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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
July-1996 Jurisprudence                 

  • G.R. No. 116600 July 3, 1996 - PEOPLE OF THE PHIL. v. REYNALDO LANDICHO

  • G.R. No. 119527 July 3, 1996 - EVELYN J. GARCIA v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 121910 July 3, 1996 - NATIONAL WATERWORKS AND SEWERAGE AUTHORITY, ET AL. v. NLRC

  • G.R. Nos. 98121-22 July 5, 1996 - PEOPLE OF THE PHIL. v. ROMEO R. SALAZAR

  • G.R. No. 100629 July 5, 1996 - ENELYN E. PEÑA, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 100699 July 5, 1996 - PEOPLE OF THE PHIL. v. EDGAR C. GUTIERREZ

  • G.R. No. 102377 July 5, 1996 - ALFREDO SAJONAS, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 102998 July 5, 1996 - BA FINANCE CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 105583 July 5, 1996 - PEOPLE OF THE PHIL. v. ELEUTERIO TAMPON

  • G.R. No. 106296 July 5, 1996 - ISABELO T. CRISOSTOMO v. COURT OF APPEALS, ET AL.

  • G.R. No. 106413 July 5, 1996 - REPUBLIC OF THE PHIL. v. TACLOBAN CITY ICE PLANT, ET AL.

  • G.R. No. 107698 July 5, 1996 - GLORIA Z. GARBO v. COURT OF APPEALS, ET AL.

  • G.R. No. 107824 July 5, 1996 - SUPERCLEAN SERVICES CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 109173 July 5, 1996 - CITY OF CEBU v. COURT OF APPEALS, ET AL.

  • G.R. No. 111324 July 5, 1996 - ROMAN CATHOLIC ARCHBISHOP OF MANILA v. COURT OF APPEALS, ET AL.

  • G.R. No. 111549 July 5, 1996 - PEOPLE OF THE PHIL. v. ARTEMIO P. ORTALEZA

  • G.R. Nos. 113178 & 114777 July 5, 1996 - RADIO COMMUNICATIONS OF THE PHIL. v. NLRC, ET AL.

  • G.R. No. 113549 July 5, 1996 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 113827 July 5, 1996 - PHILIPPINE AIRLINES INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 113948 July 5, 1996 - ARMANDO NICOLAS v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 114002 July 5, 1996 - PEOPLE OF THE PHIL. v. ELEUTERIO C. COMPENDIO, JR.

  • G.R. No. 115216 July 5, 1996 - PEOPLE OF THE PHIL. v. DAVID CABILES

  • G.R. No. 115825 July 5, 1996 - FRANKLIN DRILON v. COURT OF APPEALS, ET AL.

  • G.R. No. 116208 July 5, 1996 - PEOPLE OF THE PHIL. v. ESMAEL SALIDO

  • G.R. No. 116693 July 5, 1996 - PURITA DE LA PEÑA, ET AL. v. PEDRO R. DE LA PEÑA, ET AL.

  • G.R. No. 118203 July 5, 1996 - EMILIO A. SALAZAR, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118231 July 5, 1996 - VICTORIA L. BATIQUIN, ET AL. v. COURT OF APPEALS

  • G.R. No. 118284 July 5, 1996 - MAMERTO REFUGIA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118562 July 5, 1996 - ANGLO-KMU v. SAMANA BAY, ET AL.

  • G.R. No. 118691 July 5, 1996 - ALEJANDRO BAYOG, ET AL. v. ANTONIO M. NATINO, ET AL.

  • G.R. Nos. 118712 & 118745 July 5, 1996 - LAND BANK OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 118824 July 5, 1996 - PEOPLE OF THE PHIL. v. ROMEO GARCIA

  • G.R. No. 119069 July 5, 1996 - PEOPLE OF THE PHIL. v. DANILO EXCIJA

  • G.R. No. 119845 July 5, 1996 - ANTONIO M. GARCIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 120949 July 5, 1996 - ARACELI RAMOS FONTANILLA v. PEOPLE OF THE PHIL.

  • G.R. No. 121180 July 5, 1996 - GERARD A. MOSQUERA v. DELIA H. PANGANIBAN, ET AL.

  • G.R. No. 121592 July 5, 1996 - ROLANDO P. DELA TORRE v. COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 122807 July 5, 1996 - ROGELIO P. MENDIOLA v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. RTJ-91-712 July 9, 1996 - BEN D. MARCES, SR. v. PAUL T. ARCANGEL

  • G.R. No. 88189 July 9, 1996 - PEOPLE OF THE PHIL. v. TIBURCIO ABALOS

  • G.R. No. 103922 July 9, 1996 - SANTIAGO LAND DEVELOPMENT COMPANY v. COURT OF APPEALS, ET AL.

  • G.R. No. 104312 July 9, 1996 - PEOPLE OF THE PHIL. v. MARIO CABALLERO

  • G.R. No. 109563 July 9, 1996 - PHILIPPINE NATIONAL BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 114058 July 10, 1996 - PEOPLE OF THE PHIL. v. ZALDY B. FRANCISCO

  • G.R. No. 74495 July 11, 1996 - DUMEZ COMPANY, ET AL. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 80437-38 July 11, 1996 - PEOPLE OF THE PHIL. v. ROBERTO B. ABORDO

  • G.R. Nos. 94376-77 July 11, 1996 - PEOPLE OF THE PHIL. v. ELMER O. BELGA

  • G.R. No. 103174 July 11, 1996 - AMADO B. TEODORO v. COURT OF APPEALS, ET AL.

  • G.R. No. 103968 July 11, 1996 - PEOPLE OF THE PHIL. v. DIMSON M. GARDE

  • G.R. No. 104860 July 11, 1996 - CITYTRUST BANKING CORPORATION v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 106418 July 11, 1996 - DANIEL L. BORBON II, ET AL. v. SERVICEWIDE SPECIALISTS, INC., ET AL.

  • G.R. No. 109156 July 11, 1996 - STOLT-NIELSEN MARINE SERVICES (PHILS.) INC. v. NLRC, ET AL.

  • G.R. No. 110207 July 11, 1996 - FLORENTINO REYES, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 116221 July 11, 1996 - PEOPLE OF THE PHIL. v. ALEJANDRO G. GABRIS

  • Adm. Matter No. P-93-995 July 12, 1996 - ROBERTO JALBUENA v. EGARDO GELLADA, ET AL.

  • G.R. No. 88126 July 12, 1996 - REPUBLIC OF THE PHIL. v. SANDIGANBAYAN, ET AL.

  • G.R. No. 96795 July 12, 1996 - ANTONIO M. CORRAL v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 108926 July 12, 1996 - REPUBLIC OF THE PHIL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 116128 & 116461 July 12, 1996 - ALLIED BANKING CORP. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 121139 July 12, 1996 - ISIDRO B. GARCIA v. COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 88822 July 15, 1996 - PEOPLE OF THE PHIL. v. ALEJANDRO M. TUVILLA

  • G.R. No. 117661 July 15, 1996 - DANIEL VILLANUEVA, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 83437-38 July 17, 1996 - PEOPLE OF THE PHIL. v. WILFREDO R. GUARIN

  • G.R. No. 98458 July 17, 1996 - COCOLAND DEV. CORP. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 102037 July 17, 1996 - MELANIO IMPERIAL v. COURT OF APPEALS, ET AL.

  • G.R. No. 106977 July 17, 1996 - PEOPLE OF THE PHIL. v. AQUILIO ACABO

  • G.R. Nos. 109396-97 July 17, 1996 - PEOPLE OF THE PHIL. v. ROMEO S. OARGA

  • G.R. No. 114795 July 17, 1996 - LUCITA Q. GARCES v. COURT OF APPEALS, ET AL.

  • G.R. No. 116728 July 17, 1996 - PEOPLE OF THE PHIL. v. RODELIO S. CRUZ

  • G.R. No. 120496 July 17, 1996 - FIVE STAR BUS CO., INC., ET AL. v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. MTJ-96-1088 July 19, 1996 - RODOLFO G. v. HERNANDO C. DOMAGTOY

  • G.R. Nos. 70168-69 July 24, 1996 - RAFAEL T. MOLINA, ET AL. v. PEOPLE OF THE PHIL., ET AL.

  • G.R. No. 95940 July 24, 1996 - PANTRANCO NORTH EXPRESS, INC. v. NLRC, ET AL.

  • G.R. No. 108052 July 24, 1996 - PHILIPPINE NATIONAL BANK v. COURT OF APPEALS, ET AL.

  • G.R. No. 110241 July 24, 1996 - ASIA BREWERY, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. Nos. 115008-09 July 24, 1996 - PEOPLE OF THE PHIL. v. DANIEL C. QUIJADA

  • G.R. No. 120043 July 24, 1996 - AMERICAN HOME ASSURANCE CO., ET AL v. NLRC, ET AL.

  • G.R. No. 120099 July 24, 1996 - EDUARDO T. RODRIGUEZ v. COMMISSION ON ELECTIONS, ET AL.

  • G.R. No. 120303 July 24, 1996 - FEDERICO GEMINIANO, ET AL. v. COURT OF APPEALS, ET Al.

  • Adm. Matter No. RTJ-96-1336 July 25, 1996 - JOCELYN TALENS-DABON v. HERMIN E. ARCEO

  • G.R. No. 95223 July 26, 1996 - ALLIED BANKING CORPORATION v. COURT OF APPEALS, ET AL.

  • G.R. No. 105673 July 26, 1996 - PEOPLE OF THE PHIL. v. ANTONIO MAGANA

  • G.R. Nos. 105690-91 July 26, 1996 - PEOPLE OF THE PHIL v. RODOLFO CAGUIOA, SR.

  • G.R. No. 110731 July 26, 1996 - SHOPPERS GAIN SUPERMART, ET AL. v. NLRC, ET AL.

  • G.R. No. 111127 July 26, 1996 - ENGRACIO FABRE, JR., ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 112175 July 26, 1996 - PEOPLE OF THE PHIL. v. RODOLFO DIAZ

  • G.R. Nos. 114280 & 115224 July 26, 1996 - PHILIPPINE AIRLINES, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 115683 July 26, 1996 - DELIA MANUEL v. DAVID ALFECHE, JR., ET AL.

  • G.R. No. 118434 July 26, 1996 - SIXTA C. LIM v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

  • G.R. No. 119225 July 26, 1996 - PEOPLE OF THE PHIL. v. RODRIGO G. ABUTIN

  • G.R. No. 119328 July 26, 1996 - PROVIDENT INT’L. RESOURCES INC. v. COURT OF APPEALS, ET AL.

  • G.R. No. 119673 July 26, 1996 - IGLESIA NI CRISTO (INC.) v. COURT OF APPEALS, ET AL.

  • Adm. Matter No. MTJ-93-783 July 29, 1996 - OFFICE OF THE COURT ADMINISTRATOR v. FILOMENO PASCUAL

  • G.R. Nos. 97556 & 101152 July 29, 1996 - DAMASO S. FLORES v. COURT OF APPEALS, ET AL.

  • G.R. No. 111639 July 29, 1996 - MIDAS TOUCH FOOD CORPORATION v. NLRC, ET AL.

  • G.R. No. 114313 July 29, 1996 - MGG MARINE SERVICES, INC., ET AL. v. NLRC, ET AL.

  • Adm. Matter No. P-95-1148 July 30, 1996 - PEDRO ROQUE, ET AL. v. ZENAIDA GRIMALDO

  • G.R. No. 102557 July 30, 1996 - ALFONSO D. ZAMORA v. COURT OF APPEALS, ET AL.

  • G.R. No. 108028 July 30, 1996 - PEOPLE OF THE PHIL. v. CRISTINA M. HERNANDEZ

  • G.R. No. 116512 July 30, 1996 - PEOPLE OF THE PHIL. v. LEOPOLDO BACANG, ET AL.

  • G.R. No. 116542 July 30, 1996 - HONGKONG AND SHANGHAI BANKING CORP. v. NLRC, ET AL.

  • G.R. No. 118590 July 30, 1996 - D.M. CONSUNJI, INC. v. RAMON S. ESGUERRA, ET AL.

  • G.R. No. 122241 July 30, 1996 - BOARD OF OPTOMETRY, ET AL. v. ANGEL B COLET, ET. AL.

  • G.R. Nos. 111517-19 July 31, 1996 - PEOPLE OF THE PHIL. v. ROGER N. AUSTRIA

  • G.R. No. 112233 July 31, 1996 - COKALIONG SHIPPING LINES v. OMAR U. AMIN

  • G.R. No. 112611 July 31, 1996 - CLARA ATONG VDA. DE PANALIGAN, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 116015 July 31, 1996 - GOVERNMENT SERVICE INSURANCE SYSTEM v. COURT OF APPEALS, ET AL.

  • G.R. No. 119306 July 31, 1996 - PEOPLE OF THE PHIL. v. DANTE BELTRAN

  • G.R. No. 121917 July 31, 1996 - ROBIN CARIÑO PADILLA v. COURT OF APPEALS, ET AL.

  • G.R. No. 122274 July 31, 1996 - SUSAN V. LLENES v. ISAIAS P. DICDICAN, ET AL.

  • G.R. No. 122749 July 31, 1996 - ANTONIO A. S. VALDES v. RTC, BRANCH 102, QUEZON CITY, ET AL.

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    G.R. No. 110241   July 24, 1996 - ASIA BREWERY, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 110241. July 24, 1996.]

    ASIA BREWERY, INC., Petitioner, v. NATIONAL LABOR RELATIONS COMMISSION and ISIDRO OÑATE, ET. AL., Respondents.


    R E S O L U T I O N


    FRANCISCO, J.:


    Petitioner Asia Brewery, Inc. (ABI) entered into a contract with Era Industries (ERA) for the supply of workers to its brewery plant. In compliance therewith, ERA referred for employment some of herein private respondents to petitioner. Upon the termination of its service contract with ERA, the petitioner entered into another service contract, this time with Cabuyao Maintenance and Services, Inc. (CMSI). The contract provides, among other things, the following:jgc:chanrobles.com.ph

    "1. MANPOWER AND SERVICES:chanrob1es virtual 1aw library

    The CONTRACTOR 1 shall provide the CLIENT 2 with his own labor force and personnel whom he shall furnish and/or assign to its CLIENT, specifically at its Beer Division in such number as may be required with the proper tools, materials, implements and gadgets/equipments necessary to meet the needs of the CLIENTS, as far as maintenance, janitorial, utility and relative services and activities are concerned.

    x       x       x


    "3. WARRANTIES AND LIABILITIES:chanrob1es virtual 1aw library

    It is being understood that the workers or personnel to be so engaged are strictly those of the CONTRACTOR and not of the CLIENT, the CONTRACTOR hereby warrants that it shall fully comply with all labor laws, decrees, rules and regulations and the CONTRACTOR hereby relieves the CLIENT from any liability whatsoever in the event any claim, arising under any such law, decree, rule or regulation, is presented/filed.

    x       x       x" 3

    Upon CMSI’s assumption of the contractorship agreement, petitioner instructed private respondents to apply for employment with CMSI. Thereafter, CMSI executed individual employment agreements with private respondents. The agreement required the private respondents, among others, to comply with the petitioner’s rules and regulations and prohibited them from joining strikes staged by the regular employees Thus, private respondents continued to work for petitioner under the auspices of CMSI which allegedly employed and referred them to ABI for janitorial and maintenance services. Other workers were also sent by CMSI to the petitioner as required by the latter, and at present, the former has already placed 400 to 450 workers at ABI. 4

    On July 5, 1991, private respondents filed a complaint against the petitioner for non-payment of overtime pay, legal holiday pay, service incentive leave pay, non-regularization of employment, underpayment of night differential pay and recall of penalties of warning from their 201 files. On July 29, 1991, a supplemental complaint with motion for immediate reinstatement was filed on the ground that private respondents were illegally dismissed. The complaint for illegal dismissal stemmed from private respondents’ non-admission to work when they requested for leave to attend the July 25, 1991 hearing of the original complaint, confiscation by petitioner’s security guard of private respondents’ identification cards and disallowance of their entry into the premises of petitioner. In addition, petitioner informed CMSI that private respondents were "put on hold" until the termination of the case and requested that replacements be furnished. 5

    As for its defense, petitioner denied that it was the employer of private respondents arguing that the warranties and liability clause in the CMSI-ABI service contract specifically provides that CMSI assumed all the liabilities arising from employer-employee relationship. At the hearing with the Labor Arbiter, three issues were presented for resolution, to wit: (1) whether or not private respondents were the employees of petitioner, (2) whether or not they were illegally dismissed, and (3) whether or not private respondents are entitled to their claims. Ruling in favor of private respondents, the Labor Arbiter found that CMSI is a labor-only contractor; thus, for all intents and purposes, private respondents are considered the regular and permanent employees of petitioner and necessarily entitled to their monetary claims. On appeal, the National Labor Relations Commissions (NLRC) affirmed the decision of the Labor Arbiter with the modification that petitioner should be held jointly and severally liable with CMSI. Hence, this petition ascribing the following assignment of errors:jgc:chanrobles.com.ph

    "THAT THE DECISION PROMULGATED BY THE NLRC WAS RENDERED WITH GRAVE ABUSE OF DISCRETION AMOUNTING TO LACK OF JURISDICTION AS THE SAME IS AGAINST THE FACTS AND THE LAW.

    "THE NLRC COMMITTED SERIOUS ERRORS AND MANIFEST MISAPPRECIATION IN ITS FINDINGS OF FACT, WHICH IF NOT CORRECTED WOULD CAUSE GRAVE AND IRREPARABLE INJURY AND DAMAGE TO THE PETITIONER"

    Petitioner contends that both the labor arbiter and the NLRC misappreciated the evidence of the case and grossly erred in finding that an employer-employee relationship exists between ABI and private respondents. The contention is untenable.

    As a rule, the original and exclusive jurisdiction to review a decision or resolution of respondent NLRC does not include a correction of its evaluation of the evidence, but is confined to the issues of jurisdiction or grave abuse of discretion. 6 The Supreme Court is bound by the findings of fact there being no showing that neither the arbiter nor the NLRC gravely abused its discretion or otherwise acted without jurisdiction or in excess of the same. 7 Indeed, the records reveal that the questioned decision is duly supported by evidence. Moreover, the stipulation of facts entered into between the parties, and which petitioner has partly adopted, amply supports the Labor Arbiter and the NLRC’s conclusion that CMSI is a labor-only contractor. There is labor only contracting where: (a) the person supplying workers to an employer does not have substantial capital or investment in the form of tools, equipments, machineries, work premises, among others; and (b) the workers recruited and placed by such person are performing activities which are directly related to the principal business of the employer. 8 Where a labor-only contracting exists, the law implies or establishes an employer-employee relationship between the employer and employee of the labor-only contractor to prevent any violation or circumvention of provisions of the Labor Code. 9

    Addressing the matter of the existence of the above-mentioned conditions, both the Labor Arbiter and the NLRC are in agreement that they are present in the instant case. Thus, the Labor Arbiter declared:jgc:chanrobles.com.ph

    "From the foregoing facts, it is safe to conclude that respondent CMSI is a labor-only contractor because its main business is to supply workers to Asia Brewery, Inc. It has failed to prove that it has substantial capital or investment in the form of tools, equipments, machinery, work premises as required by law. Apart from the foregoing, the workers it recruited (complainants) and assigned at ABI performed activities related to the principal business or operations of ABI. They are assigned to the production department of ABI. Considering therefore that complainants are in law the employees of ABI, they should be regularized and be paid their money claims as hereunder reflected." 10

    In the same wise, respondent NLRC made a similar finding and further supported its conclusion by saying that:jgc:chanrobles.com.ph

    "Likewise, it is particularly noted that Cabuyao Maintenance Services, Inc. has placed 400 to 450 workers at Asia Brewery, Inc. This is quite a considerable workforce and gives rise to the suspicion that the service contract between the contractor and the client was designed to evade the obligations inherent in an employer-employee relationship. . . "11

    ACCORDINGLY, finding no grave abuse of discretion on the part of the NLRC the instant petition is hereby DISMISSED.

    SO ORDERED.

    Narvasa, C.J., Davide, Jr., Melo and Panganiban, JJ., concur.

    Endnotes:



    1. Referring to CMSI.

    2. Referring to ABI.

    3. Service Contract dated February 7, 1991, as quoted in the Resolution dated April 23, 1993; Rollo, p. 16.

    4. Stipulation of Facts per Orders dated August 14 and 22, 1991, as quoted in the Resolution dated April 23, 1993; Rollo, pp. 21-22.

    5. Ibid, at p. 21.

    6. Loadstar Shipping Co., Inc. v. Gallo, 229 SCRA 654.

    7. Wyeth-Suaco Laboratories, Inc. v. NLRC, 219 SCRA 356.

    8. Neri v. NLRC, 224 SCRA 717.

    9. Vallum Security Services v. NLRC, 224 SCRA 781.

    10. Decision dated July 17, 1992; Rollo p. 147.

    11. Resolution dated April 23, 1993; Rollo, p. 31.

    G.R. No. 110241   July 24, 1996 - ASIA BREWERY, INC. v. NATIONAL LABOR RELATIONS COMMISSION, ET AL.


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