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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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* SECOND DIVISION.
347
The power of control refers merely to the existence of the power, and
not to the actual exercise thereof. The principal consideration is
whether the employer has the right to control the manner of doing
the work, and it is not the actual exercise of the right by interfering
with the work, but the right to control, which constitutes the test of
the existence of an employer-employee relationship. In the case at
bar, private respondent Pacfor, as employer, clearly possesses such
right of control. Petitioner, as private respondent Pacfors resident
agent in the Philippines, is, exactly so, only an agent of the
corporation, a representative of Pacfor, who transacts business, and
accepts service on its behalf.
Employer-Employee Relationship; Constructive Dismissals;
Although there is no reduction of the salary of petitioner, constructive
dismissal is still present because continued employment of petitioner
is rendered, at the very least, unreasonable.Although there is no
reduction of the salary of petitioner, constructive dismissal is still
present because continued employment of petitioner is rendered, at
the very least, unreasonable. There is an act of clear discrimination,
insensibility or disdain by the employer that continued employment
may become so unbearable on the part of the employee so as to
foreclose any choice on his part except to resign from such
employment.
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
PUNO,J.:
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348
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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349
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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8 Id., at p. 64.
9 CA Rollo, p. 684. Other terms of the revised agreement include:
a)ATM and Pacfor-USA shall jointly manage Pacfor Phils.
b)Pacfor-Phils. will earn commissions at 1.5% of F.O.B. value,
the computation of which shall be shown in a credit memo issued
by Cellmark/Pacfor.
c)Losses, if any, will be reimbursed by Cellmark/
Pacfor to ATM for ATMs share of the loss, for two consecutive
years beginning with the first year of loss.
d)The revised agreement shall take effect on January 1, 1997.
e)Cash paid to the representative office by Pacific Paper
belongs to Pacfor and will be held in trust by ATM.
10 Id., at p. 685.
350
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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11 Rollo, p. 528.
12 Id., at p. 527.
13 Ibid.
14 Id., at p. 532.
15 Id., at p. 539.
16 Id., at p. 541.
17 Id., at p. 544.
351
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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18 Id., at p. 545.
19 CA Rollo, p. 829.
20 Id., at p. 828.
21 Rollo, pp. 546-550.
352
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
company records were turned over only on January 26, 2001. This
means our jobs with Pacific Forest were terminated effective
December 19, 2000. I am concerned about your welfare. I would like
to help you by offering you to work with ATM Marketing
Corporation.
Please let me know if you are interested.22
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22 Id., at p. 553.
23 Id., at pp. 546-550.
24 Id., at p. 560.
25 Id., at pp. 554-558.
353
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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26 Id., at p. 560.
27 Id., at p. 561.
28 CA Rollo, p. 652.
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
354
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
30 Id., at p. 150.
31 Id., at pp. 231-240.
32 CA Rollo, pp. 333-335.
33 Id., at pp. 84-86.
34 Rollo, pp. 14-36.
355
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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35 Id., at p. 27.
36 Esteban B. Bautista, Treatise on Philippine Partnership Law, 1978
ed., citing Nelson v. Abraham, 177 P.2d 931 (1947); Henry
356
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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357
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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358
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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359
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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360
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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48 Ibid.
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SUPREME COURT REPORTS ANNOTATED VOLUME 497 6/22/17, 3:56 PM
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