Sapio vs Undaloc Construction, GR 155034 (2008)

Nature: Complaint for illegal dismissal filed by petitioner against Undaloc, and underpayment of
wages and non-payment of statutory benefits.
Facts: Petitioner was employed as a watchman by Ungalo, who was engaged in road
construction, from May 1, 1995 to May 30, 1998 up until he was terminated on the ground that
the project he was assigned was finished.
Petitioner asserted that he was a regular employee having been engaged to perform works
which usually necessary or desirable to the business. Claiming that from certain dates h was
receiving less that the daily wage as mandated by the wage order and he was made to sign two
payroll sheets.
Undaloc maintained that petitioner was a project employee and was only engaged from May 1,
1995 to May 30, 1998 up until the end of the project.
The LA rendered that the termination was for an authorized cause but ordered Undaloc to pay
salary differential and attorney’s fees.
Issue: WON the award of attorney’s fees was proper. (Yes)
Ruling: The award of attorney's fees is warranted under the circumstances of this case. Under
Article 2208 of the New Civil Code, attorney's fees can be recovered in actions for the recovery
of wages of laborers and actions for indemnity under employer's liability laws but shall not
exceed 10% of the amount awarded. The fees may be deducted from the total amount due the
winning party.