Republic of the Philippines

SUPREME COURT
Manila
EN BANC
August 30, 1968
!R! No! "#$%39%
JUANITO CARLOS, petitione&#appellant,
's!
ANTONIO J. VILLEGAS, as Mayor, City of Manila and/or EULOGIO SAMIO, as Ci!f, Manila "ir!
#!$art%!nt and/or MANUEL CU#IAMAT, as Tr!as&r!r, City of Manila, &espon(ents#appellees!
Juanito Carlos for and in his behalf as petitioner-appellant.
Assistant City Fiscal Olimpio R. Navarro for respondents-appellees.
ANGELES, J.:
)his is an appeal f&o* the (ecision of the Cou&t of +i&st ,nstance of Manila (is*issing the petition fo&
mandamus -Ci'il Case No! .3.1%/ see0ing to o&(e& the &espon(ents to cause the Cit1 of Manila to pa1
petitione& an( othe& *e*be&s of the 2nifo&*e( +o&ce 3i'ision of the Manila +i&e 3epa&t*ent -M+3/ fo&
o'e&ti*e se&'ices &en(e&e( f&o* 4anua&1 1, 196$, up to the (ate 5hen the petition 5as 6le( 4anua&1 %,
19637 to enfo&ce i**e(iatel1 the %0#8ou& a 9ee0 9o&0 "a5 to petitione& an( sai( othe& *e*be&s of the
M+37 an( to pa1 (a*ages sustaine( b1 the* as a conse:uence of the acts co*plaine( of!
)he facts of the case a&e set fo&th in the stipulation of facts sub*itte( b1 the pa&ties in the lo5e& cou&t, to
5it;
1! 2n(e& <ec! 1. of the Re'ise( Cha&te& of the Cit1 of Manila -Rep! Act %09, as a*en(e(/, =the&e shall be a
chief of the +i&e 3epa&t*ent, !!! 5ho shall ha'e the *anage*ent an( cont&ol of all *atte&s &elating to the
a(*inist&ation of sai( (epa&t*ent, an( the o&gani>ation, go'e&n*ent, (iscipline, an( (isposition of 6&e
fo&ces7 !!! ?E*phasis supplie(@
$! Pu&suant to the fo&egoing p&o'ision, f&o* <epte*be& 16, 19.A, to the p&esent, the petitione& an( othe&
*e*be&s of the 2nifo&*e( +o&ce 3i'ision of the Manila +i&e 3epa&t*ent ha'e been &e:ui&e( an( o&(e&e(
b1 the Chief of the Manila +i&e 3epa&t*ent, upon app&o'al of the Cit1 Ma1o&, the Co**issione& of the Ci'il
<e&'ice an( the BCce of the P&esi(ent, to be $% hou&s on (ut1 an( $% hou&s oD (ut1, alte&natel17 that is, a
*e*be& of the M+3 2nifo&*e( +o&ce 3i'ision &epo&ts to his station at 8;00 oEcloc0 in the *o&ning an(
continues on (ut1 until 8;00 oEcloc0 of the follo5ing *o&ning fo& $% hou&s7 he is then oD (ut1 fo& the neFt
$% hou&s i**e(iatel1 the&eafte&7 this sche(ule continuous th&oughout the (a1s of the 5ee0 &ega&(less of
<atu&(a1s, <un(a1s an( holi(a1s7 fo& an a'e&age of eight1#fou& -8%/ hou&s a 5ee0 the 6&e*en sta1 at the
station an( 5hile the&e, thei& (uties a&e to clean an( *aintain the station, 6&e engines o& appa&atuses an(
e:uip*ent to &espon( to 6&e an( to pe&fo&* othe& (uties &e:ui&e( b1 o&(inances an( la5s7 (u&ing the $%
hou&sE sta1 in the station, unless the1 a&e out 5o&0ing to 6ght an( eFtinguish 6&es, the 6&e*en a&e gi'en
ti*e to &est f&o* 1$;00 noon to %;00 oEcloc0 in the afte&noon, an( ti*e to sleep f&o* 9;00 oEcloc0 in the
e'ening to 6;00 oEcloc0 the follo5ing *o&ning!
3! Bn 4ul1 10, 19.A, the Chief of the Manila +i&e 3epa&t*ent &e:ueste( the BCce of the P&esi(ent fo&
autho&it1, in the inte&est of the se&'ice, fo& the *e*be&s of the 2nifo&*e( +o&ce 3i'ision an( of the +i&e
Ala&* an( Ra(io 3i'ision of the (epa&t*ent to &en(e& se&'ice 5ithout o'e&ti*e pa1 be1on( the %0#hou&#.#
(a1 a 5ee0 &e:ui&e*ent of the la5!
%! Bn 3ece*be& 9, 196$, a petition 5as a((&esse( to the Ma1o&, Cit1 of Manila, th&ough the Chief, +i&e
3epa&t*ent, Manila, clai*ing pa1*ent fo& o'e&ti*e se&'ices &en(e&e( eDecti'e 4anua&1 1, 196$ an(
(e*an(ing the enfo&ce*ent of the %0#hou& a 5ee0 5o&0 la5 5ith &espect to the 2nifo&*e( +o&ce 3i'ision
of the Manila +i&e 3epa&t*ent, an( the &epl1 the&eto 5as that se&'ices &en(e&e( be1on( a &egula& pe&io(
6Fe( b1 R!A! No! 1880 5ill not entitle the e*plo1ee to o'e&ti*e pa1 as a *atte& of legal &ight, citing
Bpinion No! $18, <e&ies of 19.A, of the <ec&eta&1 of 4ustice!
.! Bn 3ece*be& $6, 196$, petitione& a((&esse( a petition to 8is EFcellenc1, the P&esi(ent of the
Philippines, petitioning also the latte& to o&(e& the Cit1 of Manila to pa1 petitione& an( othe& *e*be&s of
the M+3 2nifo&*e( +o&ce 3i'ision fo& o'e&ti*e se&'ices &en(e&e( (u&ing 196$ an( cause( to be enfo&ce(
the %0#hou& a 5ee0 la5 an( the&e 5as no fa'o&able &epl1! =6! )he pa&ties he&ein &ese&'e the &ight to sub*it
a((itional e'i(ence shoul( a necessit1 the&efo& a&ise! =
No a((itional e'i(ence 5as sub*itte( the&eafte&, an( upon the fo&egoing stipulation of facts an( the la5
applicable the&eon, the lo5e& cou&t (is*isse( the petition!
)he issue fo& a(Gu(ication is 5hethe& the petitione&#appellant an( othe& 6&e*en si*ila&l1 situate( a&e
entitle( to collect o'e&ti*e pa1 fo& o'e&ti*e se&'ices &en(e&e( b1 the* since 4anua&1 1, 196$!
)he p&o'isions of la5 that &esol'e the issue a&e neithe& those of Republic Act 1880, othe&5ise 0no5n as the
+o&t1 8ou& 9ee0 9o&0 "a5, no& Co**on5ealth Act %%%, the Eight#8ou& "abo& "a5, as suggeste( b1 the
petitione&#appellant, but the follo5ing sections of the Re'ise( A(*inist&ati'e Co(e, to 5it;
<EC! .66! Extension of hours and reuirement of overtime !or". H 9hen the inte&ests of the public se&'ice
so &e:ui&e, the hea( of an1 3epa&t*ent, Bu&eau, o& BCce *a1 eFten( the (ail1 hou&s of labo&, in 5hat
*anne& so e'e& 6Fe(, fo& an1 o& all of the e*plo1ees un(e& hi*, an( *a1 li0e5ise &e:ui&e an1 o& all of
the* to (o o'e&ti*e 5o&0 not onl1 on 5o&0 (a1s but also on holi(a1s!=!
<EC! $.9! #nhibition a$ainst payment of extra compensation! H ,n the absence of special p&o'ision,
pe&sons &egula&l1 an( pe&*anentl1 appointe( un(e& the Ci'il <e&'ice "a5 o& 5hose sala&1, 5ages o&
e*olu*ents a&e 6Fe( b1 la5 o& &egulation shall not, fo& an1 se&'ice &en(e&e( o& labo& (one b1 the* on
holi(a1s o& fo& othe& o'e&ti*e 5o&0, &ecei'e o& be pai( an1 a((itional co*pensation7 no&, in the absence of
special p&o'ision, shall an1 oCce& o& e*plo1ee in an b&anch of the o'e&n*ent se&'ice &ecei'e a((itional
co*pensation on account of the (ischa&ge of (uties pe&taining to the position of anothe& o& fo& the
pe&fo&*ance of an1 public se&'ice 5hate'e&, 5hethe& such se&'ice is &en(e&e( 'olunta&il1 o& eFacte( of
hi* un(e& autho&it1 of la5!= !
)he petitione&#appellant conten(s that the abo'e#:uote( po&tions of the Re'ise( A(*inist&ati'e Co(e ha'e
been &epeale( b1 the p&o'isions of Co**on5ealth Act %%%, in so fa& as the p&o'isions of the fo&*e& a&e
inconsistent 5ith the latte&! )he contention is e&&oneous! )his Cou&t has eFplicitl1 (ecla&e(
??1@@
that the
Eight#8ou& "abo& "a5 5as not inten(e( to appl1 to ci'il se&'ice e*plo1ees 5ho a&e still go'e&ne( b1 the
abo'e p&o'isions of the Re'ise( A(*inist&ati'e Co(e! As the&e appea&s to be no (ebate o'e& the
e*plo1*ent of petitione&#appellant an( the othe& 6&e*en si*ila&l1 situate( as falling un(e& the ci'il
se&'ice, the1 being e*plo1ees of the Cit1 of Manila, a *unicipal co&po&ation, in its go'e&n*ental capacit1,
9e pe&cei'e no &eason to (e'iate f&o* sai( &uling! An( as 9e hol( that the abo'e sections of the Re'ise(
A(*inist&ati'e Co(e a&e still legall1 in fo&ce, it necessa&il1 follo5s that Rule IJ, section 3 of the Ci'il
<e&'ice Rules, a si*ila& p&o'ision p&o*ulgate( pu&suant to that of <ection 16-e/ of the Ci'il <e&'ice Act of
19.9 -Republic Act No! $$60/ is li0e5ise applicable to petitione&#appellant! <ai( p&o'ision &ea(s;
<EC! 3! 9hen the natu&e of the (uties to be pe&fo&*e( o& the inte&est of the public se&'ice so &e:ui&es, the
hea( of an1 3epa&t*ent o& agenc1 *a1 eFten( the (ail1 hou&s of 5o&0 speci6e( fo& an1 o& all the
e*plo1ees un(e& hi*, an( such eFtension shall be 5ithout a((itional co*pensation unless othe&5ise
p&o'i(e( b1 la5! BCce an( e*plo1ees *a1 be &e:ui&e( b1 the hea( of the 3epa&t*ent o& agenc1 to 5o&0
on <atu&(a1s, <un(a1s an( public holi(a1s also, 5ithout a((itional co*pensation unless othe&5ise
speci6call1 autho&i>e( b1 la5!
,t nee(s no length1 eFplanation that the natu&e of 5o&0 of a 6&e*an &e:ui&es hi* to be al5a1s on the ale&t
to &espon( to 6&e ala&*s 5hich *a1 occu& at an1 ti*e of the (a1, fo& the eFigenc1 of the se&'ice
necessitates a &oun(#the#cloc0 obse&'ance of his (uties, 5hich situation eFcepts hi* f&o* the applicabilit1
of <ection .6$ of the Re'ise( A(*inist&ati'e Co(e, as a*en(e( b1 Republic Act 18809 the +o&t1#8ou& a
9ee0 9o&0 "a5, 5hich p&o'i(es, in pa&t;
<uch hou&s, eFcept fo& schools, cou&ts, hospitals an( health clinics or !here the exi$encies of service so
reuire, shall be as p&esc&ibe( in the Ci'il <e&'ice Rules an( as othe&5ise f&o* ti*e to ti*e (ispose( in
te*po&a&1 eFecuti'e o&(e&s in the (isc&etion of the P&esi(ent of the Philippines but shall be eight -8/ hou&s
a (a1, fo& 6'e -./ (a1s a 5ee0 o& a total of fo&t1 -%0/ hou&s a 5ee0, eFclusi'e of the ti*e fo& lunch!
?E*phasis supplie(@!
Pa&allel to the instant case a&e the ci&cu*stances obtaining in %epartment of &ublic 'ervices (abor )nion
vs. C#R, et al!,
??$@@
5he&e this Cou&t hel( that in 'ie5 of the eFigenc1 of the se&'ice, ga&bage collecto&s in
Manila a&e not entitle( to the bene6ts of the +o&t1#8ou& a 9ee0 9o&0 "a5!
,n the light of the fo&egoing, the conclusion is ine'itable that the petitione&#appellant an( othe& 6&e*en of
his situation a&e not entitle( to o'e&ti*e pa1 an( to the co'e&age of the sai( +o&t1#8ou& a 9ee0 9o&0 "a5!
Pa&entheticall1, a si(e issue has co*e up in this appeal (u&ing its pen(enc1, an( that is 5hethe& o& not the
Cit1 +iscal of Manila shoul( continue his appea&ance fo& the &espon(ents#appellees, (espite the c&eation of
the oCce an( subse:uent appoint*ent of a Cit1 "egal BCce& of Manila, pu&suant to Republic Act .18.,
0no5n as the 3ecent&ali>ation Act of 196A, to ta0e cha&ge of ci'il cases conce&ning the Cit1! 9e belie'e
this is not the p&ope& fo&u* to 6&st pass upon the :uestion since the *otion fo& 5ith(&a5al of appea&ance
6le( b1 the Cit1 +iscal an( the opposition the&eto put at issue the 'ali(it1 of an o&(inance
??3@@
passe( b1 the
Cit1 Council of Manila 5hich is allege( to be in conKict 5ith the sai( 3ecent&ali>ation Act! An15a1, the sai(
*otion fo& 5ith(&a5al of appea&ance 5as 6le( onl1 on Ma1 19, 1968, long afte& August 18, 196., 5hen the
case ha( been &este( fo& &esolution an( 5hen the&e 5as no *o&e nee( fo& fu&the& &ep&esentation in behalf
of the pa&ties!
,N J,E9 B+ )8E +BREB,N, the (ecision appeale( f&o* is he&eb1 aC&*e(! +o& e:uitable consi(e&ations,
no costs!
Concepcion* C.J.* Reyes* J.+.(.* %i,on* -a"alintal* .aldivar* 'anche,. Castro and Fernando* JJ.* concur.
EN 'ANC
(G.R. No. L)*+,-+. A&.&st -*, *,/0.1
NATIONAL 2ATER2OR3S 4 SE2ERAGE AUT5ORIT6, Petitioner, 7. N2SA CONSOLI#ATE#
UNIONS, ET AL., Respondents.
Go7t. Cor$. Co&ns!l Si%!on M. Go$!n.8o and Asst. Go7t. Cor$. Co&ns!l Art&ro '. Santos for
Petitioner.
Ci$riano Cid 4 Asso8iat!s and Isra!l 'o8o9o for Respondents.
Alfr!do M. Mont!sa for int!r7!nor)r!s$ond!nt.
S6LLA'US
1! P2B",C CBRPBRA),BN<7 NA9A<A 3BE< NB) PER+BRM BJERNMEN)A" B2) BN"L PRBPR,E)ARL
+2NC),BN! H )he National 9ate&5o&0s an( <e5e&age Autho&it1 is a go'e&n*ent co&po&ation pe&fo&*ing
not go'e&n*ental but p&op&ieta&1 functions, an( as such co*es 5ithin the co'e&age of Co**on5ealth Act
No! %%%!
$! ,3!7 <2PP"L B+ 9A)ER AN3 <E9ERAE <ERJ,CE ARE M,N,<)RAN) +2NC),BN<! H )he business of
p&o'i(ing 5ate& suppl1 an( se5e&age se&'ice a&e but *inist&ant functions of go'e&n*ent!
3! "ABBR RE"A),BN<7 P2B",C 2),",)L BB",E3 )B PAL 3,++EREN),A" <2M 2N3ER CB""EC),JE
BARA,N,N AREEMEN)! H )he NA9A<A is a public utilit1! Although pu&suant to <ection % of
Co**on5ealth Act %%%, it is not oblige( to pa1 an a((itional su* of $.M to its labo&e&s fo& 5o&0 (one on
<un(a1s an( legal holi(a1s, 1et it *ust pa1 sai( a((itional co*pensation b1 'i&tue of the cont&actual
obligation it assu*e( un(e& the collecti'e ba&gaining ag&ee*ent!
%! ,3!7 NBN#MANAER,A" EMP"BLEE< CBJERE3 BL CBMMBN9EA")8 AC) NB! %%%! H E*plo1ees 5ho ha'e
little f&ee(o* of action an( 5hose *ain function is *e&el1 to ca&&1 out the co*pan1Ns o&(e&s, plans an(
policies, a&e not *anage&ial e*plo1ees an( hence a&e co'e&e( b1 Co**on5ealth Act No! %%%!
.! ,3!7 42R,<3,C),BN B+ CB2R) B+ ,N32<)R,A" RE"A),BN< 3E)ERM,NE3 A) ),ME 3,<P2)E ARB<E! H )he
Cou&t of ,n(ust&ial Relations has Gu&is(iction to a(Gu(icate o'e&ti*e pa1 5he&e the&e 5as e*plo1e&#
e*plo1ee &elationship eFisting bet5een the pa&ties at the ti*e the (ispute a&ose!
6! ,3!7 EMP"BLEE< B+ B)8ER B++,CE< A<<,NE3 )B NA9A<A NB) EMP"BLEE< B+ "A))ER! H )he AB
e*plo1ees assigne( to 5o&0 in the NA9A<A e'en if the1 5e&e pai( out of the latte&Ns fun(s cannot be
&ega&(e( as e*plo1ees of the NA9A<A on *atte&s &elating to co*pensation! )he1 a&e e*plo1ees of the
national go'e&n*ent an( a&e not co'e&e( b1 the Eight# 8ou& "abo& "a5! )he sa*e *a1 be sai( of the
Bu&eau of Public 9o&0s assigne( to 5o&0 in the NA9A<A!
A! ,3!7 B++<E)),N BJER),ME 9,)8 2N3ER),ME 98EN 2N+A,R! H )he *etho( use( b1 the NA9A<A in
oDsetting the o'e&ti*e 5ith the un(e&ti*e an( at the sa*e ti*e cha&ging sai( un(e&ti*e to the acc&ue(
lea'e is unfai&!
8! ,3!7 3,++EREN),A" PAL +BR <2N3AL< ,< PAR) B+ "EA" 9AE! H )he (iDe&ential pa1 fo& <un(a1s is a
pa&t of the legal 5age! 8ence, it 5as co&&ectl1 inclu(e( in co*puting the 5ee0l1 5ages of those e*plo1ees
an( labo&e&s 5ho 5o&0e( se'en (a1s a 5ee0 an( 5e&e &egula&l1 &ecei'ing the $.M sala&1 (iDe&ential fo& a
pe&io( of th&ee *onths p&io& to the i*ple*entation of Republic Act 1880! )his is so e'en if petitione& is a
public utilit1 in 'ie5 of the cont&actual obligation it has assu*e( on the *atte&!
9! ,3!7 3,++EREN) CBMP2)A),BN B+ 3A,"L 9AE< B+ BJERNMEN) AN3 NBN#BJERNMEN) EMP"BLEE<!
H ,n the co*putation of (ail1 5ages of e*plo1ees pai( b1 the *onth (istinction shoul( be *a(e bet5een
go'e&n*ent e*plo1ees li0e the AB e*plo1ees an( those 5ho a&e not! )he co*putation fo& go'e&n*ent
e*plo1ees is go'e&ne( b1 <ection $.% of the Re'ise( A(*inist&ati'e Co(e 5hile fo& othe&s the co&&ect
co*putation is the *onthl1 sala&1 (i'i(e( b1 the actual nu*be& of 5o&0ing hou&s in the *onth o& the
&egula& *onthl1 co*pensation (i'i(e( b1 the nu*be& of 5o&0ing (a1s in the *onth!
10! ,3!7 N,8) CBMPEN<A),BN )B BE PA,3 +RBM ),ME <ERJ,CE< 9ERE REN3ERE3! H )he labo&e&s *ust
be co*pensate( fo& nightti*e 5o&0 as of the (ate the sa*e 5as &en(e&e(!
11! ,3!7 M,N,M2M 9AE< RA)E< APP",CAB"E A"<B )B EMP"BLEE< 8,RE3 <2B<EO2EN) )B 3A)E B+
3EC,<,BN! H )he &ates of *ini*u* pa1 6Fe( in a C,R case a&e applicable not onl1 to those 5ho 5e&e
al&ea(1 in the se&'ice as of the (ate of the (ecision but also to those 5ho 5e&e e*plo1e( subse:uent to
sai( (ate!
1$! ,3!7 =3,<)RE<< PAL= APP",CAB"E )B A"" EMP"BLEE< 98B<E 9BRP 8AJE )B 3B 9,)8 )8E <E9ERAE
C8AMBER<! H All the labo&e&s, 5hethe& assigne( to the se5e&age (i'ision o& not 5ho a&e actuall1 5o&0ing
insi(e o& outsi(e the se5e&age cha*be&s, a&e entitle( to (ist&ess pa1!
13! ,3!7 <)AER,N NB) REO2,RE3 98ERE 9BRP NB) CBN),N2B2<! H <tagge&ing of 5o&0ing hou&s is
not &e:ui&e( 5he&e the e'i(ence sho5s that the 5o&0 is not continuous!
# E C I S I O N
'AUTISTA ANGELO, J.:
Petitione& National 9ate&5o&0s Q <e5e&age Autho&it1 is a go'e&n*ent#o5ne( an( cont&olle( co&po&ation
c&eate( un(e& Republic Act No! 1383, 5hile &espon(ent N9<A Consoli(ate( 2nions a&e 'a&ious labo&
o&gani>ations co*pose( of labo&e&s an( e*plo1ees of the NA9A<A! )he othe& &espon(ents a&e inte&'eno&s
4esus Centeno, Et Al!, he&einafte& &efe&&e( to as inte&'eno&s!
Acting on a ce&ti6cation of the P&esi(ent of the Philippines, the Cou&t of ,n(ust&ial Relations con(ucte( a
hea&ing on 3ece*be& ., 19.A on the cont&o'e&s1 then eFisting bet5een petitione& an( &espon(ent unions
5hich the latte& e*bo(ie( in a =Manifesto= (ate( 3ece*be& ., 19.A, na*el1; i*ple*entation of the %0#
8ou& 9ee0 "a5 -Republic Act No! 1880/7 allege( 'iolations of the collecti'e ba&gaining ag&ee*ent (ate(
3ece*be& $8, 19.6 conce&ning =(ist&ess pa1= 7 *ini*u* 5age of P.!$.7 p&o*otional appoint*ents an(
6lling of 'acancies of ne5l1 c&eate( positions7 a((itional co*pensation fo& night 5o&07 5age inc&eases to
so*e labo&e&s an( e*plo1ees7 an( st&i0e (u&ation pa1! ,n a((ition, &espon(ent unions &aise( the issue of
5hethe& the $.M a((itional co*pensation fo& <un(a1 5o&0 shoul( be inclu(e( in co*puting the (ail1
5age an( 5hethe&, in (ete&*ining the (ail1 5age of a *onthl1 sala&ie( e*plo1ee, the sala&1 shoul( be
(i'i(e( b1 30 (a1s!
Bn 3ece*be& 13, 19.A, petitione& an( &espon(ent unions, confo&*abl1 to a suggestion of the Cou&t of
,n(ust&ial Relations, sub*itte( a Goint stipulation of facts on the issues conce&ning the %0#8ou& 9ee0 "a5,
=(ist&ess pa1,= *ini*u* 5age of P.!$., 6lling of 'acancies, night co*pensation, an( sala&1 a(Gust*ents,
&ese&'ing the &ight to p&esent e'i(ence on *atte&s not co'e&e( the&ein! Bn 3ece*be& %, 19.A, &espon(ent
inte&'eno&s 6le( a petition in inte&'ention on the issue of a((itional co*pensation fo& night 5o&0! "ate&,
ho5e'e&, the1 a*en(e( thei& petition b1 inclu(ing a ne5 (e*an( fo& o'e&ti*e pa1 in fa'o& of 4esus
Centeno, Cesa& Cab&e&a, +eliciano 3uiguan, Cecilio Re*otigue, an( othe& e*plo1ees &ecei'ing P%,$00!00
pe& annu* o& *o&e!chan&obles!co* ; 'i&tual la5 lib&a&1
Bn +eb&ua&1 ., 19.8, petitione& 6le( a *otion to (is*iss the clai* fo& o'e&ti*e pa1 alleging that
&espon(ent Cou&t of ,n(ust&ial Relations 5as 5ithout Gu&is(iction to pass upon the sa*e because, as *e&e
inte&'eno&s, the latte& cannot &aise ne5 issues not litigate( in the p&incipal case, the sa*e not being the lis
*ota the&ein in'ol'e(! )o this *otion the inte&'eno&s 6le( an opposition! )he&eafte&, &espon(ent cou&t
issue( on o&(e& allo5ing the issue to be litigate(! Petitione&Ns *otion to &econsi(e& ha'ing been (enie(, it
6le( its ans5e& to the petition fo& inte&'ention! +inall1, on 4anua&1 16, 1961, &espon(ent cou&t &en(e&e( its
(ecision stating substantiall1 as follo5s;chan&ob1es 'i&tual 1a5 lib&a&1
)he NA9A<A is an agenc1 not pe&fo&*ing go'e&n*ental functions an(, the&efo&e, is liable to pa1 a((itional
co*pensation fo& 5o&0 on <un(a1s an( legal holi(a1s confo&*abl1 to Co**on5ealth Act No! %%%, 0no5n
as the Eight#8ou& "abo& "a5, e'en if sai( (a1s shoul( be 5ithin the stagge&e( 6'e#5o&0 (a1s autho&i>e( b1
the P&esi(ent7 the inte&'eno&s (o not fall 5ithin the catego&1 of =*anage&ial e*plo1ees= as conte*plate(
in Republic Act $3AA an( so a&e not eFe*pt f&o* the co'e&age of the Eight#8ou& "abo& "a57 e'en those
inte&'eno&s attache( to the ene&al Au(iting BCce an( the Bu&eau of Public 9o&0s co*e 5ithin the
pu&'ie5 of Co**on5ealth Act No! %%%7 the co*putation follo5e( b1 NA9A<A in co*puting o'e&ti*e
co*pensation is cont&a&1 to Co**on5ealth Act %%%7 the un(e&ti*e of a 5o&0e& shoul( not be set#oD
against the 5o&0e& in (ete&*ining 5hethe& the latte& has &en(e&e( se&'ice in eFcess of eight hou&s fo& that
(a17 in co*puting the (ail1 5ages of those e*plo1e( on (ail1 basis, the a((itional $.M co*pensation fo&
<un(a1 5o&0 shoul( be inclu(e(7 the co*putation use( b1 the NA9A<A fo& *onthl1 sala&ie( e*plo1ees, to
5it, (i'i(ing the *onthl1 basic pa1 b1 30 is e&&oneous7 the *ini*u* 5age a5a&(e( b1 &espon(ent cou&t
5a1bac0 on No'e*be& $., 19.0 in Case No! 3.9#J entitle( M93 9o&0e&s 2nion '! Met&opolitan 9ate&
3ist&ict, applies e'en to those 5ho 5e&e e*plo1e( long afte& the p&o*ulgation of the a5a&( an( e'en if
the 5o&0e&s a&e hi&e( onl1 as te*po&a&1, e*e&genc1 an( casual 5o&0e&s fo& a (e6nite pe&io( an( fo& a
pa&ticula& p&oGect7 the autho&it1 g&ante( to NA9A<A b1 the P&esi(ent to stagge& the 5o&0ing (a1s of its
5o&0e&s shoul( be li*ite( eFclusi'el1 to those speci6e( in the autho&i>ation an( shoul( not be eFten(e( to
othe&s 5ho a&e not the&ein speci6e(7 an( un(e& the collecti'e ba&gaining ag&ee*ent ente&e( into bet5een
the NA9A<A an( &espon(ent unions on 3ece*be& $8, 19.6, as 5ell as un(e& Resolution No! $9, se&ies of
19.A of the &ie'ance Co**ittee, e'en those 5ho 5o&0 outsi(e the se5e&age cha*be&s shoul( be pai(
$.M a((itional co*pensation as =(ist&ess pa1!=c&ala5 'i&tua1a5 lib&a&1
,ts *otion fo& &econsi(e&ation ha'ing been (enie(, NA9A<A 6le( the p&esent petition fo& &e'ie5 &aising
*e&el1 :uestions of la5! <uccinctl1, these :uestions a&e;chan&ob1es 'i&tual 1a5 lib&a&1
1! 9hethe& NA9A<A is pe&fo&*ing go'e&n*ental functions an(, the&efo&e, essentiall1 a se&'ice agenc1 of
the go'e&n*ent7
$! 9hethe& NA9A<A is a public utilit1 an( the&efo&e, eFe*pte( f&o* pa1ing a((itional co*pensation fo&
5o&0 on <un(a1s an( legal holi(a1s7
3! 9hethe& the inte&'eno&s a&e =*anage&ial e*plo1ees= 5ithin the *eaning of Republic Act $3AA an(,
the&efo&e, not entitle( to the bene6ts of Co**on5ealth Act No! %%%, as a*en(e(7
%! 9hethe& &espon(ent Cou&t of ,n(ust&ial Relations has Gu&is(iction to a(Gu(icate o'e&ti*e pa1 consi(e&ing
that this issue 5as not a*ong the (e*an(s of &espon(ent union in the p&incipal case but 5as *e&el1
(&agge( into the case b1 the inte&'eno&s7
.! 9hethe& those attache( to the ene&al Au(iting BCce an( the Bu&eau of Public 9o&0s co*e 5ithin the
pu&'ie5 of Co**on5ealth Act No! %%%, as a*en(e(7
6! ,n (ete&*ining 5hethe& one has 5o&0e( in eFcess of eight hou&s, 5hethe& the un(e&ti*e fo& that (a1
shoul( be set#oD7
A! ,n co*puting the (ail1 5age, 5hethe& the a((itional co*pensation fo& <un(a1 5o&0 shoul( be inclu(e(7
8! 9hat is the co&&ect *etho( to (ete&*ine the e:ui'alent (ail1 5age of a *onthl1#sala&ie( e*plo1ee,
especiall1 in a 6&* 5hich is a public utilit1R7
9! Consi(e&ing that the pa1*ent of night co*pensation is not b1 'i&tue of an1 statuto&1 p&o'ision but
e*anates onl1 f&o* an a5a&( of &espon(ent Cou&t of ,n(ust&ial Relations, 5hethe& the sa*e can be *a(e
&et&oacti'e an( co'e& a pe&io( p&io& to the p&o*ulgation of the a5a&(7
10! 9hethe& the *ini*u* 5age 6Fe( an( a5a&(e( b1 &espon(ent Cou&t of ,n(ust&ial Relations in anothe&
case -M93 9o&0e&s 2nion '! M93, C,R Case No! 3.9#J/ applies to those e*plo1e( long afte& the
p&o*ulgation the&eof, 5hethe& hi&e( as te*po&a&1, e*e&genc1 an( casual 5o&0e&s fo& a (e6nite pe&io( an(
fo& a speci6c p&oGect7
11! 8o5 shoul( the collecti'e ba&gaining ag&ee*ent of 3ece*be& $8, 19.6 an( Resolution No! $9, se&ies of
19.A of the &ie'ance Co**ittee be inte&p&ete( an( const&ue( insofa& as the stipulations the&ein
containe( &elati'e to =(ist&ess pa1= is conce&ne(R7 an(
1$! 9hethe&, un(e& the 6&st in(o&se*ent of the P&esi(ent of the Philippines (ate( August 1$, 19.A, 5hich
autho&i>es he&ein petitione& to stagge& the 5o&0ing (a1s of its e*plo1ees an( labo&e&s, those 5hose
se&'ices a&e in(ispensabl1 continuous th&oughout the 1ea& *a1 be stagge&e( in the sa*e *anne& as the
pu*p, 'al'e, 6lte& an( chlo&ine ope&ato&s, gua&(s, 5atch*an, *e(ical se&'ices, an( those attache( to the
&ec&eational facilities!
3,<C2<<,BN B+ )8E ,<<2E<
1! ,s NA9A<A an agenc1 that pe&fo&*s go'e&n*ental functions an(, the&efo&e, essentiall1 a se&'ice agenc1
of the go'e&n*entR Petitione& sustains the aC&*ati'e because, un(e& Republic Act No! 1383, it is a public
co&po&ation, an( as such it eFists as an agenc1 in(epen(ent of the 3epa&t*ent of Public 9o&0s of ou&
go'e&n*ent! ,t also conten(s that un(e& the sa*e Act the Public <e&'ice Co**ission (oes not ha'e
cont&ol, supe&'ision o& Gu&is(iction o'e& it in the 6Fing of &ates conce&ning the ope&ation of the se&'ice! ,t
can also incu& in(ebte(ness o& issue bon(s that a&e eFe*pt f&o* taFation 5hich ci&cu*stance i*plies that
it is essentiall1 a go'e&n*ent#function co&po&ation because it enGo1s that att&ibute of so'e&eignt1!
Petitione& li0e5ise in'o0es the opinion of the <ec&eta&1 of 4ustice 5hich hol(s that the NA9A<A being
essentiall1 a se&'ice agenc1 of the go'e&n*ent can be classi6e( as a co&po&ation pe&fo&*ing
go'e&n*ental function!
9ith this contention, 5e (isag&ee! 9hile un(e& Republic Act No! 1383 the NA9A<A is consi(e&e( as a
public co&po&ation it (oes not sho5 that it 5as so c&eate( fo& the go'e&n*ent of a po&tion of the <tate! ,t
shoul( be bo&ne in *in( that the&e a&e t5o 0in(s of public co&po&ations, na*el1, *unicipal an( non#
*unicipal! A *unicipal co&po&ation in its st&ict sense is the bo(1 politic constitute( b1 the inhabitants of a
cit1 o& to5n fo& the pu&pose of local go'e&n*ent the&eof! ,t is the bo(1 politic establishe( b1 la5
pa&ticula&l1 as an agenc1 of the <tate to assist in the ci'il go'e&n*ent of the count&1 chieK1 to &egulate
the local an( inte&nal aDai&s of the cit1 o& to5n that is inco&po&ate( -6$ C!4!<!, p! 61/! Non#*unicipal
co&po&ations, on the othe& han(, a&e public co&po&ations c&eate( as agencies of the <tate fo& li*ite(
pu&poses to ta0e cha&ge *e&el1 of so*e public o& state 5o&0 othe& than co**unit1 go'e&n*ent -Elliot,
Municipal Co&po&ations, 3&( e(!, p! A7 McOuillin, Mun! Co&p! 3&( e(!, Jol! 1, p! %A6/!
)he National 9ate&5o&0s Q <e5e&age Autho&it1 5as not c&eate( fo& pu&poses of local go'e&n*ent! ,t is not
a *unicipal co&po&ation! ,t 5as c&eate( =fo& the pu&pose of consoli(ating an( cent&ali>ing all 5ate&5o&0s,
se5e&age an( (&ainage s1ste*s in the Philippines un(e& one cont&ol an( (i&ection an( gene&al supe&'ision!
=)he NA9A<A, the&efo&e, though a public co&po&ation, is not a *unicipal co&po&ation, because it is not an
agenc1 of the <tate to &egulate o& a(*iniste& the local aDai&s of the to5n, cit1, o& (ist&ict 5hich is
inco&po&ate(!
Mo&eo'e&, the NA9A<A, b1 its cha&te&, has pe&sonalit1 an( po5e& sepa&ate an( (istinct f&o* the
go'e&n*ent! ,t is an in(epen(ent agenc1 of the go'e&n*ent although it is place(, fo& a(*inist&ati'e
pu&poses, un(e& the 3epa&t*ent of Public 9o&0s an( Co**unications! ,t has continuous succession un(e&
its co&po&ate na*e an( *a1 sue an( be sue( in cou&t! ,t has co&po&ate po5e&s to be eFe&cise( b1 its boa&(
of (i&ecto&s7 it has its o5n assets an( liabilities7 an( it *a1 cha&ge &ates fo& its se&'ices!
,n Bacani '! National Coconut Co&po&ation, .3 B!!, $A98, 5e state(; =)o &ecapitulate, 5e *a1 *ention that
the te&* So'e&n*ent of the Republic of the PhilippinesN ! ! ! &efe&s onl1 to that go'e&n*ent entit1 th&ough
5hich the functions of the go'e&n*ent a&e eFe&cise( as an att&ibute of so'e&eignt1, an( in this a&e
inclu(e( those a&*s th&ough 5hich political autho&it1 is *a(e eDecti'e 5hethe& the1 be p&o'incial,
*unicipal o& othe& fo&* of local go'e&n*ent! )hese a&e 5hat 5e call *unicipal co&po&ations! )he1 (o not
inclu(e go'e&n*ent entities 5hich a&e gi'en a co&po&ate pe&sonalit1 sepa&ate an( (istinct f&o* the
go'e&n*ent an( 5hich a&e go'e&ne( b1 the Co&po&ation "a5! )hei& po5e&s, (uties an( liabilities ha'e to be
(ete&*ine( in the light of that la5 an( of thei& co&po&ate cha&te&!=c&ala5 'i&tua1a5 lib&a&1
)he sa*e conclusion *a1 be &eache( b1 consi(e&ing the po5e&s, functions an( acti'ities of the NA9A<A
5hich a&e enu*e&ate( in <ection $, Republic Act No! 1383, a*ong othe&s, as
follo5s;Ggc;chan&obles!co*!ph
=-e/ )o const&uct, *aintain an( ope&ate *ains, pipes, 5ate& &ese&'oi&s, *achine&1, an( othe& 5ate&5o&0s
fo& the pu&pose of suppl1ing 5ate& to the inhabitants of its >one, both (o*estic an( othe& pu&poses7 to
pu&if1 the sou&ce of suppl1, &egulate the cont&ol an( use, an( p&e'ent the 5aste of 5ate&7 an( to 6F 5ate&
&ates an( p&o'i(e fo& the collection of &ents the&efo&7
=-f/ )o const&uct, *aintain an( ope&ate such s1ste* of sanita&1 se5e&s as *a1 be necessa&1 fo& the p&ope&
sanitation of the cities an( to5ns co*p&ising the Autho&it1 an( to cha&ge an( collect such su*s fo&
const&uction an( &ates fo& this se&'ice as *a1 be (ete&*ine( b1 the Boa&( to be e:uitable an( Gust7
=-g/ )o ac:ui&e, pu&chase, hol(, t&ansfe&, sell, lease, &ent, *o&tgage, encu*be&, an( othe&5ise (ispose of
&eal an( pe&sonal p&ope&t1, inclu(ing &ights an( f&anchises, 5ithin the Philippines, as autho&i>e( b1 the
pu&poses fo& 5hich the Autho&it1 5as c&eate( an( &easonabl1 an( necessa&il1 &e:ui&e( fo& the t&ansaction
of the la5ful business of the sa*e, unless othe&5ise p&o'i(e( in this Act7=
)he business of p&o'i(ing 5ate& suppl1 an( se5e&age se&'ice, as this Cou&t hel(, =*a1 fo& all p&actical
pu&poses be li0ene( to an in(ust&1 engage( in b1 coal co*panies, gas co*panies, po5e& plants, ice
plants, an( the li0e= -Met&opolitan 9ate& 3ist&ict '! Cou&t of ,n(ust&ial Relations, Et Al!, "#%%88, August $A,
19.$/! )hese a&e but *e&e *inist&ant functions of go'e&n*ent 5hich a&e ai*e( at a('ancing the gene&al
inte&est of societ1! As such the1 a&e optional -Bacani '! National Coconut Co&po&ation, sup&a/! An( it has
been hel( that =although the state *a1 &egulate the se&'ice an( &ates of 5ate& plants o5ne( an( ope&ate(
b1 *unicipalities, such p&ope&t1 is not e*plo1e( fo& go'e&n*ental pu&poses an( in the o5ne&ship
ope&ation the&eof the *unicipalit1 acts in its p&op&ieta&1 capacit1, f&ee f&o* legislati'e inte&fe&ence= -1
McOuillin, p! 683/! ,n Men(o>a '! 3e "eon, 33 Phil!, .08, .09, this Cou&t also hel(;Ggc;chan&obles!co*!ph
=Municipalities of the Philippine ,slan(s o&gani>e( un(e& the Municipal Co(e ha'e both go'e&n*ental an(
co&po&ate o& business functions! Bf the 6&st class a&e the a(option of &egulations against 6&e an( (isease,
p&ese&'ation of the public peace, *aintenance of *unicipal p&isons, establish*ent of p&i*a&1 schools an(
post#oCces, etc! Bf the latte& class a&e the establish*ent of *unicipal 5ate&5o&0s fo& the use of the
inhabitants, the const&uction an( *aintenance of *unicipal slaughte&houses, *a&0ets, stables, bathing
establish*ents, 5ha&'es, fe&&ies, an( 6she&ies ! ! !=c&ala5 'i&tua1a5 lib&a&1
Bn the st&ength of the fo&egoing consi(e&ations, ou& conclusion is that the NA9A<A is not an agenc1
pe&fo&*ing go'e&n*ental functions! Rathe&, it pe&fo&*s p&op&ieta&1 functions, an( as such co*es 5ithin
the co'e&age of Co**on5ealth Act No! %%%!
$! 9e ag&ee 5ith petitione& that the NA9A<A is a public utilit1 because its p&i*a&1 function is to const&uct,
*aintain an( ope&ate 5ate& &ese&'oi&s an( 5ate&5o&0s fo& the pu&pose of suppl1ing 5ate& to the
inhabitants, as 5ell as to consoli(ate an( cent&ali>e all 5ate& supplies an( (&ainage s1ste*s in the
Philippines! 9e li0e5ise ag&ee 5ith petitione& that a public utilit1 is eFe*pt f&o* pa1ing a((itional
co*pensation fo& 5o&0 on <un(a1s an( legal holi(a1s confo&*abl1 to <ection % of Co**on5ealth Act No!
%%% 5hich p&o'i(es that the p&ohibition &ega&(ing e*plo1*ent on <un(a1s an( holi(a1s unless an
a((itional su* of $.M of the e*plo1eeNs &egula& &e*une&ation is pai( shall not appl1 to public utilities
such as those suppl1ing gas, elect&icit1, po5e&, 5ate& o& p&o'i(ing *eans of t&anspo&tation o&
co**unication! ,n othe& 5o&(s, the e*plo1ees an( labo&e&s of NA9A<A can be *a(e to 5o&0 on <un(a1s
an( legal holi(a1s 5ithout being &e:ui&e( to pa1 the* an a((itional co*pensation of $.M!
,t is to be note(, ho5e'e&, that in the case at ba& it has been stipulate( that p&io& to the enact*ent of
Republic Act No! 1880, p&o'i(ing fo& the i*ple*entation of the %0#8ou& 9ee0 "a5, the Met&opolitan 9ate&
3ist&ict ha( been pa1ing $.M a((itional co*pensation fo& 5o&0 on <un(a1s an( legal holi(a1s to its
e*plo1ees an( labo&e&s b1 'i&tue of Resolution No! %A, se&ies of 19%8, of its Boa&( of 3i&ecto&s, 5hich
p&actice 5as continue( b1 the NA9A<A 5hen the latte& too0 o'e& the se&'ice! An( in the collecti'e
ba&gaining ag&ee*ent ente&e( into bet5een the NA9A<A an( &espon(ent unions it 5as ag&ee( that all
eFisting bene6ts enGo1e( b1 the e*plo1ees an( labo&e&s p&io& to its eDecti'it1 shall &e*ain in fo&ce an(
shall fo&* pa&t of the ag&ee*ent, a*ong 5hich ce&tainl1 is the $.M a((itional co*pensation fo& 5o&0 on
<un(a1s an( legal holi(a1s the&efo&e enGo1e( b1 sai( labo&e&s an( e*plo1ees! ,t *a1, the&efo&e, be sai(
that 5hile un(e& Co**on5ealth Act No! %%% a public utilit1 is not &e:ui&e( to pa1 a((itional co*pensation
to its e*plo1ees an( 5o&0e&s fo& 5o&0 (one on <un(a1s an( legal holi(a1s, the&e is, ho5e'e&, no
p&ohibition fo& it to pa1 such a((itional co*pensation if it 'olunta&il1 ag&ees to (o so! )he NA9A<A
co**itte( itself to pa1 this a((itional co*pensation! ,t *ust pa1 not because of co*pulsion of la5 but
because of cont&actual obligation!
3! )his issue &aises the :uestion 5hethe& the inte&'eno&s a&e =*anage&ial e*plo1ees= 5ithin the *eaning
of Republic Act $3AA an( as such a&e not entitle( to the bene6ts of Co**on5ealth Act No! %%%, as
a*en(e(! <ection $ of Republic Act $3AA p&o'i(es!chan&obles 'i&tual la5lib&a&1
=<ec! $! )his Act shall appl1 to all pe&sons e*plo1e( in an1 in(ust&1 o& occupation, 5hethe& public o&
p&i'ate, 5ith the eFception of fa&* labo&e&s, labo&e&s 5ho p&efe& to be pai( on piece 5o&0 basis,
*anage&ial e*plo1ees outsi(e sales pe&sonnel, (o*estic se&'ants H pe&sons in the pe&sonal se&'ice of
anothe& an( *e*be&s of the fa*il1 of the e*plo1e& 5o&0ing fo& hi*!
=)he te&* S*anage&ial e*plo1eeN in this Act shall *ean eithe& -a/ an1 pe&son 5hose p&i*a&1 (ut1 consists
of the *anage*ent of the establish*ent in 5hich he is e*plo1e( o& of a custo*a&il1 &ecogni>e(
(epa&t*ent o& sub(i'ision the&eof, o& -b/ an1 oCce& o& *e*be& of the *anage&ial staD!=c&ala5 'i&tua1a5
lib&a&1
Bne of the (istinguishing cha&acte&istics b1 5hich a *anage&ial e*plo1ee *a1 be 0no5n as eFp&esse( in
the eFplanato&1 note of Republic Act No! $3AA is that he is not subGect to the &igi( obse&'ance of &egula&
oCce hou&s! )he t&ue 5o&th of his se&'ice (oes not (epen( so *uch on the ti*e he spen(s in oCce but
*o&e on the &esults he acco*plishes! ,n fact, he is f&ee to go out of oCce an1ti*e!
Bn the othe& han(, in the +ai& "abo& <tan(a&(s Act of the 2nite( <tates, 5hich 5as ta0en into account b1
the sponso&s of the p&esent Act in (e6ning the (eg&ee of 5o&0 of a *anage&ial e*plo1ee, 5e 6n(
inte&esting the follo5ing (isse&tation of the natu&e of 5o&0 of a *anage&ial e*plo1ee!
=3ecisions ha'e const&ue( an( applie( a &egulation in substance p&o'i(ing that the te&* Sp&ofessionalN
e*plo1ee shall *ean an1 e*plo1ee ! ! ! 5ho is engage( in 5o&0 p&e(o*inantl1 intellectual an( 'a&ie( in
cha&acte&, an( &e:ui&es the consistent eFe&cise of (isc&etion an( Gu(g*ent in its pe&fo&*ance, an( is of
such a cha&acte& that the output p&o(uce( o& the &esult acco*plishe( cannot be stan(a&(i>e( in &elation to
a gi'en pe&io( of ti*e, an( 5hose hou&s of 5o&0 of the sa*e natu&e as that pe&fo&*e( b1 noneFe*pt
e*plo1ees, eFcept 5he&e such 5o&0 is necessa&il1 inci(ent to 5o&0 of a p&ofessional natu&e7 an( 5hich
&e:ui&es, 6&st, 0no5le(ge of an a('ance( t1pe in a 6le( of science o& lea&ning custo*a&il1 ac:ui&e( b1 a
p&olonge( cou&se o& speciali>e( intellectual ac:ui&e( b1 a p&olonge( cou&se o& speciali>e( intellectual
inst&uction an( stu(1, o&, secon(, p&e(o*inantl1 o&iginal an( c&eati'e in cha&acte& in a &ecogni>e( 6le( of
a&tistic en(ea'o&! <t&ange& '! Joca6l* Co&p!, C!C!A! N!L!, 1.1 +! $( 89%, 16$ A!"!R! $167 8ofe& '! +e(e&al
Ca&t&i(ge Co&p!, 3!C! Minn A1 +! <upp! $%37 Aulen '! )&iu*ph EFplosi'e, 3!C! M(!, .8 +! <upp! %!= -.6 C!4!<!,
p! 666/!
=2n(e& the p&o'isions of the +ai& "abo& <tan(a&(s Act $9 2!<!C!A!, <ection $3 -a/ -1/, eFecuti'e e*plo1ees
a&e eFe*pte( f&o* the statuto&1 &e:ui&e*ents as to *ini*u* 5ages o'e&ti*e pa1 ! ! !
=)hus the eFe*ption attaches onl1 5he&e it appea&s that the e*plo1eeNs p&i*a&1 (ut1 consists of the
*anage*ent of the establish*ent o& of a custo*a&il1 &ecogni>e( (epa&t*ent o& sub(i'ision the&eof, that
he custo*a&il1 an( &egula&l1 (i&ects the 5o&0 of othe& e*plo1ees the&ein, that he has the autho&it1 to hi&e
o& (ischa&ge othe& e*plo1ees o& that his suggestions an( &eco**en(ations as to the hi&ing o& (ischa&ging
an( as to the a('ance*ent an( p&o*otion o& an1 othe& change of status of othe& e*plo1ees a&e gi'en
pa&ticula& 5eight, that he custo*a&il1 an( &egula&l1 eFe&cises (isc&etiona&1 po5e&s, ! ! != -.6 C!4!<!, pp! 666#
668!/
=)he te&* Sa(*inist&ati'e e*plo1eeN o&(ina&il1 applies onl1 to an e*plo1ee 5ho is co*pensate( fo& his
se&'ices at a sala&1 o& fee of not less than a p&esc&ibe( su* pe& *onth, an( 5ho &egula&l1 an( (i&ectl1
assists an e*plo1ee e*plo1e( in a bona 6(e eFecuti'e o& a(*inist&ati'e capacit1, 5he&e such assistance
is non*anual in natu&e an( &e:ui&es the eFe&cise of (isc&etion an( in(epen(ent Gu(g*ent7 o& 5ho pe&fo&*s
un(e& onl1 gene&al supe&'ision, &esponsible non*anual oCce o& 6le( 5o&0, (i&ectl1 &elate( to
*anage*ent policies o& gene&al business ope&ations, along speciali>e( o& technical lines &e:ui&ing special
t&aining eFpe&ience, o& 0no5le(ge, an( the eFe&cise of (isc&etion an( in(epen(ent Gu(g*ent7 ! ! != -.6
C!4!<!, p! 6A1!/
=)he &eason un(e&l1ing each eFe*ption is in &ealit1 appa&ent! EFecuti'e, a(*inist&ati'e an( p&ofessional
5o&0e&s a&e not usuall1 e*plo1e( at hou&l1 5ages no& is it feasible in the case of such e*plo1ees to
p&o'i(e a 6Fe( hou&l1 &ate of pa1 no& *aFi*u* hou&s of labo&, 8elena len(ale +e&&1 Co! '! 9alling, C!C!A!
A&0! 13$ +! $( 616, 619,= -.6 C!4!<!, p! 66%!/
)he philosoph1 behin( the eFe*ption of *anage&ial e*plo1ees f&o* the 8#8ou& "abo& "a5 is that such
5o&0e&s a&e not usuall1 e*plo1e( fo& e'e&1 hou& of 5o&0 but thei& co*pensation is (ete&*ine( consi(e&ing
thei& special t&aining, eFpe&ience o& 0no5le(ge 5hich &e:ui&es the eFe&cise of (isc&etion an( in(epen(ent
Gu(g*ent, o& pe&fo&* 5o&0 &elate( to *anage*ent policies o& gene&al business ope&ations along
speciali>e( o& technical lines! +o& these 5o&0e&s it is not feasible to p&o'i(e a 6Fe( hou&l1 &ate of pa1 o&
*aFi*u* hou&s of labo&!
)he inte&'eno&s he&ein a&e hol(ing position of &esponsibilit1! Bne of the* is the <ec&eta&1 of the Boa&( of
3i&ecto&s! Anothe& is the p&i'ate sec&eta&1 of the gene&al *anage&! Anothe& is a public &elations oCce&, an(
*an1 chiefs of (i'isions o& sections an( othe&s a&e supe&'iso&s an( o'e&see&s! Respon(ent cou&t, ho5e'e&,
afte& eFa*ining ca&efull1 thei& &especti'e functions, (uties an( &esponsibilities foun( that thei& p&i*a&1
(uties (o not bea& an1 (i&ect &elation 5ith the *anage*ent of the NA9A<A, no& (o the1 pa&ticipate in the
fo&*ulation of its policies no& in the hi&ing an( 6&ing of its e*plo1ees! )he chiefs of (i'isions an( sections
a&e gi'en &ea(1 policies to eFecute an( stan(a&( p&actices to obse&'e fo& thei& eFecution! 8ence, it
conclu(es, the1 ha'e little f&ee(o* of action, as thei& *ain function is *e&el1 to ca&&1 out the co*pan1Ns
o&(e&s, plans an( policies!
)o the fo&egoing co**ent, 5e ag&ee! As a *atte& of fact, the1 a&e &e:ui&e( to obse&'e 5o&0ing hou&s an(
&eco&( thei& ti*e 5o&0 an( a&e not f&ee to co*e an( go to thei& oCces, no& *o'e about at thei& o5n
(isc&etion! )he1 (o not, the&efo&e, co*e 5ithin the catego&1 of =*anage&ial e*plo1ees= 5ithin the
*eaning of the la5!
%! Petitione&Ns clai* is that the issue of o'e&ti*e co*pensation not ha'ing been &aise( in the o&iginal case
but *e&el1 (&agge( into it b1 inte&'eno&s, &espon(ent cou&t cannot ta0e cogni>ance the&eof un(e& <ection
1, Rule 13, of the Rules of Cou&t!
,nte&'eno&s 6le( a petition fo& inte&'ention alleging that being e*plo1ees of petitione& 5ho ha'e 5o&0e( at
night since 19.% 5ithout ha'ing been full1 co*pensate( the1 (esi&e to inte&'ene insofa& as the pa1*ent
of thei& night 5o&0 is conce&ne(! Petitione& oppose( the petition on the g&oun( that this *atte& 5as not in
the o&iginal case since it 5as not inclu(e( in the (ispute ce&ti6e( b1 the P&esi(ent of the Philippines to the
Cou&t of ,n(ust&ial Relations! )he opposition 5as o'e&&ule(! )his is no5 assigne( as e&&o&!
)he&e is no (ispute that the inte&'eno&s 5e&e in the e*plo1 of petitione& 5hen the1 inte&'ene( an( that
thei& clai* &efe&s to the 8# 8ou& "abo& "a5 an( since this Cou&t has hel( ti*e an( again that (isputes that
call fo& the application of the 8#8ou& "abo& "a5 a&e 5ithin the Gu&is(iction of the Cou&t of ,n(ust&ial
Relations if the1 a&ise 5hile the e*plo1e&#e*plo1ee &elationship still eFists, it is clea& that the *atte&
subGect of inte&'ention co*es 5ithin the Gu&is(iction of &espon(ent cou&t! 1 )he fact that the :uestion of
o'e&ti*e pa1*ent is not inclu(e( in the p&incipal case in the sense that it is not one of the ite*s of (ispute
ce&ti6e( to b1 the P&esi(ent is of no *o*ent, fo& it co*es 5ithin the soun( (isc&etion of the Cou&t of
,n(ust&ial Relations! Mo&eo'e&, in labo& (isputes technicalities of p&oce(u&e shoul( as *uch as possible be
a'oi(e( not onl1 in the inte&est of labo& but to a'oi( *ultiplicit1 of action! )his clai* has no *e&it!
.! ,t is clai*e( that so*e inte&'eno&s a&e occup1ing positions in the ene&al Au(iting BCce an( in the
Bu&eau of Public 9o&0s fo& the1 a&e appointe( eithe& b1 the Au(ito& ene&al o& b1 the <ec&eta&1 of Public
9o&0s an(, conse:uentl1, the1 a&e not oCce&s of the NA9A<A but of the insula& go'e&n*ent, an( as such
a&e not co'e&e( b1 the Eight#8ou& "abo& "a5!
)he status of the AB e*plo1ees assigne( to, an( 5o&0ing in, go'e&n*ent#cont&olle( co&po&ations has
al&ea(1 been (eci(e( b1 this Cou&t in National Ma&0eting Co&po&ation, Et! Al! '! Cou&t of ,n(ust&ial
Relations, Et Al!, "#1A80%, 4anua&1 31, 1963! ,n sai( case, this Cou&t sai(;Ggc;chan&obles!co*!ph
=9e ag&ee 5ith appellants that *e*be&s of the au(iting fo&ce can not be &ega&(e( as e*plo1ees of the
PR,<CB in *atte&s &elating to thei& co*pensation! )he1 a&e appointe( an( supe&'ise( b1 the Au(ito&
ene&al, ha'e an in(epen(ent tenu&e, an( 5o&0 subGect to his o&(e&s an( inst&uctions, an( not to those of
the *anage*ent of appellants! Abo'e all, the natu&e of thei& functions an( (uties, fo& the pu&pose of 6scal
cont&ol of appellantNs ope&ations, i*pe&ati'el1 (e*an(s, as a *atte& of polic1, that thei& positions be
co*pletel1 in(epen(ent f&o* inte&fe&ence o& in(uce*ent on the pa&t of the supe&'ise( *anage*ent, in
o&(e& to assu&e a *aFi*u* of i*pa&tialit1 &e:ui&e that the e*plo1ees in :uestion be utte&l1 f&ee f&o*
app&ehension as to thei& tenu&e an( f&o* eFpectanc1 of bene6ts &esulting f&o* an1 action of the
*anage*ent, since in eithe& case the&e 5oul( be an inKuence at 5o&0 that coul( possibl1 lea(, if not to
positi'e *alfeasance, to laFit1 an( in(iDe&ence that 5oul( g&a(uall1 e&o(e an( en(ange& the c&itical
supe&'ision ent&uste( to these au(iting e*plo1ees!
=)he inclusion of thei& ite*s in the PR,<CB bu(get shoul( be 'ie5e( as no *o&e than a (esignation b1 the
national go'e&n*ent of the fun( o& sou&ce f&o* 5hich thei& e*olu*ents a&e to be (&a5n, an( (oes not
signif1 that the1 a&e the&eb1 *a(e PR,<CB e*plo1ees!=c&ala5 'i&tua1a5 lib&a&1
)he AB e*plo1ees assigne( to the NA9A<A a&e eFactl1 in the sa*e position &ega&(ing thei& status,
co*pensation an( &ight to o'e&ti*e pa1 as the &est of the AB e*plo1ees assigne( to the (efunct PR,<CB,
an( follo5ing ou& &uling in the PR,<CB case, 5e hol( that the AB e*plo1ees he&ein a&e not co'e&e( b1
the 8#8ou& "abo& "a5, but b1 othe& pe&tinent la5s on the *atte&!
)he sa*e thing *a1 be sai( 5ith &ega&( to the e*plo1ees of the Bu&eau of Public 9o&0s assigne( to, an(
5o&0ing in, the NA9A<A! )hei& position is the sa*e as that of the AB e*plo1ees! )he&efo&e, the1 a&e not
also co'e&e( b1 the 8#8ou& "abo& "a5!
)he &espon(ent cou&t, the&efo&e, e&&e( in consi(e&ing the* as e*plo1ees of the NA9A<A fo& the *e&e
&eason that the1 a&e pai( out of its fun( an( a&e subGect to its a(*inist&ation an( supe&'ision!
6! A 5o&0e& is entitle( to o'e&ti*e pa1 onl1 fo& 5o&0 in actual se&'ice be1on( eight hou&s! ,f a 5o&0e&
shoul( incu& in un(e&ti*e (u&ing his &egula& (ail1 5o&0, shoul( sai( un(e&ti*e be (e(ucte( in co*puting
his o'e&ti*e 5o&0R Petitione& sustains the aC&*ati'e, 5hile &espon(ent unions the negati'e, an(
&espon(ent cou&t (eci(e( the (ispute in fa'o& of the latte&! hence this e&&o&!
)he&e is *e&it in the (ecision of &espon(ent cou&t that the *etho( use( b1 petitione& in oDsetting the
o'e&ti*e 5ith the un(e&ti*e an( at the sa*e ti*e cha&ging sai( un(e&ti*e to the acc&ue( lea'e of the
e*plo1ee is unfai&, fo& un(e& such *etho( the e*plo1ee is *a(e to pa1 t5ice fo& his un(e&ti*e because
his lea'e is &e(uce( to that eFtent 5hile he 5as *a(e to pa1 fo& it 5ith 5o&0 be1on( the &egula& 5o&0ing
hou&s! )he p&ope& *etho( shoul( be to (e(uct the un(e&ti*e f&o* the acc&ue( lea'e but pa1 the
e*plo1ee the o'e&ti*e to 5hich he is entitle(! )his *etho( also ob'iates the i&&egula& sche(ule that 5oul(
&esult if the o'e&ti*e shoul( be set oD against the un(e&ti*e fo& that 5oul( place the sche(ule fo& 5o&0ing
hou&s (epen(ent on the e*plo1ee!
A! an( 8! 8o5 is a (ail1 5age of a 5ee0l1 e*plo1ee co*pute( in the light of Republic Act 1880R
Acco&(ing to petitione&, the (ail1 5age shoul( be co*pute( eFclusi'el1 on the basic 5age 5ithout
inclu(ing the auto*atic inc&ease of $.M co&&espon(ing to the <un(a1 (iDe&ential! )o inclu(e sai( <un(a1
(iDe&ential 5oul( be to inc&ease the basic pa1 5hich is not conte*plate( b1 sai( Act! Respon(ent cou&t
(isag&ees 5ith this *anne& of co*putation! ,t hol(s that Republic Act 1880 &e:ui&es that the basic 5ee0l1
5age an( the basic *onthl1 sala&1 shoul( not be (i*inishe( not5ithstan(ing the &e(uction in the nu*be&
of 5o&0ing (a1s a 5ee0! ,f the auto*atic inc&ease co&&espon(ing to the sala&1 (iDe&ential shoul( not be
inclu(e( the&e 5oul( be a (i*inution of the 5ee0l1 5age of the labo&e& conce&ne(! Bf cou&se, this shoul(
onl1 bene6t those 5ho ha'e been 5o&0ing se'en (a1s a 5ee0 an( ha( been &egula&l1 &ecei'ing $.M
a((itional co*pensation fo& <un(a1 5o&0 befo&e the eDecti'it1 of the Act!
,t is e'i(ent that Republic Act 1880 (oes not inten( to &aise the 5ages of the e*plo1ees o'e& 5hat the1
a&e actuall1 &ecei'ing! Rathe&, its pu&pose is to li*it the 5o&0ing (a1s in a 5ee0 to 6'e (a1s, o& to %0 hou&s
5ithout ho5e'e& pe&*itting an1 &e(uction in the 5ee0l1 o& (ail1 5age of the co*pensation 5hich 5as
p&e'iousl1 &ecei'e(! )he :uestion then to be (ete&*ine( is; 9hat is *eant b1 5ee0l1 o& (ail1 5ageR 3oes
the &egula& 5age inclu(e (iDe&ential pa1*ents fo& 5o&0 on <un(a1s o& at nights, o& is it the total a*ount
&ecei'e( b1 the labo&e& fo& 5hate'e& natu&e o& conceptR
,t has been hel( that fo& pu&poses of co*puting o'e&ti*e co*pensation a &egula& 5age inclu(es all
pa1*ents 5hich the pa&ties ha'e ag&ee( shall be &ecei'e( (u&ing the 5o&0 5ee0, inclu(ing piece# 5o&0
5ages, (iDe&ential pa1*ents fo& 5o&0ing at un(esi&able ti*es, such as at night o& on <un(a1s an(
holi(a1s, an( the cost of boa&( an( lo(ging custo*a&il1 fu&nishe( the e*plo1ee -9alling '! Lange&*an#
Re1nol(s 8a&(5oo0 Co!, 3$. 2! <! %19, 9alling '! 8a&ischfege& Co&p!, 3$. 2!<! %$A/! )he =&egula& &ate= of
pa1 also o&(ina&il1 inclu(es incenti'es bonus o& p&o6t#sha&ing pa1*ents *a(e in a((ition to the no&*al
basic pa1 -.6 C!4!<!, pp! A0%#A0./, an( it 5as also hel( that the highe& &ate fo& night, <un(a1 an( holi(a1
5o&0 is Gust as *uch a &egula& &ate as the lo5e& &ate fo& (a1ti*e 5o&0! )he highe& &ate is *e&el1 an
in(uce*ent to accept e*plo1*ent at ti*es 5hich a&e not as (esi&able f&o* a 5o&0*anNs stan(point
-,nte&national "! AssNn! '! National )e&*inals Co&p! C! C! 9isc! .0 +! <upp! $6, aC&*e( C!C!A! Ca&bunao '!
National )e&*inals Co&p! 139 +! $( 8.3/!
Respon(ent cou&t, the&efo&e, co&&ectl1 inclu(e( such (iDe&ential pa1 in co*puting the 5ee0l1 5ages of
those e*plo1ees an( labo&e&s 5ho 5o&0e( se'en (a1s a 5ee0 an( 5e&e continuousl1 &ecei'ing $.M
<un(a1 (iDe&ential fo& a pe&io( of th&ee *onths i**e(iatel1 p&ece(ing the i*ple*entation of Republic Act
1880!
)he neFt issue &efe&s to the *etho( of co*puting the (ail1 &ate of a *onthl1 sala&ie( e*plo1ee! Petitione&
in co*puting this (ail1 &ate (i'i(es the *onthl1 basic pa1 of the e*plo1ee b1 30 in acco&(ance 5ith
<ection $.% of the Re'ise( A(*inist&ati'e Co(e 5hich in pa&t p&o'i(es that =,n *a0ing pa1*ent fo& pa&t of
a *onth, the a*ount to be pai( fo& each (a1 shall be (ete&*ine( b1 (i'i(ing the *onthl1 pa1 into as
*an1 pa&ts as the&e a&e (a1s in the pa&ticula& *onth!= )he &espon(ent cou&t (isag&ees 5ith this *etho(
an( hol(s that the 5a1 to (ete&*ine the (ail1 &ate of a *onthl1 e*plo1ee is to (i'i(e the *onthl1 sala&1
b1 the actual nu*be& of 5o&0ing hou&s in the *onth! )hus, acco&(ing to &espon(ent cou&t, <ection 8-g/ of
Republic Act No! 1161, as a*en(e( b1 Republic Act 1A9$, p&o'i(es that the (ail1 &ate of co*pensation is
the total &egula& co*pensation fo& the custo*a&1 nu*be& of hou&s 5o&0e( each (a1! ,n othe& 5o&(s,
acco&(ing to &espon(ent cou&t, the co&&ect co*putation shall be -a/ the *onthl1 sala&1 (i'i(e( b1 the
actual nu*be& of 5o&0ing hou&s in a *onth o& -b/ the &egula& *onthl1 co*pensation (i'i(e( b1 the
nu*be& of 5o&0ing (a1s in a *onth!
)his 6n(ing of &espon(ent cou&t shoul( be *o(i6e( insofa& as the e*plo1ees of the ene&al Au(iting
BCce an( of the Bu&eau of Public 9o&0s assigne( to 5o&0 in the NA9A<A a&e conce&ne( fo&, as al&ea(1
state(, the1 a&e go'e&n*ent e*plo1ees an( shoul( be go'e&ne( b1 <ection $.% of the Re'ise(
A(*inist&ati'e Co(e! )his section p&o'i(es that in *a0ing pa1*ent fo& pa&t of a *onth, the a*ount to be
pai( fo& each (a1 shall be (ete&*ine( b1 (i'i(ing the *onthl1 pa1 into as *an1 pa&ts as the&e a&e (a1s in
the pa&ticula& *onth! 9ith this *o(i6cation 5e 6n( co&&ect the 6n(ing of the &espon(ent cou&t on this
issue!
9! )he Cou&t of ,n(ust&ial Relations a5a&(e( an a((itional $.M night co*pensation to so*e 5o&0e&s 5ith
&et&oacti'e eDect, that is, eDecti'e e'en befo&e the p&esentation of the clai*, p&o'i(e( that the1 ha( been
gi'en autho&i>ation b1 the gene&al *anage& to pe&fo&* night 5o&0! ,t is petitione&Ns theo&1 that since the&e
is no statute &e:ui&ing pa1*ent of a((itional co*pensation fo& night 5o&0 but it can onl1 be g&ante( eithe&
b1 the 'olunta&1 act of the e*plo1e& o& b1 an a5a&( of the in(ust&ial cou&t un(e& its co*pulso&1 a&bit&ation
po5e&, such g&ant shoul( onl1 be p&ospecti'e in ope&ation, an( not &et&oacti'e, as autho&i>e( b1 the cou&t!
,t is of co**on occu&&ence that a 5o&0ing *an 5ho has al&ea(1 &en(e&e( night ti*e se&'ice ta0es hi* a
long ti*e befo&e he can *uste& enough cou&age to conf&ont his e*plo1e& 5ith the (e*an( fo& pa1*ent fo&
it fo& fea& of possible &ep&isal! ,t happens that *an1 *onths o& 1ea&s a&e allo5e( to pass b1 befo&e he
coul( be *a(e to p&esent such clai* against his e*plo1e&, an( so it is neithe& fai& no& Gust that he be
(ep&i'e( of 5hat is (ue hi* si*pl1 because of his silence fo& fea& of losing the *eans of his li'elihoo(!
8ence, it is not e&&oneous fo& the Cou&t of ,n(ust&ial Relations to *a0e the pa1*ent of such night
co*pensation &et&oacti'e to the (ate 5hen the 5o&0 5as actuall1 pe&fo&*e(!
)he po5e& of the Cou&t of ,n(ust&ial Relations to o&(e& the pa1*ent of co*pensation fo& o'e&ti*e se&'ice
p&io& to the (ate of the 6ling of the clai* has been &ecogni>e( b1 this Cou&t -"u>on <te'e(o&ing Co!, ,nc! '!
"u>on Ma&ine 3epa&t*ent 2nion, Et Al!, "#9$6., Ap&il $9, 19.A/! )he sa*e &easons gi'en the&ein fo& the
&et&oacti'it1 of o'e&ti*e co*pensation *a1 also be gi'en fo& the &et&oacti'it1 of pa1*ent of night
co*pensation, as such &easoning &uns along the line al&ea(1 abo'estate(!
10! )he Cou&t of ,n(ust&ial Relations in its &esolution (ate( No'e*be& $., 19.0 issue( in Case No! 3.9#J
entitle( M93 9o&0e&s 2nion, Et! Al! '! Met&opolitan 9ate& 3ist&ict, 6Fe( the follo5ing &ates of *ini*u*
(ail1 5age; P.!$. fo& those 5o&0ing in Manila an( subu&bs7 P%!.0 fo& those 5o&0ing in Oue>on Cit17 an(
P%!00, fo& those 5o&0ing in ,po, Montalban an( Bala&a! ,t appea&s that in spite of the notice to te&*inate
sai( a5a&( 6le( 5ith the cou&t on 3ece*be& $9, 19.3, the Met&opolitan 9ate& 3ist&ict continue( pa1ing
the abo'e 5ages an( the NA9A<A 5hich succee(e( it a(opte( the sa*e &ates fo& so*eti*e! ,n
<epte*be&, 19.., the NA9A<A hi&e( the clai*ants as te*po&a&1 5o&0e&s an( it is no5 conten(e( that sai(
&ates cannot appl1 to these 5o&0e&s!
)he Cou&t of ,n(ust&ial Relations, ho5e'e&, hel( that the (iscontinuance of this *ini*u* 5age &ates 5as
i*p&ope& an( o&(e&e( the pa1*ent of the (iDe&ence to sai( 5o&0e&s f&o* the (ate the pa1*ent of sai(
&ates 5as (iscontinue(, a('ancing, a*ong othe&s, the follo5ing &easons; that the &esolution of No'e*be&
$., 19.0 is applicable not onl1 to those labo&e&s al&ea(1 in the se&'ice but also to those 5ho *a1 be
e*plo1e( the&eafte&7 the notice of te&*ination of sai( a5a&( gi'en on 3ece*be& $9, 19.3 is not legall1
eDecti'e because the sa*e 5as gi'en 5ithout hea&ing an( the e*plo1e& continue( pa1ing the *ini*u*
5ages e'en afte& the notice of te&*ination7 an( the&e is no sho5ing that the *ini*u* 5ages 'iolate Ci'il
<e&'ice "a5 o& the p&inciples un(e&l1ing the 9APCB!
9e 6n( no 'ali( &eason to (isag&ee 5ith the fo&egoing 6n(ing of the Cou&t of ,n(ust&ial Relations
consi(e&ing that the a5a&( continue( to be 'ali( an( eDecti'e in spite of the notice of te&*ination gi'en b1
the e*plo1e&! No goo( &eason is seen 5h1 such a5a&( shoul( not appl1 to those 5ho *a1 be e*plo1e(
afte& its app&o'al b1 the cou&t the&e being nothing the&ein that *a1 p&e'ent its eFtension to the*!
Mo&eo'e&, the in(ust&ial cou&t can at an1 ti*e (u&ing the eDecti'eness of an a5a&( alte& an( *o(if1 in
5hole o& in pa&t sai( a5a&( o& &eopen an1 :uestion in'ol'e( the&ein un(e& <ection 1A of Co**on5ealth
Act No! 103, an( such is 5hat sai( cou&t has (one 5hen it *a(e the a5a&( eFtensi'e to the ne5
e*plo1ees, *o&e so 5hen the1 a&e si*ila&l1 situate(! )o (o othe&5ise 5oul( be to foste& (isc&i*ination!
11! )his issue has to (o 5ith the *eaning of =(ist&ess pa1!= Pa&ag&aph 3, A&ticle J,,,, of the collecti'e
ba&gaining ag&ee*ent ente&e( into bet5een the e*plo1e& an( &espon(ent unions,
p&o'i(es;Ggc;chan&obles!co*!ph
=Because of the peculia& natu&e of the function of those e*plo1ees an( labo&e&s of the <e5e&age 3i'ision
5ho actuall1 5o&0 in the se5e&age cha*be&s, causing S2nusual (ist&essN to the*, the1 shall &ecei'e eFt&a
co*pensation e:ui'alent to t5ent1#6'e pe&cent -$.M/ of thei& basic 5age!=c&ala5 'i&tua1a5 lib&a&1
Pu&suant to sai( ag&ee*ent, a g&ie'ance co**ittee 5as eFecute( co*pose( of &ep&esentati'es of
*anage*ent an( labo& 5hich a(opte( the follo5ing &esolution;Ggc;chan&obles!co*!ph
=Resolution No! 9
<e&ies of 19.A
BE ,) RE<B"JE3, )hat the e*plo1ees an( labo&e&s of the <e5e&age 3i'ision 5ho actuall1 5o&0 in the
se5e&age cha*be&s causing unusual (ist&ess to the*, be pai( eFt&a co*pensation e:ui'alent to $.M of
thei& basic 5age, as e*bo(ie( in A&ticle J,,,, Pa&ag&aph 3 of the Collecti'e Ba&gaining Ag&ee*ent7
PRBJ,3E3, ho5e'e&, that an1 e*plo1ee 5ho *a1 be &e:ui&e( to 5o&0 actuall1 in the se5e&age cha*be&s
shall also be pai( $.M eFt&a co*pensation an(, PRBJ,3E3 +2R)8ER, that the te&* Sse5e&age cha*be&N
shall inclu(e pits, t&enches, an( othe& eFca'ations that a&e necessa&1 to tap the se5e& line, an( PRBJ,3E3
+,NA""L that this 5ill not p&eGu(ice an1 labo&e& o& e*plo1ee 5ho *a1 be inclu(e( in one 5a1 o& anothe& in
the te&* Sunusual (ist&essN 5ithin the pu&'ie5 of Pa&ag&aph 3 of A&ticle J,,,, of the Collecti'e Ba&gaining
Ag&ee*ent!=c&ala5 'i&tua1a5 lib&a&1
An( in a confe&ence hel( bet5een *anage*ent an( labo& on No'e*be& $., 19.A, the follo5ing 5as
ag&ee( upon =3ist&ess#Manage*ent ag&ee( to pa1 eDecti'e Bctobe& 1, 19.6 $.M a((itional co*pensation
fo& those 5ho actuall1 5o&0 in an( outsi(e se5e&age cha*be& in acco&(ance 5ith Resolution No! 9 of the
&ie'ance Co**ittee!=c&ala5 'i&tua1a5 lib&a&1
)he :uestion that a&ose in connection 5ith this (ist&ess pa1 is 5ith &ega&( to the *eaning of the ph&ase
=5ho actuall1 5o&0 in an( outsi(e se5e&age cha*be&s!= Petitione& conten(s that the (ist&ess pa1 shoul(
be gi'en onl1 to those 5ho actuall1 5o&0 insi(e the se5e&age cha*be&s 5hile the union *aintains that
such pa1 shoul( be gi'en to all those 5hose 5o&0 ha'e to (o 5ith the se5e&age cha*be&s, 5hethe& insi(e
o& outsi(e! )he Cou&t of ,n(ust&ial Relations sustaine( the latte& 'ie5 hol(ing that the (ist&ess pa1 shoul(
be gi'en to those 5ho actuall1 5o&0 in an( outsi(e the se5e&age cha*be&s eDecti'e Bctobe& 1, 19.6! )his
'ie5 is no5 (ispute( b1 petitione&!chan&obles 'i&tual la5lib&a&1
)he solution of the p&esent issue hinges upon the inte&p&etation of pa&ag&aph 3, A&ticle J,,, of the collecti'e
ba&gaining ag&ee*ent, copie( abo'e, as eFplaine( b1 Resolution No! 9, an( the ag&ee*ent of No'e*be&
$., 19A., also copie( abo'e, 5hich stipulation has to be inte&p&ete( as a 5hole pu&suant to A&ticle 13A% of
the Ci'il Co(e! As thus inte&p&ete(, 5e 6n( that those 5ho a&e entitle( to the (ist&ess pa1 a&e those
e*plo1ees an( labo&e&s 5ho 5o&0 in the se5e&age cha*be&s 5hethe& the1 belong to the se5e&age
(i'ision o& not, an( b1 se5e&age cha*be&s shoul( be un(e&stoo( to *ean as the su&&oun(ings 5he&e the
5o&0 is actuall1 (one, not necessa&il1 =insi(e the se5e&age cha*be&s!= )his is clea&l1 infe&&e( f&o* the
confe&ence hel( in the 3epa&t*ent of "abo& on No'e*be& $., 19.A 5he&e it 5as ag&ee( that the
co*pensation shoul( be pai( to those 5ho 5o&0 =in an( outsi(e= the se5e&age cha*be&s in acco&(ance
5ith the te&*s of Resolution No! 9 of the &ie'ance Co**ittee! ,t shoul( be note( that, acco&(ing to sai(
&esolution, se5e&age cha*be&s inclu(e =pits, t&enches, an( othe& eFca'ations that a&e necessa&1 to tap the
se5e& lines!= An( the &eason gi'en fo& this eFt&a co*pensation is the =unusual (ist&ess= that is cause( to
the labo&e&s b1 5o&0ing in the se5e&age cha*be&s in the fo&* an( eFtent abo'e*entione(!
,t is clea& then that all the labo&e&s 5hethe& of the se5e&age (i'ision o& not assigne( to 5o&0 in an( outsi(e
the se5e&age cha*be&s an( suDe&ing unusual (ist&ess because of the natu&e of thei& 5o&0 a&e entitle( to
the eFt&a co*pensation! An( this conclusion is fu&the& bolste&e( b1 the 6n(ings of the in(ust&ial cou&t
&ega&(ing the *ain acti'ities of the se5e&age (i'ision!
)hus, the Cou&t of ,n(ust&ial Relations foun( that the se5e&age (i'ision has th&ee *ain acti'ities, to 5it; -a/
coope&ation of the se5e&age pu*ping stations7 -b/ cleaning an( *aintenance of se5e& *ains7 an( -c/
installation an( &epai&s of house se5e& connections!
)he pu*p ope&ato&s an( the se5e& atten(ants in the se'en pu*ping stations in Manila, acco&(ing to the
in(ust&ial cou&t, suDe& unusual (ist&ess! )he pu*p ope&ato&s ha'e to go to the 5et pit to see ho5 the
cleaning of the sc&een p&otecting the pu*p is being pe&fo&*e(, an( go also to the (&1 pit abutting the 5et
pit to *a0e &epai&s in the b&ea0(o5n of the pu*ps! Although the ope&ato&s use( to sta1 nea& the *oto&
5hich is but a fe5 *ete&s f&o* the pu*p, the1 una'oi(abl1 s*ell the foul o(o& e*itting f&o* the pit! )he
se5e&age atten(ants go (o5n an( 5o&0 in the 5et pit containing se5e&age *ate&ials in o&(e& to clean the
sc&een!
A g&oup assigne( to the cleaning an( *aintenance of the se5e& *ains 5hich a&e locate( in the *i((le of
the st&eets of Manila is usuall1 co*pose( of a capata> an( fou& se5e&age atten(ants! )hese atten(ants a&e
&otate( in going insi(e the *anholes, ope&ation of the 5in(o5 glass, bailing out f&o* the *ain to the
*anhole an( in suppl1ing the 5ate& se&'ice as necessit1 (e*an(s! )hese atten(ants co*e into contact
5ith (i&t, stin0 an( s*ell, (a&0ness an( heat insi(e an( nea& the se5age pipes! )he capata> goes f&o* one
*anhole to anothe& seeing to it that the 5o&0 is p&ope&l1 pe&fo&*e( an( as such also suDe&s unusual
(ist&ess although to a lesse& (eg&ee!
)he g&oup assigne( to the thi&( 0in( of acti'it1 is also usuall1 co*pose( of a capata> an( fou& atten(ants!
)hei& 5o&0 is to connect se5e& pipes f&o* houses to the se5e& *ains an( to (o this the1 eFca'ate the
t&ench ac&oss the st&eet f&o* the p&ope& line to the se5e& *ain an( then the1 install the pipe afte& tapping
the se5e& *ain! ,n the tapping, the se5e& pipe is opene( an( so the se5e&age gets out an( 6lls up the
t&ench an( the *en ha'e to 5a(e in an( 5o&0 5ith the se5e&age 5ate&! )he capata> has to go nea& the
6lth1 eFca'ations o& t&enches full of 6lth1 se5e&age *atte& to ai( the atten(ants in *a0ing pipe
connections, especiall1 5hen these a&e co*plicate(!
,t cannot the&efo&e be gainsai( that all these labo&e&s suDe& unusual (ist&ess! )he 5et pits, t&enches,
*anholes, 5hich a&e full of se5age *atte&s, a&e 6lth1 sou&ces of ge&*s an( (iDe&ent (iseases! )he1 e*it
foul an( 6lth1 o(o& (ange&ous to health! )hose 5o&0ing in such places a&e eFpose( (i&ectl1 to the (ist&ess
of conta*ination!
P&e*ises consi(e&e(, the (ecision of the Cou&t of ,n(ust&ial Relations in this &espect shoul( be *o(i6e( in
the sense that all e*plo1ees an( labo&e&s, 5hethe& o& not the1 belong to the se5e&age (i'ision, 5ho
actuall1 5o&0 in an( outsi(e the se5e&age cha*be&s, shoul( be pai( the (ist&ess pa1 o& the eFt&a
co*pensation e:ui'alent to $.M of thei& basic 5age eDecti'e Bctobe& 1, 19.6!
1$! Bn August 6, 19.A, the NA9A<A &e:ueste( the P&esi(ent of the Philippines fo& eFe*ption f&o*
EFecuti'e B&(e& No! $.1 5hich p&esc&ibes the oCce hou&s to be obse&'e( in go'e&n*ent an( go'e&n*ent#
o5ne( o& cont&olle( co&po&ations in o&(e& that it coul( stagge& the 5o&0ing hou&s of its e*plo1ees an(
labo&e&s! )he &e:uest is base( on the fact that the&e a&e essential an( in(ispensable phases in the
ope&ation of the NA9A<A that a&e &e:ui&e( to be atten(e( to continuousl1 fo& t5ent1#fou& hou&s fo& the
enti&e se'en (a1s of the 5ee0 5ithout inte&&uption so*e of 5hich being the 5o&0 pe&fo&*e( b1 pu*p
ope&ato&s, 'al'e ope&ato&s, 6lte& ope&ato&s, chlo&ine ope&ato&s, 5atch*en an( gua&(s, an( *e(ical
pe&sonnel! )his &e:uest 5as g&ante( an(, acco&(ingl1, the NA9A<A stagge&e( the 5o&0 sche(ule of the
e*plo1ees an( labo&e&s pe&fo&*ing the acti'ities abo'e*entione(! Respon(ent unions p&oteste( against
this stagge&ing sche(ule of 5o&0 an( this p&otest ha'ing been unhee(e(, the1 b&ought the *atte& to the
Cou&t of ,n(ust&ial Relations!
,n &esol'ing this issue, the in(ust&ial cou&t Gusti6e( the stagge&ing of the 5o&0 (a1s of those hol(ing
positions as pu*p ope&ato&s, 'al'e ope&ato&s, 6lte& ope&ato&s, chlo&ine ope&ato&s, 5atch*en an( gua&(s,
an( those in the *e(ical se&'ice fo& the &eason that the sa*e 5as *a(e pu&suant to the autho&it1 g&ante(
b1 the P&esi(ent 5ho in the 'ali( eFe&cise of the po5e&s confe&&e( upon hi* b1 Republic Act No! 1880
coul( p&esc&ibe the 5o&0ing (a1s of e*plo1ees an( labo&e&s in go'e&n*ent#o5ne( an( cont&olle(
co&po&ations (epen(ing upon the eFigencies of the se&'ice! )he cou&t, ho5e'e&, state( that the stagge&ing
shoul( not appl1 to the pe&sonnel in the const&uction, se5e&age, *aintenance, *achine&ies an( shops
because the1 5o&0 belo5 36. (a1s a 1ea& an( thei& se&'ices a&e not continuous to &e:ui&e stagge&ing!
+&o* this po&tion of the (ecision, the petitione& appeals!
Consi(e&ing that &espon(ent cou&t foun( that the 5o&0e&s in :uestion 5o&0 less than 36. (a1s a 1ea& an(
thei& se&'ice a&e not continuous to &e:ui&e stagge&ing, 5e see no &eason to (istu&b this 6n(ing! )his is
cont&a&1 to the 'e&1 essence of the &e:uest that the stagge&ing shoul( be *a(e onl1 5ith &ega&( to those
phases of the ope&ation of the NA9A<A that ha'e to be atten(e( to continuousl1 fo& t5ent1#fou& hou&s
5ithout inte&&uption 5hich ce&tainl1 cannot appl1 to the 5o&0e&s *entione( in the last pa&t of the (ecision
of the &espon(ent cou&t on the *atte&!
RECAP,)2"A),BN
,n &esu*T, this Cou&t hol(s;chan&ob1es 'i&tual 1a5 lib&a&1
-1/ )he NA9A<A, though a public co&po&ation, (oes not pe&fo&* go'e&n*ental functions! ,t pe&fo&*s
p&op&ieta&1 functions, an( hence, it is co'e&e( b1 Co**on5ealth Act No! %%%7
-$/ )he NA9A<A is a public utilit1! Although pu&suant to <ection % of Co**on5ealth Act %%% it is not
oblige( to pa1 an a((itional su* of $.M to its labo&e&s fo& 5o&0 (one on <un(a1s an( legal holi(a1s, 1et it
*ust pa1 sai( a((itional co*pensation b1 'i&tue of the cont&actual obligation it assu*e( un(e& the
collecti'e ba&gaining ag&ee*ent7
-3/ )he inte&'eno&s a&e not =*anage&ial e*plo1ees= as (e6ne( in Republic Act No! $3AA, hence the1 a&e
co'e&e( b1 Co**on5ealth Act No! %%%, as a*en(e(7
-%/ )he Cou&t of ,n(ust&ial Relations has Gu&is(iction to a(Gu(icate o'e&ti*e pa1 in the case at ba& the&e
being an e*plo1e&# e*plo1ee &elationship eFisting bet5een inte&'eno&s an( petitione&7
-./ )he AB e*plo1ees assigne( to 5o&0 in the NA9A<A cannot be &ega&(e( as e*plo1ees of the NA9A<A
on *atte&s &elating to co*pensation! )he1 a&e e*plo1ees of the national go'e&n*ent an( a&e not co'e&e(
b1 the Eight#8ou& "abo& "a5! )he sa*e *a1 be sai( of the e*plo1ees of the Bu&eau of Public 9o&0s
assigne( to 5o&0 in the NA9A<A7
-6/ )he *etho( use( b1 the NA9A<A in oDsetting the o'e&ti*e 5ith the un(e&ti*e an( at the sa*e ti*e
cha&ging sai( un(e&ti*e to the acc&ue( lea'e is unfai&7
-A/ )he (iDe&ential pa1 of <un(a1s is a pa&t of the legal 5age! 8ence, it 5as co&&ectl1 inclu(e( in
co*puting the 5ee0l1 5ages of those e*plo1ees an( labo&e&s 5ho 5o&0e( se'en (a1s a 5ee0 an( 5e&e
&egula&l1 &ecei'ing the $.M sala&1 (iDe&ential fo& a pe&io( of th&ee *onths p&io& to the i*ple*entation of
Republic Act 1880! )his is so e'en if petitione& is a public utilit1 in 'ie5 of the cont&actual obligation it has
assu*e( on the *atte&7
-8/ ,n the co*putation of the (ail1 5ages of e*plo1ees pai( b1 the *onth (istinction shoul( be *a(e
bet5een go'e&n*ent e*plo1ees li0e the AB e*plo1ees an( those 5ho a&e not! )he co*putation fo&
go'e&n*ent e*plo1ees is go'e&ne( b1 <ection $.% of the Re'ise( A(*inist&ati'e Co(e 5hile fo& othe&s the
co&&ect co*putation is the *onthl1 sala&1 (i'i(e( b1 the actual nu*be& of 5o&0ing hou&s in the *onth o&
the &egula& *onthl1 co*pensation (i'i(e( b1 the nu*be& of 5o&0ing (a1s in the *onth7
-9/ )he Cou&t of ,n(ust&ial Relations (i( not e&& in o&(e&ing the pa1*ent of night co*pensation f&o* the
ti*e such se&'ices 5e&e &en(e&e(! )he labo&e& *ust be co*pensate( fo& nightti*e 5o&0 as of the (ate the
sa*e 5as &en(e&e(7
-10/ )he &ates of *ini*u* pa1 6Fe( in a C,R Case No! 3.9#J a&e applicable not onl1 to those 5ho 5e&e
al&ea(1 in the se&'ice as of the (ate of the (ecision but also to those 5ho 5e&e e*plo1e( subse:uent to
sai( (ate7
-11/ All the labo&e&s, 5hethe& assigne( to the se5e&age (i'ision o& not 5ho a&e actuall1 5o&0ing insi(e o&
outsi(e the se5e&age cha*be&s, a&e entitle( to (ist&ess pa17 an(
-1$/ )he&e is no 'ali( &eason to (istu&b the 6n(ing of the Cou&t of ,n(ust&ial Relations that the 5o&0 of the
pe&sonnel in the const&uction, se5e&age, *aintenance, *achine&ies an( shops of petitione& is not
continuous as to &e:ui&e stagge&ing!
CBNC"2<,BN
9ith the *o(i6cation in(icate( in the abo'e &esu*T as elabo&ate( in this (ecision, 5e he&eb1 aC&* the
(ecision of &espon(ent cou&t in all othe& &espects, 5ithout p&onounce*ent as to costs!
Beng>on, C.J., Concepcion, Re1es, 4!B!"!, Pa&e(es, Regala an( Ma0alintal, JJ., concu&!
Republic of the Philippines
SUPREME COURT
Manila
+,R<) 3,J,<,BN
G.R. No. ;<=-, Jan&ary >+, *,++
"RAN3LIN 'A3ER COMPAN6 O" T5E P5ILIPPINES, petitione&,
's!
5ONORA'LE CRESENCIO '. TRAJANO, #IRECTOR O" 'UREAU O" LA'OR RELATIONS, "RAN3LIN
'A3ER 'ROT5ER5OO# ASSOCIATION ?TEC5NICAL AN# O""ICE EMPLO6EES@)ASSOCIATION O"
TRA#E UNIONS ?ATU@, &espon(ents!

PARAS, J.:
)his is a petition fo& ce&tio&a&i see0ing the annul*ent of! -a/ the B&(e& of Me(iato&#A&bite& Conchita 4!
Ma&tine> of the Minist&1 of "abo& an( E*plo1*ent, 3a'ao Cit1, (ate( <epte*be& 1A, 198% in "R3 Case No!
R#$$ ME3#RBI,#2R#$8#8% entitle( =,n Re; Petition fo& Ce&ti6cation Election A*ong the BCce an( )echnical
E*plo1ees of +&an0lin Ba0e& Co*pan1 of the Philippines, 3a'ao Plant at Co&onan, <ta! C&u>, 3a'ao (el <u&,
+&an0lin Ba0e& Co*pan1 of the Philippines, 3a'ao Plant, E*plo1e&, +&an0lin Ba0e& B&othe&hoo( Association
-)echnical an( BCce E*plo1ees/#Association of )&a(e 2nions -A)2/,= insofa& as it inclu(es the *anage&ial
e*plo1ees -inspecto&s, fo&e*en an( supe&'iso&s/ in the ce&ti6cation election7 -b/ the B&(e& of Ap&il A, 1986
of 3i&ecto& C&esencio B! )&aGano, also of the MB"E, (is*issing the appeal of afo&esai( B&(e& of <epte*be&
1A, 198. fo& lac0 of *e&it7 an( -c/ the B&(e& of 4une 6, 1986 of sai( 3i&ecto& (en1ing &econsi(e&ation of his
B&(e& of Ap&il A, 1986 an( aC&*ing the sa*e in toto -Rollo, p! 90/!
,n b&ief, the un(ispute( facts of this case a&e as follo5s;
Bn Ap&il $3, 198%, p&i'ate &espon(ent +&an0lin Ba0e& B&othe&hoo( Association#-A)2/ 6le( a petition fo&
ce&ti6cation election a*ong the oCce an( technical e*plo1ees of petitione& co*pan1 5ith the Minist&1 of
"abo& an( E*plo1*ent, Regional BCce No! I,, 3a'ao Cit1, (oc0ete( as "R3 No! R#$$, ME3#RBI,#2R#$88%!
A*ong othe& things, it alleges that +&an0lin Ba0e& Co*pan1 of the Phils! 3a'ao Plant, ha( in its e*plo1
app&oFi*atel1 ninet1 -90/ &egula& technical an( oCce e*plo1ees, 5hich g&oup is sepa&ate an( (istinct
f&o* the &egula& &an0 an( 6le e*plo1ees an( is eFclu(e( f&o* the co'e&age of eFisting Collecti'e
Ba&gaining Ag&ee*ent!
Petitione& co*pan1 (i( not obGect to the hol(ing of such an election but *anifeste( that out of the ninet1
-90/ e*plo1ees sought to be &ep&esente( b1 the &espon(ent union, se'ent1 fou& -A%/ a&e *anage&ial
e*plo1ees 5hile t5o -$/ othe&s a&e con6(ential e*plo1ees, hence, *ust be eFclu(e( f&o* the ce&ti6cation
election an( f&o* the ba&gaining unit that *a1 &esult f&o* such election -Rollo, p! 3/!
8ea&ings 5e&e hel( an( the&eafte&, the pa&ties ag&ee( to 6le thei& &especti'e *e*o&an(a! "i0e5ise,
petitione& 6le( a &epl1 to p&i'ate &espon(entEs Me*o&an(u* -Rollo, p! %/!
<ubse:uentl1, on <epte*be& 1A, 198%, Me(#A&bite& Conchita 4! Ma&tine> issue( an o&(e&, the (ispositi'e
pa&t of 5hich &ea(s;
Acco&(ingl1, the petition is he&eb1 g&ante( an( a ce&ti6cation election a*ong the oCce an(
technical e*plo1ees of +&an0lin Ba0e& Co*pan1 of the Philippines, 3a'ao Plant is o&(e&e(
5ithin t5ent1 -$0/ (a1s f&o* &eceipt he&eof! )he choices shall be the follo5ing;
1! +&an0lin Ba0e& B&othe&hoo( Association#-A)2/
$! No 2nion
)he &ep&esentation oCce& assigne( shall call the pa&ties fo& a p&e#election confe&ence at
least 6'e -./ (a1s befo&e the (ate of the election to th&esh out the *echanics of the
election, the 6nali>ation of the list of 'ote&s, the posting of notices an( othe& &ele'ant
*atte&s!
)he co*pan1Es latest pa1&oll shall be the basis fo& (ete&*ining the oCce an( technical
5o&0e&s :uali6e( to 'ote!
<B BR3ERE3! -Rollo, pp! %A#%8/!
+&o* the afo&e:uote( o&(e& petitione& Co*pan1 appeale( to the Bu&eau of "abo& Relations, (oc0ete( as
B"R Case No! A#$$88%, p&a1ing that the appeale( o&(e& be set asi(e an( anothe& be issue( (ecla&ing the
se'ent1 fou& -A%/ inspecto&s, fo&e*en an( supe&'iso&s as *anage&ial e*plo1ees!
3u&ing the pen(enc1 of the appeal, siFt1 one -61/ of the e*plo1ees in'ol'e(, 6le( a Motion to 9ith(&a5
the petition fo& ce&ti6cation election p&a1ing the&ein fo& thei& eFclusion f&o* the Ba&gaining 2nit an( fo& a
catego&ical (ecla&ation that the1 a&e *anage&ial e*plo1ees, as the1 a&e pe&fo&*ing *anage&ial functions
-Rollo, p! %/!
Bn Ap&il A, 1986, public &espon(ent Bu&eau of "abo& Relations C&esencio B! )&aGano issue( a Resolution
aC&*ing the o&(e& (ate( <epte*be& 1A, 198%, the (ispositi'e pa&t of 5hich &ea(s;
98ERE+BRE, the appeale( B&(e& (ate( <epte*be& 1A, 198. is he&eb1 aC&*e( an( the
appeal (is*isse( fo& lac0 of *e&it! "et the ce&ti6cation election a*ong the oCce an(
technical e*plo1ees of +&an0lin Ba0e& Co*pan1 of the Philippines p&ocee( 5ithout (ela1!
)he latest pa1&olls of the co*pan1 shall be use( as basis of (ete&*ining the list of eligible
'ote&s! -Rollo, p! AA/,
Petitione& co*pan1 sought the &econsi(e&ation of the afo&e:uote( &esolution but its *otion 5as (enie( b1
3i&ecto& C&esencio B! )&aGano in his o&(e& (ate( 4une 6, 1986, the (ispositi'e pa&t of 5hich &ea(s;
98ERE+BRE, the appeal of &espon(ent co*pan1 is, (is*isse( fo& lac0 of *e&it an( the
Bu&eauEs Resolution (ate( Ap&il 1986 aC&*e( in toto!
"et, the&efo&e, the pe&tinent pape&s of this case be i**e(iatel1 fo&5a&(e( to the BCce of
o&igin fo& the con(uct of the ce&ti6cation election! -Rollo, p! 90/!
8ence, this petition!
,n the &esolution of 4ul1 30, 1986, the <econ( 3i'ision of this Cou&t 5ithout gi'ing (ue cou&se to the
petition &e:ui&e( the &espon(ents to 6le thei& co**ent -Rollo, p! 91/! Bn August $8, 1986, public
&espon(ent 6le( its co**ent -Rollo, pp! 99 to 10$/! "i0e5ise p&i'ate &espon(ent 6le( its co**ent on
<epte*be& ., 1986 -Rollo, pp! 10% to 10A/!
,n the &esolution of <epte*be& 8, 1986, petitione& 5as &e:ui&e( to 6le its &epl1 to public &espon(entEs
co**ent -Rollo, p! 119/ 5hich &epl1 5as 6le( on <epte*be& 18, 1986 -Rollo, pp! 1$$#1$A/!
Bn Bctobe& $0, 1986, this Cou&t &esol'e( to gi'e (ue cou&se to the petition an( &e:ui&e( the pa&ties to 6le
thei& &especti'e Me*o&an(a -Rollo, p! 133/! ,n co*pliance 5ith sai( &esolution, petitione& an( p&i'ate
&espon(ent 6le( thei& Me*o&an(a on 3ece*be& 8, 1986 an( 3ece*be& $9, 1986, &especti'el1 -Rollo, pp!
183#18A/! Bn the othe& han(, public &espon(ent 6le( 5ith this Cou&t a *anifestation -Rollo, p! 1.3/ to the
eDect that it is a(opting as its *e*o&an(u* its co**ent (ate( August 18, 1986 -Rollo, p! 99/ 5hich
*anifestation 5as note( b1 this Cou&t in its &esolution (ate( No'e*be& $6, 1986
-Rollo, p! 1../!
)he lone assign*ent of e&&o& &aise( b1 petitione& states;
Public &espon(ent acte( 5ith g&a'e abuse of (isc&etion a*ounting to lac0 of Gu&is(iction
5hen he &ule( that the A6 e*plo1ees subGect of this petition a&e not *anage&ial e*plo1ees
-inspecto&s, fo&e*en, supe&'iso&s an( the li0e/ an( the&efo&e, *a1 pa&ticipate in the
ce&ti6cation election a*ong the oCce an( technical e*plo1ees! <uch &uling is cont&a&1 to
Gu&isp&u(ence an( to the factual e'i(ence p&esente( b1 petitione& 5hich 5as not &ebutte( b1
p&i'ate &espon(ent union an( is the&efo&e patentl1 baseless!
+&o* this assigne( e&&o& t5o :uestions a&e &aise( b1 petitione&, na*el1; -1/ 5hethe& o& not subGect
e*plo1ees a&e *anage&ial e*plo1ees un(e& the pu&'ie5 of the "abo& Co(e an( its ,*ple*enting Rules7
an( -$/ 5hethe& the 3i&ecto& of the Bu&eau of "abo& Relations acte( 5ith abuse of (isc&etion in aC&*ing
the o&(e& of Me(iato&#A&bite& Conchita 4! Ma&tine>!
)he&e is no :uestion that the&e a&e in the 3AJAB Plant of petitione& co*pan1 app&oFi*atel1 90 &egula&
technical an( oCce e*plo1ees 5hich fo&* a unit, sepa&ate an( (istinct f&o* the &egula& &an0 an( 6le
e*plo1ees an( a&e eFclu(e( f&o* the co'e&age of eFisting Collecti'e Ba&gaining Ag&ee*ent7 that sai(
g&oup of e*plo1ees o&gani>e( the*sel'es as +&an0lin Ba0e& B&othe&hoo( Association -technical an( oCce
e*plo1ees/ an( aCliate( 5ith the local chapte& of the Association of t&a(e 2nions -A)2/, a legiti*ate labo&
o&gani>ation 5ith Regist&ation Pe&*it No! 8A%. -+e(/ "C an( 5ith oCce locate( at the 3&( +loo& of Ant5ell
Bl(g!, <ta! Ana, 3a'ao Cit17 that petitione& co*pan1 (i( not obGect to the hol(ing of such ce&ti6cation, but
onl1 sought the eFclusion of inspecto&s, fo&e*en an( supe&'iso&s, *e*be&s of +&an0lin Ba0e& B&othe&hoo(
Association -technical an( oCce e*plo1ees/ nu*be&ing A6 f&o* the ce&ti6cation election on the g&oun(
that the1 a&e *anage&ial e*plo1ees!
A *anage&ial e*plo1ee is (e6ne( as one =5ho is 'este( 5ith po5e&s o& p&e&ogati'es to la1 (o5n an(
eFecute *anage*ent policies an(Uo& to hi&e, t&ansfe&, suspen(, la1#oD, &ecall, (ischa&ge, assign o&
(iscipline e*plo1ees, o& to e/ectively recommend such mana$erial actions!= -Re1nol(s Phil! Co&p! '!
Esla'a, 13A <CRA ?198.@, citing <ection $1$ -P/, "abo& Co(e!
Also pe&tinent the&eto is <ection 1 -M/ of the ,*ple*enting Rules an( Regulations, 5hich is p&acticall1 a
&estate*ent of the abo'e p&o'ision of la5!
)o sustain its postu&e, that the inspecto&s, fo&e*an an( supe&'iso&s nu*be&ing A6 a&e *anage&ial
e*plo1ees, petitione& painsta0ingl1 (e*onst&ates that subGect e*plo1ees in(ee( pa&ticipate in the
fo&*ulation an( eFecution of co*pan1 policies an( &egulations as to the con(uct of 5o&0 in the plant,
eFe&cise( the po5e& to hi&e, suspen( o& (is*iss subo&(inate e*plo1ees an( eDecti'el1 &eco**en( such
action, b1 citing conc&ete cases, a*ong 5hich a&e; -1/ M&! Ponciano Jiola, a 5et p&ocess inspecto&, 5ho
5hile in the pe&fo&*ance of his (ut1, foun( M&! En&i:ue Asuncion, a t&i**e& =fo&ging=, falsif1ing an(
si*ulating a co*pan1 ti*e ca&( -ti*esheet/ &esulting in pa1&oll pa((ing, i**e(iatel1 &eco**en(e( the
(is*issal of sai( e&&ing e*plo1ee, &esulting in the latte&Es (ischa&ge! -E*plo1e&Es Me*o, Rollo, p!18/7 -$/
M&! Manuel Alipio, an opening inspecto&, &eco**en(e( fo& suspension Nut Bpe&ato& Eph&ai* 3u*a1os
5ho 5as caught in the act of su&&eptitiousl1 t&ansfe&&ing to a co#5o&0e&Es bin so*e 5hole nuts 5hich act
constitutes a 'iolation of co*pan1 polic17 -3/ M&! <of&onio Abangan, a line inspecto&, censu&e( an(
the&eafte& &eco**en(e( the suspension of M&! Ro*eo +ullante, fo& being &e*iss in the p&ope& an(
accu&ate counting of nuts7 -%/ Binlea(e& 3ionisio Agtang 5as &e:ui&e( to eFplain his ineCcienc1 of M&!
<atu&nino Bang0as, Bin "oa(ing ,nspecto&7 -./ fo& (isobe1ing the o&(e&s of Bin "oa(ing ,nspecto& Mau&icio
"u*anogEs o&(e&, Maca&io Mante, E(ua&(o A(apto&, Ro(olfo ,&ene an( eo&ge Rellanos 5e&e all
&eco**en(e( fo& suspension 5hich cul*inate( in an in'estigation con(ucte( b1 "u*anogEs highe& bosses
-#bid!, p! $0/!
,t has also been sho5n that subGect e*plo1ees ha'e the po5e& to hi&e, as e'i(ence( b1 the hi&ing of
Rolan(o Asis, Ro1 "a1son, A&ca(io au(icos an( +eliF A&ciaga, upon the &eco**en(ation of Bpening
,nspecto& <e&a6n <uelo, P&ocessing ,nspecto& "eona&(o Jele> an( "au&eano C! "i*, Bpening ,nspecto&
-#bid., p! $1/!
,t 5ill be note(, ho5e'e&, that in the pe&fo&*ance of thei& (uties an( functions an( in the eFe&cise of thei&
&eco**en(ato&1 po5e&s, subGect e*plo1ees *a1 onl1 &eco**en(, as the ulti*ate po5e& to hi&e, 6&e o&
suspen( as the case *a1 be, &ests upon the plant pe&sonnel *anage&!
)he test of =supe&'iso&1= o& =*anage&ial status= (epen(s on 5hethe& a pe&son possesses autho&it1 to act
in the inte&est of his e*plo1e& in the *atte& speci6e( in A&ticle $1$ -0/ of the "abo& Co(e an( <ection 1 -*/
of its ,*ple*enting Rules an( 5hethe& such autho&it1 is not *e&el1 &outina&1 o& cle&ical in natu&e, but
&e:ui&es the use of in(epen(ent Gu(g*ent! )hus, 5he&e such &eco**en(ato&1 po5e&s as in the case at
ba&, a&e subGect to e'aluation, &e'ie5 an( 6nal action b1 the (epa&t*ent hea(s an( othe& highe&
eFecuti'es of the co*pan1, the sa*e, although p&esent, a&e not eDecti'e an( not an eFe&cise of
in(epen(ent Gu(g*ent as &e:ui&e( b1 la5 -National 9a&ehousing Co&p! '! C,R, A <CRA 60$#603 ?1963@/!
+u&the&*o&e, in line 5ith the &uling of this Cou&t, subGect e*plo1ees a&e not *anage&ial e*plo1ees
because as bo&ne b1 the &eco&(s, the1 (o not pa&ticipate in polic1 *a0ing but a&e gi'en &ea(1 policies to
eFecute an( stan(a&( p&actices to obse&'e, thus ha'ing little f&ee(o* of action -National 9ate&5o&0s an(
<e5e&age Autho&it1 '! N9<A Consoli(ate(, "#18938, 11 <CRA A66 ?196%@/!
Petitione&Es contention that the 3i&ecto& of the Bu&eau of "abo& Relations acte( 5ith abuse of (isc&etion
a*ounting to lac0 of Gu&is(iction in hol(ing that the A6 e*plo1ees a&e not *anage&ial e*plo1ees an( *ust
be inclu(e( in the ce&ti6cation election has no basis in fact an( in la5! Neithe& is its contention that the use
of the 5o&(Es =an(Uo&= catego&icall1 sho5s that pe&fo&*ance of the functions enu*e&ate( in the la5
:uali6es an e*plo1ee as a *anage&ial e*plo1ee!
,t is 5ell settle( that the 6n(ings of fact of the Minist&1 of "abo& an( National "abo& Relations Co**ission
a&e entitle( to g&eat &espect, unless the 6n(ings of fact an( the conclusions *a(e the&ef&o*, a&e not
suppo&te( b1 substantial e'i(ence, o& 5hen the&e is g&a'e abuse of (isc&etion co**itte( b1 sai( public
oCcial -Papisanan ng Manggaga5a sa Ca*a&a <hoes, $n( 8ei&s of <antos Ca*a&a, et al!, 111 <CRA %AA
?198$@7 ,nte&national ha&(5oo( an( Jenee& Co! of the Philippines '! "eona&(o, 11A <CRA 96A ?198$@7 Pan#
Phil#"ife, ,nc! '! N"RC, 11% <CRA 866 ?198$@7 Pepsi#Cola "abo& 2nion#B+ "2)2PA< "ocal Chapte& N#896 '!
N"RC, 11% <CRA 930 ?198$@7 Eg1ptai& '! N"RC, 1%8 <CRA 1$. ?198A@7 R4" Ma&tine> +ishing Co&p! '! N"RC,
!R! Nos! 63..0#.1, 1$A <CRA %.. ?198%@7 an( Re1es '! Phil! 3uplicato&s, !R! No! .%996, 109 <CRA %89
?1981@/!
B1 =g&a'e abuse of (isc&etion= is *eant, such cap&icious an( 5hi*sical eFe&cise of Gu(g*ent as is
e:ui'alent to lac0 of Gu&is(iction! )he abuse of (isc&etion *ust be g&a'e as 5he&e the po5e& is eFe&cise( in
an a&bit&a&1 o& (espotic *anne& b1 &eason of passion o& pe&sonal hostilit1 an( *ust be so patent an( g&oss
as to a*ount to an e'asion of positi'e (ut1 o& to a 'i&tual &efusal to pe&fo&* the (ut1 enGoine( b1 o& to act
at all in conte*plation of la5 -!R! No! .9880, eo&ge A&guelles ?8(a! E**a A&guelles '! Ro*eo Lang,
etc!@, <epte*be& 11, 198A/!
Mo&eo'e&, this Cou&t has &ule( that 6n(ings of a(*inist&ati'e agencies 5hich ha'e ac:ui&e( eFpe&tise, li0e
the "abo& Minist&1, a&e acco&(e( &espect an( 6nalit1 -<pecial E'ents an( Cent&al <hipping BCce 9o&0e&s
2nion '! <an Miguel Co&p!, 1$$ <CRA ..A ?1983@ an( that the &e*e(1 of ce&tio&a&i (oes not lie in the
absence of an1 sho5ing of abuse o& *isuse of po5e& p&ope&l1 'este( in the Minist&1 of "abo& an(
E*plo1*ent -Buise& '! "eoga&(o, 4&!, 131 <CRA 1.1 ?198%@/!
Afte& a ca&eful &e'ie5 of the &eco&(s, no plausible &eason coul( be foun( to (istu&b the 6n(ings of fact an(
the conclusions of la5 of the Minist&1 of "abo&!
E'en if 9e &ega&( the e*plo1ees conce&ne( as =*anage&ial e*plo1ees,= the1 can still Goin the union of the
&an0 an( 6le e*plo1ees! )he1 cannot ho5e'e& fo&* thei& o5n eFclusi'e union as =*anage&ial e*plo1ees=
-Bulletin Publishing Co&po&ation '! <anche>, 1%% <CRA 6$8/!
PREM,<E< CBN<,3ERE3, the petition is 3,<M,<<E3, an( the assaile( &esolution an( o&(e&s a&e A++,RME3!
<B BR3ERE3!
0eehan"ee* C.J.* Narvasa* Cru, and 1ancayco* JJ.* concur.
+,R<) 3,J,<,BN
?!R! No! 109$10! Ap&il 1A, 1996@
EN,NEER "EBNC,B J! <A"AVAR, petitioner* vs. NA),BNA" "ABBR RE"A),BN< CBMM,<<,BN -$n( 3i'ision/
an( 8! "! CAR"B< CBN<)R2C),BN, CB! ,NC!, respondents.
<L""AB2<
*. REME#IAL LA2A CIVIL PROCE#UREA APPEAL TO T5E SUPREME COURTA A #ECISION O"
T5E NATIONAL LA'OR RELATIONS COMMISSION S5OUL# 'E IN T5E "ORM O" A SPECIAL CIVIL
ACTION "OR CERTIORARI UN#ER RULE /< O" T5E REVISE# RULES O" COURT, EBCEPTION. #
Although 5e ag&ee 5ith p&i'ate &espon(ent that appeals to the <up&e*e Cou&t f&o* (ecisions of the N"RC
shoul( be in the fo&* of a special ci'il action fo& ce&tio&a&i un(e& Rule 6. of the Re'ise( Rules of Cou&t, this
&ule is not inKeFible! ,n a nu*be& of cases, this Cou&t has &esol'e( to t&eat as special ci'il actions fo&
ce&tio&a&i petitions e&&oneousl1 captione( as petitions fo& &e'ie5 on ce&tio&a&i Win the inte&est of Gustice!X ,n
&eople2s 'ecurity* #nc. v. N(RC* -$$6 <CRA 1%6 ?1993@/ 5e elabo&ate(, thus; ,n(ee(, this Cou&t has ti*e
an( again (ecla&e( that the onl1 5a1 b1 5hich a labo& case *a1 &each the <up&e*e Cou&t is th&ough a
petition fo& ce&tio&a&i un(e& Rule 6. of the Rules of Cou&t alleging lac0 o& eFcess of Gu&is(iction o& g&a'e
abuse of (isc&etion -Pea&l <! Buc0 +oun(ation v. N"RC, 18$ <CRA %%6 ?1990@/! )his petition shoul( not be
(is*isse( on a *e&e technicalit1 ho5e'e&! W3is*issal of appeal pu&el1 on technical g&oun(s is f&o5ne(
upon 5he&e the polic1 of the cou&ts is to encou&age hea&ings of appeal on thei& *e&its! 0he rules of
procedure ou$ht not to be applied in a very ri$id technical sense* rules of procedure are used only to help
secure* not override substantial 3ustice. #f a technical and ri$id enforcement of the rules is made* their aim
!ould be defeated4 -)a*a1o v. Cou&t of Appeals, $09 <CRA .18, .$$ ?199$@ citing &ego&io '! Cou&t of
Appeals, A$ <CRA 1$0 ?19A6@/! Conseuently* in the interest of 3ustice* the instant petition for revie! shall
be treated as a special civil action on certiorari.
>. I#.A CRIMINAL PROCE#UREA PROSECUTION O" O""ENSESA INCLUSION O" AN EMPLO6EE
IN A COMPLAINT "OR UNJUST VEBATION, 25IC5 2AS 2OR3 RELATE#, ECUIVALENT TO
INCLUSION O" T5E EMPLO6ER ITSEL" ENTITLING T5E "ORMER TO REIM'URSEMENT "ROM T5E
LATTER O" T5E "EES PAI# TO COUNSEL. ) Although not (i&ectl1 i*plicate( in the c&i*inal co*plaint,
p&i'ate &espon(ent is nonetheless obligate( to (ef&a1 petitione&Ns legal eFpenses! Petitione& 5as inclu(e(
in the co*plaint not in his pe&sonal capacit1 but in his capacit1 as p&oGect enginee& of p&i'ate &espon(ent
an( the case a&ose in connection 5ith his 5o&0 as such! At the const&uction site, petitione& is the
&ep&esentati'e of p&i'ate &espon(ent being its e*plo1ee an( he acts fo& an( in behalf of p&i'ate
&espon(ent! 8ence, the inclusion of petitione& in the co*plaint fo& unGust 'eFation, 5hich 5as 5o&0#&elate(,
is e:ui'alent to inclusion of p&i'ate &espon(ent itself!
-. LA'OR AN# SOCIAL LEGISLATIONA LA'OR CO#EA CON#ITION O" EMPLO6MENTA MEM'ERS
O" T5E MANAGERIAL STA"" NOT ENTITLE# TO OVERTIME, REST #A6 AN# 5OLI#A6 PA6. D ,n his
o&iginal co*plaint, petitione& state( that the natu&e of his 5o&0 is Wsupe&'iso&1#enginee&ing!X <i*ila&l1, in
his o5n petition an( in othe& plea(ings sub*itte( to this Cou&t, petitione& con6&*e( that his Gob 5as to
supe&'ise the labo&e&s in the const&uction p&oGect! 8ence, although petitione& cannot st&ictl1 be classi6e(
as a *anage&ial e*plo1ee un(e& A&t! 8$ of the "abo& Co(e, an( <ec! $-b/,Rule 1, Boo0 ,,, of the B*nibus
Rules ,*ple*enting the "abo& Co(e, nonetheless he is still not entitle( to pa1*ent of the afo&estate(
bene6ts because he falls s:ua&el1 un(e& anothe& eFe*pt catego&1 # WoCce&s o& *e*be&s of a *anage&ial
staDX as (e6ne( un(e& <ec! $-c/ of the abo'e*entione( i*ple*enting &ules! A case in point is National
'u$ar Re5neries Corporation v. N(RC. Bn the issue of W5hethe& supe&'iso&1 e*plo1ees, as (e6ne( in
A&ticle $1$ -*/, Boo0 J of the "abo& Co(e, shoul( be consi(e&e( as oCce&s o& *e*be&s of the *anage&ial
staD un(e& A&ticle 8$, Boo0 ,,, of the sa*e Co(e an( hence not entitle( to o'e&ti*e, &est (a1 an( holi(a1
pa1,X this Cou&t &ule(; A cu&so&1 pe&usal of the 4ob Jalue Cont&ibution <tate*ents of the union *e*be&s
5ill &ea(il1 sho5 that these supe&'iso&1 e*plo1ees a&e un(e& the (i&ect supe&'ision of thei& &especti'e
(epa&t*ent supe&inten(ents an( that gene&all1 the1 assist the latte& in planning, o&gani>ing, staCng,
(i&ecting, cont&olling, co**unicating an( in *a0ing (ecisions in attaining the co*pan1Ns set goals an(
obGecti'es! )hese supe&'iso&1 e*plo1ees a&e li0e5ise &esponsible fo& the eDecti'e an( eCcient ope&ation
of thei& &especti'e (epa&t*ents! F F F +&o* the fo&egoing, it is appa&ent that the *e*be&s of &espon(ent
union (ischa&ge (uties an( &esponsibilities 5hich ineluctabl1 :ualif1 the* as oCce&s o& *e*be&s of the
*anage&ial staD, as (e6ne( in <ection $, Rule 1, Boo0 ,,, of the afo&estate( Rules to ,*ple*ent the "abo&
Co(e, vi,.6 -1/ thei& p&i*a&1 (ut1 consists of the pe&fo&*ance of 5o&0 (i&ectl1 &elate( to *anage*ent
policies of thei& e*plo1e&7 -$/ the1 custo*a&il1 an( &egula&l1 eFe&cise (isc&etion an( in(epen(ent
Gu(g*ent7 -3/ the1 &egula&l1 an( (i&ectl1 assist the *anage&ial e*plo1ee 5hose p&i*a&1 (ut1 consists of
the *anage*ent of a (epa&t*ent of the establish*ent in 5hich the1 a&e e*plo1e(7 -%/ the1 eFecute,
un(e& gene&al supe&'ision, 5o&0 along speciali>e( o& technical lines &e:ui&ing special t&aining, eFpe&ience,
o& 0no5le(ge7 -./ the1 eFecute, un(e& gene&al supe&'ision, special assign*ents an( tas0s7 an( -6/ the1 (o
not (e'ote *o&e than $0M of thei& hou&s 5o&0e( in a 5o&0#5ee0 to acti'ities 5hich a&e not (i&ectl1 an(
clea&l1 &elate( to the pe&fo&*ance of thei& 5o&0 he&einbefo&e (esc&ibe(! 2n(e& the facts obtaining in this
case, 5e a&e const&aine( to ag&ee 5ith petitione& that the union *e*be&s shoul( be consi(e&e( as oCce&s
o& *e*be&s of the *anage&ial staD an( a&e, the&efo&e, eFe*pt f&o* the co'e&age of A&ticle 8$! Pe&fo&ce,
the1 a&e not entitle( to o'e&ti*e, &est (a1 an( holi(a1 pa1!
0. I#.A I#.A TERMINATION O" EMPLO6MENTA SEPARATION PA6A NOT GRANTE# 25ERE T5E
#ISMISSE# 2OR3ER IS A PROJECT EMPLO6EE. ) Bn the last issue, 5e &ule that petitione& is a p&oGect
e*plo1ee an(, the&efo&e, not entitle( to sepa&ation pa1! )he applicable p&o'ision is A&ticle $80 of the "abo&
Co(e 5hich (e6nes the te&* Wp&oGect e*plo1ee,X thus; AR)! $80! Regula& an( Casual E*plo1*ent! # )he
p&o'isions of 5&itten ag&ee*ent to the cont&a&1 not5ithstan(ing an( &ega&(less of the o&al ag&ee*ent of
the pa&ties, an e*plo1*ent shall be (ee*e( to be &egula& 5he&e the e*plo1ee has been engage( to
pe&fo&* acti'ities 5hich a&e usuall1 necessa&1 o& (esi&able in the usual business o& t&a(e of the e*plo1e&,
except !here the employment has been 5xed for a speci5c pro3ect or underta"in$ the completion or
termination of !hich has been determined at the time of the en$a$ement of the employee o& 5he&e the
5o&0 o& se&'ices to be pe&fo&*e( is seasonal in natu&e an( the e*plo1*ent is fo& the (u&ation of the
season! ,n the case at bench, it 5as (ul1 establishe( that p&i'ate &espon(ent hi&e( petitione& as p&oGect o&
const&uction enginee& speci6call1 fo& its Monte (e Pie(a( buil(ing p&oGect! ,n his o5n 5o&(s, petitione&
(ecla&e(; $! )hat co*plainant#petitione& he&ein, b1 'i&tue of an o&al ag&ee*ent ente&e( into 5ith p&i'ate
&espon(ent he&ein th&ough its p&op&ieto&, p&esi(ent an( gene&al *anage&, Eng&! 8ono&io "! Ca&los, on April
78 799:* be$an to !or" as a duly licensed Civil En$ineer as construction or pro3ect en$ineer of its
contracted pro3ect* the -onte de &iedad +an" +uildin$* at Cubao* ;ue,on City* on the follo5ing te&*s an(
con(itions, to 5it; F F F Acco&(ingl1, as p&oGect e*plo1ee, petitione&Ns se&'ices a&e (ee*e( cote&*inous
5ith the p&oGect, that is, petitione&Ns se&'ices *a1 be te&*inate( as soon as the p&oGect fo& 5hich he 5as
hi&e( is co*plete(! )he&e can be no (ispute that petitione&Ns (is*issal 5as (ue to the co*pletion of the
const&uction of the Monte (e Pie(a( buil(ing! Petitione& hi*self state( that it too0 hi* an( his assisting
labo&e&s until 1. Ma1 1991 to co*plete the W6nishing touchesX on the sai( buil(ing! Petitione&, thus, has
no legal &ight to (e*an( sepa&ation pa1! Polic1 ,nst&uction No! $0 entitle( W<tabili>ing E*plo1e&#E*plo1ee
Relations in the Const&uction ,n(ust&1X eFplicitl1 *an(ates that; F F F P&oGect e*plo1ees a&e not entitle( to
te&*ination pa1 if the1 a&e te&*inate( as a &esult of the co*pletion of the p&oGect o& an1 phase the&eof in
5hich the1 a&e e*plo1e(, &ega&(less of the nu*be& of p&oGects in 5hich the1 ha'e been e*plo1e( b1 a
pa&ticula& const&uction co*pan1! Mo&eo'e&, the co*pan1 is not &e:ui&e( to obtain a clea&ance f&o* the
<ec&eta&1 of "abo& in connection 5ith such te&*ination! 9hat is &e:ui&e( of the co*pan1 is a &epo&t to the
nea&est Public E*plo1*ent BCce fo& statistical pu&poses!
<. CIVIL LA2A ESTOPPELA EMPLO6ER ESTOPPE# "ROM ASSAILING T5E CONTENTS O" ITS
O2N CERTI"ICATE O" SERVICE ISSUE# IN "AVOR O" AN EMPLO6EE. ) Bn this sco&e, 5e &ule fo& the
petitione&! )he pu&pose fo& 5hich the sai( ce&ti6cate 5as issue( beco*es i&&ele'ant! )he fact &e*ains that
p&i'ate &espon(ent 0no5ingl1 an( 'olunta&il1 issue( the ce&ti6cate! Me&e (enials an( self#se&'ing
state*ents to the eDect that petitione& allege(l1 p&o*ise( not to use the ce&ti6cate against p&i'ate
&espon(ent a&e not suCcient to o'e&tu&n the sa*e! 8ence, p&i'ate &espon(ent is estoppe( f&o* assailing
the contents of its o5n ce&ti6cate of se&'ice!
APPEARANCE< B+ CB2N<E"
Ro*ulo A! <ala>a& fo& petitione&!
)he <olicito& ene&al fo& public &espon(ent!
il Jene&an(o R! Racho fo& p&i'ate &espon(ent!
3 E C , < , B N
PAP2NAN, J.6
)his is a petition fo& ce&tio&a&i
Y
to annul the (ecision of the National "abo& Relations Co**ission in N"RC
Case No! 00$8..#9$ (ate( $A No'e*be& 199$ 5hich aC&*e( in toto the (ecision of the "abo& A&bite& in
N"RC NCR#00#09#0.33.#91 (ate( $9 4anua&1 199$ (is*issing the co*plaint 6le( b1 petitione& fo& lac0 of
*e&it! )he N"RCNs &esolution (ate( $$ +eb&ua&1 1993 is si*ila&l1 i*pugne( fo& (en1ing petitione&Ns *otion
fo& &econsi(e&ation!
)he antece(ent facts a&e as follo5s;
Bn 1A Ap&il 1990, p&i'ate &espon(ent, at a *onthl1 sala&1 of P%,.00!00, e*plo1e( petitione& as
const&uctionUp&oGect enginee& fo& the const&uction of the Monte (e Pie(a( buil(ing in Cubao, Oue>on Cit1!
Allege(l1, b1 'i&tue of an o&al cont&act, petitione& 5oul( also &ecei'e a sha&e in the p&o6ts afte& co*pletion
of the p&oGect an( that petitione&Ns se&'ices in eFcess of eight -8/ hou&s on &egula& (a1s an( se&'ices
&en(e&e( on 5ee0en(s an( legal holi(a1s shall be co*pensable o'e&ti*e at the &ate of P$A!8. pe& hou&!
Y
Bn 16 Ap&il 1991, petitione& &ecei'e( a *e*o&an(u* issue( b1 p&i'ate &espon(entNs p&oGect *anage&,
Eng&! Nesto& A! 3elanta& info&*ing hi* of the te&*ination of his se&'ices eDecti'e on 30 Ap&il 1991!
Rep&o(uce( he&eun(e& is the abo'e*entione( *e*o&an(u*;
Ap&il 16, 1991
MEMBRAN32M )B;
"EBNC,B J! <A"AVAR
P&oGect Enginee&
MBN)E 3E P,E3A3 B"3! PRB4EC)
Oue>on Cit1
3ue to the i*pen(ing co*pletion of the afo&e*entione( p&oGect an( the lac0 of up#co*ing cont&acte(
5o&0s fo& ou& co*pan1 in the i**e(iate futu&e, 'olu*e of 5o&0 fo& ou& enginee&ing an( technical
pe&sonnel has g&eatl1 been (i*inishe(!
,n 'ie5 of this, 1ou a&e he&eb1 a('ise( to 5in( up all technical &epo&ts inclu(ing acco*plish*ents, change
o&(e&s, etc!
+u&the&, 1ou a&e a('ise( that 1ou& se&'ices a&e being te&*inate( eDecti'e at the close of oCce hou&s on
Ap&il 30, 1991!
)his, ho5e'e&, has no p&eGu(ice to 1ou& &e#e*plo1*ent in this co*pan1 in its local an( o'e&seas p&oGects
shoul( the nee( fo& 1ou& se&'ices a&ises!
)han0 1ou fo& 1ou& in'aluable se&'ices &en(e&e( to this co*pan1!
-<g(!/ NE<)BR A! 3E"AN)AR
P&oGect *anage&
Note( B1;
-<g(!/ Ma&io B! Co&nista
Jice P&esi(ent
1
Bn 13 <epte*be& 1991, petitione& 6le( a co*plaint against p&i'ate &espon(ent fo& illegal (is*issal, unfai&
labo& p&actice, illegal (e(uction, non#pa1*ent of 5ages, o'e&ti*e &en(e&e(, se&'ice incenti'e lea'e pa1,
co**ission, allo5ances, p&o6t#sha&ing an( sepa&ation pa1 5ith the N"RC#NCR A&bit&ation B&anch, Manila!
$
Bn $9 4anua&1 199$, "abo& A&bite& Raul )! A:uino &en(e&e( a (ecision, the (ispositi'e po&tion of 5hich
&ea(s, thus;
98ERE+BRE, &esponsi'e to the fo&egoing, the instant case is he&eb1 3,<M,<<E3 fo& lac0 of *e&its!
<B BR3ERE3!
3
)he "abo& A&bite& &ule( that petitione& 5as a *anage&ial e*plo1ee an( the&efo&e eFe*pt f&o* pa1*ent of
bene6ts such as o'e&ti*e pa1, se&'ice incenti'e lea'e pa1 an( p&e*iu* pa1 fo& holi(a1s an( &est (a1s!
1
$
3
Petitione&, "abo& A&bite& A:uino fu&the& (ecla&e(, 5as also not entitle( to sepa&ation pa1! 8e 5as hi&e( as a
p&oGect e*plo1ee an( his se&'ices 5e&e te&*inate( (ue to the co*pletion of the p&oGect!
%
)he "abo& A&bite&, li0e5ise, (enie( petitione&Ns clai* fo& a sha&e in the p&oGectNs p&o6ts, &ei*bu&se*ent of
legal eFpenses an( unpai( 5ages fo& lac0 of basis!
.
Bn 1% Ap&il 199$, petitione& appeale( to the National "abo& Relations Co**ission -N"RC/!
Bn $A No'e*be& 199$, the N"RC &en(e&e( the assaile( (ecision, the (ispositi'e po&tion of 5hich &ea(s as
follo5s;
98ERE+BRE, p&e*ises consi(e&e(, the appeal is he&eb1 3is*isse( an( the assaile( (ecision is AC&*e( in
toto.
<B BR3ERE3!
6
Bn $9 4anua&1 1993, petitione& 6le( a *otion fo& &econsi(e&ation 5hich the N"RC (enie( fo& lac0 of *e&it
on $$ +eb&ua&1 1993!
A
8ence, the instant petition 5he&ein the follo5ing issues 5e&e &aise(;
,! &anting fo& the sa0e of a&gu*ent 5ithout conce(ing, that co*plainant#petitione& he&ein 5as a
*anage&ial e*plo1ee, 5as his 'e&bal cont&act to be pai( his o'e&ti*e se&'ices as state( in pa&ag&aph $-b/
of this Petition in'ali(R an( the pa1*ents of such o'e&ti*e se&'ices as e'i(ence( b1 EFhibits WBX to WB#$%X
-the genuineness an( authenticit1 of 5hich a&e not (ispute(/ a&e the1 not e'i(entia&1 an( of co&&obo&ati'e
'alue to the t&ue un5&itten ag&ee*ent bet5een the pa&ties in this caseR
,,! ,s the&e an1 po&tion of the "abo& Co(e that p&ohibits cont&acts bet5een e*plo1e& an( e*plo1ee
gi'ing the latte& the bene6t of being pai( o'e&ti*e se&'ices, as in this pa&ticula& caseR
,,,! 9he&e an e*plo1ee 5as in(uce( to accept a lo5 o& (isto&te( sala&1 o& 5age le'el, because of an
incenti'e p&o*ise to &ecei'e a bigge& co*pensation than that 5hich 5oul( be his t&ue an( co&&ect 5age
le'el as sho5n b1 (ocu*ents fo& the pa1*ent of his (isto&te( 5ages an( o'e&ti*e se&'ices, is it not legall1
p&ope&, in the alte&nati'e to clai* pa1*ent of the (iDe&ential of his un(isto&te( sala&1 o& 5age le'el 5hen
the p&o*ise( incenti'e co*pensation is (enie( b1 his e*plo1e& afte& the co*pletion of the Gob fo& 5hich
he 5as e*plo1e(R
,J! ,s the Ce&ti6cate of e*plo1*ent issue( to an e*plo1ee b1 his e*plo1e&, assailable b1 *e&e
aC(a'its of (enials to the eDect that sai( Ce&ti6cate 5as issue( because of the insistence of the e*plo1ee
that it be *a(e to inclu(e a pe&io( he (i( not 5o&0, but 5hich such fact of insistence o& &e:uest is also
(enie( b1 the e*plo1ee, because he &eall1 5o&0e( (u&ing the pe&io( inclu(e( in sai( Ce&ti6cateR
J! ,s the e*plo1e& liable fo& the pa1*ent of the atto&ne1Ns pa1 incu&&e( b1 his e*plo1ee in a 5o&0
connecte( c&i*inal p&osecution against hi* fo& an act (one b1 anothe& e*plo1ee assigne( b1 sa*e
e*plo1e& to (o the act 5hich 5as the subGect of the c&i*inal p&osecutionR
8
Petitione& p&a1s that Gu(g*ent be &en(e&e(, thus;
%
.
6
A
8
1! )hat the (ecision of the N"RC an( its &esolution (en1ing the Motion fo& Reconsi(e&ation be set asi(e on
g&oun(s of g&a'e abuse of (isc&etion an(7
$! )hat p&i'ate &espon(ent be o&(e&e( to pa1 petitione& the follo5ing;
a! the p&e*iu* pa1s fo& his o'e&ti*e se&'ices of 368 hou&s on o&(ina&1 (a1s at <=>? $A$ hou&s on
<atu&(a1s at 30M7 $A$ hou&s on <un(a1s plus $% hou&s on legal holi(a1s at $00M #co*pute( at the &ate of
P$A!8. pe& hou& of un(isto&te( 5age le'el7
b! in the alte&nati'e, to pa1 at least one -1/ pe&cent of @.= *illion pesos p&o6t sha&e, o& the su* total of the
(iDe&ential of his sala&ies, in the a*ount of P$,18%!00 pe& *onth, since Ap&il 1A,1990 to Ap&il 30,1991, his
un(isto&te( sala&1 being P6,68%!00 pe& *onth7 an( to pa1 his unpai( sala&1 fo& 1. (a1s # Ma1 1 to 1.,
1991, 5ith his un(isto&te( sala&1 &ate7
c! the a*ount of P3,000!00 &ei*bu&se*ent fo& 5hat he pai( his (efense counsel in that c&i*inal action
5hich shoul( ha'e instea( been against &espon(entNs gene&al *anage&7
(! <epa&ation pa1 of at least one *onth sala&1, he ha'ing been te&*inate( un&easonabl1 5ithout cause,
an( th&ee (a1s se&'ice incenti'e lea'e pa17 an( to pa1 the costs7
9
Befo&e p&ocee(ing to the *e&its of the petition, 5e shall 6&st &esol'e the p&oce(u&al obGection &aise(!
P&i'ate &espon(ent p&a1s fo& the out&ight (is*issal of the instant petition on g&oun(s of 5&ong *o(e of
appeal, it being in the fo&* of a petition fo& &e'ie5 on ce&tio&a&i -Rule %. of the Re'ise( Rules of Cou&t/ an(
not a special ci'il action fo& ce&tio&a&i -Rule 6. the&eof/ 5hich is the co&&ect *o(e of appeal f&o* (ecisions
of the N"RC!
Although 5e ag&ee 5ith p&i'ate &espon(ent that appeals to the <up&e*e Cou&t f&o* (ecisions of the N"RC
shoul( be in the fo&* of a special ci'il action fo& ce&tio&a&i un(e& Rule 6. of the Re'ise( Rules of Cou&t, this
&ule is not inKeFible! ,n a nu*be& of cases,
1
0 this Cou&t has &esol'e( to t&eat as special ci'il actions fo&
ce&tio&a&i petitions e&&oneousl1 captione( as petitions fo& &e'ie5 on ce&tio&a&i Win the inte&est of Gustice!X ,n
&eople2s 'ecurity* #nc. v. N(RC*
1
1 5e elabo&ate(, thus;
,n(ee(, this Cou&t has ti*e an( again (ecla&e( that the onl1 5a1 b1 5hich a labo& case *a1 &each the
<up&e*e Cou&t is th&ough a petition fo& ce&tio&a&i un(e& Rule 6. of the Rules of Cou&t alleging lac0 o&
eFcess of Gu&is(iction o& g&a'e abuse of (isc&etion -Pea&l <! Buc0 +oun(ation v. N"RC, 18$ <CRA %%6
?1990@/!
)his petition shoul( not be (is*isse( on a *e&e technicalit1 ho5e'e&! W3is*issal of appeal pu&el1 on
technical g&oun(s is f&o5ne( upon 5he&e the polic1 of the cou&ts is to encou&age hea&ings of appeal on
thei& *e&its! 0he rules of procedure ou$ht not to be applied in a very ri$id technical sense* rules of
procedure are used only to help secure* not override substantial 3ustice. #f a technical and ri$id
enforcement of the rules is made* their aim !ould be defeated4 -)a*a1o v. Cou&t of Appeals, $09 <CRA
.18, .$$ ?199$@ citing &ego&io '! Cou&t of Appeals, A$ <CRA 1$0 ?19A6@/! Conseuently* in the interest of
3ustice* the instant petition for revie! shall be treated as a special civil action on certiorari. -,talics ou&s/
Mo'ing on to the *e&its, state( (iDe&entl1, the issues fo& ou& &esolution a&e the follo5ing;
1/ 9hethe& o& not petitione& is entitle( to o'e&ti*e pa1, p&e*iu* pa1 fo& se&'ices &en(e&e( on &est
(a1s an( holi(a1s an( se&'ice incenti'e lea'e pa1, pu&suant to A&ticles 8A, 93, 9% an( 9. of the "abo&
Co(e7
$/ 9hethe& o& not petitione& is entitle( to a sha&e in the p&o6ts of the const&uction p&oGect7
9
1
1
3/ 9hethe& o& not petitione& &en(e&e( se&'ices f&o* 1 Ma1 to 1. Ma1 1991 an( is, the&efo&e, entitle(
to unpai( 5ages7
%/ 9hethe& o& not p&i'ate &espon(ent is liable to &ei*bu&se petitione&Ns legal eFpenses an(7
./ 9hethe& o& not petitione& is entitle( to sepa&ation pa1!
Bn the 6&st issue, the N"RC concu&&e( 5ith the "abo& A&bite&Ns &uling that petitione& 5as a *anage&ial
e*plo1ee an(, the&efo&e, eFe*pt f&o* pa1*ent of o'e&ti*e pa1, p&e*iu* pa1 fo& holi(a1s an( &est (a1s
an( se&'ice incenti'e lea'e pa1 un(e& the la5! )he N"RC (ecla&e( that;
Boo0 ,,, on con(itions of e*plo1*ent eFe*pts *anage&ial e*plo1ees f&o* its co'e&age on the g&ant of
ce&tain econo*ic bene6ts, 5hich a&e the ones the co*plainant#appellant 5as (e*an(ing f&o* &espon(ent!
,t is an un(ispute( fact that appellant 5as a *anage&ial e*plo1ee an( such, he 5as not entitle( to the
econo*ic bene6ts he sought to &eco'e&!
1
$
Petitione& clai*s that since he pe&fo&*s his (uties in the p&oGect site o& a5a1 f&o* the p&incipal place of
business of his e*plo1e& -he&ein p&i'ate &espon(ent/, he falls un(e& the catego&1 of W6el( pe&sonnel!X
8o5e'e&, petitione& accentuates that his case constitutes the eFception to the eFception because his
actual 5o&0ing hou&s can be (ete&*ine( as e'i(ence( b1 the (isbu&se*ent 'ouche&s containing pa1*ents
of petitione&Ns sala&ies an( o'e&ti*e se&'ices!
1
3 <t&angel1, petitione& is of the 'ie5 that 6el( pe&sonnel
*a1 inclu(e *anage&ial e*plo1ees!
9e a&e const&aine( to (isag&ee 5ith petitione&!
,n his o&iginal co*plaint, petitione& state( that the natu&e of his 5o&0 is Xsupe&'iso&1#enginee&ing!X
1
%
<i*ila&l1, in his o5n petition an( in othe& plea(ings sub*itte( to this Cou&t, petitione& con6&*e( that his
Gob 5as to supe&'ise the labo&e&s in the const&uction p&oGect!
1
. 8ence, although petitione& cannot st&ictl1
be classi6e( as a *anage&ial e*plo1ee un(e& A&t! 8$ of the "abo& Co(e,
1
6 an( <ec! $-b/, Rule 1, Boo0 ,,, of
the B*nibus Rules ,*ple*enting the "abo& Co(e,
1
A nonetheless he is still not entitle( to pa1*ent of the
afo&estate( bene6ts because he falls s:ua&el1 un(e& anothe& eFe*pt catego&1 # WoCce&s o& *e*be&s of a
*anage&ial staDX as (e6ne( un(e& <ec! $-c/ of the abo'e*entione( i*ple*enting &ules;
<ec! $! Exemption. # )he p&o'isions of this Rule shall not appl1 to the follo5ing pe&sons if the1 :ualif1 fo&
eFe*ption un(e& the con(ition set fo&th he&ein;
FFF FFF FFF
-c/ BCce&s o& *e*be&s of a *anage&ial staD if the1 pe&fo&* the follo5ing (uties an( &esponsibilities;
-1/ )he p&i*a&1 (ut1 consists of the pe&fo&*ance of 5o&0 (i&ectl1 &elate( to *anage*ent policies of
thei& e*plo1e&7
-$/ Custo*a&il1 an( &egula&l1 eFe&cise (isc&etion an( in(epen(ent Gu(g*ent7
1
1
1
1
1
1
-3/ ?i@ Regula&l1 an( (i&ectl1 assist a p&op&ieto& o& a *anage&ial e*plo1ee 5hose p&i*a&1 (ut1 consists
of the *anage*ent of the establish*ent in 5hich he is e*plo1e( o& sub(i'ision the&eof7 o& ?ii@ eFecute
un(e& gene&al supe&'ision 5o&0 along speciali>e( o& technical lines &e:ui&ing special t&aining, eFpe&ience,
o& 0no5le(ge7 o& ?iii@ eFecute un(e& gene&al supe&'ision special assign*ents an( tas0s7 an(
-%/ 5ho (o not (e'ote *o&e than $0 pe&cent of thei& hou&s 5o&0e( in a 5o&0#5ee0 to acti'ities 5hich
a&e not (i&ectl1 an( closel1 &elate( to the pe&fo&*ance of the 5o&0 (esc&ibe( in pa&ag&aphs -1/, -$/, an( -3/
abo'e!
A case in point is National 'u$ar Re5neries Corporation v. N(RC.
1
8 Bn the issue of W5hethe& supe&'iso&1
e*plo1ees, as (e6ne( in A&ticle $1$ -*/, Boo0 J of the "abo& Co(e, shoul( be consi(e&e( as oCce&s o&
*e*be&s Bf the *anage&ial staD un(e& A&ticle 8$, Boo0 ,,, of the sa*e Co(e an( hence not entitle( to
o'e&ti*e, &est (a1 an( holi(a1 pa1,X
1
9 this Cou&t &ule(;
A cu&so&1 pe&usal of the 4ob Jalue Cont&ibution <tate*ents of the union *e*be&s 5ill &ea(il1 sho5 that
these supe&'iso&1 e*plo1ees a&e un(e& the (i&ect supe&'ision of thei& &especti'e (epa&t*ent
supe&inten(ents an( that gene&all1 the1 assist the latte& in planning, o&gani>ing, staCng, (i&ecting,
cont&olling, co**unicating an( in *a0ing (ecisions in attaining the co*pan1Ns set goals an( obGecti'es!
)hese supe&'iso&1 e*plo1ees a&e li0e5ise &esponsible fo& the eDecti'e an( eCcient ope&ation of thei&
&especti'e (epa&t*ents! F F F
FFF FFF FFF!
+&o* the fo&egoing, it is appa&ent that the *e*be&s of &espon(ent union (ischa&ge (uties an(
&esponsibilities 5hich ineluctabl1 :ualif1 the* as oCce&s o& *e*be&s of the *anage&ial staD, as (e6ne( in
<ection $, Rule 1, Boo0 ,,, of the afo&estate( Rules to ,*ple*ent the "abo& Co(e, vi,.6 -1/ thei& p&i*a&1 (ut1
consists of the pe&fo&*ance of 5o&0 (i&ectl1 &elate( to *anage*ent policies of thei& e*plo1e&7 -$/ the1
custo*a&il1 an( &egula&l1 eFe&cise (isc&etion an( in(epen(ent Gu(g*ent7 -3/ the1 &egula&l1 an( (i&ectl1
assist the *anage&ial e*plo1ee 5hose p&i*a&1 (ut1 consists of the *anage*ent of a (epa&t*ent of the
establish*ent in 5hich the1 a&e#e*plo1e(7 -%/ the1 eFecute, un(e& gene&al supe&'ision, 5o&0 along
speciali>e( o& technical lines &e:ui&ing special t&aining, eFpe&ience, o& 0no5le(ge7 A=B the1 eFecute, un(e&
gene&al supe&'ision, special assign*ents an( tas0s7 an( -6/ the1 (o not (e'ote *o&e than $0M of thei&
hou&s 5o&0e( in a 5o&0#5ee0 to acti'ities 5hich a&e not (i&ectl1 an( clea&l1 &elate( to the pe&fo&*ance of
thei& 5o&0 he&einbefo&e (esc&ibe(!
2n(e& the facts obtaining in this case, 5e a&e const&aine( to ag&ee 5ith petitione& that the union *e*be&s
shoul( be consi(e&e( as oCce&s o& *e*be&s of the *anage&ial staD an( a&e, the&efo&e, eFe*pt f&o* the
co'e&age of A&ticle 8$! Pe&fo&ce, the1 a&e not entitle( to o'e&ti*e, &est (a1 an( holi(a1 pa1!
$
0
)he afo&e:uote( &ationale e:uall1 applies to petitione& he&ein consi(e&ing in the *ain his supe&'iso&1
(uties as p&i'ate#&espon(entNs p&oGect enginee&, (uties 5hich, it is signi6cant to note, petitione& (oes not
(ispute!
Petitione&, li0e5ise, clai*s that the N"RC faile( to gi'e (ue 5eight an( consi(e&ation to the fact that
p&i'ate &espon(ent co*pensate( hi* fo& his o'e&ti*e se&'ices as in(icate( in the 'a&ious (isbu&se*ent
'ouche&s he sub*itte( as e'i(ence!
Petitione&Ns contention is un*e&ito&ious! )hat petitione& 5as pai( o'e&ti*e bene6ts (oes not auto*aticall1
an( necessa&il1 (enote that petitione& is entitled to such bene6ts! A&t! 8$ of the "abo& Co(e speci6call1
(elineates 5ho a&e entitle( to the o'e&ti*e p&e*iu*s an( se&'ice incenti'e lea'e pa1 p&o'i(e( un(e& A&t!
8A, 93, 9% an( 9. of the "abo& Co(e an( the eFe*ptions the&eto! As p&e'iousl1 (ete&*ine(, petitione& falls
un(e& the eFe*ptions an( the&efo&e has no legal clai* to the sai( bene6ts! ,t is 5ell an( goo( that
petitione& 5as co*pensate( fo& his o'e&ti*e se&'ices! 8o5e'e&, this (oes not t&anslate into a &ight on the
1
1
$
pa&t of petitione& to (e*an( a((itional pa1*ent 5hen, un(e& the la5, petitione& is clea&l1 eFe*pte(
the&ef&o*!
oing to the secon( issue, petitione& insists that p&i'ate &espon(ent p&o*ise( hi* a sha&e in the p&o6ts
afte& co*pletion of the const&uction p&oGect! ,t is because of this o&al ag&ee*ent, petitione& eluci(ates, that
he ag&ee( to a *onthl1 sala&1 of P%,.00!00, an a*ount 5hich he clai*s is too lo5 fo& a p&ofessional ci'il
enginee& li0e hi* 5ith the &an0 of p&oGect enginee&!
A&guing fu&the&, petitione& states that pa1*ent of his o'e&ti*e se&'ices, as sho5n b1 the afo&e*entione(
(isbu&se*ent 'ouche&s, p&o'es the eFistence of this 'e&bal ag&ee*ent since pa1*ent of his o'e&ti*e
se&'ices constitutes pa&t of this so#calle( un(e&stan(ing!
9e cannot acce(e to petitione&Ns (e*an(! No5he&e in the (isbu&se*ent 'ouche&s can 5e 6n( e'en the
&e*otest hint of a p&o6t#sha&ing ag&ee*ent bet5een petitione& an( p&i'ate &espon(ent! Petitione&Ns
&ationali>ation st&etches the i*agination 5a1 too fa&!
)hus, 5e concu& 5ith the &uling of the "abo& A&bite&;
As to the issue of p&o6t sha&ing, 5e si*pl1 cannot g&ant the sa*e on the *e&e basis of co*plainantNs
allegation that &espon(ent 'e&ball1 p&o*ise( hi* that he is entitle( to a sha&e in the p&o6ts (e&i'e-(/ f&o*
the p&oGects! Bene6ts o& p&i'ileges of this natu&e -a&e/ usuall1 in 5&iting, besi(es co*plainant faile( to
-establish/ that sai( bene6ts o& p&i'ileges -ha'e/ been gi'en to an1 of &espon(ent-Ss/ e*plo1ees as a
*atte& of p&actice o& polic1!
$
1 -9o&(s in pa&enthesis supplie(!/
Anent the thi&( issue, petitione& alleges that on 30 Ap&il 1991, befo&e closing hou&s, p&i'ate &espon(entNs
p&oGect *anage&, Enginee& Nesto& 3elanta& a('ise( hi* to continue supe&'ising the W6nishing touches on
*an1 pa&ts of the buil(ing 5hich too0 hi* an( the assisting labo&e&s until 1. Ma1 1991!X
$
$
As p&oof of his eFten(e( se&'ice, petitione& p&esente( the ce&ti6cate of se&'ice issue( b1 Eng&! 3elanta&
attesting to petitione&Ns e*plo1*ent as p&oGect enginee& f&o* Ap&il 1990 to Ma1 1991!
$
3
,n cont&ast, p&i'ate &espon(ent a&gues that the abo'e*entione( ce&ti6cate 5as issue( solel1 to
acco**o(ate petitione& 5ho nee(e( the sa*e fo& his 5o&0 application ab&oa(! ,t fu&the& st&esse( that
petitione& faile( to p&o'e he actuall1 5o&0e( (u&ing the afo&estate( pe&io(!
Bn this sco&e, 5e &ule fo& the petitione&! )he pu&pose fo& 5hich the sai( ce&ti6cate 5as issue( beco*es
i&&ele'ant! )he fact &e*ains that p&i'ate &espon(ent 0no5ingl1 an( 'olunta&il1 issue( the ce&ti6cate! Me&e
(enials an( self#se&'ing state*ents to the eDect that petitione& allege(l1 p&o*ise( not to use the
ce&ti6cate against p&i'ate &espon(ent a&e not suCcient to o'e&tu&n the sa*e! 8ence, p&i'ate &espon(ent is
estoppe( f&o* assailing the contents of its o5n ce&ti6cate of se&'ice!
3u&ing the const&uction of the Monte (e Pie(a( buil(ing, a c&i*inal co*plaint fo& unGust 'eFation 5as 6le(
b1 one <al'a(o& +lo&es against the oCce&s of the Monte (e Pie(a( Q <a'ings Ban0, the o5ne& the&eof, fo&
const&ucting a bun0house in f&ont of his -+lo&es/ apa&t*ent an( *a0ing it (iCcult fo& hi* to ente& the
sa*e!
Petitione& a'e&s that he 5as i*plicate( in the co*plaint fo& the sole &eason that he 5as the const&uction
enginee& of the p&oGect! 8ence, p&i'ate &espon(ent, being the e*plo1e&, is obligate( to pa1 petitione&Ns
legal eFpenses, pa&ticula&l1, &ei*bu&se*ent of the fees petitione& pai( his counsel a*ounting to
P3,000!00! Petitione& a&gues that p&i'ate &espon(entNs act of gi'ing allo5ances to enable petitione& to
$
$
$
atten( the hea&ings, as sho5n in the (isbu&se*ent 'ouche& sub*itte( as e'i(ence,
$
% constitutes an
a(*ission of the afo&estate( obligation!
9e ag&ee 5ith petitione&! Although not (i&ectl1 i*plicate( in the c&i*inal co*plaint, p&i'ate &espon(ent is
nonetheless obligate( to (ef&a1 petitione&Ns legal eFpenses! Petitione& 5as inclu(e( in the co*plaint not in
his pe&sonal capacit1 but in his capacit1 as p&oGect enginee& of p&i'ate &espon(ent an( the case a&ose in
connection 5ith his 5o&0 as such! At the const&uction site, petitione& is the &ep&esentati'e of p&i'ate
&espon(ent being its e*plo1ee an( he acts fo& an( in behalf of p&i'ate &espon(ent! 8ence, the inclusion of
petitione& in the co*plaint fo& unGust 'eFation, 5hich 5as 5o&0#&elate(, is e:ui'alent to inclusion of p&i'ate
&espon(ent itself!
Bn the last issue, 5e &ule that petitione& is a p&oGect e*plo1ee an(, the&efo&e, not entitle( to sepa&ation
pa1!
)he applicable p&o'ision is A&ticle $80 of the "abo& Co(e 5hich (e6nes the te&* Wp&oGect e*plo1ee,X thus;
AR)! $80! Regula& an( Casual E*plo1*ent! # )he p&o'isions of 5&itten ag&ee*ent to the cont&a&1
not5ithstan(ing an( &ega&(less of the o&al ag&ee*ent of the pa&ties, an e*plo1*ent shall be (ee*e( to
be &egula& 5he&e the e*plo1ee has been engage( to pe&fo&* acti'ities 5hich a&e usuall1 necessa&1 o&
(esi&able in the usual business o& t&a(e of the e*plo1e&, except !here the employment has been 5xed for
a speci5c pro3ect or underta"in$ the completion or termination of !hich has been determined at the time
of the en$a$ement of the employee o& 5he&e the 5o&0 o& se&'ices to be pe&fo&*e( is seasonal in natu&e
an( the e*plo1*ent is fo& the (u&ation of the season! -,talics ou&s!/
$
.
,n the case at bench, it 5as (ul1 establishe( that p&i'ate &espon(ent hi&e( petitione& as p&oGect o&
const&uction enginee& speci6call1 fo& its Monte (e Pie(a( buil(ing p&oGect! ,n his o5n 5o&(s, petitione&
(ecla&e(;
FFF FFF FFF!
$! )hat co*plainant#petitione& he&ein, b1 'i&tue of an o&al ag&ee*ent ente&e( into 5ith p&i'ate &espon(ent
he&ein th&ough its p&op&ieto&, p&esi(ent an( gene&al *anage&, Eng&! 8ono&io "! Ca&los, on Ap&il 1A, 1990,
be$an to !or" as a duly licensed Civil En$ineer as construction or pro3ect en$ineer of its contracted
pro3ect* the -onte de &iedad +an" +uildin$* at Cubao* ;ue,on City, on the follo5ing te&*s an( con(itions,
to 5it;
F F F! -,talics ou&s!/
$
6
Acco&(ingl1, as p&oGect e*plo1ee, petitione&Ns se&'ices a&e (ee*e( co#te&*inous 5ith the p&oGect, that is,
petitione&Ns se&'ices *a1 be te&*inate( as soon as the p&oGect fo& 5hich he 5as hi&e( is co*plete(!
$
A
)he&e can be no (ispute that petitione&Ns (is*issal 5as (ue to the co*pletion of the const&uction of the
Monte (e Pie(a( buil(ing! Petitione& hi*self state( that it too0 hi* an( his assisting labo&e&s until 1. Ma1
1991 to co*plete the W6nishing touchesX on the sai( buil(ing!
$
8
Petitione&, thus, has no legal &ight to (e*an( sepa&ation pa1!
$
9 Polic1 ,nst&uction No! $0 entitle(
W<tabili>ing E*plo1e&#E*plo1ee Relations in the Const&uction ,n(ust&1X eFplicitl1 *an(ates that;
$
$
$
$
$
$
FFF FFF FFF
P&oGect e*plo1ees a&e not entitle( to te&*ination pa1 if the1 a&e te&*inate( as a &esult of the co*pletion
of the p&oGect o& an1 phase the&eof in 5hich the1 a&e e*plo1e(, &ega&(less of the nu*be& of p&oGects in
5hich the1 ha'e been e*plo1e( b1 a pa&ticula& const&uction co*pan1! Mo&eo'e&, the co*pan1 is not
&e:ui&e( to obtain a clea&ance f&o* the <ec&eta&1 of "abo& in connection 5ith such te&*ination! 9hat is
&e:ui&e( of the co*pan1 is a &epo&t to the nea&est Public E*plo1*ent BCce fo& statistical pu&poses!
F F F FFF FFF
3epa&t*ent B&(e& No! 19 of the 3epa&t*ent of "abo& an( E*plo1*ent -3B"E/ entitle( Wui(elines
o'e&ning the E*plo1*ent of 9o&0e&s in the Const&uction ,n(ust&1X p&o*ulgate( on 1 Ap&il 1993,
&eite&ates the sa*e &ule!
3
0
25ERE"ORE, p&e*ises consi(e&e(, the assaile( (ecision is he&eb1 MB3,+,E3 as follo5s;
1/ P&i'ate &espon(ent is o&(e&e( to pa1 petitione& fo& se&'ices &en(e&e( f&o* 1 Ma1 to 1. Ma1 19917 an(,
$/ P&i'ate#&espon(ent is o&(e&e( to &ei*bu&se petitione&Ns legal eFpenses in the a*ount of P3,000!00!
,n all othe& &espects, the i*pugne( (ecision is he&eb1 A++,RME3!
<B BR3ERE3!
Pa(illa, Bellosillo, Jitug, an( 8e&*osisi*a, 4&!, 44!, concu&!
Republic of the Philippines
SUPREME COURT
Manila
<ECBN3 3,J,<,BN

G.R. No. L);<=-+ A&.&st >-, *,,-
ELIAS VILLUGA, RENATO A'ISTA#O, JILL MEN#OEA, AN#RES A'A#, 'ENJAMIN 'RIEUELA,
NORLITO LA#IA, MARCELO AGUILAN, #AVI# ORO, NELIA 'RIEUELA, "LORA ESCO'I#O, JUSTILITA
CA'ANIG, and #OMINGO SAGUIT, petitione&s,
's!
NATIONAL LA'OR RELATIONS COMMISSION ?T5IR# #IVISION@ and 'ROA# STREET TAILORING
and/or RO#OL"O EAPANTA, &espon(ents.
+al$uma* -acasaet C Associates for petitioners.
0eresita 1andionco Oledan for private respondents.

NOCON, J.:
A basic facto& un(e&l1ing the eFe&cise of &ights an( the 6ling of clai*s fo& bene6ts un(e& the "abo& Co(e
an( othe& p&esi(ential issuances o& labo& legislations is the status an( natu&e of oneEs e*plo1*ent!
3
9hethe& an e*plo1e&#e*plo1ee &elationship eFist an( 5hethe& such e*plo1*ent is *anage&ial in
cha&acte& o& that of a &an0 an( 6le e*plo1ee a&e p&i*o&(ial consi(e&ations befo&e eFten(ing labo& bene6ts!
)hus, petitione&s in this case see0 a (e6niti'e &uling on the status an( natu&e of thei& e*plo1*ent 5ith
B&oa( <t&eet )ailo&ing an( p&a1 fo& the nulli6cation of the &esolution (ate( Ma1 1$, 1986 of the National
"abo& Relations Co**issions in N"RC Case No! RB#,J# $1..8#A8#) aC&*ing the (ecision of "abo& A&bite&
E&nilo J! PeZalosa (ate( Ma1 $8, 19A9, 5hich hel( ele'en of the* as in(epen(ent cont&acto&s an( the
&e*aining one as e*plo1ee but of *anage&ial &an0!
)he facts of the case sho5s that petitione& Elias Jilluga 5as e*plo1e( as cutte& in the tailo&ing shop
o5ne( b1 p&i'ate &espon(ent Ro(olfo Vapanta an( 0no5n as B&oa( <t&eet )ailo&ing locate( at <ha5
Boule'a&(, Man(alu1ong, Met&o Manila! As cutte&, he 5as pai( a 6Fe( *onthl1 sala&1 of P8%0!00 an( a
*onthl1 t&anspo&tation allo5ance of P%0!00! ,n a((ition to his 5o&0 as cutte&, Jilluga 5as assigne( the
cho&e of (ist&ibuting 5o&0 to the shopEs tailo&s o& se5e&s 5hen both the shopEs *anage& an( assistant
*anage& 5oul( be absent! 8e sa5 to it that thei& 5o&0 confo&*e( 5ith the patte&n he ha( p&epa&e( an( if
not, he ha( the* &e(one, &epai&e( o& &ese5n!
)he othe& petitione&s 5e&e eithe& i&one&s, &epai&*en an( se5e&s! )he1 5e&e pai( a 6Fe( a*ount fo& e'e&1
ite* i&one(, &epai&e( o& se5n, &ega&(less of the ti*e consu*e( in acco*plishing the tas0! Petitione&s (i(
not 6ll up an1 ti*e &eco&( since the1 (i( not obse&'e &egula& o& 6Fe( hou&s of 5o&0! )he1 5e&e allo5e( to
pe&fo&* thei& 5o&0 at ho*e especiall1 5hen the 'olu*e of 5o&0, 5hich (epen(e( on the nu*be& of Gob
o&(e&s, coul( no longe& be cope( up 5ith!
+&o* +eb&ua&1 1A to $$, 19A8, petitione& Jilluga faile( to &epo&t fo& 5o&0 allege(l1 (ue to illness! +o& not
p&ope&l1 notif1ing his e*plo1e&, he 5as consi(e&e( to ha'e aban(one( his 5o&0!
,n a co*plaint (ate( Ma&ch $A, 19A8, 6le( 5ith the Regional BCce of the 3epa&t*ent of "abo&, Jilluga
clai*e( that he 5as &efuse( a(*ittance 5hen he &epo&te( fo& 5o&0 afte& his absence, allege(l1 (ue to his
acti'e pa&ticipation in the union o&gani>e( b1 p&i'ate &espon(entEs tailo&s! 8e fu&the& clai*e( that he 5as
not pai( o'e&ti*e pa1, holi(a1 pa1, p&e*iu* pa1 fo& 5o&0 (one on &est (a1s an( holi(a1s, se&'ice
incenti'e lea'e pa1 an( 13th *onth pa1!
Petitione&s Renato Abista(o, 4ill Men(o>a, BenGa*in B&i>uela an( 3a'i( B&o also clai*e( that the1 5e&e
(is*isse( f&o* thei& e*plo1*ent because the1 Goine( the Philippine <ocial <ecu&it1 "abo& 2nion -P<<"2/!
Petitione&s An(&es Aba(, No&lito "a(ia, Ma&celo Aguilan, Nelia B&i>uela, +lo&a Escobi(o, 4ustilita Cabaneg
an( 3o*ingo <aguit clai*e( that the1 stoppe( 5o&0ing because p&i'ate &espon(ents ga'e the* fe5
pieces of 5o&0 to (o afte& lea&ning of thei& *e*be&ship 5ith P<<"2! All the petitione&s lai( clai*s un(e& the
(iDe&ent labo& stan(a&( la5s 5hich p&i'ate &espon(ent allege(l1 'iolate(!
Bn Ma1 $8, 19A9, "abo& A&bite& E&nilo J! PeZalosa &en(e&e( a (ecision o&(e&ing the (is*issal of the
co*plaint fo& unfai& labo& p&actices, illegal (is*issal an( othe& *one1 clai*s eFcept petitione& JillugaEs
clai* fo& 13th *onth pa1 fo& the 1ea&s 19A6, 19AA an( 1980! )he (ispositi'e po&tion of the (ecision states
as follo5s;
98ERE+BRE, p&e*ises consi(e&e(, the &espon(ent B&oa( <t&eet )ailo&ing an(Uo& Ro(olfo
Vapanta a&e he&eb1 o&(e&e( to pa1 co*plainant Elias Jilluga the su* of BNE )8B2<AN3
)9B 82N3RE3 +BR)L#E,8) PE<B< AN3 <,I)L#<,I CEN)AJB< -P1,$%8!66/ &ep&esenting his
13th *onth pa1 fo& the 1ea&s 19A6, 19AA an( 19A8! 8is othe& clai*s in this case a&e he&eb1
(enie( fo& lac0 of *e&it!
)he co*plaint insofa& as the othe& ele'en -11/ co*plainants a&e conce&ne( shoul( be, as it
is he&eb1 (is*isse( fo& 5ant of Gu&is(iction!
*
Bn appeal, the National "abo& Relations Co**ission aC&*e( the :uestione( (ecision in a &esolution (ate(
Ma1 1$, 1986, the (ispositi'e po&tion of 5hich states as follo5s;
98ERE+BRE, p&e*ises consi(e&e(, the (ecision appeale( f&o* is, as it is he&eb1 A++,RME3,
an( the appeal (is*isse(!
>
P&esi(ing Co**issione& uille&*o C! Me(ina *e&el1 concu&&e( in the &esult 5hile Co**issione& ab&iel M!
atchalian &en(e&e( a (issenting opinion 5hich states as follo5s;
, a* fo& uphol(ing e*plo1e&#e*plo1ee &elationship as a&gue( b1 the co*plainants befo&e
the "abo& A&bite& an( on appeal! )he fu&the& fact that the p&opose( (ecision &ecogni>es
co*plainantEs status as piece#&ate 5o&0e& all the *o&e c&1stalli>es e*plo1e&#e*plo1ee
&elationship the bene6ts p&a1e( fo& *ust be g&ante(!
-
8ence, petitione&s 6le( this instant certiorari case on the follo5ing g&oun(s;
1! )hat the &espon(ent National "abo& Relations Co**ission abuse( its (isc&etion 5hen it
&ule( that petitione&Uco*plainant, Elias Jilluga falls 5ithin the catego&1 of a *anage&ial
e*plo1ee7
$! ! ! ! 5hen it &ule( that the he&ein petitione&s 5e&e not (is*isse( b1 &eason of thei& union
acti'ities7
3! ! ! ! 5hen it &ule( that petitione&s An(&es Aba(, BenGa*in B&i>uela, No&lito "a(ia, Ma&celo
Aguilan, 3a'i( B&o, Nelia B&i>uela, +lo&a Escobi(o, 4ustilita Cabaneg an( 3o*ingo <aguit
5e&e not e*plo1ees of p&i'ate &espon(ents but 5e&e cont&acto&s!
%! ! ! ! 5hen it &ule( that petitione& Elias Jilluga is not entitle( to o'e&ti*e pa1 an( se&'ices
fo& <un(a1s an( "egal 8oli(a1s7 an(
.! ! ! ! 5hen it faile( to g&ant petitione&s thei& &especti'e clai*s un(e& the p&o'isions of P!3!
Nos! 9$., 11$3 an( 8.1!
0
2n(e& Rule 1, <ection $-c/, Boo0 ,,, of the ,*ple*enting Rules of "abo& Co(e, to be a *e*be& of a
*anage&ial staD, the follo5ing ele*ents *ust concu& o& co#eFist, to 5it; -1/ that his p&i*a&1 (ut1 consists
of the pe&fo&*ance of 5o&0 (i&ectl1 &elate( to *anage*ent policies7 -$/ that he custo*a&il1 an( &egula&l1
eFe&cises (isc&etion an( in(epen(ent Gu(g*ent in the pe&fo&*ance of his functions7 -3/ that he &egula&l1
an( (i&ectl1 assists in the *anage*ent of the establish*ent7 an( -%/ that he (oes not (e'ote his t5ent1
pe& cent of his ti*e to 5o&0 othe& than those (esc&ibe( abo'e!
Appl1ing the abo'e c&ite&ia to petitione& Elias JillugaEs case, it is un(ispute( that his p&i*a&1 5o&0 o& (ut1
is to cut o& p&epa&e patte&ns fo& ite*s to be se5n, not to la1 (o5n o& i*ple*ent an1 of the *anage*ent
policies, as the&e is a *anage& an( an assistant *anage& 5ho pe&fo&* sai( functions! ,t is t&ue that in the
absence of the *anage& the assistant *anage&, he (ist&ibutes an( assigns 5o&0 to e*plo1ees but such
(ut1, though in'ol'ing (isc&etion, is occasional an( not &egula& o& custo*a&1! 8e ha( also the autho&it1 to
o&(e& the &epai& o& &ese5ing of (efecti'e ite* but such autho&it1 is pa&t an( pa&cel of his function as cutte&
to see to it that the ite*s cut a&e se5n co&&ectl1 lest the (efecti'e natu&e of the 5o&0*anship be att&ibute(
to his =poo& cutting!= Elias Jilluga (oes not pa&ticipate in polic1#*a0ing! Rathe&, the functions of his
position in'ol'e eFecution of app&o'e( an( establishe( policies! ,n Fran"lin +a"er Company of the
&hilippines v! 0ra3ano,
<
it 5as hel( that e*plo1ees 5ho (o not pa&ticipate in polic1#*a0ing but a&e gi'en
&ea(1 policies to eFecute an( stan(a&( p&actices to obse&'e a&e not *anage&ial e*plo1ees! )he test of
=supe&'iso&1 o& *anage&ial status= (epen(s on 5hethe& a pe&son possesses autho&it1 that is not *e&el1
&outina&1 o& cle&ical in natu&e but one that &e:ui&es use of in(epen(ent Gu(g*ent! ,n othe& 5o&(s, the
functions of the position a&e not *anage&ial in natu&e if the1 onl1 eFecute app&o'e( an( establishe(
policies lea'ing little o& no (isc&etion at all 5hethe& to i*ple*ent sai( policies o& not!
/
Conse:uentl1, the eFclusion of Jilluga f&o* the bene6ts clai*e( un(e& A&ticle 8A -o'e&ti*e pa1 an(
p&e*iu* pa1 fo& holi(a1 an( &est (a1 5o&0/, A&ticle 9%, -holi(a1 pa1/, an( A&ticle 9. -se&'ice incenti'e
lea'e pa1/ of the "abo& Co(e, on the g&oun( that he is a *anage&ial e*plo1ee is un5a&&ante(! 8e is
(e6nitel1 a &an0 an( 6le e*plo1ee hi&e( to pe&fo&* the 5o&0 of the cutte& an( not hi&e( to pe&fo&*
supe&'iso&1 o& *anage&ial functions! )he fact that he is unifo&*l1 pai( b1 the *onth (oes not eFclu(e hi*
f&o* the bene6ts of holi(a1 pa1 as hel( in the case of #nsular +an" of America Employees )nion v! #ncion$!
;
8e shoul( the&efo&e be pai( in a((ition to the 13th *onth pa1, his o'e&ti*e pa1, holi(a1 pa1, p&e*iu*
pa1 fo& holi(a1 an( &est (a1, an( se&'ice incenti'e lea'e pa1!
As to the (is*issal of the cha&ge fo& unfai& labo& p&actices of p&i'ate &espon(ent consisting of te&*ination
of e*plo1*ent of petitione&s an( acts of (isc&i*ination against *e*be&s of the labo& union, the
&espon(ent Co**ission co&&ectl1 hel( the absence of e'i(ence that M&! Vapanta 5as a5a&e of petitione&sE
allege( union *e*be&ship on +eb&ua&1 $$, 19A8 as the notice of union eFistence in the establish*ent 5ith
p&oposal fo& &ecognition an( collecti'e ba&gaining negotiation 5as &ecei'e( b1 *anage*ent onl1 an Ma&ch
3, 19A8! ,n(ee(, self#se&'ing allegations 5ithout conc&ete p&oof that the p&i'ate &espon(ent 0ne5 of thei&
*e*be&ship in the union an( acco&(ingl1 &eacte( against thei& *e*be&ship (o not suCce!
No& is p&i'ate &espon(entEs clai* that petitione& Jilluga aban(one( his 5o&0 acceptable! +o& aban(on*ent
to constitute a 'ali( cause fo& (is*issal, the&e *ust be a (elibe&ate an( unGusti6e( &efusal of the e*plo1ee
to &esu*e his e*plo1*ent! Me&e absence is not suCcient, it *ust be acco*panie( b1 o'e&t acts
une&&ingl1 pointing to the fact that the e*plo1ee si*pl1 (oes not 5ant to 5o&0 an1*o&e!
+
At an1 &ate,
(is*issal of an e*plo1ee (ue to his p&olonge( absence 5ithout lea'e b1 &eason of illness (ul1 establishe(
b1 the p&esentation of a *e(ical ce&ti6cate is not Gusti6e(!
,
,n the case at ba&, ho5e'e&, consi(e&ing that
petitione& Jilluga absente( hi*self fo& fou& -%/ (a1s 5ithout lea'e an( 5ithout sub*itting a *e(ical
ce&ti6cate to suppo&t his clai* of illness, the i*position of a sanction is Gusti6e(, but su&el1, not (is*issal,
in the light of the fact that this is petitione&Es 6&st oDense! ,n lieu of &einstate*ent, petitione& Jilluga shoul(
be pai( sepa&ation pa1 5he&e &einstate*ent can no longe& be eDecte( in 'ie5 of the long passage of ti*e
o& because of the &ealities of the situation!
*=
But petitione& shoul( not be g&ante( bac05ages in a((ition to
&einstate*ent as the sa*e is not Gust an( e:uitable un(e& the ci&cu*stances consi(e&ing that he 5as not
enti&el1 f&ee f&o* bla*e!
**
As to the othe& ele'en petitione&s, the&e is no clea& sho5ing that the1 5e&e (is*isse( because the
ci&cu*stances su&&oun(ing thei& (is*issal 5e&e not e'en allege(! 8o5e'e&, 5e (isag&ee 5ith the 6n(ing of
&espon(ent Co**ission that the ele'en petitione&s a&e in(epen(ent cont&acto&s!
+o& an e*plo1e&#e*plo1ee &elationship to eFist, the follo5ing ele*ents a&e gene&all1 consi(e&e(; =-1/ the
selection an( engage*ent of the e*plo1ee7
-$/ the pa1*ent of 5ages7 -3/ the po5e& of (is*issal an( -%/ the po5e& to cont&ol the e*plo1eeEs
con(uct!=
*>
Noting that the he&ein petitione&s 5e&e oftenti*es allo5e( to pe&fo&* thei& 5o&0 at ho*e an( 5e&e pai(
5ages on a piece#&ate basis, the &espon(ent Co**ission appa&entl1 foun( the secon( an( fou&th ele*ents
lac0ing an( &ule( that =the&e is no e*plo1e&#e*plo1ee &elationship, fo& it is clea& that &espon(ents a&e
inte&este( onl1 in the &esult an( not in the *eans an( *anne& an( ho5 the &esult is obtaine(!=
Respon(ent Co**ission is in e&&o&! )he *e&e fact that petitione&s 5e&e pai( on a piece#&ate basis is no
a&gu*ent that he&ein petitione&s 5e&e not e*plo1ees! )he te&* =5age= has been b&oa(l1 (e6ne( in A&ticle
9A of the "abo& Co(e as &e*une&ation o& ea&nings, capable of being eFp&esse( in te&*s of *one1 5hethe&
6Fe( o& asce&taine( on a ti*e, tas0, piece o& co**ission
basis! ! ! != )he facts of this case in(icate that pa1*ent b1 the piece is Gust a *etho( of co*pensation an(
(oes not (e6ne the essence of the
&elation!
*-
)he petitione&s 5e&e allo5e( to pe&fo&* thei& 5o&0 at ho*e (oes not li0e5ise i*pl1 absence of
cont&ol an( supe&'ision! )he cont&ol test calls *e&el1 fo& the eFistence of a &ight to cont&ol the *anne& of
(oing the 5o&0, not the actual eFe&cise of the &ight!
*0
,n (ete&*ining 5hethe& the &elationship is that of e*plo1e& an( e*plo1ee o& one of an in(epen(ent
cont&acto&, =each case *ust be (ete&*ine( on its o5n facts an( all the featu&es of the &elationship a&e to
be consi(e&e(!=
*<
Consi(e&ing that petitione&s 5ho a&e eithe& se5e&s, &epai&*en o& i&one&, ha'e been in
the e*plo1 of p&i'ate &espon(ent as ea&l1 as 19A$ o& at the latest in 19A6, faithfull1 &en(e&ing se&'ices
5hich a&e (esi&able o& necessa&1 fo& the business of p&i'ate &espon(ent, an( obse&'ing *anage*entEs
app&o'e( stan(a&(s set fo& thei& &especti'e lines of 5o&0 as 5ell as the custo*e&sE speci6cations,
petitione&s shoul( be consi(e&e( e*plo1ees, not in(epen(ent cont&acto&s!
,n(epen(ent cont&acto&s a&e those 5ho eFe&cise in(epen(ent e*plo1*ent, cont&acting to (o a piece of
5o&0 acco&(ing to thei& o5n *etho(s an( 5ithout being subGecte( to cont&ol of thei& e*plo1e& eFcept as to
the &esult of thei& 5o&0! B1 the natu&e of the (iDe&ent phases of 5o&0 in a tailo&ing shop 5he&e the
custo*e&sE speci6cations *ust be follo5e( to the lette&, it is inconcei'able that the 5o&0e&s the&ein 5oul(
not be subGecte( to cont&ol!
,n Rosario +rothers* #nc! v! Ople,
*/
this Cou&t &ule( that tailo&s an( si*ila& 5o&0e&s hi&e( in the tailo&ing
(epa&t*ent, although pai( 5ee0l1 5ages on piece 5o&0 basis, a&e e*plo1ees not in(epen(ent cont&acto&s!
Acco&(ingl1, as &egula& e*plo1ees, pai( on a piece#&ate basis, petitione&s a&e not entitle( to o'e&ti*e pa1,
holi(a1 pa1, p&e*iu* pa1 fo& holi(a1U&est (a1 an( se&'ice incenti'e lea'e pa1! )hei& clai* fo& sepa&ation
pa1 shoul( also be (e6ne( fo& lac0 of e'i(ence that the1 5e&e in fact (is*isse( b1 p&i'ate &espon(ent!
)he1 shoul( be pai(, ho5e'e&, thei& 13th *onth pa1 un(e& P!3! 8.1, since the1 a&e e*plo1ees not
in(epen(ent cont&acto&s!
98ERE+BRE, in 'ie5 of the fo&egoing &easons, the assaile( (ecision of &espon(ent National "abo&
Relations Co**ission is he&eb1 MB3,+,E3 b1 a5a&(ing H
-a/ in fa'o& of petitione& Jilluga, o'e&ti*e pa1, holi(a1 pa1, p&e*iu* pa1 fo& holi(a1 an( &est (a1, se&'ice
incenti'e lea'e pa1 an( sepa&ation pa1, in a((ition to his 13th *onth pa17 an(
-b/ in fa'o& of the &est of the petitione&s, thei& &especti'e 13th *onth pa1!
)he case is he&eb1 REMAN3E3 to the National "abo& Relations Co**ission fo& the co*putation of the
clai*s he&ein#abo'e *entione(!
<B BR3ERE3!
Narvasa C.J.* &adilla* Re$alado and &uno* JJ.* concur.