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Baguio v NLRC General Milling LUPO JC Carpenters, masons GMC qualified as an indirect employer under Article
Corporation (GMC) and laborers to build 107; In LOC, there is deemed an EE-ER relationship
the building annex between principal and contracted EEs; In JC, there is
no such relationship
Coca Cola v dela Coca Cola Bottlers Peerless LOC Route helpers Contracting is are hot labor issues; Law allows
Cruz contracting but closely regulates these activities for
protection of employers; Peerless merely supplied labor
and EEs engaged in component functions of the
business; criteria: not the language of the contract but
the elements; in JC: principal controls the results whole
contractor control both results and methods
Garden of Memories v Garden of Memories Paulina Requino LOC Utility worker When contractor fails to pay wages of employees,
NLRC Park employer shall be jointly and severally liable with
contractor to employees to extent of work performed
under the contract; Presumption is that a contractor is
LOC unless contractor overcomes the burden of proving
elements (substantial capital/investment, independent
business, etc.)
Babas v Lorenzo Lorenzo Shipping BMSI LOC Checker, wielder, Parties cannot unilaterally dictate the character of their
Shipping Corporation mechanics, etc. business in a contract; In distinguishing if LOC or JC,
the totality of facts and the surrounding circumstances
should be considered; equipment used by BMSI were
merely rented from Lorenzo; When entity is classified as
LOC, contracted EEs become regular EEs of the
principal and entitled to security of tenure
Kaisahan v Manila Manila Water Company Borela (union ? Rank-and-file Article 111: extraordinary concept of attorneys fees; No
Water* president) employees need to show that employer acted with bad faith when it
withheld the wages of employees
GSIS v NLRC GSIS DNL Security LOC Security guards Separation pay is invested with a punitive character
such that an indirect employer should not be made
liable without a finding that it had conspired in illegal
dismissal; Petitioners liability: salary differential,
13thMP, unpaid wages (solidary liability)
First Philippine v FPIC DGMS LOC Secretarial and DGMSs paid in capital of P75K is not substantial; Office
Calimbas clerical jobs materials were owned by FPIC; no supervisor in the
(secretary and clerk) office to control contracted EEs; contracted employees

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attained regular status
Neri v NLRC FEBTC Building Care Corp/ JC Radio/telex operator BCC id s highly capitalized venture; substantial capital
BCC and janitor OR investment in tools, etc. (the law does not require
both); right of control test applied on BCC
Vinoya v LRC Regent Food Corp PMCI LOC Sales representative Not enough to show substantial capitalization or
investment in the form of tools (unlike Neri); enumerated
a list of factors to determine existence of JC/IC
relationship; contract undertakes to supply manpower
only and not to perform specific job (LOC); control test
applied to RFC; sales rep is not enumerated in the
Service Contract
Meralco v NLRC MIESCOR OPLGS JC Janitorial services General rule: Joint and solidary liability of indirect
employers/principal limited to unpaid wages (Article 107
and 109) with the contractors (Article 106); Exception:
principal can also be held liable for backwages and
separation pay if there is proof that principal conspired
with contractor in the illegal dismissal; Right of
reimbursement/recovery: only available to principal (not
contractor to principal); surety bonds covered claims
Sasan v NLRC E-PCIBank HI JC Janitorial, Elements to prove JC and LOC; factors to consider
messengerial and (totality of facts and surrounding circumstances); HI has
maintenance both substantial capital and investment in the form of
services tools, etc.; control of the principal is limited to the
results; directly related but not necessary to banking
Lakas v Burlington Burlingame Corp F. Garil LOC Promo employees In LOC, the law creates and EE-ER relationship to
prevent a circumvention of labor laws; Contractor
considered merely an agent of principal and the latter I
responsible as employer to contracted employees
Sonza v ABS CBN ABS CBN MJMDC JC Radio and TV talent/ Existence of ER-EE relationship is a question of fact;
host Circumstances indicative but not conclusive of JC: hired
for unique skills, paid much higher than regular
employees; the greater the control/supervision by
principal, then worker is deemed its employee; the less
control of the principal, the more likely the worker is
considered an independent contractor; ABS CBN did
not control the means and methods of Sonza;

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Exclusivity is not necessarily the same as control; right
of labor to security of tenure only arises when there is
ER-EE relationship; 4 fold test applied to ABS CBN
Dole v Esteve Dole Philippines CAMCO LOC Processing Criteria to determine existence of JC/IC: carrying on an
(cooperative) attendant/ feeder of independent business (plus other factors); Activities
canned pineapples performed by respondents are necessary and desirable
to the usual business of petitioner; As regular
employees of Dole, they are entitled to security of
tenure (stay home status for more than 6 months
tantamount to constructive and illegal dismissal)

Coca Cola v Climaco Coca Cola Bottlers Dr. Dean Climaco JC Medical doctor/ plant There is nothing wrong with employment of a doctor as
physician a company retained physican; Where no ER-EE
relationship exits between the parties, the termination of
the Retainer Agreement, which is allowed in by the
stipulations, does not constitute illegal dismissal;
Company does not tell how the doctor should conduct
his physical examinations, immunizations, diagnosis,
etc (hence, no control by Coca Cola); Being on call
during emergency cases does not make him a regular
Jaguar v Sales Delta Milling Industries Jaguar Security JC Security guards Articles 106, 107 and 109 of the LC regarding the joint
and several liability of the contractor and principal is
mandated to assure compliance with the provisions
therein including statutory minimum wage; Contractor is
liable by virtue as status of direct employer; Principal is
made liable as indirect employer should the contactor
be unable to pay; Contractor cannot claim
reimbursement from the principal through a cross-claim
filed with the Labor Court (RTC has JD because it is
merely a money claim); Labor code only provided status
of being solidarily liable; Reimburse only if payment has
been made to employees
Escario v NLRC California DL AdMark JC Merchandisers Definition (LOC and JC), elements (LOC and JC);

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Manufacturing (CMC) Factors to be considered in checking if JC (Vinoya
enumeration); Apply the 4 fold test on DL AdMark; It
was engaged in a legitimate business of advertising,
marketing, promotion and survey activities and had
other clients (Purefoods, Corona Supply, Splash,
Bernarte v PBA Philippine Basketball Jose Mel Nernarte JC Referee The very nature of petitioners job of officiation a
Association (PBA) professional basketball game undoubtedly calls for
freedom of control by respondents; Referees exercise
their own judgment based on the rules of the game;
Foreign case law declares that a referee is an
independent contractor, whose special skill and
independent judgment are required specifically for such
position and cannot be controlled by hiring party;
Termination of Retainer Agreement is not illegal
dismissal; General rules are merely guidelines towards
achievement of the desired result (no control as to
means and methods); Evaluation of performance of
referee by hirer does not equate regular employment
(merely to determine if contract should continue)
Begino v ABS CBN ABS CBN None but were LOC Cameramen/editors ABSCBNs repeated hiring of petitioners for its long
hired through and reporters (TV running news program positively indicates that the latter
Talent Contracts Patrol Bicol) were ABSCBNs regular employees; Test to determine
regular employment is reasonable connection between
activity and business of hirer. If the EE has been
performing the job for at least 1 year, even intermittent,
the law deems the repeated or continuing performance
as sufficient evidence of necessity, if not indispensability
if that activity; Subjected to control and supervision of
ABSCBN; Sonza (talent/skills and high fees) v. this case
(regular jobs at normal rates); 4 kinds of EEs: regular,
project, seasonal and casual

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Urbanes v Sec. Catalina Security SSS JC? Security guards (but It is only when the contractor pays the increases
Agency issue here is mandated by the Wage Order that it can claim an
reimbursement adjustment from the principal to cover the increases
between principal payable to the security guards; Right of the contractor,
and contractor) principal debtor, from the principal, solidary debtor,
arises only if he has paid the amounts; RTC has
jurisdiction (mere money claim so civil suit)

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