1

FRANCISCO V. NLRC (G.R. NO. 170087) substantially the same job functions, that is, rendering accounting
Facts: and tax services to the company and performing functions
Petitioner Angelina Francisco was hired by respondent Kasei necessary and desirable for the proper operation of the corporation
Corporation during its incorporation stage as Accountant and such as securing business permits and other licenses over an
Corporate Secretary and later as Liaison Officer. Subsequently she indefinite period of engagement.
was also designated Acting Manager until replaced, but was Under the broader economic reality test, the petitioner can
assured by the company that she was still connected as Technical likewise be said to be an employee of respondent corporation
Consultant. Thereafter, Kasei Corporation reduced petitioner’s because she had served the company for six years before her
salary until it was later withheld despite repeated follow-ups. dismissal, receiving check vouchers indicating her salaries/wages,
Petitioner once again asked for her salary but was informed that benefits, 13th month pay, bonuses and allowances, as well as
she is no longer connected with the company. Petitioner thus filed deductions and Social Security contributions. Petitioner’s
an action for constructive dismissal before the Labor Arbiter. membership in the SSS as manifested by a copy of the SSS
Respondent Kasei Corporation averred that petitioner is not their specimen signature card which was signed by the President of
employee as she performed her work at her own discretion without Kasei Corporation and the inclusion of her name in the on-line
their control and supervision. Both the Labor Arbiter and NLRC inquiry system of the SSS evinces the existence of an employer-
tribunal found for petitioner. CA reversed the decision. employee relationship between petitioner and respondent
corporation. It is therefore apparent that petitioner is economically
Issue: dependent on respondent corporation for her continued
Whether or not there was employer-employee relationship employment in the latter’s line of business.
between the parties.

Ruling: YES. SONZA vs. ABS-CBN Case Digest

In certain cases the control test is not sufficient to give a complete
picture of the relationship between the parties, owing to the Facts: In May 1994, ABS-CBN signed an agreement with the Mel
complexity of such a relationship where several positions have and Jay Management and Development Corporation (MJMDC).
been held by the worker. The better approach would therefore be ABS-CBN was represented by its corporate officers while
to adopt a two-tiered test involving: (1) the putative employer’s MJMDC was represented by Sonza, as President and general
power to control the employee with respect to the means and manager, and Tiangco as its EVP and treasurer. Referred to in the
methods by which the work is to be accomplished; and (2) the agreement as agent, MJMDC agreed to provide Sonza’s services
underlying economic realities of the activity or relationship. exclusively to ABS-CBN as talent for radio and television. ABS-
By applying the control test, there is no doubt that petitioner is an CBN agreed to pay Sonza a monthly talent fee of P310, 000 for
employee of Kasei Corporation because she was under the direct the first year and P317, 000 for the second and third year.
control and supervision of Seiji Kamura, the corporation’s
Technical Consultant. She reported for work regularly and served On April 1996, Sonza wrote a letter to ABS-CBN where he
in various capacities as Accountant, Liaison Officer, Technical irrevocably resigned in view of the recent events concerning his
Consultant, Acting Manager and Corporate Secretary, with program and career. After the said letter, Sonza filed with the
 2

Department of Labor and Employment a complaint alleging that

ABS-CBN did not pay his salaries, separation pay, service The control test is the most important test our courts apply in
incentive pay,13th month pay, signing bonus, travel allowance and distinguishing an employee from an independent contractor. This
amounts under the Employees Stock Option Plan (ESOP). ABS- test is based on the extent of control the hirer exercises over a
CBN contended that no employee-employer relationship existed worker. The greater the supervision and control the hirer exercises,
between the parties. However, ABS-CBN continued to remit the more likely the worker is deemed an employee. The converse
Sonza’s monthly talent fees but opened another account for the holds true as well – the less control the hirer exercises, the more
same purpose. likely the worker is considered an independent contractor. To
perform his work, SONZA only needed his skills and talent. How
The Labor Arbiter dismissed the complaint and found that there is SONZA delivered his lines, appeared on television, and sounded
no employee-employer relationship. NLRC affirmed the decision on radio were outside ABS-CBN’s control. ABS-CBN did not
of the Labor Arbiter. CA also affirmed the decision of NLRC. instruct SONZA how to perform his job. ABS-CBN merely
reserved the right to modify the program format and airtime
Issue: Whether or not there was employer-employee relationship schedule "for more effective programming." ABS-CBN’s sole
between the parties. concern was the quality of the shows and their standing in the
ratings.
Ruling: Case law has consistently held that the elements of an
employee-employer relationship are selection and engagement of Clearly, ABS-CBN did not exercise control over the means and
the employee, the payment of wages, the power of dismissal and methods of performance of Sonza’s work. A radio broadcast
the employer’s power to control the employee on the means and specialist who works under minimal supervision is an independent
methods by which the work is accomplished. The last element, the contractor. Sonza’s work as television and radio program host
so-called "control test", is the most important element. required special skills and talent, which SONZA admittedly
possesses.
Sonza’s services to co-host its television and radio programs are
because of his peculiar talents, skills and celebrity status. ABS-CBN claims that there exists a prevailing practice in the
Independent contractors often present themselves to possess broadcast and entertainment industries to treat talents like Sonza
unique skills, expertise or talent to distinguish them from ordinary as independent contractors. The right of labor to security of tenure
employees. The specific selection and hiring of SONZA, because as guaranteed in the Constitution arises only if there is an
of his unique skills, talent and celebrity status not possessed by employer-employee relationship under labor laws. Individuals
ordinary employees, is a circumstance indicative, but not with special skills, expertise or talent enjoy the freedom to offer
conclusive, of an independent contractual relationship. All the their services as independent contractors. The right to life and
talent fees and benefits paid to SONZA were the result of livelihood guarantees this freedom to contract as independent
negotiations that led to the Agreement. For violation of any contractors. The right of labor to security of tenure cannot operate
provision of the Agreement, either party may terminate their to deprive an individual, possessed with special skills, expertise
relationship. Applying the control test to the present case, we find and talent, of his right to contract as an independent contractor.
that SONZA is not an employee but an independent contractor.
 3

view that a pakyaw-basis arrangement did not preclude the

BITOY JAVIER (DANILO P. JAVIER), Petitioner, v. FLY existence of employer-employee relationship. Payment by result x
ACE CORPORATION and FLORDELYN CASTILLO, x x is a method of compensation and does not define the essence
Respondents. of the relation. It is a mere method of computing compensation,
not a basis for determining the existence or absence of an
FACTS: Javier an employee of Fly Ace performing various work employer-employee relationship. The NLRC further averred that
for the latter filed a complaint before the NLRC for underpayment it did not follow that a worker was a job contractor and not an
of salaries and other labor standard benefits. employee, just because the work he was doing was not directly
He alleged that he reported for work from Monday to Saturday related to the employers trade or business or the work may be
from 7:00 oclock in the morning to 5:00 oclock in the afternoon; considered as extra helper as in this case; and that the relationship
that during his employment, he was not issued an identification of an employer and an employee was determined by law and the
card and pay slips by the company; that he reported for work but same would prevail whatever the parties may call it. Finding Javier
he was no longer allowed to enter the company premises by the to be a regular employee, the NLRC ruled that he was entitled to a
security guard upon the instruction of Ruben Ong (Mr. Ong), his security of tenure. For failing to present proof of a valid cause for
superior; that after several minutes of begging to the guard to allow his termination, Fly Ace was found to be liable for illegal dismissal
him to enter, he saw Ong whom he approached and asked why he of Javier who was likewise entitled to backwages and separation
was being barred from entering the premises; that Ong replied by pay in lieu of reinstatement. However, on appeal, CA reversed the
saying, Tanungin mo anak mo;that he discovered that Ong had ruling of NLRC
been courting his daughter Annalyn after the two met at a fiesta
celebration in Malabon City; that Annalyn tried to talk to Ong and The CA ruled thatJaviers failure to present salary vouchers,
convince him to spare her father from trouble but he refused to payslips, or other pieces of evidence to bolster his contention,
accede; that thereafter, Javier was terminated from his pointed to the inescapable conclusion that he was not an employee
employment without notice; and that he was neither given the of Fly Ace. Further, it found that Javiers work was not necessary
opportunity to refute the cause/s of his dismissal from work. and desirable to the business or trade of the company, as it was
only when there were scheduled deliveries, which a regular
For its part p, Fly Ace denied the existence of employer-employee hauling service could not deliver, that Fly Ace would contract the
relationship between them and Javier as the latter was only called services of Javier as an extra helper. Lastly, the CA declared that
roughly 5 to 6 times only in a month whenever the vehicle of its the facts alleged by Javier did not pass the control test.
contracted hauler, Milmar Hauling Services, was not available.
Labor Arbiter dismissed the complaint ruling that respondent Fly He contracted work outside the company premises; he was not
Ace is not engaged in trucking business but in the importation and required to observe definite hours of work; he was not required to
sales of groceries. Since there is a regular hauler to deliver its report daily; and he was free to accept other work elsewhere as
products, we give credence to Respondents claim that complainant there was no exclusivity of his contracted service to the company,
was contracted on pakiao basis. the same being co-terminous with the trip only. Since no
substantial evidence was presented to establish an employer-
On appeal, NLRC reversed the decisin of the LA. It was of the employee relationship, the case for illegal dismissal could not
 4

prosper. Hence, this appeal. While Javier remains firm in his position that as an employed
stevedore of Fly Ace, he was made to work in the company
ISSUE: premises during weekdays arranging and cleaning grocery items
for delivery to clients, no other proof was submitted to fortify his
Does an employer-employee relationship exist between Javier claim. The lone affidavit executed by one Bengie Valenzuela was
and Fly Ace, thereby holding the latter guilty of illegal unsuccessful in strengthening Javiers cause.
dismissal?
HELD: As the records bear out, the LA and the CA found Javiers The Court is of the considerable view that on Javier lies the burden
claim of employment with Fly Ace as wanting and deficient. The to pass the well-settled tests to determine the existence of an
Court is constrained to agree. Labor officials are enjoined to use employer-employee relationship, viz: (1) the selection and
reasonable means to ascertain the facts speedily and objectively engagement of the employee; (2) the payment of wages; (3) the
with little regard to technicalities or formalities but nowhere in the power of dismissal; and (4) the power to control the employees
rules are they provided a license to completely discount evidence, conduct. Of these elements, the most important criterion is
or the lack of it. The quantum of proof required, however, must whether the employer controls or has reserved the right to control
still be satisfied. Hence, when confronted with conflicting versions the employee not only as to the result of the work but also as to the
on factual matters, it is for them in the exercise of discretion to means and methods by which the result is to be accomplished.
determine which party deserves credence on the basis of evidence DENIED
received, subject only to the requirement that their decision must
be supported by substantial evidence.Accordingly, the petitioner
needs to show by substantial evidence that he was indeed an
employee of the company against which he claims illegal SMCEU v Judge Bersamina
dismissal.
Before the Court is an appeal from the Decision of RTC Branch
In sum, the rule of thumb remains: the onus probandi falls on 166 of Pasig where the petitioners’ plea is that the Writ of
petitioner to establish or substantiate such claim by the requisite Preliminary Injunction was issued without or in excess of
quantum of evidence. Whoever claims entitlement to the benefits jurisdiction and with grave abuse of discretion, a labor dispute
provided by law should establish his or her right thereto x x x. being involved.
Sadly, Javier failed to adduce substantial evidence as basis for the
grant of relief. FACTS

By way of evidence on this point, all that Javier presented were his San Miguel Corporation entered into contracts for merchandising
self-serving statements purportedly showing his activities as an services with Lipercon and D’Rite companies, both independent
employee of Fly Ace. Clearly, Javier failed to pass the contractors duly licensed by DOLE, to maintain its competitive
substantiality requirement to support his claim. Hence, the Court position, and in keeping with the imperatives of efficiency,
sees no reason to depart from the findings of the CA. business expansion and diversity of operation. In the contracts, it
was expressly agreed that the workers employed by the contractors
 5

were not to be deemed employees or agents of San Miguel. Thus, A labor dispute includes any controversy or matter concerning
no employer-employee relationship. terms and conditions of employment or the association or
representation of persons in negotiating, fixing, maintaining,
Later on, San Miguel executed a CBA which specifically provides changing, or arranging the terms and conditions or employment,
that “temporary, probationary, or contract employees and workers regardless of whether the disputants stand in the proximate relation
are excluded from the bargaining unit and therefore, outside the of employer and employee.
scope of this Agreement.” What the Union seeks is to regularize the status of the employees
contracted by Liparcon and D’Rite and that they be absorbed into
The Union, petitioner, advised San Miguel that some of the the working unit of San Miguel. In this wise, the matter dwells on
workers of Lipercon and D’Rite had signed up for union the working relationship between the said employees and San
membership and sought regularization. The Union alleged that Miguel. Terms, tenure and conditions of their employment and the
some the workers have been continuously working for San Miguel arrangement of those terms are thus involved bringing the matter
for a period ranging from 6 months to 15 years, and that the nature within the purview of a labor dispute. Further, the Union also seeks
of their work is neither casual nor seasonal. to represent the workers, who have signed for union membership,
for the purpose of collecting bargaining. Obvious then is that
Strikes were held and a series of pickets were held for the reason representation and association, for the purpose of negotiating the
that the Union failed to receive any favourable response from San conditions of employment are also involved. In fact, the injunction
Miguel. Thereafter, San Miguel filed a complaint for Injunction sought by San Miguel was precisely also to prevent such
and Damages before the RTC of Pasig to enjoin the Union to representation. Again, the matter of representation falls squarely
prevent the peaceful and normal operations of the former. The within the ambit of a labor dispute.
Union filed a Motion to Dismiss but was subsequently denied by As the case is indisputably linked with a labor dispute, jurisdiction
the RTC reasoning that the absence of employer-employee belongs to labor tribunals.
relationship negates the existence of labor dispute. Thus, the RTC SUPREME COURT RULING
issued Orders enjoining the Union from commiting acts that
disrupt the operations of San Miguel. WHEREFORE, the Writ of Certiorari is GRANTED. The Orders
of the Regional Trial Court of Pasig is SET ASIDE.
ISSUE/s of the CASE
Whether or not there is a labor dispute between San Miguel and
the Union?
Locsin vs. PLDT GR No. 185251, October 2, 2009
ACTION OF THE COURT Facts: On November 1, 1990, respondent Philippine Long
SC: The decision of the RTC is SET ASIDE. Distance Telephone Company (PLDT) and the Security and Safety
Corporation of the Philippines (SSCP) entered into a Security
COURT RATIONALE ON THE ABOVE CASE Services Agreement (Agreement) whereby SSCP would provide
armed security guards to PLDT to be assigned to its various
offices. Pursuant to such agreement, petitioners Raul Locsin and
 6

Eddie Tomaquin, among other security guards, were posted at a situation makes no sense, and the denials proffered by respondent
PLDT office. On August 30, 2001, respondent issued a Letter do not shed any light to the situation. It is but reasonable to
dated August 30, 2001 terminating the Agreement effective conclude that, with the behest and, presumably, directive of
October 1, 2001. Despite the termination of the Agreement, respondent, petitioners continued with their services. Evidently,
however, petitioners continued to secure the premises of their such are indicia of control that respondent exercised over
assigned office. They were allegedly directed to remain at their petitioners. Evidently, respondent having the power of control
post by representatives of respondent. In support of their over petitioners must be considered as petitioners’ employer––
contention, petitioners provided the Labor Arbiter with copies of from the termination of the Agreement onwards––as this was the
petitioner Locsin’s pay slips for the period of January to only time that any evidence of control was exhibited by respondent
September 2002. Then, on September 30, 2002, petitioners’ over petitioners and in light of our ruling in Abella. Thus, as aptly
services were terminated. Thus, petitioners filed a complaint declared by the NLRC, petitioners were entitled to the rights and
before the Labor Arbiter for illegal dismissal and recovery of benefits of employees of respondent, including due process
money claims such as overtime pay, holiday pay, premium pay for requirements in the termination of their services. Both the Labor
holiday and rest day, service incentive leave pay, Emergency Cost Arbiter and NLRC found that respondent did not observe such due
of Living Allowance, and moral and exemplary damages against process requirements. Having failed to do so, respondent is guilty
PLDT. The Labor Arbiter rendered a Decision finding PLDT of illegal dismissal.
liable for illegal dismissal. It was explained in the Decision that
petitioners were found to be employees of PLDT and not of SSCP. PEOPLE'S BROADCASTING SERVICE (BOMBO RADYO
Such conclusion was arrived at with the factual finding that PHILS., INC.), Petitioner, vs.THE SECRETARY OF THE
petitioners continued to serve as guards of PLDT’s offices. As DEPARTMENT OF LABOR AND EMPLOYMENT, THE
such employees, petitioners were entitled to substantive and REGIONAL DIRECTOR, DOLE REGION VII, and
procedural due process before termination of employment. JANDELEON JUEZAN, Respondents.
G.R. No. 179652; March 6, 2012
Issue: Is there employer-employee relationship? Justice VELASCO, JR.; EN BANC

Ruling: Yes. From the foregoing circumstances, reason dictates FACTS:

that we conclude that petitioners remained at their post under the
instructions of respondent. We can further conclude that Private respondent Jandeleon Juezan filed a complaint
respondent dictated upon petitioners that the latter perform their against petitioner with the Department of Labor and Employment
regular duties to secure the premises during operating hours. This, (DOLE) Regional Office No. VII, Cebu City, for illegal deduction,
to our mind and under the circumstances, is sufficient to establish nonpayment of service incentive leave, 13th month pay, premium
the existence of an employer-employee relationship. To pay for holiday and rest day and illegal diminution of benefits,
reiterate, while respondent and SSCP no longer had any legal delayed payment of wages and noncoverage of SSS, PAG-IBIG
relationship with the termination of the Agreement, petitioners and Philhealth. The DOLE Regional Director found that private
remained at their post securing the premises of respondent while respondent was an employee of petitioner, and was entitled to his
receiving their salaries, allegedly from SSCP. Clearly, such a
 7

money claims. The Acting DOLE Secretary dismissed petitioner’s review, not by the NLRC. If a complaint is brought before the
appeal on technical grounds. The CA held that DOLE Secretary DOLE to give effect to the labor standards provisions of the Labor
had jurisdiction over the matter, as the jurisdictional limitation Code or other labor legislation, and there is a finding by the DOLE
imposed by Article 129 of the Labor Code on the power of the that there is an existing employer-employee relationship, the
DOLE Secretary under Art. 128(b) had been repealed by R.A. DOLE exercises jurisdiction to the exclusion of the NLRC. If the
7730. DOLE finds that there is no employer-employee relationship, the
The Supreme Court reversed and set aside the decision of jurisdiction is properly with the NLRC. If a complaint is filed with
CA, and dismissed the complaint against petitioner. The Court the DOLE, and it is accompanied by a claim for reinstatement, the
found that there was no employer-employee relationship between jurisdiction is properly with the Labor Arbiter, under Art. 217(3)
petitioner and private respondent. It was held that while the DOLE of the Labor Code, which provides that the Labor Arbiter has
may make a determination of the existence of an employer- original and exclusive jurisdiction over those cases involving
employee relationship, this function could not be co-extensive wages, rates of pay, hours of work, and other terms and conditions
with the visitorial and enforcement power provided in Art. 128(b) of employment, if accompanied by a claim for reinstatement.
of the Labor Code, as amended by RA 7730. The NLRC is the In the present case, the finding of the DOLE Regional
primary agency in determining the existence of an employer- Director that there was an employer-employee relationship has
employee relationship. been subjected to review by the Supreme Court, with the finding
The Public Attorney’s Office sought clarification as to being that there was no employer-employee relationship between
when the visitorial and enforcement power of the DOLE be not petitioner and private respondent, based on the evidence
considered as co-extensive with the power to determine the presented. The DOLE had no jurisdiction over the case, as there
existence of an employer-employee relationship. The DOLE was no employer-employee relationship present. Thus, the
sought clarification as well, as to the extent of its visitorial and dismissal of the complaint against petitioner is proper.
enforcement power under the Labor Code, as amended.
Ymbong vs. ABS-CBN
ISSUE: Is DOLE empowered to determine the existence of G.R. No. 184885
employer-employee relationship?
Facts: Petitioner Ernesto G. Ymbong started working for ABS-
LAW: Article 128, 129, 217 of the Labor Code as amended by CBN Broadcasting Corporation (ABS-CBN) in 1993 at its
R.A. 7730. regional station in Cebu as a television talent, co-anchoring Hoy
Gising and TV Patrol Cebu. His stint in ABS-CBN later extended
to radio when ABS-CBN Cebu launched its AM station DYAB in
RULING: Under Art. 128(b) of the Labor Code, as amended by 1995 where he worked as drama and voice talent, spinner,
RA 7730, the DOLE is fully empowered to make a determination scriptwriter and public affairs program anchor.
as to the existence of an employer-employee relationship in the
exercise of its visitorial and enforcement power, subject to judicial
 8

Like Ymbong, Leandro Patalinghug also worked for ABS-CBN Please be informed that per company policy, any employee/talent
Cebu. Starting 1995, he worked as talent, director and scriptwriter who wants to run for any position in the coming election will
for various radio programs aired over DYAB. have to file a leave of absence the moment he/she files his/her
certificate of candidacy.
On January 1, 1996, the ABS-CBN Head Office in Manila issued The services rendered by the concerned employee/talent to this
Policy No. HR-ER-016 or the “Policy on Employees Seeking company will then be temporarily suspended for the entire
Public Office.” The pertinent portions read: campaign/election period.

1. Any employee who intends to run for any public For strict compliance.
office position, must file his/her letter of resignation, at least
thirty (30) days prior to the official filing of the certificate of After the issuance of the March 25, 1998 Memorandum, Ymbong
candidacy either for national or local election. got in touch with Luzon. Luzon claims that Ymbong approached
xxxx him and told him that he would leave radio for a couple of months
because he will campaign for the administration ticket. It was
3. Further, any employee who intends to join a political only after the elections that they found out that Ymbong actually
group/party or even with no political affiliation but who ran for public office himself at the eleventh hour. Ymbong, on the
intends to openly and aggressively campaign for a candidate other hand, claims that in accordance with the March 25, 1998
or group of candidates (e.g. publicly speaking/endorsing Memorandum, he informed Luzon through a letter that he would
candidate, recruiting campaign workers, etc.) must file a request take a few months leave of absence from March 8, 1998 to May
for leave of absence subject to management’s approval. For 18, 1998 since he was running for councilor of Lapu-Lapu City.
this particular reason, the employee should file the leave request
at least thirty (30) days prior to the start of the planned leave As regards Patalinghug, Patalinghug approached Luzon and
period. advised him that he will run as councilor for
x x x x [Emphasis and underscoring supplied.] Naga, Cebu. According to Luzon, he clarified to Patalinghug that
he will be considered resigned and not just on leave once he files
Because of the impending May 1998 elections and based on his a certificate of candidacy.
immediate recollection of the policy at that time, Dante Luzon,
Assistant Station Manager of DYAB issued the following Later, Ymbong and Patalinghug both tried to come back to ABS-
memorandum: CBN Cebu. According to Luzon, he informed them that they
TO : ALL CONCERNED cannot work there anymore because of company policy. This was
FROM : DANTE LUZON stressed even in subsequent meetings and they were told that the
DATE : MARCH 25, 1998 company was not allowing any exceptions. ABS-CBN, however,
SUBJECT : AS STATED agreed out of pure liberality to give them a chance to wind up their
participation in the radio drama, Nagbabagang Langit, since it was
 9

rating well and to avoid an abrupt ending. The agreed winding- special laws or under valid agreements, this Court will uphold
up, however, dragged on for so long prompting Luzon to issue to them. In the instant case, ABS-CBN validly justified the
Ymbong the memorandum dated September 14, 1998 implementation of Policy No. HR-ER-016. It is well within its
automatically terminating them. rights to ensure that it maintains its objectivity and credibility and
freeing itself from any appearance of impartiality so that the
Issue: confidence of the viewing and listening public in it will not be in
1. whether Policy No. HR-ER-016 is valid any way eroded. Even as the law is solicitous of the welfare of the
2. whether the March 25, 1998 Memorandum issued by Luzon employees, it must also protect the right of an employer to exercise
superseded Policy No. HR-ER-016 what are clearly management prerogatives. The free will of
3. whether Ymbong, by seeking an elective post, is deemed to have management to conduct its own business affairs to achieve its
resigned and not dismissed by ABS-CBN. purpose cannot be denied.

Held: It is worth noting that such exercise of management prerogative

1. ABS-CBN had a valid justification for Policy No. HR- has earned a stamp of approval from no less than our Congress
ER-016. Its rationale is embodied in the policy itself, to wit: itself when on February 12, 2001, it enacted Republic Act No.
Rationale: 9006, otherwise known as the “Fair Election Act.” Section 6.6
ABS-CBN BROADCASTING CORPORATION strongly thereof reads:
believes that it is to the best interest of the company to
continuously remain apolitical. While it encourages and 6.6. Any mass media columnist, commentator, announcer,
supports its employees to have greater political awareness and reporter, on-air correspondent or personality who is a
for them to exercise their right to suffrage, the company, candidate for any elective public office or is a campaign
however, prefers to remain politically independent and volunteer for or employed or retained in any capacity by any
unattached to any political individual or entity. candidate or political party shall be deemed resigned, if so
required by their employer, or shall take a leave of absence from
Therefore, employees who [intend] to run for public office or his/her work as such during the campaign period: Provided, That
accept political appointment should resign from their any media practitioner who is an official of a political party or a
positions, in order to protect the company from any public member of the campaign staff of a candidate or political party shall
misconceptions. To preserve its objectivity, neutrality and not use his/her time or space to favor any candidate or political
credibility, the company reiterates the following policy guidelines party. [Emphasis and underscoring supplied.]
for strict implementation. 2. The CA correctly ruled that though Luzon, as Assistant
Station Manager for Radio of ABS-CBN, has policy-making
We have consistently held that so long as a company’s powers in relation to his principal task of administering the
management prerogatives are exercised in good faith for the network’s radio station in the Cebu region, the exercise of such
advancement of the employer’s interest and not for the purpose of power should be in accord with the general rules and regulations
defeating or circumventing the rights of the employees under imposed by the ABS-CBN Head Office to its employees. Clearly,
 10

the March 25, 1998 Memorandum issued by Luzon which only dismissal cases cannot be applied to Ymbong. Thus, ABS-CBN
requires employees to go on leave if they intend to run for any is not duty-bound to ask him to explain why he did not tender his
elective position is in absolute contradiction with Policy No. HR- resignation before he ran for public office as mandated by the
ER-016 issued by the ABS-CBN Head Office in Manila which subject company policy. Petition denied.
requires the resignation, not only the filing of a leave of absence,
of any employee who intends to run for public office. Having PROFESSIONAL SERVICES v. CA and NATIVIDAD and
been issued beyond the scope of his authority, the March 25, 1998 ENRIQUE AGANA, GR No. 126297, 2008-02-11
Memorandum is therefore void and did not supersede Policy No.
HR-ER-016.
Facts:

Also worth noting is that Luzon in his Sworn Statement admitted Natividad Agana was admitted at the Medical City General
the inaccuracy of his recollection of the company policy when he Hospital (Medical City) because of difficulty of bowel movement
issued the March 25, 1998 Memorandum and stated therein that and bloody anal discharge
upon double-checking of the exact text of the policy statement and Dr. Ampil diagnosed her to be suffering from "cancer of the
subsequent confirmation with the ABS-CBN Head Office in sigmoid."
Manila, he learned that the policy required resignation for those
who will actually run in elections because the company wanted to Dr. Ampil,... assisted by the medical staff[1] of Medical City,
maintain its independence. Since the officer who himself issued performed an anterior resection surgery upon her.
the subject memorandum acknowledged that it is not in harmony he found that the malignancy in her sigmoid area had spread to her
with the Policy issued by the upper management, there is no reason left ovary, necessitating the removal of certain portions of it.
for it to be a source of right for Ymbong.
obtained the consent of Atty. Enrique Agana, Natividad's husband,
to permit Dr. Juan Fuentes, respondent in G.R. No. 126467, to
3. As Policy No. HR-ER-016 is the subsisting company
perform hysterectomy upon Natividad
policy and not Luzon’s March 25, 1998 Memorandum, Ymbong
is deemed resigned when he ran for councilor. Dr. Fuentes performed and completed the hysterectomy.
Afterwards, Dr. Ampil took over, completed the operation and
We find no merit in Ymbong’s argument that “[his] automatic closed the incision. However, the operation appeared to be flawed.
termination x x x was a blatant [disregard] of [his] right to due sponge count lacking 2
process” as he was “never asked to explain why he did not tender
his resignation before he ran for public office as mandated by [the After a couple of days, Natividad complained of excruciating pain
subject company policy].” Ymbong’s overt act of running for in her anal region. She consulted both Dr. Ampil and Dr. Fuentes
councilor of Lapu-Lapu City is tantamount to resignation on his about it. They told her that the pain was the natural consequence
part. He was separated from ABS-CBN not because he was of the surgical operation performed upon her. Dr. Ampil
dismissed but because he resigned. Since there was no recommended that Natividad... consult an oncologist
termination to speak of, the requirement of due process in
 11

Natividad, accompanied by her husband, went to the United States PSI's act of publicly displaying in the lobby of the Medical City
to seek further treatment. After four (4) months of consultations the names and specializations of its accredited... physicians,
and laboratory examinations, Natividad was told that she was free including Dr. Ampil, estopped it from denying the existence of an
of cancer. employer-employee relationship between them under the doctrine
of ostensible agency or agency by estoppel
Natividad flew back to the Philippines, still suffering from pains.
Two (2) weeks thereafter, her daughter found a piece of gauze PSI's failure to supervise Dr. Ampil and its resident... physicians
protruding from her vagina. and nurses and to take an active step in order to remedy their
negligence rendered it directly liable under the doctrine of
Dr. Ampil was immediately informed. He proceeded to
corporate negligence.
Natividad's house where he managed to extract by... hand a piece
of gauze measuring 1.5 inches in width. motion for reconsideration, PSI contends that the Court erred in
finding it liable under Article 2180 of the Civil Code, there being
the pains intensified, prompting Natividad to seek treatment at the
no employer-employee relationship
Polymedic General Hospital. While confined thereat, Dr. Ramon
Gutierrez detected the presence of a foreign object in her vagina - Issues:
- a foul-smelling gauze measuring 1.5 inches in... width. The gauze
"an employer-employee relationship in effect exists between
had badly infected her vaginal vault... forced stool to excrete
hospitals and their attending and visiting physicians for the
through the vagina.
purpose of apportioning responsibility"... the doctrine of
Natividad underwent another... surgery. ostensible agency or agency by estoppel cannot apply because
spouses Agana failed to establish one requisite of the doctrine, i.e.,
Natividad and her husband filed with the Regional Trial Court,
that Natividad relied on the representation of the hospital in
Branch 96, Quezon City a complaint for damages against PSI
engaging the services of Dr. Ampil.
(owner of Medical City), Dr. Ampil and Dr. Fuentes.
that the doctrine of corporate negligence is misplaced because the
On February 16, 1986, pending the outcome of the above case,
proximate cause of Natividad's injury was Dr. Ampil's
Natividad died.
negligence... whether or not respondent hospital is solidarily liable
the trial court rendered judgment in favor of spouses Agana... the with respondent doctors for petitioner's condition.
Court of Appeals, in its Decision dated September 6, 1996,
Ruling:
affirmed the assailed judgment... the complaint against Dr.
Fuentes was dismissed. an employer-employee relationship "in effect" exists between the
Medical City and Dr. Ampil. Consequently, both are jointly and
petitions for review on certiorari.
severally liable to the Aganas.
the Court, through its First Division, rendered a Decision holding
The unique practice (among private hospitals) of filling up
that PSI is jointly and severally liable with Dr. Ampil... employer-
specialist staff with attending and visiting "consultants," who are
employee relationship between Medical City and Dr. Ampil.
allegedly not hospital employees, presents problems in...
 12

apportioning responsibility for negligence in medical malpractice "consultants" are not, technically employees, a point which
cases. However, the difficulty is only more apparent than real. respondent hospital asserts in denying all responsibility for the
patient's... condition, the control exercised, the hiring, and the right
hospitals exercise significant control in the hiring and firing of
to terminate consultants all fulfill the important hallmarks of an
consultants and in the conduct of their work within the hospital
employer-employee relationship, with the exception of the
premises
payment of wages... the control test is... determining. Accordingly,
Doctors who apply for "consultant" slots, visiting or attending, are on the basis of the foregoing, we rule that for the purpose of
required to submit proof of... completion of residency, their allocating responsibility in medical negligence cases, an
educational qualifications employer-employee relationship in effect exists between hospitals
and their attending and visiting physicians.
These requirements are carefully scrutinized by members of the
hospital administration or... by a review committee set up by the the Court did not reverse its ruling in Ramos. What it clarified was
hospital who either accept or reject the application. This is that the De Los Santos Medical Clinic did not exercise control over
particularly true with respondent hospital. its consultant, hence, there is no employer-employee relationship
between them.
In other words, private hospitals hire, fire and exercise real control
over their attending and visiting "consultant" staff. the doctrine in Ramos stays, i.e., for the purpose of allocating
responsibility in medical negligence cases, an employer-employee
he is normally required to attend clinico-pathological conferences, relationship exists between hospitals and their... consultants.
conduct bedside rounds for clerks, interns and residents, moderate
grand rounds and patient audits and perform other tasks and... Even assuming that Dr. Ampil is not an employee of Medical City,
responsibilities, for the privilege of being able to maintain a clinic but an... independent contractor, still the said hospital is liable to
in the hospital, and/or for the privilege of admitting patients into the Aganas.
the hospital... the physician's performance as a specialist is
Atty. Agana categorically testified that one of the reasons why he
generally evaluated by a peer review... committee on the basis of
chose Dr. Ampil was that he knew him to be a staff member of
mortality and morbidity statistics, and feedback from patients,
Medical City, a prominent and known hospital.
nurses, interns and residents... remiss in his duties, or a consultant
who regularly falls short of the minimum standards acceptable to Clearly, PSI is estopped from passing the blame solely to Dr.
the hospital or its peer review committee,... is normally politely Ampil. Its act of displaying his name and those of the other
terminated. physicians in the public directory at the lobby of the hospital
amounts to holding out to the public that it offers quality medical
The basis for holding an employer solidarily responsible for the
service through the... listed physicians. This justifies Atty. Agana's
negligence of its employee is found in Article 2180 of the Civil
belief that Dr. Ampil was a member of the hospital's staff.
Code which considers a person accountable not only for his own
acts but also for those of others based on the former's responsibility Unfortunately, PSI had been remiss in its duty. It did not conduct
under a... relationship of partia ptetas. an immediate investigation on the reported missing gauzes to the
great prejudice and agony of its patient.
 13

Dr. Jocson's lack of concern for the patients. Such conduct is countries, while petitioner Estanislao Agbay, as per records,... is
reflective of the hospital's manner of supervision. Not only did PSI the President and General Manager of SEIRI.
breach its duty to oversee or supervise all persons who practice
On 2003, respondent Jesus J. Coming filed a complaint... for
medicine within its walls,... it also failed to take an active step in
illegal dismissal, underpayment of wages, non-payment of holiday
fixing the negligence committed.
pay, 13th month pay and service incentive leave pay, with prayer
there is merit in the trial court's finding that the failure of PSI to for reinstatement, back wages, damages and attorney's... fees.
conduct an investigation "established PSI's part in the dark
Respondent alleged that he was hired by petitioners as Sizing
conspiracy of silence and concealment about the gauzes."
Machine Operator on March, 1984.
Principles:
Initially, his compensation was on "pakiao" basis but sometime in
under the doctrine of apparent authority, the question in every case June 1984, it was fixed at P150.00 per day... which was paid
is whether the principal has by his voluntary act placed the agent weekly.
in... such a situation that a person of ordinary prudence, conversant
In 1990, without any apparent reason, his employment was
with business usages and the nature of the particular business, is
interrupted as he was told by petitioners to resume work in two
justified in presuming that such agent has authority to perform the
months time. Being an uneducated person, respondent was
particular act in question... the doctrine of corporate
persuaded by the management as well as his brother not to
responsibility.[7] The duty of providing quality medical service is
complain,... as otherwise petitioners might decide not to call him
no longer the sole prerogative and responsibility of the physician.
back for work.
This is because the modern... hospital now tends to organize a
highly-professional medical staff whose competence and Nonetheless, after two months he reported back to work upon
performance need also to be monitored by the hospital order of management. Despite being an employee for many years
commensurate with its inherent responsibility to provide quality with his work performance never questioned by petitioners,
medical care.[8] Such... responsibility includes the proper respondent was dismissed on 2002 without lawful cause.
supervision of the members of its medical staff. Accordingly, the
hospital has the duty to make a reasonable effort to monitor and He was told that he will be terminated because the company is not
oversee the treatment prescribed and administered by the doing well financially and that he would... be called back to work
physicians practicing in its premises. only if they need his services again
Respondent waited for almost a year but petitioners did not call
him back to work. When he finally filed the complaint before the
SOUTH EAST INTERNATIONAL RATTAN v. JESUS J.
regional arbitration branch, his brother Vicente was used by
COMING, GR No. 186621, 2014-03-12
management to... persuade him to withdraw the case.
Facts:
On their part, petitioners denied having hired respondent
Petitioner South East International Rattan, Inc. (SEIRI)... engaged
in the business of manufacturing and exporting furniture to various They stressed that respondent was not included in the list of
employees submitted to the Social Security System (SSS).
 14

With the denial of petitioners that respondent was their employee, to be utilized to disprove the employment of a person, it must
the latter submitted an affidavit... signed by five former co- contain a... true and complete list of the employee.
workers stating that respondent was one of the pioneer employees
In this case, the exhibits offered by petitioners before the NLRC
who worked in SEIRI for almost twenty years.
consisting of copies of payrolls and pay earnings... do not cover
Labor Arbiter... ruled that respondent is a regular employee of the entire 18-year period... during which respondent supposedly
SEIRI and that the termination of his employment was illegal. worked for SEIRI.
Petitioners appealed to NLRC... here they submitted the following In any controversy between a laborer and his master, doubts
additional evidence: (1) copies of SEIRI's payrolls and individual reasonably arising from the evidence are resolved in favor of the
pay records of employees... the NLRC... rendered its Decision laborer.
DISMISSING the complaint. As a regular employee, respondent enjoys the right to security of
tenure under Article 279[42] of the Labor Code and may only be
The NLRC likewise denied respondent's motion for
dismissed for a just... or authorized... cause, otherwise the
reconsideration.
dismissal becomes... illegal.
Respondent elevated the case to the CA via a petition for certiorari
Respondent, whose employment was terminated without valid
under Rule 65.
cause by petitioners, is entitled to reinstatement without loss of
CA reversed the NLRC and ruled that there existed an employer- seniority rights and other privileges and to his full back wages,
employee relationship between petitioners and respondent who inclusive of allowances and other benefits or their monetary
was dismissed without just and valid cause. equivalent, computed from... the time his compensation was
withheld from him up to the time of his actual reinstatement.
Petitioners filed a motion for reconsideration but the CA denied it Where reinstatement is no longer viable as an option, back wages
Hence, this petition shall be computed from the time of the illegal termination up to
the finality of the decision. Separation pay... equivalent to one
Issues: Whether or not an employer-employee relationship exist month salary for every year of service should likewise be awarded
Ruling: We affirm the CA. as an alternative in case reinstatement in not possible.
the fact that a worker was not reported as an employee to the SSS WHEREFORE, the petition for review on certiorari is DENIED.
is not conclusive proof of the absence of employer-employee
relationship. Otherwise, an employer would be rewarded for his... TENAZAS vs. R. VILLEGAS TAXI TRANSPORT; G.R. No.
failure or even neglect to perform his obligation. 192998 April 2, 2014
Nor does the fact that respondent's name does not appear in the FACTS
payrolls and pay envelope records submitted by petitioners negate Bernard A. Tenazas (Tenazas), Jaime M. Francisco (Francisco),
the existence of employer-employee relationship. For a payroll and Isidro G. Endraca (Endraca) filed a complaint for illegal
 15

dismissal against R. Villegas Taxi Transport and/or Romualdo that the payment of separation pay is ordered in lieu thereof. "It
Villegas (Romualdo) and Andy Villegas (Andy) (respondents). bears to stress that reinstatement is the rule and, for the exception
Respondents admitted that Tenazas and Endraca were employees of strained relations to apply, it should be proved that it is likely
of the company, the former being a regular driver and the latter a that if reinstated, an atmosphere of antipathy and antagonism
spare driver. Respondents claim that Isidro Endraca was only an would be generated as to adversely affect the efficiency and
extra driver who stopped reporting to queue for available taxi units productivity of the employee concerned. Although litigation may
which he could drive. Respondents offered Tenazas and Edraco also engender a certain degree of hostility, the understandable
reinstatement but both refused. The respondents, however, denied strain in the parties’ relation would not necessarily rule out
that Francisco was an employee of the company or that he was reinstatement which would, otherwise, become the rule rather the
able to drive one of the company’s units at any point in time. exception in illegal dismissal cases. Thus, it was a prudent call for
The Labor Arbiter held that there could be no illegal dismissal the CA to delete the award of separation pay and order for
since there was no overt act of dismissal committed by the reinstatement instead
respondents. There was no formal investigations, no show cause
memos, suspension memos or termination memos were never There was no employer-employee relationship. Francisco was
issued. Otherwise stated, there is no proof of overt act of dismissal claiming to be an employee of the respondents, it is incumbent
committed by herein respondents. upon him to proffer evidence to prove the existence of said
On appeal, the NLRC reversed the ruling of the LA and ruled that relationship. Any competent and relevant evidence to prove the
the petitioners were all employees of the company. relationship may be admitted. Identification cards, cash vouchers,
The Court of Appeals affirmed with modification the decision of social security registration, appointment letters or employment
the NLRC, holding that there was indeed an illegal dismissal on contracts, payrolls, organization charts, and personnel lists, serve
the part of Tenazas and Endraca but not with respect to Francisco as evidence of employee status.In this case, however, Francisco
who failed to present substantial evidence, proving that he was an failed to present any proof substantial enough to establish his
employee of the respondents. It also deleted the NLRC’s award of relationship with the respondents. Francisco simply relied on his
separation pay and instead ordered that Tenazas and Endraca be allegation that he was an employee of the company without any
reinstated. other evidence supporting his claim. Unfortunately for him, a mere
ISSUES: WON Tenazaz and Edraca are entitled to separation allegation in the position paper is not tantamount to evidence.
pay. WON or not Francisco is an employee of respondent. Bereft of any evidence, the CA correctly ruled that Francisco could
RULING: not be considered an employee of the respondents.
No, they are not entitled to separation pay. An illegally
dismissed employee is entitled to two reliefs: back wages and
reinstatement. In instances where reinstatement is no longer
feasible because of strained relations between the employee and
the employer, separation pay is granted. In effect, an illegally
dismissed employee is entitled to either reinstatement, if viable, or
separation pay if reinstatement is no longer viable, and back
wages. Clearly, it is only when reinstatement is no longer feasible