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- versus -

G.R. No. 155504


QUISUMBING, J., Chairperson,


$ENAR%-%E !ASTR, &nd


*une +,, +--.

x ---------------------------------------------------------------------------------------------------------- x



/e reso(ve t0e petition 1i(ed 23 Pro1ession&( 4ideo, In5. 6PROVI7
to &nnu(
&nd set &side t0e %e5ision
o1 t0e !ourt o1 Appe&(s 6CA7 in !A-G.R. SP No.
,;<.., &nd its su2se=uent rder den3in) PR4I>s 'otion 1or re5onsider&tion.
T0e &ss&i(ed !A de5ision nu((i1ied:
&. t0e rder
d&ted *u(3 9,, +--9 o1 t0e Re)ion&( Tri&( !ourt 6RTC7,
P&si) !it3, in !ivi( !&se No. ,A<+;, dire5tin) t0e
&tt&50'entB)&rnis0'ent o1 t0e properties o1 respondent Te50ni5&(
Edu5&tion &nd SCi((s %eve(op'ent

6TESDA7 &'ountin) to T0irt3 Dive
Mi((ion Pesos 6P?<,---,---.--7E &nd
2. t0e RT!>s Au)ust +@, +--9 rder
den3in) respondent
TES%A>s 'otion to dis50&r)eB=u&s0 Frit o1 &tt&50'ent.


PR4I is &n entit3 en)&)ed in t0e s&(e o1 0i)0 te50no(o)3 e=uip'ent,
in1or'&tion te50no(o)3 produ5ts &nd 2ro&d5&st devi5es, in5(udin) t0e supp(3 o1
p(&sti5 5&rd printin) &nd se5urit3 1&5i(ities.

TES%A is &n instru'ent&(it3 o1 t0e )overn'ent est&2(is0ed under
Repu2(i5 A5t 6R.A.7 No. ;;., 6t0e TES%A A5t o1 9..@7 &nd &tt&50ed to t0e
%ep&rt'ent o1 $&2or &nd E'p(o3'ent 6DOLE7 to Gdeve(op &nd est&2(is0 &
n&tion&( s3ste' o1 sCi((s st&nd&rdiH&tion, testin), &nd 5erti1i5&tion in t0e
To 1u(1i(( t0is '&nd&te, it sou)0t to issue se5urit3-printed 5erti1i5&tion
&ndBor identi1i5&tion po(3vin3( 6PVC7 5&rds to tr&inees F0o 0&ve p&ssed t0e
5erti1i5&tion pro5ess.

TES%A>s Pre-Qu&(i1i5&tion Bids AF&rd !o''ittee 6PBAC7 5ondu5ted
tFo 6+7 pu2(i5 2iddin)s on *une +<, 9... &nd *u(3 ++, 9... 1or t0e printin) &nd
en5odin) o1 P4! 5&rds. A 1&i(ure o1 2iddin) resu(ted in 2ot0 inst&n5es sin5e on(3
tFo 6+7 2idders J PR4I &nd SireK P0i(s. !orp. J su2'itted propos&(s.

%ue to t0e 1&i(ed 2iddin), t0e PBA! re5o''ended t0&t TES%A enter into
& ne)oti&ted 5ontr&5t Fit0 PR4I. n %e5e'2er +., 9..., TES%A &nd PR4I
si)ned &nd eKe5uted t0eir G!ontr&5t A)ree'ent ProLe5t: P4! I% !&rd Issu&n5eI
6the Contract Agreement7

1or t0e provision o1 )oods &nd servi5es in t0e printin)
&nd en5odin) o1 P4! 5&rds.
Under t0is !ontr&5t A)ree'ent, PR4I F&s to
provide TES%A Fit0 t0e s3ste' &nd e=uip'ent 5o'p(i&nt Fit0 t0e spe5i1i5&tions
de1ined in t0e Te50ni5&( Propos&(. In return, TES%A Fou(d p&3 PR4I t0e &'ount
o1 T0irt3-Nine Mi((ion Dour "undred &nd Sevent3-Dive T0ous&nd Pesos
6P?.,@;<,---7 Fit0in 1i1teen 69<7 d&3s &1ter TES%A>s &55ept&n5e o1 t0e 5ontr&5ted
)oods &nd servi5es.

n Au)ust +@, +---, TES%A &nd PR4I eKe5uted &n GAddendu' to t0e
!ontr&5t A)ree'ent ProLe5t: P4! I% !&rd Issu&n5eI 6Addendm7,
F0ose ter's
2ound PR4I to de(iver one 0undred per5ent 69--M7 o1 t0e enu'er&ted supp(ies
to TES%A 5onsistin) o1 1ive 0undred t0ous&nd 6<--,---7 pie5es o1 se5urit3 1oi(E
1ive 6<7 pie5es o1 se5urit3 die Fit0 TES%A se&(E 1ive 0undred t0ous&nd 6<--,---7
pie5es o1 pre-printed &nd 5usto'iHed identi1i5&tion 5&rdsE one 0undred t0ous&nd
69--,---7 pie5es o1 s5&nn&2(e &nsFer s0eetsE &nd 1ive 0undred t0ous&nd 6<--,---7
5usto'iHed TES%A 0o(o)r&p0i5 (&'in&te. In &ddition, PR4I Fou(d inst&(( &nd
'&int&in t0e 1o((oFin) e=uip'ent: one 697 unit o1 Mi5ropoise, tFo 6+7 units o1 5&rd
printer, t0ree 6?7 units o1 1(&t2ed s5&nner, one 697 unit o1 MR s5&nner, one 697 unit
o1 Server, &nd seven 6;7 units o1 person&( 5o'puter.

TES%A in turn undertooC to p&3 PR4I t0irt3 per5ent 6?-M7 o1 t0e tot&(
5ost o1 t0e supp(ies Fit0in t0irt3 6?-7 d&3s &1ter re5eipt &nd &55ept&n5e o1 t0e
5ontr&5ted supp(ies, Fit0 t0e 2&(&n5e p&3&2(e Fit0in t0irt3 6?-7 d&3s &1ter t0e initi&(

A55ordin) to PR4I, it de(ivered t0e 1o((oFin) ite's to TES%A on t0e
d&tes indi5&ted:

%&te P&rti5u(&rs A'ount

+, Apri( +--- @A,<-- pre-printed 5&rds P +,;,@,<--.--
-; *une +--- ??-,--- pre-printed 5&rds 9A,A9-,---.--
-; Au)ust +--- 9+9,<-- pre-printed 5&rds ,,.+<,<--.--
+, Apri( +--- 9--,--- s5&nn&2(e &nsFer s0eets ,--,---.--
-, *une +--- < Mi5ro-Poise 5usto'iHed die ?;<,---.--
9? *une +--- ?< 2oKes N 9<,--- i'pB2oK 9-,---,---.--
!usto' 0o(o)r&' Doi(
Tot&( P ?.,@;<,---.--

PR4I 1urt0er &((e)ed t0&t out o1 TES%A>s (i&2i(it3 o1 P?.,@;<,---.--,
TES%A p&id PR4I on(3 P?,;?.,<--.--, (e&vin) &n outst&ndin) 2&(&n5e
o1P?<,;?<,<--.--, &s eviden5ed 23 PR4I>s St&te'ent o1 A55ount.
%espite t0e
tFo de'&nd (etters d&ted M&r50 A &nd Apri( +;, +--9 t0&t PR4I sent TES%A,
t0e outst&ndin) 2&(&n5e re'&ined unp&id.

n *u(3 99, +--9, PR4I 1i(ed Fit0 t0e RT! & 5o'p(&int 1or su' o1
'one3 Fit0 d&'&)es &)&inst TES%A. PR4I &ddition&((3 pr&3ed 1or t0e issu&n5e
o1 & Frit o1 pre(i'in&r3 &tt&50'entB)&rnis0'ent &)&inst TES%A. T0e 5&se F&s
do5Ceted &s !ivi( !&se No. ,A<+;. In &n rder d&ted *u(3 9,, +--9, t0e RT!
)r&nted PR4I>s pr&3er &nd issued & Frit o1 pre(i'in&r3 &tt&50'ent &)&inst t0e
properties o1 TES%A not eKe'pt 1ro' eKe5ution in t0e &'ount o1 P?<,---,---.--.

TES%A responded on *u(3 +@, +--9 23 1i(in) & Motion to
%is50&r)eBQu&s0 t0e /rit o1 Att&50'ent, &r)uin) '&in(3 t0&t pu2(i5 1unds 5&nnot
2e t0e su2Le5t o1 )&rnis0'ent.
T0e RT! denied TES%A>s 'otion, &nd
su2se=uent(3 ordered t0e '&n&)er o1 t0e $&nd B&nC o1 t0e P0i(ippines to produ5e
TES%A>s 2&nC st&te'ent 1or t0e )&rnis0'ent o1 t0e 5overed &'ount.

D&5ed Fit0 t0ese ru(in)s, TES%A 1i(ed & Petition 1or Certiorari Fit0 t0e
!A to =uestion t0e RT! orders, i'putin) )r&ve &2use o1 dis5retion &'ountin) to
(&5C or eK5ess o1 Lurisdi5tion on t0e tri&( 5ourt 1or issuin) & Frit o1 pre(i'in&r3
&tt&50'ent &)&inst TES%A>s pu2(i5 1unds.

T0e !A set &side t0e RT!>s orders &1ter 1indin) t0&t: 6&7 TES%A>s 1unds
&re pu2(i5 in n&ture &nd, t0ere1ore, eKe'pt 1ro' )&rnis0'entE &nd 627 TES%A>s
pur50&se o1 t0e P4! 5&rds F&s & ne5ess&r3 in5ident o1 its )overn'ent&( 1un5tionE
5onse=uent(3, it ru(ed t0&t t0ere F&s no (e)&( 2&sis 1or t0e issu&n5e o1 & Frit o1
pre(i'in&r3 &tt&50'entB)&rnis0'ent.
T0e !A su2se=uent(3 denied PR4I>s
'otion 1or re5onsider&tionE
0en5e, t0e present petition.


T0e petition su2'its to t0is !ourt t0e sin)(e issue o1 F0et0er or not t0e Frit
o1 &tt&50'ent &)&inst TES%A &nd its 1unds, to 5over PR4I>s 5(&i' &)&inst
TES%A, is v&(id. T0e issue invo(ves & pure =uestion o1 (&F &nd re=uires us to
deter'ine F0et0er t0e !A F&s 5orre5t in ru(in) t0&t t0e RT! )r&ve(3 &2used its
dis5retion in issuin) & Frit o1 &tt&50'ent &)&inst TES%A.

PR4I &r)ues t0&t t0e !A s0ou(d 0&ve dis'issed TES%A>s petition
1or certiorari &s t0e RT! did not 5o''it &n3 )r&ve &2use o1 dis5retion F0en it
issued t0e rders d&ted *u(3 9,, +--9 &nd Au)ust +@, +--9. A55ordin) to PR4I,
t0e RT! 5orre5t(3 1ound t0&t F0en TES%A entered into & pure(3 5o''er5i&(
5ontr&5t Fit0 PR4I, TES%A Fent to t0e (eve( o1 &n ordin&r3 priv&te 5itiHen &nd
5ou(d no (on)er use t0e de1ense o1 st&te i''unit3 1ro' suit. PR4I 1urt0er
5ontends t0&t it 0&s &((e)ed su11i5ient u(ti'&te 1&5ts in t0e &11id&vit it su2'itted to
support its &pp(i5&tion 1or & Frit o1 pre(i'in&r3 &tt&50'ent. $&st(3, PR4I
'&int&ins t0&t su11i5ient 2&sis eKisted 1or t0e RT!>s )r&nt o1 t0e Frit o1 pre(i'in&r3
&tt&50'ent, sin5e TES%A 1r&udu(ent(3 'is&pp(ied or e'2eHH(ed t0e 'one3
e&r'&rCed 1or t0e p&3'ent o1 t0e 5ontr&5ted supp(ies &nd servi5es, &s eviden5ed 23
t0e !erti1i5&tion &s to Av&i(&2i(it3 o1 Dunds.

TES%A 5(&i's t0&t it entered t0e !ontr&5t A)ree'ent &nd Addendu' in t0e
per1or'&n5e o1 its )overn'ent&( 1un5tion to deve(op &nd est&2(is0 & n&tion&(
s3ste' o1 sCi((s st&nd&rdiH&tion, testin), &nd 5erti1i5&tionE in t0e per1or'&n5e o1
t0is )overn'ent&( 1un5tion, TES%A is i''une 1ro' suit. Even &ssu'in) t0&t it
0&d i'p(ied(3 5onsented to 2e sued 23 enterin) into & 5ontr&5t Fit0 PR4I,
TES%A posits t0&t t0e RT! sti(( did not 0&ve t0e poFer to )&rnis0 or &tt&50 its
1unds sin5e t0ese &re pu2(i5 1unds. $&st(3, TES%A points out t0&t PR4I 1&i(ed to
5o'p(3 Fit0 t0e e(e'ents 1or t0e v&(id issu&n5e o1 & Frit o1 pre(i'in&r3
&tt&50'ent, &s set 1ort0 in Se5tion 9, Ru(e <; o1 t0e 9..; Ru(es o1 !ivi(


! "#$%, &' ()! CA %#%, ()&( ()! RTC' *+!'(#o$!% o,%!, #$-o.-!% &
/,o'' 0#',!&%#$/ o" ()! .&1 &$% 2+,#'3,+%!$4! &0o+$(#$/ (o &4(#o$ #$ !54!''
o" #(' 2+,#'%#4(#o$. H!$4!, 1! ,!'o.-! (o DENY PROVI' 3!(#(#o$ "o, .&46 o"

TESDA is an instrumentality
of the government undertaking governmental functions.

R.A. No. ;;., 5re&ted t0e Technica! Edcation and S"i!!s De#e!opment
Athorit$ or TESDA under t0e de5(&red Gpo(i53 o1 t0e St&te to provide re(ev&nt,
&55essi2(e, 0i)0 =u&(it3 &nd e11i5ient te50ni5&( edu5&tion &nd sCi((s deve(op'ent in
support o1 t0e deve(op'ent o1 0i)0 =u&(it3 Di(ipino 'idd(e-(eve( '&npoFer
responsive to &nd in &55ord&n5e Fit0 P0i(ippine deve(op'ent )o&(s &nd
TES%A rep(&5ed &nd &2sor2ed t0e N&tion&( M&npoFer &nd Yout0
!oun5i(, t0e Bure&u o1 Te50ni5&( &nd 4o5&tion&( Edu5&tion &nd t0e personne( &nd
1un5tions pert&inin) to te50ni5&(-vo5&tion&( edu5&tion in t0e re)ion&( o11i5es o1 t0e
%ep&rt'ent o1 Edu5&tion, !u(ture &nd Sports &nd t0e &pprenti5es0ip pro)r&' o1
t0e Bure&u o1 $o5&( E'p(o3'ent o1 t0e %$E.
T0us, TES%A is &n
unin5orpor&ted instru'ent&(it3 o1 t0e )overn'ent oper&tin) under its oFn 50&rter.

A'on) ot0ers, TES%A is e'poFered to: &pprove tr&de sCi((s st&nd&rds
&nd tr&de tests &s est&2(is0ed &nd 5ondu5ted 23 priv&te industriesE est&2(is0 &nd
&d'inister & s3ste' o1 &55redit&tion o1 2ot0 pu2(i5 &nd priv&te institutionsE
est&2(is0, deve(op &nd support t0e institutionsO tr&inorsO tr&inin) &ndBor pro)r&'sE
eK&5t re&son&2(e 1ees &nd 50&r)es 1or su50 tests &nd tr&inin)s 5ondu5ted, &nd ret&in
su50 e&rnin)s 1or its oFn use, su2Le5t to )uide(ines pro'u()&ted 23 t0e Aut0orit3E
&ndper1or' su50 ot0er duties &nd 1un5tions ne5ess&r3 to 5&rr3 out t0e provisions o1
t0e A5t, 5onsistent Fit0 t0e purposes o1 t0e 5re&tion o1 TES%A.

/it0in TES%A>s stru5ture, &s provided 23 R.A. No. ;;,., is & SCi((s
St&nd&rds &nd !erti1i5&tion 11i5e eKpress(3 t&sCed, &'on) ot0ers, to deve(op &nd
est&2(is0 & n&tion&( s3ste' o1 sCi((s st&nd&rdiH&tion, testin) &nd 5erti1i5&tion in t0e
5ountr3E &nd to 5ondu5t rese&r50 &nd deve(op'ent on v&rious o55up&tion&( &re&s in
order to re5o''end po(i5ies, ru(es &nd re)u(&tions 1or e11e5tive &nd e11i5ient sCi((s
st&nd&rdiH&tion, testin) &nd 5erti1i5&tion s3ste' in t0e 5ountr3.
T0e (&F (iCeFise
'&nd&tes t0&t G8T:0ere s0&(( 2e n&tion&( o55up&tion&( sCi((s st&nd&rds to 2e
est&2(is0ed 23 TES%A-&55redited industr3 5o''ittees. T0e TES%A s0&(( deve(op
&nd i'p(e'ent & 5erti1i5&tion &nd &55redit&tion pro)r&' in F0i50 priv&te )roups
&nd tr&de &sso5i&tions &re &55redited to 5ondu5t &pproved tr&de tests, &nd t0e (o5&(
)overn'ent units to pro'ote su50 tr&de testin) &5tivities in t0eir respe5tive &re&s in
&55ord&n5e Fit0 t0e )uide(ines to 2e set 23 t0e TES%A. T0e Se5ret&r3 o1 $&2or
&nd E'p(o3'ent s0&(( deter'ine t0e o55up&tion&( tr&des 1or '&nd&tor3
5erti1i5&tion. A!! certi%icates re!ating to the nationa! trade s"i!!s testing and
certi%ication s$stem sha!! &e issed &$ the TESDA throgh its Secretariat.I

A(( t0ese 'e&sures &re undert&Cen pursu&nt to t0e 5onstitution&( 5o''&nd
t0&t G8T:0e St&te &11ir's (&2or &s & pri'&r3 so5i&( e5ono'i5 1or5e,I &nd s0&((
Gprote5t t0e ri)0ts o1 ForCers &nd pro'ote t0eir Fe(1&reIE
t0&t G8T:0e St&te s0&((
prote5t &nd pro'ote t0e ri)0t o1 &(( 5itiHens to =u&(it3 edu5&tion &t &(( (eve(s, &nd
s0&(( t&Ce &ppropri&te steps to '&Ce su50 edu5&tion &55essi2(e to &((IE
in order
Gto &11ord prote5tion to (&2orI &nd Gpro'ote 1u(( e'p(o3'ent &nd e=u&(it3 o1
e'p(o3'ent opportunities 1or &((.I

Under t0ese ter's, 2ot0 5onstitution&( &nd st&tutor3, Fe do not 2e(ieve
t0&t t0e ro(e &nd st&tus o1 TES%A 5&n serious(3 2e 5ontested: it is &n
unin5orpor&ted instru'ent&(it3 o1 t0e )overn'ent, dire5t(3 &tt&50ed to t0e %$E
t0rou)0 t0e p&rti5ip&tion o1 t0e Se5ret&r3 o1 $&2or &s its !0&ir'&n, 1or t0e
per1or'&n5e o1 )overn'ent&( 1un5tions J i.e., t0e 0&nd(in) o1 1or'&( &nd non-
1or'&( edu5&tion &nd tr&inin), &nd sCi((s deve(op'ent. As &n unin5orpor&ted
instru'ent&(it3 oper&tin) under & spe5i1i5 50&rter, it is e=uipped Fit0 2ot0 eKpress
&nd i'p(ied poFers,
&nd &(( St&te i''unities 1u((3 &pp(3 to it.

TESDA, as an agency of the State, cannot be sued without its consent.

T0e ru(e t0&t & st&te '&3 not 2e sued Fit0out its 5onsent is e'2odied in
Se5tion ?, Arti5(e P4I o1 t0e 9.A; !onstitution &nd 0&s 2een &n est&2(is0ed
prin5ip(e t0&t &nted&tes t0is !onstitution.
It is &s Fe(( & univers&((3 re5o)niHed
prin5ip(e o1 intern&tion&( (&F t0&t eKe'pts & st&te &nd its or)&ns 1ro' t0e
Lurisdi5tion o1 &not0er st&te.
T0e prin5ip(e is 2&sed on t0e ver3 essen5e o1
soverei)nt3, &nd on t0e pr&5ti5&( )round t0&t t0ere 5&n 2e no (e)&( ri)0t &s &)&inst
t0e &ut0orit3 t0&t '&Ces t0e (&F on F0i50 t0e ri)0t depends.
It &(so rests on
re&sons o1 pu2(i5 po(i53 Q t0&t pu2(i5 servi5e Fou(d 2e 0indered, &nd t0e pu2(i5
end&n)ered, i1 t0e soverei)n &ut0orit3 5ou(d 2e su2Le5ted to (&F suits &t t0e
inst&n5e o1 ever3 5itiHen &nd, 5onse=uent(3, 5ontro((ed in t0e uses &nd dispositions
o1 t0e 'e&ns re=uired 1or t0e proper &d'inistr&tion o1 t0e )overn'ent.

T0e pros5ri2ed suit t0&t t0e st&te i''unit3 prin5ip(e 5overs t&Ces on
v&rious 1or's, n&'e(3: & suit &)&inst t0e Repu2(i5 23 n&'eE & suit &)&inst &n
unin5orpor&ted )overn'ent &)en53E & suit &)&inst & )overn'ent &)en53 5overed 23
& 50&rter Fit0 respe5t to t0e &)en53>s per1or'&n5e o1 )overn'ent&( 1un5tionsE &nd
& suit t0&t on its 1&5e is &)&inst & )overn'ent o11i5er, 2ut F0ere t0e u(ti'&te
(i&2i(it3 Fi(( 1&(( on t0e )overn'ent. In t0e present 5&se, t0e Frit o1 &tt&50'ent
F&s issued &)&inst & )overn'ent &)en53 5overed 23 its oFn 50&rter. As dis5ussed
&2ove, TES%A per1or's )overn'ent&( 1un5tions, &nd t0e issu&n5e o1 5erti1i5&tions
is & t&sC Fit0in its 1un5tion o1 deve(opin) &nd est&2(is0in) & s3ste' o1 sCi((s
st&nd&rdiH&tion, testin), &nd 5erti1i5&tion in t0e 5ountr3. Dro' t0e perspe5tive o1
t0is 1un5tion, t0e 5ore re&son 1or t0e eKisten5e o1 st&te i''unit3 &pp(ies J i.e., t0e
pu2(i5 po(i53 re&son t0&t t0e per1or'&n5e o1 )overn'ent&( 1un5tion 5&nnot 2e
0indered or de(&3ed 23 suits, nor 5&n t0ese suits 5ontro( t0e use &nd disposition o1
t0e 'e&ns 1or t0e per1or'&n5e o1 )overn'ent&( 1un5tions. In Pro#idence
'ashington Insrance Co. #. Rep&!ic o% the Phi!ippines,
Fe s&id:
8A: 5ontinued &d0eren5e to t0e do5trine o1 non-su&2i(it3 is not to 2e
dep(ored 1or &s &)&inst t0e in5onvenien5e t0&t '&3 2e 5&used priv&te
p&rties, t0e (oss o1 )overn'ent&( e11i5ien53 &nd t0e o2st&5(e to t0e
per1or'&n5e o1 its 'u(ti1&rious 1un5tions &re 1&r )re&ter i1 su50 &
1und&'ent&( prin5ip(e Fere &2&ndoned &nd t0e &v&i(&2i(it3 o1 Ludi5i&(
re'ed3 Fere not t0us restri5ted. /it0 t0e Fe(( CnoFn propensit3 on t0e
p&rt o1 our peop(e to )o to 5ourt, &t t0e (e&st provo5&tion, t0e (oss o1 ti'e
&nd ener)3 re=uired to de1end &)&inst (&F suits, in t0e &2sen5e o1 su50 &
2&si5 prin5ip(e t0&t 5onstitutes su50 &n e11e5tive o2st&5(e, 5ou(d ver3
Fe(( 2e i'&)ined.

PR4I &r)ues t0&t TES%A 5&n 2e sued 2e5&use it 0&s e11e5tive(3 F&ived
its i''unit3 F0en it entered into & 5ontr&5t Fit0 PR4I 1or & 5o''er5i&(
purpose. A55ordin) to PR4I, sin5e t0e purpose o1 its 5ontr&5t Fit0 TES%A is to
provide identi1i5&tion P4! 5&rds Fit0 se5urit3 se&( F0i50 TES%A Fi(( t0ere&1ter
se(( to TES%A tr&inees, TES%A t0ere23 en)&)es in 5o''er5i&( tr&ns&5tions not
in5ident&( to its )overn'ent&( 1un5tions.

TES%A>s response to t0is position is to point out t0&t it is not en)&)ed in
2usiness, &nd t0ere is not0in) in t0e re5ords to s0oF t0&t its pur50&se o1 t0e P4!
5&rds 1ro' PR4I is 1or & 2usiness purpose. /0i(e TES%A &d'its t0&t it Fi((
50&r)e t0e tr&inees Fit0 & 1ee 1or t0e P4! 5&rds, it 5(&i's t0&t t0is 1ee is on(3 to
re5over t0eir 5osts &nd is not intended 1or pro1it.

/e &)ree Fit0 TES%A. As t0e &ppe((&te 5ourt 1ound, t0e P4! 5&rds
pur50&sed 23 TES%A 1ro' PR4I &re 'e&nt to proper(3 identi13 t0e tr&inees F0o
p&ssed TES%A>s N&tion&( SCi((s !erti1i5&tion Pro)r&' J t0e pro)r&' t0&t
i''edi&te(3 serves TES%A>s '&nd&ted 1un5tion o1 deve(opin) &nd est&2(is0in) &
n&tion&( s3ste' o1 sCi((s st&nd&rdiH&tion, testin), &nd 5erti1i5&tion in t0e 5ountr3.
Aside 1ro' t0e eKpress 'ention o1 t0is 1un5tion in R.A. No. ;;.,, t0e det&i(s o1
t0is 1un5tion &re provided under %$E Ad'inistr&tive rder No. 9<;, S. 9..+, &s
supp(e'ented 23 %ep&rt'ent rder Nos. ? t0ru ?-D, S. 9..@ &nd %ep&rt'ent rder
No. 9?, S. 9..@.

Ad'itted(3, t0e 5erti1i5&tion &nd 5(&ssi1i5&tion o1 tr&inees '&3 2e
undert&Cen in F&3s ot0er t0&n t0e issu&n5e o1 identi1i5&tion 5&rds, &s t0e RT!
st&ted in its &ss&i(ed rder.
"oF t0e '&nd&ted 5erti1i5&tion is to 2e done,
0oFever, (ies Fit0in t0e dis5retion o1 TES%A &s &n in5ident o1 its '&nd&ted
1un5tion, &nd is & proper(3 de(e)&ted &ut0orit3 t0&t t0is !ourt 5&nnot in=uire into,
un(ess its eKer5ise is &ttended 23 )r&ve &2use o1 dis5retion.

T0&t TES%A se((s t0e P4! 5&rds to its tr&inees 1or & 1ee does not
50&r&5teriHe t0e tr&ns&5tion &s industri&( or 2usinessE t0e s&(e, eKpress(3 &ut0oriHed
23 t0e TES%A A5t,
5&nnot 2e 5onsidered sep&r&te(3 1ro' TES%A>s )ener&(
)overn'ent&( 1un5tions, &s t0e3 &re undert&Cen in t0e dis50&r)e o1 t0ese 1un5tions.
A(on) t0is (ine o1 re&sonin), Fe 0e(d in (o&i! Phi!ippines #. Cstoms Arrastre

NoF, t0e 1&5t t0&t & non-5orpor&te )overn'ent entit3 per1or's &
1un5tion propriet&r3 in n&ture does not ne5ess&ri(3 resu(t in its 2ein)
su&2(e. I1 s&id non-)overn'ent&( 1un5tion is undert&Cen &s &n in5ident to
its )overn'ent&( 1un5tion, t0ere is no F&iver t0ere23 o1 t0e soverei)n
i''unit3 1ro' suit eKtended to su50 )overn'ent entit3.

TESDAs funds are ublic in character, hence e!emt from attachment or

Even &ssu'in) t0&t TES%A entered into & propriet&r3 5ontr&5t Fit0 PR4I
&nd t0ere23 )&ve its i'p(ied 5onsent to 2e sued, TES%A>s 1unds &re sti(( pu2(i5 in
n&ture &nd, t0us, 5&nnot 2e t0e v&(id su2Le5t o1 & Frit o1 )&rnis0'ent or
&tt&50'ent. Under Se5tion ?? o1 t0e TES%A A5t, t0e TES%A 2ud)et 1or t0e
i'p(e'ent&tion o1 t0e A5t s0&(( 2e in5(uded in t0e &nnu&( Gener&( Appropri&tion
A5tE 0en5e, TES%A 1unds, 2ein) sour5ed 1ro' t0e Tre&sur3, &re 'one3s 2e(on)in)
to t0e )overn'ent, or &n3 o1 its dep&rt'ents, in t0e 0&nds o1 pu2(i5 o11i5i&(s.
spe5i1i5&((3 spoCe o1 t0e (i'its in de&(in) Fit0 t0is 1und in Rep&!ic #.
F0en Fe s&id:

T0is 1und&'ent&( postu(&te under(3in) t0e 9.?< !onstitution
is noF '&de eKp(i5it in t0e revised 50&rter. It is t0erein eKpress(3
provided, RT0e St&te '&3 not 2e sued Fit0out its 5onsent.> A 5oro((&r3,
2ot0 di5t&ted 23 (o)i5 &nd sound sense, 1ro' su50 & 2&si5 5on5ept, is
t0&t 3+7.#4 "+$%' 4&$$o( 7! ()! o72!4( o" /&,$#')0!$( 3,o4!!%#$/'
!-!$ #" ()! 4o$'!$( (o 7! '+!% )&% 7!!$ 3,!-#o+'.8 /,&$(!% &$% ()!
'(&(! .#&7#.#(8 &%2+%/!%. T0us in t0e re5ent 5&se o1 Commissioner o%
P&!ic )igh*a$s #s. San Diego, su50 & Fe((-sett(ed do5trine F&s
rest&ted in t0e opinion o1 *usti5e Tee0&nCee:

T0e univers&( ru(e t0&t F0ere t0e St&te )ives its
5onsent to 2e sued 23 priv&te p&rties eit0er 23
)ener&( or spe5i&( (&F, it '&3 (i'it 5(&i'&ntOs &5tion
Oon(3 up to t0e 5o'p(etion o1 pro5eedin)s &nterior to
t0e st&)e o1 eKe5utionO &nd t0&t t0e poFer o1 t0e
!ourts ends F0en t0e Lud)'ent is rendered, sin5e
)overn'ent 1unds &nd properties '&3 not 2e seiHed
under Frits o1 eKe5ution or )&rnis0'ent to s&tis13
su50 Lud)'ents, is 2&sed on o2vious 5onsider&tions
o1 pu2(i5 po(i53. D#'7+,'!0!$(' o" 3+7.#4 "+$%'
0+'( 7! 4o-!,!% 78 ()! 4o,,!'3o$%#$/
&33,o3,#&(#o$ &' ,!*+#,!% 78 .&1. T)! "+$4(#o$'
&$% 3+7.#4 '!,-#4!' ,!$%!,!% 78 ()! S(&(! 4&$$o(
7! &..o1!% (o 7! 3&,&.89!% o, %#',+3(!% 78 ()!
%#-!,'#o$ o" 3+7.#4 "+$%' ",o0 ()!#, .!/#(#0&(!
&$% '3!4#"#4 o72!4(', &' &33,o3,#&(!% 78
.&1. 8E'p0&sis supp(ied.:

/e reiter&ted t0is do5trine in Traders Ro$a! Ban" #. Intermediate
Appe!!ate Cort,
F0ere Fe s&id:

T0e NMP!>s i'p(ied 5onsent to 2e sued notFit0st&ndin), t0e
tri&( 5ourt did not 0&ve t0e poFer to )&rnis0 NMP! deposits to &nsFer
1or &n3 eventu&( Lud)'ent &)&inst it. B!#$/ 3+7.#4 "+$%', ()! %!3o'#('
&,! $o( 1#()#$ ()! ,!&4) o" &$8 /&,$#')0!$( o, &((&4)0!$(
3,o4!!%#$/'. 8E'p0&sis supp(ied.:

As pointed out 23 TES%A in its Me'or&ndu',
t0e )&rnis0ed 1unds
5onstitute TES%A>s (i1e2(ood J in )overn'ent p&r(&n5e, its ME
J F0ose
Fit00o(din) #ia & Frit o1 &tt&50'ent, even on & te'por&r3 2&sis, Fou(d p&r&(3He
TES%A>s 1un5tions &nd servi5es. As Fe((, t0ese 1unds &(so in5(ude TES%A>s
Person&( Servi5es 1unds 1ro' F0i50 s&(&ries o1 TES%A personne( &re
sour5ed. A)&in &nd 1or o2vious re&sons, t0e re(e&se o1 t0ese 1unds 5&nnot 2e

&'()* has not shown that it is entitled to the writ of attachment.

Even Fit0out t0e 2ene1it o1 &n3 i''unit3 1ro' suit, t0e &tt&50'ent o1
TES%A 1unds s0ou(d not 0&ve 2een )r&nted, &s PR4I 1&i(ed to prove t0&t TES%A
G1r&udu(ent(3 'is&pp(ied or 5onverted 1unds &((o5&ted under t0e !erti1i5&te &s to
Av&i(&2i(it3 o1 Dunds.I Se5tion 9, Ru(e <; o1 t0e Ru(es o1 !ourt sets 1ort0 t0e
)rounds 1or issu&n5e o1 & Frit o1 pre(i'in&r3 &tt&50'ent, &s 1o((oFs:

SE!TIN 9. +ronds pon *hich attachment ma$ isse. J A p(&inti11 or
&n3 proper p&rt3 '&3, &t t0e 5o''en5e'ent o1 t0e &5tion or &t &n3 ti'e
t0ere&1ter, 0&ve t0e propert3 o1 t0e &dverse p&rt3 &tt&50ed &s se5urit3 1or
t0e s&tis1&5tion o1 &n3 Lud)'ent t0&t '&3 2e re5overed in t0e 1o((oFin)

6&7 In &n &5tion 1or re5over3 o1 & spe5i1ied &'ount o1 'one3 or
d&'&)es, ot0er t0&n 'or&( &nd eKe'p(&r3, on & 5&use o1 &5tion &risin)
1ro' (&F, 5ontr&5t, =u&si-5ontr&5t, de(i5t or =u&si-de(i5t &)&inst & p&rt3
F0o is &2out to dep&rt 1ro' t0e P0i(ippines Fit0 intent to de1r&ud 0is

:7; I$ &$ &4(#o$ "o, 0o$!8 o, 3,o3!,(8 !07!99.!% o,
",&+%+.!$(.8 0#'&33.#!% o, 4o$-!,(!% (o )#' +'! 78 & 3+7.#4 o""#4!,,
o, &$ o""#4!, o" & 4o,3o,&(#o$, o, &$ &((o,$!8, "&4(o,, 7,o6!,, &/!$(
o, 4.!,6, #$ ()! 4o+,'! o" )#' !03.o80!$( &' '+4), o, 78 &$8 o()!,
3!,'o$ #$ & "#%+4#&,8 4&3&4#(8, o, "o, & 1#.."+. -#o.&(#o$ o" %+(8<

657 In &n &5tion to re5over t0e possession o1 propert3 unLust(3 or
1r&udu(ent(3 t&Cen, det&ined or 5onverted, F0en t0e propert3 or &n3 p&rt
t0ereo1, 0&s 2een 5on5e&(ed, re'oved or disposed o1 to prevent its 2ein)
1ound or t&Cen 23 t0e &pp(i5&nt or &n &ut0oriHed personE

:%; I$ &$ &4(#o$ &/&#$'( & 3&,(8 1)o )&' 7!!$ /+#.(8 o" ",&+%
#$ 4o$(,&4(#$/ ()! %!7( o, #$4+,,#$/ ()! o7.#/&(#o$ +3o$ 1)#4) ()!
&4(#o$ #' 7,o+/)(, o, #$ 4o$4!&.#$/ o, %#'3o'#$/ o" ()! 3,o3!,(8 "o,
()! (&6#$/, %!(!$(#o$ o, 4o$-!,'#o$ o" 1)#4) ()! &4(#o$ #' 7,o+/)(<

6e7 In &n &5tion &)&inst & p&rt3 F0o 0&s re'oved or disposed o1
0is propert3, or is &2out to do so, Fit0 intent to de1r&ud 0is 5reditorsE

617 In &n &5tion &)&inst & p&rt3 F0o does not reside &nd is not
1ound in t0e P0i(ippines, or on F0o' su''ons '&3 2e served 23
pu2(i5&tion. 8E'p0&sis supp(ied.:

*urispruden5e te&50es us t0&t t0e ru(e on t0e issu&n5e o1 & Frit o1
&tt&50'ent 'ust 2e 5onstrued stri5t(3 in 1&vor o1 t0e de1end&nt. Att&50'ent, &
0&rs0 re'ed3, 'ust 2e issued on(3 on 5on5rete &nd spe5i1i5 )rounds &nd not on
)ener&( &ver'ents 'ere(3 =uotin) t0e Fords o1 t0e pertinent ru(es.
T0us, t0e
&pp(i5&nt>s &11id&vit 'ust 5ont&in st&te'ents 5(e&r(3 s0oFin) t0&t t0e )round re(ied
upon 1or t0e &tt&50'ent eKists.

S!4(#o$ 1:7;, R+.! 5= o" ()! R+.!' o" Co+,(, t0&t PR4I re(ied upon,
&pp(ies on(3 F0ere 'one3 or propert3 0&s 2een e'2eHH(ed or 5onverted 23 & pu2(i5
o11i5er, &n o11i5er o1 & 5orpor&tion, or so'e ot0er person F0o tooC &dv&nt&)e o1 0is
1idu5i&r3 position or F0o Fi((1u((3 vio(&ted 0is dut3.

PR4I, in t0is 5&se, never entrusted &n3 'one3 or propert3 to TES%A.
/0i(e t0e !ontr&5t A)ree'ent is supported 23 & !erti1i5&te &s to Av&i(&2i(it3 o1
Dunds 6Certi%icate7 issued 23 t0e !0ie1 o1 TES%A>s A55ountin) %ivision, t0is
!erti1i5&te does not &uto'&ti5&((3 5on1er oFners0ip over t0e 1unds to
PR4I. A2sent &n3 &5tu&( dis2urse'ent, t0ese 1unds 1or' p&rt o1 TES%A>s pu2(i5
1unds, &nd TES%A>s 1&i(ure to p&3 PR4I t0e &'ount st&ted in t0e !erti1i5&te
5&nnot 2e 5onstrued &s &n &5t o1 1r&udu(ent 'is&pp(i5&tion or e'2eHH(e'ent. In
t0is re)&rd, Se5tion A, o1 Presidenti&( %e5ree No. 9@@< 6T0e A55ountin) !ode7
Se5tion A,. Certi%icate sho*ing appropriation to meet contract. J
EK5ept in & 5&se o1 & 5ontr&5t 1or person&( servi5e, 1or supp(ies 1or
5urrent 5onsu'ption or to 2e 5&rried in sto5C not eK5eedin) t0e
esti'&ted 5onsu'ption 1or t0ree 'ont0s, or 2&nCin) tr&ns&5tions o1
)overn'ent-oFned or 5ontro((ed 2&nCs, no 5ontr&5t invo(vin) t0e
eKpenditure o1 pu2(i5 1unds 23 &n3 )overn'ent &)en53 s0&(( 2e entered
into or &ut0oriHed un(ess t0e proper &55ountin) o11i5i&( or t0e &)en53
5on5erned s0&(( 0&ve 5erti1ied to t0e o11i5er enterin) into t0e o2(i)&tion
t0&t 1unds 0&ve 2een du(3 &ppropri&ted 1or t0e purpose &nd t0&t t0e
&'ount ne5ess&r3 to 5over t0e proposed 5ontr&5t 1or t0e 5urrent 1is5&(
3e&r is &v&i(&2(e 1or eKpenditure on &55ount t0ereo1, su2Le5t to
veri1i5&tion 23 t0e &uditor 5on5erned. T0e 5erti1i5&tion si)ned 23 t0e
proper &55ountin) o11i5i&( &nd t0e &uditor F0o veri1ied it, s0&(( 2e
&tt&50ed to &nd 2e5o'e &n inte)r&( p&rt o1 t0e proposed 5ontr&5t, &nd ()!
'+0 'o 4!,(#"#!% ')&.. $o( ()!,!&"(!, 7! &-&#.&7.! "o, !53!$%#(+,! "o,
&$8 o()!, 3+,3o'! +$(#. ()! o7.#/&(#o$ o" ()! /o-!,$0!$( &/!$48
4o$4!,$!% +$%!, ()! 4o$(,&4( #' "+..8 !5(#$/+#')!%. 8E'p0&sis

B3 (&F, t0ere1ore, t0e &'ount st&ted in t0e !erti1i5&tion s0ou(d 2e int&5t &nd
re'&ins devoted to its purpose sin5e its ori)in&( &ppropri&tion. PR4I 5&n re2ut
t0e presu'ption t0&t ne5ess&ri(3 &rises 1ro' t0e 5ited provision on(3 23 eviden5e to
t0e 5ontr&r3. No su50 eviden5e 0&s 2een &ddu5ed.

S!4(#o$ 1 :%;, R+.! 5= o" ()! R+.!' o" Co+,( &pp(ies F0ere & p&rt3 is
)ui(t3 o1 1r&ud in 5ontr&5tin) & de2t or in5urrin) &n o2(i)&tion, or in 5on5e&(in) or
disposin) o1 t0e propert3 1or t0e t&Cin), detention or 5onversion o1 F0i50 t0e
&5tion is 2rou)0t. In 'ee #. Tan"iansee,
Fe 0e(d t0&t 1or & Frit o1 &tt&50'ent to
issue under t0is Ru(e, t0e &pp(i5&nt 'ust su11i5ient(3 s0oF t0e 1&5tu&(
5ir5u'st&n5es o1 t0e &((e)ed 1r&ud 2e5&use 1r&udu(ent intent 5&nnot 2e in1erred
1ro' t0e de2tor>s 'ere non-p&3'ent o1 t0e de2t or 1&i(ure to 5o'p(3 Fit0 0is
o2(i)&tion. T0e &11id&vit, 2ein) t0e 1ound&tion o1 t0e Frit, 'ust 5ont&in p&rti5u(&rs
s0oFin) 0oF t0e i'puted 1r&ud F&s 5o''itted 1or t0e 5ourt to de5ide F0et0er or
not to issue t0e Frit. To reiter&te, & Frit o1 &tt&50'ent 5&n on(3 2e )r&nted on
5on5rete &nd spe5i1i5 )rounds &nd not on )ener&( &ver'ents 'ere(3 =uotin) t0e
Fords o1 t0e ru(es.

T0e &11id&vit 1i(ed 23 PR4I t0rou)0 E('er R&'iro, its President &nd
!0ie1 EKe5utive 11i5er, on(3 5ont&ined & )ener&( &((e)&tion t0&t TES%A 0&d
1r&udu(ent 'is&pp(ied or 5onverted t0e &'ount o1 P9-,.;<,---.-- t0&t F&s &((otted
to it. !(e&r(3, Fe 5&nnot in1er &n3 1indin) o1 1r&ud 1ro' PR4I>s v&)ue &ssertion,
&nd t0e !A 5orre5t(3 ru(ed t0&t t0e (oFer 5ourt &5ted Fit0 )r&ve &2use o1 dis5retion
in )r&ntin) t0e Frit o1 &tt&50'ent despite F&nt o1 &n3 v&(id )round 1or its issu&n5e.

Dor &(( t0ese re&sons, Fe support t0e &ppe((&te 5ourt>s 5on5(usion t0&t no
v&(id )round eKists to support t0e )r&nt o1 t0e Frit o1 &tt&50'ent &)&inst
TES%A. T0e !A>s &nnu('ent &nd settin) &side o1 t0e rders o1 t0e RT! Fere
t0ere1ore 1u((3 in order.

HEREFORE, pre'ises 5onsidered, Fe 0ere23 DENY t0e petition 1i(ed
23 petitioner Pro1ession&( 4ideo, In5., &nd AFFIRM t0e !ourt o1 Appe&(s>
%e5ision d&ted *u(3 +?, +--+, &nd Reso(ution o1 Septe'2er +;, +--+, in !A-G.R.
SP No. ,;<... !osts &)&inst t0e petitioner.



- versus -

G.R. No. 15>?@4


TINGA, &nd
4E$AS!, *R., JJ.


Au)ust 9;, +--;

K - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
- K



The Case

This is a petition for review
of the Decision
12 November 2001 and the Resolution dated !pril 2002 of
the "ourt of !ppeals in "!-#$R$ %& No$ '0()*$

The Facts

+n 1 ,ul- 1**). "entur- "annin/ "orporation
0petitioner1 hired #loria "$ &alad 0&alad1 as 23sh cleaner4 at
petitioner5s tuna and sardines factor-$ &alad si/ned on 1)
,ul- 1**) an apprenticeship a/reement
with petitioner$
&alad received an apprentice allowance of &1(6$) dail-$ +n
2 ,ul- 1**). petitioner submitted its apprenticeship
pro/ram for approval to the Technical 7ducation and %8ills
Development !uthorit- 0T7%D!1 of the Department of 9abor
and 7mplo-ment 0D+971$ +n 2' %eptember 1**). the
T7%D! approved petitioner5s apprenticeship pro/ram$

!ccordin/ to petitioner. a performance evaluation
was conducted on 1 November 1**). where petitioner
/ave &alad a ratin/ of N$;$ or 2needs improvement4 since
she scored onl- 2)$)< based on a 100< performance
indicator$ =urthermore. accordin/ to the performance
evaluation. &alad incurred numerous tardiness and
absences$ !s a conse>uence. petitioner issued a
termination notice
dated 22 November 1**) to &alad.
informin/ her of her termination e?ective at the close of
business hours of 26 November 1**)$

&alad then 3led a complaint for ille/al dismissal.
underpa-ment of wa/es. and non-pa-ment of pro-rated
month pa- for the -ear 1**)$

+n 2 =ebruar- 1***. the 9abor !rbiter dismissed the
complaint for lac8 of merit but ordered petitioner to pa-
&alad her last salar- and her pro-rated 1(
month pa-$ The
dispositive portion of the 9abor !rbiter5s decision reads@

AB7R7=+R7. premises considered. Cud/ment is
hereb- rendered declarin/ that the complaint for ille/al
dismissal 3led b- the complainant a/ainst the
respondents in the above-entitled case should be. as it is
hereb- D;%D;%%7D for lac8 of merit$ Bowever. the
respondents are hereb- ordered to pa- the complainant
the amount of +N7 TB+E%!ND %;F BENDR7D TB;RTG-
TA+ &7%+% 0&1.'(2$001. representin/ her last salar- and
the amount of %7H7N TB+E%!ND TA+ BENDR7D
TA7NTG 7;#BT 0&).226$001 &7%+% representin/ her
prorated 1(
month pa-$

!ll other issues are li8ewise dismissed$

%+ +RD7R7D$

+n appeal. the National 9abor Relations "ommission
0N9R"1 aIrmed with modi3cation the 9abor !rbiter5s
decision. thus@

AB7R7=+R7. premises considered. the decision of
the !rbiter dated 2 =ebruar- 1*** is hereb- D+D;=;7D in
that. in addition. respondents are ordered to pa-
complainant5s bac8wa/es for two 021 months in the
amount of &).1)'$00 0&1(6$) x 2' x 2 mos$1$ !ll other
dispositions of the !rbiter as appearin/ in the dispositive
portion of his decision are !==;RD7D$

%+ +RD7R7D$

Epon denial of &alad5s motion for reconsideration.
&alad 3led a special civil action for certiorari with the "ourt
of !ppeals$ +n 12 November 2001. the "ourt of !ppeals
rendered a decision. the dispositive portion of which reads@

AB7R7=+R7. in view of the fore/oin/. the
>uestioned decision of the N9R" is hereb- %7T !%;D7 and
a new one entered. to wit@

0a1 3ndin/ the dismissal of petitioner to be ille/alJ
0b1 orderin/ private respondent to pa- petitioner
her underpa-ment in wa/esJ
0c1 orderin/ private respondent to reinstate
petitioner to her former position without loss of
seniorit- ri/hts and to pa- her full bac8wa/es
computed from the time compensation was
withheld from her up to the time of her
0d1 orderin/ private respondent to pa- petitioner
attorne-5s fees e>uivalent to ten 010<1 per cent
of the monetar- award hereinJ and
0e1 orderin/ private respondent to pa- the costs
of the suit$

%+ +RD7R7D$

The Ruling of the Court of Appeals

The "ourt of !ppeals held that the apprenticeship
a/reement which &alad si/ned was not valid and bindin/
because it was executed more than two months before the
T7%D! approved petitioner5s apprenticeship pro/ram$ The
"ourt of !ppeals cited Nitto Enterprises v. National Labor
Relations Commission.
where it was held that prior
approval b- the D+97 of the proposed apprenticeship
pro/ram is a condition sine qua non before an
apprenticeship a/reement can be validl- entered into$

The "ourt of !ppeals also held that petitioner ille/all-
dismissed &alad$ The "ourt of !ppeals ruled that petitioner
failed to show that &alad was properl- apprised of the
re>uired standard of performance$ The "ourt of !ppeals
li8ewise held that &alad was not a?orded due process
because petitioner did not compl- with the twin
re>uirements of notice and hearin/$

The Issues

&etitioner raises the followin/ issues@

1$ AB7TB7R TB7 "+ERT += !&&7!9% "+DD;TT7D
R7H7R%;K97 7RR+R ;N B+9D;N# TB!T &R;H!T7
R7%&+ND7NT A!% N+T !N !&&R7NT;"7J and

2$ AB7TB7R TB7 "+ERT += !&&7!9% "+DD;TT7D
R7H7R%;K97 7RR+R ;N B+9D;N# TB!T
&7T;T;+N7R B!D N+T !D7LE!T79G &R+H7N TB7
7F;%T7N"7 += ! H!9;D "!E%7 ;N T7RD;N!T;N#
TB7 %7RH;"7 += &R;H!T7 R7%&+ND7NT$

The Ruling of the Court

The petition is without merit$

Registration and Approval by the TESDA of
Apprenticeship Program Required efore !iring of

The 9abor "ode de3nes an apprentice as a wor8er
who is covered b- a written apprenticeship a/reement with
an emplo-er$
+ne of the obCectives of Title ;; 0Trainin/
and 7mplo-ment of %pecial Aor8ers1 of the 9abor "ode is to
establish apprenticeship standards for the protection of
;n line with this obCective. !rticles '0 and '1
of the 9abor "ode provide@

!RT$ '0$ Employment of apprentices$ M Onl e!ploers
in the highl technical in"ustries !a e!plo
apprentices an" onl in apprenticea#le
occupations appro$e" # the %inister of &a#or an"
E!plo!ent$ 07mphasis supplied1

!RT$ '1$ Contents of apprenticeship
agreements$ M !pprenticeship a/reements. includin/ the
wa/e rates of apprentices. shall conform to the rules
issued b- the Dinister of 9abor and 7mplo-ment$ The
period of apprenticeship shall not exceed six
months$ Apprenticeship agree!ents pro$i"ing for
'age rates #elo' the legal !ini!u! 'age, 'hich
in no case shall start #elo' () percent of the
applica#le !ini!u! 'age, !a #e entere" into
onl in accor"ance 'ith apprenticeship progra!s
"ul appro$e" # the %inister of &a#or an"
E!plo!ent$ The Dinistr- shall develop standard model
pro/rams of apprenticeship$ 07mphasis supplied1

;n Nitto Enterprises v. National Labor Relations
the "ourt cited !rticle '1 of the 9abor
"ode and held that an apprenticeship pro/ram should 3rst
be approved b- the D+97 before an apprentice ma- be
hired. otherwise the person hired will be considered a
re/ular emplo-ee$ The "ourt held@

In t0e 5&se &t 2en50, t0e &pprenti5es0ip &)ree'ent
2etFeen petitioner &nd priv&te respondent F&s eKe5uted on M&3
+A, 9..- &((e)ed(3 e'p(o3in) t0e (&tter &s &n &pprenti5e in t0e
tr&de o1 G5&re '&CerB'o(der.I n t0e s&'e d&te, &n
&pprenti5es0ip pro)r&' F&s prep&red 23 petitioner &nd su2'itted
to t0e %ep&rt'ent o1 $&2or &nd E'p(o3'ent. "oFever, t0e
&pprenti5es0ip &)ree'ent F&s 1i(ed on(3 on *une ;, 9..-.
NotFit0st&ndin) t0e &2sen5e o1 &pprov&( 23 t0e %ep&rt'ent o1
$&2or &nd E'p(o3'ent, t0e &pprenti5es0ip &)ree'ent F&s
en1or5ed t0e d&3 it F&s si)ned.
B&sed on t0e eviden5e 2e1ore us, petitioner did not
5o'p(3 Fit0 t0e re=uire'ents o1 t0e (&F. I( #' 0&$%&(!% ()&(
&33,!$(#4!')#3 &/,!!0!$(' !$(!,!% #$(o 78 ()! !03.o8!, &$%
&33,!$(#4! ')&.. 7! !$(!,!% o$.8 #$ &44o,%&$4! 1#() ()!
&33,!$(#4!')#3 3,o/,&0 %+.8 &33,o-!% 78 ()! M#$#'(!, o"
L&7o, &$% E03.o80!$(.
P,#o, &33,o-&. 78 ()! D!3&,(0!$( o" L&7o, &$%
E03.o80!$( o" ()! 3,o3o'!% &33,!$(#4!')#3 3,o/,&0 #',
()!,!"o,!, & 4o$%#(#o$ sine +ua non 7!"o,! &$ &33,!$(#4!')#3
&/,!!0!$( 4&$ 7! -&.#%.8 !$(!,!% #$(o.
T0e &5t o1 1i(in) t0e proposed &pprenti5es0ip pro)r&'
Fit0 t0e %ep&rt'ent o1 $&2or &nd E'p(o3'ent is & pre(i'in&r3
step toF&rds its 1in&( &pprov&( &nd does not inst&nt&neous(3 )ive
rise to &n e'p(o3er-&pprenti5e re(&tions0ip.
Arti5(e <; o1 t0e $&2or !ode provides t0&t t0e St&te &i's
to Gest&2(is0 & n&tion&( &pprenti5es0ip pro)r&' t0rou)0 t0e
p&rti5ip&tion o1 e'p(o3ers, ForCers &nd )overn'ent &nd non-
)overn'ent &)en5iesI &nd Gto est&2(is0 &pprenti5es0ip st&nd&rds
1or t0e prote5tion o1 &pprenti5es.I To tr&ns(&te su50 o2Le5tives
into eKisten5e, prior &pprov&( o1 t0e %$E to &n3 &pprenti5es0ip
pro)r&' 0&s to 2e se5ured &s & 5ondition sine ,a non 2e1ore &n3
su50 &pprenti5es0ip &)ree'ent 5&n 2e 1u((3 en1or5ed. T0e ro(e o1
t0e %$E in &pprenti5es0ip pro)r&'s &nd &)ree'ents 5&nnot 2e
"en5e, sin5e t0e &pprenti5es0ip &)ree'ent 2etFeen
petitioner &nd priv&te respondent 0&s no 1or5e &nd e11e5t in t0e
&2sen5e o1 & v&(id &pprenti5es0ip pro)r&' du(3 &pproved 23 t0e
%$E, priv&te respondent>s &ssertion t0&t 0e F&s 0ired not &s &n
&pprenti5e 2ut &s & de(iver3 2o3 6GC&r)&dorI or Gp&0in&nteI7
deserves 5reden5e. "e s0ou(d ri)0t(3 2e 5onsidered &s & re)u(&r
e'p(o3ee o1 petitioner &s de1ined 23 Arti5(e +A- o1 t0e $&2or
!ode K K K. 6E'p0&sis supp(ied7

Republic !ct No$ ))*'
0R! ))*'1. which created
the T7%D!. has transferred the authorit- over
apprenticeship pro/rams from the Kureau of 9ocal
7mplo-ment of the D+97 to the T7%D!$
R! ))*'
emphasiNes T7%D!5s approval of the apprenticeship
pro/ram as a pre-re>uisite for the hirin/ of apprentices$
%uch intent is clear under %ection : of R! ))*'@

%7"$ :$ Defnition of Terms$ M !s used in this !ct@

x x x

C1 *Apprenticeship+ trainin/ within emplo-ment with
compulsor- related theoretical instructions involvin/
a contract #et'een an apprentice an" an e!ploer
on an appro$e" apprenticea#le occupationJ

81 *Apprentice+ is a person under/oin/ training for an
appro$e" apprenticea#le occupation durin/ an
established period assured b- an apprenticeship

l1 *Apprentice Agree!ent+ is a contract wherein a
prospective emplo-er binds himself to train the
apprentice who in turn accepts the terms of training for
a recogni,e" apprenticea#le occupation
e!phasi,ing the rights, "uties an" responsi#ilities
of each partJ

m1 *Apprenticea#le Occupation4 is an occupation
oIciall- endorsed b- a tripartite bod- and appro$e" for
apprenticeship # the Authorit -TESDA.J 07mphasis

;n this case. the apprenticeship a/reement was
entered into between the parties before petitioner 3led its
apprenticeship pro/ram with the T7%D! for approval$
&etitioner and &alad executed the apprenticeship a/reement
on 1) ,ul- 1**) wherein it was stated that the trainin/
would start on 1) ,ul- 1**) and would end approximatel- in
December 1**)$
+n 2 ,ul- 1**). petitioner submitted
for approval its apprenticeship pro/ram. which the T7%D!
subse>uentl- approved on 2' %eptember 1**)$
the apprenticeship a/reement was enforced even before
the T7%D! approved petitioner5s apprenticeship pro/ram$
Thus. the apprenticeship a/reement is void because it
lac8ed prior approval from the T7%D!$

The T7%D!5s approval of the emplo-er5s
apprenticeship pro/ram is re>uired before the emplo-er is
allowed to hire apprentices$ &rior approval from the T7%D!
is necessar- to ensure that onl- emplo-ers in the hi/hl-
technical industries ma- emplo- apprentices and onl- in
apprenticeable occupations$
Thus. under R! ))*'.
emplo-ers can onl- hire apprentices for apprenticeable
occupations which must be oIciall- endorsed b- a
tripartite bod- and approved for apprenticeship b- the
T7%D!$ This is to ensure the protection of apprentices and
to obviate possible abuses b- prospective emplo-ers who
ma- want to ta8e advanta/e of the lower wa/e rates for
apprentices and circumvent the ri/ht of the emplo-ees to
be secure in their emplo-ment$

The re>uisite T7%D! approval of the apprenticeship
pro/ram prior to the hirin/ of apprentices was further
emphasiNed b- the D+97 with the issuance of Department
+rder No$ '6-0: on 16 !u/ust 200:$ Department +rder No$
'6-0:. which provides the /uidelines in the implementation
of the !pprenticeship and 7mplo-ment &ro/ram of the
/overnment. speci3call- states that no enterprise shall
#e allo'e" to hire apprentices unless its
apprenticeship progra! is registere" an" appro$e"

%ince &alad is not considered an apprentice because
the apprenticeship a/reement was enforced before the
T7%D!5s approval of petitioner5s apprenticeship pro/ram.
&alad is deemed a re/ular emplo-ee performin/ the Cob of a
23sh cleaner$4 "learl-. the Cob of a 23sh cleaner4 is
necessar- in petitioner5s business as a tuna and sardines
factor-$ Ender !rticle 260
of the 9abor "ode. an
emplo-ment is deemed re/ular where the emplo-ee has
been en/a/ed to perform activities which are usuall-
necessar- or desirable in the usual business or trade of the

"llegal Termination of Palad

Ae shall now resolve whether petitioner ille/all-
dismissed &alad$

Ender !rticle 2)*
of the 9abor "ode. an emplo-er
ma- terminate the services of an emplo-ee for Cust
or for authoriNed causes$
under !rticle 2))0b1
of the 9abor "ode. the emplo-er
must send the emplo-ee who is about to be terminated. a
written notice statin/ the causes for termination and must
/ive the emplo-ee the opportunit- to be heard and to
defend himself$ Thus. to constitute valid dismissal from
emplo-ment. two re>uisites must concur@ 011 the dismissal
must be for a Cust or authoriNed causeJ and 021 the
emplo-ee must be a?orded an opportunit- to be heard and
to defend himself$

In t0is 5&se, t0e $&2or Ar2iter 0e(d t0&t petitioner ter'in&ted P&(&d
1or 0&2itu&( &2senteeis' &nd poor e11i5ien53 o1 per1or'&n5e. Under
Se5tion +<, Ru(e 4I, BooC II o1 t0e I'p(e'entin) Ru(es o1 t0e $&2or !ode,
0&2itu&( &2senteeis' &nd poor e11i5ien53 o1 per1or'&n5e &re &'on) t0e
v&(id 5&uses 1or F0i50 t0e e'p(o3er '&3 ter'in&te t0e &pprenti5es0ip
&)ree'ent &1ter t0e pro2&tion&r3 period.

Bowever. the N9R" reversed the 3ndin/ of the 9abor
!rbiter on the issue of the le/alit- of &alad5s termination@

!s to the validit- of complainant5s dismissal in her
status as an apprentice. suIce to state that the 3ndin/s
of the !rbiter that complainant was dismissed due to
failure to meet the standards is nebulous$ Ahat clearl-
appears is that complainant alread- passed the
probationar- status of the apprenticeship a/reement of
200 hours at the time she was terminated on 26
November 1**) which was alread- the fourth month of
the apprenticeship period of 1000 hours$ !s such. under
the "ode. she can onl- be dismissed for cause. in this
case. for poor eIcienc- of performance on the Cob or in
the classroom for a prolon/ed period despite warnin/s
dul- /iven to the apprentice$

/e note" that no clear an" su0cient
e$i"ence e1ist to 'arrant her "is!issal as an
apprentice "uring the agree" perio"2 3esi"es the
a#sence of an 'ritten 'arnings gi$en to
co!plainant re!in"ing her of *poor perfor!ance,+
respon"ents4 e$i"ence in this respect consiste" of
an in"eciphera#le or unauthenticate" 1ero1 of the
perfor!ance e$aluation allege"l con"ucte"
on co!plainant2 This is of "ou#tful authenticit
an"5or cre"i#ilit, #eing not onl inco!plete in the
sense that appearing thereon is a signature 6not
that of co!plainant7 si"e # si"e 'ith a "ate
in"icate" as *85895:;+2 Fro! the loo<s of it, this
signature is close to an" appertains to the
tpe'ritten position of *Di$ision5Depart!ent
=ea"+, 'hich is #elo' the signature of
co!plainant4s i!!e"iate superior 'ho !a"e the
e$aluation in"icate" as *88>8)>:(2+

The onl conclusion /e can infer is that this
e$aluation 'as !a"e #elate"l, speci?call, after
the ?ling of the case an" "uring the progress
thereof in the Ar#itral le$el, as sho'n that nothing
thereon in"icate that co!plainant 'as noti?e" of
the results2 Its authenticit therefor, is a #ig
@uestion !ar<, an" hence lac<s an
cre"i#ilit2 E$i"ence, to #e a"!issi#le in
a"!inistrati$e procee"ings, !ust at least ha$e a
!o"icu! of authenticit2 This. respondents failed to
compl- with$ !s such. complainant is entitled to the
pa-ment of her wa/es for the remainin/ two 021 months
of her apprenticeship a/reement$
07mphasis supplied1

;ndeed. it appears that the 9abor !rbiter5s conclusion
that petitioner validl- terminated &alad was based mainl-
on the performance evaluation alle/edl- conducted b-
petitioner$ Bowever. &alad alle/es that she had no
8nowled/e of the performance evaluation conducted and
that she was not even informed of the result of the alle/ed
performance evaluation$ &alad also claims she did not
receive a notice of dismissal. nor was she /iven the chance
to explain$ !ccordin/ to petitioner. &alad did not receive the
termination notice because &alad alle/edl- stopped
reportin/ for wor8 after bein/ informed of the result of the

Ender !rticle 22) of the 9abor "ode. the emplo-er
has the burden of provin/ that the termination was for
a valid or authoriNed cause$
&etitioner failed to
substantiate its claim that &alad was terminated for valid
reasons$ ;n fact. the N9R" found that petitioner failed to
prove the authenticit- of the performance evaluation which
petitioner claims to have conducted on &alad. where &alad
received a performance ratin/ of onl- 2)$)<$ &etitioner
merel- relies on the performance evaluation to prove
&alad5s ineIcienc-$ ;t was li8ewise not shown that petitioner
ever apprised &alad of the performance standards set b-
the compan-$ Ahen the alle/ed valid cause for the
termination of emplo-ment is not clearl- proven. as in this
case. the law considers the matter a case of ille/al

=urthermore. &alad was not accorded due process$
7ven if petitioner did conduct a performance evaluation on
&alad. petitioner failed to warn &alad of her alle/ed poor
performance$ ;n fact. &alad denies an- 8nowled/e of the
performance evaluation conducted and of the result
thereof$ &etitioner li8ewise admits that &alad did not
receive the notice of termination
because &alad alle/edl-
stopped reportin/ for wor8$ The records are bereft of
evidence to show that petitioner ever /ave &alad the
opportunit- to explain and defend herself$ "learl-. the two
re>uisites for a valid dismissal are lac8in/ in this case$

/=EREFORE. we AFFIR% the Decision dated 12
November 2001 and the Resolution dated !pril 2002 of
the "ourt of !ppeals in "!-#$R$ %& No$ '0()*$


Republic of the &hilippines
Supre!e Court


andOor RO3ERT C=AN,

"!R&;+ D+R!97%. J. Chairperson

- versus - H;99!R!D!. ,R$. and
%7R7N+. JJ.


F=I% V2 COSTA&ES, Ganuar D9,
A&VIN V2 A&%OITE, and


3RION, J2:

=or resolution is the petition for review
on certiorari
assailin/ the decision
and the resolution
of the
"ourt of !ppeals 0"!1 rendered on November :. 2006 and Darch
2. 200*. respectivel-. in "!-#$R$ %&$ No$ **(:0$

The !ntecedents

The facts are summariNed below$
;n the months of =ebruar- and Darch 200. complainants
!prilito R$ %ebolino. Phim H$ "ostales. !lvin H$ !lmoite. ,oseph %$
%a/un. !/osto D$ QaRo. Domin/o %$ !le/ria. ,r$. Ronie Ramos.
7d/ar Hilla/omeN. Delvin &edre/oNa. Teofanes K$ "hion/. ,r$.
9eonardo 9$ dela "ruN. !rnold !$ Da/alan/. and %aturnino D$
Dabana/ 3led several complaints for ille/al dismissal.
re/ulariNation. underpa-ment. nonpa-ment of wa/es and other
mone- claims. as well as claims for moral and exemplar-
dama/es and attorne-5s fees a/ainst the petitioners !tlanta
;ndustries. ;nc$ 0!tlanta1 and its &resident and "hief +peratin/
+Icer Robert "han$ !tlanta is a domestic corporation en/a/ed in
the manufacture of steel pipes$

The complaints were consolidated and were raSed to 9abor
!rbiter Daniel "aCili/. but were later transferred to 9abor !rbiter
Dominador K$ Dedroso. ,r$

The complainants alle/ed that the- had attained re/ular
status as the- were allowed to wor8 with !tlanta for more than six
0'1 months from the start of a purported apprenticeship
a/reement between them and the compan-$ The- claimed that
the- were ille/all- dismissed when the apprenticeship a/reement

;n defense. !tlanta and "han ar/ued that the wor8ers were
not entitled to re/ulariNation and to their mone- claims because
the- were en/a/ed as apprentices under a /overnment-approved
apprenticeship pro/ram$ The compan- o?ered to hire them as
re/ular emplo-ees in the event vacancies for re/ular positions
occur in the section of the plant where the- had trained$ The- also
claimed that their names did not appear in the list of emplo-ees
0Daster 9ist1
prior to their en/a/ement as apprentices$

+n Da- 2:. 200. dela "ruN. Da/alan/. QaRo and "hion/
executed a "agtali#o$ at "ag%a%alang &aysay before 9abor
!rbiter "aCili/$

The "ompulsor- !rbitration Rulin/s

+n !pril 2:. 200'. 9abor !rbiter Dedroso dismissed the
complaint with respect to dela "ruN. Da/alan/. QaRo and "hion/.
but found the termination of service of the remainin/ nine to be
"onse>uentl-. the arbiter awarded the dismissed wor8ers
bac8wa/es. wa/e di?erentials. holida- pa- and service incentive
leave pa- amountin/ to &1.(6*.0::$) in the a//re/ate$

!tlanta appealed to the National 9abor Relations
"ommission 0NLRC1$ ;n the meantime. or on +ctober 10. 200'.
Ramos. !le/ria. Hilla/omeN. "ostales and !lmoite alle/edl-
entered into a compromise a/reement with !tlanta$
a/reement provided that except for Ramos. !tlanta a/reed to pa-
the wor8ers a speci3ed amount as settlement. and to
ac8nowled/e them at the same time as re/ular emplo-ees$

+n December 2*. 200'.
the N9R" rendered a decision. on
appeal. modif-in/ the rulin/ of the labor arbiter. as follows@ 011
withdrawin/ the ille/al dismissal 3ndin/ with respect to %a/un.
Dabana/. %ebolino and &edre/oNaJ 021 aIrmin/ the dismissal of
the complaints of dela "ruN. QaRo. Da/alan/ and "hion/J 0(1
approvin/ the compromise a/reement entered into b- "ostales.
Ramos. Hilla/omeN. !lmoite and !le/ria. and 0:1 den-in/ all other

%ebolino. "ostales. !lmoite and %a/un moved for the
reconsideration of the decision. but the N9R" denied the motion in
its Darch (0. 200)
resolution$ The four then sou/ht relief from
the "! throu/h a petition for certiorari under Rule ' of the Rules
of "ourt$ The- char/ed that the N9R" committed /rave abuse of
discretion in@ 011 failin/ to reco/niNe their prior emplo-ment
with !tlantaJ 021 declarin/ the second apprenticeship a/reement
validJ 0(1 holdin/ that the dismissal of %a/un. Dabana/. %ebolino
and Delvin &edre/oNa is le/alJ and 0:1 upholdin/ the compromise
a/reement involvin/ "ostales. Ramos. Hilla/omeN. !lmoite and

The "! Decision

The "! /ranted the petition based on the followin/ 3ndin/s@

1$ The respondents were alread- emplo-ees of the
compan- before the- entered into the 3rst and second
apprenticeship a/reements T !lmoite and "ostales were
emplo-ed as earl- as December 200( and. subse>uentl-. entered
into a 3rst apprenticeship a/reement from Da- 1(. 200: to
+ctober 12. 200:J before this 3rst a/reement expired. a second
apprenticeship a/reement. from +ctober *. 200: to Darch 6. 200
was executed$ The same is true with %ebolino and %a/un. who
were emplo-ed b- !tlanta as earl- as Darch (. 200:$ %ebolino
entered into his 3rst apprenticeship a/reement with the compan-
from Darch 20. 200: to !u/ust 1*. 200:. and his second
apprenticeship a/reement from !u/ust 20. 200: to ,anuar- 1*.
200$ %a/un. on the other hand. entered into his 3rst a/reement
from Da- 26. 200: to+ctober 6. 200:. and the second a/reement
from +ctober *. 200: to Darch 6. 200$

2$ The 3rst and second apprenticeship a/reements
were defective as the- were executed in violation of the law and
the rules$
The a/reements did not indicate the trade or
occupation in which the apprentice would be trainedJ neither was
the apprenticeship pro/ram approved b- the Technical 7ducation
and %8ills Development !uthorit- 0T7%D!1$
($ The positions occupied b- the respondents T
machine operator. extruder operator and scaleman T are usuall-
necessar- and desirable in the manufacture of plastic buildin/
materials. the compan-5s main business$ "ostales. !lmoite.
%ebolino and %a/un were. therefore. re/ular emplo-ees whose
dismissals were ille/al for lac8 of a Cust or authoriNed cause and
:$ The compromise a/reement entered into b- "ostales
and !lmoite. to/ether with Ramos. Hilla/omeN and !le/ria. was
not bindin/ on "ostales and !lmoite because the- did not si/n the

The petitioners themselves admitted that "ostales and
!lmoite were initiall- planned to be a part of the compromise
a/reement. but their emplo-ment has been re/ulariNed as earl-
as ,anuar- 11. 200'J hence. the compan- did not pursue their
inclusion in the compromise a/reement$

The "! faulted the N9R" for failin/ to appreciate the
evidence re/ardin/ the respondents5 prior emplo-ment
with !tlanta$ The N9R" reco/niNed the prior emplo-ment of
"ostales and !lmoite on !tlanta5s monthl- report for December
200( for the "&% DepartmentO%ection dated ,anuar- '. 200:$
This record shows that "ostales and !lmoite were assi/ned to
the compan-5s 3rst shift from )@00 a$m$ to (@00 p$m$ The N9R"
i/nored %ebolino and %a/un5s prior emplo-ment under the
compan-5s &roduction and Aor8 %chedule for Darch ) to 12. 200
dated Darch (. 200:.
as the- had been !tlanta5s emplo-ees as
earl- as Darch (. 200:. with %ebolino scheduled to wor8 on Darch
)-12. 200 at )@00 a$m$ to )@00 p$m$. while %a/un was scheduled
to wor8 for the same period but from )@00 p$m$ to )@00 a$m$The
"! noted that !tlanta failed to challen/e the authenticit- of the
two documents before it and the labor authorities$

!tlanta and "han moved for reconsideration. but the "!
denied the motion in a resolution rendered on Darch 2. 200*$
Bence. the present petition$
The &etition

!tlanta see8s a reversal of the "! decision. contendin/
that the appellate court erred in 011 concludin/ that "ostales.
!lmoite. %ebolino and %a/un were emplo-ed b- !tlanta before
the- were en/a/ed as apprenticesJ 021 rulin/ that a second
apprenticeship a/reement is invalidJ 0(1 declarin/ that the
respondents were ille/all- dismissedJ and 0:1 disre/ardin/ the
compromise a/reement executed b- "ostales and !lmoite$ ;t
submits the followin/ ar/uments@

First$ The "!5s conclusion that the respondent wor8ers
were compan- emplo-ees before the- were en/a/ed as
apprentices was primaril- based on the Donthl- Report
and the
&roduction and Aor8 %chedule for Darch )-12. 200.
in total
disre/ard of the Daster 9ist
prepared b- the compan-
accountant. 7melita D$ Kernardo$ The names of "ostales. !lmoite.
%ebolino and %a/un do not appear as emplo-ees in the Daster
9ist which 2contained the names of all the persons who were
emplo-ed b- and at petitioner$4

!tlanta faults the "! for rel-in/ on the &roduction and
Aor8 %chedule and the Donthl- Report which were not sworn to.
and in disre/ardin/ the Daster 9ist whose veracit- was sworn to
b- Kernardo and b- !lex #o who headed the compan-5s
accountin/ division$ ;t maintains that the "! should have /iven
more credence to the Daster 9ist$

Secon"$ ;n declarin/ invalid the apprenticeship
a/reements it entered into with the respondent wor8ers. the "!
failed to reco/niNe the rationale behind the law on apprenticeship$
;t submits that under the law.
apprenticeship a/reements are
valid. provided the- do not exceed six 0'1 months and the
apprentices are paid the appropriate wa/es of at least )< of the
applicable minimum wa/e$

The respondents initiall- executed a 3ve-month
apprenticeship pro/ram with !tlanta. at the end of which. the-
2voluntaril- and willin/l- entered into another apprenticeship
a/reement with the petitioner for the trainin/ of a second
for 3ve monthsJ thus. the petitioners committed no
violation of the apprenticeship period laid down b- the law$

=urther. the apprenticeship a/reements. entered into b-
the parties. complied with the re>uisites under !rticle '2 of the
9abor "odeJ the compan-5s authoriNed representative and the
respondents si/ned the a/reements and these were rati3ed b-
the compan-5s apprenticeship committee$ The apprenticeship
pro/ram itself was approved and certi3ed b- the T7%D!$
"!. thus. erred in overturnin/ the N9R"5s 3ndin/ that the
apprenticeship a/reements were valid$

Thir"$ There was no ille/al dismissal as the respondent
wor8ers5 tenure ended with the expiration of the apprenticeship
a/reement the- entered into$ There was. therefore. no re/ular
emplo-er-emplo-ee relationship between !tlanta and the
respondent wor8ers$

The "ase for "ostales. !lmoite. %ebolino and %a/un

;n a "omment 3led on !u/ust '. 200*.
!lmoite. %ebolino and %a/un pra- for a denial of the petition for
bein/ procedurall- defective and for lac8 of merit$

The respondent wor8ers contend that the petition failed to
compl- with %ection :. Rule : of the Rules of "ourt which
re>uires that the petition be accompanied b- supportin/ material
portions of the records$ The petitioners failed to attach to the
petition a cop- of the &roduction and Aor8 %chedule despite their
submission that the "! relied heavil- on the document in 3ndin/
the respondent wor8ers5 prior emplo-ment with !tlanta$ The-
also did not attach a cop- of the compromise a/reement
purportedl- executed b- "ostales and !lmoite$ =or this reason.
the respondent wor8ers submit that the petition should be

The respondents posit that the "! committed no error in
holdin/ that the- were alread- !tlanta5s emplo-ees before the-
were en/a/ed as apprentices. as con3rmed b- the compan-5s
&roduction and Aor8 %chedule$
The- maintain that the
&roduction and Aor8 %chedule meets the re>uirement of
substantial evidence as the petitioners failed to >uestion its
authenticit-$ The- point out that the schedule was prepared b-
Rose !$ Luirit and approved b- !dolfo R$ 9ope. head of the
compan-5s &7O%piral %ection$ The- ar/ue that it was hi/hl-
unli8el- that the head of a production section of the compan-
would prepare and assi/n wor8 to the complainants if the latter
had not been compan- emplo-ees$

The respondent wor8ers reiterate their mistrust of the
Daster 9ist
as evidence that the- were not emplo-ees of the
compan- at the time the- became apprentices$ The- label the
Daster 9ist as 2self-servin/. dubious and even if considered as
authentic. its content contradicts a lot of petitioner5s claim and
thus -

1$ !side from the fact that the Daster 9ist is not le/ible.
it contains onl- the names of inactive emplo-ees$ 7ven those
found b- the N9R" to have been emplo-ed in the compan- 0such
as !lmoite. "ostales and %a/un1 do not appear in the list$ ;f
"ostales and !lmoite had been emplo-ed with !tlanta since
,anuar- 11. 200'. as the compan- claimed.
their names would
have been in the list. considerin/ that the Daster 9ist accounts for
all emplo-ees 2as of Da- 200'4 T the notation carried on top of
each pa/e of the document$
2$ There were no entries of emplo-ees hired or
resi/ned in the -ears 200 and 200' despite the 2as of Da- 200'4
notationJ several pa/es ma8in/ up the Daster 9ist contain names
of emplo-ees for the -ears 1*** - 200:$
($ The fact that !tlanta presented the purported Daster
9ist instead of the pa-roll raised serious doubts on the
authenticit- of the list$

;n sum. the respondent wor8ers posit that the presentation
of the Daster 9ist revealed the 2intention of the herein
petitioner[s] to perpetuall- hide the fact of [their] prior

+n the supposed apprenticeship a/reements the- entered
into. "ostales. !lmoite. %ebolino and %a/un refuse to accept the
a/reements5 validit-. contendin/ that the compan-5s
apprenticeship pro/ram is merel- a plo- 2to continuall- deprive
[them] of their ri/htful wa/es and bene3ts which are due them as
re/ular emplo-ees$4
The- submit the followin/ 2indubitable
facts and ratiocinations@4

1$ The apprenticeship a/reements were submitted to
T7%D! onl- in 200 0with dates of receipt on 21O:O04 U
1. when the a/reements were supposed to have been
executed in !pril or Da- 200:$ Thus. the submission was made
lon/ after the startin/ date of the wor8ers5 apprenticeship or even
be-ond the a/reement5s completionOtermination date. in violation
of %ection 2(. Rule H;. Koo8 ;; of the 9abor "ode$
2$ The respondent wor8ers were made to under/o
apprenticeship for occupations di?erent from those alle/edl-
approved b- T7%D!$ T7%D! approved!tlanta5s apprenticeship
pro/ram on 2&lastic Dolder4
and not for extrusion moldin/
process. en/ineerin/. pelletiNin/ process and mixin/ process$
($ The respondents were alread- s8illed wor8ers prior
to the apprenticeship pro/ram as the- had been emplo-ed and
made to wor8 in the di?erent Cob positions where the- had
under/one trainin/$ %a/un and %ebolino. to/ether with Dabana/.
&edre/oNa. dela "ruN. "hion/. Da/alan/ and !le/ria were even
/iven production assi/nments and wor8 schedule at the &7O%piral
%ection from Da- 11. 200: to Darch 2(. 200. and some of them
were even assi/ned to the (@00 p$m$ T 11@00 p$m$ and /rave-ard
shifts 011@00 p$m$ T )@00 a$m$1 durin/ the period$
:$ The respondent wor8ers were re>uired to continue
as apprentices be-ond six months$ The T7%D! certi3cate of
completion indicates that the wor8ers5 apprenticeship had been
completed after six months$ Get. the- were su?ered to wor8 as
apprentices be-ond that period$

"ostales. !lmoite. %ebolino and %a/un resolutel- maintain
that the- were ille/all- dismissed. as the reason for the
termination of their emplo-ment T notice of the completion of the
second apprenticeship a/reement T did not constitute either a Cust
or authoriNed cause under !rticles 262 and 26( of the 9abor "ode$

=inall-. "ostales and !lmoite refuse to be bound b- the
compromise a/reement
that !tlanta presented to defeat the
two wor8ers5 cause of action$ The- claim that the supposed
a/reement is invalid as a/ainst them. principall- because the- did
not si/n it$

The "ourt5s Rulin/

The proce$ural issue

The respondent wor8ers as8 that the petition be dismissed
outri/ht for the petitioners5 failure to attach to the petition a cop-
of the &roduction and Aor8 %chedule and a cop- of the
compromise a/reement "ostales and !lmoite alle/edl- entered
into M material portions of the record that should accompan- and
support the petition. pursuant to %ection :. Rule : of the Rules of

;n 'ariners "olytechnic Colleges (oun$ation )nc. v. !rturo J.
%here the "ourt addressed essentiall- the same
issue arisin/ from %ection 20d1. Rule :2 of the Rules of "ourt.
we held that the phrase 2of the pleadin/s and other material
portions of the record xxx as would support the alle/ation of the
petition clearl- contemplates the exercise of discretion on the part
of the petitioner in the selection of documents that are deemed to
be relevant to the petition$ The crucial issue to consider then is
whether or not the documents accompan-in/ the petition
suIcientl- supported the alle/ations therein$4

!s in 'ariners we 3nd that the documents attached to the
petition suIcientl- support the petitioners5 alle/ations$ The
accompan-in/ "! decision
and resolution.
as well as those of
the labor arbiter
and the N9R".
referred to the parties5
position papers and even to their replies and reCoinders$
%i/ni3cantl-. the "! decision narrates the factual antecedents.
de3nes the complainants5 cause of action. and cites the
ar/uments. includin/ the evidence the parties adduced$ ;f an-.
the defect in the petition lies in the petitioners5 failure to provide
le/ible copies of some of the material documents mentioned.
especiall- several pa/es in the decisions of the labor arbiter and
of the N9R"$ This defect. however. is not fatal as the challen/ed
"! decision clearl- summariNed the labor tribunal5s rulin/s$ Ae.
thus. 3nd no procedural obstacle in resolvin/ the petition on the

The merits of the case

/e ?n" no !erit in the petition$ The "! committed no
reversible error in nullif-in/ the N9R" decision
and in aIrmin/
the labor arbiter5s rulin/.
as it applies to "ostales. !lmoite.
%ebolino and %a/un$ %peci3call-. the "! correctl- ruled that the
four were ille/all- dismissed because 011 the- were alread-
emplo-ees when the- were re>uired to under/o apprenticeship
and 021 apprenticeship a/reements were invalid$

The followin/ considerations support the "! rulin/$

First$ Kased on compan- operations at the time material to
the case. "ostales. !lmoite. %ebolino and %a/un were alread-
renderin/ service to the compan- as emplo-ees before the- were
made to under/o apprenticeship$ The compan- itself reco/niNed
the respondents5 status throu/h relevant operational records T in
the case of "ostales and !lmoite. the "&% monthl- report for
December 200(
which the N9R" relied upon and. for %ebolino
and %a/un. the production and wor8 schedule for Darch ) to 12.
cited b- the "!$

Ender the "&% monthl- report. !tlanta assi/ned "ostales
and !lmoite to the 3rst shift 0)@00 a$m$ to (@00 p$m$1 of the
%ection5s wor8$ The &roduction and Aor8 %chedules. in addition to
the one noted b- the "!. showed that %ebolino and %a/un were
scheduled on di?erent shifts vis+,+vis the production and wor8 of
the compan-5s &7O%piral %ection for the periods ,ul- -10. 200:J
+ctober 2-(1. 200:J
November 6-1:. 200:J
1'-22. 200:J
,anuar- (-*. 200J
,anuar- 10-1. 200J
Darch )-12. 200
and Darch 1)-2(. 200$

Ae stress that the "! correctl- reco/niNed the authent
icit- of the operational documents. for the failure of !tlanta to
raise a challen/e a/ainst
these documents before the labor arbiter. the N9R" and the "!
itself$ The appellate court. thus. found the
said documents suIcient to establish the emplo-ment of the
respondents before their en/a/ement as apprentices$

Secon"$ The Daster 9ist
0of emplo-ees1 that the
petitioners heavil- rel- upon as proof of their position that the
respondents were not !tlanta5s emplo-ees. at the time the- were
en/a/ed as apprentices. is unreliable and does not inspire belief$

The list. consistin/ of several pa/es. is hardl- le/ible$ ;t
re>uires extreme e?ort to sort out the names of the emplo-ees
listed. as well as the other data contained in the list$ =or this
reason alone. the list deserves little or no consideration$ !s the
respondents also pointed out. the list itself contradicts a lot of
!tlanta5s claims and alle/ations. thus@ it lists onl- the names of
inactive emplo-eesJ even the names of those the N9R" found to
have been emplo-ed b- !tlanta. li8e "ostales and !lmoite. and
those who even !tlanta claims attained re/ular status on ,anuar-
11. 200'.
do not appear in the list when it was supposed to
account for all emplo-ees 2as of Da- '. 200'$4 Despite the 2Da-
'. 200'4 cut o? date. the list contains no entries of emplo-ees
who were hired or who resi/ned in 200 and 200'$ Ae note that
the list contains the names of emplo-ees from 1*** to 200:$

Ae cannot fault the "! for i/norin/ the Daster 9ist even if
Kernardo. its head oIce accountant. swore to its correctness and
;ts substantive unreliabilit- /ives it ver- minimal
probative value$ !tlanta would have been better served. in terms
of reliable evidence. if true copies of the pa-roll 0on which the list
was based. amon/ others. as Kernardo claimed in her aIdavit1
were presented instead$

Thir"$ The fact that "ostales. !lmoite. %ebolino and %a/un
were alread- renderin/ service to the compan- when the- were
made to under/o apprenticeship 0as established b- the evidence1
renders the apprenticeship a/reements irrelevant as far as the
four are concerned$ This realit- is hi/hli/hted b- the "! 3ndin/
that the respondents occupied positions such as machine
operator. scaleman and extruder operator - tas8s that are usuall-
necessar- and desirable in !tlanta5s usual business or trade as
manufacturer of plastic buildin/ materials$
These tas8s and
their nature characteriNed the four as re/ular emplo-ees under
!rticle 260 of the 9abor "ode$ Thus. when the- were dismissed
without Cust or authoriNed cause. without notice. and without the
opportunit- to be heard. their dismissal was ille/al under the law$

7ven if we reco/niNe the compan-5s need to train its
emplo-ees throu/h apprenticeship. we can onl- consider the 3rst
apprenticeship a/reement for the purpose$ Aith the expiration of
the 3rst a/reement and the retention of the
emplo-ees. !tlanta had. to all intents and purposes. reco/niNed
the completion of their trainin/ and their ac>uisition of a re/ular
emplo-ee status$ To foist upon them the second apprenticeship
a/reement for a second s8ill which was not even mentioned in the
a/reement itself.
is a violation of the 9abor "ode5s
implementin/ rules
and is an act manifestl- unfair to the
emplo-ees. to sa- the least$ This we cannot allow$

Fourth$ The compromise a/reement
alle/edl- entered
into b- "ostales and !lmoite. to/ether with Ramos. Hilla/omeN
and !le/ria. purportedl- in settlement of the case before the
N9R". is not bindin/ on "ostales and !lmoite because the- did not
si/n it$ The compan- itself admitted
that while "ostales and
!lmoite were initiall- intended to be a part of the a/reement. it
did not pursue their inclusion 2due to their re/ulariNation as earl-
as ,anuar- 11. 200'$4

/=EREFORE, premises considered. we hereb- DENH the
petition for lac8 of merit$ The assailed decision and resolution of
the "ourt of !ppeals areAFFIR%ED2 "osts a/ainst the petitioner
!tlanta ;ndustries. ;nc$

Republic of the Philippines

G.R. No. 114337 September 29, 1995
CAPILI, respondents.

This petition for certiorari under Rule ! of the Rules of "ourt
see#in$ to annul the decision
rendered b% public respondent National &abor
Relations "o''ission, (hich reversed the decision of the &abor )rbiter.
*riefl%, the facts of the case are as follo(s+
Petitioner Nitto ,nterprises, a co'pan% en$a$ed in the sale of $lass
and alu'inu' products, hired Roberto "apili so'eti'e in Ma% -../
as an apprentice 'achinist, 'older and core 'a#er as evidenced b%
an apprenticeship a$ree'ent
for a period of si0 12 'onths fro' Ma% 34,
-../ to Nove'ber 34, -../ (ith a dail% (a$e rate of P.5! (hich (as 5!6 of the
applicable 'ini'u' (a$e.
)t around -+// p.'. of )u$ust 3, -../, Roberto "apili (ho (as
handlin$ a piece of $lass (hich he (as (or#in$ on, accidentall% hit
and in7ured the le$ of an office secretar% (ho (as treated at a
nearb% hospital.
&ater that sa'e da%, after office hours, private respondent entered a
(or#shop (ithin the office pre'ises (hich (as not his (or# station.
There, he operated one of the po(er press 'achines (ithout
authorit% and in the process in7ured his left thu'b. Petitioner spent
the a'ount of P-,/38./9 to cover the 'edication of private
The follo(in$ da%, Roberto "apili (as as#ed to resi$n in a
(hich reads+
:ala si%an$ tan$$ap n$ utos 'ula sa superbisor at
(ala si%an$ e0periensa #un$ papaano $a'itin and
;TOO&; sa pa$buhat n$ sala'in, sarili ni%an$
desis%on an$ pa$$a'it n$ tool at 'a% dis$ras%a at
nada'a% pa an$ isan$ se#retar%a n$ #o'pan%a.
Sa ara( din$ ito li'an$ 1!2 'inute an$ na#a#alipas
'ula alas<sin$#o n$ hapon si%a a% pu'aso# sa shop
na hindi na'an sa#op n$ #an%an$ trabaho.
Pina#iala'an at #inali#ot an$ 'a#ina at nadis$ras%a
ni%a an$ #an%an$ sarilin$ #a'a%.
Na#a$astos an$ #o'pan%a n$ '$a
,'er$enc% and doctor fee P5-!.//
Medecines 1sic2 and others 8-5./9
*ibi$%an si%a n$ #o'pan%a n$ Si%a' na ara( na
libren$ sahod han$$an$ 'atan$$al an$ tahi n$
#an%an$ #a'a%.
Tatan$$apin ni%a an$ sahod ni%an$ ani' na ara(,
'ula i#a<8/ n$ =ul%o at i#a<9 n$ )$osto, -../.
)n$ #o'pan%a an$ 'a$baba%ad n$ lahat n$ $astos
pa$tan$$al n$ tahi n$ #an%an$ #a'a%, pa$#atapos
n$ si%a' na ara( 'ula i#a<3 n$ )$osto.
Sa lahat n$ na#asulat sa itaas, hinihin$i n$ #o'pan%a
an$ #an%an$ resi$nas%on, #asa'a n$ #an%an$
co'fir'as%on at pa$<a%on na an$ lahat sa itaas a%

Naiintindihan #o an$ lahat n$ na#asulat sa itaas, at
an$ lahat n$ ito a% a#in$ pa$#a#asala sa hindi
pa$sunod sa alintuntunin n$ #o'pan%a.
On )u$ust 8, -../ private respondent e0ecuted a >uitclai' and
Release in favor of petitioner for and in consideration of the su' of
Three da%s after, or on )u$ust , -../, private respondent for'all%
filed before the N&R" )rbitration *ranch, National "apital Re$ion a
co'plaint for ille$al dis'issal and pa%'ent of other 'onetar%
On October ., -..-, the &abor )rbiter rendered his decision findin$
the ter'ination of private respondent as valid and dis'issin$ the
'one% clai' for lac# of 'erit. The dispositive portion of the rulin$
:=,R,FOR,, pre'ises considered, the ter'ination
is valid and for cause, and the 'one% clai's
dis'issed for lac# of 'erit.
The respondent ho(ever is ordered to pa% the
co'plainant the a'ount of P!//.// as financial
&abor )rbiter Patricio P. &ibo<on $ave t(o reasons for rulin$ that the
dis'issal of Roberto "apilian (as valid. First, private respondent
(ho (as hired as an apprentice violated the ter's of their
a$ree'ent (hen he acted (ith $ross ne$li$ence resultin$ in the
in7ur% not onl% to hi'self but also to his fello( (or#er. Second,
private respondent had sho(n that ;he does not have the proper
attitude in e'plo%'ent particularl% the handlin$ of 'achines (ithout
authorit% and proper trainin$.
On ?ul% 3, -..8, the National &abor Relations "o''ission issued
an order reversin$ the decision of the &abor )rbiter, the dispositive
portion of (hich reads+
:=,R,FOR,, the appealed decision is hereb% set
aside. The respondent is hereb% directed to reinstate
co'plainant to his (or# last perfor'ed (ith
bac#(a$es co'puted fro' the ti'e his (a$es (ere
(ithheld up to the ti'e he is actuall% reinstated. The
)rbiter of ori$in is hereb% directed to further hear
co'plainant@s 'one% clai's and to dispose the' on
the basis of la( and evidence obtainin$.
The N&R" declared that private respondent (as a re$ular
e'plo%ee of petitioner b% rulin$ thus+
)s correctl% pointed out b% the co'plainant, (e
cannot understand ho( an apprenticeship a$ree'ent
filed (ith the Depart'ent of &abor onl% on ?une 5,
-../ could be validl% used b% the &abor )rbiter as
basis to conclude that the co'plainant (as hired b%
respondent as a plain ;apprentice; on Ma% 34, -../.
"learl%, therefore, the co'plainant (as respondent@s
re$ular e'plo%ee under )rticle 34/ of the &abor
"ode, as earl% as Ma% 34,-../, (ho thus en7o%ed the
securit% of tenure $uaranteed in Section 8, )rticle AIII
of our -.45 "onstitution.
The co'plainant bein$ for ille$al dis'issal 1a'on$
others2 it then behooves upon respondent, pursuant
to )rt. 3351b2 and as ruled in ,d(in Besul$on vs.
N&R", et al. 1B.R. No. ./89., March !, -..8, 8rd
Div., Feliciano, J.2 to prove that the dis'issal of
co'plainant (as for a valid cause. )bsent such proof,
(e cannot but rule that the co'plainant (as ille$all%
On ?anuar% 34, -..9, &abor )rbiter &ibo<on called for a conference
at (hich onl% private respondent@s representative (as present.
On )pril 33, -..9, a :rit of ,0ecution (as issued, (hich reads+
NO:, T=,R,FOR,, findin$ 'erit in Cprivate
respondent@sD Motion for Issuance of the :rit, %ou are
hereb% co''anded to proceed to the pre'ises of
CpetitionerD Nitto ,nterprises and ?ov% Foster located
at No. l 59 )raneta )venue, Portero, Malabon, Metro
Manila or at an% other places (here their properties
are located and effect the reinstate'ent of herein
Cprivate respondentD to his (or# last perfor'ed or at
the option of the respondent b% pa%roll reinstate'ent.
Eou are also to collect the a'ount of P-33,./.4!
representin$ his bac#(a$es as called for in the
dispositive portion, and turn over such a'ount to this
Office for proper disposition.
Petitioner filed a 'otion for reconsideration but the
sa'e (as denied.
=ence, the instant petition F for certiorari.
The issues raised before us are the follo(in$+
)N )PPR,NTI",.
)D,>G)T,&E PROV,N T=, ,AIST,N", OF )
:e find no 'erit in the petition.
Petitioner assails the N&R"@s findin$ that private respondent
Roberto "apili cannot plainl% be considered an apprentice since no
apprenticeship pro$ra' had %et been filed and approved at the ti'e
the a$ree'ent (as e0ecuted.
Petitioner further insists that the 'ere si$nin$ of the apprenticeship
a$ree'ent alread% established an e'plo%er<apprentice relationship.
Petitioner@s ar$u'ent is erroneous.
The la( is clear on this 'atter. )rticle - of the &abor "ode
"ontents of apprenticeship a$ree'ent. F
)pprenticeship a$ree'ents, includin$ the 'ain rates
of apprentices, shall confor' to the rules issued b%
the Minister of &abor and ,'plo%'ent. The period of
apprenticeship shall not e0ceed si0 'onths.
)pprenticeship a$ree'ents providin$ for (a$e rates
belo( the le$al 'ini'u' (a$e, (hich in no case
shall start belo( 5!6 per cent of the applicable
'ini'u' (a$e, 'a% be entered into onl% in
accordance (ith apprenticeship pro$ra' dul%
approved b% the Minister of &abor and ,'plo%'ent.
The Ministr% shall develop standard 'odel pro$ra's
of apprenticeship. 1e'phasis supplied2
In the case at bench, the apprenticeship a$ree'ent bet(een
petitioner and private respondent (as e0ecuted on Ma% 34, -../
alle$edl% e'plo%in$ the latter as an apprentice in the trade of ;care
'a#erH'older.; On the sa'e date, an apprenticeship pro$ra' (as
prepared b% petitioner and sub'itted to the Depart'ent of &abor
and ,'plo%'ent. =o(ever, the apprenticeship )$ree'ent (as filed
onl% on ?une 5, -../. Not(ithstandin$ the absence of approval b%
the Depart'ent of &abor and ,'plo%'ent, the apprenticeship
a$ree'ent (as enforced the da% it (as si$ned.
*ased on the evidence before us, petitioner did not co'pl% (ith the
reIuire'ents of the la(. It is 'andated that apprenticeship
a$ree'ents entered into b% the e'plo%er and apprentice shall be
entered onl% in accordance (ith the apprenticeship pro$ra' dul%
approved b% the Minister of &abor and ,'plo%'ent.
Prior approval b% the Depart'ent of &abor and ,'plo%'ent of the
proposed apprenticeship pro$ra' is, therefore, a condition sine quo
non before an apprenticeship a$ree'ent can be validl% entered into.
The act of filin$ the proposed apprenticeship pro$ra' (ith the
Depart'ent of &abor and ,'plo%'ent is a preli'inar% step to(ards
its final approval and does not instantaneousl% $ive rise to an
e'plo%er<apprentice relationship.
)rticle !5 of the &abor "ode provides that the State ai's to
;establish a national apprenticeship pro$ra' throu$h the
participation of e'plo%ers, (or#ers and $overn'ent and non<
$overn'ent a$encies; and ;to establish apprenticeship standards
for the protection of apprentices.; To translate such ob7ectives into
e0istence, prior approval of the DO&, to an% apprenticeship
pro$ra' has to be secured as a condition sine qua non before an%
such apprenticeship a$ree'ent can be full% enforced. The role of
the DO&, in apprenticeship pro$ra's and a$ree'ents cannot be
=ence, since the apprenticeship a$ree'ent bet(een petitioner and
private respondent has no force and effect in the absence of a valid
apprenticeship pro$ra' dul% approved b% the DO&,, private
respondent@s assertion that he (as hired not as an apprentice but as
a deliver% bo% 1;#ar$ador; or ;pahinante;2 deserves credence. =e
should ri$htl% be considered as a re$ular e'plo%ee of petitioner as
defined b% )rticle 34/ of the &abor "ode+
)rt. 34/. Re$ular and "asual ,'plo%'ent. F The
provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement
of the parties, an employment shall be deemed to be
regular where the employee has been engaged to
perform activities which are usually necessary or
desirable in the usual business or trade of the
employer, e0cept (here the e'plo%'ent has been
fi0ed for a specific pro7ect or underta#in$ the
co'pletion or ter'ination of (hich has been
deter'ined at the ti'e of the en$a$e'ent of the
e'plo%ee or (here the (or# or services to be
perfor'ed is seasonal in nature and the e'plo%'ent
is for the duration of the season.
)n e'plo%'ent shall be dee'ed to be casual if it is
not covered b% the precedin$ para$raph+Provided,
That, an% e'plo%ee (ho has rendered at least one
%ear of service, (hether such service is continuous or
bro#en, shall be considered a re$ular e'plo%ee (ith
respect to the activit% in (hich he is e'plo%ed and his
e'plo%'ent shall continue (hile such activit% e0ists.
1,'phasis supplied2
and pursuant to the constitutional 'andate to ;protect the
ri$hts of (or#ers and pro'ote their (elfare.;
Petitioner further ar$ues that, there is a valid cause for the dis'issal
of private respondent.
There is an abundance of cases (herein the "ourt ruled that the
t(in reIuire'ents of due process, substantive and procedural, 'ust
be co'plied (ith, before valid dis'issal e0ists.
:ithout (hich, the
dis'issal beco'es void.
The t(in reIuire'ents of notice and hearin$ constitute the essential
ele'ents of due process. This si'pl% 'eans that the e'plo%er shall
afford the (or#er a'ple opportunit% to be heard and to defend
hi'self (ith the assistance of his representative, if he so desires.
)'ple opportunit% connotes ever% #ind of assistance that
'ana$e'ent 'ust accord the e'plo%ee to enable hi' to prepare
adeIuatel% for his defense includin$ le$al representation.
)s held in the case of Pepsi-Cola Bottling Co., nc. v. !"#C+
The la( reIuires that the e'plo%er 'ust furnish the
(or#er sou$ht to be dis'issed (ith t(o 132 (ritten
notices before ter'ination of e'plo%ee can be le$all%
effected+ 1-2 notice (hich apprises the e'plo%ee of
the particular acts or o'issions for (hich his
dis'issal is sou$htJ and 132 the subseIuent notice
(hich infor's the e'plo%ee of the e'plo%er@s
decision to dis'iss hi' 1Sec. -8, *P -8/J Sec. 3<
Rule AIV, *oo# V, Rules and Re$ulations
I'ple'entin$ the &abor "ode as a'ended2. Failure
to co'pl% (ith the reIuire'ents taints the dis'issal
(ith ille$alit%. This procedure is 'andator%, in the
absence of (hich, an% 7ud$'ent reached b%
'ana$e'ent is void and in e0istent 1Tin$son, ?r. vs.
N&R", -4! S"R) 9.4 C-../DJ National Service "orp.
vs. N&R", -4 S"R) -33J Ruff% vs. N&R". -43
S"R) 8! C-../D2.
The fact is private respondent filed a case of ille$al dis'issal (ith
the &abor )rbiter onl% three da%s after he (as 'ade to si$n a
>uitclai', a clear indication that such resi$nation (as not voluntar%
and deliberate.
Private respondent averred that he (as actuall% e'plo%ed b%
petitioner as a deliver% bo% 1;#ar$ador; or ;pahinante;2.
=e further asserted that petitioner ;stron$<ar'ed; hi' into si$nin$
the afore'entioned resi$nation letter and Iuitclai' (ithout
e0plainin$ to hi' the contents thereof. Petitioner 'ade it clear to hi'
that an%(a%, he did not have a choice.
Petitioner cannot dis$uise the su''ar% dis'issal of private
respondent b% orchestratin$ the latter@s alle$ed resi$nation and
subseIuent e0ecution of a >uitclai' and Release. ) 7udicious
e0a'ination of both events belies an% spontaneit% on private
respondent@s part.
:=,R,FOR,, findin$ no abuse of discretion co''itted b% public
respondent National &abor Relations "o''ission, the appealed
decision is hereb% )FFIRM,D.
AG.R. No. 1>>@1=. B+.8 1>, 1@@@C
COMPANY, resondents.
T0e M&)n& !&rt& 1or %is&2(ed Persons '&nd&tes t0&t =u&(i1ied dis&2(ed
persons 2e )r&nted t0e s&'e ter's &nd 5onditions o1 e'p(o3'ent &s =u&(i1ied &2(e-
2odied e'p(o3ees. n5e t0e3 0&ve &tt&ined t0e st&tus o1 re)u(&r ForCers, t0e3
s0ou(d 2e &55orded &(( t0e 2ene1its )r&nted 23 (&F, notFit0st&ndin) Fritten or
ver2&( 5ontr&5ts to t0e 5ontr&r3. T0is tre&t'ent is rooted not 'ere(3 on 50&rit3 or
&55o''od&tion, 2ut on Lusti5e 1or &((.
T)! C&'!
!0&((en)ed in t0e Petition 1or Certiorari
2e1ore us is t0e *une +-, 9..<
o1 t0e N&tion&( $&2or Re(&tions !o''ission 6N$R!7,
F0i50 &11ir'ed
t0e Au)ust, ++ 9..@ ru(in) o1 $&2or Ar2iter !orne(io $. $ins&n)&n. T0e (&2or
&r2iter>s %e5ision disposed &s 1o((oFs:
G/"EREDRE, Lud)'ent is 0ere23 rendered dis'issin) t0e &2ove-
'entioned 5o'p(&int 1or (&5C o1 'erit.I
A(so &ss&i(ed is t0e Au)ust @, 9..< Reso(ution
o1 t0e N$R!, F0i50 denied t0e
Motion 1or Re5onsider&tion.
T)! F&4('
T0e 1&5ts Fere su''&riHed 23 t0e N$R! in t0is Fise:
G!o'p(&in&nts nu'2erin) @? 6p. 9;,, Re5ords7 &re de&1-'utes F0o Fere
0ired on v&rious periods 1ro' 9.AA to 9..? 23 respondent D&r E&st B&nC
&nd Trust !o. &s Mone3 Sorters &nd !ounters t0rou)0 & uni1or'(3 Forded
&)ree'ent 5&((ed RE'p(o3'ent !ontr&5t 1or "&ndi5&pped /orCers>. 6pp.
,A S ,., Re5ords7 T0e 1u(( teKt o1 s&id &)ree'ent is =uoted 2e(oF:
T0is !ontr&5t, entered into 23 &nd 2etFeen:
DAR EAST BANT AN% TRUST !MPANY, & univers&( 2&nCin)
5orpor&tion du(3 or)&niHed &nd eKistin) under &nd 23 virtue o1 t0e (&Fs o1
t0e P0i(ippines, Fit0 2usiness &ddress &t DEBT! Bui(din), Mur&((&,
Intr&'uros, M&ni(&, represented 0erein 23 its Assist&nt 4i5e President, MR.
D$REN% G. MARANAN, 60erein&1ter re1erred to &s t0e RBANT>7E
- &nd -
UUUUUUUUUUUUU, &nd residin) &t UUUUUUUUUUUUUUUUUU 60erein&1ter
re1erred to &s t0e 6REMP$YEE>7.
/"EREAS, t0e BANT, 5o)niH&nt o1 its so5i&( responsi2i(it3, re&(iHes t0&t
t0ere is & need to provide dis&2(ed &nd 0&ndi5&pped persons )&in1u(
e'p(o3'ent &nd opportunities to re&(iHe t0eir potenti&(s, up(i1t t0eir so5io-
e5ono'i5 Fe(( 2ein) &nd Fe(1&re &nd '&Ce t0e' produ5tive, se(1-re(i&nt
&nd use1u( 5itiHens to en&2(e t0e' to 1u((3 inte)r&te in t0e '&instre&' o1
/"EREAS, t0ere &re 5ert&in positions in t0e BANT F0i50 '&3 2e 1i((ed-
up 23 dis&2(ed &nd 0&ndi5&pped persons, p&rti5u(&r(3 de&1-'utes, &nd t0e
BANT 0&8s: 2een &ppro&50ed 23 so'e 5ivi5-'inded 5itiHens &nd
&ut0oriHed )overn'ent &)en5ies 8re)&rdin): t0e possi2i(it3 o1 0irin)
0&ndi5&pped ForCers 1or t0ese positionsE
/"EREAS, t0e EMP$YEE is one o1 t0ose 0&ndi5&pped ForCers F0o
8Fere: re5o''ended 1or possi2(e e'p(o3'ent Fit0 t0e BANTE
N/, T"EREDRE, 1or &nd in 5onsider&tion o1 t0e 1ore)oin) pre'ises
&nd in 5o'p(i&n5e Fit0 Arti5(e A- o1 t0e $&2or !ode o1 t0e P0i(ippines &s
&'ended, t0e BANT &nd t0e EMP$YEE 0&ve entered into t0is
E'p(o3'ent !ontr&5t &s 1o((oFs:
9. T0e BANT &)rees to e'p(o3 &nd tr&in t0e EMP$YEE, &nd t0e
EMP$YEE &)rees to di(i)ent(3 &nd 1&it01u((3 ForC Fit0 t0e BANT,
&s Mone3 Sorter &nd !ounter.
+. T0e EMP$YEE s0&(( per1or' &'on) ot0ers, t0e 1o((oFin) duties
&nd responsi2i(ities:
i Sort out 2i((s &55ordin) to 5o(orE
ii. !ount e&50 deno'in&tion per 0undred, eit0er '&nu&((3 or Fit0 t0e
&id o1 & 5ountin) '&50ineE
iii. /r&p &nd (&2e( 2i((s per 0undredE
iv. Put t0e Fr&pped 2i((s into 2und(esE &nd
v. Su2'it 2und(ed 2i((s to t0e 2&nC te((er 1or veri1i5&tion.
?. T0e EMP$YEE s0&(( under)o & tr&inin) period o1 one 697 'ont0,
&1ter F0i50 t0e BANT s0&(( deter'ine F0et0er or not 0eBs0e s0ou(d 2e
&((oFed to 1inis0 t0e re'&inin) ter' o1 t0is !ontr&5t.
@. T0e EMP$YEE s0&(( 2e entit(ed to &n initi&( 5o'pens&tion
o1 P99A.-- per d&3, su2Le5t to &dLust'ent in t0e so(e Lud)'ent o1 t0e
BANT, p&3&2(e ever3 9<
&nd end o1 t0e 'ont0.
<. T0e re)u(&r ForC s50edu(e o1 t0e EMP$YEE s0&(( 2e 1ive 6<7 d&3s
per FeeC, 1ro' Mond&3s t0ru Drid&3s, &t ei)0t 6A7 0ours & d&3. T0e
EMP$YEE '&3 2e re=uired to per1or' overti'e ForC &s 5ir5u'st&n5e
'&3 F&rr&nt, 1or F0i50 overti'e ForC 0eBs0e 8s0&((: 2e p&id &n &ddition&(
5o'pens&tion o1 9+<M o1 0is d&i(3 r&te i1 per1or'ed durin) ordin&r3 d&3s
&nd 9?-M i1 per1or'ed durin) S&turd&3 or 8&: rest d&3.
,. T0e EMP$YEE s0&(( (iCeFise 2e entit(ed to t0e 1o((oFin) 2ene1its:
i. Proportion&te 9?
'ont0 p&3 2&sed on 0is 2&si5 d&i(3 F&)e.
ii. Dive 6<7 d&3s in5entive (e&ve.
iii. SSS pre'iu' p&3'ent.
;. T0e EMP$YEE 2inds 0i'se(1B0erse(1 to &2ide 823: &nd 5o'p(3
Fit0 &(( t0e BANT Ru(es &nd Re)u(&tions &nd Po(i5ies, &nd to 5ondu5t
0i'se(1B0erse(1 in & '&nner eKpe5ted o1 &(( e'p(o3ees o1 t0e BANT.
A. T0e EMP$YEE &5CnoF(ed)es t0e 1&5t t0&t 0eBs0e 0&d 2een
e'p(o3ed under & spe5i&( e'p(o3'ent pro)r&' o1 t0e BANT, 1or F0i50
re&son t0e st&nd&rd 0irin) re=uire'ents o1 t0e BANT Fere not &pp(ied in
0isB0er 5&se. !onse=uent(3, t0e EMP$YEE &5CnoF(ed)es &nd &55epts
t0e 1&5t t0&t t0e ter's &nd 5onditions o1 t0e e'p(o3'ent )ener&((3 o2served
23 t0e BANT Fit0 respe5t to t0e BANT>s re)u(&r e'p(o3ee &re not
&pp(i5&2(e to t0e EMP$YEE, &nd t0&t t0ere1ore, t0e ter's &nd 5onditions
o1 t0e EMP$YEE>s e'p(o3'ent Fit0 t0e BANT s0&(( 2e )overned so(e(3
&nd eK5(usive(3 23 t0is !ontr&5t &nd 23 t0e &pp(i5&2(e ru(es &nd re)u(&tions
t0&t t0e %ep&rt'ent o1 $&2or &nd E'p(o3'ent '&3 issue in 5onne5tion
Fit0 t0e e'p(o3'ent o1 dis&2(ed &nd 0&ndi5&pped ForCers. More
spe5i1i5&((3, t0e EMP$YEE 0ere23 &5CnoF(ed)es t0&t t0e provisions o1
BooC SiK o1 t0e $&2or !ode o1 t0e P0i(ippines &s &'ended, p&rti5u(&r(3 on
re)u(&tion o1 e'p(o3'ent &nd sep&r&tion p&3 &re not &pp(i5&2(e to 0i'B0er.
.. T0e E'p(o3'ent !ontr&5t s0&(( 2e 1or & period o1 siK 6,7 'ont0s or
1ro' UUUU to UUUU un(ess e&r(ier ter'in&ted 23 t0e BANT 1or &n3 Lust or
re&son&2(e 5&use. An3 5ontinu&tion or eKtension o1 t0is !ontr&5t s0&(( 2e
in Fritin) &nd t0ere1ore t0is !ontr&5t Fi(( &uto'&ti5&((3 eKpire &t t0e end o1
its ter's un(ess reneFed in Fritin) 23 t0e BANT.
IN /ITNESS /"ERED, t0e p&rties, 0&ve 0ereunto &11iKed t0eir
Intr&'uros, M&ni(&, P0i(ippines.>
GIn 9.AA, tFo 6+7 de&1-'utes Fere 0ired under t0is A)ree'entE in 9.A.
&not0er tFo 6+7E in 9..-, nineteen 69.7E in 9..9 siK 6,7E in 9..+, siK 6,7 &nd
in 9..?, tFent3-one 6+97. T0eir e'p(o3'ent8s: Fere reneFed ever3 siK
'ont0s su50 t0&t 23 t0e ti'e t0is 5&se &rose, t0ere Fere 1i1t3-siK 6<,7 de&1-
'utes F0o Fere e'p(o3ed 23 respondent under t0e s&id e'p(o3'ent
&)ree'ent. T0e (&st one F&s T0e('& M&(indo3 F0o F&s e'p(o3ed in 9..+
&nd F0ose 5ontr&5t eKpired on *u(3 9..?.
G%is5(&i'in) t0&t 5o'p(&in&nts Fere re)u(&r e'p(o3ees, respondent D&r
E&st B&nC &nd Trust !o'p&n3 '&int&ined t0&t 5o'p(&in&nts F0o &re &
spe5i&( 5(&ss o1 ForCers J t0e 0e&rin) i'p&ired e'p(o3ees Fere 0ired
te'por&ri(3 under 8&: spe5i&( e'p(o3'ent &rr&n)e'ent F0i50 F&s & resu(t
o1 overtures '&de 23 so'e 5ivi5 &nd po(iti5&( person&(ities to t0e
respondent B&nCE t0&t 5o'p(&in&nt8s: Fere 0ired due to Rp&Cius&p> F0i50
'ust 2e 5onsidered in t0e (i)0t o1 t0e 5onteKt o1 t0e respondent B&nC>s
5orpor&te p0i(osop03 &s Fe(( &s its 5&reer &nd ForCin) environ'ent F0i50
is to '&int&in &nd stren)t0en & 5orps o1 pro1ession&(s tr&ined &nd =u&(i1ied
o11i5ers &nd re)u(&r e'p(o3ees F0o &re 2&55&(&ure&te de)ree 0o(ders 1ro'
eK5e((ent s50oo(s F0i50 is &n un2endin) po(i53 in t0e 0irin) o1 re)u(&r
e'p(o3eesE t0&t in &ddition to t0is, tr&inin) 5ontinues so t0&t t0e re)u(&r
e'p(o3ee )roFs in t0e 5orpor&te (&dderE t0&t t0e ide& o1 0irin) 0&ndi5&pped
ForCers F&s &55ept&2(e to t0e' on(3 on & spe5i&( &rr&n)e'ent 2&sisE t0&t it
&dopted t0e spe5i&( pro)r&' to 0e(p tide over & )roup o1 0&ndi5&pped
ForCers su50 &s de&1-'utes (iCe t0e 5o'p(&in&nts F0o 5ou(d do '&nu&(
ForC 1or t0e respondent B&nCE t0&t t0e t&sC o1 5ountin) &nd sortin) o1 2i((s
F0i50 F&s 2ein) per1or'ed 23 te((ers 5ou(d 2e &ssi)ned to de&1-'utesE t0&t
t0e 5ountin) &nd sortin) o1 'one3 &re te((erin) ForCs F0i50 Fere &(F&3s
(o)i5&((3 &nd n&tur&((3 p&rt &nd p&r5e( o1 t0e te((ers> nor'&( 1un5tionsE t0&t
1ro' t0e 2e)innin) t0ere 0&ve 2een no sep&r&te ite's in t0e respondent
B&nC p(&nti((& 1or sorters or 5ountersE t0&t t0e te((ers t0e'se(ves &(re&d3 did
t0e sortin) &nd 5ountin) 50ore &s & re)u(&r 1e&ture &nd inte)r&( p&rt o1 t0eir
duties 6p. .;, Re5ords7E t0&t t0rou)0 t0e Rp&Cius&p> o1 Arturo BorL&(, t0e
te((ers Fere re(ieved o1 t0is t&sC o1 5ountin) &nd sortin) 2i((s in 1&vor o1
de&1-'utes Fit0out 5re&tin) neF positions &s t0ere is no position eit0er in
t0e respondent or in &n3 ot0er 2&nC in t0e P0i(ippines F0i50 de&(s Fit0
pure(3 5ountin) &nd sortin) o1 2i((s in 2&nCin) oper&tions.I
Petitioners spe5i1ied F0en e&50 o1 t0e' F&s 0ired &nd dis'issed, viH:
9. MARITES BERNAR% Intr&'uros 9+ N4 .- 9; N4 .?
+. E$4IRA G %IAMANTE Intr&'uros +@ *AN .- 99 *AN .@
?. REBE!!A E. %A4I% Intr&'uros 9, APR .- +? !T .?
@. %A4I% P. PAS!UA$ Be(-Air 9< !T AA +9 N4 .@
<. RAQUE$ ESTI$$ER Intr&'uros + *U$ .+ @ *AN .@
,. A$BERT "A$$ARE /est @ *AN .9 . *AN .@
;. E%MUN% M. !RTE# Be(-Air 9< *AN .9 ? %E! .?
A. *SE$IT . AG%N Intr&'uros < N4 .- 9; N4 .?
.. GERGE P. $IGUTAN, *R. Intr&'uros , SEPT A. 9. *AN .@
9-. !E$S M. YA#AR Intr&'uros A DEB .? A AUG .?
99. A$EP G. !RPU# Intr&'uros 9< DEB .? 9< AUG
9+. RNA$% M. %E$DIN Intr&'uros ++ DEB .? ++ AUG .?
9?. R/ENA M. TABAQUER Intr&'uros ++ DEB .? ++ AUG .?
9@. !RA#N !. %E$S REYES Intr&'uros A DEB .? A AUG .?
9<. RBERT G. NRA Intr&'uros 9< DEB .? 9< AUG .?
9,. MI$AGRS . $EQUIGAN Intr&'uros 9 DEB .? 9 AUG .?
9;. A%RIANA D. TAT$NG"ARI Intr&'uros ++ *AN .? ++ *U$ .?
9A. ITE !ABAN%U!S Intr&'uros +@ DEB .? +@ AUG .?
9.. !!Y NBE$$ Intr&'uros ++ DEB .? ++ AUG .?
+-. %REN%A !ATIMBU"AN Intr&'uros 9< DEB .? 9< AUG .?
+9. RBERT MAR!E$ /est ?9 *U$ .?
9 AUG .?
++. $I$IBET" Q. MARM$E* /est 9< *UN .- +9 N4 .?
+?. *SE E. SA$ES /est , AUG .+ 9+ !T .?
+@. ISABE$ MAMAUAG /est A MAY .+ 9- N4 .?
+<. 4I$ETA G. MNTES Intr&'uros + DEB .- 9< *AN .@
+,. A$BIN TE!SN Intr&'uros ; N4 .9 9- N4
+;. ME$%Y 4. GRUE$A /est +A !T .9 ? N4 .?
+A. BERNA%ET" %. AGER /est 9. %E! .- +; %E! .?
+.. !YNT"IA %E 4ERA Be(-Air +, *UN .- ? %E! .?
?-. $ANI R. !RTE# Be(-Air 9< !T AA 9- %E! .?
?9. MA. ISABE$ B. !N!EP!IN /est , SEPT .- , DEB .@
?+. %IN% 4A$ERI Intr&'uros ?- MAY .? ?- N4 .?
??. #ENAI%A MATA Intr&'uros 9- DEB .? 9- AUG .?
?@. ARIE$ %E$ PI$AR Intr&'uros +@ DEB .? +@ AUG .?
?<. MARGARET !E!I$IA !AN#A Intr&'uros +; *U$ .- @ DEB .@
?,. T"E$MA SEBASTIAN Intr&'uros 9+ N4 .- 9; N4 .?
?;. MA. *EANETTE !ER4ANTES /est , *UN .+ ; %E! .?
?A. *EANNIE RAMI$ Intr&'uros +? APR .- 9+ !T .?
?.. R#AI%A PAS!UA$ Be(-Air +- APR A. +. !T .?
@-. PINTY BA$$A /est ? *UN .9 + %E! .?
@9. E$I#ABET" 4ENTURA /est 9+ MAR .- DEB .@ 8SI!:
@+. GRA!E S. PAR% /est @ APR .- 9? MAR .@
@?. RI! TIMSA Intr&'uros +A APR .? +A !T .?I
As e&r(ier noted, t0e (&2or &r2iter &nd, on &ppe&(, t0e N$R! ru(ed &)&inst
0erein petitioners. "en5e, t0is re5ourse to t0is !ourt.
T)! R+.#$/ o" ()! NLRC
In &11ir'in) t0e ru(in) o1 t0e (&2or &r2iter t0&t 0erein petitioners 5ou(d not 2e
dee'ed re)u(&r e'p(o3ees under Arti5(e +A- o1 t0e $&2or !ode, &s &'ended,
Respondent !o''ission r&tio5in&ted &s 1o((oFs:
G/e &)ree t0&t Art. +A- is not 5ontro((in) 0erein. /e )ive due 5reden5e to
t0e 5on5(usion t0&t 5o'p(&in&nts Fere 0ired &s &n &55o''od&tion to 8t0e:
re5o''end&tion o1 5ivi5 oriented person&(ities F0ose e'p(o3'ent8s: Fere
5overed 23 KKK E'p(o3'ent !ontr&5t8s: Fit0 spe5i&( provisions on
dur&tion o1 5ontr&5t &s spe5i1ied under Art. A-. "en5e, &s 5orre5t(3 0e(d 23
t0e $&2or Ar2iter & =uo, t0e ter's o1 t0e 5ontr&5t s0&(( 2e t0e (&F 2etFeen
t0e p&rties.I
T0e N$R! &(so de5(&red t0&t t0e M&)n& !&rt& 1or %is&2(ed Persons F&s not
&pp(i5&2(e, G5onsiderin) t0e prev&i(in) 5ir5u'st&n5esB'i(ieu o1 t0e 5&se.I
In t0eir Me'or&ndu', petitioners 5ite t0e 1o((oFin) )rounds in support o1
t0eir 5&use:
GI. T0e "onor&2(e !o''ission 5o''itted )r&ve &2use o1 dis5retion in
0o(din) t0&t t0e petitioners - 'one3 sorters &nd 5ounters ForCin) in & 2&nC
- Fere not re)u(&r e'p(o3ees.
GII. T0e "onor&2(e !o''ission 5o''itted )r&ve &2use o1
dis5retion in 0o(din) t0&t t0e e'p(o3'ent 5ontr&5ts si)ned &nd reneFed 23
t0e petitioners - F0i50 provide 1or & period o1 siK 6,7 'ont0s - Fere v&(id.
GIII. T0e "onor&2(e !o''ission 5o''itted )r&ve &2use o1
dis5retion in not &pp(3in) t0e provisions o1 t0e M&)n& !&rt& 1or t0e
%is&2(ed 6Repu2(i5 A5t No. ;+;;7, on pros5ription &)&inst dis5ri'in&tion
&)&inst dis&2(ed persons.I
In t0e '&in, t0e !ourt Fi(( reso(ve F0et0er petitioners 0&ve 2e5o'e re)u(&r
T)#' Co+,(' R+.#$/
T0e petition is 'eritorious. "oFever, on(3 t0e e'p(o3ees, F0o ForCed 1or
'ore t0&n siK 'ont0s &nd F0ose 5ontr&5ts Fere reneFed &re dee'ed
re)u(&r. "en5e, t0eir dis'iss&( 1ro' e'p(o3'ent F&s i((e)&(.
P,!.#0#$&,8 M&((!,: &roriety of -ertiorari
Respondent D&r E&st B&nC &nd Trust !o'p&n3 &r)ues t0&t & revieF o1 t0e
1indin)s o1 1&5ts o1 t0e N$R! is not &((oFed in & petition 1or
5ertior&ri. Spe5i1i5&((3, it '&int&ins t0&t t0e !ourt 5&nnot p&ss upon t0e 1indin)s o1
pu2(i5 respondents t0&t petitioners Fere not re)u(&r e'p(o3ees.
True, t0e !ourt, as a r!e, does not revieF t0e 1&5tu&( 1indin)s o1 pu2(i5
respondents in & certiorari pro5eedin). In reso(vin) F0et0er t0e petitioners 0&ve
2e5o'e re)u(&r e'p(o3ees, Fe s0&(( not 50&n)e t0e 1&5ts 1ound 23 t0e pu2(i5
respondent. ur t&sC is 'ere(3 to deter'ine F0et0er t0e N$R! 5o''itted )r&ve
&2use o1 dis5retion in &pp(3in) t0e (&F to t0e est&2(is0ed 1&5ts, &s &2ove-=uoted
1ro' t0e &ss&i(ed %e5ision.
M&#$ I''+!: Are &etitioners 'egular Emloyees.
Petitioners '&int&in t0&t t0e3 s0ou(d 2e 5onsidered re)u(&r e'p(o3ees,
2e5&use t0eir t&sC &s 'one3 sorters &nd 5ounters F&s ne5ess&r3 &nd desir&2(e to t0e
2usiness o1 respondent 2&nC. T0e3 1urt0er &((e)e t0&t t0eir 5ontr&5ts served 'ere(3
to pre5(ude t0e &pp(i5&tion o1 Arti5(e +A- &nd to 2&r t0e' 1ro' 2e5o'in) re)u(&r
Priv&te respondent, on t0e ot0er 0&nd, su2'its t0&t petitioners Fere 0ired on(3
&s Gspe5i&( ForCers &nd s0ou(d not in &n3 F&3 2e 5onsidered &s p&rt o1 t0e re)u(&r
5o'p(e'ent o1 t0e B&nC.I
R&t0er, t0e3 Fere Gspe5i&(I ForCers under Arti5(e A-
o1 t0e $&2or !ode. Priv&te respondent 5ontends t0&t it never so(i5ited t0e servi5es
o1 petitioners, F0ose e'p(o3'ent F&s 'ere(3 &n G&55o''od&tionI in response to
t0e re=uests o1 )overn'ent o11i5i&(s &nd 5ivi5-'inded 5itiHens. T0e3 Fere to(d
1ro' t0e st&rt, GFit0 t0e &ssist&n5e o1 )overn'ent represent&tives,I t0&t t0e3 5ou(d
not 2e5o'e re)u(&r e'p(o3ees 2e5&use t0ere Fere no p(&nti((& positions 1or
G'one3 sorters,I F0ose t&sC used to 2e per1or'ed 23 te((ers. T0eir 5ontr&5ts Fere
reneFed sever&( ti'es, not 2e5&use o1 need G2ut 'ere(3 1or 0u'&nit&ri&n
re&sons.I Respondent su2'its t0&t G&s o1 t0e present, t0e Rspe5i&( position> t0&t
F&s 5re&ted 1or t0e petitioners no (on)er eKist8s: in priv&te respondent 82&nC:, &1ter
t0e (&tter 0&d de5ided not to reneF &n3'ore t0eir spe5i&( e'p(o3'ent 5ontr&5ts.I
At t0e outset, (et it 2e CnoFn t0&t t0is !ourt &ppre5i&tes t0e no2i(it3 o1 priv&te
respondent>s e11ort to provide e'p(o3'ent to p03si5&((3 i'p&ired individu&(s &nd
to '&Ce t0e' 'ore produ5tive 'e'2ers o1 so5iet3. "oFever, Fe 5&nnot &((oF it
to e(ude t0e (e)&( 5onse=uen5es o1 t0&t e11ort, si'p(3 2e5&use it noF dee's t0eir
e'p(o3'ent irre(ev&nt. T0e 1&5ts, vieFed in (i)0t o1 t0e $&2or !ode &nd t0e
M&)n& !&rt& 1or %is&2(ed Persons, indu2it&2(3 s0oF t0&t t0e petitioners, eK5ept
siKteen o1 t0e', s0ou(d 2e dee'ed re)u(&r e'p(o3ees. As su50, t0e3 0&ve
&5=uired (e)&( ri)0ts t0&t t0is !ourt is dut3-2ound to prote5t &nd up0o(d, not &s &
'&tter o1 5o'p&ssion 2ut &s & 5onse=uen5e o1 (&F &nd Lusti5e.
T0e uni1or' e'p(o3'ent 5ontr&5ts o1 t0e petitioners stipu(&ted t0&t t0e3 s0&((
2e tr&ined 1or & period o1 one 'ont0, &1ter F0i50 t0e e'p(o3er s0&(( deter'ine
F0et0er or not t0e3 s0ou(d 2e &((oFed to 1inis0 t0e ,-'ont0 ter' o1 t0e
5ontr&5t. Durt0er'ore, t0e e'p(o3er '&3 ter'in&te t0e 5ontr&5t &t &n3 ti'e 1or &
Lust &nd re&son&2(e 5&use. Un(ess reneFed in Fritin) 23 t0e e'p(o3er, t0e 5ontr&5t
s0&(( &uto'&ti5&((3 eKpire &t t0e end o1 t0e ter'.
A55ordin) to priv&te respondent, t0e e'p(o3'ent 5ontr&5ts Fere prep&red in
&55ord&n5e Fit0 Arti5(e A- o1 t0e $&2or !ode, F0i50 provides:
GART. A-. E'p(o3'ent &)ree'ent. J An3 e'p(o3er F0o e'p(o3s
0&ndi5&pped ForCers s0&(( enter into &n e'p(o3'ent &)ree'ent Fit0 t0e',
F0i50 &)ree'ent s0&(( in5(ude:
6&7 T0e n&'es &nd &ddresses o1 t0e 0&ndi5&pped ForCers to 2e e'p(o3edE
627 T0e r&te to 2e p&id t0e 0&ndi5&pped ForCers F0i50 s0&(( 2e not (ess
t0&n sevent3 1ive 6;<M7 per 5ent o1 t0e &pp(i5&2(e (e)&( 'ini'u' F&)eE
657 T0e dur&tion o1 e'p(o3'ent periodE &nd
6d7 T0e ForC to 2e per1or'ed 23 0&ndi5&pped ForCers.
T0e e'p(o3'ent &)ree'ent s0&(( 2e su2Le5t to inspe5tion 23 t0e Se5ret&r3
o1 $&2or or 0is du(3 &ut0oriHed represent&tives.I
T0e stipu(&tions in t0e e'p(o3'ent 5ontr&5ts indu2it&2(3 5on1or' Fit0 t0e
&1ore5ited provision. Su55eedin) events &nd t0e en&5t'ent o1 RA No. ;+;; 6t0e
M&)n& !&rt& 1or %is&2(ed Persons7,
0oFever, Lusti13 t0e &pp(i5&tion o1 Arti5(e
+A- o1 t0e $&2or !ode.
Respondent 2&nC entered into t0e &1ores&id 5ontr&5t Fit0 & tot&( o1 <,
0&ndi5&pped ForCers &nd reneFed t0e 5ontr&5ts o1 ?; o1 t0e'. In 1&5t, tFo o1
t0e' ForCed 1ro' 9.AA to 9..?. 4eri(3, t0e reneF&( o1 t0e 5ontr&5ts o1 t0e
0&ndi5&pped ForCers &nd t0e 0irin) o1 ot0ers (e&d to t0e 5on5(usion t0&t t0eir t&sCs
Fere 2ene1i5i&( &nd ne5ess&r3 to t0e 2&nC. More i'port&nt, t0ese 1&5ts s0oF t0&t
t0e3 Fere,a!i%ied to per1or' t0e responsi2i(ities o1 t0eir positions. In ot0er
Fords, t0eir dis&2i(it3 did not render t0e' un=u&(i1ied or un1it 1or t0e t&sCs
&ssi)ned to t0e'.
In t0is (i)0t, t0e M&)n& !&rt& 1or %is&2(ed Persons '&nd&tes t0&t
& ,a!i%ied dis&2(ed e'p(o3ee s0ou(d 2e )iven t0e s&'e ter's &nd 5onditions o1
e'p(o3'ent &s & ,a!i%ied &2(e-2odied person. Se5tion < o1 t0e M&)n& !&rt&
GSe5tion <. E,a! Opportnit$ %or Emp!o$ment.QNo dis&2(ed person s0&((
2e denied &55ess to opportunities 1or suit&2(e e'p(o3'ent. A =u&(i1ied
dis&2(ed e'p(o3ee s0&(( 2e su2Le5t to t0e s&'e ter's &nd 5onditions o1
e'p(o3'ent &nd t0e s&'e 5o'pens&tion, privi(e)es, 2ene1its, 1rin)e
2ene1its, in5entives or &((oF&n5es &s & =u&(i1ied &2(e 2odied person.I
T0e 1&5t t0&t t0e e'p(o3ees Fere =u&(i1ied dis&2(ed persons ne5ess&ri(3
re'oves t0e e'p(o3'ent 5ontr&5ts 1ro' t0e &'2it o1 Arti5(e A-. Sin5e t0e M&)n&
!&rt& &55ords t0e' t0e ri)0ts o1 =u&(i1ied &2(e-2odied persons, t0e3 &re t0us
5overed 23 Arti5(e +A- o1 t0e $&2or !ode, F0i50 provides:
GART. +A-. Re)u(&r &nd !&su&( E'p(o3'ent. -- T0e provisions o1 Fritten
&)ree'ent to t0e 5ontr&r3 notFit0st&ndin) &nd re)&rd(ess o1 t0e or&(
&)ree'ent o1 t0e p&rties, &n e'p(o3'ent s0&(( 2e dee'ed to 2e re)u(&r
F0ere t0e e'p(o3ee 0&s 2een en)&)ed to per1or' &5tivities F0i50 &re
usu&((3 ne5ess&r3 or desir&2(e in t0e usu&( 2usiness or tr&de o1 t0e
e'p(o3er, eK5ept F0ere t0e e'p(o3'ent 0&s 2een 1iKed 1or & spe5i1i5
proLe5t or undert&Cin) t0e 5o'p(etion or ter'in&tion o1 F0i50 0&s 2een
deter'ined &t t0e ti'e o1 t0e en)&)e'ent o1 t0e e'p(o3ee or F0ere t0e
ForC or servi5es to 2e per1or'ed is se&son&( in n&ture &nd t0e e'p(o3'ent
is 1or t0e dur&tion o1 t0e se&son.
GAn e'p(o3'ent s0&(( 2e dee'ed to 2e 5&su&( i1 it is not 5overed 23 t0e
pre5edin) p&r&)r&p0: Provided, T0&t, &n3 e'p(o3ee F0o 0&s rendered &t
(e&st one 3e&r o1 servi5e, F0et0er su50 servi5e is 5ontinuous or 2roCen,
s0&(( 2e 5onsidered &s re)u(&r e'p(o3ee Fit0 respe5t to t0e &5tivit3 in
F0i50 0e is e'p(o3ed &nd 0is e'p(o3'ent s0&(( 5ontinue F0i(e su50
&5tivit3 eKists.I
T0e test o1 F0et0er &n e'p(o3ee is re)u(&r F&s (&id doFn in De Leon #.
in F0i50 t0is !ourt 0e(d:
GT0e pri'&r3 st&nd&rd, t0ere1ore, o1 deter'inin) re)u(&r e'p(o3'ent is t0e
re&son&2(e 5onne5tion 2etFeen t0e p&rti5u(&r &5tivit3 per1or'ed 23 t0e
e'p(o3ee in re(&tion to t0e usu&( tr&de or 2usiness o1 t0e e'p(o3er. T0e
test is F0et0er t0e 1or'er is usu&((3 ne5ess&r3 or desir&2(e in t0e usu&(
2usiness or tr&de o1 t0e e'p(o3er. T0e 5onne5tion 5&n 2e deter'ined 23
5onsiderin) t0e n&ture o1 t0e ForC per1or'ed &nd its re(&tion to t0e s50e'e
o1 t0e p&rti5u(&r 2usiness or tr&de in its entiret3. A(so i1 t0e e'p(o3ee 0&s
2een per1or'in) t0e Lo2 1or &t (e&st one 3e&r, even i1 t0e per1or'&n5e is not
5ontinuous &nd 'ere(3 inter'ittent, t0e (&F dee's repe&ted &nd 5ontinuin)
need 1or its per1or'&n5e &s su11i5ient eviden5e o1 t0e ne5essit3 i1 not
indispens&2i(it3 o1 t0&t &5tivit3 to t0e 2usiness. "en5e, t0e e'p(o3'ent is
5onsidered re)u(&r, 2ut on(3 Fit0 respe5t to su50 &5tivit3, &nd F0i(e su50
&5tivit3 eKists.I
/it0out & dou2t, t0e t&sC o1 5ountin) &nd sortin) 2i((s is ne5ess&r3 &nd
desir&2(e to t0e 2usiness o1 respondent 2&nC. /it0 t0e eK5eption o1 siKteen o1
t0e', petitioners per1or'ed t0ese t&sCs 1or 'ore t0&n siK 'ont0s. T0us, t0e
1o((oFin) tFent3-seven petitioners s0ou(d 2e dee'ed re)u(&r e'p(o3ees: M&rites
Bern&rdo, E(vir& Go %i&'&nte, Re2e55& E. %&vid, %&vid P. P&s5u&(, R&=ue(
Esti((er, A(2ert "&((&re, Ed'und M. !orteH, *ose(ito . A)don, Geor)e P. $i)ut&n
*r., $i(i2et0 Q. M&r'o(eLo, *ose E. S&(es, Is&2e( M&'&u&), 4io(et& G. Montes,
A(2ino Te5son, Me(od3 4. Grue(&, Bern&det0 %. A)ero, !3nt0i& de 4er&, $&ni R.
!orteH, M&. Is&2e( B. !on5ep5ion, M&r)&ret !e5i(i& !&noH&, T0e('& Se2&sti&n,
M&. *e&nette !erv&ntes, *e&nnie R&'i(, RoH&id& P&s5u&(, PinC3 B&(o(o&, E(iH&2et0
4entur& &nd Gr&5e S. P&rdo.
As 0e(d 23 t0e !ourt, GArti5(es +A- &nd +A9 o1 t0e $&2or !ode put &n end to
t0e perni5ious pr&5ti5e o1 '&Cin) per'&nent 5&su&(s o1 our (oF(3 e'p(o3ees 23 t0e
si'p(e eKpedient o1 eKtendin) to t0e' pro2&tion&r3 &ppoint'ents, ad
T0e 5ontr&5t si)ned 23 petitioners is &Cin to & pro2&tion&r3
e'p(o3'ent, durin) F0i50 t0e 2&nC deter'ined t0e e'p(o3ees> 1itness 1or t0e
Lo2. /0en t0e 2&nC reneFed t0e 5ontr&5t &1ter t0e (&pse o1 t0e siK-'ont0
pro2&tion&r3 period, t0e e'p(o3ees t0ere23 2e5&'e re)u(&r e'p(o3ees.
e'p(o3er is &((oFed to deter'ine inde1inite(3 t0e 1itness o1 its e'p(o3ees.
As re)u(&r e'p(o3ees, t0e tFent3-seven petitioners &re entit(ed to se5urit3 o1
tenureE t0&t is, t0eir servi5es '&3 2e ter'in&ted on(3 1or & Lust or &ut0oriHed
5&use. Be5&use respondent 1&i(ed to s0oF su50 5&use,
t0ese tFent3-seven
petitioners &re dee'ed i((e)&((3 dis'issed &nd t0ere1ore entit(ed to 2&5C F&)es &nd
reinst&te'ent Fit0out (oss o1 seniorit3 ri)0ts &nd ot0er privi(e)es.
t0e &((e)&tion o1 respondent t0&t t0e Lo2 o1 'one3 sortin) is no (on)er &v&i(&2(e
2e5&use it 0&s 2een &ssi)ned 2&5C to t0e te((ers to F0o' it ori)in&((3 2e(on)ed,
petitioners &re 0ere23 &F&rded sep&r&tion p&3 in (ieu o1 reinst&te'ent.
Be5&use t0e ot0er siKteen ForCed on(3 1or siK 'ont0s, t0e3 &re not dee'ed
re)u(&r e'p(o3ees &nd 0en5e not entit(ed to t0e s&'e 2ene1its.
Alicability of the B,!$( 'uling
Respondent 2&nC, 5itin) Brent Schoo! #. .amora
in F0i50 t0e !ourt up0e(d
t0e v&(idit3 o1 &n e'p(o3'ent 5ontr&5t Fit0 & 1iKed ter', &r)ues t0&t t0e p&rties
entered into t0e 5ontr&5t on e=u&( 1ootin). It &dds t0&t t0e petitioners 0&d in 1&5t &n
&dv&nt&)e, 2e5&use t0e3 Fere 2&5Ced 23 t0en %S/% Se5ret&r3 Mit& P&rdo de
T&ver& &nd Represent&tive Arturo BorL&(.
/e &re not persu&ded. T0e ter' (i'it in t0e 5ontr&5t F&s pre'ised on t0e 1&5t
t0&t t0e petitioners Fere dis&2(ed, &nd t0&t t0e 2&nC 0&d to deter'ine t0eir 1itness
1or t0e position. Indeed, its v&(idit3 is 2&sed on Arti5(e A- o1 t0e $&2or !ode. But
&s noted e&r(ier, petitioners proved t0e'se(ves to 2e ,a!i%ied dis&2(ed persons
F0o, under t0e M&)n& !&rt& 1or %is&2(ed Persons, &re entit(ed to ter's &nd
5onditions o1 e'p(o3'ent enLo3ed 23 ,a!i%ied &2(e-2odied individu&(sE 0en5e,
Arti5(e A- does not &pp(3 2e5&use petitioners &re ,a!i%ied 1or t0eir positions. T0e
v&(id&tion o1 t0e (i'it i'posed on t0eir 5ontr&5ts, i'posed 23 re&son o1 t0eir
dis&2i(it3, F&s & )(&rin) inst&n5e o1 t0e ver3 'is50ie1 sou)0t to 2e &ddressed 23 t0e
neF (&F.
Moreover, it 'ust 2e e'p0&siHed t0&t & 5ontr&5t o1 e'p(o3'ent is i'pressed
Fit0 pu2(i5 interest.
Provisions o1 &pp(i5&2(e st&tutes &re dee'ed Fritten into t0e
5ontr&5t, &nd t0e Gp&rties &re not &t (i2ert3 to insu(&te t0e'se(ves &nd t0eir
re(&tions0ips 1ro' t0e i'p&5t o1 (&2or (&Fs &nd re)u(&tions 23 si'p(3 5ontr&5tin)
Fit0 e&50 ot0er.I
!(e&r(3, t0e &)ree'ent o1 t0e p&rties re)&rdin) t0e period o1
e'p(o3'ent 5&nnot prev&i( over t0e provisions o1 t0e M&)n& !&rt& 1or %is&2(ed
Persons, F0i50 '&nd&te t0&t petitioners 'ust 2e tre&ted &s =u&(i1ied &2(e-2odied
Respondent>s re&son 1or ter'in&tin) t0e e'p(o3'ent o1 petitioners is
instru5tive. Be5&use t0e B&n)Co Sentr&( n) Pi(ipin&s 6BSP7 re=uired t0&t 5&s0 in
t0e 2&nC 2e turned over to t0e BSP durin) 2usiness 0ours 1ro' A:-- &.'. to <:--
p.'., respondent resorted to ni)0tti'e sortin) &nd 5ountin) o1 'one3. T0us, it
re&sons t0&t t0is t&sC G5ou(d not 2e done 23 de&1 'utes 2e5&use o1 t0eir p03si5&(
(i'it&tions &s it is ver3 risC3 1or t0e' to tr&ve( &t ni)0t.I
/e 1ind no 2&sis 1or t0is
&r)u'ent. Tr&ve((in) &t ni)0t invo(ves risCs to 0&ndi5&pped &nd &2(e-2odied
persons &(iCe. T0is eK5use 5&nnot Lusti13 t0e ter'in&tion o1 t0eir e'p(o3'ent.
O()!, G,o+$%' C#(!% 78 R!'3o$%!$(
Respondent &r)ues t0&t petitioners Fere 'ere(3 G&55o''od&tedI
e'p(o3ees. T0is 1&5t does not 50&n)e t0e n&ture o1 t0eir e'p(o3'ent. As e&r(ier
noted, &n e'p(o3ee is re)u(&r 2e5&use o1 t0e n&ture o1 ForC &nd t0e (en)t0 o1
servi5e, not 2e5&use o1 t0e 'ode or even t0e re&son 1or 0irin) t0e'.
E=u&((3 un&v&i(in) &re priv&te respondent>s &r)u'ents t0&t it did not )o out o1
its F&3 to re5ruit petitioners, &nd t0&t its p(&nti((& did not 5ont&in t0eir
positions. In L. T. Dat #. -LRC,
t0e !ourt 0e(d t0&t Gt0e deter'in&tion o1
F0et0er e'p(o3'ent is 5&su&( or re)u(&r does not depend on t0e Fi(( or Ford o1
t0e e'p(o3er, &nd t0e pro5edure o1 0irin) K K K 2ut on t0e n&ture o1 t0e &5tivities
per1or'ed 23 t0e e'p(o3ee, &nd to so'e eKtent, t0e (en)t0 o1 per1or'&n5e &nd its
5ontinued eKisten5e.I
Priv&te respondent &r)ues t0&t t0e petitioners Fere in1or'ed 1ro' t0e st&rt
t0&t t0e3 5ou(d not 2e5o'e re)u(&r e'p(o3ees. In 1&5t, t0e 2&nC &dds, t0e3 &)reed
Fit0 t0e stipu(&tion in t0e 5ontr&5t re)&rdin) t0is point. Sti((, Fe &re not
persu&ded. T0e Fe((-sett(ed ru(e is t0&t t0e 50&r&5ter o1 e'p(o3'ent is deter'ined
not 23 stipu(&tions in t0e 5ontr&5t, 2ut 23 t0e n&ture o1 t0e ForC per1or'ed.
t0erFise, no e'p(o3ee 5&n 2e5o'e re)u(&r 23 t0e si'p(e eKpedient o1
in5orpor&tin) t0is 5ondition in t0e 5ontr&5t o1 e'p(o3'ent.
In t0is (i)0t, Fe iter&te our ru(in) in Romares #. -LRC:
GArti5(e +A- F&s e'p(&5ed in our st&tute 2ooCs to prevent t0e
5ir5u'vention o1 t0e e'p(o3ee>s ri)0t to 2e se5ure in 0is tenure 23
indis5ri'in&te(3 &nd 5o'p(ete(3 ru(in) out &(( Fritten &nd or&( &)ree'ents
in5onsistent Fit0 t0e 5on5ept o1 re)u(&r e'p(o3'ent de1ined
t0erein. /0ere &n e'p(o3ee 0&s 2een en)&)ed to per1or' &5tivities F0i50
&re usu&((3 ne5ess&r3 or desir&2(e in t0e usu&( 2usiness o1 t0e e'p(o3er,
su50 e'p(o3ee is dee'ed & re)u(&r e'p(o3ee &nd is entit(ed to se5urit3 o1
tenure notFit0st&ndin) t0e 5ontr&r3 provisions o1 0is 5ontr&5t o1
GAt t0is Lun5ture, t0e (e&din) 5&se o1 Brent Schoo!, Inc. #. .amora proves
instru5tive. As re&11ir'ed in su2se=uent 5&ses, t0is !ourt 0&s up0e(d t0e
(e)&(it3 o1 1iKed-ter' e'p(o3'ent. It ru(ed t0&t t0e de5isive deter'in&nt in
Rter' e'p(o3'ent> s0ou(d not 2e t0e &5tivities t0&t t0e e'p(o3ee is 5&((ed
upon to per1or' 2ut t0e d&3 5ert&in &)reed upon t0e p&rties 1or t0e
5o''en5e'ent &nd ter'in&tion o1 t0eir e'p(o3'ent re(&tions0ip. But t0is
!ourt Fent on to s&3 t0&t F0ere 1ro' t0e 5ir5u'st&n5es it is &pp&rent t0&t
t0e periods 0&ve 2een i'posed to pre5(ude &5=uisition o1 tenuri&( se5urit3
23 t0e e'p(o3ee, t0e3 s0ou(d 2e stru5C doFn or disre)&rded &s 5ontr&r3 to
pu2(i5 po(i53 &nd 'or&(s.I
In renderin) t0is %e5ision, t0e !ourt e'p0&siHes not on(3 t0e 5onstitution&(
2i&s in 1&vor o1 t0e ForCin) 5(&ss, 2ut &(so t0e 5on5ern o1 t0e St&te 1or t0e p(i)0t o1
t0e dis&2(ed. T0e no2(e o2Le5tives o1 M&)n& !&rt& 1or %is&2(ed Persons &re not
2&sed 'ere(3 on 50&rit3 or &55o''od&tion, 2ut on Lusti5e &nd t0e e=u&( tre&t'ent
o1 ,a!i%ied persons, dis&2(ed or not. In t0e present 5&se, t0e 0&ndi5&p o1
petitioners 6de&1-'utes7 is not & 0indr&n5e to t0eir ForC. T0e e(o=uent proo1 o1
t0is st&te'ent is t0e repe&ted reneF&( o1 t0eir e'p(o3'ent 5ontr&5ts. /03 t0en
s0ou(d t0e3 2e dis'issed, si'p(3 2e5&use t0e3 &re p03si5&((3 i'p&iredV T0e !ourt
2e(ieves, t0&t, &1ter s0oFin) t0eir 1itness 1or t0e ForC &ssi)ned to t0e', t0e3
s0ou(d 2e tre&ted &nd )r&nted t0e s&'e ri)0ts (iCe &n3 ot0er re)u(&r e'p(o3ees.
In t0is (i)0t, Fe note t0e 11i5e o1 t0e So(i5itor Gener&(>s pr&3er Loinin) t0e
petitioners> 5&use.
HEREFORE, pre'ises 5onsidered, t0e Petition is 0ere23 +RA-TED. T0e
*une +-, 9..< %e5ision &nd t0e Au)ust @, 9..< Reso(ution o1 t0e N$R!
&re REVERSED &nd SET ASIDE. Respondent D&r E&st B&nC &nd Trust !o'p&n3 is
0ere23 ORDERED to p&3 2&5C F&)es &nd sep&r&tion p&3 to e&50 o1 t0e 1o((oFin)
tFent3-seven 6+;7 petitioners, n&'e(3, M&rites Bern&rdo, E(vir& Go %i&'&nte,
Re2e55& E. %&vid, %&vid P. P&s5u&(, R&=ue( Esti((er, A(2ert "&((&re, Ed'und M.
!orteH, *ose(ito . A)don, Geor)e P. $i)ut&n *r., $i(i2et0 Q. M&r'o(eLo, *ose E.
S&(es, Is&2e( M&'&u&), 4io(et& G. Montes, A(2ino Te5son, Me(od3 4. Grue(&,
Bern&det0 %. A)ero, !3nt0i& de 4er&, $&ni R. !orteH, M&. Is&2e( B. !on5ep5ion,
M&r)&ret !e5i(i& !&noH&, T0e('& Se2&sti&n, M&. *e&nette !erv&ntes, *e&nnie
R&'i(, RoH&id& P&s5u&(, PinC3 B&(o(o&, E(iH&2et0 4entur& &nd Gr&5e S.
P&rdo. T0e N$R! is 0ere23 dire5ted to 5o'pute t0e eK&5t &'ount due e&50 o1 s&id
e'p(o3ees, pursu&nt to eKistin) (&Fs &nd re)u(&tions, Fit0in 1i1teen d&3s 1ro' t0e
1in&(it3 o1 t0is %e5ision. No 5osts.