10. Coca-Cola Bottlers (Phils.), Inc. v. Dr. Dean Climaco G.R. No. 146 1!

"e#r$ar% &, '00( Facts: Res)on*ent is a me*ical *octor +ho +as hire* #% )etitioner Coca-Cola Bottler,s Phils., Inc. #% virt$e o- a Retainer ./reement. 0he Retainer ./reement +as rene+e* ann$all%. 0he last one e1)ire* on Decem#er 21, 1332. 4o+ever, *es)ite the non-rene+al o- the sai* a/reement, res)on*ent contin$e* to )er-orm his -$nctions as com)an% *octor to Coca-Cola $ntil he receive* a letter -rom )etitioner com)an% concl$*in/ their retainershi) a/reement e--ective 20 *a%s -rom recei)t thereo-. Res)on*ent in5$ire* -rom the mana/ement o- )etitioner com)an% +hether it +as a/reea#le to reco/ni6e him as a re/$lar em)lo%ee. 0he mana/ement re-$se* to *o so. 7ith this, res)on*ent -ile* a com)laint see8in/ reco/nition as a re/$lar em)lo%ee o- the com)an% an* )ra%e* -or the )a%ment o- all #ene-its o- a re/$lar em)lo%ee, incl$*in/ 12th 9onth )a%, Cost o- :ivin/ .llo+ance, 4oli*a% Pa%, ;ervice Incentive :eave Pa% an* Christmas #on$s. ;$#se5$entl%, res)on*ent receive* a letter -rom the com)an% concl$*in/ their retainershi) a/reement. Issues: 1. 7hether or not there e1ists an em)lo%er-em)lo%ee relationshi) #et+een the )arties. '. 7hether the termination o- res)on*ent,s em)lo%ment is ille/al. Ruling: 0he Co$rt a/rees +ith the :a#or .r#iter an* N:RC that this case sho+s no em)lo%erem)lo%ee relationshi) e1istin/ #et+een the )arties. Petitioner com)an% lac8e* the )o+er o- control over the )er-ormance #% res)on*ent o- his *$ties. 0he Com)rehensive 9e*ical Plan +hich contains the res)on*ent,s o#<ectives, *$ties an* o#li/ations onl% lai* *o+n the /$i*elines to ens$re that the *esire* en* res$lt +as achieve* #$t *i* not control the means an* metho*s +hich res)on*ent )re-orme* his assi/ne* tas8s. 0he sche*$le o- +or8 an* the re5$irement to #e on call -or emer/enc% cases *o not amo$nt to s$ch control #$t are necessar% inci*ents to the retainershi) a/reement. Consi*erin/ that there is no em)lo%er-em)lo%ee relationshi) e1ists #et+een the )arties, the termination o- the Retainershi) ./reement *oes not constit$te ille/al *ismissal o- res)on*ent. 11. Consoli*ate* Broa*castin/ ;%stem vs. =#erio G.R. No. 16 4'4, >$ne , '00( Facts: D?7B-Bom#o Ra*%o, a ra*io station o+ne* an* o)erate* #% )etitioner, em)lo%e* res)on*ents as *rama talents. 0he% +or8e* *ail% -or si1 *a%s in a +ee8 an* +ere re5$ire* to recor* their *rama )ro*$ction in a*vance. ;ome o- them +ere em)lo%e* since 13(4, +hile the latest one +as hire* 133(. 0heir *rama )ro/rams +ere aire* in Bacolo* Cit% an* in the sister stations o- D?7B in the @is9in areas. Petitioner re*$ce* the n$m#er o- its *rama )ro*$ctions, #$t +as o))ose* #% res)on*ents. .-ter the ne/otiations -aile*, the latter so$/ht the intervention o- D=:A. .n ins)ection o- D7?B reveale* that )etitioner is /$ilt% o- violation o- la#or stan*ar* la+s. Petitioner conten*e* that res)on*ents are not its em)lo%ees an* re-$se* to s$#mit the )a%roll an* D0Rs. @e1e* #% the res)on*ents, com)laint, )etitioner alle/e*l% intimi*ate* res)on*ents #% s$s)en*in/ them -or minor la)ses an* *ela%in/ the )a%ment o- their salaries. Avent$all%, res)on*ents +ere #arre* #% )etitioner -rom re)ortin/ -or +or8! th$s, the -ormer claime* constr$ctive *ismissal. =n a))eal to the N:RC, res)on*ents raise* the iss$e o- AR-AA relationshi) an* s$#mitte* the -ollo+in/ to )rove the e1istence o- s$ch relationshi)B time car*s, i*enti-ication car*s, )a%roll, a sho+ ca$se or*er o- the station mana/er to res)on*ent =#erio an* memoran*a either note* or iss$e* #% sai* mana/er. Petitioner, on the other han*, *i* not )resent an% *oc$mentar% evi*ence in its #ehalan* merel% *enie* the alle/ations o- res)on*ents. It claime* that the ra*io station )a%s -or the *rama

recor*e* #% )iece an* that it has no control over the con*$ct o- res)on*ents. N:RC ren*ere* a *ecision hol*in/ that res)on*ents +ere re/$lar em)lo%ees o- )etitioner +ho +ere ille/all% *ismisse* #% the latter. Issues: 1) 7hether res)on*ents +ere em)lo%ees o- )etitioner! an* ') 7hether their *ismissal +as ille/al. Ruling: Petitioner -aile* to controvert +ith s$#stantial evi*ence the alle/ation o- res)on*ents that the -ormer hire* them. I- )etitioner *i* not hire them an* i- it +as the *irector alone +ho chose the talents, )etitioner co$l* have easil% sho+n a contract to s$ch e--ect. 4o+ever, )etitioner merel% relie* on its contention that res)on*ents +ere )iece rate contractors )ai* #% res$lts. Cn*er Polic% Instr$ction No. 40 (P.I. D40), )etitioner is o#li/e* to e1ec$te the necessar% contract s)eci-%in/ the nat$re o- the +or8 to #e )er-orme*, rates o- )a%, an* the )ro/rams in +hich the% +ill +or8. 9oreover, )ro<ect or contract$al em)lo%ees are re5$ire* to #e a))rise* o- the )ro<ect the% +ill $n*erta8e $n*er a +ritten contract. 0his +as not com)lie* +ith #% the )etitioner. In .B;-CBN v. 9ar5$e6, the -ail$re o- the em)lo%er to )ro*$ce the contract man*ate* #% P.I. D40) is in*icative that the so-calle* talents or )ro<ect +or8ers are in realit%, re/$lar em)lo%ees -Pro/ram em)lo%ees are those +hose s8ills, talents or services are en/a/e* #% the station -or a )artic$lar or s)eci-ic )ro/ram or $n*erta8in/ an* +ho are not re5$ire* to o#serve normal +or8in/ ho$rs s$ch that on some *a%s the% +or8 -or less than ei/ht ( ) ho$rs an* on other *a%s #e%on* the normal +or8 ho$rs o#serve* #% station em)lo%ees an* are allo+e* to enter into em)lo%ment contracts +ith other )ersons, stations, a*vertisin/ a/encies or s)onsorin/ com)anies. 0he en/a/ement o)ro/ram em)lo%ees, incl$*in/ those hire* #% a*vertisin/ or s)onsorin/ com)anies, shall #e $n*er a +ritten contract s)eci-%in/, amon/ other thin/s, the nat$re o- the +or8 to #e )er-orme*, rates o- )a%, an* the )ro/rams in +hich the% +ill +or8. 0he contract shall #e *$l% re/istere* #% the station +ith the Broa*cast 9e*ia Co$ncil +ithin 2 *a%s -rom its cons$mmation. It is #asic that )ro<ect or contract$al em)lo%ees are a))raise* o- the )ro<ect the% +ill +or8 $n*er a +ritten contract, s)eci-%in/ the nat$re o- +or8 to #e )er-orme* an* the rates o- )a% an* the )ro/ram in +hich the% +ill +or8. No +ritten contract +as ever )resente* +hen )etitioner is in the #est o- )osition to )resent these *oc$ments. ;ince none +as )resente* to sho+ that no +ritten contract +as accom)lishe*, th$s #el%in/ )etitioner,s *e-ense. 0here +as no sho+in/ o- com)liance +ith the re5$ire* re)orts to #e -ile*, as )rovi*e* either $n*er the ver% Polic% Instr$ction, or $n*er the =mni#$s Im)lementin/ R$les o- the :a#or Co*e -or )ro<ect em)lo%ees. 0his #olsters res)on*ents, contention that the% +ere in*ee* )etitioner,s re/$lar em)lo%ees since their em)lo%ment +as not onl% -or a )artic$lar )ro/ram. 9oreover, the en/a/ement o- res)on*ents -rom ' to '& %ears an* the -act that their *rama )ro/rams +ere aire* not onl% in Bacolo* Cit% #$t also in the sister stations o- D?7B in the @isa%as an* 9in*anao areas, $n*o$#te*l% sho+ that their +or8 is necessar% an* in*is)ensa#le to the $s$al #$siness or tra*e o- )etitioner. 0he test to *etermine +hether em)lo%ment is re/$lar or not is the reasona#le connection #et+een the )artic$lar activit% )er-orme* #% the em)lo%ee in relation to the $s$al #$siness or tra*e o- the em)lo%er. .lso, i- the em)lo%ee has #een )er-ormin/ the <o# -or at least one %ear, even i- the )er-ormance is not contin$o$s or merel% intermittent, the la+ *eems the re)eate* an* contin$in/ nee* -or its )er-ormance as s$--icient evi*ence o- the necessit%, i- not in*is)ensa#ilit% o- that activit% to the #$siness. 0h$s, even ass$min/ that res)on*ents +ere initiall% hire* as )ro<ectEcontract$al em)lo%ees, the en/a/ement o- their services -or ' to '& %ears <$sti-% their classi-ication as re/$lar em)lo%ees. .s to the )a%ment o- +a/es, it +as )etitioner +ho )ai* the same as sho+n #% the )a%roll #earin/ the name o- )etitioner com)an% in the hea*in/ +ith the res)ective salaries o- res)on*ents o))osite their names. .nent the )o+er o- control, *ismissal, an* im)osition o- *isci)linar% meas$res, the same +ere *$l% )roven #% theB (1) memoran*$m note* #% )etitioner,s station mana/er, callin/ the attention o- the FDrama De)artmentG to the late s$#mission o- scri)ts #% +riters an* the tar*iness an*

a#sences o- *irectors an* talents, as +ell as the im)osa#le -ines -or -$t$re in-ractions! (') the memoran*$m o- the station mana/er *irectin/ res)on*ent =#erio to e1)lain +h% no *isci)linar% action sho$l* #e ta8en a/ainst him -or )$nchin/ the time car* o- a certain 9rs. "e =#erio! an* (2) the station mana/er,s memoran*$m s$s)en*in/ res)on*ent =#erio -or si1 *a%s -or the sai* in-raction. 0hese, ta8en to/ether sho+ the e1istence o- an AR-AA relationshi). Res)on*ents +ere ille/all% *ismisse*. Petitioner merel% conten*e* that it +as res)on*ents +ho cease* to re)ort to +or8, an* never )resente* an% s$#stantial evi*ence to s$))ort sai* alle/ation. Petitioner -aile* to *ischar/e its #$r*en, hence, res)on*ents +ere correctl% *eclare* to have #een ille/all% *ismisse*. "$rthermore, i- *o$#ts e1ist #et+een the evi*ence )resente* #% the em)lo%er an* the em)lo%ee, the scales o- <$stice m$st #e tilte* in -avor o- the latter H the em)lo%er m$st a--irmativel% sho+ rationall% a*e5$ate evi*ence that the *ismissal +as -or a <$sti-ia#le ca$se. It is a time-honore* r$le that in controversies #et+een a la#orer an* his master, *o$#ts reasona#l% arisin/ -rom the evi*ence sho$l* #e resolve* in the -ormer,s -avor. 0he )olic% is to e1ten* the *octrine to a /reater n$m#er o- em)lo%ees +ho can avail o- the #ene-its $n*er the la+, +hich is in consonance +ith the avo+e* )olic% o- the ;tate to /ive ma1im$m ai* an* )rotection o- la#or. 1'. D$m)it-9$rillo v. C. G.R. No. 1646&', >$ne , '00( Facts: .ssociate* Broa*castin/ Com)an% (.BC) hire* 0helma D$m)it-9$rillo $n*er a talent contract as a ne+scaster an* co-anchor -or Balitang-Balita, an earl% evenin/ ne+s )ro/ram. 0he contract +as -or a )erio* o- three months. .-ter -o$r %ears o- re)eate* rene+als, )etitioner,s talent contract e1)ire*. 0+o +ee8s a-ter the e1)iration o- the last contract, )etitioner sent a letter to 9r. >ose >avier, @ice Presi*ent -or Ne+s an* P$#lic .--airs o- .BC, in-ormin/ the latter that she +as still intereste* in rene+in/ her contract s$#<ect to a salar% increase. 0herea-ter, )etitioner sto))e* re)ortin/ -or +or8. ;he sent a *eman* letter to .BC, *eman*in/ reinstatement, )a%ment o- $n)ai* +a/es an* -$ll #ac8+a/es, )a%ment o- 12th month )a%, vacationEsic8Eservice incentive leaves an* other monetar% #ene-its *$e to a re/$lar em)lo%ee. .BC re)lie* that a chec8 coverin/ )etitioner,s talent -ees ha* #een )rocesse* an* )re)are*, #$t that the other claims o- )etitioner ha* no #asis in -act or in la+. 0he :a#or .r#iter *ismisse* the com)laint -or ille/al constr$ctive *ismissal. N:RC reverse*. Issue: 7hether or not 9$rillo is an em)lo%ee o- .ssociate* Broa*castin/ Com)an%. Ruling: 0helma D$m)it-9$rillo +as a re/$lar em)lo%ee $n*er contem)lation o- la+. 0he )ractice ohavin/ -i1e*-term contracts in the in*$str% *oes not a$tomaticall% ma8e all talent contracts vali* an* com)liant +ith la#or la+. 0he assertion that a talent contract e1ists *oes not necessaril% )revent a re/$lar em)lo%ment stat$s. "$rther, the Sonza case is not a))lica#le. In Sonza, the television station *i* not e1ercise control over the means an* metho*s o- the )er-ormance o- ;on6a,s +or8. In the case at #ar, .BC ha* control over the )er-ormance o- )etitioner,s +or8. Note+orth% too, is the com)arativel% lo+ P' ,000 monthl% )a% o- )etitioner vis the P200,000 a month salar% o- ;on6a, that all the more #olsters the concl$sion that )etitioner +as not in the same sit$ation as ;on6a. 0he *$ties o- )etitioner as en$merate* in her em)lo%ment contract in*icate that .BC ha* control over the +or8 o- )etitioner. .si*e -rom control, .BC also *ictate* the +or8 assi/nments an* )a%ment o- )etitioner,s +a/es. .BC also ha* )o+er to *ismiss her. .ll these #ein/ )resent, clearl%, there e1iste* an em)lo%ment relationshi) #et+een )etitioner an* .BC. Concernin/ re/$lar em)lo%ment, the re5$isites -or re/$larit% o- em)lo%ment have #een met in the instant case. Petitioner,s +or8 +as necessar% or *esira#le in the $s$al #$siness or tra*e o- the em)lo%er +hich incl$*es, as a )re-con*ition -or its en-ranchisement, its )artici)ation in the

/overnment,s ne+s an* )$#lic in-ormation *issemination. In a**ition, her +or8 +as contin$o$s -or a )erio* o- -o$r %ears. 0his re)eate* en/a/ement $n*er contract o- hire is in*icative o- the necessit% an* *esira#ilit% o- the )etitioner,s +or8 in )rivate res)on*ent .BC,s #$siness. .s a re/$lar em)lo%ee, )etitioner is entitle* to sec$rit% o- ten$re an* can #e *ismisse* onl% -or <$st ca$se an* a-ter *$e com)liance +ith )roce*$ral *$e )rocess. ;ince )rivate res)on*ents *i* not o#serve *$e )rocess in constr$ctivel% *ismissin/ the )etitioner, there +as an ille/al *ismissal. G.R. No. 162813: FAR EAST AGRICULTURAL SU L!" INC. an#$o% ALE&AN'ER U! (s )I**! LE+ATI,UE an# T-E -.N.RA+LE C.URT .F A EALS 12 February 2007 l Labor Standards Abandonment Service Incentive Leave Field ersonnel In 9arch 1336, :e#ati5$e +as hire* as a *river #% ".R A.;0 .GRICC:0CR.: ;CPP:?, INC. +ith a *ail% +a/e o- P''2.&0. 4is <o# as a *river incl$*es the *eliver% o- animal -ee*s to the clients o- the com)an%. 4e m$st re)ort either in the mornin/ or in the a-ternoon to ma8e the *eliveries. =n >an$ar% '4, '000, :e#ati5$e +as s$s)en*e* #% 9an$el C% (#rother o- "A.;I,s General 9ana/er .le1an*er C%) -or alle/e*l% $sin/ the com)an% vehicle ille/all%. =n the same *a%, :e#ati5$e -ile* a com)laint -or non)a%ment o- overtime )a% a/ainst .le1an*er C%. C% s$mmone* :e#ati5$e an* as8e* +h% he +as claimin/ overtime )a%. :e#ati5$e sai* since he starte* +or8in/ +ith the com)an% he has never #een )ai* =0 )a%. C% cons$lte* +ith his #rother. =n >an$ar% '3, '000, C% tol* :e#ati5$e to loo8 -or another <o#. :e#ati5$e then -ile* an Ille/al Dismissal case a/ainst the com)an%. 0he :a#or .r#iter r$le* in -avor o- :e#ati5$e. C% +as or*ere* to reinstate :e#ati5$e an* at the same time to )a% :e#ati5$e his 12th month )a%, #ac8 +a/es (time +hen case +as )en*in/), service incentive leave )a% an* =0 )a% H all amo$ntin/ to P136,6&3.('. C% ar/$e* that :e#ati5$e +as not *ismisse* an* that he +as merel% s$s)en*e*! that he a#an*one* his <o#! an* that :e#ati5$e +as a -iel* )ersonnel not entitle* to overtime )a% an* service incentive leave. ISSUE: 7hether or not :e#ati5$e is a -iel* )ersonnel. -EL': No. :e#ati5$e is a re/$lar em)lo%ee. C% ille/all% *ismisse* :e#ati5$e +hen he tol* him to loo8 -or another <o#. >$*/in/ at the se5$ence oevent, :e#ati5$e earne* the ire o- C% +hen he -ile* a com)laint -or non)a%ment o- =0 )a% on the *a% :e#ati5$e +as s$s)en*e* #% 9an$el C%. ;$ch is not a vali* reason -or *ismissin/ :e#ati5$e. C% cannot there-ore claim that he merel% s$s)en*e* :e#ati5$e. "$rther, :e#ati5$e *i* not a#an*on his <o#. 4is -ilin/ o- this case is )roo- eno$/h that he ha* no intention to a#an*on his <o#. 0o constit$te a#an*onment as a <$st ca$se -or *ismissal, there m$st #eB (a) a#sence +itho$t <$sti-ia#le reason! an* (#) a clear intention, as mani-este* #% some overt act, to sever the em)lo%er-em)lo%ee relationshi). None o- the a#ove +as )roven #% C%. .lso, :e#ati5$e is not a -iel* )ersonnel as *e-ine* a#ove -or the -ollo+in/ reasonsB

(1) com)an% *rivers, incl$*in/ :e#ati5$e, are *irecte* to *eliver the /oo*s at a s)eci-ie* time an* )lace! (') the% are not /iven the *iscretion to solicit, select an* contact )ros)ective clients! an* (2) "ar Aast iss$e* a *irective that com)an% *rivers sho$l* sta% at the client,s )remises *$rin/ tr$c8#an ho$rs +hich is -rom &B00 to 3B00 a.m. an* &B00 to 3B00 ).m. .s a re/$lar em)lo%ee, :e#ati5$e is entitle* to service incentive leave an* =0 )a%. 0he ;$)reme Co$rt a--irme* the :a#or .r#iter,s *ecision #$t reman*e* the case -or )ro)erl% com)$tin/ :e#ati5$e,s =0 )a% ta8in/ in to consi*eration the com)an%,s time 8ee)in/ recor*s. Fiel# e%sonnel 'e/ine# "iel* )ersonnel are those +ho re/$larl% )er-orm their *$ties a+a% -rom the )rinci)al )lace o- #$siness o- the em)lo%er an* +hose act$al ho$rs o- +or8 in the -iel* cannot #e *etermine* +ith reasona#le certaint%. N.C0E'C (. NLRC Facts: Danilo 9erca*o, an em)lo%ee o- the Phili))ine National =il Com)an% - Aner/% Develo)ment Cor)oration, +as *ismisse* on the /ro$n*s o- serio$s acts o- *ishonest% an* violation o- com)an% r$les an* re/$lations alle/e*l% committe* as -ollo+sB 1. 7ith*re+ P16 0.00 -rom com)an% -$n*s, a))ro)riate* P6 0.00 -or )ersonal $se an* )ai* the ni)a s$))lier P1000.00. '. 7ith*re+ P' .66 as )a%ment -or the -a#rication o- r$##er stam) #$t a))ro)riate* the P .66 -or )ersonal $se. 2. .#sence +itho$t leave an* +itho$t )ro)er t$rn-over th$s *isr$)tin/ an* *ela%in/ com)an% +or8 activities. 4. @acation leave +itho$t )rior leave. 9erca*o -ile* a com)laint a/ainst PN=C-ADC #e-ore the N:RC Re/ional .r#itration Branch. .-ter consi*erations o- )osition )a)ers )resente* #% #oth )arties, the la#or ar#iter r$le* in -avor o- 9erca*o. Issues: 1. 7hether or not matters o- em)lo%ment o- PN=C-ADC is +ithin the <$ris*iction o- the la#or ar#iter an* the N:RC. '. 7hether or not the la#or ar#iter an* the N:RC are <$sti-ie* in or*erin/ the reinstatement o- the )rivate res)on*ent, )a%ment o- his savin/s, 12th month )a%, an* )a%ment o- *ama/es as +ell as attorne%,s -ees. -el#: 0he 4i/h Co$rt a--irme* the resol$tion o- the res)on*ent N:RC +ith mo*i-icationB re*$cin/ moral *ama/es to P10000 an* e1em)lar% *ama/es to P&000. 1. 0he test +hether a /overnment-o+ne* or controlle* cor)oration is s$#<ect to Civil ;ervice :a+ is the manner o- its creation. 0hose create* #% s)ecial charter are s$#<ect to its )rovision +hile those create* $n*er General Cor)oration :a+ are not +ithin its covera/e. 0he PN=C-ADC, havin/ #een incor)orate* $n*er General Cor)oration :a+, is s$#<ect to the )rovisions o- the :a#or :a+.

'. PN=C-ADC,s acc$sations are not s$))orte* #% evi*ence. :oss o- tr$st or #reach o- con-i*ence is a vali* /ro$n* -or *ismissin/ an em)lo%ee, #$t s$ch loss or #reach m$st have some #asis. LA1AS SA IN'USTRI!A NG 1A ATIRANG -ALIGI NG AL!ANSA 0 INAG+U1L.' NG *ANGGA0 GA2ANG R.*. NG +URLINGA*E (s. +URLINGA*E C.R .RATI.N G. R. No. 162833" )une 13" 2445 FA!"S# Petitioner in this case so$/ht to re)resent all ran8-an*--ile )romo em)lo%ees o- res)on*ent. It alle/e* that sai* /ro$) o- em)lo%ees is not re)resente* #% a Cnion. ;o, the% -ile* a )etition -or certi-ication election #e-ore the De)artment o- :a#or an* Am)lo%ment. Res)on*ent, ho+ever, o))ose* sai* )etition on the /ro$n* that there e1ists no em)lo%er-em)lo%ee relation #et+een the )arties. Res)on*ent here -$rther claime* that the em)lo%ees so$/ht to #e re)resente* #% )etitioner are not their em)lo%ees #$t the em)lo%ees o- ". Garil 9an)o+er ;ervices, a *$l% license* local em)lo%ment a/enc%. ISS$%# 7hether or not there is em)lo%er-em)lo%ee relationshi) #et+een res)on*ent an* the em)lo%ees so$/ht to #e re)resente* #% )etitioner &$LI'(# In *eci*in/ the instant )etition, the ;$)reme Co$rt stresse* the I-o$r--ol* testI in *eterminin/ the e1istence o- em)lo%er-em)lo%ee relationshi). 0he elements to *etermine the e1istence o- an em)lo%ment relationshi) areB 1. the selection an* en/a/ement o- the em)lo%ee '. the )a%ment o- +a/es 2. the )o+er o- *ismissal an* 4. the em)lo%erJs )o+er to control the em)lo%eeJs con*$ct 0he most im)ortant element is the last element. 0hat is, the em)lo%er controls the con*$ct o- an em)lo%ee not onl% as to the res$lt o- the +or8 to #e *one, #$t also as to the means an* metho*s to accom)lish it. It #ears stressin/ that the -acts o- the case clearl% in*icate the e1istence o- em)lo%erem)lo%ee relationshi). 0he involvement o- ". Garil, the em)lo%ment a/enc%, is limite* onl% to the recr$itment as)ect. "$rthermore, *es)ite o- the )resence o- an sti)$lation a/ree* into #% the em)lo%ment a/enc% an* herein res)on*ent to the e1tent that the ran8-an*--ile em)lo%ees are consi*ere* as the em)lo%ees o- the -ormer, the ;$)reme Co$rt hel* that sai* contract$al sti)$lation cannot overri*e -act$al circ$mstances -irml% esta#lishin/ the le/al e1istence o- an em)lo%er-em)lo%ee relationshi).

(regorio )* "ong+o vs* ",e -anu.acturers Li.e Insurance !o* / ,ils*01 Inc*1 (*&* 'o* 1272221 3une 241 2010* 0he cite* *ecision is the Co$rt,s r$lin/ on a 9otion -or Reconsi*eration -ile* #% the 9an$li-e. FACTS .F T-E CASEB 0he case arose -rom a com)laint -or ille/al *ismissal +ith vario$s claims -ile* #% 0on/8o a/ainst 9an$li-e. 0on/8o alle/e* that he +as an em)lo%ee o- the com)an% since the latter e1ercise* control over him. =- co$rse, 9an$li-e claims other+ise insistin/ that he +as an a/ent. 0he :a#or .r#iter *ismisse* the case not -in*in/ an% em)lo%er-em)lo%ee relationshi). 0his +as reverse* #% the N:RC. =n a))eal to the C., the latter r$le* in -avor o- 9an$li-e -in*in/ no em)lo%erem)lo%ee relationshi). 4ence, 0on/8o a))eale* to the ;$)reme Co$rt.

7hat the ;$)reme Co$rt sai*B T-E SU RE*E C.URT6S .RIGINAL 'ECISI.N Central to the resol$tion o- the ;$)reme Co$rt in the a))eal +as the *is5$isition on the e1istence o- em)lo%er-em)lo%ee relationshi). 0he si/ni-icance o- this -in*in/ is that i- it is -o$n* that no s$ch relationshi) e1ists, the la#or co$rts have no <$ris*iction over this case. 0he em)lo%er-em)lo%ee relationshi) is esta#lishe* #% the -o$r--ol* test, as -ollo+sB (a) the selection an* en/a/ement o- the em)lo%ee! (#) the )a%ment o- +a/es! (c) the )o+er o- *ismissal! an* (*) the em)lo%er,s )o+er to control the em)lo%ee,s con*$ct. 0he ;$)reme Co$rt hel* that i- the s)eci-ic r$les an* re/$lations that are en-orce* a/ainst ins$rance a/ents or mana/ers are s$ch that +o$l* *irectl% a--ect the means an* metho*s #% +hich s$ch a/ents or mana/ers +o$l* achieve the o#<ectives set #% the ins$rance com)an%, the% are em)lo%ees o- the ins$rance com)an%. .))l%in/ sai* stan*ar*, the Co$rt hel* that 0on/8o +as an em)lo%ee o- 9an$li-e since the latter ha* the )o+er o- control over the -ormer. 0he Co$rt accor*e* m$ch +ei/ht on the vario$s co*es o- con*$ct that 0on/8o ha* to o#serve )$rs$ant to the a/enc% a/reement. It hel*B F0h$s, +ith the com)an% re/$lations an* re5$irements alone, the -act that 0on/8o +as an em)lo%ee o9an$li-e ma% alrea*% #e esta#lishe*. Certainl%, these re5$irements controlle* the means an* metho*s #% +hich 0on/8o +as to achieve the com)an%,s /oals. 9ore im)ortantl%, 9an$li-e,s evi*ence esta#lishes the -act that 0on/8o +as tas8e* to )er-orm a*ministrative *$ties that esta#lishes his em)lo%ment +ith 9an$li-e.G In short, the ;$)reme Co$rt r$le* in -avor o- 0on/8o +hich )rom)te* 9an$li-e to -ile its 9otion -or Reconsi*eration. T-E *.TI.N F.R REC.NSI'ERATI.N In *is)osin/ o- this 9otion -or Reconsi*eration, the ;$)reme Co$rt )lace* heav% si/ni-icance on the a))lication o- the Civil Co*e an* Ins$rance )rovisions on a/enc%. 0he ori/inal ./reement o- 0on/8o +ith the com)an% *ictates that he is an ins$rance a/ent. No other *oc$mentar% evi*ence +as -o$n* to s$))ort s$#se5$ent sti)$lations as to their relationshi) that +o$l* ne/ate the a/enc%, an* not em)lo%ment, relationshi) on the ori/inal a/reement. It +as -o$n* #% the Co$rt that 0on/8o *eclare* himsel- as #$siness or sel--em)lo%e* )erson in his income ta1 ret$rn. In a sense, an in*e)en*ent contractor. 0his #olsters the content o- the ./reement

mentione* a#ove that he +as an ins$rance a/ent in the conte1t o- the Ins$rance Co*e an* the Civil Co*e. 0o the Co$rt, this as)ect o- the evi*ence +as not consi*ere* in its ori/inal *ecision, +hich ha* the% #een /iven im)ortance, +o$l* have chan/e* the *ecision as it is an a*mission a/ainst interest on the )art o- 0on/8o. .nother )rinci)le that s$r-ace* here is the conce)t o- esto))el. 0on/8o,s )revio$s a*missions in several %ears o- ta1 ret$rns as an in*e)en*ent a/ent, as a/ainst his #elate* claim that he +as all alon/ an em)lo%ee, are too *iametricall% o))ose* to #e sim)l% *ismisse* or i/nore*. .s to the val$e o- the Co*e o- Con*$ct relie* $)on #% 0on/8o in claimin/ that he is an em)lo%ee, the Co$rt )ositsB F7hat, to 0on/8o, serve as evi*ence o- la#or la+ control are the co*es o- con*$ct that 9an$li-e im)oses on its a/ents in the sale o- ins$rance. 0he mere )resentation o- co*es or o- r$les an* re/$lations, ho+ever, is not )er se in*icative o- la#or la+ control as the la+ an* <$ris)r$*ence teach $s. .s alrea*% recite* a#ove, the Ins$rance Co*e im)oses o#li/ations on #oth the ins$rance com)an% an* its a/ents in the )er-ormance o- their res)ective o#li/ations $n*er the Co*e, )artic$larl% on licenses an* their rene+als, on the re)resentations to #e ma*e to )otential c$stomers, the collection o)remi$ms, on the *eliver% o- ins$rance )olicies, on the matter o- com)ensation, an* on meas$res to ens$re ethical #$siness )ractice in the in*$str%. Ele7ent o/ cont%ol in 8%inci8al0agent %elations9i8 #oes not 7a:e t9e agent an e78lo;ee o/ t9e 8%inci8al. 0he /eneral la+ on a/enc%, on the other han*, e1)ressl% allo+s the )rinci)al an element o- control over the a/ent in a manner consistent +ith an a/enc% relationshi). In this sense, these control meas$res cannot #e rea* as in*icative o- la#or la+ control. "oremost amon/ these are the *irectives that the )rinci)al ma% im)ose on the a/ent to achieve the assi/ne* tas8s, to the e1tent that the% *o not involve the means an* manner o- $n*erta8in/ these tas8s. 0he la+ li8e+ise o#li/ates the a/ent to ren*er an acco$nt! in this sense, the )rinci)al ma% im)ose on the a/ent s)eci-ic instr$ctions on ho+ an acco$nt shall #e ma*e, )artic$larl% on the matter o- e1)enses an* reim#$rsements. 0o these e1tents, control can #e im)ose* thro$/h r$les an* re/$lations +itho$t intr$*in/ into the la#or la+ conce)t ocontrol -or )$r)oses o- em)lo%ment.G 0he Co$rt -$rther hel* that a commitment to a#i*e #% the r$les an* re/$lations o- an ins$rance com)an% *oes not i)so -acto ma8e the ins$rance a/ent an em)lo%ee. Neither *o /$i*elines someho+ restrictive o- the ins$rance a/ent,s con*$ct necessaril% in*icate FcontrolG as this term is *e-ine* in <$ris)r$*ence. G$i*elines in*icative o- la#or la+ Fcontrol,G sho$l* not merel% relate to the m$t$all% *esira#le res$lt inten*e* #% the contract$al relationshi)! the% m$st have the nat$re o- *ictatin/ the means or metho*s to #e em)lo%e* in attainin/ the res$lt, or o- -i1in/ the metho*olo/% an* o- #in*in/ or restrictin/ the )art% hire* to the $se o- these means. In -act, res$lts-+ise, the )rinci)al can im)ose )ro*$ction 5$otas an* can *etermine ho+ man% a/ents, +ith s)eci-ic territories, o$/ht to #e em)lo%e* to achieve the com)an%,s o#<ectives. 0hese are mana/ement )olic% *ecisions that the la#or la+ element o- control cannot reach. 0h$s, as +ill #e sho+n more -$ll% , 9an$li-e,s co*es o- con*$ct, all o+hich *o not intr$*e into the ins$rance a/ents, means an* manner o- con*$ctin/ their sales an* onl% control them as to the *esire* res$lts an* Ins$rance Co*e norms, cannot #e $se* as #asis -or a

-in*in/ that the la#or la+ conce)t o- control e1iste* #et+een 9an$li-e an* 0on/8o. 0h$s, the Co$rt *i* not see the e1istence o- s$ch relationshi) an* reverse* its earlier r$lin/ +hich /rante* 0on/8o millions in #ac8+a/es an* *ama/es, amon/ others.G G.R. No. 133245: 2IL-EL*INA S. .R.<C. (s T-E FIFT- 'I=ISI.N .F T-E -.N.RA+LE C.URT .F A EALS" -ILI INE 'AIL! IN,UIRER" AN' LETICIA )I*ENE< *AGSAN.C 24 A5ril 2006 7 Labor Standards %m5loyee-em5loyer &elations,i5 in a ublication Bond &e8uirement 9,en %m5loyer A55eals in a Labor !ase =ro6co +as hire* as a +riter #% the Phili))ine Dail% In5$irer in 1330. ;he +as the col$mnist oF"eminist Re-lectionsG $n*er the :i-est%le section o- the )$#lication. ;he +rites on a +ee8l% #asis an* on a )er article #asis (P'&0-200Earticle). In 1331, 9a/sanoc as the e*itor-in-chie- so$/ht to im)rove the :i-est%le section o- the )a)er. ;he sai* there +ere too man% :i-est%le +riters an* that it +as time to re*$ce the n$m#er o- +riters. =ro6co,s col$mn +as event$all% *ro))e*. =ro6co -ile* -or a case -or Ille/al Dismissal a/ainst PDI an* 9a/sanoc. =ro6co +on in the :a#or .r#iter. 0he :. r$le* that there e1ists an em)lo%er-em)lo%ee relationshi) #et+een PDI an* =ro6co hence =ro6co is entitle* to receive #ac8+a/es, reinstatement, an* 12th month )a%. PDI a))eale* to the National :a#or Relations Commission. 0he N:RC *enie* the a))eal #eca$se othe -ail$re o- PDI to )ost a s$ret% #on* as re5$ire* #% .rticle ''2 o- the :a#or Co*e. 0he Co$rt o.))eals reverse* the N:RC. ISSUE: 7hether or not there e1ists an em)lo%er-em)lo%ee relationshi) #et+een PDI an* =ro6co. 7hether or not PDI,s a))eal +ill )ros)er. -EL': Cn*er .rticle ''2 o- the :a#or Co*eB .R0. ''2. .))eal. H Decisions, a+ar*s or or*ers o- the :a#or .r#iter are -inal an* e1ec$tor% $nless a))eale* to the Commission #% an% or #oth )arties +ithin ten (10) calen*ar *a%s -rom recei)t o- s$ch *ecisions, a+ar*s, or or*ers. In case o- a <$*/ment involvin/ a monetar% a+ar*, an a))eal #% the em)lo%er ma% #e )er-ecte* onl% $)on the )ostin/ o- a cash or s$ret% #on* iss$e* #% a re)$ta#le #on*in/ com)an% *$l% accre*ite* #% the Commission in the amo$nt e5$ivalent to the monetar% a+ar* in the <$*/ment a))eale* -rom. 0he re5$irement that the em)lo%er )ost a cash or s$ret% #on* to )er-ect itsEhis a))eal is a))arentl% inten*e* to ass$re the +or8ers that i- the% )revail in the case, the% +ill receive the mone% <$*/ment in their -avor $)on the *ismissal o- the em)lo%er,s a))eal. It +as inten*e* to *isco$ra/e em)lo%ers -rom $sin/ an a))eal to *ela%, or even eva*e, their o#li/ation to satis-% their em)lo%ees, <$st an* la+-$l claims. B$t in this case, this )rinci)le is rela1e* #% the ;$)reme Co$rt consi*erin/ the -act that the :a#or .r#iter, in r$lin/ that the =ro6co is entitle* to #ac8+a/es, *i* not )rovi*e an% com)$tation.

0he case is then reman*e* to the :a#or .r#iter -or the com)$tation. 0his necessaril% )en*e* the resol$tion o- the other iss$e o- +hether or not there e1ists an em)lo%er-em)lo%ee relationshi) #et+een PDI an* =ro6co.