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Determined by nature of
activities
Ecal vs NLRC (1991) Workers supplied by LOC may be declared RE of of Contractee. Ecal = LOC, mere
supplier of manpower to Hi Line. EER exist between Hi Line and Ecal and the contract
workers.
Magante vs NLRC (1990) Contractual Project EE = RE. Making of molds. Regularly assigned to perform carpentry
work, although contrary was made to appear thru the signing of separate EKs.
Baguio Country Club Corp. vs DAY TO DAY CONTRACTUAL EE = RE. Repeatedly rehired to perform tasks on a day to
NLRC (1992) day basis in various capacities.
Sales Route Helpers = hired for 5 mos and thereafter on day to day basis = RE. Just
because its post production activities does not mean its not RE.
Beta Electric Corp vs NLRC TEMPORARY EE = RE. At the very least, PE who became RE upon expiration of 6mos.
(1990) Typist clerk is far from being specific or seasonal but rather usually necessary or
desirable.
Sorreda vs Cambridge No Legal Room for Perpetual Employment
Electronics Corporation (2010)
Philippine Geothermal Inc vs Contracts were regularly renewed to the extent that they had rendered 3 to 5 years
NLRC (1990) service. RE = upon completion of 1 year service.
Capule vs NLRC (1990) Cutting of cogon – manufacuting of cultured milk. CE with less than 1 year service does
not become regular.
Mercado Sr vs NLRC (1991) J. PADILLA. 2ND par of 295 relates only to casual EEs. Agricultural workers utilized in all
agricultural phases of work. Being seasonal EEs, termination not illegal dismissal. They
are also free to work for other farm owners = therefore PE.
Serrano vs Isetann (1/27/2000) SC upheld contracting out. Absent proof that management acted in a malicious or
arbitrary manner, Court will not interfere with the exercise of judgment by an ER.
VALID REASONS: efficiency and economical operations + legal bars must not be
transgressed (must not be LOC and not prohibited arrangements under DO17 + not ULP
De Ocampo vs NLRC 3 mechanics of transpo company replaced by company. Part of cost saving program
Asian Alcohol Corp vs NLRC water pump tenders replaced by independent contractors
Wack Wack Golf and Country Contracting out almost all Regular Jobs. Entered into Mngt K with Business Staffing and
Club vs NLRC (2005) Mngt Inc. BSMI is an independent contractor.
San Miguel EES Union PTGWO Does C.O. require union’s conformity? Contracting out is a proprietary right of ER in the
vs Bersamira (1990) exercise of an inherent management prerogative.
Is outsourcing of union member’s jobs allowed? Legal in the absence of prohibition in
CBA. Does not violate union security clause. Does not interfere with EEs right to self
organization.
PROJECT EMPLOYMENT
Violeta vs NLRC (1997) J. REGALADO. In the absence of definite duration = RE. Date of coverage left blank. Not
determined at start of employment.
Fernandez vs NLRC (1994) Intermittently hired for specific projects = Project EEs in Construction Industry =
governed by Policy Instruction No. 20
Raycor Aircontrol Systems Inc vs Work pool as recognized by Policy Instruction No 30. An EE in the work pool is not
NLRC (1996) necessarily a regular EE; he may also be a project EE
Cartaganes vs Romago Electric Work depends on availability of such contracts on projects. Service coterminous with
Company Inc (1989) Project. RATIONALE: will lead to coddling of labor at expense of mngt. If project
completed, unjust to maintain them in the payroll.
Salazar vs NLRC (1996) Not entitled to separation pay. Not required to obtain clearance from SOLE. Report only
for statistical purposes. Lack of notice does not entitle EE to nominal doamages. 2
notice rule does not apply
De Ocampo vs NLRC (1990) CARTAGENAS N/A here. Although contracts expired, project still on going and so
continued to require workers’ service for its completion
De Jesus vs Philippine National Carpenter = N/D = RE. More than 10 years. Engagement not predetermined because
Construction Corp (1991) duration of work CONTINGENT UPON PROGESS OF ACCOMPLISHMENT + company is
free to determine the personnel and number as the work progresses. CONDITION not
term.
3 TYPES of nonproject EEs. Probationary, Regular, Casual.