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Century Canning vs.

Court of Appeals
[G.R. No. 152894, August 7, 2007]

Prepared by: Rhein B. Manalaysay


Topic: Apprenticeship

FACTS:

On July 15, 1997, private respondent Gloria C. Palad was hired by petitioner
corporation as a fish cleaner. Palad signed an Apprenticeship Agreement with petitioner
on July 17, 1997. On July 25, 1997, petitioner submitted its apprenticeship program to
TESDA for approval. On September 26, 1997, TESDA approved the apprenticeship
program.
On November 15, 1997, a performance evaluation was conducted and Palad got a
low rating since she scored only 27.75% based on a 100% indicator. As a consequence,
petitioner issued a termination notice dated November 22, 1997 to Palad to be effective at
the close of business hours on November 28, 1997.
Palad filed a complaint for illegal dismissal, underpayment of wages and non-
payment of pro-rated 13th month pay for the year 1997.
The Labor Arbiter dismissed the complaint for lack of merit but ordered the
payment of last salary and pro-rated 13th month pay. On appeal, NRC affirmed the LA's
ruling but modified the amount to be paid.
On appeal to the CA, the appellate court set aside NIRC's ruling. The court held
that since the apprenticeship agreement was not yet approved by TESDA at the time it
was entered into, the same was not valid and binding and as such, Palad is considered to
be a regular employee. Also, the court ruled that Pala was illegally dismissed because
petitioner did not comply with the twin requirements of notice and hearing.

ISSUE:

Whether or not the CA erred in ruling that Palad was not an apprentice?

RULING:

No, The Supreme Court affirmed the ruling of the CA. The court ruled that under
the Labor Code, an apprenticeship program should first be approved before an apprentice
may be hired, otherwise, the person hired will be considered as a regular emplovee.
Prior approval by the TESDA of the proposed apprenticeship program is a condition sine
qua non before an apprenticeship agreement can be validly entered into. Since Palad
cannot be considered as an apprentice, she is deemed a regular employee for the job of a
fish cleaner is necessary in petitioner's business as a tuna and sardine's factory.

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