You are on page 1of 1


1. Private respondents Faburada et. al. filed a complaint against PHCCI for illegal
dismissal, premium pay, separation pay,wage differential, moral damages and
attys fees.
2. PHCCI filed a motion to dismiss on the ground that no employer-employee
relationship exists since privaterespondents are all members and co-owners of the
cooperative. Also, private respondents have not exhausted theremedies provided in
the coop by-laws. PHCCI also filed a supplemental motion to dismiss alleging that RA
6939, theCooperative Development Authority Law, requires conciliation or
mediation within the cooperative before a resort to judicial proceeding.3. The Labor
Arbiter ruled in favor of the private respondents, holding that the case is impressed
withemployer-employee relationship and that the laws on cooperatives is
subservient to the Labor Code. The NLRC affirmed.ISSUE: WON there is an
employer-employee relationship between the parties and WON private respondents
wereregular employees

Elements in determining existence of employer employee relationship:1) Selection

and engagement of the worker or the power to hire2) The power to dismiss3)
Payment of wages by whatever means
4) Power to control the workers conduct
The above elements are present here. PHCCI through its Manager Mr. Edilberto
Lantaca, Jr. hired respondents ascomputer programmer and clerks. They worked
regular working hours, were assigned specific duties, were paid regularwages, and
made to accomplish regular time records, and worked under the supervision of the
manager.Art. 280, Labor Code comprehends 3 kinds of employees:1) REGULAR
EMPLOYEES or those whose work is necessary or desirable to the usual business of
the employer2) PROJECT EMPLOYEES or those whose employment has been fixed for
a specific project or undertaking the completionor termination of which has been
determined at the time of the engagement of the employee or where the work
orservices to be performed is seasonal in nature and the employment is for the
duration of the season3) CASUAL EMPLOYEES or those who are neither regular nor
project employeesThere are 2 separate instances whereby it can be determined
that an employment is regular:1) If the particular activity performed by the
employee is necessary or desirable in the usual business or trade of theemployer2)
If the employee has been performing the job for at least a year
Private respondents were rendering services necessary to the day-to-day operations
of PHCCI. This alone qualifiedthem as regular employees. Moreover, all of them
except one worked with PHCCI for more than 1 year.That Faburada worked only on a
part-time basis does not mean that he is not a regular employee.Regularity of
employment is not determined by the number of hours one works but by the nature
and length of time onehas been in that particular job.