G.R. No. 105359. April 22, 1993.

CAPITOL INDUSTRIAL CONSTRUCTION GROUPS, petitioner,

vs.
NATIONAL LABOR RELATIONS COMMISSION, THIRD DIVISION, PERCIVAL
GRANADO (in is !"p"!it# "s Seri$$ o$ te NLRC%, NATIONAL &EDERATIONS O& LABOR
UNIONS (NA&LU%, HENR' D. MONTE, ARNEL V. LAPORE, (OSE PAINANDOS, (OEL
BALLEBAS, ANTONIO DE GU)MAN, ROBERTO D. VILLA "n* &LORO CAGOMOC,
respon*ents.
+,"s", Asperi--", An!et", Pe." "n* No-"s!o $or petitioner.
&e-i/on G. Ter!ero $or priv"te respon*ents.
S'LLABUS
0. LABOR AND SOCIAL LEGISLATION1 REGULAR EMPLO'EE1 DEEMED PRESENT
2HEN THE' PER&ORMED TAS3S VITAL AND INDISPENSABLE TO THE E&&ICIENT
ADMINISTRATION AND COMPLETION O& THE COMPAN'4S VARIOUS PRO(ECTS. 5
Te priv"te respon*ents *i* not "-6"#s 6or7 in te pro8e!t sites. Te# "re so/eti/es "ssi9ne* "t
te Centr"- O$$i!e 6i! too7 !"re o$ "*/inistr"tion, en9ineerin9, ",*itin9, "n* $in"n!in9, or "t
te Centr"- Sop 6i! 6"s responsi:-e prin!ip"--# $or te /"inten"n!e "n* rep"ir o$ !o/p"n#
tr,!7s, too-s, "n* e;,ip/ent, "n* te tr"ns$er o$ /"teri"-s to te pro8e!t sites. Te# "-so 6or7e*
in te Centr"- 2"reo,se 6ere !o/p"n# /"teri"-s 6ere store* "n* iss,e*. C-e"r-#, te#
per$or/e* t"s7s vit"- "n* in*ispens":-e to te e$$i!ient "*/inistr"tion "n* !o/p-etion o$ te
!o/p"n#4s v"rio,s pro8e!ts, en!e, te# 6ere re9,-"r e/p-o#ees, i.e., e/p-o#ees 6o per$or/
6or7 <,s,"--# ne!ess"r# "n* *esir":-e in te e/p-o#er4s ,s,"- :,siness or tr"*e< (Art. =>?, L":or
Co*e%. In te !"se o$ M"9"nte vs. N"tion"- L":or Re-"tions Co//ission, 0>@ SCRA =0, =AB=>,
6e r,-e* t"tC A-to,9 petitioner "* on-# ren*ere* "-/ost t6o #e"rs o$ servi!e, neverte-ess
tis so,-* not *etr"!t $ro/ is st"t,s o$ :ein9 " re9,-"r e/p-o#ee :e!",se "s !orre!t-# st"te* :#
te -":or "r:iter, te *eter/inin9 $"!tor o$ te st"t,s o$ !o/p-"in"ntBpetitioner or "n# 6or7er is
te n"t,re o$ te 6or7 per$or/e* :# te -"tter "n* te p-"!e 6ere e per$or/e* is "ssi9n/ent.
Moreover, i$ petitioner 6ere e/p-o#e* "s " Dpro8e!t e/p-o#ee4 priv"te respon*ent so,-* "ve
s,:/itte* " report o$ ter/in"tion to te ne"rest p,:-i! e/p-o#/ent o$$i!e ever# ti/e is
e/p-o#/ent is ter/in"te* *,e to !o/p-etion o$ e"! !onstr,!tion pro8e!t, "s re;,ire* :# Po-i!#
Instr,!tion No. =?.<
D E C I S I O N
GRIEOBA+UINO, ( pC
Tis is " !"se 6ere te $in*in9s o$ te N"tion"- L":or Re-"tions Co//ission (NLRC% "n* te
L":or Ar:iter *i$$ere* $ro/ e"! oter. Te L":or Ar:iter e-* t"t te priv"te respon*ents 6ere
not re9,-"r, :,t pro8e!t, e/p-o#ees 6o 6ere v"-i*-# *is/isse* ,pon te ter/in"tion o$ teir
pro8e!t. Te NLRC $o,n* oter6ise "n* e-* te e/p-o#er -i":-e $or teir i--e9"- *is/iss"-.
Te priv"te respon*ents 6ere ire* :# te petitioner on *i$$erent *"tes to 6or7 in its v"rio,s
pro8e!ts. Be$ore enterin9 ,pon teir *,ties, e"! o$ te/ eFe!,te* "n e/p-o#/ent !ontr"!t
!"ptione* <Appoint/ent "s Pro8e!t Contr"!t 2or7er,< 6i! !ont"ine* te $o--o6in9
stip,-"tionsC
<0. 'o,r st"t,s is t"t o$ " !ontr"!t 6or7er $or (O G00A= CS pro8e!t "n* s,! oter pro8e!ts "s te
Co/p"n# /"# *esi9n"te "n* -i/ite* to te "pproFi/"te perio* o$ pro8e!t re;,ire/ents. Te
Co/p"n# s"-- eFer!ise its prero9"tive, "/on9 oters tr"ns$errin9 or "ssi9nin9 #o, in s,! p-"!e
o$ 6or7in9 s,! si$t "s /"# :e ne!ess"r#.
<FFF FFF FFF
<@. As " !ontr"!t 6or7er $or " spe!i$i! pro8e!t, #o,r e/p-o#/ent is te/por"r# "n* ter/in"tes
,pon !o/p-etion o$ te pro8e!t 6ito,t "n# nee* $or ver:"- or 6ritten noti!e "n* #o, "re not
entit-e* to sep"r"tion or ter/in"tion p"#.
<FFF FFF FFF
<H. Te !o/p-etion o$ tis !ontr"!t or "n# eFtension or rene6"- tereo$ *oes not entit-e #o, to
:e!o/e re9,-"r e/p-o#ee o$ te Co/p"n#. Li7e6ise, te Co/p"n# is not ,n*er "n# o:-i9"tion to
"ppoint #o, "s " re9,-"r e/p-o#ee not 6itst"n*in9 (si!% te tot"- *,r"tion o$ tis !ontr"!t "n*Ior
"n# eFtension or rene6"- tereo$.< (p. 0, Ro--o.%
Inste"* o$ :ein9 "ssi9ne* "t te 8o: sites, te priv"te respon*ents 6ere /"*e to 6or7 "s 6e-*er,
inventor# !-er7, tr,!7 e-per, /"!inist, :"tter#/"n or 6"reo,se/"n eiter "t te Co/p"n#4s
Centr"- Sop, Centr"- 2"reo,se, or Centr"- O$$i!e, in C"int", RiJ"-.
On Nove/:er 0, 0HH?, te petitioner ter/in"te* te servi!es o$ te priv"te respon*ents on te
9ro,n* o$ !o/p-etion o$ teir pro8e!ts.
Te priv"te respon*ents tere,pon $i-e* " !o/p-"int $or i--e9"- *is/iss"- "9"inst te !o/p"n#
"n*Ior its personne- !oor*in"tor, Gre9orio M. Norie9".
On M"# K?, 0HH0, te L":or Ar:iter ren*ere* 8,*9/ent $in*in9 t"t te priv"te respon*ents 6ere
!ontr"!t 6or7ers, en!e, teir e/p-o#/ent "s !oter/ino,s 6it te !o/p-etion o$ te p"rti!,-"r
pro8e!ts to 6i! te# "* :een "ssi9ne* to 6or7. Neverte-ess, te L":or Ar:iter e-* t"t sin!e
te priv"te respon*ents "* spent te :est #e"rs o$ teir -ives in te servi!e o$ te petitioner, te#
so,-* re!eive sep"r"tion :ene$its "t te r"te o$ oneB"-$ (0I=% /ont p"# $or ever# #e"r o$
servi!e, " $r"!tion o$ siF (L% /onts to :e !onsi*ere* "s one (0% 6o-e #e"r. Te L":or Ar:iter
"-so 9r"nte* teir !-"i/s $or servi!e -e"ve p"# s,:8e!t to te treeB#e"r pres!riptive perio*.
Bot p"rties "ppe"-e* to te NLRC.
On A,9,st K?, 0HH0, te LRC set "si*e te L":or Ar:iter4s *e!ision "n* iss,e* " reso-,tionC
0. *e!-"rin9 te !o/p-"in"nts to :e re9,-"r e/p-o#ees1
=. *e!-"rin9 teir *is/iss"- i--e9"-1
K. or*erin9 teir reinst"te/ent to teir $or/er positions 6ito,t -oss o$ seniorit# ri9ts1 "n*
M. or*erin9 te C"pito- In*,stri"- Constr,!tion Gro,ps (no6 petitioner% to p"# te !o/p-"in"nts
teir :"!76"9es $ro/ te *"te o$ teir *is/iss"- ,nti- "!t,"- reinst"te/ent.
Bot p"rties $i-e* /otions $or re!onsi*er"tion.
On O!to:er 0@, 0HH0, te NLRC ren*ere* " reso-,tion *en#in9 petitioner4s /otion $or
re!onsi*er"tion, :,t /o*i$ie* its *e!ision :# or*erin9 te p"#/ent o$ servi!e in!entive -e"ve p"#
to te e/p-o#ees.
Te !o/p"n# $i-e* tis petition $or !ertior"ri "--e9in9 t"t te NLRC !o//itte* 9r"ve ":,se o$
*is!retion "/o,ntin9 to -"!7 or eF!ess o$ 8,ris*i!tion in $in*in9 t"t te priv"te respon*ents "re
re9,-"r e/p-o#ees o$ te petitioner "n* or*erin9 teir reinst"te/ent 6it $,-- :"!76"9es "n*
oter :ene$its.
Petitioner4s *e$ense is /"in-# "n!ore* on te e/p-o#/ent !ontr"!t ;,ote* ":ove 6i! s
!"ptione* <Appoint/ent "s Pro8e!t Contr"!t 2or7er.< Petitioner !onten*s t"t sin!e priv"te
respon*ents "re :o,n* :# s"i* !ontr"!t 6i! provi*es t"t te# "re !ontr"!t 6or7ers, teir
ten,re o$ e/p-o#/ent is !oter/ino,s 6it te !o/p-etion o$ teir "ssi9ne* pro8e!ts or t"s7s.
&,rter, it !-"i/e* t"t sin!e it /"int"ins on-# one !entr"- sop "n* 6"reo,se t"t !"ters to te
!o/p"n#4s v"rio,s pro8e!ts, 6or7ers ire* $or " p"rti!,-"r pro8e!t /"# "-so :e "ssi9ne* in te
!entr"- sop "n* 6"reo,se 6ito,t vio-"tin9 te !ontr"!t.
Te ":ove "r9,/ent o$ te petitioner is *evoi* o$ /erit. Te NLRC *i* not err in o-*in9 t"t
priv"te respon*ents "re re9,-"r e/p-o#ees entit-e* to se!,rit# o$ ten,re. Te evi*en!e so6s t"t
te priv"te respon*ents "re not pro8e!t e/p-o#ees.
Arti!-e =>? o$ te L":or Co*e *e$ines re9,-"r "n* !"s,"- e/p-o#eesC
<Art. =>?. Re9,-"r "n* C"s,"- E/p-o#/ent. 5 Te provisions o$ 6ritten "9ree/ent to te
!ontr"r# not6itst"n*in9 "n* re9"r*-ess o$ te or"- "9ree/ent o$ te p"rties, "n e/p-o#/ent
s"-- :e *ee/e* to :e re9,-"r 6ere te e/p-o#ee "s :een en9"9e* to per$or/ "!tivities 6i!
"re ,s,"--# ne!ess"r# or *esir":-e in te ,s,"- :,siness or tr"*e o$ te e/p-o#er, eF!ept 6ere
te e/p-o#/ent "s :een $iFe* $or " spe!i$i! pro8e!t or ,n*ert"7in9 te !o/p-etion or
ter/in"tion o$ 6i! "s :een *eter/ine* "t te ti/e o$ te en9"9e/ent o$ te e/p-o#ee or
6ere te 6or7 or servi!es to :e per$or/e* is se"son"- in n"t,re "n* te e/p-o#/ent is $or te
*,r"tion o$ te se"son.<
Sin!e te priv"te respon*ents 6or7e* $or te petitioner not on-# $or " spe!i$i! perio* o$ ti/e, :,t
-on9 "$ter teir s,ppose* pro8e!ts "* :een $inise*, te O$$i!e o$ te So-i!itor Gener"- !orre!t-#
pointe* o,t t"tC
<. . . T,s, in te !"ses o$ Ro:erto Vi--", (oe- B"--e:"s "n* Arne- T"pore, te# 6ere "-- ter/in"te*
in Nove/:er 0HH? 6en te pro8e!ts ((O G00L@ "n* (O G00A=% $or 6i! te# 6ere "--e9e*-#
e/p-o#e* 6ere !o/p-ete* in 0H>L "n* (,ne 0H>H, respe!tive-# (see p. >, AnneF 4A4, Petition%.
Tis !ir!,/st"n!e :e-ies petitioner4s !-"i/ t"t priv"te respon*ents 6ere ire* $or p"rti!,-"r
pro8e!ts.< (p. 0ML, Ro--o.%
Te priv"te respon*ents *i* not "-6"#s 6or7 in te pro8e!t sites. Te# 6ere so/eti/es "ssi9ne*
"t te Centr"- O$$i!e 6i! too7 !"re o$ "*/inistr"tion, en9ineerin9, ",*itin9, "n* $in"n!in9, or
"t te Centr"- Sop 6i! 6"s responsi:-e prin!ip"--# $or te /"inten"n!e "n* rep"ir o$
!o/p"n# tr,!7s, too-s, "n* e;,ip/ent, "n* te tr"ns$er o$ /"teri"-s to te pro8e!t sites. Te# "-so
6or7e* in te Centr"- 2"reo,se 6ere !o/p"n# /"teri"-s 6ere store* "n* iss,e*. C-e"r-#, te#
per$or/e* t"s7s vit"- "n* in*ispens":-e to te e$$i!ient "*/inistr"tion "n* !o/p-etion o$ te
!o/p"n#4s v"rio,s pro8e!ts, en!e, te# 6ere re9,-"r e/p-o#ees, i.e., e/p-o#ees 6o per$or/
6or7 <,s,"--# ne!ess"r# "n* *esir":-e in te e/p-o#er4s ,s,"- :,siness or tr"*e< (Art. =>?, L":or
Co*e%. In te !"se o$ M"9"nte vs. N"tion"- L":or Re-"tions Co//ission, 0>@ SCRA =0, =AB=>,
6e r,-e* t"tC
<A-to,9 petitioner "* on-# ren*ere* "-/ost t6o #e"rs o$ servi!e, neverte-ess tis so,-* not
*etr"!t $ro/ is st"t,s o$ :ein9 " re9,-"r e/p-o#ee :e!",se "s !orre!t-# st"te* :# te -":or
"r:iter, te *eter/inin9 $"!tor o$ te st"t,s o$ !o/p-"in"ntBpetitioner or "n# 6or7er is te n"t,re
o$ te 6or7 per$or/e* :# te -"tter "n* te p-"!e 6ere e per$or/e* is "ssi9n/ent.
<FFF FFF FFF
<Moreover, i$ petitioner 6ere e/p-o#e* "s " Dpro8e!t e/p-o#ee4 priv"te respon*ent so,-* "ve
s,:/itte* " report o$ ter/in"tion to te ne"rest p,:-i! e/p-o#/ent o$$i!e ever# ti/e is
e/p-o#/ent is ter/in"te* *,e to !o/p-etion o$ e"! !onstr,!tion pro8e!t, "s re;,ire* :# Po-i!#
Instr,!tion No. =?.<
Te NLRC !orre!t-# o:serve* t"tC
<2e vie6 "s ,nten":-e te respon*ents4 position t"t te 6or7 o$ te !o/p-"in"nts "ssi9ne* to
te Centr"- Sop 6ere !on$ine* on-# to te rep"ir "n* /"inten"n!e o$ vei!-es "n* e;,ip/ent $or
" spe!i$i! pro8e!t, 6i-e tose "t te Centr"- 2"reo,se -i/ite* teir *,ties to te inventor#
*istri:,tion "n* tr"nsport"tion o$ /"teri"-s nee*e* $or " p"rti!,-"r pro8e!t. 2"t 2e per!eive to
:e /ore in t,ne 6it te re"-ities o$ te !onstr,!tion in*,str# is t"t te Centr"- Sop "n* Centr"-
2"reo,se o$ te respon*ent "re te o$$i!es or *ep"rt/ents t"s7e* 6it te rep"ir "n*
/"inten"n!e o$ vei!-es "n* e;,ip/ent ,se* $or v"rio,s pro8e!ts, 6eter ,n*ert"7en
si/,-t"neo,s-# or not "n* $or te inventor# "n* *istri:,tion o$ /"teri"-s nee*e* $or te pro8e!ts.
B# tis, 2e /e"n t"t te !on!erns o$ te e/p-o#ees in tese t6o o$$i!es "re not -i/ite* on-# to
" spe!i$i! pro8e!t, :,t to "-- o$ te pro8e!ts entere* into :# teir e/p-o#er.
<Tis in $"!t is te "ssertion o$ !o/p-"in"nts in teir position p"per 4te# per$or/ t"s7s vit"- "n*
in*ispens":-e to te e$$i!ient "*/inistr"tion "n* !o/p-etion o$ te !o/p"n#4s sever"- pro8e!ts
(e/p"sis s,pp-ie*% 6i! te L":or Ar:iter 9"ve " 6ron9 interpret"tion (p"9es >BH o$ De!ision,
Ro--o pp. 0LLB0LA%.
<2"t 2e $in* *ist,r:in9 is te "ver/ent o$ te respon*ents in teir Rep-# to Co/p-"in"nts4
Position P"per (Re!or*s, p. 0KL% to te e$$e!t t"t te !ontr"!t o$ te !o/p-"in"nts, "s pro8e!t
e/p-o#ees, "re e$$e!tive ,nti- te# "ve "tten*e* to te e;,ip/ent :"!7-o"*e* to te Motor Poo-
in its prin!ip"- "**ress "t C"int", "$ter 6i!, i$ te# "re not "ssi9ne* to oter pro8e!ts, ten teir
servi!es "re ter/in"te*.
<2e $in* "s :ein9 "9"inst te n"t,re o$ " pro8e!t e/p-o#/ent te re;,ire/ent o$ te respon*ents
$or te !o/p-"in"nts to "tten* to te e;,ip/ent ,se* in te pro8e!ts, -on9 "$ter te !o/p-etion
tereo$, it :ein9 O,r vie6 t"t te inspe!tion, rep"ir "n* /"inten"n!e o$ te s"/e is te "re" o$
responsi:i-it# o$ tose 6or7ers "ssi9ne* to te Motor Poo-.
<To o,r /in*, te servi!es o$ " pro8e!t e/p-o#ee en*s 6it te !o/p-etion o$ te pro8e!t or "
p"se tereo$ to 6i! e /"# "ve :een "ssi9ne*, "n* tere is no ne!essit# to *e$er te
ter/in"tion o$ te !ontr"!t ,nti- "$ter e s"-- "ve "tten*e* to te e;,ip/ent t"t e /"# "ve
,se*, or $or t"t /"tter, $or "n# oter t"s7 t"t /"# :e re;,ire* o$ i/ :# is e/p-o#er.
<A r,n*o6n o$ te t#pe o$ 6or7 "n* p-"!e o$ "ssi9n/ent o$ te !o/p-"in"nts, viJC &-oro
C"9o/o! 5 6e-*er "ssi9ne* to te Centr"- Sop1 Ro:erto Vi--" 5 inventor# !-er7, Centr"-
2"reo,se1 Arne- L"pore 5 tr,!7 e-per, Centr"- Sop1 (oe- B"--e:"s 5 tr,!7 e-per, Centr"-
Sop1 Henr# Monte 5 /"!inist, Centr"- Sop1 "n* Antonio M. *e G,J/"n 5 :"tter#/"n,
Centr"- Sop 6o,-* *is!-ose t"t te "$oren"/e* persons 6ere not "ssi9ne* to " spe!i$i! pro8e!t,
teir "ppoint/ent p"pers not6itst"n*in9.
<Hen!e, 2e o-* t"t te !o/p-"in"nts, :# te ver# n"t,re o$ teir 6or7 "re re9,-"r nonBpro8e!t
e/p-o#ees entit-e* to se!,rit# o$ ten,re.< (pp. K0BKK, Ro--o.%
Tese $"!t,"- $in*in9s o$ te NLRC so,-* :e <"!!or*e* not on-# respe!t :,t "-so $in"-it# sin!e
te# "re s,pporte* :# s,:st"nti"- evi*en!e< (Re#es N Li/ Co/p"n#. In!. vs. N"tion"- L":or
Re-"tions Co//ission, =?0 SCRA AA=%.
2HERE&ORE, te petition $or !ertior"ri is DISMISSED $or -"!7 o$ /erit.
SO ORDERED.