Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
vs NLRC
GR no. 96608-09 May 20, 1991
Facts: Petitioner is a corporation principally engaged in the moving and storage of various goods owned
by military personnel residing within the United States military facilities in the Philippines. On various
dates, private respondents were hired as packers, drivers and utilitymen/carpenters. They signed uniform
company-prepared master employment contracts, the terms and conditions of which are as follows: a.You
agree to be employed on "As Needed" basis and to the principle of "no work, no pay." This is so because
of the very nature of the business of Tucor Moving and Storage wherein the volume of work handled by
the Company varies from day to day and from project to project; b. Other than salaries actually earned,
you as a daily-hired worker, shall not be entitled to any of the benefits enjoyed by the permanent
employees of the Company xxx. In a memorandum-letter dated July 17, 1989, the Chief of Traffic
Management of Clark Air Base reminded all agents, including petitioner of the base policy that
"Employees who already have passes in their possession and who fail the polygraph . . ." administered by
an acknowledged security company will be required to return their passes. On the same day petitioner
terminated the employment of private respondents by sending them separate identical notices of
termination.
Petitioners contend that private respondents cannot be considered as its regular employees inasmuch as
the employment of the latter was contractual in nature; that they were deemed hired for a specific or a
fixed undertaking on an "as needed basis," the efficacy of said contract being coterminous with or
dependent upon the company and its clients.
Issue: whether private respondents are regular or casual employees.
Held:
An examination of the contract of employment does not show that private respondents were hired
for a "specific project or undertaking" nor was the completion or termination of the alleged project for
which private respondents were hired determined at the start of the employment.
The term "specific project or undertaking" under Article 280 of the Labor Code contemplates an
activity which was commonly or habitually performed or such type of work which is not done on a daily
basis but only for a specific duration of time or until the completion of the project. The services employed
are thus necessary or desirable in the employer's usual business only for the period of time it takes to
complete the project. Without the performance of such services on a regular basis, the employer's main
business is not expected to grind to a halt.
In the case at bar, private respondents were assigned to do carpentry work, packing and driving,
activities which are usually necessary and desirable in petitioners' usual business and which thus had to
be done on a regular basis.
The fact that private respondents had rendered more than one year of service at the time of their
dismissal overturns the petitioner's allegation that private respondents were hired for a specific or a fixed
undertaking for a limited period of time. The company-prepared master employment contracts placed the
private respondents at the mercy of those who crafted the said contract. The work of the private
respondents is hardly "specific" or "seasonal." Such is one instance under the Code "where the employee
has been engaged to perform activities which are usually necessary or desirable in the usual business."
Private respondents are therefore regular employees of petitioner the provisions of their contract of
employment notwithstanding. They are entitled to security of tenure.
Their dismissal without just cause in this case and without appropriate investigation is certainly
illegal.
Samson vs NLRC
Gr no. 113166 Feb. 1, 1996
Facts:
Petitioner had been working for respondent Atlantic Gulf and Pacific Co. Manila for approximately
28 years and his project-to-project employment was renewed several times. His successive contracts of
employment required him to perform virtually the same kind of work throughout his period of employment.
Petitioner would be re-hired immediately, some for a gap of one day to one week from the last project to
the succeeding one.
Petitioner filed a complaint for the conversion of his employment status from project employee to
regular employee, which complaint was later amended to include claims for underpayment, non-payment
of premium pay for holiday and rest day, refund of reserve fund, and 10% thereof as attorneys
fees. Petitioner alleged therein that on the basis of his considerable and continuous length of service with
AG & P. he should already be considered a regular employee and, therefore, entitled to the benefits and
privileges appurtenant thereto.
The labor arbiter, in a decision dated June 30, 1993,[2] declared that petitioner should be
considered a regular employee on the ground that it has not been shown that AG & P had made the
corresponding report to the nearest Public Employment Office every time a project wherein petitioner was
assigned had been completed and his employment contract terminated, as required under DOLE Policy
Instruction No. 20. Furthermore, pursuant to the same policy instruction, the labor arbiter found that since
petitioner was not free to leave anytime and to offer his services to other employers, he should be
considered an employee for an indefinite period because he is a member of a work pool from which AG &
P draws its project employees and is considered an employee thereof during his membership therein,
hence the completion of the project does not mean termination of the employer-employee relationship.
Issue: WON petitioner is a regular employee
Held:
Yes. Article 281 of the Labor Code pertinently prescribes that the provisions of written agreement
to the contrary notwithstanding and regardless of the oral agreements of the parties, an employment shall
be deemed to be regular where the employee has been engaged to perform activities which are usually
necessary or desirable in the usual business or trade of the employer. Where from the circumstances it
appeared that periods have been imposed to preclude the acquisition of tenurial security by the
employee, they should be struck down as contrary to public policy, morals, good customs, or public order.
There can be no escape from the conclusion that the employee is a regular employee of the respondent.
It is not disputed that petitioner had been working for private respondent for approximately
twenty-eight (28) years as of the adjudication of his plaint by respondent NLRC, and that his project-toproject employment was renewed several times. With the successive contracts of employment wherein
petitioner continued to perform virtually the same kind of work, i.e., as rigger, throughout his period of
employment, it is manifest that petitioners.
Where from the circumstances it is apparent that periods have been imposed to preclude the
acquisition of tenurial security by the employee, they should be struck down as contrary to public policy,
morals, good customs or public order. As observed by the Solicitor General, the record of this case
discloses, as part of petitioners position paper, a certification duly issued by private respondent clearly
showing that the formers services were engaged by private respondent on a continuing basis since 1965.
The certification indubitably indicates that after a particular project has been accomplished, petitioner
would be re-hired immediately the following day save for a gap of one (1) day to one (1) week from the
last project to the succeeding one. There can, therefore, be no escape from the conclusion that petitioner
is a regular employee of private respondent.
HELD:
No. The Court held that the fact that the WORKERS have been employed with the COMPANY for
several years on various projects, the longest being nine (9) years, did not automatically make them
regular employees considering that the definition of regular employment in Article 280 of the Labor Code,
makes specific exception with respect to project employment. The re-hiring of petitioners on a project-toproject basis did not confer upon them regular employment status. The practice was dictated by the
practical consideration that experienced construction workers are more preferred. It did not change their
status as project employees.
HELD:
Yes. The evidence on record has established that private respondents Carlito Codilan and
Maximo Docena had been working for petitioners for 25 years, respondent Eugenio Go for 22 years,
respondent Teofilo Trangria for 15 years and respondent Reynaldo Tulin for 6 years. Aside from their
lengthy service, it should be noted that private respondents' employment was not fixed for a specific
project or undertaking the completion or termination of which has been determined at the time of their
appointment or hiring. Likewise, it must be borne in mind that petitioners never rebutted private
respondents' claim that they performed activities usually necessary or desirable in the usual business of
the former.
Furthermore, the services performed or to be performed by private respondents are not seasonal
in nature. While it may be true that the harvest of palay is seasonal, the milling operations which is the
main business of petitioners are not seasonal. The fact is that big rice mills such as the one owned by
petitioners continue to operate and do business throughout the year even if there are only two or three
harvest seasons within the year. It is a common practice among farmers and rice dealers to store their
palay and to have the same milled as the need arises. Thus, the milling operations have no let-up. And
finally, considering the number of years that they have worked for petitioners (the lowest is 6 years),
private respondents have long attained the status of regular employees as defined under Art. 280 of the
Labor Code.