PNOC-EDC vs.

NLRC (201 SCRA 487)

SECOND DIVISION G.R. No. 79182 September 11, 1991

PNOC-ENERGY DEVELOPMENT CORPORATION, petitioner, vs. NATIONAL
LABOR RELATIONS COMMISSION (Third Division) and DANILO MERCADO,
respondents.
PARAS, J.:

Facts: Danilo Mercado was an employee of Philippine National Oil Company-

Energy Development Corporation or PNOC-EDC. He was dismissed on the
ground of serious acts of dishonesty and violation of rules and regulations.
Mercado filed a complaint of illegal dismissal against PNOC- EDC before the
NLRC.

It ruled in favor of Mercado. PNOC-EDC questioned the jurisdiction of NLRC on

the ground that matters of employment affecting PNOC-EDC, a government-
owned and controlled corporation are within the jurisdiction of CSC.

Issue: Whether the NLRC has jurisdicition over the case.

Ruling: Yes. Under the present state of the law, the test in determining whether a
government- owned or controlled corporation is subject to the Civil Service Law
are the manner of its creation, such that government corporations created by
special charter are subject to its provisions while those incorporated under the
General Corporation Law are not within its coverage."

PNOC has its special charter, but its subsidiary, PNOC-EDC, having been incorporated
under the General Corporation Law was held to be a GOCC whose employees are
subject to the provisions of the Labor Code.