INTERNATION PHARMACEUTICALS v. NLRC 1.
WON Quintia became a regular employee after the expiration of the written
G.R. No. 106331 / MAR 9, 1998 / MENDOZA, J. / LABOR Conditions of Employment / MEEMARCILLA
NATURE Petition for Review on Certiorari
PETITIONERS Intl Pharmaceuticals Inc.
RESPONDENTS NLRC, Dr. Virginia Quintia
SUMMARY. Dr. Quintia was hired by IPI to be the Medical Director for one year. After her
contract expired, she continued to work for 2 years. She was terminated so she filed a
complaint. IPI argues that she was a project employee. SC: she was a regular employee
DOCTRINE. Whether ones employment is regular is not determined by the number of
hours one works, but by the nature of the work and by the length of time one has been in
that particular job.
FACTS.
International Pharmaceuticals, Inc. (IPI) employed Virginia Quintia as Medical Director of
its R&D dept. replacing one Diana Villaraza.
o the government launched a program encouraging development of herbal
medicine and IPI hired Virginia as pharmacologist only for this purpose
The contract of employment provided for a term of one year subject to renewal by mutual
consent at least 30 days before expiration. It was also agreed that Quintia can continue
teaching as a full-time faculty member at Cebu Doctors Hospital.
Quintia claimed that when her contract was about to expire, she was invited by Xavier
University to be chairperson of its pharmacology dept. But Castillo, president and general
manager of IPI asked her to stay and assured her of security of tenure. Hence, she declined
the offer of Xavier.
o After her contract expired on March 19, 1984, she remained in the employ of
petitioner where she not only performed the work of Medical Director of its
Research and Development Department but also that of company physician.
In her complaint, she alleges that her reason for her termination was because she led the
rank and file employees in the demand for a full disclosure of the Savings and Loan
Associations financial status. Her participation was resented by association officers.
On July 10, 1986, Quintia was replaced as head of the R&D dept by Paz Wong. Two days
later, she received a memorandum officially terminating her services.
Quintia filed a complaint for illegal dismissal praying for reinstatement and payment of
full backwages and moral damages.
IPI: she was hired on a consultancy basis coterminous with the duration of the project
involving the development of herbal medicine and that her employment was terminated
upon the abandonment of that project
LA: yes illegal dism
NLRC: affirmed ruling and asked LA to determine whether reinstatement is possible
ISSUES & RATIO.
1 Art. 280. Regular and casual employment.The provisions of written agreement to the contrary notwithstanding
and regardless of the oral agreement 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 except where the employment has been fixed for a specific project or undertaking, the
completion or termination of which has been determined at the time of the engagement of the employee or where
contract. YES
The written contract between IPI and Quentia was valid, but, after its expiration on March 18,
1984, as IPI had decided to continue her services, it must respect the security of tenure of
the employee in accordance with Art. 280 of the Labor Code.1
Quintias status as an employee is not disputed in this case. Therefore, in determining
whether she was a project employee or a regular employee, the question is whether her work
was necessary and desirable to the main business of the employer.
IPI argues that the work done by Quintia was on a temporary basis only. Her engagement
was only for the duration of its herbal medicine development project. In addition, she was not
required to keep fixed office hours and this arrangement continued even after the expiration
of the written contract, thus indicating the temporary nature of her employment.
Quintia continued as Medical Director and was even given the additional function of company
physician after the expiration of the original contract; she undertook various civic activities for
and in behalf of IPI, such as conducting free clinics and giving out IPI products; she did work
which was necessary and desirable in relation to the trade or business of IPI; and her
employment lasted for more than 3years.
Quentia was working not as consultant but as a regular employee albeit a managerial one. It
should be added that Quintia was hired to replace one Diana Villaraza, which suggests that
the position to which she was appointed by petitioner was an existing one, so much so
that after the termination of Quintias employment, somebody else (Paz Wong) was
appointed in her place.
Moreover, there is no mention of any project or of any consultancy in the contract. She was
not hired as consultant or for any particular project. The work she performed was manifestly
necessary and desirable to the usual business of IPI, considering that it is engaged in the
manufacture and production of medicinal preparations. IPI itself admits that research and
development are part of its business.
Also, the fact that she was not required to report at a fixed hour or to keep fixed hours of work
does not detract from her status as a regular employee. Quintia was a managerial employee
and therefore not covered by the Labor Code provisions on hours of work.
Neither does the fact that she was teaching full-time at the Cebu Doctors College negate her
regular status since this fact does not affect the nature of Quintias work. Whether ones
employment is regular is not determined by the number of hours one works, but by the nature
of the work and by the length of time one has been in that particular job.
the work or service to be performed is seasonal in nature and the employment is for the duration of the season. An
employment shall be deemed to be casual if it is not covered by the preceding paragraph: Provided, That any
employee who has rendered at least one year of service, whether such service is continuous or broken, shall be
considered a regular employee with respect to the activity in which he is employed and his employment shall
continue while such activity exists
It is clear that Quintia became a regular employee of IPI after her contract expired on March
18, 1984 and her services were continued for more than two years in the usual trade or
business of the employer.

DECISION.
Petition DISMISSED.

NOTES.
(1) IPI: term contracts can be made orally and the written contract was merely extended.
Altho the contract was subject to renewal, no evidence to show that the parties mutually
agreed to renew their contract

To sustain petitioners contention that there was an implied extension after the expiration of
the original contract would make it possible for employers like petitioner to circumvent Art.
280 of the Labor Code and thus prevent an employee from becoming regular through the
simple expedient of making him sign a contract for a term and then extend to him a contract
term, after term, after term.

(2) IPI: reinstatement of is not feasible because the position which she held was abolished on
account of its decision to discontinue its herbal medicine development project

As regards the claim that the position has already been abolished, the factual findings of the
Labor Arbiter belie this. A replacement for Quentia was appointed two (2) days prior to her
termination. If the position had been abolished, there would have been no necessity for a
replacement.

BUT because of antagonism generated by this case and Quentias own preference for
separation pay, reinstatement would no longer be feasible.