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Myla Ruth N.


Shipside v NLRC

Shipside is a domestic corporation engaged in the handling in bulks all kinds of materials. It entered into a
contact with STEVEDORES, a stevedoring company, wherein Shipside shall give exclusive right to handle
stevedoring services to STEVEDORE.
The business relations between Shipside and STEVEDORES were finally terminated and as a result, several
stevedores and office personnel were dismissed. Thus, these respondents filed a complaint against Shipside and
STEVEDORES for not paying them separation benefits.

ISSUE: W/N an employer-employee relationship exists between Shipside and respondents
W/N Shipside can be held liable for the money benefits


No. Shipside has no participation for the selection and engagement of every stevedores who constitutes the
labor force of STEVEDORES. There is no direct employment relationship between Shipside and respondents.
Payment of salary is made by STEVEDORES to the individual stevedores. Also, Shipside has no power to dismiss
them. Since there is no employer-employee relationship between Shipside and respondents, Shipside cannot be
held liable for the money benefits. There is no termination of employment, but merely a termination of Shipside’s
contract for services with STEVEDORES.