THIRD DIVISION

MASONIC CONTRACTOR, INC.

and MELVIN BALAIS/AVELINO
REYES,
Petitioners,



- versus -



MAGDALENA MADJOS, ZENAIDA
TIAMZON, and CARMELITA
RAPADAS,
Respondents.

G.R. No. 185!"

Present:

CORONA, J.,
Chairperson,
CHICO-NAZARIO,
VELASCO, JR.,
NACHURA, nd
!ERSA"IN,# JJ.

Pro$u%&ted:

Nove$'er (), (**+

,------------------------------------------------------------------------------------,


DECISION

NACH#RA, J.$



-.is is petition /or revie0 on certiorari ssi%in& t.e Ju%1
23, (**3 4e5ision o/ t.e Court o/ Appe%s 6CA7, s 0e%% s its
O5to'er (8, (**3 Reso%ution, in CA-9.R. SP No. 2*2*(8. -.e CA,
in its ssi%ed de5ision nd reso%ution, reversed nd set side t.e
4e5ision pro$u%&ted '1 t.e Ntion% L'or Re%tions
Co$$ission 6NLRC7 on :e'rur1 ;, (**<, s 0e%% s t.e 4e5e$'er
2;, (**= 4e5ision o/ t.e L'or Ar'iter 6LA7, rendered in /vor o/
.erein petitioners.

:irst, t.e /5ts:

Respondents "&d%en "d>os, Zenid -i$?on nd
Cr$e%it Rpds 0ere e$p%o1ed so$eti$e in 2++2 s %%-
round %'orers 6driver@s0eeper@ Ataga-libingB@&rss-5utter7 '1
"soni5 Contr5tor, In5. 6"CI7. E5. o/ t.e$ re5eived n initi%
di%1 0&e o/ P2;).** nd 0ere reCuired to report /or 0orD /ro$
<:** .$. to =:** p.$. -.ree 1ers t.ere/ter, "CI in5resed t.eir
0&es '1 P2).** per d1 'ut not 0it.out ernin& t.e ire o/ "e%vin
!%is, president o/ "CI.

So$eti$e in (**=, !%is to%d "d>os, -i$?on nd
Rpds, %on& 0it. nine 6+7 ot.er e$p%o1ees, to tDe t0o-d1
%eve. E.en t.e1 reported /or 0orD t0o d1s t.ere/ter, t.e1
0ere 'rred /ro$ enterin& t.e 0orD pre$ises nd 0ere in/or$ed
t.t t.e1 .d %red1 'een rep%5ed '1 ot.er 0orDers. -.is
pro$pted "d>os nd .er 5o-0orDers to F%e 5o$p%int &inst
.erein petitioners /or i%%e&% dis$iss% nd /or non-p1$ent o/
overti$e p1, .o%id1 p1, 28
t.
$ont. p1, nd d$&es.

In t.eir Position Pper dted Apri% 2(, (**=, respondents
verred t.t t.e1 0ere re&u%r e$p%o1ees o/ "CI 0.o 0ere
su$$ri%1 dis$issed /ro$ t.eir >o's 5ontrr1 to t.e su'stntive
nd pro5edur% reCuire$ents o/ %0.
Petitioners, /or t.eir prt, denied 'ein& t.e dire5t e$p%o1er
o/ respondents. Essenti%%1, t.e1 r&ued t.t "CI .d
$intenn5e 5ontr5ts 0it. diGerent $e$ori% prD 5o$pnies
nd t.t, over t.e 1ers, t.e1 .d en&&ed t.e servi5es o/
5ertin Lu? "%i'irn to provide t.e$ 0it. t.e ne5essr1
$npo0er dependin& on "CIHs vo%u$e o/ 0orD.

On 4e5e$'er 2;, (**=, LA A%i$n "n&ndo& rendered
4e5ision, dis$issin& t.e 5o$p%int /or %5D o/ $erit. -.e LA
rtio5inted t.t "d>os, -i$?on nd Rpds /i%ed to present
n1 eviden5e to prove t.t "CI .d 5ontro% over t.e $ens nd
$et.ods in t.e per/or$n5e o/ t.eir 0orD. -.e LA &ve $ore
5reden5e to "%i'irnHs Idvit, pertinent portions o/ 0.i5. red:

1. Ako at ang mga nagsumbong sa SSS laban sa Masonic Contractors, Inc.,
komokontrata lamang ng mga gawaing (sic) ng nasabing kompanya sa loob ng
Loyola Memorial ark at ang aming mga ginawa ay binabayaran ng buo
na siya naman naming pinagpaparti! parti"an.

#. Ako at ang mga nagsumbong sa SSS, sa ka$a"ilanang alam naming na
(sic) "in$i kami empleya$o ng ka"it sinumang kompanya o pagawaan ay nag!
usap!usap at nagkasun$o na kami na mismo sa aming sarili ang magpalista
sa SSS at magbaya$ ng kontribusyon kung gusto naming na (sic) magkaroon ng
benepisyo pag$ating ng pana"on.

%. Alam naming la"at na kami ay "in$i empleya$o ng Masonic
Contractors&,' Inc., kung kaya alam naming (sic) na ang nasabing kompanya
ay walang pananagutan na kami ay ipalista sa SSS bilang empleya$o.

(. Ang mga nagsumbong sa SSS ay umalis at umayaw na lang ng walang paalam
kung kaya kaming mga natira ay napilitang mag"anap ng ibang
makakasama sa pangongontrata. Ang aming pangongontrata sa Masonic
Contractors&,' Inc. ay isang pakiusap lamang sa nasabing kompanya
upang kami ay magkaroon ng sariling pinagkakakitaan upang matugunan ang
aming pang!araw!araw na pangangailangan.

). An& s%1s1 n ito 1 Din& &in0 pr ptun1n n& $&
nDsd dito 1 p0n& totoo t upn& $%$n n& tn&J&Kpn n&
SSS n 0%n& p&DuDu%n& n& "soni5 Contr5torHsJ,K In5.


On ppe%, t.e NLRC Ir$ed t.e LAHs ru%in&. RespondentsH
$otion /or re5onsidertion 0s, %iDe0ise, denied.

On revie0, t.e CA reversed t.e Fndin&s o/ t.e NLRC nd
t.e LA. -.e CA resoned t.t t.e NLRC erroneous%1 i$posed upon
t.e t.ree 5o$p%innts t.e 'urden o/ provin& t.t t.e1 0ere
e$p%o1ees, 0.en it 0s t.e e$p%o1er nd@or t.e 5ontr5tor 0.i5.
s.ou%d .ve 'een tsDed 0it. t.e onus to prove t.t it .d
su'stnti% 5pit%, invest$ent, too%s, et5. to disprove t.e
%%e&tion t.t it 0s en&&ed in %'or-on%1 5ontr5tin&. In
5ontrst to t.e NLRCHs ru%in&, t.e CA /ound t.t n e$p%o1er-
e$p%o1ee re%tions.ip e,isted 'et0een .erein petitioners nd
respondents, nd t.t t.e %tter 0ere i%%e&%%1 ter$inted /ro$
t.eir 0orD.

-.e dispositive portion o/ t.e Ju%1 23, (**3 4e5ision o/ t.e
CA sttes:

)*+,+-.,+, t"e petition is /,A01+2. 1"e assaile$ $ispositions are
A003LL+2 an$ S+1 ASI2+. Masonic Contractor, Inc. is .,2+,+2 to
reinstate etitioners Mag$alena Ma$4os, Carmelita ,apa$as, an$ 5enai$a
1iam6on or, in t"e e7ent t"at reinstatement is no longer 8easible, to pay eac" o8
t"em separation pay. Masonic Contractor, Inc. is also 2I,+C1+2 to pay t"e
etitioners 8ull backwages an$ ot"er monetary bene8its compute$ 8rom t"e time o8
t"eir $ismissal up to t"e time o8 actual reinstatement or up to t"e 8inality o8 t"is
$ecision, i8 reinstatement is not possible. 0o costs.

SO OR4ERE4.
Petitioners no0 5o$e to t.is Court via Ru%e =) petition,
5ontendin& t.t t.e CA 5o$$itted reversi'%e error in Fndin&
t.t t.e1 0ere en&&ed in %'or-on%1 5ontr5tin& nd /or .o%din&
t.e$ %i'%e /or respondentsH dis$iss%.

Centr% to t.e disposition o/ t.e 5se is deter$intion o/
0.et.er respondents re e$p%o1ees o/ "CI.

Ee ns0er in t.e Ir$tive.

In ABrotherhood Labor Unity Movement of the Philippines
v. on. !amora, t.e Court e,p%ined:

In deter$inin& t.e e,isten5e o/ n e$p%o1er-e$p%o1ee
re%tions.ip, t.e e%e$ents t.t re &ener%%1 5onsidered re t.e
/o%%o0in&: 67 t.e se%e5tion nd en&&e$ent o/ t.e e$p%o1eeL 6'7 t.e
p1$ent o/ 0&esL 657 t.e po0er o/ dis$iss%L nd 6d7 t.e e$p%o1erHs
po0er to 5ontro% t.e e$p%o1ee 0it. respe5t to t.e $ens nd $et.ods
'1 0.i5. t.e 0orD is to 'e 55o$p%is.ed. It is t.e so-5%%ed A5ontro%
testB t.t is t.e $ost i$portnt e%e$ent.

-.e e,isten5e o/ n e$p%o1er-e$p%o1ee re%tions.ip is
Cuestion o/ /5t 0.i5. s.ou%d 'e supported '1 su'stnti%
eviden5e.

PetitionersH de/ense t.t t.e1 $ere%1 5ontr5ted t.e
servi5es o/ respondents t.rou&. "%i'irn /i%s to persude us.
-.e /5ts o/ t.is 5se s.o0 t.t respondents .ve 'een under t.e
e$p%o1 o/ "CI s er%1 s 2++2. -.e1 0ere .ired not to per/or$
spe5iF5 >o' or undertDin&. Insted, t.e1 0ere e$p%o1ed s %%-
round %'orers doin& vried nd inter$ittent >o's, su5. s t.ose
o/ drivers, s0eepers, &rdeners, nd even undertDers or
tagalibing, unti% t.e1 0ere r'itrri%1 ter$inted '1 "CI in (**=.
-.eir 0&es 0ere pid dire5t%1 '1 "CI, s eviden5ed '1 t.e
%tterHs p1ro%% su$$r1, 'e%1in& its se%/-servin& nd unsupported
5ontention t.t it pid dire5t%1 to "%i'irn /or respondentsH
servi5es. Respondents .d identiF5tion 5rds or &te psses
issued not '1 "%i'irn, 'ut '1 "CI, nd 0ere reCuired to 0er
uni/or$s 'erin& "CIHs e$'%e$ or %o&o 0.en t.e1 reported /or
0orD.

It is 5o$$on pr5ti5e /or 5o$pnies to provide
identiF5tion 5rds to individu%s not on%1 s se5urit1 $esure,
'ut $ore i$portnt%1 to identi/1 t.e 'erers t.ereo/ s bona "de
e$p%o1ees o/ t.e Fr$ or institution t.t issued t.e$. -.e
provision o/ 5o$pn1-issued identiF5tion 5rds nd uni/or$s to
respondents, side /ro$ t.eir in5%usion in "CIHs su$$r1 p1ro%%,
indu'it'%1 5onstitutes su'stnti% eviden5e suI5ient to support
on%1 one 5on5%usion: t.t respondents 0ere indeed e$p%o1ees o/
"CI.

"oreover, s 5orre5t%1 o'served '1 t.e CA, petitioners
/i%ed to s.o0 t.t it 0s "%i'irn 0.o e,er5ised 5ontro% over t.e
$ens nd $et.ods o/ t.e 0orD ssi&ned to respondents.
Interestin&%1, "%i'irnHs Idvit is si%ent on t.e spe5t o/ 5ontro%
over respondentsH $ens nd $et.ods o/ 0orD. Rt.er t.n
5te&ori5%%1 sttin& t.t s.e 0s t.e one 0.o dire5t%1 e$p%o1ed
respondents to render 0orD /or "CI, "%i'irn $ere%1 i$p%ies t.t,
%iDe respondents, s.e 0s >ust 5o-0orDer. "%i'irnHs stte$ent
t.t t.e 0orD /or "CI 0s $ere%1 in t.e nture o/ 55o$$odtion
to .e%p respondents ern %ivin&, in eGe5t, i$p%ied%1 d$its t.e
/5t t.t s.e did not .ve t.e 5p5it1 to en&&e in t.e
independent >o'-5ontr5tin& 'usiness, nd t.t, t.ere/ore, s.e
0s not respondentsH e$p%o1er.

Eit. t.e issue o/ respondentsH e$p%o1$ent reso%ved, 0e
t.en de5%re t.t respondents 0ere i%%e&%%1 ter$inted 0.en
petitioners su$$ri%1 dis$issed t.e$ /ro$ 0orD 0it.out n1
v%id reson /or doin& so nd 0it.out o'servin& pro5edur% due
pro5ess. Ee t.us Ir$ t.e CAHs Fndin& t.t petitioners re %i'%e
/or t.eir un0rrnted 5tion &inst respondents.

Lst%1, petitioners did not even $De n eGort to den1 or
re/ute respondentsH 5%i$ t.t t.e1 0ere not pid t.eir overti$e
p1, .o%id1 p1 nd 28
t.
$ont. p1. !1 t.eir si%en5e, petitioners
re dee$ed to .ve d$itted t.e s$e. Se5tion 22 o/ Ru%e 3 o/
t.e Ru%es o/ Court, 0.i5. supp%e$ents t.e NLRC Ru%es, provides
t.t n %%e&tion not spe5iF5%%1 denied is dee$ed d$itted.
A55ordin&%1, petitioners s.ou%d 5o$p%1 0it. t.eir sttutor1
o'%i&tions to respondents.

%HERE&ORE, pre$ises 5onsidered, t.e instnt petition is
DENIED /or %5D o/ $erit. -.e ssi%ed Ju%1 23, (**3 4e5ision o/
t.e Court o/ Appe%s in CA-9.R. SP No. 2*2*(8 nd its O5to'er (8,
(**3 Reso%ution re .ere'1 A&&IRMED. Petitioners re /urt.er
ordered to p1 respondents t.eir unpid overti$e p1, .o%id1
p1 nd 28
t.
$ont. p1 to 'e 5o$puted '1 t.e L'or Ar'iter, nd
to 'er t.e 5osts o/ t.is suit.

SO ORDERED.


ANTONIO ED#ARDO B. NACH#RA
Asso5ite Justi5e


%E CONC#R$


RENATO C. CORONA
Asso5ite Justi5e
C.irperson






MINITA V. CHICO'NAZARIO
Asso5ite Justi5e

PRESBITERO J. VELASCO, JR.
Asso5ite Justi5e




L#CAS P. BERSAMIN
Asso5ite Justi5e


A T T E S T A T I O N

I ttest t.t t.e 5on5%usions in t.e 'ove 4e5ision 0ere
re5.ed in 5onsu%ttion 'e/ore t.e 5se 0s ssi&ned to t.e 0riter
o/ t.e opinion o/ t.e CourtHs 4ivision.


RENATO C. CORONA
Asso5ite Justi5e
C.irperson, -.ird 4ivision



C E R T I & I C A T I O N

Pursunt to Se5tion 28, Arti5%e VIII o/ t.e Constitution nd
t.e 4ivision C.irpersonMs Attesttion, I 5erti/1 t.t t.e
5on5%usions in t.e 'ove 4e5ision .d 'een re5.ed in
5onsu%ttion 'e/ore t.e 5se 0s ssi&ned to t.e 0riter o/ t.e
opinion o/ t.e CourtHs 4ivision.



REYNATO S. P#NO
C.ie/ Justi5e
9 A$$itional member in lieu o8 Associate :ustice 2ios$a$o M. eralta per ,a88le $ate$
:uly 1, #;;<.
enne$ by Associate :ustice 0orman$ie =. i6arro, wit" Associate :ustices +$gar$o .
Cru6 an$ -ernan$a Lampas eralta, concurring> rollo, pp. %%!(?.
I$. at %;!%1.
Rollo, pp. #;@!#1A.
I$. at 1B#!1<#.
I$. at %(.
I$. at ?, <(.
I$. at %(!%@.
I$. at <(!1;1.
I$. at 1;@.
I$. at 1;%.
Supra note (.
I$. at 1BB.
Rollo, p. 11;.
I$. at %B.
I$. at (@.
#%1 "il. @%, @< (1<BA).
Traders Royal Bank v. NLRC, %AB "il. 1;B1, 1;B@!1;B? (1<<<).
Rollo, p. 1%#.
I$. at 1#%, 1#<, 1%1.
I$. at 1(1!1(#.
Domasig v. NLRC, %%; "il. @1B, @#( (1<<?).
Traders Royal Bank v. NLRC, supra note 1A, at 1;BA.
,3L+S .- C.3,1, ,ule B, Sec. 11 pro7i$es in 8ullC
S+C. 11. Allegations not specifically denied deemed admitted. D Material a7erment in
t"e complaint, ot"er t"an t"ose as to t"e amount o8 unliEui$ate$ $amages, s"all be $eeme$
a$mitte$ w"en not speci8ically $enie$. Allegations o8 usury in a complaint to reco7er usurious
interests are $eeme$ a$mitte$ i8 not $enie$ un$er oat".