Labor Midterm Case Digests

University of San Carlos - College of Law
Labor Standards
Midterm Case
Digests
Atty. Jeferson M. Marque
Com!iled by" Ma. Ce#elia $imbal Ll%-& 'm ()&
University of San Carlos * College of Law Labor Standards Midterm Case
Digests
Contents
PASEI vs Torres (1992) G.R. 101279............................................................................ 2
San Juan de Dios Hospia! vs "#R$ (1997) G.R. 12%&'&.............................................&
A(S)$(" vs "a*areno (200%) G.R. 1%+1,%.................................................................9
-ran.is.o vs "#R$ (200%) ,00 S$RA %90 .................................................................11
"o/a!es e a!.0 vs $apio! 1edi.a! $ener (200%) G.R. 1+2%2,..................................12
$o.a)$o!a (o!ers P2i!s.0 vs Dr. $!i3a.o (2007) G.R. 1+%''1..................................1&
$a!a34a 1edi.a! $ener vs "#R$ (200') G.R. 17%+'+.............................................1&
5!!endor6 vs A4ra2a3son (191') G.R. 1&22'..........................................................1+
De! $asi!!o vs Ri.23ond (192+) G.R. #)21127.........................................................1,
P2i!ippine Te!e/rap2 7 Te!ep2one $o vs "#R$ (1997) G.R. 11'97'..........................1%
Sar Paper $orp.0 vs Si34o! (200%) G.R. 1%+77+......................................................1%
Rivera vs So!id4an8 (200%) G.R. 1%&2%9..................................................................17
E3p!o9ers $on:ederaion o: 2e P2i!s vs ";P$ (1991) 201 S$RA 7,9.....................20
1a4e*a vs "#R$ () 271 S$RA %70............................................................................21
Jo9 (ro2ers In..0 vs ";P$ (1997) 27& S$RA %22.....................................................22
1i!!ares e a!.0 vs "#R$ () &0, S$RA ,01...................................................................2+
Inernaiona! S.2oo! A!!ian.e o: Edu.aors vs <uisu34in/ (2000) &&& S$RA 1&......2,
(an8ard E3p!o9ees =nion vs "#R$ (200+) G.R. 1+0%'9..........................................2%
EJR $ra:s $orp.0 vs $A (200%).................................................................................. 2'
Sapio vs =nda!o. $onsru.ion (200') G.R. 1,,0&+.................................................&&
Hon. Se.rear9 o: #a4or vs Pana9 >eerans Se.uri9 and Invesi/aion A/en.9 (200')
G.R. 1%770'.............................................................................................................. &+
Peop!e?s (road.asin/ vs Se.rear9 o: D5#E (2009) G.R. 179%,2............................&,
P2i! Hoe!iers In..0 vs "aiona! =nion o: ;or8ers in Hoe! Resauran 7 A!!ied
Indusries @ Dusi Hoe! "i88o $2aper (2009) G.R. 1'1972.....................................&%
Gaa vs $our o: Appea!s (19',) 1+0 S$RA &0+........................................................&'
"es!e P2i!s In..0 vs "#R$ (1991) 19& S$RA ,0+.......................................................&9
-ive J TaAi vs "#R$ (1992) 2&, S$RA ,,%.................................................................+0
1ani!a E!e.ri. $o vs Se. o: #a4or (1999) G.R. 127,9'............................................+1
P2i!ippine >eerans (an8 vs "#R$ (1999) G.R. 1&0+&9............................................+1
P2i!ippine App!ian.e $orp.0 vs $our o: Appea!s (200+) G.R. 1+9+&+.......................+2
2
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Spe.ia! See! Produ.s vs >i!!area! (200+) G.R. 1+&&0+............................................+&
A/a4on vs "#R$ (200+) G.R. 1,'%9&.......................................................................++
A3eri.an ;ire 7 $a4!e Dai!9 Raed E3p!o9ees vs A3eri.an ;ire (200,) G.R.
1,,0,9..................................................................................................................... ++
Honda P2i!ippines In..0 vs Sa3a2an/ 1an//a/aBa sa Honda (200,) G.R. 1+,,%1. +,
Produ.ers (an8 vs "#R$ () &&, S$RA ,0%................................................................+,
Jardin vs "#R$ (2000) G.R. 1192%'..........................................................................+%
1ani!a Jo.8e9 $!u4 E3p!o9ees #a4or =nion vs 1ani!a Jo.8e9 $!u4 (2007) G.R.
1%7%01..................................................................................................................... +7
San 1i/ue! $orp.0 vs #a9o. Jr. E a!.0 (2007) G.R. 1+9%+0.........................................+7
San 1i/ue! $orp vs Poni!!as (200') G.R. 1,,17'.....................................................+7
Ar.o 1ea! Produ.s $o. In..0 e a!.0 vs Sa3a2an n/ 3/a 1an//a/aBa sa Ar.o 1ea!
@ "A-#= (200') G.R. 1707&+.................................................................................... +'
Genesis Transpor Servi.e e a!.0 vs =11 Genesis Transpor (2010) G.R. 1'211+....+'
$on/son vs "#R$ (199,) 2+& S$RA 2%0...................................................................+9
"or2 Davao 1inin/ vs "#R$ (199%) 2,+ S$RA 721.................................................,1
Si3e Dar49 Pi!ipinas In..0 vs "#R$ (199') 2'9 S$RA '%...........................................,&
P2i!ippine Air!ines vs "#R$ (1999) &02 S$RA ,'2.....................................................,+
#inon $o33er.ia! $o.0 vs He!!era (2007) G.R. 1%&1+7............................................,,
(isi/ 1an//a/aBa sa Tr9.o vs "#R$ (200') G.R. 1,1&09........................................,%
=nion -i!ipro E3p!o9ees vs >ivar (1992) 20, S$RA 20&...........................................,7
"aiona! Su/ar ReCner9 $orp vs "#R$ (199&) 220 S$RA +,2...................................,'
Sa!a*ar vs "#R$ (199%) 2,% S$RA 27&.....................................................................%0
#a4or $on/ress o: 2e P2i!ippines vs "#R$ (199') G.R. 12&9&'...............................%1
1er.idar -is2in/ $orp.0 vs "#R$ (199') G.R. 112,7+...............................................%2
San 1i/ue! $orp.0 vs $our o: Appea!s (2002) G.R. 1+%77,......................................%2
Tan vs #a/ara3a (2002) G.R. 1,122'.......................................................................%&
#a34o vs "#R$ (1999) &17 S$RA +20......................................................................%&
R7E Transpor vs #aa/ (200+) G.R. 1,,21+.............................................................%&
Asian Trans3ission vs $our o: Appea!s (200+) +2, S$RA +7'.................................%+
Auo4us Transpor S9se3 vs (auisa (200,) G.R. 1,%&%+.....................................%,
San 1i/ue! $orp.0 vs De! Rosario (200,) G.R. 1%'19+..............................................%%
Penaranda vs (a/an/a P!9Bood $orp (200%) G.R. 1,9,77.......................................%7
3
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
House o: Sara #ee vs Re9 (200%) G.R. 1+901&.........................................................%'
#e9e I> E!e.ri. $ooperaive In..0 vs #EDE$5 I> E3p!o9ees =nion @ A#= (2007) G.R.
1,777,..................................................................................................................... %9
San 1i/ue! $orp.0 e a!.0 vs #a9o.0 Jr.0 e a!.0 (2007) G.R. 1+9%+0.............................70
(a2ia S2ippin/ Servi.es In..0 vs $2ua (200') G.R. 1%219,......................................71
P"$$ S89Ba9 TraE. 1ana/e3en 7 Se.uri9 Division ;or8ers 5r/ani*aion vs P"$$
S89Ba9 $orp.0 (2010) G.R. 1712&1........................................................................... 71
Panran.o "or2 EApress vs "#R$ (199%) 2,9 S$RA 1%1..........................................72
R7E Transpor vs #aa/ (200+) G.R. 1,,21+.............................................................7&
Ger!a.2 vs Reuers #d.0 P2i!s.0 (200,) G.R. 1+',+2.................................................7&
Honda P2i!s.0 In..0 vs Sa3a2an n/ 1a!a9an/ 1an//a/aBa sa Honda (200,) G.R.
1+,,%1..................................................................................................................... 7,
Ja.u!4e vs Si!i3an =niversi9 (2007) G.R. 1,%9&+....................................................7,
Iner.oninena! (road.asin/ $orp.0 vs A3ari!!a (200%) G.R. 1%277,......................7%
Re9es vs "#R$ (2007) G.R. 1%02&&..........................................................................7'
P2i!ippine Air!ines In.. vs P2i!. Air!ines E3p!o9ees Asso.iaion (200') G.R. 1+2&99. 79
Ar.o 1ea! Produ.s $o. In..0 e a!.0 vs Sa3a2an n/ 3/a 1an//a/aBa sa Ar.o 1ea!
@ "A-#= (200') G.R. 1707&+.................................................................................... '0
=niversa! Su/ar 1i!!in/ $orp.0 vs $a4a!!eda (2009) G.R. 1,%%++..............................'0
TFS/. #ar8ins vs "#R$ (199,) G.R. 92+&2................................................................'1
=ER1 1e3oria! 1edi.a! $ener vs "#R$ (1997) G.R. 110++19................................'&
P2i!ran.o Servi.es vs "#R$ (199') G.R. 12+100.....................................................'+
S. 1arin -unera! Ho3es vs "#R$ (199') G.R. 1&0'%%............................................'+
#udo 7 #u93 $orp.0 vs Saornido (200&) G.R. 1+0%90...............................................',
HanGin En/ineerin/ and $onsru.ion $o. #d. vs $our o: Appea!s (200%) G.R.
1%,910..................................................................................................................... '%
P2i!. Journa!isi. In..0 vs "#R$ (200%) G.R. 1%%+21...................................................'7
(a!a/as 1u!i)Purpose $oop vs $our o: Appea!s (200%) G.R. 1,92%'....................''
S. 1arin -unera! Ho3es vs "#R$ (200%) G.R. 1+2&,1............................................''
D5#E P2i!s. vs Eseva (200%) G.R. 1%111,...............................................................'9
Iner.oninena! (road.asin/ $orp.0 vs Pan/ani4an (2007) G.R. 1,1+07................'9
-ar Eas A/ri.u!ura! Supp!9 vs #e4ai/ue (2007) G.R. 1%2'1&.................................91
#eran $a!a34a -a.u!9 7 E3p!o9ees Asso.iaion vs "#R$ (200') G.R. 1,%22,......91
1ero Transi 5r/ani*aion vs Pi/!as "-;=)H1= e a!.0 (200') G.R. 17,+%0............91
4
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
5
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
+AS,- vs $orres ./00&1 2.'. /)/&30
4a#ts"
PASIE is 2e !ar/es naiona! or/ani*aion o: privae e3p!o93en and re.rui3en
a/en.ies du!9 !i.ensed and au2ori*ed 49 2e P5EA0 o en/a/e in 2e 4usiness o:
6
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
o4ainin/ overseas e3p!o93en :or -i!ipino !and)4ased Bor8ers0 in.!udin/ do3esi.
2e!pers.
5n June 19910 as a resu! o: pu4!is2ed sories re/ardin/ 2e a4uses su6ered 49 -i!ipino
2ouse3aids e3p!o9ed in Hon/ Hon/0 D5#E Se.rear9 Ru4en Torres issued Depar3en
5rder "o. 1%0 Series o: 19910 e3porari!9 suspendin/ 2e re.rui3en 49 privae
e3p!o93en a/en.ies o: I-i!ipino do3esi. 2e!pers /oin/ o Hon/ Hon/I. T2e D5#E
ise!:0 2rou/2 2e P5EA oo8 over 2e 4usiness o: dep!o9in/ su.2 Hon/ Hon/)4ound
Bor8ers.
Pursuan o 2e a4ove D5#E .ir.u!ar0 2e P5EA issued 1e3orandu3 $ir.u!ar "o. &00
Series o: 19910 providin/ G=IDE#I"ES on 2e Govern3en pro.essin/ and dep!o93en o:
-i!ipino do3esi. 2e!pers o Hon/ Hon/ and 2e a..rediaion o: Hon/ Hon/ re.rui3en
a/en.ies inendin/ o 2ire -i!ipino do3esi. 2e!pers.
Pursuan o 2e previous issuan.es0 2e P5EA Ad3inisraor a!so issued 1e3orandu3
$ir.u!ar "o. &70 Series o: 19910 on 2e pro.essin/ o: e3p!o93en .onra.s o: do3esi.
Bor8ers :or Hon/ Hon/.
-ssues"
1. ;5" respondens a.ed Bi2 /rave a4use o: dis.reion andFor in eA.ess o: 2eir
ru!e)3a8in/ au2ori9 in issuin/ said .ir.u!arsJ
2. ;5" 2a 2e assai!ed D5#E and P5EA .ir.u!ars are .onrar9 o 2e $onsiuion0
are unreasona4!e0 un:air and oppressiveJ
5eld" T2e9 are in a..ordan.e 4u !e/a!!9 inva!id0 de:e.ive and unen:or.ea4!e :or !a.8 o:
poBer pu4!i.aion and C!in/ in 2e 5E.e o: 2e "aiona! Ad3inisraive Re/iser as
reKuired in Ar 2 o: $$0 Ar , o: 2e #a4or $ode and Se. &(1) and +0 $2ap 20 (oo8 >II o:
2e Ad3inisraive $ode o: 19'7.
1. Ari.!e &% o: 2e #a4or $ode /rans 2e #a4or Se.rear9 2e poBer o resri. and
re/u!ae re.rui3en and p!a.e3en a.iviies. 5n 2e o2er 2and0 2e s.ope o:
2e re/u!aor9 au2ori9 o: 2e P5EA0 B2i.2 Bas .reaed 49 EAe.uive 5rder "o.
797 on 1a9 10 19'2 o a8e over 2e :un.ions o: 2e 5verseas E3p!o93en
Deve!op3en (oard0 2e "aiona! Sea3en (oard0 and 2e overseas e3p!o93en
:un.ions o: 2e (ureau o: E3p!o93en Servi.es0 is 4road and :ar)ran/in/ as
provided 49 Ari.!es 1,0 17 and 20 o: 2e #a4or $ode.
2. T2e vesure o: Kuasi)!e/is!aive and Kuasi)Gudi.ia! poBers in ad3inisraive 4odies
is no un.onsiuiona!0 unreasona4!e and oppressive. I 2as 4een ne.essiaed 49
I2e /roBin/ .o3p!eAi9 o: 2e 3odern so.ie9I (So!id Ho3es0 In.. vs. Pa9aBa!).
1ore and 3ore ad3inisraive 4odies are ne.essar9 o 2e!p in 2e re/u!aion o:
so.ie9Ls ra3iCed a.iviies. I is noeBor29 2a 2e assai!ed .ir.u!ars do no
pro2i4i 2e peiioner :ro3 en/a/in/ in 2e re.rui3en and dep!o93en o:
-i!ipino !and4ased Bor8ers :or overseas e3p!o93en. T2e poBer o Iresri. and
re/u!ae .on:erred 49 Ari.!e &% o: 2e #a4or $ode invo!ves a /ran o: po!i.e
7
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
poBer. T2e Kuesioned .ir.u!ars are 2ere:ore a va!id eAer.ise o: 2e po!i.e poBer
as de!e/aed o 2e eAe.uive 4ran.2 o: Govern3en.
San Juan de Dios 5os!ital vs 6L'C ./0031 2.'. /&7898
4a#ts"
Peiioners0 ran8)and)C!e e3p!o9ees and 3e34ers o: San Juan de Dios Hospia!
E3p!o9ees Asso.iaion sen a + pa/e !eer reKuesin/ and p!eadin/ :or 2e eApediious
i3p!e3enaion and pa93en 49 2e responden Hospia! o: 2e ?+0 H5=RSF,)DAD
;5RH;EEH? Bi2 .o3pensa4!e Bee8!9 Bo (2) da9s o6 provided :or 49 Repu4!i. A.
,901 as .!ariCed :or en:or.e3en 49 2e Se.rear9 o: #a4or?s Po!i.9 Insru.ions "o. ,+
daed Apri! 120 19''.M Responden 2ospia! :ai!ed o /ive a :avoura4!e responseN 2us0
peiioners C!ed a .o3p!ain re/ardin/ 2eir O.!ai3s :or sauor9 4eneCs under 2e
a4ove).ied !aB and po!i.9 issuan.eM. T2e #a4or Ar4ier dis3issed 2e .o3p!ain B2i.2
Bas a!so .onCr3ed 49 "#R$0 2en.e 2e peiion under Ru!e %, o: 2e Ru!es o: $our.
-ssue" ;5" Po!i.9 Insru.ions "o. ,+ issued 49 2en #a4or Se.rear9 -ran8!in Dri!on is
va!idJ
5eld" I is inva!id.
T2e Po!i.9 Insru.ion "o. ,+ re!ies and purpors o i3p!e3en Repu4!i. A. "o. ,9010
o2erBise 8noBn as OAn A. Pres.ri4in/ -or9 Hours A ;ee8 5: #a4or -or Govern3en
and Privae Hospia!s 5r $!ini. Personne!M0 4u re!ian.e o 2is RA is 3isp!a.ed sin.e i
2as !on/ 4een repea!ed Bi2 2e passa/e o: 2e #a4or $ode. A..ordin/!90 on!9 Ari.!e '&
o: 2e #a4or $ode B2i.2 appears o 2ave su4sania!!9 in.orporaed or reprodu.ed 2e
4asi. provisions o: Repu4!i. A. "o. ,901 3a9 suppor Po!i.9 Insru.ions "o. ,+ on
B2i.2 2e !aer?s va!idi9 3a9 4e /au/ed.
;2a Ari.!e '& 3ere!9 provides areP (1) 2e re/u!ar oE.e 2our o: ei/2 2ours a da90
Cve da9s per Bee8 :or 2ea!2 personne!0 and (2) B2ere 2e eAi/en.ies o: servi.e reKuire
2a 2ea!2 personne! Bor8 :or siA da9s or :or9)ei/2 2ours 2en su.2 2ea!2 personne!
s2a!! 4e eni!ed o an addiiona! .o3pensaion o: a !eas 2ir9 per.en o: 2eir re/u!ar
Ba/e :or Bor8 on 2e siA2 da9. T2ere is no2in/ in 2e !aB 2a suppors 2en Se.rear9
o: #a4or?s asserion 2a Opersonne! in su4Ge. 2ospia!s and .!ini.s are eni!ed o a :u!!
Bee8!9 Ba/e :or seven (7) da9s i: 2e9 2ave .o3p!eed 2e +0)2ourF,)da9 Bor8Bee8 in
an9 /iven Bor8Bee8M.
-ur2er0 peiionersL posiion is a!so ne/aed 49 2e ver9 ru!es and re/u!aions
pro3u!/aed 49 2e (ureau o: #a4or Sandards B2i.2 i3p!e3en Repu4!i. A. "o. ,901.
Perinen porions o: 2e i3p!e3enin/ ru!es provided in Se.ions 1070 and 1, o: 2e said
A..
I: peiioners are eni!ed o Bo da9s o6 Bi2 pa90 2en 2ere appears o 4e no sense a
a!! B29 Se.ion 1, o: 2e i3p!e3enin/ ru!es /rans addiiona! .o3pensaion eKuiva!en
o 2e re/u!ar rae p!us a !eas Ben9)Cve per.en 2ereo: :or Bor8 per:or3ed on
8
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Sunda9 o 2ea!2 personne!0 or an Oaddiiona! srai/2)i3e pa9 B2i.2 3us 4e
eKuiva!en a !eas o 2e re/u!ar raeM OQ:Ror Bor8 per:or3ed in eA.ess o: :or9 2ours a
Bee8 AAA. Po!i.9 Insru.ions "o. ,+ o our 3ind undu!9 eAended 2e saue. T2e
Se.rear9 o: #a4or 3oreover erred in invo8in/ 2e Ospiri and inenM o: Repu4!i. A. "o.
,901 and Ari.!e '& o: 2e #a4or $ode :or i is an e!e3enar9 ru!e o: sauor9
.onsru.ion 2a B2en 2e !an/ua/e o: 2e !aB is .!ear and uneKuivo.a!0 2e !aB 3us
4e a8en o 3ean eAa.!9 B2a i sa9s.
Letran Calamba 4a#ulty and ,m!loyees Asso#iation vs 6L'C ./0031 2.'.
/:7&&:
4a#ts"
T2e #eran $a!a34a -a.u!9 and E3p!o9ees Asso.iaion (peiioner) C!ed a .o3p!ain
a/ains $o!e/io de San Juan de #eran0 $a!a34a0 In.. (responden) :or .o!!e.ion o:
various 3onear9 .!ai3s due is 3e34ers. T2e #a4or Ar4ier (#A) 2and!in/ 2e
.onso!idaed .ases0 denied and dis3issed 2e respe.ive .o3p!ains.
-ssue" ;5" 2e pa9 o: 2e :a.u!9 3e34ers :or ea.2in/ over!oads s2ou!d 4e in.!uded
as 4asis in 2e .o3puaion o: 2eir 1&
2
3on2 pa9J
5eld" Tea.2in/ over!oad 3a9 no 4e .onsidered par o: 4asi. sa!ar9.
=nder 2e Ru!es and Re/u!aions I3p!e3enin/ PD ',10 2e :o!!oBin/ .o3pensaions are
dee3ed no par o: 2e 4asi. sa!ar9P a) .os)o:)!ivin/ a!!oBan.es /raned pursuan o PD
,2, and #eer o: Insru.ion "o. 17+N 4) proC s2arin/ pa93ensN .) a!! a!!oBan.es and
3onear9 4eneCs B2i.2 are no .onsidered or ine/raed as par o: 2e re/u!ar 4asi.
sa!ar9 o: 2e e3p!o9ee a 2e i3e o: 2e pro3u!/aion o: 2e De.ree on De. 1%0 197,.
=nder a !aer se o: Supp!e3enar9 Ru!es and Re/u!aions I3p!e3enin/ PD ',1 issued
49 2e 2en #a4or Se.rear9 (!as 5p!e0 overi3e pa90 earnin/s and o2er re3uneraions
are eA.!uded as par o: 2e 4asi. sa!ar9 and in 2e .o3puaion o: 2e 1&
2
)3on2 pa9.
T2e a!!)e34ra.in/ p2rase Iearnin/s and o2er re3uneraionsI B2i.2 are dee3ed no
par o: 2e 4asi. sa!ar9 in.!udes Bi2in is 3eanin/ pa93ens :or si.80 va.aion0 or
3aerni9 !eaves0 pre3iu3 :or Bor8s per:or3ed on res da9s and spe.ia! 2o!ida9s0 pa9
:or re/u!ar 2o!ida9s and ni/2 di6erenia!s. As su.2 2e9 are dee3ed no par o: 2e
4asi. sa!ar9 and s2a!! no 4e .onsidered in 2e .o3puaion o: 2e 1&
2
)3on2 pa9.
As provided :or 49 Ar '7 o: 2e #a4or $ode0 i is .!ear 2a overi3e pa9 is an additional
compensation o2er 2an and added o 2e re/u!ar Ba/e or 4asi. sa!ar90 :or reason o:
B2i.2 su.2 is .ae/ori.a!!9 eA.!uded :ro3 2e deCniion o: 4asi. sa!ar9 under 2e
Supp!e3enar9 Ru!es and Re/u!aions I3p!e3enin/ PD ',1.
In 2e sa3e 3anner 2a pa93en :or overi3e Bor8 and Bor8 per:or3ed durin/ spe.ia!
2o!ida9s is .onsidered as addiiona! .o3pensaion apar and disin. :ro3 an
e3p!o9eeLs re/u!ar Ba/e or 4asi. sa!ar90 an over!oad pa90 oBin/ o is ver9 naure and
deCniion0 3a9 no 4e .onsidered as par o: a ea.2erLs re/u!ar or 4asi. sa!ar90 4e.ause
i is 4ein/ paid :or addiiona! Bor8 per:or3ed in eA.ess o: 2e re/u!ar ea.2in/ !oad.
9
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Asun#ion vs 6L'C .&))/1 2.'. /&08&0
4a#ts"
5n Au/ 199&0 Asun.ion Bas e3p!o9ed as an a..ounanF4oo88eeper 49 2e responden
(1a4ini 1edi.a! $!ini.). A:er 2e inspe.ion .ondu.ed in 2e responden?s .o3pan9
pre3ises :or a vio!aion o: 2e !4or sandards :or non).overa/e0 on Au/ 199+0 privae
responden0 1edi.a! Dire.or ;i:rido Ju.o issued a 3e3orandu3 o peiioner .2ar/in/
2er Bi2 .2roni. a4seneeis30 2a4iua! ardiness0 !oierin/ and Basin/ o: .o3pan9
i3e0 /ein/ sa!ar9 o: an a4sen e3p!o9ee Bi2ou a.8noB!ed/in/ or si/nin/ :or i0 and
diso4edien.e and insu4ordinaion :or .oninued re:usa! o: si/nin/ 3e3os /iven o 2er.
Peiioner Bas 2en reKuired o eAp!ain Bi2in 2 da9s B29 s2e Bi!! no 4e er3inaed.
T2ree da9s !aer0 peiioner su43ied 2er response o 2e 3e3o 4u Bas a!so dis3issed
on /round o: diso4edien.e o: !aB:u! orders and :ai!ure o su43i 2er rep!9 in 2 da9s. T2is
pro3ped peiioner o C!e :or a .ase o: i!!e/a! er3inaion B2i.2 Bas Gud/ed 49 2e
#a4or Ar4ier o 4e rue.
-ssue" ;5" "#R$ erred in Cndin/ 2a 2e peiioner Bas dis3issed 49 2e privae
responden :or a Gus or au2ori*ed .auseJ
5eldP Peiioner 2as 4een i!!e/a!!9 er3inaedN s2e is ne.essari!9 eni!ed o
reinsae3en o 2er :or3er previous posiion Bi2ou !oss o: seniori9 and 2e pa93en
o: 4a.8Ba/es.
I 4ears sressin/ 2a a Bor8er?s e3p!o93en is proper9 in 2e .onsiuiona! sense.
He .anno 4e deprived o: 2is Bor8 Bi2ou due pro.ess. In order :or 2e dis3issa! o 4e
va!id0 no on!9 3us i 4e 4ased on Gus .ause suppored 49 .!ear and .onvin.in/
eviden.e0 2e e3p!o9ee 3us a!so 4e /iven an opporuni9 o 4e 2eard and de:end
2i3se!:. I is 2e e3p!o9er B2o 2as 2e 4urden o: provin/ 2a 2e dis3issa! Bas Bi2
Gus or au2ori*ed .ause. T2e :ai!ure o: 2e e3p!o9er o dis.2ar/e 2is 4urden 3eans
2a 2e dis3issa! is no GusiCed and 2a 2e e3p!o9ee is eni!ed o reinsae3en and
4a.8 Ba/es.
In 2e .ase a 4ar0 4o2 2e 2andBrien !isin/ and .o3puer prin)ous 4ein/ unsi/ned0
2e au2eni.i9 2ereo: is 2i/2!9 suspe. and devoid o: an9 raiona! pro4aive va!ue
espe.ia!!9 in 2e !i/2 o: 2e eAisen.e o: 2e oE.ia! re.ord 4oo8 o: 2e peiioner?s
a!!e/ed a4sen.es and ardiness in 2e possession o: 2e e3p!o9er .o3pan9. In 2e
3e3orandu3 .2ar/in/ peiioner and noi.e o: er3inaion0 privae respondens
re:erred o 2e re.ord 4oo8 as is 4asis :or peiioner?s a!!e/ed a4seneeis3 and
ardiness. Ineresin/!90 2oBever0 2e re.ord 4oo8 Bas never presened in eviden.e.
Privae respondens 2ad possession 2ereo: and 2e opporuni9 o presen 2e
sa3e. T2us0 privae respondens? uneAp!ained and unGusiCed non)presenaion o: 2e
re.ord 4oo80 B2i.2 is 2e 4es eviden.e in is possession and .onro! o: 2e .2ar/es
a/ains 2e peiioner0 .ass serious dou4s on 2e :a.ua! 4asis o: 2e .2ar/es o:
a4seneeis3 and ardiness. Privae respondens .!ai3ed 2a 2e9 sen severa! noi.es
o 2e peiioner Barnin/ 2er o: 2er a4sen.es0 2oBever0 peiioner re:used o re.eive 2e
sa3e. T2e $our0 !i8eBise0 a8es noe o: 2e :a. 2a 2e Bo)da9 period /iven o
peiioner o eAp!ain and ansBer 2e .2ar/es a/ains 2er Bas 3os unreasona4!e0
.onsiderin/ 2a s2e Bas .2ar/ed Bi2 severa! o6enses and in:ra.ions (&, a4sen.es0 2&
2a!:)da9s and 10' ardiness)0 so3e o: B2i.2 Bere a!!e/ed!9 .o33ied a!3os a 9ear
4e:ore0 no o 3enion 2e :a. 2a 2e .2ar/es !eve!!ed a/ains 2er !a.8ed pari.u!ari9.
T2e !aB 3andaes 2a ever9 opporuni9 and assisan.e 3us 4e a..orded o 2e
e3p!o9ee 49 2e 3ana/e3en o ena4!e 2i3 o prepare adeKuae!9 :or 2is de:ense. In
10
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Rufy v. NLRC, 2e $our 2e!d 2a B2a Bou!d Kua!i:9 as suE.ien or Oa3p!e
opporuni90M as reKuired 49 !aB0 Bou!d 4e Oever9 8ind o: assisan.e 2a 3ana/e3en
3us a..ord o 2e e3p!o9ee o ena4!e 2i3 o prepare adeKuae!9 :or 2is de:ense.M
Singer Sewing Ma#;ine vs 6L'C .1 /08 SC'A &3/
4a#ts"
Sin/er 1a.2ine $o!!e.ors =nion)(a/uio C!ed a peiion :or dire. .eriC.aion as 2e so!e
and eA.!usive 4ar/ainin/ a/en o: a!! .o!!e.ors o: Sin/er SeBin/ 1a.2ine. T2e .o3pan9
opposed 2e peiion 3ain!9 4e.ause 2e union 3e34ers are no e3p!o9ees 4u
independen .onra.ors as eviden.ed 49 2e .o!!e.ion a/en.9 a/ree3en B2i.2 2e9
si/ned.
1ed)Ar4ier ru!ed 2a 2ere eAiss an e3p!o9ee)e3p!o9er re!aions2ip and /raned 2e
.eriC.aion e!e.ion B2i.2 Bas aEr3ed 49 Se.. Dri!on. T2e .o3pan9 C!es 2e presen
peiion on 2e deer3inaion o: 2e re!aions2ip. T2e union insis 2a 2e provisions o:
2e $o!!e.ion A/ree3en 4e!ie 2e .o3pan9?s posiion 2a 2e union 3e34ers are
independen .onra.ors.
-ssue" ;5" 2ere eAiss an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen 2e paries.
5eld" Respondens are no e3p!o9ees o: 2e .o3pan9.
11
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2e presen .ase .a!!s :or 2e app!i.aion o: 2e .onro! es0 B2i.2 i: no saisCed0 Bou!d
!ead o 2e .on.!usion 2a no e3p!o9ee)e3p!o9er re!aions2ip eAiss. I: 2e union
3e34ers are no e3p!o9ees0 no ri/2 o or/ani*e :or 2e purpose o: 4ar/ainin/ or as a
4ar/ainin/ a/en .anno 4e re.o/ni*ed.
T2e :o!!oBin/ e!e3ens are /enera!!9 .onsidered in 2e deer3inaion o: 2e
re!aions2ipP 2e se!e.ion and en/a/e3en o: 2e e3p!o9ee0 pa93en o: Ba/es0 poBer
o: dis3issa! and 2e poBer o .onro! 2e e3p!o9ee?s .ondu. B2i.2 is 2e 3os
i3poran e!e3en.
T2e naure o: 2e re!aions2ip 4eBeen a .o3pan9 and is .o!!e.in/ a/ens depends on
2e .ir.u3san.es o: ea.2 pari.u!ar re!aions2ip. "o a!! .o!!e.in/ a/ens are
e3p!o9ees and nei2er are a!! .o!!e.in/ a/ens independen .onra.ors. T2e
a/ree3en .onCr3s 2e saus o: 2e .o!!e.in/ a/ens as independen .onra.or. T2e
reKuire3en 2a .o!!e.ion a/ens ui!i*e on!9 re.eip :or3s and repor :or3s issued 49
2e .o3pan9 and 2a repors s2a!! 4e su43ied a !eas on.e a Bee8 is no ne.essari!9
an indi.aion o: .onro! over 2e 3eans 49 B2i.2 2e Go4 .o!!e.ion is o 4e per:or3ed.
Even i: repor reKuire3ens are o 4e .a!!ed .onro! 3easures0 an9 .onro! is on!9 Bi2
respe. o 2e end resu! o: 2e .o!!e.ion sin.e 2e reKuire3ens re/u!ae 2e 2in/s o
4e done a:er 2e per:or3an.e o: 2e .o!!e.ion Go4 or 2e rendiion o: servi.e.
T2e p!ain !an/ua/e o: 2e a/ree3en revea!s 2a 2e desi/naion as .o!!e.ion a/en
does no .reae an e3p!o93en re!aions2ip and 2a 2e app!i.an is o 4e .onsidered
a a!! i3es as an independen .onra.or.
T2e .our Cnds 2a sin.e privae respondens are no e3p!o9ees o: 2e .o3pan90 2e9
are no eni!ed o 2e .onsiuiona! ri/2 o :or3 or Goin a !a4or or/ani*aion :or 2e
purposes o: .o!!e.ive 4ar/ainin/. T2ere is no .onsiuiona! and !e/a! 4asis :or 2eir
union o 4e /raned 2eir peiion :or dire. .eriC.aion.
Manila 2olf < Country Club= -n#.= vs -AC and 4ermin Llamar ./00(1 2.'. 7(0(9
4a#ts"
Respondens Bere .addies and e3p!o9ees o: 1ani!a Go!: 7 $ounr9 $!u4 B2o ori/ina!!9
C!ed a peiion Bi2 2e So.ia! Se.uri9 $o33ission (SS$) :or .overa/e and avai!3en o:
4eneCs under 2e So.ia! Se.uri9 A.. T2e9 a!!e/ed 2a a!2ou/2 2e peiioners Bere
e3p!o9ees o: 2e 1ani!a Go!: and $ounr9 $!u40 a do3esi. .orporaion0 2e !aer 2ad
no re/isered 2e3 as su.2 Bi2 2e SSS.
12
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
In 2e .ase 4e:ore 2e SS$0 2e responden $!u4 a!!e/ed 2a 2e peiioners0 .addies 49
o..upaion0 Bere a!!oBed ino 2e $!u4 pre3ises o render servi.es as su.2 o 2e
individua! 3e34ers and /uess p!a9in/ 2e $!u4Ls /o!: .ourse and B2o 2e3se!ves paid
:or su.2 servi.esN 2a as su.2 .addies0 2e peiioners Bere no su4Ge. o 2e dire.ion
and .onro! o: 2e $!u4 as re/ards 2e 3anner in B2i.2 2e9 per:or3ed 2eir Bor8N and
2en.e0 2e9 Bere no 2e $!u4Ls e3p!o9ees.
-ssue" ;5" 2ere eAis an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen 2e .adies and 2e
Go!: $!u4J
5eld" "o eAisen.e o: e3p!o9er)e3p!o9ee re!aions2ip.
In 2e ver9 naure o: 2in/s0 .addies 3us su43i o so3e supervision o: 2eir .ondu.
B2i!e enGo9in/ 2e privi!e/e o: pursuin/ 2eir o..upaion Bi2in 2e pre3ises and
/rounds o: B2aever .!u4 2e9 do 2eir Bor8 in. -or a!! 2a is 3ade o appear0 2e9
Bor8 :or 2e .!u4 o B2i.2 2e9 aa.2 2e3se!ves on su6eran.e 4u0 on 2e o2er 2and0
a!so Bi2ou 2avin/ o o4serve an9 Bor8in/ 2ours0 :ree o !eave an9i3e 2e9 p!ease0 o
sa9 aBa9 :or as !on/ 2e9 !i8e. I is no preended 2a i: :ound re3iss in 2e o4servan.e
o: said ru!es0 an9 dis.ip!ine 3a9 4e 3eed 2e3 4e9ond 4arrin/ 2e3 :ro3 2e pre3ises
B2i.20 i 3a9 4e supposed0 2e $!u4 3a9 do in an9 .ase even a4sen an9 4rea.2 o: 2e
ru!es0 and Bi2ou vio!ain/ an9 ri/2 o Bor8 on 2eir par. A!! 2ese .onsideraions
.!as2 :rona!!9 Bi2 2e .on.ep o: e3p!o93en.
T2e IA$ Bou!d poin o 2e :a. 2a 2e $!u4 su//ess 2e rae o: :ees pa9a4!e 49 2e
p!a9ers o 2e .addies as si!! ano2er indi.aion o: 2e !aerLs saus as e3p!o9ees. I
see3s o 2e $our0 2oBever0 2a 2e inend3en o: su.2 :a. is o 2e .onrar90
s2oBin/ 2a 2e $!u4 2as no 2e 3easure o: .onro! over 2e in.idens o: 2e .addiesL
Bor8 and .o3pensaion 2a an e3p!o9er Bou!d possess. $our a/ree 2a 2e /roup
roaion s9se3 so).a!!ed0 is !ess a 3easure o: e3p!o9er .onro! 2an an assuran.e 2a
2e Bor8 is :air!9 disri4ued0 a .add9 B2o is a4sen B2en 2is urn nu34er is .a!!ed
si3p!9 !osin/ 2is urn o serve and 4ein/ assi/ned insead 2e !as nu34er :or 2e da9.
1oreover0 as poined ou 49 peiioner B2i.2 Bas never re:ued 2aP 2as no 3eans o:
.o3pe!!in/ 2e presen.e o: a .add9. A .add9 is no reKuired o eAer.ise 2is o..upaion
in 2e pre3ises o: peiioner. He 3a9 Bor8 Bi2 an9 o2er /o!: .!u4 or 2e 3a9 see8
e3p!o93en a .add9 or o2erBise Bi2 an9 eni9 or individua! Bi2ou resri.ion 49
peiioner.
,n#y#lo!aedia %ritanni#a .+;il1 -n#.= vs 6L'C ./0071 2.'. 93)09
4a#ts"
Privae responden (enGa3in #i3Go.o Bas a Sa!es Division 1ana/er o: peiioner
En.9.!opaedia (rianni.a and Bas in .2ar/e o: se!!in/ peiioner?s produ.s 2rou/2
so3e sa!es represenaives. As .o3pensaion0 privae responden re.eived
.o33issions :ro3 2e produ.s so!d 49 2is a/ens. He Bas a!so a!!oBed o use
peiioner?s na3e0 /oodBi!! and !o/o. I Bas0 2oBever0 a/reed upon 2a oE.e eApenses
Bou!d 4e dedu.ed :ro3 privae responden?s .o33issions. Peiioner Bou!d a!so 4e
in:or3ed a4ou appoin3ens0 pro3oions0 and rans:ers o: e3p!o9ees in privae
responden?s disri..
5n June 197+0 #i3Go.o resi/ned :ro3 oE.e o pursue 2is privae 4usiness. He 2en C!ed
a .o3p!ain a/ains peiioner En.9.!opaedia (rianni.a Bi2 D5#E0 .!ai3in/ :or non)
13
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
pa93en o: separaion pa9 and o2er 4eneCs0 and a!so i!!e/a! dedu.ion :ro3 2is sa!es
.o33issions.
Peiioner a!!e/ed 2a #i3Go.o Bas no is e3p!o9ee 4u an independen dea!er
au2ori*ed o pro3oe and se!! is produ.s and in reurn0 re.eived .o33issions 2ere
:ro3. #i3Go.o did no 2ave an9 sa!ar9 and 2is in.o3e :ro3 2e .o3pan9 Bas dependen
on 2e vo!u3e o: sa!es a..o3p!is2ed. He a!so 2ad 2is oBn separae oE.e0 Cnan.ed 2e
4usiness eApenses0 and 3ainained 2is oBn Bor8:or.e. T2e sa!aries o: 2is se.rear90
ui!i9 3an0 and sa!es represenaives Bere .2ar/ea4!e o 2is .o33issions. T2us0
peiioner ar/ued 2a i 2ad no .onro! and supervision over 2e .o3p!ainan as o 2e
3anner and 3eans 2e .ondu.ed 2is 4usiness operaions0 3oreover0 2e !aer did no
even repor o 2e oE.e o: 2e peiioner and did no o4serve CAed oE.e 2ours
-ssue" ;5" 2ere eAis an e3p!o9er)e3p!o9ee re!aions2ip and ne.essari!9 eni!es
#i3Go.o o: 2is .!ai3sJ
5eld" Privae responden Bas 3ere!9 an a/en or an independen dea!er o: 2e
peiioner.
In as.erainin/ B2e2er 2e re!aions2ip is 2a o: e3p!o9er)e3p!o9ee or one o:
independen .onra.or0 ea.2 .ase 3us 4e deer3ined 49 is oBn :a.s and a!! :eaures
o: 2e re!aions2ip are o 4e .onsidered.
Responden Bas :ree o .ondu. 2is Bor8 and 2e Bas :ree o en/a/e in o2er 3eans o:
!ive!i2ood. A 2e i3e 2e Bas .onne.ed Bi2 2e peiioner .o3pan90 privae
responden Bas a!so a dire.or and !aer 2e presiden o: 2e -ar3ers? Rura! (an8. Had
2e 4een an e3p!o9ee o: 2e .o3pan90 2e .ou!d no 4e e3p!o9ed e!seB2ere and 2e
Bou!d 4e reKuired o devoe :u!! i3e :or peiioner. I: privae responden Bas indeed an
e3p!o9ee0 i Bas ra2er unusua! :or 2i3 o Bai :or 3ore 2an a 9ear :ro3 2is separaion
:ro3 Bor8 4e:ore 2e de.ided o C!e 2is .!ai3s. As 2e poined ou in 2is resi/naion
!eer0 #i3Go.o Bas aBare o: O.onSi. Bi2 o2er ineress B2i.2 AAA 2ave in.reasin/!9
reKuired 39 persona! aenionM. A 2e ver9 !eas0 i Bou!d indi.ae 2a peiioner 2as
no e6e.ive .onro! over 2e persona! a.iviies o: #i3Go.o0 B2o as ad3ied 49 2e
!aer 2ad o2er O.onSi. o: ineresM reKuirin/ 2is persona! aenion.
As poined ou O2e e!e3en o: .onro! is a4senN B2ere a person B2o Bor8s :or ano2er
does so 3ore or !ess a 2is oBn p!easure and is no su4Ge. o deCnie 2ours or
.ondiions o: Bor80 and in urn is .o3pensaed a..ordin/ o 2e resu! o: 2is e6ors and
no 2e a3oun 2ereo:.M
Carung#ong vs 6L'C= Sun Life Assuran#e Co. of Canada ./0031 2.'. //9)97
4a#ts"
Susan $arun/.on/ 4e/an as an a/en o: Sun #i:e in 197+0 s2e si/ned an OA/en?s
A/ree3enM and Bas desi/naed o so!i.i app!i.aions :or insuran.e and annui9
servi.es. T2e .onra. se ou in deai! 2e er3s and .ondiions T pari.u!ar!9 2ose
.on.ernin/ 2e .o33issions pa9a4!e o 2er T under B2i.2 2er re!aions2ip Bi2 2e
.o3pan9 Bou!d 4e /overned. -ive 9ears !aer0 said .onra. Bas superseded 49 2 neB
a/ree3ensP Crs0 is 2e ICareer Agent's (or Unit Manager's) Agreement0I dea! Bi2
su.2 3aers as 2e a/enLs .o33issions0 2is o4!i/aions0 !i3iaions on 2is au2ori90
and er3inaion o: 2e a/ree3en 49 dea20 or 49 Brien noi.e IBi2 or Bi2ou
.ause.I I de.!ared 2a 2e IA/en s2a!! 4e an independen .onra.or and none o: 2e
er3s o: a/ree3en s2a!! 4e .onsrued as .reain/ an e3p!o9er)e3p!o9ee re!aions2ipN
se.ond0 Bas i!ed0 I1A"AGERLS upplementary Agreement.I 1a8in/ eAp!i.i re:eren.e
o 2e Crs a/ree3en IB2i.2 4e.a3e e6e.ive on 2e 1s da9 o: Ju!90 1979I said se.ond
14
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
.onra. T eAp!i.i!9 des.ri4ed as a I:ur2er a/ree3enI T .onained provisions
re/ardin/ re3uneraion (overridin/ .o33issions in a..ordan.e Bi2 a CAed s.2edu!e)0
!i3iaion o: au2ori90 and er3inaion o: 2e a/ree3en inter alia 49 Brien noi.e
IBi2ou .ause.I
Su4seKuen!90 $arun/.on/ and Sun #i:e eAe.ued ano2er A/ree3en ) 49 B2i.2 2e
:or3er Bas na3ed Ne! "usiness Manager Bi2 2e :un.ion /enera!!9 Io 3ana/e a
"eB (usiness 5E.e esa4!is2ed 49 2er and o o4ain app!i.aions :or !i:e insuran.e
po!i.ies and o2er produ.s o6ered 49 or disri4ued 2rou/2 Sun #i:e and o per:or3
su.2 o2er duies in .onne.ion 2ereBi2 as Sun #i:e 3a9 reKuire :ro3 i3e o i3e.I
T2is !aes A/ree3en sressed 2a 2e I"eB (usiness 1ana/er in per:or3an.e o: 2is
duies deCned 2erein0 s2a!! 4e .onsidered an independen .onra.or and no . . an
e3p!o9ee o: Sun #i:e0I and 2a Iunder no .ir.u3san.e s2a!! 2e "eB (usiness
1ana/er andFor 2is e3p!o9ees 4e .onsidered e3p!o9ees o: Sun #i:e.I
A:er re.eivin/ repors o: ano3a!ies in re!aion 2ereo :ro3 uni 3ana/ers and a/ens
49 2e .o3pan9?s >P0 2e 1ana/er o: Sun #i:eLs Inerna! Audi Depar3en0 .o33en.ed
an inKuir9 ino 2e spe.ia! :und avai!3ens o: $arun/.on/ and o2er "eB (usiness
1ana/ers B2i.2 !aer pro3ped 2e peiioner?s er3inaion. S2e 2en insiued
pro.eedin/s :or vindi.aion in 2e Ar4iraion (ran.2 o: 2e "aiona! #a4or Re!aions
$o33ission B2ere s2e su..eeded in o4ainin/ a :avora4!e Gud/3en Cndin/ 2a 2ere
eAised an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen 2er and Sun #i:eN ru!ed 2a s2e
2ad 4een i!!e/a!!9 dis3issed0 2us eni!ed o reinsae3en Bi2ou !oss o: seniori9
ri/2s and o2er 4eneCs.
-ssue" ;5" 2ere eAised an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen $arun.on/ and
Sun!i:eJ
5eld" $arun/.on/ Bas an independen .onra.or and no an e3p!o9ee o: Sun #i:e.
T2e .onra.s s2e 2ad Bi!!in/!9 and 8noBin/!9 si/ned Bi2 Sun #i:e repeaed!9 and
.!ear!9 provided 2a said a/ree3ens Bere er3ina4!e 49 ei2er par9 49 Brien noi.e
Bi2 or Bi2ou .ause.
"oeBor29 is 2a 2is !as a/ree3en0 i Bas e3p2asi*ed0 !i8e 2e ICareer Agent's (or
Unit Manager's) AgreementI Crs si/ned 49 2er0 2a in 2e per:or3an.e o: 2er duies
deCned 2erein. $arun/.on/ Bou!d 4e .onsidered an independen .onra.or and no . .
an e3p!o9ee o: Sun #i:e0I and 2a I(u)nder no .ir.u3san.e s2a!! 2e "eB (usiness
1ana/er andFor 2is e3p!o9ees 4e .onsidered e3p!o9ees o: Sun #i:e.I
'amos vs Court of A!!eals .1 89) SC'A (73
4a#ts"
Peiioner Er!inda Ra3os Bas advised o under/o an operaion :or 2e re3ova! o:
2er sone in 2e /a!! 4!adder. S2e Bas re:erred o Dr. Hosa8a0 a sur/eon0 B2o a/reed
o do 2e operaion. T2e operaion Bas s.2edu!ed on June 170 19', in 2e De !os
Sanos 1edi.a! $ener. Er!inda Bas ad3ied o 2e 3edi.a! .ener 2e da9 4e:ore
2e operaion. 5n 2e :o!!oBin/ da90 s2e Bas read9 :or operaion as ear!9 as 7P&0
a3. Around 9P&00 Dr. Hosa8a 2as no 9e arrived. (9 10 a30 Ro/e!io Baned o pu!!
ou 2is Bi:e :ro3 2e operain/ roo3. Dr. Hosa8a Cna!!9 arrived a 12P10 p3 3ore
2an & 2ours o: 2e s.2edu!ed operaion.
15
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Dr. Guierres ried o inu4ae Er!inda. T2e nai! 4eds o: Er!inda Bere 4!uis2
dis.o!oraion in 2er !e: 2and. A & p30 Er!inda Bas 4ein/ B2ee!ed o 2e Inensive
.are =ni and sa9ed 2ere :or a 3on2. Sin.e 2e i!!):aed operaion0 Er!inda
re3ained in .o3aose .ondiion uni! s2e died.
T2e :a3i!9 o: Ra3os sued 2e3 :or da3a/es.
-ssue" ;5" 2ere Bas an e3p!o9ee)e3p!o9er re!aions2ip 2a eAised 4eBeen 2e
1edi.a! $ener and Drs. Hosa8a and Guierre*.
5eld" "o e3p!o9er)e3p!o9ee 4eBeen 2e do.ors and 2ospia!.
Privae Hospia!s 2ire0 Cre and eAer.ise rea! .onro! over 2eir aendin/ and visiin/
.onsu!an sa6. ;2i!e .onsu!ans are no e.2ni.a!!9 e3p!o9ees0 2e .onro!
eAer.ised0 2e 2irin/ and 2e ri/2 o er3inae .onsu!ans :u!C!! 2e 2a!!3ar8s o: an
e3p!o9er)e3p!o9ee re!aions2ip Bi2 2e eA.epion o: pa93en o: Ba/es. T2e
.onro! es is deer3inin/.
In app!9in/ 2e :our :o!d es0 D#S1$ .anno 4e .onsidered an e3p!o9er o: 2e
responden do.ors. I 2as 4een .onsisen!9 2e!d 2a in deer3inin/ B2e2er an
e3p!o9er)e3p!o9ee re!aions2ip eAiss 4eBeen 2e paries0 2e :o!!oBin/ e!e3ens
3us 4e presenP (1) se!e.ion and en/a/e3en o: servi.esN (2) pa93en o: Ba/esN
(&) 2e poBer o 2ire and CreN and (+) 2e poBer o .onro! no on!9 2e end o 4e
a.2ieved0 4u 2e 3eans o 4e used in rea.2in/ su.2 an end.
T2e 2ospia! does no 2ire .onsu!ans 4u i a..redis and /rans 2i3 2e privi!e/e
o: 3ainainin/ a .!ini. andFor ad3iin/ paiens. I is 2e paien B2o pa9s 2e
.onsu!ans. T2e 2ospia! .anno dis3iss 2e .onsu!an 4u 2e 3a9 !ose 2is
privi!e/es /raned 49 2e 2ospia!. T2e 2ospia!?s o4!i/aion is !i3ied o providin/
2e paien Bi2 2e pre:erred roo3 a..o33odaion and o2er 2in/s 2a Bi!!
ensure 2a 2e do.or?s orders are .arried ou.
T2e .our Cnds 2a 2ere is no e3p!o9er)e3p!o9ee re!aions2ip 4eBeen 2e
do.ors and 2e 2ospia!.
Sona vs A%S-C%6 .&))(1 2.'. /89):/
4a#ts"
In 1a9 199+0 A(S)$(" si/ned an a/ree3en Bi2 1e! 7 Ja9 1ana/e3en and
Deve!op3en $orp :or a radio and e!evision pro/ra3. A(S)$(" a/reed o pa9 :or
S5"UA?s servi.es a 3on2!9 a!en :ee o: P&100000 :or 2e Crs 9ear and P&170000 :or
2e se.ond and 2ird 9ear o: 2e A/ree3en. A(S)$(" Bou!d pa9 2e a!en :ees on 2e
102 and 2,2 da9s o: 2e 3on2.
16
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
5n Apri! 199%0 Son*a Broe a !eer o A(S)$(" Presiden Eu/enio #ope* III a4ou a
re.en even .on.ernin/ 2is pro/ra3s and .areer0 and 2a 2e said vio!aion o: 2e
.o3pan9 2as 4rea.2ed 2e a/ree3en0 2us0 2e noi.e o: res.ission o: A/ree3en Bas
sen.
A 2e end o: 2e sa3e 3on20 Son*a C!ed a .o3p!ain a/ains A(S)$(" 4e:ore 2e
D5#E :or non)pa93en o: sa!aries0 separaion pa90 servi.e in.enive !eave pa90 1&2
3on2 pa90 si/nin/ 4onus0 rave! a!!oBan.e and a3ouns due under 2e E3p!o9ees
So.8 5pion P!an (ES5P) B2i.2 Bas opposed 49 A(S)$(" on 2e /round 2ere Bas no
e3p!o9er)e3p!o9ee re!aions2ip eAised 4eBeen 2e paries.
-ssue" ;5" Son*a Bas an e3p!o9ee or independen .onra.orJ
5eld" T2ere Bas no e3p!o9er)e3p!o9ee re!aions2ip 2a eAised0 4u 2a o: an
independen .onra.or.
$ase !aB 2as .onsisen!9 2e!d 2a 2e e!e3ens o: an e3p!o9er)e3p!o9ee re!aions2ip
areP
(a) $;e sele#tion and engagement of t;e em!loyee ) A(S)$(" en/a/ed S5"UA?s
servi.es o .o)2os is e!evision and radio pro/ra3s 4e.ause o: S5"UA?s pe.u!iar
s8i!!s0 a!en and .e!e4ri9 saus. T2e spe.iC. se!e.ion and 2irin/ o: S5"UA0
because of his unique skills, talent and celebrity status not possessed by
ordinary employees, is a .ir.u3san.e indi.aive0 4u no .on.!usive0 o: an
independen .onra.ua! re!aions2ip.
(b) $;e !ayment of wages ) A(S)$(" dire.!9 paid S5"UA 2is 3on2!9 a!en :ees
Bi2 no par o: 2is :ees /oin/ o 1J1D$. A!! 2e a!en :ees and 4eneCs paid o
S5"UA Bere 2e resu! o: ne/oiaions 2a !ed o 2e A/ree3en. I: S5"UA Bere
A(S)$("?s e3p!o9ee0 2ere Bou!d 4e no need :or 2e paries o sipu!ae on
4eneCs su.2 as ISSS0 1edi.are0 A A A and 1&2 3on2 pa9I B2i.2 2e !aB
auo3ai.a!!9 in.orporaes ino ever9 e3p!o9er)e3p!o9ee .onra..
(c) $;e !ower of dismissal ) -or vio!aion o: an9 provision o: 2e A/ree3en0 ei2er
par9 3a9 er3inae 2eir re!aions2ip. Durin/ 2e !i:e o: 2e A/ree3en0 A(S)$("
a/reed o pa9 S5"UA?s a!en :ees as !on/ as IAGE"T and Ja9 Son*a s2a!! :ai2:u!!9
and .o3p!ee!9 per:or3 ea.2 .ondiion o: 2is A/ree3en.I Even i: i su6ered
severe 4usiness !osses0 A(S)$(" .ou!d no reren.2 S5"UA 4e.ause A(S)$("
re3ained o4!i/aed o pa9 S5"UA?s a!en :ees durin/ 2e !i:e o: 2e A/ree3en.
(d) $;e em!loyer>s !ower to #ontrol t;e em!loyee on t;e means and met;ods
by w;i#; t;e wor? is a##om!lis;ed ) T2e .onro! es is 2e most im!ortant
es. T2is es is 4ased on 2e eAen o: .onro! 2e 2irer eAer.ises over a Bor8er.
T2e /reaer 2e supervision and .onro! 2e 2irer eAer.ises0 2e 3ore !i8e!9 2e
Bor8er is dee3ed an e3p!o9ee. T2e .onverse 2o!ds rue as Be!! @ 2e !ess .onro!
2e 2irer eAer.ises0 2e 3ore !i8e!9 2e Bor8er is .onsidered an independen
.onra.or.
-irs0 A(S)$(" en/a/ed S5"UA?s servi.es spe.iC.a!!9 o .o)2os 2e I1e! 7 Ja9I
pro/ra3s. A(S)$(" did no assi/n an9 o2er Bor8 o S5"UA. To per:or3 2is Bor80
S5"UA on!9 needed 2is s8i!!s and a!en. HoB S5"UA de!ivered 2is !ines0 appeared
on e!evision0 and sounded on radio Bere ouside A(S)$("?s .onro!. S5"UA did no
2ave o render ei/2 2ours o: Bor8 per da9. T2e A/ree3en reKuired S5"UA o
aend on!9 re2earsa!s and apin/s o: 2e s2oBs0 as Be!! as pre) and pos)produ.ion
sa6 3eein/s. A(S)$(" .ou!d no di.ae 2e .onens o: S5"UA?s s.rip. HoBever0
2e A/ree3en pro2i4ied S5"UA :ro3 .rii.i*in/ in 2is s2oBs A(S)$(" or is
ineress. T2e .!ear i3p!i.aion is 2a S5"UA 2ad a :ree 2and on B2a o sa9 or
dis.uss in 2is s2oBs provided 2e did no aa.8 A(S)$(" or is ineress.
17
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Se.ond0 T2e A/ree3en sipu!aes 2a S5"UA s2a!! a4ide Bi2 2e ru!es and
sandards o: per:or3an.e I#overing talentsI o: A(S)$(". T2e A/ree3en does
no reKuire S5"UA o .o3p!9 Bi2 2e ru!es and sandards o: per:or3an.e
pres.ri4ed :or e3p!o9ees o: A(S)$(". T2e .ode o: .ondu. i3posed on S5"UA
under 2e A/ree3en re:ers o 2e ITe!evision and Radio $ode o: 2e Hapisanan n/
3/a (road.aser sa Pi!ipinas (H(P)0 B2i.2 2as 4een adoped 49 2e $51PA"D (A(S)
$(") as is $ode o: E2i.s.I T2e H(P .ode app!ies o 4road.asers0 no o e3p!o9ees
o: radio and e!evision saions. (road.asers are no ne.essari!9 e3p!o9ees o: radio
and e!evision saions. $!ear!90 2e ru!es and sandards o: per:or3an.e re:erred o
in 2e A/ree3en are 2ose app!i.a4!e o a!ens and no o e3p!o9ees o: A(S)$(".
#as!90 4ein/ an eA.!usive a!en does no 49 ise!: 3ean 2a S5"UA is an e3p!o9ee
o: A(S)$(". Even an independen .onra.or .an va!id!9 provide 2is servi.es
eA.!usive!9 o 2e 2irin/ par9. In 2e 4road.as indusr90 eA.!usivi9 is no
ne.essari!9 2e sa3e as .onro!. T2e 2irin/ o: eA.!usive a!ens is a Bidespread and
a..eped pra.i.e in 2e enerain3en indusr9. T2is pra.i.e is no desi/ned o
.onro! 2e 3eans and 3e2ods o: Bor8 o: 2e a!en0 4u si3p!9 o proe. 2e
inves3en o: 2e 4road.as saion. T2e 4road.as saion nor3a!!9 spends
su4sania! a3ouns o: 3one90 i3e and e6or Iin 4ui!din/ up is a!ens as Be!! as
2e pro/ra3s 2e9 appear in and 2us eApe.s 2a said a!ens re3ain eA.!usive
Bi2 2e saion :or a .o33ensurae period o: i3e.I "or3a!!90 a 3u.2 2i/2er :ee is
paid o a!ens B2o a/ree o Bor8 eA.!usive!9 :or a pari.u!ar radio or e!evision
saion. In s2or0 2e 2u/e a!en :ees paria!!9 .o3pensaes :or eA.!usivi9.
Laaro vs So#ial Se#urity Commission .&))(1 2.'. /89&:(
4a#ts"
Rosa!ina #audao C!ed a peiion 4e:ore 2e SS$ :or so.ia! se.uri9 .overa/e and
re3ian.e o: unpaid 3on2!9 so.ia! se.uri9 .onri4uions a/ains 2er 2ree (&)
e3p!o9ers. A3on/ 2e3 Bas An/e!io #a*aro0 proprieor o: Ro9a! Sar0 B2i.2 is en/a/ed
in 2e 4usiness o: se!!in/ 2o3e app!ian.es. #audao a!!e/ed 2a despie 2er
e3p!o93en as sa!es supervisor o: 2e sa!es a/ens :or Ro9a! Sar :ro3 Apri! o: 1979 o
1ar.2 o: 19'%0 #a*aro 2ad :ai!ed durin/ 2e said period0 o repor 2er o 2e SS$ :or
.o3pu!sor9 .overa/e or re3i #audao?s so.ia! se.uri9 .onri4uions.
#a*aro denied 2a #audao Bas a sa!es supervisor o: Ro9a! Sar0 averrin/ insead 2a
s2e Bas a 3ere sa!es a/en B2o3 2e paid pure!9 on .o33ission 4asis. #a*aro
18
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
a!so 3ainained 2a #audao Bas no su4Ge.ed o deCnie 2ours and .ondiions o:
Bor8. As su.20 s2e .ou!d no 4e dee3ed an e3p!o9ee o: Ro9a! Sar.
-ssue" @A6 #audao is .onsidered e3p!o9ee o: Ro9a! Sar 1ar8ein/J
5eld" #audao is an e3p!o9ee o: Ro9a! Sar and as su.2 is eni!ed o 2e .overa/e o:
So.ia! Se.uri9 #aB.
I is an a..eped do.rine 2a :or 2e purposes o: .overa/e under 2e So.ia! Se.uri9
A.0 2e deer3inaion o: e3p!o9er)e3p!o9ee re!aions2ip Barrans 2e app!i.aion o:
2e B#ontrol test=C 2a is0 B2e2er 2e e3p!o9er .onro!s or 2as reserved 2e ri/2 o
.onro! 2e e3p!o9ee0 no on!9 as o 2e resu! o: 2e Bor8 done0 4u a!so as o 2e
3eans and 3e2ods 49 B2i.2 2e sa3e is a..o3p!is2ed.
T2e :a. 2a #audao Bas paid 49 Ba9 o: .o33ission does no pre.!ude 2e
esa4!is23en o: an e3p!o9er)e3p!o9ee re!aions2ip. In #repali$e v. %udico0 2e $our
up2e!d 2e eAisen.e o: an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen 2e insuran.e
.o3pan9 and is a/ens0 despie 2e :a. 2a 2e .o3pensaion 2a 2e a/ens on
.o33ission re.eived Bas no paid 49 2e .o3pan9 4u 49 2e invesor or 2e person
insured. T2e re!evan :a.or re3ains0 as saed ear!ier0 B2e2er 2e Ie3p!o9erI .onro!s
or 2as reserved 2e ri/2 o .onro! 2e Ie3p!o9eeI no on!9 as o 2e resu! o: 2e Bor8
o 4e done 4u a!so as o 2e 3eans and 3e2ods 49 B2i.2 2e sa3e is o 4e
a..o3p!is2ed. I s2ou!d a!so 4e e3p2asi*ed 2a 2e SS$0 a!so as up2e!d 49 2e $our
o: Appea!s0 :ound 2a #audao Bas a sa!es supervisor and no a 3ere a/en. As su.20
#audao oversaB and supervised 2e sa!es a/ens o: 2e .o3pan90 and 2us Bas su4Ge.
o 2e .onro! o: 3ana/e3en as o 2oB s2e i3p!e3ens is po!i.ies and is end resu!s.
T2e Cndin/ o: 2e SS$ 2a #audao Bas an
e3p!o9ee o: Ro9a! Sar is suppored 49 su4sania! eviden.e. T2e SS$ eAa3ined 2e
.as2 vou.2ers issued 49 Ro9a! Sar o #audao0 .a!!in/ .ards o: Ro9a! Sar deno3inain/
#audao as a OSa!es SupervisorM o: 2e .o3pan90 and $eriC.aes o: Appre.iaion issued
49 Ro9a! Sar o #audao in re.o/niion o: 2er unse!Cs2 and !o9a! e6ors in pro3oin/
2e .o3pan9.
A pie.e o: do.u3enar9 eviden.e appre.iaed 49 2e SS$ is 1e3orandu3 daed & 1a9
19'0 o: Teresia #a*aro0 Genera! 1ana/er o: Ro9a! Sar0 dire.in/ 2a no .o33issions
Bere o 4e /iven on a!! O3ain oE.eM sa!es :ro3 Ba!8)in .uso3ers and enGoinin/
sa!es3en and sa!es supervisors o o4serve 2is neB po!i.9. T2e 1e3orandu3 evin.es
2e :a. 2a Ro9a! Sar eAer.ised .onro! over is sa!es supervisors or a/ens su.2 as
#audao as o 2e 3eans and 3e2ods 2rou/2 B2i.2 2ese personne! per:or3ed 2eir
Bor8.
A%S-C%6 vs 6aareno .&))71 2.'. /7(/:7
4a#ts"
A(S)$(" e3p!o9ed respondens "a*areno0 Ger*on0 Deiparine0 and #erasan as
produ.ion assisans (PAs) on di6eren daes. T2e9 Bere assi/ned a 2e neBs and
pu4!i. a6airs0 :or various radio pro/ra3s in 2e $e4u (road.asin/ Saion0 Bi2 a
3on2!9 .o3pensaion o: P+0000. T2e9 Bere issued A(S)$(" e3p!o9ees? ideniC.aion
.ards and Bere reKuired o Bor8 :or a 3ini3u3 o: ei/2 2ours a da90 in.!udin/ Sunda9s
and 2o!ida9s. T2e9 Bere 3ade oP a1 Prepare0 arran/e airin/ o: .o33er.ia!
19
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
4road.asin/ 4ased on 2e dai!9 operaions !o/ and di/i.ar o: responden A(S)$("N b1
$oordinae0 arran/e persona!iies :or air inervieBsN #1 $oordinae0 prepare s.2edu!e o:
reporers :or s.2edu!ed neBs reporin/ and !ead)in or in.o3in/ reporsN d1 -a.i!iae0
prepare and arran/e airi3e s.2edu!e :or pu4!i. servi.e announ.e3en and .o3p!ainsN
e1 Assis0 an.2or pro/ra3 inervieB0 e.N and f1 Re.ord0 !o/ .!eri.a! repors0 3an 4ased
.onro! radio.
Peiioner and 2e A(S)$(" Ran8)and)-i!e E3p!o9ees eAe.ued a $o!!e.ive (ar/ainin/
A/ree3en ($(A) o 4e e6e.ive durin/ 2e period :ro3 De. 110 199% o De. 110 1999.
HoBever0 sin.e peiioner re:used o re.o/ni*e PAs as par o: 2e 4ar/ainin/ uni0
respondens Bere no in.!uded o 2e $(A.
Due o a 3e3orandu3 assi/nin/ PA?s o non)dra3a pro/ra3s0 and 2a 2e DDA( sudio
operaions Bou!d 4e 2and!ed 49 2e sudio e.2ni.ian. T2ere Bas a revision o: 2e
s.2edu!e and assi/n3ens and 2a responden Ger*on Bas assi/ned as 2e :u!!)i3e PA
o: 2e T> "eBs Depar3en reporin/ dire.!9 o #eo #asi3osa.
5n 5. 120 20000 respondens C!ed a $o3p!ain :or Re.o/niion o: Re/u!ar E3p!o93en
Saus0 =nderpa93en o: 5veri3e Pa90 Ho!ida9 Pa90 Pre3iu3 Pa90 Servi.e In.enive
Pa90 Si.8 #eave Pa90 and 1&
2
1on2 Pa9 Bi2 Da3a/es a/ains 2e peiioner 4e:ore 2e
"#R$.
-ssue" ;5" 2e respondens are re/u!ar e3p!o9eesJ
5eld" Respondens are .onsidered re/u!ar e3p!o9ees o: A(S)$(" and are eni!ed o
2e 4eneCs /raned o a!! re/u!ar e3p!o9ees.
;2ere a person 2as rendered a !eas one 9ear o: servi.e0 re/ard!ess o: 2e naure o:
2e a.ivi9 per:or3ed0 or B2ere 2e Bor8 is .oninuous or iner3ien0 2e e3p!o93en
is .onsidered re/u!ar as !on/ as 2e a.ivi9 eAiss. T2e reason 4ein/ 2a a .uso3ar9
appoin3en is no indispensa4!e 4e:ore one 3a9 4e :or3a!!9 de.!ared as 2avin/
aained re/u!ar saus. Ari.!e 2'0 o: 2e #a4or $ode providesP
'EGULAR AND CAUAL E!"L#$!EN%&DT2e provisions o: Brien a/ree3en o
2e .onrar9 noBi2sandin/ and re/ard!ess o: 2e ora! a/ree3en o: 2e paries0 an
e3p!o93en s2a!! 4e dee3ed o 4e re/u!ar B2ere 2e e3p!o9ee 2as 4een en/a/ed
o per:or3 a.iviies B2i.2 are usua!!9 ne.essar9 or desira4!e in 2e usua! 4usiness or
rade o: 2e e3p!o9er eA.ep B2ere 2e e3p!o93en 2as 4een CAed :or a spe.iC.
proGe. or undera8in/ 2e .o3p!eion or er3inaion o: B2i.2 2as 4een deer3ined
a 2e i3e o: 2e en/a/e3en o: 2e e3p!o9ee or B2ere 2e Bor8 or servi.es o 4e
per:or3ed is seasona! in naure and 2e e3p!o93en is :or 2e duraion o: 2e
season.
Any employee !&o &as rendered at least one year o$ service, !&et&er continuous or
intermittent, is deemed regular !it& respect to t&e activity per$ormed and !&ile suc&
activity actually e'ists. T2e :a. 2a respondens re.eived pre)a/reed Oa!en :eesM
insead o: sa!aries0 2a 2e9 did no o4serve 2e reKuired oE.e 2ours0 and 2a 2e9
Bere per3ied o Goin o2er produ.ions durin/ 2eir :ree i3e are no .on.!usive o: 2e
naure o: 2eir e3p!o93en. T2e9 are re/u!ar e3p!o9ees B2o per:or3 severa! di6eren
duies under 2e .onro! and dire.ion o: A(S)$(" eAe.uives and supervisors.
$;ere are two ?inds of regular em!loyees under t;e law" ./1 2ose en/a/ed o
per:or3 a.iviies B2i.2 are ne#essary or desirable in 2e usua! 4usiness or rade o:
20
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
2e e3p!o9erN and .&1 2ose .asua! e3p!o9ees B2o 2ave rendered at least one year
of servi#e0 B2e2er .oninuous or 4ro8en0 Bi2 respe. o 2e a.iviies in B2i.2 2e9
are e3p!o9ed.
;2a deer3ines B2e2er a .erain e3p!o93en is re/u!ar or o2erBise is t&e c&aracter
o$ t&e activities per$ormed in relation to t&e particular trade or (usiness ta)ing into
account all t&e circumstances, and in some cases t&e lengt& o$ time o$ its per$ormance
and its continued e'istence.
T2e e3p!o9er)e3p!o9ee re!aions2ip 4eBeen peiioner and respondens 2as 4een
proven 49 2e 6P
*irst. In 2e se!e.ion and en/a/e3en o: respondens0 no pe.u!iar or uniKue s8i!!0
a!en or .e!e4ri9 saus Bas reKuired :ro3 2e3 4e.ause 2e9 Bere 3ere!9
2ired 2rou/2 peiioner?s personne! depar3en Gus !i8e an9 ordinar9 e3p!o9ee.

econd. T2e so).a!!ed Oa!en :eesM o: respondens .orrespond o Ba/es /iven as
a resu! o: an e3p!o9er)e3p!o9ee re!aions2ip. Respondens did no 2ave 2e
poBer o 4ar/ain :or 2u/e a!en :ees0 a .ir.u3san.e ne/ain/ independen
.onra.ua! re!aions2ip.

+&ird. Peiioner .ou!d a!Ba9s dis.2ar/e respondens s2ou!d i Cnd 2eir Bor8
unsais:a.or90 and respondens are 2i/2!9 dependen on 2e peiioner :or
.oninued Bor8.

*ourt&. T2e de/ree o: .onro! and supervision eAer.ised 49 peiioner over
respondens 2rou/2 is supervisors ne/aes 2e a!!e/aion 2a respondens are
independen .onra.ors.
%he presumption is that 'hen the 'ork done is an inte(ral part of the re(ular
business of the employer and 'hen the 'orker, relati)e to the employer, does
not furnish an independent business or professional ser)ice, such 'ork is a
re(ular employment of such employee and not an independent contractor.
21
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
4ran#is#o vs 6L'C .&))71 :)) SC'A 70)
4a#ts"
Peioner Bas 2ired 49 Hasei $orporaion durin/ 2e in.orporaion sa/e. S2e Bas
desi/naed as a..ounan and .orporae se.rear9 and Bas assi/ned o 2and!e a!! 2e
a..ounin/ needs o: 2e .o3pan9. S2e Bas a!so desi/naed as #iason 5E.er o 2e $i9
o: 1ani!a o se.ure per3is :or 2e operaion o: 2e .o3pan9.
In 199%0 Peiioner Bas desi/naed as A.in/ 1ana/er. S2e Bas assi/ned o 2and!e
re.rui3en o: a!! e3p!o9ees and per:or3 3ana/e3en ad3inisraion :un.ions. In
20010 s2e Bas rep!a.ed 49 #i*a -uenes as 1ana/er. Hasei $orporaion redu.ed 2er
sa!ar9 o P20,00 per 3on2 B2i.2 Bas uni! Sepe34er. S2e as8ed :or 2er sa!ar9 4u Bas
in:or3ed 2a s2e Bas no !on/er .onne.ed o 2e .o3pan9. S2e did no an93ore
repor o Bor8 sin.e s2e Bas no paid :or 2er sa!ar9. S2e C!ed an a.ion :or .onsru.ive
dis3issa! Bi2 2e #a4or Ar4ier.
T2e #a4or Ar4ier :ound 2a 2e peiioner Bas i!!e/a!!9 dis3issed. "#R$ aEr3ed 2e
de.ision B2i!e $A reversed i.
-ssue" ;5" 2ere Bas an e3p!o9er)e3p!o9ee re!aions2ip.
5eld" Peiioner is an e3p!o9ee o: Hasei $orporaion.
T2e .our 2e!d 2a in 2is Gurisdi.ion0 2ere 2as 4een no uni:or3 es o deer3ine 2e
eAisen.e o: an e3p!o9er)e3p!o9ee re!aion. Genera!!90 .ours 2ave re!ied on 2e so)
.a!!ed ri/2 o: .onro! es B2ere 2e person :or B2o3 2e servi.es are per:or3ed
reserves a ri/2 o .onro! no on!9 2e end o 4e a.2ieved 4u a!so 2e 3eans o 4e
used in rea.2in/ su.2 end. In addiion o 2e sandard o: ri/2)o:).onro!0 2e eAisin/
e.ono3i. .ondiions prevai!in/ 4eBeen 2e paries0 !i8e 2e in.!usion o: 2e e3p!o9ee
in 2e pa9ro!!s0 .an 2e!p in deer3inin/ 2e eAisen.e o: an e3p!o9er)e3p!o9ee
re!aions2ip.
T2e 4eer approa.2 Bou!d 2ere:ore 4e o adop a Bo)iered es invo!vin/P (1) 2e
puaive e3p!o9er?s poBer o .onro! 2e e3p!o9ee Bi2 respe. o 2e 3eans and
3e2ods 49 B2i.2 2e Bor8 is o 4e a..o3p!is2edN and (2) 2e under!9in/ e.ono3i.
rea!iies o: 2e a.ivi9 or re!aions2ip.
In evilla v. Court o$ Appeals0 2e .our o4served 2e need o .onsider 2e eAisin/
e.ono3i. .ondiions prevai!in/ 4eBeen 2e paries0 in addiion o 2e sandard o: ri/2)
o:).onro! !i8e 2e in.!usion o: 2e e3p!o9ee in 2e pa9ro!!s0 o /ive a .!earer pi.ure in
deer3inin/ 2e eAisen.e o: an e3p!o9er)e3p!o9ee re!aions2ip 4ased on an ana!9sis
o: 2e oa!i9 o: e.ono3i. .ir.u3san.es o: 2e Bor8er.
22
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2us0 2e deer3inaion o: 2e re!aions2ip 4eBeen e3p!o9er and e3p!o9ee depends
upon 2e .ir.u3san.es o: 2e B2o!e e.ono3i. a.ivi90 su.2 asP (1) 2e eAen o B2i.2
2e servi.es per:or3ed are an ine/ra! par o: 2e e3p!o9er?s 4usinessN (2) 2e eAen o:
2e Bor8er?s inves3en in eKuip3en and :a.i!iiesN (&) 2e naure and de/ree o: .onro!
eAer.ised 49 2e e3p!o9erN (+) 2e Bor8er?s opporuni9 :or proC and !ossN (,) 2e
a3oun o: iniiaive0 s8i!!0 Gud/3en or :oresi/2 reKuired :or 2e su..ess o: 2e .!ai3ed
independen enerpriseN (%) 2e per3anen.9 and duraion o: 2e re!aions2ip 4eBeen
2e Bor8er and 2e e3p!o9erN and (7) 2e de/ree o: dependen.9 o: 2e Bor8er upon 2e
e3p!o9er :or 2is .oninued e3p!o93en in 2a !ine o: 4usiness. T2e proper sandard o:
e.ono3i. dependen.e is B2e2er 2e Bor8er is dependen on 2e a!!e/ed e3p!o9er :or
2is .oninued e3p!o93en in 2a !ine o: 4usiness.
(9 app!9in/ 2e .onro! es0 2ere is no dou4 2a peiioner is an e3p!o9ee o: Hasei
$orporaion 4e.ause s2e Bas under 2e dire. .onro! and supervision o: SeiGi Ha3ura0
2e .orporaion?s Te.2ni.a! $onsu!an. I is 2ere:ore apparen 2a peiioner is
e.ono3i.a!!9 dependen on responden .orporaion :or 2er .oninued e3p!o93en in
2e !aer?s !ine o: 4usiness.
T2ere .an 4e no o2er .on.!usion 2a peiioner is an e3p!o9ee o: responden Hasei
$orporaion. S2e Bas se!e.ed and en/a/ed 49 2e .o3pan9 :or .o3pensaion0 and is
e.ono3i.a!!9 dependen upon responden :or 2er .oninued e3p!o93en in 2a !ine o:
4usiness. Her 3ain Go4 :un.ion invo!ved a..ounin/ and aA servi.es rendered o
Responden $orporaion on a re/u!ar 4asis over an indeCnie period o: en/a/e3en.
Responden $orporaion 2ired and en/a/ed peiioner :or .o3pensaion0 Bi2 2e poBer
o dis3iss 2er :or .ause. 1ore i3poran!90 Responden $orporaion 2ad 2e poBer o
.onro! peiioner Bi2 2e 3eans and 3e2ods 49 B2i.2 2e Bor8 is o 4e
a..o3p!is2ed.
23
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
6ogales et al.= vs Ca!itol Medi#al Center .&))71 2.'. /(&7&:
4a#ts"
$ora*on Bas under 2e eA.!usive .are o: Dr 5s.ar Esrada 4e/innin/ 2e :our2 3on2
o: 2er pre/nan.9. ;2i!e on 2er !as ri3eser o: pre/nan.90 Dr Esrada noed an
in.rease o: 2er 4!ood pressure and deve!op3en o: !e/ ede3a indi.ain/ pree.!a3psia
B2i.2 is a dan/erous .o3p!i.aion o: pre/nan.9.
Around 3idni/2 o: 2, 1a9 197%0 $ora*on sared o eAperien.e 3i!d !a4or pains
pro3pin/ Spouses "o/a!es o see Dr. Esrada a 2is 2o3e. A:er eAa3inin/ $ora*on0 Dr.
Esrada advised 2er i33ediae ad3ission o 2e $apio! 1edi.a! $ener. Evenua!!90
$ora*on died a:er /ivin/ 4ir2 o 2e .2i!d0 B2i.2 pro3ped 2e peiioners o C!e a
.o3p!ain :or da3a/es a/ains $1$0 Dr. Esrada and o2er p29si.ians and a .erain
nurse :or $ora*on?s dea2. Peiioners 3ain!9 .onended 2a de:endan p29si.ians and
$1$ personne! Bere ne/!i/en in 2e rea3en and 3ana/e3en o: $ora*onLs
.ondiion. Peiioners .2ar/ed $1$ Bi2 ne/!i/en.e in 2e se!e.ion and supervision o:
de:endan p29si.ians and 2ospia! sa6.
-ssue" ;5" $1$ is vi.arious!9 !ia4!e :or 2e ne/!i/en.e o: Dr. EsradaJ
5eld" $1$ is vi.arious!9 !ia4!e.
In Ramos v. Court o$ Appeals0 $our 2ad 2e o..asion o deer3ine 2e re!aions2ip
4eBeen a 2ospia! and a .onsu!an or visiin/ p29si.ian and 2e !ia4i!i9 o: su.2
2ospia! :or 2a p29si.ianLs ne/!i/en.eP
;2i!e I.onsu!ansI are no0 e.2ni.a!!9 e3p!o9ees0 a poin B2i.2 responden 2ospia!
assers in den9in/ a!! responsi4i!i9 :or 2e paienLs .ondiion0 2e .onro! eAer.ised0
2e 2irin/0 and 2e ri/2 o er3inae .onsu!ans a!! :u!C!! 2e i3poran 2a!!3ar8s o:
an e3p!o9er)e3p!o9ee re!aions2ip0 Bi2 2e eA.epion o: 2e pa93en o: Ba/es. In
assessin/ B2e2er su.2 a re!aions2ip in :a. eAiss0 2e .onro! es is deer3inin/.
A..ordin/!90 on 2e 4asis o: 2e :ore/oin/0 Be ru!e 2a :or 2e purpose o: a!!o.ain/
responsi4i!i9 in 3edi.a! ne/!i/en.e .ases0 an e3p!o9er)e3p!o9ee re!aions2ip in
e6e. eAiss 4eBeen 2ospia!s and 2eir aendin/ and visiin/ p29si.ians.
;2i!e 2e $our in Ramos did no eApound on 2e .onro! es0 su.2 es essenia!!9
deer3ines B2e2er an e3p!o93en re!aions2ip eAiss 4eBeen a p29si.ian and a
2ospia! 4ased on 2e eAer.ise o: .onro! over 2e p29si.ian as o deai!s. Spe.iC.a!!90
24
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
2e e3p!o9er (or 2e 2ospia!) 3us 2ave 2e ri/2 o .onro! 4o2 2e 3eans and 2e
deai!s o: 2e pro.ess 49 B2i.2 2e e3p!o9ee (or 2e p29si.ian) is o a..o3p!is2 2is as8
In 2e presen .ase0 2e $our Cnds no sin/!e eviden.e poinin/ o $1$Ls eAer.ise o:
.onro! over Dr. EsradaLs rea3en and 3ana/e3en o: $ora*onLs .ondiion. I is
undispued 2a 2rou/2ou $ora*onLs pre/nan.90 s2e Bas under 2e eA.!usive prenaa!
.are o: Dr. Esrada. A 2e i3e o: $ora*onLs ad3ission a $1$ and durin/ 2er de!iver90
i Bas Dr. Esrada0 assised 49 Dr. >i!!aSor0 B2o aended o $ora*on. T2ere Bas no
s2oBin/ 2a $1$ 2ad a par in dia/nosin/ $ora*onLs .ondiion. ;2i!e Dr. Esrada
enGo9ed sa6 privi!e/es a $1$0 su.2 :a. a!one did no 3a8e 2i3 an e3p!o9ee o: $1$.
$1$ 3ere!9 a!!oBed Dr. Esrada o use is :a.i!iies

B2en $ora*on Bas a4ou o /ive
4ir20 B2i.2 $1$ .onsidered an e3er/en.9. $onsiderin/ 2ese .ir.u3san.es0 Dr.
Esrada is no an e3p!o9ee o: $1$0 4u an independen .onra.or.
In /enera!0 a 2ospia! is no !ia4!e :or 2e ne/!i/en.e o: an independen .onra.or)
p29si.ian. T2ere is0 2oBever0 an eA.epion o 2is prin.ip!e. T2e 2ospia! 3a9 4e !ia4!e i:
2e p29si.ian is 2e Iosensi4!eI a/en o: 2e 2ospia!.

T2is eA.epion is a!so 8noBn as
2e Ido.rine o: apparen au2ori9.I In #il(ert v. ycamore Municipal ,ospital0 2e
I!!inois Supre3e $our eAp!ained 2e do.rine o: apparen au2ori9 in 2is BiseP
=nder 2e do.rine o: apparen au2ori9 a 2ospia! .an 4e 2e!d vi.arious!9 !ia4!e :or
2e ne/!i/en a.s o: a p29si.ian providin/ .are a 2e 2ospia!0 re/ard!ess o: B2e2er
2e p29si.ian is an independen .onra.or0 un!ess 2e paien 8noBs0 or s2ou!d 2ave
8noBn0 2a 2e p29si.ian is an independen .onra.or. T2e e!e3ens o: 2e a.ion
2ave 4een se ou as :o!!oBsP
I-or a 2ospia! o 4e !ia4!e under 2e do.rine o: apparen au2ori90 a p!aini6 3us
s2oB 2aP (1) 2e 2ospia!0 or is a/en0 a.ed in a 3anner 2a Bou!d !ead a
reasona4!e person o .on.!ude 2a 2e individua! B2o Bas a!!e/ed o 4e ne/!i/en
Bas an e3p!o9ee or a/en o: 2e 2ospia!N (2) B2ere 2e a.s o: 2e a/en .reae 2e
appearan.e o: au2ori90 2e p!aini6 3us a!so prove 2a 2e 2ospia! 2ad
8noB!ed/e o: and a.Kuies.ed in 2e3N and (&) 2e p!aini6 a.ed in re!ian.e upon 2e
.ondu. o: 2e 2ospia! or is a/en0 .onsisen Bi2 ordinar9 .are and pruden.e.I
T2e e!e3en o: I2o!din/ ouI on 2e par o: 2e 2ospia! does no reKuire an
eApress represenaion 49 2e 2ospia! 2a 2e person a!!e/ed o 4e ne/!i/en is
an e3p!o9ee. Ra2er0 2e e!e3en is saisCed i: 2e 2ospia! 2o!ds ise!: ou as a
provider o: e3er/en.9 roo3 .are Bi2ou in:or3in/ 2e paien 2a 2e .are is
provided 49 independen .onra.ors.
T2e do.rine o: apparen au2ori9 essenia!!9 invo!ves Bo :a.ors o deer3ine 2e
!ia4i!i9 o: an independen).onra.or p29si.ian.
$;e Erst fa#tor fo#uses on t;e ;os!italFs manifestations and is so3ei3es
des.ri4ed as an inKuir9 B2e2er 2e 2ospia! a.ed in a 3anner B2i.2 Bou!d !ead a
reasona4!e person o .on.!ude 2a 2e individua! B2o Bas a!!e/ed o 4e ne/!i/en Bas
an e3p!o9ee or a/en o: 2e 2ospia!. -n t;is regard= t;e ;os!ital need not ma?e
eG!ress re!resentations to t;e !atient t;at t;e treating !;ysi#ian is an
em!loyee of t;e ;os!italH rat;er a re!resentation may be general and im!lied.
In 2e insan .ase0 $1$ i3p!ied!9 2e!d ou Dr. Esrada as a 3e34er o: is 3edi.a! sa6.
T2rou/2 $1$Ls a.s0 $1$ .!o2ed Dr. Esrada Bi2 apparen au2ori9 2ere49 !eadin/
2e Spouses "o/a!es o 4e!ieve 2a Dr. Esrada Bas an e3p!o9ee or a/en o: $1$. $1$
.anno noB repudiae su.2 au2ori9.
$;e se#ond fa#tor fo#uses on t;e !atientFs relian#e. I is so3ei3es .2ara.eri*ed
as an inKuir9 on B2e2er 2e p!aini6 a.ed in re!ian.e upon 2e .ondu. o: 2e 2ospia!
or is agent0 .onsisen Bi2 ordinar9 .are and pruden.e.
25
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2e re.ords s2oB 2a 2e Spouses "o/a!es re!ied upon a per.eived e3p!o93en
re!aions2ip Bi2 $1$ in a..epin/ Dr. EsradaLs servi.es. Ro/e!io esiCed 2a 2e and
2is Bi:e spe.iC.a!!9 .2ose Dr. Esrada o 2and!e $ora*onLs de!iver9 no on!9 4e.ause o:
2eir :riendLs re.o33endaion0 4u 3ore i3poran!9 4e.ause o: Dr. EsradaLs
I.onne.ion Bi2 a repua4!e 2ospia!0 2e Q$1$R.I In o2er Bords0 Dr. EsradaLs
re!aions2ip Bi2 $1$ p!a9ed a si/niC.an ro!e in 2e Spouses "o/a!esL de.ision in
a..epin/ Dr. EsradaLs servi.es as 2e o4seri.ian)/9ne.o!o/is :or $ora*onLs de!iver9.
1oreover0 as ear!ier saed0 2ere is no s2oBin/ 2a 4e:ore and durin/ $ora*onLs
.onCne3en a $1$0 2e Spouses "o/a!es 8neB or s2ou!d 2ave 8noBn 2a Dr. Esrada
Bas no an e3p!o9ee o: $1$.
Even si3p!e ne/!i/en.e is no su4Ge. o 4!an8e re!ease in :avor o: esa4!is23ens !i8e
2ospia!s 4u 3a9 on!9 3ii/ae !ia4i!i9 dependin/ on 2e .ir.u3san.es.

;2en a
person needin/ ur/en 3edi.a! aenion rus2es o a 2ospia!0 2e .anno 4ar/ain on
eKua! :ooin/ Bi2 2e 2ospia! on 2e er3s o: ad3ission and operaion. Su.2 a person
is !iera!!9 a 2e 3er.9 o: 2e 2ospia!. T2ere .an 4e no .!earer eAa3p!e o: a .onra. o:
ad2esion 2an one arisin/ :ro3 su.2 a dire siuaion. T2us0 2e re!ease :or3s o: $1$
.anno re!ieve $1$ :ro3 !ia4i!i9 :or 2e ne/!i/en 3edi.a! rea3en o: $ora*on.
Co#a-Cola %ottlers +;ils.= vs Dr. Clima#o .&))31 2.'. /(799/
4a#ts"
Dr. Dean $!i3a.o is a 3edi.a! do.or B2o Bas 2ired 49 peiioner $o.a)$o!a (o!ers
P2i!s.0 In.. 49 virue o: a Reainer A/ree3en :or a period o: 1 9ear Bi2 a 3on2!9 sa!ar9
o: T2ree T2ousand Ei/2 Hundred (P&0'00.00).
T2e Reainer A/ree3en0 B2i.2 4e/an on Januar9 10 19''0 Bas reneBed annua!!9. T2e
!as one eApired on De.e34er &10 199&. Despie 2e non)reneBa! o: 2e Reainer
A/ree3en0 responden .oninued o per:or3 2is :un.ions as .o3pan9 do.or o $o.a)
$o!a uni! 2e re.eived a !eer :ro3 peiioner .o3pan9 .on.!udin/ 2eir reainers2ip
a/ree3en e6e.ive &0 da9s :ro3 re.eip 2ereo:.
Peiioner Bas a!read9 3a8in/ inKuiries re/ardin/ 2is saus Bi2 2e .o3pan9. -irs0 2e
Broe a !eer addressed o Dr. ;i!!ie S90 2e A.in/ Presiden and $2airperson o: 2e
$o33iee on 1e34ers2ip0 P2i!ippine $o!!e/e o: 5..upaiona! 1edi.ine. In response0
Dr. S9 Broe a !eer o 2e Personne! 5E.er o: $o.a)$o!a (o!ers P2i!s.0 (a.o!od $i90
sain/ 2a responden s2ou!d 4e .onsidered as a re/u!ar par)i3e p29si.ian0 2avin/
served 2e .o3pan9 .oninuous!9 :or :our (+) 9ears. He !i8eBise saed 2a responden
3us re.eive a!! 2e 4eneCs and privi!e/es o: an e3p!o9ee under Ari.!e 1,7 (4) o: 2e
#a4or $ode.
-ssue" ;5" 2ere eAiss an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen $o.a)$o!a and Dr.
$!i3a.oJ
5eld" "o e3p!o9er)e3p!o9ee re!aions2ip eAiss 4eBeen 2e paries.
T2e $our0 in deer3inin/ 2e eAisen.e o: an e3p!o9er)e3p!o9ee re!aions2ip0 2as
invaria4!9 ad2ered o 2e :our):o!d esP (1) 2e se!e.ion and en/a/e3en o: 2e
e3p!o9eeN (2) 2e pa93en o: Ba/esN (&) 2e poBer o: dis3issa!N and .(1 t;e !ower to
#ontrol t;e em!loyee>s #ondu#t= or t;e so-#alled I#ontrol test=I #onsidered to
be t;e most im!ortant element.
T2e #a4or Ar4ier and 2e "#R$ .orre.!9 :ound 2a $o.a)$o!a !a.8ed 2e poBer o:
.onro! over 2e per:or3an.e 49 responden o: 2is duies. T2e #a4or Ar4ier reasoned
2a 2e $o3pre2ensive 1edi.a! P!an0 B2i.2 .onains 2e responden?s o4Ge.ives0
duies and o4!i/aions0 does no e!! responden I2oB o .ondu. 2is p29si.a!
26
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
eAa3inaion0 2oB o i33uni*e0 or 2oB o dia/nose and rea 2is paiens0 e3p!o9ees o:
$o.a)$o!a0 in ea.2 .ase.I
T2e $o3pre2ensive 1edi.a! P!an0 provided /uide!ines 3ere!9 o ensure 2a 2e end
resu! Bas a.2ieved0 4u did no .onro! 2e 3eans and 3e2ods 49 B2i.2 responden
per:or3ed 2is assi/ned as8s. I is pre.ise!9 4e.ause 2e .o3pan9 !a.8s 2e poBer o:
.onro! 2a 2e .onra. provides 2a responden s2a!! 4e dire.!9 responsi4!e o 2e
e3p!o9ee .on.erned and 2eir dependens :or an9 inGur90 2ar3 or da3a/e .aused
2rou/2 pro:essiona! ne/!i/en.e0 in.o3peen.e or o2er va!id .auses o: a.ion.
$o3p!ainan does no dispue 2e :a. 2a ouside o: 2e Bo (2) 2ours 2a 2e is
reKuired o 4e a responden .o3pan9?s pre3ises0 2e is no a a!! :ur2er reKuired o Gus
si around in 2e pre3ises and Bai :or an e3er/en.9 o o..ur so as o ena4!e 2i3 :ro3
usin/ su.2 2ours :or 2is oBn 4eneC and advana/e. In :a.0 .o3p!ainan 3ainains 2is
oBn privae .!ini. aendin/ o 2is privae pra.i.e in 2e .i90 B2ere 2e servi.es 2is
paiens0 4i!!s 2e3 a..ordin/!9 )) and i: i is an e3p!o9ee o: responden .o3pan9 B2o is
aended o 49 2i3 :or spe.ia! rea3en 2a needs 2ospia!i*aion or operaion0 2is is
su4Ge. o a spe.ia! 4i!!in/. 1ore o:en 2an no0 an e3p!o9ee is reKuired o sa9 in 2e
e3p!o9er?s Bor8p!a.e or proAi3ae!9 .!ose 2ereo 2a 2e .anno ui!i*e 2is i3e
e6e.ive!9 and /ain:u!!9 :or 2is oBn purpose.
Calamba Medi#al Center vs 6L'C .&))91 2.'. /37(9(
4a#ts"
$a!a34a 1edi.a! $ener0 en/a/ed 2e servi.es o: 3edi.a! do.ors)spouses Dr.
Rona!do and Dr. 1er.edi2a #an*anas as par o: is ea3 o: residen p29si.ians.
Reporin/ a 2e 2ospia! Bi.e)a)Bee8 on Ben9):our)2our s2i:s0 respondens Bere
paid a 3on2!9 IreainerI o: P+0'00.00 ea.2. A!so residen p29si.ians Bere a!so /iven a
per.ena/e s2are ou o: :ees .2ar/ed :or ou)paien rea3ens0 operain/ roo3
assisan.e and dis.2ar/e 4i!!in/s0 in addiion o 2eir CAed 3on2!9 reainer.
T2e Bor8 s.2edu!es o: 2e 3e34ers o: 2e ea3 o: residen p29si.ians Bere CAed 49
peiionerLs 3edi.a! dire.or Dr. Desipeda0 and 2e9 Bere issued ID0 enro!!ed in 2e SSS
and Bi22e!d aA :ro3 2e3.
A:er an in.iden B2ere Dr. Trinidad over2eard a p2one .onversaion 4eBeen Dr.
Rona!do and a :e!!oB e3p!o9ee Diosdado 1is.a!a0 2e :or3er Bas /iven a prevenive
suspension and 2is Bi:e Dr. 1er.edi2a Bas no /iven an9 s.2edu!e a:er sendin/ 2e
1e3orandu3. 5n 1ar.2 199'0 Dr. Rona!do C!ed a .o3p!ain :or i!!e/a! suspension and
Dr. 1er.edi2a :or i!!e/a! dis3issa!.
-ssue" ;5" 2ere eAiss an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen peiioner and 2e
spouses)respondensJ
5eld" Drs. #an*anas are de.!ared e3p!o9ee 49 2e peiioner 2ospia!.
=nder 2e I#ontrol test=I an e3p!o93en re!aions2ip eAiss 4eBeen a p29si.ian and
a 2ospia! i: 2e 2ospia! .onro!s 4o2 2e 3eans and 2e deai!s o: 2e pro.ess 49
B2i.2 2e p29si.ian is o a..o3p!is2 2is as8.
T2a peiioner eAer.ised .onro! over respondens /ains !i/2 :ro3 2e undispued :a.
2a in 2e e3er/en.9 roo30 2e operain/ roo30 or an9 depar3en or Bard :or 2a
3aer0 respondensL Bor8 is 3oniored 2rou/2 is nursin/ supervisors0 .2ar/e nurses
and order!ies. ;i2ou 2e approva! or .onsen o: peiioner or is 3edi.a! dire.or0 no
operaions .an 4e undera8en in 2ose areas. -or .onro! es o app!90 i is no essenia!
:or 2e e3p!o9er o a.ua!!9 supervise 2e per:or3an.e o: duies o: 2e e3p!o9ee0 i
4ein/ enou/2 2a i 2as 2e ri/2 o Bie!d 2e poBer.
27
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
;i2 respe. o respondensL s2arin/ in so3e 2ospia! :ees0 2is s.2e3e does no sever
2e e3p!o93en ie 4eBeen 2e3 and peiioner as 2is 3ere!9 3irrors addiiona! :or3
or ano2er :or3 o: .o3pensaion or in.enive si3i!ar o B2a .o33ission)4ased
e3p!o9ees re.eive as .one3p!aed in Ari.!e 97 (:) o: 2e #a4or $ode.
1oreover0 respondens Bere 3ade su4Ge. o peiioner)2ospia!Ls $ode o: E2i.s0 2e
provisions o: B2i.2 .over ad3inisraive and dis.ip!inar9 3easures on ne/!i/en.e o:
duies0 personne! .ondu. and 4e2avior0 and o6enses a/ains persons0 proper9 and 2e
2ospia!Ls ineres.
1ore i3poran!90 peiioner ise!: provided in.onroveri4!e proo: o: 2e e3p!o93en
saus o: respondens0 na3e!90 2e ideniC.aion .ards i issued 2e30 2e pa9s!ips and
(IR ;)2 (noB 2&1%) -or3s B2i.2 reSe. 2eir saus as e3p!o9ees0 and 2e
.!assiC.aion as Isa!ar9I o: 2eir re3uneraion. 1oreover0 i enro!!ed respondens in 2e
SSS and 1edi.are (P2i!2ea!2) pro/ra3. I 4ears noin/ a 2is Gun.ure 2a 3andaor9
.overa/e under 2e SSS #aB is pre3ised on 2e eAisen.e o: an e3p!o9er)e3p!o9ee
re!aions2ip0 eA.ep in .ases o: .o3pu!sor9 .overa/e o: 2e se!:)e3p!o9ed.
28
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Allendorf vs Abra;amson ./0/91 2.'. /8&&9
4a#ts"
29
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
An a/ree3en Bas enered ino 49 5!!endor6 and A4ra2a3son B2ere49 2e:or3er
a/reed o e3p!o9 A4ra2a3son and 2e !aer 4ound 2i3se!: o Bor8 :or 2i3 :or a period
o: 29rs Bi2 a sa!ar9 o: P,0 per Bee8. In.!uded in 2e a/ree3en is a pro2i4iion o:
A4ra2a3son :ro3 en/a/in/ in a si3i!ar or .o3peiive 4usiness o an9B2ere Bi2in 2e
P2i!ippine Is!ands :or a period o: Cve 9ears. T2e duies per:or3ed 49 2e de:endan Bere
su.2 o 3a8e i ne.essar9 :or 2i3 o 4e /enera!!9 8noB!ed/ea4!e o: 5!!endor6?s
4usiness0 3oreover0 2e 2ad 4een en/a/ed in si3i!ar Bor8 :or severa! 9ears even 4e:ore
2is e3p!o93en o: 2e p!aini6?s e34roider9 4usiness.
A:er so3e 3on2s :ro3 2is deparure :or 2e =S0 A4ra2a3son reurned o 1ani!a and is
noB a 3ana/er o: 2e P2i!ippine =nderBear $o. T2is .orporaion0 un!i8e 5!!endor6?s0
does no 3ainain a :a.or9 in P2i!. Is!ands 4u send 3aeria! and e34roider9 desi/ns
:ro3 "eB Dor8 o is !o.a! represenaive 2ere B2o e3p!o9s -i!ipino need!e Bor8ers o
e34roider 2e desi/ns and 3a8e up 2e /ar3ens in 2eir 2o3es. T2e on!9 di6eren.e
4eBeen p!aini6Ls 4usiness and 2a o: 2e Cr3 49 B2i.2 2e de:endan is e3p!o9ed0 is
2e 3e2od o: doin/ 2e Cnis2in/ Bor8 )) 2e 3anu:a.ure o: 2e e34roidered 3aeria!
ino Cnis2ed /ar3ens. P!aini6 .o33en.ed an a.ion o preven 49 inGun.ion0 an9
:ur2er 4rea.2 o: 2a par o: de:endanLs .onra. o: e3p!o93en 49 B2i.2 2e a/reed
2a 2e Bou!d no Iener ino or en/a/e 2i3se!: dire.!9 or indire.!9 . . . in a si3i!ar or
.o3peiive 4usiness o 2a o: (p!aini6) an9B2ere Bi2in 2e P2i!ippine Is!ands :or a
period o: Cve 9ears . . .I :ro3 2e dae o: 2e a/ree3en.
-ssue" ;5" 2e par o: 2e a/ree3en resrainin/ 2e de:endan :ro3 en/a/in/ ino
si3i!ar 4usiness o: 2e p!aini6 is voidJ
5eld" T2e .onra. Bas no void as .onsiuin/ an unreasona4!e resrain o: rade.
T2e ru!e in 2is Gurisdi.ion is 2a 2e o4!i/aions .reaed 49 .onra.s 2ave 2e $orce o$
la! 4eBeen 2e .onra.in/ paries and 3us 4e en:or.e in a..ordan.e Bi2 2eir enor.
($ivi! $ode0 ar 1091.) T2e on!9 !i3iaion upon 2e :reedo3 o: .onra.ua! a/ree3en is
2a 2e pa.s esa4!is2ed s2a!! no 4e .onrar9 o I!aB0 3ora!s or pu4!i. order.I ($ivi!
$ode0 Ar. 12,,.)
-o!!oBin/ 2e ru!e in Mitc&el vs. Reynolds0 $our adop 2e 3odern ru!e 2a 2e va!idi9
o: resrains upon rade or e3p!o93en is o 4e deer3ined 49 2e inrinsin.
reasona4!eness o: resri.ion in ea.2 .ase0 ra2er 2an 49 an9 CAed ru!e0 and 2a su.2
resri.ions 3a9 4e up2e!d B2en no .onrar9 o a6ord a :air and reasona4!e proe.ion
o 2e par9 in B2ose :avor i is i3posed.
EAa3inin/ 2e .onra. 2ere in Kuesion :ro3 2is sand poin0 i does no see3 so Bi2
respe. o an e3p!o9ee B2ose duies are su.2 as o: ne.essi9 o /ive 2i3 an insi/2
ino 2e /enera! s.ope and deai!s o: 2is e3p!o9ers 4usiness. A 4usiness enerprise 3a9
and o:en does depend :or is su..ess upon 2e oBnerLs re!aions Bi2 o2er dea!ers0 2is
s8i!! in esa4!is2in/ :avora4!e .onne.ions0 2is 3e2ods o: 4u9in/ and se!!in/ )) a
3u!iude o: deai!s0 none via! i: .onsidered a!one0 4u B2i.2 in 2e a//re/ae
.onsiue 2e su3 oa! o: 2e advana/es B2i.2 2e resu! o: 2e eAperien.e or
individua! apiude and a4i!i9 o: 2e 3an or 3en 49 B2o3 2e 4usiness 2as 4een 4ui!
up. -ai!ure or su..ess 3a9 depend upon 2e possession o: 2ese inan/i4!e 4u a!!
i3poran asses0 and i is naura! 2a 2eir possessor s2ou!d see8 o 8eep 2e3 :ro3
:a!!in/ ino 2e 2ands o: 2is .o3peiors. I is Bi2 2is o4Ge. in vieB 2a su.2
resri.ions as 2a noB under .onsideraion are Brien ino .onra.s o: e3p!o93en.
T2eir purpose is 2e proe.ion o: 2e e3p!o9er0 and i: 2e9 do no /o 4e9ond B2a is
reasona4!9 ne.essar9 o e6e.uae 2is purpose 2e9 s2ou!d 4e up2e!d.
30
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Del Castillo vs 'i#;mond ./0&(1 2.'. L-&//&3
4a#ts"
S2annon Ri.23ond and A!:onso de! $asi!!o enered ino a O$onra. o: Renderin/
Servi.esM0 B2ere49 de! $asi!!o a/rees o ener 2e e3p!o9 o: Ri.23ond as a p2ar3a.is
Bi2 a 3on2!9 re3uneraion o: P12, ea.2 3on2.
Para/rap2 & o: 2e said .onra. read as :o!!oBsP
&. T2a in .onsideraion o: 2e :a. 2a 2e said A!:onso de! $asi!!o 2as Gus /raduaed
as a p2ar3a.is and up o 2e presen i3e 2as no 4een e3p!o9ed in 2e .apa.i9 o:
a p2ar3a.is and in .onsideraion o: 2is e3p!o93en and 2e 3on2!9 sa!ar9
3enioned in 2is .onra.0 2e said A!:onso de! $asi!!o a!so a/rees no o open0 nor
oBn nor 2ave an9 ineres dire.!9 or indire.!9 in an9 o2er dru/sore ei2er in 2is
oBn na3e or in 2e na3e o: ano2erN nor 2ave an9 .onne.ion Bi2 or 4e e3p!o9ed
49 an9 o2er dru/sore siuaed Bi2in a radius o: our 3i!es :ro3 2e disri. o:
#e/aspi0 3uni.ipa!i9 and Provin.e o: A!4a90 B2i!e 2e said S2annon Ri.23ond or 2is
2eirs 3a9 oBn or 2ave open a dru/sore0 or 2ave an ineres in an9 o2er one Bi2in
2e !i3is o: 2e disri.s o: #e/aspi0 A!4a90 and Dara/a o: 2e 3uni.ipa!i9 o: A!4a90
Provin.e o: A!4a9.
T2e p!aini6 a!!e/es 2a 2e provisions and .ondiions .onained in 2e 2ird para/rap2
o: said .onra. .onsiue an i!!e/a! and unreasona4!e resri.ion upon 2is !i4er9 o
.onra.0 are .onrar9 o pu4!i. po!i.90 and are unne.essar9 in order o .onsiue a Gus
and reasona4!e proe.ion o 2e de:endanN and as8ed 2a 2e sa3e 4e de.!ared nu!!
and void and o: no e6e..
-ssue" ;5" 2e provisions and .ondiions .onained in 2e &rd para/rap2 o: said
.onra. .onsiue an i!!e/a! and unreasona4!e resri.ion upon p!aini6s? !i4er9 o
.onra.J
5eld" T2e .onra. 2e annu!3en o: B2i.2 is sou/2 49 2e p!aini6 is nei2er
oppressive o 2i30 nor unreasona4!9 ne.essar9 o proe. 2e de:endanLs 4usiness0 nor
preGudi.ia! o 2e pu4!i. ineres.
T2e !aB .on.ernin/ .onra.s B2i.2 end o resrain 4usiness or rade 2as /one 2rou/2
a !on/ series o: .2an/es :ro3 i3e o i3e Bi2 2e .2an/in/ .ondiions o: rade and
.o33er.e. ;i2 riSin/ eA.epions0 said .2an/es 2ave 4een a .oninuous deve!op3en
o: a /enera! ru!e. #aer0 2e ru!e 4e.a3e Be!! esa4!is2ed 2a i: 2e resrain Bas !i3ied
o Ia .erain i3eI and Bi2in Ia .erain p!a.e0I su.2 .onra.s Bere va!id and no
Ia/ains 2e 4eneC o: 2e sae.I #aer .ases0 and Be 2in8 2e ru!e is noB Be!!
esa4!is2ed0 2ave 2e!d 2a a .onra. in resrain o: rade is va!id providin/ 2ere is a
!i3iaion upon ei2er i3e or p!a.e. A .onra.0 2oBever0 B2i.2 resrains a 3an :ro3
enerin/ ino a 4usiness or rade Bi2ou ei2er a !i3iaion as o i3e or p!a.e0 Bi!! 4e
2e!d inva!id.
I: 2e .onra. is reasona4!9 ne.essar9 o proe. 2e ineres o: 2e paries0 i Bi!! 4e
up2e!d. (-llendorf vs. A(ra&amson, ./ 0&il., 1/1.)
31
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
In 2a .ase Be 2e!d 2a a .onra. 49 B2i.2 an e3p!o9ee a/rees o re:rain :or a /iven
!en/2 o: i3e0 a:er 2e eApiraion o: 2e er3 o: 2is e3p!o93en0 :ro3 en/a/in/ in a
4usiness0 .o3peiive Bi2 2a o: 2is e3p!o9er0 is no void as 4ein/ in resrain o: rade
i: 2e resrain i3posed is no /reaer 2an 2a B2i.2 is ne.essar9 o a6ord a
reasona4!e proe.ion. In a!! .ases !i8e 2e presen0 2e Kuesion is B2e2er0 under 2e
pari.u!ar .ir.u3san.es o: 2e .ase and 2e naure o: 2e pari.u!ar .onra. invo!ved
in i0 2e .onra. is0 or is no0 unreasona4!e
+;ili!!ine $elegra!; < $ele!;one Co vs 6L'C ./0031 2.'. //9039
4a#ts"
See8in/ re!ie: 2rou/2 2e eAraordinar9 Bri o: certiorari0 peiioner P2i!ippine Te!e/rap2
and Te!ep2one $o3pan9 (2erea:er0 PT7T) invo8es 2e a!!e/ed .on.ea!3en o: .ivi!
saus and de:a!.aion o: .o3pan9 :unds as /rounds o er3inae 2e servi.es o: an
e3p!o9ee. T2a e3p!o9ee0 2erein privae responden Gra.e de Gu*3an0 .onrari!9
ar/ues 2a B2a rea!!9 3oivaed PT7T o er3inae 2er servi.es Bas 2er 2avin/
.onra.ed 3arria/e durin/ 2er e3p!o93en0 B2i.2 is pro2i4ied 49 peiioner in is
.o3pan9 po!i.ies. S2e 2us .!ai3s 2a s2e Bas dis.ri3inaed a/ains in /ross vio!aion
o: !aB0 su.2 a pros.ripion 49 an e3p!o9er 4ein/ ou!aBed 49 Ari.!e 1&% o: 2e #a4or
$ode.
-ssue" ;5" 2e po!i.9 o: no a..epin/ or .onsiderin/ as disKua!iCed :ro3 Bor8 an9
Bo3an Bor8er B2o .onra.s 3arria/e is va!idJ
5eld" Peiioner?s po!i.9 o: no a..epin/ or .onsiderin/ as disKua!iCed :ro3 Bor8 an9
Bo3an Bor8er B2o .onra.s 3arria/e runs a:ou! o: 2e es o:0 and 2e ri/2 a/ains0
dis.ri3inaion0 a6orded a!! Bo3en Bor8ers 49 our !a4or !aBs and 49 no !ess 2an 2e
$onsiuion.
T2e $onsiuion0 .o/ni*an o: 2e dispari9 in ri/2s 4eBeen 3en and Bo3en in a!3os
a!! p2ases o: so.ia! and po!ii.a! !i:e0 provides a /a3u o: proe.ive provisions.
A.8noB!ed/ed as para3oun in 2e due pro.ess s.2e3e is 2e .onsiuiona! /uaranee
o: proe.ion o !a4or and se.uri9 o: enure. T2us0 an e3p!o9er is reKuired0 as a
.ondiion sine 2ua non prior o severan.e o: 2e e3p!o93en ies o: an individua! under
2is e3p!o90 o .onvin.in/!9 esa4!is20 2rou/2 su4sania! eviden.e0 2e eAisen.e o: a
va!id and Gus .ause in dispensin/ Bi2 2e servi.es o: su.2 e3p!o9ee0 one?s !a4or 4ein/
re/arded as .onsiuiona!!9 proe.ed proper9. T2e /overn3en0 o repea0 a42ors an9
sipu!aion or po!i.9 in 2e naure o: 2a adoped 49 peiioner PT7T. T2e #a4or $ode
saes0 in no un.erain er3s0 as :o!!oBsP
OART. 1&%. tipulation against marriage. ) I s2a!! 4e un!aB:u! :or an e3p!o9er o
reKuire as a .ondiion o: e3p!o93en or .oninuaion o: e3p!o93en 2a a Bo3an
s2a!! no /e 3arried0 or o sipu!ae eApress!9 or a.i!9 2a upon /ein/ 3arried0 a
Bo3an e3p!o9ee s2a!! 4e dee3ed resi/ned or separaed0 or o a.ua!!9 dis3iss0
dis.2ar/e0 dis.ri3inae or o2erBise preGudi.e a Bo3an e3p!o9ee 3ere!9 49 reason
o: 3arria/e.M
In 2e .ase a 4ar0 i .an easi!9 4e seen :ro3 2e 3e3orandu3 sen o privae
responden 49 2e 4ran.2 supervisor o: 2e .o3pan90 Bi2 2e re3inder0 2a O9ou?re
:u!!9 aBare 2a 2e .o3pan9 is no a..epin/ 3arried Bo3en e3p!o9ee (si.)0 as i Bas
ver4a!!9 insru.ed o 9ou.M A/ain0 in 2e er3inaion noi.e sen o 2er 49 2e sa3e
4ran.2 supervisor0 privae responden Bas 3ade o undersand 2a 2er severan.e :ro3
2e servi.e Bas no on!9 49 reason o: 2er .on.ea!3en o: 2er 3arried saus 4u0 over
and on op o: 2a0 Bas 2er vio!aion o: 2e .o3pan9?s po!i.9 a/ains 3arria/e (Oand
32
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
even o!d 9ou 2a 3arried Bo3en e3p!o9ees are no app!i.a4!e Qsi.R or a..eped in our
.o3pan9.M
Peiioner?s po!i.9 is no on!9 in dero/aion o: 2e provisions o: Ari.!e 1&% o: 2e #a4or
$ode on 2e ri/2 o: a Bo3an o 4e :ree :ro3 an9 8ind o: sipu!aion a/ains 3arria/e in
.onne.ion Bi2 2er e3p!o93en0 4u i !i8eBise assau!s /ood 3ora!s and pu4!i. po!i.90
endin/ as i does o deprive a Bo3an o: 2e :reedo3 o .2oose 2er saus0 a privi!e/e
2a 49 a!! a..ouns in2eres in 2e individua! as an inan/i4!e and ina!iena4!e
ri/2. Hen.e0 B2i!e i is rue 2a 2e paries o a .onra. 3a9 esa4!is2 an9
a/ree3ens0 er3s0 and .ondiions 2a 2e9 3a9 dee3 .onvenien0 2e sa3e s2ou!d
no 4e .onrar9 o !aB0 3ora!s0 /ood .uso3s0 pu4!i. order0 or pu4!i. po!i.9. $arried o
is !o/i.a! .onseKuen.es0 i 3a9 even 4e said 2a peiioner?s po!i.9 a/ains !e/ii3ae
3aria! 4onds Bou!d en.oura/e i!!i.i or .o33on)!aB re!aions and su4ver 2e
sa.ra3en o: 3arria/e.
Dun#an Asso. Af Detailman-+$2@A vs 2laGo @ell#ome +;ils.= .&))(1 2.'.
/7&00(
4a#ts"
Peiioner Pedro Te.son Bas 2ired 49 responden G!aAo as 3edi.a! represenaive0 a:er
Te.son 2ad under/one rainin/ and orienaion. T2erea:er0 Te.son si/ned a .onra. o:
e3p!o93en B2i.2 sipu!aes0 a3on/ o2ers0 t&at &e agrees to study and a(ide (y
e'isting company rules3 to disclose to management any e'isting or $uture relations&ip
(y consanguinity or a4nity !it& co5employees or employees o$ competing drug
companies and s&ould management 6nd t&at suc& relations&ip poses a possi(le con7ict
o$ interest, to resign $rom t&e company. T2e E3p!o9ee $ode o: $ondu. o: G!aAo
si3i!ar!9 provides t&at an employee is e'pected to in$orm management o$ any e'isting
or $uture relations&ip (y consanguinity or a4nity !it& co5employees or employees o$
competing drug companies.
Te.son Bas iniia!!9 assi/ned o 3ar8e G!aAo?s produ.s in 2e $a3arines Sur)
$a3arines "ore sa!es area. Su4seKuen!90 Te.son enered ino a ro3ani. re!aions2ip
Bi2 (es90 an e3p!o9ee o: Asra0 a .o3peior o: G!aAo. S2e Bas Asra?s (ran.2
$oordinaor in A!4a9 and supervised 2e disri. 3ana/ers and 3edi.a! represenaives
o: 2er .o3pan9 and prepared 3ar8ein/ srae/ies :or Asra in 2a area. T2e Bo
3arried even Bi2 2e severa! re3inders /iven 49 2e Disri. 1ana/er o Te.son. In
Januar9 19990 Te.son?s superiors in:or3ed 2i3 2a 2is 3arria/e o (es9 /ave rise o a
.onSi. o: ineres. Te.son?s superiors re3inded 2i3 2a 2e and (es9 s2ou!d de.ide
B2i.2 one o: 2e3 Bou!d resi/n :ro3 2eir Go4s0 a!2ou/2 2e9 o!d 2i3 2a 2e9
Baned o reain 2i3 as 3u.2 as possi4!e 4e.ause 2e Bas per:or3in/ 2is Go4 Be!!. T2is
siuaion evenua!!9 !ed o 2is .onsru.ive dis3issa!.
-ssue" ;5" G!aAo?s po!i.9 pro2i4iin/ is e3p!o9ees :ro3 3arr9in/ an e3p!o9ee o: a
.o3peior .o3pan9 is va!idJ
5eld" G!aAo?s po!i.9 pro2i4iin/ an e3p!o9ee :ro3 2avin/ a re!aions2ip Bi2 an
e3p!o9ee o: a .o3peior .o3pan9 is a va!id eAer.ise o: 3ana/e3en prero/aive.
Te.son?s .onra. o: e3p!o93en Bi2 G!aAo 4ein/ Kuesioned0 sipu!aes 2a Tes.on
a/rees o a4ide 49 2e eAisin/ .o3pan9 ru!es o: G!aAo0 and o sud9 and 4e.o3e
a.Kuained Bi2 su.2 po!i.ies. In 2is re/ard0 2e E3p!o9ee Hand4oo8 o: G!aAo eApress!9
in:or3s is e3p!o9ees o: is ru!es re/ardin/ .onSi. o: ineres. "o reversi4!e error .an
4e as.ri4ed o 2e $our o: Appea!s B2en i ru!ed 2a G!aAo?s po!i.9 pro2i4iin/ an
e3p!o9ee :ro3 2avin/ a re!aions2ip Bi2 an e3p!o9ee o: a .o3peior .o3pan9 is a
va!id eAer.ise o: 3ana/e3en prero/aive. G!aAo 2as a ri/2 o /uard is rade se.res0
3anu:a.urin/ :or3u!as0 3ar8ein/ srae/ies and o2er .onCdenia! pro/ra3s and
33
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
in:or3aion :ro3 .o3peiors0 espe.ia!!9 so 2a i and Asra are riva! .o3panies in 2e
2i/2!9 .o3peiive p2ar3a.eui.a! indusr9.
T2e pro2i4iion a/ains persona! or 3aria! re!aions2ips Bi2 e3p!o9ees o: .o3peior
.o3panies upon G!aAo?s e3p!o9ees is reasona4!e under 2e .ir.u3san.es 4e.ause
re!aions2ips o: 2a naure 3i/2 .o3pro3ise 2e ineress o: 2e .o3pan9. In !a9in/
doBn 2e assai!ed .o3pan9 po!i.90 G!aAo on!9 ai3s o proe. is ineress a/ains 2e
possi4i!i9 2a a .o3peior .o3pan9 Bi!! /ain a..ess o is se.res and pro.edures.
T2a G!aAo possesses 2e ri/2 o proe. is e.ono3i. ineress .anno 4e denied. "o
!ess 2an 2e $onsiuion re.o/ni*es 2e ri/2 o: enerprises o adop and en:or.e su.2
a po!i.9 o proe. is ri/2 o reasona4!e reurns on inves3ens and o eApansion and
/roB2. Indeed0 B2i!e our !aBs endeavor o /ive !i:e o 2e .onsiuiona! po!i.9 on so.ia!
Gusi.e and 2e proe.ion o: !a4or0 i does no 3ean 2a ever9 !a4or dispue Bi!! 4e
de.ided in :avor o: 2e Bor8ers. T2e !aB a!so re.o/ni*es 2a 3ana/e3en 2as ri/2s
B2i.2 are a!so eni!ed o respe. and en:or.e3en in 2e ineres o: :air p!a9.
Star +a!er Cor!.= vs Simbol .&))71 2.'. /7(33(
4a#ts"
Si34o! Bas e3p!o9ed 49 2e .o3pan9 on 5. 199&. He 3e A!3a Da9ri0 a!so an
e3p!o9ee o: 2e .o3pan90 B2o3 2e 3arried. Prior o 2e 3arria/e0 5n/si.o advised
2e .oup!e 2a s2ou!d 2e9 de.ide o /e 3arried0 one o: 2e3 s2ou!d resi/n pursuan
o a .o3pan9 po!i.9 o B2i.2 Si34o! .o3p!ied.
1. "eB app!i.ans Bi!! no 4e a!!oBed o 4e 2ired i: in .ase 2eFs2e 2as QaR re!aive0 up
o Q2eR &rd de/ree o: re!aions2ip0 a!read9 e3p!o9ed 49 2e .o3pan9.
2. In .ase o: Bo o: our e3p!o9ees (4o2 sin/!es QsicR0 one 3a!e and ano2er :e3a!e)
deve!oped a :riend!9 re!aions2ip durin/ 2e .ourse o: 2eir e3p!o93en and 2en
de.ided o /e 3arried0 one o: 2e3 s2ou!d resi/n o preserve 2e po!i.9 saed
a4ove.
-ssue" ;5" 2e po!i.9 o: 2e e3p!o9er 4annin/ spouses :ro3 Bor8in/ in 2e sa3e
.o3pan9 vio!aes 2e ri/2s o: 2e e3p!o9ee under 2e $onsiuion and 2e #a4or $ode
or is a va!id eAer.ise o: 3ana/e3en prero/aiveJ
5eld" Peiioners? so!e .onenion 2a I2e .o3pan9 did no Gus Ban o 2ave Bo or
3ore o: is e3p!o9ees re!aed 4eBeen 2e 2ird de/ree 49 aEni9 andFor
.onsan/uini9I

is !a3e.
Ari.!e 1&% o: 2e #a4or $ode B2i.2 providesP
I s2a!! 4e un!aB:u! :or an e3p!o9er o reKuire as a .ondiion o: e3p!o93en or
.oninuaion o: e3p!o93en 2a a Bo3an e3p!o9ee s2a!! no /e 3arried0 or o
sipu!ae eApress!9 or a.i!9 2a upon /ein/ 3arried a Bo3an e3p!o9ee s2a!! 4e
dee3ed resi/ned or separaed0 or o a.ua!!9 dis3iss0 dis.2ar/e0 dis.ri3inae or
o2erBise preGudi.e a Bo3an e3p!o9ee 3ere!9 49 reason o: 2er 3arria/e.
T2e reKuire3en 2a a .o3pan9 po!i.9 3us 4e reasonable under 2e .ir.u3san.es
o Kua!i:9 as a va!id eAer.ise o: 3ana/e3en prero/aive. I is si/niC.an o noe 2a in
2e .ase a 4ar0 respondens Bere 2ired a:er 2e9 Bere :ound C :or 2e Go40 4u Bere
as8ed o resi/n B2en 2e9 3arried a .o)e3p!o9ee. Peiioners :ai!ed o s2oB 2oB 2e
3arria/e o: Si34o!0 2en a S2eein/ 1a.2ine 5peraor0 o A!3a Da9ri0 2en an
e3p!o9ee o: 2e Repa.8in/ Se.ion0 .ou!d 4e deri3ena! o is 4usiness operaions. e.
T2e po!i.9 is pre3ised on 2e 3ere :ear 2a e3p!o9ees 3arried o ea.2 o2er Bi!! 4e
!ess eE.ien. I: Be up2o!d 2e Kuesioned ru!e Bi2ou va!id GusiC.aion0 2e e3p!o9er
.an .reae po!i.ies 4ased on an unproven presu3pion o: a per.eived dan/er a 2e
eApense o: an e3p!o9ee?s ri/2 o se.uri9 o: enure.
34
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2e Kuesioned po!i.9 3a9 no :a.ia!!9 vio!ae Ari.!e 1&% o: 2e #a4or $ode 4u i
.reaes a disproporionae e6e. and under 2e disparae i3pa. 2eor90 2e on!9 Ba9 i
.ou!d pass Gudi.ia! s.ruin9 is a s2oBin/ 2a i is reasonable despie 2e
dis.ri3inaor90 a!4ei disproporionae0 e6e.. T2e :ai!ure o: peiioners o prove a
!e/ii3ae 4usiness .on.ern in i3posin/ 2e Kuesioned po!i.9 .anno preGudi.e 2e
e3p!o9ee?s ri/2 o 4e :ree :ro3 ar4irar9 dis.ri3inaion 4ased upon sereo9pes o:
3arried persons Bor8in/ o/e2er in one .o3pan9.
'ivera vs Solidban? .&))71 2.'. /78&70
4a#ts"
Rivera 2ad 4een Bor8in/ :or 2e So!id4an8 sin.e 1977. In De. 199+0 de.idin/ o devoe
2is i3e and aenion o 2is pou!r9 4usiness in $avie0 Rivera app!ied :or reire3en.
Su4seKuen!90 So!id4an8 reKuired Rivera o si/n an undaed Re!ease0 ;aiver and
<ui.!ai30 Rivera a.8noB!ed/ed re.eip o: 2e ne pro.eeds o: 2is separaion and
reire3en 4eneCs and pro3ised 2a IQ2eR Bou!d no0 a an9 i3e0 in an9 3anner
B2asoever0 dire.!9 or indire.!9 en/a/e in an9 un!aB:u! a.ivi9 preGudi.ia! o 2e
ineres o: So!id4an80 is paren0 aE!iae or su4sidiar9 .o3panies0 2eir so.82o!ders0
oE.ers0 dire.ors0 a/ens or e3p!o9ees0 and 2eir su..essors)in)ineres and Bi!! no
dis.!ose an9 in:or3aion .on.ernin/ 2e 4usiness o: So!id4an80 is 3anner or operaion0
is p!ans0 pro.esses0 or daa o: an9 8ind.I
5n 1a9 199,0 2e EKuia4!e e3p!o9ed Rivera as 1ana/er o: is $redi Invesi/aion and
Appraisa! Division o: is $onsu3ers? (an8in/ Group. =pon dis.overin/ 2is0 So!id4an8
-irs >i.e)Presiden :or HRD $e!ia >i!!arosa Broe a !eer in:or3in/ Rivera 2a 2e 2ad
vio!aed 2e =ndera8in/. S2e !i8eBise de3anded 2e reurn o: a!! 2e 3onear9 4eneCs
2e re.eived in .onsideraion o: 2e SRP Bi2in Cve (,) da9s :ro3 re.eipN o2erBise0
appropriae !e/a! a.ion Bou!d 4e a8en a/ains 2i30 B2en Rivera re:used0 So!id4an8
C!ed .o3p!ain.
-ssue" ;5" 2e one 9ear e3p!o93en 4an i3posed 49 So!id4an8 upon Rivera is nu!!
and void :or 4ein/ unreasona4!e and oppressive and :or .onsiuin/ resrain o: radeJ
5eld" T2e pos)reire3en .o3peiive e3p!o93en 4an is unreasona4!e 4e.ause i 2as
no /eo/rap2i.a! !i3is.
Ari.!e 1&0% o: 2e "$$ provides 2a 2e .onra.in/ paries 3a9 esa4!is2 su.2
sipu!aions0 .!auses0 er3s and .ondiions as 2e9 3a9 dee3 .onvenien0 provided 2e9
are no .onrar9 o !aB0 3ora!s0 /ood .uso3s0 pu4!i. order or pu4!i. po!i.9. 5n 2e :a.e
o: 2e =ndera8in/0 2e pos)reire3en .o3peiive e3p!o93en 4an is unreasona4!e
4e.ause i 2as no /eo/rap2i.a! !i3isN responden is 4arred :ro3 a..epin/ an9 8ind o:
e3p!o93en in an9 .o3peiive 4an8 Bi2in 2e pros.ri4ed period. A!2ou/2 2e period
o: one 9ear 3a9 appear reasona4!e0 2e 3aer o: B2e2er 2e resri.ion is reasona4!e
or unreasona4!e .anno 4e as.erained Bi2 Cna!i9 so!e!9 :ro3 2e er3s and .ondiions
o: 2e =ndera8in/0 or even in ande3 Bi2 2e Re!ease0 ;aiver and <ui.!ai3.
E3p!o9er is 4urdened o esa4!is2 2a a resri.ive .ovenan 4arrin/ an e3p!o9ee :ro3
a..epin/ a .o3peiive e3p!o93en a:er reire3en or resi/naion is no an
unreasona4!e or oppressive0 or in undue or unreasona4!e resrain o: rade0 2us0
unen:or.ea4!e :or 4ein/ repu/nan o pu4!i. po!i.9. As 2e $our saed in *erra88ini v.
#sell, .ases invo!vin/ .onra.s in resrain o: rade are o 4e Gud/ed a..ordin/ o 2eir
.ir.u3san.es0 o BiP A A A T2ere are Bo prin.ipa! /rounds on B2i.2 2e do.rine is
:ounded 2a a .onra. in resrain o: rade is void as a/ains pu4!i. po!i.9. 5ne is0 2e inGur9
35
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
o 2e pu4!i. 49 4ein/ deprived o: 2e resri.ed par9?s indusr9N and 2e o2er is0 2e inGur9
o 2e par9 2i3se!: 49 4ein/ pre.!uded :ro3 pursuin/ 2is o..upaion0 and 2us 4ein/
prevened :ro3 supporin/ 2i3se!: and 2is :a3i!9.
In .ases B2ere an e3p!o9ee assai!s a .onra. .onainin/ a provision pro2i4iin/ 2i3 or
2er :ro3 a..epin/ .o3peiive e3p!o93en as a/ains pu4!i. po!i.90 2e e3p!o9er 2as
o addu.e eviden.e o prove 2a 2e resri.ion is reasona4!e and no /reaer 2an
ne.essar9 o proe. 2e e3p!o9er?s !e/ii3ae 4usiness ineress. T2e resrain 3a9 no
4e undu!9 2ars2 or oppressive in .urai!in/ 2e e3p!o9ee?s !e/ii3ae e6ors o earn a
!ive!i2ood and 3us 4e reasona4!e in !i/2 o: sound pu4!i. po!i.9.
Jrasuegui vs +;ili!!ine Airlines .&))91 2.'. /79)9/
4a#ts"
Peiioner Drasue/ui0 an inernaiona! Si/2 seBard o: P2i!ippine Air!ines In.. (PA#) Bas
dis3issed 4e.ause o: 2is :ai!ure o ad2ere o 2e Bei/2 sandards o: 2e air!ine
.o3pan9.
In .onseKuen.e 2ereo:0 peiioner C!ed a .o3p!ain :or i!!e/a! dis3issa! a/ains PA#
4e:ore 2e #a4or Ar4ier (#A). Te #a4or Ar4ier ru!ed 2a 2e peiioner Bas i!!e/a!!9
dis3issed. I a!so issued a Bri o: eAe.uion dire.in/ 2e reinsae3en o: 2e peiioner
Bi2ou !oss o: seniori9 and o2er 4eneCs0 and a!so 2e pa93en o: 4a.8Ba/es.
Responden PA# appea!ed o 2e "#R$ B2i.2 aEr3ed 2e #A?s de.ision. Responden PA#
appea!ed o 2e $our o: Appea!s. $A reversed 2e "#R$ .ase.
-ssue" ;2e2er 2e dis3issa! o: 2e peiioner va!id.
5eld" T2e $our up2e!d 2e !e/a!i9 o: 2e peiioner?s dis3issa!.
Separaion pa90 2oBever0 s2ou!d 4e aBarded in :avor o: 2e e3p!o9ee as an a. o:
so.ia! Gusi.e or 4ased on eKui9. T2is is so 4e.ause 2is dis3issa! is no serious
3is.ondu.. "ei2er is i reSe.ive o: 2is 3ora! .2ara.er.
T2e o4esi9 o: peiioner0 B2en p!a.ed in 2e .oneA o: 2is Bor8 as Si/2 aendan0
4e.o3es an ana!o/ous .ause under Ari.!e 2'2 (e) o: 2e #a4or ode. His o4esi9 3a9
no 4e uninended0 4u is none2e!ess vo!unar9. O>o!unariness 4asi.a!!9 3eans 2a 2e
Gus .ause is so!e!9 ari4ua4!e o 2e e3p!o9ee Bi2ou an9 eAerna! :or.e inSuen.in/
or .onro!!in/ 2is a.ions. T2is e!e3en runs 2rou/2 a!! Gus .auses under Ar. 2'20
B2e2er 2e9 4e in naure o: a Bron/:u! a.ion or o3ission. Gross and 2a4iua! ne/!e.0
a re.o/ni*ed Gus .ause0 is .onsidered vo!unar9 a!2ou/2 i !a.8s 2e e!e3en o: inen
:ound in Ar. 2'2 (a)0 (.)0 and (d).
E3p!o93en in pari.u!ar Go4s 3a9 no 4e !i3ied o persons o: a pari.u!ar seA0 re!i/ion0
or naiona! ori/in un!ess 2e e3p!o9er .an s2oB 2a seA0 re!i/ion0 or naiona! ori/in is
an a.ua! Kua!iC.aion :or per:or3in/ 2e Go4. T2e Kua!iC.aion is .a!!ed a 4ona Cde
o..upaiona! Kua!iC.aion ((-5<). In 2e =nied Saes0 2ere are a :eB :edera! and
3an9 sae Go4 dis.ri3inaion !aBs 2a .onain an eA.epion a!!oBin/ an e3p!o9er o
en/a/e in an o2erBise un!aB:u! :or3 o: pro2i4ied dis.ri3inaion B2en 2e a.ion is
4ased on a (-5< ne.essar9 o 2e nor3a! operaion o: a 4usiness or enerprise.
36
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
-law at %u?lod Manggagawa vs 6L'C ./00/1 /09 SC'A :97
4a#ts"
T2e union 8noBn as I!aB a (u8!od "/ 1an//a/aBa (I(1) said o represen +0,00
e3p!o9ees o: San 1i/ue! $orporaion0 3ore or !ess0 Bor8in/ a 2e various p!ans0
oE.es0 and Bare2ouses !o.aed a 2e "aiona! $apia! Re/ion presened o 2e
.o3pan9 a Ide3andI :or .orre.ion o: 2e si/niC.an disorion in 2e Bor8ersL Ba/es.
In 2a de3and0 2e =nion eAp!i.i!9 invo8ed Se.ion + (d) o: RA %727 B2i.2 reads as
:o!!oBsP ;2ere 2e app!i.aion o: 2e in.reases in 2e Ba/e raes under 2is Se.ion
resu!s in disorions as deCned under eAisin/ !aBs in 2e Ba/e sru.ure Bi2in an
esa4!is23en and /ives rise o a dispue 2erein0 su.2 dispue s2a!! Crs 4e se!ed
vo!unari!9 4eBeen 2e paries and in 2e even o: a dead!o.80 2e sa3e s2a!! 4e Cna!!9
reso!ved 2rou/2 .o3pu!sor9 ar4iraion 49 2e re/iona! 4ran.2es o: 2e "aiona! #a4or
Re!aions $o33ission 2avin/ Gurisdi.ion over 2e Bor8p!a.e. I s2a!! 4e 3andaor9 :or
2e "#R$ o .ondu. .oninuous 2earin/s and de.ide an9 dispue arisin/ under 2is
Se.ion Bi2in Ben9 (20) .a!endar da9s :ro3 2e i3e said dispue is :or3a!!9
su43ied o i :or ar4iraion. T2e penden.9 o: a dispue arisin/ :ro3 a Ba/e disorion
s2a!! no in an9 Ba9 de!a9 2e app!i.a4i!i9 o: 2e in.rease in 2e Ba/e raes pres.ri4ed
under 2is Se.ion.
-ssue" ;5" 2e sri8e is !e/a! in 2e reso!uion o: Ba/e disorion.
5eld" Sri8e is no !e/a! as a 3eans o: reso!vin/ Ba/e disorion.
37
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2e sri8e invo!vin/ 2e issue o: Ba/e disorion is i!!e/a! as a 3eans o: reso!vin/ i. T2e
!e/a!i9 o: 2ese a.iviies is usua!!9 dependen on 2e !e/a!i9 o: 2e purposes sou/2 o
4e aained and 2e 3eans e3p!o9ed 2ere:ore. I /oes Bi2ou sa9in/ 2a 2ese Goin
or .oordinaed a.iviies 3a9 4e :or4idden or resri.ed 49 !aB or .onra.. In 2e
insan.e o: Idisorions o: 2e Ba/e sru.ure Bi2in an esa4!is23enI resu!in/ :ro3
I2e app!i.aion o: an9 pres.ri4ed Ba/e in.rease 49 virue o: a !aB or Ba/e order0I
Se.ion & o: Repu4!i. A. "o. %727 pres.ri4es a spe.iC.0 deai!ed and .o3pre2ensive
pro.edure :or 2e .orre.ion 2ereo:0 2ere49 i3p!i.i!9 eA.!udin/ sri8es or !o.8ous or
o2er .on.ered a.iviies as 3odes o: se!e3en o: 2e issue.
T2e provision saes 2a 2e e3p!o9er and 2e union s2a!! ne/oiae o .orre. 2e
disorions. An9 dispue arisin/ :ro3 Ba/e disorions s2a!! 4e reso!ved 2rou/2 2e
/rievan.e pro.edure under 2eir .o!!e.ive 4ar/ainin/ a/ree3en and0 i: i re3ains
unreso!ved0 2rou/2 vo!unar9 ar4iraion. =n!ess o2erBise a/reed 49 2e paries in
Briin/0 su.2 dispue s2a!! 4e de.ided 49 2e vo!unar9 ar4iraor or pane! o: vo!unar9
ar4iraors Bi2in en (10) .a!endar da9s :ro3 2e i3e said dispue Bas re:erred o
vo!unar9 ar4iraion. In .ases B2ere 2ere are no .o!!e.ive a/ree3ens or re.o/ni*ed
!a4or unions0 2e e3p!o9ers and Bor8ers s2a!! endeavor o .orre. su.2 disorions. An9
dispue arisin/ 2ere :ro3 s2a!! 4e se!ed 2rou/2 2e "aiona! $on.i!iaion and
1ediaion (oard and0 i: i re3ains unreso!ved a:er en (10) .a!endar da9s o:
.on.i!iaion0 s2a!! 4e re:erred o 2e appropriae 4ran.2 o: 2e "aiona! #a4or Re!aions
$o33ission ("#R$). I s2a!! 4e 3andaor9 :or 2e "#R$ o .ondu. .oninuous 2earin/s
and de.ide 2e dispue Bi2in Ben9 (20) .a!endar da9s :ro3 2e i3e said dispue is
su43ied :or .o3pu!sor9 ar4iraion. T2e penden.9 o: a dispue arisin/ :ro3 a Ba/e
disorion s2a!! no in an9 Ba9 de!a9 2e app!i.a4i!i9 o: an9 in.rease in pres.ri4ed Ba/e
raes pursuan o 2e provisions o: !aB or ;a/e 5rder.
T2e !e/is!aive inen 2a so!uion o: 2e pro4!e3 o: Ba/e disorions s2a!! 4e sou/2 49
vo!unar9 ne/oiaion or ar4iraion0 and no 49 sri8es0 !o.8ous0 or o2er .on.ered
a.iviies o: 2e e3p!o9ees or 3ana/e3en0 is 3ade .!ear in 2e ru!es i3p!e3enin/ RA
%727 issued 49 2e Se.rear9 o: #a4or and E3p!o93en pursuan o 2e au2ori9
/raned 49 Se.ion 1& o: 2e A.. Se.ion 1%0 $2aper I o: 2ese i3p!e3enin/ ru!es0
a:er reierain/ 2e po!i.9 2a Ba/e disorions 4e Crs se!ed vo!unari!9 49 2e
paries and evenua!!9 49 .o3pu!sor9 ar4iraion0 de.!ares 2a0 IAn9 issue invo!vin/
Ba/e disorion s2a!! no 4e a /round :or a sri8eF!o.8ou.I
38
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
,m!loyers Confederation of t;e +;ils vs 6@+C ./00/1 &)/ SC'A 3:0
4a#ts"
E$5P Kuesioned 2e va!idi9 o: 2e Ba/e order issued 49 2e RT;P( daed 5.o4er 2&0
1990 pursuan o 2e au2ori9 /raned 49 RA %727. T2e Ba/e order in.reased 2e
3ini3u3 Ba/e 49 P17.00 dai!9 in 2e "aiona! $apia! Re/ion.
T2e Ba/e order is app!ied o a!! Bor8ers and e3p!o9ees in 2e privae se.or o: an
in.rease o: P 17.00 in.!udin/ 2ose B2o are paid a4ove 2e sauor9 Ba/e rae. E$5P
appea!ed Bi2 2e ";P$ 4u dis3issed 2e peiion.
T2e So!i.ior Genera! in is .o33en posis 2a 2e (oard upon 2e issuan.e o: 2e
Ba/e order CAed 3ini3u3 Ba/es a..ordin/ o 2e sa!ar9 3e2od. Peiioners insis 2a
2e poBer o: RT;P( Bas de!e/aed0 2rou/2 RA %7270 o /ran 3ini3u3 Ba/e
adGus3ens and in 2e a4sen.e o: au2ori90 i .an on!9 adGus Soor Ba/es.
-ssue" ;5" 2e Ba/e order issues 49 RT;P( daed 5.o4er 2&0 1990 is va!id.
5eld" ;a/e order is va!id.
39
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2e $our a/rees Bi2 2e So!i.ior Genera!. I noed 2a 2ere are Bo Ba9s in 2e
deer3inaion o: Ba/e0 2ese are Soor Ba/e 3e2od and sa!ar9 .ei!in/ 3e2od. T2e
Soor Ba/e 3e2od invo!ves 2e CAin/ o: deer3inae a3oun 2a Bou!d 4e added o
2e prevai!in/ sauor9 3ini3u3 Ba/e B2i!e 2e sa!ar9 .ei!in/ 3e2od invo!ves B2ere
2e Ba/e adGus3en is app!ied o e3p!o9ees re.eivin/ a .erain deno3inaed sa!ar9
.ei!in/.
RA %727 /ave sauor9 sandards :or CAin/ 2e 3ini3u3 Ba/e.
ART. 12+. SandardsF$rieria :or 1ini3u3 ;a/e -iAin/ T T2e re/iona! 3ini3u3
Ba/es o 4e esa4!is2ed 49 2e Re/iona! (oard s2a!! 4e as near!9 adeKuae as is
e.ono3i.a!!9 :easi4!e o 3ainain 2e 3ini3u3 sandards o: !ivin/ ne.essar9 :or 2e
2ea!20 eE.ien.9 and /enera! Be!!)4ein/ o: 2e e3p!o9ees Bi2in 2e :ra3eBor8 o:
2e naiona! e.ono3i. and so.ia! deve!op3en pro/ra3. In 2e deer3inaion o: su.2
re/iona! 3ini3u3 Ba/es0 2e Re/iona! (oard s2a!!0 a3on/ o2er re!evan :a.ors0
.onsider 2e :o!!oBin/P
(a) T2e de3and :or !ivin/ Ba/esN
(4) ;a/e adGus3en vis)a)vis 2e .onsu3er pri.e indeAN
(.) T2e .os o: !ivin/ and .2an/es or in.reases 2ereinN
(d) T2e needs o: Bor8ers and 2eir :a3i!iesN
(e) T2e need o indu.e indusries o inves in 2e .ounr9sideN
(:) I3prove3ens in sandards o: !ivin/N
(/) T2e prevai!in/ Ba/e !eve!sN
(2) -air reurn o: 2e .apia! invesed and .apa.i9 o pa9 o: e3p!o9ersN
(i) E6e.s o: e3p!o93en /eneraion and :a3i!9 in.o3eN and
(G) T2e eKuia4!e disri4uion o: in.o3e and Bea!2 a!on/ 2e i3peraives o:
e.ono3i. and so.ia! deve!op3en.I
T2e Ba/e order Bas no a.ed in eA.ess o: 4oard?s au2ori9. T2e !aB /ave reasona4!e
!i3iaions o 2e de!e/aed poBer o: 2e 4oard.
40
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Mabea vs 6L'C .1 &3/ SC'A 73)
4a#ts"
Peiioner "or3a 1a4e*a .onends 2a on 2e Crs Bee8 o: 1a9 19910 s2e and 2er .o)
e3p!o9ees a 2e Hoe! Supre3e in (a/uio $i9 Bere as8ed 49 2e 2oe!Ls 3ana/e3en
o si/n an insru3en aesin/ o 2e !aerLs .o3p!ian.e Bi2 3ini3u3 Ba/e and o2er
!a4or sandard provisions o: !aB. Peiioner si/ned 2e aEdavi 4u re:used o /o o 2e
$i9 Prose.uorLs 5E.e o sBear o 2e vera.i9 and .onens o: 2e aEdavi as
insru.ed 49 3ana/e3en. T2e aEdavi Bas never2e!ess su43ied on 2e sa3e da9
o 2e Re/iona! 5E.e o: 2e Depar3en o: #a4or and E3p!o93en in (a/uio $i9.
T2e aEdavi Bas draBn 49 3ana/e3en :or 2e so!e purpose o: re:uin/ Cndin/s o: 2e
#a4or Inspe.or o: D5#E apparen!9 adverse o 2e privae responden. A:er s2e re:used
o pro.eed o 2e $i9 Prose.uorLs 5E.e0 peiioner saes 2a s2e Bas ordered 49 2e
2oe! 3ana/e3en o urn over 2e 8e9s o 2er !ivin/ Kuarers and o re3ove 2er
4e!on/in/s :ro3 2e 2oe! pre3ises. A..ordin/ o 2er0 responden sron/!9 .2ided 2er
41
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
:or re:usin/ o pro.eed o 2e $i9 Prose.uorLs 5E.e o aes o 2e aEdavi. S2e
2erea:er re!u.an!9 C!ed a !eave o: a4sen.e :ro3 2er Go4 B2i.2 Bas denied 49
3ana/e3en. ;2en s2e ae3ped o reurn o Bor8 on 1a9 19910 2e 2oe!Ls .as2ier
in:or3ed 2er 2a s2e s2ou!d no repor o Bor8 and0 insead0 .oninue Bi2 2er
unoE.ia! !eave o: a4sen.e.
$onseKuen!90 2ree da9s a:er 2er ae3p o reurn o Bor80 peiioner C!ed a
.o3p!ain :or i!!e/a! dis3issa! 4e:ore 2e Ar4iraion (ran.2 o: 2e "aiona! #a4or
Re!aions $o33ission T $AR (a/uio $i9. In addiion o 2er .o3p!ain :or i!!e/a!
dis3issa!0 s2e a!!e/ed underpa93en o: Ba/es0 non)pa93en o: 2o!ida9 pa90 servi.e
in.enive !eave pa90 1&2 3on2 pa90 ni/2 di6erenia! and o2er 4eneCs.
Respondin/ o 2e a!!e/aions :or i!!e/a! dis3issa!0 privae responden Peer "/ a!!e/ed
4e:ore #a4or Ar4ier 2a peiioner surrepiious!9 !e: 2er Go4 Bi2ou noi.e o 2e
3ana/e3en and 2a s2e a.ua!!9 a4andoned 2er Bor8. He 3ainained 2a 2ere Bas
no 4asis :or 2e 3one9 .!ai3s :or underpa93en and o2er 4eneCs as 2ese Bere paid
in 2e :or3 o: :a.i!iies o peiioner and 2e 2oe!Ls o2er e3p!o9ees.
#a4or Ar4ier dis3issed 2e .o3p!ain. 5n Apri! 199+0 responden "#R$ pro3u!/aed is
assai!ed Reso!uion aEr3in/ 2e #a4or Ar4ierLs de.ision.
-ssue" ;5" 2e e3p!o9er?s eAered pressure0 in 2e :or3 o: resrain0 iner:eren.e or
.oer.ion0 a/ains 2is e3p!o9eeLs ri/2 o insiue .on.ered a.ion :or 4eer er3s and
.ondiions o: e3p!o93en .onsiues un:air !a4or pra.i.e.
5eld" T2e $our ru!ed 2a 2ere Bas un:air !a4or pra.i.e.
;i2ou dou40 2e a. o: .o3pe!!in/ e3p!o9ees o si/n an insru3en indi.ain/ 2a
2e e3p!o9er o4served !a4or sandards provisions o: !aB B2en 2e 3i/2 2ave no0
o/e2er Bi2 2e a. o: er3inain/ or .oer.in/ 2ose B2o re:use o .ooperae Bi2 2e
e3p!o9erLs s.2e3e .onsiues un:air !a4or pra.i.e. T2e Crs a. .!ear!9 pree3ps 2e
ri/2 o: 2e 2oe!Ls Bor8ers o see8 4eer er3s and .ondiions o: e3p!o93en 2rou/2
.on.ered a.ion. -or re:usin/ o .ooperae Bi2 2e privae respondenLs s.2e3e0
peiioner Bas o4vious!9 2e!d up as an eAa3p!e o a!! o: 2e 2oe!Ls e3p!o9ees0 2a
2e9 .ou!d on!9 .ause rou4!e o 3ana/e3en a /rea persona! in.onvenien.e. I3p!i.i
in 2e a. o: peiionerLs er3inaion and 2e su4seKuen C!in/ o: .2ar/es a/ains 2er
Bas 2e Barnin/ 2a 2e9 Bou!d no on!9 4e deprived o: 2eir 3eans o: !ive!i2ood0 4u
a!so possi4!90 2eir persona! !i4er9.
Granin/ 2a 3ea!s and !od/in/ Bere provided and indeed .onsiued :a.i!iies0 su.2
:a.i!iies .ou!d no 4e dedu.ed Bi2ou 2e e3p!o9er .o3p!9in/ Crs Bi2 .erain !e/a!
reKuire3ens. ;i2ou sais:9in/ 2ese reKuire3ens0 2e e3p!o9er si3p!9 .anno
dedu. 2e va!ue :ro3 2e e3p!o9eeLs Ba/es. -irs0 proo: 3us 4e s2oBn 2a su.2
:a.i!iies are .uso3ari!9 :urnis2ed 49 2e rade. Se.ond0 2e provision o: dedu.i4!e
:a.i!iies 3us 4e vo!unari!9 a..eped in Briin/ 49 2e e3p!o9ee. -ina!!90 :a.i!iies 3us
4e .2ar/ed a :air and reasona4!e va!ue. T2ese reKuire3ens Bere no 3e in 2e
insan .ase.
1ore si/niC.an!90 2e :ood and !od/in/0 or 2e e!e.ri.i9 and Baer .onsu3ed 49 2e
peiioner Bere no :a.i!iies 4u supp!e3ens. A 4eneC or privi!e/e /raned o an
e3p!o9ee :or 2e .onvenien.e o: 2e e3p!o9er is no a :a.i!i9. T2e .rierion in 3a8in/ a
disin.ion 4eBeen 2e Bo no so 3u.2 !ies in 2e 8ind (:ood0 !od/in/) 4u 2e purpose.
$onsiderin/ 2a 2oe! Bor8ers are reKuired o Bor8 di6eren s2i:s and are eApe.ed o
42
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
4e avai!a4!e a various odd 2ours0 2eir read9 avai!a4i!i9 is a ne.essar9 3aer in 2e
operaions o: a s3a!! 2oe!0 su.2 as 2e privae respondenLs 2oe!.
Joy %rot;ers -n#.= vs 6@+C ./0031 &38 SC'A 7&&
4a#ts"
;a/e 5rder "o. "$R)0&0 providin/ :or a Ben9)seven peso Ba/e in.rease :or a!!
privae se.or Bor8ers and e3p!o9ees in 2e "aiona! $apia! Re/ion re.eivin/ one
2undred C:9):our pesos (P1,+.00) and 4e!oB dai!90 Bas approved "ove34er 290 199&.
5n -e4ruar9 199+0 peiioner app!ied :or eAe3pion :ro3 said Ba/e order on 2e
/round 2a i Bas a disressed esa4!is23en. T2e RT;P( denied peiionerLs
app!i.aion :or eAe3pion a:er 2o!din/ 2a 2e .orporaion a..u3u!aed proCs
a3ounin/ o P&'0&'1.'0 :or 2e period under revieB. PeiionerLs 3oion :or
43
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
re.onsideraion Bas !i8eBise denied 49 2e ;a/es and Produ.ivi9 (oard on Januar9 ,0
199,. 5n appea! o 2e "aiona! ;a/es and Produ.ivi9 $o33ission0 peiioner Bas
a/ain denied re!ie:.
1ore spe.iC.a!!90 peiioner .onends 2a 2e ineri3 period o 4e re.8oned Bi2 is :ro3
Januar9 10 199& o De.e34er 1,0 199& and no 3ere!9 up o Sepe34er &00 199& as
2e!d 49 responden $o33ission. Si/niC.an!90 2e period up o De.e34er &10 199& Bi!!
reSe. !osses in peiioner .orporaionLs 4oo8s0 4u no i: 2e .overed ineri3 period is
on!9 up o Sepe34er &00 199&.
-ssue" ;5" peiioner $orporaion :a!!s Bi2in 2e eAe3pion :or disressed
esa4!is23ens.
5eld" T2e peiioner .o3pan9 is no eni!ed o eAe3pion o: 2e Ba/e order sin.e i is
no a disressed esa4!is23en.
=nder Se.ion , o: ;a/e 5rder "o. "$R)0&0 disressed Cr3s 3a9 4e eAe3ped :ro3
2e provisions o: 2e 5rder upon app!i.aion Bi2 and due deer3inaion o: 2e (oard.
";P$ Guide!ines "o. 010 Series o: 19920 providin/ :or 2e Revised Guide!ines on
EAe3pion indi.ae 2e .rieria o Kua!i:9 :or eAe3pion as :o!!oBsP
-or Disressed Esa4!is23ensP In 2e .ase o: a so.8 .orporaion0 parners2ip0 sin/!e
proprieors2ip0 non)so.80 non)proC or/ani*aion or .ooperaive en/a/ed in a 4usiness
a.ivi9 or .2ar/in/ :ees :or is servi.es T;2en a..u3u!aed !osses :or 2e !as 2 :u!!
a..ounin/ periods and ineri3 period0 i: an90 i33ediae!9 pre.edin/ 2e e6e.ivi9 o:
2e 5rder 2ave i3paired 49 a !eas 2, per.en 2eP Paid)up .apia! a 2e end o: 2e !as
:u!! a..ounin/ period pre.edin/ 2e e6e.ivi9 o: 2e 5rder0 in 2e .ase o: .orporaionsP
Toa! invesed .apia! a 2e 4e/innin/ o: 2e !as :u!! a..ounin/ period pre.edin/ 2e
e6e.ivi9 o: 2e 5rder in 2e .ase o: parners2ips and sin/!e proprieors2ips.
Esa4!is23ens operain/ :or !ess 2an Bo (2) 9ears 3a9 4e /raned eAe3pion B2en
a..u3u!aed !osses :or said period 2ave i3paired 49 a !eas 2,V 2e paid)up .apia! or
oa! invesed .apia!0 as 2e .ase 3a9 4e.I
Se.ion '0 para/rap2 a0 o: 2e Ru!es I3p!e3enin/ ;a/e 5rder "o. "$R)0& provides 2a
eAe3pion :ro3 .o3p!ian.e Bi2 2e Ba/e in.rease 3a9 4e /raned o disressed
esa4!is23ens B2ose paid)up .apia! 2as 4een i3paired 49 a !eas Ben9)Cve per.en
(2,V) or B2i.2 re/isers .apia! deC.ien.9 or ne/aive ne Bor2.
T2e Guide!ines eApress!9 reKuire ineri3 Kuarer!9 Cnan.ia! sae3ens :or 2e period
i33ediae!9 pre.edin/ De.e34er 1%0 199&. T2e !as Bo :u!! a..ounin/ periods 2ere
are 1991 and 19920 :or B2i.2 9ears peiioner in.urred ne proCs o: P,&0%07.00 and
P%001''.000 respe.ive!9.
+ruban?ers Asso#iation vs +rudential %an? ./0001 8)& SC'A 3(
4a#ts"
T2e RT;P( Re/ion > issued ;a/e 5rder "o. R( 0,)0& B2i.2 provided :or a $os o:
#ivin/ A!!oBan.e ($5#A) o Bor8ers in 2e privae se.or B2o 2ad rendered servi.e :or
a !eas 2ree (&) 3on2s 4e:ore is e6e.ivi90 and :or 2e sa3e period 2erea:er0 in 2e
:o!!oBin/ .ae/oriesP P17.,0 in 2e .iies o: "a/a and #e/aspiN P1,.,0 in 2e
44
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
3uni.ipa!iies o: Ta4a.o0 Dara/a0 Pi!i and 2e .i9 o: Iri/aN and P10.00 :or a!! o2er areas
in 2e (i.o! Re/ion.
5n "ove34er 199&0 RT;P( Re/ion >II issued ;a/e 5rder "o. R( >II)0&0 B2i.2 dire.ed
2e ine/raion o: 2e $5#A 3andaed pursuan o ;a/e 5rder "o. R5 >II)02)A ino 2e
4asi. pa9 o: a!! Bor8ers. I a!so esa4!is2ed an in.rease in 2e 3ini3u3 Ba/e raes :or
a!! Bor8ers and e3p!o9ees in 2e privae se.or as :o!!oBsP 49 Ten Pesos (P10.00) in 2e
.iies o: $e4u0 1andaue and #apu!apuN -ive Pesos (P,.00) in 2e 3uni.ipa!iies o:
$o3pose!a0 #i!oan0 $onso!a.ion0 $ordova0 Ta!isa90 1in/!ani!!a0 "a/a and 2e .iies o:
Davao0 To!edo0 Du3a/uee0 (ais0 $an!aon0 and Ta/4i!aran. T2e 4an8 /raned a $5#A o:
P17.,0 o is e3p!o9ees a is "a/a (ran.20 2e on!9 4ran.2 .overed 49 ;a/e 5rder "o.
R( ,)0&0 and ine/raed 2e P1,0.00 per 3on2 $5#A ino 2e 4asi. pa9 o: is ran8)and)
C!e e3p!o9ees a is $e4u0 1a4o!o and P. de! Rosario 4ran.2es0 2e 4ran.2es .overed 49
;a/e 5rder "o. R( >II)0&.
5n June 70 199+0 Pru4an8ers Asso.iaion Broe 2e peiioner reKuesin/ 2a 2e #a4or
1ana/e3en $o33iee 4e i33ediae!9 .onvened o dis.uss and reso!ve 2e a!!e/ed
Ba/e disorion .reaed in 2e sa!ar9 sru.ure upon 2e i3p!e3enaion o: 2e said
Ba/e orders. I de3anded in 2e #a4or 1ana/e3en $o33iee 3eein/s 2a 2e
peiioner eAend 2e app!i.aion o: 2e Ba/e orders o is e3p!o9ees ouside Re/ions >
and >II0 .!ai3in/ 2a 2e re/iona! i3p!e3enaion o: 2e said orders .reaed a Ba/e
disorion in 2e Ba/e raes o: peiionerLs e3p!o9ees naionBide. As 2e /rievan.e
.ou!d no 4e se!ed in 2e said 3eein/s0 2e paries a/reed o su43i 2e 3aer o
vo!unar9 ar4iraion.
-ssue" ;5" a Ba/e disorion resu!ed :ro3 respondenLs i3p!e3enaion o: 2e ;a/e
5rders.
5eld" T2e .our ru!ed 2a 2ere is no Ba/e disorion sin.e 2e Ba/e order
i3p!e3enaion .overs a!! 2e 4ran.2es o: 2e 4an8.
T2e 2ierar.29 o: posiions Bas si!! preserved. T2e !eve!s o: di6eren pa9 .!asses Bas no
e!i3inaed. T2e sauor9 deCniion o: Ba/e disorion is :ound in Ari.!e 12+ o: 2e
#a4or $ode0 as a3ended 49 Repu4!i. A. "o. %7270 B2i.2 readsP tandards9Criteria $or
Minimum :age *i'ing T . . .IAs used 2erein0 a Ba/e disorion s2a!! 3ean a siuaion
B2ere an in.rease in pres.ri4ed Ba/e resu!s in 2e e!i3inaion or severe .onra.ion o:
ineniona! Kuaniaive di6eren.es in Ba/e or sa!ar9 raes 4eBeen and a3on/
e3p!o9ee /roups in an esa4!is23en as o e6e.ive!9 o4!ierae 2e disin.ions
e34odied in su.2 Ba/e sru.ure 4ased on s8i!!s0 !en/2 o: servi.e0 or o2er !o/i.a!
4ases o: di6ereniaion.I
;a/e disorion invo!ves :our e!e3ensP (1) An eAisin/ 2ierar.29 o: posiions Bi2
.orrespondin/ sa!ar9 raesN (2) A si/niC.an .2an/e in 2e sa!ar9 rae o: a !oBer pa9
.!ass Bi2ou a .on.o3ian in.rease in 2e sa!ar9 rae o: a 2i/2er oneN (&)T2e
e!i3inaion o: 2e disin.ion 4eBeen 2e Bo !eve!s and (+) T2e eAisen.e o: 2e
disorion in 2e sa3e re/ion o: 2e .ounr9.
A dispari9 in Ba/es 4eBeen e3p!o9ees 2o!din/ si3i!ar posiions 4u in di6eren
re/ions does no .onsiue Ba/e disorion as .one3p!aed 49 !aB. As saed0 i is 2e
2ierar.29 o: posiions and 2e dispari9 o: 2eir .orrespondin/ Ba/es and o2er
e3o!u3ens 2a are sou/2 o 4e preserved 49 2e .on.ep o: Ba/e disorion.
45
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Millares et al.= vs 6L'C .1 8): SC'A :)/
4a#ts"
46
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Peiioners nu34erin/ one 2undred siAeen o..upied 2e posiions o: Te.2ni.a! Sa60
=ni 1ana/er0 Se.ion 1ana/er0 Depar3en 1ana/er0 Division 1ana/er and >i.e
Presiden in 2e 3i!! sie o: responden Paper Indusries $orporaion o: 2e P2i!ippines
(PI$5P) in (is!i/0 Suri/ao de! Sur.
In 1992 PI$5P su6ered a 3aGor Cnan.ia! se4a.8 a!!e/ed!9 4rou/2 a4ou 49 2e Goin
i3pa. o: resri.ive /overn3en re/u!aions on !o//in/ and 2e e.ono3i. .risis. To
aver :ur2er !osses0 i underoo8 a reren.23en pro/ra3 and er3inaed 2e servi.es
o: peiioners. A..ordin/!90 peiioners re.eived separaion pa9 .o3pued a 2e rae o:
one (1) 3on2 4asi. pa9 :or ever9 9ear o: servi.e. (e!ievin/ 2oBever 2a 2e
a!!oBan.es 2e9 a!!e/ed!9 re/u!ar!9 re.eived on a 3on2!9 4asis durin/ 2eir
e3p!o93en s2ou!d 2ave 4een in.!uded in 2e .o3puaion 2ereo: 2e9 !od/ed a
.o3p!ain :or separaion pa9 di6erenia!s.
-ssue" ;2e2er 2e a!!oBan.es are in.!uded in 2e deCniion o: I:a.i!iiesI in Ar. 970
par. (:)0 o: 2e #a4or $ode0 4ein/ ne.essar9 and indispensa4!e :or 2eir eAisen.e and
su4sisen.e.
5eld" T2e a!!oBan.es are no par o: 2e Ba/es o: 2e e3p!o9ees.
;a/e is deCned in !eer (:) as 2e re3uneraion or earnin/s0 2oBever desi/naed0
.apa4!e o: 4ein/ eApressed in er3s o: 3one90 B2e2er CAed or as.erained on a i3e0
as80 pie.e0 or .o33ission 4asis0 or o2er 3e2od o: .a!.u!ain/ 2e sa3e0 B2i.2 is
pa9a4!e 49 an e3p!o9er o an e3p!o9ee under a Brien or unBrien .onra. o:
e3p!o93en :or Bor8 done or o 4e done0 or :or servi.es rendered or o 4e rendered and
in.!udes 2e :air and reasona4!e va!ue0 as deer3ined 49 2e Se.rear9 o: #a4or0 o:
4oard0 !od/in/0 or o2er :a.i!iies .uso3ari!9 :urnis2ed 49 2e e3p!o9er o 2e
e3p!o9ee.
;2en an e3p!o9er .uso3ari!9 :urnis2es 2is e3p!o9ee 4oard0 !od/in/ or o2er :a.i!iies0
2e :air and reasona4!e va!ue 2ereo:0 as deer3ined 49 2e Se.rear9 o: #a4or and
E3p!o93en0 is in.!uded in IBa/e.I $uso3ar9 is :ounded on !on/)esa4!is2ed and
.onsan pra.i.e .onnoin/ re/u!ari9. T2e re.eip o: an a!!oBan.e on a 3on2!9 4asis
does no ipso :a.o .2ara.eri*e i as re/u!ar and :or3in/ par o: sa!ar9 4e.ause 2e
naure o: 2e /ran is a :a.or Bor2 .onsiderin/. T2e .our a/rees Bi2 2e o4servaion
o: 2e 5E.e o: 2e So!i.ior Genera! 2a 2e su4Ge. a!!oBan.es Bere e3porari!90 no
re/u!ar!90 re.eived 49 peiioners. A!2ou/2 i is Kuie eas9 o .o3pre2end I4oardI and
I!od/in/0I i is no so Bi2 I:a.i!iies.I T2us Se.. ,0 Ru!e >II0 (oo8 III0 o: 2e Ru!es
I3p!e3enin/ 2e #a4or $ode /ives 3eanin/ o 2e er3 as in.!udin/ ari.!es or
servi.es :or 2e 4eneC o: 2e e3p!o9ee or 2is :a3i!9 4u eA.!udin/ oo!s o: 2e rade or
ari.!es or servi.e pri3ari!9 :or 2e 4eneC o: 2e e3p!o9er or ne.essar9 o 2e .ondu.
o: 2e e3p!o9erLs 4usiness.
In deer3inin/ B2e2er a privi!e/e is a :a.i!i90 2e .rierion is no so 3u.2 is 8ind 4u
is purpose. Revenue Audi 1e3o 5rder "o. 1)'7 perinen!9 provides T&.2W
ransporaion0 represenaion or enerain3en eApenses s2a!! no .onsiue aAa4!e
.o3pensaion i:P (a)I is :or ne.essar9 rave!!in/ and represenaion or enerain3en
eApenses paid or in.urred 49 2e e3p!o9ee in 2e pursui o: 2e rade or 4usiness o: 2e
e3p!o9er0 and (4) T2e e3p!o9ee is reKuired o0 and does0 3a8e an
47
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
a..ounin/F!iKuidaion :or su.2 eApense in a..ordan.e Bi2 2e spe.iC. reKuire3ens o:
su4saniaion :or su.2 .ae/or9 or eApense.(oard and !od/in/ a!!oBan.es :urnis2ed o
an e3p!o9ee no in eA.ess o: 2e !aerLs needs and /iven :ree o: .2ar/e0 .onsiue
in.o3e o 2e !aer eA.ep i: su.2 a!!oBan.es or 4eneCs are :urnis2ed o 2e e3p!o9ee
:or 2e .onvenien.e o: 2e e3p!o9er and as ne.essar9 in.iden o proper per:or3an.e
o: 2is duies in B2i.2 .ase su.2 4eneCs or a!!oBan.es do no .onsiue aAa4!e
in.o3e.
T2e Se.rear9 o: #a4or and E3p!o93en under Se.. %0 Ru!e >II0 (oo8 III0 o: 2e Ru!es
I3p!e3enin/ 2e #a4or $ode 3a9 :ro3 i3e o i3e CA in appropriae issuan.es 2e
I:air and reasona4!e va!ue o: 4oard0 !od/in/ and o2er :a.i!iies .uso3ari!9 :urnis2ed 49
an e3p!o9er o 2is e3p!o9ees.I PeiionersL a!!oBan.es do no represen su.2 :air and
reasona4!e va!ue as deer3ined 49 2e proper au2ori9 si3p!9 4e.ause 2e
Sa6F1ana/erLs a!!oBan.e and ransporaion a!!oBan.e Bere a3ouns /iven 49
responden .o3pan9 in !ieu o: a.ua! provisions :or 2ousin/ and ransporaion needs
B2ereas 2e (is!i/ a!!oBan.e Bas /iven in .onsideraion o: 4ein/ assi/ned o 2e 2osi!e
environ3en 2en prevai!in/ in (is!i/. T2e inevia4!e .on.!usion is 2a su4Ge.
a!!oBan.es did no :or3 par o: peiionersL Ba/es.
48
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
-nternational S#;ool Allian#e of ,du#ators vs Kuisumbing .&)))1 888 SC'A /8
4a#ts"
Inernaiona! S.2oo!0 In..0 pursuan o PD 7&20 is a do3esi. edu.aiona! insiuion
esa4!is2ed pri3ari!9 :or dependens o: :orei/n dip!o3ai. personne! and o2er
e3porar9 residens. To ena4!e 2e S.2oo! o .oninue .arr9in/ ou is edu.aiona!
pro/ra3 and i3prove is sandard o: insru.ion0 Se.ion 2(.) o: 2e sa3e de.ree
au2ori*es 2e S.2oo! o e3p!o9 is oBn ea.2in/ and 3ana/e3en personne! se!e.ed
49 i ei2er !o.a!!9 or a4road0 :ro3 P2i!ippine or o2er naiona!iies0 su.2 personne! 4ein/
eAe3p :ro3 o2erBise app!i.a4!e !aBs and re/u!aions aendin/ 2eir e3p!o93en0
eA.ep !aBs 2a 2ave 4een or Bi!! 4e ena.ed :or 2e proe.ion o: e3p!o9ees.
T2e S.2oo! 2ires 4o2 :orei/n and !o.a! ea.2ers as 3e34ers o: is :a.u!90 .!assi:9in/
2e sa3e ino BoP (1) :orei/n)2ires and (2) !o.a!)2ires. T2e S.2oo! e3p!o9s :our ess o
deer3ine B2e2er a :a.u!9 3e34er s2ou!d 4e .!assiCed as a :orei/n)2ire or a !o.a!
2ireP (a) ;2a is oneLs do3i.i!eJ (4) ;2ere is oneLs 2o3e e.ono39J (.) To B2i.2 .ounr9
does one oBe e.ono3i. a!!e/ian.eJ (d) ;as 2e individua! 2ired a4road spe.iC.a!!9 o
Bor8 in 2e S.2oo! and Bas 2e S.2oo! responsi4!e :or 4rin/in/ 2a individua! o 2e
P2i!ippinesJ S2ou!d 2e ansBer o an9 o: 2ese Kueries poin o 2e P2i!ippines0 2e
:a.u!9 3e34er is .!assiCed as a !o.a! 2ireN o2erBise0 2e or s2e is dee3ed a :orei/n)
2ire.
T2e S.2oo! /rans :orei/n)2ires .erain 4eneCs no a..orded !o.a!) 2ires. T2ese in.!ude
2ousin/0 ransporaion0 s2ippin/ .oss0 aAes0 and 2o3e !eave rave! a!!oBan.e.
-orei/n)2ires are a!so paid a sa!ar9 rae Ben9)Cve per.en (2,V) 3ore 2an !o.a!)2ires.
T2e S.2oo! GusiCes 2e di6eren.e on Bo Isi/niC.an e.ono3i. disadvana/esI :orei/n)
2ires 2ave o endure0 na3e!9P (a) 2e Idis!o.aion :a.orI and (4) !i3ied enure. T2e
.o3pensaion s.2e3e is si3p!9 2e S.2oo!Ls adapive 3easure o re3ain .o3peiive
on an inernaiona! !eve! in er3s o: ara.in/ .o3peen pro:essiona!s in 2e Ce!d o:
inernaiona! edu.aion.
-ssue" ;5" !o.a! 2ire ea.2ers s2a!! enGo9 sa3e sa!ar9 as :orei/n 2ire ea.2ers B2ere
2e9 per:or3 2e sa3e Bor8.
5eld" E3p!o9ees are eni!ed o sa3e sa!ar9 :or per:or3an.e o: eKua! Bor8.
"oa4!90 2e Inernaiona! $ovenan on E.ono3i.0 So.ia!0 and $u!ura! Ri/2s0 supra0 in
Ari.!e 7 2ereo:0 providesP T2e Saes Paries o 2e presen $ovenan re.o/ni*e 2e
49
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
ri/2 o: ever9one o 2e enGo93en o: Gus and :avora4!e .ondiions o: Bor80 B2i.2
ensure0 in pari.u!arP ( a) Re3uneraion B2i.2 provides a!! Bor8ers0 as a 3ini3u30 Bi2P
(i) -air Ba/es and eKua! re3uneraion :or Bor8 o: eKua! va!ue Bi2ou disin.ion o:
an9 8ind0 in pari.u!ar Bo3en 4ein/ /uaraneed .ondiions o: Bor8 no in:erior o 2ose
enGo9ed 49 3en0 Bi2 eKua! pa9 :or eKua! Bor8N T2e :ore/oin/ provisions i3pre/na4!9
insiuiona!i*e in 2is Gurisdi.ion 2e !on/ 2onored !e/a! ruis3 o: IeKua! pa9 :or eKua!
Bor8.I Persons B2o Bor8 Bi2 su4sania!!9 eKua! Kua!iC.aions0 s8i!!0 e6or and
responsi4i!i90 under si3i!ar .ondiions0 s2ou!d 4e paid si3i!ar sa!aries. T2is ru!e app!ies
o 2e S.2oo!.
T2e S.2oo! .onends 2a peiioner 2as no addu.ed eviden.e 2a !o.a!)2ires per:or3
Bor8 eKua! o 2a o: :orei/n)2ires. T2e $our Cnds 2is ar/u3en a !i!e in.onsiderae.
I: an e3p!o9er a..ords e3p!o9ees 2e sa3e posiion and ran80 2e presu3pion is 2a
2ese e3p!o9ees per:or3 eKua! Bor8. I: 2e e3p!o9er pa9s one e3p!o9ee !ess 2an 2e
res0 i is no :or 2a e3p!o9ee o eAp!ain B29 2e re.eives !ess or B29 2e o2ers
re.eive 3ore. T2e e3p!o9er 2as dis.ri3inaed a/ains 2a e3p!o9eeN i is :or 2e
e3p!o9er o eAp!ain B29 2e e3p!o9ee is reaed un:air!9.
In 2is .ase0 2e e3p!o9er 2as :ai!ed o dis.2ar/e 2is 4urden. T2ere is no eviden.e 2ere
2a :orei/n)2ires per:or3 2,V 3ore eE.ien!9 or e6e.ive!9 2an 2e !o.a!)2ires. (o2
/roups 2ave si3i!ar :un.ions and responsi4i!iies0 B2i.2 2e9 per:or3 under si3i!ar
Bor8in/ .ondiions.
50
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
%an?ard ,m!loyees Union vs 6L'C .&))(1 2.'. /()790
4a#ts"
(an8ard0 In.. .!assiCes is e3p!o9ees 49 !eve!sP #eve! I0 #eve! II0 #eve! III0 #eve! I>0 and
#eve! >. 5n 1a9 199&0 is (oard o: Dire.ors approved a "eB Sa!ar9 S.a!e0 3ade
reroa.ive o Apri! 10 199&0 :or 2e purpose o: 3a8in/ is 2irin/ rae .o3peiive in 2e
indusr9?s !a4or 3ar8e. T2e "eB Sa!ar9 S.a!e in.reased 2e 2irin/ raes o: neB
e3p!o9ees0 o BiP #eve!s I and > 49 one 2ousand pesos (P10000.00)0 and #eve!s II0 III
and I> 49 nine 2undred pesos (P900.00). A..ordin/!90 2e sa!aries o: e3p!o9ees B2o :e!!
4e!oB 2e neB 3ini3u3 raes Bere a!so adGused o rea.2 su.2 raes under 2eir !eve!s.
T2is 3ade (an8ard E3p!o9ees =nion);AT= (peiioner)0 2e du!9 .eriCed eA.!usive
4ar/ainin/ a/en o: 2e re/u!ar ran8 and C!e e3p!o9ees o: (an8ard0 o reKues :or 2e
in.rease in 2e sa!ar9 o: is o!d0 re/u!ar e3p!o9ees. (an8ard insised 2a 2ere Bas no
o4!i/aion on 2e par o: 2e 3ana/e3en o /ran o a!! is e3p!o9ees 2e sa3e
in.rease in an a.ross)2e)4oard 3anner.
Peioner C!ed a noi.e o: sri8e. T2e sri8e Bas avered B2en 2e dispue Bas .eriCed
49 2e Se.rear9 o: #a4or and E3p!o93en :or .o3pu!sor9 ar4iraion. "#R$ Cndin/ no
Ba/e disorion dis3issed 2e .ase :or !a.8 o: 3eri. Peiioner?s 3oion :or
re.onsideraion o: 2e dis3issa! o: 2e .ase Bas denied.
-ssue" ;2e2er 2e uni!aera! adopion 49 an e3p!o9er o: an up/raded sa!ar9 resu!ed
in Ba/e disorion Bi2in 2e .one3p!aion o: Ari.!e 12+ o: 2e #a4or $ode.
5eld" T2ere eAiss a Ba/e disorion 4u 2e $our Bi!! no iner:ere in 2e 3ana/e3en
prero/aive o: 2e peiioner.
=pon 2e ena.3en o: R.A. "o. %727 (;AGE RATI5"A#IUATI5" A$T0 a3endin/0 a3on/
o2ers0 Ari.!e 12+ o: 2e #a4or $ode)0 2e er3 IBa/e disorionI Bas eAp!i.i!9 deCned
as... a siuaion B2ere an in.rease in pres.ri4ed Ba/e raes resu!s in 2e e!i3inaion or
severe .onra.ion o: ineniona! Kuaniaive di6eren.es in Ba/e or sa!ar9 raes
4eBeen and a3on/ e3p!o9ee /roups in an esa4!is23en as o e6e.ive!9 o4!ierae
2e disin.ions e34odied in su.2 Ba/e sru.ure 4ased on s8i!!s0 !en/2 o: servi.e0 or
o2er !o/i.a! 4ases o: di6ereniaion.
51
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
In 2e .ase o: Pru4an8ers Asso.iaion v. Prudenia! (an8 and Trus $o3pan90 i !aid doBn
2e :our e!e3ens o: Ba/e disorion0 o BiP (1.) An eAisin/ 2ierar.29 o: posiions Bi2
.orrespondin/ sa!ar9 raesN (2) A si/niC.an .2an/e in 2e sa!ar9 rae o: a !oBer pa9
.!ass Bi2ou a .on.o3ian in.rease in 2e sa!ar9 rae o: a 2i/2er oneN (&) T2e
e!i3inaion o: 2e disin.ion 4eBeen 2e Bo !eve!sN and (+) T2e eAisen.e o: 2e
disorion in 2e sa3e re/ion o: 2e .ounr9.
"or3a!!90 a .o3pan9 2as a Ba/e sru.ure or 3e2od o: deer3inin/ 2e Ba/es o: is
e3p!o9ees. In a pro4!e3 dea!in/ Bi2 IBa/e disorion0I 2e 4asi. assu3pion is 2a
2ere eAiss a /roupin/ or .!assiC.aion o: e3p!o9ees 2a esa4!is2es disin.ions
a3on/ 2e3 on so3e re!evan or !e/ii3ae 4ases. Invo!ved in 2e .!assiC.aion o:
e3p!o9ees are various :a.ors su.2 as 2e de/rees o: responsi4i!i90 2e s8i!!s and
8noB!ed/e reKuired0 2e .o3p!eAi9 o: 2e Go40 or o2er !o/i.a! 4asis o: di6ereniaion.
T2e di6erin/ Ba/e rae :or ea.2 o: 2e eAisin/ .!asses o: e3p!o9ees reSe.s 2is
.!assiC.aion.
Pu di6eren!90 2e enr9 o: neB e3p!o9ees o 2e .o3pan9 ipso :a.o p!a.es 2e3
under an9 o: 2e !eve!s 3enioned in 2e neB sa!ar9 s.a!e B2i.2 privae responden
adoped reroa.ive o Apri! 10 199&. ;2i!e seniori9 3a9 4e a :a.or in deer3inin/ 2e
Ba/es o: e3p!o9ees0 i .anno 4e 3ade 2e so!e 4asis in .ases B2ere 2e naure o: 2eir
Bor8 di6ers.
1oreover0 :or purposes o: deer3inin/ 2e eAisen.e o: Ba/e disorion0 e3p!o9ees
.anno .reae 2eir oBn independen .!assiC.aion and use i as a 4asis o de3and an
a.ross)2e)4oard in.rease in sa!ar9.
T2e Bordin/s o: Ari.!e 12+ are .!ear. I: i Bas 2e inenion o: 2e !e/is!aors o .over a!!
8inds o: Ba/e adGus3ens0 2en 2e !an/ua/e o: 2e !aB s2ou!d 2ave 4een 4road0 no
resri.ive as i is .urren!9 p2rasedP
Article ;<=. tandards9Criteria $or Minimum :age *i'ing. ;2ere 2e app!i.aion o:
an9 pres.ri4ed Ba/e in.rease 49 virue o: a !aB or ;a/e 5rder issued 49 an9
Re/iona! (oard resu!s in disorions o: 2e Ba/e sru.ure Bi2in an esa4!is23en0
2e e3p!o9er and 2e union s2a!! ne/oiae o .orre. 2e disorions. An9 dispue
arisin/ :ro3 2e Ba/e disorions s2a!! 4e reso!ved 2rou/2 2e /rievan.e pro.edure
under 2eir .o!!e.ive 4ar/ainin/ a/ree3en and0 i: i re3ains unreso!ved0 2rou/2
vo!unar9 ar4iraion.
Ari.!e 12+ is eni!ed ISandardsF$rieria :or 1ini3u3 ;a/e -iAin/.I I is :ound in
$HAPTER > on I;AGE ST=DIES0 ;AGE AGREE1E"TS A"D ;AGE DETER1I"ATI5"I
B2i.2 prin.ipa!!9 dea!s Bi2 2e CAin/ o: 3ini3u3 Ba/e. Ari.!e 12+ s2ou!d 2us 4e
.onsrued and .orre!aed in re!aion o 3ini3u3 Ba/e CAin/0 2e inenion o: 2e !aB
4ein/ 2a in 2e even o: an in.rease in 3ini3u3 Ba/e0 2e disin.ions e34odied in
2e Ba/e sru.ure 4ased on s8i!!s0 !en/2 o: servi.e0 or o2er !o/i.a! 4ases o:
di6ereniaion Bi!! 4e preserved.
I: 2e .o3pu!sor9 3andae under Ari.!e 12+ o .orre. IBa/e disorionI is app!ied o
vo!unar9 and uni!aera! in.reases 49 2e e3p!o9er in CAin/ 2irin/ raes B2i.2 is
in2eren!9 a 4usiness Gud/3en prero/aive0 2en 2e 2ands o: 2e e3p!o9er Bou!d 4e
.o3p!ee!9 ied even in .ases B2ere an in.rease in Ba/es o: a pari.u!ar /roup is
GusiCed due o a re)eva!uaion o: 2e 2i/2 produ.ivi9 o: a pari.u!ar /roup0 or as in 2e
presen .ase0 2e need o in.rease 2e .o3peiiveness o: (an8ard?s 2irin/ rae. An
e3p!o9er Bou!d 4e dis.oura/ed :ro3 adGusin/ 2e sa!ar9 raes o: a pari.u!ar /roup o:
e3p!o9ees :or :ear 2a i Bou!d resu! o a de3and 49 a!! e3p!o9ees :or a si3i!ar
in.rease0 espe.ia!!9 i: 2e Cnan.ia! .ondiions o: 2e 4usiness .anno address an a.ross)
2e)4oard in.rease.
52
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
;a/e disorion is a :a.ua! and e.ono3i. .ondiion 2a 3a9 4e 4rou/2 a4ou 49
di6eren .auses. T2e 3ere :a.ua! eAisen.e o: Ba/e disorion does no0 2oBever0 ipso
:a.o resu! o an o4!i/aion o re.i:9 i0 a4sen a !aB or o2er sour.e o: o4!i/aion B2i.2
reKuires is re.iC.aion.
Adango vs 6L'C .&)):1 2.'. /(3(&)
4a#ts"
Peiioners are 3on2!9)paid e3p!o9ees o: A"TE$5 B2ose Bor8da9s are :ro3 1onda9 o
-rida9 and 2a!: o: Saurda9. A:er a rouine inspe.ion0 2e Re/iona! (ran.2 o: 2e
Depar3en o: #a4or and E3p!o93en :ound A"TE$5 !ia4!e :or underpa93en o: 2e
3on2!9 sa!aries o: is e3p!o9ees. 5n Sepe34er 19'90 2e D5#E dire.ed A"TE$5 o
pa9 is e3p!o9ees Ba/e di6erenia!s a3ounin/ o P10+270+12.7,. A"TE$5 :ai!ed o
pa9. 5n various daes in 199,0 2ir9)2ree (&&) 3on2!9)paid e3p!o9ees C!ed
.o3p!ains Bi2 2e "#R$ pra9in/ :or pa93en o: Ba/e di6erenia!s0 da3a/es and
aorne9?s :ees.
5n "ove34er 199%0 2e #a4or Ar4ier rendered a De.ision in :avor o: peiioners
/ranin/ 2e3 Ba/e di6erenia!s a3ounin/ o P100170,07.7& and aorne9?s :ees o:
10V. A"TE$5 appea!ed 2e De.ision o 2e "#R$ B2ere i reversed 2e #a4or Ar4ier?s
De.ision. T2e "#R$ denied peiioners? 3oion :or re.onsideraion. Peiioners 2en
e!evaed 2e .ase o $A B2ere i dis3issed 2e peiion :or :ai!ure o .o3p!9 Bi2
Se.ion &0 Ru!e +% o: 2e Ru!es o: $our. T2e $our o: Appea!s eAp!ained 2a peiioners
:ai!ed o a!!e/e 2e spe.iC. insan.es B2ere 2e "#R$ a4used is dis.reion. T2e
appe!!ae .our denied peiioners? 3oion :or re.onsideraion.
-ssue" ;2e2er or no 2e peiioners are eni!ed o 3one9 .!ai3s.
5eld" Peiioners are no eni!ed o 3one9 .!ai3s or Ba/e di6erenia!s.
T2e peiioners .!ai3 is 4ased on Se.ion 20 Ru!e I>0 (oo8 III o: 2e I3p!e3enin/ Ru!es
and Po!i.9 Insru.ions "o. 9 issued 49 2e Se.rear9 o: #a4or B2i.2 Bas de.!ared nu!!
and void sin.e in 2e /uise o: .!ari:9in/ 2e #a4or $ode?s provisions on 2o!ida9 pa90 2e9
in e6e. a3ended 2e3 49 en!ar/in/ 2e s.ope o: 2eir eA.!usion.
Even assu3in/ 2a Se.ion 20 Ru!e I> o: (oo8 III is va!id0 2eir .!ai3 Bi!! si!! :ai!. T2e
4asi. ru!e in 2is Gurisdi.ion is Ino Bor80 no pa9.I T2e ri/2 o 4e paid :or un)Bor8ed
da9s is /enera!!9 !i3ied o 2e en !e/a! 2o!ida9s in a 9ear. Peiioners? .!ai3 is 4ased
on a 3isa8en noion 2a Se.ion 20 Ru!e I> o: (oo8 III /ave rise o a ri/2 o 4e paid :or
un)Bor8ed da9s 4e9ond 2e en !e/a! 2o!ida9s. Peiioners? !ine o: reasonin/ is no on!9 a
vio!aion o: 2e Ino Bor80 no pa9I prin.ip!e0 i a!so /ives rise o an invidious
.!assiC.aion0 a vio!aion o: 2e eKua! proe.ion .!ause.
53
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
C. +lanas Commer#ial vs 6L'C .&)):1 2.'. /((7/0
4a#ts"
In Sepe34er 199&0 1orene0 A!!aui/an and 5Ca!da and o2ers C!ed a .o3p!ain :or
underpa93en o: Ba/es0 non pa93en o: overi3e pa90 2o!ida9 pa90 servi.e in.enive
!eave pa90 and pre3iu3 pa9 :or res da9 and 2o!ida9 and ni/2 s2i: di6erenia! a/ains
peiioners in 2e Ar4iraion (ran.2 o: "#R$. I a!!e/ed 2a $o2u is en/a/ed in 2e
4usiness o: B2o!esa!e o: p!asi. produ.s and :ruis o: di6eren 8inds Bi2 3ore 2an 2+
e3p!o9ees. Respondens Bere 2ired on Januar9 19900 1a9 1990 and Ju!9 19991 as
!a4orers and Bere paid 4e!oB 2e 3ini3u3 Ba/e :or 2e pas & 9ears. T2e9 Bere
reKuired o Bor8 :or 3ore 2an ' 2ours a da9 and never enGo9ed 2e 3ini3u3 4eneCs.
Peiioners C!ed 2eir .o33en sain/ 2a 2e respondens Bere 2eir 2e!pers.
T2e #a4or Ar4ier rendered a de.ision dis3issin/ 2e 3one9 .!ai3s. Respondens C!ed
an appea! Bi2 2e "#R$ B2ere i /raned 2e 3one9 .!ai3s. Peiioners appea!ed Bi2
2e $A 4u i Bas denied. I said 2a 2e .o3pan9 2avin/ .!ai3ed o: eAe3pion o: 2e
.overa/e o: 2e 3ini3u3 Ba/e s2a!! 2ave 2e 4urden o: proo: o 2e .!ai3.
Peiioners insis 2a $. P!anas $o33er.ia! is a reai! esa4!is23en prin.ipa!!9 en/a/ed
in 2e sa!e o: p!asi. produ.s and :ruis o 2e .uso3ers :or persona! use0 2us
eAe3ped :ro3 2e app!i.aion o: 2e 3ini3u3 Ba/e !aBN 2a i 3ere!9 !eases and
o..upies a sa!! in 2e Divisoria 1ar8e and 2e !eve! o: is 4usiness a.ivi9 reKuires and
susains on!9 !ess 2an en e3p!o9ees a a i3e. Peiioners .onend 2a privae
respondens Bere paid over and a4ove 2e 3ini3u3 Ba/e reKuired :or a reai!
esa4!is23en0 2us 2e #a4or Ar4ier is .orre. in ru!in/ 2a privae respondens? .!ai3
:or underpa93en 2as no :a.ua! and !e/a! 4asis. Peiioners .!ai3 2a sin.e privae
respondens a!!e/ed 2a peiioners e3p!o9ed 2+ Bor8ers0 i Bas in.u34en upon 2e3
o prove su.2 a!!e/aion B2i.2 privae respondens :ai!ed o do.
-ssue" ;5" peiioner is eAe3ped :ro3 2e app!i.aion o: 3ini3u3 Ba/e !aB.
5eld" Peiioners 2ave no su..ess:u!!9 s2oBn 2a 2e9 2ad app!ied :or 2e eAe3pion.
R.A. "o. %727 8noBn as 2e :age Rationali8ation Act provides :or 2e sauor9
3ini3u3 Ba/e rae o: a!! Bor8ers and e3p!o9ees in 2e privae se.or. Se.ion + o: 2e
A. provides :or eAe3pion :ro3 2e .overa/e0 2usP Se.. +. (.) EAe3ped :ro3 2e
provisions o: 2is A. are 2ouse2o!d or do3esi. 2e!pers and persons e3p!o9ed in 2e
persona! servi.e o: ano2er0 in.!udin/ :a3i!9 drivers. A!so0 reai!Fservi.e esa4!is23ens
re/u!ar!9 e3p!o9in/ no 3ore 2an en (10) Bor8ers 3a9 4e eAe3ped :ro3 2e
54
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
app!i.a4i!i9 o: 2is A. upon app!i.aion Bi2 and as deer3ined 49 2e appropriae
Re/iona! (oard in a..ordan.e Bi2 2e app!i.a4!e ru!es and re/u!aions issued 49 2e
$o33ission. ;2enever an app!i.aion :or eAe3pion 2as 4een du!9 C!ed Bi2 2e
appropriae Re/iona! (oard0 a.ion on an9 .o3p!ain :or a!!e/ed non).o3p!ian.e Bi2
2is A. s2a!! 4e de:erred pendin/ reso!uion o: 2e app!i.aion :or eAe3pion 49 2e
appropriae Re/iona! (oard.
In 2e even 2a app!i.aions :or eAe3pions are no /raned0 e3p!o9ees s2a!! re.eive
2e appropriae .o3pensaion due 2e3 as provided :or 49 2is A. p!us ineres o: one
per.en (1V) per 3on2 reroa.ive o 2e e6e.ivi9 o: 2is A..
,J' Crafts Cor!.= vs CA .&))71
4a#ts"
In 19970 privae respondens C!ed a .o3p!ain :or underpa93en o: Ba/es0 re/u!ar
2o!ida9 pa90 overi3e pa90 non)pa93en o: 1&2 3on2 pa9 and servi.e in.enive !eave
pa9 a/ains peiioner 4e:ore 2e Re/iona! 5E.e0 "$R o: 2e Depar3en o: #a4or and
E3p!o93en (D5#E). A.in/ on 2e .o3p!ain0 Re/iona! Dire.or issued an inspe.ion
au2ori9 o Senior #a4or En:or.e3en 5E.er.
5n Au/us 19970 an inspe.ion Bas .ondu.ed on 2e pre3ises o: peiioner?s oE.es
B2erein 2e :o!!oBin/ vio!aions o: !a4or sandards !aB Bere dis.overed0 o BiP non)
presenaion o: e3p!o93en re.ords (pa9ro!!s and dai!9 i3e re.ords)N underpa93en o:
Ba/es0 re/u!ar 2o!ida9 pa90 and overi3e pa9N and non)pa93en o: 1&2 3on2 pa9 and
servi.e in.enive !eave pa9. 5n 2e sa3e da90 2e "oi.e o: Inspe.ion Resu! Bas
re.eived 49 and eAp!ained o 2e 3ana/er o: peiioner .orporaion 1r. Jae HBan #ee0
Bi2 2e .orrespondin/ dire.ive 2a ne.essar9 resiuion 4e e6e.ed Bi2in Cve da9s
:ro3 said re.eip.
As no resiuion Bas 3ade0 2e Re/iona! 5E.e 2erea:er .ondu.ed su33ar9
invesi/aions. HoBever0 despie due noi.e0 peiioner :ai!ed o appear :or Bo
.onse.uive s.2edu!ed 2earin/s. Peiioner :ai!ed o Kuesion 2e Cndin/s o: 2e #a4or
Inspe.or re.eived 49 and eAp!ained o 2e .orporaion?s 3ana/er. Peiioner 2en C!ed a
1oion :or Re.onsideraion o: said 5rder ar/uin/ 2a 2e Re/iona! Dire.or 2as no
Gurisdi.ion over 2e .ase as privae respondens Bere a!!e/ed!9 no !on/er .onne.ed
Bi2 peiioner .orporaion a 2e i3e o: 2e C!in/ o: 2e .o3p!ain and B2en 2e
inspe.ion Bas .ondu.ed0 and 2a privae respondens? .!ai3s are Bi2in 2e eA.!usive
and ori/ina! Gurisdi.ion o: 2e #a4or Ar4iers.
-ssue" ;5" 2e Re/iona! Dire.or 2as Gurisdi.ion over 2e .!ai3s o: 2e privae
respondens.
5eld" Re/iona! Dire.or 2as Gurisdi.ion o 2ear and de.ide 2e insan .ase.
T2e $our :avors 2e respondens in 2e 3one9 .!ai3s a/ains 2e peiioner .o3pan9. I
is ad3ied 2a :or 2e Re/iona! Dire.or o eAer.ise 2e poBer o order .o3p!ian.e0 or
2e so).a!!ed Ienfor#ement !owerI under Ari.!e 12'(4) o: P.D. "o. ++2 as a3ended0
i is ne.essar9 2a 2e e3p!o9er)e3p!o9ee re!aions2ip si!! eAiss.
In suppor o: is .onenion 2a i is 2e #a4or Ar4ier and no 2e Re/iona! Dire.or B2o
2as Gurisdi.ion over 2e .!ai3s o: 2erein privae respondens0 peiioner .onends 2a
a 2e i3e 2e .o3p!ain Bas C!ed0 2e privae respondens Bere no !on/er is
e3p!o9ees. $onsiderin/ 2us 2a 2ere si!! eAiss an e3p!o9er)e3p!o9ee re!aions2ip
55
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
4eBeen peiioner and privae respondens and 2a 2e .ase invo!ves vio!aions o:
!a4or sandard provisions o: 2e #a4or $ode0 Be a/ree Bi2 2e =nderse.rear9 o: #a4or
and 2e appe!!ae .our 2a 2e Re/iona! Dire.or 2as Gurisdi.ion o 2ear and de.ide
2e insan .ase in .on:or3i9 Bi2 Ari.!e 12'(4) o: 2e #a4or $ode B2i.2 saesP
Art. ;</. >isitorial and ?n$orcement 0o!er. @(4) "oBi2sandin/ 2e provisions o:
Ari.!es 129 and 217 o: 2is $ode o 2e .onrar90 and in .ases B2ere 2e re!aions2ip
o: e3p!o9er)e3p!o9ee si!! eAiss0 2e Se.rear9 o: #a4or and E3p!o93en or 2is du!9
au2ori*ed represenaives s2a!! 2ave 2e poBer o issue .o3p!ian.e orders o /ive
e6e. o 2e !a4or sandards provisions o: 2is $ode and o2er !a4or !e/is!aion 4ased
on 2e Cndin/s o: !a4or e3p!o93en and en:or.e3en oE.ers or indusria! sa:e9
en/ineers 3ade in 2e .ourse o: inspe.ion. T2e Se.rear9 or 2is du!9 au2ori*ed
represenaives s2a!! issue Bris o: eAe.uion o 2e appropriae au2ori9 :or 2e
en:or.e3en o: 2eir orders0 eA.ep in .ases B2ere 2e e3p!o9er .oness 2e
Cndin/s o: 2e !a4or e3p!o93en and en:or.e3en oE.er and raises issues
suppored 49 do.u3enar9 proo:s B2i.2 Bere no .onsidered in 2e .ourse o:
inspe.ion.
+ag * Asa Steel @or?s vs CA .&))71 2.'. /777(3
4a#ts"
Peiioner is en/a/ed in 2e 3anu:a.ure o: see! 4ars and Bire rods B2i!e Pa/)Asa See!
;or8ers =nion is 2e du!9 au2ori*ed 4ar/ainin/ a/en o: 2e ran8)and)C!e e3p!o9ees.
RT;P( o: "$R issued a Ba/e order B2i.2 provided :or a P 1&.00 in.rease o: 2e sa!aries
re.eivin/ 3ini3u3 Ba/es. T2e Peiioner and 2e union ne/oiaed on 2e in.rease.
Peiioner :orBarded a !eer o 2e union Bi2 2e !is o: adGus3ens invo!vin/ ran8 and
C!e e3p!o9ees. In Sepe34er 19990 2e peiioner and union enered ino an .o!!e.ive
4ar/ainin/ a/ree3en B2ere i provided Ba/e adGus3ens na3e!9 P1,0 P2,0 P&0 :or
2ree su..eedin/ 9ear. 5n 2e Crs 9ear0 2e in.rease provided Bere :o!!oBed uni!
RT;P( issued ano2er Ba/e order B2ere i provided :or a P2,.,0 per da9 in.rease in
2e sa!ar9 o: e3p!o9ees re.eivin/ 2e 3ini3u3 Ba/e and in.reased 2e 3ini3u3 Ba/e
o P22&.,0 per da9. Peiioner paid 2e P2,.,0 per da9 in.rease o a!! o: is ran8)and)C!e
e3p!o9ees.
5n "ove34er 20000 ;a/e 5rder "o. "$R)0' Bas issued B2ere i provided 2e in.rease
o: P2%.,0 per da9. T2e union presiden as8ed 2a 2e Ba/e order 4e i3p!e3ened
B2ere peiioner reGe.ed 2e reKues .!ai3in/ 2a 2ere Bas no Ba/e disorion and i
Bas no o4!i/ed o /ran 2e Ba/e in.rease. T2e union su43ied 2e 3aer :or
vo!unar9 ar4iraion B2ere i :avored 2e posiion o: 2e .o3pan9 and dis3issed 2e
.o3p!ain. T2e 3aer Bas e!evaed o $A B2ere i :avored 2e respondens.
-ssue" ;5" 2e .o3pan9 Bas o4!i/ed o /ran 2e Ba/e in.rease under 2e ;a/e
5rder as a 3aer o: pra.i.e.
5eld" $o3pan9 is no o4!i/ed o /ran 2e Ba/e in.rease.
I is su43ied 2a e3p!o9ers un!ess eAe3p are 3andaed o i3p!e3en 2e said Ba/e
order 4u !i3ied o 2ose eni!ed 2ereo. A perusa! o: 2e re.ord s2oBs 2a 2e !oBes
paid e3p!o9ee 4e:ore 2e i3p!e3enaion o: ;a/e 5rder X' is P2,0.00Fda9 and none
Bas re.eivin/ 4e!oB P22&.,0 3ini3u3. T2is .ou!d on!9 3ean 2a 2e union .an no
!on/er de3and :or an9 Ba/e disorion adGus3en. T2e provision o: Ba/e order X' and
is i3p!e3enin/ ru!es are ver9 .!ear as o B2o are eni!ed o 2e P2%.,0Fda9 in.rease0
i.e.0 Iprivae se.or Bor8ers and e3p!o9ees in 2e "aiona! $apia! Re/ion re.eivin/ 2e
56
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
pres.ri4ed dai!9 3ini3u3 Ba/e rae o: P22&.,0 s2a!! re.eive an in.rease o: TBen9)SiA
Pesos and -i:9 $enavos (P2%.,0) per da90I and sin.e 2e !oBes paid is P2,0.00Fda9
2e .o3pan9 is no o4!i/ed o adGus 2e Ba/es o: 2e Bor8ers.
T2e provision in 2e $(A 2a IAn9 ;a/e 5rder o 4e i3p!e3ened 49 2e Re/iona!
Triparie ;a/e and Produ.ivi9 (oard s2a!! 4e in addiion o 2e Ba/e in.rease
advered a4oveI .anno 4e inerpreed in suppor o: an a.ross)2e)4oard in.rease. ;a/e
5rder "o. "$R)0' .!ear!9 saes 2a on!9 2ose e3p!o9ees re.eivin/ sa!aries 4e!oB 2e
pres.ri4ed 3ini3u3 Ba/e are eni!ed o 2e Ba/e in.rease provided 2erein0 and no
a!! e3p!o9ees a.ross)2e)4oard as responden =nion Bou!d Ban peiioner o do.
$onsiderin/ 2ere:ore 2a none o: 2e 3e34ers o: responden =nion are re.eivin/
sa!aries 4e!oB 2e P2,0.00 3ini3u3 Ba/e0 peiioner is no o4!i/ed o /ran 2e Ba/e
in.rease o 2e3. 1oreover0 o ripen ino a .o3pan9 pra.i.e 2a is de3anda4!e as a
3aer o: ri/20 2e /ivin/ o: 2e in.rease s2ou!d no 4e 49 reason o: a sri. !e/a! or
.onra.ua! o4!i/aion0 4u 49 reason o: an a. o: !i4era!i9 on 2e par o: 2e e3p!o9er.
Hen.e0 even i: 2e .o3pan9 .oninuous!9 /rans a Ba/e in.rease as 3andaed 49 a
Ba/e order or pursuan o a $(A0 2e sa3e Bou!d no auo3ai.a!!9 ripen ino a
.o3pan9 pra.i.e.
,quitable +C- %an? vs Sada# .&))71 2.'. /7(33&
4a#ts"
Ri.ardo Sada. Bas appoined >P o: 2e #e/a! Depar3en o: peiioner (an8 e6e.ive
Au/us 19'10 and su4seKuen!9 Genera! $ounse! 2ereo: on De.e34er 19'1. 5n June
19'90 nine !aB9ers o: peiioner (an8?s #e/a! Depar3en0 in a !eer)peiion o 2e
$2air3an o: 2e (oard o: Dire.ors0 a..used responden Sada. o: a4usive .ondu. and
u!i3ae!90 peiioned :or a .2an/e in !eaders2ip o: 2e depar3en. 5n 2e /round o:
!a.8 o: .onCden.e in Sada.0 under 2e ru!es o: .!ien and !aB9er re!aions2ip0 peiioner
(an8 insru.ed responden Sada. o de!iver a!! 3aeria!s in 2is .usod9 in a!! .ases in
B2i.2 2e !aer Bas appearin/ as is .ounse! o: re.ord. In rea.ion 2ereo0 Sada.
reKuesed :or a :u!! 2earin/ and :or3a! invesi/aion 4u 2e sa3e re3ained un2eeded.
5n "ove34er 19'90 responden Sada. C!ed a .o3p!ain :or i!!e/a! dis3issa! Bi2
da3a/es a/ains peiioner (an8 and individua! 3e34ers o: 2e (oard o: Dire.ors
2ereo:. A:er !earnin/ o: 2e C!in/ o: 2e .o3p!ain0 peiioner (an8 er3inaed 2e
servi.es o: responden Sada.. -ina!!90 on Au/us 19'90 Sada. Bas re3oved :ro3 2is
oE.e
#a4or Ar4ier rendered de.ision 2a Sada.?s er3inaion Bas i!!e/a! and eni!ed o
reinsae3en and pa93en o: :u!! 4a.8 Ba/es. "#R$ aEr3ed 2e de.ision upon
appea! 49 2e (an8. Sada. C!ed :or eAe.uion o: Gud/3en B2ere i /ave is
.o3puaion B2i.2 a3ouned o P %.0& 1 represenin/ 2is 4a.8 Ba/es and 2e
in.reases 2e s2ou!d 2ave re.eived durin/ 2e i3e 2e Bas i!!e/a!!9 dis3issed. T2e (an8
opposed o Sada.?s .o3puaion. T2e #a4or Ar4ier :avor Sada.?s .o3puaion. "#R$0
upon appea! 49 2e 4an80 reversed 2e de.ision. $A reversed 2e de.ision o: "#R$.
-ssue" ;5" 2e .o3puaion o: 4a.8 Ba/es s2a!! in.!ude 2e /enera! in.reases.
5eld" Responden Sada. .anno a8e eA.epion 49 ar/uin/ 2a Gurispruden.e spea8s
on!9 o: Ba/e and no sa!ar90 and 2ere:ore0 2e ru!e is inapp!i.a4!e o 2i3. I is
responden Sada.?s san.e 2a 2e Bas no paid a 2e Ba/e rae nor Bas 2e en/a/ed in
so3e :or3 o: 3anua! or p29si.a! !a4or as 2e Bas 2ired as >i.e Presiden o: peiioner
(an8. He .ies Gaa v. $our o: Appea!s

B2ere 2e $our disin/uis2ed 4eBeen Ba/e and
sa!ar9.
57
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
T2e re!ian.e is 3isp!a.ed. T2e disin.ion 4eBeen sa!ar9 and Ba/e in Gaa Bas :or 2e
purpose o: Ari.!e 170' o: 2e $ivi! $ode B2i.2 3andaes 2a0 IQR2e !a4orer?s Ba/e
s2a!! no 4e su4Ge. o eAe.uion or aa.23en0 eA.ep :or de4s in.urred :or :ood0
s2e!er0 .!o2in/ and 3edi.a! aendan.e.I In !a4or !aB0 2oBever0 2e disin.ion
appears o 4e 3ere!9 se3ani.s. Para3oun and Evan/e!isa 3a9 2ave invo!ved Ba/e
earners0 4u 2e peiioner in EspeGo Bas a Genera! 1ana/er Bi2 a 3on2!9 sa!ar9 o:
P90000.00 p!us privi!e/es. T2a Ba/e and sa!ar9 are s9non93ous 2as 4een se!ed in
Son/.o v. "aiona! #a4or Re!aions $o33ission. ;e saidP
(road!90 2e Bord Isa!ar9I 3eans a re.o3pense or .onsideraion 3ade o a person
:or 2is pains or indusr9 in ano2er 3an?s 4usiness. ;2e2er i 4e derived :ro3
Isa!ariu30I or 3ore :an.i:u!!9 :ro3 Isa!0I 2e pa9 o: 2e Ro3an so!dier0 i .arries Bi2
i 2e :unda3ena! idea o: .o3pensaion :or servi.es rendered. Indeed0 2ere is
e3inen au2ori9 :or 2o!din/ 2a 2e Bords IBa/esI and Isa!ar9I are in essen.e
s9non93ous (;ords and P2rases0 >o!. &' Per3anen Ediion0 p. ++ .iin/ Hop8ins vs.
$ro3Be!!0 ', ".D.S.'&90 '+10 '9 App. Div. +'1N &' A3. Jur. +9%). ISa!ar90I 2e
e93o!o/9 o: B2i.2 is 2e #ain Bord Isa!ariu30I is o:en used iner.2an/ea4!9 Bi2
IBa/eI0 2e e93o!o/9 o: B2i.2 is 2e 1idd!e En/!is2 Bord IBa/enI. (o2 Bords
/enera!!9 re:er o one and 2e sa3e 3eanin/0 2a is0 a reBard or re.o3pense :or
servi.es per:or3ed. #i8eBise0 Ipa9I is 2e s9non93 o: IBa/esI and Isa!ar9I ((!a.8?s
#aB Di.ionar90 ,2 Ed). A A A (Ia!i.s supp!ied.)
Metro!olitan %an? vs 6@+C .&))31 2.'. /((8&&
4a#ts"
5n 5.o4er 199,0 2e Re/iona! Triparie ;a/es and Produ.ivi9 (oard0 Re/ion II0
Tu/ue/arao0 $a/a9an (RT;P()0 49 virue o: Repu4!i. A. "o. %727 (R.A. "o. %727)0
o2erBise 8noBn as 2e ;a/e Raiona!i*aion A.0 issued ;a/e 5rder "o. R02)0& (;a/e
5rder)0 as :o!!oBsP ection ;. =pon e6e.ivi9 o: 2is ;a/e 5rder0 a!! e3p!o9eesFBor8ers
in 2e privae se.or 2rou/2ou Re/ion II0 re/ard!ess o: 2e saus o: e3p!o93en are
/raned an a.ross)2e)4oard in.rease o: P1,.00 dai!9.
T2e ;a/e 5rder Bas pu4!is2ed in a neBspaper o: /enera! .ir.u!aion on De.e34er 20
199, and oo8 e6e. on Januar9 10 199%. Is I3p!e3enin/ Ru!es Bere approved on
-e4ruar9 1+0 199%. Per Se.ion 1& o: 2e ;a/e 5rder0 an9 par9 a//rieved 49 2e ;a/e
5rder 3a9 C!e an appea! Bi2 2e "aiona! ;a/es and Produ.ivi9 $o33ission (";P$)
2rou/2 2e RT;P( Bi2in 10 .a!endar da9s :ro3 2e pu4!i.aion o: 2e ;a/e 5rder.
(an8er?s $oun.i! in a !eer inKuir9 o ";P$ reKuesed :or ru!in/ o see8 eAe3pion :ro3
.overa/e o: 2e Ba/e order sin.e 2e 3e34ers 4an8 are pa9in/ 3ore 2an 2e re/u!ar
Ba/e. ";P$ rep!ied 2a 2e 3e34er 4an8s are .overed 49 2e Ba/e order and does
no :a!! Bi2 2e eAe3pi4!e .ae/ories. In ano2er !eer inKuir90 1ero4an8 as8ed :or
2e inerpreaion o: 2e app!i.a4i!i9 o: 2e Ba/e order. ";P$ re:erred i o RT;P(.
RT;P( in reurn .!ariCed 2a esa4!is23ens in Re/ion 2 are
-ssueP ;5" 2e Ba/e order is void 2us i 2as no !e/a! e6e. and 2e RT;P( a.ed in
eA.ess o: is Gurisdi.ion.
5eld" Se.ion 10 ;a/e 5rder "o. R02)0& is void inso:ar as i /rans a Ba/e in.rease o
e3p!o9ees earnin/ 3ore 2an 2e 3ini3u3 Ba/e raeN and pursuan o 2e separa4i!i9
.!ause o: 2e ;a/e 5rder0 Se.ion 1 is de.!ared va!id Bi2 respe. o e3p!o9ees earnin/
2e prevai!in/ 3ini3u3 Ba/e rae.
T2e poBers o: ";P$ are enu3eraed in ART. 121. PoBers and -un.ions o: 2e
$o33ission. ) T2e $o33ission s2a!! 2ave 2e :o!!oBin/ poBers and :un.ionsP (d) To
58
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
revieB re/iona! Ba/e !eve!s se 49 2e Re/iona! Triparie ;a/es and Produ.ivi9 (oards
o deer3ine i: 2ese are in a..ordan.e Bi2 pres.ri4ed /uide!ines and naiona!
deve!op3en p!ansN (:) To revieB p!ans and pro/ra3s o: 2e Re/iona! Triparie ;a/es
and Produ.ivi9 (oards o deer3ine B2e2er 2ese are .onsisen Bi2 naiona!
deve!op3en p!ansN (/) To eAer.ise e.2ni.a! and ad3inisraive supervision over 2e
Re/iona! Triparie ;a/es and Produ.ivi9 (oards.
R.A. "o. %727 de.!ared i a po!i.9 o: 2e Sae o raiona!i*e 2e CAin/ o: 3ini3u3
Ba/es and o pro3oe produ.ivi9)i3prove3en and /ain)s2arin/ 3easures o ensure a
de.en sandard o: !ivin/ :or 2e Bor8ers and 2eir :a3i!iesN o /uaranee 2e ri/2s o:
!a4or o is Gus s2are in 2e :ruis o: produ.ionN o en2an.e e3p!o93en /eneraion in
2e .ounr9side 2rou/2 indusria! dispersa!N and o a!!oB 4usiness and indusr9
reasona4!e reurns on inves3en0 eApansion and /roB2.
In !ine Bi2 is de.!ared po!i.90 R.A. "o. %727 .reaed 2e ";P$0 vesed Bi2 2e poBer
o pres.ri4e ru!es and /uide!ines :or 2e deer3inaion o: appropriae 3ini3u3 Ba/e
and produ.ivi9 3easures a 2e re/iona!0 provin.ia! or indusr9 !eve!sN and au2ori*ed
2e RT;P( o deer3ine and CA 2e 3ini3u3 Ba/e raes app!i.a4!e in 2eir respe.ive
re/ions0 provin.es0 or indusries 2erein and issue 2e .orrespondin/ Ba/e orders0
su4Ge. o 2e /uide!ines issued 49 2e ";P$. Pursuan o is Ba/e CAin/ au2ori90 2e
RT;P( 3a9 issue Ba/e orders B2i.2 se 2e dai!9 3ini3u3 Ba/e raes0 4ased on 2e
sandards or .rieria se 49 Ari.!e 12+ o: 2e #a4or $ode.
T2e $our de.!ared 2a 2ere are Bo Ba9s o: CAin/ 2e 3ini3u3 Ba/eP 2e ILoor-
wageI 3e2od and 2e Isalary-#eilingI 3e2od. $;e ILoor-wageI met;od
involves t;e EGing of a determinate amount to be added to t;e !revailing
statutory minimum wage rates. 5n 2e o2er 2and0 in t;e Isalary-#eilingI
met;od= t;e wage adMustment was to be a!!lied to em!loyees re#eiving a
#ertain denominated salary #eiling. In o2er Bords0 Bor8ers a!read9 4ein/ paid
3ore 2an 2e eAisin/ 3ini3u3 Ba/e (up o a .erain a3oun saed in 2e ;a/e
5rder) are a!so o 4e /iven a Ba/e in.rease.
In 2e presen .ase0 2e RT;P( did no deer3ine or CA 2e 3ini3u3 Ba/e rae 49 2e
ISoor)Ba/e 3e2odI or 2e Isa!ar9).ei!in/ 3e2odI in issuin/ 2e ;a/e 5rder. T2e
RT;P( did no se a Ba/e !eve! nor a ran/e o B2i.2 a Ba/e adGus3en or in.rease
s2a!! 4e added. Insead0 i /raned an a.ross)2e)4oard Ba/e in.rease o: P1,.00 o a!!
e3p!o9ees and Bor8ers o: Re/ion 2. In doin/ so0 2e RT;P( eA.eeded is au2ori9 49
eAendin/ 2e .overa/e o: 2e ;a/e 5rder o Ba/e earners re.eivin/ 3ore 2an 2e
prevai!in/ 3ini3u3 Ba/e rae0 Bi2ou a deno3inaed sa!ar9 .ei!in/. As .orre.!9
poined ou 49 2e 5SG0 2e ;a/e 5rder /raned addiiona! 4eneCs no .one3p!aed
49 R.A. "o. %727.
59
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
'aMa; 5umabon 5otel vs $raMano ./0081 2.'. /))&&&-&8
4a#ts"
Su4seKuen o 2e iniia! p!eadin/ C!ed 49 responden)e3p!o9ees 4e:ore 2e re/iona!
dire.or o: D5#E :or redress in re/ard o underpaid Ba/es and non)pa93en o: 4eneCs0
peiioners Bere insru.ed o a!!oB 2e inspe.ion o: 2e e3p!o93en re.ords o:
respondens on Apri! +0 19'9. HoBever0 no inspe.ion .ou!d 4e done on 2a dae on
a..oun o: 2e pi.8e sa/ed 49 o2er Bor8ers. A 2e re)s.2edu!ed eAa3inaion a:er
.!osure o: peiionersL 4usiness on Apri! 1%0 19'90 insead o: presenin/ 2e pa9ro!!s and
dai!9 i3e re.ords o: privae respondens0 peiioner Peer Po su43ied a 3oion o
dis3iss on 2e supposiion 2a 2e re/iona! dire.or 2as no Gurisdi.ion over 2e .ase
4e.ause 2e e3p!o9er)e3p!o9ee re!aions2ip 2ad 4een served as a resu! o: 2e .!osure
o: peiionersL 4usiness0 apar :ro3 2e :a. 2a ea.2 o: 2e .!ai3s o: privae
respondens eA.eeded 2e Gurisdi.iona! !i3i o: P,0000.00 pe//ed 49 Repu4!i. A. "o.
%71, or 2e "eB #a4or Re!aions #aB.
-ssue" ;2o 4eBeen 2e Re/iona! Dire.or o: D5#E and 2e #a4or Ar4ier 2as
Gurisdi.iona! .o3peen.e over 2e .o3p!ain o: privae respondensJ
5eld" Re/iona! Dire.or 2ad no Gurisdi.ion over 2e .ase.
Se.ion 2 o: E5 "o. 1110 pro3u!/aed on De.e34er 2+0 19'%0 B2i.2 a3ended Ari.!e
12'(4) o: 2e #a4or $ode /ives .on.urren Gurisdi.ion o 4o2 2e Se.rear9 o: #a4or (or
2e various re/iona! dire.ors) and 2e !a4or ar4iers over 3one9 .!ai3s a3on/ 2e
o2er .ases 3enioned 49 Ari.!e 217 o: 2e #a4or $ode. T2is provision 3ere!9
.onCr3sFreieraes 2e en:or.e3enFadGudi.aion au2ori9 o: 2e Re/iona! Dire.or over
un.onesed 3one9 .!ai3s in .ases B2ere an e3p!o9er)e3p!o9ee re!aions2ip si!!
eAiss.
60
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
HoBever0 Bi2 2e ena.3en o: Repu4!i. A. "o. %71,0 B2i.2 oo8 e6e. on 1ar.2 210
19'9 or seven da9s a:er 2e .o3p!ain a 4ar Bas C!ed on 1ar.2 1+0 19'90 Ari.!es 129
and 217 o: 2e #a4or $ode Bere a3ended0 2ere is no dou4 2a 2e re/iona! dire.ors
.an r9 3one9 .!ai3s on!9 i: 2e :o!!oBin/ reKuisies .on.urP (1) 2e .!ai3 is presened
49 an e3p!o9ee or person e3p!o9ed in do3esi. or 2ouse2o!d servi.e0 or 2ouse2e!per
under 2e .odeN (2) 2e .!ai3an0 no !on/er 4ein/ e3p!o9ed0 does no see8
reinsae3enN and (&) 2e a//re/ae 3one9 .!ai3 o: 2e e3p!o9ee or 2ouse8eeper
does no eA.eed Cve 2ousand pesos (P,0000.00). T2us0 2e poBer o 2ear and de.ide
e3p!o9eesL .!ai3s arisin/ :ro3 e3p!o9er)e3p!o9ee re!aions0 eA.eedin/ P,0000.00 :or
ea.2 e3p!o9ee s2ou!d 4e !e: o 2e #a4or Ar4ier as 2e e'clusive repository o: 2e
poBer o 2ear and de.ide su.2 .!ai3s.
In 2e insan .ase0 a si3p!e eAa3inaion o: 2e !a4or ar4ierLs i3pu/ned order daed
Sepe34er 2,0 19'9 readi!9 s2oBs 2a 2e a//re/ae .!ai3s o: ea.2 o: 2e Ben9)Cve
e3p!o9ees o: peiioner are a4ove 2e a3oun o: P,0000.00 CAed 49 Repu4!i. A. "o.
%71,. T2ere:ore0 2e re/iona! dire.or 2ad no Gurisdi.ion over 2e .ase. Hen.e0 2e
peiion is /raned and 2e pu4!i. responden is dire.ed o re:er 2e Bor8ersL 3one9
.!ai3s o 2e appropriae #a4or Ar4ier :or proper disposiion.
2ui#o vs Se# of Labor ./0091 2.'. /8/3:)
4a#ts"
T2e .ase sared B2en 2e 5E.e o: 2e Re/iona! Dire.or0 Depar3en o: #a4or and
E3p!o93en (D5#E)0 Re/ion I0 San -ernando0 #a =nion0 re.eived a !eer).o3p!ain
daed Apri! 2,0 199,0 reKuesin/ :or an invesi/aion o: peiionerLs esa4!is23en0
$op9!andia Servi.es 7 Tradin/0 :or vio!aion o: !a4or sandards !aBs. Pursuan o 2e
visioria! and en:or.e3en poBers o: 2e Se.rear9 o: #a4or and E3p!o93en or 2is du!9
au2ori*ed represenaive under Ari.!e 12' o: 2e #a4or $ode0 as a3ended0 inspe.ions
Bere .ondu.ed a $op9!andiaLs ou!es on Apri! 27 and 1a9 20 199,. T2e inspe.ions
9ie!ded 2e :o!!oBin/ vio!aions invo!vin/ Ben9)one (21) e3p!o9ees B2o are .opier
operaorsP (1) underpa93en o: Ba/esN (2) underpa93en o: 1&2 3on2 pa9N and (&)
no servi.e in.enive !eave Bi2 pa9.

-ssue" ;5" 2e Re/iona! Dire.or 2as Gurisdi.ion over 2e !a4or sandards .ase.
5eld" Re/iona! Dire.or 2as Gurisdi.ion over 2e .ase .iin/ Ari.!e 12' (4) o: 2e #a4or
$ode0 as a3ended.
;e susain 2e Gurisdi.ion o: 2e responden Se.rear9. As 2e responden .orre.!9
poined ou0 2is $ourLs ru!in/ in Servando T 2a 2e visioria! poBer o: 2e Se.rear9
o: #a4or o order and en:or.e .o3p!ian.e Bi2 !a4or sandard !aBs .anno 4e eAer.ised
B2ere 2e individua! .!ai3 eA.eeds P,0000.000 .an no !on/er 4e app!ied in vieB o: 2e
ena.3en o: R.A. "o. 77&0 a3endin/ Ari.!e 12'(4) o: 2e #a4or $ode0 vi8P
Ar. 12' (4) T "oBi2sandin/ 2e provisions o: Ari.!es 129 and 217 o: 2is $ode o
2e .onrar90 and in .ases B2ere 2e re!aions2ip o: e3p!o9er)e3p!o9ee si!! eAiss0
2e Se.rear9 o: #a4or and E3p!o93en or 2is du!9 au2ori*ed represenaives s2a!!
2ave 2e poBer o issue .o3p!ian.e orders o /ive e6e. o 2e !a4or sandards
provisions o: 2e $ode and o2er !a4or !e/is!aion 4ased on 2e Cndin/s o: 2e !a4or
61
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
e3p!o93en and en:or.e3en oE.ers or indusria! sa:e9 en/ineers 3ade in 2e
.ourse o: inspe.ion. T2e Se.rear9 or 2is du!9 au2ori*ed represenaives s2a!! issue
Bris o: eAe.uion o 2e appropriae au2ori9 :or 2e en:or.e3en o: 2eir orders0
eA.ep in .ases B2ere 2e e3p!o9er .oness 2e Cndin/s o: 2e !a4or e3p!o93en
and en:or.e3en oE.er and raises issues suppored 49 do.u3enar9 proo:s B2i.2
Bere no .onsidered in 2e .ourse o: inspe.ion.
An order issued 49 2e du!9 au2ori*ed represenaive o: 2e Se.rear9 o: #a4or and
E3p!o93en under 2is ari.!e 3a9 4e appea!ed o 2e !aer. In .ase said order
invo!ves a 3onear9 aBard0 an appea! 49 2e e3p!o9er 3a9 4e per:e.ed on!9 upon
2e posin/ o: a .as2 or sure9 4ond issued 49 a repua4!e 4ondin/ .o3pan9 du!9
a..redied 49 2e Se.rear9 o: #a4or and E3p!o93en in 2e a3oun eKuiva!en o
2e 3onear9 aBard in 2e order appea!ed :ro3. (E3p2asis supp!ied.)
T2e re.ords o: 2e House o: Represenaives s2oB 2a $on/ress3en A!4ero S. >e!oso
and Eri4ero >. #oreo sponsored 2e !aB. In 2is sponsors2ip spee.20 $on/ress3an
>e!oso .ae/ori.a!!9 de.!ared 2a I2is 4i!! see8s o do aBa9 Bi2 2e Gurisdi.iona!
!i3iaions i3posed 2rou/2 said ru!in/ (re:errin/ o Servando) and o Cna!!9 se!e an9
!in/erin/ dou4s on 2e visioria! and en:or.e3en poBers o: 2e Se.rear9 o: #a4or and
E3p!o93en.IPeiionerLs re!ian.e on Servando is 2us unena4!e.
,J' Crafts Cor!.= vs Court of A!!eals .&))71 2.'. /:(/)/
4a#ts"
So3ei3e in 19970 privae respondens C!ed a .o3p!ain :or underpa93en o: Ba/es0
re/u!ar 2o!ida9 pa90 overi3e pa90 nonpa93en o: 1&2 3on2 pa9 and servi.e
in.enive !eave pa9 a/ains peiioner 4e:ore 2e Re/iona! 5E.e0 "$R o: 2e D5#E.
A.in/ on 2e .o3p!ain0 an inspe.ion Bas .ondu.ed on 2e pre3ises o: peiioner?s
oE.es on Au/us 220 1997 B2erein vio!aions o: !a4or sandards !aB Bere dis.overed.
Peiioner ar/ued 2a 2e Re/iona! Dire.or 2as no Gurisdi.ion over 2e .ase as privae
respondens Bere a!!e/ed!9 no !on/er .onne.ed Bi2 peiioner .orporaion a 2e i3e
o: 2e C!in/ o: 2e .o3p!ain and B2en 2e inspe.ion Bas .ondu.ed0 and 2a privae
respondens? .!ai3s are Bi2in 2e eA.!usive and ori/ina! Gurisdi.ion o: 2e #a4or
Ar4iers.
-ssue" ;5" pu4!i. responden Re/iona! Dire.or 2as Gurisdi.ion over 2e .ase.
5eld" T2e Re/iona! Dire.or 2as Gurisdi.ion over 2e .ase.
As :ound 49 4o2 =nderse.rear9 o: #a4or and 2e $our o: Appea!s0 2e said Kui.!ai3
and re!ease :or3s are unre!ia4!e and do no .orrespond o o2er do.u3ens on re.ord
B2i.2 Bou!d prove 2a privae respondens Bere Bor8in/ :or 2e peiioner up o
Au/us 1997.
$onsiderin/ 2us 2a 2ere si!! eAiss an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen
peiioner and privae respondens and 2a 2e .ase invo!ves vio!aions o: !a4or
sandard provisions o: 2e #a4or $ode0 2is $our ru!es Bi2 2e =nderse.rear9 o: #a4or
and 2e appe!!ae .our 2a 2e Re/iona! Dire.or 2as Gurisdi.ion o 2ear and de.ide
2e insan .ase in .on:or3i9 Bi2 Ari.!e 12'(4) o: 2e #a4or $ode B2i.2 saes 2aP
O"oBi2sandin/ 2e provisions o: Ari.!es 129 and 217 o: 2is $ode o 2e .onrar90
and in .ases B2ere 2e re!aions2ip o: e3p!o9er)e3p!o9ee si!! eAiss0 2e Se.rear9 o:
#a4or and E3p!o93en or 2is du!9 au2ori*ed represenaives s2a!! 2ave 2e poBer o
62
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
issue .o3p!ian.e orders o /ive e6e. o 2e !a4or sandards provisions o: 2is $ode and
o2er !a4or !e/is!aion 4ased on 2e Cndin/s o: !a4or e3p!o93en and en:or.e3en
oE.ers or indusria! sa:e9 en/ineers 3ade in 2e .ourse o: inspe.ion. T2e Se.rear9 or
2is du!9 au2ori*ed represenaives s2a!! issue Bris o: eAe.uion o 2e appropriae
au2ori9 :or 2e en:or.e3en o: 2eir orders0 eA.ep in .ases B2ere 2e e3p!o9er
.oness 2e Cndin/s o: 2e !a4or e3p!o93en and en:or.e3en oE.er and raises issues
suppored 49 do.u3enar9 proo:s B2i.2 Bere no .onsidered in 2e .ourse o:
inspe.ion.M
,G * %ataan Neterans Se#urity Agen#y vs Se# of Labor .&))31 2.'. /:&807
4a#ts"
EA)(aaan >eerans Se.uri9 A/en.90 In.. is in 2e 4usiness o: providin/ se.uri9
servi.es B2i!e privae respondens are E(>SAILs e3p!o9ees assi/ned o 2e "aiona!
PoBer $orporaion a A34u8!ao H9dro E!e.ri. P!an0 (o8od0 (en/ue (A34u8!ao P!an).
5n 20 -e4ruar9 199%0 privae respondens !ed 49 A!eAander Po.din/ (Po.din/) insiued
a .o3p!ain :or underpa93en o: Ba/es a/ains E(>SAI 4e:ore 2e Re/iona! 5E.e o:
2e Depar3en o: #a4or and E3p!o93en (D5#E). 5n 7 1ar.2 199%0 2e Re/iona! 5E.e
.ondu.ed a .o3p!ain inspe.ion a 2e A34u8!ao P!an B2ere so3e vio!aions Bere
noed.
-ssue" ;5" 2e Re/iona! Dire.or 2as Gurisdi.ion over 2e 3one9 .!ai3s.
5eld" T2e Re/iona! Dire.or 2as Gurisdi.ion over 2e .!ai3.
Ar. 12' >isioria! and en:or.e3en poBer. ))) A A A
(4) Not!it&standing t&e provisions o$ Article@sA ;<B and <;C o$ t&is Code to t&e
contrary, and in cases !&ere t&e relations&ip o$ employer5employee still e'ists, t&e
ecretary o$ La(or and ?mployment or &is duly aut&ori8ed representatives s&all &ave
t&e po!er to issue compliance orders to give efect to @t&e la(or standards provisions
o$ t&is Code and ot&erA la(or legislation (ased on t&e 6ndings o$ la(or employment
and en$orcement o4cers or industrial sa$ety engineers made in t&e course o$
inspection. T2e Se.rear9 or 2is du!9 au2ori*ed represenaives s2a!! issue Bris o:
eAe.uion o 2e appropriae au2ori9 :or 2e en:or.e3en o: 2eir orders0 eA.ep in
63
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
.ases B2ere 2e e3p!o9er .oness 2e Cndin/s o: 2e !a4or e3p!o93en and
en:or.e3en oE.er and raises issues suppored 49 do.u3enar9 proo:s B2i.2 Bere
no .onsidered in 2e .ourse o: inspe.ion. A A A A
T2e a:oreKuoed provision eAp!i.i!9 eA.!udes :ro3 is .overa/e Ari.!es 129 and 217 o:
2e #a4or $ode.
T2is Bas :ur2er aEr3ed in our ru!in/ in Cirineo "o!ling 0la8a, Dnc. v. ensing, B2ere
Be susained 2e Gurisdi.ion o: 2e D5#E Re/iona! Dire.or and 2e!d 2a It;e
visitorial and enfor#ement !owers of t;e DAL, 'egional Dire#tor to order and
enfor#e #om!lian#e wit; labor standard laws #an be eGer#ised even w;ere t;e
individual #laim eG#eeds+:=))).I
HoBever0 i: 2e !a4or sandards .ase is .overed 49 2e eA.epion .!ause in Ari.!e 12'(4)
o: 2e #a4or $ode0 2en 2e Re/iona! Dire.or Bi!! 2ave o endorse 2e .ase o 2e
appropriae Ar4iraion (ran.2 o: 2e "#R$. In order o dives 2e Re/iona! Dire.or or
2is represenaives o: Gurisdi.ion0 2e :o!!oBin/ e!e3ens 3us 4e presenP (a) 2a 2e
e3p!o9er .oness 2e Cndin/s o: 2e !a4or re/u!aions oE.er and raises issues 2ereonN
(4) 2a in order o reso!ve su.2 issues0 2ere is a need o eAa3ine evideniar9 3aersN
and (.) 2a su.2 3aers are no veriCa4!e in 2e nor3a! .ourse o: inspe.ion. T2e ru!es
a!so provide 2a 2e e3p!o9er s2a!! raise su.2 o4Ge.ions durin/ 2e 2earin/ o: 2e .ase
or a an9 i3e a:er re.eip o: 2e noi.e o: inspe.ion resu!s.
In 2is .ase0 2e Re/iona! Dire.or va!id!9 assu3ed Gurisdi.ion over 2e 3one9 .!ai3s o:
privae respondens even i: 2e .!ai3s eA.eeded P,0000 4e.ause su.2 Gurisdi.ion Bas
eAer.ised in a..ordan.e Bi2 Ari.!e 12'(4) o: 2e #a4or $ode and 2e .ase does no :a!!
under 2e eA.epion .!ause.
Cat;oli# Ni#ariate %aguio City vs 5on. Sto. $omas .&))91 2.'./7388(
4a#ts"
Peiioner .onra.ed H="H;A o .onsru. 2e reainin/ Ba!! o: 2e (a/uio $a2edra!.
H=";HA0 in urn0 su4.onra.ed $ERE(A (ui!ders ($ERE(A) o do 2e :or3Bor8s o: 2e
.2ur.2. T2e .onra. 4eBeen H=";HA and $ERE(A !ased up o 2e .o3p!eion o: 2e
proGe. or on ' Sepe34er 20000 H=";HA :ai!ed o pa9 $ERE(A. $onseKuen!90 2e
!aer :ai!ed o pa9 is e3p!o9ees.
A/4u.a90 a!on/ Bi2 '1 o2er e3p!o9ees0 !od/ed a .o3p!ain a/ains $ERE(A0 H=";HA
and peiioner 4e:ore 2e D5#E)$AR Re/iona! 5E.e :or nonpa93en o: Ba/es0 spe.ia!
and !e/a! 2o!ida9 pre3iu3 pa9. An inspe.ion o: 2e pre3ises resu!ed in 2e dis.over9
o: vio!aions o: !a4or sandards !aB0 su.2 as nonpa93en o: Ba/es and 2o!ida9 pa9 :ro3
2' June 2000 o , Sepe34er 20000 non)presenaion o: e3p!o93en re.ords0 and
o2ers. Peiioner0 H=";HA and $ERE(A Bere /iven Cve (,) da9s :ro3 re.eip o: 2e
noi.e o: inspe.ion resu!s o re.i:9 is vio!aions. Despie 2e noi.e0 2e paries :ai!ed
o .o3p!9. A 2earin/ Bas se B2erein $ERE(A 3ani:esed is Bi!!in/ness o pa9 2e
a6e.ed e3p!o9ees on 2e .ondiion 2a H=";HA Bou!d pa9 is o4!i/aion o $ERE(A.
Peiioner 3eanB2i!e 3ani:esed 2a 2e reenion :ee due o H=";HA Bas suE.ien o
pa9 2e deC.ien.ies due 2e a6e.ed e3p!o9ees.
5n 1ar.2 20010 2e D5#E)$AR Re/iona! Dire.or issued an 5rder 2o!din/ $ERE(A0
H=";HA and peiioner Goin!9 and severa!!9 !ia4!e o 2e '2 a6e.ed Bor8ers in 2e
a3oun o:P1002909,2.'0 or P120,%0.+0 :or ea.2 e3p!o9ee. Durin/ 2e penden.9 o: is
64
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
3oion :or re.onsideraion0 H=";HA vo!unari!9 se!ed 2e deC.ien.ies due 2e 2&
a6e.ed Bor8ers a3ounin/ o P'+0,++.00
T2e Re/iona! Dire.or dis3issed 2e .o3p!ain 49 reason o: 2e said se!e3en. He a!so
advised 2e o2er e3p!o9ees o veni!ae 2eir .!ai3s in an appropriae :oru3
.onsiderin/ 2a no e3p!o9er)e3p!o9ee re!aions2ip eAiss 4eBeen 2e paries.
-ssue" ;2e2er 2e Se.rear9 o: #a4or a.Kuired Gurisdi.ion over 2e appea! .onsiderin/
2a 2is .ase :a!!s Bi2in 2e eA.epion saed in Ari.!e 12'(4) o: 2e #a4or $ode.
5eld" Se.rear9 o: #a4or a.Kuired Gurisdi.ion over 2e appea! and peiioner is 4arred
49 esoppe! :ro3 raisin/ 2e issue o: Gurisdi.ion.
In reso!vin/ 2is Gurisdi.iona! issue0 2e Se.rear9 o: #a4or re!ied on 2e !i3iaions se
:or2 in Ari.!e 12'(4) o: 2e #a4or $ode and ru!ed0 2usP
- is Bor29 o noe 2a as re/ards 2e poBer /raned o Re/iona! Dire.or 49 Ari.!e
12' o: 2e #a4or $ode0 as a3ended0 on!9 Bo (2) !i3iaions are se :or2P Crs0 B2ere
2e e3p!o9er .oness 2e Cndin/s o: 2e !a4or re/u!aions oE.er0 and raises issues
B2i.2 .anno 4e reso!ved Bi2ou .onsiderin/ evideniar9 3aers 2a are no
veriCa4!e in 2e nor3a! .ourse o: inspe.ion0 and se.ond0 B2ere 2e e3p!o9er)
e3p!o9ee re!aions2ip no !on/er eAiss.
A A A (o2 o: 2e a4ove)saed !i3iaions are Banin/ in 2is .ase. Re.ords s2oB 2a0
B2en 2is .ase Bas C!ed on Au/us 290 20000 .o3p!ainans Bere si!! e3p!o9ed Bi2
2e responden $ERE(A Bor8in/ :or H=";HA?s proGe. Bi2 2e >i.ariae. T2ere Bas
no proo: 2a 2e su4.onra.in/ a/ree3en 4eBeen H=";HA #=U5"
$5"STR=$TI5" and $ERE(A (ui!ders Bas er3inaed as o: Ju!9 2000. T2e !eers
s2oBin/ 2e poor per:or3an.e o: $ERE(A (ui!ders .anno 4e .onsidered as a noi.e
o: er3inaion o: 2e Su4.onra.in/ A/ree3en :or 2e sa3e do no sae so.A A A
Su..in.!9 pu0 sin.e no Brien noi.e Bas served o responden $ERE(A (ui!ders
er3inain/ 2e Su4.onra.in/ A/ree3en0 2e e3p!o9er)e3p!o9ee re!aions2ip
4eBeen H=";HA and .o3p!ainans eAised uni! 2e .o3p!eion o: 2e
su4.onra.in/ a/ree3en on Sepe34er 1'0 2000. $onsiderin/ 2is0 B2en 2e
.o3p!ainans C!ed 2is .ase on Au/us 290 20000 2e Re/iona! Dire.or va!id!9
a.Kuired Gurisdi.ion over 2e .ase. And0 Gurisdi.ion on.e a.Kuired is no !os upon
2e insan.e o: 2e paries 4u .oninues uni! 2e .ase is er3inaed.A A A
I is a!so eKua!!9 i3poran o noe 2a0 durin/ 2e iniia! 2earin/ o: 2is .ase a 2e
Re/iona! 5E.e0 2e respondens :ai!ed o .ones 2e Cndin/s o: 2e #a4or
E3p!o93en and En:or.e3en 5E.er. T2e respondens :ai!ed o presen e3p!o93en
re.ords and an9 eviden.e o .onrover 2e Cndin/s despie 2e reasona4!e period o:
i3e a6orded 2e3. I Bas on!9 B2en responden H=";HA C!ed is 1oion :or
Re.onsideraion :ro3 2e 5rder daed 1ar.2 120 2001 o: 2e Re/iona! Dire.or 2a i
su43ied do.u3ens B2i.2 2e >i.ariae noB a!!e/ed o 4e no veriCa4!e in 2e
su33ar9 naure o: 2e !a4or inspe.ion
1oreover0 2e issue o: Gurisdi.ion is .!ear!9 inerBined Bi2 2e eAisen.e o: e3p!o9er)
e3p!o9ee re!aions2ip. I is undispued 2a 2e eAisen.e o: an e3p!o9er)e3p!o9ee
re!aions2ip is u!i3ae!9 a Kuesion o: :a..
Assu3in/ arguendo 2e a4sen.e o: an e3p!o9er)e3p!o9ee re!aions2ip 4eBeen 2e
paries0 2e Se.rear9 o: #a4or0 invo8in/ -din ecurity Agency v. Ee la erna0 .orre.!9
de.!ared 2a peiioner is noB esopped :ro3 Kuesionin/ 2e Gurisdi.ion o: 2e
Re/iona! Dire.or B2en i a.ive!9 pari.ipaed in 2e pro.eedin/s 2e!d 2erein. In said
.ase0 peiioner a!so su43ied o 2e Gurisdi.ion o: 2e Re/iona! Dire.or 49 a8in/ par
in 2e 2earin/s 4e:ore 2i3 and 49 su43iin/ a posiion paper. Si3i!ar!90 i Bas on!9
B2en 2e order o: 2e Re/iona! Dire.or Bas 3odiCed did peiioner Kuesion 2e
:or3er?s Gurisdi.ion o 2ear and de.ide 2e .ase.
65
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Sa!io vs Undalo# Constru#tion .&))91 2.'. /::)8(
4a#ts"
T2e .onrovers9 sared Bi2 a .o3p!ain C!ed 49 peiioner a/ains =nda!o.
$onsru.ion andFor En/ineer $iri!o =nda!o. :or i!!e/a! dis3issa!0 underpa93en o:
Ba/es and nonpa93en o: sauor9 4eneCs. Responden =nda!o. $onsru.ion0 a
sin/!e proprieors2ip oBned 49 $iri!o =nda!o.0 is en/a/ed in road .onsru.ion 4usiness
in $e4u $i9. Peiioner 2ad 4een e3p!o9ed as Ba.23an :ro3 1 1a9 199, o &0 1a9
199' B2en 2e Bas er3inaed on 2e /round 2a 2e proGe. 2e Bas assi/ned o Bas
a!read9 Cnis2ed0 2e 4ein/ a!!e/ed!9 a proGe. e3p!o9ee. (u peiioner assered 2a 2e
Bas a re/u!ar e3p!o9ee 2avin/ 4een en/a/ed o per:or3 Bor8s B2i.2 are Iusua!!9
ne.essar9 or desira4!eI in respondensL 4usiness.
-ssue" ;5" 2e Appe!!ae .our erred in :ai!in/ o dis3iss respondenLs peiion :or
.eriorari 4rou/2 4e:ore i on 2e /round 2a respondens :ai!ed o aa.2 .eriCed rue
.opies o: 2e "#R$Ls de.ision and reso!uion den9in/ 2e 3oion :or re.onsideraion.
5eld" Appe!!ae $our Bas ri/2.
In 2is $o33en on 2e Peiion :or $eriorari Bi2 Pra9er :or Te3porar9 Resrainin/
andFor Pre!i3inar9 InGun.ion

C!ed Bi2 2e $our o: Appea!s on 22 "ove34er 20010
peiioner did no raise 2is pro.edura! issue. "ei2er did 2e do so B2en 2e 3oved :or
re.onsideraion o: 2e ' 1a9 2002 De.ision o: 2e $our o: Appea!s. I is on!9 noB 4e:ore
2is $our 2a peiioner pro6ered 2e sa3e. T2is 4e!aed su43ission spe!!s doo3 :or
66
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
peiioner. 1ore :unda3ena!!90 an eAa3inaion o: 2e $our o: Appea!s rollo 4e!ies
peiioner as i .onCr3s 2a 2e a!!e/ed 3issin/ do.u3ens Bere in :a. aa.2ed o 2e
peiion.
To .ouner peiionerLs asserions0 respondens su43ied 9peBrien and si/ned pa9ro!!
s2ees :ro3 2 Sepe34er o ' De.e34er 199%0 :ro3 2% 1a9 o 1, June 19970 and :ro3
12 Januar9 o &1 1a9 199'. T2ese pa9ro!! s2ees .!ear!9 indi.ae 2a peiioner did
re.eive a dai!9 sa!ar9 o: P1+1.00.
1oreover0 a4sen an9 eviden.e o 2e .onrar90 /ood :ai2 3us 4e presu3ed in 2is
.ase. Enries in 2e pa9ro!!0 4ein/ enries in 2e .ourse o: 4usiness0 enGo9 2e
presu3pion o: re/u!ari9 under Ru!e 1&00 Se.ion +& o: 2e Ru!es o: $our. Hen.e0 B2i!e
as a /enera! ru!e0 2e 4urden o: provin/ pa93en o: 3onear9 .!ai3s ress on 2e
e3p!o9er0 B2en :raud is a!!e/ed in 2e preparaion o: 2e pa9ro!!0 2e 4urden o:
eviden.e s2i:s o 2e e3p!o9ee and i is in.u34en upon 2i3 o addu.e .!ear and
.onvin.in/ eviden.e in suppor o: 2is .!ai3. =n:orunae!90 peiionerLs 4are asserions
o: :raud do no suE.e o over.o3e 2e dispua4!e presu3pion o: re/u!ari9.
5on. Se#retary of Labor vs +anay Neterans Se#urity and -nvestigation Agen#y
.&))91 2.'. /733)9
4a#ts"
Peiioners Ed/ardo 1. A/apa9 and Sa3i!!ano A. A!onso0 Jr. Bere 2ired 49 responden
Pana9 >eeran?s Se.uri9 and Invesi/aion A/en.90 In.. T2e9 Bere saioned a 2e
p!an sie o: -ood Indusries0 In.. (-II) in Sa. Rosa0 #a/una uni! -II er3inaed is
.onra. Bi2 responden se.uri9 a/en.9. T2e9 Bere no /iven neB assi/n3ens and
2eir 4eneCs (in.!udin/ 1&
2
3on2 pa90 overi3e pa9 and 2o!ida9 pa9 as Be!! as Ba/e
di6erenia!s due o underpa93en o: Ba/es) Bere Bi22e!d 49 responden se.uri9
a/en.9. In .onseKuen.e0 2e9 C!ed a .o3p!ain :or vio!aion o: !a4or sandards in 2e
re/iona! oE.e o: 2e (D5#E)"$R). T2e !aer .ondu.ed an inspe.ion o: 2e responden
se.uri9 a/en.9. Durin/ su.2 inspe.ion0 responden Bas no a4!e o presen is pa9ro!!
as Be!! as 2e dai!9 i3e re.ords su43ied 49 2e peiioners. Hen.e0 Bi2 su.2
vio!aion0 D5#E inspe.or issued a noi.e o: inspe.ion and .on.o3ian!9 eAp!ained o
2e respondens 2a 2e9 2ave o .o3p!9 Bi2 !a4or sandards 49 pa9in/ 2e .!ai3s o:
2e peiioners or o2erBise0 2e9 .an Kuesion 2e noi.e o 2e D5#E)"$R Bi2in ,
da9s. Sin.e respondens did no do ei2er o: 2e a:ore3enioned 2in/s0 2e Re/iona!
67
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2
Digests
Dire.or o: D5#E)"$R adoped 2e Cndin/s o: 2e inspe.or. Respondens 3oved :or
re.onsideraion 4u i Bas denied. Respondens C!ed an appea! (Bi2 3oion o redu.e
.as2 or sure9 4ond) o 2e S5#E. T2e S5#E :ound 2a respondens :ai!ed o per:e.
2eir appea! sin.e 2e9 did no pos a .as2 or sure9 4ond eKuiva!en o 2e 3onear9
aBard. T2us0 2e appea! Bas dis3issed and 2e D5#E)"$R Re/iona! Dire.or?s order Bas
de.!ared Cna! and eAe.uor9. T2e S5#E denied re.onsideraion. Respondens appea!ed
o 2e $our o: Appea!s.
-ssues" ;5" 2ere Bas a per:e.ed appea!N B2e2er 3oion o redu.e appea! 4ond
a!!oBed in appea!s o 2e Se.rear9 o: #a4or.
5eld" 1.) Respondens :ai!ed o per:e. 2eir appea! in 2e 3anner pres.ri4ed 49 2e
#a4or $ode. T2e ru!e is 2a0 o per:e. an appea! o: 2e Re/iona! Dire.or?s order
invo!vin/ a 3onear9 aBard in .ases B2i.2 .on.ern 2e visioria! and en:or.e3en
poBers o: 2e Se.rear9 o: #a4or and E3p!o93en0 2e appea! 3us 4e C!ed and 2e
.as2 or sure9 4ond eKuiva!en o 2e 3onear9 aBard 3us 4e posed Bi2in en
.a!endar da9s :ro3 re.eip o: 2e order. -ai!ure ei2er o C!e 2e appea! or pos 2e 4ond
Bi2in 2e pres.ri4ed period renders 2e order Cna! and eAe.uor9. T2e !e/is!aive inen
o 3a8e 2e 4ond an indispensa4!e reKuisie :or 2e per:e.ion o: an appea! 49 2e
e3p!o9er is unders.ored 49 2e provision 2a Oan appea! 49 2e e3p!o9er 3a9 4e
per:e.ed on!9 upon 2e posin/ o: a .as2 or sure9 4ond.M T2e Bord Oon!9M 3a8es i
.!ear 2a 2e !aB3a8ers inended 2e posin/ o: a .as2 or sure9 4ond 49 2e e3p!o9er
o 4e 2e eA.!usive 3eans 49 B2i.2 an e3p!o9er?s appea! 3a9 4e per:e.ed
2.) "o. T2e Gurisdi.ion o: 2e "#R$ is separae and disin. :ro3 2a o: 2e Se.rear9 o:
#a4or and E3p!o93en. In 2e eAer.ise o: 2eir respe.ive Gurisdi.ions0 ea.2 a/en.9 is
/overned 49 is oBn ru!es o: pro.edure. In o2er Bords0 2e ru!es o: pro.edure o: 2e
"#R$ are di6eren :ro3 (and do no app!9 in) .ases .o/ni*a4!e 49 2e Se.rear9 o: #a4or
and E3p!o93en. =n!i8e 2e "eB Ru!es o: Pro.edure o: 2e "#R$0
R
no provision in 2e
Ru!es on 2e Disposiion o: #a4or Sandards $ases /overns 2e C!in/ o: a 3oion :or 2e
redu.ion o: 2e a3oun o: 2e 4ond. HoBever0 on 3aers 2a are no .overed 49 2e
Ru!es on 2e Disposiion o: #a4or Sandards $ases0 2e supp!eor9 app!i.aion o: 2e
Ru!es o: $our is au2ori*ed.
68
1 a . $ e . e ! i a T i 3 4 a ! # ! ( @ 2 R 3 + 0 2

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University of San Carlos - College of Law

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