*#$)er 'ears ,he '&r+en $% *r$$% ,$ sh$w ,he 'asis $% ,he ,er3ina,i$n
$% ,he e3*#$)ee.
In ,he case a, 'ar, res*$n+en, has +ischarge+ i,s onus $% *r$ving ,ha, *e,i,i$ner c$33i,,e+
,he cri3e charge+. We A&$,e wi,h a**r$va# ,he $'serva,i$n $% ,he CA in ,his regar+L
:n ,his 3a,,er, *e,i,i$ner *resen,s as evi+ence ,he veriJe+ s,a,e3en, $% sec&ri,) g&ar+
Aranas. Aranas *$si,ive#) saw ,he *riva,e in ,he ac, $% 'ringing $&, ,he *&r#$ine+ sA&i+ hea+s.
Si3i#ar#), ,he s,a,e3en, $% sec&ri,) g&ar+ Mag,ang$' a,,es,e+ ,$ ,he c$33issi$n ') *riva,e
res*$n+en, $% ,he $Kense charge+. 9&r,her, ,he veriJe+ s,a,e3en, $% Sa3s$n, s,$re 3anager
$% *e,i,i$ner c$r*$ra,i$n wh$ is in charge $% a## *ers$nne#, inc#&+ing e3*#$)ees $% ,he @&3
@&3 Tree C$Kee Sh$* $% which *riva,e res*$n+en, was a %$r3er assis,an, c$$<, a,,es,e+ ,$ ,he
%ac, $% *riva,e res*$n+en, see<ing a*$#$g) %$r ,he c$33issi$n $% ,he ac,. Li<ewise, ,he
s,a,e3en, $% Qenai+a Cas,r$ =Cas,r$?, cashier $% *e,i,i$ner c$r*$ra,i$nGs s&*er3ar<e,, Ma<a,i
Branch, A)a#a Cen,er, Ma<a,i Ci,), c$nJr3e+ ,ha, in+ee+ ,he 1.2 <i#$s $% sA&i+ hea+s
a3$&n,ing ,$ J%,) *es$s =P2(.((?*er <i#$, ha+ n$, 'een *ai+ %$r.
The c$n,en,i$n $% *e,i,i$ner ,ha, res*$n+en, 3ere#) i3*&,e+ ,he cri3e agains, hi3 'eca&se
he was se, ,$ re,ire is +iIc&#,, i% n$, i3*$ssi'#e, ,$ 'e#ieve. W$r,h n$,ing is ,he %ac, ,ha,
*e,i,i$ner %ai#e+ ,$ i3*&,e an) i## wi## $r 3$,ive $n ,he *ar, $% ,he wi,nesses agains, hi3.
Page 1"!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
We s,ress ,ha, ,he A&an,&3 $% *r$$% reA&ire+ %$r ,he a**#ica,i$n $% ,he #$ss $% ,r&s, an+
c$nJ+ence r&#e is n$, *r$$% 'e)$n+ reas$na'#e +$&',. I, is s&Icien, ,ha, ,here 3&s, $n#) 'e
s$3e 'asis %$r ,he #$ss $% ,r&s, an+ c$nJ+ence $r ,ha, ,here is reas$na'#e gr$&n+ ,$ 'e#ieve, i%
n$, ,$ en,er,ain ,he 3$ra# c$nvic,i$n, ,ha, ,he e3*#$)ee c$ncerne+ is res*$nsi'#e %$r ,he
3isc$n+&c, an+ ,ha, his *ar,ici*a,i$n in ,he 3isc$n+&c, ren+ere+ hi3 a's$#&,e#) &nw$r,h) $%
,r&s, an+ c$nJ+ence.
I, is a#s$ $% n$ 3$3en, ,ha, ,he cri3ina# c$3*#ain, %$r A&a#iJe+ ,he%, agains, *e,i,i$ner was
+is3isse+. I, is we## se,,#e+ ,ha, ,he c$nvic,i$n $% an e3*#$)ee in a cri3ina# case is n$,
in+is*ensa'#e ,$ ,he eFercise $% ,he e3*#$)erGs +isci*#inar) a&,h$ri,).
III. The *ena#,) $% +is3issa# is ,$$ harsh &n+er ,he circ&3s,ances.
The %ree wi## $% 3anage3en, ,$ c$n+&c, i,s $wn '&siness aKairs ,$ achieve i,s *&r*$se cann$,
'e +enie+.

The $n#) c$n+i,i$n is ,ha, ,he eFercise $% 3anage3en, *rer$ga,ives sh$&#+ n$, 'e
+$ne in 'a+ %ai,h $r wi,h a'&se $% +iscre,i$n. Tr&#), whi#e ,he e3*#$)er has ,he inheren, righ,
,$ +isci*#ine, inc#&+ing ,ha, $% +is3issing i,s e3*#$)ees, ,his *rer$ga,ive is s&'Eec, ,$ ,he
reg&#a,i$n ') ,he S,a,e in ,he eFercise $% i,s *$#ice *$wer.
In ,his regar+, i, is a h$rn'$$< +$c,rine ,ha, in%rac,i$ns c$33i,,e+ ') an e3*#$)ee sh$&#+
3eri, $n#) ,he c$rres*$n+ing *ena#,) +e3an+e+ ') ,he circ&3s,ance. The *ena#,) 3&s, 'e
c$33ens&ra,e wi,h ,he ac,, c$n+&c, $r $3issi$n i3*&,e+ ,$ ,he e3*#$)ee an+ 3&s, 'e
i3*$se+ in c$nnec,i$n wi,h ,he +isci*#inar) a&,h$ri,) $% ,he e3*#$)er.
In ,he case a, 'ar, *e,i,i$ner +eserves c$3*assi$n 3$re ,han c$n+e3na,i$n. A, ,he en+ $%
,he +a), i, is &n+is*&,e+ ,ha,L =1? *e,i,i$ner has w$r<e+ %$r res*$n+en, %$r a#3$s, ,hir,)5$ne
=1? )earsO =!? his ,ire#ess an+ %ai,h%&# service is a,,es,e+ ') ,he n&3er$&s awar+s

he has
receive+ %r$3 res*$n+en,O =? ,he inci+en, $n 6&ne 11, !((1 was his Jrs, $Kense in his #$ng
)ears $% serviceO =.? ,he va#&e $% ,he sA&i+ hea+s w$r,h P2(.(( is neg#igi'#eO =2? res*$n+en,
*rac,ica##) +i+ n$, #$se an),hing as ,he sA&i+ hea+s were c$nsi+ere+ scra* g$$+s an+ &s&a##)
,hr$wn awa) in ,he was,e'as<e,O =-? ,he ign$3in) an+ sha3e &n+erg$ne ') *e,i,i$ner in
'eing i3*ris$ne+, h$wever 3$3en,ar), is *&nish3en, in i,se#%O an+ ="? *e,i,i$ner was
*reven,ive#) s&s*en+e+ %$r $ne 3$n,h, which is a#rea+) a c$33ens&ra,e *&nish3en, %$r ,he
in%rac,i$n c$33i,,e+. Tr&#), *e,i,i$ner has 3$re ,han *ai+ his +&e.
In an) case, i, w$&#+ 'e &se#ess ,$ $r+er ,he reins,a,e3en, $% *e,i,i$ner, c$nsi+ering ,ha, he
w$&#+ have 'een re,ire+ ') n$w. Th&s, in #ie& $% reins,a,e3en,, i, is '&, *r$*er ,$ awar+
*e,i,i$ner se*ara,i$n *a) c$3*&,e+ a, $ne53$n,h sa#ar) %$r ever) )ear $% service, a %rac,i$n $%
a, #eas, siF =-? 3$n,hs c$nsi+ere+ as $ne wh$#e )ear. In ,he c$3*&,a,i$n $% se*ara,i$n *a),
,he *eri$+ where 'ac<wages are awar+e+ 3&s, 'e inc#&+e+.
2*. Garcia vs. 3AL, G.R. No. 1)*-.), 2an. 2", 2""9, #n 'anc, ci(ing Genuino vs.
NLRC, G.R. No. 1*2732133, 4ece/er *, 2""7
9ac,sL
This case s,e33e+ %r$3 an a+3inis,ra,ive charge J#e+ ') PAL agains, e3*#$)ees, herein
*e,i,i$ners a%,er a##ege+#) 'eing ca&gh, in ,he ac, $% sniIng sha'& in ,he w$r<*#ace. A%,er +&e
n$,ice, PAL +is3isse+ *e,i,i$ners *r$3*,ing ,he #a,,er ,$ J#e a c$3*#ain, %$r i##ega# +is3issa#
which was res$#ve+ ') ,he La'$r Ar'i,er in ,heir %av$r $r+ering in,er a#ia ,heir reins,a,e3en,.
Page 1"
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
S&'seA&en,#), res*$n+en, c$3*an) was *#ace+ &n+er c$r*$ra,e reha'i#i,a,i$n. 9r$3 ,he La'$r
Ar'i,er, res*$n+en, a**ea#e+ ,$ NLRC which reverse+ sai+ +ecisi$n. La,er, a wri, $% eFec&,i$n
as regar+s ,he reins,a,e3en, was iss&e+ ') ,he La'$r Ar'i,er. Res*$n+en, ,hen J#e+ an &rgen,
*e,i,i$n %$r inE&nc,i$n $n ,he gr$&n+ ,ha, i, cann$, c$3*#) wi,h ,he reins,a,e3en, $r+er +&e ,$
i,s c$r*$ra,e reha'i#i,a,i$n.
Iss&esL
1. Whe,her a s&'seA&en, Jn+ing $% a va#i+ +is3issa# ') NLRC re3$ves ,he 'asis %$r
i3*#e3en,ing ,he reins,a,e3en, as*ec, $% ,he La'$r Ar'i,erGs +ecisi$nW
!. Whe,her res*$n+en, c$3*an) is E&s,iJe+ in re%&sing ,$ c$3*#) wi,h s&ch reins,a,e3en,
$r+er in view $% i,s c$r*$ra,e reha'i#i,a,i$nW
R&#ingL
:n ,he Jrs, iss&e, E&ris*r&+en,ia# ,ren+ has 3ain,aine+ ,ha, even i% ,he $r+er $% reins,a,e3en,
$% ,he La'$r Ar'i,er is reverse+ $n a**ea#, i, is $'#iga,$r) $n ,he *ar, $% ,he e3*#$)er ,$
reins,a,e an+ *a) ,he wages $% ,he +is3isse+ e3*#$)ee +&ring ,he *eri$+ $% a**ea# &n,i#
reversa# ') ,he higher c$&r,. The e3*#$)ee is n$, reA&ire+ ,$ rei3'&rse wha,ever sa#ar) he
3a) have receive+ %$r he is en,i,#e+ ,$ s&ch. The $**$si,e view is ar,ic&#a,e+ in ,enuino vs
NLRC which s,a,esL
MI% ,he +ecisi$n $% ,he La'$r Ar'i,er is #a,er reverse+ $n a**ea# &*$n ,he Jn+ing ,ha, ,he
gr$&n+ %$r +is3issa# is va#i+, ,hen ,he e3*#$)er has ,he righ, ,$ reA&ire ,he +is3isse+
e3*#$)ee $n *a)r$## reins,a,e3en, ,$ re%&n+ ,he sa#aries he $r she receive+ whi#e ,he case
was *en+ing a**ea#, FFF.
C$nsi+ering ,ha, Gen&in$ was n$, reins,a,e+ ,$ w$r< $r *#ace+ $n *a)r$## reins,a,e3en,, an+
her +is3issa# is 'ase+ $n a E&s, ca&se, ,hen she is n$, en,i,#e+ ,$ 'e *ai+ ,he sa#aries FFF.N
H$wever, ,he +ear,h $% a&,h$ri,) s&**$r,ing Gen&in$ ren+ers in&,i#e ,he ra,i$na#e $%
reins,a,e3en, *en+ing a**ea#. P&rs&an, ,$ *$#ice *$wer, ,he S,a,e 3a) a&,h$ri4e an
i33e+ia,e i3*#e3en,a,i$n, *en+ing a**ea# $% a +ecisi$n reins,a,ing a +is3isse+ $r se*ara,e+
e3*#$)ee since ,ha, saving ac, is +esigne+ ,$ s,$*, a#,h$&gh ,e3*$rari#) since ,he a**ea# 3a)
'e +eci+e+ in %av$r $% ,he a**e##an,, a c$n,in&ing ,hrea, $r +anger ,$ ,he s&rviva# $r even ,he
#i%e $% ,he +is3isse+ $r se*ara,e+ e3*#$)ee an+ his %a3i#). Th&s, ,he MRefund !otrineN easi#)
+e3$ns,ra,es h$w a %av$ra'#e +ecisi$n ') ,he La'$r Ar'i,er c$&#+ har3 3$re ,han he#* a
+is3isse+ e3*#$)ee. The e3*#$)ee, ,$ 3a<e '$,h en+s 3ee,, w$&#+ necessari#) have ,$ &se
&* ,he sa#aries receive+ +&ring ,he *en+enc) $% ,he a**ea#, $n#) ,$ en+ &* having ,$ re%&n+
,he s&3 in case $% a Jna# &n%av$ra'#e +ecisi$n. The *r$visi$n $% Ar,. !! is c#ear ,ha, an
awar+ ') ,he La'$r Ar'i,er %$r reins,a,e3en, sha## 'e i33e+ia,e#) eFec&,$r) even *en+ing
a**ea# an+ ,he *$s,ing $% a '$n+ ') ,he e3*#$)er sha## n$, s,a) ,he eFec&,i$n %$r
reins,a,e3en,. The #egis#a,ive in,en, is A&i,e $'vi$&s i.e. ,$ 3a<e an awar+ $% reins,a,e3en,
i33e+ia,e#) en%$rcea'#e, even *en+ing a**ea#. The C$&r, reaIr3s s&ch *revai#ing *rinci*#e
,ha, even i% ,he $r+er $% reins,a,e3en, is reverse+ $n a**ea#, i, is $'#iga,$r) $n ,he *ar, $% ,he
e3*#$)er ,$ reins,a,e an+ *a) ,he wages $% ,he +is3isse+ e3*#$)ee +&ring ,he *eri$+ $%
a**ea# &n,i# reversa# ') ,he higher c$&r,.
A%,er ,he #a'$r ar'i,erGs +ecisi$n is reverse+ ') a higher c$&r,, ,he e3*#$)ee 3a) 'e 'arre+
%r$3 c$##ec,ing ,he accr&e+ wages i% i, is sh$wn ,ha, ,he +e#a) in en%$rcing ,he reins,a,e3en,
was wi,h$&, %a&#, $% ,he e3*#$)er. The ,es, is t.o-foldL a? ,here 3&s, 'e ac,&a# +e#a) $r ,he
%ac, ,ha, ,he $r+er $% reins,a,e3en, *en+ing a**ea# was n$, eFec&,e+ *ri$r ,$ i,s reversa# an+
'? ,he +e#a) 3&s, n$, 'e +&e ,$ ,he e3*#$)erGs &nE&s,iJe+ ac, $r $3issi$n. I% ,he +e#a) is +&e
Page 1".
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,$ e3*#$)erGs &nE&s,iJe+ re%&sa#, ,he e3*#$)er 3a) s,i## 'e reA&ire+ ,$ *a) ,he sa#aries
n$,wi,hs,an+ing ,he reversa# $% ,he #a'$r ar'i,erGs +ecisi$n. In ,enuino, ,he %$r3er NLRC R&#es
$% Pr$ce+&re was s,i## a**#ie+ in which i, +i+ n$, #a) +$wn a 3echanis3 ,$ *r$3*,#) eKec,&a,e
,he se#%5eFec&,$r) $r+er $% reins,a,e3en,, 3a<ing i, +iIc&#, ,$ es,a'#ish ,ha, ,he e3*#$)er
ac,&a##) re%&se+ ,$ c$3*#). The new NLRC R&#es $% Pr$ce+&re which ,$$< eKec, $n 6an. ", !((-
n$w reA&ire ,he e3*#$)er ,$ s&'3i, a re*$r, $% c$3*#iance wi,hin 1( ca#en+ar +a)s %r$3
recei*, $% ,he #a'$r ar'i,erGs +ecisi$n. The e3*#$)ee nee+ n$, J#e a 3$,i$n %$r ,he iss&ance $%
a wri, $% eFec&,i$n since ,he #a'$r ar'i,er sha## ,herea%,er 3$,& *r$*ri$ iss&es ,he wri,. I, is
se,,#e+ ,ha, &*$n a**$in,3en, ') SEC $% a reha'i#i,a,i$n receiver, a## ac,i$ns %$r c#ai3s 'e%$re
an) ,ri'&na# agains, ,he c$r*$ra,i$n sha## i*s$ E&re 'e s&s*en+e+. Case #aw rec$gni4es ,ha,
&n#ess ,here is a res,raining $r+er, ,he i3*#e3en,a,i$n $% ,he $r+er $% reins,a,e3en, is
3inis,eria# an+ 3an+a,$r). The s&s*ensi$n $% c#ai3s *ar,a<es $% ,he na,&re $% a res,raining
$r+er ,ha, c$ns,i,&,es #ega# E&s,iJca,i$n %$r res*$n+en,Gs n$n5c$3*#iance wi,h ,he
reins,a,e3en, $r+er. Res*$n+en,Gs %ai#&re ,$ eFercise ,he a#,erna,ive $*,i$ns $% ac,&a#
reins,a,e3en, an+ *a)r$## reins,a,e3en, was ,h&s E&s,iJe+. The *e,i,i$n is +enie+. The CA
+ecisi$n ann&##ing ,he NLRC res$#&,i$ns aIr3ing ,he va#i+i,) $% ,he Wri, $% EFec&,i$n an+
N$,ice $% Garnish3en, is aIr3e+.
2.. La <nion Ce/en( >or:ers <nion e( al., vs NLRC e( al., G.R. No. 17*)21, 2anuar$
3", 2""9
9ac,sL
Priva,e res*$n+en, Bacn$,an Ce3en, C$r*$ra,i$n =res*$n+en, c$3*an)?, n$w <n$wn as
H$#ci3 Phi#i**ines, Inc., is engage+ in ,he 3an&%ac,&re $% ce3en,. Pri$r ,$ 199., res*$n+en,
c$3*an) ha+ 'een &,i#i4ing ,he Pwe, *r$cess ,echn$#$g)P in i,s $*era,i$ns. S$3e,i3e in 199!,
res*$n+en, c$3*an) in,r$+&ce+ ,he P+r) *r$cess ,echn$#$g)P as *ar, $% i,s 3$+erni4a,i$n
*r$gra3. In 1992, ,he new P+r) *r$cess ,echn$#$g)P 'eca3e %&##) $*era,i$na#. A%,er a
c$3*ara,ive s,&+) $% ,he ,w$ *r$+&c,i$n #ines, res*$n+en, c$3*an) +isc$vere+ ,ha, ,he P+r)
*r$cess ,echn$#$g)P $r ,he +r) #ine *r$ve+ ,$ 'e 3$re eIcien, as ,he c$s, was 3ini3i4e+ ')
P12.(( *er ce3en, 'ag whi#e ,he Pwe, *r$cess ,echn$#$g)P $r ,he we, #ine c$ns&3e+ 3$re
%&e# an+ ha+ ,$ &n+erg$ %reA&en, re*airs an+ sh&,+$wns +&e ,$ i,s $'s$#escence. T$
i3*#e3en, ,he c#$s&re $% ,he we, #ine, res*$n+en, c$3*an) an+ *e,i,i$ner La >ni$n Ce3en,
W$r<ers >ni$n =*e,i,i$ner >ni$n? en,ere+ in,$ a Me3$ran+&3 $% Agree3en, $n 19 6&#) 199",
where') res*$n+en, c$3*an) c$33i,,e+ ,$ gran, se*ara,i$n *a) eA&iva#en, ,$ 12(V $% ,he
3$n,h#) 'asic *a) %$r ever) )ear $% service *#&s ,he a++i,i$na# JFe+ a3$&n, $% P!",(((.(( ,$
e3*#$)ees wh$ w$&#+ 'e ,er3ina,e+ as a res&#, $% ,he c#$s&re $% ,he we, #ine. In an $*en #e,,er
+a,e+ 11 A&g&s, 199",

Mag+a#en$ B. A#'arracin, 6r., ,he res*$n+en, c$3*an)Gs Seni$r
EFec&,ive 8ice Presi+en,, n$,iJe+ ,he e3*#$)ees $% ,he i,s +ecisi$n ,$ 3$,h'a## ,he we, #ine
an+ ,he ,er3ina,i$n $% ,h$se wh$se e3*#$)3en, w$&#+ 'ec$3e &nnecessar) as a res&#, $% ,he
c#$s&re. :n 12 A&g&s, 199", res*$n+en, c$3*an) sen, a #e,,er ,$ ,he $Ice $% Ricar+$ S.
Mar,ine4, Regi$na# 7irec,$r $% ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en, =7:LE?, in%$r3ing
hi3 a'$&, res*$n+en, c$3*an)Gs +ecisi$n ,$ sh&, +$wn ,he we, #ine an+ %&rnishing hi3 ,he
#is, $% aKec,e+ e3*#$)ees. :n 1- A&g&s, 199", res*$n+en, c$3*an) sen, n$,ices $%
,er3ina,i$n ,$ 3$re $r #ess !(( e3*#$)ees inc#&+ing *e,i,i$ner A#3$i,e. >*$n ,he recei*, $%
,he se*ara,i$n *a), a n&3'er $% ,he aKec,e+ e3*#$)ees signe+ in+ivi+&a# Re#ease Waiver an+
D&i,c#ai3. S$3e,i3e in N$ve3'er 199", *e,i,i$ner >ni$n an+ s$3e 1( $% i,s 3e3'ers
inc#&+ing *e,i,i$ner A#3$i,e J#e+ c$3*#ain,s %$r &n%air #a'$r *rac,ice, i##ega# #a)5$K an+ i##ega#
+is3issa# agains, res*$n+en, c$3*an) 'e%$re ,he NLRC Regi$na# Ar'i,ra,i$n Branch 1 in San
9ernan+$, La >ni$n. The *e,i,i$ners a##ege+ ,ha, whi#e ,he c#$s&re aKec,e+ $n#) ,he we, #ine,
a3$ng ,he e3*#$)ees ,er3ina,e+ were $*era,ing ,he +r) #ine $r *er%$r3ing s&**$r, services
Page 1"2
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
%$r '$,h we, an+ +r) #ines. The) %&r,her a##ege+ ,ha, a%,er ,he c#$s&re $% ,he we, #ine,
res*$n+en, c$3*an) c$n,rac,e+ $&, ,he services *er%$r3e+ ') ,he e3*#$)ees wh$ were
,er3ina,e+. :n#) 1 $% ,he 1( e3*#$)ees *&rs&e+ ,he c$3*#ain,s 'e%$re ,he La'$r Ar'i,er.
A%,er s&'3issi$n $% ,he *ar,iesG *$si,i$n *a*ers an+ *#ea+ings, La'$r Ar'i,er Irenarc$ R.
Ri3an+$ ren+ere+ a 7ecisi$n $n 19 March 1999 +is3issing ,he c$3*#ain,s. La'$r Ar'i,er
Ri3an+$ %$&n+ ,ha, res*$n+en, c$3*an) c$3*#ie+ wi,h ,he reA&isi,e n$,ice an+ severance
*a) 3an+a,e+ &n+er Ar,ic#e !1 $% ,he La'$r C$+e. As regar+s ,he c#ai3 ,ha, ,he services
*er%$r3e+ ') ,he c$3*#ainan,s were even,&a##) ass&3e+ ') e3*#$)ees wh$ were re,aine+ $r
were c$n,rac,e+ $&,, La'$r Ar'i,er Ri3an+$ r&#e+ ,ha, ,he e3*#$)er ha+ ,he *rer$ga,ive ,$
&,i#i4e i,s re3aining w$r<%$rce ,$ ,he 3aFi3&3. Pe,i,i$ners a**ea#e+ ,$ ,he NLRC, arg&ing ,ha,
res*$n+en, c$3*an) %ai#e+ ,$ *r$ve wi,h s&'s,an,ia# evi+ence ,ha, ,he re,rench3en, was
a's$#&,e#) necessar) an+ &nav$i+a'#e 3ain#) 'eca&se ,he aKec,e+ e3*#$)ees were a#s$
*er%$r3ing s&**$r, services in ,he we, #ine. P&'#ic res*$n+en, NLRC aIr3e+ in toto ,he
+ecisi$n $% La'$r Ar'i,er Ri3an+$. I, he#+ ,ha, ,he a**ea# was 'r$&gh, ') *e,i,i$ner >ni$n an+
n$, ') i,s 3e3'ers wh$ were ,he rea# *ar,ies5in5in,eres, an+, ,h&s, 3&s, 'e +is3isse+
$&,righ,. The NLRC he#+ ,ha, ,he re,rench3en, $n ,he gr$&n+ $% re+&n+anc) was va#i+ in an)
case. I, c$nc#&+e+ ,ha, ,he sca#ing +$wn $% ac,ivi,ies reA&iring s&**$r, services was a
c$nseA&ence $% ,he c#$s&re $% ,he we, #ineO hence, ,he ,er3ina,i$n $% ,he eFcess e3*#$)ees
*er%$r3ing s&ch s&**$r, services %$##$we+ as a 3a,,er $% c$&rse.
R&#ingL
In a Res$#&,i$n +a,e+ 1 7ece3'er !((-, ,he C$&r, +is3isse+ ,he *e,i,i$n wi,h res*ec, ,$
*e,i,i$ner >ni$n %$r ins&Icienc) $r +e%ec,ive veriJca,i$n an+ cer,iJca,i$n $% n$n5%$r&3
sh$**ing, as $n#) ,he *resi+en, $% *e,i,i$ner >ni$n signe+ ,he sa3e in vi$#a,i$n $% Sec,i$ns .
an+ 2, R&#e " $% ,he R&#es $% C$&r,. The E&+g3en, $% +is3issa# has 'ec$3e Jna# an+ eFec&,$r)
wi,h res*ec, ,$ *e,i,i$ner >ni$n $n (1 9e'r&ar) !((". The ins,an, *e,i,i$n raises ,w$ iss&esL
na3e#), whe,her *e,i,i$ner >ni$n is ,he rea# *ar,)5in5in,eres, in ,his case an+ whe,her
*e,i,i$ner A#3$i,eGs ,er3ina,i$n was va#i+. The A&es,i$n $% *e,i,i$ner >ni$nGs ca*aci,) ,$ s&e
$n 'eha#% $% i,s 3e3'ers has 'ec$3e 3$$, an+ aca+e3ic in view $% ,he E&+g3en, $% +is3issa#
$% ,he ins,an, *e,i,i$n which has a#rea+) 'ec$3e Jna# an+ eFec&,$r) wi,h res*ec, ,$ *e,i,i$ner
>ni$n. Th&s, ,he re3aining iss&e ,$ 'e res$#ve+ in ,his *e,i,i$n *er,ains ,$ *e,i,i$ner A#3$i,eGs
c#ai3 ,ha, *e,i,i$ner >ni$n has %ai#e+ ,$ *r$ve ,ha, his w$r< as an $i#er %$r '$,h ,he we, an+
+r) #ines has 'ec$3e re+&n+an, wi,h ,he c#$s&re $% ,he we, #ine. Pe,i,i$ner A#3$i,eGs c#ai3 is
c#ear#) a %ac,&a# A&es,i$n which is 'e)$n+ ,he *r$vince $% a R&#e .2 *e,i,i$n. In an) even,, ,he
C$&r, Jn+s n$ c$gen, reas$n ,$ +is,&r' ,he E&+g3en, $% ,he C$&r, $% A**ea#s aIr3ing ,he
La'$r Ar'i,er an+ NLRC r&#ings ,ha, ,he ,er3ina,i$n $% *e,i,i$ner A#3$i,e an+ ,he $,her
e3*#$)ees $% res*$n+en, c$3*an). As eF*#aine+ ') ,he NLRC, ,he ,er3ina,i$n $% *e,i,i$ner
A#3$i,e was a necessar) c$nseA&ence $% ,he *ar,ia# c#$s&re $% $*era,i$ns $% res*$n+en,
c$3*an). Pe,i,i$ner A#3$i,eGs w$r< as an $i#er %$r '$,h ,he we, #ine an+ +r) #ine has 'ec$3e
re+&n+an, $r s&*erT&$&s %$##$wing ,he c#$s&re $% ,he we, #ine. B) an+ #arge, ,he +e,er3ina,i$n
$% whe,her ,$ 3ain,ain $r *hase $&, an en,ire +e*ar,3en, $r sec,i$n $r ,$ re+&ce *ers$nne#
#ies wi,h ,he 3anage3en,. Th&s, his ,er3ina,i$n $n ,he gr$&n+ $% re+&n+anc) is an a&,h$ri4e+
ca&se %$r ,er3ina,i$n &n+er Ar,ic#e !1 $% ,he La'$r C$+e. The C$&r, A&$,es wi,h a**r$va# ,he
%$##$wing c$nc#&si$ns $% ,he NLRCL F F F There is n$ +is*&,e as ,$ ,he %ac, ,ha, ,here was a
*ar,ia# c#$s&re $r cessa,i$n $% $*era,i$ns wi,h ,he 3$,h'a##ing $% ,he $#+ we,5*r$cess
*r$+&c,i$n #ine $% ,he c$3*an) R a si,&a,i$n which %a##s a3$ng ,he a&,h$ri4e+ ca&ses %$r
,er3ina,i$n a##$we+ &n+er Ar,ic#e !1 $% ,he La'$r C$+e. F F F Nei,her is ,here an) +is*&,e
,ha, ,he #$gica# an+ c$nseA&ence /si0$% s&ch *ar,ia# cessa,i$n $% $*era,i$ns was ,$ ren+er
cer,ain e3*#$)ees re+&n+an,. :'vi$&s#) en$&gh, since ,here was a c&r,ai#3en, in $*era,i$ns,
cer,ain ac,ivi,ies were ren+ere+ ei,her eFcess $r n$ #$nger necessar), hence, re+&n+an,. The
$n#) $s,ensi'#e arg&3en, *resen,e+ ') a**e##an, is ,he 'are a##ega,i$n ,ha, 3$s, $% ,he3 were
n$, eFc#&sive#) assigne+ ,$ ,he we, *r$cess #ine '&, were *er%$r3ing s&**$r, services %$r '$,h
Page 1"-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he we, #ine an+ ,he +r) #ine. There%$re, ,he) arg&e ,ha, ,he) c$&#+ n$, 'e +ec#are+ re+&n+an,
') vir,&e $% ,he c#$s&re $% ,he we, #ine a#$ne. This #ine $% arg&3en, is non se;uitur, %a##aci$&s
an+ ,$,a##) &n,ena'#e. I, *r$cee+s %r$3 ,he err$ne$&s *re3ise ,ha, $n#) ,h$se eFc#&sive#)
assigne+ ,$ ,he we, #ine can 'e +ec#are+ re+&n+an,. The 3ere %ac, ,ha, an e3*#$)ee was
*er%$r3ing s&**$r, services %$r '$,h ,he we, an+ ,he +r) #ine +$es n$, in an) wa) eFc#&+e hi3
%r$3 'eing +ec#are+ as re+&n+an,. :n ,he c$n,rar), wi,h ,he c#$s&re $% ,he we, #ine an+ ,he
c$nseA&en, sca#ing +$wn $% ac,ivi,ies reA&iring s&**$r, services, i, s,an+s ,$ reas$n ,ha, ,here
was a#rea+) an eFcess $% e3*#$)ees *er%$r3ing s&**$r, services. Res*$n+en, ha+ ,here%$re
a## ,he reas$n ,$ inc#&+e s&ch e3*#$)ees a3$ng ,h$se wh$3 i, c$nsi+ere+ re+&n+an,.
WHERE9:RE, ,he ins,an, *e,i,i$n %$r review $n cer,i$rari is 7ENIE7 an+ ,he +ecisi$n an+
res$#&,i$n $% ,he C$&r, $% A**ea#s in CA5G.R. SP N$. 9(29" are A99IRME7.
2). Men&ros, 2r. vs. Mi(suishi Mo(ors 3hils Cor%., G.R. No. 1)97-", 6e. 1), 2""9
9ac,sL
MMPC hire+ Men+r$s in 199. as reg&#ar '$+) re*3an, #a,er *r$3$,e+ ,$ asse3'#er 3aE$r in
,he c$3*an)Gs 3an&%ac,&ring +ivisi$n. 7&e ,$ severe +ras,ic s#&3* $% i,s vehic#e sa#es
'r$&gh, a'$&, ') ,he Jnancia# crisis in 199", MMPC as *er a&+i,e+ Jnancia# s,a,e3en,s,
s&s,aine+ a #$ss $% PhP ."( 3i##i$n in 199", an+ PhP ""1 3i##i$n in 1991. MMPC i3*#e3en,e+
vari$&s c$s,5c&,,ing 3eas&res, s$3e $% which are e3*#$)3en,5hiring %ree4ing, se*ara,i$n $%
cas&a#s an+ ,rainees, 3an*$wer services re+&c,i$n, *#an, sh&,+$wns, an+ re+&ce+ w$r< wee<
%$r 3anageria# an+ $,her 3$n,h#) sa#arie+ *ers$nne#. In 9e' 1991, i, ins,i,&,e+ ,he Jrs, s,age
$% i,s re,rench3en, *r$gra3 aKec,ing 21 h$&r#) 3an&%ac,&ring e3*#$)ees, which *r$ve+ in
a+eA&a,e. I, ,hen #a&nche+ a ,e3*$rar) #a)5$K *r$gra3 $% 1"( h$&r#) e3*#$)ees, inc#&+ing
Men+r$s. The #a,,er receive+ a #e,,er in%$r3ing hi3 $% ,he ,e3*$rar) s&s*ensi$n $% his
e3*#$)3en, %$r siF 3$n,hs %r$3 6an . ,$ 6&#) !, 1999. In ,he in,eri3, he was &*+a,e+ $% ,he
'&siness c$n+i,i$ns ') MMPC. In 6&ne 1, 1999, MMPC n$,iJe+ 7:LE ,ha, ,he ,e3*$rar) #a)5$K
is 'eing 3a+e *er3anen, eKec,ive 6&#) !, 1999 +&e ,$ c$n,in&ing a+verse 3ar<e, c$n+i,i$ns.
Men+r$s J#e+ %$r a case $% i##ega# +is3issa#. In i,s *$si,i$n *a*ers, MMPC +eJne+ ,he cri,eria
&se+ in c$nsi+ering e3*#$)ees %$r re,rench3en,, an+ a,,ache+ i,s Jnancia# s,a,e3en,s %$r
199"5199- an+ 19915199" *re*are+ ') SG8 ; C$. The La'$r Ar'i,er +eci+e+ in %av$r $%
MMPC. >*$n a**ea#, ,he NLRC reverse+ sai+ +ecisi$n an+ +ec#are+ ,ha, ,he +is3issa# was
i##ega# s,a,ing ,ha, ,he 3eri, ra,ing s)s,e3 a+$*,e+ ') MMPC as a++i,i$na# cri,eri$n %$r
re,rench3en, was err$ne$&s an+ ar'i,rar), 'eing agains, ,he CBA. Acc$r+ing ,$ ,he NLRC, ,he
CBA #is,e+ $n#) Mseni$ri,)N an+ Mnee+s $% ,he c$3*an)N as +e,er3ina,ive %ac,$rs. The NLRC
sai+ ,ha, MMPC ha+ n$, n$,iJe+ Men+r$s $% ,he a++i,i$na# cri,eri$n an+ $% ,he Jn+ings $% ,he
3eri, eva#&a,i$n, ,h&s n&##i%)ing ,he re,rench3en,. The CA +eci+e+ in %av$r $% MMPC, an+
reins,a,e+ ,he LAGs r&#ing.
Iss&eL
Whe,her $r n$, ,he ,e3*$rar) #a)5$K an+ even,&a# re,rench3en, was va#i+.
R&#ingL
The re,rench3en, was va#i+. The righ, $r 3anage3en, ,$ re,rench w$r<ers ,$ 3ee, c#ear an+
c$n,in&ing ec$n$3ic ,hrea,s $r +&ring *eri$+s $% ec$n$3ic recessi$n ,$ *reven, #$sses is
rec$gni4e+ ') Ar,. !1 $% ,he LC. The reA&ire3en,s %$r a va#i+ re,rench3en, areL
Page 1""
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,ha, ,he re,rench3en, is reas$na'#) necessar) an+ #i<e#) ,$ *reven, '&siness #$sses which, i%
a#rea+) inc&rre+, are n$, 3ere#) de minimis, '&, s&'s,an,ia#, seri$&s, an+ rea#, $r $n#) i%
eF*ec,e+, are reas$na'#) i33inen, as *erceive+ $'Eec,ive#) an+ in g$$+ %ai,h ') ,he
e3*#$)erO
,ha, ,he e3*#$)er serves wri,,en n$,ice '$,h ,$ ,he e3*#$)ees c$ncerne+ an+ ,he 7:LE a,
#eas, a 3$n,h 'e%$re ,he in,en+e+ +a,e $% re,rench3en,O
,ha, ,he e3*#$)er *a)s ,he re,renche+ e3*#$)ee se*ara,i$n *a) in an a3$&n, *rescri'e+ ')
,he C$+eO
,ha, ,he e3*#$)er eFercises i,s *rer$ga,ive ,$ re,rench in g$$+ %ai,hO an+
,ha, i, &ses %air an+ reas$na'#e cri,eria in ascer,aining wh$ w$&#+ 'e re,renche+ $r re,aine+.
The #$sses eF*ec,e+ sh$&#+ 'e s&'s,an,ia# an+ n$, 3ere#) de minimis in eF,en,. I% ,he #$ss
*&r*$r,e+#) s$&gh, ,$ 'e %$res,a##e+ ') re,rench3en, is c#ear#) sh$wn ,$ 'e ins&'s,an,ia# an+
inc$nseA&en,ia# in charac,er, ,he bona-de na,&re $% ,he re,rench3en, w$&#+ a**ear ,$ 'e
seri$&s#) in A&es,i$n. Sec$n+#), ,he s&'s,an,ia# #$ss a**rehen+e+ 3&s, 'e reas$na'#)
i33inen,, as s&ch i33inence can 'e *erceive+ $'Eec,ive#) an+ in g$$+ %ai,h ') ,he e3*#$)er.
There sh$&#+ 'e a cer,ain +egree $% &rgenc) %$r ,he re,rench3en,, which is a%,er a## a +ras,ic
rec$&rse wi,h seri$&s c$nseA&ences. Beca&se $% ,he c$nseA&en,ia# na,&re $% re,rench3en,, i,
3&s,, ,hir+#), 'e reas$na'#) necessar) an+ #i<e#) ,$ eKec,ive#) *reven, ,he eF*ec,e+ #$sses.
The e3*#$)er sh$&#+ have ,a<en $,her 3eas&res *ri$r $r *ara##e# ,$ re,rench3en, ,$ %$res,a##
#$sses, i.e., c&, $,her c$s,s ,han #a'$r c$s,s. An e3*#$)er wh$ #a)s $K s&'s,an,ia# n&3'ers $%
w$r<ers whi#e c$n,in&ing ,$ +is*ense %a, eFec&,ive '$n&ses an+ *erA&isi,es $r s$5ca##e+
Mg$#+en *arach&,esN, can scarce#) c#ai3 ,$ 'e re,renching in g$$+ %ai,h ,$ av$i+ #$sses. T$
i3*ar, $*era,i$na# 3eaning ,$ ,he c$ns,i,&,i$na# *$#ic) $% *r$vi+ing M%&## *r$,ec,i$nN ,$ #a'$r,
t$e emplo&er7s prerogative to bring do.n labor osts b& retren$ing must be e2erised
essentiall& as a measure of last resort, after less drasti means`e.g., re+&c,i$n $% '$,h
3anage3en, an+ ran<5an+5J#e '$n&ses an+ sa#aries, g$ing $n re+&ce+ ,i3e, c$s,s, e,c.`have
'een ,rie+ an+ %$&n+ wan,ing. Las,#), alleged losses if alread& realized, and t$e e2peted
imminent losses soug$t to be forestalled, must be proved b& suAient and onvining
evidene. The reas$n %$r reA&iring ,his A&an,&3 $% *r$$% is rea+i#) a**aren,L an) #ess
eFac,ing s,an+ar+ $% *r$$% w$&#+ ren+er ,$$ eas) ,he a'&se $% ,his gr$&n+ %$r ,er3ina,i$n $%
services $% e3*#$)ees. There can har+#) 'e an) +is*&,e ,ha, MMPC s&Kere+ s&'s,an,ia# an+
heav) #$sses in 9@ 199" an+ c$n,in&e+ ,$ '#ee+ in 1991. As sh$wn in i,s A9S %$r ,h$se Jsca#
)ears, i, inc&rre+ an aggrega,e #$ss $% PhP 1.!.! 'i##i$n %$r i,s ,w$5)ear $*era,i$n. An)
s&gges,i$n ,ha, a 'i##i$n *es$ *#&s #$ss is de minimis in eF,en, has ,$ 'e +is3isse+ %$r sheer
a's&r+i,). I, 'ears ,$ s,a,e ,ha, Ar,. !1 $% ,he C$+e &ses ,he *hrase Mre,rench3en, ,$ *reven,
#$sses.N The *hrase necessari#) i3*#ies ,ha, re,rench3en, 3a) 'e eKec,e+ even in ,he even,
$n#) $% i33inen,, i3*en+ing, $r eF*ec,e+ #$sses. The e3*#$)er nee+ n$, wai, %$r s&'s,an,ia#
#$sses ,$ 3a,eria#i4e 'e%$re eFercising &#,i3a,e an+ +ras,ic $*,i$n ,$ *reven, s&ch #$sses. In
,he case a, 'ench, MMPC was a#rea+) Jnancia##) he3$rrhaging 'e%$re Jna##) res$r,ing ,$
re,rench3en,. Men+r$s arg&es ,ha, since Ar,. 8, Sec 2=c? $% ,he CBA *r$vi+es %$r $n#) ,w$
%ac,$rs, =1? seni$ri,) =#as,5in, Jrs,5$&,? an+ =!? ,he nee+s $% ,he c$3*an), ,$ 'e c$nsi+ere+ in
re,renching MMPC e3*#$)ees, ,he c$3*an) is 'ere%, $% a&,h$ri,) ,$ ar'i,rari#) i3*$se $,her
%ac,$rs $r cri,eria in eKec,ing his re,rench3en,. The C$&r, is n$, *ers&a+e+. Sec. 1, Ar,. 8 $%
,he CBA, a##$ws MMPC, in ,he eFercise $% i,s c&s,$3ar) 3anage3en, %&nc,i$ns an+
*rer$ga,ives $n 3a,,ers $% *r$3$,i$ns, ,rans%er, #a)5$K, an+ reca##, ,$ c$nsi+er as g&i+ing
n$r3s ,he %$##$wing %ac,$rs $r cri,eriaL MSeni$ri,), EIcienc) an+ A,,i,&+e, 6$' Hn$w#e+ge an+
P$,en,ia#, an+ A,,en+ance.N An+ ,$ c$3*#e3en, ,his *rer$ga,ive, ,he c$3*an), in ,he sa3e
sec,i$n, is given ,he +iscre,i$n ,$ MeFercise E&s, an+ %air eva#&a,i$n $% s&ch %ac,$rs,N 3eaning
,ha, ,he c$3*an) is acc$r+e+ a reas$na'#e #a,i,&+e ,$ assign a c$rres*$n+ing weigh, ,$ each
%ac,$r. The Sec. 2=c? Mnee+s $% ,he c$3*an)N %ac,$r, i% viewe+ ') i,s se#% wi,h$&, #in<ing i, ,$
,he Sec. 1 cri,eria, w$&#+ 'e a 3eaning#ess, i% n$, &nreas$na'#e, s,an+ar+. The *r$*er view,
Page 1"1
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,here%$re, is ,ha, ,he Sec. 1 cri,eria A&a#i%) ,he %ac,$rs $% Mseni$ri,) an+ nee+s $% ,he c$3*an)N
in Sec. 2=c?. Sec. 2=c? sh$&#+ 'e &n+ers,$$+ in ,he #igh, $% Sec. 1 which, ,$ s,ress, *r$vi+es
seni$ri,), eIcienc) an+ a,,i,&+e, E$' <n$w#e+ge an+ *$,en,ia#, an+ a,,en+ance as a3$ng ,he
%ac,$rs ,ha, sh$&#+ g&i+e ,he c$3*an) in ch$$sing ,he e3*#$)ees ,$ 'e #ai+5$K $r <e*,. A##
$,her ,hings 'eing eA&a#, a c$3*an) w$&#+ necessari#) nee+ ,$ re,ain ,h$se wh$ ha+ ren+ere+
+e+ica,e+ an+ high#) eIcien, service an+ wh$se <n$w#e+ge, a,,en+ance, an+ *$,en,ia# hew
wi,h c$3*an) s,an+ar+s. An) $,her 3eas&re w$&#+ 'e sense#ess in ,he '&siness view*$in,.
Acc$r+ing#), ,he 3eri, ra,ing &se+ ') MMPC 'ase+ $n Sec. 2 in c$nE&nc,i$n wi,h an+ as
A&a#iJe+ ') ,he %ac,$rs *r$vi+e+ &n+er Sec. 1 is %air an+ reas$na'#e, an+, ,$ 'e s&re, we##
wi,hin ,he c$n,e3*#a,i$n $% ,he *ar,iesG CBA. Men+r$Gs #a3en, a'$&, n$, 'eing %&rnishe+ a
c$*) $% ,he 199"5199- an+ 19915199" A9S an+ $,her Jnancia# +$c&3en,s, as we## as ,he
Jn+ing $% ,he 3eri, eva#&a,i$n ra,ing, a, ,he ,i3e he was n$,iJe+ $% his #a)5$K cann$, 'e
acc$r+e+ ,ena'i#i,). There is n$ #aw $r r&#e ,ha, reA&ires an e3*#$)er ,$ %&rnish an e3*#$)ee
,$ 'e re,renche+ c$*ies $% i,s A9S an+ $,her +$c&3en,s. The a**r$*ria,e %$r&3 %$r an
e3*#$)ee ,$ c$n,es, ,he rea#i,) $r g$$+ %ai,h charac,er $% ,he re,rench3en, asser,e+ as
gr$&n+ %$r +is3issa# %r$3 e3*#$)3en, is 'e%$re ,he 7:LE.
27. Rosa vs. A/assa&or @o(el, G.R. No. 177".9, March 13, 2""9
9ac,sL
Pe,i,i$ners J#e a c$3*#ain, wi,h ,he 7e*ar,3en, $% La'$r an+ E3*#$)3en,5NCR which
*r$3*,e+ an ins*ec,i$n $% ,he h$,e#Gs *re3ises ') a #a'$r ins*ec,$r, res*$n+en, was %$&n+ ,$
have 'een vi$#a,ing #a'$r s,an+ar+s #aws an+ was ,h&s $r+ere+ ,$ *a) ,he3 s$3e 3$ne)
c#ai3s. This *&r*$r,e+#) angere+ res*$n+en,Gs 3anage3en, which re,a#ia,e+ ') s&s*en+ing
an+B$r c$ns,r&c,ive#) +is3issing ,he3 ') +ras,ica##) re+&cing ,heir w$r< +a)s ,hr$&gh ,he
a+$*,i$n $% a w$r< re+&c,i$nBr$,a,i$n sche3e. Cri3ina# cases %$r es,a%a were #i<ewise
a##ege+#) J#e+ agains, severa# $% ,he e3*#$)ees inv$#ve+, s$3e $% which cases were
even,&a##) +is3isse+ ') ,he *r$sec&,$rGs $Ice %$r #ac< $% 3eri,. The #a'$r ar'i,er %$&n+
res*$n+en, an+ i,s 3anager @$#an+a L. Chan g&i#,) $% i##ega# +is3issa# an+ $r+ere+ ,he3 ,$
*a) *e,i,i$nersG se*ara,i$n *a) a, e 3$n,h %$r ever) )ear $% service wi,h %&## 'ac<wages, an+
1(V $% ,he 3$ne,ar) awar+ as a,,$rne)Gs %ees. Res*$n+en, a**ea#e+ ,$ ,he NLRC, which
aIr3e+ ,he #a'$r ar'i,erGs r&#ing wi,h ,he 3$+iJca,i$n ,ha, Jve $% ,he c$3*#ainan,s, na3e#)
7iana P. Cas,i##$, L$rena L. Hi#+a$, Gi#'er, :ngE$c$, Sa#va+$r S$ an+ Ma. Pi#ar A. Barceni##a,
were +irec,e+ ,$ re*$r, 'ac< ,$ w$r<, an+ res*$n+en, was +irec,e+ ,$ acce*, ,he3 wi,h$&,
having ,$ *a) ,he3 'ac<wages. Wi,h res*ec, ,$ *e,i,i$ners, ,he NLRC he#+ ,ha, E+gar +e
Le$n was Mac,&a##) +is3isse+ '&, i##ega##)N $n N$ve3'er ", !((1 an+ ,ha, wi,h res*ec, ,$ ,he
%$&r $,her *e,i,i$ners, ,he) were c$ns,r&c,ive#) +is3isse+ $n A*ri# 12, !((! ') vir,&e $%
res*$n+en,Gs 3e3$ran+&3 $% even +a,e. :n res*$n+en,Gs 3$,i$n %$r rec$nsi+era,i$n, ,he
NLRC 3$+iJe+ i,s +ecisi$n '), a3$ng $,her ,hings, a's$#ving res*$n+en,Gs 3anager @$#an+a
L. Chan $% an) *ers$na# #ia'i#i,). Res*$n+en, a**ea#e+ an+ 3ain,aine+ ,ha, i,s ac, $% re+&cing
,he n&3'er $% w$r< +a)s *er wee< was va#i+, as i, was +$ne ,$ save i,s '&siness %r$3
'an<r&*,c) +&e ,$ ec$n$3ic reverses. The a**e##a,e c$&r, reverse+ ,he NLRC +ecisi$n an+
+is3isse+ *e,i,i$nersG c$3*#ain,s h$#+ing ,ha, ,here was n$ c$ns,r&c,ive +is3issa# 'eca&se
*e,i,i$ners Msi3*#) +isa**eare+ %r$3 w$r<N &*$n #earning $% ,he w$r< re+&c,i$nBr$,a,i$n
sche3eO an+ ,ha, in ,heir *$si,i$n *a*er s&'3i,,e+ 'e%$re ,he NLRC, *e,i,i$ners $n#) *ra)e+
%$r se*ara,i$n *a) an+ n$, %$r reins,a,e3en,, hence, %$##$wing se,,#e+ E&ris*r&+ence, ,he #a,,er
re#ie% has 'een %$rec#$se+.
(ssue<
Page 1"9
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
Whe,her $r n$, *e,i,i$ners Msi3*#) +isa**eare+N %r$3 ,heir w$r< c$ns,i,&,e a'an+$n3en,W
Ruling<
Case #aw h$#+s ,ha, c$ns,r&c,ive +is3issa# $cc&rs when ,here is cessa,i$n $% w$r< 'eca&se
c$n,in&e+ e3*#$)3en, is ren+ere+ i3*$ssi'#e, &nreas$na'#e $r &n#i<e#)O when ,here is a
+e3$,i$n in ran< $r +i3in&,i$n in *a) $r '$,hO $r when a c#ear +iscri3ina,i$n, insensi'i#i,), $r
+is+ain ') an e3*#$)er 'ec$3es &n'eara'#e ,$ ,he e3*#$)ee. Res*$n+en,Gs s&++en,
ar'i,rar) an+ &n%$&n+e+ a+$*,i$n $% ,he ,w$5+a) w$r< sche3e which grea,#) re+&ce+
*e,i,i$nersG sa#aries ren+ers i, #ia'#e %$r c$ns,r&c,ive +is3issa#. Res*ec,ing ,he a**e##a,e
c$&r,Gs r&#ing ,ha, *e,i,i$ners Msi3*#) +isa**eare+N %r$3 ,heir w$r<, hence, ,he) are g&i#,) $%
a'an+$n3en,, ,he sa3e +$es n$, #ie. A'sence 3&s, 'e acc$3*anie+ ') $ver, ac,s &nerring#)
*$in,ing ,$ ,he %ac, ,ha, ,he e3*#$)ee si3*#) +$es n$, wan, ,$ w$r< an)3$re. An+ ,he '&r+en
$% *r$$% ,$ sh$w ,ha, ,here was &nE&s,iJe+ re%&sa# ,$ g$ 'ac< ,$ w$r< res,s $n ,he e3*#$)er.
A'an+$n3en, is a 3a,,er $% in,en,i$n an+ cann$, #igh,#) 'e in%erre+ $r #ega##) *res&3e+ %r$3
cer,ain eA&iv$ca# ac,s. 9$r a'an+$n3en, ,$ eFis,, ,w$ reA&isi,es 3&s, c$nc&rL -rst, ,he
e3*#$)ee 3&s, have %ai#e+ ,$ re*$r, %$r w$r< $r 3&s, have 'een a'sen, wi,h$&, va#i+ $r
E&s,iJa'#e reas$nO an+ seond, ,here 3&s, have 'een a c#ear in,en,i$n $n ,he *ar, $% ,he
e3*#$)ee ,$ sever ,he e3*#$)er5e3*#$)ee re#a,i$nshi* as 3ani%es,e+ ') s$3e $ver, ac,s.
The sec$n+ e#e3en, is ,he 3$re +e,er3ina,ive %ac,$r. A'an+$n3en, as a E&s, gr$&n+ %$r
+is3issa# ,h&s reA&ires c#ear, wi##%&#, +e#i'era,e, an+ &nE&s,iJe+ re%&sa# $% ,he e3*#$)ee ,$
res&3e e3*#$)3en,. Mere a'sence $r %ai#&re ,$ re*$r, %$r w$r<, even a%,er n$,ice ,$ re,&rn, is
n$, ,an,a3$&n, ,$ a'an+$n3en,. Res*$n+en,, which has ,he $n&s $% *r$ving ,ha, *e,i,i$ners
a'an+$ne+ ,heir w$r<, %ai#e+ ,$ +ischarge ,he sa3e, h$wever. >*$n ,he $,her han+,
*e,i,i$nersG i33e+ia,e J#ing $% c$3*#ain,s %$r i##ega# s&s*ensi$n an+ i##ega# +is3issa# a%,er ,he
i3*#e3en,a,i$n $% ,he A&es,i$ne+ w$r< sche3e, which sche3e was a+$*,e+ s$$n a%,er
*e,i,i$nersG c$3*#ain,s agains, res*$n+en, %$r vi$#a,i$n $% #a'$r s,an+ar+s #aws were %$&n+
3eri,$ri$&s, nega,es res*$n+en,Gs c#ai3 $% a'an+$n3en,. An e3*#$)ee wh$ ,a<es s,e*s ,$
*r$,es, his +is3issa# cann$, ') #$gic 'e sai+ ,$ have a'an+$ne+ his w$r<.
2-. Mo(orola 3hils. v. A/rocio, G.R. No. 173279, March 3", 2""9
9ac,sL
S$3e,i3e in 199", M$,$r$#a Phi#i**ines, Inc. =MPI?, +eci+e+ ,$ c#$se i,s ParabaA&e *#an, in
$r+er ,$ c$ns$#i+a,e i,s $*era,i$ns a, i,s Car3$na, Cavi,e *#an,, $Kering ,$ i,s aKec,e+
e3*#$)ees a re+&n+anc)Bse*ara,i$n *ac<age c$nsis,ing 'eneJ,s an+ e3$#&3en,s.
:&, $% a'$&, 9(( e3*#$)ees wh$ avai#e+ $% ,he *ac<age an+ were c$nseA&en,#) se*ara,e+
%r$3 e3*#$)3en,, !- e3*#$)ees inc#&+ing res*$n+en,s herein, J#e+ ,w$ se*ara,e c$3*#ain,s
agains, MPI, %$r *a)3en, $% re,ire3en, *a) eA&iva#en, ,$ $ne 3$n,h sa#ar) *er )ear $% service,
a##eging ,ha, ,he) were en,i,#e+ ,here,$ &n+er Sec. III5B $% MPIGs Re,ire3en, P#an.
MPI a##ege+ ,ha, ,he a**#ica'#e re,ire3en, *#an was n$, Sec. III5B, '&, P$#ic) 1!12, which
*r$vi+es ,ha, In case $% v$#&n,ar) se*ara,i$n %r$3 ,he c$3*an) +&e ,$ La'$r Saving +evices
$r re+&n+anc), re,rench3en, *r$gra3 ini,ia,e+ ') ,he C$3*an) as a res&#, $% a 3erger $r ,$
*reven, #$sses $r $,her si3i#ar ca&ses, ,he c$3*an) sha## *r$vi+e a se*ara,i$n *a) eA&iva#en,
,$ $ne =1? 3$n,hGs *a) *er )ear $% service, inc#&sive $% an) service 'eneJ, e#igi'i#i,) &n+er ,he
Re,ire3en, P#an.
Page 11(
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
MPI ,h&s insis,e+ ,ha, res*$n+en,s ha+ a#rea+) receive+ s&ch $ne53$n,h *a), ,he sa3e
having 'een inc#&+e+ in ,he cash c$3*$nen, $% ,he se*ara,i$nBre+&n+anc) *ac<age, which
c$nsis,e+ $% ,w$53$n,hs *a) *er )ear $% service, *ai+ ,$ ,he3.
LA r&#e+ in %av$r $% ,he res*$n+en,s. NLRC h$wever has a reverse+ r&#ing h$#+ing ,ha, ,he
'eneJ,s receive+ ') res*$n+en,s %$r inv$#&n,ar) se*ara,i$n &n+er MPIGs re,ire3en, *#an
inc#&+e+ ,he service *a) 'eneJ,s &n+er ei,her Sec. III5B $% ,he Re,ire3en, P#an $r P$#ic) 1!12
which '$,h gran, eFac,#) ,he sa3e 'eneJ, in case $% inv$#&n,ar) se*ara,i$n R $ne 3$n,hGs *a)
%$r ever) )ear $% service, an+ since n$ne $% res*$n+en,s re,ire+ '&, were ac,&a##) inv$#&n,ari#)
se*ara,e+ +&e ,$ re+&n+anc), ,hen ,he) cann$, avai# $% s&ch *a). CA reverse+ NLRCSs
+ecisi$n.
Iss&eL
W:N res*$n+en,5e3*#$)ees are en,i,#e+ ,$ ,heir c#ai3 $% an$,her se*ara,e $ne53$n,h *a) *er
)ear $% service in *&rs&an, ,$ Sec. III5B $% MPIGs Re,ire3en, P#an.
R&#ingL Pe,i,i$n gran,e+.
Res*$n+en,s have n$ ca&se $% ac,i$n as agains, *e,i,i$ners wi,h res*ec, ,$ ,heir c#ai3 %$r
a++i,i$na# re,ire3en, 'eneJ,s. Ar,ic#e !1 $% ,he La'$r C$+e, as a3en+e+, *r$vi+esL
ART. !1. Closure of establis$ment and redution of personnel. R The e3*#$)er 3a) a#s$
,er3ina,e ,he e3*#$)3en, $% an) e3*#$)ee +&e ,$ ,he ins,a##a,i$n $% #a'$r saving +evices,
re+&n+anc), re,rench3en, ,$ *reven, #$sses $r ,he c#$sing $r cessa,i$n $% $*era,i$n $% ,he
es,a'#ish3en, $r &n+er,a<ing &n#ess ,he c#$sing is %$r ,he *&r*$se $% circ&3ven,ing ,he
*r$visi$ns $% ,his Ti,#e, ') serving a wri,,en n$,ice $n ,he w$r<ers an+ ,he /7e*ar,3en,0 $%
La'$r an+ E3*#$)3en, a, #eas, $ne =1? 3$n,h 'e%$re ,he in,en+e+ +a,e ,here$%. In case $%
,er3ina,i$n +&e ,$ ,he ins,a##a,i$n $% #a'$r5saving +evices $r re+&n+anc), ,he w$r<er aKec,e+
,here') sha## 'e en,i,#e+ ,$ a se*ara,i$n *a) eA&iva#en, ,$ a, #eas, his $ne =1? 3$n,h *a) $r ,$
a, #eas, $ne =1? 3$n,h *a) %$r ever) )ear $% service, whichever is higher. In case $%
re,rench3en, ,$ *reven, #$sses an+ in cases $% c#$s&res $r cessa,i$n $% $*era,i$ns $%
es,a'#ish3en, $r &n+er,a<ing n$, +&e ,$ seri$&s '&siness #$sses $r Jnancia# reverses, ,he
se*ara,i$n *a) sha## 'e eA&iva#en, ,$ $ne =1? 3$n,h *a) $r a, #eas, $ne5ha#% =1B!? 3$n,h *a)
%$r ever) )ear $% service, whichever is higher. A %rac,i$n $% a, #eas, siF =-? 3$n,hs sha## 'e
c$nsi+ere+ $ne =1? wh$#e )ear.P =E3*hasis s&**#ie+?
Se*ara,i$n *a) has 'een +eJne+ as ,he a3$&n, ,ha, an e3*#$)ee receives a, ,he ,i3e $% his
severance an+ is +esigne+ ,$ *r$vi+e ,he e3*#$)ee wi,h ,he wherewi,ha# +&ring ,he *eri$+ he
is #$$<ing %$r an$,her e3*#$)3en,,1-an+ is rec$vera'#e $n#) in ,he ins,ances en&3era,e+
&n+er Ar,ic#es !1 an+ !1. $% ,he La'$r C$+e, as a3en+e+, $r in i##ega# +is3issa# cases when
reins,a,e3en, is n$ #$nger *$ssi'#e.
Re,ire3en, *a), $n ,he $,her han+, *res&**$ses ,ha, ,he e3*#$)ee en,i,#e+ ,$ i, has reache+
,he c$3*&#s$r) re,ire3en, age $r has ren+ere+ ,he reA&ire+ n&3'er $% )ears as *r$vi+e+ %$r
in ,he c$##ec,ive 'argaining agree3en, =CBA?, ,he e3*#$)3en, c$n,rac, $r c$3*an) *$#ic), $r
in ,he a'sence ,here$%, in Re*&'#ic Ac, N$. "-.1 $r ,he Re,ire3en, Law.
I, is a+3i,,e+ ,ha, res*$n+en,s were ,er3ina,e+ *&rs&an, ,$ a re+&n+anc), an+ n$, +&e ,$
re,ire3en, *r$gra3, hence, ,he) were en,i,#e+ ,$ a se*ara,i$n *a) $% $ne 3$n,h sa#ar) *er
)ear $% service.
Page 111
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
As c$rrec,#) r&#e+ ') ,he NLRC, ') wha,ever versi$n $% MPIGs Re,ire3en, P#an w$&#+ 'e 3a+e
a**#ica'#e, res*$n+en,s are en,i,#e+ ,$ a se*ara,i$n *a) $% $ne 3$n,h sa#ar) *er )ear $%
service.
Th&s, when res*$n+en,s were *ai+ a se*ara,i$n *a) $% ,w$ 3$n,hs sa#ar) %$r ever) )ear $%
service &n+er ,he Re+&n+anc) Pac<age, ,he) a#rea+) receive+ wha, was +&e ,he3 &n+er ,he
#aw an+ in acc$r+ance wi,h MPIGs *#an.
29. 3ere0 e( al., vs. 3hil 9elegra%h 8 9ele%hone Co/%an$ e( al., G.R. No. 1.2"*-,
A%ril 7, 2""9
9ac,sL
9e#iF B. Pere4 an+ A3an,e G. 7$ria were e3*#$)e+ ') Phi#i**ine Te#egra*h an+ Te#e*h$ne
C$3*an) =PT;T? as shi**ing c#er< an+ s&*ervis$r, res*ec,ive#), in PT;TGs Shi**ing Sec,i$n,
Ma,eria#s Manage3en, Gr$&*. Ac,ing $n an a##ege+ &nsigne+ #e,,er regar+ing an$3a#$&s
,ransac,i$ns a, ,he Shi**ing Sec,i$n, PT;T %$r3e+ a s*ecia# a&+i, ,ea3 ,$ inves,iga,e ,he
3a,,er. I, was +isc$vere+ ,ha, ,he Shi**ing Sec,i$n Eac<e+ &* ,he va#&e $% ,he %reigh, c$s,s %$r
g$$+s shi**e+ an+ ,ha, ,he +&*#ica,es $% ,he shi**ing +$c&3en,s a##ege+#) sh$we+ ,races $%
,a3*ering, a#,era,i$n an+ s&*eri3*$si,i$n. Pere4 an+ 7$ria were *#ace+ $n *reven,ive
s&s*ensi$n %$r ( +a)s %$r ,heir a##ege+ inv$#ve3en, in ,he an$3a#). Their s&s*ensi$n was
eF,en+e+ %$r 12 +a)s ,wice. A 3e3$ran+&3 was iss&e+ ') PT;T +is3issing ,he3 %r$3 service
%$r having %a#siJe+ c$3*an) +$c&3en,s. Pere4 an+ 7$ria J#e+ a c$3*#ain, %$r i##ega#
s&s*ensi$n an+ i##ega# +is3issa#, a##eging ,ha, ,he) were +is3isse+ $n ,he +a,e ,he) receive+
,he 3e3$ran+&3. The) #i<ewise c$n,en+e+ ,ha, +&e *r$cess was n$, $'serve+ in ,he a'sence
$% a $earing in which ,he) c$&#+ have eF*#aine+ ,heir si+e an+ re%&,e+ ,he evi+ence agains,
,he3.
Iss&eL
Whe,her $r n$, ,he +is3issa# $% Pere4 an+ 7$ria was #ega#.
R&#ingL
The +is3issa# is i##ega#. PT;T +i+ n$, $'serve +&e *r$cess when i, %ai#e+ ,$ c$3*#) wi,h ,he
,w$5n$,ice reA&ire3en, %$r ,er3ina,ing e3*#$)ees. ART. !"". 4isellaneous provisions. ` F F
F ='? S&'Eec, ,$ ,he c$ns,i,&,i$na# righ, $% w$r<ers ,$ sec&ri,) $% ,en&re an+ ,heir righ, ,$ 'e
*r$,ec,e+ agains, +is3issa# eFce*, %$r a E&s, an+ a&,h$ri4e+ ca&se an+ wi,h$&, *reE&+ice ,$
,he reA&ire3en, $% n$,ice &n+er Ar,ic#e !1 $% ,his C$+e, ,he e3*#$)er sha## %&rnish ,he w$r<er
wh$se e3*#$)3en, is s$&gh, ,$ 'e ,er3ina,e+ a wri,,en n$,ice c$n,aining a s,a,e3en, $% ,he
ca&ses %$r ,er3ina,i$n an+ sha## aK$r+ ,he #a,,er a3*#e $**$r,&ni,) ,$ 'e hear+ an+ ,$ +e%en+
hi3se#% wi,h ,he assis,ance $% his re*resen,a,ive i% he s$ +esires in acc$r+ance wi,h c$3*an)
r&#es an+ reg&#a,i$ns *r$3&#ga,e+ *&rs&an, ,$ g&i+e#ines se, ') ,he 7e*ar,3en, $% La'$r an+
E3*#$)3en,. An) +ecisi$n ,a<en ') ,he e3*#$)er sha## 'e wi,h$&, *reE&+ice ,$ ,he righ, $% ,he
w$r<er ,$ c$n,es, ,he va#i+i,) $r #ega#i,) $% his +is3issa# ') J#ing a c$3*#ain, wi,h ,he regi$na#
'ranch $% ,he Na,i$na# La'$r Re#a,i$ns C$33issi$n. The '&r+en $% *r$ving ,ha, ,he
,er3ina,i$n was %$r a va#i+ $r a&,h$ri4e+ ca&se sha## res, $n ,he e3*#$)er.
Pere4 an+ 7$ria were nei,her a**rise+ $% ,he charges agains, ,he3 n$r given a chance ,$
+e%en+ ,he3se#ves. The) were si3*#) an+ ar'i,rari#) se*ara,e+ %r$3 w$r< an+ serve+ n$,ices
$% ,er3ina,i$n in ,$,a# +isregar+ $% ,heir righ,s ,$ +&e *r$cess an+ sec&ri,) $% ,en&re. Where
Page 11!
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
,he +is3issa# was wi,h$&, E&s, $r a&,h$ri4e+ ca&se an+ ,here was n$ +&e *r$cess, Ar,ic#e !"9
$% ,he La'$r C$+e, 3an+a,es ,ha, ,he e3*#$)ee is en,i,#e+ ,$ reins,a,e3en, wi,h$&, #$ss $%
seni$ri,) righ,s an+ $,her *rivi#eges an+ %&## 'ac<wages, inc#&sive $% a##$wances, an+ $,her
'eneJ,s $r ,heir 3$ne,ar) eA&iva#en, c$3*&,e+ %r$3 ,he ,i3e ,he c$3*ensa,i$n was n$, *ai+
&* ,$ ,he ,i3e $% ac,&a# reins,a,e3en,. H$wever, reins,a,e3en, is n$ #$nger *$ssi'#e 'eca&se
$% ,he #eng,h $% ,i3e ,ha, has *asse+ %r$3 ,he +a,e $% ,he inci+en, ,$ Jna# res$#&,i$n.
fff In ,his case, +&e *r$cess was n$, $'serve+ 'eca&se $% ,he vi$#a,i$n $% ,he ,win R n$,ice
reA&ire3en,. H$wever, ,he a'sence $% a hearing +$es n$, a#wa)s res&#, ,$ a +enia# $% +&e
*r$cess. The c$&r, ha+ ,he %$##$wing ,$ sa)L
Whi#e a %$r3a# hearing $r c$n%erence is i+ea#, i, is n$, an a's$#&,e, 3an+a,$r) $r eFc#&sive
aven&e $% +&e *r$cess. An e3*#$)eeGs righ, ,$ 'e hear+ in ,er3ina,i$n cases is sa,isJe+ n$,
$n#) ') a %$r3a# %ace ,$ %ace c$n%r$n,a,i$n '&, ') an) 3eaning%&# $**$r,&ni,) ,$ c$n,r$ver,
,he charges agains, hi3 an+ ,$ s&'3i, evi+ence in s&**$r, ,here$%. PT$ 'e hear+P +$es n$,
3ean ver'a# arg&3en,a,i$n a#$ne inas3&ch as $ne 3a) 'e hear+ E&s, as eKec,ive#) ,hr$&gh
wri,,en eF*#ana,i$ns, s&'3issi$ns $r *#ea+ings. There%$re, whi#e ,he *hrase Pa3*#e
$**$r,&ni,) ,$ 'e hear+P 3a) in %ac, inc#&+e an ac,&a# hearing, i, is n$, #i3i,e+ ,$ a %$r3a#
hearing $n#). In $,her w$r+s, ,he eFis,ence $% an ac,&a#, %$r3a# P,ria#5,)*eP hearing, a#,h$&gh
*re%erre+, is n$, a's$#&,e#) necessar) ,$ sa,is%) ,he e3*#$)eeGs righ, ,$ 'e hear+. The
e3*#$)er 3a) *r$vi+e an e3*#$)ee wi,h a3*#e $**$r,&ni,) ,$ 'e hear+ an+ +e%en+ hi3se#%
wi,h ,he assis,ance $% a re*resen,a,ive $r c$&nse# in wa)s $,her ,han a %$r3a# hearing. The
e3*#$)ee can 'e %&##) aK$r+e+ a chance ,$ res*$n+ ,$ ,he charges agains, hi3, a++&ce his
evi+ence $r re'&, ,he evi+ence agains, hi3 ,hr$&gh a wi+e arra) $% 3e,h$+s, ver'a# $r
wri,,en. The %$##$wing are ,he g&i+ing *rinci*#es in c$nnec,i$n wi,h ,he hearing reA&ire3en, in
+is3issa# casesL
=a? Pa3*#e $**$r,&ni,) ,$ 'e hear+P 3eans an) 3eaning%&# $**$r,&ni,) =ver'a# $r wri,,en?
given ,$ ,he e3*#$)ee ,$ answer ,he charges agains, hi3 an+ s&'3i, evi+ence in s&**$r, $%
his +e%ense, whe,her in a hearing, c$n%erence $r s$3e $,her %air, E&s, an+ reas$na'#e wa).
='? a %$r3a# hearing $r c$n%erence 'ec$3es 3an+a,$r) $n#) when reA&es,e+ ') ,he e3*#$)ee
in wri,ing $r s&'s,an,ia# evi+en,iar) +is*&,es eFis, $r a c$3*an) r&#e $r *rac,ice reA&ires i,, $r
when si3i#ar circ&3s,ances E&s,i%) i,.
=c? ,he Pa3*#e $**$r,&ni,) ,$ 'e hear+P s,an+ar+ in ,he La'$r C$+e *revai#s $ver ,he Phearing
$r c$n%erenceP reA&ire3en, in ,he i3*#e3en,ing r&#es an+ reg&#a,i$ns.
Pe,i,i$ners #i<ewise c$n,en+e+ ,ha, +&e *r$cess was n$, $'serve+ in ,he a'sence $% a hearing
in which ,he) c$&#+ have eF*#aine+ ,heir si+e an+ re%&,e+ ,he evi+ence agains, ,he3. There is
n$ nee+ %$r a hearing $r c$n%erence. We n$,e a 3ar<e+ +iKerence in ,he s,an+ar+s $% +&e
*r$cess ,$ 'e %$##$we+ as *rescri'e+ in ,he La'$r C$+e an+ i,s i3*#e3en,ing r&#es. The La'$r
C$+e, $n $ne han+, *r$vi+es ,ha, an e3*#$)er 3&s, *r$vi+e ,he e3*#$)ee a3*#e $**$r,&ni,)
,$ 'e hear+ an+ ,$ +e%en+ hi3se#% wi,h ,he assis,ance $% his re*resen,a,ive i% he s$ +esiresL
N$ne,he#ess, Sec,i$n !=+?, R&#e I $% ,he I3*#e3en,ing R&#es $% B$$< 8I $% ,he La'$r C$+e
sh$&#+ n$, 'e ,a<en ,$ 3ean ,ha, h$#+ing an ac,&a# hearing $r c$n%erence is a c$n+i,i$n sine
A&a n$n %$r c$3*#iance wi,h ,he +&e *r$cess reA&ire3en, in ,er3ina,i$n $% e3*#$)3en,. The
,es, %$r ,he %air *r$ce+&re g&aran,ee+ &n+er Ar,ic#e !""='? cann$, 'e whe,her ,here has 'een
a %$r3a# *re,er3ina,i$n c$n%r$n,a,i$n 'e,ween ,he e3*#$)er an+ ,he e3*#$)ee. The Pa3*#e
$**$r,&ni,) ,$ 'e hear+P s,an+ar+ is nei,her s)n$n)3$&s n$r si3i#ar ,$ a %$r3a# hearing. T$
c$nJne ,he e3*#$)eeGs righ, ,$ 'e hear+ ,$ a s$#i,ar) %$r3 narr$ws +$wn ,ha, righ,. I, +e*rives
hi3 $% $,her eA&a##) eKec,ive %$r3s $% a++&cing evi+ence in his +e%ense. Cer,ain#), s&ch an
eFc#&sivis, an+ a's$#&,is, in,er*re,a,i$n is $ver#) res,ric,ive. The Pver) na,&re $% +&e *r$cess
nega,es an) c$nce*, $% inTeFi'#e *r$ce+&res &niversa##) a**#ica'#e ,$ ever) i3agina'#e
si,&a,i$n.P SigniJcan,#), Sec,i$n !=+?, R&#e I $% ,he I3*#e3en,ing R&#es $% B$$< 8I $% ,he La'$r
C$+e i,se#% *r$vi+es ,ha, ,he s$5ca##e+ s,an+ar+s $% +&e *r$cess $&,#ine+ ,herein sha## 'e
Page 11
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
$'serve+ Ps&'s,an,ia##),P n$, s,ric,#). This is a rec$gni,i$n ,ha, whi#e a %$r3a# hearing $r
c$n%erence is i+ea#, i, is n$, an a's$#&,e, 3an+a,$r) $r eFc#&sive aven&e $% +&e *r$cess.
An e3*#$)eeGs righ, ,$ 'e hear+ in ,er3ina,i$n cases &n+er Ar,ic#e !""='? as i3*#e3en,e+ ')
Sec,i$n !=+?, R&#e I $% ,he I3*#e3en,ing R&#es $% B$$< 8I $% ,he La'$r C$+e sh$&#+ 'e
in,er*re,e+ in 'r$a+ s,r$<es. I, is sa,isJe+ n$, $n#) ') a %$r3a# %ace ,$ %ace c$n%r$n,a,i$n '&,
') an) 3eaning%&# $**$r,&ni,) ,$ c$n,r$ver, ,he charges agains, hi3 an+ ,$ s&'3i, evi+ence
in s&**$r, ,here$%. A hearing 3eans ,ha, a *ar,) sh$&#+ 'e given a chance ,$ a++&ce his
evi+ence ,$ s&**$r, his si+e $% ,he case an+ ,ha, ,he evi+ence sh$&#+ 'e ,a<en in,$ acc$&n, in
,he a+E&+ica,i$n $% ,he c$n,r$vers). PT$ 'e hear+P +$es n$, 3ean ver'a# arg&3en,a,i$n a#$ne
inas3&ch as $ne 3a) 'e hear+ E&s, as eKec,ive#) ,hr$&gh wri,,en eF*#ana,i$ns, s&'3issi$ns
$r *#ea+ings. There%$re, whi#e ,he *hrase Pa3*#e $**$r,&ni,) ,$ 'e hear+P 3a) in %ac, inc#&+e
an ac,&a# hearing, i, is n$, #i3i,e+ ,$ a %$r3a# hearing $n#). In $,her w$r+s, ,he eFis,ence $% an
ac,&a#, %$r3a# P,ria#5,)*eP hearing, a#,h$&gh *re%erre+, is n$, a's$#&,e#) necessar) ,$ sa,is%)
,he e3*#$)eeGs righ, ,$ 'e hear+.
3". 9eleco//unica(ions 4is(riu(ors S%ecialis(s !nc. e( al., vs. Garriel, G.R. No.
17*9-1, Ma$ 2., 2""9, ci(ing 2""9 3ere0
9ac,sL
Ra)3&n+ Garrie# was a C&s,$3er Service Assis,an, =CSA? w$r<ing a, Te#ec$33&nica,i$ns
7is,ri'&,$rs S*ecia#is,s Inc.=T7SI?. He was in charge $% se##ing ce##*h$nes ,$ c&s,$3ers as we##
as ce##*h$ne #ine acc$&n,s ,$ s&'scri'ers %r$3 which he c$##ec,e+ cash *a)3en,s %$r. 7&ring
,hese vari$&s ,ransac,i$ns, ,hree n$,a'#e inci+en,s $cc&rre+. The Jrs, was when he %$rge+ ,he
signa,&re $% a s&'scri'er, Ms. Ra,c#iKe, when she %$rg$, ,$ sign ,he c$verage waiver in her
a**#ica,i$n. The sec$n+ inci+en, was si3i#ar ,$ ,he Jrs,, inv$#ving $ne Mi#a H&i#ar, where
again, Garrie# %$rge+ her signa,&re $n her c$verage waiver. The ,hir+ inci+en, inv$#ve+ Garrie#
in se##ing a +e%ec,ive ce##*h$ne *ers$na##) $wne+ ') hi3 ,$ a s&'scri'er na3e+ He#c$n
Ma'esa. He +i+ n$, iss&e an) $Icia# recei*, %$r ,he ,ransac,i$n. These inci+en,s were 'r$&gh,
,$ ,he a,,en,i$n $% ,he h&3an res$&rce +e*ar,3en, ') ,hese ,hree c&s,$3ers. Garrie# was
,hen given a n$,ice ,$ eF*#ain wh) he vi$#a,e+ c$3*an) r&#es an+ *r$ce+&res. Garrie# +enies
a## ,he acc&sa,i$ns 'e%$re hi3. An inves,iga,i$n ens&e+. Therea%,er, Garrie# was +is3isse+ $n
gr$&n+s $% seri$&s 3isc$n+&c, an+ #$ss $% ,r&s, an+ c$nJ+ence. Garrie# J#es an i##ega#
+is3issa# case agains, ,he c$3*an).
Iss&eL
1. Was Garrie# i##ega##) +is3isse+W
!. Was +&e *r$cess $'serve+ in +is3issing Garrie#W
R&#ingL
There was a va#i+ +is3issa#. An e3*#$)ee en,r&s,e+ wi,h ,he c$3*an)Gs g$$+s an+ *r$*er,ies,
wh$ ,herea%,er vi$#a,es c$3*an) *$#icies wi,h regar+ ,$ ,he 3a<ing Jc,i,i$&s +$c&3en,a,i$n,
wi##%&##) an+ <n$wing#) se##ing +e%ec,ive *r$+&c,s, an+ c$nniving wi,h c$5e3*#$)ees in crea,ing
a cash sh$r,age $n ,he re*$r, ,$ *a) %$r his $wn ce##*h$ne c$ns,i,&,e seri$&s 3isc$n+&c, as
we## as #$ss $% ,r&s, an+ c$nJ+ence as gr$&n+s %$r a va#i+ +is3issa#. The c$3*an) ha+
c$3*#ie+ wi,h ,he ,win +&e *r$cess reA&ire3en, in ,er3ina,ing an e3*#$)ee. He was given a
n$,ice ,$ eF*#ain c$&*#e+ wi,h ,he #is, $% vi$#a,i$ns $% i,s c$3*an) *$#ic). The essence $% +&e
*r$cess is si3*#) ,he $**$r,&ni,) ,$ 'e hear+. A%,er 'eing hear+, an inves,iga,i$n was
Page 11.
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
c$n+&c,e+ ,$ +e,er3ine ,he veraci,) $% ,he %ac,s a##ege+ $n '$,h si+es. The n$,ice $% +is3issa#
was eKec,e+ ,herea%,er.
Princi*#esL
1. Gr$&n+s %$r L$ss $% Tr&s, an+ C$nJ+ence a**#) $n#) ,$ e3*#$)ees $cc&*)ing *$si,i$ns $%
,r&s, an+ c$nJ+ence $r ,h$se wh$ are r$&,ine#) charge+ wi,h ,he care an+ c&s,$+) $% ,he
e3*#$)erGs 3$ne) $r *r$*er,). ReA&isi,esL
a. ,he #$ss $% c$nJ+ence 3&s, n$, 'e si3&#a,e+O
'. i, sh$&#+ n$, 'e &se+ as a s&',er%&ge %$r ca&ses which are i##ega#, i3*r$*er $r &nE&s,iJe+O
c. i, 3a) n$, 'e ar'i,rari#) asser,e+ in ,he %ace $% $verwhe#3ing evi+ence ,$ ,he c$n,rar)O
+. i, 3&s, 'e gen&ine, n$, a 3ere a%,er,h$&gh,, ,$ E&s,i%) ear#ier ac,i$n ,a<en in 'a+ %ai,h, an+,
e. ,he e3*#$)ee inv$#ve+ h$#+s a *$si,i$n $% ,r&s, an+ c$nJ+ence.
!. G&i+ing *rinci*#es in c$nnec,i$n wi,h ,he hearing reA&ire3en, in +is3issa# casesL
A. a3*#e $**$r,&ni,) ,$ 'e hear+ 3eans an) 3eaning%&# $**$r,&ni,), ver'a# $r wri,,en,
given ,$ ,he e3*#$)ee ,$ answer ,he charges agains, hi3 an+ s&'3i, evi+ence in s&**$r, $%
his +e%ense, whe,her in a hearing, c$n%erence $r s$3e $,her %air, E&s, an+ reas$na'#e wa).
B. a %$r3a# hearing $r c$n%erence 'ec$3es MAN7AT:R@ $n#) whenL
1. reA&es,e+ ') ,he e3*#$)ee in wri,ing $r
!. s&'s,an,ia# evi+en,iar) +is*&,es eFis,, $r
. a c$3*an) r&#e $r *rac,ice reA&ires i,, $r
.. si3i#ar circ&3s,ances E&s,i%) i,.
C. ,he a3*#) $**$r,&ni,) ,$ 'e hear+ s,an+ar+s in ,he La'$r C$+e PRE8AILS $ver ,he
hearing $r c$n%erence reA&ire3en, in ,he IRR.
. C$33en, $n S$cia# 6&s,iceL
The *$#ic) $% s$cia# E&s,ice is n$, in,en+e+ ,$ c$&n,enance wr$ng+$ing si3*#) 'eca&se i, is
c$33i,,e+ ') ,he &n+er*rivi#ege+. A, 'es, i, 3a) 3i,iga,e ,he *ena#,) '&, i, cer,ain#) wi## n$,
c$n+$ne ,he $Kense. FFF Th$se wh$ inv$<e s$cia# E&s,ice 3a) +$ s$ $n#) i% ,heir han+s are
c#ean an+ ,heir 3$,ives '#a3e#ess an+ n$, si3*#) 'eca&se ,he) ha**en ,$ 'e *$$r. This grea,
*$#ic) $% $&r C$ns,i,&,i$n is n$, 3ean, %$r ,he *r$,ec,i$n $% ,h$se wh$ have *r$ve+ ,he) are
n$, w$r,h) $% i,, #i<e ,he w$r<ers wh$ have ,ain,e+ ,he ca&se $% #a'$r wi,h ,he '#e3ishes $%
,heir $wn charac,er. =1a 5uan Restaurant v. NLRC0
31. 9riu/%h !n(erna(ional 3hili%%ines v. A%os(ol, G.R. No. 1)**23, 2une 1), 2""9
9ac,sL
Res*$n+en, A*$s,$# was hire+ as assis,an, 3anager ') *e,i,i$ner Tri&3*h In,erna,i$na#
=Phi#s.?, Inc. =TIPI? in March 1991, an+ was ,er3ina,e+ ') TIPI $n !1 6an&ar) !(((. :n ,he
$,her han+, res*$n+en, :*&#encia was hire+ as a wareh$&se he#*er ') TIPI s$3e,i3e in 199(,
an+ was ,he c$3*an)Gs wareh$&se s&*ervis$r a, ,he ,i3e $% ,he ,er3ina,i$n $% his
e3*#$)3en, $n !1 6an&ar) !(((. A*$s,$# was ,he i33e+ia,e s&*eri$r $% :*&#encia. :n 1.
an+ 12 A&g&s, 1999, TIPI c$n+&c,e+ an inven,$r) c)c#e c$&n, $% i,s +irec, an+ re,ai# sa#es in i,s
M&b$4 wareh$&se. The inven,$r) c)c#e c$&n, )ie#+e+ +iscre*ancies 'e,ween i,s res&#, an+ ,he
s,$c< #is, 'a#ance S&g&e =TIPIGs Mar<e,ing Services Manager? sen, a Msh$w5ca&se #e,,erN ,$
A*$s,$#, TIPIGs Assis,an, Manager5Wareh$&se an+ 7is,ri'&,i$n, reA&iring hi3 ,$ eF*#ain in
wri,ing ,he nega,ive variance 'ase+ $n ,he inven,$r) c)c#e c$&n,.
Page 112
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
:n !1 6an&ar) !(((, TIPI, ,hr$&gh S&g&e, serve+ n$,ices ,$ A*$s,$# an+ :*&#encia, s,a,ing ,ha,
,heir e3*#$)3en, ha+ 'een ,er3ina,e+ %$r c$33i,,ing in%rac,i$ns $% ,he c$3*an)Gs r&#es an+
reg&#a,i$ns. S*eciJca##), A*$s,$# was %$&n+ ,$ have c$33i,,e+ :Kense N$. =9ra&+ $r wi##%&#
'reach ') an e3*#$)ee $% ,he ,r&s, re*$se+ in hi3 ') ,he C$3*an)? an+ :Kense N$. !2
=>sing, &,,ering $r sa)ing *r$%ane, in+ecen,, a'&sive, +er$ga,$r) an+B$r in+ec$r$&s w$r+s $r
#ang&age agains, ,he e3*#$)er $r s&*ervis$r?, whi#e :*&#encia was %$&n+ ,$ have c$33i,,e+
:Kense N$. $n#). :n !1 6an&ar) !(((, A*$s,$# an+ :*&#encia J#e+ wi,h ,he La'$r Ar'i,er a
c$3*#ain, %$r i##ega# +is3issa# an+ n$n5*a)3en, $% sa#aries an+ $,her 'eneJ,s agains, TIPI.
La'$r Ar'i,er ren+ere+ a 7ecisi$n +is3issing ,he C$3*#ain, %$r #ac< $% 3eri,. :n a**ea#, ,he
NLRC aIr3e+ ,he 7ecisi$n $% ,he La'$r Ar'i,er. :n !( 9e'r&ar) !((., ,he C$&r, $% A**ea#s
ren+ere+ E&+g3en,, reversing an+ se,,ing asi+e ,he NLRC 7ecisi$n.
Iss&esL
W:N res*$n+en,s were i##ega##) +is3isse+.
R&#ingL
N:. We Jn+ ,he a**ea# 3eri,$ri$&s.
In cases $% ,er3ina,i$n $% e3*#$)ees, ,he we##5en,renche+ *$#ic) is ,ha, n$ w$r<er sha## 'e
+is3isse+ eFce*, %$r E&s, $r a&,h$ri4e+ ca&se *r$vi+e+ ') #aw an+ a%,er +&e *r$cess.
7is3issa#s $% e3*#$)ees have ,w$ %ace,sL Jrs,, ,he #ega#i,) $% ,he ac, $% +is3issa#, which
c$ns,i,&,es s&'s,an,ive +&e *r$cessO an+ sec$n+, ,he #ega#i,) in ,he 3anner $% +is3issa#,
which c$ns,i,&,es *r$ce+&ra# +&e *r$cess.
TIPI c$3*#ie+ wi,h ,he Pr$ce+&ra# 7&e Pr$cess
The gr$&n+s ,$ which res*$n+en,s were he#+ #ia'#e are a3$ng ,he E&s, ca&ses %$r ,er3ina,i$n
$% e3*#$)3en, &n+er Ar,ic#e !1! $% ,he La'$r C$+e.
Ter3ina,i$n $% e3*#$)3en, 'ase+ $n Ar,ic#e !1! 3an+a,es ,ha, ,he e3*#$)er s&'s,an,ia##)
c$3*#) wi,h ,he reA&ire3en,s $% +&e *r$cess &n+er ,he r&#es i3*#e3en,ing ,he La'$r C$+e
=Sec. !=+?, R&#e 1, B$$< 8I $% ,he :3ni'&s R&#es?, ,$ wi,L
F F F
=i? A wri,,en n$,ice serve+ $n ,he e3*#$)ee s*eci%)ing ,he gr$&n+ $r gr$&n+s %$r ,er3ina,i$n,
an+ giving sai+ e3*#$)ee reas$na'#e $**$r,&ni,) wi,hin which ,$ eF*#ain his si+eO
=ii? A hearing $r c$n%erence +&ring which ,he e3*#$)ee c$ncerne+, wi,h ,he assis,ance $%
c$&nse# i% he s$ +esires is given $**$r,&ni,) ,$ res*$n+ ,$ ,he charge, *resen, his evi+ence $r
re'&, ,he evi+ence *resen,e+ agains, hi3O an+
=iii? a wri,,en n$,ice $% ,er3ina,i$n serve+ $n ,he e3*#$)ee, in+ica,ing ,ha, &*$n, +&e
c$nsi+era,i$n $% a## ,he circ&3s,ances, gr$&n+s have 'een es,a'#ishe+ ,$ E&s,i%) his
,er3ina,i$n.
F F F

There is n$ A&es,i$n ,ha, TIPI, in +is3issing A*$s,$# an+ :*&#encia, c$3*#ie+ wi,h ,he a'$ve
reA&ire3en,s $% *r$ce+&ra# +&e *r$cess. The C$&r, $% A**ea#s even *$in,e+ $&, in i,s +ecisi$n
s$3e $% ,he +$c&3en,ar) *r$$%s $% s&ch c$3*#iance. We A&$,e ,he *er,inen, *$r,i$n $% ,he
C$&r, $% A**ea#sG +ecisi$n, vi4L

F F F In ,he *resen, case, ,he evi+ence sh$ws ,ha, ,he *riva,e res*$n+en, /TIPI0 ha+
s&'s,an,ia##) c$3*#ie+ wi,h ,he reA&ire3en,s $% *r$ce+&ra# +&e *r$cess. The *riva,e
res*$n+en, sen, ,he %$##$wing ,$ ,he *e,i,i$nersL =a? sh$w ca&se #e,,ers a++resse+ ,$ ,he
Page 11-
LABOR RELATIONS
A,,). 6eKers$n M. MarA&e4
*e,i,i$ners /A*$s,$# an+ :*&#encia0 reA&iring ,he3 ,$ eF*#ain in wri,ing wi,hin .1 h$&rs &*$n
recei*,, ,he +iscre*anc) $n ,he c)c#e c$&n, c$n+&c,e+ $n ,he M&b$4 wareh$&se $n A&g&s, 1.5
12, 1999 an+ *#acing '$,h $% ,he3 $n #eave wi,h *a) &n,i# %&r,her n$,ice *en+ing inves,iga,i$n
$n ,he 3a,,erO ='? 3e3$ran+&3 +a,e+ :c,$'er !!, 1999 a++resse+ ,$ *e,i,i$ner A*$s,$#
sh$wing ,he Jn+ings a%,er ,he inves,iga,i$n was c$n+&c,e+ ') ,he *riva,e res*$n+en,,
reA&iring hi3 ,$ eF*#ain wi,hin !. h$&rs %r$3 recei*, wh) he sh$&#+ n$, 'e ,er3ina,e+ %r$3
his e3*#$)3en, %$r #$ss $% c$nJ+enceO an+ =c? ,he n$,ices $% ,er3ina,i$n +a,e+ 6an&ar) !1,
!(((.
S&'s,an,ive 7&e Pr$cess5 R were +is3isse+ %$r va#i+ an+ E&s, ca&se
Th&s, we are #e%, wi,h ,he A&es,i$n $n whe,her ,he a##ege+ ca&ses %$r +is3issa# $% res*$n+en,s
A*$s,$# an+ :*&#encia are s&**$r,e+ ') s&'s,an,ia# evi+ence.

A*$s,$# an+ :*&#encia were +is3isse+ 3ain#) $n gr$&n+ $% %ra&+ $r wi##%&# 'reach $% ,r&s,. As
*revi$&s#) 3en,i$ne+, %ra&+ $r wi##%&# 'reach $% ,he e3*#$)erGs ,r&s, is a E&s, ca&se %$r
,er3ina,i$n $% e3*#$)3en, &n+er Ar,ic#e !1!=c? $% ,he La'$r C$+e. This *r$visi$n is *re3ise+
$n ,he %ac, ,ha, ,he e3*#$)ee c$ncerne+ h$#+s a *$si,i$n $% ,r&s, an+ c$nJ+ence, a si,&a,i$n
whic