Professional Documents
Culture Documents
BONDAD
NORKIS FREE AND INDEPENDENT WORKERS
UNION, petitioner,
vs. NORKIS TRADING COMPANY, INC.,
respondent.
G.R. No. 157098 JUNE 30, 2005
Ponente: PANGANIBAN, J.
FACTS:
This is a Petition for Review under Rule 45
of the Rules of Court.
Petitioner entered into a Collective
Bargaining Agreement (CBA) effective from
August 1, 1994 to July 31, 1999 with
respondent.
ISSUE:
Whether or not respondent violated the CBA
in its refusal to grant its employees an
across-the-board increase as a result of the
passage of Wage Order No. ROVII-06.
HELD/RATIO:
NO. The Wage Order was intended to fix a new
minimum wage only, not to grant across-the-board
wage increases to all employees in Region VII. The
intent of the Order is indicated in its title,
Establishing New Minimum Wage Rates, as well as
in its preamble: the purpose, reason or justification
for its enactment was to adjust the minimum wage
of workers to cushion the impact brought about by
the latest economic crisis not only in the Philippines
but also in the Asian region.
A double burden cannot be imposed upon an
employer except by clear provision of law. It would
be unjust, therefore, to interpret Wage Order No.
ROVII-06 to mean that respondent should grant an
across-the-board increase. Such interpretation of
the Order is not sustained by its text.
The Court has always been guided by the State
policy enshrined in the Constitution: social
justice and the protection of the working
class. Social justice does not, however, mandate
that every dispute should be automatically decided
in favor of labor. In every case, justice is to be
granted to the deserving and dispensed in the light
of the established facts and the applicable law and
doctrine.
Petition is denied and decision of CA is affirmed.
Ponente: PERALTA, J.
FACTS:
This is a Petition for Review on Certiorari.
HELD/RATIO:
NO on both issues. While AB Sy's
employment relationship with respondents did not
stop but continues to be in force even when he was
on shore leave, their contract clearly provides that it
is not enough that death occurred during the term
of the employment contract, but must be workrelated to be compensable.
Clearly, to be entitled for
death
compensation benefits from the employer, the
death of the seafarer (1) must be work-related; and
(2) must happen during the term of the employment
contract. Under the Amended POEA Contract,
work-relatedness is now an important requirement.
The qualification that death must be work-related
has made it necessary to show a causal connection
between a seafarers work and his death to be
compensable.
AB Sy was not in the performance of his
duty as a seaman, but was doing an act for his own
personal benefit at the time of the accident. The
cause of AB Sys death at the time he was on shore
leave which was drowning, was not brought about
by a risk which was only peculiar to his employment
as a seaman. In fact, he was in no different
circumstance with other people walking along the
riverside who might also drown if no due care to
ones safety is exercised. Petitioner failed to
establish by substantial evidence her right to the
entitlement of the benefits provided by law.
Under
the
2000
POEA
Amended
Employment Contract, work-related injury is defined
as an injury(ies) resulting in disability or death
arising out of and in the course of employment.
Thus, there is a need to show that the injury
resulting to disability or death must arise (1) out of
employment, and (2) in the course of employment.
Mrs. Sy cannot be granted her claim for
death compensation benefits in the absence of
substantial evidence to prove her entitlement
thereto, since to do so will cause an injustice to the
employer. Otherwise stated, while it is true that
labor contracts are impressed with public interest
and the provisions of the POEA-SEC must be
construed logically and liberally in favor of Filipino
seaman in the pursuit of their employment on board
ocean-going vessels, still the rule is that justice is in
every case for the deserving to be dispensed with
in the light of established facts, the applicable law,
and existing jurisprudence.
Petition is denied. CAs decision is affirmed.
TOPIC: IN CASES OF DOUBTS, SCALES OF
JUSTICE MUST BE IN FAVOR OF THE
EMPLOYEE
HOCHENG
PHILIPPINES
CORPORATION, petitioner, vs. ANTONIO
M.
FARRALES, respondent.
G.R. No. 211497 March 18, 2015
Ponente: REYES, J.
FACTS:
This is a petition for review on certiorari.
May 12, 1998: Antonio M. Farrales was first
employed by HPC as Production Operator,
followed by promotions as:
o Leadman in 2004,
o Acting Assistant Unit Chief in 2007,
and
o Assistant Unit Chief of Production in
2008, a supervisory position with a
monthly salary of P17,600.00.
He was a consistent recipient of citations for
outstanding performance, as well as
appraisal and year-end bonuses.
December 2, 2009: A report reached HPC
management that a motorcycle helmet of an
employee, Reymar Solas (Reymar), was
stolen at the parking lot within its premises
on November 27, 2009.
December 3, 2009: Security Officer
Francisco Paragas III confirmed a video
sequence recorded on closed-circuit
television (CCTV) around 3:00PM on
November 27, 2009 showing Farrales taking
the missing helmet from a parked
motorcycle. Later that day, HPC sent
Farrales a notice to explain his involvement
in the alleged theft.
The investigation was supported by the
employees union, ULO-Hocheng.
Farrales provided an explanation which
stated that
o November 27, 2009:
He
borrowed
a
helmet from his coworker Eric Libutan
(Eric) since they
reside
in
the
same barangay. They
agreed that Eric could
get it at his house or
he could return it the
next time that they
will see each other.
Eric told him that his
motorcycle was black
in color.
ISSUE:
Whether or not Antonio Farrales removal
from office is caused by illegal dismissal for
failure to prove the existence of just cause
on the part of Hocheng Philippines
Corporation.
HELD/RATIO:
YES. To validly dismiss an employee, the
law requires the employer to prove the existence of
any of the valid or authorized causes, which, as
enumerated in Article 282 of the Labor Code, are:
(a)
serious
misconduct
or
willful
disobedience by the employee of the lawful orders
of his employer or the latters representative in
connection with his work;
(b) gross and habitual neglect by the
employee of his duties;
(c) fraud or willful breach by the employee
of the trust reposed in him by his employer or
his duly authorized representative;
(d) commission of a crime or offense by the
employee against the person of his employer
or any immediate member of his family or
his duly authorized representative; and
(e) other causes analogous to the
foregoing.
As a supervisorial employee, Farrales is
admittedly subject to stricter rules of trust and
confidence, and thus pursuant to its management
prerogative HPC enjoys a wider latitude of
discretion to assess his continuing trustworthiness,
than if he were an ordinary rank-and-file
employee. HPC therefore insists that only
substantial proof of Farrales guilt for theft is
needed to establish the just causes to dismiss him,
as the NLRC lengthily asserted in its decision.
CARLOS
THIRD DIVISION
RODOLFO J. SERRANO v. SEVERINO SANTOS
TRANSIT and/or SEVERINO SANTOS
August 9, 2010
G.R. No. 187698
CARPIO MORALES, J.:
Facts:
phrase
should
be
related
with
field
personnel, applying
the
rule
on ejusdem
generis that general and unlimited terms are
restrained and limited by the particular terms that
they follow. Hence, employees engaged on task
or
contract basis
or paid
on
purely commission basis are not automatically
exempted from the grant of service incentive
leave, unless, they fall under the classification
of field personnel.
xxxx
According to Article 82 of the Labor Code, field
personnel shall refer to non-agricultural
employees who regularly perform their duties
away from the principal place of business or
branch office of the employer and whose actual
hours of work in the field cannot be determined
with reasonable certainty. This definition is
further elaborated in the Bureau of Working
Conditions (BWC), Advisory Opinion to Philippine
Technical-Clerical
Commercial
Employees
Association which states that:
As a general rule, [field personnel] are those whose
performance of their job/service is not supervised
by the employer or his representative, the
workplace being away from the principal office and
whose hours and days of work cannot be
determined with reasonable certainty; hence, they
are paid specific amount for rendering specific
service or performing specific work. If required to
be
at
specific
places
at
specific
times, employees including drivers cannot be
said to be field personnel despite the fact that
they are performing work away from the
principal office of the employee.
SECOND DIVISION
AUTO BUS TRANSPORT
vs. ANTONIO BAUTISTA,
May 16, 2005
G.R. No. 156367
CHICO-NAZARIO, J.:
SYSTEMS,
INC
Facts:
Since 24 May 1995, respondent Antonio Bautista
has been employed by petitioner Auto Bus
Transport Systems, Inc. (Autobus), as driverconductor with travel routes Manila-Tuguegarao via
Baguio, Baguio- Tuguegarao via Manila and
Manila-Tabuk via Baguio. Respondent was paid on
commission basis, seven percent (7%) of the total
gross income per travel, on a twice a month basis.
On 03 January 2000, while respondent was driving
Autobus No. 114 along Sta. Fe, Nueva Vizcaya, the
Contreras and Dr. Eric S. Nubla, Maxicares VicePresident for Medical Services, was executed,
effecting the transfer of the former to Maybank
Philippines for a period of four (4) months, from
August 5, 2003 to November 29, 2003, with a
retainer fee of P168.00 per hour.
Dr. Contreras reported to Maybank for one day only
then she filed a complaint before the LA claiming
that she was constructively dismissed.
Maxicare, on the other hand, insisted that there
was no constructive dismissal.
The LA rendered a decision dismissing the
complaint of Dr. Contreras for lack of merit. Upon
appeal, the NLRC rendered a decision reversing
and setting aside the LAs decision. It declared that
Dr. Contreras was illegally dismissed and ordered
her reinstatement to her former or substantially
equivalent position and the payment of her
backwages. The CA affirmed the conclusions
reached by the NLRC.
On the issue regarding the existence or nonexistence of an employer-employee relationship,
the CA ruled that Maxicare could not raise the said
issue for the first time on appeal. Nonetheless, the
CA ruled that the records showed that there existed
an employer-employee relationship between
Maxicare and Dr. Contreras for the following
reasons: 1] Maxicare exercised significant control in
her hiring and the conduct of her work; 2] Maxicare
was the one who engaged her services; 3]
Maxicare determined and prepared her work
assignments, like attending to PNB members
needing medical consultation and performing such
other duties as may be assigned by Maxicare to her
from time to time; 4] Maxicare determined her
specific work schedules, which was for her to
render services from 1:00 to 5:00 oclock in the
afternoon "every Tuesday and Thursday;" and 5]
Maxicare prescribed the conditions of work for her,
which were a) that she had to abide by the
company rules and regulations, b) that she would
keep inviolate all company records, documents,
and properties and from disclosing or reproducing
these records and documents to anyone without
proper authority, c) that she had to surrender upon
request for, or upon termination of her services,
such records, documents, and properties to
Maxicare; d) that Maxicare, through its Customer
Care coordinator, Ms. Cecile Samonte, would
monitor her work; and e) that she was
compensated not according to the result of her
efforts, but according to the amount of time she
spent at the PNB clinic.
The CA added that Maxicare impliedly admitted that
an
employer-employee
relationship
existed
between both parties by arguing that she was not
or
not
employer-employee
Medical
Center
vs
NLRC
Tongko
vs
Manulife
(2008)
Facts: Tongko started his professional relationship
as an agent with an agreement that he is an
independent contractor and theres no employeremployee relationship between the company and
agent. Then he became a unit manager then
branch manger. When Manulife instituted
manpower devt programs, De Dios, President of
Manulife, addressed a letter to Tongko (november)
regarding his latters performance and managerial
skills. As a course of action, he was advised to hire
his own competent assistant and lessen his span of
control. In december, De Dios sent another letter
terminating Tongkos services for failing to align his
directions with the company. Subsequently, Tongko
filed a complaint for illegal dismissal but was
dismissed by Arbiter Padolina for lack of employeremployee relationship
Issue: W/N there is an employer-employee
relationship between petitioner and respondents
Held: Petition granted. There is an employeremployee relationship between Tongko and
Manulife (Please see the highlighted sentences in
Cases Syllabi)
GARIN
Tongko vs Manufacturers G.R. No. 167622 2010
FACTS:
This resolves the Motion for Reconsideration
dated December 3, 2008 filed by respondent
(Manulife) to set aside Decision of November 7,
2008. In the assailed decision, we found that an
employer-employee relationship existed between
Manulife and petitioner Gregorio Tongko and
ordered Manulife to pay Tongko backwages and
separation
pay
for
illegal
dismissal.
The contractual relationship between Tongko and
Manulife had two basic phases.
The first or initial phase, under a Career Agents
Agreement
that
provided:
It is understood and agreed that the Agent is an
independent contractor and nothing contained
herein shall be construed or interpreted as creating
an employer-employee relationship between the
Company
and
the
Agent.
The Agent shall canvass for applications for Life
Insurance, Annuities, Group policies and other
products offered by the Company, and collect, in
company
development
and
growth.
Motion
for
Reconsideration
mischaracterizing
the
divergence
of
conclusions between the CA and the NLRC
decisions as confined only to that on control;
2. Decision contravenes settled rules in contract
law and agency, distorts not only the legal
relationships of agencies to sell but also
distributorship and franchising, and ignores the
constitutional and policy context of contract law
vis--vis
labor
law.
3. Decision ignores the findings of the CA on the
three elements of the four-fold test other than the
control
test
Issue:
Whether or not there is the existence of an
employment relationship.
Held:
Labor Code concept of control has to be
compared and distinguished with the control
that must necessarily exist in a principal-agent
relationship. The principal cannot but also have
his or her say in directing the course of the
principal-agent relationship, especially in cases
where the company-representative relationship
in the insurance industry is an agency.
Generally, the determinative element is the control
exercised over the one rendering service. The
employer controls the employee both in the results
and in the means and manner of achieving this
result. The principal in an agency relationship, on
the other hand, also has the prerogative to exercise
control over the agent in undertaking the assigned
task based on the parameters outlined in the
pertinent
laws.
With particular relevance to the present case is the
provision that In the execution of the agency, the
agent shall act in accordance with the instructions
of the principal This provision is pertinent for
purposes of the necessary control that the principal
exercises over the agent in undertaking the
assigned task, and is an area where the
instructions can intrude into the labor law concept
of control so that minute consideration of the facts
is necessary. A related article is Article 1891 of the
Civil Code which binds the agent to render an
account of his transactions to the principal.
By the Agreements express terms, Tongko served
as an insurance agent for Manulife, not as an
employee. To be sure, the Agreements legal
characterization of the nature of the relationship
conclusion
renders
unnecessary
any
Benares
Vs.
SECOND
[G.R.
No.
Pancho
151827.
G.R.
No.
151827
April
29,
DIVISION
2005]
Facts:
Assailed in this Petition for Review on Certiorar is
the Decision of the Court of Appeals which affirmed
the National Labor Relations Commissions (NLRC)
decision[3] holding that respondents were illegally
dismissed and ordering petitioner to pay
respondents
separation
pay,
backwages,
13th month pay, Cost of Living Allowance (COLA),
emergency relief allowance (ERA), salary
differentials and attorneys fees. The NLRC
reversed the Labor Arbiters finding that
respondents failed to lay down the facts and
circumstances surrounding their dismissal and to
prove their entitlement to monetary awards. [
Complainants alleged to have started working as
sugar farm workers on various dates, to wit:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Jaime
Pancho
November
15,
Rodolfo Pancho, Jr. February 1,
Joselito Medalla November 15,
Paquito Magallanes March 10,
Felomino Magallanes November 15,
Alicia Magallanes January 15,
Evelyn Magallanes January 1,
Violeta Villacampa December 1,
Maritess Pancho December 15,
Rogelio Pancho December 1,
Arnolfo
Pancho
February
1,
1964
1975
1964
1973
1964
1964
1974
1979
1985
1979
1975
Issues:
whether
respondents
are
regular
employees of Hacienda Maasin and thus entitled to
their monetary claims. Related to this is the issue of
whether respondents were illegally terminated
Held:
This case presents a good opportunity to reiterate
the Courts rulings on the subject of seasonal
employment. The Labor Code defines regular and
casual
employment,
viz:
Art.
280.
REGULAR
AND
CASUAL
EMPLOYMENT. The provisions of written
agreement to the contrary notwithstanding and
regardless of the oral agreement of the parties, an
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.
An employment shall be deemed to be casual if it is
not covered by the preceding paragraph: Provided,
That, any employee who has rendered at least one
year of service, whether such service is continuous
or broken, shall be considered a regular employee
with respect to the activity in which he is employed
and his employment shall continue while such
activity
exists.
ORDERED.
VS
31,
NLRC
2006
FACTS:
As Acting Manager, petitioner was assigned
to handle recruitment of all employees and perform
management administration functions; represent
the company in all dealings with government
agencies, especially with the Bureau of Internal
Revenue (BIR), Social Security System (SSS) and
in the city government of Makati; and to administer
all other matters pertaining to the operation of
Kasei Restaurant which is owned and operated by
Kasei
Corporation.
petitioner
was
illegally
dismissed
HELD:
We held in Sevilla v. Court of Appeals[18] that in
this jurisdiction, there has been no uniform test to
determine the existence of an employer-employee
relation. Generally, courts have relied on the socalled right of control test where the person for
whom the services are performed reserves a right
to control not only the end to be achieved but also
the means to be used in reaching such end. In
addition to the standard of right-of-control, the
existing economic conditions prevailing between
the parties, like the inclusion of the employee in the
payrolls, can help in determining the existence of
an
employer-employee
relationship.
However, in certain cases the control test is not
sufficient to give a complete picture of the
relationship between the parties, owing to the
complexity of such a relationship where several
positions have been held by the worker. There are
instances when, aside from the employers power to
WON
employer-employee
relationship
Bustamante would
of P10,000.00.
make
downpayment
which
was
REPANCOL
Letran Calamba Faculty v. NLRCGR No. 156225
FACTS:
In 1992, the Letran Calamba Faculty and
Employees Association filed with the NLRC a
complaint against Colegio de San Juan de Letran,
Calamba for collection of various monetary claims
due to its members. In 1994, the Association held a
strike. The Labor Arbiter dismissed the
Associations money claims, and also dismissed
Letrans petition to declare the strike illegal. The
NLRC affirmed the Labor Arbiter on appeal. The CA
also affirmed the NLRC
ISSUE:
1. W/N the CA can review the factual findings
and legal conclusions of the NLRC in
a special civil action for certiorari.
2. W/N a teachers overload pay should be
considered in the computation of his or
her 13th month pay.
HELD:
NO. The Court finds no error in the ruling of the CA
that since nowhere in the petition is there any
acceptable demonstration that the LA or the NLRC
acted either with grave abuse of discretion or
without or in excess of its jurisdiction, the appellate
court has no reason to look into the correctness of
RATIONALE:
The appellate courts jurisdiction to review a
decision of the NLRC in a petition for certiorari is
confined to issues of jurisdiction or grave abuse
of discretion. An extraordinary remedy, a petition for
certiorari is available only and restrictively in truly
exceptional cases. The sole office of the writ of
certiorari is the correction of errors of jurisdiction
including the commission of grave abuse of
discretion amounting to lack or excess of
jurisdiction. The writ of certiorari does not include
correction of the NLRCs evaluation of the evidence
or of its factual findings. Such findings are generally
accorded not only respect but also finality. A party
assailing such findings bears the burden of showing
that the tribunal acted capriciously and whimsically
or in total disregard of evidence material to the
controversy, in order that the extraordinary writ of
certiorari will lie .Settled is the rule that the findings
of the LA, when affirmed by the NLRC and the CA,
are binding on the Supreme Court, unless patently
erroneous. The Supreme Court is not a trier of
facts, and this applies with greater force in labor
cases. Findings of fact of administrative agencies
and quasi-judicial bodies, which have acquired
expertise because their jurisdiction is confined to
specific matters, are generally accorded not only
great respect but even finality. Basic wage means
all remuneration or earnings paid by an employer to
a worker for services rendered on normal working
days and hours but does not include cost of living
allowances, 13th month pay or other monetary
FACTS
Respondent
was
terminated
from
employment, gave him his two-day salary
and a termination letter.
ISSUES
1. W/N there was just cause to terminate the
employment of respondent
2. W/N due process
dismissal process
was observed in
the
RULING
Due process:
requirement
twin
notice
and
hearing
FACTS:
Petitioner was the Assistant Branch Manager of the
BPI Ayala Avenue Branch in Makati City, and she
was in charge of the Trading Section. After 13 years
of continuous service, respondent terminated
petitioner on grounds of gross negligence and
breach
of trust. Petitioners dismissal was brought about
by the fraud perpetrated against three depositors in
respondents Ayala Avenue Branch.
She asserted that she followed the bank
procedure/policy on pre-termination of accounts,
opening of transitory accounts and reactivation of
dormant accounts. She explained that upon
verifying the authenticity of the signatures of
the depositors involved, she approved the withdraw
als from certain accounts of these clients.
The Labor Arbiter held that petitioner cannot be
considered a managerial employee, and that her
dismissal
on
grounds
of gross negligence and breach of trust was unjustif
ied. But this was reversed by the NLRC.
ISSUE:
Whether or not dismissal on the ground of loss of c
onfidence requires proof beyond reasonable doubt.
RULING:
No. Respondent dismissed petitioner from her
employment on grounds of gross negligence and
breach of trust reposed on her by respondent under
Article 282(b) and (c) of the Labor Code. Gross
negligence connotes want or absence of or failure
to exercise slight care or diligence, or the entire
absence of care. It evinces a thoughtless disregard
of consequences without exerting any effort to
avoid them. On the other hand, the basic premise
for dismissal on the ground of loss of confidence is
that the employees concerned hold a position of
trust and confidence. It is the breach of this trust
that results in the employers loss of confidence in
the employee. Petitioner holds a managerial status
since she is tasked to act in the interest of her
employer
as
she
exercises
independent
judgment when she approves pre-termination of US
D CDs or the withdrawal of deposits.
Petitioner was remiss in the performance of her
duty to approve the pre-termination of certificates of
deposits by legitimate depositors or their dulyauthorized representatives, resulting in prejudice to
the bank, which reimbursed the monetary loss
suffered by the affected clients. Hence, respondent
G.R.
FACTS:
Respondent employees Elicerio Gaspar (Elicerio),
Ricardo Gaspar, Jr. (Ricardo), Eufemia Rosete
(Eufemia), Fidel Espiritu (Fidel), Simeon Espiritu,
Jr. (Simeon, Jr.), and Liberato Mangoba (Liberato)
were employees of Small and Medium Enterprise
Bank, Incorporated (SME Bank).Originally, the
principal shareholders and corporate directors of
the bank were Eduardo M. Agustin, Jr. (Agustin)
and Peregrin de Guzman, Jr. (De Guzman).
SME Bank experienced financial difficulties. To
remedy the situation, the bank officials proposed its
sale
to
Samson.
Accordingly,
negotiations
ensued,
Letter
Agreements were sent to Agustin and De Guzman,
conditioning that it shall guarantee the peaceful
turnover of all assets as well as the peaceful
transition of management of the bank and shall
terminate/retire the employees mutually agreed
upon, upon transfer of shares in favor of groups
nominees; and all retirement benefits, if any of the
above officers/stockholders/board of directors are
hereby waived upon consummation of the above
sale. The retirement benefits of the rank and file
employees including the managers shall be
honored by the new management. Thereafter, the
Letter
Agreement
was
accepted.
Simeon Espiritu (Espiritu), then the general
manager of SME Bank, held a meeting with all the
employees and persuaded them to tender their
resignations, with the promise that they would be
rehired upon reapplication. His directive was
allegedly done at the behest of petitioner Olga
Samson.
ISSUE:
W/N the respondents were illegally dismissed.
HELD
The decision of the Court of Appeals is
overruled.
LABOR LAW
Here, the records show that Elicerio, Ricardo, Fidel,
and Liberato only tendered resignation letters
because they were led to believe that, upon
reapplication, they would be reemployed by the
new management. As it turned out, except for
Simeon, Jr., they were not rehired by the new
management. Their reliance on the representation
that they would be reemployed gives credence to
their argument that they merely submitted courtesy
resignation letters because it was demanded of
them, and that they had no real intention of leaving
their posts. We therefore conclude that Elicerio,
Ricardo, Fidel, and Liberato did not voluntarily
resign from their work; rather, they were terminated
from their employment.
LABOR LAW
The law permits an employer to dismiss its
employees in the event of closure of the business
establishment. However, the employer is required
to serve written notices on the worker and the
Department of Labor at least one month before the
intended date of closure. Moreover, the dismissed
employees are entitled to separation pay, except if
the closure was due to serious business losses or
financial reverses. However, to be exempt from
making such payment, the employer must justify
the closure by presenting convincing evidence that
it actually suffered serious financial reverses. Indino
v. NLRC, 258 Phil. 792, 799 (1989).
LABOR LAW
Petitioner bank also argues that, there being a
transfer of the business establishment, the innocent
transferees no longer have any obligation to
continue employing respondent employees, and
that the most that they can do is to give preference
to the qualified separated employees; hence, the
employees
were
validly
dismissed.
The argument is misleading and unmeritorious.
Contrary to petitioner banks argument, there was
no transfer of the business establishment to speak
of, but merely a change in the new majority
shareholders
of
the
corporation.
There are two types of corporate acquisitions: asset
sales and stock sales. In asset sales, the corporate
entity sells all or substantially all of its assets to
another entity. In stock sales, the individual or
corporate shareholders sell a controlling block of
stock to new or existing shareholders.
ROXAS
LRT-A VS. PILI et. al
June 8, 2016
FACTS:
In contrast with asset sales, in which the assets of
the selling corporation are transferred to another
entity, the transaction in stock sales takes place at
the shareholder level. Because the corporation
possesses a personality separate and distinct from
that of its shareholders, a shift in the composition of
its shareholders will not affect its existence and
continuity. Thus, notwithstanding the stock sale, the
corporation continues to be the employer of its
people and continues to be liable for the payment
ISSUES:
FACTS:
RULING:
1.) NO. It is evident that Pili and other
respondents are direct hire of Metro and
Metro is only a contractor of the LRTA. And
under the four fold test, LRTA has no direct
supervision to Pili and other respondents.
ISSUE:
1.) Whether or not the petitioners were denied
of due process
RULING:
1.) NO.
The petitioners were given ample
opportunity to present their evidence before
the Regional Director is indisputable. They
were notified of the summary investigations
conducted on March 3, 2004 and April 1,
2004, both of which they failed to attend. To
justify their non-appearance, petitioners
claim they requested a resetting of the April
1, 2004 hearing due to the unavailability of
their counsel.
However, no such
explanation was proffered as to why they
FACTS:
Petitioners Valeroso and Legatona are hired as
account executives tasked to solicit cable for the
respondent. From being direct hires of respondent,
they were transferred to Skill Plus Manpower
Services sans any agreement for their transfer.
They were also informed that their commissions
would be reduced due to the introduction of prepaid
cards sold to cable subscribers resulting in lower
monthly cable subscriptions. Dismayed, they
notified their manager, Pasta their intention to file a
labor case with the NLRC, which they did on
February 25, 2009. Pasta then informed them that
they will be dropped from the roster of its account
executives, which act, petitioners claimed,
constitutes unfair labor practice. Further, petitioners
claimed that they did not receive 13th month pay for
2006 and were underpaid of such benefit for the
years 2007 and 2008; and that in January 2008,
petitioner Legatona signed a Release and
Quitclaim9 in consideration of the amount of
P25,000.00 as loyalty bonus from respondent.
Respondent, on the other hand, claimed that it did
not terminate the services of petitioners for there
was never an employer-employee relationship to
begin with. The respondent added that the
petitioners were merely hired as contractors under
a Sales Agency Agreement. In 2007, respondents
decided to streamline its operations and instead of
contracting with numerous independent account
executives such as petitioners, respondent
engaged the services of an independent contractor,
Armada Resources & Marketing Solutions, Inc.
under a Sales Agency Agreement. As a result,
petitioners' contracts were terminated but they,
together with other sales account executives, were
referred for transfer to Armada. Petitioners then
became employees of Armada. In 2009,
respondent and Armada again entered into a Sales
Agency Agreement, wherein petitioners were again
tasked to solicit accounts generate sales for
respondent. The Labor Arbiter and CA ruled in
favor of respondents. The NLRC ruled in favor of
the petitioners. Hence, this petition.
ISSUE:
RULING:
ISSUE:
RULING: