Академический Документы
Профессиональный Документы
Культура Документы
Co., Inc. [169 SCRA 497, GR 80680] Held: Yes. The existence of an employer-employee relation
cannot be made the subject of an agreement.
Posted by Pius Morados on November Based on Article 106, “labor-only” contractor is considered
17, 2011 merely as an agent of the employer, and the liability must be
shouldered by either one or shared by both.
(Labor Standards – Both employer and labor only contractor
There is no doubt that in the case at bar, Livi performs
may be liable)
“manpower services”, meaning to say, it contracts out labor in
Facts: Petitioners filed a petition in the NLRC for reinstatement favor of clients. We hold that it is one notwithstanding its
and payment of various benefits against California vehement claims to the contrary, and notwithstanding the
Manufacturing Company. The respondent company then provision of the contract that it is “an independent
denied the existence of an employer-employee relationship contractor.” The nature of one’s business is not determined by
between the company and the petitioners. self-serving appellations one attaches thereto but by the tests
provided by statute and prevailing case law. The bare fact that
Pursuant to a manpower supply agreement, it appears that the
Livi maintains a separate line of business does not extinguish
petitioners prior their involvement with California
the equal fact that it has provided California with workers to
Manufacturing Company were employees of Livi Manpower
pursue the latter’s own business. In this connection, we do not
service, an independent contractor, which assigned them to
agree that the petitioners had been made to perform activities
work as “promotional merchandisers.” The agreement provides
‘which are not directly related to the general business of
that:
manufacturing,” California’s purported “principal operation
California “has no control or supervisions whatsoever over activity.” Livi, as a placement agency, had simply supplied
[Livi’s] workers with respect to how they accomplish their California with the manpower necessary to carry out its
work or perform [Californias] obligation” It was further (California’s) merchandising activities, using its (California’s)
expressly stipulated that the assignment of workers to premises and equipment.
California shall be on a “seasonal and contractual basis”; that
“[c]ost of living allowance and the 10 legal holidays will be
charged directly to [California] at cost “; and that “[p]ayroll for
the preceding [sic] week [shall] be delivered by [Livi] at
[California’s] premises.”
SSS (petitioner) vs. C.A. and Ayalde equipments and carabao as well as having his
own work schedule.
(respondents) o Ayalde never exercised control over the manner
Nature: Petition Tana used performed his work.
o Wanted the case dismissed because Tana was
Facts: never her employee
o Ignacio Tana Sr. had a wife named Margarita Tana o Social Security Commission issued a resolution that
o Ignacio worked for Conchita Ayalde (respondent) as a stated that:
farmhand in 2 sugarcane plantations from 1961- 1979. o Tana was an employee of Conchita Ayalde due
o Ignacio received the minimum wage at that time while to the testimony of the Tana’s co-workers.
social security contributions were deducted from his o Ayalde was liable for payment of damages and
wage.. SSS give Mrs. Tana her accrued pension.
o When he died, his wife found out that Tana was never o C.A. stated otherwise and declaring the decision in
reported for coverage nor his contributions remitted to favour of Ayalde.
the SSS (petitioner).
Issue: whether or not an agricultural laborer who was hired on
o Margarita Tana was deprived of the burial grant “pakyaw” basis can be considered an employee entitled to
and pension. compulsory coverage and corresponding benefits under the
o She wanted: Social Security Law.
o Respondents Ayalde to pay the premium
contributions of her husband Decision:
o SSS to grant Mrs. Tanada her burial grant and o Aylade failed to show complete documents to
pension due to her. strengthen her claim that Tana was not her employee
o SSS stated that Conchita Ayalda were never registered o Margarita Tana’s testimony corroborated by 2 other
to the SSS thus Mr. Tana was never registered as well. witnesses
o Ayalde (respondent) denied allegations that Mr. Tana o Mr. Tana was paid a daily wage which
was her employee Ayalde’s overseer disbursed every 15 days.
o He was only hired intermittently as an o No particular form of evidence is required to prove the
independent contractor and used his own existence of an employer-employee relationship. Any
competent and relevant evidence to prove the Brotherhood Labor Unity Movement of
relationship may be admitted.
o the testimonial evidence of the claimant and her the Phil. v. Zamora
witnesses constitute positive and credible evidence of
the existence of an employer-employee relationship
between Tana and Ayalde. Facts:
o Tana and his family lived inside the plantation of The petitioners are workers who have been employed at the
Ayalde thus the logical explanation is that he was San Miguel Parola Glass Factory as “pahinantes” or
working exclusively for Ayalde throughout the year. “kargadors” for almost seven years. They worked exclusively
o Ayalde exercised control over Tana indirectly, through at the SMC plant, never having been assigned to other
her overseer. companies or departments of San Miguel Corp, even when the
o There is substantial evidence that Tana was paid a daily volume of work was at its minimum. Their work was neither
wage thus he is entitled to compulsory coverage. regular nor continuous, depending on the volume of bottles to
o Ayalde failed to counter these positive assertions. Even be loaded and unloaded, as well as the business activity of the
on the assumption that there were no deductions, the company. However, work exceeded the eight-hour day and
fact remains that Tana was and should have been sometimes, necessitated work on Sundays and holidays. -for
this, they were neither paid overtime nor compensation.
covered under the Social Security Law. The
circumstances of his employment place him outside the Sometime in 1969, the workers organized and affiliated
ambit of the exception provided in Section 8(j) of themselves with Brotherhood Labor Unity Movement
Republic Act No. 1611, as amended by Section 4 of (BLUM). They wanted to be paid to overtime and holiday pay.
R.A. 2658. They pressed the SMC management to hear their grievances.
BLUM filed a notice of strike with the Bureau of Labor
WHEREFORE, in view of all the foregoing, the Decision Relations in connection with the dismissal of some of its
of the Court of Appeals in C.A.-G.R. SP No. 16427 and the members. San Miguel refused to bargain with the union
Resolution dated June 14, 1991 are hereby REVERSED and alleging that the workers are not their employees but the
SET ASIDE. The Resolution of the Social Security employees of an independent labor contracting firm,
Commission in SSC Case No. 8851 is REINSTATED. Guaranteed Labor Contractor.
The workers were then dismissed from their jobs and denied
entrance to the glass factory despite their regularly reporting
for work. A complaint was filed for illegal dismissal and unfair and habituality of the petitioner’s work bolsters the claim of an
labor practices. employee status.
As for the payment of the workers’ wages, the contention that
the independent contractors were paid a lump sum representing
Issue:
only the salaries the workers where entitled to have no merit.
Whether or not there was employer-employee (ER- The amount paid by San Miguel to the contracting firm is no
EE)relationship between the workers and San Miguel Corp. business expense or capital outlay of the latter. What the
contractor receives is a percentage from the total earnings of all
the workers plus an additional amount from the earnings of
Held: each individual worker.
YES. In determining if there is an existence of the (ER-EE) The power of dismissal by the employer was evident when the
relationship, the four-fold test was used by the Supreme petitioners had already been refused entry to the premises. It is
Court. These are: apparent that the closure of the warehouse was a ploy to get rid
of the petitioners, who were then agitating the company for
· The selection and engagement of the employee reforms and benefits.
· Payment of wages The inter-office memoranda submitted in evidence prove the
· Power of dismissal company’s control over the workers. That San Miguel has the
power to recommend penalties or dismissal is the strongest
· Control Test- the employer’s power to control the indication of the company’s right of control over the workers
employee with respect to the means and methods by which as direct employer.
work is to be accomplished
In the case, the records fail to show that San Miguel entered
into mere oral agreements of employment with the workers.
Considering the length of time that the petitioners have worked
with the company, there is justification to conclude that they
were engaged to perform activities necessary in the usual
business or trade. Despite past shutdowns of the glass plant, the
workers promptly returned to their jobs. The term of the
petitioner’s employment appears indefinite and the continuity
LIRIO v. GENOVIA recording technician whenever a client uses the studio for
recording, editing or any related work.
G.R. No. 169757 November 23, 2011
- Respondent stated that a few days after he started working as
petitioners Cesar C. Lirio, doing business under the a studio manager, petitioner approached him and told him
name and style of CELKOR AD SONICMIX about his project to produce an album for his 15y.o.
daughter, Celine Mei Lirio, a former talent of ABS-CBN Star
respondents Wilmer D. Genovia
Records. Petitioner asked respondent to compose and arrange
songs for Celine and promised that he (Lirio) would draft a
contract to assure respondent of his compensation for such
summary services. As agreed upon, the additional services that
Studio manager + composer. Genovia was terminated because respondent would render included composing and arranging
he did not agree with the small compensation scheme proposed musical scores only, while the technical aspect in producing
by Lirio. The court held that they have an employer-employee the album, such as digital editing, mixing and sound
relationship and that LA & CA is correct – Genovia was engineering would be performed by respondent in his
illegally dismissed. capacity as studio manager for which he was paid on a
monthly basis. Respondent then started making the album.
- Genovia alleged that before the end of Sept 2001, he
facts of the case (sorry super long) reminded petitioner about his compensation as composer and
- July 9, 2002: Respondent Genovia filed a complaint against arranger of the album. Petitioner verbally assured him that he
Petitioner Lirio and/or Celkor Ad Sonicmix Recording Studio would be duly compensated. On Feb 26, 2002 (after the carrier
for illegal dismissal, non-payment of commission and award of single was already aired in over the radio on Feb 22),
moral and exemplary damages. respondent again reminded petitioner about the contract on his
compensation as composer and arranger of the album.
- In his Position Paper, respondent Genovia alleged, among Petitioner told respondent that since he was practically a
others, that on August 15, 2001, he was hired as studio nobody and had proven nothing yet in the music industry,
manager by petitioner Lirio. He was employed to manage and respondent did not deserve a high compensation, and he
operate Celkor and to promote and sell the recording studio's should be thankful that he was given a job to feed his
services to music enthusiasts and other prospective clients. He family (kapal ng mukha!). Petitioner informed respondent that
received a monthly salary of P7k. They also agreed that he was he was entitled only to 20% of the net profit, and not of the
entitled to an additional commission of P100 per hour as gross sales of the album, and that the salaries he received and
would continue to receive as studio manager of Celkor would Sonicmix Recording Studio. He looked for a
be deducted from the said 20% net profit share. composer/arranger who would compose the songs for the said
album – found Genovia. Respondent verbally agreed with petitioner
- Respondent objected and insisted that he be properly to co-produce the album based on the following terms and
compensated. On March 14, 2002, petitioner verbally conditions: (1) petitioner shall provide all the financing, equipment
terminated respondent’s services, and he was instructed not and recording studio; (2) Celine Mei Lirio shall sing all the songs;
to report for work. (3) respondent shall act as composer and arranger of all the lyrics and
the music of the five songs he already composed and the revival
- Respondent asserts that he was illegally dismissed as he was songs; (4) petitioner shall have exclusive right to market the album;
terminated without any valid grounds, and no hearing was (5) petitioner was entitled to 60% of the net profit, while respondent
conducted before he was terminated, in violation of his and Celine Mei Lirio were each entitled to 20% of the net profit; and
constitutional right to due process. Having worked for more (6) respondent shall be entitled to draw advances of P7,000.00 a
than six months, he was already a regular employee. Although month, which shall be deductible from his share of the net profits and
he was a so called “studio manager,” he had no managerial only until such time that the album has been produced. Petitioner
powers, but was merely an ordinary employee. asserted that from the aforesaid terms and conditions, his relationship
with respondent is one of an informal partnership under Article 1767
- Respondent’s evidence consisted of the Payroll dated July 31, of NCC, since they agreed to contribute money, property or industry
2001 to March 15, 2002, which was certified correct by to a common fund with the intention of dividing the profits among
petitioner, and Petty Cash Vouchers evidencing receipt of themselves. Hence, petitioner contended that no employer-employee
payroll payments by respondent from Celkor. relationship existed between him and the respondent, and there was
no illegal dismissal to speak of.
- LA: Genovia is illegally dismissed. NLRC: reversed. CA:
reversed and reinstated LA decision.
The provision on employment on probationary status under the Given the clear constitutional and statutory intents, we cannot
Labor Code is a primary example of the fine balancing of but conclude that in a situation where the probationary status
overlaps with a fixed-term contract not specifically used for the CASE DIGEST: Abbott Laboratories
fixed term it offers, Article 281 should assume primacy and the
fixed-period character of the contract must give way. This Phil. et.al. v. Pearlie Ann F. Alcaraz
conclusion is immeasurably strengthened by the petitioners’ [G.R. No. 192571, July 23, 2013]
and the AMACC’s hardly concealed expectation that the Subject: Labor Law – Probationary employees – Standards to
employment on probation could lead to permanent status, and qualify as a regular employee
that the contracts are renewable unless the petitioners fail to Decision (Perlas-Bernarbe, J.)
pass the school’s standards. Dissent (Brion, J.)
FACTS:
While we can grant that the standards were duly communicated On June 27, 2004, Abbott Laboratories, Philippines (Abbott)
to the petitioners and could be applied beginning the 1 st caused the publication in a major broadsheet newspaper of its
trimester of the school year 2000-2001, glaring and very basic need for a Medical and Regulatory Affairs Manager who would:
gaps in the school’s evidence still exist. The exact terms of the (a) be responsible for drug safety surveillance operations,
standards were never introduced as evidence; neither does the staffing, and budget; (b) lead the development and
evidence show how these standards were applied to the implementation of standard operating procedures/policies for
petitioners. Without these pieces of evidence (effectively, the drug safety surveillance and vigilance; and (c) act as the primary
finding of just cause for the non-renewal of the petitioners’ interface with internal and external customers regarding safety
contracts), we have nothing to consider and pass upon as valid operations and queries.
or invalid for each of the petitioners. Alcaraz – who was then a Regulatory Affairs and Information
Manager at Aventis Pasteur Philippines, Incorporated (another
In this light, the CA decision should be reversed. pharmaceutical company like Abbott) – showed interest and
submitted her application on October 4, 2004.
On December 7, 2004, Abbott formally offered Alcaraz the
above-mentioned position which was an item under the
company’s Hospira Affiliate Local Surveillance Unit (ALSU)
department.
FACTS: PR had been working for a year as a security guard the same, in order to deprive subject employees of the
with the Sugarland Security Services, Inc., a sister company of benefits he is entitled to under the law.
1. Whether PR’s employment with A’ Prime Securities was just security tenure. PR’s alleged violations of sleeping on post
a continuation of his employment with Sugarland. and quarrelling with a worker were first infractions and do
not amount to valid grounds for terminating employment.
2. Whether PR is a regular employee and
thereby illegally dismissed.
HELD:
It is true that Article 283 of the Labor Code provides that an Termination of Gelig and Quijano was unjust and illegal. CSCI
“employer may also terminate the employment of any is ordered to reinstate Gelig and Quijano to their fromer
employee due to the installation of labor-serving devices, positions at the time of dismissal, or if such reinstatement is not
redundancy, retrenchment to prevent losses or the closing or possible, to substantially equivalent positions, without loss of
cessation of operation of the establishment or undertaking.” seniority rights and other privileges appertaining thereto and to
pay them 3 years backwards, from Octber 18, 1977 without
BUT: qualification or deduction. If reinstatement is not possible due
to supervenience of events which prevent the same, CSCI is
ordered to pay them, more as a vindication of a right and less
as indemnification of a loss, separation pay equivalent to 1 Aklan College vs. Guarino [G.R. No.
month’s salary based on their monthly salaries as of October
17, 1977.. 152949, August 14, 2007]
Facts: Guarino was first hired as an instructor. Then he was
appointed as Acting Dean (for 17 years) of the Commerce and
Secretarial Department and later as Acting Personnel Director,
in addition to his duties as acting dean. His appointment as
Acting Personnel Director was in a temporary basis and until it
is revoked by the President or Rector of the College.
A year after he went on leave for one year. Then he wrote to
the Rector about his intention of reassuming his positions. The
School rejected saying that he is not qualified for the position
and has already been filled up by a regular incumbent. Guarino
served as acting dean for 17 years.
Issue: Did Guarino attain security of tenure as Acting Dean
and as Acting Personnel Director?
Held:
No, he did not.
Acting appointment is merely temporary, one cannot insist
on it. An acting appointment is merely temporary, or one
which is good until another appointment is made to take its
place. And if another person is appointed, the temporary
appointee should step out and cannot even dispute the validity
of his successor’s appointment. The undisturbed unanimity of
cases is that one who holds a temporary appointment has no
fixed tenure of office; his employment can be terminated
anytime at the pleasure of the appointing power without need
to show that it is for cause.
Permanent appointment can only be issued to one who he could not be deemed as separated from the service because
meets the qualification. A permanent appointment can be his employment as instructor remains
issued only to a person who meets all the requirements for the
position to which he is being appointed; a person who does not
have the requisite qualifications for the position cannot be
appointed to it in the first place or, only as an exception to the
rule, may be appointed to it merely in an acting capacity in the
absence of persons who are qualified.
The applicable law is DECS Manual, not the Labor Code. It
is settled that questions respecting a private school teacher’s
entitlement to security of tenure are governed by the Manual of
Regulations for Private Schools and not the Labor Code. Under
DECS Manual of Regulations for Private Schools, the
acquisition of a Master’s degree has been made a requirement
before a person can be appointed as Dean of an undergraduate
program. Guarino does not have a Master’s Degree.
Notice of dismissal from an acting capacity is not required
There is no need of a notice to the acting appointee or any form
of hearing. Such procedural requirements apply where the
officer is removable only for cause. This Court reiterates the
rule that a bona fide appointment in an acting capacity is
essentially temporary and revocable in character and the holder
of such appointment may be removed anytime even without
hearing or cause.
Separation pay is due only when there is actual
termination/separation While Guarino was no longer allowed
to return to his positions as Acting Dean and Acting Personnel
Director he was, nonetheless, retained as an instructor. Hence,
G.R. No. 82918 March 11, 1991 probationary employment of professors, instructors and
teachers shall be subject to standards established by the
LA SALETTE OF SANTIAGO, INC., Department of Education and Culture. Said standards are
petitioner, embodied in paragraph 75 of the Manual of Regulations for
Private Schools. Unlike teachers (assistant instructors,
vs. assistant, professors, associate professors, full professors) who
NATIONAL LABOR RELATIONS aspire for and expect to acquired permanency, or security of
tenure, in their employment, as faculty members, teachers who
COMMISSION and CLARITA are appointed as department heads or administrative officials
JAVIER, respondents. (e.g., college or department secretaries principals, directors,
assistant deans, deans) do not normally, and should not expect
Facts: Private respondent has been assigned to different to, acquire a second status of permanency, or an additional or
administrative and teaching positions of the petitioner’s school second security of tenure as such officer. The acquisition of
system, a private school system, where private respondent was such an additional tenure, to repeat, is not consistent with
initially employed for three years as high school principal. In normal practice, constitutes the exception rather than the rule,
1984 to 1986 private respondent was again assigned as the high and may take place only where categorically and explicitly
school principal of the petitioner. After her term as high school provided by law or agreement of the parties. Therefore, private
principal she received a letter from the petitioner instructing respondent did not acquire permanency or tenure in the
her to report to La Sallete College and stating the person as her position of high school principal of the educational system of
replacement as high school principal. Private respondent wrote La Sallete of Santiago Inc.
a letter to the petitioner complaining of her sudden removal as
high school principal but did not received any reply so she filed
a complaint before the Labor Arbiter for illegal dismissal. The
Labor Arbiter decided in her favor and the CA affirmed the
decision of the Labor Arbiter.
Issue: Whether or not private respondent had acquired
permanency, or tenure in the position of high school principal
of the educational system of La Salette of Santiago Inc.?
Held: The Court held, according to Policy Instructions No. 11
issued by the Department of Labor and Employment, the
JOCELYN HERRERA-MANAOIS v. with academic freedom and constitutional autonomy, an
institution of higher learning has the discretion and prerogative
ST. SCHOLASTICA’S COLLEGE to impose standards on its teachers and determine whether
these standards have been met.
December 11, 2013 | Serreno, C. J. | Probationary Employment
Digester: Bea, Alexis
FACTS:
Petitioner Jocelyn Herrera-Manaois (Josie?) graduated from
SUMMARY: Josie Herrera Manaois taught in St. Scholastica
St. Scholastica’s College (SSC) with a degree of BA
College (SSC) as an English teacher (part-time). She was English
recommended to become a full-time faculty member. In her (1994) She returned to her alma mater as a part-time
application, she mentioned that she was taking her masters in English teacher
UP and that her oral defense was scheduled for June 2000. This After taking a leave of absence for more than one year, she
was approved and SSC hired her as a probationary full time was again rehired by SSC for the same position
employee. She failed to acquire her MA degree on time and she Four years after, she was recommended by her Department
requested for an extension. SSC denied and subsequently opted Chairperson to become a full-time faculty member of the
not to rehire her. LA and NLRC ruled for Josie stating that she English Department
was not informed of the requirement to finish her MA degree She applied for a position as full time instructor for the
and that the minimum requirement is finishing 25% of her MA school year of 2000-2001
studies only. CA reversed saying that the requirement cited by o She mentioned in her application letter than she had
LA is for ranking purposes and not a qualification for been taking her MA in English Studies, Major in
permanency. SC affirmed the ruling of the LA and also cited a Creative Writing at UP Diliman and that she was
CHED Memorandum requiring tertiary level educators to be completing her master’s thesis
o She stated that her oral defense was scheduled for
MA degree holders.
June 2000
The Dean of Arts and Sciences informed her of the
approval of her application and was advised to submit the
DOCTRINE: Mere completion of the three-year probation necessary papers pertaining to her master’s degree
does not guarantee that the employee will acquire permanent SSC hired her as a probationary full-time faculty member
employment status. The probationer can only qualify upon with no derogatory record, she was given above-
fulfillment of the reasonable standards set for permanent satisfactory ratings by both the Department Chairperson
employment as a member of the teaching personnel. In line and the Dean f Arts and Sciences
Because of forthcoming completion of her third year o Permanency is extended to full-time faculty
probationary employment, Josie requested for an extension members only if they had fulfilled the criteria
of her teaching load for SY 2003-04 provided in the SSC Faculty Manual
o She mentioned once again that she was a candidate o SSC also refuted the performance ratings of Josie
for a master’s degree and that the schedule of her and pointed out that she had merely received an
oral defense may actually materialize anytime average rating from her students
within the first academic semester of 2003 o Josie specialized in the subject of writing and not
o She furnished a certification from UP that she had English Literature, which was the subject area they
finished her coursework in her studies needed a faculty member for.
o She indicated that it was her long-term goal to apply LA: Ruled in favor of Josie
for a return to full-time faculty status by then and o With respect to the reason that Josie failed to finish
asked SSC to consider the above-mentioned matters her MA within the 3 year period, the notation on the
Josie eventually received a letter from the Dean of College employment application showing that her
and Chairperson of the Promotions and Permanency Board employment was premised on her completion of an
officially informing her of the board’s decision not to MA degree was not made known to her at the start
renew her contract stating that: of her engagement
o She failed to comply with the terms she herself o She only received when it was attached to the
requested in granting her a three-year extension position paper of SSC
o That her specialization cannot be maximized at SSC o LAonly credible evidence that a precondition had
due to the college’s curriculum changes and been set for the acceptance of her employment
streamlining application was SSC’s letter expressly requiring (1)
Josie sought for reconsideration which SSC denied good performance and (2) submission of papers
Josie then filed a case for illegal dismissal, payment of 13th pertaining to her MA degree
month pay, damages, and attorney’s fees against SSC o The allegation that she was rated only an average
SSC explained that upon consideration of the written performance is not substantiated with documentary
application of Josie, the Dean wrote the following notation proof
at the bottom of her letter of application: “APPROVED: on In any case, SSC already admitted that her
the basis that she finishes her MA” probationary employment was satisfactory
The college clarified that for full-time faculty status of (first condition: OK)
Josie was accepted that she would submit the necessary o The certification of UP is also sufficient evidence
papers pertaining to her MA degree for the second condition
o Also noted the faculty manual that the minimum CA deduced from her submission of the UP
requirements were a bachelor’s degree with at least certification was that she had endeavored to
25% of MA studies completed substantially comply with one of the
MA requirement pertained to the rank of requirements of permanency
Assistant Professor (not the one applied for She was required to submit necessary papers
by Josie) which CA treated as proof of SSC’s
Thus, failure to finish MA degree not a appraisal
ground Disclosure of notation was already
o The reason that “your specialization cannot be inconsequential
maximized…” is also not a valid cause for o Second, the employment contract of Josie
dismissing a probationary employee, reiterating that incorporated the conditions set in the SSC Faculty
probationers may only be terminated either for: Manual
Just cause Manual explicitly stated that the criteria for
Failure to qualify as a regular employee in permanency included an MA degree
accordance with reasonable standards made LA erred when it solely relied on the
known at the time of engagement minimum requirements provided for the
o Josie had attained permanent status and SSC’s non- rank of instructor and that it cited for the
renewal is deemed to be as a dismissal without just rank of instructor referred to the basis on
cause which full-time and part-time members were
NLRC: Affirmed ranked, and not to the requirements to be
CA: reversed NLRC’s judgment and dismissed Josie’s fulfilled
complaint and that the decision of LA and NLRC were Agreed with SSC that what happened was
contrary to the evidence on record merely the expiration of an employment
o First, various pieces of evidence show that Josie had contract and non-renewal thereof
been aware that possession of an MA degree was a o Third, in spite of the requests of Josie for the
criteria extension of her employment in order to finish her
As early as April 2000, when she applied, MA degree, she failed to do so.
she had already sent a letter indicating she She even informed SSC that there was still
was completing an MA degree no fixed schedule for her oral defense
This implies that she was fully aware of the RULING: Decision of Court of Appeals is AFFIRMED.
necessity of an MA degree in order for her Petition DENIED.
to attain permanent status at SSC
Whether or not the completion of a master’s degree is DOES NOT guarantee that the employee will
required for a tertiary level educator to earn the status of automatically acquire a permanent employment status
permanency in a private educational institution—YES. It is settled jurisprudence that probationer can only qualify
upon fulfillment of the reasonable standards set for the
Probationary employment refers to the trial stage or period permanent employment as a member of the teaching
during which the employer examines the competency and personal
qualifications of job applicants, and determines whether This is in line with academic freedom and constitutional
they are qualified to be extended permanent employment autonomy—an institution of higher learning has the
status discretion and prerogative to impose standards on its
This arrangement allows the employer an opportunity to teachers and determine whether these have been met.
fully scrutinize and observe the fitness and worth of o The university has the sole prerogative to make a
probationers while on the job to determine whether they decision on whether or not to rehire probationer
would become proper and efficient employees—before the o Probationer cannot automatically assert acquisition
guarantee of security of tenure comes into play of security of tenure and force employer to renew
Citing Article 281 of the Labor Code, the Court agrees with the employment contract
the CA in ruling that the requirement to obtain a master’s Josie failed to comply with the stated academic
degree was made known to Josie qualifications and even if we were to disregard the SSC
The contract she signed clearly and expressly contained the Faculty Manual, she still cannot legally acquire the status
conditions in the SSC Faculty Manual, most pertinent of of permanency
which is that the faculty member must have completed at o Private educational institutions must still
least a master’s degree supplementarily refer to the prevailing standards,
CA correctly pointed out that the “requirement” cited by qualifications set by the appropriate government
the LA merely refer to how instructors are ranked and not agencies (DepEd/CHED)
to the academic qualifications required to attain o Sec. 44. of the CHED Manual states that the
permanency minimum qualification for faculty for tertiary
o This ranking covers those who are still on education (undergrad courses other than vocational)
probationary employment and those who have “…Holder of a master’s degree, to teach largely in
already obtained permanency his major field…”
o In order to properly arrive at the criteria, sections on o Sec. 45 states that “all teaching personnel who do
both permanency and ranking must be read in not meet the foregoing qualifications are considered
conjunction with each other part time.”
Court reiterates that mere completion of the three-year This minimum requirement is not subject to the prerogative
probation, even with an above-average performance of the school or the agreement of the parties
o IT IS DEEMED TO BE IMPLIEDLY WRITTEN Colegio del Santisimo Rosario and Sr.
IN THE EMPLOYMENT CONTRACTS, thus the
issue of whether probationers were informed of the Zenaida S. Mofada, OP v. Emmanuel
academic requirement is immaterial Rojo
o Under the 2002 Manual, Josie cannot attain the
status of permanent full-time faculty members, even
Facts:
if they completed 3 years of satisfactory service
Colegio del Santisimo Rosario (CSR) hired Emmanuel
Citing Lacuesta v. Ateneo de Manila: Moreover, for those
Rojo as a high school teacher on probationary basis for
teaching in the tertiary level, the probationary period shall
the school years 1992-1993, 1993-1994 and 1994-1995.
not be more than 6-consecutive regular semesters of
On April 5, 1995, CSR, through Sr. Zenaida S. Mofada,
satisfactory service. The requisites to acquire permanent
OP, decided not to renew Rojo’s services.
employment, or security of tenure are:
o The teacher is a full-time teacher Rojo filed a complaint for illegal dismissal.
o Teacher must have rendered 3 consecutive years of o Since he had served three consecutive school
service years which is the maximum number of terms
o Such service must have been satisfactory allowed for probationary employment, he
should be extended permanent employment.
ONLY when one has served as a full time teacher can he
o Paragraph 75 of the 1970 Manual of Regulations
acquire permanent or regular status. As previously held,
for Private Schools (1970 Manual), says that
a part time teacher cannot acquire permanent status…as a
“full- time teachers who have rendered three (3)
part-time lecturer, her employment ended when her
consecutive years of satisfactory services shall
contract expired cannot be credited to her in computing the
be considered permanent.”
number of years she has served to qualify her permanent
status CSR’s position:
o Application to this case? Josie completing her o Rojo knew that his Teacher’s Contract for
probation period is not an automatic qualification. school year 1994-1995 with CSR would expire
She could only qualify upon fulfilling the on March 31, 1995.
reasonable standards for permanent o Thus, he was not dismissed but his probationary
employment set by the employer. contract merely expired and was not renewed.
Whether or not there was a valid contract of sale—NO. o The “three years” mentioned in paragraph 75 of
the 1970 Manual refer to “36 months,” not three
It school years. Since Rojo served for only three
school years of 10 months each or 30 months,
then he had not yet served the “three years” or
36 months mentioned in paragraph 75 of the the period when they were to be applied. These
1970 Manual. terms, in addition to those expressly provided by the
LA ruled in favour of Rojo. Labor Code, would serve as the just cause for the
o “Three school years” means three years of 10 termination of the probationary contract.
months, not 12 months. Since Rojo had already The specific details of this finding of just cause must be
served for three consecutive school years, he communicated to the affected teachers as a matter of
already attained regular employment status. due process. Corollarily, should the teachers not have
Thus, the non-renewal of his contract constitutes been apprised of such reasonable standards at the time
illegal dismissal. specified above, they shall be deemed regular
o LA found CSR and Mofada guilty of bad faith. employees.
NLRC affirmed.
o After serving three school years, Rojo attained What is glaringly absent from CSR’s evidence are the
the status of regular employment because CSR reasonable standards that respondent was expected to
did not make known to respondent the meet that could have served as proper guidelines for
reasonable standards he should meet. purposes of evaluating his performance.
CA affirmed. Nowhere in the Teacher’s Contract could such
o Rojo attained the status of regular employee standards be found. Neither was it mentioned that the
after three years. same were ever conveyed to Rojo.
o He was also the Prefect of Discipline, a task Even assuming that respondent failed to meet the
entailing much responsibility. standards set forth by CSR and made known to the
o It was not shown that CSR set performance former at the time he was engaged as a teacher on
standards for Rojo’s employment. probationary status, still, the termination was flawed for
failure to give the required notice to respondent.
Issue: WoN Rojo was illegally dismissed While Mofada mentioned the existence of alleged
YES performance evaluations, the Court is in a quandary as
For teachers on probationary employment, in which to what could have been the basis of such evaluation, as
case a fixed term contract is not specifically used for no evidence were adduced to show the reasonable
the fixed term it offers, it is incumbent upon the school standards by which Rojo’s performance was assessed.
to have not only set reasonable standards to be Absent any showing of unsatisfactory performance on
followed by said teachers in determining qualification the part of Rojo, it can be presumed that his
for regular employment, the same must have also been performance was satisfactory.
communicated to the teachers at the start of the
probationary period, or at the very least, at the start of
o While he was still more than a year into his CRUZ vs. NLRC [G.R. No. 116384.
probationary employment, he was already
designated Prefect of Discipline. February 7, 2000]
o In such capacity, he was able to uncover the
existence of a drug syndicate within the school CRUZ VS. NLRC
and lessen the incidence of drug use therein. February 7, 2000
o Yet despite respondent’s substantial
contribution to the school, CSR chose to FACTS:
disregard the same and instead terminated his The private respondent Norkis Distributors Inc., is a domestic
services; while most of those who were involved corporation. It is engaged in the business of selling motorcycles
in drug activities within the school were and household appliances. It was operating in Mandaue City,
punished with a slap on the wrist as they were Cebu; it had its branch in Valencia, Bukidnon where the
merely made to write letters promising that the petitioner Cruz was employed. On October 14, 1990, while
incident will not happen again.
petitioners and her co-employees were busy working, petitioner
No resignation letter presented, contrary to CSR’s
collapsed and was brought to the hospital. From then on, she
allegation that Rojo resigned.
was not able to report for work. On December 28, 1990, she
sent a letter to respondent Norkis to verify her status of
employment but as an answer, she received a termination letter
dated November 2, 1990 citing health reasons for the dismissal.
On March 18, 1991, they filed a complaint for illegal dismissal
against the private respondent praying for payment of
separation pay and other money claims before the NLRC
Branch of Cayagan de Oro City. The Labor Arbitration Branch
ruled in favor of the petitioner. From the said decision, both
parties appealed to the NLRC where the decision was reversed
and set aside.
ISSUE:
Whether or not the dismissal of petitioner is legal.
RULING:
Under Section 8, Rule 1 Book VI of the Rules and Regulations
Implementing the Labor Code, for a disease to be a valid Manila Hotel Corporation vs National
ground for the dismissal of the employee, the continued
employment of such employee is prohibited by law or Labor Relations Commission
prejudicial to his health or to the health of his co-employees In May 1988, Marcelo Santos was an overseas worker in
and there must be a certification by a competent public health Oman. In June 1988, he was recruited by Palace Hotel in
authority that the disease is of such nature or at such a stage Beijing, China. Due to higher pay and benefits, Santos
that it cannot be cured within a period of six months even with agreed to the hotel’s job offer and so he started working there
proper medical treatment. in November 1988. The employment contract between him
There is merit in petitioner’s submission that the award of and Palace Hotel was however without the intervention of the
Philippine Overseas Employment Administration (POEA). In
moral and exemplary damages in her favor is warranted by her
August 1989, Palace Hotel notified Santos that he will be laid
unjustified dismissal. Award of moral and exemplary damages off due to business reverses. In September 1989, he was
for an illegally dismissed employee is proper where the officially terminated.
employee had been harassed and arbitrarily terminated by the
In February 1990, Santos filed a complaint for illegal
employer.
dismissal against Manila Hotel Corporation (MHC) and
The Court has consistently accorded the working class a right Manila Hotel International, Ltd. (MHIL). The Palace Hotel was
to recover damages for unjust dismissals tainted with bad faith, impleaded but no summons were served upon it. MHC is a
where the motive of the employer in dismissing the employee government owned and controlled corporation. It owns 50%
is far from noble. The petition is granted. of MHIL, a foreign corporation (Hong Kong). MHIL manages
the affair of the Palace Hotel. The labor arbiter who handled
the case ruled in favor of Santos. The National Labor
Relations Commission (NLRC) affirmed the labor arbiter.
ISSUE: Whether or not the NLRC has jurisdiction over the
case.
HELD: No. The NLRC is a very inconvenient forum for the
following reasons:
1. The only link that the Philippines has in this case is the fact
that Santos is a Filipino;
2. However, the Palace Hotel and MHIL are foreign
corporations – MHC cannot be held liable because it merely
owns 50% of MHIL, it has no direct business in the affairs of
the Palace Hotel. The veil of corporate fiction can’t be pierced
because it was not shown that MHC is directly managing the
affairs of MHIL. Hence, they are separate entities.
UNIVAC DEVELOPMENT, INC. vs.
3. Santos’ contract with the Palace Hotel was not entered into WILLIAM M. SORIANO G.R. No.
in the Philippines;
4. Santos’ contract was entered into without the intervention of 182072, 19 June 2013
the POEA (had POEA intervened, NLRC still does not have FACTS:
jurisdiction because it will be the POEA which will hear the
case); Soriano was hired by petitioner on probationary basis as legal
5. MHIL and the Palace Hotel are not doing business in the assistant of the company. On a certain day, 8 days prior to the
Philippines; their agents/officers are not residents of the completion of his six months probationary period, the
Philippines; Department head informed him that he was being terminated
from employment due to the company’s cost-cutting measures.
Due to the foregoing, the NLRC cannot possibly determine
all the relevant facts pertaining to the case. It is not He allegedly asked for a thirty-day notice but his termination
competent to determine the facts because the acts was ordered to be effective immediately. Thus, he was left with
complained of happened outside our jurisdiction. It cannot no choice but to leave the company. Petitioner, however, denied
determine which law is applicable. And in case a judgment is the allegations of respondent and claimed instead that prior to
rendered, it cannot be enforced against the Palace Hotel (in his employment, respondent was informed of the standards
the first place, it was not served any summons). required for regularization. Univac also said that Soriano
The Supreme Court emphasized that under the rule of forum abandoned his work due to his plan of reviewing for the bar.
non conveniens, a Philippine court or agency may assume
jurisdiction over the case if it chooses to do so provided: ISSUE:
Whether or not a probationary employee’s dismissal is with a
(1) that the Philippine court is one to which the parties may valid ground considering he was not informed of the standards
conveniently resort to;
required for regularization.
(2) that the Philippine court is in a position to make an
intelligent decision as to the law and the facts; and RULING:
No. It is primordial that at the start of the probationary period,
(3) that the Philippine court has or is likely to have power to
enforce its decision. the standards for regularization be made known to the
probationary employee. In this case, as held by the CA,
None of the above conditions are apparent in the case at bar. petitioner failed to presentadequate evidence to substantiate its
claim that respondent was apprised of said standards. It is
evident from the LA and NLRC decisions that they merely
relied on surmises and presumptions in concluding that
respondent should have known the standards considering his GRAND MOTOR PARTS
educational background as a law graduate. Equally important is
the requirement that in order to invoke “failure to meet the CORPORATION vs MINISTER OF
probationary standards” as a justification for dismissal, the LABOR
employer must show how these standards have been applied to
the subject employee. In this case, aside from its bare allegation, FACTS
it was not shown that a performance evaluation was conducted
Respondent Balicena was the Branch Manager of the petitioner
to prove that his performance was indeed unsatisfactory.
company’s Iloilo
Indeed, the power of the employer to terminate a probationary
employee is subject to three limitations, namely: (1) it must be Branch. Prior to his employment in Grand Motor, he was the
exercised in accordance with the specific requirements of the Finance Officer of Warner,
contract; (2) the dissatisfaction on the part of the employer must
be real and in good faith, not feignedso as to circumvent the Barnes, & Co., when allegedly Mr. Alfredo Cisneros
contract or the law; and (3) there must be no unlawful (acting branch manager) induced
discrimination in the dismissal. In this case, not only did him to apply for the position of Branch Manager, as their
petitioner fail to show that respondent was apprised of the company (petitioner) was
standards for regularization but it was likewise not shown how
these standards had been applied in his case.
Pursuant to well-settled doctrine, petitioner’s failure to specify looking for a CPA. He applied for the job and was accepted. He
the reasonable standards by which respondent’s alleged poor started working for the
performance was evaluated as well as to prove that such
standards were made known to him at the start of his petitioner company on April 1 but resigned from his position in
employment, makes respondent a regular employee. Warner, Barnes, & Co.
only on April 28.
However, he was terminated only after working for the company
for only 4 months
because of infractions alleged by the petitioner, such as:
He failed to submit promptly the monthly Income and Loss
Statement,
Comparative Projections & Actual Sales Report; Balicena on the other hand alleged that he is a regular employee,
although he was not
the Comparative Performance Report dated 7/8/1980 on the
operation of the able to present any contract establishing his status as a regular
employee; that the
Iloilo Branch for the month of June and May, 1980, the Cash
Sales of the Iloilo mishap involving the company's vehicle which was used
without his permission and
Branch went down to P91,318.41 for June, 1980, as compared
with the sales for knowledge could not be blamed upon him; that the alleged
reports which he failed to
the month of May, 1980 in the sum of P174,697.77;
send were not reminded to him, verbally or in writing; that his
Belicena in violation of company policy and without
sales for the period April
clearance from the head
to August, 1980 is higher compared to that for the same period
office in Cebu, extended personal accounts in favor of 15
in 1979; and that the
persons which as of
alleged accounts remaining unpaid as of 11/6/1980 would have
November, 1980 produced delinquent accounts amounting to
been collected in full if
P18,435.80; and
he were still the Manager, among other things.
Belicena claimed lack of knowledge of the vehicular accident
caused by a Regional Director and Minister of Labor ruled in favor of
Balicena, ordering his
subordinate and failed to provide prompt administrative
disciplinary action reinstatement, payment of his backwages, and other privileges.
against the erring employee. ISSUE
They claimed that Balicena is only a probationary employee, Whether or not private respondent's employment as
which would be observed Branch Manager was temporary or
by the company for 4-6 months and that Balicena knew that probationary, and not regular and permanent
there is a possibility that he
RULING
would not get the job.
At the outset, Balicena was a probationary employee: operation, petitioner corporation must have taken the necessary
precautions to
There was no written proof of Balicena’s appointment or
employment as regular test the qualifications, ability and performance of its Branch
Manager, but he did
and permanent Branch Manager. There was the fact that he
assumed his work not. The conclusion is inevitable that his hiring was temporary.
as of April 1 but resigned from his previous company only on Balicena had never been hired as manager, and the petitioner
April 28, meaning company and
that if he was really appointed as regular and permanent then he Balicena’s former company are engaged in different kinds of
would business so it was
necessary for Balicena to undergo a period of probation to test
his
have resigned immediately from his old company. But since he
was not yet qualifications, skills and experience since managing is a new
experience
sure of his status in the petitioner corporation, he resigned late.
for him.
The Court cannot sustain Balicena’s claim, the absence of a
written contract due The employer has the right or is at liberty to choose as to who
will be hired and
to the fact that contracts were given only to those who will pass
the probationary who will be declined. It is within the exercise of this right to
select his employees that
period and the rank-and-file employee, not to those managerial
ones, are the employer may set or fix probationary period within which
the latter may test and
contrary to usual business practice especially in multi-million
enterprises observed the conduct of the former before hiring him
permanently. "The right of the
as the petitioner corporation. Considering the magnitude of its
sales and laborer to sell his labor to such persons as he may choose is, in
its essence, the same
as the right of an employer to purchased labor from any person
whom it chooses. The
employer and the employee have thus an equality of rights
guaranteed by the
Constitution.
DISPOSITION: Order of the Deputy Minister of Labor is
REVERSED and SET ASIDE.
No costs. PETITION GRANTED.