ruled that he was a regular employee since he was repeatedly hired under fixed-term contracts.

“For a fixed-term employment contract to be valid, it must be shown that the fixed period was
knowingly and voluntarily agreed upon by the parties, who dealt with each other on more or
less equal terms with no moral dominance being exercised by the employer over the employee.
Moreover, while fixed-term employment contracts have been recognized to be valid, the Court
has held that if it is apparent that the period has been imposed to preclude acquisition of
tenurial security by the employee, then such period must be struck down for being contrary to
law, morals, good customs, public order, and public policy.” “Case law holds that the repeated
engagement under a contract of hire is indicative of the necessity and desirability of the
employee’s work in the employer’s business; and if an employee’s contract has been
continuously extended or renewed for the same position, with the same duties, without any
interruption, then such employee is a regular employee.”
The Court held in Begino v. ABS-CBN Corporation84 that notwithstanding the nomenclature of
the Talent Contracts and/or Project Assignment Forms and the terms and conditions embodied
therein, petitioners are regular employees of ABS-CBN. As cameramen, editors, and reporters,
petitioners were undoubtedly performing functions necessary and essential to ABS-CBN’s
business of broadcasting television and radio content. ABS-CBN’s repeated hiring of
petitioners for its long running news program positively indicates that the latter were ABS-
CBN’s regular employees.
In a number of cases, ABS-CBN has also been found guilty of bad faith in treating its
employees. In Farley Fulache et al. v. ABS-CBN,85 after four drivers were found to be regular
employees by the Labor Arbiter and pending appeal by ABS-CBN, the latter dismissed the four
drivers supposedly since their jobs have been contracted out, In ruling against the company, the
Court held that ABS-CBN acted with plain and unadulterated bad faith in dismissing its
employees. “It [ABS-CBN] merely claimed that it was contracting out the petitioners’ activities
in the exercise of its management prerogative. ABS-CBN’s intent, of course, based on the
records, was to transfer the petitioners and their activities to a service contractor without paying
any attention to the requirements of our labor laws; hence, ABS-CBN dismissed the petitioners
when they refused to sign up with the service contracto

ruled that he was a regular employee since he was repeatedly hired under fixed-term contracts.
“For a fixed-term employment contract to be valid, it must be shown that the fixed period was
knowingly and voluntarily agreed upon by the parties, who dealt with each other on more or
less equal terms with no moral dominance being exercised by the employer over the employee.
Moreover, while fixed-term employment contracts have been recognized to be valid, the Court
has held that if it is apparent that the period has been imposed to preclude acquisition of
tenurial security by the employee, then such period must be struck down for being contrary to
law, morals, good customs, public order, and public policy.” “Case law holds that the repeated
engagement under a contract of hire is indicative of the necessity and desirability of the
employee’s work in the employer’s business; and if an employee’s contract has been
continuously extended or renewed for the same position, with the same duties, without any
interruption, then such employee is a regular employee.”
The Court held in Begino v. ABS-CBN Corporation84 that notwithstanding the nomenclature of
the Talent Contracts and/or Project Assignment Forms and the terms and conditions embodied
therein, petitioners are regular employees of ABS-CBN. As cameramen, editors, and reporters,
petitioners were undoubtedly performing functions necessary and essential to ABS-CBN’s
business of broadcasting television and radio content. ABS-CBN’s repeated hiring of
petitioners for its long running news program positively indicates that the latter were ABS-
CBN’s regular employees.
In a number of cases, ABS-CBN has also been found guilty of bad faith in treating its
employees. In Farley Fulache et al. v. ABS-CBN,85 after four drivers were found to be regular
employees by the Labor Arbiter and pending appeal by ABS-CBN, the latter dismissed the four
drivers supposedly since their jobs have been contracted out, In ruling against the company, the
Court held that ABS-CBN acted with plain and unadulterated bad faith in dismissing its
employees. “It [ABS-CBN] merely claimed that it was contracting out the petitioners’ activities
in the exercise of its management prerogative. ABS-CBN’s intent, of course, based on the
records, was to transfer the petitioners and their activities to a service contractor without paying
any attention to the requirements of our labor laws; hence, ABS-CBN dismissed the petitioners
when they refused to sign up with the service contracto

ruled that he was a regular employee since he was repeatedly hired under fixed-term contracts.
“For a fixed-term employment contract to be valid, it must be shown that the fixed period was
knowingly and voluntarily agreed upon by the parties, who dealt with each other on more or
less equal terms with no moral dominance being exercised by the employer over the employee.
Moreover, while fixed-term employment contracts have been recognized to be valid, the Court
has held that if it is apparent that the period has been imposed to preclude acquisition of
tenurial security by the employee, then such period must be struck down for being contrary to
law, morals, good customs, public order, and public policy.” “Case law holds that the repeated
engagement under a contract of hire is indicative of the necessity and desirability of the
employee’s work in the employer’s business; and if an employee’s contract has been
continuously extended or renewed for the same position, with the same duties, without any
interruption, then such employee is a regular employee.”
The Court held in Begino v. ABS-CBN Corporation84 that notwithstanding the nomenclature of
the Talent Contracts and/or Project Assignment Forms and the terms and conditions embodied
therein, petitioners are regular employees of ABS-CBN. As cameramen, editors, and reporters,
petitioners were undoubtedly performing functions necessary and essential to ABS-CBN’s
business of broadcasting television and radio content. ABS-CBN’s repeated hiring of
petitioners for its long running news program positively indicates that the latter were ABS-
CBN’s regular employees.
In a number of cases, ABS-CBN has also been found guilty of bad faith in treating its
employees. In Farley Fulache et al. v. ABS-CBN,85 after four drivers were found to be regular
employees by the Labor Arbiter and pending appeal by ABS-CBN, the latter dismissed the four
drivers supposedly since their jobs have been contracted out, In ruling against the company, the
Court held that ABS-CBN acted with plain and unadulterated bad faith in dismissing its
employees. “It [ABS-CBN] merely claimed that it was contracting out the petitioners’ activities
in the exercise of its management prerogative. ABS-CBN’s intent, of course, based on the
records, was to transfer the petitioners and their activities to a service contractor without paying
any attention to the requirements of our labor laws; hence, ABS-CBN dismissed the petitioners
when they refused to sign up with the service contracto

report for work anymore or they were not scheduled for work. 78
ABS-CBN’s reason in failing to regularize many of its employees is the “uniqueness” of their
industry, claiming that many of these employees are hired for specific programs and since
programs don’t last forever, neither does their employment.
The Committee pointed out to ABS-CBN that the bread and butter of ABS-CBN comes from
the production and intellectual creations of employees, who are mostly non-regulars, including
make-up artists, camera personnel, and similar workers who perform tasks that are necessary
and desirable to the business of ABS-CBN.79
Many of these workers have been serving ABS-CBN for more than 10, 15, or even 20 years.
Their length of service is a testament to their competence, loyalty and dedication. Ironically, it
is ABS-CBN’s independent contractors and talents who produce the programs which generate
the biggest source of income for the company.80
From 2007 to 2020, ABS-CBN was a party in 109 illegal dismissal cases in the National Labor
Relations Commissions, with a majority or more than 60% of cases decided in favor of the 23
workers.81 The cases filed, decided and pending against ABS-CBN narrate its constant attempt
to circumvent labor laws and its apparent low regard for its employees.
81 TSN of the 29 June 2020 hearing, at VII-9.
82 G.R. No. 164156, September 26, 2006.
83 G.R. No. 242875, August 28, 2019.
84 G.R. No. 199166, April 20, 2015.
85 G.R. No. 183810, January 21, 2010.

In ABS-CBN Broadcasting Corporation v. Marlyn Nazareno et al.82, for example, the

respondents were production assistants hired continuously for more than 5 years for various
radio programs of ABS-CBN. In ruling that the respondents were regular employees, the Court
stated that “the primary standard therefore of determining regular employment is the
reasonable connection between the particular activity performed by the employee in relation to
the usual trade or business of the employer.” The Court further stated that even if one is a
project or seasonal employee, one who has rendered at least one year of service, whether
continuous or intermittent, is deemed regular with respect to the activity performed and while
such activity actually exists.”
In Augorio Dela Rosa v. ABS-CBN Corporation83, while the Court upheld the petitioner's
dismissal for just cause, the Court ruled that he was a regular employee since he was repeatedly
hired under fixed-term contracts. “For a fixed-term employment contract to be valid, it must be
shown that the fixed period was knowingly and voluntarily agreed upon by the parties, who
dealt with each other on more or less equal terms with no moral dominance being exercised by
the employer over the employee. Moreover, while fixed-term employment contracts have been
recognized to be valid, the Court has held that if it is apparent that the period has been imposed
to preclude acquisition of tenurial security by the employee, then such period must be struck
down for being contrary to law, morals, good customs, public order, and public policy.” “Case
law holds that the repeated engagement under a contract of hire is indicative of the necessity
and desirability of the employee’s work in the employer’s business; and if an employee’s
contract has been continuously extended or renewed for the same position, with the same
duties, without any interruption, then such employee is a regular employee.”
The Court held in Begino v. ABS-CBN Corporation84 that notwithstanding the nomenclature of
the Talent Contracts and/or Project Assignment Forms and the terms and conditions embodied
therein, petitioners are regular employees of ABS-CBN. As cameramen, editors, and reporters,
petitioners were undoubtedly performing functions necessary and essential to ABS-CBN’s
business of broadcasting television and radio content. ABS-CBN’s repeated hiring of
petitioners for its long running news program positively indicates that the latter were ABS-
CBN’s regular employees.
In a number of cases, ABS-CBN has also been found guilty of bad faith in treating its
employees. In Farley Fulache et al. v. ABS-CBN,85 after four drivers were found to be regular
employees by the Labor Arbiter and pending appeal by ABS-CBN, the latter dismissed the four
drivers supposedly since their jobs have been contracted out, In ruling against the company, the
Court held that ABS-CBN acted with plain and unadulterated bad faith in dismissing its
employees. “It [ABS-CBN] merely claimed that it was contracting out the petitioners’ activities
in the exercise of its management prerogative. ABS-CBN’s intent, of course, based on the
records, was to transfer the petitioners and their activities to a service contractor without paying
any attention to the requirements of our labor laws; hence, ABS-CBN dismissed the petitioners
when they refused to sign up with the service contractor. In this manner, ABS-CBN fell into a
downward spiral of irreconcilable legal positions, all 24
undertaken in the hope of saving itself from the decision declaring its “talents” to be regular
employees.”
In ABS-CBN v. Honorato Hilario,86 a company named CCI was formed in 1995 by Mr.
Edmund Ty and some officers of ABS-CBN namely Mr. Eugenio Lopez III, Charo Santos-
Concio, Felipe Yalong and Federico Garcia. CCI was engaged by ABS-CBN as a contractor
for the set design of its shows and programs. Respondents were employees of CCI. In 2003,
CCI was dissolved and Ty formed a new company called Dream Weaver Exponents, Inc.
(DWVEI) and took CCI’s place as ABS-CBN’s contractor. As a consequence of CCI’s
dissolution, the respondents were dismissed from their jobs. In ruling against ABS-CBN, the
Court stated that “both the labor tribunals and the CA found that the purported closure of
business operation of CCI was undertaken for the purpose of circumventing the provisions of
the Labor Code which guarantees security of tenure of respondents and all other employees of
CCI.” It was a ploy to get rid of employees “and there was actually a plan to continue the
business operations under the guise of a new corporation, DWVEI, which merely transferred
and rehired most of the employees of CCI, to the prejudice of herein respondents who were
terminated. Clearly, respondents’ termination of employment was illegal as it was done in bad
faith and in circumvention of the law.”
86 G.R. No. 193136, July 10, 2019.
87 2009 Consolidated Financial Statements of ABS-CBN Broadcasting Corporation and Subsidiaries.
It must be noted that despite these rulings by the Supreme Court, ABS-CBN continues to use
the same line of reasoning in defending its stance. During the committee hearings, they
continue to distinguish program employees from regular employees when it is clear from the
decisions of the Court that the mere fact of being a program employee does not preclude one
from becoming a regular employee. The argument that the contracts of program employees are
terminated once the program is completed no longer holds since the Court has ruled that
repeated hiring of these employees elevates them to regular status, thus, making them entitled
to all the benefits of a regular employee.
While ABS-CBN gives its non-regular employees various company-initiated benefits, it can’t
give the benefit most important and advantageous to them – security of tenure. It is unfortunate
that a multi-billion company like ABS-CBN has not regularized its independent contractors,
talents, contractuals, project, and seasonal workers who perform the functions of regular
employees. This Committee notes that only 25% or 2,661 of the total 11,701 workers of ABS-
CBN are regular employees.
Corporations which are granted special privilege to engage in business affecting public
interests must respect the rights of its workers and give them their just share in the fruits of
production. The employees’ welfare must not be sacrificed in the pursuit of profits.
VIII. TAX AVOIDANCE
In 2009, ABS-CBN Corporation ABS-CBN Hungary was incorporated
incorporated the following companies, to be the holding company of certain
all of which it wholly owns:87 · 07 international subsidiaries.
January 2009