FUJI TELEVISION NETWORK v.

ARLENE ESPIRITU
FACTS:

DOCTRINE: Burden of ER to prove that person whose HELD:

services it pays for is an independent contractor rather than
regular EE with or without fixed term

FACTS:
 Arlene engaged by Fuji as news
correspondent/producer in 2005: report Ph news
to Fuji (thru Manila Bureau field office
 Employment contract initially provided for 1 y
term, but was successively renewed on yearly
basis with salary adj
 Diagnosed with lung cancer in 2009. Fuji told her
that it will have a problem renewing her contract,
but Arlene insisted that she was still fit to work
 Arlene and Fuji signed nonrenewal contract: no
renewal after expiration in May 31, 2009
 Arlene acknowledged receipt of USD18050
(monthly salary from Mar-May, bonuses and
separation pay), but signed UNDER PROTEST
 Filed complaint for illegal dismissal; had no other
recourse but to sign, otherwise amt would have
been withheld
 LA: dismissed. Arlene and independent contractor
 NLRC: reversed. Continuous rendering of services
necessary and desirable to business
 Distinction bt. FT, Independent Con., and Regular
 CA: affirmed NLRC
o Regular: necessary and desirable;
continuous rehiring
o Sonza N/A: not contracted on acct of
peculiar ability, special talent, or skill.
Everything used by her in her work owned
by Fuji
o Signing of contract not voluntary
 Fuji: A hired as stringer, an independent contractor
o No control
o Salary was higher than normal rate
o Annual renewal of contract was upon
Arlene’s insistence
o Fuji agreed because she had skills that
distinguished her from other EEs
o A and Fuji dealt on equal terms
o A freely agreed not to renew (evidenced
by emails; showed power to bargain)
o Employment ceased upon expiration of
contract. Fixed term
 Arlene:
o Fuji had control and supervision
o Successive renewal = necessary and
desirable
o Fuji owned things she used for work
o Sonza ruling NA: Jay Sonza was a news
anchor, talk show host – celebrity status
Classification of Employees
(accdg to A280)
1. Regular
a. Perform activities necessary and desirable
to business
b. Casual employees with >1yr service
2. Project
3. Seasonal
4. Casual
(Accdg to Brent v. Zamora)
5. Fixed term
a. Determining factor not activities, but day
certain
b. Where fixed term essential and natural
appurtenance (e.g. overseas contracts)
FT: informed of fixed terms, both parties on equal footing
IC: distinct and independent business, performs job on its
own, free from control of principal. No ER-EE rel between IC
and P.
 Also recognized in A106 LC and DO 18-A-11
 KINDS OF ICs
o Engaged in legitimate job contracting
o individuals with unique skills and
talents that set them apart from
ordinary EES
Fuji’s argument that A an IC under FT contract
contradictory
 EEs in FT contracts cannot be ICs because in FT
contracts, no ER-EE rel exists
 Test for FT is the DAY CERTAIN test
 Regular: determining factor is necessity and
desirability of work
 ICs: no ER-EE rel with Ps
CONCLUSION: A regular EE with FT contract
EE can be regular even with an FT contract
As long as it was EE who requested, or bargained, that
contract have definite date or termination, or that it was
freely entered into by both parties

ISSUE: WON Arlene a regular or fixed-term contractual

employee