LABOR LAW

PNOC-Exploration Corporation vs. NLRC and Salvador

GR 71711, August 18, 1988

FACTS:
On May 28, 1976 PNOC-EC employed Oscar Salvador as driver-mechanic for its Cagayan Valley project.
The employment contract clearly specified that aforesaid employment is co-terminus with the project's
completion without prejudice to the latter's right to shorten or extend the term of employment.

On June 30, 1976, shares of stock of PNOC-EC were conveyed and sold to PNOC. On Jan. 15, 1977,
upon completion of the project, private respondents employment was terminated. On Oct. 1, 1978, private
respondent was hired again for petitioner's Samar project under the same terms and conditions. Said
contract was completed in May 1979 and has not since been renewed. Believing he had become a
regular employee of PNO-EC, Salvador filed a complaint for illegal dismissal, backwages and allowances
before the Labor Arbiter, which ruled in the latter's favor and affirmed by the NLRC.

ISSUE:

1. Does the Ministry of Labor or its agencies have jurisdiction over the matter?

2. Was private respondent illegally dismissed?

RULING:
1. No, since PNOC-EC became a subsidiary of PNOC on June 30, 1976, the Civil Service law
applies being that PNOC is a GOCC. Therefore, the assailed decision of the Labor Arbiter and affirmed
by the NLRC is null and void.

2. No, private respondent was only employed for a specific project which ended upon the last
project's completion on May 1979 and as defined by Art. 281 of PD 442 to wit:

Art. 281. Regular and Casual Employment.

"the employment shall be deemed to be regular where the employee has been
engaged to perform activities which are usually necessary or desirable in the
usual business or trade of the employer, EXCEPT, where the employment has
been fixed for a specific project or undertaking the completion or termination of
which has been determined at the time of the engagement of the employee or
where the work or service to be performed is seasonal in nature and the
employment is for the duration of the season."

Petition is granted and assailed decision of NLRC is set-aside and complaint for illegal dismissal is
dismissed.